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Document Preview Agreement and Plan of Restructuring and Merger |
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Title: |
Agreement and Plan of Restructuring and Merger |
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Entities: |
Chase Securities Inc.; Citibank, NA; HVOLT Enterprises, Inc.; J.P. Morgan Securities Inc.; Protection One, Inc.; Public Service Company of New Mexico; Salomon Smith Barney Inc.; Smith Barney Inc.; Western Resources, Inc.; LeBoeuf, Lamb, Greene & MacRae LLP |
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Date: |
2000 |
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Size: |
Preview shows 27KB of 266KB total |
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Price: |
$55 |
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ID: |
#263570 |
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Start of Preview |
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AGREEMENT AND PLAN OF RESTRUCTURING AND MERGER
Among
WESTERN RESOURCES, INC.
HVOLT ENTERPRISES, INC.
PUBLIC SERVICE COMPANY OF NEW MEXICO
HVK, INC.
and
HVNM, INC.
Dated as of November 8, 2000
{PAGE}
Table of Contents
Page
Article I. The Transaction.....................................................2
1.1. The Split-Off..................................................2
1.2. The Merger.....................................................2
1.3. The Second Merger..............................................2
1.4. Effective Time.................................................2
Article II. The Surviving Corporation..........................................3
2.1. The Articles of Incorporation..................................3
2.2. The By-Laws....................................................3
2.3. Directors......................................................3
2.4. Officers.......................................................3
Article III. Effect of the Transaction on Capital Stock; Exchange of
Certificates.....................................................4
3.1. Apportionment of Company Common Stock..........................4
3.2. Effect of the Transaction on Capital Stock.....................4
3.3. Exchange of Certificates Exchanged in the Split-Off............9
3.4. Exchange of Certificates in the Merger........................10
3.5. Dissenters' Rights............................................13
3.6. Adjustments to Prevent Dilution...............................14
3.7. Restructuring of the Mergers..................................14
3.8. Manzano Guaranty; Etc.........................................15
Article IV. The Closing15
4.1. Closing.......................................................15
Article V. Representations and Warranties.....................................16
5.1. Representations and Warranties of the Company.................16
5.2. Representations and Warranties of Parent, PNM, Merger Sub-1
and Merger Sub-2............................................28
Article VI. Conduct of Business Pending the Transactions......................39
6.1. Covenants of the Company......................................39
6.2. Covenants of Parent, Manzano, PNM, Merger Sub-1 and Merger
Sub 2.......................................................42
6.3. Necessary Action..............................................45
Article VII. Additional Agreements............................................45
7.1. Access........................................................45
7.2. Acquisition Proposals.........................................46
7.3. Information Supplied..........................................47
7.4. Shareholders Meetings.........................................48
7.5. Filings; Other Actions; Notification..........................48
7.6. Affiliates....................................................50
7.7. Stock Exchange Listing and De-listing.........................50
7.8. Publicity.....................................................50
7.9. Benefits and Other Employee Matters...........................50
7.10. Board of Directors; Corporate Headquarters and Community
Involvement.................................................52
7.11. Dividends.....................................................53
7.12. Indemnification; Directors' and Officers' Insurance...........53
7.13. Expenses......................................................55
7.14. Takeover Statute..............................................55
7.15. Manzano Vote..................................................55
7.16. Agreements Relating to the Split-Off..........................55
7.17. Redemption of Preferred Shares................................55
7.18. Conveyance Taxes..............................................56
7.19. Transition Steering Team......................................56
7.20. Termination of Tax Sharing Agreements.........................56
7.21. Tax Disaffiliation Agreement..................................57
7.22. Shared Services Agreement.....................................57
7.23. Interim Reporting.............................................57
7.24. Possible Exchange.............................................57
Article VIII. Conditions.....................................................58
8.1. Conditions to Each Party's Obligation to Effect the
Transaction.................................................58
8.2. Conditions to Obligations of Parent, Merger Sub-1 and Merger
Sub-2.......................................................60
8.3. Conditions to Obligation of the Company.......................61
Article IX. Termination63
9.1. Termination by Mutual Consent.................................63
9.2. Termination by Either Parent or the Company...................63
9.3. Termination by the Company....................................63
9.4. Termination by Parent.........................................64
9.5. Effect of Termination and Abandonment.........................64
Article X. Miscellaneous and General..........................................66
10.1. Survival......................................................66
10.2. Modification or Amendment.....................................66
10.3. Waiver of Conditions..........................................66
10.4. Counterparts..................................................67
10.5. GOVERNING LAW AND VENUE.......................................67
10.6. Notices.......................................................67
10.7. Entire Agreement; NO OTHER REPRESENTATIONS....................68
10.8. No Third-Party Beneficiaries..................................69
10.9. Obligations of Parent and of the Company......................69
10.10. Severability..................................................69
10.11. Interpretation................................................69
10.12. Assignment....................................................69
EXHIBIT A - Split-Off Agreements
EXHIBIT B - Convertible Preference Certificate of Designation
EXHIBIT C - Parent Convertible Certificate of Designation
EXHIBIT D - Affiliates Letter
EXHIBIT E - Form of Stockholder Agreement
EXHIBIT F - Form of Registration Rights Agreement
{PAGE}
Indexed of Defined Terms
Page
{PAGE}
1935 Act.....................................................................16
Acquisition Proposal.........................................................46
Additional Cash...............................................................5
Adjustment Calculation........................................................7
Adjustment Shares.............................................................7
Affiliates Letter............................................................50
Aggregate Share Number........................................................6
Agreement.....................................................................1
Allocation and Separation Agreement...........................................1
Audit Date...................................................................20
Bankruptcy and Equity Exception..............................................18
Base Shares...................................................................6
Business Day.................................................................15
By-Laws.......................................................................3
Certificate...................................................................8
Certificate of Merger.........................................................2
Charter.......................................................................3
Chase........................................................................27
Closing......................................................................15
Closing Consideration.........................................................8
Closing Date.................................................................15
Code..........................................................................2
Company.......................................................................1
Company Common Stock..........................................................4
Company Contracts............................................................19
Company Disclosure Letter....................................................16
Company Dissenting Holder....................................................13
Company ERISA Affiliate......................................................22
Company Intellectual Property Rights.........................................26
Company Material Adverse Effect..............................................17
Company Pension Plan.........................................................22
Company Reports..............................................................19
Company Required Statutory Approvals.........................................18
Company Requisite Vote.......................................................27
Compensation and Benefit Plans...............................................21
Confidentiality Agreements...................................................68
Contracts....................................................................19
Conversion...................................................................57
Convertible Preference Shares.................................................5
Costs........................................................................53
Current Premium..............................................................54
Cut Off Date..................................................................4
D&O Insurance................................................................54
Effective Time................................................................3
Employees....................................................................21
Environmental Law............................................................24
ERISA........................................................................21
Exchange.....................................................................57
Exchange Act.................................................................17
Exchange Agent...............................................................10
Exchange Agreement............................................................1
Exchange Fund................................................................10
Exchange Ratio................................................................8
Excluded Share................................................................6
Excluded Shares...............................................................6
FERC.........................................................................18
Final Order..................................................................59
First Redemption Date........................................................58
GAAP.........................................................................17
Governmental Entity..........................................................18
Hazardous Substance..........................................................24
HSR Act......................................................................18
Indemnified Parties..........................................................53
IRS..........................................................................22
JP Morgan....................................................................38
KGCC..........................................................................2
knowledge....................................................................17
Laws.........................................................................23
Manzano.......................................................................1
Manzano Certificate...........................................................9
Manzano Common Stock..........................................................8
Manzano Dissenting Holder....................................................13
Manzano Exchange..............................................................1
Manzano Excluded Share........................................................8
Manzano Excluded Shares.......................................................8
Manzano Merger Consideration..................................................8
Manzano Transition Date.......................................................1
Merger........................................................................1
Merger Consideration..........................................................8
Merger Portion................................................................4
Merger Sub-1..................................................................1
Merger Sub-2..................................................................1
Mergers.......................................................................1
Neutral Auditor...............................................................8
NMBCA.........................................................................2
NMPRC.........................................................................3
Non-Union Employees..........................................................51
NYSE.........................................................................18
Order........................................................................59
Parent........................................................................1
Parent Common Stock...........................................................8
Parent Compensation and Benefit Plans........................................33
Parent Contracts.............................................................31
Parent Convertible Debt......................................................57
Parent Convertible Shares.....................................................8
Parent Disclosure Letter.....................................................28
Parent Employees.............................................................33
Parent ERISA Affiliate.......................................................33
Parent Material Adverse Effect...............................................29
Parent Pension Plan..........................................................33
Parent Required Statutory Approvals..........................................30
Parent Requisite Vote........................................................37
Parent Stock Plans...........................................................29
Parent Voting Debt...........................................................30
PBGC.........................................................................22
person.......................................................................11
PNM...........................................................................1
PNM Audit Date...............................................................32
PNM Common Stock.............................................................29
PNM Exchange.................................................................14
PNM Exchange Agreement.......................................................14
PNM Intellectual Property Rights.............................................37
PNM Preferred Shares.........................................................29
PNM Reports..................................................................31
Power Act....................................................................16
Preferred Shares.............................................................17
Prospectus/Proxy Statement...................................................47
Representatives..............................................................45
S-4 Registration Statement...................................................47
Salomon......................................................................27
SEC...........................................................................5
Second Merger.................................................................1
Securities Act...............................................................18
Significant Subsidiary.......................................................17
Split-Off.....................................................................1
Split-Off Agreements..........................................................1
Split-Off Consideration.......................................................6
Split-Off Exchange Ratio......................................................6
Split-Off Portion.............................................................4
Stock Award..................................................................50
Stock Plans..................................................................17
Subsidiary...................................................................16
Superior Proposal............................................................47
Surviving Corporation.........................................................2
Takeover Statute.............................................................23
Tax..........................................................................25
Tax Disaffiliation Agreement.................................................42
Taxable......................................................................25
Taxes........................................................................25
Taxing.......................................................................25
Termination Date.............................................................63
Trading Day...................................................................5
Transaction...................................................................1
TransactionTaxes.............................................................56
Transition Steering Team.....................................................56
Utility Subsidiaries.........................................................16
Voting Debt..................................................................18
Westar........................................................................1
Westar Common Stock...........................................................4
Westar Subsidiaries...........................................................1
{PAGE}
AGREEMENT AND PLAN OF RESTRUCTURING AND MERGER
AGREEMENT AND PLAN OF RESTRUCTURING AND MERGER (hereinafter called this
"Agreement"), dated as of November 8, 2000, among Western Resources, Inc., a
Kansas corporation (the "Company"), 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-1") and HVNM, Inc., a New Mexico corporation and a wholly
owned subsidiary of Parent ("Merger Sub-2").
RECITALS
WHEREAS, PNM and Manzano Corporation, a New Mexico corporation ("Manzano"),
have entered into an Agreement and Plan of Share Exchange, dated as of April 17,
2000 (the "Exchange Agreement"), which provides for the mandatory share exchange
by the holders of the outstanding common stock of PNM for shares of the common
stock of Manzano at an exchange ratio of one share of Manzano common stock for
each share of PNM common stock, whereby PNM will become a wholly owned
subsidiary of Manzano (the "Manzano Exchange");
WHEREAS, upon consummation of the Exchange, Manzano will execute a
counterpart hereof as set forth below with the effect set forth herein (the date
on which PNM becomes a Subsidiary of Manzano and Manzano executes a counterpart
of this Agreement being referred to as the "Manzano Transition Date");
WHEREAS, the Company, Parent, PNM, Merger Sub-1 and Merger Sub-2 have
agreed to enter into an integrated transaction (the "Transaction") pursuant to
which, first (x) the Company shall deliver to its shareholders its then entire
ownership interest in Westar Industries, Inc., a Kansas corporation and a
subsidiary of the Company ("Westar", together with the subsidiaries of Westar at
the time of the Split-Off, the "Westar Subsidiaries") (such transaction being
referred to as the "Split-Off"), in exchange for a portion of their shares of
the Company Common Stock on the terms and conditions contained herein and in the
Asset Allocation and Separation Agreement (the "Allocation and Separation
Agreement") and the other agreements and term sheets attached thereto (together
with the Allocation and Separation Agreement, the "Split-Off Agreements")
between the Company and Westar in the forms attached hereto as Exhibit A, and
then (y) Merger Sub-1 will merge with and into the Company, whereby the Company
will become a wholly owned subsidiary of Parent (the "Merger"), and Merger Sub-2
will merge with and into Manzano, whereby Manzano and PNM will become wholly
owned subsidiaries of Parent (the "Second Merger" and, together with the Merger,
the "Mergers"), pursuant to the terms and conditions set forth in this
Agreement;
WHEREAS, the respective Boards of Directors of the Company, Parent, PNM,
Merger Sub-1 and Merger Sub-2 (i) have determined that the Transaction and other
transactions contemplated hereby are fair to, advisable and in the best
interests of the Company, Parent, PNM, Merger Sub-1 and Merger Sub-2 and their
shareholders, respectively, and (ii) have approved this Agreement and the
transactions contemplated hereby; and
WHEREAS, for federal income Tax (as defined below) purposes, it is intended
that (i) the Split-Off will be treated as a taxable exchange of the Split-Off
Portion (as defined below) of the Company Common Stock for Westar Common Stock,
and (ii) the Mergers taken together will be treated as a transaction described
in Section 351 of the Internal Revenue Code of 1986, as amended (the "Code").
NOW, THEREFORE, in consideration of the premises, and of the
representations, warranties, covenants and agreements contained herein, the
parties hereto agree as follows:
Article I
The Transaction
1.1. The Split-Off.
The Company has or will enter into the Allocation and Separation Agreement
and each other Split-Off Agreement to which it is a party, and, provided that
all conditions precedent to the Split-Off have been satisfied, immediately prior
to the Merger, the Company shall effect, and cause Westar to effect, the
Split-Off.
1.2. The Merger.
Upon the terms and subject to the conditions set forth in this Agreement,
at the Effective Time, Merger Sub-1 shall be merged with and into the Company
and the separate corporate existence of Merger Sub-1 shall thereupon cease. The
Company shall be the surviving corporation in the Merger (sometimes hereinafter
referred to as the "Surviving Corporation"), and the separate corporate
existence of the Company with all its rights, privileges, immunities, powers and
franchises shall continue unaffected by the Merger, except as set forth in
Article III. The Merger shall have the effects specified in the Kansas General
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