Document:

exv4w01

 

Exhibit 4.01

SUPPLEMENTAL INDENTURE NO. 2

FROM

XCEL ENERGY INC.

(A MINNESOTA CORPORATION)

TO

WELLS FARGO BANK MINNESOTA,
NATIONAL ASSOCIATION

TRUSTEE

DATED AS OF

JUNE 15, 2003

SUPPLEMENTAL TO INDENTURE

DATED AS OF DECEMBER 1, 2000

 

 

     SUPPLEMENTAL INDENTURE No. 2, made as of the 15th day of June, 2003, by
and between XCEL ENERGY INC., a corporation duly organized and existing under
the laws of the State of Minnesota (the “Company”), and WELLS FARGO BANK
MINNESOTA, NATIONAL ASSOCIATION, a national banking association organized and
existing under the laws of the United States, as trustee (the “Trustee”):

WITNESSETH:

     WHEREAS, the Company has heretofore executed and delivered its Indenture
(hereinafter referred to as the “Indenture”), made as of December 1, 2000; and

     WHEREAS, Section 2.5 of the Indenture provides that Securities shall be
issued in series and that a Company Order shall specify the terms of each
series; and

     WHEREAS, the Company has this day delivered a Company Order setting forth
the terms of two new series of Securities designated “3.40% Senior Notes,
Series A due 2008” (hereinafter sometimes referred to as the “Series A Notes
due 2008” or the “Initial Notes”) and “3.40% Senior Notes, Series B due 2008”
(hereinafter sometimes referred to as the “Series B Notes due 2008” or the
“Exchange Notes”); and

     WHEREAS, Section 12.1 of the Indenture provides that the Company and the
Trustee may enter into indentures supplemental thereto for the purposes, among
others, of establishing the form of Securities or establishing or reflecting
any terms of any Security and adding to the covenants of the Company; and

     WHEREAS, the execution and delivery of this Supplemental Indenture No. 2
(herein, “this Supplemental Indenture”) have been duly authorized by a
resolution or written consent adopted by the Board of Directors of the Company.

     NOW, THEREFORE, THIS INDENTURE WITNESSETH:

     That in order to set forth the terms and conditions upon which the Series
A Notes due 2008 and the Series B Notes due 2008 are, and are to be,
authenticated, issued and delivered, and in consideration of the premises of
the purchase and acceptance of the Series A Notes due 2008 and the Series B
Notes due 2008 by the Holders thereof and the sum of one dollar duly paid to it
by the Trustee at the execution of this Supplemental Indenture, the receipt
whereof is hereby acknowledged, the Company covenants and agrees with the
Trustee for the equal and proportionate benefit of the respective Holders from
time to time of the Series A Notes due 2008 and the Series B Notes due 2008, as
follows:

ARTICLE ONE

RELATION TO INDENTURE; DEFINITIONS

     SECTION 1.01. This Supplemental Indenture constitutes an integral part of
the Indenture.

     SECTION 1.02. For all purposes of this Supplemental Indenture:

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	 	(a)	 	Capitalized terms used herein without definition shall have the
meanings specified in the Indenture;
	 
	 	(b)	 	All references herein to Articles and Sections, unless otherwise
specified, refer to the corresponding Articles and Sections of this
Supplemental Indenture;
	 
	 	(c)	 	The terms “hereof,” “herein,” “hereby,” “hereto,” “hereunder”
and “herewith” refer to this Supplemental Indenture; and
	 
	 	(d)	 	For all purposes as of this Supplemental Indenture, except as
otherwise expressly provided or unless the context otherwise requires,
the following terms shall have the following respective meanings:

		
	 	“Exchange Notes” means the Series B Notes due 2008 to be issued
under the Indenture and this Supplemental Indenture in exchange for
the Initial Notes pursuant to the Exchange Offer.
	 
	 	“Exchange Offer” means the offer by the Company, pursuant to an
effective registration statement filed with the Securities and
Exchange Commission, to exchange all of the Series B Notes due 2008
for all of the outstanding Series A Notes due 2008 in accordance
with the terms and provisions of the Registration Rights Agreement.
	 
	 	“Exchange Offer Consummation Date” means the date on which the
Exchange Offer is consummated in accordance with the terms and
provisions of the Registration Rights Agreement.
	 
	 	“Initial Notes” means the Series A Notes due 2008 being issued by
the Company under the Indenture and this Supplemental Indenture and
sold to the Initial Purchasers pursuant to the Purchase Agreement.
	 
	 	“Initial Purchasers” has the meaning set forth in the Purchase
Agreement.
	 
	 	“Purchase Agreement” means the Purchase Agreement dated as of June
19, 2003 among the Company and the Initial Purchasers.
	 
	 	“Registration Rights Agreement” means the Registration Rights
Agreement dated as of June 24, 2003 among the Company and the
Initial Purchasers.

ARTICLE TWO

3.40% SENIOR NOTES, SERIES A DUE 2008

AND 3.40% SENIOR NOTES, SERIES B DUE 2008

     SECTION 2.01. There are hereby created two series of securities
designated: (i)3.40% Senior Notes, Series A due 2008, in the aggregate
principal amount which at any time may not exceed $195,000,000 (the “Series A
Notes due 2008”), and (ii) 3.40% Senior Notes, Series B due 2008, in the
aggregate principal amount which at any time may not exceed $195,000,000 less
the

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aggregate principal amount of Series A Notes due 2008 then outstanding
(the “Series B Notes due 2008”).

     The Series A Notes due 2008 may forthwith be executed by the Company
substantially in the form set forth in Exhibit A hereto and delivered to the
Trustee for authentication and delivery by the Trustee in accordance with the
provisions of the Indenture and this Supplemental Indenture. On or prior to
the Exchange Offer Consummation Date, the Company may execute and deliver to
the Trustee, and upon delivery of a request from the Company to the Trustee in
accordance with the provisions of Section 2.5 of the Indenture, the Trustee
shall authenticate and deliver, the Series B Notes due 2008 substantially in
the form set forth in Exhibit A hereto, in exchange for a like principal amount
of Series A Notes due 2008 validly surrendered to the Company and/or the
Trustee, as applicable, pursuant to the Exchange Offer and in accordance with
the Registration Rights Agreement. Such request from the Company shall specify
the amount of the Series B Notes due 2008 to be authenticated and delivered and
the date on which such Series B Notes due 2008 are to be authenticated and
delivered. The aggregate principal amount of the Series A Notes due 2008
together with the Series B Notes due 2008 outstanding at any time may not
exceed $195,000,000.

     SECTION 2.02. Except as otherwise provided in Sections 2.03 and 2.05
hereof, the principal amount of the Series A Notes due 2008 and Series B Notes
due 2008 shall be payable on the stated maturity date of July 1, 2008.

     SECTION 2.03.

		
	 	     (a) The Series A Notes due 2008 shall be dated their date of
authentication as provided in the Indenture and shall bear interest from
their date at the rate of 3.40% per annum, payable semi-annually on
January 1 and July 1 of each year, commencing January 1, 2004. The
Regular Record Dates with respect to such January 1 and July 1 interest
payment dates shall be December 15 and June 15, respectively. Principal
and interest shall be payable to the persons and in the manner provided
in Sections 2.4 and 2.12 of the Indenture.

		
	 	     (b) The Series B Notes due 2008 shall be dated the date of
authentication of the Series A Notes due 2008 that were exchanged for
said Series B Notes due 2008 as provided in the Indenture and shall bear
interest from the last interest payment date to which interest has been
paid on the Series A Notes due 2008 that were exchanged for said Series B
Notes due 2008 at the rate of 3.40% per annum, payable semi-annually on
January 1 and July 1 of each year. The Regular Record Dates with respect
to such January 1 and July 1 interest payment dates shall be December 15
and June 15, respectively. Principal and interest shall be payable to
the persons and in the manner provided in Sections 2.4 and 2.12 of the
Indenture.

		
	 	     (c) Any Initial Notes which are presented to the Company and/or the
Trustee for exchange pursuant to an Exchange Offer in accordance with the
terms thereof shall be exchanged for Exchange Notes of equal principal
amount upon surrender to the Company and/or the Trustee of the Initial
Notes to be exchanged; provided, however, that the Initial Notes so
surrendered for exchange shall be duly endorsed and accompanied by a
letter of

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	 	transmittal or written instrument of transfer in form satisfactory
to the Company, duly executed by the Holder thereof or its attorney who
shall be duly authorized in writing to execute such document. Whenever
any Initial Notes are so surrendered for exchange, the Company shall
execute, and the Trustee shall authenticate and deliver to and in the
name of each Holder that has properly tendered its Initial Notes for
exchange, the same aggregate principal amount of Exchange Notes as the
Initial Notes that have been so surrendered and such Initial Notes shall
be retired.

     SECTION 2.04. The Series A Notes due 2008 and Series B Notes due 2008
shall be payable at the corporate trust office of the Trustee and at the
offices of such paying agents as the Company may appoint by Company Order in
the future.

     SECTION 2.05.

     The Company may redeem the Series A Notes due 2008 and/or the Series B
Notes due 2008 at any time, in whole or in part, at a redemption price equal to
the greater of (1) the principal amount being redeemed or (2) the sum of the
present values of the remaining scheduled payments of principal and interest on
the notes being redeemed, discounted to the date fixed for redemption on a
semi-annual basis (assuming a 360-day year consisting of twelve 30-day months)
at the Treasury Yield plus 25 basis points, plus in each case accrued interest
to the date fixed for redemption.

     “Treasury Yield” means, for any date fixed for redemption, the rate per
annum equal to the semi-annual equivalent yield to maturity of the Comparable
Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed
as a percentage of its principal amount) equal to the Comparable Treasury Price
for the date fixed for redemption.

     “Comparable Treasury Issue” means the United States Treasury security
selected by an Independent Investment Banker as having a maturity comparable to
the remaining term of the Series A Notes due 2008 or Series B Notes due 2008,
as the case may be, that would be utilized, at the time of selection and in
accordance with customary financial practice, in pricing new issues of
corporate debt securities of comparable maturity to the remaining term of the
Series A Notes due 2008 or Series B Notes due 2008, as the case may be.

     “Independent Investment Banker” means UBS Securities LLC or its successor
or, if such firm or its successor is unwilling or unable to select the
Comparable Treasury Issue, one of the remaining Reference Treasury Dealers
appointed by the Trustee after consultation with the Company.

     “Comparable Treasury Price” means, for any date fixed for redemption, (1)
the average of the bid and asked prices for the Comparable Treasury Issue
(expressed in each case as a percentage of its principal amount) on the third
Business Day preceding the date fixed for redemption, as set forth in the daily
statistical release (or any successor release) published by the Federal Reserve
Bank of New York and designated “Composite 3:30 p.m. Quotations for U.S.
Government Securities” or (2) if that release (or any successor release) is not
published or does not contain those prices on that Business Day, (A) the
average of the Reference Treasury Dealer Quotations for the date fixed for
redemption, after excluding the highest and lowest Reference

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Treasury Dealer Quotations for the date fixed for redemption, or (B) if
the Company obtains fewer than four Reference Treasury Dealer Quotations, the
average of all of the Reference Treasury Dealer Quotations.

     “Reference Treasury Dealer Quotations” means, for each Reference Treasury
Dealer and any date fixed for redemption, the average, as determined by the
Independent Investment Banker, of the bid and asked prices for the Comparable
Treasury Issue (expressed in each case as a percentage of its principal amount)
quoted in writing to the Independent Investment Banker by the Reference
Treasury Dealer at 5:00 p.m. on the third Business Day preceding the date fixed
for redemption.

     “Reference Treasury Dealer” means (1) each of Credit Suisse First Boston
LLC, McDonald Investments Inc., UBS Securities LLC and any other primary U.S.
Government Securities dealer in the United States (a “Primary Treasury Dealer”)
designated by, and not affiliated with, Credit Suisse First Boston LLC,
McDonald Investments Inc., UBS Securities LLC and their respective successors,
provided, however, that if any of the foregoing or any of their designees
ceases to be a Primary Treasury Dealer, the Company shall appoint another
Primary Treasury Dealer as a substitute and (2) any other Primary Treasury
Dealer selected by the Company.

     The Series A Notes due 2008 and Series B Notes due 2008 shall not be
subject to any sinking fund.

     SECTION 2.06.

		
	 	     (a) The Series A Notes due 2008 and Series B Notes due 2008 shall be
issued in fully registered form without coupons in denominations of
$1,000 and integral multiples thereof.

		
	 	     (b) The Series A Notes due 2008 (1) if issued to “qualified
institutional buyers” (each a “QIB”), as defined in Rule 144A under the
Securities Act of 1933, as amended (the “Securities Act”), in reliance on
Rule 144A under the Securities Act shall be issued in the form of one or
more Rule 144A global notes or (2) if issued in offshore transactions to
non-U.S. persons in reliance on Regulation S under the Securities Act
shall be issued in the form of one or more Regulation S global notes, and
in case of either (1) or (2) above, shall be deposited on behalf of the
Holders of the Series A Notes due 2008 represented thereby with the
Trustee, as custodian for the Depository, shall be registered in the name
of the Depository or its nominee and the aggregate principal amount of
Series A Notes due 2008 so issued may from time to time be increased or
decreased by adjustments made on the records of the Trustee and the
Depository or its nominee. For purposes hereof, (A) “Rule 144A global
notes” means one or more Global Securities deposited with a custodian
for, and registered in the name of a nominee of, the Depository,
interests in which will be held for the benefit of purchasers of
securities in transactions under Rule 144A, and (B) “Regulation S global
notes” means one or more Global Securities deposited with a custodian
for, and registered in the name of a nominee of, the Depository,
interests in which will be held for the benefit of purchasers of the
securities in offshore transactions under Regulation S.

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	 	     (c) Except as provided in subparagraph (f) hereof, the Series A
Notes due 2008 and the Series B Notes due 2008 are to be initially
registered in the name of Cede & Co., as nominee for the Depository.
Subject to subparagraphs (d), (e) and (f) hereof, such Series A Notes due
2008 and Series B Notes due 2008 shall not be transferable or
exchangeable, nor shall any purported transfer be registered, except as
follows:

		
	 	     (i) such Series A Notes due 2008 and Series B Notes due 2008
may be transferred in whole, and appropriate registration of
transfer effected, if such transfer is by such nominee to the
Depository, or by the Depository to another nominee thereof, or by
any nominee of the Depository to any other nominee thereof, or by
the Depository or any nominee thereof to any successor securities
depository or any nominee thereof; and

		
	 	     (ii) such Series A Notes due 2008 and Series B Notes due 2008
may be exchanged for definitive Series A Notes due 2008 and Series
B Notes due 2008 of the same series registered in the respective
names of the beneficial owners thereof, and, subject to
subparagraph (d), (e) and (f) below, thereafter shall be
transferable without restriction, if:

		
	 	     (A) the Depository, or any successor securities
depositary, shall have notified the Company and the Trustee
that it is unwilling or unable to continue to act as
securities depository with respect to such Series A Notes due
2008 or Series B Notes due 2008, as the case may be, or the
Depository has ceased to be a clearing agency registered
under the Securities Exchange Act of 1934, as amended, and
the Trustee shall not have been notified by the Company
within ninety (90) days of the identity of a successor
securities depository with respect to such Series A Notes due
2008 or Series B Notes due 2008, as the case may be;

		
	 	     (B) the Company shall have delivered to the Trustee a
Company Order to the effect that such Series A Notes due 2008
or Series B Notes due 2008, as the case may be, shall be so
exchangeable on and after a date specified therein; or

		
	 	     (C) (x) an Event of Default shall have occurred and be
continuing, (y) the Trustee shall have given notice of such
Event of Default pursuant to Article 7 of the Indenture and
(z) there shall have been delivered to the Company and the
Trustee an Opinion of Counsel to the effect that the
interests of the beneficial owners of such Series A Notes due
2008 or Series B Notes due 2008, as the case may be, in
respect thereof will be materially impaired unless such
owners become Holders of definitive Series A Notes due 2008
or Series B Notes due 2008, as the case may be.

		
	 	     (d) All Series A Notes due 2008 and all beneficial interests in one
or more Series A Notes due 2008 and all Securities issued upon
registration of, transfer of, or in exchange for, any such Securities
(other than Exchange Notes or Securities sold pursuant

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	 	to an effective registration statement under the Securities Act or
Securities issued, directly or indirectly, upon registration of transfer
of, or in exchange for, any such Securities), shall be restricted
securities within the meaning of Rule 144 under the Securities Act
(collectively, “Restricted Securities”) and shall be subject to the
restrictions on transfer provided in the legends set forth on the
Restricted Securities. The registered Holder of each Registered
Security, by such registered Holder’s acceptance thereof, agrees to be
bound by such restrictions on transfer. All Restricted Securities shall
bear on their faces the applicable legends limiting transferability set
forth on the form the Series A Notes due 2008.

		
	 	     Each registered Holder of a beneficial interest in a Global Security
that is a Restricted Security will be deemed to have represented and
agreed to offer, sell, pledge or otherwise transfer such beneficial
interest only in accordance with the legend set forth on the face of the
Restricted Securities.

		
	 	     Subject to the restrictions on transfer and exchange set forth
herein and in the Indenture, the holder of any Series A Notes due 2008 or
Series B Notes due 2008 issued hereunder may transfer or exchange such
Series A Notes due 2008 or Series B Notes due 2008, as the case may be,
in whole or in part by surrendering them at the Corporate Trust Office of
the Trustee or its agent, together with (A), an executed instrument of
assignment and transfer (in the case of a transfer) or a written request
for exchange (in the case of exchange), and, in the case of Series A
Notes due 2008 that are Restricted Securities, a certificate
substantially in the form set forth in Exhibit B hereto, and (B)
additional certifications and evidence that such transfer or exchange is
in compliance with the Securities Act and the restrictions on transfer
set forth in such notes as may be required pursuant to the terms of this
Supplemental Indenture.

		
	 	     (e) The following provisions shall apply with respect to any
proposed transfer of a Rule 144A global note or a beneficial interest
therein prior to (x) the date which is two years (or such shorter period
of time as permitted by Rule 144(k) of the Securities Act) after the
later of the Original Issue Date of the Series A Notes due 2008 and the
last date on which the Company or any “affiliate” (as defined in Rule 144
under the Securities Act) of the Company was the owner of Series A Notes
due 2008 (or any predecessor of the Series A Notes due 2008) or (y) such
later date, if any, as may be required by applicable law:

		
	 	     (i) a transfer of a Rule 144A global note or a beneficial
interest therein to a QIB in accordance with Rule 144A shall be
made upon the representation of the transferee that it is
purchasing the Series A Notes due 2008 for its own account or an
account with respect to which it exercises sole investment
discretion and that it and any such account is a QIB and is aware
that the sale to it is being made in reliance on Rule 144A and
acknowledges that it has received such information regarding the
Company as it has requested pursuant to Rule 144A or has determined
not to request such information and that it is aware that the
transferor is relying upon its foregoing representations in order
to claim the exemption from registration provided by Rule 144A;

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	 	(ii) a transfer of a Rule 144A global note or a beneficial
interest therein in accordance with Regulation S shall be made upon
receipt by the Trustee or its agent of a certificate substantially
in the form set forth in Exhibit C hereto from the proposed
transferor and, if requested by the Company or the Trustee, the
delivery of an opinion of counsel, certifications and/or other
information satisfactory to each of them.

		
	 	     (f) The following provisions shall apply with respect to any
proposed transfer of a Regulation S global note or a beneficial interest
therein prior to (x) the date which is two years (or such shorter period
of time as permitted by Rule 144(k) of the Securities Act) after the
later of the Original Issue Date of the Series A Notes due 2008 and the
last date on which the Company or any “affiliate” (as defined in Rule 144
under the Securities Act) of the Company was the owner of the Series A
Notes due 2008 (or any predecessor of the Series A Notes due 2008) or (y)
such later date, if any, as may be required by applicable law:

		
	 	     (i) a transfer of a Regulation S global note or a beneficial
interest therein to a QIB in accordance with Rule 144A shall be
made upon the representation of the transferee that it is
purchasing the Series A Notes due 2008 for its own account or an
account with respect to which it exercises sole investment
discretion and that it and any such account is a QIB and is aware
that the sale to it is being made in reliance on Rule 144A and
acknowledges that it has received such information regarding the
Company as it has requested pursuant to Rule 144A or has determined
not to request such information and that it is aware that the
transferor is relying upon its foregoing representations in order
to claim the exemption from registration provided by Rule 144A;

		
	 	     (ii) a transfer of a regulation S global note or a beneficial
interest therein in accordance with Regulation S shall be made upon
receipt by the Trustee or its agent of a certificate substantially
in the form set forth in Exhibit C hereto from the proposed
transferor and, if requested by the Company or the Trustee, the
delivery of an opinion of counsel, certifications and/or other
information satisfactory to each of them.

		
	 	     Prior to or on the expiration of the 40-day “distribution compliance
period” within the meaning of Rule 903 of Regulation S under the
Securities Act (the “Distribution Compliance Period”), beneficial
interests in a Regulation S global note may only be held through the
operator of the Euroclear System (“Euroclear”) or Clearstream Banking, a
societe anonyme (“Clearstream”) (as indirect participants in the
Depository), or another agent member of Euroclear or Clearstream acting
for and on behalf of them, unless exchanged for interests in the Rule
144A global note in accordance with the certification requirements
hereof.
	 
	 	     During the Distribution Compliance Period, interests in the
Regulation S global note, if any, maybe be exchanged for interests in the
Rule 144A global note only in accordance with the certification
requirements described in clause (i) of this subsection (f).

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     SECTION 2.07. The Series A Notes due 2008 and Series B Notes due 2008
shall initially be in the form attached as Exhibit A hereto.

ARTICLE THREE

MISCELLANEOUS

     SECTION 3.01. The recitals of fact herein and in the Series A Notes due
2008 and Series B Notes due 2008 (except the Trustee’s Certificate) shall be
taken as statements of the Company and shall not be construed as made by the
Trustee.

     SECTION 3.02. This Supplemental Indenture shall be construed in connection
with and as a part of the Indenture.

     SECTION 3.03.

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

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

     SECTION 3.04. Whenever in this Supplemental Indenture either of the
parties hereto is named or referred to, this shall be deemed to include the
successors or assigns of such party, and all the covenants and agreements in
this Supplemental Indenture contained by or on behalf of the Company or by or
on behalf of the Trustee shall bind and inure to the benefit of the respective
successors and assigns of such parties, whether so expressed or not.

     SECTION 3.05.

     (a)  This Supplemental Indenture may be simultaneously executed in several
counterparts, and all said counterparts executed and delivered, each as an
original, shall constitute but one and the same instrument.

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

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     IN WITNESS WHEREOF, XCEL ENERGY INC. has caused this Supplemental
Indenture to be signed by its President or a Vice President, and attested by
its Secretary or an Assistant Secretary and WELLS FARGO BANK MINNESOTA,
NATIONAL ASSOCIATION, has caused this Supplemental Indenture to be signed by
its President, Vice President, Assistant Vice President or authorized Corporate
Trust Officer, and attested by an authorized officer, this 24th day of June,
2003.

	 	 	 
	 	 	
XCEL ENERGY INC.
	 
	 	 	
By:  /s/ Benjamin G.S. Fowke III
	 	 	

	 	 	
Name:  Benjamin G.S. Fowke III
	 	 	
Title:  Vice President & Treasurer
	ATTEST:	 	 
	 
	By:  /s/ Anne M. Ziebell	 	 
	

Anne Ziebell, Assistant Corporate Secretary	 	
WELLS FARGO BANK MINNESOTA,

NATIONAL ASSOCIATION, as Trustee
	 
	 	 	
By:  /s/ Michael T. Lechner
	 	 	

	ATTEST:	 	
Name: Michael T. Lechner

Title: Assistant Vice President
	By:  /s/ Michael G. Slade	 	 
	
	 	 
	Name: Michael G. Slade

Title: Corporate Trust Officer	 	 

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EXHIBIT A

FORM OF

3.40% SENIOR NOTES, SERIES [A]1 [B]2 DUE 2008

REGISTERED

     [THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED (THE “SECURITIES ACT”). THE HOLDER HEREOF, BY PURCHASING THIS
SECURITY, AGREES FOR THE BENEFIT OF THE COMPANY THAT THIS SECURITY MAY NOT BE
RESOLD, PLEDGED OR OTHERWISE TRANSFERRED OTHER THAN (A)(1) TO THE COMPANY, (2)
IN A TRANSACTION ENTITLED TO AN EXEMPTION FROM REGISTRATION PROVIDED BY RULE
144 UNDER THE SECURITIES ACT, (3) SO LONG AS THIS SECURITY IS ELIGIBLE FOR
RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”), TO A
PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER
WITHIN THE MEANING OF RULE 144A PURCHASING FOR ITS OWN ACCOUNT OR FOR THE
ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE
RESALE, PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (4)
OUTSIDE THE UNITED STATES IN A TRANSACTION MEETING THE REQUIREMENTS OF
REGULATION S UNDER THE SECURITIES ACT, (5) IN ACCORDANCE WITH ANOTHER
APPLICABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT
(AND BASED UPON AN OPINION OF COUNSEL ACCEPTABLE TO THE COMPANY) OR (6)
PURSUANT TO A REGISTRATION STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE UNDER
THE SECURITIES ACT AND (B) IN EACH CASE IN ACCORDANCE WITH APPLICABLE
SECURITIES LAWS OF EACH STATE OF THE UNITED STATES. THE HOLDER HEREOF, BY
PURCHASING THIS SECURITY, REPRESENTS AND AGREES FOR THE BENEFIT OF THE COMPANY
THAT IT IS (1) A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A
OR (2) A NON-U.S. PERSON OUTSIDE THE UNITED STATES WITHIN THE MEANING OF
REGULATION S UNDER THE SECURITIES ACT.]1

     [THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED (THE “SECURITIES ACT”), AND ACCORDINGLY, MAY NOT BE OFFERED OR SOLD
WITHIN THE UNITED STATES OR TO OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS
EXCEPT AS SET FORTH IN THE PRECEDING PARAGRAPH. BY ITS ACQUISITION HEREOF, THE
HOLDER (1) REPRESENTS THAT IT IS NOT A U.S. PERSON AND IS ACQUIRING THIS
SECURITY IN AN OFFSHORE TRANSACTION, (2) BY ITS ACCEPTANCE HEREOF AGREES TO
OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY, PRIOR TO THE DATE (THE RESALE
RESTRICTION TERMINATION DATE) WHICH IS TWO YEARS AFTER THE LATER OF THE
ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH THE COMPANY OR ANY
AFFILIATE OF THE COMPANY WAS THE OWNER OF THIS

	 	 	1 To be inserted only in Series A Notes due 2008.
	 
	 	 	2 To be inserted only in Series B Notes due 2008.

A-1

 

SECURITY (OR ANY PREDECESSOR OF SUCH SECURITY), ONLY AS SET FORTH IN THE
PRECEDING PARAGRAPH, SUBJECT TO THE COMPANY’S AND THE TRUSTEE’S RIGHTS PRIOR TO
ANY SUCH OFFER, SALE OR TRANSFER TO REQUIRE THE DELIVERY OF AN OPINION OF
COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM
(FORMS OF WHICH MAY BE OBTAINED FROM THE COMPANY OR THE TRUSTEE) COMPLETED AND
DELIVERED BY THE TRANSFEROR TO THE COMPANY AND THE TRUSTEE.]3

     THIS NOTE IS A GLOBAL SECURITY REGISTERED IN THE NAME OF THE DEPOSITORY
(REFERRED TO HEREIN) OR A NOMINEE THEREOF AND, UNLESS AND UNTIL IT IS EXCHANGED
IN WHOLE OR IN PART FOR THE INDIVIDUAL NOTES REPRESENTED HEREBY, THIS GLOBAL
SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITORY TO A
NOMINEE OF THE DEPOSITORY OR BY A NOMINEE OF THE DEPOSITORY TO THE DEPOSITORY
OR ANOTHER NOMINEE OF THE DEPOSITORY OR BY THE DEPOSITORY OR ANY SUCH NOMINEE
TO A SUCCESSOR DEPOSITORY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITORY. UNLESS
THIS GLOBAL SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK), TO THE TRUSTEE
FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED
IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY AND ANY PAYMENT IS
MADE TO CEDE & CO., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF,
CEDE & CO., HAS AN INTEREST HEREIN.

XCEL ENERGY INC.

(Incorporated under the laws of the State of Minnesota)

3.40% SENIOR NOTE, SERIES [A]1 [B]2 DUE 2008

	 	 	 
	CUSIP:	 	
NUMBER:
	ORIGINAL ISSUE DATE(S):	 	
PRINCIPAL AMOUNT(S): $
	INTEREST RATE: 3.40%	 	
MATURITY DATE: July 1, 2008

     XCEL ENERGY INC., a corporation of the State of Minnesota (the “Company”),
for value received hereby promises to pay to Cede & Co. or registered assigns,
the principal sum of
                    
DOLLARS on
the Maturity Date set forth above, and to pay interest thereon from the
[Original Issue Date (or if this Global Security has two or more Original Issue
Dates, interest shall, beginning on each such Original Issue Date,

	 	 	1 To be inserted by only in Series A Notes due 2008.
	 
	 	 	2 To be inserted by only in Series B Notes due 2008.
	 
	 	 	3 To be inserted only in Regulation S global note.

A-2

 

begin to accrue for that part of the principal amount to which that
Original Issue Date is applicable) set forth above or]1 from the most recent
Interest Payment Date to which interest has been paid or duly provided for,
semiannually in arrears on the January 1 and July 1 in each year, commencing on
the first such Interest Payment Date succeeding the applicable Original Issue
Date set forth above, at the per annum Interest Rate set forth above, until the
principal hereof is paid or made available for payment. No interest shall
accrue on the Maturity Date, so long as the principal amount of this Global
Security is paid on the Maturity Date. The interest so payable and punctually
paid or duly provided for on any such Interest Payment Date will, as provided
in the Indenture, be paid to the Person in whose name this Note is registered
at the close of business on the Regular Record Date for such interest, which
shall be the December 15 or June 15, as the case may be, next preceding such
Interest Payment Date; provided, that the first Interest Payment Date for any
part of this Note, the Original Issue Date of which is after a Regular Record
Date but prior to the applicable Interest Payment Date, shall be the Interest
Payment Date following the next succeeding Regular Record Date; and provided,
that interest payable on the Maturity Date set forth above or, if applicable,
upon redemption or acceleration, shall be payable to the Person to whom
principal shall be payable. Except as otherwise provided in the Indenture (as
defined below), any such interest not so punctually paid or duly provided for
will forthwith cease to be payable to the Holder on such Regular Record Date
and shall be paid to the Person in whose name this Note is registered at the
close of business on a Special Record Date for the payment of such defaulted
interest to be fixed by the Trustee, notice whereof shall be given to
Securityholders not more than fifteen days or fewer than ten days prior to such
Special Record Date. On or before Noon, New York City time, or such other time
as shall be agreed upon between the Trustee and the Depository, of the day on
which such payment of interest is due on this Global Security (other than
maturity), the Trustee shall pay to the Depository such interest in same day
funds. On or before 11:30 a.m., New York City time, or such other time as
shall be agreed upon between the Trustee and the Depository, of the day on
which principal, interest payable at maturity and premium, if any, is due on
this Global Security and following receipt of the necessary funds from the
Company, the Trustee shall deposit with the Depository the amount equal to the
principal, interest payable at maturity and premium, if any, by wire transfer
into the account specified by the Depository. As a condition to the payment,
on the Maturity Date or upon redemption or acceleration, of any part of the
principal and applicable premium of this Global Security, the Depository shall
surrender, or cause to be surrendered, this Global Security to the Trustee,
whereupon a new Global Security shall be issued to the Depository.

     This Global Security is a global security in respect of a duly authorized
issue of Senior Notes, Series [A]1 [B]2 due 2008 (the “Notes of this Series”,
which term includes any Global Securities representing such Notes) of the
Company issued and to be issued under an Indenture dated as of December 1, 2000
between the Company and Wells Fargo Bank Minnesota, National Association, as
trustee (herein called the “Trustee”, which term includes any successor Trustee
under the Indenture) and indentures supplemental thereto (collectively, the
“Indenture”). Under the Indenture, one or more series of Securities may be
issued and, as used herein, the term “Securities” refers to the Notes of this
Series and any other outstanding series of Securities. Reference is hereby made
for a more complete statement of the respective rights, limitations of rights,
duties and immunities under the Indenture of the Company, the Trustee and the

	 	 	1 To be inserted by only in Series A Notes due 2008.
	 
	 	 	2 To be inserted by only in Series B Notes due 2008.

A-3

 

Securityholders and of the terms upon which the Securities are and are to
be authenticated and delivered. This Global Security has been issued in
respect of the series designated on the prior page hereof, limited in aggregate
principal amount to $195,000,000 [minus the aggregate principal amount of all
outstanding Series A Notes due 2008 that are not being exchanged for Notes of
this Series]2.

     Each Note of this Series shall be dated and issued as of the date of its
authentication by the Trustee and shall bear an Original Issue Date or Dates.
Each Security or Global Security issued upon transfer, exchange or substitution
of such Security or Global Security shall bear the Original Issue Date or Dates
of such transferred, exchanged or substituted Security or Global Security, as
the case may be.

     The Company may redeem the Notes of this Series at any time, in whole or
in part upon no less than 30 or more than 60 days prior notice given in the
manner and with the effect provided in Section 3.2 of the Indenture, at a
redemption price equal to the greater of (1) the principal amount being
redeemed or (2) the sum of the present values of the remaining scheduled
payments of principal and interest on the relevant series of notes being
redeemed, discounted to the date fixed for redemption on a semi-annual basis
(assuming a 360-day year consisting of twelve 30-day months) at the Treasury
Yield plus 25 basis points, plus in each case accrued interest to the date
fixed for redemption.

     “Treasury Yield” means, for any date fixed for redemption, the rate per
annum equal to the semi-annual equivalent yield to maturity of the Comparable
Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed
as a percentage of its principal amount) equal to the Comparable Treasury Price
for the date fixed for redemption.

     “Comparable Treasury Issue” means the United States Treasury security
selected by an Independent Investment Banker as having a maturity comparable to
the remaining term of the Notes of this Series that would be utilized, at the
time of selection and in accordance with customary financial practice, in
pricing new issues of corporate debt securities of comparable maturity to the
remaining term of the Notes of this Series.

     “Independent Investment Banker” means UBS Securities LLC or its successor
or, if such firm or its successor is unwilling or unable to select the
Comparable Treasury Issue, one of the remaining Reference Treasury Dealers
appointed by the Trustee after consultation with the Company.

     “Comparable Treasury Price” means, for any date fixed for redemption, (1)
the average of the bid and asked prices for the Comparable Treasury Issue
(expressed in each case as a percentage of its principal amount) on the third
Business Day preceding the date fixed for redemption, as set forth in the daily
statistical release (or any successor release) published by the Federal Reserve
Bank of New York and designated “Composite 3:30 p.m. Quotations for U.S.
Government Securities” or (2) if that release (or any successor release) is not
published or does not contain those prices on that Business Day, (A) the
average of the Reference Treasury Dealer Quotations for the date fixed for
redemption, after excluding the highest and lowest Reference

	 	 	2 To be inserted by only in Series B Notes due 2008.

A-4

 

Treasury Dealer Quotations for the date fixed for redemption, or (B) if
the Company obtains fewer than four Reference Treasury Dealer Quotations, the
average of all of the Reference Treasury Dealer Quotations.

     “Reference Treasury Dealer Quotations” means, for each Reference Treasury
Dealer and any date fixed for redemption, the average, as determined by the
Independent Investment Banker, of the bid and asked prices for the Comparable
Treasury Issue (expressed in each case as a percentage of its principal amount)
quoted in writing to the Independent Investment Banker by the Reference
Treasury Dealer at 5:00 p.m. on the third Business Day preceding the date fixed
for redemption.

     “Reference Treasury Dealer” means (1) each of Credit Suisse First Boston
LLC, McDonald Investments Inc., UBS Securities LLC and any other primary U.S.
Government Securities dealer in the United States (a “Primary Treasury Dealer”)
designated by, and not affiliated with, Credit Suisse First Boston LLC,
McDonald Investments Inc., UBS Securities LLC and their respective successors,
provided, however, that if any of the foregoing or any of their designees
ceases to be a Primary Treasury Dealer, the Company shall appoint another
Primary Treasury Dealer as a substitute and (2) any other Primary Treasury
Dealer selected by the Company.

     Interest payments for this Global Security shall be computed and paid on
the basis of a 360-day year of twelve 30-day months. In any case where any
Interest Payment Date or date on which the principal of this Global Security is
required to be paid is not a Business Day, then payment of principal, premium
or interest need not be made on such date but may be made on the next
succeeding Business Day with the same force and effect as if made on such
Interest Payment Date or date on which the principal of this Global Security is
required to be paid and, in the case of timely payment thereof, no interest
shall accrue for the period from and after such Interest Payment Date or the
date on which the principal of this Global Security is required to be paid.

     The Company, at its option, and subject to the terms and conditions
provided in the Indenture, will be discharged from any and all obligations in
respect of the Securities (except for certain obligations including obligations
to register the transfer or exchange of Securities, replace stolen, lost or
mutilated Securities, maintain paying agencies and hold monies for payment in
trust, all as set forth in the Indenture) if the Company deposits with the
Trustee money, U.S. Government Obligations which through the payment of
interest thereon and principal thereof in accordance with their terms will
provide money, or a combination of money and U.S. Government Obligations, in
any event in an amount sufficient, without reinvestment, to pay all the
principal of and any premium and interest on the Securities on the dates such
payments are due in accordance with the terms of the Securities.

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

     The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modifications of the rights and obligations of the
Company and the rights of the Securityholders under the Indenture at any time
by the Company and the Trustee with the

A-5

 

consent of the Holders of not less than a majority in principal amount of
the outstanding Securities. Any such consent or waiver by the Holder of this
Global Security shall be conclusive and binding upon such Holder and upon all
future Holders of this Global Security and of any Note issued upon the
registration of transfer hereof or in exchange therefor or in lieu thereof
whether or not notation of such consent or waiver is made upon the Note.

     As set forth in and subject to the provisions of the Indenture, no Holder
of any Securities 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
with respect to such Securities, the Holders of not less than a majority in
principal amount of the outstanding Securities affected by such Event of
Default shall have made written request and offered reasonable indemnity to the
Trustee to institute such proceeding as Trustee and the Trustee 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 any premium or interest on this
Note on or after the respective due dates expressed here.

     No reference herein to the Indenture and to provisions of this Global
Security or of the Indenture shall alter or impair the obligation of the
Company, which is absolute and unconditional, to pay the principal of and any
premium and interest on this Global Security at the times, places and rates and
the coin or currency prescribed in the Indenture.

     [Any Notes of this Series which are presented to the Company and/or the
Trustee for exchange pursuant to an Exchange Offer in accordance with the terms
thereof shall be exchanged for Exchange Notes of equal principal amount upon
surrender to the Company and/or the Trustee of the Notes of this Series to be
exchanged; provided, however, that the Notes of this Series so surrendered for
exchange shall be duly endorsed and accompanied by a letter of transmittal or
written instrument of transfer in form satisfactory to the Company, duly
executed by the registered holder thereof or its attorney who shall be duly
authorized in writing to execute such document. Whenever any Notes of this
Series are so surrendered for exchange, the Company shall execute, and the
Trustee shall authenticate and deliver to and in the name of each registered
holder that has properly tendered its Notes of this Series for exchange, the
same aggregate principal amount of Exchange Notes as the Notes of this Series
that have been so surrendered. For purposes hereof, the following defined
terms shall have the meaning ascribed to them:

		
	 	“Exchange Offer” means the offer by the Company, pursuant to an
effective registration statement filed with the Securities and
Exchange Commission, to exchange the Exchange Notes for all of the
outstanding Notes of this Series.
	 
	 	“Exchange Notes” means debt securities of the Company identical in
all material respects to the Notes of this Series presented for
exchange pursuant to the Exchange Offer (except that the transfer
restrictions shall be modified or eliminated, as appropriate) and
to be issued under the Indenture].1

	 	 	1 To be inserted by only in Series A Notes due 2008.

A-6

 

     As provided in the Indenture and subject to certain limitations therein
set forth, this Global Security may be transferred only as permitted by the
legend hereto.

     If at any time the Depository for this Global Security notifies the
Company that it is unwilling or unable to continue as Depository for this
Global Security or if at any time the Depository for this Global Security shall
no longer be eligible or in good standing under the Securities Exchange Act of
1934, as amended, or other applicable statute or regulation, the Company shall
appoint a successor Depository with respect to this Global Security. If a
successor Depository for this Global Security is not appointed by the Company
within 90 days after the Company receives such notice or becomes aware of such
ineligibility, the Company’s election to issue this Note in global form shall
no longer be effective with respect to this Global Security and the Company
will execute, and the Trustee, upon receipt of a Company Order for the
authentication and delivery of individual Notes of this Series in exchange for
this Global Security, will authenticate and deliver individual Notes of this
Series of like tenor and terms in definitive form in an aggregate principal
amount equal to the principal amount of this Global Security.

     The Company may at any time and in its sole discretion determine that all
Notes of this Series (but not less than all) issued or issuable in the form of
one or more Global Securities shall no longer be represented by such Global
Security or Securities. In such event, the Company shall execute, and the
Trustee, upon receipt of a Company Order for the authentication and delivery of
individual Notes of this Series in exchange for such Global Security, shall
authenticate and deliver, individual Notes of this Series of like tenor and
terms in definitive form in an aggregate principal amount equal to the
principal amount of such Global Security or Securities in exchange for such
Global Security or Securities.

     Under certain circumstances specified in the Indenture, the Depository may
be required to surrender any two or more Global Securities which have identical
terms (but which may have differing Original Issue Dates) to the Trustee, and
the Company shall execute and the Trustee shall authenticate and deliver to, or
at the direction of, the Depository a Global Security in principal amount equal
to the aggregate principal amount of, and with all terms identical to, the
Global Securities surrendered thereto and that shall indicate all Original
Issue Dates and the principal amount applicable to each such Original Issue
Date. The Indenture and the Securities shall be governed by, and construed in
accordance with, the laws of the State of Minnesota.

     Unless the certificate of authentication hereon has been executed by the
Trustee, directly or through an Authenticating Agent by manual signature of an
authorized officer, this Global Security shall not be entitled to any benefit
under the Indenture or be valid or obligatory for any purpose.

     All terms used in this Global Security which are defined in the Indenture
shall have the meanings assigned to them in the Indenture unless otherwise
indicated herein.

A-7

 

     In Witness Whereof, the Company has caused this instrument to be duly
executed.

Dated:      

	 	 	 
	 	 	
XCEL ENERGY INC.
	 
	 	 	
By:
	 	 	

	 	 	
Title:
	Attest:	 	 
	
Title:	 	 

TRUSTEE’S CERTIFICATE

OF AUTHENTICATION

     This Note is one of the Securities of the series herein designated,
described or provided for in the within-mentioned Indenture.

	 	 
	 	WELLS FARGO BANK MINNESOTA,

NATIONAL ASSOCIATION, as Trustee
	 
	 	By:

Authorized Officer

A-8

 

ABBREVIATIONS

     The following abbreviations, when used in the inscription on the face of
this instrument, shall be construed as though they were written out in full
according to applicable laws or regulations.

	 	 	 
	TEN COM—as tenants in common	 	
UNIF GIFT
	 	 	
MIN ACT—            Custodian 
       

                    (Cust)                (Minor)
	TEN ENT—as tenants by the entireties	 	
Under Uniform Gifts to
Minors

 

	JT TEN—as joint tenants with right
of survivorship and not as tenants
in common	 	
     
State

Additional abbreviations may also be used

though not in the above list.

     

     FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto

PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE

     

     Please print or typewrite name and address including postal zip code of
assignee

the within security and all rights thereunder, hereby irrevocably constituting
and appointing                     
attorney to transfer said security on the books of the Company, with full
power of substitution in the premises.

Dated:

NOTICE: The signature to this assignment must correspond with the name as
written upon the face of the within instrument in every particular, without
alteration or enlargement or any change whatever.

A-9

 

EXHIBIT B

[Form of Transferor Certificate]

CERTIFICATE TO XCEL ENERGY INC. AND TRUSTEE

SERIES A NOTES DUE 2008

     This is to certify that as of the date hereof with respect to U.S. $                    
principal amount of the above-captioned securities presented or surrendered on
the date hereof (the “Surrendered Notes”) for registration of transfer or for
exchange where the securities issuable upon such exchange are to be registered
in a name other than that of the undersigned holder (each such transaction
being a “transfer”), the undersigned holder of the Surrendered Notes represents
and certifies for the benefit of Xcel Energy Inc. and Wells Fargo Bank
Minnesota, National Association, as Trustee, that the transfer of Surrendered
Notes associated with such transfer complies with the restrictive legend set
forth on the face of the Surrendered Notes for the reason checked below:

	 	 	 
		 	
The Surrendered Notes are being transferred to a person whom
we reasonably believe is a “qualified institutional buyer”
(as defined in Rule 144A under the Securities Act of 1933) (a
“QIB”) that purchases for its own account or for the account
of a QIB to whom notice is given that the resale, pledge or
transfer is being made in reliance on Rule 144A under the
Securities Act; or
	 
		 	
The transfer of the Surrendered Notes complies with Rule 144
under the Securities Act;1 or
	 
		 	
The transfer of the Surrendered Notes complies with another
applicable exemption from the registration requirements of
the Securities Act.1
	 
	 	 	
[Name of holder]
	 
	 	 	
Dated:                          ,
     

[To be dated the date of presentation or surrender]

	 	 	1 These transfers may require an opinion of counsel.

B-1

 

EXHIBIT C

[Form of Regulation S Transfer Certificate]

[date]

Xcel Energy Inc.

800 Nicollet Mall

Minneapolis, MN 55401

Wells Fargo Bank Minnesota, National Association

MAC N9303-110

Sixth and Marquette Avenue

Minneapolis, MN 55479

Attention: Michael T. Lechner

Dear Ladies and Gentlemen:

     In
connection with our proposed sale of
$               
aggregate principal
amount of 3.40% Senior Notes, Series A due 2008 (the “Notes”) of Xcel Energy
Inc. (the “Company”), we confirm that:

	 	(a)	 	the offer of the Notes was not made to a person in the United
States;
	 
	 	(b)	 	either (i) at the time the buy order was originated, the
transferee was outside the United States or we and any person acting
on our behalf reasonably believed that the transferee was outside
the United States or (ii) the transaction was executed in, on or
through the facilities of a designated off-shore securities market
and neither we nor any person acting on our behalf knows that the
transaction has been pre-arranged with a buyer in the United States;
	 
	 	(c)	 	no directed selling efforts have been made in the United
States in contravention of the requirements of Rule 903(b) or Rule
904(b) of Regulation S, as applicable; and
	 
	 	(d)	 	the transaction is not part of a plan or scheme to evade the
registration requirements of the Securities Act.

     In addition, if the sale is made during a Distribution Compliance Period
(within the meaning of Regulation S), we confirm that, to the best of our
knowledge after due inquiry, the purchaser is not a U.S. Person (within the
meaning of Regulation S).

     Further, if the sale is made during a Distribution Compliance Period and
the provisions of Rule 903(a)(3) or Rule 904(b)(1) of Regulation S are
applicable thereto, we confirm that such sale has been made in accordance with
the applicable provisions of Rule 903(a)(3) or Rule 904(b)(1), as the case may
be.

C-1

 

     The Company and the Trustee are entitled to rely upon this letter and are
irrevocably authorized to produce this letter or a copy hereof to any
interested party in any administrative or legal proceedings or official inquiry
with respect to the matters covered hereby. Terms used in this certificate
have the meanings set forth in Regulation S.

	 	 	 	 	 
	 	 	
     
	 	Very truly yours,

[Name of Transferor]

 

By:      

	Date:	 	
     

C-2exv10w01

 

Exhibit 10.01

STOCK EQUIVALENT PLAN

FOR NON-EMPLOYEE DIRECTORS OF

XCEL ENERGY INC.

(As Amended and Restated Effective January 1, 2001)

ARTICLE I

PURPOSE, DEFINITIONS AND GENERAL PROVISIONS

1.1. Purpose. The purposes of this Plan are: (a) to cause a portion of the
compensation of each non-employee director of Xcel Energy Inc. (“Xcel”) to be
paid in equivalents of common stock of the Company; and (b) to permit each
director to defer receipt of all or a portion of his/her retainer, board or
committee meeting fees.

1.2. Definitions.

	 	(a)	 	"Award” shall mean the amount, expressed either in dollars of
Compensation or in Stock Equivalents, that will be credited to a
Participant on an Award Date. The term “Award” includes Conversion
Awards, Deferral Awards and Discretionary Awards.
	 
	 	(b)	 	"Award Date” shall mean the date an Award is to be credited
to a Participant.
	 
	 	(c)	 	"Board” shall mean the Board of Directors of the Company.
	 
	 	(d)	 	"Beneficiary” shall mean the person or persons (including,
without limitation, the trustees of any testamentary or inter vivos
trust,) designated from time to time in writing by a Participant to
receive payments under the Plan after the death of such Participant,
or, in the absence of any such designation or in the event that such
designated persons or person shall predecease such Participant, or
shall not be in existence or shall otherwise be unable to receive
such payments, the person or persons designated under such
Director’s last will and testament or, in the absence of such
designation, to the Participant’s estate.

 

 

	 	(e)	 	"Committee” shall mean those management members of the
Company, namely the Chairman of the Board, President, Chief
Financial Officer and Corporate Secretary, who administer the Plan,
provided all such persons are not eligible to participate in the
Plan. All decisions by the Committee shall be by simple majority
and the decisions will be final.
	 
	 	(f)	 	"Company” shall mean Xcel Energy Inc., a Minnesota
corporation, and any successor thereof.
	 
	 	(g)	 	"Compensation” shall mean payments which the Director
receives from the Company for services as a member of its Board of
Directors. Such payments may include directors’ retainers, board
meeting fees and committee meeting fees, but shall exclude direct
reimbursement of expenses.
	 
	 	(h)	 	"Conversion Award” shall mean a one-time Award made to a
Director in lieu of benefits earned by that Director under the Xcel
Energy Inc. Retirement Plan for Non-Employee Directors, pursuant to
an election described in Section 1.5 hereof.
	 
	 	(i)	 	"Deferral Award” shall mean an Award made pursuant to a
deferral election described in Section 1.4 hereof.
	 
	 	(j)	 	"Director” shall mean any member of the Board of Directors of
the Company who is not an employee of the Company.
	 
	 	(k)	 	"Discretionary Award” shall mean an Award made at the sole
discretion of the Board pursuant to Section 1.3 of this Plan.
	 
	 	(l)	 	"Xcel Stock” shall mean the common stock of the Company, par
value $2.50 per share.
	 
	 	(m)	 	"Participant” shall mean any Director who receives an Award.
	 
	 	(n)	 	"Plan” shall mean the Stock Equivalent Plan for Non-Employee
Directors of the Company, as from time to time amended and in
effect.
	 
	 	(o)	 	"Stock Account” shall mean the account to which Awards are
credited in the name of a Participant as described in Section 2.2 of
this Plan.
	 
	 	(p)	 	"Stock Equivalents” shall mean the units, representing a like
number of shares of Xcel Stock, that are credited to a Director’s
Stock Account under Sections 2.1 and 2.2 of this Plan.

2

 

	 	(q)	 	"Termination of Service” shall mean the termination (by
death, retirement or otherwise) of a Participant’s service as a
Director of the Company.

1.3. Discretionary Awards. The amount and number of Discretionary Awards that
may be granted under this Plan is subject to the sole discretion of the Board
and shall be determined in the sole discretion of the Board. Each Award shall
contain such terms, restrictions and conditions as the Board may determine that
are not inconsistent with this Plan. Discretionary Awards shall be made in
Stock Equivalents or as a dollar amount, as determined in the sole discretion
of the Board.

1.4. Deferral Awards. In accordance with this Section, a Director may elect to
receive Deferral Awards in lieu of all or a portion of his/her Compensation by
filing with the Secretary of the Company an election in writing on a form
approved by the Committee. Deferral Awards shall be made as of the date such
Compensation would have been paid, in a dollar amount equal to the amount of
Compensation the Director has elected to defer. A deferral election with
respect to Compensation for a calendar year must be made prior to the beginning
of that calendar year. In the case of an individual who becomes a Director
after the first day of the calendar year, a deferral election must be made
within 30 days of the date such individual becomes a director. A deferral
election shall continue in effect until the Director’s Termination of Service
or, if the Director provides the Secretary of the Company with earlier written
notice to discontinue the deferral election, at the end of the calendar year in
which such written notice is received by the Secretary.

1.5. Conversion Awards. In lieu of all benefits otherwise payable under the
Xcel Energy Inc. Retirement Plan for Non-Employee Directors (“Retirement
Plan”), any Director elected to the Board prior to October 1, 1997 and serving
on the Board during the last quarter of 1997 may make a one-time election to
receive a Conversion Award under this Plan in a dollar amount equal to the sum
of the quarterly retainer payments the Director would have been entitled to
receive under the Retirement Plan if the Director’s service on the Board ended
December 31, 1997. Any such election must be made in writing on a form
approved by the Committee for that purpose, and shall be irrevocable. Any such
election will not be effective unless it is received by the Corporate Secretary
on or before December 31, 1997, and prior to termination of
the Director’s service on the Board. The Award Date for a Conversion Award
under this Plan in satisfaction of a Director’s conversion election shall be
January 1, 1998.

3

 

ARTICLE II

TREATMENT OF AWARDS

2.1. Stock Accounts. The Company shall establish on its books a Stock Account
in the name of each Participant accurately to reflect the Company’s liability
to each Participant who has received an Award. To this Stock Account shall be
credited Awards plus other items as described hereafter. Payments to a
Participant or Beneficiary following Termination of Service shall be debited to
the Stock Account. In addition, debits and credits to the Stock Account shall
be made in the manner provided hereafter. Despite the maintenance of such
Stock Account for each Participant, the Company’s obligation to make
distributions under the Plan shall be made from the Company’s general assets
and property. The Company may, in its sole discretion, establish a separate
fund or account to make payment to a Participant or Beneficiary hereunder.
Whether the Company, in its sole discretion, does establish such a fund or
account, no Participant or Beneficiary or any person shall have, under any
circumstances, any interest whatever in any particular property or assets of
the Company by virtue of this Plan.

2.2. Crediting of Awards. Awards in the form of Stock Equivalents shall be
credited to a Participant’s Stock Account. Awards in dollars shall also be
credited to a Participant’s Stock Account by converting the dollar amount of
the Award into Stock Equivalents equal to the number of shares of Xcel Stock,
to three decimal places, that could be purchased on the Award Date with the
dollar amount of such Award, at a price per share equal to the arithmetical
mean of the highest and lowest quoted selling prices on the New York Stock
Exchange Composite Tape for such day. If there are no sales on that day, such
mean on the next preceding day on which there are such sales shall be used.

2.3 Crediting of Dividends/Stock Splits.

     (a) On each date on which a dividend in cash or property is distributed by
the Company on shares of issued and outstanding Xcel Stock, the Stock Account
of a Participant shall be credited with Stock Equivalents as follows: (i) the
dollar amount of the fair market value of the cash or property so distributed
per share of issued and outstanding Xcel Stock shall be multiplied by the
number of Stock Equivalents (including fractions) in the Participant’s Stock
Account on the record date for such
distribution; (ii) this dollar amount shall then be converted into Stock
Equivalents equal to the number of shares of Xcel Stock, to three decimal
places, that could be purchased on the payment date for such distribution by
dividing such dollar amount by a price per share equal to the arithmetical mean
of the highest and lowest quoted selling prices on the New York Stock Exchange
Composite Tape for such date, or, if there are no sales on that date, such mean
on the next preceding day on which there are such sales shall be used.

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     (b) On each date on which a stock dividend or stock split is distributed
with respect to shares of Xcel Stock, a Participant’s Stock Account shall be
credited with the number of Stock Equivalents equal to the product of (x) the
number of shares which would have been distributed per share of issued and
outstanding Xcel Stock and (y) the number of Stock Equivalents (including
fractions) in the Participant’s Stock Account on the record date for such
distribution.

2.4 Conversion of Stock Equivalents. If the Company shall be a party to any
consolidation or merger or share exchange and, in connection with such
transaction, all or part of the outstanding shares of Xcel Stock shall be
changed into or exchanged for stock or other securities of any other entity or
the Company or cash or any other property, on the day immediately preceding the
effective date of such transaction, the Stock Equivalents in a Participant’s
Stock Account shall be converted into the appropriate number of stock
equivalents of such other entity.

2.5. Time of Payment of Awards.

     (a) Except as provided in Section 2.7, Awards shall not be payable to a
Participant prior to the Participant’s Termination of Service.

     (b) Upon Termination of Service, the portion of a Participant’s aggregate
account balance in his/her Stock Account that is attributable to any Conversion
Award and to any other Award credited to the Stock Account prior to December
31, 1997 shall be paid in a single distribution of Xcel Stock to the
Participant (or, in the event of the Participant’s death, his/her beneficiary)
within 90 days after the date of Termination of Service.

     (c) Except as provided in subsections (d) and (e) below, the remainder of
a Participant’s Stock Account shall be paid in the manner selected by the
Participant from the distribution alternatives established by the Committee. A
Participant may only make one distribution election. For a Participant elected
to the Board prior to October 1, 1997, the distribution election shall be made
prior to January 1, 1998. For
a Participant elected to the Board after October 1, 1997, the distribution
election shall be made within 60 days of his/her election to the Board. The
distribution election must be made in writing on a form approved by the
Committee. Once made, the distribution election shall be irrevocable. A
Participant’s distribution election shall apply only to the portion of the
Participant’s Stock Account that is attributable to Discretionary Awards
credited to the Participant’s Stock Account after the date on which the
distribution election is made and to Deferral Awards attributable entirely to
Compensation earned after the date of the election.

     (d) Any portion of a Participant’s Stock Account for which no distribution
election has been made shall be paid in a single distribution of Xcel Stock to
the Participant (or, in the event of the Participant’s death, his/her
beneficiary) within 90 days after the date of Termination of Service.

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     (e) Notwithstanding any of the preceding provisions of this Section 2.5,
any Participant whose Stock Account includes a portion that is attributable to
a Conversion Award may make a one-time irrevocable election no later than March
31, 2001, to have such portion paid in the manner elected by the Participant
from among the available optional forms approved by the Committee, provided
such election is made in writing on a form approved by the Committee that is
received by the Corporate Secretary no later than March 31, 2001, and provided
further, that such election shall be void and have no effect if the
Participant’s Termination of Service occurs prior to April 1, 2002.
Notwithstanding any election made by a Participant, in the event of a
Participant’s death prior to payment in full of a Participant’s Stock Account,
the entire remaining balance in the Participant’s Account shall be paid in a
single distribution to the Participant’s Beneficiary.

2.6. Form of Payment. Awards shall be payable to a Participant only as a
distribution of whole shares of Xcel Stock equal to the number of whole Stock
Equivalents credited to the Participant’s Stock Account, and cash for any
partial Stock Equivalents. The shares of Xcel Stock to be used for
distribution under this plan shall be shares purchased on the open market. In
converting a Participant’s partial Stock Equivalents in his/her Stock Account
into cash for payment purposes, such conversion shall be based on the then
current market value of the partial shares of Xcel Stock reflected in his/her
Stock Account. For purposes of the preceding sentence, market value shall be
the arithmetical mean between the highest and lowest quoted selling prices for
Xcel Stock on the New York Stock Exchange Composite Tape on the date
immediately preceding the payment date. If there are no sales on that day,
then such mean on the next preceding day on which there are such sales shall be
used. Upon request, the Company will reimburse a Participant for any
expenses actually incurred by the Participant for the sale of shares
distributed to the Participant under this Plan, provided such request and sale
occur within one year after the Participant receives the distribution.

2.7. Acceleration of Payments. In the event of a Participant’s disability, the
Committee, within its sole discretion, is empowered to accelerate the payment
of such Participant’s Stock Account balance to such Participant prior to
Termination of Service.

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ARTICLE III

OTHER PROVISIONS

3.1. Amendment or Termination. The Board of Directors may amend or terminate
this Plan at any time; provided, however, that no amendment or termination
shall adversely affect any prior Awards or rights under this Plan, and provided
further that no amendment may be made to the last sentence of Section 3.5
hereof.

3.2. Expenses. The expenses of administering the Plan shall be borne by the
Company, and shall not be charged against any Participant’s Awards.

3.3. Applicable Law. The provisions of the Plan shall be construed,
administered and enforced according to the laws of the State of Minnesota.

3.4. No Trust. No action by the Company, the Board or the Committee under this
Plan shall be construed as creating a trust, escrow or other secured or
segregated fund or other fiduciary relationship of any kind in favor of any
Participant, Beneficiary, or any other persons otherwise entitled to Awards.
The status of the Participant and Beneficiary with respect to any liabilities
assumed by the Company hereunder shall be solely those of unsecured creditors
of the Company. Any asset acquired or held by the Company in connection with
liabilities assumed by it hereunder, shall not be deemed to be held under any
trust, escrow or other secured or segregated fund or other fiduciary
relationship of any kind for the benefit of the Participant or Beneficiary or
to be security for the performance of the obligations of the Company, but shall
be, and remain, a general, unpledged, unrestricted asset of the Company at all
times subject to the claims of general creditors of the Company.

3.5. No Assignability and Successors. Neither the Participant nor any other
person shall acquire any right to or interest in any amount awarded to the
Participant,
otherwise than by actual payment in accordance with the provisions of this
Plan, or have any power, voluntarily or involuntarily, to transfer, assign,
anticipate, pledge, mortgage or otherwise encumber, alienate or transfer any
rights hereunder in advance of any of the payments to be made pursuant to this
Plan or any portion thereof. The obligations of the Company hereunder shall be
binding upon any and all successors and assigns of the Company.

3.6. Withholding. The Company shall comply with all federal and state laws and
regulations with respect to the withholding, deposit and payment of any income
taxes relating to the payment of Awards under this Plan.

3.7. No Impact on Directorship. This Plan shall not be construed to confer any
right on the part of a Participant to be or remain a Director or to receive
any, or any particular rate of, Compensation.

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3.8. Interpretations. The Committee shall administer this Plan and shall have
discretionary authority to construe and interpret the terms of this Plan, and
to establish such rules and procedures for implementing the Plan as it deems
necessary or advisable. Interpretations of, and determinations related to,
this Plan made by the Committee in good faith, including any determinations or
calculations of Awards or Stock Account balances, shall be conclusive and
binding upon all parties; and the Company and the members of the Committee
shall not incur any liability to a Participant for any such interpretation or
determination so made or for any other action taken by it in connection with
this Plan.

3.9. Shareholder Rights. Directors shall not be deemed for any purpose to be
or have rights as shareholders of the Company with respect to any Stock
Equivalents credited to a Stock Account, until and unless a certificate for
Xcel Stock is issued upon distribution hereunder.

3.10. Securities Laws. Xcel Stock shall not be distributed to a Participant
upon distribution of his/her Stock Account unless the issuance complies with
all relevant provisions of law, including without limitation, (i) securities
laws of Minnesota or any other appropriate state, (ii) restrictions, if any,
imposed by the Securities Act of 1933 and the Securities Exchange Act of 1934
and rules and regulations promulgated thereunder by the Securities & Exchange
Commission (“SEC”), (iii) rules of any stock exchange on which shares of Xcel
Stock are listed, and (iv) until the sale of such Xcel Stock has been
registered with the SEC.

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3.11. Effective Date. This Plan was first established and effective on April
23, 1996. This amended and restated Plan is effective as of January 1, 2001.
Except as otherwise specifically provided, payments to a Director whose service
as a Director ends prior to January 1, 2001, shall be determined under the
terms of the Plan as in effect when his/her service as a Director terminated
(and not under the terms of this amended and restated Plan).

	 	 
	 	XCEL ENERGY INC

	 	 
	 	/s/ James J. Howard

James J. Howard

Chairman of the Board

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