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Stock Purchase Option Agreement

 

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Title:

Stock Purchase Option Agreement

Entities:

HVOLT Enterprises, Inc.; ONEOK, Inc.; Public Service Company of New Mexico; Westar Industries Inc; Western Resources, Inc.; LeBoeuf, Lamb, Greene & MacRae LLP

Date:

2001

Size:

Preview shows 11KB of 106KB total

Price:

$54

ID:

#1575172

 

 

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Start of Preview


                                    Form of


STOCK PURCHASE OPTION AGREEMENT

for

WESTAR GENERATING, INC.

between

WESTERN RESOURCES, Inc.,

and

WESTAR INDUSTRIES, inc.

Dated as of

___________, 200_


-------------------------------


TABLE OF CONTENTS



Page
----

ARTICLE I DEFINITIONS................................................................ 2
Section 1.1. Definitions...................................................... 2

ARTICLE II OPTION TO PURCHASE INTERESTS.............................................. 6
Section 2.1. Option to Purchase the Company Stock............................. 6
Section 2.2. Exercise of Option and Closing................................... 6
Section 2.3. Option Period.................................................... 7
Section 2.4. Seller Support Obligations....................................... 7
Section 2.5. Net Book Value Adjustment to Purchase Price...................... 8
Section 2.6. Adjustment to Purchase Price - Section 338(h)(10) Election....... 9

ARTICLE III REPRESENTATIONS AND WARRANTIES OF SELLER RELATING TO
SELLER AND THE COMPANY........................................... 10
Section 3.1. Organization, Standing and Power................................. 10
Section 3.2. Capitalization of the Company.................................... 10
Section 3.3. Authority Relative to this Agreement............................. 10
Section 3.4. No Conflict or Violation; Consents and Approvals................. 11
Section 3.5. Financial Statements............................................. 11
Section 3.6. Absence of Certain Changes....................................... 11
Section 3.7. Compliance with Law.............................................. 12
Section 3.8. Permits.......................................................... 12
Section 3.9. Litigation....................................................... 12
Section 3.10. Taxes............................................................ 12
Section 3.11. Environmental Matters............................................ 13
Section 3.12. Brokers and Finders.............................................. 13

ARTICLE IV REPRESENTATIONS AND WARRANTIES OF THE BUYER............................... 13
Section 4.1. Organization Standing and Power.................................. 13
Section 4.2. Authority Relative to this Agreement............................. 13
Section 4.3. No Conflict or Violation; Consents and Approvals................. 14
Section 4.4. Legal Proceedings................................................ 14
Section 4.5. Brokers and Finders.............................................. 14

ARTICLE V TAX MATTERS................................................................ 14
Section 5.1. Tax Matters...................................................... 14

ARTICLE VI COVENANTS................................................................. 18
Section 6.1. Conduct of the Business Pending the Closing...................... 18
Section 6.2. Consents and Approvals........................................... 19
Section 6.3. Filings.......................................................... 20
Section 6.4. Covenant to Satisfy Conditions................................... 20
Section 6.5. Further Assurances............................................... 20
Section 6.6. Maintenance of Stock Free of Encumbrances........................ 20



ii






Section 6.7. Maintenance of Project........................................... 20
Section 6.8. Risk of Loss..................................................... 21
Section 6.9. 1935 Act and 1940 Act............................................ 21
Section 6.10. Limitation....................................................... 21

ARTICLE VII CONDITIONS TO EACH PARTY'S OBLIGATIONS................................... 21
Section 7.1. Regulatory Approvals............................................. 21
Section 7.2. HSR Act.......................................................... 21
Section 7.3. 1940 Act......................................................... 21

ARTICLE VIII CONDITIONS TO THE SELLER'S OBLIGATIONS.................................. 22
Section 8.1. Representations and Warranties of the Buyer True................. 22
Section 8.2. Performance...................................................... 22
Section 8.3. Certificates..................................................... 22
Section 8.4. No Injunction or Proceeding...................................... 22
Section 8.5. Seller Support Obligations....................................... 22
Section 8.6. Opinion of Counsel............................................... 22

ARTICLE IX CONDITIONS TO THE BUYER'S OBLIGATIONS..................................... 22
Section 9.1. Representations and Warranties of the Seller True................ 22
Section 9.2. Performance by the Seller........................................ 23
Section 9.3. Certificates..................................................... 23
Section 9.4. No Injunction or Proceeding...................................... 23
Section 9.5. No Material Adverse Effect....................................... 23
Section 9.6. Power Purchase Agreement......................................... 23
Section 9.7. Third Party Consents............................................. 23

ARTICLE X TERMINATION AND ABANDONMENT; INDEMNIFICATION............................... 23
Section 10.1. Termination...................................................... 23
Section 10.2. Procedure and Effect of Termination.............................. 24
Section 10.3. Survival of Representations and Warranties....................... 24
Section 10.4. Indemnification.................................................. 24

ARTICLE XI ADDITIONAL AGREEMENTS..................................................... 26
Section 11.1. No EWG........................................................... 26

ARTICLE XII MISCELLANEOUS............................................................ 26
Section 12.1. Waivers and Amendments........................................... 26
Section 12.2. Entire Agreement; Assignment..................................... 26
Section 12.3. Validity......................................................... 26
Section 12.4. Notices.......................................................... 26
Section 12.5. Governing Law.................................................... 28
Section 12.6. Publicity........................................................ 28
Section 12.7. Jurisdiction; Forum.............................................. 28
Section 12.8. Descriptive Headings............................................. 28
Section 12.9. Counterparts..................................................... 28
Section 12.10. Expenses......................................................... 28

iii





Section 12.11. Parties in Interest.............................................. 28
Section 12.12. Interpretation................................................... 29


SCHEDULES
Schedule 2.5(c) Reference Statement of Net Book Value
Schedule 3.9 Litigation

EXHIBITS
Exhibit A Power Purchase Agreement


iv


STOCK PURCHASE OPTION AGREEMENT

This STOCK PURCHASE OPTION AGREEMENT (this "Agreement") dated as of
this _______ day of _______, 200_ is made by and between Western Resources,
Inc., a Kansas corporation (the "Seller"), and Westar Industries, Inc., a Kansas
corporation (the "Buyer").

RECITALS:

WHEREAS, Seller, Public Service Company of New Mexico, a New Mexico
corporation ("PNM"), HVOLT Enterprises, Inc., a Delaware corporation ("Parent"),
HVK, Inc., a Kansas corporation and a wholly-owned subsidiary of Parent ("Merger
Sub") and HVNM, Inc. have entered into an Agreement and Plan of Restructuring
Merger dated as of November 8, 2000 (as heretofore amended, the "Merger
Agreement");

WHEREAS, Seller and Buyer have entered into an Asset Allocation and
Separation Agreement dated as of November 8, 2000 (the "Split Off Agreement"),
providing for the split-off by Seller to its shareholders of all of the common
stock of Buyer held by Seller (the "Split-Off ");

WHEREAS, the Seller owns all of the shares of capital stock of Westar
Generating, Inc., a Kansas corporation (the "Company"); and

WHEREAS, the Company is a party to that certain Agreement for the
Construction, Ownership and Operation of State Line Combined Cycle Generating
Facility (the "Project Agreement") dated as of July 26, 1999 by and among The
Empire District Electric Company, as an Owner, the Company, as an Owner and The

 

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