Document:

exv10wxay

 

EXHIBIT
10 (a)

EXECUTION COPY

AMENDMENT NO. 1

     This AMENDMENT NO. 1, dated as of December 19, 2007 (this “Amendment”), is by
and among CMS Energy Corporation, a Michigan corporation (the “Borrower”), the
financial institutions parties to the “Credit Agreement” (defined below) as lenders (the
“Lenders”), and Citicorp USA, Inc. (“CUSA”), as administrative agent (in such
capacity, the “Administrative Agent”).

     WHEREAS, the Borrower, the Lenders, the Administrative Agent and CUSA, as collateral
agent, have entered into a Seventh Amended and Restated Credit Agreement, dated as of
April 2, 2007 (as amended, restated, supplemented or otherwise modified from time to
time, the “Credit Agreement”; capitalized terms not defined herein are used as
defined in the Credit Agreement);

     WHEREAS, the Borrowers, the requisite number of Lenders under Section 11.01
of the Credit Agreement and the Administrative Agent have agreed, subject to the terms
and conditions hereof, to amend the Credit Agreement as hereinafter set forth.

     NOW, THEREFORE, in consideration of the premises set forth above, and for other good
and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
the Borrowers, the requisite number of Lenders under Section 11.01 of the Credit
Agreement and the Administrative Agent agree as follows:

     1. Amendment to Credit Agreement. Subject to the conditions set forth in
Paragraph 2 hereof, the Credit Agreement is hereby amended by amending and
restating the definition of “Consolidated EBITDA” set forth in Section
1.01 of the Credit Agreement in its entirety as follows:

     “Consolidated EBITDA” means, with reference to any period, the
pretax operating income of the Borrower and its Subsidiaries (“Pretax
Operating Income”) for such period plus, to the extent included in
determining Pretax Operating Income (without duplication), (i)
depreciation, depletion and amortization, (ii) non-cash write-offs
and write-downs, including, without limitation, write-offs or
write-downs related to the sale of assets, impairment of assets and
loss on contracts, (ii) non-cash gains or losses on mark-to-market
valuation of contracts and (iv) the cash or non-cash costs and
expense charges related to the termination, buy-out or amendment of
electricity sales agreements associated with Dearborn Industrial
Generation, L.L.C. and/or CMS ERM Michigan LLC, or other agreements
related thereto in an aggregate amount not to exceed $325,000,000
during the life of the Agreement, in each case in accordance with
GAAP consistently applied, all calculated for the Borrower and its
Subsidiaries on a consolidated basis for such period; provided,
however, that Consolidated EBITDA shall not include any operating
income attributable to that portion of the revenues of Consumers
dedicated to the repayment of the Securitized Bonds.

 

 

     2. Conditions to Effectiveness. The amendments contemplated by this Amendment
shall become effective upon the satisfaction of the following conditions:

     (a) The Administrative Agent shall have received duly executed counterparts
hereof from each of the requisite number of Lenders under Section
11.01 of the Credit
Agreement, the Administrative Agent and the Borrower.

     (b) As of the date hereof, all representations and warranties contained in
this
Amendment shall be true and correct in all material respects.

     (c) As of the date hereof no event shall have occurred and be continuing
which constitutes an Event of Default or a Default.

     3. Reference to and Effect on the Loan Documents. On and after the
effective
date of this Amendment, each reference in the Credit Agreement to “this Agreement”,
“hereunder”, “hereof” or words of like import referring to the Credit Agreement shall
mean and
be a reference to the Credit Agreement, as modified by this Amendment, and each
reference in
the other Loan Documents to “the Credit Agreement”, “thereunder”, “thereof” or words
of like
import referring to the Credit Agreement shall mean and be a reference to the Credit
Agreement,
as modified by this Amendment. Except as specifically set forth above, the Credit
Agreement
and all other Loan Documents are and shall continue to be in full force and effect
and are hereby
in all respects ratified and confirmed.

     4. Miscellaneous.

     (a) Representations and Warranties. The Borrower represents
and warrants
that:

     (i) The representations and warranties contained in Section
7.01 of the Credit Agreement (other than those contained in
subsection (f) thereof) are correct in all material respects on and
as of the date hereof (unless such representation and warranty is made as
of a specific date, in which case such representation and warranty shall be
true and correct as of such date), and no event has occurred and is
continuing that constitutes a Default or an Event of Default;

     (ii) Each Loan Party is duly organized and validly existing and in good
standing under the laws of the jurisdiction of its organization and has the
requisite power and authority to execute, deliver and carry out the terms
and provisions of this Amendment and has taken or caused to be taken all
necessary corporate or limited liability company action to authorize the
execution, delivery and performance of this Amendment;

     (iii) No consent of any other person, including, without limitation,
shareholders or creditors of any Loan Party, and no action of, or filing
with, any governmental or public body or authority, is required to
authorize, or is otherwise required in connection with the execution,
delivery and performance of, this Amendment;

2

 

     (iv) This Amendment has been duly executed and delivered by a duly
authorized officer on behalf of the Loan Parties party thereto, and
constitutes the legal, valid and binding obligations of each Loan Party,
enforceable in accordance with its terms, except as enforcement thereof may
be subject to the effect of any applicable (A) bankruptcy, insolvency,
reorganization, moratorium or similar law affecting creditors’ rights
generally and (B) general principles of equity (regardless of whether
enforcement is sought in a proceeding in equity or at law); and

     (v) The execution, delivery and performance of this Amendment will not
violate any law, statute or regulation applicable to any Loan Party or any
order or decree of any court or governmental instrumentality applicable to
it, or conflict with, or result in the breach of, or constitute a default
under, any of its contractual obligations.

     (b)
No Waiver. Nothing herein contained shall constitute a waiver or be
deemed to be a waiver, of any existing Defaults or Events of Default, and the
Lenders
and the Administrative Agent reserve all rights and remedies granted to them
by the
Credit Agreement, by the other Loan Documents, by law and otherwise.

     (c) Costs and Expenses. The Borrower agrees to pay all reasonable
costs and
out-of-pocket expenses (including, without limitation, reasonable
attorneys’ fees)
incurred by the Administrative Agent in connection with the preparation,
execution and
enforcement of this Amendment.

     (d)
Headings. Section headings in this Amendment are included herein
for
convenience of reference only and shall not constitute a part of this
Amendment for any
other purpose.

     (e) Counterparts. This Amendment may be executed in any number of
separate counterparts, each of which shall collectively and separately
constitute one
agreement. Delivery of an executed counterpart of a signature page to this
Amendment
by facsimile shall be effective as delivery of a manually executed counterpart
of this
Amendment.

     (f) GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED
BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF
NEW YORK (INCLUDING SECTION 5-1401 OF THE GENERAL OBLIGATIONS
LAWS OF THE STATE OF NEW YORK, BUT OTHERWISE WITHOUT REGARD
TO CONFLICTS OF LAW PRINCIPLES).

[signature pages follow]

3

 

     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed
by their respective officers thereunto duly authorized, as of the date first above
written.

	 	 	 	 	 
	 	CMS ENERGY CORPORATION, as Borrower

 	 
	 	By:  	/s/ Laura L. Mountcastle
 	 
	 	 	Name:  	Laura L. Mountcastle 	 
	 	 	Title:  	Vice President & Treasurer 	 
	 
	 	CITICORP USA, INC., as Administrative Agent

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	CITIBANK, N.A., as a Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Signature Page to Amendment No. 1 to

Seventh Amended and Restated Credit Agreement

(CMS Energy Corporation)

 

     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by
their respective officers thereunto duly authorized, as of the date first above written.

	 	 	 	 	 
	 	CMS ENERGY CORPORATION, as Borrower

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	CITICORP USA, INC., as Administrative Agent

 	 
	 	By:  	/s/ Shannon Sweeney
 	 
	 	 	Name:  	Shannon Sweeney 	 
	 	 	Title:  	Vice President 	 
	 
	 	CITIBANK, N.A., as a Lender

 	 
	 	By:  	/s/ Shannon Sweeney
 	 
	 	 	Name:  	Shannon Sweeney 	 
	 	 	Title:  	Vice President 	 
	 

Signature Page to Amendment No. 1 to

Seventh Amended and Restated Credit Agreement

(CMS Energy Corporation)

 

	 	 	 	 	 
	 	UNION BANK OF CALIFORNIA, N.A., as a Lender

 	 
	 	By:  	/s/ Bryan Read
 	 
	 	 	Name:  	Bryan Read 	 
	 	 	Title:  	Vice President 	 
	 
	 	BARCLAYS BANK PLC, as a Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	JPMORGAN CHASE BANK, N.A., as a Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	WACHOVIA BANK, NATIONAL ASSOCIATION, as a Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Signature Page to Amendment No. 1 to

Seventh Amended and Restated Credit Agreement

(CMS Energy Corporation)

 

	 	 	 	 	 
	 	UNION BANK OF CALIFORNIA, N.A., as a Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	BARCLAYS BANK PLC, as a Lender

 	 
	 	By:  	/s/ Sydney G. Dennis
 	 
	 	 	Name:  	Sydney G. Dennis 	 
	 	 	Title:  	Director 	 
	 
	 	JPMORGAN CHASE BANK, N.A., as a Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Signature Page to Amendment No. 1 to

Seventh Amended and Restated Credit Agreement

(CMS Energy Corporation)

 

	 	 	 	 	 
	 	UNION BANK OF CALIFORNIA, N.A., as a Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	BARCLAYS BANK PLC, as a Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	JPMORGAN CHASE BANK, N.A., as a Lender

 	 
	 	By:  	/s/ Michael DeForge
 	 
	 	 	Name:  	Michael DeForge 	 
	 	 	Title:  	Executive Director 	 
	 
	 	WACHOVIA BANK, NATIONAL ASSOCIATION, as a Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Signature Page to Amendment No. 1 to

Seventh Amended and Restated Credit Agreement

(CMS Energy Corporation)

 

	 	 	 	 	 
	 	UNION BANK OF CALIFORNIA, N.A., as a Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	BARCLAYS BANK PLC, as a Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	JPMORDAN CHASE BANK, N.A., as a Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	WACHOVIA BANK, NATIONAL ASSOCIATION, as a Lender

 	 
	 	By:  	/s/ FREDRICK W. PRICE
 	 
	 	 	Name:  	FREDRICK W. PRICE 	 
	 	 	Title:  	MANAGING DIRECTOR 	 
	 

Signature Page to Amendment No. 1 to

Seventh Amended and Restated Credit Agreement

(CMS Energy Corporation)

 

	 	 	 	 	 
	 	MERRILL LYNCH BANK USA, as a Lender 

 	 
	 	By:  	/s/ Louis Alder
 	 
	 	 	Name:  	Louis Alder 	 
	 	 	Title:  	Director 	 
	 
	 	BNP PARIBAS, as a Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	SUNTRUST BANK, as a Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	UBS LOAN FINANCE LLC, as a Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Signature Page to Amendment No. 1 to

Seventh Amended and Restated Credit Agreement

(CMS Energy Corporation)

 

	 	 	 	 	 

	 	 	 	 	 
	 	MERRILL LYNCH BANK USA, as a Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	BNP PARIBAS, as a Lender

 	 
	 	By:  	/s/ FRANCIS J. DELANEY
 	 
	 	 	Name:  	FRANCIS J. DELANEY     	 
	 	 	Title:  	Managing Director 	 
	 
	 	 	 
	 	By:  	
/s/ DENIS O’MEARA
 	 
	 	 	Name:  	DENIS O’MEARA 	 
	 	 	Title:  	Managing Director 	 
	 
	 	SUNTRUST BANK, as a Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 
	 
	 	UBS LOAN FINANCE LLC, as a Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 
	 

Signature Page to Amendment No. 1 to

Seventh Amended and Restated Credit Agreement

(CMS Energy Corporation)

 

	 	 	 	 	 
	 	MERRILL LYNCH BANK USA, as a Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	BNP PARIBAS, as a Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	SUNTRUST BANK, as a Lender

 	 
	 	By:  	/s/ Yann Pirio
 	 
	 	 	Name:  	Yann Pirio 	 
	 	 	Title:  	Vice President 	 
	 
	 	UBS LOAN FINANCE LLC, as a Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Signature Page to Amendment No. 1 to

Seventh Amended and Restated Credit Agreement

(CMS Energy Corporation)

 

	 	 	 	 	 
	 	MERRILL LYNCH BANK USA, as a Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	BNP PARIBAS, as a Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	SUNTRUST BANK, as a Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	UBS LOAN FINANCE LLC, as a Lender

 	 
	 	By:  	/s/ David B. Julie
 	 
	 	 	Name:  	David B. Julie         	 
	 	 	Title:  	Associate Director 	 
	 
	 	 	 
	 	By:  	/s/ Irja R. Otsa
 	 
	 	 	Name:  	Irja R. Otsa  	 
	 	 	Title:  	Associate Director 	 
	 

Signature Page to Amendment No. 1 to

Seventh Amended and Restated Credit Agreement

(CMS Energy Corporation)

 

	 	 	 	 	 
	 	DEUTSCHE BANK TRUST COMPANY AMERICAS, as a Lender

 	 
	 	By:  	/s/ Illegible
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 	 	 
	 	By:  	/s/ Scottye Lindsey
 	 
	 	 	Name:  	Scottye Lindsey 	 
	 	 	Title:  	Director 	 
	 
	 	KEYBANK NATIONAL ASSOCIATION, as a Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	COMERICA BANK, as a Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	LASALLE BANK, NATIONAL ASSOCIATION, as a Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Signature Page to Amendment No. 1 to

Seventh Amended and Restated Credit Agreement

(CMS Energy Corporation)

 

	 	 	 	 	 
	 	DEUTSCHE BANK TRUST COMPANY AMERICAS, as

a Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	KEYBANK NATIONAL ASSOCIATION, as a Lender

 	 
	 	By:  	/s/
Sherrie I. Manson
 	 
	 	 	Name:  	Sherrie I. Manson  	 
	 	 	Title:  	Senior Vice President 	 
	 
	 	COMERICA BANK, as a Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	LASALLE BANK, NATIONAL ASSOCIATION, as a

Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Signature Page to Amendment No. 1 to

Seventh Amended and Restated Credit Agreement

(CMS Energy Corporation)

 

	 	 	 	 	 
	 	DEUTSCHE BANK TRUST COMPANY AMERICAS, as a Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	KEYBANK NATIONAL ASSOCIATION, as a Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	COMERICA BANK, as a Lender

 	 
	 	By:  	/s/ BLAKE ARNETT
 	 
	 	 	Name:  	BLAKE ARNETT 	 
	 	 	Title:  	VICE PRESIDENT 	 
	 
	 	LASALLE BANK, NATIONAL ASSOCIATION, as a Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Signature Page to Amendment No. 1 to

Seventh Amended and Restated Credit Agreement

(CMS Energy Corporation)

 

	 	 	 	 	 
	 	DEUTSCHE BANK TRUST COMPANY AMERICAS, as a Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	KEYBANK NATIONAL ASSOCIATION, as a Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	COMERICA BANK, as a Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	LASALLE BANK MIDWEST, N.A., as a Lender

 	 
	 	By:  	/s/ GREGORY E. CASTLE
 	 
	 	 	Name:  	GREGORY E. CASTLE 	 
	 	 	Title:  	FIRST VICE PRESIDENT 	 
	 

Signature Page to Amendment No. 1 to

Seventh Amended and Restated Credit Agreement

(CMS Energy Corporation)

 

	 	 	 	 	 
	 	CREDIT SUISSE, CAYMAN ISLANDS BRANCH, as a Lender

 	 
	 	By:  	/s/ Brian Caldwell
 	 
	 	 	Name:  	Brian Caldwell  	 
	 	 	Title:  	Director 	 
	 	 	 
	 	By:  	/s/ Laurence Lapeyre
 	 
	 	 	Name:  	Laurence Lapeyre  	 
	 	 	Title:  	Associate 	 
	 	 	 
	 	FIFTH THIRD BANK, as a
Lender 

	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	WELLS FARGO BANK, NATIONAL ASSOCIATION, as
a Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	THE BANK OF NOVA SCOTIA, as a Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	BAYERISCHE LANDESBANK, as a Lender

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Signature Page to Amendment No. 1 to

Seventh Amended and Restated Credit Agreement

(CMS Energy Corporation)

 

	 	 	 	 	 
	 	CREDIT SUISSE, CAYMAN ISLANDS BRANCH, as a Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	FIFTH THIRD BANK, as a Lender

 	 
	 	By:  	/s/ BRIAN JELINSKI
 	 
	 	 	Name:  	BRIAN JELINSKI  	 
	 	 	Title:  	AVP 	 
	 
	 	WELLS FARGO BANK, NATIONAL
ASSOCIATION, as a
Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	THE BANK OF NOVA SCOTIA, as a Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	BAYERISCHE LANDESBANK, as a Lender

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Signature Page to Amendment No. 1 to

Seventh Amended and Restated Credit Agreement

(CMS Energy Corporation)

 

	 	 	 	 	 
	 	CREDIT SUISSE, CAYMAN ISLANDS BRANCH, as a Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	FIFTH THIRD BANK, as a Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	WELLS FARGO BANK, NATIONAL ASSOCIATION, as a Lender
 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	THE BANK OF NOVA SCOTIA, as a Lender

 	 
	 	By:  	/s/        Thane Rattew
 	 
	 	 	Name:  	Thane Rattew  	 
	 	 	Title:  	Managing Director 	 
	 
	 	BAYERISCHE LANDESBANK, as a Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Signature Page to Amendment No. 1 to

Seventh Amended and Restated Credit Agreement

(CMS Energy Corporation)

 

	 	 	 	 	 
	 	CREDIT SUISSE, CAYMAN ISLANDS
BRANCH, as a Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	FIFTH THIRD BANK, as a Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	WELLS FARGO BANK, NATIONAL ASSOCIATION, as a Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	THE BANK OF NOVA SCOTIA, as a Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	BAYERISCHE LANDESBANK, as a Lender

 	 
	 	By:  	/s/ John Gregory                    /s/ Nikolal von Mengden
	 
	 	 	Name:  	John Gregory               Nikolal von Mengden 	 
	 	 	Title:  	First Vice President     Senior Vice President 	 
	 

Signature Page to Amendment No. 1 to

Seventh Amended and Restated Credit Agreement

(CMS Energy Corporation)

 

	 	 	 	 	 
	 	HUNTINGTON NAITONAL BANK, as a Lender

 	 
	 	By:  	/s/ Patrick Barbour
 	 
	 	 	Name:  	Patrick Barbour 	 
	 	 	Title:  	Vice President 	 
	 
	 	GOLDMAN SACHS CREDIT PARTNERS, L.P., as a

Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	SUMITOMO MITSUI BANKING CORP., as a Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Signature Page to Amendment No. 1 to

Seventh Amended and Restated Credit Agreement

(CMS Energy Corporation)

 

	 	 	 	 	 
	 	HUNTINGTON NAITONAL BANK, as a Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	GOLDMAN SACHS CREDIT PARTNERS, L.P.,
as a Lender

 	 
	 	By:  	/s/ Pedro Ramirez
 	 
	 	 	Name:  	Pedro Ramirez  	 
	 	 	Title:  	Authorized Signatory 	 
	 
	 	SUMITOMO MITSUI BANKING CORP., as a Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Signature Page to Amendment No. 1 to

Seventh Amended and Restated Credit Agreement

(CMS Energy Corporation)

 

	 	 	 	 	 
	 	SUMITOMO MITSUI BANKING CORP., as a Lender

 	 
	 	By:  	/s/ Masakazu Hasegawa
 	 
	 	 	Name:  	Masakazu Hasegawa 	 
	 	 	Title:  	Joint General Manager 	 
	 

Signature Page to Amendment No. 1 to

Seventh Amended and Restated Credit Agreement

(CMS Energy Corporation)exv10wxby

 

EXHIBIT 10(b)

EXECUTION COPY

CMS ENERGY

FOURTH AMENDED AND RESTATED PLEDGE AND SECURITY AGREEMENT

     THIS FOURTH
AMENDED AND RESTATED PLEDGE AND SECURITY AGREEMENT (this “Security Agreement”),
dated as of April 2, 2007, is made by CMS ENERGY CORPORATION, a corporation organized and existing
under the laws of the State of Michigan (the “Grantor”), to CITICORP USA, INC. (“CUSA”), as
Collateral Agent (the “Collateral Agent”) for the lenders (the “Lenders”) parties to the Credit
Agreement (as hereinafter defined).

PRELIMINARY STATEMENTS

     (1) The Grantor has previously entered into that certain Third Amended and Restated Pledge
and Security Agreement, dated as of December 8, 2003 (said Agreement, as amended or otherwise
modified from time to time prior to the date hereof, being the “Existing Security Agreement”), in
connection with that certain Fourth Amended and Restated Credit Agreement, dated as of December 8,
2003, among the Grantor, CMS Enterprises Company, CUSA, as Administrative Agent and as Collateral
Agent, and the Lenders named therein (said Agreement, as subsequently restated as the Sixth
Amended and Restated Credit Agreement, dated as of May 18, 2005 and as further amended prior to
the date hereof, the “Existing Credit Agreement”).

     (2) The Grantor, CUSA, as Administrative Agent and as Collateral Agent, and the Lenders have
agreed to amend and restate the Existing Credit Agreement pursuant to that certain Seventh Amended
and Restated Credit Agreement, dated as the date hereof (as amended, restated, supplemented or
otherwise modified from time to time, the “Credit Agreement”).

     (3) The Grantor is the owner of the Collateral described in Exhibit “A” hereto.

     (4) It is a condition precedent to the effectiveness of the Credit Agreement that the Grantor
shall have made the pledge contemplated by this Agreement.

     (5) It is the intention of the parties hereto that this Security Agreement be merely an
amendment and restatement of the Existing Security Agreement and not constitute a novation of the
grants of security or the obligations thereunder.

     NOW, THEREFORE, in consideration of the premises and in order to induce the Lenders to make
Extensions of Credit under the Credit Agreement, the Grantor hereby agrees with the Collateral
Agent, for its benefit and the ratable benefit of the other Secured Parties, that the Existing
Security Agreement is amended and restated in its entirety as follows:

ARTICLE I

DEFINITIONS

     1.1. Terms Defined in Credit Agreement. All capitalized terms used herein and not
otherwise defined shall have the meanings assigned to such terms in the Credit Agreement.

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     1.2. Terms Defined in New York Uniform Commercial Code. Terms defined in the New York
UCC which are not otherwise defined in this Security Agreement are used herein as defined in the
New York UCC.

     1.3. Definitions of Certain Terms Used Herein. As used in this Security Agreement, in
addition to the terms defined in the Preliminary Statements, the following terms shall have the
following meanings:

     “Accounts” shall have the meaning set forth in Article 9 of the New York UCC.

     “Article” means a numbered article of this Security Agreement, unless another document is
specifically referenced.

     “Collateral” means the Investment Property described on Exhibit “A” and the proceeds
(including Stock Rights) and products thereof, together with records related thereto.

     “Control” shall have the meaning set forth in Article 8 or, if applicable, in Section 9-104,
9-105, 9-106 or 9-107 of Article 9 of the New York UCC.

     “Default” means an event which but for the lapse of time or the giving of notice, or both,
would constitute an Event of Default.

     “Event of Default” means an event described in Section 5.1.

     “Exhibit” refers to a specific exhibit to this Security Agreement, unless another document is
specifically referenced.

     “Investment Property” shall have the meaning set forth in Article 9 of the New York UCC.

     “Lenders” means the lenders party to the Credit Agreement and their successors and assigns.

     “New York UCC” means the New York Uniform Commercial Code as in effect from time to time.

     “Permitted Liens” means the Liens permitted to be created, incurred or assumed or otherwise
to exist pursuant to Section 8.02(a) of the Credit Agreement.

     “Section” means a numbered section of this Security Agreement, unless another document is
specifically referenced.

     “Secured Obligations” means any and all existing and future indebtedness, obligations and
liabilities of every kind, nature and character, direct or indirect, absolute or contingent
(including all renewals, extensions and modifications thereof and all reasonable and reimbursable
fees, costs and expenses incurred by any Secured Party in connection with the preparation,
administration, collection or enforcement thereof), of the Grantor to any Secured

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Party, arising under or pursuant to this Security Agreement, the Credit Agreement and any other
Loan Document.

     “Secured Parties” means the Collateral Agent, the Administrative Agent and each Lender.

     “Security” has the meaning set forth in Article 8 of the New York UCC.

     “Stock Rights” means any securities, dividends or other distributions and any other right or
property which the Grantor shall receive or shall become entitled to receive for any reason
whatsoever with respect to, in substitution for or in exchange for any securities or other
ownership interests in a corporation, partnership, joint venture or limited liability company
constituting Collateral and any securities, any right to receive securities and any right to
receive earnings, in which the Grantor now has or hereafter acquires any right, issued by an
issuer of such securities.

     The foregoing definitions shall be equally applicable to both the singular and plural forms
of the defined terms.

ARTICLE II

GRANT OF SECURITY INTEREST

     The Grantor hereby pledges, assigns and grants to the Collateral Agent, on behalf of and for
the ratable benefit of the Secured Parties, a security interest in all of the Grantor’s right,
title and interest, whether now owned or hereafter acquired, in and to the Collateral to secure
the prompt and complete payment and performance of the Secured Obligations, provided, however,
that the principal amount of the Secured Obligations secured by the security interests granted
pursuant to this Security Agreement shall not exceed an amount that would cause all secured
Indebtedness of Grantor outstanding on the date hereof to exceed 5% of the “Consolidated Net
Tangible Assets” (as defined in the Twelfth Supplemental Indenture dated as of July 2, 2001
between the Grantor and Bank One Trust Company, N.A. (successor to NBD Bank) with respect to the
Grantor’s original Indenture dated as of September 15, 1992) as of the date hereof.

ARTICLE III

REPRESENTATIONS AND WARRANTIES

     The Grantor represents and warrants to the Collateral Agent and the other Secured Parties
that:

     3.1. Title, Authorization, Validity and Enforceability. The Grantor has good and valid
rights in or the power to transfer the Collateral and title to the Collateral with respect to which
it has purported to grant a security interest hereunder, free and clear of all Liens (other than
Permitted Liens), and has full power and authority to grant to the Collateral Agent the security
interest in such Collateral pursuant hereto. The execution and delivery by the Grantor of this
Security Agreement has been duly authorized by proper corporate or other proceedings, and this
Security Agreement constitutes a legal, valid and binding obligation of the Grantor and creates a
security interest which is enforceable against the Grantor in all now owned and hereafter acquired
Collateral. When financing statements (or appropriate amendments to existing filings)

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have been filed in the appropriate offices against the Grantor in the locations listed on Exhibit
“B”, the Collateral Agent will have a fully perfected first priority security interest in the
Collateral in which a security interest may be perfected by filing.

     3.2. Conflicting Laws and Contracts. The execution, delivery and performance by the
Grantor of this Security Agreement (i) are within the Grantor’s powers, (ii) have been duly
authorized by all necessary corporate or other organizational action or proceedings and (iii) do
not and will not (A) require any consent or approval of the stockholders (or other applicable
holder of equity) of the Grantor (other than such consents and approvals which have been obtained
and are in full force and effect), (B) violate any provision of the charter or by-laws (or other
comparable constitutive documents) of the Grantor or of law, (C) violate any legal restriction
binding on or affecting the Grantor, (D) result in a breach of, or constitute a default under, any
indenture or loan or credit agreement or any other agreement, lease or instrument to which the
Grantor is a party or by which it or its properties may be bound or affected, or (E) result in or
require the creation of any Lien (other than pursuant to the Loan Documents as defined in the
Credit Agreement) upon or with respect to any of its properties.

     3.3. Type and Jurisdiction of Organization. The Grantor is a corporation organized
under the laws of the State of Michigan.

     3.4. Pledged Securities. Exhibit “A” sets forth a complete and accurate list of the
Securities delivered to the Collateral Agent. The Grantor is the direct and beneficial owner of
each Security listed on Exhibit “A” as being owned by it, free and clear of any Liens, except for
the security interest granted to the Collateral Agent for the benefit of the Secured Parties
hereunder and other Permitted Liens. The Grantor further represents and warrants that all such
Securities have been duly and validly issued, are fully paid and non-assessable and constitute the
percentage of the issued and outstanding shares of stock of the respective issuers thereof
indicated on Exhibit “A” hereto.

ARTICLE IV

COVENANTS

     From the date of this Security Agreement, and thereafter until this Security Agreement is
terminated:

     4.1. General.

          4.1.1 Inspection. The Grantor will permit the Collateral Agent or any Lender, by its
representatives and agents (i) to inspect the Collateral, (ii) to examine and make copies of the
records of the Grantor relating to the Collateral and (iii) to discuss the Collateral and the
related records of the Grantor with, and to be advised as to the same by, the Grantor’s officers
and employees all at such reasonable times and intervals as the Collateral Agent or such Lender may
determine.

          4.1.2 Records and Reports. The Grantor will maintain complete and accurate books and
records with respect to the Collateral, and furnish to the Collateral Agent, with

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sufficient copies for each of the Lenders, such reports relating to the Collateral as the
Collateral Agent shall from time to time reasonably request.

          4.1.3 Financing Statements and Other Actions; Defense of Title. The Grantor hereby
authorizes the Collateral Agent to file, and if requested will execute and deliver to the
Collateral Agent, all financing statements describing the Collateral and other documents and take
such other actions as may from time to time be reasonably requested by the Collateral Agent in
order to maintain a perfected security interest in and, if applicable, Control of, the Collateral.
The Grantor will take any and all actions necessary to defend title to the Collateral against all
persons and to defend the security interest of the Collateral Agent in the Collateral and the
priority thereof against any Lien not expressly permitted hereunder.

          4.1.4 Change in Corporate Existence, Type or Jurisdiction of Organization, Location,
Name. The Grantor will preserve its existence as a corporation, not change its state of
organization, and not change its mailing address, unless, in each such case, the Grantor shall have
given the Collateral Agent not less than 10 days’ prior written notice of such event or occurrence
and the Collateral Agent shall have either (x) determined that such event or occurrence will not
adversely affect the validity, perfection or priority of the Collateral Agent’s security interest
in the Collateral, or (y) taken such steps (with the cooperation of the Grantor to the extent
necessary or advisable) as are necessary or advisable to properly maintain the validity, perfection
and priority of the Collateral Agent’s security interest in the Collateral.

     4.2. Securities. The Grantor will (i) deliver to the Collateral Agent immediately upon
execution of this Security Agreement the originals of all Securities constituting Collateral (if
any then exist) and (ii) hold in trust for the Collateral Agent upon receipt and immediately
thereafter deliver to the Collateral Agent any additional Securities constituting Collateral, in
each case together with a stock power or endorsement therefor executed in blank.

     4.3. Stock and Other Ownership Interests. The Grantor will permit any registerable
Collateral to be registered in the name of the Collateral Agent or its nominee at any time at the
option of the Required Lenders following the occurrence and during the continuance of an Event of
Default.

     4.4. Voting Rights and Dividends

     4.5.1 Rights Prior to Default. So long as no Event of Default, and no Default under
Section 9.01(f) of the Credit Agreement, shall have occurred and be continuing:

     (i) Until the Collateral Agent shall have notified the Grantor in writing to the
contrary, the Grantor shall be entitled to exercise or refrain from exercising any and all
voting and other consensual rights pertaining to the Collateral or any part thereof for any
purpose not inconsistent with the terms of this Security Agreement or the Credit Agreement,
provided, however, that the Grantor shall not exercise or refrain from exercising any such
right if such action would have a material adverse effect on the value of the Collateral.

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     (ii) The Grantor shall be entitled to receive and retain any and all dividends and
interest paid in respect of the Collateral; provided, however, that any and all (a)
dividends and interest paid or payable other than in cash in respect of, and securities,
instruments and other property received, receivable or otherwise distributed in respect of,
or in exchange for, any Collateral, and (b) dividends, interest and other distributions paid
or payable in cash in respect of any Collateral in connection with a partial or total
liquidation or dissolution or in connection with a reduction of capital, capital surplus or
paid-in-surplus, shall be, and shall be forthwith delivered to the Collateral Agent to hold
as, Collateral and shall, if received by the Grantor, be received in trust for the benefit
of the Collateral Agent, be segregated from the other property or funds of the Grantor, and
be forthwith delivered to the Collateral Agent as Collateral in the same form as so received
(with any necessary endorsement or assignment).

     (iii) The Collateral Agent shall execute and deliver (or cause to be executed and
delivered) to the Grantor all such proxies and other instruments as the Grantor may
reasonably request for the purpose of enabling the Grantor to exercise the voting and other
rights which it is entitled to exercise pursuant to paragraph (i), above, and to receive the
dividends and interest which it is authorized to receive and retain pursuant to paragraph
(ii), above.

     4.5.2 Rights During Default. Upon the occurrence and during the continuance of
a Default under Section 9.01(f) of the Credit Agreement or an Event of Default:

     (i) Upon written notice to the Grantor by the Collateral Agent, which notice can only
be given by the Collateral Agent with respect to the Collateral consisting of the common
stock of Consumers after the Grantor has filed an application with the Federal Energy
Regulatory Commission seeking approval pursuant to Section 203 of the Federal Power Act, 16
U.S.C. 824b, to transfer the common stock of Consumers to the Collateral Agent and received
such approval from the Federal Energy Regulatory Commission, all rights of the Grantor to
exercise or refrain from exercising the voting and other consensual rights which it would
otherwise be entitled to exercise pursuant to Section 4.5.1(i) and to receive the dividends
and interest which it would otherwise be authorized to receive and retain pursuant to
Section 4.5.1(ii) shall cease, and all such rights shall thereupon become vested in the
Collateral Agent who shall thereupon have the sole right to exercise or refrain from
exercising such voting and other consensual rights and to receive and hold as Collateral
such dividends and interest. The Grantor shall only file the application pursuant to
Section 203 of the Federal Power Act referred to in the prior sentence if the Collateral
Agent instructs it to do so in writing, and the Grantor shall have 10 days after receipt of
such instruction in which to prepare and make the filing; provided, that the
Collateral Agent can withdraw such instruction at any time before the expiration of the
ninth day after its receipt.

     (ii) All dividends and interest and other property which are received by the Grantor
after proper written notice has been received by the Grantor pursuant to paragraph (i) of
this Section 4.5.2 shall be received in trust for the benefit of the Collateral Agent,
shall be segregated from other funds of the Grantor and shall be

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forthwith paid over to the Collateral Agent as Collateral in the same form as so received
(with any necessary endorsement).

ARTICLE V

DEFAULT

     5.1. Default. The occurrence of any “Event of Default” under, and as defined in, the
Credit Agreement shall constitute an Event of Default hereunder.

     5.2. Acceleration and Remedies. Upon the acceleration of the Obligations under the
Credit Agreement pursuant to Section 9.02 thereof, the Collateral Agent may, with the concurrence
or at the direction of the Required Lenders, exercise any or all of the following rights and
remedies:

          5.2.1 Those rights and remedies provided in this Security Agreement, the Credit Agreement, or
any other Loan Document, provided that this Section 5.2.1 shall not be understood to limit any
rights or remedies available to the Collateral Agent and the other Secured Parties prior to an
Event of Default.

          5.2.2 Those rights and remedies available to a secured party under the New York UCC (whether
or not the New York UCC applies to the affected Collateral) or under any other applicable law
(including, without limitation, any law governing the exercise of a bank’s right of setoff or
bankers’ lien) when a debtor is in default under a security agreement.

          5.2.3 Without notice except as specifically provided herein, sell, lease, assign, grant an
option or options to purchase or otherwise dispose of the Collateral or any part thereof in one or
more parcels at public or private sale, for cash, on credit or for future delivery, and upon such
other terms as the Collateral Agent may deem commercially reasonable. The Collateral Agent may
comply with any applicable state or federal law requirements in connection with a disposition of
the Collateral and compliance will not be considered to adversely affect the commercial
reasonableness of any sale of the Collateral.

ARTICLE VI

WAIVERS, AMENDMENTS AND REMEDIES

     No delay or omission of the Collateral Agent or any other Secured Party to exercise any right
or remedy granted under this Security Agreement shall impair such right or remedy or be construed
to be a waiver of any Event of Default or an acquiescence therein, and any single or partial
exercise of any such right or remedy shall not preclude any other or further exercise thereof or
the exercise of any other right or remedy. No waiver, amendment or other variation of the terms,
conditions or provisions of this Security Agreement whatsoever shall be valid unless in writing
signed by the Collateral Agent with the concurrence or at the direction of the Lenders required
under Section 11.01 of the Credit Agreement and the Grantor, and then only to the extent in such
writing specifically set forth. All rights and remedies contained in this Security Agreement or by
law afforded shall be cumulative and all shall be available to the Collateral Agent and the other
Secured Parties until the Secured Obligations have been paid in full in cash and all of the
Commitments have been terminated.

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ARTICLE VII

SUBORDINATION OF INTERCOMPANY INDEBTEDNESS

     The Grantor agrees that any and all claims of the Grantor against any Subsidiary with respect
to any “Intercompany Indebtedness” (as hereinafter defined), any endorser, obligor or any other
guarantor of all or any part of the Secured Obligations, or against any of its properties shall be
subordinate and subject in right of payment to the prior payment, in full and in cash, of all
Secured Obligations; provided, that, for the avoidance of doubt, so long as no Event of
Default shall be continuing, the Borrower and each Subsidiary may make loans to and receive
payments in the ordinary course with respect to Intercompany Indebtedness (as hereinafter defined)
from each other Subsidiary to the extent not prohibited by the terms of the Credit Agreement and
the other Loan Documents. If all or any part of the assets of any the Borrower or any Subsidiary,
or the proceeds thereof, are subject to any distribution, division or application to the creditors
of party, whether partial or complete, voluntary or involuntary, and whether by reason of
liquidation, bankruptcy, arrangement, receivership, assignment for the benefit of creditors or any
other action or proceeding, or if the business of any such Loan Party is dissolved or if
substantially all of the assets of any such party are sold, then, and in any such event (such
events being herein referred to as an “Insolvency Event”), any payment or distribution of any kind
or character, either in cash, securities or other property, which shall be payable or deliverable
upon or with respect to any indebtedness of any Subsidiary to the Grantor (“Intercompany
Indebtedness”) shall be paid or delivered directly to the Collateral Agent for application to the
Secured Obligations, due or to become due, until the Secured Obligations shall have been fully paid
and satisfied in cash. Should any payment, distribution, security or instrument or proceeds thereof
be received by the Grantor upon or with respect to the Intercompany Indebtedness after any
Insolvency Event and prior to the satisfaction of all of the Secured Obligations, the Grantor shall
receive and hold the same in trust, as trustee, for the benefit of the Secured Parties, and shall
forthwith deliver the same to the Collateral Agent, for the benefit of the Secured Parties, in
precisely the form received (except for any necessary endorsement or assignment of the Grantor),
for application to the Secured Obligations, due or to become due, until the Secured Obligations
shall have been fully paid and satisfied in cash, and, until so delivered, the same shall be held
in trust by the Grantor as the property of the Secured Parties.

ARTICLE VIII

GENERAL PROVISIONS

     8.1. Secured Party Performance of Grantor’s Obligations. Without having any
obligation to do so, the Collateral Agent may perform or pay any obligation which the Grantor has
agreed to perform or pay in this Security Agreement and the Grantor shall reimburse the Collateral
Agent for any reasonable amounts paid by the Collateral Agent pursuant to this Section 8.1. The
Grantor’s obligation to reimburse the Collateral Agent pursuant to the preceding sentence shall be
an Obligation payable on demand.

     8.2. Authorization for Secured Party to Take Certain Action. The Grantor irrevocably
authorizes the Collateral Agent at any time and from time to time in the sole discretion of the
Collateral Agent and appoints the Collateral Agent as its attorney in fact (i) to contact and enter
into one or more agreements with the issuers of uncertificated securities which are Collateral and

8

 

which are Securities or with financial intermediaries holding other Investment Property as may be
necessary or advisable solely to give the Collateral Agent Control over such Securities or other
Investment Property, (ii) following the occurrence and during the continuance of an Event of
Default, to apply the proceeds of any Collateral received by the Collateral Agent to the Secured
Obligations and (iii) to discharge past due taxes, assessments, charges, fees or Liens on the
Collateral (except for such Liens as are specifically permitted hereunder or under any other Loan
Document), and the Grantor agrees to reimburse the Collateral Agent on demand for any reasonable
payment made or any reasonable expense incurred by the Collateral Agent in connection therewith,
provided that this authorization shall not relieve the Grantor of any of its obligations under this
Security Agreement or under the Credit Agreement.

     8.3. Benefit of Agreement. The terms and provisions of this Security Agreement shall
be binding upon and inure to the benefit of the Grantor, the Collateral Agent and the other Secured
Parties and their respective successors and assigns (including all persons who become bound as a
debtor to this Security Agreement), except that the Grantor shall not have the right to assign its
rights or delegate its obligations under this Security Agreement or any interest herein, without
the prior written consent of the Collateral Agent.

     8.4. Survival of Representations. All representations and warranties of the Grantor
contained in this Security Agreement shall survive the execution and delivery of this Security
Agreement.

     8.5. Taxes and Expenses. Any stamp, documentary or (to the extent provided in the
Credit Agreement) withholding taxes payable or ruled payable by Federal or State authority in
respect of this Security Agreement shall be paid by the Grantor, together with interest and
penalties, if any. The Grantor shall reimburse the Collateral Agent for any and all reasonable
out-of-pocket expenses and internal charges (including reasonable attorneys’, auditors’ and
accountants’ fees and reasonable time charges of attorneys, paralegals, auditors and accountants
who may be employees of the Collateral Agent) paid or incurred by the Collateral Agent in
connection with the preparation, execution, delivery, administration, collection and enforcement of
this Security Agreement and in the audit, analysis, administration, collection, preservation or
sale of the Collateral (including the expenses and charges associated with any periodic or special
audit of the Collateral). Any and all costs and expenses incurred by the Grantor in the performance
of actions required pursuant to the terms hereof shall be borne solely by the Grantor.

     8.6. Headings. The title of and section headings in this Security Agreement are for
convenience of reference only, and shall not govern the interpretation of any of the terms and
provisions of this Security Agreement.

     8.7. CHOICE OF LAW. SUBMISSION TO JURISDICTION. THIS SECURITY AGREEMENT SHALL
BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK (INCLUDING
SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAWS OF THE STATE OF NEW YORK, BUT OTHERWISE WITHOUT
REGARD TO CONFLICTS OF LAW PRINCIPLES). EACH OF THE GRANTOR AND THE COLLATERAL AGENT (I)
IRREVOCABLY SUBMITS TO THE JURISDICTION OF ANY NEW YORK STATE COURT OR FEDERAL COURT

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SITTING IN NEW YORK CITY IN ANY ACTION ARISING OUT OF ANY LOAN DOCUMENT, (II) AGREES THAT ALL
CLAIMS IN SUCH ACTION MAY BE DECIDED IN SUCH COURT, (III) WAIVES, TO THE FULLEST EXTENT IT MAY
EFFECTIVELY DO SO, THE DEFENSE OF AN INCONVENIENT FORUM AND (IV) CONSENTS TO THE SERVICE OF
PROCESS BY MAIL. A FINAL JUDGMENT IN ANY SUCH ACTION SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN
OTHER JURISDICTIONS. NOTHING HEREIN SHALL AFFECT THE RIGHT OF ANY PARTY TO SERVE LEGAL PROCESS IN
ANY MANNER PERMITTED BY LAW OR AFFECT ITS RIGHT TO BRING ANY ACTION IN ANY OTHER COURT. THE
GRANTOR AGREES THAT THE COLLATERAL AGENT SHALL HAVE THE RIGHT TO PROCEED AGAINST THE GRANTOR OR
ITS PROPERTY IN A COURT IN ANY LOCATION TO ENABLE THE LENDERS TO REALIZE ON THE COLLATERAL OR ANY
OTHER SECURITY FOR THE OBLIGATIONS OR TO ENFORCE A JUDGMENT OR OTHER COURT ORDER ENTERED IN FAVOR
OF THE COLLATERAL AGENT OR THE LENDERS. THE GRANTOR AGREES THAT IT WILL NOT ASSERT ANY PERMISSIVE
COUNTERCLAIMS IN ANY PROCEEDING BROUGHT BY THE COLLATERAL AGENT TO REALIZE ON THE COLLATERAL OR
ANY OTHER SECURITY FOR THE OBLIGATIONS, OR TO ENFORCE A JUDGMENT OR OTHER COURT ORDER IN FAVOR OF
THE COLLATERAL AGENT. THE GRANTOR WAIVES ANY OBJECTION THAT IT MAY HAVE TO THE LOCATION OF THE
COURT IN WHICH THE COLLATERAL AGENT MAY COMMENCE A PROCEEDING DESCRIBED IN THIS SECTION.

     8.8. Indemnity. The Grantor hereby agrees to indemnify the Collateral Agent and its
successors, assigns, agents and employees (each, an “indemnified party”), from and against any and
all liabilities, damages, penalties, suits, costs, and expenses of any kind and nature (including,
without limitation, all expenses of litigation or preparation therefor whether or not the
Collateral Agent is a party thereto) imposed on, incurred by or asserted against the Collateral
Agent, or its successors, assigns, agents and employees, in any way relating to or arising out of
this Security Agreement, or the ownership, delivery, possession, or other disposition of any
Collateral except to the extent that such liabilities, damages, penalties, costs or expenses were
caused by the gross negligence or willful misconduct of such indemnified party.

     8.9. Addresses for Notices. All notices and other communications provided for
hereunder shall be in writing (including facsimile communication) and mailed, telegraphed,
telecopied, telexed, cabled or delivered, if to the Grantor, at its address at One Energy Plaza,
Jackson, Michigan 49201, Attention: James E. Brunner Attention: Laura L. Mountcastle, and if to
the Collateral Agent, at its address specified in the Credit Agreement, or, as to either party, at
such other address as shall be designated by such party in a written notice to the other party.
All such notices and other communications shall, when mailed or telecopied, be effective five days
after when deposited in the mails, or when telecopied.

     8.10. Continuing Security Interest; Assignments under Credit Agreement. This Security
Agreement shall create a continuing security interest in the Collateral and shall (i) remain
in full
force and effect until the earlier to occur of (x) the payment in full of all Secured
Obligations
now or hereafter existing under the Credit Agreement, whether for principal, interest, fees,
expenses or otherwise, and all other amounts payable under this Security Agreement and the
termination of all of the Commitments or (y) the release by the Collateral Agent of its
security

10

 

interest in all of the Collateral, (ii) be binding upon the Grantor, its successors and assigns,
and (iii) inure, together with the rights and remedies of the Collateral Agent hereunder, to the
benefit of, and be enforceable by, the Collateral Agent and its successors, transferees and
assigns. Without limiting the generality of the foregoing clause (iii) and Section 8.3 above, any
Lender may assign or otherwise transfer all or any portion of its rights and obligations under the
Credit Agreement (including, without limitation, all or any portion of its Commitment, the Loans
owing to it and any Promissory Note held by it) to any other Person, and such other Person shall
thereupon become vested with all the benefits in respect thereof granted to such Lender herein or
otherwise, subject, however to the provisions of Sections 10.03 and 11.07 of the Credit Agreement.
Upon the earlier to occur of (A) the payment in full of all Secured Obligations now or hereafter
existing under the Credit Agreement, whether for principal, interest, fees, expenses or otherwise,
and all other amounts payable under this Security Agreement and the termination of all of the
Commitments or (B) the release by the Collateral Agent of its security interest in all of the
Collateral, the security interest granted hereby shall terminate and all rights to the Collateral
shall revert to the Grantor. In addition, the Collateral Agent shall release any Collateral as
permitted or required pursuant to Section 10.03 of the Credit Agreement. Upon any such
termination, the Collateral Agent will, at the Grantor’s expense, return to the Grantor such of
the Collateral as shall not have been sold or otherwise applied pursuant to the terms hereof and
execute and deliver to the Grantor such documents as the Grantor shall reasonably request to
evidence such termination.

     8.11. WAIVER OF JURY TRIAL. THE GRANTOR AND THE COLLATERAL AGENT EACH HEREBY
IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT
OF OR RELATING TO THIS SECURITY AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR ANY OTHER INSTRUMENT OR
DOCUMENT DELIVERED HEREUNDER OR THEREUNDER.

     8.12. No Novation. It is the intention of the parties hereto that this Security
Agreement be merely an amendment and restatement of the Existing Security Agreement and not
constitute a novation of the grants of security or the obligations thereunder.

[Remainder of page intentionally blank.]

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     IN WITNESS WHEREOF, the Grantor and the Collateral Agent have executed this Security
Agreement as of the date first above written.

	 	 	 	 	 
	 	CMS ENERGY CORPORATION

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

	 	 	 	 	 
	AGREED AND ACKNOWLEDGED: 
 
CITICORP USA, INC., as Collateral Agent

 	 	 
	By:  	 	 	 
	 	Title: 	 	 
	 	 	 	 

Signature Page to

Fourth Amended and Restated Pledge Agreement

(CMS Energy)

 

 

     IN WITNESS WHEREOF, the Grantor and the Collateral Agent have executed this Security
Agreement as of the date first above written.

	 	 	 	 	 
	 	CMS ENERGY CORPORATION

 	 
	 	By:  	 	 
	 	 	Title: 	 

	 	 	 	 	 
	AGREED AND ACKNOWLEDGED: 

CITICORP USA, INC., as Collateral Agent

 	 	 
	By:  	/s/ AMIT VASANI
 	 	 
	 	AMIT VASANI 	 	 
	 	Title:  	Vice President 	 	 

Signature Page to

Fourth Amended and Restated Pledge Agreement

(CMS Energy)

 

 

EXHIBIT “A”

List of Pledged Securities and Pledged Instruments1 

(See Section 3.4 of Security Agreement)

STOCK OWNED BY CMS ENERGY CORPORATION:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Issuer	 	Certificate Number	 	Number of Shares	 	Percentage Ownership Interest
	Consumers Energy
Company
	 	 	04	 	 	 	84,108,789	 	 	 	100	%

INSTRUMENTS OWNED BY CMS ENERGY CORPORATION

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Obligor	 	Amount	 	 	Interest Rate	 	 	Maturity	 
	None
	 	 	 	 	 	 	 	 	 	 	 	 

GENERAL INTANGIBLES AND OTHER SECURITIES OR OTHER INVESTMENT

PROPERTY (CERTIFICATED AND UNCERTIFICATED)

OWNED BY CMS ENERGY CORPORATION:

	 	 	 	 	 	 	 	 	 
	Issuer	 	Description of Collateral	 	 	Percentage Ownership Interest	 
	None
	 	 	 	 	 	 	 	 

 

			
	1	 	CMS to confirm.

A-1

 

EXHIBIT “B”

(See Section 3.1 of Security Agreement)

OFFICES IN WHICH FINANCING STATEMENTS HAVE BEEN FILED

Secretary of State of Michigan

B-1

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