<PAGE>
As filed with the Securities and Exchange Commission on October 6, 1997
Registration No. 333-
__________________________________________________________________________
__________________________________________________________________________
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM S-3
REGISTRATION STATEMENT
Under
THE SECURITIES ACT OF 1933
___________________
CMS ENERGY CORPORATION CMS ENERGY TRUST I CMS ENERGY TRUST II
(Exact name of (Exact name of (Exact name of
registrant as registrant as registrant as
specified in its specified in its specified in its
charter) charter) charter)
Michigan Delaware Delaware
(State or other (State or other (State or other
jurisdiction of jurisdiction of jurisdiction of
incorporation or incorporation or incorporation or
organization) organization) organization)
38-2726431 52-6863512 To Be Applied For
(I.R.S. Employer (I.R.S. Employer (I.R.S. Employer
Identification No.) Identification No.) Identification No.)
Fairlane Plaza South, Suite 1100
330 Town Center Drive
Dearborn, Michigan 48126
(313) 436-9200
(Address, including zip code, and telephone number,
including area code, of registrant's principal executive offices)
___________________
Alan M. Wright
Senior Vice President, Chief Financial Officer and Treasurer
Fairlane Plaza South, Suite 1100
330 Town Center Drive
Dearborn, Michigan 48126
(313) 436-9200
(Name, address, including zip code, and telephone number,
including area code, of agent for service)
___________________
It is respectfully requested that the Commission send copies of all
notices, orders and communications to:
Michael D. VanHemert, Esq.
CMS Energy Corporation
Fairlane Plaza South
330 Town Center Drive, Suite 1100
Dearborn, Michigan 48126
(313) 436-9602
___________________
<PAGE>
Approximate date of commencement of proposed sale to the public: As
soon as practicable after the effective date of this Registration
Statement.
___________________
If the only securities being registered on this Form are being
offered pursuant to dividend or interest reinvestment plans, please check
the following box: __
If any of the securities being registered on this Form are to be
offered on a delayed or continuous basis pursuant to Rule 415 under the
Securities Act of 1933, other than securities offered only in connection
with dividend or interest reinvestment plans, check the following box: _X_
If this Form is filed to register additional securities for an
offering pursuant to Rule 462(b) under the Securities Act, please check
the following box and list the Securities Act registration statement
number of the earlier effective registration statement for the same
offering. _X_ Registration No. 333-27849
If this Form is a post-effective amendment filed pursuant to Rule
462(c) under the Securities Act, check the following box and list the
Securities Act registration statement number of the earlier effective
registration statement for the same offering. __
If delivery of the prospectus is expected to be made pursuant to
Rule 434, please check the following box. __
<TABLE>
CALCULATION OF REGISTRATION FEE
_______________________________________________________________________________________________________________________
Title of each class Amount Proposed Proposed Amount of
securities to be to be maximum offering maximum aggregate registration
registered registered (1) price per security (1)(2)(3) offering price(1)(2)(3) fee(1)
_______________________________________________________________________________________________________________________
Common Stock, par value
$.01 per share, of
CMS Energy Corporation
Subordinated Debentures
of CMS Energy Corporation(4)
Preferred Securities of
CMS Energy Trust I(5)
Preferred Securities of
CMS Energy Trust II(5)
Guarantees of CMS Energy
Corporation with respect
to Preferred Securities
of CMS Energy Trust I and
CMS Energy Trust II(6)
Stock Purchase Contracts of
CMS Energy Corporation(7)
Stock Purchase Units of
CMS Energy Corporation(7)
<S> <C> <C> <C> <C>
Total $25,500,000 100% $25,500,000 $7,727.27
_______________________________________________________________________________________________________________________
<FN>
(1) There are being registered hereunder such presently indeterminate
principal amount or number of shares of CMS Energy Corporation Common
Stock, Subordinated Debentures, Stock Purchase Contracts and Stock
Purchase Units, as well as Preferred Securities of CMS Energy Trust I
and CMS Energy Trust II, as may from time to time be issued at
indeterminate prices, plus additional shares of CMS Energy
Corporation Common Stock into which such Subordinated Debentures or
Preferred Securities may be converted.
(2) Estimated solely for the purpose of calculating the registration fee.
Pursuant to Rule 457(o) under the Securities Act of 1933 which
permits the registration fee to be calculated on the basis of the
maximum offering price of all the securities listed, the table does
not specify by each class information as to the amount to be
registered, proposed maximum offering price per unit or proposed
maximum aggregate offering price.
(3) Exclusive of accrued interest and distributions, if any.
(4) The Subordinated Debentures may be purchased by, and constitute
assets of, CMS Energy Trust I or CMS Energy Trust II, and may later
be distributed under certain circumstances to holders of Preferred
Securities. Additionally, CMS Energy Common Stock may be issued upon
conversion of any convertible Subordinated Debentures. In either
case, no additional consideration will be received.
(5) The Preferred Securities may be convertible into the Subordinated
Debentures, which may be convertible into shares of CMS Energy
Corporation Common Stock. In addition, the Preferred Securities may
be directly convertible into shares of CMS Energy Corporation Common
Stock. Shares of CMS Energy Corporation Common Stock issued upon
conversion of the Subordinated Debentures or Preferred Securities
will be issued without the payment of additional consideration.
(6) The Registration Statement is deemed to include the obligations of
CMS Energy Corporation under the Guarantee (as defined herein) and
certain backup undertakings under (i) the Subordinated Debt Indenture
(as defined herein) pursuant to which the Subordinated Debentures
will be issued; (ii) the Subordinated Debentures and (iii) the
Declarations of Trust of CMS Energy Trust I and CMS Energy Trust II,
including CMS Energy's obligations under such indenture to pay costs,
expenses, debts and liabilities of the Trusts (other than with
respect to the Preferred Securities and the Common Securities of
CMS Energy Trust I or CMS Energy Trust II), which taken together
provide a full and unconditional guarantee of amounts due on the
Preferred Securities. No separate consideration will be received for
the Guarantee and such backup undertakings. The Guarantees are not
traded separately.
(7) Includes a presently indeterminate number of shares of CMS Energy
Corporation Common Stock to be issuable by CMS Energy Corporation
upon settlement of the Stock Purchase Contracts or Stock Purchase
Units issued by CMS Energy Corporation.
</TABLE>
This Registration Statement shall become effective upon filing with
the Commission in accordance with Rule 462(b) under the Securities Act of
1933.
<PAGE>
<PAGE>
INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE PURSUANT
TO GENERALINSTRUCTION IV OF FORM S-3
In accordance with the provisions of General Instruction IV of Form
S-3, CMS Energy Corporation ("CMS Energy") hereby incorporates by
reference the contents of Amendment No. 1 to CMS Energy's Registration
Statement on Form S-3 (Registration No. 333-27849) filed with the
Securities and Exchange Commission on June 13, 1997, which Registration
Statement was declared effective on June 13, 1997.
PART II. INFORMATION NOT REQUIRED IN PROSPECTUS
All Exhibits filed with the Registration Statement on Form S-3, as
amended (File No. 333-27849), are incorporated by reference into, and
shall be deemed part of, this Registration Statement, except the
following, which are filed herewith:
Exhibit No. Description
(4)(a) - Fourth Supplemental Indenture dated as of
September 26, 1997 between CMS Energy Corporation
and NBD Bank, as Trustee.
*(4)(b) - Fourth Supplemental Indenture dated as of
September 17, 1997 between CMS Energy Corporation
and The Chase Manhattan Bank, as Trustee.
(Designated in CMS Energy's Form S-3 Registration
Statement filed September 22, 1997, File No. 333-
36115, as Exhibit (4)(d).)
*(4)(c) - Credit Agreement dated as of July 2, 1997, among
CMS Energy, the Banks, the Administrative Agent,
Collateral Agent, Documentation Agent,
Syndication Agent, Co-Agents and Lead Manager,
all as defined therein, and the Exhibits and
Schedules thereto. (Designated in CMS Energy's
Form 10-Q for the quarter ended June 30, 1997.)
*(4)(d) - First Supplemental Indenture dated as of June 20,
1997 between CMS Energy and The Bank of New York,
as Trustee. (Designated in CMS Energy's Form 8-K
dated July 1, 1997, File No. 1-9513, as Exhibit
(4)(b).)
(5) - Opinion of Michael D. VanHemert, Assistant
General Counsel for CMS Energy.
*(12) - Statement re computation of ratios of earnings to
fixed charges. (Designated in CMS Energy's Form
S-3 Registration Statement filed September 22,
1997, File No. 333-36115, as Exhibit (12).)
- Statement re computation of ratios of earnings to
fixed charges and preferred stock dividends.
(Designated in CMS Energy's Form S-3 Registration
Statement filed August 21, 1997, File No. 333-
34087, as Exhibit (12).)
(15) - Letter regarding unaudited interim financial
information.
(23)(a) - Consent of Michael D. VanHemert, Assistant
General Counsel for CMS Energy (included in
Exhibit (5) above.)
(23)(b) - Consent of Arthur Andersen LLP.
*Previously filed
Exhibits listed above which have been filed with the Securities and
Exchange Commission are incorporated herein by reference with the same
effect as if filed with this Registration Statement.
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the
registrant certifies that it has reasonable grounds to believe that it
meets all of the requirements for filing on Form S-3 and has duly caused
this Registration Statement to be signed on its behalf by the undersigned,
thereunto duly authorized, in the City of Dearborn, and State of Michigan,
on the 6th day of October, 1997.
CMS ENERGY CORPORATION
By /s/ A.M. Wright
____________________
Alan M. Wright
Senior Vice President,
Chief Financial Officer
and Treasurer
Pursuant to the requirements of the Securities Act of 1933, this
Registration Statement has been signed below by the following persons in
their respective capacities as officers and/or directors of CMS Energy
Corporation and on the dates indicated.
NAME TITLE DATE
(i) Principal executive officer
Chairman of the Board, October 6, 1997
/s/ William T. McCormick, Jr. Chief Executive
- ------------------------------ Officer and Director
(William T. McCormick, Jr.)
(ii) Principal financial officer:
Senior Vice President, October 6, 1997
/s/ A.M. Wright Chief Financial
___________________________ and Treasurer
(Alan M. Wright)
(iii) Controller or principal
accounting officer:
Senior Vice President, October 6, 1997
/s/ P.D. Hopper and Chief Accounting
___________________________ Officer
(Preston D. Hopper)
<PAGE>
* October 6, 1997
___________________________
(John M. Deutch) Director
* October 6, 1997
___________________________
(James J. Duderstadt) Director
* October 6, 1997
___________________________
(Kathleen R. Flaherty) Director
* October 6, 1997
___________________________
(Victor J. Fryling) Director
* October 6, 1997
__________________________
(Earl D. Holton) Director
* October 6, 1997
__________________________
(William U. Parfet) Director
* October 6, 1997
__________________________
(Percy A. Pierre) Director
* October 6, 1997
__________________________
(Kenneth Whipple) Director
* October 6, 1997
_________________________
(John B. Yasinsky) Director
*By /s/ A.M. Wright October 6, 1997
____________________
(Alan M. Wright)
Attorney-in-fact<PAGE>
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, CMS Energy
Trust I certifies that is has reasonable grounds to believe that it meets
all the requirements for filing on Form S-3 and has duly caused this Form
S-3 Registration Statement to be signed on its behalf by the undersigned,
thereunto duly authorized, in the City of Dearborn, State of Michigan, on
the 6th day of October, 1997.
CMS ENERGY TRUST I
By /s/ A.M. Wright
___________________________
Alan M. Wright, Trustee
By /s/ Thomas A. McNish
____________________________
Thomas A. McNish, Trustee
<PAGE>
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, CMS Energy
Trust II certifies that is has reasonable grounds to believe that it meets
all the requirements for filing on Form S-3 and has duly caused this Form
S-3 Registration Statement to be signed on its behalf by the undersigned,
thereunto duly authorized, in the City of Dearborn, State of Michigan, on
the 6th day of October, 1997.
CMS ENERGY TRUST II
By /s/ A.M. Wright
_____________________________
Alan M. Wright, Trustee
By /s/ Thomas A. McNish
_____________________________
Thomas A. McNish, Trustee
<PAGE>
<PAGE>
__________________________________________________________________________
__________________________________________________________________________
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
________________
FORM S-3
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
CMS ENERGY CORPORATION
CMS ENERGY TRUST I
CMS ENERGY TRUST II
EXHIBITS
__________________________________________________________________________
__________________________________________________________________________
<PAGE>
<PAGE>
EXHIBIT INDEX
EXHIBIT NO. DESCRIPTION
(4)(a) - Fourth Supplemental Indenture dated as of September
26, 1997 between CMS Energy Corporation and NBD Bank,
as Trustee.
*(4)(b) - Fourth Supplemental Indenture dated as of September
17, 1997 between CMS Energy Corporation and The Chase
Manhattan Bank, as Trustee. (Designated in
CMS Energy's Form S-3 Registration Statement filed
September 22, 1997, File No. 333-36115, as Exhibit
(4)(d).)
*(4)(c) - Credit Agreement dated as of July 2, 1997, among
CMS Energy, the Banks, the Administrative Agent,
Collateral Agent, Documentation Agent, Syndication
Agent, Co-Agents and Lead Manager, all as defined
therein, and the Exhibits and Schedules thereto.
(Designated in CMS Energy's Form 10-Q for the quarter
ended June 30, 1997.)
*(4)(d) - First Supplemental Indenture dated as of June 20, 1997
between CMS Energy and The Bank of New York, as
Trustee. (Designated in CMS Energy's Form 8-K dated
July 1, 1997, File No. 1-9513, as Exhibit (4)(b).)
(5) - Opinion of Michael D. VanHemert, Assistant General
Counsel for CMS Energy.
*(12) - Statement re computation of ratios of earnings to
fixed charges. (Designated in CMS Energy's Form S-3
Registration Statement filed September 22, 1997, File
No. 333-36115, as Exhibit (12).)
- Statement re computation of ratios of earnings to
fixed charges and preferred stock dividends.
(Designated in CMS Energy's Form S-3 Registration
Statement filed August 21, 1997, File No. 333-34087,
as Exhibit (12).)
(15) - Letter regarding unaudited interim financial
information.
(23)(a) - Consent of Michael D. VanHemert, Assistant General
Counsel for CMS Energy (included in Exhibit (5)
above.)
(23)(b) - Consent of Arthur Andersen LLP.
*Previously filed
<PAGE>
EXHIBIT (4)(a)
FOURTH SUPPLEMENTAL INDENTURE
dated as of September 26, 1997
____________________
This Fourth Supplemental Indenture, dated as of the 26th day of
September, 1997 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
Fairlane Plaza South, Suite 1100, 330 Town Center Drive, Dearborn,
Michigan 48126, and NBD Bank, a Michigan banking corporation (hereinafter
called the "Trustee") and having its principal Corporate Trust Office at
611 Woodward Avenue, Detroit, Michigan 48226.
WITNESSETH:
WHEREAS, the Issuer and the Trustee (formerly known as 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 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 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 "7 5/8% Senior Unsecured Notes Due 2004" (the "2004 Notes"),
providing for the issuance of the 2004 Notes and amending and adding
certain provisions thereof for the benefit of the Holders of the 2004
Notes; and
WHEREAS, the Issuer and the Trustee desire to enter into this
Fourth Supplemental Indenture for the purposes set forth in Sections 2.3
and 8.1(e) of the Original Indenture as referred to above; and
WHEREAS, the Issuer has furnished the Trustee with a copy of the
resolutions of its Board of Directors certified by its Secretary or
Assistant Secretary authorizing the execution of this Fourth Supplemental
Indenture; and
WHEREAS, all things necessary to make this 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, THIS FOURTH SUPPLEMENTAL INDENTURE
WITNESSETH:
For and in consideration of the premises and the purchase of the
2004 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 2004 Notes, as
follows:
ARTICLE I
STANDARD PROVISIONS; DEFINITIONS
SECTION 1.01. STANDARD PROVISIONS. The Original Indenture
together with this 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 Indenture and are used herein
with the same meanings as in the Indenture.
SECTION 1.02. DEFINITIONS. Section 1.1 of the Original
Indenture is amended to insert the new definitions applicable to the 2004
Notes, in the appropriate alphabetical sequence, as follows:
"Amortization Expense" means, for any period, amounts recognized
during such period as amortization of capital leases, depletion, nuclear
fuel, goodwill and assets classified as intangible assets in accordance
with generally accepted accounting principles.
"Applicable Premium" means, with respect to a 2004 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 2004 Note (or portion
thereof) being redeemed plus all interest payments due on such 2004 Note
(or portion thereof), which present value shall be computed using a
discount rate equal to the Treasury Rate plus 50 basis points, over
(B) the principal amount of such 2004 Note (or portion thereof) being
redeemed at such time. For purposes of this definition, the present
values of interest and principal payments will be determined in accordance
with generally accepted principles of financial analysis.
"Average Life" means, as of the date of determination, with
respect to any Indebtedness, the quotient obtained by dividing (i) the sum
of the products of (x) the number of years from the date of determination
to the dates of each successive scheduled principal payment of such
Indebtedness and (y) the amount of such principal payment by (ii) the sum
of all such principal payments.
"Capital Lease Obligation" of a Person means any obligation that
is required to be classified and accounted for as a capital lease on the
face of a balance sheet of such Person prepared in accordance with
generally accepted accounting principles; the amount of such obligation
shall be the capitalized amount thereof, determined in accordance with
generally accepted accounting principles; the stated maturity thereof
shall be the date of the last payment of rent or any other amount due
under such lease prior to the first date upon which such lease may be
terminated by the lessee without payment of a penalty; and such obligation
shall be deemed secured by a Lien on any property or assets to which such
lease relates.
"Capital Stock" means any and all shares, interests, rights to
purchase, warrants, options, participations or other equivalents of or
interests in (however designated) corporate stock, including any Preferred
Stock or Letter Stock; provided that Hybrid Preferred Securities shall not
be considered Capital Stock for purposes of this definition.
"Change in Control" means an event or series of events by which
(i) the Issuer ceases to own beneficially, directly or indirectly, at
least 80% of the total voting power of all classes of Capital Stock then
outstanding of Consumers (whether arising from issuance of securities of
the Issuer or Consumers, any direct or indirect transfer of securities by
the Issuer or Consumers, any merger, consolidation, liquidation or
dissolution of the Issuer or Consumers or otherwise); (ii) any "person" or
"group" (as such terms are used in Sections 13(d) and 14(d) of the
Exchange Act) becomes the "beneficial owner" (as such term is used in
Rules 13d-3 and 13d-5 under the Exchange Act, except that a person or
group shall be deemed to have "beneficial ownership" of all shares that
such person or group has the right to acquire, whether such right is
exercisable immediately or only after the passage of time), directly or
indirectly, of more than 35% of the Voting Stock of the Issuer; or (iii)
the Issuer consolidates with or merges into another corporation or
directly or indirectly conveys, transfers or leases all or substantially
all of its assets to any Person, or any corporation consolidates with or
merges into the Issuer, in either event pursuant to a transaction in which
the outstanding Voting Stock of the Issuer is changed into or exchanged
for cash, securities, or other property, other than any such transaction
in which (A) the outstanding Voting Stock of the Issuer is changed into or
exchanged for Voting Stock of the surviving corporation and (B) the
holders of the Voting Stock of the Issuer immediately prior to such
transaction retain, directly or indirectly, substantially proportionate
ownership of the Voting Stock of the surviving corporation immediately
after such transaction.
"CMS Electric and Gas" means CMS Electric and Gas Company, a
Michigan corporation and wholly-owned subsidiary of Enterprises.
"CMS Gas Transmission and Storage" means CMS Gas Transmission
and Storage Company, a Michigan corporation and wholly-owned subsidiary of
Enterprises.
"CMS Generation" means CMS Generation Co., a Michigan
corporation and wholly-owned subsidiary of Enterprises.
"CMS MST" means CMS Marketing, Services and Trading Company, a
Michigan corporation and wholly-owned subsidiary of Enterprises.
"Consolidated Assets" means, at any date of determination, the
aggregate assets of the Issuer and its Consolidated Subsidiaries
determined on a consolidated basis in accordance with generally accepted
accounting principles.
"Consolidated Coverage Ratio" with respect to any period means
the ratio of (i) the aggregate amount of Operating Cash Flow for such
period to (ii) the aggregate amount of Consolidated Interest Expense for
such period.
"Consolidated Current Liabilities" means, for any period, the
aggregate amount of liabilities of the Issuer and its Consolidated
Subsidiaries which may properly be classified as current liabilities
(including taxes accrued as estimated), after (i) eliminating all inter-
company items between the Issuer and any Consolidated Subsidiary and (ii)
deducting all current maturities of long-term Indebtedness, all as
determined in accordance with generally accepted accounting principles.
"Consolidated Indebtedness" means, at any date of determination,
the aggregate Indebtedness of the Issuer and its Consolidated Subsidiaries
determined on a consolidated basis in accordance with generally accepted
accounting principles; provided that Consolidated Indebtedness shall not
include any subordinated debt owned by any Hybrid Preferred Securities
Subsidiary.
"Consolidated Interest Expense" means, for any period, the total
interest expense in respect of Consolidated Indebtedness of the Issuer and
its Consolidated Subsidiaries, including, without duplication, (i)
interest expense attributable to capital leases, (ii) amortization of debt
discount, (iii) capitalized interest, (iv) cash and noncash interest
payments, (v) commissions, discounts and other fees and charges owed with
respect to letters of credit and bankers' acceptance financing, (vi) net
costs under Interest Rate Protection Agreements (including amortization of
discount) and (vii) interest expense in respect of obligations of other
Persons deemed to be Indebtedness of the Issuer or any Consolidated
Subsidiaries under clause (v) or (vi) of the definition of Indebtedness,
provided, however, that Consolidated Interest Expense shall exclude (a)
any costs otherwise included in interest expense recognized on early
retirement of debt and (b) any interest expense in respect of any
Indebtedness of any Subsidiary of Consumers, CMS Generation, NOMECO,
CMS Electric and Gas, CMS Gas Transmission and Storage, CMS MST or any
other Designated Enterprises Subsidiary, provided that such Indebtedness
is without recourse to any assets of the Issuer, Consumers, Enterprises,
CMS Generation, NOMECO, CMS Electric and Gas, CMS Gas Transmission and
Storage, CMS MST or any other Designated Enterprises Subsidiary.
"Consolidated Net Income" means, for any period, the net income
of the Issuer and its Consolidated Subsidiaries determined on a
consolidated basis in accordance with generally accepted accounting
principles; provided, however, that there shall not be included in such
Consolidated Net Income:
(i) any net income of any Person if such Person is not a
Subsidiary, except that (A) the Issuer's equity in the net income of
any such Person for such period shall be included in such
Consolidated Net Income up to the aggregate amount of cash actually
distributed by such Person during such period to the Issuer or a
Consolidated Subsidiary as a dividend or other distribution and (B)
the Issuer's equity in a net loss of any such Person for such period
shall be included in determining such Consolidated Net Income;
(ii) any net income of any Person acquired by the Issuer or a
Subsidiary in a pooling of interests transaction for any period prior
to the date of such acquisition;
(iii) any gain or loss realized upon the sale or other
disposition of any property, plant or equipment of the Issuer or its
Consolidated Subsidiaries which is not sold or otherwise disposed of
in the ordinary course of business and any gain or loss realized upon
the sale or other disposition of any Capital Stock of any Person; and
(iv) any net income of any Subsidiary of Consumers,
CMS Generation, NOMECO, CMS Electric and Gas, CMS Gas Transmission
and Storage, CMS MST or any other Designated Enterprises Subsidiary
whose interest expense is excluded from Consolidated Interest
Expense, provided, however, that for purposes of this subsection
(iv), any cash, dividends or distributions of any such Subsidiary to
the Issuer shall be included in calculating Consolidated Net Income.
"Consolidated Net Tangible Assets" means, for any period, the
total amount of assets (less accumulated depreciation or amortization,
allowances for doubtful receivables, other applicable reserves and other
properly deductible items) as set forth on the most recently available
quarterly or annual consolidated balance sheet of the Issuer and its
Consolidated Subsidiaries, determined on a consolidated basis in
accordance with generally accepted accounting principles, and after giving
effect to purchase accounting and after deducting therefrom, to the extent
otherwise included, the amounts of: (i) Consolidated Current Liabilities;
(ii) minority interests in Consolidated Subsidiaries held by Persons other
than the Issuer or a Restricted Subsidiary; (iii) excess of cost over fair
value of assets of businesses acquired, as determined in good faith by the
Board of Directors as evidenced by Board resolutions; (iv) any revaluation
or other write-up in value of assets subsequent to December 31, 1996, as a
result of a change in the method of valuation in accordance with generally
accepted accounting principles; (v) unamortized debt discount and expenses
and other unamortized deferred charges, goodwill, patents, trademarks,
service marks, trade names, copyrights, licenses organization or
developmental expenses and other intangible items; (vi) treasury stock;
and (vii) any cash set apart and held in a sinking or other analogous fund
established for the purpose of redemption or other retirement of Capital
Stock to the extent such obligation is not reflected in Consolidated
Current Liabilities.
"Consolidated Net Worth" of any Person means the total of the
amounts shown on the consolidated balance sheet of such Person and its
consolidated subsidiaries, determined on a consolidated basis in
accordance with generally accepted accounting principles, as of any date
selected by such Person not more than 90 days prior to the taking of any
action for the purpose of which the determination is being made (and
adjusted for any material events since such date), as (i) the par or
stated value of all outstanding Capital Stock plus (ii) paid-in capital or
capital surplus relating to such Capital Stock plus (iii) any retained
earnings or earned surplus less (A) any accumulated deficit, (B) any
amounts attributable to Redeemable Stock and (C) any amounts attributable
to Exchangeable Stock.
"Consolidated Subsidiary" means, any Subsidiary whose accounts
are or are required to be consolidated with the accounts of the Issuer in
accordance with generally accepted accounting principles.
"Consumers" means Consumers Energy Company, a Michigan
corporation, all of whose common stock is on the date hereof owned by the
Issuer.
"Designated Enterprises Subsidiary" means any wholly-owned
subsidiary of Enterprises formed after the date of this Fourth
Supplemental Indenture which is designated a Designated Enterprises
Subsidiary by the Board of Directors.
"Enterprises" means CMS Enterprises Company, a Michigan
corporation and wholly-owned subsidiary of the Issuer.
"Event of Default" with respect to the 2004 Notes has the
meaning specified in Article V of this Fourth Supplemental Indenture.
"Exchange Act" means the Securities Exchange Act of 1934, as
amended.
"Exchangeable Stock" means any Capital Stock of a corporation
that is exchangeable or convertible into another security (other than
Capital Stock of such corporation that is neither Exchangeable Stock or
Redeemable Stock).
"Hybrid Preferred Securities" means any preferred securities
issued by a Hybrid Preferred Securities Subsidiary, where such preferred
securities have the following characteristics:
(i) such Hybrid Preferred Securities Subsidiary lends
substantially all of the proceeds from the issuance of such
preferred securities to the Company or Consumers in exchange
for subordinated debt issued by the Company or Consumers
respectively;
(ii) such preferred securities contain terms providing for the
deferral of distributions corresponding to provisions
providing for the deferral of interest payments on such
subordinated debt; and
(iii) the Company or Consumers (as the case may be) makes periodic
interest payments on such subordinated debt, which interest
payments are in turn used by the Hybrid Preferred Securities
Subsidiary to make corresponding payments to the holders of
the Hybrid Preferred Securities.
"Hybrid Preferred Securities Subsidiary" means any business
trust (or similar entity) (i) all of the common equity interest of which
is owned (either directly or indirectly through one or more wholly-owned
Subsidiaries of the Company or Consumers) at all times by the Company or
Consumers, (ii) that has been formed for the purpose of issuing Hybrid
Preferred Securities and (iii) substantially all of the assets of which
consist at all times solely of subordinated debt issued by the Company or
Consumers (as the case may be) and payments made from time to time on such
subordinated debt.
"Indebtedness" of any Person means, without duplication,
(i) the principal of and premium (if any) in respect of (A)
indebtedness of such Person for money borrowed and (B) indebtedness
evidenced by notes, debentures, bonds or other similar instruments
for the payment of which such Person is responsible or liable;
(ii) all Capital Lease Obligations of such Person;
(iii) all obligations of such Person issued or assumed as the
deferred purchase price of property, all conditional sale obligations
and all obligations under any title retention agreement (but
excluding trade accounts payable arising in the ordinary course of
business);
(iv) all obligations of such Person for the reimbursement of
any obligor on any letter of credit, bankers' acceptance or similar
credit transaction (other than obligations with respect to letters of
credit securing obligations (other than obligations described in
clauses (i) through (iii) above) entered into in the ordinary course
of business of such Person to the extent such letters of credit are
not drawn upon or, if and to the extent drawn upon, such drawing is
reimbursed no later than the third Business Day following receipt by
such Person of a demand for reimbursement following payment on the
letter of credit);
(v) all obligations of the type referred to in clauses (i)
through (iv) 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) of other Persons secured by any Lien on any property or
asset of such Person (whether or not such obligation is assumed by
such Person), the amount of such obligation being deemed to be the
lesser of the value of such property or assets or the amount of the
obligation so secured.
"Interest Payment Date" means November 15, 1997 and each May 15
and November 15 in each year thereafter.
"Interest Rate Protection Agreement" means any interest rate
swap agreement, interest rate cap agreement or other financial agreement
or arrangement designed to protect the Issuer or any Subsidiary against
fluctuations in interest rates.
"Letter Stock", as applied to the Capital Stock of any
corporation, means Capital Stock of any class or classes (however
designated) which is intended to reflect the separate performance of
certain of the businesses or operations conducted by such corporation or
any of its subsidiaries.
"Lien" means any lien, mortgage, pledge, security interest,
conditional sale, title retention agreement or other charge or encumbrance
of any kind.
"Net Cash Proceeds" means, (a) with respect to any Asset Sale ,
the aggregate proceeds of such Asset Sale including the fair market value
(as determined by the Board of Directors and net of any associated debt
and of any consideration other than Capital Stock received in return) of
property other than cash, received by the Issuer, net of (i) brokerage
commissions and other fees and expenses (including fees and expenses of
counsel and investment bankers) related to such Asset Sale, (ii)
provisions for all taxes (whether or not such taxes will actually be paid
or are payable) as a result of such Asset Sale without regard to the
consolidated results of operations of the Issuer and its Restricted
Subsidiaries, taken as a whole, (iii) payments made to repay Indebtedness
or any other obligation outstanding at the time of such Asset Sale that
either (A) is secured by a Lien on the property or assets sold or (B) is
required to be paid as a result of such sale and (iv) appropriate amounts
to be provided by the Issuer or any Restricted Subsidiary of the Issuer as
a reserve against any liabilities associated with such Asset Sale
including, without limitation, pension and other post-employment benefit
liabilities, liabilities related to environmental matters and liabilities
under any indemnification obligations associated with such Asset Sale, all
as determined in conformity with generally accepted accounting principles
and (b) with respect to any issuance or sale or contribution in respect of
Capital Stock, the aggregate proceeds of such issuance, sale or
contribution, including the fair market value (as determined by the Board
of Directors and net of any associated debt and of any consideration other
than Capital Stock received in return) of property other than cash,
received by the Issuer, net of attorneys' fees, accountants' fees,
underwriters' or placement agents' fees, discounts or commissions and
brokerage, consultant and other fees incurred in connection with such
issuance or sale and net of taxes paid or payable as a result thereof,
provided, however, that if such fair market value as determined by the
Board of Directors of property other than cash is greater than $25
million, the value thereof shall be based upon an opinion from an
independent nationally recognized firm experienced in the appraisal or
similar review of similar types of transactions.
"NOMECO" means, CMS NOMECO Oil & Gas Co., a Michigan
corporation and wholly-owned subsidiary of the Issuer.
"Non-Convertible Capital Stock" means, with respect to any
corporation, any non-convertible Capital Stock of such corporation and any
Capital Stock of such corporation convertible solely into non-convertible
Capital Stock other than Preferred Stock of such corporation; provided,
however, that Non-Convertible Capital Stock shall not include any
Redeemable Stock or Exchangeable Stock.
"Operating Cash Flow" means, for any period, with respect to
the Issuer and its Consolidated Subsidiaries, the aggregate amount of
Consolidated Net Income after adding thereto Consolidated Interest Expense
(adjusted to include costs recognized on early retirement of debt), income
taxes, depreciation expense, Amortization Expense and any noncash
amortization of debt issuance costs, any nonrecurring, noncash charges to
earnings and any negative accretion recognition.
"Other Rating Agency" shall mean any one of Duff & Phelps
Credit Rating Co., Fitch Investors Service, L.P. or Moody's Investors
Service, Inc., and any successor to any of these organizations which is a
nationally recognized statistical rating organization.
"Paying Agent" means any person authorized by the Issuer to pay
the principal of (and premium, if any) or interest on any of the 2004
Notes on behalf of the Issuer. Initially, the Paying Agent shall be the
Trustee.
"Predecessor 2004 Note" of any particular 2004 Note means every
previous 2004 Note evidencing all or a portion of the same debt as that
evidenced by such particular 2004 Note; and, for the purposes of the
definition, any 2004 Note authenticated and delivered under Section 2.9 of
the Indenture in exchange for or in lieu of a mutilated, destroyed, lost
or stolen 2004 Note shall be deemed to evidence the same debt as the
mutilated, destroyed, lost or stolen 2004 Note.
"Preferred Stock", as applied to the Capital Stock of any
corporation, means Capital Stock of any class or classes (however
designated) that is preferred as to the payment of dividends, or as to the
distribution of assets upon any voluntary or involuntary liquidation or
dissolution of such corporation, over shares of Capital Stock of any other
class of such corporation; provided that Hybrid Preferred Securities shall
not be considered Preferred Stock for purposes of this definition.
"Redeemable Stock" means any Capital Stock that by its terms or
otherwise is required to be redeemed prior to the first anniversary of the
Stated Maturity of the Outstanding 2004 Notes or is redeemable at the
option of the holder thereof at any time prior to the first anniversary of
the Stated Maturity of the Outstanding 2004 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 or the Issuer and its Restricted
Subsidiaries could not incur at least one dollar of additional
Indebtedness under Section 4.04, 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.
"Standard & Poor's" shall mean Standard & Poor's Ratings Group,
a division of McGraw Hill Inc., and any successor thereto which is a
nationally recognized statistical rating organization, or if such entity
shall cease to rate the 2004 Notes or shall cease to exist and there shall
be no such successor thereto, any other nationally recognized statistical
rating organization selected by the Issuer which is acceptable to the
Trustee.
"Subordinated Indebtedness" means any Indebtedness of the
Issuer (whether outstanding on the date of this Fourth Supplemental
Indenture or thereafter incurred) which is contractually subordinated or
junior in right of payment to the 2004 Notes.
"Support Obligations" means, for any person, without
duplication, any financial obligation, contingent or otherwise, of such
person guaranteeing or otherwise supporting any debt or other obligation
of any other person in any manner, whether directly or indirectly, and
including, without limitation, any obligation of such person, direct or
indirect, (i) to purchase or pay (or advance or supply funds for the
purchase or payment of) such debt or to purchase (or to advance or supply
funds for the purchase of) any security for the payment of such debt,
(ii) to purchase property, securities or services for the purpose of
assuring the owner of such debt of the payment of such debt, (iii) to
maintain working capital, equity capital, available cash or other
financial statement condition of the primary obligor so as to enable the
primary obligor to pay such debt, (iv) to provide equity capital under or
in respect of equity subscription arrangements (to the extent that such
obligation to provide equity capital does not otherwise constitute debt),
or (v) to perform, or arrange for the performance of, any non-monetary
obligations or non-funded debt payment obligations of the primary obligor.
"Tax-Sharing Agreement" means the Amended and Restated
Agreement for the Allocation of Income Tax Liabilities and Benefits, dated
January 1, 1994, as amended or supplemented from time to time, by and
among Issuer, each of the members of the Consolidated Group (as defined
therein), and each of the corporations that become members of the
Consolidated Group.
"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
2004 Notes; provided, however, that if the average life to stated maturity
of the 2004 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.
"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).
Certain terms, used principally in Articles Three, Four and
Seven of this Fourth Supplemental Indenture, are defined in those
Articles.
ARTICLE II
DESIGNATION AND TERMS OF THE 2004 Notes; FORMS
SECTION 2.01. ESTABLISHMENT OF SERIES. (a) There is hereby
created a series of Securities to be known and designated as the "7 5/8%
Senior Unsecured Notes Due 2004" and limited in aggregate principal amount
(except as contemplated in Section 2.3(f)(2) of the Indenture) to
$180,000,000. The Stated Maturity of the 2004 Notes is November 15, 2004.
(b) The 2004 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 7 5/8% per annum stated therein until the
principal thereof is paid or made available for payment. Interest will be
payable semiannually on each Interest Payment Date and at Maturity, as
provided in the form of the 2004 Note in Section 2.03 hereof.
(c) The Record Date referred to in Section 2.3(f)(4) of the
Indenture for the payment of the interest on any 2004 Note payable on any
Interest Payment Date (other than at Maturity) shall be the 1st day
(whether or not a Business Day) of the calendar month in which such
Interest Payment Date occurs and, in the case of interest payable at
Maturity, the Record Date shall be the date of Maturity.
(d) The payment of the principal of, premium (if any) and
interest on the 2004 Notes shall not be secured by a security interest in
any property.
(e) The 2004 Notes shall be redeemable at the option of the
Issuer, in whole or in part, at any time and from time to time, at a
redemption price equal to 100% of the principal amount of such 2004 Notes
being redeemed plus the Applicable Premium, if any, thereon at the time of
redemption, together with accrued interest, if any, thereon to the
redemption date. In no event will the redemption price ever be less than
100% of the principal amount of the 2004 Notes plus accrued interest to
the redemption date. The 2004 Notes shall be purchased by the Issuer at
the option of the Holders thereof as provided in Sections 3.01 and 4.06
hereof.
(f) The 2004 Notes shall not be convertible.
(g) The 2004 Notes will not be subordinated to the payment of
Senior Debt.
(h) The Issuer will not pay any additional amounts on the 2004
Notes held by a Person who is not a U.S. Person in respect of any tax,
assessment or government charge withheld or deducted.
(i) The events specified in Events of Default with respect to
the 2004 Notes shall include the events specified in Article Five of this
Fourth Supplemental Indenture. In addition to the covenants set forth in
Article Three of the Original Indenture, the Holders of the 2004 Notes
shall have the benefit of the covenants of the Issuer set forth in Article
Four hereto.
SECTION 2.02. FORMS GENERALLY. The 2004 Notes and Trustee's
certificates of authentication shall be in substantially the form set
forth in this Article, 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 2004
Notes, as evidenced by their execution thereof.
The definitive 2004 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 2004 Notes, as evidenced
by their execution thereof.
SECTION 2.03. FORM OF FACE OF 2004 NOTE.
CMS ENERGY CORPORATION
7 5/8% SENIOR UNSECURED NOTES DUE 2004
No. ________ $__________
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
_________________________________, or registered assigns, the principal
sum of ____________________ Dollars on November 15, 2004 ("Maturity") and
to pay interest thereon from September 26, 1997 (the "Original Issue
Date") or from the most recent Interest Payment Date to which interest has
been paid or duly provided for, semi-annually on May 15 and November 15 in
each year, commencing November 15, 1997 and at Maturity at the rate of
_____% per annum, until the principal hereof is paid or made available for
payment. The amount of interest payable on any Interest Payment Date
shall be computed on the basis of a 360-day year of twelve 30-day months.
The interest so payable, and punctually paid or duly provided for, on any
Interest Payment Date will, as provided in such Indenture, be paid to the
Person in whose name this 2004 Note (or one or more Predecessor 2004
Notes) is registered at the close of business on the Record Date for such
interest, which shall be the 1st day of the calendar month in which such
Interest Payment Date occurs (whether or not a Business Day) except that
the Record Date for interest payable at Maturity shall be the date of
Maturity. Any such interest not so punctually paid or duly provided for
will forthwith cease to be payable to the Holder on such Record Date and
may either be paid to the Person in whose name this 2004 Note (or one or
more Predecessor 2004 Notes) is registered at the close of business on a
subsequent Record Date (which shall be not less than five Business Days
prior to the date of payment of such defaulted interest) for the payment
of such defaulted interest to be fixed by the Trustee, notice whereof
shall be given to Holders of 2004 Notes not less than 15 days preceding
such subsequent Record Date.
Payment of the principal of (and premium, if any) and interest,
if any, on this 2004 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 2004
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 2004 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:
Attest:
<PAGE>
SECTION 2.04. FORM OF REVERSE OF 2004 NOTE.
This 7 5/8% Senior Unsecured Note Due 2004 is one of a duly
authorized issue of securities of the Issuer (herein called the "2004
Notes"), issued and to be issued under an Indenture, dated as of September
15, 1992, as supplemented by certain supplemental indentures, including
the Fourth Supplemental Indenture, dated as of September 26, 1997 (herein
collectively referred to as the "Indenture"), between the Issuer and NBD
Bank, a Michigan banking corporation (formerly known as 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 2004 Notes
and of the terms upon which the 2004 Notes are, and are to be,
authenticated and delivered. This 2004 Note is one of the series
designated on the face hereof, limited in aggregate principal amount to
$180,000,000.
The 2004 Notes are subject to redemption at the option of the
Issuer, in whole or in part, upon not more than 60 nor less than 30 days'
notice as provided in the Indenture at any time and from time to time, at
a redemption price equal to 100% of the principal amount of such 2004
Notes being redeemed plus the Applicable Premium, if any, thereon at the
time of redemption, together with accrued interest, if any, thereon to the
redemption date, but interest installments whose Stated Maturity is on or
prior to such redemption date will be payable to the Holder of record at
the close of business on the relevant Record Date referred to on the face
hereof, all as provided in the Indenture. In no event will the redemption
price ever be less than 100% of the principal amount of the 2004 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 2004 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 2004 Note (or portion
thereof) being redeemed plus all interest payments due on such 2004 Note
(or portion thereof), which present value shall be computed using a
discount rate equal to the Treasury Rate plus 50 basis points, over
(B) the principal amount of such 2004 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
2004 Notes; provided, however, that if the average life to stated maturity
of the 2004 Notes is not equal to the constant maturity of a United States
Treasury security for which a weekly average yield is given, the Treasury
Rate shall be obtained by linear interpolation (calculated to the nearest
one-twelfth of a year) from the weekly average yields of United States
Treasury securities for which such yields are given.
In the event of redemption of this 2004 Note in part only, a
new 2004 Note for the unredeemed portion hereof will be issued in the name
of the Holder hereof upon the cancellation hereof.
If a Change in Control occurs, the Issuer shall notify the
Holder of this 2004 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 2004 Note at a Change in Control Purchase Price equal to 101%
of the principal amount of this 2004 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 2004 Note, a new 2004 Note or 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 2004 Note shall
occur and be continuing, the principal of this 2004 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, repurchase date,
Stated Maturity or Maturity of any 2004 Note shall not be a Business Day
at any Place of Payment, then (notwithstanding any other provision of the
Indenture or this 2004 Note), payment of interest or principal (and
premium, if any) need not be made at such Place of Payment on such date,
but may be made on the next succeeding Business Day at such Place of
Payment with the same force and effect as if made on the Interest Payment
Date, repurchase date or at the Stated Maturity or Maturity; provided that
no interest shall accrue on the amount so payable for the period from and
after such Interest Payment Date, redemption date, repurchase date, Stated
Maturity or Maturity, as the case may be, to such Business Day.
The Indenture contains provisions for defeasance at any time of
(i) the entire indebtedness of this 2004 Note or (ii) certain restrictive
covenants and Events of Default with respect to this 2004 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
2004 Notes under the Indenture at any time by the Issuer and the Trustee
with the consent of the Holders of not less than a majority in principal
amount of Securities of all series then Outstanding and affected (voting
as one class).
The Indenture permits the Holders of not less than a majority
in principal amount of Securities of all series at the time Outstanding
with respect to which a default shall have occurred and be continuing
(voting as one class) to waive on behalf of the Holders of all Outstanding
Securities of such series any past default by the Issuer, provided that no
such waiver may be made with respect to a default in the payment of the
principal of or the interest on any Security of such series or the default
by the Issuer in respect of certain covenants or provisions of the
Indenture, the modification or amendment of which must be consented to by
the Holder of each Outstanding Security of each series affected.
As set forth in, and subject to, the provisions of the
Indenture, no Holder of any 2004 Note will have any right to institute any
proceeding with respect to the Indenture or for any remedy thereunder,
unless such Holder shall have previously given to the Trustee written
notice of a continuing Event of Default, the Holders of not less than 25%
in principal amount of the Outstanding Securities of each affected series
(voting as one class) shall have made written request, and offered
reasonable indemnity, to the Trustee to institute such proceeding as
trustee, and the Trustee shall not have received from the Holders of a
majority in principal amount of the Outstanding Securities of each
affected series (voting as one class) a direction inconsistent with such
request and shall have failed to institute such proceeding within 60 days;
provided, however, that such limitations do not apply to a suit instituted
by the Holder hereof for the enforcement of payment of the principal of
(and premium, if any) or any interest on this 2004 Note on or after the
respective due dates expressed herein.
No reference herein to the Indenture and no provision of this
2004 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 2004 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 2004 Note is registerable in the
Security Register, upon surrender of this 2004 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 2004 Note are payable,
duly endorsed by, or accompanied by a written instrument of transfer in
form satisfactory to the Issuer and the Security Registrar duly executed
by, the Holder hereof or his attorney duly authorized in writing, and
thereupon one or more new 2004 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 2004 Notes are issuable only in registered form without
coupons in denominations of $1,000 and any integral multiple thereof. As
provided in the Indenture and subject to certain limitations therein set
forth, 2004 Notes are exchangeable for a like aggregate principal amount
of 2004 Notes and of like tenor of a different authorized denomination, as
requested by the Holder surrendering the same.
No service charge shall be made for any such registration of
transfer or exchange, but the Issuer may require payment of a sum
sufficient to cover any tax or other governmental charge payable in
connection therewith.
The Issuer shall not be required to (a) issue, exchange or
register the transfer of this 2004 Note for a period of 15 days next
preceding the mailing of the notice of redemption of 2004 Notes or (b)
exchange or register the transfer of any 2004 Note or any portion thereof
selected, called or being called for redemption, except in the case of any
2004 Note to be redeemed in part, the portion thereof not so to be
redeemed.
Prior to due presentment of this 2004 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 2004 Note is registered as
the owner hereof for all purposes, whether or not this 2004 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 2004 Note without definition which are
defined in the Indenture shall have the meanings assigned to them in the
Indenture.
SECTION 2.05. FORM OF TRUSTEE'S CERTIFICATE OF AUTHENTICATION.
The Trustee's certificates of authentication shall be in substantially the
following form:
This is one of the Securities of the series designated herein
referred to in the within-mentioned Indenture.
_____________________________,
as Trustee
By ______________________________
Authorized Officer
ARTICLE III
CHANGE OF CONTROL
SECTION 3.01. CHANGE OF CONTROL. Upon the occurrence of a
Change in Control (the effective date of such Change in Control being the
"Change in Control Date"), each Holder of a 2004 Note shall have the right
to require that the Issuer repurchase (a "Required Repurchase") all or any
part of such Holder's 2004 Note at a repurchase price payable in cash
equal to 101% of the principal amount of such 2004 Note plus accrued
interest to the Purchase Date (the "Change in Control Purchase Price").
(a) Within 30 days following the Change in Control Date, the
Issuer shall mail a notice (the "Required Repurchase Notice") to each
Holder with a copy to the Trustee stating:
(i) that a Change in Control has occurred and that such
Holder has the right to require the Issuer to repurchase all or
any part of such Holder's 2004 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 2004 Notes to be repurchased, which shall be consistent
with this Section and the Indenture.
(b) Holders electing to have a 2004 Note repurchased must
deliver a written notice (the "Change in Control Purchase Notice") to
the Paying Agent (initially the Trustee) at its corporate trust
office in Detroit, Michigan, or any other office of the Paying Agent
maintained for such purposes, not later than 30 days prior to the
Purchase Date. The Change in Control Purchase Notice shall state:
(i) the portion of the principal amount of any 2004 Notes to be
repurchased, which portion must be $1,000 or an integral multiple
thereof; (ii) that such 2004 Notes are to be repurchased by the
Issuer pursuant to the change in control provisions of the Indenture;
and (iii) unless the 2004 Notes are represented by one or more Global
Notes, the certificate numbers of the 2004 Notes to be delivered by
the Holder thereof for repurchase by the Issuer. Any Change in
Control Purchase Notice may be withdrawn by the Holder by a written
notice of withdrawal delivered to the Paying Agent not later than
three Business Days prior to the Purchase Date. The notice of
withdrawal shall state the principal amount and, if applicable, the
certificate numbers of the 2004 Notes as to which the withdrawal
notice relates and the principal amount of such 2004 Notes, if any,
which remains subject to a Change in Control Purchase Notice.
If a 2004 Note is represented by a Global Note (as described in
Article VI below), the Depositary or its nominee will be the Holder
of such 2004 Note and therefore will be the only entity that can
elect a Required Repurchase of such 2004 Note. To obtain repayment
pursuant to this Section 3.01 with respect to such 2004 Note, the
beneficial owner of such 2004 Note must provide to the broker or
other entity through which it holds the beneficial interest in such
2004 Note (i) the Change in Control Purchase Notice signed by such
beneficial owner, and such signature must be guaranteed by a member
firm of a registered national securities exchange or of the National
Association of Securities Dealers, Inc. or a commercial bank or trust
company having an office or correspondent in the United States, and
(ii) instructions to such broker or other entity to notify the
Depositary of such beneficial owner's desire to obtain repayment
pursuant to this Section 3.01. Such broker or other entity will
provide to the Paying Agent (i) the Change 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.
(c) Payment of the Change of Control Purchase Price for a
2004 Note for which a Change in Control Purchase Notice has been
delivered and not withdrawn is conditioned (except in the case of a
2004 Note represented by one or more Global Notes) upon delivery of
such 2004 Note (together with necessary endorsements) to the Paying
Agent at its office in Detroit, Michigan, or any other office of the
Paying Agent maintained for such purpose, at any time (whether prior
to, on or after the Purchase Date) after the delivery of such Change
in Control Purchase Notice. Payment of the Change of Control
Purchase Price for such 2004 Note will be made promptly following the
later of the Purchase Date or the time of delivery of such 2004 Note.
If the Paying Agent holds, in accordance with the terms of the
Indenture, money sufficient to pay the Change in Control Purchase
Price of such 2004 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
2004 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 2004 Notes at the option of Holders upon a
Change in Control.
(e) No 2004 Note may be repurchased by the Issuer as a
result of a Change in Control if there has occurred and is continuing
an Event of Default (other than a default in the Payment of the
Change in Control Purchase Price with respect to the 2004 Notes).
ARTICLE IV
ADDITIONAL COVENANTS OF THE ISSUER
WITH RESPECT TO THE 2004 Notes
SECTION 4.01. EXISTENCE. So long as any of the 2004 Notes are
Outstanding, subject to Article 9 of the Original Indenture, the Issuer
will do or cause to be done all things necessary to preserve and keep in
full force and effect its corporate existence.
SECTION 4.02. LIMITATION ON CERTAIN LIENS. (a) So long as
any of the 2004 Notes are outstanding, the Issuer shall not create, incur,
assume or suffer to exist any lien, mortgage, pledge, security interest,
conditional sale, title retention agreement or other charge or encumbrance
of any kind, or any other type of arrangement intended or having the
effect of conferring upon a creditor of the Issuer or any Subsidiary a
preferential interest (hereinafter in this Section referred to as a
"Lien") upon or with respect to any of its property of any character,
including without limitation any shares of Capital Stock of Consumers or
Enterprises, without making effective provision whereby the 2004 Notes
shall (so long as any such other creditor shall be so secured) be equally
and ratably secured (along with any other creditor similarly entitled to
be secured) by a direct Lien on all property subject to such Lien,
provided, however, that the foregoing restrictions shall not apply to:
(i) Liens for taxes, assessments or governmental charges or levies
to the extent not past due;
(ii) pledges or deposits to secure (a) obligations under workmen's
compensation laws or similar legislation, (b) statutory obligations
of the Issuer or (c) Support Obligations;
(iii) Liens imposed by law, such as materialmen's, mechanics',
carriers', workmen's and repairmen's Liens and other similar Liens arising
in the ordinary course of business securing obligations which are not
overdue or which have been fully bonded and are being contested in good
faith;
(iv) purchase money Liens upon or in property acquired and held by
the Issuer in the ordinary course of business to secure the purchase price
of such property or to secure Indebtedness incurred solely for the purpose
of financing the acquisition of any such property to be subject to such
Liens, or Liens existing on any such property at the time of acquisition,
or extensions, renewals or replacements of any of the foregoing for the
same or a lesser amount, provided that no such Lien shall extend to or
cover any property other than the property being acquired and no such
extension, renewal or replacement shall extend to or cover property not
theretofore subject to the Lien being extended, renewed or replaced, and
provided, further, that the aggregate principal amount of the Indebtedness
at any one time outstanding secured by Liens permitted by this clause (iv)
shall not exceed $10,000,000; and
(v) Liens not otherwise permitted by clauses (i) through (iv) of
this Section securing Indebtedness of the Issuer; provided that on the
date such Liens are created, and after giving effect to such Indebtedness,
the aggregate principal amount at maturity of all of the secured
Indebtedness of the Issuer at such date shall not exceed 5% of
Consolidated Net Tangible Assets at such date.
SECTION 4.03. LIMITATION ON CONSOLIDATION, MERGER, SALE OR
CONVEYANCE. So long as any of the 2004 Notes are Outstanding and until
the 2004 Notes are rated BBB- or above (or an equivalent rating) by
Standard & Poor's and one Other Rating Agency (or, if Standard & Poor's
shall change its rating system, an equivalent of such rating then employed
by such organization), at which time the Issuer will be permanently
released from the provisions of this Section 4.03, and subject also to
Article Nine of the Indenture, the Issuer shall not consolidate with or
merge into any other Person or sell, lease or convey the property of the
Issuer in the entirety or substantially as an entirety, unless (i)
immediately after giving effect to such transaction the Consolidated Net
Worth of the surviving entity is at least equal to the Consolidated Net
Worth of the Issuer immediately prior to the transaction, and (ii) after
giving effect to such transaction, the surviving entity would be entitled
to incur at least one dollar of additional Indebtedness (other than
revolving Indebtedness to banks) without violation of the limitations in
Section 4.04 hereof.
SECTION 4.04. LIMITATION ON CONSOLIDATED INDEBTEDNESS.
(a) So long as any of the 2004 Notes are Outstanding and until the 2004
Notes are rated BBB- or above (or an equivalent rating) by Standard &
Poor's and one Other Rating Agency (or, if Standard & Poor's shall change
its rating system, an equivalent of such rating then employed by such
organization), at which time the Issuer will be permanently released from
the provisions of this Section 4.04, the Issuer shall not, and shall not
permit any Consolidated Subsidiary of the Issuer to, issue, create,
assume, guarantee, incur or otherwise become liable for (collectively,
"issue"), directly or indirectly, any Indebtedness unless the Consolidated
Coverage Ratio of the Issuer and its Consolidated Subsidiaries for the
four consecutive fiscal quarters immediately preceding the issuance of
such Indebtedness (as shown by a pro forma consolidated income statement
of the Issuer and its Consolidated Subsidiaries for the four most recent
fiscal quarters ending at least 30 days prior to the issuance of such
Indebtedness after giving effect to (i) the issuance of such Indebtedness
and (if applicable) the application of the net proceeds thereof to
refinance other Indebtedness as if such Indebtedness was issued at the
beginning of the period, (ii) the issuance and retirement of any other
Indebtedness since the first day of the period as if such Indebtedness was
issued or retired at the beginning of the period and (iii) the acquisition
of any company or business acquired by the Issuer or any Subsidiary since
the first day of the period (including giving effect to the pro forma
historical earnings of such company or business), including any
acquisition which will be consummated contemporaneously with the issuance
of such Indebtedness, as if in each case such acquisition occurred at the
beginning of the period) exceeds a ratio of 1.7 to 1.0.
(b) Notwithstanding the foregoing paragraph, the Issuer or any
Restricted Subsidiary may issue, directly or indirectly, the following
Indebtedness:
(1) Indebtedness of the Issuer to banks not to exceed
$1,000,000,000 in aggregate outstanding principal amount at any time;
(2) Indebtedness (other than Indebtedness described in clause
(1) of this Subsection) outstanding on the date of this Fourth
Supplemental Indenture, as set forth on Schedule 4.04(b)(2) attached
hereto and made a part hereof, and Indebtedness issued in exchange
for, or the proceeds of which are used to refund or refinance, any
Indebtedness permitted by this clause (2); provided, however, that
(i) the principal amount (or accreted value in the case of
Indebtedness issued at a discount) of the Indebtedness so issued
shall not exceed the principal amount (or accreted value in the case
of Indebtedness issued at a discount) of, premium, if any, and
accrued but unpaid interest on, the Indebtedness so exchanged,
refunded or refinanced and (ii) the Indebtedness so issued (A) shall
not mature prior to the stated maturity of the Indebtedness so
exchanged, refunded or refinanced, (B) shall have an Average Life
equal to or greater than the remaining Average Life of the
Indebtedness so exchanged, refunded or refinanced and (C) if the
Indebtedness to be exchanged, refunded or refinanced is subordinated
to the 2004 Notes, the Indebtedness is subordinated to the 2004 Notes
in right of payment;
(3) Indebtedness of the Issuer owed to and held by a
Subsidiary and Indebtedness of a Subsidiary owed to and held by the
Issuer; provided, however, that, in the case of Indebtedness of the
Issuer owed to and held by a Subsidiary, (i) any subsequent issuance
or transfer of any Capital Stock that results in any such Subsidiary
ceasing to be a Subsidiary or (ii) any transfer of such Indebtedness
(except to the Issuer or a Subsidiary) shall be deemed for the
purposes of this Subsection to constitute the issuance of such
Indebtedness by the Issuer;
(4) Indebtedness of the Issuer issued in exchange for, or the
proceeds of which are used to refund or refinance, Indebtedness of
the Issuer issued in accordance with Subsection (a) of this Section,
provided that (i) the principal amount (or accreted value in the case
of Indebtedness issued at a discount) of the Indebtedness so issued
shall not exceed the principal amount (or accreted value in the case
of Indebtedness issued at a discount) of, premium, if any, and
accrued but unpaid interest on, the Indebtedness so exchanged,
refunded or refinanced and (ii) the Indebtedness so issued (A) shall
not mature prior to the stated maturity of the Indebtedness so
exchanged, refunded or refinanced, (B) shall have an Average Life
equal to or greater than the remaining Average Life of the
Indebtedness so exchanged, refunded or refinanced and (C) if the
Indebtedness to be exchanged, refunded or refinanced is subordinated
to the 2004 Notes, the Indebtedness so issued is subordinated to the
2004 Notes in right of payment;
(5) Indebtedness of a Restricted Subsidiary issued in exchange
for, or the proceeds of which are used to refund or refinance,
Indebtedness of a Restricted Subsidiary issued in accordance with
Subsection (a) of this Section, provided that (i) the principal
amount (or accreted value in the case of Indebtedness issued at a
discount) of the Indebtedness so issued shall not exceed the
principal amount (or accreted value in the case of Indebtedness
issued at a discount) of, premium, if any, and accrued but unpaid
interest on, the Indebtedness so exchanged, refunded or refinanced
and (ii) the Indebtedness so issued (A) shall not mature prior to the
stated maturity of the Indebtedness so exchanged, refunded or
refinanced and (B) shall have an Average Life equal to or greater
than the remaining Average Life of the Indebtedness so exchanged,
refunded or refinanced.
(6) Indebtedness of a Consolidated Subsidiary issued to
acquire, develop, improve, construct or to provide working capital
for a gas, oil or electric generation, exploration, production,
distribution, storage or transmission facility and related assets,
provided that such Indebtedness is without recourse to any assets of
the Issuer, Consumers, Enterprises, CMS Generation, NOMECO,
CMS Electric and Gas, CMS Gas Transmission and Storage, CMS MST or
any other Designated Enterprises Subsidiary;
(7) Indebtedness of a Person existing at the time at which
such person became a Subsidiary and not incurred in connection with,
or in contemplation of, such Person becoming a Subsidiary. Such
Indebtedness shall be deemed to be incurred on the date the acquired
Person becomes a Consolidated Subsidiary;
(8) Indebtedness issued by the Issuer not to exceed
$150,000,000 in aggregate principal amount at any time; and
(9) Indebtedness of a Consolidated Subsidiary in respect of
rate reduction bonds issued to recover electric restructuring
transition costs of Consumers provided that such Indebtedness is
without recourse to the assets of Consumers.
SECTION 4.05. LIMITATION ON RESTRICTED PAYMENTS. (a) So long
as the 2004 Notes are Outstanding and until the 2004 Notes are rated BBB-
or above (or an equivalent rating) by Standard & Poor's and one Other
Rating Agency (or, if Standard & Poor's shall change its rating system, an
equivalent of such rating then employed by such organization), at which
time the Issuer will be permanently released from the provisions of this
Section 4.05, the Issuer shall not, and shall not permit any Restricted
Subsidiary of the Issuer, directly or indirectly, to (i) declare or pay
any dividend or make any distribution on the Capital Stock of the Issuer
to the direct or indirect holders of its Capital Stock (except dividends
or distributions payable solely in its Non-Convertible Capital Stock or in
options, warrants or other rights to purchase such Non-Convertible Capital
Stock and except dividends or distributions payable to the Issuer or a
Subsidiary), (ii) purchase, redeem or otherwise acquire or retire for
value any Capital Stock of the Issuer, or (iii) purchase, repurchase,
redeem, defease or otherwise acquire or retire for value, prior to
scheduled maturity or scheduled repayment thereof, any Subordinated
Indebtedness (any such dividend, distribution, purchase, redemption,
repurchase, defeasing, other acquisition or retirement being hereinafter
referred to as a "Restricted Payment") if at the time the Issuer or such
Subsidiary makes such Restricted Payment:
(1) an Event of Default, or an event that with the lapse of
time or the giving of notice or both would constitute an Event of
Default, shall have occurred and be continuing (or would result
therefrom); or
(2) the aggregate amount of such Restricted Payment and all
other Restricted Payments made since May 6, 1997 would exceed the sum
of:
(A) $100,000,000;
(B) 100% of Consolidated Net Income, accrued during the
period (treated as one accounting period) from May 6, 1997 to
the end of the most recent fiscal quarter ending at least 45
days prior to the date of such Restricted Payment (or, in case
such sum shall be a deficit, minus 100% of the deficit); and
(C) the aggregate Net Cash Proceeds received by the Issuer
from the issue or sale of or contribution with respect to its
Capital Stock subsequent to May 6, 1997.
For the purpose of determining the amount of any Restricted Payment not in
the form of cash, the amount shall be the fair value of such Restricted
Payment as determined in good faith by the Board of Directors, provided
that if the value of the non-cash portion of such Restricted Payment as
determined by the Board of Directors is in excess of $25 million, such
value shall be based on the opinion from a nationally recognized firm
experienced in the appraisal of similar types of transactions.
(b) The provisions of Section 4.05(a) shall not prohibit:
(i) any purchase or redemption of Capital Stock of the
Issuer made by exchange for, or out of the proceeds of the
substantially concurrent sale of, Capital Stock of the Issuer
(other than Redeemable Stock or Exchangeable Stock); provided,
however, that such purchase or redemption shall be excluded
from the calculation of the amount of Restricted Payments;
(ii) dividends or other distributions paid in respect of
any class of the Issuer's Capital Stock issued in respect of
the acquisition of any business or assets by the Issuer or a
Restricted Subsidiary if the dividends or other distributions
with respect to such Capital Stock are payable solely from the
net earnings of such business or assets;
(iii) dividends paid within 60 days after the date of
declaration thereof if at such date of declaration such
dividend would have complied with this Section; provided,
however, that at the time of payment of such dividend, no Event
of Default shall have occurred and be continuing (or result
therefrom), and provided further, however, that such dividends
shall be included (without duplication) in the calculation of
the amount of Restricted Payments; or
(iv) payments pursuant to the Tax-Sharing Agreement.
SECTION 4.06. LIMITATION ON ASSET SALES. So long as any of
the 2004 Notes are outstanding, the Issuer may not sell, transfer or
otherwise dispose of any property or assets of the Issuer, including
Capital Stock of any Consolidated Subsidiary, in one transaction or a
series of transactions in an amount which exceeds $50,000,000 (an "Asset
Sale") unless the Issuer shall (i) apply an amount equal to such excess
Net Cash Proceeds to permanently repay Indebtedness of a Consolidated
Subsidiary or Indebtedness of the Issuer which is pari passu with the 2004
Notes or (ii) invest an equal amount not so used in clause (i) in property
or assets of related business within 24 months after the date of the Asset
Sale (the "Application Period") or (iii) apply such excess Net Cash
Proceeds not so used in (i) or (ii) (the "Excess Proceeds") to make an
offer, within 30 days after the end of the Application Period, to purchase
from the Holders on a pro rata basis an aggregate principal amount of 2004
Notes on the relevant purchase date equal to the Excess Proceeds on such
date, at a purchase price equal to 100% of the principal amount of the
2004 Notes on the relevant purchase date and unpaid interest, if any, to
the purchase date. The Issuer shall only be required to make an offer to
purchase 2004 Notes from Holders pursuant to subsection (iii) if the
Excess Proceeds equal or exceed $25,000,000 at any given time.
The procedures to be followed by the Issuer in making an offer
to purchase 2004 Notes from the Holders with Excess Proceeds, and for the
acceptance of such offer by the Holders, shall be the same as those set
forth in Section 3.01 herein with respect to a Change in Control.
<PAGE>
<PAGE>
ARTICLE V
ADDITIONAL EVENTS OF DEFAULT
WITH RESPECT TO THE 2004 Notes
SECTION 5.01. DEFINITION. All of the events specified in
clauses (a) through (h) of Section 5.1 of the Original Indenture shall be
"Events of Default" with respect to the 2004 Notes.
SECTION 5.02. AMENDMENTS TO SECTION 5.1 OF THE ORIGINAL
INDENTURE. Solely for the purpose of determining Events of Default with
respect to the 2004 Notes, paragraphs (e), (f) and (h) of Section 5.1 of
the Original Indenture shall be amended such that each and every reference
therein to the Issuer shall be deemed to mean either the Issuer or
Consumers.
ARTICLE VI
GLOBAL NOTES
The 2004 Notes will be issued initially in the form of Global
Notes. "Global Note" means a registered 2004 Note evidencing one or more
2004 Notes issued to a depositary (the "Depositary") or its nominee, in
accordance with this Article and bearing the legend prescribed in this
Article. One or more Global Notes will represent all 2004 Notes. The
Issuer shall execute and the Trustee shall, in accordance with this
Article and the Issuer Order with respect to the 2004 Notes, authenticate
and deliver one or more Global Notes in temporary or permanent form that
(i) shall represent and shall be denominated in an aggregate amount equal
to the aggregate principal amount of the 2004 Notes to be represented by
such Global Note or Notes, (ii) shall be registered in the name of the
Depositary for such Global Note or Notes or the nominee of such
Depositary, (iii) shall be delivered by the Trustee to such Depositary or
pursuant to such Depositary's instructions and (iv) shall bear a legend
substantially to the following effect: "Unless the Global 2004 Note is
presented by an authorized representative of the Depository to the Issuer
or its agent for registration of transfer, exchange or payment, and any
2004 Note issued is registered in the name of a nominee of the Depository,
or in such other name as is requested by an authorized representative of
the Depository (and any payment is made to the nominee of the Depository,
or to such other entity as is requested by an authorized representative of
the Depository), 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 Indenture, unless and until
it is exchanged in whole or in part for 2004 Notes in definitive form, a
Global Note representing one or more 2004 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 2004 Notes or a nominee of such successor Depositary.
If at any time the Depositary for the 2004 Notes is unwilling
or unable to continue as Depositary for the 2004 Notes, the Issuer shall
appoint a successor Depositary with respect to the 2004 Notes. If a
successor Depositary for the 2004 Notes is not appointed by the Issuer by
the earlier of (i) 90 days from the date the Issuer receives notice to the
effect that the Depositary is unwilling or unable to act, or the Issuer
determines that the Depositary is unable to act or (ii) the effectiveness
of the Depositary's resignation or failure to fulfill its duties as
Depositary, the Issuer will execute, and the Trustee, upon receipt of a
Issuer Order for the authentication and delivery of definitive 2004 Notes,
will authenticate and deliver 2004 Notes in definitive form in an
aggregate principal amount equal to the principal amount of the Global
Note or Notes representing such 2004 Notes in exchange for such Global
Note or Notes.
The Issuer may at any time and in its sole discretion determine
that the 2004 Notes issued in the form of one or more Global Notes shall
no longer be represented by such Global Note or Notes. In such event the
Issuer will execute, and the Trustee, upon receipt of a Issuer Order for
the authentication and delivery of definitive 2004 Notes, will
authenticate and deliver 2004 Notes in definitive form in an aggregate
principal amount equal to the principal amount of the Global Note or Notes
representing such 2004 Notes in exchange for such Global Note or Notes.
The Depositary for such 2004 Notes may surrender a Global Note
or Notes for such 2004 Notes in exchange in whole or in part for 2004
Notes in definitive form on such terms as are acceptable to the Issuer and
such Depositary. Thereupon, the Issuer shall execute, and the Trustee
shall authenticate and deliver, without service charge:
(i) to each Person specified by such Depositary a new 2004
Note or Notes, of any authorized denomination as requested by
such Person in aggregate principal amount equal to and in
exchange for such Person's beneficial interest in the Global
Note; and
(ii) to such Depositary a new Global Note in a denomination
equal to the difference, if any, between the principal amount
of the surrendered Global Note and the aggregate principal
amount of 2004 Notes in definitive form delivered to Holders
thereof.
In any exchange provided for in this Article, the Issuer will
execute and the Trustee will authenticate and deliver 2004 Notes in
definitive registered form in authorized denominations.
Upon the exchange of a Global Note for 2004 Notes in definitive
form, such Global Note shall be cancelled by the Trustee. 2004 Notes in
definitive form issued in exchange for a Global Note pursuant to this
Article shall be registered in such names and in such authorized
denominations as the Depositary for such Global Note, pursuant to
instructions from its direct or indirect participants or otherwise, shall
instruct the Trustee or Security Registrar. The Trustee shall deliver
such 2004 Notes to the persons in whose names such 2004 Notes are so
registered.
ARTICLE VII
DEFEASANCE
All of the provisions of Article Ten of the Original Indenture
shall be applicable to the 2004 Notes. Upon satisfaction by the Issuer of
the requirements of Section 10.1(c) of the Indenture, in connection with
any covenant defeasance (as provided in Section 10.1(c) of the Indenture),
the Issuer shall be released from its obligations under Article Nine of
the Original Indenture and under Articles III and IV of this Fourth
Supplemental Indenture with respect to the 2004 Notes.
ARTICLE VIII
SUPPLEMENTAL INDENTURES
This Fourth Supplemental Indenture is a supplement to the
Original Indenture. As supplemented by this Fourth Supplemental
Indenture, the Original Indenture is in all respects ratified, approved
and confirmed, and the Original Indenture and this Fourth Supplemental
Indenture shall together constitute one and the same instrument.
TESTIMONIUM
This 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.
<PAGE>
<PAGE>
IN WITNESS WHEREOF, the parties hereto have caused this 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/ A.M. Wright
_______________________
Attest:
(Corporate Seal)
NBD BANK
as Trustee
By: /s/ Ernest J. Peck
_______________________
Attest:
(Corporate Seal)
<PAGE>
EXHIBIT (5)
October 3, 1997
CMS Energy Corporation
Fairlane Plaza South
330 Town Center Drive
Suite 1100
Dearborn, MI 48126
Ladies and Gentlemen:
I am the Assistant General Counsel of CMS Energy Corporation, a
Michigan corporation (the "Company"), and have acted as such in connection
with the Registration Statement on Form S-3 (the "Registration Statement")
being filed by the Company with the Securities and Exchange Commission
(the "Commission") under the Securities Act of 1933, as amended (the
"Securities Act"), relating to the additional registration of not to
exceed $25,500,000 of (i) CMS Energy Common Stock, $.01 par value ("Common
Stock"); (ii) Subordinated Debentures of the Company ( "Debentures");
(iii) Preferred Securities of CMS Energy Trust I; (iv) Preferred
Securities of CMS Energy Trust II; (v) the guarantee of the Preferred
Securities by the Company ("Preferred Securities Guarantee"); (vi) Stock
Purchase Contracts of the Company; and (vii) Stock Purchase Units of the
Company. (The offered securities, collectively, the "Securities".) The
guarantee of the Preferred Securities is to be issued pursuant to the
Preferred Securities Guarantee Agreement (the "Preferred Securities
Guarantee") to be entered into among the Company and The Bank of New York,
as trustee (the "Guarantee Trustee"). The Debentures are to be issued
under an Indenture to be entered into between the Company and The Bank of
New York, as trustee (the "Indenture Trustee"), and one or more
supplemental indenture thereto (collectively, the "Indenture").
Capitalized terms not otherwise defined herein have the respective
meanings specified in the Registration Statement.
In rendering this opinion, I have examined and relied upon a copy
of the Registration Statement. I have also examined, or have arranged for
the examination by an attorney or attorneys under my general supervision,
originals, or copies of originals certified to my satisfaction, of such
agreements, documents, certificates and other statements of governmental
officials and other instruments, and have examined such questions of law
and have satisfied myself as to such matters of fact, as I have considered
relevant and necessary as a basis for this opinion. I have assumed the
authenticity of all documents submitted to me as originals, the
genuineness of all signatures, the legal capacity of all natural persons
and the conformity with the original documents of any copies thereof
submitted to me for examination.
Based on the foregoing, it is my opinion that:
1. The Company is duly incorporated and validly existing under
the laws of the State of Michigan.
2. The Company has corporate power and authority (i) to
execute and deliver the Preferred Securities Guarantee, the
Stock Purchase Agreement and the Indenture, and (ii) to
authorize and sell the Debentures pursuant to the Indenture
and the Common Stock pursuant to the Stock Purchase
Agreement.
3. The Preferred Securities Guarantee will be a legally issued
and binding obligation of the Company (except to the
extent enforceability may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium,
fraudulent transfer or other similar laws affecting the
enforcement of creditors' rights generally and by the
effect of general principles of equity, regardless of
whether enforceability is considered in a proceeding in
equity or at law) when (i) the Registration Statement, as
finally amended (including any necessary post-effective
amendments) shall have become effective under the
Securities Act; (ii) the Preferred Securities Guarantee
shall have been qualified under the Trust Indenture Act of
1939, as amended (the "Trust Indenture Act"), and duly
executed and delivered by the Company and the Guarantee
Trustee; (iii) the Preferred Securities shall have been
legally issued, as contemplated by paragraph 4 below; and
(iv) the Preferred Securities Guarantees shall have been
duly executed and delivered as provided in the Preferred
Securities Guarantee Agreement.
4. Debentures will be legally issued and binding obligations
of the Company (except to the extent enforceability may be
limited by applicable bankruptcy, insolvency,
reorganization, moratorium, fraudulent transfer or other
similar laws affecting the enforcement of creditors' rights
generally and by the effect of general principles of
equity, regardless of whether enforceability is considered
in a proceeding in equity or at law) when (i) the
Registration Statement, as finally amended (including any
necessary post-effective amendments) shall have become
effective under the Securities Act, and the Indenture
shall have been qualified under the Trust Indenture Act,
and duly executed and delivered by the Company and the
Indenture Trustee; (ii) an appropriate prospectus
supplement with respect to the particular Debentures then
being sold by the Company shall have been filed with the
Commission pursuant to Rule 424 under the Securities Act;
(iii) the Company's Board of Directors or duly authorized
committee thereof shall have duly adopted final resolutions
authorizing the issuance and sale of the Debentures, as
contemplated by the Registration Statement and the
Indenture; and (iv) the supplemental indenture under which
such Debentures are to be issued shall have been duly
executed and authenticated as provided in the Indenture and
such resolutions, and shall have been duly delivered to the
purchasers thereof against payment of the agreed
consideration therefor.
5. The Stock Purchase Contracts and the Stock Purchase Units,
when issued and sold, will be legally issued and binding
obligations of the Company (except to the extent
enforceability may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium, fraudulent transfer
or other similar laws affecting the enforcement of
creditors' rights generally and by the effect of general
principles of equity, regardless of whether enforceability
is considered in a proceeding in equity or at law) when (i)
the Registration Statement, as finally amended, (including
any necessary post-effective amendments), shall have become
effective under the Securities Act; (ii) an appropriate
prospectus supplement with respect to the particular Stock
Purchase Contracts and the Stock Purchase Units then being
sold by the Company shall have been filed with the
Commission pursuant to Rule 424 under the Securities Act;
and (iii) and the Stock Purchase Contracts under which the
Common Stock are to be purchased shall have been duly
executed and delivered as provided in the Stock Purchase
Contracts.
6. The Common Stock will be legally issued, fully paid and
non-assessable when; (i) the Registration Statement, as
finally amended, shall have become effective under the
Securities Act; (ii) the Company's Board of Directors or a
duly authorized committee thereof shall have duly adopted
final resolutions authorizing the issuance and sale of the
Common Stock, Preferred Securities or Debentures to be
converted into Common Stock or Stock Purchase Contracts
pursuant to which Common Stock may be purchased, as
contemplated by the Registration Statement and prospectus
supplement relating thereto; and (iii) upon delivery,
purchase or conversion, as the case may be, certificates
representing the Common Stock shall have been duly
executed, countersigned and registered and duly delivered
to the purchasers thereof against payment of the agreed
consideration therefor.
7. The Preferred Securities of CMS Energy Trust I and CMS Energy
Trust II (each a "CMS Trust" and, together, the "CMS Trusts"),
when the Amended and Restated Trust Agreement of such CMS
Trust (each a "Trust Agreement") is duly executed and
delivered and the terms of the Preferred Securities are
established in accordance with the terms of the Trust
Agreement of such CMS Trust, will be duly authorized for
issuance and, when issued and executed in accordance with
the Trust Agreement of such CMS Trust and delivered and paid
for as set forth in the form of prospectus supplement for the
Preferred Securities included in the Registration Statement,
will be validly issued, fully paid and nonassessable,
representing undivided beneficial interests in the assets of
such CMS Trust. I bring to your attention, however, that the
Preferred Securities holders may be obligated, pursuant to the
Trust Agreement of such CMS Trust, to (i) provide indemnity
and/or security in connection with and pay taxes or govern-
mental charges arising from transfers of Preferred Securities
and (ii) provide security and indemnity in connection with the
requests of or directions to the Property Trustee of such
CMS Trust to exercise its rights and powers under the Trust
Agreement of such CMS Trust.
For purposes of this opinion, I have assumed that there will be
no changes in the laws currently applicable to the Company and that such
laws will be the only laws applicable to the Company.
I do not find it necessary for the purposes of this opinion to
cover, and accordingly I express no opinion as to, the application of the
securities or blue sky laws of the various states to the execution and
delivery of the Preferred Securities Guarantee or the sale of the
Securities.
I am a member of the bar of the State of Michigan and I express
no opinion as to the laws of any jurisdiction other than the State of
Michigan and the federal law of the United States of America. I note that
the rights, duties and obligations of the Indenture Trustee under the
Indenture are stated to be governed and construed in accordance with the
laws of the State of New York. However, for purposes of paragraph 4
above, I have assumed that the Indenture, as to the rights, duties and
obligations of the Indenture Trustee, is stated to be governed by the laws
of the State of Michigan. I further note that each Trust Agreement and the
rights and obligations of each of the Preferred Securities holders, each
CMS Trust and the Trustees of each CMS Trust with respect to the Trust
Agreement in the Preferred Securities, is stated to be governed by, and
construed in accordance with, the laws of the State of Delaware. However, for
purposes of paragraph 7 above, I have assumed that the Trust Agreement, rights
and obligations of each of the Preferred Securities holders, each CMS Trust
and Trustees of each CMS Trust with respect to the Trust Agreement is stated
to be governed by the laws of the State of Michigan.
I hereby consent to the filing of this opinion as an exhibit to
the Company's Registration Statement on Form S-3 relating to the
Securities and to all references to me included in or made a part of the
Registration Statement.
Very truly yours,
/s/ Michael D. Van Hemert
_____________________________
Michael D. Van Hemert
<PAGE>
Exhibit (15)
To CMS Energy Corporation:
We are aware that CMS Energy Corporation has incorporated by
reference in this registration statement its Form 10-Q for the quarter
ended March 31, 1997 and its Form 10-Q for the quarter ended June 30,
1997, which include our reports dated May 9, 1997 and August 11, 1997,
respectively, covering the unaudited interim financial information
contained therein. Pursuant to Regulation C of the Securities Act of
1933, this report is not considered a part of the registration statement
prepared or certified by our Firm or a report prepared or certified by our
Firm within the meaning of Sections 7 and 11 of the Act.
/s/ Arthur Anderson LLP
_______________________
Detroit, Michigan,
October 3, 1997
<PAGE>
Exhibit (23)(b)
CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS
As independent public accountants, we hereby consent to the incorporation
by reference in this registration statement of our reports dated January
24, 1997 included or incorporated by reference in CMS Energy Corporation's
Form 10-K for the year ended December 31, 1996, and to all references to
our Firm included in this registration statement.
/s/ Arthur Andersen LLP
_______________________
Detroit, Michigan,
October 3, 1997
