Document:

exv4w1

Exhibit
4.1

TWENTY-FOURTH SUPPLEMENTAL INDENTURE

dated as of January 14, 2010

     This Twenty-Fourth Supplemental Indenture, dated as of the 14th day of January, 2010 between
CMS Energy Corporation, a corporation duly organized and existing under the laws of the State of
Michigan (hereinafter called the “Issuer”) and having its principal office at One Energy Plaza,
Jackson, Michigan 49201, and The Bank of New York Mellon, a New York banking corporation
(hereinafter called the “Trustee”) and having its Corporate Trust Office at 101 Barclay Street, New
York, New York 10286.

WITNESSETH:

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

     WHEREAS, Section 2.3 of the Original Indenture permits the terms of any series of Securities
to be established in an indenture supplemental to the Original Indenture; and

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

     WHEREAS, the Issuer has requested the Trustee to join with it in the execution and delivery of
this Twenty-Fourth Supplemental Indenture in order to supplement and amend the Original Indenture
by, among other things, establishing the form and terms of a series of Securities to be known as
the Issuer’s “6.25% Senior Notes due 2020” (the “2020 Notes”), providing for the issuance of the
2020 Notes and amending and adding certain provisions thereof for the benefit of the Holders of the
2020 Notes; and

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

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

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

     NOW, THEREFORE, for and in consideration of the premises and the purchase of the 2020 Notes to
be issued hereunder by Holders thereof, the Issuer and the Trustee mutually covenant and agree, for
the equal and proportionate benefit of the respective Holders from time to time of the 2020 Notes,
as follows:

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ARTICLE I

STANDARD PROVISIONS; DEFINITIONS

     SECTION 1.01. Standard Provisions. The Original Indenture together with this Twenty-Fourth
Supplemental Indenture and all previous indentures supplemental thereto entered into pursuant to
the applicable terms thereof are hereinafter sometimes collectively referred to as the “Indenture.”
All capitalized terms which are used herein and not otherwise defined herein are defined in the
Original Indenture and are used herein with the same meanings as in the Original Indenture.

     SECTION 1.02. Definitions.

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

	 	 	 
	Term	 	Section
	Applicable Premium
	 	2.04
	Change of Control Date
	 	3.01
	Change of Control Purchase Notice
	 	3.01(b)
	Change of Control Purchase Price
	 	3.01
	Depositary
	 	Article IX
	DTC
	 	2.03
	Events of Default
	 	5.01
	Global Note
	 	Article IX
	Indenture
	 	1.01; 2.04
	Interest Payment Date
	 	2.03
	Issuer
	 	Preamble; 2.03
	Lien
	 	4.02
	Original Indenture
	 	Recitals
	Original Issue Date
	 	2.03
	Place of Payment
	 	2.03
	Purchase Date
	 	3.01(a)(iii)
	Record Date
	 	2.03
	Required Repurchase
	 	3.01
	Securities
	 	Recitals
	Stated Maturity
	 	2.01(a); 2.03
	Treasury Rate
	 	2.04
	Trustee
	 	Preamble; 2.04
	2020 Notes
	 	Recitals; 2.04

     (b) Section 1.1 of the Original Indenture is amended to insert the new definitions solely
applicable to the 2020 Notes and to replace, solely with respect to the 2020 Notes (but not with
respect to any other series of Securities), any existing definitions (as applicable) in the
Original Indenture, in the appropriate alphabetical sequence, as follows:

     “Business Day” means any day on which banking institutions in New York, New York are not
authorized or required by law or regulation to close.

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     “Capital Lease Obligation” of a Person means any obligation that is required to be classified
and accounted for as a capital lease on the face of a balance sheet of such Person prepared in
accordance with generally accepted accounting principles; the amount of such obligation shall be
the capitalized amount thereof, determined in accordance with generally accepted accounting
principles; the stated maturity thereof shall be the date of the last payment of rent or any other
amount due under such lease prior to the first date upon which such lease may be terminated by the
lessee without payment of a penalty; and such obligation shall be deemed secured by a Lien on any
property or assets to which such lease relates.

     “Capital Stock” means any and all shares, interests, rights to purchase, warrants, options,
participations or other equivalents of or interests in (however designated) corporate stock,
including any Preferred Stock or Letter Stock.

     “Change of Control” means the occurrence of any of the following events: (1) any “person” or
“group” (as such terms are used in Sections 13(d) and 14(d) of the Exchange Act or any successor
provisions to either of the foregoing) becomes the “beneficial owners” (as used in Rules 13d-3 and
13d-5 under the Exchange Act, except that a person or group will be deemed to have “beneficial
ownership” of all shares that any such person or group has the right to acquire, whether such right
is exercisable immediately or only after the passage of time), directly or indirectly, of a
majority of the total voting power of the Voting Stock of the Issuer, whether as a result of the
issuance of securities of the Issuer, any merger, consolidation, liquidation or dissolution of the
Issuer or otherwise; (2) the sale, transfer, assignment, lease, conveyance or other disposition,
directly or indirectly, of all or substantially all the assets of the Issuer and its subsidiaries,
considered as a whole (other than a disposition of such assets as an entirety or virtually as an
entirety to a wholly-owned subsidiary) shall have occurred, or the Issuer merges, consolidates or
amalgamates with or into any other Person or any other Person merges, consolidates or amalgamates
with or into the Issuer, in any such event pursuant to a transaction in which the outstanding
Voting Stock of the Issuer is reclassified into or exchanged for cash, securities or other
property, other than any such transaction where (a) the outstanding Voting Stock of the Issuer is
reclassified into or exchanged for other Voting Stock of the Issuer or for Voting Stock of the
surviving corporation and (b) the holders of the Voting Stock of the Issuer immediately prior to
such transaction own, directly or indirectly, a majority of the Voting Stock of the Issuer or the
surviving corporation immediately after such transaction and in substantially the same proportion
as before the transaction; (3) during any period, individuals who at the beginning of such period
constituted the board of directors of the Issuer (together with any new directors whose election or
appointment by such board of directors or whose nomination for election by the stockholders of the
Issuer was approved by a vote of a majority of the directors then still in office who were either
directors at the beginning of such period or whose election or nomination for election was
previously so approved) cease for any reason to constitute a majority of the board of directors of
the Issuer then in office; or (4) the stockholders of the Issuer shall have approved any plan of
liquidation or dissolution of the Issuer.

     “Change of Control Repurchase Event” means the occurrence of both a Change of Control and a
Rating Decline.

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     “Consolidated Assets” means, at any date of determination, the aggregate assets of the Issuer
and its Consolidated Subsidiaries determined on a consolidated basis in accordance with generally
accepted accounting principles.

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

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

     “Consolidated Subsidiary” means any Subsidiary whose accounts are or are required to be
consolidated with the accounts of the Issuer in accordance with generally accepted accounting
principles.

     “Consumers” means Consumers Energy Company, a Michigan corporation and wholly-owned Subsidiary
of the Issuer.

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

     “Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time, and
any successor legislation.

     “Indebtedness” of any Person means, without duplication:

     (i) the principal of and premium (if any) in respect of (A) indebtedness of such Person for
money borrowed and (B) indebtedness evidenced by notes, debentures, bonds or other similar
instruments for the payment of which such Person is responsible or liable;

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     (ii) all Capital Lease Obligations of such Person;

     (iii) all obligations of such Person issued or assumed as the deferred purchase price of
property, all conditional sale obligations and all obligations under any title retention agreement
(but excluding trade accounts payable arising in the ordinary course of business);

     (iv) all obligations of such Person for the reimbursement of any obligor on any letter of
credit, bankers’ acceptance or similar credit transaction (other than obligations with respect to
letters of credit securing obligations (other than obligations described in clauses (i) through
(iii) above) entered into in the ordinary course of business of such Person to the extent such
letters of credit are not drawn upon or, if and to the extent drawn upon, such drawing is
reimbursed no later than the third Business Day following receipt by such Person of a demand for
reimbursement following payment on the letter of credit);

     (v) all obligations of the type referred to in clauses (i) through (iv) above of other Persons
and all dividends of other Persons for the payment of which, in either case, such Person is
responsible or liable as obligor, guarantor or otherwise; and

     (vi) all obligations of the type referred to in clauses (i) through (v) above of other Persons
secured by any Lien on any property or asset of such Person (whether or not such obligation is
assumed by such Person), the amount of such obligation being deemed to be the lesser of the value
of such property or assets or the amount of the obligation so secured.

     “Investment Grade” means BBB- or higher by S&P and Baa3 or higher by Moody’s, or the
equivalent of such ratings by S&P or Moody’s or, if either S&P or Moody’s shall not make a rating
on the 2020 Notes publicly available, another Rating Agency.

     “Letter Stock”, as applied to the Capital Stock of any corporation, means Capital Stock of any
class or classes (however designated) which is intended to reflect the separate performance of
certain of the businesses or operations conducted by such corporation or any of its subsidiaries.

     “Moody’s” means Moody’s Investors Service, Inc.

     “Paying Agent” means any Person authorized by the Issuer to pay the principal of (and premium,
if any) or interest on any of the 2020 Notes on behalf of the Issuer. Initially, the Paying Agent
shall be the Trustee.

     “Person” means any individual, corporation, partnership, limited liability company, joint
venture, association, joint-stock company, trust, unincorporated organization, government or any
agency or political subdivision thereof, or any other entity.

     “Predecessor 2020 Note” of any particular 2020 Note means every previous 2020 Note evidencing
all or a portion of the same debt as that evidenced by such particular 2020 Note; and, for the
purposes of the definition, any 2020 Note authenticated and delivered under Section 2.9 of the
Original Indenture in exchange for or in lieu of a mutilated, destroyed, lost or stolen 2020 Note
shall be deemed to evidence the same debt as the mutilated, destroyed, lost or stolen 2020 Note.

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     “Preferred Stock”, as applied to the Capital Stock of any corporation, means Capital Stock of
any class or classes (however designated) that is preferred as to the payment of dividends, or as
to the distribution of assets upon any voluntary or involuntary liquidation or dissolution of such
corporation, over shares of Capital Stock of any other class of such corporation.

     “Rating Agency” means each of S&P and Moody’s or, if S&P or Moody’s or both shall not make a
rating on the 2020 Notes publicly available, a nationally recognized statistical rating
organization or organizations, as the case may be, selected by the Issuer (as certified by a
resolution of the Issuer’s board of directors), which shall be substituted for S&P or Moody’s, or
both, as the case may be.

     “Rating Decline” means the rating of the 2020 Notes shall be decreased by one or more
gradations (including gradations within categories as well as between rating categories) by each of
the Rating Agencies on any date from the date of the public notice of an arrangement that could
result in a Change of Control until the end of the 30-day period following public notice of the
occurrence of the Change of Control (which 30-day period shall be extended so long as the rating of
the 2020 Notes is under publicly announced consideration for possible downgrade by either of the
Rating Agencies; provided, that the other Rating Agency has either downgraded, or publicly
announced that it is considering downgrading, the 2020 Notes); provided, however, that if the
rating of the 2020 Notes by each of the Rating Agencies is Investment Grade, then “Rating Decline”
means the rating of the 2020 Notes shall be decreased by one or more gradations (including
gradations within categories as well as between rating categories) by each of the Rating Agencies
such that the rating of the 2020 Notes by each of the Rating Agencies falls below Investment Grade
on any date from the date of the public notice of an arrangement that could result in a Change of
Control until the end of the 30-day period following public notice of the occurrence of the Change
of Control (which 30-day period shall be extended so long as the rating of the 2020 Notes is under
publicly announced consideration for possible downgrade by either of the Rating Agencies; provided,
that the other Rating Agency has either downgraded, or publicly announced that it is considering
downgrading, the 2020 Notes).

     “Restricted Subsidiary” means any Subsidiary (other than Consumers and its Subsidiaries) of
the Issuer which, as of the date of the Issuer’s most recent quarterly consolidated balance sheet,
constituted at least 10% of the total Consolidated Assets of the Issuer and its Consolidated
Subsidiaries and any other Subsidiary which from time to time is designated a Restricted Subsidiary
by the Board of Directors; provided that no Subsidiary may be designated a Restricted Subsidiary
if, immediately after giving effect thereto, an Event of Default or event that, with the lapse of
time or giving of notice or both, would constitute an Event of Default would exist, and (i) any
such Subsidiary so designated as a Restricted Subsidiary must be organized under the laws of the
United States or any State thereof, (ii) more than 80% of the Voting Stock of such Subsidiary must
be owned of record and beneficially by the Issuer or a Restricted Subsidiary and (iii) such
Restricted Subsidiary must be a Consolidated Subsidiary.

     “S&P” means Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc.

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     “Securities Act” means the Securities Act of 1933, as amended from time to time, and any
successor legislation.

     “Support Obligations” means, for any Person, without duplication, any financial obligation,
contingent or otherwise, of such Person guaranteeing or otherwise supporting any debt or other
obligation of any other Person in any manner, whether directly or indirectly, and including,
without limitation, any obligation of such Person, direct or indirect, (i) to purchase or pay (or
advance or supply funds for the purchase or payment of) such debt or to purchase (or to advance or
supply funds for the purchase of) any security for the payment of such debt, (ii) to purchase
property, securities or services for the purpose of assuring the owner of such debt of the payment
of such debt, (iii) to maintain working capital, equity capital, available cash or other financial
statement condition of the primary obligor so as to enable the primary obligor to pay such debt,
(iv) to provide equity capital under or in respect of equity subscription arrangements (to the
extent that such obligation to provide equity capital does not otherwise constitute debt), or (v)
to perform, or arrange for the performance of, any non-monetary obligations or non-funded debt
payment obligations of the primary obligor.

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

ARTICLE II

DESIGNATION AND TERMS OF THE 2020 NOTES; FORMS

     SECTION 2.01. Establishment of Series.

     (a) There is hereby created a series of Securities to be known and designated as the “6.25%
Senior Notes due 2020” to be issued in aggregate principal amount of $300,000,000. Additional
Securities, without limitation as to amount, having substantially the same terms as the 2020 Notes
(except a different issue date, a different issue price and bearing interest from the last Interest
Payment Date to which interest has been paid or duly provided for on the 2020 Notes, and, if no
interest has been paid, from January 14, 2010), may also be issued by the Issuer pursuant to the
Indenture without the consent of the existing Holders of the 2020 Notes; provided, that such
additional Securities must be part of the same issue as the 2020 Notes for United States federal
income tax purposes. Such additional Securities shall be part of the same series as the 2020
Notes. The “Stated Maturity” of the 2020 Notes is February 1, 2020; the principal amount of the
2020 Notes shall be payable on such date unless the 2020 Notes are earlier redeemed or purchased in
accordance with the terms of the Indenture.

     (b) The 2020 Notes will bear interest from the Original Issue Date, or from the most recent
date to which interest has been paid or duly provided for, at the rate of 6.25% per annum stated
therein until the principal thereof is paid or made available for payment. Interest will be
payable semi-annually on each Interest Payment Date and at Maturity, as provided in the form of the
2020 Note in Section 2.03 and Section 2.04 hereof.

     (c) The Record Date referred to in Section 2.3(f)(4) of the Original Indenture for the payment
of the interest on any 2020 Note payable on any Interest Payment Date (other than on

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the Stated Maturity) shall be the January 15 and July 15 next preceding the relevant Interest
Payment Date (whether or not a Business Day) except that interest payable on the Stated Maturity
shall be paid to the Person to whom the principal amount is paid.

     (d) The payment of the principal of, and premium (if any) and interest on, the 2020 Notes
shall not be secured by a security interest in any property.

     (e) The 2020 Notes shall be redeemable at the option of the Issuer, in whole or in part, at
any time and from time to time, upon not less than 30, nor more than 60 days’ notice at a
redemption price equal to 100% of the principal amount of such 2020 Notes being redeemed plus the
Applicable Premium, if any, thereon at the time of redemption, together with accrued and unpaid
interest, if any, thereon to, but not including, the redemption date. In no event will the
redemption price ever be less than 100% of the principal amount of the 2020 Notes plus accrued
interest, if any, thereon to the redemption date. The 2020 Notes shall be purchased by the Issuer
at the option of the Holders thereof as provided in Article III hereof.

     (f) The 2020 Notes shall not be convertible.

     (g) The 2020 Notes will not be subordinated to the payment of Senior Debt.

     (h) The Issuer will not pay any additional amounts on the 2020 Notes held by a Person who is
not a U.S. person (as defined in Regulation S under the Securities Act) in respect of any tax,
assessment or government charge withheld or deducted.

     (i) The events specified in Events of Default with respect to the 2020 Notes shall include the
events specified in Article VI hereof. In addition to the covenants set forth in Article Three of
the Original Indenture, the Holders of the 2020 Notes shall have the benefit of the covenants of
the Issuer set forth in Article IV hereof. The provisions of Section 9.1 and Section 9.2 of the
Original Indenture shall be amended and restated solely with respect to the 2020 Notes as specified
in Article V hereof.

     (j) The 2020 Notes are issuable only in registered form without coupons in minimum
denominations of $2,000 and any integral multiple of $1,000 in excess thereof.

     (k) The provisions of Article VII, Article VIII and Article IX hereof shall apply to the 2020
Notes as specified therein.

     SECTION 2.02. Forms Generally. The 2020 Notes and Trustee’s certificate of authentication
shall be in substantially the form set forth in this Article II, with such appropriate insertions,
omissions, substitutions and other variations as are required or permitted by the Indenture, and
may have such letters, numbers or other marks of identification and such legends or endorsements
placed thereon as may be required to comply with the rules of any securities exchange or as may,
consistently herewith, be determined by the officers executing such 2020 Notes, as evidenced by
their execution thereof.

     The definitive 2020 Notes shall be printed, lithographed or engraved on steel engraved borders
or may be produced in any other manner, all as determined by the officers executing such 2020
Notes, as evidenced by their execution thereof.

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     SECTION 2.03. Form of Face of 2020 Note.

     THIS SECURITY IS A REGISTERED GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER
REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE OF A DEPOSITARY. THIS
SECURITY IS EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE
DEPOSITARY OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE AND MAY NOT
BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE
OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY.

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

CMS ENERGY CORPORATION

6.25% SENIOR NOTES DUE 2020

	 	 	 	 	 
	No. 1

	 	$	300,000,000	 
	 
	 	 	 	 
	CUSIP No.: 125896BE9
	 	 	 	 
	 
	 	 	 	 
	ISIN No.: US125896BE96
	 	 	 	 

     CMS Energy Corporation, a corporation duly organized and existing under the laws of the State
of Michigan (herein called the “Issuer”, which term includes any successor Person under the
Indenture hereinafter referred to), for value received, hereby promises to pay to CEDE & CO., or
registered assigns, the principal sum of Three Hundred Million Dollars on February 1, 2020 (“Stated
Maturity”) and to pay interest thereon from January 14, 2010 (the “Original Issue Date”) or from
the most recent Interest Payment Date to which interest has been paid or duly provided for,
semi-annually in arrears on February 1 and August 1 in each year, commencing on August 1, 2010
(each an “Interest Payment Date”), to the Persons in whose names the 2020 Notes are registered at
5:00 p.m., New York City time, on the January 15 and July 15 next preceding the relevant Interest
Payment Date (each a “Record Date”), and on the Stated Maturity, to the Person to whom the
principal amount is paid, at the rate of 6.25% per annum, until the principal hereof is paid or
made available for payment. The amount of interest payable on any Interest Payment Date shall be
computed on the basis of a 360-day year of twelve 30-day months. Any such interest not so
punctually paid or duly provided for will forthwith cease to be payable to the Holder on such
Record Date and may either be paid to the Person in whose name this 2020 Note (or one or more
Predecessor 2020 Notes) is registered at 5:00 p.m., New York City time, on a subsequent record date
(which shall be not less than five Business Days prior to

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the date of payment of such defaulted interest) for the payment of such defaulted interest to
be fixed by the Trustee, notice whereof shall be given to Holders of 2020 Notes not less than 15
calendar days preceding such subsequent Record Date.

     Payment of the principal of (and premium, if any) and interest on this 2020 Note will be made
at the office or agency of the Issuer maintained for that purpose in New York, New York (the “Place
of Payment”), in such coin or currency of the United States of America as at the time of payment is
legal tender for payment of public and private debts; provided, however, that at the option of the
Issuer payment of interest (other than interest payable at Maturity) may be made by check mailed to
the address of the Person entitled thereto as such address shall appear in the Security Register or
by wire transfer to an account designated by such Person not later than ten days prior to the date
of such payment.

     Reference is hereby made to the further provisions of this 2020 Note set forth on the reverse
hereof, which further provisions shall for all purposes have the same effect as if set forth at
this place.

     Unless the certificate of authentication hereon has been executed by the Trustee referred to
on the reverse hereof by manual signature, this 2020 Note shall not be entitled to any benefit
under the Indenture or be valid or obligatory for any purpose.

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

Dated:

	 	 	 	 	 
	 	CMS ENERGY CORPORATION

 	 
	 	By  	 	 
	 	Its: 	 	 
	 	 	 	 
	 
	 	 	 
	 	By  	
 	 
	 	Its: 	 	 
	 	 	 	 
	 

     SECTION 2.04. Form of Reverse of 2020 Note.

     This 6.25% Senior Note due 2020 is one of a duly authorized issue of securities of the Issuer
(herein called the “2020 Notes”), issued and to be issued under an Indenture, dated as of September
15, 1992 (as supplemented by the Twenty-Fourth Supplemental Indenture, dated as of January 14, 2010
and as further amended or supplemented from time to time, the “Indenture”), between the Issuer and
The Bank of New York Mellon, a New York banking corporation (ultimate successor to NBD Bank,
National Association), as Trustee (herein called the “Trustee”, which term includes any successor
trustee under the Indenture), to which Indenture and all indentures supplemental thereto reference
is hereby made for a statement of the respective rights, limitations of rights, duties and
immunities thereunder of the Issuer, the Trustee, and the Holders of the 2020 Notes and of the
terms upon which the 2020 Notes are, and are to be, authenticated

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and delivered. This 2020 Note is one of the series designated on the face hereof, issued in
an initial aggregate principal amount of $300,000,000. Additional Securities, without limitation
as to amount, having substantially the same terms as the 2020 Notes (except a different issue date,
a different issue price and bearing interest from the last Interest Payment Date to which interest
has been paid or duly provided for on the 2020 Notes, and, if no interest has been paid, from
January 14, 2010), may also be issued by the Issuer pursuant to the Indenture without the consent
of the existing Holders of the 2020 Notes; provided, that such additional Securities must be part
of the same issue as the 2020 Notes for United States federal income tax purposes. Such additional
Securities shall be part of the same series as the 2020 Notes.

     No sinking fund is provided for the 2020 Notes.

     The 2020 Notes are subject to redemption at the option of the Issuer, in whole or in part,
upon not less than 30 nor more than 60 days’ notice as provided in the Indenture at any time and
from time to time, at a redemption price equal to 100% of the principal amount of such 2020 Notes
being redeemed plus the Applicable Premium, if any, thereon at the time of redemption, together
with accrued and unpaid interest, if any, thereon to, but not including, the redemption date, but
interest installments whose Stated Maturity is on or prior to such redemption date will be payable
to the Holder of record at the close of business on the relevant Record Date referred to on the
face hereof, all as provided in the Indenture. In no event will the redemption price ever be less
than 100% of the principal amount of the 2020 Notes plus accrued interest to the redemption date.

     The following definitions are used to determine the Applicable Premium:

     “Applicable Premium” means, with respect to a 2020 Note (or portion thereof) being redeemed at
any time, the excess of (A) the present value at such time of the principal amount of such 2020
Note (or portion thereof) being redeemed plus all interest payments due on such 2020 Note (or
portion thereof) after the redemption date, which present value shall be computed using a discount
rate equal to the Treasury Rate plus 50 basis points, over (B) the principal amount of such 2020
Note (or portion thereof) being redeemed at such time. For purposes of this definition, the
present values of the interest and principal payments will be determined in accordance with
generally accepted principles of financial analysis.

     “Treasury Rate” means the yield to maturity at the time of computation of United States
Treasury securities with a constant maturity (as compiled and published in the most recent Federal
Reserve Statistical Release H.15(519) which has become publicly available at least two Business
Days prior to the redemption date or, in the case of defeasance, prior to the date of deposit (or,
if such Statistical Release is no longer published, any publicly available source of similar market
data)) most nearly equal to the then remaining average life to stated maturity of the 2020 Notes;
provided, however, that if the average life to stated maturity of the 2020 Notes is not equal to
the constant maturity of a United States Treasury security for which a weekly average yield is
given, the Treasury Rate shall be obtained by linear interpolation (calculated to the nearest
one-twelfth of a year) from the weekly average yields of United States Treasury securities for
which such yields are given.

11

 

     If a Change of Control Repurchase Event occurs, the Issuer shall notify the Holder of this
2020 Note of such occurrence and such Holder shall have the right to require the Issuer to make a
Required Repurchase of all or any part of this 2020 Note at a Change of Control Purchase Price
equal to 101% of the principal amount of this 2020 Note to be so purchased as more fully provided
in the Indenture and subject to the terms and conditions set forth therein. In the event of a
Required Repurchase of only a portion of this 2020 Note, a new 2020 Note or 2020 Notes for the
unrepurchased portion hereof will be issued in the name of the Holder hereof upon the cancellation
hereof.

     If an Event of Default with respect to this 2020 Note shall occur and be continuing, the
principal of this 2020 Note may be declared due and payable in the manner and with the effect
provided in the Indenture.

     In any case where any Interest Payment Date, redemption date, repurchase date, Stated Maturity
or Maturity of any 2020 Note shall not be a Business Day, then (notwithstanding any other provision
of the Indenture or this 2020 Note) payment of interest or principal (and premium, if any) 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 Interest Payment Date, redemption date, repurchase date or Stated Maturity
or at Maturity; provided that no interest shall accrue on the amount so payable for the period from
and after such Interest Payment Date, redemption date, repurchase date, Stated Maturity or
Maturity, as the case may be, to such Business Day.

     The Trustee and the Paying Agent shall return to the Issuer upon written request any money or
property held by them for the payment of any amount with respect to the 2020 Notes that remains
unclaimed for two years, provided, however, that the Trustee or such Paying Agent, before being
required to make any such return, shall at the expense of the Issuer cause to be published once in
a newspaper of general circulation in The City of New York or mail to each such Holder notice that
such money or property remains unclaimed and that, after a date specified therein, which shall not
be less than 30 days from the date of such publication or mailing, any unclaimed money or property
then remaining shall be returned to the Issuer. After return to the Issuer, Holders entitled to
the money or property must look to the Issuer for payment as general creditors unless an applicable
abandoned property law designates another Person.

     The Indenture contains provisions for defeasance at any time of (i) the entire indebtedness of
this 2020 Note or (ii) certain restrictive covenants and Events of Default with respect to this
2020 Note, in each case upon compliance with certain conditions set forth therein.

     The Indenture permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Issuer and the rights of the Holders of all
outstanding 2020 Notes under the Indenture at any time by the Issuer and the Trustee with the
consent of the Holders of not less than a majority in principal amount of Securities of all series
(including the 2020 Notes) then outstanding and affected (voting as one class).

12

 

     The Indenture permits the Holders of a majority in principal amount of Securities of all
series at the time outstanding with respect to which a default shall have occurred and be
continuing (voting as one class) to waive on behalf of the Holders of all outstanding Securities of
such series any past default by the Issuer, provided that no such waiver may be made with respect
to a default in the payment of the principal of or the interest on any Security of such series, the
default in the payment of the redemption price or Change of Control Purchase Price with respect to
the 2020 Notes, or the default by the Issuer in respect of certain covenants or provisions of the
Indenture, the modification or amendment of which must be consented to by the Holder of each
outstanding Security of each series affected.

     As set forth in, and subject to, the provisions of the Indenture, no Holder of any 2020 Note
will have any right to institute any proceeding with respect to the Indenture or for any remedy
thereunder, unless such Holder shall have previously given to the Trustee written notice of a
continuing Event of Default, the Holders of not less than 25% in principal amount of the
outstanding Securities of each affected series (voting as one class) shall have made written
request, and offered reasonable indemnity against costs, expenses and liabilities, to the Trustee
to institute such proceeding as trustee, and the Trustee shall not have received from the Holders
of a majority in principal amount of the outstanding Securities of each affected series (voting as
one class) a direction inconsistent with such request and shall have failed to institute such
proceeding within 60 days; provided, however, that such limitations do not apply to a suit
instituted by the Holder hereof for the enforcement of payment of the principal of (and premium, if
any) or any interest on this 2020 Note on or after the respective due dates expressed herein.

     No reference herein to the Indenture and no provision of this 2020 Note or of the Indenture
shall alter or impair the obligation of the Issuer, which is absolute and unconditional, to pay the
principal of and any premium and interest on this 2020 Note at the times, place and rate, and in
the coin or currency, herein prescribed.

     As provided in the Indenture and subject to certain limitations therein set forth, the
transfer of this 2020 Note is registrable in the Security Register, upon surrender of this 2020
Note for registration of transfer at the office or agency of the Issuer in any place where the
principal of and any premium and interest on this 2020 Note are payable, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the Issuer and the Security
Registrar duly executed by, the Holder hereof or such Holder’s attorney duly authorized in writing,
and thereupon one or more new 2020 Notes of this series and of like tenor, of authorized
denominations and for the same aggregate principal amount, will be issued to the designated
transferee or transferees.

     The 2020 Notes are issuable only in registered form without coupons in minimum denominations
of $2,000 and any integral multiple of $1,000 in excess thereof. As provided in the Indenture and
subject to certain limitations therein set forth, 2020 Notes are exchangeable for a like aggregate
principal amount of 2020 Notes and of like tenor of a different authorized denomination, as
requested by the Holder surrendering the same.

     No service charge shall be made for any such registration of transfer or exchange, but the
Issuer may require payment of a sum sufficient to cover any tax or other governmental charge
payable in connection therewith.

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     The Issuer shall not be required to (i) issue, exchange or register the transfer of this 2020
Note for a period of 15 days next preceding the mailing of the notice of redemption of 2020 Notes
or (ii) exchange or register the transfer of any 2020 Note or any portion thereof selected, called
or being called for redemption, except in the case of any 2020 Note to be redeemed in part, the
portion thereof not so to be redeemed.

     Prior to due presentment of this 2020 Note for registration of transfer, the Issuer, the
Trustee and any agent of the Issuer or the Trustee may treat the Person in whose name this 2020
Note is registered as the owner hereof for all purposes, whether or not this 2020 Note be overdue,
and neither the Issuer, the Trustee nor any such agent shall be affected by notice to the contrary.

     All terms used in this 2020 Note without definition which are defined in the Indenture shall
have the meanings assigned to them in the Indenture. In case of any conflict between this 2020
Note and the Indenture, the provisions of the Indenture shall control.

     SECTION 2.05. Form of Trustee’s Certificate of Authentication. The Trustee’s certificate of
authentication shall be in substantially the following form:

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

	 	 	 	 	 
	 	THE BANK OF NEW YORK MELLON,

as Trustee

 	 
	 	By  	 	 
	 	  	Authorized Officer 	 
	 	 	 	 
	 

     SECTION 2.06. Rights of Trustee. The Trustee shall not be deemed to have notice, or be
charged with knowledge, of any event requiring notice under the Indenture unless the Trustee shall
have received from the Issuer or other requisite party such notice in writing.

ARTICLE III

CHANGE OF CONTROL

     SECTION 3.01. Change of Control. Upon the occurrence of a Change of Control Repurchase Event
(the effective date of such Change of Control Repurchase Event being the “Change of Control Date”),
each Holder of a 2020 Note shall have the right to require that the Issuer repurchase (a “Required
Repurchase”) all or any part of such Holder’s 2020 Note at a repurchase price payable in cash equal
to 101% of the principal amount of such 2020 Note plus accrued interest, if any, to the Purchase
Date (the “Change of Control Purchase Price”).

     (a) Within 30 days following the Change of Control Date, the Issuer shall mail a notice to
each Holder with a copy to the Trustee stating:

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     (i) that a Change of Control Repurchase Event has occurred and that such Holder has the
right to require the Issuer to repurchase all or any part of such Holder’s 2020 Notes at the
Change of Control Purchase Price;

     (ii) the Change of Control Purchase Price;

     (iii) the date on which any Required Repurchase shall be made (which shall be no
earlier than 60 days nor later than 90 days from the date such notice is mailed) (the
“Purchase Date”);

     (iv) the name and address of the Paying Agent; and

     (v) the procedures that Holders must follow to cause the 2020 Notes to be repurchased,
which shall be consistent with this Section 3.01 and the Indenture.

     (b) Holders electing to have a 2020 Note repurchased must deliver a written notice (the
“Change of Control Purchase Notice”) to the Paying Agent (initially the Trustee) at its corporate
trust office in New York, New York, or any other office of the Paying Agent maintained for such
purposes, not later than 30 days prior to the Purchase Date. The Change of Control Purchase Notice
shall state: (i) the portion of the principal amount of any 2020 Notes to be repurchased, which
portion must be a minimum of $2,000 and in $1,000 integral multiples; (ii) that such 2020 Notes are
to be repurchased by the Issuer pursuant to the change of control provisions of the Indenture; and
(iii) unless the 2020 Notes are represented by one or more Global Notes, the certificate numbers of
the 2020 Notes to be delivered by the Holder thereof for repurchase by the Issuer. Any Change of
Control Purchase Notice may be withdrawn by the Holder by a written notice of withdrawal delivered
to the Paying Agent not later than three Business Days prior to the Purchase Date. The notice of
withdrawal shall state the principal amount and, if applicable, the certificate numbers of the 2020
Notes as to which the withdrawal notice relates and the principal amount of such 2020 Notes, if
any, which remains subject to a Change of Control Purchase Notice.

     If a 2020 Note is represented by a Global Note (as described in Article IX hereof), the
Depositary or its nominee will be the Holder of such 2020 Note and therefore will be the only
entity that can elect a Required Repurchase of such 2020 Note. To obtain repayment pursuant to
this Section 3.01 with respect to such 2020 Note, the beneficial owner of such 2020 Note must
provide to the broker or other entity through which it holds the beneficial interest in such 2020
Note (i) the Change of Control Purchase Notice signed by such beneficial owner, and such signature
must be guaranteed by a member firm of a registered national securities exchange or of the
Financial Industry Regulatory Authority, Inc. or a commercial bank or trust company having an
office or correspondent in the United States, and (ii) instructions to such broker or other entity
to notify the Depositary of such beneficial owner’s desire to obtain repayment pursuant to this
Section 3.01. Such broker or other entity will provide to the Paying Agent (i) the Change of
Control Purchase Notice received from such beneficial owner and (ii) a certificate satisfactory to
the Paying Agent from such broker or other entity stating that it represents such beneficial owner.
Such broker or other entity will be responsible for disbursing any payments it receives pursuant
to this Section 3.01 to such beneficial owner.

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     (c) Payment of the Change of Control Purchase Price for a 2020 Note for which a Change of
Control Purchase Notice has been delivered and not withdrawn is conditioned (except in the case of
a 2020 Note represented by one or more Global Notes) upon delivery of such 2020 Note (together with
necessary endorsements) to the Paying Agent at its office in New York, New York, or any other
office of the Paying Agent maintained for such purpose, at any time (whether prior to, on or after
the Purchase Date) after the delivery of such Change of Control Purchase Notice. Payment of the
Change of Control Purchase Price for such 2020 Note will be made promptly following the later of
the Purchase Date or the time of delivery of such 2020 Note. If the Paying Agent holds, in
accordance with the terms of the Indenture, money sufficient to pay the Change of Control Purchase
Price of such 2020 Note on the Business Day following the Purchase Date, then, on and after such
date, interest will cease accruing, and all other rights of the Holder shall terminate (other than
the right to receive the Change of Control Purchase Price upon delivery of the 2020 Note).

     (d) The Issuer shall comply with the provisions of Regulation 14E and any other tender offer
rules under the Exchange Act, which may then be applicable in connection with any offer by the
Issuer to repurchase 2020 Notes at the option of Holders upon a Change of Control Repurchase Event.

     (e) No 2020 Note may be repurchased by the Issuer as a result of a Change of Control
Repurchase Event if there has occurred and is continuing an Event of Default (other than a default
in the payment of the Change of Control Purchase Price with respect to the 2020 Notes).

ARTICLE IV

ADDITIONAL COVENANTS OF THE ISSUER

WITH RESPECT TO THE 2020 NOTES

     SECTION 4.01. Existence. So long as any of the 2020 Notes are outstanding, subject to
Article Nine of the Original Indenture, the Issuer will do or cause to be done all things necessary
to preserve and keep in full force and effect its corporate existence.

     SECTION 4.02. Limitation on Certain Liens. So long as any of the 2020 Notes are outstanding,
the Issuer shall not create, incur, assume or suffer to exist any lien, mortgage, pledge, security
interest, conditional sale, title retention agreement or other charge or encumbrance of any kind,
or any other type of arrangement intended or having the effect of conferring upon a creditor of the
Issuer or any Subsidiary a preferential interest (a “Lien”) upon or with respect to any of its
property of any character, including without limitation any shares of Capital Stock of Consumers or
Enterprises, without making effective provision whereby the 2020 Notes shall (so long as any such
other creditor shall be so secured) be equally and ratably secured (along with any other creditor
similarly entitled to be secured) by a direct Lien on all property subject to such Lien, provided,
however, that the foregoing restrictions shall not apply to:

     (i) Liens for taxes, assessments or governmental charges or levies to the extent not
past due;

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     (ii) pledges or deposits to secure (A) obligations under workmen’s compensation laws or
similar legislation, (B) statutory obligations of the Issuer or (C) Support Obligations;

     (iii) Liens imposed by law, such as materialmen’s, mechanics’, carriers’, workmen’s and
repairmen’s Liens and other similar Liens arising in the ordinary course of business
securing obligations which are not overdue or which have been fully bonded and are being
contested in good faith;

     (iv) purchase money Liens upon or in property acquired and held by the Issuer in the
ordinary course of business to secure the purchase price of such property or to secure
Indebtedness incurred solely for the purpose of financing the acquisition of any such
property to be subject to such Liens, or Liens existing on any such property at the time of
acquisition, or extensions, renewals or replacements of any of the foregoing for the same or
a lesser amount, provided that no such Lien shall extend to or cover any property other than
the property being acquired and no such extension, renewal or replacement shall extend to or
cover property not theretofore subject to the Lien being extended, renewed or replaced, and
provided, further, that the aggregate principal amount of the Indebtedness at any one time
outstanding secured by Liens permitted by this Section 4.02(iv) shall not exceed
$10,000,000; and

     (v) Liens not otherwise permitted by Section 4.02(i) through Section 4.02(iv) hereof
securing Indebtedness of the Issuer; provided that on the date such Liens are created, and
after giving effect to such Indebtedness, the aggregate principal amount at maturity of all
of the secured Indebtedness of the Issuer at such date shall not exceed 10% of Consolidated
Net Tangible Assets at such date.

     SECTION 4.03. Reporting. For purposes of Section 4.3(a) of the Original Indenture solely
with respect to the 2020 Notes (but not with respect to any other series of Securities), the
Trustee agrees that documents filed by the Issuer with the Commission via the Commission’s EDGAR
system (or any successor thereto) will constitute filing of the same with the Trustee as of the
time such documents are so filed.

ARTICLE V

CONSOLIDATION, MERGER AND TRANSFER OF PROPERTY

     SECTION 5.01. Limitation on Consolidation, Merger and Transfer. Section 9.1 of the Original
Indenture is hereby amended and restated solely with respect to the 2020 Notes (but not with
respect to any other series of Securities) as follows, and all references in the Original Indenture
to Section 9.1 thereof and to the provisions specified therein shall, with respect to the 2020
Notes, be deemed to be references to this Section 5.01 and to the provisions specified herein,
respectively.

     “Nothing contained in the Indenture or in any of the 2020 Notes shall prevent any
consolidation or merger of the Issuer with or into any other Person or Persons (whether or not
affiliated with the Issuer), or successive consolidations or mergers in which the Issuer or its
successor or successors shall be a party or parties, or shall prevent any conveyance, transfer or

17

 

lease of the property of the Issuer as an entirety or substantially as an entirety, to any
other Person (whether or not affiliated with the Issuer); provided, however, that:

     (a) in case the Issuer shall consolidate with or merge into another Person or convey, transfer
or lease its properties and assets as an entirety or substantially as an entirety to any Person,
the entity formed by such consolidation or into which the Issuer is merged or the Person that
acquires by conveyance or transfer, or that leases, the properties and assets of the Issuer as an
entirety or substantially as an entirety shall be a corporation or a limited liability company
organized and existing under the laws of the United States of America, any state thereof or the
District of Columbia and shall expressly assume, by an indenture (or indentures, if at such time
there is more than one Trustee) supplemental to the Indenture, executed by the successor Person and
delivered to the Trustee, in form satisfactory to the Trustee, the due and punctual payment of the
principal of and any premium and interest on the 2020 Notes and the performance of every obligation
in the Indenture and the outstanding 2020 Notes on the part of the Issuer to be performed or
observed;

     (b) immediately after giving effect to such transaction, no Event of Default or event that,
after notice or lapse of time, or both, would become an Event of Default, shall have occurred and
be continuing; and

     (c) either the Issuer or the successor Person shall have delivered to the Trustee an Officers’
Certificate and an Opinion of Counsel, each stating that such consolidation, merger, conveyance,
transfer or lease and, if a supplemental indenture is required in connection with such transaction,
such supplemental indenture complies with the provisions of the Indenture and all conditions
precedent therein relating to such transaction.”

     SECTION 5.02. Successor Person Substituted for the Issuer. Section 9.2 of the Original
Indenture is hereby amended and restated solely with respect to the 2020 Notes (but not with
respect to any other series of Securities) as follows, and all references in the Original Indenture
to Section 9.2 thereof and to the provisions specified therein shall, with respect to the 2020
Notes, be deemed to be references to this Section 5.02 and to the provisions specified herein,
respectively.

     “Upon any consolidation by the Issuer with or merger of the Issuer into any other Person or
any conveyance, transfer or lease of the properties and assets of the Issuer substantially as an
entirety to any Person in accordance with Section 5.01 hereof, the successor Person formed by such
consolidation or into which the Issuer is merged or to which such conveyance, transfer or lease is
made shall succeed to, and be substituted for, and may exercise every right and power of, the
Issuer under the Indenture with the same effect as if such successor Person had been named as the
Issuer herein; and thereafter, the predecessor Person shall be released from all obligations and
covenants under the Indenture and the 2020 Notes.

     In case of any such consolidation, merger, conveyance, transfer or lease, such changes in
phraseology and form (but not in substance) may be made in the 2020 Notes thereafter to be issued
as may be appropriate.”

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ARTICLE VI

ADDITIONAL EVENTS OF DEFAULT

WITH RESPECT TO THE 2020 NOTES

     SECTION 6.01. Definition. All of the events specified in Section 5.1(a) through Section
5.1(h) of the Original Indenture shall be “Events of Default” with respect to the 2020 Notes.

     SECTION 6.02. Amendments to Section 5.1 of the Original Indenture. Solely for the purpose of
determining Events of Default with respect to the 2020 Notes (but not with respect to any other
series of Securities), Section 5.1(e), Section 5.1(f) and Section 5.1(h) of the Original Indenture
shall be amended such that each and every reference in Section 5.1(e) and Section 5.1(f) and the
first two references in Section 5.1(h) of the Original Indenture to the Issuer shall be deemed to
mean either the Issuer or Consumers.

     SECTION 6.03. Additional Events of Default. Solely for the purpose of determining Events of
Default with respect to the 2020 Notes (but not with respect to any other series of Securities), an
Event of Default shall also include default in the Issuer’s obligation to redeem the 2020 Notes
after exercising its redemption option pursuant to this Twenty-Fourth Supplemental Indenture.

     SECTION 6.04. Additional Waivers of Past Defaults. In addition to those matters set forth in
Section 5.10 of the Original Indenture, solely with respect to the 2020 Notes (but not with respect
to any other series of Securities), approval of the Holders of each outstanding 2020 Note shall be
required to waive any default in any payment of the redemption price or Change of Control Purchase
Price with respect to any 2020 Note.

ARTICLE VII

DISCHARGE OF INDENTURE AND DEFEASANCE

     All of the provisions of Article Ten of the Original Indenture shall be applicable to the 2020
Notes. Upon satisfaction by the Issuer of the requirements of Section 10.1(C) of the Original
Indenture, in connection with any covenant defeasance (as provided in Section 10.1(C) of the
Original Indenture), the Issuer shall be released from its obligations under Article Three and
Article Nine of the Original Indenture and under Article IV and Article V hereof with respect to
the 2020 Notes and the omission to comply with such obligations under such Articles upon such
covenant defeasance shall not constitute an Event of Default under the Indenture with respect to
the 2020 Notes.

ARTICLE VIII

MODIFICATION AND WAIVER

     SECTION 8.01. Without Consent of Holders. In addition to any permitted amendment or
supplement to the Indenture pursuant to Section 8.1(a), Section 8.1(b), Section 8.1(c), Section
8.1(e) and Section 8.1(f) of the Original Indenture, the Issuer and the Trustee may amend or
supplement the Indenture (to the extent applicable to the 2020 Notes) or the 2020 Notes without
notice to or the consent of any Holder, to:

     (a) surrender any right or power conferred upon the Issuer;

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     (b) comply with the requirements of the Commission in order to effect or maintain the
qualification of the Indenture under the Trust Indenture Act of 1939, as amended; and

     (c) add guarantees of obligations under the 2020 Notes.

     In addition, Section 8.1(d) of the Original Indenture is hereby amended and restated solely
with respect to the 2020 Notes (but not with respect to any other series of Securities) as follows,
and all references in the Original Indenture to Section 8.1(d) thereof shall, with respect to the
2020 Notes, be deemed to be references to the following provisions of this Section 8.01:

     “(d)(1) cure any ambiguity or correct or supplement any inconsistent or otherwise defective
provision contained in the Indenture; provided that such modification or amendment does not
adversely affect the interests of the Holders of the 2020 Notes in any material respect; provided,
further, that any amendment made solely to conform the provisions of the Indenture and the form or
terms of the 2020 Notes to the section entitled “Description of the Notes” as set forth in the
final prospectus supplement related to the offering and sale of the 2020 Notes dated January 11,
2010 will not be deemed to adversely affect the interests of the Holders of the 2020 Notes;

     (d)(2) make any provision with respect to matters or questions arising under the Indenture
that the Issuer may deem necessary or desirable and that shall not be inconsistent with provisions
of the Indenture; provided, that such change or modification does not, in the good faith opinion of
the Board of Directors, adversely affect the interests of the Holders of the 2020 Notes in any
material respect;”

     SECTION 8.02. With Consent of Holders. In addition to those matters set forth in Section 8.2
of the Original Indenture, solely with respect to the 2020 Notes (but not with respect to any other
series of Securities), no amendment or supplemental indenture to the Indenture shall, without the
consent of the Holder of each 2020 Note affected thereby:

     (a) reduce the redemption price or Change of Control Purchase Price of the 2020 Notes;

     (b) change the terms applicable to redemption or purchase of the 2020 Notes in a manner
adverse to the Holder; or

     (c) change the Issuer’s obligation to maintain an office or agency in New York, New York.

ARTICLE IX

GLOBAL NOTES

     The 2020 Notes will be issued initially in the form of one or more Global Notes. “Global
Note” means a registered 2020 Note evidencing one or more 2020 Notes issued to a depositary (the
“Depositary”) or its nominee, in accordance with this Article IX and bearing the legend prescribed
in this Article IX. The Issuer shall execute and the Trustee shall, in accordance with this
Article IX and the Issuer Order with respect to the 2020 Notes, authenticate and deliver one or
more Global Notes in temporary or permanent form that (i) shall represent and shall be

20

 

denominated in an aggregate amount equal to the aggregate principal amount of the 2020 Notes
to be represented by such Global Note or Global Notes, (ii) shall be registered in the name of the
Depositary for such Global Note or Global Notes or the nominee of such Depositary, (iii) shall be
delivered by the Trustee to such Depositary or pursuant to such Depositary’s instructions and (iv)
shall bear a legend substantially to the following effect: “Unless this Global Note is presented by
an authorized representative of the Depositary to the Issuer or its agent for registration of
transfer, exchange or payment, and any certificate issued is registered in the name of a nominee of
the Depositary or in such other name as is requested by an authorized representative of the
Depositary (and any payment is made to such nominee of the Depositary or to such other entity as is
requested by an authorized representative of the Depositary), ANY TRANSFER, PLEDGE OR OTHER USE
HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof has an interest herein.”

     Notwithstanding Section 2.8 of the Original Indenture, unless and until it is exchanged in
whole or in part for 2020 Notes in definitive form, a Global Note representing one or more 2020
Notes may not be transferred except as a whole by the Depositary, to a nominee of such Depositary
or by a nominee of such Depositary to such Depositary or another nominee of such Depositary or by
such Depositary or any such nominee to a successor Depositary for 2020 Notes or a nominee of such
successor Depositary.

     If at any time the Depositary for the 2020 Notes is unwilling or unable to continue as
Depositary for the 2020 Notes, defaults in the performance of its duties as Depositary or ceases to
be a clearing agency registered under the Exchange Act or other applicable statute or regulation,
the Issuer shall appoint a successor Depositary with respect to the 2020 Notes. If a successor
Depositary for the 2020 Notes is not appointed by the Issuer by the earlier of (x) 90 days from the
date the Issuer receives notice to the effect that the Depositary is unwilling or unable to act, or
the Issuer determines that the Depositary is unable to act, or (y) the effectiveness of the
Depositary’s resignation or failure to fulfill its duties as Depositary, the Issuer will execute,
and the Trustee, upon receipt of an Issuer Order for the authentication and delivery of definitive
2020 Notes, will authenticate and deliver 2020 Notes in definitive form in an aggregate principal
amount equal to the principal amount of the Global Note or Global Notes representing such 2020
Notes in exchange for such Global Note or Global Notes.

     If the Issuer so specifies with respect to any 2020 Notes, an owner of a beneficial interest
in a Global Note representing the 2020 Notes may, on terms acceptable to the Issuer and the
Depositary for the Global Note, receive individual 2020 Notes in exchange for the beneficial
interest. In any such instance, an owner of a beneficial interest in a Global Note will be
entitled to physical delivery in definitive form of 2020 Notes represented by the Global Note equal
in principal amount to the beneficial interest, and to have the 2020 Notes registered in its name.
2020 Notes so issued in definitive form will be issued as registered 2020 Notes in minimum
denominations of $2,000 and in $1,000 integral multiples, unless otherwise specified by the Issuer.

     Upon the exchange of a Global Note for 2020 Notes in definitive form, such Global Note shall
be cancelled by the Trustee. 2020 Notes in definitive form issued in exchange for a Global Note
pursuant to this Article IX shall be registered in such names and in such authorized

21

 

denominations as the Depositary for such Global Note, pursuant to instructions from its direct
or indirect participants or otherwise, shall instruct the Trustee or Security Registrar. The
Trustee shall deliver such 2020 Notes to the Persons in whose names such 2020 Notes are so
registered.

ARTICLE X

SUPPLEMENTAL INDENTURES

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

ARTICLE XI

INAPPLICABLE PROVISIONS OF THE ORIGINAL INDENTURE

     The 2020 Notes shall not constitute Subordinated Securities and the provisions of Article
Twelve of the Original Indenture shall not apply to the Notes.

TESTIMONIUM

     This Twenty-Fourth Supplemental Indenture may be executed in any number of counterparts, each
of which so executed shall be deemed to be an original, but all such counterparts shall together
constitute but one and the same instrument.

22

 

     IN WITNESS WHEREOF, the parties hereto have caused this Twenty-Fourth Supplemental Indenture
to be duly executed and their respective corporate seals to be hereunto affixed and attested, all
as of the day and year first written above.

	 	 	 	 	 
	CMS ENERGY CORPORATION

 	 	 
	By:  	/s/ Laura L. Mountcastle
 	 	 
	 	Laura L. Mountcastle 	 	 
	 	Vice President and Treasurer
 	 	 

	 	 	 	 	 
	Attest: 	/s/ Shelley J. Ruckman 	 	 
	 	Shelley J. Ruckman 	 	 
	 		 	 
	 
	THE BANK OF NEW YORK MELLON, 

as Trustee

 	 	 
	/s/ Laurence J. O ́Brien  	 	 
	Laurence J. O ́Brien — Vice President  	 	 
	 	 	 	 
	Attest: 	/s/ Christopher Greene 	 	 
	 	Christopher Greene 	 	 
	 

23exv10w1

Exhibit 10.1

CREDIT AGREEMENT

     THIS CREDIT AGREEMENT (this “Agreement”) is entered into as of January 8, 2010, by and between
SIGMATRON INTERNATIONAL, INC., a Delaware corporation (“Borrower”), and WELLS FARGO HSBC TRADE
BANK, NATIONAL ASSOCIATION (“Bank”). All references to Wells Fargo Bank in this Agreement shall
mean Wells Fargo Bank, National Association.

RECITALS

     Borrower has requested that Bank extend or continue credit to Borrower as described below, and
Bank has agreed to provide such credit to Borrower on the terms and conditions contained herein.

     NOW, THEREFORE, for valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, Bank and Borrower hereby agree as follows:

ARTICLE I

CREDIT TERMS

     SECTION 1.1. LINE OF CREDIT.

     (a) Line of Credit. Subject to the terms and conditions of this Agreement, Bank
hereby agrees to make advances to Borrower from time to time up to and including January 8, 2012,
not to exceed at any time the aggregate principal amount of Twenty Five Million Dollars
($25,000,000.00) (“Line of Credit”), the proceeds of which shall be used to finance Borrower’s
working capital requirements. Borrower’s obligation to repay advances under the Line of Credit
shall be evidenced by a promissory note dated as of January 8, 2010 (“Line of Credit Note”), all
terms of which are incorporated herein by this reference.

     (b) Letter of Credit Subfeature. As a subfeature under the Line of Credit, Bank
agrees from time to time during the term thereof to issue or cause an affiliate to issue standby
and sight commercial letters of credit for the account of Borrower (“Subfeature LCs”); provided
however, that the aggregate undrawn amount of all outstanding Subfeature LCs shall not at any time
exceed Two Million Dollars ($2,000,000.00). The form and substance of each Subfeature LC shall be
subject to approval by Bank, in its sole discretion. Each standby letter of credit shall be issued
for a term not to exceed three hundred sixty five (365) days and each sight commercial letter of
credit shall be issued for a term not to exceed ninety (90) days, as designated by Borrower. The
undrawn amount of all Subfeature LCs shall be reserved under the Line of Credit and shall not be
available for borrowings thereunder. Each Subfeature LC shall be subject to the additional terms
and conditions of Bank’s standard Standby Letter of Credit agreement or Commercial Letter of Credit
agreement as applicable, and all applications and related documents required by Bank in connection
with the issuance thereof. Each drawing paid under a Subfeature LC shall be deemed an advance
under the Line of Credit and shall be repaid by Borrower in accordance with the terms and
conditions of this Agreement applicable to such advances; provided however, that if advances under
the Line of Credit are not available, for any reason, at the time any drawing is paid, then
Borrower shall immediately pay to Bank the full amount drawn, together with interest thereon from
the date such drawing is paid to the date such amount is fully repaid by Borrower, at the rate of
interest applicable to advances under the Line of Credit.

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     (c) Borrowing and Repayment. Borrower may from time to time during the term of the
Line of Credit borrow, partially or wholly repay its outstanding borrowings, and reborrow, subject
to all of the limitations, terms and conditions contained herein or in the Line of Credit Note or
any other document or instrument required hereby; provided however, that the total outstanding
borrowings under the Line of Credit shall not at any time exceed the maximum principal amount
available thereunder, as set forth above.

     SECTION 1.2. TERM LOAN.

     (a) Term Loan. Subject to the terms and conditions of this Agreement, Bank hereby
agrees to make a loan to Borrower in the principal amount as calculated below (“Term Loan”), the
proceeds of which shall be used to refinance Borrower’s outstanding credit accommodations and
finance office and warehouse facilities in Elk Grove Village, Illinois. Borrower’s obligation to
repay the Term Loan shall be evidenced by a promissory note dated as of
January 8, 2010 (“Term Note”), all terms of which are incorporated herein by this reference.
Bank’s commitment to fund the Term Loan shall terminate on January 8, 2010. The Term Loan shall be
in an amount equal to the least of: i) $2,500,000.00; ii) 65% of the appraised value determined by
the Bank of real property located in Elk Grove Village, Illinois (the “Elk Grove Property”)
securing the Term Loan, or iii) an amount that results in a projected debt service coverage ratio
determined by the Bank of 1.25 to 1.0 based on the ratio of stabilized net income listed in the
appraisal of the Elk Grove Property with debt service coverage determined by reference to net
operating income of the Elk Grove Property identified in the appraisal of the Elk Grove Property
divided by projected principal and interest due in the first year of the Term Loan.

     (b) Repayment. Principal and interest on the Term Loan shall be repaid in accordance
with the provisions of the Term Note.

     (c) Prepayment. Borrower may prepay principal on the Term Loan in whole or in part,
and solely in accordance with the provisions of the Term Note.

     SECTION 1.3. SECOND TERM LOAN. In its sole discretion, Bank may make a loan to Borrower in
the principal amount of up to Two Million Dollars ($2,000,000.00) (“Second Term Loan”), the
proceeds of which shall be used to provide working capital requirements and for other general
corporate purposes. Borrower’s obligation to repay the Second Term Loan shall be evidenced by a
promissory note (“Second Term Note”), in form and substance acceptable to Borrower and Bank, to be
signed and dated as of the date of the funding of the Second Term Note. Subject to the Bank’s
decision to agree to extend the Second Term Loan and the Borrower’s satisfaction of all conditions
to funding, the Second Term Note shall fund not later than January 8, 2011, as and when requested
by Borrower, and the principal thereof shall be due and payable in a lump sum on January 8, 2011.
Interest shall be payable monthly beginning on the first day of the month immediately following the
funding. Interest shall accrue at a rate equal to the rate per annum quoted by Wells Fargo Bank
offered for U.S. dollar deposits on the London Inter-Bank Market, for the purpose of calculating
effective rates of interest for loans making reference to “LIBOR” for a term of six months plus
1.00% per annum, and shall automatically renew for a second six-month interest period, which
interest provisions shall appear in the Second Term Note. Borrower may prepay principal on the
Second Term Loan in whole or in part, without premium or penalty, at any time, subject to any
funding losses resulting from prepayment of the Second Term Note other than payment on the last day
of the relevant interest period or other break funding costs. The conditions to advance of the
Second Term Loan shall include: i) execution and delivery by the Borrower of the Second Term Note
in form and substance mutually agreed between the Borrower and the Bank; ii) delivery of an

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irrevocable, standby letter of credit in face amount equal to the maximum principal amount of the
Second Term Note together with 90 days’ estimated accrued interest thereon, which letter of credit
shall be issued by a bank acceptable to the Bank and contain terms and conditions acceptable to the
Bank; among these terms an expiry date at least 30 days after the stated maturity date of the
Second Term Note; iii) evidence of the authority of the Borrower to execute, deliver and perform
its obligations under the Second Term Note and related documents and the legality of the
transactions thereunder and iv) such other conditions reasonable and customary under the
circumstances.

     SECTION 1.4. INTEREST/FEES.

     (a) Interest. The outstanding principal balance of each credit subject hereto shall
bear interest at the rate of interest set forth in each promissory note or other instrument or
document executed in connection therewith.

     (b) Computation and Payment. Interest shall be computed on the basis of a 360-day
year, actual days elapsed. Interest shall be payable at the times and place set forth in each
promissory note or other instrument or document required hereby.

     (c) Arrangement Fee. Bank has acknowledged that Borrower has paid to Bank a
$10,000.00 non-refundable arrangement fee.

     (d) Unused Commitment Fee. Borrower shall pay to Bank a fee equal to three tenths
percent (.30%) per annum (computed on the basis of a 360-day year, actual days elapsed) on the
average daily unused amount of the Line of Credit, which fee shall be calculated on a 360 basis by
Bank and shall be due and payable by Borrower in arrears on each quarter end.

     (e) Letter of Credit Fees. Borrower shall pay to Bank (i) fees upon the issuance of
each standby or commercial letter of credit issued under any credit subject hereto equal to LIBOR
per annum (computed on the basis of a 360-day year, actual days elapsed) of the face amount
thereof, and (ii) fees upon the payment or negotiation of each drawing under any such letter of
credit and fees upon the occurrence of any other activity with respect to any such letter of credit
(including without limitation, the transfer, amendment or cancellation of any such letter of
credit) determined in accordance with Bank’s standard fees and charges then in effect for such
activity.

     SECTION 1.5. COLLECTION OF PAYMENTS. Except to the extent expressly specified otherwise in
any Loan Document (as defined in Section 2.2 hereof) other than this Agreement, Borrower authorizes
Bank to collect all amounts due to Bank from Borrower under this Agreement or any other Loan
Document (whether for principal, interest or fees, or as reimbursement of drafts paid or other
payments made by Bank under any credit subject to this Agreement) by charging any deposit account
maintained by Borrower with Wells Fargo Bank for the full amount thereof. Should there be
insufficient funds in Borrower’s deposit accounts with Wells Fargo Bank to pay all such sums when
due, the full amount of such deficiency shall be immediately due and payable by Borrower.

     SECTION 1.6. COLLATERAL.

     (a) As security for all indebtedness and other obligations of Borrower to Bank subject hereto
under the Loan Documents, Borrower hereby grants to Bank security interests of first priority in
all Borrower’s accounts receivable and other rights to payment, general intangibles and inventory
located in the United States.

-3-

 

     (b) As security for all indebtedness and other obligations of Borrower to Bank subject hereto,
under the Term Loan, Borrower hereby grants to Bank a lien of not less than first priority on that
certain real property located at 2201 Landmeier Road, Elk Grove Village, IL 60007 pursuant to the
Mortgage and Assignment of Rents and Leases, dated January 8, 2010 (the “Mortgage”).

     (c) All of the foregoing shall be evidenced by and subject to the terms of such security
agreements, financing statements, deeds or mortgages, and other documents as Bank shall reasonably
require, all in form and substance satisfactory to Bank.

     (d) Borrower shall pay to Bank immediately upon demand the full amount of all reasonable
out-of-pocket charges, costs and expenses (to include reasonable out-of-pocket fees paid to third
parties), expended or incurred by Bank in connection with any of the foregoing security, including
without limitation, filing and recording fees and costs of appraisals, audits and title insurance.

ARTICLE II

REPRESENTATIONS AND WARRANTIES

     Borrower makes the following representations and warranties to Bank, which representations and
warranties shall survive the execution of this Agreement and shall continue in full force and
effect until the full and final payment, and satisfaction and discharge, of all obligations of
Borrower to Bank subject to this Agreement.

     SECTION 2.1. LEGAL STATUS. Borrower is a corporation, duly organized and existing and in good
standing under the laws of Delaware, and is qualified or licensed to do business (and is in good
standing as a foreign corporation, if applicable) in all jurisdictions in which such qualification
or licensing is required or in which the failure to so qualify or to be so licensed could have a
material adverse effect on Borrower.

     SECTION 2.2. AUTHORIZATION AND VALIDITY. This Agreement and each promissory note, contract,
instrument and other document required hereby or at any time hereafter delivered to Bank in
connection herewith (collectively, the “Loan Documents”) have been duly authorized, and upon their
execution and delivery in accordance with the provisions hereof will constitute legal, valid and
binding agreements and obligations of Borrower or the party which executes the same, enforceable in
accordance with their respective terms.

     SECTION 2.3. NO VIOLATION. The execution, delivery and performance by Borrower of each of the
Loan Documents do not violate any provision of any law or regulation, or contravene any provision
of the
Articles of Incorporation or By-Laws of Borrower, or result in any breach of or default under any
contract, obligation, indenture or other instrument to which Borrower is a party or by which
Borrower may be bound.

     SECTION 2.4. LITIGATION. There are no pending, or to the best of Borrower’s knowledge
threatened, actions, claims, investigations, suits or proceedings by or before any governmental
authority, arbitrator, court or administrative agency which could have a material adverse effect on
the financial condition or operation of Borrower other than those disclosed by Borrower to Bank in
writing prior to the date hereof.

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     SECTION 2.5. CORRECTNESS OF FINANCIAL STATEMENT. The annual financial statement of Borrower
dated April 30, 2009, and all interim financial statements delivered to Bank since said date, true
copies of which have been delivered by Borrower to Bank prior to the date hereof, (a) are complete
and correct and present fairly the financial condition of Borrower, (b) disclose all liabilities of
Borrower that are required to be reflected or reserved against under generally accepted accounting
principles, whether liquidated or unliquidated, fixed or contingent, and (c) have been prepared in
accordance with generally accepted accounting principles consistently applied. Since the dates of
such financial statements there has been no material adverse change in the financial condition of
Borrower, nor has Borrower mortgaged, pledged, granted a security interest in or otherwise
encumbered any of its domestic assets or properties except in favor of Bank, Bank of America (which
security interest shall be satisfied in full upon the closing of the loan contemplated by the Line
of Credit Note and the Term Note), equipment leases with Wells Fargo Equipment Finance, Inc., GE
Capital or Plains Capital Leasing, in each case as set forth in Schedule 5.3 hereto or as otherwise
permitted by Bank in writing.

     SECTION 2.6. INCOME TAX RETURNS. Borrower has no knowledge of any pending assessments or
adjustments of its income tax payable with respect to any year.

     SECTION 2.7. NO SUBORDINATION. There is no agreement, indenture, contract or instrument to
which Borrower is a party or by which Borrower may be bound that requires the subordination in
right of payment of any of Borrower’s obligations subject to this Agreement to any other obligation
of Borrower.

     SECTION 2.8. PERMITS, FRANCHISES. Borrower possesses, and will hereafter possess, all
permits, consents, approvals, franchises and licenses required and rights to all trademarks, trade
names, patents, and fictitious names, if any, necessary to enable it to conduct the business in
which it is now engaged in compliance with applicable law.

     SECTION 2.9. ERISA. Borrower is in compliance in all material respects with all applicable
provisions of the Employee Retirement Income Security Act of 1974, as amended or recodified from
time to time (“ERISA”); Borrower has not violated any provision of any defined employee pension
benefit plan (as defined in ERISA) maintained or contributed to by Borrower (each, a “Plan”); no
Reportable Event as defined in ERISA has occurred and is continuing with respect to any Plan
initiated by Borrower; Borrower has met its minimum funding requirements under ERISA with respect
to each Plan; and each Plan will be able to fulfill its benefit obligations as they come due in
accordance with the Plan documents and under generally accepted accounting principles.

     SECTION 2.10. OTHER OBLIGATIONS. Borrower is not in default on any obligation for borrowed
money, any material purchase money obligation or any other material lease, commitment, contract,
instrument or obligation.

     SECTION 2.11. ENVIRONMENTAL MATTERS. Except as disclosed by Borrower to Bank in Schedule 2.11
hereof, Borrower is in compliance in all material respects with all applicable federal or state
environmental, hazardous waste, health and safety statutes, and any rules or regulations adopted
pursuant thereto, which govern or affect any of Borrower’s operations and/or properties, including
without limitation, the Comprehensive Environmental Response, Compensation and Liability Act of
1980, the Superfund Amendments and Reauthorization Act of 1986, the Federal Resource Conservation
and Recovery Act of 1976, and the Federal Toxic Substances Control Act, as any of the same may be
amended, modified or supplemented from time to time. None of the operations of Borrower is the
subject of any

-5-

 

federal or state investigation evaluating whether any remedial action involving a
material expenditure is needed to respond to a release of any toxic or hazardous waste or substance
into the environment. Borrower has no material contingent liability in connection with any release
of any toxic or hazardous waste or substance into the environment.

     SECTION 2.12. REAL PROPERTY COLLATERAL. Except as disclosed by Borrower to Bank in writing
prior to the date hereof, with respect to any real property collateral required hereby:

     (a) All taxes, governmental assessments, insurance premiums, and water, sewer and municipal
charges, and rents (if any) which previously became due and owing in respect thereof have been paid
as of the date hereof.

     (b) There are no mechanics’ or similar liens or claims which have been filed for work, labor
or material (and no rights are outstanding that under law could give rise to any such lien) which
affect all or any interest in any such real property and which are or may be prior to or equal to
the lien thereon in favor of Bank.

     (c) None of the improvements which were included for purpose of determining the appraised
value of any such real property lies outside of the boundaries and/or building restriction lines
thereof, and no improvements on adjoining properties materially encroach upon any such real
property.

     (d) There is no pending, or to the best of Borrower’s knowledge threatened, proceeding for the
total or partial condemnation of all or any portion of any such real property, and all such real
property is in good repair and free and clear of any damage that would materially and adversely
affect the value thereof as security and/or the intended use thereof.

ARTICLE III

CONDITIONS

     SECTION 3.1. CONDITIONS OF INITIAL EXTENSION OF CREDIT. The obligation of Bank to extend any
credit contemplated by this Agreement is subject to the fulfillment to Bank’s satisfaction of all
of the following conditions:

     (a) Approval of Bank Counsel. All legal matters incidental to the extension of credit
by Bank shall be satisfactory to Bank’s counsel.

     (b) Documentation. Bank shall have received, in form and substance satisfactory to
Bank, each of the following, duly executed:

	 	(i)	 	This Agreement.
	 
	 	(ii)	 	Revolving Line of Credit Note.
	 
	 	(iii)	 	Term Loan.
	 
	 	(iv)	 	Corporate Resolution: Borrowing.
	 
	 	(v)	 	Certificate of Incumbency.
	 
	 	(vi)	 	Continuing Security Agreement: Rights to Payment and Inventory.
	 
	 	(vii)	 	Security Agreement: Equipment and Fixtures.
	 
	 	(viii)	 	Mortgage and Assignment of Rents and Leases.
	 
	 	(ix)	 	Fax Transmission and Acceptance of Requests, Instructions, Documents and Information.

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	 	(x)	 	Facsimile Transmissions of Applications for Issuance of, and Amendments to,
Letters of Credit.
	 
	 	(xi)	 	Insurance Information request
	 
	 	(xii)	 	Such other documents as Bank may require under any other Section of this
Agreement.

     (c) Financial Condition. There shall have been no material adverse change, as
determined by Bank, in the financial condition or business of Borrower, nor any material decline,
as determined by Bank, in the market value of any collateral required hereunder or a substantial or
material portion of the assets of Borrower.

     (d) Insurance. Borrower shall have delivered to Bank evidence of insurance coverage
on all Borrower’s property, in form, substance, amounts, covering risks and issued by companies
satisfactory to Bank, and where required by Bank, with loss payable endorsements in favor of Bank,
including without limitation, policies of marine cargo insurance, accounts receivable insurance and
business personal property insurance, and policies of fire and extended coverage insurance covering
all real property collateral required hereby, with replacement cost and
mortgagee loss payable endorsements, and such policies of insurance against specific hazards
affecting any such real property as may be required by governmental regulation or Bank.

     (e) Real Property Appraisals. Bank shall have obtained, at Borrower’s cost, an
appraisal of all real property collateral required hereby, and all improvements thereon, issued by
an appraiser acceptable to Bank and in form, substance and reflecting values satisfactory to Bank,
in its discretion.

     (f) Title Insurance. Bank shall have received an ALTA Policy of Title Insurance, with
such endorsements as Bank may require, issued by a company and in form and substance satisfactory
to Bank, in such amount as Bank shall require, insuring Bank’s lien on the real property collateral
required hereby to be of first priority, subject only to such exceptions as Bank shall approve in
its discretion, with all costs thereof to be paid by Borrower.

     (g) Phase I Environmental Survey. A Phase I environmental survey of the Elk Grove
Property in form and substance satisfactory to the Bank.

     (h) Field Audit. A completed field audit of Borrower covering areas customarily
examined by the Bank in form and substance satisfactory to the Bank.

     SECTION 3.2. CONDITIONS OF EACH EXTENSION OF CREDIT. The obligation of Bank to make each
extension of credit requested by Borrower hereunder shall be subject to the fulfillment to Bank’s
satisfaction of each of the following conditions:

     (a) Compliance. The representations and warranties contained herein and in each of
the other Loan Documents shall be true on and as of the date of the signing of this Agreement and
on the date of each extension of credit by Bank pursuant hereto, with the same effect as though
such representations and warranties had been made on and as of each such date, and on each such
date, no Event of Default as defined herein, and no condition, event or act which with the giving
of notice or the passage of time or both would constitute such an Event of Default, shall have
occurred and be continuing or shall exist.

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     (b) Documentation. Bank shall have received all additional documents which may be
required in connection with such extension of credit, including without limitation, the following:

	 	(i)	 	For the issuance of a commercial letter of credit under any credit subject to
this Agreement, Bank’s standard Application for Commercial Letter of Credit.

	 	(ii)	 	For the issuance of a standby letter of credit under any credit subject to this
Agreement, Bank’s standard Application for Standby Letter of Credit.

     (c) Payment of Fees. Bank shall have received payment in full of any fee required by
any of the Loan Documents to be paid at the time such credit extension is made.

ARTICLE IV

AFFIRMATIVE COVENANTS

     Borrower covenants that so long as Bank remains committed to extend credit to Borrower
pursuant hereto, or any liabilities (whether direct or contingent, liquidated or unliquidated) of
Borrower to Bank under any of the Loan Documents remain outstanding, and until payment in full of
all obligations of Borrower subject hereto, Borrower shall, unless Bank otherwise consents in
writing:

     SECTION 4.1. PUNCTUAL PAYMENTS. Punctually pay all principal, interest, fees or other
liabilities due under any of the Loan Documents at the times and place and in the manner specified
therein, and immediately upon demand by Bank, the amount by which the outstanding principal balance
of any credit subject hereto at any time exceeds any limitation on borrowings applicable thereto.

     SECTION 4.2. ACCOUNTING RECORDS. Maintain adequate books and records in accordance with
generally accepted accounting principles consistently applied, and permit any representative of
Bank, at any reasonable time, during regular business hours, with a reasonable prior notice, to
inspect, audit and examine such books and records, to make copies of the same, and to inspect the
properties of Borrower.

     SECTION 4.3. FINANCIAL STATEMENTS. Provide to Bank all of the following, in form and detail
satisfactory to Bank:

     (a) not later than 120 days after and as of the end of each fiscal year, an unqualified
audited consolidated and consolidating financial statement of Borrower, prepared by a certified
public accountant acceptable to Bank in accordance with generally accepted accounting principles,
to include balance sheet, income statement, and statement of cash flows;

     (b) not later than 30 days after and as of the end of month, a financial statement of
Borrower, prepared by Borrower, to include balance sheet and income statement and statement of cash
flows;

     (c) not later than 45 days after the end of each quarter, consolidated and consolidating
financial statements of the Borrower prepared by the Borrower, to include balance sheet, income
statement and statement of cash flows;

     (d) not later than 25 days after and as of the end of each month, an inventory report showing
the types, locations and unit or dollar values of all the inventory collateral, an aged

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listing of
accounts receivable to include both factored and unfactored accounts, an aged listing of accounts
payable, and a reconciliation of accounts,

     (e) contemporaneously with each annual and quarterly financial statement of Borrower required
hereby, a certificate of the president or chief financial officer of Borrower that said financial
statements are accurate and that there exists no Event of Default nor any condition, act or event
which with the giving of notice or the passage of time or both would constitute an Event of
Default;

     (f) from time to time such other information as Bank may reasonably request.

     SECTION 4.4. COMPLIANCE. Preserve and maintain all licenses, permits, governmental approvals,
rights, privileges and franchises necessary for the conduct of its business; and comply with the
provisions of all documents pursuant to which Borrower is organized and/or which govern Borrower’s
continued existence and with the requirements of all laws, rules, regulations and orders of any
governmental authority applicable to Borrower and/or its business.

     SECTION 4.5. INSURANCE. Maintain and keep in force, for each business in which Borrower is
engaged, insurance of the types and in amounts customarily carried in similar lines of business,
including but not limited to fire, extended coverage, public liability, flood, property damage and
workers’ compensation, with all such insurance carried with companies and in amounts satisfactory
to Bank, and deliver to Bank from time to time at Bank’s request schedules setting forth all
insurance then in effect.

     SECTION 4.6. FACILITIES. Keep all properties useful or necessary to Borrower’s business in
good repair and condition, and from time to time make necessary repairs, renewals and replacements
thereto so that such properties shall be fully and efficiently preserved and maintained.

     SECTION 4.7. TAXES AND OTHER LIABILITIES. Pay and discharge when due any and all
indebtedness, obligations, assessments and taxes, both real or personal, including without
limitation federal and state income taxes and state and local property taxes and assessments,
except such (a) as Borrower may in good faith contest or as to which a bona fide dispute may arise,
and (b) for which Borrower has made provision, to Bank’s satisfaction, for eventual payment thereof
in the event Borrower is obligated to make such payment.

     SECTION 4.8. LITIGATION. Promptly give notice in writing to Bank of any material litigation
pending or threatened against Borrower.

     SECTION 4.9. FINANCIAL CONDITION. Maintain Borrower’s financial condition as follows using
generally accepted accounting principles consistently applied and used consistently with prior
practices (except to the extent modified by the definitions herein), with compliance determined
commencing with Borrower’s consolidated financial statements for the period ending January 31,
2010:

     (a) Minimum Tangible Net Worth not less than $45,050,400.00 plus 50% of quarterly net profit
after taxes plus 100% of any increases in equity or subordinated debt at each fiscal quarter end.
“Tangible Net Worth” defined as the aggregate of total stockholders’ equity plus subordinated debt
less any intangible assets.

-9-

 

     (b) Total Liabilities divided by Tangible Net Worth not greater than 1.5 to 1.0 at each fiscal
quarter end, with “Total Liabilities” defined as the aggregate of current liabilities and
non-current liabilities, and with “Tangible Net Worth” as defined above.

     (c) Fixed Charge Coverage Ratio not less than 2.0 to 1.0 as of each fiscal quarter end,
determined on a rolling 4-quarter basis, with “Fixed Charge Coverage Ratio” defined as the
aggregate of net profit after taxes plus depreciation expense, amortization expense, cash capital
contributions minus dividends, distributions, divided by the aggregate of the current maturity of
long-term debt and capitalized lease payments.

     (d) Minimum Quick Ratio not less than 1.0 to 1.0 at each fiscal quarter end, with “Quick
Ratio” defined as the sum of total cash and cash equivalents plus accounts receivable less bad debt
reserve to current total liabilities.

     (e) Net Profit After Tax not less than $1.00 on a rolling 4-quarter basis, determined as of
each fiscal quarter end.

     SECTION 4.10. NOTICE TO BANK. Promptly (but in no event more than ten (10) days after the
occurrence of each such event or matter) give written notice to Bank in reasonable detail of: (a)
the occurrence of any Event of Default, or any condition, event or act which with the giving of
notice or the passage of time or both would constitute an Event of Default; (b) any change in the
name or the organizational structure of Borrower; (c) the occurrence and nature of any Reportable
Event or Prohibited Transaction, each as defined in ERISA, or any funding deficiency with respect
to any Plan; or (d) any termination or cancellation of any insurance policy which Borrower is
required to maintain, or the occurrence of any loss through liability or property damage, or
through fire, theft or any other cause affecting Borrower’s domestic property that is reasonably
estimated to involve a loss of more than $25,000 that is not covered by insurance.

     SECTION 4.11. COLLATERAL AUDITS. Permit Bank to audit all Borrower’s collateral required
hereunder, with such audits to be performed from time to time at Bank’s option by collateral
examiners acceptable to Bank and in scope and content satisfactory to Bank, and with all Bank’s
costs and expenses of each audit to be reimbursed in full by Borrower. Bank shall not be required
to share the results of the audit(s) with Borrower or any third party.

     SECTION 4.12. STOCK PLEDGES. On or before April 8, 2010, Borrower shall deliver to Bank
documentation in form and substance satisfactory to Bank, including enforceable pledge agreements
and legal opinions, evidencing Borrower’s pledge of 65% of its equity ownership interests in each
of its direct and indirect foreign subsidiaries, including, but not limited to Standard Components
de Mexico S.A and AbleMex S.A. de C.V. in Mexico, SigmaTron International Trading Co. and SigmaTron
Taiwan Branch in Taiwan, and Wujiang SigmaTron Electronics Co., Ltd. in The People’s Republic of
China. To the extent applicable, Borrower shall also provide evidence satisfactory to Bank that the
necessary approvals have been obtained and registration of such documentation has occurred in each
jurisdiction.

     SECTION 4.13. INVENTORY APPRAISAL. On or before February 5, 2010, Bank shall have obtained,
at Borrower’s cost, an appraisal of all Borrower’s inventory, issued by an appraiser acceptable to
Bank and in form, substance and reflecting values satisfactory to Bank in its reasonable
discretion.

-10-

 

     SECTION 4.14 REAL PROPERTY TAX COMPLIANCE. Borrower shall provide evidence of payment of real
property taxes on the Elk Grove Property within fifteen (15) days of the due date for each
installment thereof.

ARTICLE V

NEGATIVE COVENANTS

     Borrower further covenants that so long as Bank remains committed to extend credit to Borrower
pursuant hereto, or any liabilities (whether direct or contingent, liquidated or unliquidated) of
Borrower to Bank under any of the Loan Documents remain outstanding, and until payment in full of
all obligations of Borrower subject hereto, Borrower will not without Bank’s prior written consent:

     SECTION 5.1. USE OF FUNDS. Use any of the proceeds of any credit extended hereunder except
for the purposes stated in Article I hereof.

     SECTION 5.2. CAPITAL EXPENDITURES. Make any additional investment in fixed assets in any
fiscal year in excess of an aggregate of $3,500,000.00.

     SECTION 5.3. OTHER INDEBTEDNESS. Create, incur, assume or permit to exist any indebtedness or
liabilities resulting from borrowings, loans, guaranties, or advances, whether secured or
unsecured, matured or unmatured, liquidated or unliquidated, joint or several, except (a) the
liabilities of Borrower to Bank, Wells Fargo Equipment Finance, Inc., GE Capital or Plains Capital
Leasing in each case as set forth in Schedule 5.3 hereto and up to $1,500,000.00 at any time
outstanding to GE Capital for equipment leases incurred after the date hereof (b) any other
liabilities of Borrower existing as of, and disclosed to Bank prior to, the date hereof.

     SECTION 5.4. MERGER, CONSOLIDATION, TRANSFER OF ASSETS. Merge into or consolidate with any
other entity; make any substantial change in the nature of
Borrower’s business as_a
worldwide seller of electronic products and services; acquire all or substantially all of the
assets of any other entity; nor sell, lease, transfer or otherwise dispose of all or a substantial
or material portion of Borrower’s assets except in the ordinary course of its business.

     SECTION 5.5. LOANS, ADVANCES, INVESTMENTS. Make any loans or advances to or investments in
any person or entity, except any of the foregoing (a) existing as of, and disclosed to Bank prior
to, the date hereof or (b) in an amount not to exceed $100,000 in the aggregate.

     SECTION 5.6. DIVIDENDS, DISTRIBUTIONS. Declare or pay any dividend or distribution either in
cash, stock or any other property on Borrower’s stock now or hereafter outstanding, nor redeem,
retire, repurchase or otherwise acquire any shares of any class of Borrower’s stock now or
hereafter outstanding, and Borrower shall provide to Bank, upon request, any documentation required
by Bank to substantiate the appropriateness of amounts paid or to be paid.

     SECTION 5.7. PLEDGE OF ASSETS. (a) Mortgage, pledge, grant or permit to exist a security
interest in, or lien upon, all or any portion of Borrower’s assets now owned or hereafter acquired,
except any of the foregoing in favor of Bank, Wells Fargo Equipment Finance, Inc., GE Capital or
Plains Capital Leasing, or which is existing as of, and disclosed to Bank in writing prior to, the
date hereof, or (b) agree with any other person or entity not to mortgage, pledge,

-11-

 

grant or permit
to exist a security interest in, or lien upon, all or any portion of Borrower’s assets now owned or
hereafter acquired, except any of the foregoing in favor of Bank or which is existing as of, and
disclosed to Bank in writing prior to, the date hereof.

ARTICLE VI

EVENTS OF DEFAULT

     SECTION 6.1. The occurrence of any of the following shall constitute an “Event of Default”
under this Agreement:

     (a) Borrower shall fail to pay when due any principal, interest, fees or other amounts payable
under any of the Loan Documents.

     (b) Any financial statement or certificate furnished to Bank in connection with, or any
representation or warranty made by Borrower or any other party under this Agreement or any other
Loan Document shall prove to be incorrect, false or misleading in any material respect when
furnished or made.

     (c) Any default in the performance of or compliance with any obligation, agreement or other
provision contained herein or in any other Loan Document (other than those specifically described
as an “Event of Default” in this section 6.1), and with respect to any such default that by its
nature can be cured, such default shall continue for a period of twenty (20) days after notice from
Bank of its occurrence.

     (d) Any default in the payment or performance of any obligation, or any defined event of
default, under the terms of any material contract, instrument or document (other than any of the
Loan Documents) binding on Borrower, any guarantor hereunder or any general partner or joint
venturer in Borrower if a partnership or joint venture (with each such guarantor, general partner
and/or joint venturer referred to herein as a “Third Party Obligor”) has incurred any debt or other
liability to any person or entity, including to Bank.

     (e) Borrower or any Third Party Obligor shall become insolvent, or shall suffer or consent to
or apply for the appointment of a receiver, trustee, custodian or liquidator of itself or any of
its property, or shall generally fail to pay its debts as they become due, or shall make a general
assignment for the benefit of creditors; Borrower or any Third Party Obligor shall file a voluntary
petition in bankruptcy, or seeking reorganization, in order to effect a plan or other arrangement
with creditors or any other relief under the Bankruptcy Reform Act, Title 11 of the United States
Code, as amended or recodified from time to time (“Bankruptcy Code”), or under any state or federal
law granting relief to debtors, whether now or hereafter in effect; or Borrower or any Third Party
Obligor shall file an answer admitting the jurisdiction of the court and the material allegations
of any involuntary petition; or Borrower or any Third Party Obligor shall be adjudicated a
bankrupt, or an order for relief shall be entered against Borrower or any Third Party Obligor by
any court of competent jurisdiction under the Bankruptcy Code or any other applicable state or
federal law relating to bankruptcy, reorganization or other relief for debtors.

     (f) The filing of a notice of judgment lien in excess of $50,000.00 against Borrower or any
Third Party Obligor; or the recording of any abstract of judgment in excess of $50,000.00 against
Borrower or any Third Party Obligor in any county in which Borrower or such Third Party Obligor has
an interest in real property; or the service of a notice of levy and/or of a writ of

-12-

 

attachment or
execution, or other like process, in excess of $50,000.00 against the assets of Borrower or any
Third Party Obligor; or the entry of a judgment in excess of $50,000.00 against Borrower or any
Third Party Obligor; or any involuntary petition or proceeding pursuant to the Bankruptcy Code or
any other applicable state or federal law relating to bankruptcy, reorganization or other relief
for debtors is filed or commenced against Borrower or any Third Party Obligor and is not vacated or
dismissed within 60 days after the filing thereof.

     (g) There shall exist or occur any event or condition that Bank in good faith believes impairs
the prospect of payment or performance by Borrower, any Third Party Obligor, or the general partner
of either if such entity is a partnership, of its obligations under any of the Loan Documents.

     (h) The death or incapacity of Borrower or any Third Party Obligor if an individual. The
dissolution or liquidation of Borrower or any Third Party Obligor if a corporation, partnership,
joint venture or other type of entity; or Borrower or any such Third Party Obligor, or any of its
directors, stockholders or members, shall take action seeking to effect the dissolution or
liquidation of Borrower or such Third Party Obligor and such action is not dismissed within 60 days
after the commencement thereof.

     (i) The withdrawal, resignation or expulsion of any one or more of the general partners in
Borrower; or any change in control of Borrower or any entity or combination of entities that
directly or indirectly control Borrower, with “control” defined as ownership of an aggregate of
twenty-five percent (25%) or more of the common stock, members’ equity or other ownership interest
(other than a limited partnership interest) of Borrower.

     (j) The sale, transfer, hypothecation, assignment or encumbrance, whether voluntary,
involuntary or by operation of law, without Bank’s prior written consent, of all or any part of or
interest in any real property collateral required hereby.

     SECTION 6.2. REMEDIES. Upon the occurrence of any Event of Default: (a) all indebtedness of
Borrower under each of the Loan Documents, any term thereof to the contrary notwithstanding, shall
at Bank’s option and without notice become immediately due and payable without presentment, demand,
protest or notice of dishonor, all of which are hereby expressly waived by Borrower; (b) the
obligation, if any, of Bank to extend any further credit under any of the Loan Documents shall
immediately cease and terminate; and (c) Bank shall have all rights, powers and remedies available
under each of the Loan Documents, or accorded by law, including without limitation the right to
resort to any or all security for any credit subject hereto and to exercise any or all of the
rights of a beneficiary or secured party pursuant to applicable law. All rights, powers and
remedies of Bank may be exercised at any time by Bank and from time to time after the occurrence of
an Event of Default, are cumulative and not exclusive, and shall be in addition to any other
rights, powers or remedies provided by law or equity.

ARTICLE VII

MISCELLANEOUS

     SECTION 7.1. NO WAIVER. No delay, failure or discontinuance of Bank in exercising any right,
power or remedy under any of the Loan Documents shall affect or operate as a waiver of such right,
power or remedy; nor shall any single or partial exercise of any such right, power or remedy
preclude, waive or otherwise affect any other or further exercise thereof or the exercise of any
other right, power or remedy. Any waiver, permit, consent or approval of any

-13-

 

kind by Bank of any
breach of or default under any of the Loan Documents must be in writing and shall be effective only
to the extent set forth in such writing.

     SECTION 7.2. NOTICES. All notices, requests and demands which any party is required or may
desire to give to any other party under any provision of this Agreement must be in writing
delivered to each party at the following address:

	 	 	 
	BORROWER:

	 	SIGMATRON INTERNATIONAL, INC.
	 

	 	2201 Landmeier Road
	 

	 	Elk Grove Village, IL 60007
	 

	 	Attn: Linda K. Frauendorfer, CFO
	 
	 	 
	With a copy to:

	 	Henry J. Underwood
	 

	 	Howard and Howard Attorneys PLLC
	 

	 	200 South Michigan Avenue
	 

	 	Suite 1100
	 

	 	Chicago, IL 60604
	 
	 	 
	BANK:

	 	WELLS FARGO HSBC TRADE BANK, NATIONAL ASSOCIATION
	 

	 	230 W. Monroe Street, 29th Floor
	 

	 	Chicago, IL 60606

or to such other address as any party may designate by written notice to all other parties. Each
such notice, request and demand shall be deemed given or made as follows: (a) if sent by hand
delivery, upon delivery; (b) if sent by mail, upon the earlier of the date of receipt or three (3)
business days after deposit in the U.S. mail, first class and postage prepaid; and (c) if sent by
telecopy, upon receipt.

     SECTION 7.3. COSTS, EXPENSES AND ATTORNEYS’ FEES. Borrower shall pay to Bank immediately upon
demand the full amount of all reasonable out-of-pocket payments, advances, charges, costs and
expenses, including reasonable attorneys’ fees (to include reasonable outside counsel fees),
expended or incurred by Bank in connection with (a) the negotiation and preparation of this
Agreement and the other Loan Documents, and the preparation of any amendments and waivers hereto
and thereto, (b) the enforcement of Bank’s rights and/or the
collection of any amounts which become due to Bank under any of the Loan Documents, and (c) the
prosecution or defense of any action in any way related to any of the Loan Documents, including
without limitation, any action for declaratory relief, whether incurred at the trial or appellate
level, in an arbitration proceeding that may be awarded or otherwise, and including any of the
foregoing incurred in connection with any bankruptcy proceeding (including without limitation, any
adversary proceeding, contested matter or motion brought by Bank or any other person) relating to
Borrower or any other person or entity.

     SECTION 7.4. SUCCESSORS, ASSIGNMENT. This Agreement shall be binding upon and inure to the
benefit of the heirs, executors, administrators, legal representatives, successors and assigns of
the parties; provided however, that Borrower may not assign or transfer its interests or rights
hereunder without Bank’s prior written consent. Bank reserves the right to sell, assign, transfer,
negotiate or grant participations in all or any part of, or any interest in, Bank’s rights and
benefits under each of the Loan Documents. In connection therewith, Bank may disclose all
documents and information which Bank now has or may hereafter acquire

-14-

 

relating to any credit
subject hereto, Borrower or its business or any collateral required hereunder; provided that any
information provided to the Bank by the Borrower and identified by the Borrower as material
non-public information shall not be disclosed to the prospective assignee or participant unless and
until the prospective assignee or participant has agreed in writing for the benefit of Borrower to
maintain the confidentiality of such non-public information.

     SECTION 7.5. ENTIRE AGREEMENT; AMENDMENT. This Agreement and the other Loan Documents
constitute the entire agreement between Borrower and Bank with respect to each credit subject
hereto and supersede all prior negotiations, communications, discussions and correspondence
concerning the subject matter hereof. This Agreement may be amended or modified only in writing
signed by each party hereto.

     SECTION 7.6. NO THIRD PARTY BENEFICIARIES. This Agreement is made and entered into for the
sole protection and benefit of the parties hereto and their respective permitted successors and
assigns, and no other person or entity shall be a third party beneficiary of, or have any direct or
indirect cause of action or claim in connection with, this Agreement or any other of the Loan
Documents to which it is not a party.

     SECTION 7.7. TIME. Time is of the essence of each and every provision of this Agreement and
each other of the Loan Documents.

     SECTION 7.8. SEVERABILITY OF PROVISIONS. If any provision of this Agreement shall be
prohibited by or invalid under applicable law, such provision shall be ineffective only to the
extent of such prohibition or invalidity without invalidating the remainder of such provision or
any remaining provisions of this Agreement.

     SECTION 7.9. COUNTERPARTS. This Agreement may be executed in any number of counterparts, each
of which when executed and delivered shall be deemed to be an original, and all of which when taken
together shall constitute one and the same Agreement.

     SECTION 7.10. GOVERNING LAW. This Agreement shall be governed by and construed in accordance
with the laws of the State of Illinois, but giving effect to federal laws applicable to national
banks.

     SECTION 7.11. ARBITRATION.

     (a) Arbitration. The parties hereto agree, upon demand by any party, to submit to
binding arbitration all claims, disputes and controversies between or among them (and their
respective employees, officers, directors, attorneys, and other agents), whether in tort, contract
or otherwise in any way arising out of or relating to (i) any credit subject hereto, or any of the
Loan Documents, and their negotiation, execution, collateralization, administration, repayment,
modification, extension, substitution, formation, inducement, enforcement, default or termination;
or (ii) requests for additional credit.

     (b) Governing Rules. Any arbitration proceeding will (i) proceed in a location in
Chicago, Illinois selected by the American Arbitration Association (“AAA”); (ii) be governed by the
Federal Arbitration Act (Title 9 of the United States Code), notwithstanding any conflicting choice
of law provision in any of the documents
between the parties; and (iii) be conducted by the AAA, or such other administrator as the parties
shall mutually agree upon, in accordance with the AAA’s commercial dispute resolution procedures,
unless the claim or counterclaim is at

-15-

 

least $1,000,000.00 exclusive of claimed interest,
arbitration fees and costs in which case the arbitration shall be conducted in accordance with the
AAA’s optional procedures for large, complex commercial disputes (the commercial dispute resolution
procedures or the optional procedures for large, complex commercial disputes to be referred to
herein, as applicable, as the “Rules”). If there is any inconsistency between the terms hereof and
the Rules, the terms and procedures set forth herein shall control. Any party who fails or refuses
to submit to arbitration following a demand by any other party shall bear all costs and expenses
incurred by such other party in compelling arbitration of any dispute. Nothing contained herein
shall be deemed to be a waiver by any party that is a bank of the protections afforded to it under
12 U.S.C. §91 or any similar applicable state law.

     (c) No Waiver of Provisional Remedies, Self-Help and Foreclosure. The
arbitration requirement does not limit the right of any party to (i) foreclose against real or
personal property collateral; (ii) exercise self-help remedies relating to collateral or proceeds
of collateral such as setoff or repossession to the extent permitted under applicable law; or (iii)
obtain provisional or ancillary remedies such as replevin, injunctive relief, attachment or the
appointment of a receiver, before during or after the pendency of any arbitration proceeding. This
exclusion does not constitute a waiver of the right or obligation of any party to submit any
dispute to arbitration or reference hereunder, including those arising from the exercise of the
actions detailed in sections (i), (ii) and (iii) of this paragraph.

     (d) Arbitrator Qualifications and Powers. Any arbitration proceeding in which
the amount in controversy is $5,000,000.00 or less will be decided by a single arbitrator selected
according to the Rules, and who shall not render an award of greater than $5,000,000.00. Any
dispute in which the amount in controversy exceeds $5,000,000.00 shall be decided by majority vote
of a panel of three arbitrators; provided however, that all three arbitrators must actively
participate in all hearings and deliberations. The arbitrator will be a neutral attorney licensed
in the State of Illinois or a neutral retired judge of the state or federal judiciary of Illinois,
in either case with a minimum of ten years experience in the substantive law applicable to the
subject matter of the dispute to be arbitrated. The arbitrator will determine whether or not an
issue is arbitratable and will give effect to the statutes of limitation in determining any claim.
In any arbitration proceeding the arbitrator will decide (by documents only or with a hearing at
the arbitrator’s discretion) any pre-hearing motions which are similar to motions to dismiss for
failure to state a claim or motions for summary adjudication. The arbitrator shall resolve all
disputes in accordance with the substantive law of Illinois and may grant any remedy or relief that
a court of such state could order or grant within the scope hereof and such ancillary relief as is
necessary to make effective any award. The arbitrator shall also have the power to award recovery
of all costs and fees, to impose sanctions and to take such other action as the arbitrator deems
necessary to the same extent a judge could pursuant to the Federal Rules of Civil Procedure, the
Illinois Rules of Civil Procedure or other applicable law. Judgment upon the award rendered by the
arbitrator may be entered in any court having jurisdiction. The institution and maintenance of an
action for judicial relief or pursuit of a provisional or ancillary remedy shall not constitute a
waiver of the right of any party, including the plaintiff, to submit the controversy or claim to
arbitration if any other party contests such action for judicial relief.

     (e) Discovery. In any arbitration proceeding, discovery will be permitted in
accordance with the Rules. All discovery shall be expressly limited to matters directly relevant
to the dispute being arbitrated and must be completed no later than 20 days before the hearing
date. Any requests for an extension of the discovery periods, or any discovery disputes, will be
subject to final determination by the arbitrator upon a showing that the request for discovery is
essential for the party’s presentation and that no alternative means for obtaining information is
available.

-16-

 

     (f) Class Proceedings and Consolidations. No party hereto shall be entitled to join
or consolidate disputes by or against others in any arbitration, except parties who have executed
any Loan Document, or to include in any arbitration any dispute as a representative or member of a
class, or to act in any arbitration in the interest of the general public or in a private attorney
general capacity.

     (g) Payment Of Arbitration Costs And Fees. The arbitrator shall award all costs and
expenses of the arbitration proceeding.

     (h) Miscellaneous. To the maximum extent practicable, the AAA, the arbitrators and
the parties shall take all action required to conclude any arbitration proceeding within 180 days
of the filing of the dispute with the AAA. No arbitrator or other party to an arbitration
proceeding may disclose the existence, content or results thereof, except for disclosures of
information by a party required in the ordinary course of its business or by applicable law or
regulation. If more than one agreement for arbitration by or between the parties potentially
applies to a dispute, the arbitration provision most directly related to the Loan Documents or the
subject matter of the dispute shall control. This arbitration provision shall survive termination,
amendment or expiration of any of the Loan Documents or any relationship between the parties.

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the day
and year first written above.

	 	 	 	 	 	 	 
	 	 	 	 	WELLS FARGO HSBC TRADE BANK,
	SIGMATRON INTERNATIONAL, INC.	 	NATIONAL ASSOCIATION
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	By:

	 	/s/ Linda K. Frauendorfer
	 	By:
	 	/s/ Matthew Soper
	 

	 	 
	 	 	 	 
	 

	 	Title: Chief Financial Officer
	 	 	 	Matthew Soper

Relationship Manager

-17-

 

Disclosure Schedules

Credit Agreement

between

SigmaTron International, Inc.

and

Wells Fargo HSBC Trade Bank, National Association,

dated January 8, 2010

-18-

 

Credit Agreement

between

SigmaTron International, Inc.

and

Wells Fargo HSBC Trade Bank, National Association,

dated January 8, 2010

Schedule 2.11

Environmental Matters

None

-19-

 

Credit Agreement

between

SigmaTron International, Inc.

and

Wells Fargo HSBC Trade Bank, National Association,

dated January 8, 2010

Schedule 5.3

Other Indebtedness

	 	 	 	 	 	 	 	 
	 	 	 	 	 	Loan Balance as of	 
	Name	 	Lease #	 	January, 2010	 
	 	 
	WELLS FARGO EQUIPMENT FINANCE, INC.*
	 	 	 	 	 	 	 
	733 MARQUETTE AVENUE
	 	 	 	 	 	 	 
	SUITE 700
	 	 	 	 	 	 	 
	MAC N9306-070
	 	 	 	 	 	 	 
	MINNEAPOLIS, MINNESOTA 55402
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	PLAINS CAPITAL LEASING
	 	 	2114	 	$	35,547.43	 
	6221 RIVERSIDE DR.
	 	 	 	 	 	 	 
	SUITE 105
	 	 	 	 	 	 	 
	IRVING, TEXAS
	 	 	 	 	 	 	 
	PH 214-775-4607
	 	 	 	 	 	 	 
	(CUST. NO. 0002114)
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	GE CAPITAL**
	 	GE 013	 	$	177,923.09	 
	P.O. BOX 31001 0802
	 	GE 014	 	$	244,950.96	 
	PASADENA CA 91110-0802
	 	 	 	 	 	 	 
	PH: 800-362-0135
	 	 	 	 	 	 	 
	CUST. NO 825622327
	 	 	 	 	 	 	 

 

			
	*	 	replaces Banc of America Leasing & Capital LLC, Master Lease Agreement No. 4762700
	 
	**	 	leased property in Mexico and not subject to lien of Wells Fargo HSBC Trade Bank, National
Association or affiliates.

-20-

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