Document:

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                                                                    Exhibit 10.8

                         FORM OF STOCKHOLDER AGREEMENT

                                    between

                           Westar Industries, Inc.,
                             a Kansas corporation

                                      and

                           HVOLT Enterprises, Inc.,
                            a Delaware corporation

                     Dated as of [                ], 200_
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                               TABLE OF CONTENTS

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<S>                                                                         <C>
ARTICLE I  Certain Definitions................................................  1

ARTICLE II Representations and Warranties.....................................  6

  Section 2.1     Representations and Warranties of the Company...............  6
  Section 2.2     Representations and Warranties of the Stockholder...........  6

ARTICLE III Stockholder and Company Conduct...................................  7

  Section 3.1     Standstill Provision........................................  7
  Section 3.2     Required Reduction of Ownership Percentage..................  8
  Section 3.3     Top-Up Rights...............................................  8
  Section 3.4     Restrictions on Transfer....................................  8
  Section 3.5     Buy-Back Options............................................ 10
  Section 3.6     Charter and By-laws......................................... 10
  Section 3.7     Rights Agreement............................................ 10
  Section 3.8     Taxes Upon Conversion or Exchange........................... 11
  Section 3.9     Prohibition on Senior Securities............................ 11
  Section 3.10    Section 203 of the DGCL..................................... 11

ARTICLE IV Board Representation and Voting.................................... 11

  Section 4.1     Directors Designated by the Stockholder..................... 11
  Section 4.2     Resignation of Stockholder Nominees......................... 13
  Section 4.3     Voting...................................................... 13

ARTICLE V Effectiveness and Termination....................................... 15

  Section 5.1     Effectiveness............................................... 15
  Section 5.2     Termination................................................. 15

ARTICLE VI Miscellaneous...................................................... 16

  Section 6.1     Compliance With Law......................................... 16
  Section 6.2     Regulatory Matters.......................................... 16
  Section 6.3     Injunctive Relief........................................... 16
  Section 6.4     Successors and Assigns...................................... 16
  Section 6.5     Amendments; Waiver.......................................... 16
  Section 6.6     Notices..................................................... 17
  Section 6.7     APPLICABLE LAW.............................................. 18
  Section 6.8     Headings.................................................... 18
  Section 6.9     Integration................................................. 18
  Section 6.10    Severability................................................ 18
  Section 6.11    Consent to Jurisdiction..................................... 18
  Section 6.12    Counterparts................................................ 18
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                                       i
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     This STOCKHOLDER AGREEMENT dated as of [         ], 200__ (this
"Agreement") is between HVOLT Enterprises, Inc. a Delaware corporation (the
"Company"), and Westar Industries, Inc., a Kansas corporation (the
"Stockholder").

                                  WITNESSETH:

     WHEREAS, the Company, Western Resources, Inc., a Kansas corporation
("WRI"), Public Service Company of New Mexico, a New Mexico corporation ("PNM"),
HVK, Inc.,  a Kansas corporation and a wholly owned subsidiary of the Company
and HVNM, Inc., a New Mexico corporation and wholly owned subsidiary of the
Company have entered into an Agreement, dated as of November 8, 2000, (the
"Merger Agreement"), pursuant to which WRI will become a wholly owned subsidiary
of the Company (the "Merger") and pursuant to which the Stockholder has acquired
Beneficial Ownership (as defined in Article I hereof) of 55,000,000 shares of
common stock of the Company, par value $.001 per share (the "Common Stock") and
up to shares of Series ____ Convertible Preferred Stock of the Company, par
value $.001 per share the "Convertible Preferred Stock");

     WHEREAS, prior to the consummation of the Merger (the "Closing"), the
Company and the Stockholder desire to establish in this Agreement certain terms
and conditions concerning the acquisition and disposition of securities of the
Company by the Stockholder, and related provisions concerning the Stockholder's
relationship with and investment in the Company; and

     WHEREAS, concurrently with the execution and delivery hereof, the Company
and the Stockholder are entering into a Registration Rights Agreement, dated as
of the date hereof (the "Registration Rights Agreement"):

     NOW, THEREFORE, in consideration of the mutual covenants and agreements set
forth herein and for other good and valuable consideration, receipt and
sufficiency of which is hereby acknowledged, the parties hereto hereby agree as
follows:

                                   Article I
                              Certain Definitions

     In addition to other terms defined elsewhere in this Agreement, as used in
this Agreement, the following terms shall have the meanings ascribed to them
below:

     "Affiliate" shall mean, with respect to any person, any other person that
directly or indirectly through one or more intermediaries controls or is
controlled by or is under common control with such person.  For the purposes of
this definition, "control," when used with respect to any particular person,
means the power to direct the management and policies of such person, directly
or indirectly, whether through the ownership of voting securities, by contract
or otherwise; and the terms "controlling" and "controlled" have meanings
correlative to the foregoing.

     "Agreement" shall have the meaning assigned to such term in the
introduction hereto.
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     "Beneficial Owner" (and, with correlative meanings, "Beneficially Own" and
"Beneficial Ownership") of any interest means a Person who, together with his or
its Affiliates, is or may be deemed a beneficial owner of such interest for
purposes of Rule 13d-3 or 13d-5 under the Exchange Act, or who, together with
his or its Affiliates, has the right to become such a beneficial owner of such
interest (whether such right is exercisable immediately or only after the
passage of time) pursuant to any agreement, arrangement or understanding, or
upon the exercise, conversion or exchange of any warrant, right or other
instrument, or otherwise.

     "Board" shall mean the Board of Directors of the Company in office at the
applicable time, as elected in accordance with the Charter and By-laws of the
Company and with the provisions of this Agreement.

     "Buy-Back Offer" shall have the meaning assigned to such term in Section
3.7(a) hereof.

     "By-laws" shall mean the by-laws of the Company, in the form specified in
the Merger Agreement, as they may be amended from time to time.

     "Change in Control" shall mean the occurrence of any one of the following
events:

          (1)  any Person (other than the Stockholder Group) becoming the
     Beneficial Owner, directly or indirectly, of Voting Securities, pursuant to
     the consummation of a merger, consolidation, sale of all or substantially
     all of the Company's assets, share exchange or similar form of corporate
     transaction involving the Company or any of its subsidiaries that requires
     the approval of the Company's stockholders, whether for such transaction or
     the issuance of securities in such transaction, so as to cause such
     Person's Voting Ownership Percentage to exceed the Control Percentage (as
     defined below); provided, however, that the event described in this
     paragraph (1) shall not be deemed to be a Change in Control if it occurs as
     the result of any of the following acquisitions: (A) by any employee
     benefit plan sponsored or maintained by the Company or any Affiliate, or
     (B) by any underwriter temporarily holding securities pursuant to an
     offering of such securities;

          (2)  the consummation of a merger, consolidation, sale of all or
     substantially all of the Company's assets, share exchange or similar form
     of corporate transaction involving the Company or any of its subsidiaries
     that requires the approval of the Company's stockholders, whether for such
     transaction or the issuance of securities in such transaction, unless
     immediately following such transaction more than 50% of the total voting
     power of (x) the corporation resulting from such transaction, or (y) if
     applicable, the ultimate parent corporation that directly or indirectly has
     Beneficial Ownership of 100% of the voting securities eligible to elect
     directors of such resulting corporation, is represented by Voting
     Securities that were outstanding immediately prior to such transaction (or,
     if applicable, shares into which such Voting Securities were converted
     pursuant to such transaction), and such voting power among the holders of
     such Voting Securities that were outstanding immediately prior to such
     transaction is in substantially the same proportion as the voting power of
     such Voting Securities among the holders thereof immediately prior to such
     transaction; or

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          (3)  the consummation of a plan of complete liquidation or dissolution
     of the Company.

     "Charter" shall mean the Certificate of Incorporation of the Company, in
the form specified in the Merger Agreement, as it may be amended from time to
time.

     "Clearly Credible Tender Offer" shall mean any bona fide offer, tender
offer or exchange offer that is subject to Section 14 of the Exchange Act, other
than any such offer with respect to which (i) the Board of Directors of the
Company is advised in writing by outside counsel of recognized standing that the
consummation of such offer would be in violation of applicable law, or (ii) the
party making such offer has not obtained as of the date of the commencement of
such offer definitive commitment letters from reputable financial institutions
in customary form with respect to the financing of such offer.

     "Closing" shall have the meaning assigned in the second recital of this
Agreement.

     "Commission" shall mean the United States Securities and Exchange
Commission.

     "Common Stock" shall have the meaning assigned in the first recital of this
Agreement.

     "Company" shall have the meaning assigned in the introduction of this
Agreement.

     "Company Repurchase Notice" shall have the meaning assigned in Section
3.5(b) hereof.

     "Control Percentage" shall mean a Voting Ownership Percentage of 15%.

     "Conversion" shall mean the conversion of shares of Convertible Preferred
Stock into shares of Common Stock pursuant to the Charter.

     "Convertible Preferred Stock" shall have the meaning assigned in the first
recital of this Agreement.

     "DGCL" shall have the meaning assigned in Section 3.6 hereof.

     "Director" shall mean any member of the Board of Directors of the Company
in office at the applicable time, as elected in accordance with the provisions
of the By-laws of the Company.

     "Exchange Act" shall mean the Securities Exchange Act of 1934, as amended.

     "Independent Director" shall mean any person who is not a Stockholder
Nominee and is independent of and otherwise unaffiliated with any member of the
Stockholder Group, and who is not a director, officer, employee, consultant or
advisor (financial, legal or other) of any member of the Stockholder Group and
has not served in any such capacity in the previous three (3) years; provided
that any consultant or advisor that has not provided $60,000 or more per annum
of services to the Company in the current or previous two years shall be deemed
an Independent Director for purposes of this Agreement.

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     "Initial Stockholder Nominee Notice" shall have the meaning assigned in
Section 4.1(b) of this Agreement.

     "Initial Stockholder Nominees" shall have the meaning assigned in Section
4.1(b) of this Agreement.

     "Maximum Ownership Percentage" shall mean, calculated at a particular point
in time, a Total Ownership Percentage equal to the Total Ownership Percentage at
the time of the Closing.

     "Merger" shall have the meaning set forth in the first recital of this
Agreement.

     "Merger Agreement" shall have the meaning set forth in the first recital of
this Agreement.

     "1935 Act" shall mean the Public Utility Holding Company Act of 1935, as
amended.

     "Nominating Committee" shall mean the committee comprised of members of the
Board whose functions include recommendations to the Board of nominees for
election as directors.  In the event there shall not be such a committee,
"Nominating Committee" shall mean the Board itself.

     "NYSE" shall mean the New York Stock Exchange Inc.

     "Person" shall mean any individual, partnership, joint venture,
corporation, trust, unincorporated organization, government or department or
agency of a government.

     "Registration Rights" shall mean the rights and obligations of the
Stockholder Group and the corresponding rights and obligations of the Company
set forth in the Registration Rights Agreement.

     "Registration Rights Agreement" shall have the meaning assigned in the
third recital of this Agreement.

     "Repurchase" shall have the meaning assigned in Section 3.5(a) of this
Agreement.

     "Sale Notice" shall have the meaning assigned in Section 3.4(b)(i) of this
Agreement.

     "Sale Option" shall have the meaning assigned in Section 3.4(b) of this
Agreement.

     "Sale Period" shall have the meaning assigned in Section 3.4(b)(ii) of this
Agreement.

     "Sale Securities" shall have the meaning assigned in Section 3.4(b)(i) of
this Agreement.

     "Securities" shall mean any equity securities of the Company.

     "Securities Act" shall mean the Securities Act of 1993, as amended.

     "Seller" shall have the meaning assigned in Section 3.4 of this Agreement.

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     "Stockholder" shall have the meaning assigned in the introduction to this
Agreement, as well as any successor to the rights and obligations to the holder
of Securities hereunder.

     "Stockholder Affiliate" shall mean any Affiliate of the Stockholder.

     "Stockholder Group" shall mean the Stockholder, any Stockholder Affiliate
and any Person with whom any Stockholder or any Affiliate of any Stockholder is
part of a 13D Group.

     "Stockholder Nominees" shall have the meaning set forth in Section 4.1(d)
of this Agreement.

     "Successor Stockholder Nominee Notice" shall have the meaning assigned in
Section 4.1(d) of this Agreement.

     "Successor Stockholder Nominees" shall have the meaning assigned in Section
4.1(d) of this Agreement.

     "13D Group" shall mean any group of Persons acquiring, holding, voting or
disposing of any Voting Security which would be required under Section 13(d) of
the Exchange Act and the rules and regulations thereunder to file a statement on
Schedule 13D with the Commission as a "person" within the meaning of Section
13(d)(3) of the Exchange Act.

     "Total Ownership Percentage" shall mean, calculated at a particular point
in time, the Voting Power which would be represented by the Securities
Beneficially Owned by the Person whose Total Ownership Percentage is being
determined if all shares of Convertible Preferred Stock (or other Securities
convertible into Voting Securities) Beneficially Owned by such Person were
converted into shares of Common Stock (or other Voting Security).

     "Total Voting Power" shall mean, calculated at a particular point in time,
the aggregate Votes represented by all then outstanding Voting Securities.

     "Transfer" shall mean any sale, transfer, pledge, encumbrance or other
disposition to any Person, and to "Transfer" shall mean to sell, transfer,
pledge, encumber or otherwise dispose of to any Person.

     "Transferee" shall mean any person to whom Voting Securities are
Transferred.

     "Unrestricted Ownership Percentage" shall mean a Voting Ownership
Percentage of 9.9%.

     "Votes" shall mean votes entitled to be cast generally in the election of
Directors, not including the votes that would be able to be cast by holders of
shares of Convertible Preferred Stock upon Conversion to shares of Common Stock
unless such Conversion shall occur or be deemed to occur.

     "Voting Ownership Percentage" shall mean, calculated at a particular point
in time, the Voting Power represented by the Voting Securities Beneficially
Owned by the Person whose Voting Ownership Percentage is being determined.

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     "Voting Power" shall mean, calculated at a particular point in time, the
ratio, expressed as a percentage, of (a) the Votes represented by the Voting
Securities with respect to which the Voting Power is being determined to (b)
Total Voting Power.

     "Voting Securities" shall mean the Common Stock and shares of any other
class of capital stock of the Company then entitled to vote generally in the
election of Directors, and shall not include Convertible Preferred Stock (or
other Securities convertible into Voting Securities) prior to Conversion into
Common Stock (or other Voting Security).

                                  Article II
                        Representations and Warranties

     Representations and Warranties of the Company. The Company represents and
warrants to the Stockholder as of the date hereof as follows:

          (a) The Company has been duly incorporated and is validly existing as
a corporation in good standing under the laws of the state of its incorporation
and has all necessary corporate power and authority to enter into this Agreement
and to carry out its obligations hereunder.

          (b) This Agreement has been duly and validly authorized by the Company
and all necessary and appropriate action has been taken by the Company to
execute and deliver this Agreement and to perform its obligations hereunder.

          (c) This Agreement has been duly executed and delivered by the Company
and assuming due authorization and valid execution and delivery by the
Stockholder, this Agreement is a valid and binding obligation of the Company,
enforceable in accordance with its terms.

     Representations and Warranties of the Stockholder. The Stockholder
represents and warrants to the Company as of the date hereof as follows:

          (a) The Stockholder has been duly incorporated and is validly existing
as a corporation in good standing under the laws of the state of its
incorporation and has all necessary corporate power and authority to enter into
this Agreement and to carry out its obligations hereunder.

          (b) This Agreement has been duly and validly authorized by the
Stockholder and all necessary and appropriate action has been taken by the
Stockholder to execute and deliver this Agreement and to perform its obligations
hereunder.

          (c) This Agreement has been duly executed and delivered by the
Stockholder and assuming due authorization and valid execution and delivery by
the Company, this Agreement is a valid and binding obligation of the
Stockholder, enforceable in accordance with its terms.

          (d) As of the effectiveness of this Agreement, the Stockholder Group
Beneficially Owns [_________] shares of Common Stock and [___________] shares of
Convertible Preferred Stock and does not Beneficially Own any other Voting
Security, warrant, option, convertible

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security or other similar right to acquire Common Stock or shares of any other
class of capital stock of the Company which are entitled to vote generally in
the election of directors.

                                  Article III
                        Stockholder and Company Conduct

     Standstill Provision. Subject to the provisions of this Agreement, during
the term of this Agreement, the Stockholder agrees with the Company that,
without the prior approval of a majority of the Board, the Stockholder will not,
and will cause each Stockholder Affiliate not to, take any of the following
actions:

          (a) singly or as part of a partnership, limited partnership, syndicate
or other 13D Group, directly or indirectly, acquire Beneficial Ownership of any
Voting Security so as to cause the Stockholder Group's Voting Ownership
Percentage to exceed the Unrestricted Ownership Percentage; or

          (b) singly or as part of a partnership, limited partnership, syndicate
or other 13D Group, directly or indirectly, acquire, propose to acquire, or
publicly announce or otherwise disclose an intention to propose to acquire, or
offer or agree to acquire, by purchase or otherwise, Beneficial Ownership of any
Security so as to cause the Stockholder Group's Total Ownership Percentage to
exceed the Maximum Ownership Percentage; or

          (c) deposit (either before or after the date of the execution of this
Agreement) any Security in a voting trust or subject any Security to any similar
arrangement or proxy with respect to the voting of such Security; or

          (d) make, or in any way participate, directly or indirectly, in any
"solicitation" of "proxies", or become a "Participant" in a "solicitation" (as
such terms are used in Regulation 14A under the Exchange Act) to seek to advise
or influence any person to vote against any proposal or director nominee
recommended to the stockholders of the Company or any of its subsidiaries by at
least a majority of the Board of Directors; or

          (e) form, join or in any way participate in a 13D Group with respect
to any Security of the Company or any securities of its subsidiaries; or

          (f) commence (including by means of proposing or publicly announcing
or otherwise disclosing an intention to propose, solicit, offer, seek to effect
or negotiate) a merger, acquisition or other business combination transaction
relating to the Company; or

          (g) initiate a "proposal," as such term is used in Rule 14a-8 under
the Exchange Act, "propose", or otherwise solicit the approval of, one or more
stockholders for a "proposal" or induce or attempt to induce any other person to
initiate a "proposal"; or

          (h) otherwise act, alone or in concert with others, to seek to control
or influence the management, the Board or policies of the Company; or

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          (i) take any other action to seek or effect control of the Company
other than in a manner consistent with the terms of this Agreement.

     This Section 3.1 shall not be interpreted to restrict the Stockholder or
any Stockholder Affiliate from taking any action or exercising any right
consistent with the terms of this Agreement, including engaging in private and
confidential discussions with the Board or the management of the Company. In
addition, this section shall not be deemed to restrict the Stockholder Nominees
from participating as board members in the direction of the Company.

     Required Reduction of Ownership Percentage. If at any time the Stockholder
becomes aware that the Stockholder Group's Total Ownership Percentage exceeds
the Maximum Ownership Percentage (other than as a result of action on the part
of the Company or any of its Affiliates), then the Stockholder shall, or shall
cause the Stockholder Affiliates to, consistent with the provisions of Section
3.4 of this Agreement, promptly take all action necessary to reduce the amount
of Securities Beneficially Owned by the Stockholder Group such that the
Stockholder Group's Total Ownership Percentage is not greater than the Maximum
Ownership Percentage.

     Top-Up Rights. (a) During the term of this Agreement, (i) if the
Stockholder Group's Voting Ownership Percentage falls below the Unrestricted
Ownership Percentage, the Stockholder may purchase Voting Securities from time
to time in the open market or otherwise in an amount sufficient in order to
restore the Stockholder Group's Voting Ownership Percentage to the Unrestricted
Ownership Percentage.

          (a) All Securities acquired by purchase pursuant to this Section 3.3
shall be subject to the terms of this Agreement.

     Restrictions on Transfer. None of the members of the Stockholder Group
shall directly or indirectly Transfer any Securities without the prior written
consent of a majority of the Independent Directors, except the following
Transfers:

          (a) Transfers of Securities representing Voting Power (assuming the
conversion of all Convertible Preferred Stock to be transferred) of less than
5.0% to any Transferee, without prior notice to the Company, so long as such
Transferee and any Affiliate of such Transferee and any such person who is a
member of a 13D Group with such Transferee does not have a Voting Ownership
Percentage (assuming the conversion of all Convertible Preferred Stock to be
transferred) of 5.0% or more immediately after giving effect to such Transfer.

          (b) Transfers of Securities representing Voting Power (assuming the
conversion of all Convertible Preferred Stock to be transferred) of 5.0% or more
pursuant to the following procedure (the "Sale Option"):

               (i) If a member of the Stockholder Group (the "Seller")
          determines that it wishes to seek a buyer for any of the Securities in
          a transaction that would result in a purchaser other than a member of
          the Stockholder Group holding 5.0% or more of the Voting Power
          (assuming the conversion of all Convertible Preferred Stock to be
          transferred), Seller shall provide written notice (a "Sale Notice") of
          its

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          intention to sell such Securities (the "Sale Securities").  The
          Sale Notice shall specify the number of Sale Securities and the cash
          price per share at which the Company or its designee may purchase the
          Sale Securities.

               (ii)   The Company shall give notice to the Seller within 15 days
          of receiving the Sale Notice of whether the Company intends to
          purchase the Sale Securities, and if the Company elects to purchase
          such Sale Securities, the Company shall have a period ending on the
          later of fifteen (15) days after the date of the Sale Notice and five
          (5) days from the date of receipt of all necessary regulatory
          approvals (the "Sale Period") (provided, that in no event shall the
          Sale Period exceed one hundred eighty (180) days) within which to
          effect a closing of the Company's or its designee's purchase of all,
          but not less than all, of the Sale Securities.

               (iii)  If the Company or its designee shall not give the Seller
          notice of its election to purchase the Sale Securities within the
          specified period or shall for any reason fail to effect a closing of
          the purchase of all of the Sale Securities within the Sale Period, the
          Seller shall have the right, for a period of one year following such
          notice of election not to purchase or failure to purchase, to sell all
          or part of such Sale Securities to any other person for a price equal
          to or exceeding the price specified in the Sale Notice; provided
          however that before the Seller may sell the Sale Securities to any
          such person pursuant to this Section 3.4(b), such person shall have
          entered into a stockholders agreement containing substantially the
          same terms as this Agreement, except for Sections 4.1 and 4.2 hereto.

          (c) Transfers of Securities to the public in a bona fide underwritten
offering pursuant to the Registration Rights Agreement; provided, however, that
the Seller and the representative or representatives of the underwriters
previously agree in writing with the Company that all reasonable efforts will be
made to achieve a wide distribution of the Voting Securities in such offering
and to ensure that no Transferee in such offering acquires for its own account
Beneficial Ownership of Securities representing upon Transfer Voting Power of
3.0% or more.

          (d) Direct or indirect transfers of all or part of the Stockholder
Group's Securities pursuant to a distribution of Securities among the
stockholders of the Stockholder on either a pro rata basis or a basis otherwise
designed to widely distribute such Securities among the Stockholder's existing
stockholders.

          (e) Transfers of Securities among members of the Stockholder Group;
provided, however, that any such Transferee shall agree with the Company in
writing prior to each such transfer to be bound by the terms of this Agreement
with respect to its Beneficial Ownership of Securities, and that upon such
agreement such Transferee shall be considered the Stockholder for purposes of
this Agreement.

          (f) Transfers in connection with a financing transaction in which the
Stockholder grants a security interest in or otherwise collateralizes a
financing with Securities; provided, however, that the lender in any such
transaction shall have entered into a stockholders agreement

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containing substantially the same terms as this Agreement, except for Sections
4.1 and 4.2 hereto.

          (g) If a Clearly Credible Tender Offer for the Company has been
commenced, at the Stockholder's option Transfers of Securities by means of
tenders into such Clearly Credible Tender Offer in an amount not exceeding the
percentage (on the basis of total Votes and assuming the conversion of all
shares of Convertible Preferred Stock into shares of Common Stock) of the Voting
Securities of which it is the Beneficial Owner equal to the highest percentage
(on the basis of total Votes) of the aggregate of all Voting Securities not
Beneficially Owned by any member of the Stockholder Group which has ever been
announced to have been tendered into such Clearly Credible Tender Offer.

     Buy-Back Options. (a) During the term of this Agreement, if the Company
purchases Securities from the public, whether by tender offer, open market
purchase or otherwise (a "Repurchase"), the Company shall contemporaneously with
the Repurchase offer to repurchase from the Stockholder on the same terms and
conditions, including price, as in the Repurchase, a percentage (on the basis of
total Votes and assuming the conversion of all shares of Convertible Preferred
Stock into shares of Common Stock) of those Securities Beneficially Owned by the
Stockholder equal to the percentage (on the basis of total Votes and assuming
the conversion of all shares of Convertible Preferred Stock into shares of
Common Stock) of Securities to be Repurchased from the Beneficial Owners of
Securities other than the Stockholder or any Stockholder Affiliate (the "Buy-
Back Offer"). The Stockholder may accept such Buy-Back Offer in its sole
discretion.

          (b) The Company shall provide notice to the Stockholder of its
intention to engage in a Repurchase not less than 30 days in advance of the date
on which the Repurchase is to begin (the "Company Repurchase Notice").  The
Stockholder must provide notice to the Company within ten (10) days of receipt
of the Company Repurchase Notice of whether the Stockholder intends to accept
the Buy-Back Offer.

     Charter and By-laws. During the term of this Agreement the Company shall
not amend, alter or repeal, or propose the amendment, alteration or repeal of,
any provision of the Charter or the By-laws in any manner which is inconsistent
with the terms of this Agreement and which adversely affects the rights of the
Stockholder Group under the terms of this Agreement. If at any time during the
term of this Agreement the provisions of this Agreement shall conflict with the
provisions of the Charter and the By-laws, the provisions of this Agreement
shall, to the extent permitted by the Delaware General Corporation Law (the
"DGCL"), be controlling.

     Rights Arrangement. During the term of this Agreement, the Company hereby
agrees not to implement or amend any provision of any rights agreement or
similar form of stockholder rights or stockholder protective device (a "Rights
Arrangement") in any manner which is inconsistent with the terms of this
Agreement or the Merger Agreement and which adversely affects the rights of the
Stockholder Group under the terms of this Agreement; provided, however, that
this provision shall not preclude the Company from implementing a Rights
Arrangement in customary form for holding companies registered under the 1935
Act; provided, further, that such Rights Arrangement shall (i) exempt the
Stockholder from its provisions pursuant to which ownership of a beneficial
interest in the Company's securities affects the

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exercisability of the rights and (ii) not apply to any person that acquires less
than a 20% beneficial ownership interest in the Company's voting securities.

     Taxes Upon Conversion or Exchange. The Company hereby agrees to pay any and
all stock transfer and documentary stamp taxes that may be payable in respect of
any issuance or delivery of (i) any shares of Convertible Preferred Stock, (ii)
any shares of Common Stock issued in a Conversion of shares of Convertible
Preferred Stock, or (iii) any exchange of shares of Common Stock for shares of
Convertible Preferred Stock, or certificates or instruments evidencing any of
such shares or securities. The Company shall not, however, be required to pay
any such tax which may be payable in respect of any transfer involved in the
issuance or delivery of shares of Common Stock in a Conversion of shares of
Convertible Preferred Stock in a name other than that in which the shares of
such Convertible Preferred Stock were registered.

     Prohibition on Senior Securities. During the term of this Agreement, the
Company hereby agrees that it shall not, except as may otherwise be contemplated
by this Agreement, create, authorize or reclassify any authorized stock of the
Company into (x) any class or series of the Company's capital stock ranking
prior to the Convertible Preferred Stock as to dividends or as to distributions
of assets upon liquidation, dissolution or winding up of the Company, whether
voluntary or involuntary, or (y) any class or series of the Company's capital
stock entitled to vote separately as a class on any matter whatsoever, other
than an amendment to the Charter which would have the effect of modifying the
voting powers, designations, preferences, rights and qualifications, limitations
or restrictions of such class or series so as to affect the holders thereof
adversely, or (z) any security convertible into shares of any class or series
described in (x) or (y) above.

     Section 203 of the DGCL. The Board of Directors of the Company shall take
such actions as are necessary to ensure that the provisions of Section 203 of
the DGCL shall not be applicable to the Stockholder.

                                  Article IV
                        Board Representation and Voting

     Directors Designated by the Stockholder. (a) During the term of this
Agreement, the size of the Board shall be nine (9), ten (10) or twelve (12)
directorships. During the term of this Agreement, the Company agrees to not
cause or allow the size of the Board to be eleven (11) directorships.
Immediately following the Closing, if the size of the Board is nine (9) or ten
(10) directorships, the Board shall appoint as a Director one (1) Stockholder
Nominee (as defined in Section 4.1(b) below and in addition to any Directors
that may be appointed pursuant to Section 7.10(a) of the Merger Agreement) who
has been designated by the Stockholder in the Stockholder Nominee Notice (as
defined in Section 4.1(b) below and attached as Exhibit A hereto). If the size
of the Board, at the time of the Closing, is twelve (12) directorships, the
Board shall appoint as Directors two (2) Stockholder Nominees (in addition to
any Directors that may be appointed pursuant to the Merger Agreement) who have
been designated by the Stockholder in the Stockholder Nominee Notice. To the
closest extent possible, the Stockholder Nominee (and the nominees to be
appointed pursuant to Section 7.10(a) of the Merger Agreement) shall be placed
evenly in each class of Directors and, if more Stockholder Nominees are
appointed pursuant to this Section 4.1 than there are classes of Directors, then
the classes of

                                       11
<PAGE>

Directors latest standing for election shall have placed in them
additional Stockholder Nominees, with one Director placed in each successive
class, so as to keep all classes as even as possible with respect to the number
of Stockholder Nominees in each. In the event of a vacancy caused by the
disqualification, removal, resignation or other cessation of service of any
Stockholder Nominee from the Board, the Board shall elect as a Director (to
serve the balance of the predecessor nominee's term) a new Stockholder Nominee
who has been designated by the Stockholder in an additional Stockholder Nominee
Notice that has been provided to the Company at least seven (7) days prior to
the date of a regular meeting of the Board. In the event that the Size of the
Board is, at the time of the Closing, nine (9) or ten (10) directorships, and is
subsequently during the term of this Agreement, expanded to twelve (12)
directorships, then, upon such expansion, the Board shall appoint as an
additional Director, a Stockholder Nominee who has been designated by the
Stockholder in a Stockholder Nominee Notice. Such additional Director shall be
placed in the class of Directors latest standing for election, provided,
however, that if placing such additional Director in such class would cause the
classes of Directors then existing to have a differential in number of
Stockholder Nominees therein in excess of one (1), then such additional
Directors shall be placed in such classes so as to cause such differential to be
one (1) or less.

          (b) The Stockholder shall provide notice to the Company (the
"Stockholder Nominee Notice") as required by Section 4.1(a) above, which notice
shall contain the following information:  (i) the name of the person(s) it has
designated to become Director(s) (the "Stockholder Nominees"), and (ii) all
information required by Item 5(b) of Schedule 14A under the Exchange Act with
respect to each such Stockholder Nominee.

          (c) During the term of this Agreement, at each annual meeting of
stockholders of the Company at which the term of any Stockholder Nominee is to
expire or (ii) a vacancy is caused by the removal, resignation, retirement,
death, disability or disqualification or other cessation of service of any
Stockholder Nominee, the Stockholder shall provide notice to the Company in
writing ninety (90) days prior to the date of the proxy statement for the prior
year's annual meeting of the Company's stockholders ("Successor Stockholder
Nominee Notice"), indicating (x) the name of the person(s) it has designated to
become Director(s) ("Successor Stockholder Nominees" and together with
Stockholder Nominees, "Stockholder Nominees"), if any, (y) the class of
Directors to which each such Successor Stockholder Nominee shall be assigned,
and (z) all information required by Regulation 14A and Schedule 14A under the
Exchange Act with respect to each such Successor Stockholder Nominee.

          (d) The Stockholder shall consult with the Company in connection with
the identity of any proposed Stockholder Nominee. In the event the Company is
advised in writing by its outside counsel that a proposed Stockholder Nominee
would not be qualified under the Company's Charter or By-laws or any applicable
statutory or regulatory standards to serve as a Director, or if the Company
otherwise reasonably objects to a proposed Stockholder Nominee, including
without limitation because such Stockholder Nominee either (i) is a director or
officer of a direct competitor of the Company, (ii) does not satisfy the good
faith reasonable criteria for Board membership of PNM in effect as of the date
of the Merger Agreement, or (iii) has engaged in any adverse conduct that would
require disclosure under Item 7 of Schedule 14A promulgated under the Exchange
Act, the Stockholder agrees to withdraw such proposed Stockholder Nominee and
nominate a replacement therefor (which replacement would be subject to the

                                       12
<PAGE>

requirements of this Section 4.1(e)).  Any such objection by the Company must be
made no later than one (1) month after the Stockholder first informs the Company
of the identity of the proposed Stockholder Nominee; provided, however, that the
Company shall in all cases notify the Stockholder of any such objection
sufficiently in advance of the date on which proxy materials are mailed by the
Company in connection with such election of directors to enable the Stockholder
to propose an alternate Stockholder Nominee pursuant to and in accordance with
the terms of this Agreement. Stockholder Nominees may not be officers or
employees of the Stockholder.

          (e) During the term of this Agreement the Company agrees to include
each Stockholder Nominee to be added to or retained on the Board pursuant to
this Agreement in the slate of nominees recommended by the Board to the
Company's stockholders for election as Directors and shall use its best efforts
to cause the election or reelection of each such Stockholder Nominee to the
Board, including soliciting proxies in favor of the election of such persons.

          (f) During the term of this Agreement, the Stockholder shall be
entitled to designate each Stockholder Nominee (including the Directors that may
be appointed by the Stockholder pursuant to the Merger Agreement) to be a member
of one committee of the Board (including without limitation the executive
committee, the audit committee and the executive compensation committee),
provided however, that if all such Stockholder Nominees are designated to serve
on a committee at a time when an executive committee does not exist, then if an
executive committee is so formed, the Stockholder shall be entitled to designate
one Stockholder Nominee to serve on such committee in addition to serving on the
committee on which such Stockholder Nominee serves at such time.

     Resignation of Stockholder Nominees. Unless otherwise agreed by the
Company, the Stockholder shall cause each of the Stockholder Nominees then
serving on the Board to offer their resignations from the Board immediately upon
the earlier to occur of the following:

          (a) The termination of this Agreement pursuant to and in accordance
with Section 5.2 hereof; and

          (b) The Stockholder Group's Total Ownership Percentage falling below
10%.

     Voting. During the term of this Agreement, the Stockholder, as a holder of
shares of Voting Securities, agrees that:

          (a) The Stockholder shall, and shall cause each Stockholder Affiliate
to, be present, in person or by proxy, at all meetings of stockholders of the
Company such that the percentage of the total number of Voting Securities having
voting rights which are Beneficially Owned by the Stockholder and the
Stockholder Affiliates which are counted for the purpose of determining the
presence of a quorum at such meetings shall be equal to the percentage of Voting
Securities Beneficially Owned by other than the Stockholder or the Stockholder
Affiliate which are present, in person or by proxy, at such meeting of
stockholders of the Company, and which are counted for the purpose of
determining the presence of a quorum at such meetings.

                                       13
<PAGE>

          (b) With respect to all matters submitted to a vote of the Company's
stockholders during the term of this Agreement, the Stockholder and each member
of the Stockholder Group shall vote all Voting Securities which are counted for
the purpose of determining the presence of a quorum at a meeting of stockholders
in accordance with Section 4.3(a) hereof, with respect to all matters voted on
by the stockholders of the Company (whether at a regular or special meeting or
pursuant to a unanimous written consent) in the same proportion as all Voting
Securities (other than those Beneficially Owned by the Stockholder or the
Stockholder Affiliate) are voted with respect to such matters.

          (c) Each Transferee of any Voting Securities who acquires such Voting
Securities, directly or indirectly, from the Stockholder or any member of the
Stockholder Group agrees that:

               (i)  The Transferee shall be present, in person or by proxy, at
          all meetings of stockholders of the Company so that all Voting
          Securities having voting rights which are Beneficially Owned by the
          Transferee may be counted for the purpose of determining the presence
          of a quorum at such meetings.

               (ii) (A)  With respect to the election of Directors, the
          Transferee shall vote all Voting Securities Beneficially Owned by the
          Transferee in favor of the election of all candidates for Director
          nominated by the Company's Board (including the Stockholder Nominees)
          and (B) with respect to any proposal initiated by a stockholder of the
          Company relating to any matter (other than nonbinding precatory
          resolutions with respect to which subsection (iii) hereof shall
          apply), the Transferee shall vote all Voting Securities Beneficially
          Owned by the Transferee in accordance with the recommendation of the
          Board.

               (iii)  The Transferee shall vote as requested by a majority of
          the Board on compensatory stock plans submitted to stockholders of the
          Company for their approval, provided that (i) the Transferee shall not
          be obligated to so vote if the stock plan at issue involves the
          potential issuance of more than 5% of the equity securities of the
          Company, on a fully diluted basis, and (ii) the Transferee shall not
          be obligated to so vote if the aggregate of all such plans involves
          the potential issuance of more than 5% of the equity securities of the
          Company, on a fully diluted basis, in any rolling five-year period.

               (iv)   With respect to all other matters submitted to a vote of
          the Company's stockholders during the term of this Agreement, (i) the
          Transferee may vote in its sole discretion a number of Voting
          Securities Beneficially Owned by the Transferee having voting rights
          with respect to such other matters representing in the aggregate a
          Voting Ownership Percentage not in excess of the Unrestricted
          Ownership Percentage, and (ii) the Transferee shall vote all Voting
          Securities Beneficially Owned by the Transferee having voting rights
          with respect to such other matters representing in the aggregate a
          Voting Ownership Percentage in excess of the Unrestricted Ownership
          Percentage in the same proportion (based on total Votes) as all Voting
          Securities voted on any such other matter are voted by the
          stockholders of the Company other than the Transferee, provided,
          however,

                                       14
<PAGE>

          that the Transferee may vote any or all of the Voting Securities
          Beneficially Owned by it in its sole discretion with respect to a vote
          of the Company's stockholders on any transaction or series of
          transactions which would, if consummated, constitute a Change in
          Control of the Company.

               (v) At all times the Transferee may exercise in its sole
          discretion such voting rights as the Convertible Preferred Stock may
          have from time to time pursuant to the Charter and with respect to an
          amendment to the Charter which would have the effect of modifying the
          voting powers, designations, preferences, rights and qualifications,
          limitations or restrictions of such class or series so as to affect
          the holders thereof adversely.

                                   Article V
                         Effectiveness and Termination

     Effectiveness. This Agreement shall take effect immediately upon the
Closing and shall remain in effect until it is terminated pursuant to Section
5.2 hereof.

     Termination. Unless otherwise agreed in writing by the Stockholder, this
Agreement shall terminate upon the earliest to occur of the following:

          (a) The Company's failure to pay the stated quarterly dividend on any
series of Convertible Preferred Stock in any four (4) quarters during the term
of this Agreement.

          (b) The election to the Board of a majority of Directors other than
those nominated by the Nominating Committee of the Board.

          (c) The size of the Board being increased to more than twelve (12)
     directors.

          (d) The Stockholder Group's Total Ownership Percentage falling below
10% for a period of 365 consecutive days.

          (e) Any material breach of this Agreement by the Company, provided
that the Company has not cured the breach within sixty (60) days after receiving
notice of such breach, or if cure within such time is not possible, the Company
has not made reasonable good faith efforts to cure such breach, provided,
further that in no event shall such cure period extend longer than ninety (90)
days from the date of first notice of such breach.

          (f) Mutual written agreement of the Company and the Stockholder at any
time to terminate this Agreement, which termination shall occur at a time to be
fixed in such mutual agreement.

                                       15
<PAGE>

                                  Article VI
                                 Miscellaneous

     Compliance With Law. Notwithstanding anything to the contrary in this
Agreement, no Transfer of Securities shall be deemed to be required or permitted
pursuant to this Agreement if such Transfer would require regulatory approvals
which, individually or in the aggregate with respect to such Transfer, would
have a material adverse impact on the Company or any of its subsidiaries or the
Stockholder or any Stockholder Affiliate.

     Regulatory Matters. During the term of this Agreement, the Company agrees
to take all commercially reasonable steps to assist the Stockholder in securing
such regulatory approvals as would not reasonably be expected to have a material
adverse effect on the Company and as may be necessary to allow the Stockholder
to exercise its rights under the Agreement at all times, including without
limitation the right of the Stockholder to Transfer Securities free of the
restrictions and limitations imposed by Section 6.1.

     Injunctive Relief. Each party hereto acknowledges that it would be
impossible to determine the amount of damages that would result from any breach
of any of the provisions of this Agreement and that the remedy at law for any
breach, or threatened breach, of any of such provisions would likely be
inadequate and, accordingly, agrees that each other party shall, in addition to
any other rights or remedies which it may have, be entitled to seek such
equitable and injunctive relief as may be available from any court of competent
jurisdiction to compel specific performance of, or restrain any party from
violating, any of such provisions. In connection with any action or proceeding
for injunctive relief, each party hereto hereby waives the claim or defense that
a remedy at law alone is adequate and agrees, to the maximum extent permitted by
law, to have each provision of this Agreement specifically enforced against him
or it, without the necessity of posting bond or other security against him or
it, and consents to the entry of injunctive relief against him or it enjoining
or restraining any breach or threatened breach of such provisions of this
Agreement.

     Successors and Assigns. This Agreement shall be binding upon, shall inure
to the benefit of and shall be enforceable by the Company and by the Stockholder
and their respective successors and permitted assigns, and no such term or
provision is for the benefit of, or intended to create any obligations to, any
other Person.

     Amendments; Waiver. (a) This Agreement may be amended only by an agreement
in writing executed by the parties hereto. Any approval of an amendment of this
Agreement upon the part of the Company shall require the approval of a majority
of the Independent Directors at a duly convened meeting thereof or all of the
Company's directors by written consent thereto.

          (b) Either party may waive in whole or in part any benefit or right
provided to it under this Agreement, such waiver being effective only if
contained in a writing executed by the waiving party. No failure by any party to
insist upon the strict performance of any covenant, duty, agreement or condition
of this Agreement or to exercise any right or remedy consequent upon breach
thereof shall constitute a waiver of any such breach or of any other covenant,
duty, agreement or condition, nor shall any delay or omission of either party to
exercise any right hereunder in any manner impair the exercise of any such right
accruing to it thereafter. Any

                                       16
<PAGE>

waiver of any benefit or right provided to the Company under this Agreement
shall require the approval of a majority of the Board and a majority of the
Independent Directors at a duly convened meeting thereof or all of the Company's
directors by written consent thereto.

     Notices. Except as otherwise provided in this Agreement, all notices,
requests, claims, demands, waivers and other communications hereunder shall be
in writing and shall be deemed to have been duly given when delivered by hand,
when delivered personally or by courier, three days after being deposited in the
mail (registered or certified mail, postage prepaid, return receipt requested),
or when received by facsimile transmission if promptly confirmed by one of the
foregoing means, as follows:

If to the Company:

     Public Service Company or New Mexico and
     HVOLT Enterprises, Inc.
     Alvarado Square,
     Albuquerque, NM 87158
     Attention:  Chief Financial Officer
     Fax:        (505) 241-2368

with a copy to:

     Winthrop, Stimson, Putnam & Roberts
     One Battery Park Plaza
     New York, New York  10004
     Attention:  Timothy Michael Toy, Esq.
                 Stephen R. Rusmisel, Esq.
     Fax:        (212) 858-1500

If to the Stockholder:

     Westar Industries, Inc.
     818 South Kansas Avenue
     Topeka, KS  66612
     Attention:  President
     Fax:        (785) 575-1936

with a copy to:

     LeBoeuf, Lamb, Greene & MacRae, L.L.P.
     125 West 55th Street
     New York, New York  10019
     Attention:  William S. Lamb, Esq.

                                       17
<PAGE>

                 Benjamin G. Clark, Esq.
     Fax:        (212) 424-8500

or to such other address or facsimile number as either party may, from time to
time, designate in a written notice given in a like manner.

     APPLICABLE LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF DELAWARE WITHOUT GIVING EFFECT
TO PRINCIPLES OF CONFLICTS OF LAW.

     Headings. The descriptive headings of the several sections in this
Agreement are for convenience only and do not constitute a part of this
Agreement and shall not be deemed to limit or affect in any way the meaning or
interpretation of this Agreement.

     Integration. This Agreement and the other writings referred to herein or
delivered pursuant hereto which form a part hereof contain the entire
understanding of the parties with respect to its subject matter. This Agreement
supersedes all prior agreements and understandings between the parties with
respect to its subject matter. There are no restrictions, agreements, promises,
representations, warranties, covenants or undertakings with respect to its
subject matter other than those expressly set forth or referred to herein.

     Severability. If any term or provision of this Agreement or any application
thereof shall be declared or held invalid, illegal or unenforceable, in whole or
in part, whether generally or in any particular jurisdiction, such provision
shall be deemed amended to the extent, but only to the extent, necessary to cure
such invalidity, illegality or unenforceability, and the validity, legality and
enforceability of the remaining provisions, both generally and in every other
jurisdiction, shall not in any way be affected or impaired thereby.

     Consent to Jurisdiction. In connection with any suit, claim, action or
proceeding arising out of this Agreement, the Stockholder and the Company each
hereby consent to the in personam jurisdiction of the United States federal
courts and state courts located in Topeka, Kansas; the Stockholder and the
Company each agree that service in the manner set forth in Section 6.5 hereof
shall be valid and sufficient for all purposes; and the Stockholder and the
Company each agree to, and irrevocably waive any objection based on forum non
conveniens or venue not to, appear in any United States federal court state
court located in Topeka, Kansas.

     Counterparts. This Agreement may be executed by the parties hereto in two
or more counterparts, each of which shall be deemed an original, but all of
which together shall constitute one and the same instrument.

                                       18
<PAGE>

          IN WITNESS WHEREOF, the Company and the Stockholder have caused this
Agreement to be duly executed by their respective authorized officers as of the
date set forth at the head of this Agreement.

                                 HVOLT ENTERPRISES, INC.

                                 By:_____________________________
                                 Name:
                                 Title:

                                 WESTAR INDUSTRIES, INC.

                                 By:_____________________________
                                 Name:
                                 Title:

                                       19
<PAGE>

                                                                       EXHIBIT A

                          Stockholder Nominee Notice
                          --------------------------

          This Stockholder Nominee Notice is provided to HVOLT Enterprises, Inc.
(the "Company") by Westar Industries, Inc., (the "Stockholder") pursuant to
Sections 4.1(a) and (b) of the Stockholder Agreement, dated as of [    ], 200_,
between the Stockholder and the Company. Additional sheets may be attached
hereto as necessary to answer each item below.

1.        The Stockholder hereby designates the person set forth below (the
"Stockholder Nominee") to be a director of the Company:

Name:                                 ________________________

Principal occupation or employment:   __________________________________________

                                      __________________________________________

Principal business of the organization
                                      __________________________________________
by which ______________ is employed:
                                      __________________________________________

Mailing address:                      __________________________________________

                                      __________________________________________

                                      __________________________________________

                                      __________________________________________

                                      Tel:______________________________________

Principal Business Address of
employer specified above:
                                      __________________________________________

                                      __________________________________________

                                      __________________________________________

                                      __________________________________________

                                      Tel:______________________________________
<PAGE>

2.          Except as set forth below, the Stockholder Nominee has/has not,
during the past ten years, been convicted in a criminal proceeding (excluding
traffic violations or similar misdemeanors).

            (If answer is positive):

            Dates:                    _________________________

            Nature of Conviction:
                                      __________________________________________

                                      __________________________________________

                                      __________________________________________

                                      __________________________________________

            Name and location of
            court:
                                      __________________________________________

                                      __________________________________________

                                      __________________________________________

                                      __________________________________________

            Penalty imposed or other
            disposition
                                      __________________________________________

                                      __________________________________________

                                      __________________________________________

                                      __________________________________________

                                       2
<PAGE>

3.          The Stockholder Nominee beneficially owns, directly or indirectly,
the following securities of the Company:

Description of Security                                    Quantity Owned
-----------------------                                    --------------

__________________________________________________         _____________________

__________________________________________________         _____________________

__________________________________________________         _____________________

4.          The Stockholder Nominee owns of record, but not beneficially, the
following securities of the Company:

Description of Security                                    Quantity Owned
-----------------------                                    --------------

__________________________________________________         _____________________

__________________________________________________         _____________________

__________________________________________________         _____________________

5.          During the past two years, the Stockholder Nominee has purchased or
sold securities of the Company as set forth below:

Description of Security    Date Purchased                  Date Sold
-----------------------    --------------                  ---------

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

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

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

                                       3
<PAGE>

6.          Of the securities described above, the following parts of the
purchase price or market value of the shares specified is represented by funds
borrowed or otherwise obtained for the purpose of acquiring or holding such
securities:

Description of Security        Amount of Indebtedness
-----------------------        ----------------------

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

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

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

7.          If the funds described above were borrowed or obtained otherwise
than pursuant to a margin account or bank loan in the regular course of business
of a bank, broker or dealer, a brief description of the transaction, including
the names of the parties, is set forth immediately below:

Description of Security
-----------------------

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

Description of Transaction
--------------------------

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

8.          Within the past year, the Stockholder Nominee was/was not a party to
any contract, arrangements or understandings with any person with respect to any
securities of the Company, including, but not limited to joint ventures, loan or
option arrangements, puts or calls, guarantees against loss or guarantees of
profit, division of losses or profits, or the giving or withholding of proxies.

                                       4
<PAGE>

          If the Stockholder Nominee has been such a party, a description of the
parties to such contracts, arrangements or understandings is set forth below:

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

9.          The Stockholder Nominee's associates beneficially own, directly or
indirectly, the following securities of the Company:

                                        Description of
Associate Name          Address            Security        Amount Owned

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

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

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

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

10.         The Stockholder Nominee beneficially owns, directly or indirectly,
the following amounts of each class of securities of any parent or subsidiary of
the Company:

Description of Security                                    Quantity Owned
-----------------------                                    --------------

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

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

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

                                       5
<PAGE>

11.         Set forth below is a description of any transaction, or series of
similar transactions, since the beginning of the Company's last fiscal year, or
any currently proposed transaction, or series of similar transactions, to which
the Company or any of its subsidiaries was or is to be a party, in which the
amount involved exceeds $60,000 and in which the Stockholder Nominee had, or
will have, a direct or indirect material interest, including a description of
the nature of the Stockholder Nominee's interest in the transaction(s), the
amount of such transaction(s) and, where practicable, the amount of such
person's interest in the transaction(s):

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

12.         Except as set forth below, neither the Stockholder Nominee (nor any
associate of the Stockholder Nominee) has any arrangement or understanding with
any person with respect to any future employment by the Company or its
affiliates or with respect to any future transactions to which the Company or
any of its affiliates will or may be a party:

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

                                       6
<PAGE>

  Submitted by:

                      Westar Industries, Inc.

               By:    _______________________________

               Name:  _______________________________

               Title: _______________________________

               Date:  _______________________________

                                       7<PAGE>

                                                                  Exhibit 10.9

                     FORM OF REGISTRATION RIGHTS AGREEMENT

                                    between

                            HVOLT Enterprises, Inc.
                            a Delaware corporation

                                      and

                            Westar Industries, Inc.
                             a Kansas corporation

                         Dated as of [        ], 200_

<PAGE>

                               TABLE OF CONTENTS

ARTICLE I Certain Definitions........................................  1
 Section 1.1  Defined Terms..........................................  1
 Section 1.2  General................................................  3
 Section 1.3  Headings...............................................  3

ARTICLE II Representations and Warranties............................  3
 Section 2.1  Representations and Warranties of the Stockholder......  3
 Section 2.2  Representations and Warranties of the Company..........  4

ARTICLE III Registration Rights......................................  4
 Section 3.1  Demand Registrations...................................  4
 Section 3.2  "Piggy-Back" Registrations.............................  7
 Section 3.3  Additional Agreements..................................  8
 Section 3.4  Registration Procedures................................  8
 Section 3.5  Registration Expenses.................................. 15
 Section 3.6  Indemnification; Contribution.......................... 15
 Section 3.7  Underwriters........................................... 18
 Section 3.8  Exchange Act Filings; Rule 144; Rule 144A.............. 18
 Section 3.9  Agreement of the Stockholder........................... 19
 Section 3.10 Legends................................................ 19
 Section 3.11 Treatment of Convertible Preferred Stock............... 20
 Section 3.12 Other Registration Rights Agreements................... 20

ARTICLE IV Miscellaneous............................................. 20
 Section 4.1  Term of Agreement, Termination......................... 20
 Section 4.2  Recapitalizations, Exchanges, Etc. Affecting
              the Shares............................................. 20

                                      -i-
<PAGE>

 Section 4.3  Other Company Securities...............................  20
 Section 4.4  Amendment; Conflict....................................  20
 Section 4.5  Notices................................................  21
 Section 4.6  Integration............................................  22
 Section 4.7  Binding Effect; Benefit................................  22
 Section 4.8  Assignability..........................................  22
 Section 4.9  Counterparts...........................................  22
 Section 4.10 Applicable Law.........................................  22
 Section 4.11 Stockholder Agreement..................................  22
 Section 4.12 Severability...........................................  22

                                      -ii-
<PAGE>

                         REGISTRATION RIGHTS AGREEMENT

          This REGISTRATION RIGHTS AGREEMENT (this "Agreement") dated as of [
], 200_ is entered into between Westar Industries, Inc., a Kansas corporation
(the "Stockholder"), and HVOLT Enterprises, Inc., a Delaware corporation (the
"Company").

          WHEREAS, the Company, Western Resources, Inc., Kansas corporation
("WRI"), Public Service Company of New Mexico, a New Mexico corporation ("PNM"),
HVK, Inc., a Kansas corporation and a wholly owned subsidiary of the Company
("Merger Sub-1") and HVNM, Inc., a New Mexico corporation and a wholly owned
subsidiary the Company ("Merger Sub-2") have entered into an Agreement and Plan
of Restructuring and Merger, dated as of November 8, 2000, (the "Merger
Agreement"), pursuant to which the Stockholder will become a wholly owned
subsidiary of the Company (the "Merger") and pursuant to which, in connection
with the transactions contemplated thereby, the Stockholder has acquired
beneficial ownership of 55,000,000 shares of common stock of the Company, par
value $.001 per share (the "Common Stock") and up to [       ] shares of Series
Convertible Preferred Stock of the Company, par value $.001 per share the
"Convertible Preferred Stock");

          WHEREAS, the parties each desire to make certain covenants and
agreements concerning, among other things, the registration from time to time of
the Stockholder's shares of Common Stock, Common Stock obtainable upon
conversion of Convertible Preferred Stock, and Convertible Preferred Stock (the
"Shares") under the Securities Act of 1933, as amended (the "Securities Act");
and

          WHEREAS, concurrently with the execution and delivery hereof, the
Stockholder and Parent have entered into an agreement with respect to the
Stockholder's investment in the Company (the "Stockholder Agreement").

          NOW, THEREFORE, in consideration of the premises and of the mutual
covenants, representations, warranties and agreements contained herein, the
Company and the Stockholder hereby agree as follows:

                                   ARTICLE I

                              Certain Definitions
                              -------------------

          Defined Terms. In addition to other terms defined elsewhere in this
Agreement, as used in this Agreement, the following capitalized terms have the
respective meanings set forth below

          "Affiliate" shall mean, with respect to any person, any other person
that directly or indirectly through one or more intermediaries controls or is
controlled by or is under common control with such person.  For the purposes of
this definition, "control" when used with respect to any particular person,
means the power to direct the management and policies of such person, directly
or indirectly, whether through the ownership of voting securities, by contract
or otherwise; and the terms "controlling" and "controlled" have meanings
correlative to the foregoing.

<PAGE>

          "Blackout Period" shall have the meaning assigned to such term in
Section 3.6(a).

          "Claims" shall have the meaning assigned to such term in Section
3.6(a).

          "Company Maximum Number" shall have the meaning assigned to such term
in Section 3.2(b).

          "Demand Period" shall have the meaning assigned to such term in
Section 3.1(a).

          "Demand Registration" shall have the meaning assigned to such term in
Section 3.1(a).

          "Demand Request" shall have the meaning assigned to such term in
Section 3.1(a).

          "Effective Period" shall have the meaning assigned to such term in
Section 3.4(a)(iii).

          "Exchange Act" shall mean the Securities Exchange Act of 1934, as
amended.

          "Form S-3" means such form under the Securities Act as in effect on
the date hereof or any successor registration form under the Securities Act
subsequently adopted by the SEC which permits inclusion or incorporation by
reference of substantial information by reference to other documents filed by
the Company with the SEC.

          "Holder" shall mean, with respect to any shares of Common Stock, the
signatory to this Agreement; and the terms "hold", "held" and "holding" shall
have meanings correlative to the foregoing.

          "Inspectors" shall have the meaning assigned to such term in Section
3.4(a)(iv).

          "Other Holder" shall have the meaning assigned to such term in Section
3.2(b).

          "person" shall mean any individual, corporation, company, partnership,
joint venture, trust, group (as such term is used in Rule 13d-5 under the
Exchange Act), business association, government or political subdivision
thereof, governmental body or other entity.

          "Piggy-Back Registration" shall have the meaning assigned to such term
in Section 3.2(a).

          "Piggy-Back Request" shall have the meaning assigned to such term in
Section 3.2(a).

          "Records" shall have the meaning assigned to such term in Section
3.4(a)(iv).

          "Registered Shares" shall have the meaning assigned to such term in
Section 3.4(a)(xviii).

          "Registration" shall have the meaning assigned to such term in Section
3.2(a).

                                      -2-
<PAGE>

          "Registration Expenses" shall have the meaning assigned to such term
in Section 3.5.

          "SEC" shall mean the United States Securities and Exchange Commission
or any other United States federal agency at the time administering the
Securities Act or the Exchange Act, as applicable, whichever is the relevant
statute.

          "Stockholder Group" shall mean the Stockholder, any Stockholder
Affiliate and any Person with whom any Stockholder or any Affiliate of any
Stockholder is part of a 13D Group.

          "Stockholder Maximum Number" shall have the meaning assigned to such
term in Section 3.1(e).

          "13D Group" shall mean any group of Persons acquiring, holding, voting
or disposing of any Shares which would be required under Section 13(d) of the
Exchange Act and the rules and regulations thereunder to file a statement on
Schedule 13D with the Commission as a "person" within the meaning of Section
13(d)(3) of the Exchange Act.

          General. Unless the context otherwise requires, references in this
Agreement to any "section" or "article" shall mean a section or article of this
Agreement, as the case may be, and the terms "hereof," "hereunder" and "hereto"
and words of similar meaning shall mean this Agreement in its entirety and not
any particular provisions of this Agreement. Unless the context otherwise
requires, the terms defined herein include the singular as well as the plural.

          Unless the context otherwise requires, each reference herein to the
Securities Act, the Exchange Act or Rule 144 (or any other rule, regulation or
form promulgated under either such statute) shall be deemed to mean, as of any
time, such statute, rule, regulation or form as then in effect, after all
amendments thereto, or, if not then in effect, any successor statute, rule,
regulation or form as then in effect, after all amendments thereto.

          Headings. The descriptive headings of the several Sections and
paragraphs of this Agreement are inserted for convenience only, do not
constitute a part of this Agreement and shall not affect in any way the meaning
or interpretation of this Agreement.

                                   ARTICLE II

                         Representations and Warranties
                         ------------------------------

          Representations and Warranties of the Stockholder. The Stockholder
hereby represents and warrants to the Company (i) that it has been duly
organized and is an existing corporation in good standing as a corporation under
the laws of the state of its incorporation, (ii) that it has all requisite
corporate power and authority and has received all requisite approvals
(including any necessary approval of its board of directors) to complete the
transactions contemplated hereby, and (iii) that this Agreement has been duly
authorized, executed and delivered by the Stockholder and constitutes a valid
and binding agreement of the Stockholder enforceable against the Stockholder in
accordance with its terms.

                                      -3-
<PAGE>

          Representations and Warranties of the Company. The Company hereby
represents and warrants to the Stockholder (i) that it has been duly organized
and is an existing corporation in good standing under the laws of the state of
its incorporation, (ii) that it has all requisite corporate power and authority,
and has received all requisite approvals (including any necessary approval of
its Board of Directors) to complete the transactions contemplated hereby and
(iii) this Agreement has been duly authorized, executed and delivered by the
Company and constitutes a valid and binding agreement enforceable against the
Company in accordance with its terms.

                                  ARTICLE III

                              Registration Rights
                              -------------------

          Demand Registrations(a) .  (a) At any time following the date hereof
and prior to the date on which the Company shall have obtained a written opinion
of legal counsel reasonably satisfactory to the Stockholder and addressed to the
Company and the Stockholder to the effect that the Shares may be publicly
offered for sale in the United States by the Stockholder without restriction as
to manner of sale and amount of securities sold and without registration under
the Securities Act (such period, the "Demand Period"), the Stockholder shall
have the right on three (3) occasions to require the Company to file a
registration statement under the Securities Act in respect of all or a portion
of the Shares (so long as such request covers at least 25,000 shares), by
delivering to the Company written notice stating that such right is being
exercised, specifying the number of the Shares to be included in such
registration and describing the intended method of distribution thereof (a
"Demand Request"). As promptly as practicable, but in no event later than thirty
(30) days after the Company receives a Demand Request, the Company shall file
with the SEC and thereafter use its best efforts to cause to be declared
effective promptly a registration statement (including, without limitation, by
means of a shelf registration pursuant to Rule 415 under the Securities Act if
so requested and if the Company is then eligible to use such a registration) (a
"Demand Registration") providing for the registration of such number of Shares
the Stockholder shall have demanded be registered for distribution in accordance
with such intended method of distribution. Notwithstanding anything to the
contrary in this Section 3.1, if the Company is eligible to register the Shares
on Form S-3, the Stockholder shall have the right to require up to two (2) such
registrations per calendar year, each of which registrations shall be a "Demand
Registration" for all purposes of this Agreement, except that such registrations
shall not count as one or more of the three (3) Demand Registrations which the
Stockholder has the right to require pursuant to the first sentence of this
Section 3.1(a). The Stockholder agrees that if a registration on Form S-3 is
available, and if the Stockholder has not yet requested two (2) registrations on
Form S-3 within that calendar year, the Stockholder will not request a
registration on any other form.

          (b) Anything in this Agreement to the contrary notwithstanding, the
Company shall be entitled to postpone and delay, for a reasonable period of
time, not to exceed one hundred twenty (120) days in the case of clauses (i) and
(ii) below, or sixty (60) days in the case of clause (iii) below (each, a
"Blackout Period"), the filing of any Demand Registration if the Company shall
determine that any such filing or the offering of any Shares would (i) in the
good faith judgment of the Board of Directors of the Company, unreasonably
impede, delay or otherwise interfere with any pending or contemplated financing,
acquisition, corporate

                                      -4-
<PAGE>

reorganization or other similar transaction involving the Company, (ii) based
upon advice from the Company's investment banker or financial advisor, adversely
affect any pending or contemplated offering or sale of any class of securities
by the Company, or (iii) in good faith judgment of the Board require disclosure
of material non-public information (other than information relating to an event
described in clause (i) or (ii) of this subsection (b)) which, if disclosed at
such time, would be materially harmful to the interests of the Company and its
stockholders; provided, however, that in the case of a Blackout Period pursuant
to clause (i) or (ii) above, the Blackout Period shall earlier terminate upon
the completion or abandonment of the relevant securities offering or sale,
financing, acquisition, corporate reorganization or other similar transaction;
and provided, further, that in the case of a Blackout Period pursuant to clause
(iii) above, the Company shall give written notice of its determination to
postpone or delay the filing of any Demand Registration and in the case of
clause (iii) above, the Blackout Period shall earlier terminate upon public
disclosure by the Company or public admission by the Company of such material
non-public information or such time as such material non-public information
shall be publicly disclosed without breach of the last sentence of this
subsection (b), and provided, further, that in the case of a Blackout Period
pursuant to clause (i), (ii) or (iii) above, the Company shall furnish to the
Stockholder a certificate of an executive officer of the Company to the effect
that an event permitting a Blackout Period has occurred. Notwithstanding
anything herein to the contrary, the Company shall not exercise pursuant to
Clause (i), (ii) or (iii) of the preceding sentence the right to postpone or
delay the filing of any Demand Registration more than twice in any twelve (12)
month period. Upon notice by the Company to the Stockholder of any such
determination, the Stockholder covenants that it shall keep the fact of any such
notice strictly confidential, and, in the case of a Blackout Period pursuant to
clause (iii) above or Section 3.1(c) below, promptly halt any offer, sale,
trading or transfer by it or any of its Affiliates of any Common Stock for the
duration of the Blackout Period set forth in such notice (or until such Blackout
Period shall be earlier terminated in writing by the Company) and promptly halt
any use, publication, dissemination or distribution of the Demand Registration,
each prospectus included therein, and any amendment or supplement thereto by it
and any of its Affiliates for the duration of the Blackout Period set forth in
such notice (or until such Blackout Period shall be earlier terminated in
writing, by the Company) and, if so directed by the Company, will deliver to the
Company any copies then in such Stockholder's possession of the prospectus
covering such Shares, that was in effect at the time of receipt of such notice.
After the expiration of any Blackout Period and without further request from the
Stockholder, the Company shall effect the filing of the relevant Demand
Registration and shall use its best efforts to cause any such Demand
Registration to be declared effective as promptly as practicable unless the
Stockholder shall have, prior to the effective date of such Demand Registration,
withdrawn in writing its initial request, in which case such withdrawn request
shall not constitute a Demand Registration for purposes of determining the
number of Demand Registrations to which the Stockholder is entitled under this
Agreement.

          (c) Anything in this Agreement to the contrary notwithstanding, in
case a Demand Registration has been filed, if a transaction of the type
specified in Section 3.1(b)(i) has not resulted from actions taken by the
Company, the Company may cause such Demand Registration to be withdrawn and its
effectiveness terminated or may postpone amending or supplementing such Demand
Registration for a reasonable period of time, not to exceed the Blackout Period
applicable to Section 3.1(b)(i); provided, however, that in no event shall a

                                      -5-
<PAGE>

Demand Registration so withdrawn count as one of the Demand Registrations which
the Stockholder is entitled to make pursuant to Section 3.1(a) hereof.

          (d) The Stockholder may withdraw a Demand Request in circumstances
including, but not limited to, the following: if (i) the Company is in material
breach of its obligation hereunder and has not cured such breach after having
received notice thereof and a reasonable opportunity to do so or (ii) the
withdrawal occurs during a Blackout Period.  Any Demand Request withdrawn prior
to such Demand Registration becoming effective pursuant to this subsection (d)
shall not constitute a Demand Registration for the purposes of determining the
number of Demand Registrations to which the Stockholder is entitled but only if
such withdrawal is the first such withdrawal to occur in the calendar year in
question.

          (e) The Company may elect to include in any registration statement
filed pursuant to this Section 3.1 any Common Stock to be issued by it or held
by any of its subsidiaries or by any other stockholders only to the extent such
Common Stock is offered and sold pursuant to, and on the terms and subject to
the conditions of, any underwriting agreement or distribution arrangements
entered into or effected by the Stockholder. In the event that the Company
elects to include in any such registration statement any Common Stock to be
issued by it or held by any of its subsidiaries or by any other stockholders and
a nationally recognized independent investment banking firm selected by the
Company to act as managing underwriter thereof reasonably and in goof faith
shall have advised the Stockholder or the Company in writing that, in its
opinion, the inclusion in the registration statement of some or all of the
Shares sought to be registered by the Company or any other holder of Common
Stock intending to register Common Stock in such registration statement (other
than the Stockholder) creates a substantial risk that the price per share of
Common Stock that the Stockholder will derive from such registration will be
materially and adversely affected or that the number of shares of Common Stock
sought to be registered is a greater number that can reasonably be sold, the
Company shall include in such registration statement such number of shares of
Common Stock as the Company, any such other holder and the Stockholder are so
advised can be sold in such offering without such an effect (the "Stockholder
Maximum Number") as follows and in the following order of priority: (A) first,
such number of shares of Common Stock as the Stockholder intended to be
registered and sold by the Stockholder and (B) second, and to the extent that
the number of shares of Common Stock to be registered under clause (A) is less
than the Stockholder Maximum Number, such number of shares of Common Stock as
the Company and any other holder of Common Stock intending to register Common
Stock in such registration statement (other than the Stockholder) shall have
intended to register which, when added to the number of shares of Common Stock
to be registered under clause (A), is less than or equal to the Stockholder
Maximum Number; provided that if such number exceeds the Stockholder Maximum
Number, the shares of Common Stock of the Company and any other holder of Common
Stock intending to register Common Stock in such registration statement (other
than the Stockholder) will be excluded on a pro rata basis according to the
total number of Shares and shares of Common Stock requested to be registered by
such person.

          (f) The managing underwriter for any Demand Registration shall be
selected by the party or parties making the demand for such registration,
provide that such underwriter shall be reasonably satisfactory to the Company.

                                      -6-
<PAGE>

          "Piggy-Back" Registrations(a) .  (a) If, at any time following the
effective time of the Merger, the Company proposes to register any Common Stock
under the Securities Act on a registration statement on Form S-1, Form S-2 or
Form S-3 (or any equivalent general registration form then in effect other than
pursuant to a Demand Registration under Section 3.1) for purposes of a primary
offering, secondary offering or combined offering of such Common Stock, the
Company shall give prompt written notice to the Stockholder of its intention to
do so. Such notice shall specify, at a minimum, the number of shares of Common
Stock so proposed to be registered, the proposed date of filing of such
registration statement, any proposed means of distribution of such Common Stock,
any proposed managing underwriter or underwriters of such offering and a good
faith estimate by the Company of the proposed maximum offering price thereof, as
such price is proposed to appear on the facing page of such registration
statement. Upon the written direction of the Stockholder (a "Piggy-Back
Request"), given within fifteen (15) business days following the receipt by the
Stockholder of any such written notice (which direction shall specify the number
of the Shares intended to be disposed of by the Stockholder), the Company shall
include in such registration statement (a "Piggy-Back Registration" and,
collectively with a Demand Registration, a "Registration"), subject to the
provisions of Section 3.2 hereof, such numbers of the Shares owned by the
Stockholder as shall be set forth in such Piggy-Back Request.

          (b) In the event that the Company proposes to register Common Stock in
connection with an underwritten offering and a nationally recognized independent
investment banking firm selected by the Company to act as managing underwriter
thereof reasonably and in goof faith shall have advised the Company, any holder
of Common Stock intending to offer such Common Stock in a secondary offering or
combined offering (each, an "Other Holder") or the Stockholder in writing that,
in its opinion, the inclusion in the registration statement of some or all of
the Shares sought to be registered by the Stockholder creates a substantial risk
that the price per share of Common Stock that the Company or any Other Holder
will derive from such registration will be materially and adversely affected or
that the number of shares of Common Stock sought to be registered (including any
shares of Common Stock sought to be registered at the request of the Company and
any Other Holder and those sought to be registered by the Stockholder) is a
greater number that can reasonably be sold, the Company shall include in such
registration statement such number of shares of Common Stock as the Company, any
Other Holder and the Stockholder are so advised can be sold in such offering
without such an effect (the "Company Maximum Number") as follows and in the
following order of priority: (A) first, such number of shares of Common Stock as
the Company intended to be registered and sold by the Company and (B) second, in
the case of a secondary offering or a combined offering and if and to the extent
that the number of shares of Common Stock to be registered under clause (A) is
less than the Company Maximum Number, such number of shares of Common Stock as
the Stockholder and any Other Holder shall have intended to register which, when
added to the number of shares of Common Stock to be registered under clause(A),
is less than or equal to the Company Maximum Number; provided that if such
number exceeds the Company Maximum Number, the shares of Common Stock of the
Stockholder and such Other Holders will be excluded on a pro rata basis
according to the total number of Shares and shares of Common Stock requested to
be registered by such persons.

                                      -7-
<PAGE>

          (c) No Piggy-Back Registration effected under this Section 3.2 shall
be deemed to have been effected pursuant to Section 3.1 hereof or shall release
the Company of its obligations to effect any Demand Registration upon request as
provided under Section 3.1 hereof

          (d) Notwithstanding any request under this Section 3.2, a selling
Holder may elect in writing to withdraw its request for inclusion of its Shares
in any registration statement; provided, however, that (i) such request must be
made in writing prior to the earlier of the execution of the underwriting
agreement or the execution of the custody agreement with respect to such
registration and (ii) such withdrawal shall be irrevocable and, after making
such withdrawal, a Holder shall no longer have any right to include Shares in
the registration as to which such withdrawal was made.

          (e) If, at any time after giving written notice of its intention to
register any Common Stock and prior to the effective date of the registration
statement filed in connection with such registration, the Company shall
determine for any reason not to register or to delay registration of such Common
Stock, the Company may, at its election, give written notice of such
determination to all Holders of record of Shares and (i) in the case of a
determination not to register, shall be relieved of its obligation to register
any Shares in connection with such abandoned registration, without prejudice,
however, to the rights of Holders under Section 3.1 and (ii) in the case of a
determination to delay such registration of the Company's Common Stock, shall be
permitted to delay the registration of such Shares for the same period as the
delay in registering such other Common Stock.

          (f) If, as a result of the proration provisions of this Section 3.2,
any Holder shall not be entitled to include all Shares in a registration that
such Holder has requested to be included, such Holder may elect to withdraw his
request to include Shares in such registration or may reduce the number
requested to be included, provided that the same limitations in subsection (c)
shall apply.

          Additional Agreements.  Anything in this Agreement to the contrary
notwithstanding, if at any time the Company shall obtain a written opinion of
legal counsel reasonably satisfactory to the Stockholder and addressed to the
Company and the Stockholder to the effect that the Shares may be publicly
offered for sale in the United States by the Stockholder without restriction as
to manner of sale and amount of securities sold and without registration under
the Securities Act, the Company shall no longer be obligated to file or maintain
a registration statement with respect to the Shares pursuant to this Agreement.
In such case, the Company shall issue to the Stockholder certificates
representing the Shares without any legend restricting transfer and shall remove
all stop transfer orders relating to the Shares.

          Registration Procedures(a) .  (a) In connection with each registration
statement prepared pursuant to this Agreement, and in accordance with the
intended method or methods of distribution of the Shares as described in such
registration statement, the Company shall, as soon as reasonably practicable
(and, in any event, subject to the terms of this Agreement, including, without
limitation, Section 3.1(a), at or before the time required by applicable laws
and regulations):

                                      -8-
<PAGE>

          (i)   Prepare and file with the SEC a registration statement on an
     appropriate registration form of the SEC, with respect to such Shares,
     which form shall be selected by the Company with the Stockholder's
     reasonable consent, and use its best efforts to cause such registration
     statement to become and remain effective promptly; provided that before
     filing a registration statement or prospectus or any amendments or
     supplements thereto, the Company will furnish to the Stockholder, one
     counsel selected by the Stockholder, the sales or placement agent or
     agents, if any, for the Shares and the managing underwriter or
     underwriters, if any, draft copies of all such documents proposed to be
     filed at least seven (7) days prior to such filing, which documents will be
     subject to the reasonable review of the Stockholder, the sales or placement
     agent or agents, if any, for the Shares and the managing underwriter or
     underwriters, if any, and their respective agents and representatives and
     (x) the Company will not include in any registration statement information
     concerning or relating to the Stockholder to which the Stockholder shall
     reasonably object in writing (unless the inclusion of such information is
     required by applicable law or the regulations of any securities exchange to
     which the Company may be subject), and (y) the Company will not file any
     Demand Registration or amendment thereto or any prospectus or any
     supplement thereto to which the Stockholder shall reasonably object in
     writing;

          (ii)  Furnish without charge to the Stockholder, the sales or
     placement agent or agents, if any, and the managing underwriter or
     underwriters, if any, such number of copies of such registration statement
     and of each amendment and supplement thereto (in each case including all
     exhibits), such number of copies of the summary, preliminary, final,
     amended or supplemented prospectus included in such registration statement
     in conformity with the requirements of the Securities Act and any
     regulations promulgated thereunder and (upon the reasonable request by the
     Stockholder) any documents incorporated therein by reference and such other
     documents as the Stockholder may reasonably request in order to facilitate
     the public sale or other disposition of such Shares (the Company hereby
     consenting to the use in accordance with all applicable law of the
     prospectus or any amendment or supplement thereto by the Stockholder in
     connection with the offering and sale of the Shares covered by the
     prospectus or any amendment or supplement thereto);

          (iii) Use its reasonable best efforts to keep such registration
     statement effective (the "Effective Period"), prepare and file with the SEC
     such amendments, post-effective amendments and supplements to the
     registration statement and the prospectus as may be necessary to maintain
     the effectiveness of the registration for the Effective Period and to cause
     the prospectus (and any amendments or supplements thereto) to be filed
     pursuant to Rules 424 and 430A under the Securities Act and/or any
     successor rules that may be adopted by the SEC, as such rules may be
     amended from time to time; and comply with the provisions of the Securities
     Act with respect to the disposition of all Shares covered by such
     registration statement during the applicable period in accordance with the
     intended method or methods of distribution thereof, as specified in writing
     by the Stockholder;

          (iv)  Except during any Blackout Period, make available for inspection
     by the Stockholder or by any underwriter, attorney, accountant or other
     agent retained by the

                                      -9-
<PAGE>

     Stockholder (collectively, the "Inspectors") financial and other records
     and pertinent corporate documents of the Company (collectively, the
     "Records"), provide the Inspectors with opportunities to discuss the
     business of the Company with its officers and provide opportunities to
     discuss the business of the Company with the independent public accountants
     who have certified its most recent annual financial statements, in each
     case to the extent customary for transactions of the size and type
     intended, as specified by the Stockholder, but only to the extent
     reasonably necessary to enable the Stockholder or any underwriter retained
     by the Stockholder to conduct a "reasonable investigation" for purposes of
     Section 11(a) of the Securities Act; provided, however, the Company may
     require as a condition to making Records available and providing such
     opportunities that the Stockholder execute and deliver a confidentiality
     agreement customary for underwritten offerings. Records which the Company
     determines, in good faith, to be confidential and which it notifies the
     inspectors are confidential shall not be disclosed by the Inspector unless
     (A) the disclosure of such Records is necessary to avoid or correct a
     misstatement of a material fact or omission to state a material fact in the
     Registration, (B) the disclosure of such Records is required by any court
     or governmental body with jurisdiction over the Stockholder or Inspector or
     (C) all of the information contained in such Records has been made
     generally available to the public. The Stockholder agrees that it will,
     upon learning that disclosure of such Records is sought in a court of
     competent jurisdiction or by any governmental body, promptly give prior
     notice to the Company and allow the Company, at its expense, to undertake
     appropriate action to prevent disclosure of those Records deemed
     confidential;

          (v) If requested by the Stockholder, promptly incorporate in a
     prospectus, prospectus supplement or post-effective amendment such
     information as the Stockholder reasonably specifies should be included
     therein, including, without limitation, information relating to the planned
     distribution of Shares, the number of Shares being sold by the Stockholder,
     the name and description of the Stockholder, the offering price of such
     Shares and any discount, commission or other compensation payable in
     respect of the Shares being sold, the purchase price being paid therefor to
     the Stockholder and information with respect to any other terms of the
     underwriting offering of the Shares to be sold in such offering, except to
     the extent that the Company is advised in a written opinion of outside
     counsel that the inclusion of such information is reasonably likely to
     violate applicable Securities laws; and make all required filings of such
     prospectus, prospectus supplement or post-effective amendment promptly
     after notification of the matters to be incorporated in such prospectus,
     prospectus supplement or post-effective amendment;

          (vi) If requested by the Stockholder, and with respect to not more
     than three Demand Registrations effected pursuant to Section 3.1, cause its
     senior management to participate in road shows and other customary
     marketing efforts in connection with the offering and sale of Shares
     pursuant to such registration statement, at such times and in such manner
     as the Company and the Stockholder mutually may determine (and as do not
     unreasonably interfere with the Company's operations); provided that such
     senior management shall not be obligated to devote in excess of six (6)
     days per calendar year to such road shows and other customary marketing
     efforts;

                                      -10-
<PAGE>

          (vii)  Use its best efforts to register or qualify the Shares covered
     by such registration statement under such other securities or "blue sky"
     laws of such jurisdictions in the United States as the Stockholder shall
     reasonably request, keep such registrations or qualifications in effect for
     so long as the registration statement remains in effect, and do any and all
     other acts and things which may be reasonably necessary to enable the
     Stockholder or any underwriter to consummate the public sale or other
     disposition of the Shares in such jurisdictions; provided, however, that in
     no event shall the Company be required to qualify to do business as a
     foreign corporation in any jurisdiction where it is not so qualified; to
     execute or file any general consent to service of process under the laws of
     any jurisdiction; to take any action that would subject it to service of
     process in suits other than those arising out of the offer and sale of the
     Shares covered by the registration statement; or to subject itself to
     taxation in any jurisdiction where it would not otherwise be obligated to
     do so, but for this paragraph (vii);

          (viii) Use its best efforts to cause the Shares to be registered with
     or approved by such other governmental agencies or authorities as may be
     necessary to enable the Stockholder to consummate the public sale or other
     disposition of the Shares;

          (ix)   Use its best efforts to cause all Shares covered by such
     registration statement to be approved for trading on a national interdealer
     quotation system or listed on the securities exchanges on which similar
     securities issued by the Company are then listed or traded;

          (x)    Promptly notify the Stockholder, at any time when a prospectus
     relating to any of the Shares covered by such registration statement is
     required to be delivered under the Securities Act, of the Company's
     becoming aware that the prospectus included in such registration statement,
     as then in effect, includes an untrue statement of a material fact or omits
     to state any material fact required to be stated therein or necessary to
     make the statements therein not misleading in the light of the
     circumstances then existing, and, at the request of the Stockholder,
     promptly prepare and furnish to the Stockholder a reasonable number of
     copies of a prospectus supplemented or amended so that, as thereafter
     delivered to the purchasers of such Shares, such prospectus shall not
     include an untrue statement of a material fact or omit to state a material
     fact required to be stated therein or necessary to make the statements
     therein not misleading in the light of the circumstances then existing;

          (xi)   Promptly notify the Stockholder, the sales or placement agent
     or agents, if any, for the Shares and the managing underwriter or
     underwriters, if any, thereof, after becoming aware thereof, when the
     registration statement or any related prospectus or any amendment or
     supplement has been filed, and, with respect to the registration statement
     or any post-effective amendment, when the same has become effective, (A) of
     any request by the SEC for amendments or supplements to the registration
     Statement or the related prospectus or for additional information, (B) of
     the issuance by the SEC of any stop order suspending the effectiveness of
     the registration statement or the initiation of any proceedings for that
     purpose, (C) of the receipt by the Company of any notification with respect
     to the suspension of the qualification of the Shares for sale in any
     jurisdiction or the initiation of any proceeding for such purpose or (D)
     within the

                                      -11-
<PAGE>

     Effective Period of the happening of any event which makes any statement in
     the registration Statement or any post-effective amendment thereto,
     prospectus or any amendment or supplement thereto, or any document
     incorporated therein by reference untrue in any material respect or which
     requires the making of any changes in the registration statement or post-
     effective amendment thereto or any prospectus or amendment or supplement
     thereto so that they will not contain any untrue statement of a material
     fact or omit to state any material fact required to be stated therein or
     necessary to make the statements therein (in light of the circumstances
     under which they were made) nor misleading;

          (xii)   During the Effective Period, use its best efforts to obtain
     the withdrawal of any order suspending the effectiveness of the
     registration statement or any post-effective amendment thereto;

          (xiii)  Permit the Stockholder if, in its sole judgment exercised in
     good faith, it believes it might be deemed to be a controlling person of
     the Company, to participate in the preparation of such registration
     statement and all discussions between the Company and the SEC or its staff
     with respect to such registration statement, and to require the insertion
     therein of material, furnished to the Company in writing, which in the
     reasonable judgment of the Stockholder should be included,

          (xiv)   Deliver promptly to the Stockholder, upon the Stockholder's
     request, copies of all correspondence between the SEC and the Company, its
     counsel or auditors and all memoranda relating to discussions with the SEC
     or its staff with respect to the registration statement and permit the
     Stockholder to do such investigation, with respect to information contained
     in or omitted from the registration statement, as it deems reasonably
     necessary.  The Stockholder agrees that it will use its best efforts not to
     interfere unreasonably with the Company's business when conducting any such
     investigation;

          (xv)    Provide a transfer agent and registrar for all such Shares
     covered by such registration statement not later than the effective date of
     such registration statement, which transfer agent and registrar may be the
     Company, subject to any applicable law or regulations;

          (xvi)   Cooperate with the Stockholder and the managing underwriter or
     underwriters, if any, to facsimile the timely preparation and delivery of
     certificates representing such Shares to be sold under the registration
     Statement, which certificates shall not bear any restrictive legends except
     as required by law; and, in the case of an underwritten offering, enable
     such Shares to be in such denominations and registered in such names as the
     managing underwriter or underwriters, if any, may request in writing at
     least two (2) business days prior to any sale of the Shares to the
     underwriters;

          (xvii)  Enter into such agreements (including, if the offering is an
     underwritten offering, an underwriting agreement) as are customary in
     transactions of such kind and take such other actions as are reasonably
     necessary in connection therewith in order to expedite or facilitate the
     disposition of such Shares; and (A) make such representations

                                      -12-
<PAGE>

     and warranties with respect to the registration statement, post-effective
     amendment or supplement thereto, prospectus or any amendment or supplement
     thereto, and documents incorporated by reference, if any, to the managing
     underwriter or underwriters, if any, of the Shares and, at the option of
     the Stockholder, make to and for the benefit of such Stockholder the
     representations, warranties and covenants of the Company which are being
     made to the underwriters, in form, substance and scope as are customarily
     made by the Company in connection with offerings of Shares in transactions
     of such kind (representation and warranties by the participating holders
     shall also be made as are customary in agreements of that type); provided
     that the Company shall not be required to make any representations or
     warranties with respect to information specifically provided by a Holder
     for inclusion in the registration documents, (B) obtain an opinion of
     counsel to the Company (which counsel may be internal counsel for the
     Company unless the managing underwriter or underwriters shall otherwise
     reasonably request) in customary form and covering matters of the type
     customarily covered by such an opinion, addressed to such managing
     underwriter or underwriters, if any, and to the Stockholder and dated the
     date of the closing of the sale of the Shares relating thereto; (C) obtain
     a "comfort" letter or letters from the independent certified public
     accountants who have certified the Company's audited financial statements
     that are incorporated by reference in the registration statement which is
     addressed to the Stockholder and the managing underwriter or underwriters,
     if any, and is dated the date of the prospectus used in connection with the
     offering of such Shares and/or the date of the closing of the sale of such
     Shares relating thereto, such letter or letters to be in customary form and
     covering such matters of the type customarily covered by "comfort" letters
     of such type; (D) deliver such documents and certificates as may be
     reasonably requested by the Stockholder and the managing underwriter or
     underwriters, if any, of the Shares to evidence compliance with any
     customary conditions contained in the underwriting agreement or other
     agreement entered into by the Company; and (E) undertake such obligations
     relating to expense reimbursement, indemnification and contribution as
     provided in Sections 3.5 and 3.6 hereof, and

          (xviii)  Comply with all applicable rules and regulations of the SEC
     and generally make available to its security holders an earnings statement
     (which need not be audited), as soon as reasonably practicable but in no
     event later than ninety (90) days after the end of the period of twelve
     (12) months commencing on the first day of any fiscal quarter next
     succeeding each sale by the Stockholder of Shares which have been
     registered pursuant to this Agreement (the "Registered Shares") after the
     date hereof, which earnings statement shall cover such twelve (12) month
     period and shall satisfy the provisions of Section 11(a) of the Securities
     Act and may be prepared in accordance with Rule 158 under the Securities
     Act.

          (b) In the event that the Company would be required, pursuant to
Section 3.4(a)(xi)(D) above, to notify the Stockholder, the sales or placement
agent or agents, if any, for the Shares and the managing underwriter or
underwriters, if any, thereof, the Company shall, subject to the provisions of
Section 3.1(b) hereof, as promptly as practicable, prepare and furnish to the
Stockholder, to each placement or sales agent, if any, and to each underwriter,
if any, a reasonable number of copies of a prospectus supplemented or amended so
that, as thereafter delivered to purchasers of Registered Shares, such
prospectus shall not contain an

                                      -13-
<PAGE>

untrue statement of a material fact or omit to state a material fact required to
be stated therein or necessary to make the statements therein, in the light of
the circumstances under which they were made, not misleading, the Stockholder
agrees that, upon receipt of any notice from the Company pursuant to Section
3.4(a)(xi)(D) hereof, the Stockholder shall, and shall use its best efforts to
cause any sales or placement agent or agents for the Shares and the
underwriters, if any, thereof, to forthwith discontinue disposition of the
Shares until such person shall have received copies of such amended or
supplemented prospectus and, if so directed by the Company, to destroy or to
deliver to the Company all copies, other than permanent file copies, then in its
possession of the prospectus (prior to such amendment or supplement) covering
such Shares as soon as practicable after the Stockholder's receipt of such
notice.

          (c) The Stockholder shall furnish to the Company in writing such
information regarding the Stockholder and its intended method of distribution of
the Shares as the Company may from time to time reasonably request in writing,
but only to the extent that such information is required in order for the
Company to comply with its obligations under all applicable securities and other
laws and to ensure that the prospectus relating to such Shares conforms to the
applicable requirements of the Securities Act and the rules and regulations
thereunder.  The Stockholder shall notify the Company as promptly as practicable
of any inaccuracy or change in information previously furnished by the
Stockholder to the Company or of the occurrence of any event, in either case as
a result of which any prospectus relating to the Shares contains or would
contain an untrue statement of a material fact regarding the Stockholder or its
intended method of distribution of such Shares or omits to state any material
fact regarding the Stockholder or its intended method of distribution of such
Shares required to be stated therein or necessary to make the statements
therein, in light of the circumstances under which they were made, not
misleading, and promptly furnish to the Company any additional information
required to correct and update any previously furnished information or required
so that such prospectus shall not contain, with respect to the Stockholder or
the distribution of the Shares, an untrue statement of a material fact or omit
to state a material fact required to be stated therein or necessary to make the
statements therein, in light of the circumstances under which they were made,
not misleading.

          (d) Each Holder agrees not to effect any public sale or distribution
of any Shares, including any sale pursuant to Rule 144 under the Securities Act,
and not to effect any such public sale or distribution of any other equity
security of the Company or of any security convertible into or exchangeable or
exercisable for any equity security of the Company (in each case, other than as
part of such underwritten public offering) during the ten (10) days prior to,
and during the ninety (90) day period (or such longer period as each Holder
agrees with the underwriter of such offering) beginning on, the consummation of
any underwritten public offering of the Shares covered by a registration
statement referred to in Section 3.2 to the extent such Holder's Registered
Shares are being sold thereunder.

          (e) In the case of any registration under Section 3.1 pursuant to an
underwritten offering, or in the case of a registration under Section 3.2 if the
Company has determined to enter into an underwriting agreement in connection
therewith, all Shares to be included in such registration shall be subject to an
underwriting agreement and no person may participate in such registration unless
such person agrees to sell such person's securities on the basis provided
therein and completes and executes all questionnaires, indemnities, underwriting
agreements and other documents (other than powers of attorney) which must be
executed in connection

                                      -14-
<PAGE>

therewith, and provides such other information to the Company or the underwriter
as may be necessary to register such Holder's Shares, provided, however, that
any requirement to execute any indemnity pursuant to this Section 3.4(e) shall
be limited to a requirement to execute an indemnity with respect to solely the
information provided by such person to the Company or the underwriter for use in
connection with such registration.

          Registration Expenses. All expenses incident to any registration to be
effected hereunder (whether or not the Registration Statement is filed or
declared effective) and incident to the Company's performance of or compliance
with this Agreement, including, without limitation, all registration and filing
fees, fees and expenses of compliance with securities or blue sky laws, printing
expenses, messenger and delivery expenses, National Association of Securities
Dealers, Inc., stock exchange and qualification fees, fees and disbursements of
the Stockholder's counsel and of independent certified public accountants of the
Stockholder, all such expenses being herein called "Registration Expenses," will
be borne by the Stockholder and the Company in the following manner: The
Stockholder shall be responsible for a portion of the Registration Expenses
equal to (i) the total amount of such Registration Expenses multiplied by a
fraction, the numerator of which is the number of Shares being sold by the
Stockholder pursuant to the registration statement at issue, and the denominator
of which is the total number of Shares being sold by all parties selling Shares
pursuant to such registration statement, multiplied by (ii) fifty percent (50%).
The Company shall be responsible for all other Registration Expenses not the
responsibility of the Stockholder pursuant to the immediately preceding
sentence. For the purpose of clarification, any expenses of any special or
extraordinary accounting or audit services required in connection with or
incident to the Company's performance of this Agreement shall not be deemed
"Registration Expenses". In the event that expenses relating to underwriters and
their counsel are not paid by the underwriters, the parties shall agree on
whether or not such expenses are Registration Expenses before the Stockholder or
the Company will reach agreement with the underwriters that such expenses will
not be paid (without right to reimbursement) by the underwriters. To the extent
that any Registration Expenses due to be paid by the Company pursuant to this
Section 3.5 are incurred, assumed or paid by the Stockholder, any sales or
placement agent or agents for the Shares and the underwriters, if any, thereof,
the Company shall reimburse such person for the full amount of the Registration
Expenses so incurred, assumed or paid promptly after receipt of a request
therefore. Each Holder of the Shares being registered shall pay all underwriting
discounts and commissions and any capital gains, income or Transfer taxes, if
any, attributable to the sale of such Shares.

          Indemnification; Contribution.  (a) (a) Indemnification by the
Company. The Company shall, and it hereby agrees to, indemnify and hold harmless
the Stockholder, its officers, directors, partners, employees and agents and
each person who controls the Stockholder (within the meaning of Section 15 of
the Securities Act or Section 20 of the Exchange Act) and the officers,
directors, partners, employees and agents of such controlling person and each
person who participates as a placement or sales agent or as an underwriter in
any offering or sale of the Shares, against any losses, claims, damages or
liabilities to which the Stockholder or such agent or underwriter may become
subject, insofar as such losses, claims, damages or liabilities (or actions or
proceedings in respect thereof) (collectively, "Claims") arise out of or are
based upon an untrue statement or alleged untrue statement of a material fact
curtained in any registration statement, or any preliminary or final prospectus
contained therein, or any amendment or supplement thereto, or any document
incorporated by reference therein, or arise out of or are

                                      -15-
<PAGE>

based upon any omission or alleged omission to state therein a material fact
required to be stated therein or necessary to make the statements therein, in
light of the circumstances in which they were made, not misleading, and the
Company shall, and it hereby agrees to, reimburse the Stockholder or any such
officer, director, partner, employee, agent or underwriter for any legal or
other out-of-pocket expenses reasonably incurred by them in connection with
investigating or defending any such Claims; provided, however, that the Company
shall not be liable to any such person in any such case to the extent that any
such Claims arise out of or are based upon an untrue statement or alleged untrue
statement or omission or alleged omission made in such registration statement,
or preliminary or final prospectus, or amendment or supplement thereto, in
reliance upon and in conformity with written information furnished to the
Company by the Stockholder or any agent, underwriter, officer, director, partner
or employee of the Stockholder expressly for use therein, or by the
Stockholder's failure to furnish the Company, upon request, with the information
with respect to the Stockholder, or any agent, underwriter or officer, director,
partner or employee of the Stockholder, or the Stockholder's intended method of
distribution, that is the subject of the untrue statement or omission or if the
Company shall sustain the burden of proving that the Stockholder or such agent,
officer, director, partner or employee or underwriter sold securities to the
person alleging such Claims without sending or giving, at or prior to the
written confirmation of such sale, a copy of the applicable prospectus
(excluding any documents incorporated by reference therein) or of the applicable
prospectus, as then amended or supplemented (excluding any documents
incorporated by reference therein), if the Company had previously furnished
copies thereof to the Stockholder or such agent, officer, director, partner or
employee or underwriter, and such prospectus corrected such untrue statement or
alleged untrue statement or omission or alleged omission made in such
registration statement.

          (b) Indemnification by the Stockholder and Any Agents or Underwriters.
The Stockholder shall, and hereby agrees, severally and not jointly, to (i)
indemnify and hold harmless the Company, its directors, officers, employees and
controlling persons, if any, and each underwriter, its partners, officers,
directors, employees and controlling persons, if any, in any offering or sale of
Shares, against any Claims to which the Company, its directors, officers,
employees and controlling persons, if any, may become subject, insofar as such
Claims (including any amounts paid in settlement as provided herein), or actions
or proceedings in respect thereof, arise out of or are based upon an untrue
statement or alleged untrue statement of a material fact contained in such
registration statement, or any preliminary or final prospectus contained
therein, or any amendment or supplement thereto, or any document incorporated by
reference therein, or arise out of or are based upon any omission or alleged
omission to state therein a material fact required to be stated therein or
necessary to make the statements therein not misleading, in each case only to
the extent that such untrue statement or alleged untrue statement or omission or
alleged omission was made in reliance upon and in conformity with written
information furnished to the Company by the Stockholder or such agent or
underwriter (as the case may be) expressly for use therein, and (ii) reimburse
the Company for any legal or other out-of-pocket expenses reasonably incurred by
the Company in connection with investigating or defending any such Claim.

          (c) Notice of Claims Etc.  Promptly after receipt by an indemnified
party under subsection (a) or (b) above of written notice of the commencement of
any action or proceeding for which indemnification under subsection (a) or (b)
may be requested, such indemnified parry

                                      -16-
<PAGE>

shall, without regard to whether a claim in respect thereof is to be made
against an indemnifying parry pursuant to the indemnification provisions of, or
as contemplated by, this Section 3.6, notify such indemnifying party and the
underwriter in writing of the commencement of such action or proceeding, but the
omission so to notify the indemnifying party shall not relieve it from any
liability which it may have to any indemnified party in respect of such action
or proceeding on account of the indemnification provisions of or contemplated by
Section 3.6(a) or 3.6(b) hereof unless the indemnifying party was materially
prejudiced by such failure of the indemnified party to give such notice, and in
no event shall such omission relieve the indemnifying parry from any other
liability it may have to such indemnified party. In case any such action or
proceeding shall be brought against any indemnified party and it shall notify an
indemnifying party of the commencement thereof, unless in the reasonable opinion
of outside counsel to the indemnified party a conflict of interest between such
indemnified and indemnifying parties may exist in respect of such claim, such
indemnifying party shall be entitled to participate therein and, to the extent
that it shall determine, jointly with any other indemnifying party similarly
notified, to assume the defense thereof, with counsel reasonably satisfactory to
such indemnified party, and, after notice from the indemnifying party to such
indemnified party of its election so to assume the defense thereof, such
indemnifying party shall not be liable to such indemnified party for any legal
or any other expenses subsequently incurred by such indemnified party in
connection with the defense thereof other than reasonable costs of investigation
(unless such indemnified party reasonably objects to such assumption on the
grounds that there may be defenses available to it which are different from or
in addition to the defenses available to such indemnifying party, in which event
the indemnified party shall have the right to control its defense and shall be
reimbursed by the indemnifying party for the expenses incurred in connection
with retaining one separate counsel). If the indemnifying party is not entitled
to, or elects not to, assume the defense of a claim, it will not be obligated to
pay the fees and expenses of more than one counsel for each indemnified party
with respect to such claim. The indemnifying party will not be subject to any
liability for any settlement made without its consent, which consent shall not
be unreasonably withheld or delayed. No indemnifying party shall, without the
prior written consent of the indemnified party, compromise or consent to entry
of any judgment or enter into any settlement agreement with respect to any
action or proceeding in respect of which indemnification is sought under Section
3.6(a) or (b) (whether or not the indemnified party is an actual or potential
party thereto), unless such compromise, consent or settlement includes an
unconditional term thereof the giving by the claimant or plaintiff to the
indemnified party of a release from all liability in respect of such claim or
litigation and does not subject the indemnified party to any injunctive relief
or other equitable remedy.

          (d) Contribution.  The Stockholder and the Company agree that if, for
any reason, the indemnification provisions contemplated by Sections 3.6(a) or
3.6(b) hereof are unavailable to or are insufficient to hold harmless an
indemnified party in respect of any Claims referred to therein, then each
indemnifying party shall contribute to the amount paid or payable by such
indemnified party as a result of such Claims in such proportion as is
appropriate to reflect the relative fault of, and benefits derived by, the
indemnifying party and the indemnified party, as well as any other relevant
equitable considerations.  The relative fault of such indemnifying party and
indemnified party shall be determined by reference to, among other things,
whether the untrue or alleged untrue statement of a material fact or omission or
alleged omission to state a material fact relates to information supplied by
such indemnifying party or by such indemnified

                                      -17-
<PAGE>

party, and the parties' relative intent, knowledge, access to information and
opportunity to correct or prevent such statement or omission. The relative
benefit derived by the parties shall be determined by reference to the fact that
the Company entered into this Agreement to induce the Stockholder to engage in
the Transaction in which the Shares were acquired. The parties hereto agree that
it would not be just and equitable if contribution pursuant to this Section
3.6(d) were determined (1) by pro rata allocation (even if the Stockholder or
any agents for, or underwriters of, the Shares, or all of them, were treated as
one entity for such purpose); or (ii) by any other method of allocation which
does not take account of the equitable considerations referred to in this
Section 3.6(d). The amount paid or payable by an indemnified party as a result
of the Claims referred to above shall be deemed to include (subject to the
limitations set forth in Section 3.6(c) hereof) any legal or other fees or
expenses reasonably incurred by such indemnified party in connection with
investigating or defending any such action, proceeding or claim. No person
guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of
the Securities Act) shall be entitled to contribution from any person who was
not guilty of such fraudulent misrepresentation.

          (e) Payments.  The indemnification and contribution required by this
Section 3.6 shall be made by periodic payments of the amount thereof during the
course of the investigation or defense, as and when bills are received or
expense, loss, damage or liability is incurred.

          (f) Beneficiaries of Indemnification.  The obligations of the Company
under this Section 3.6 shall be in addition to any liability that it may
otherwise have and shall extend, upon the same terms and conditions, to each
officer, director and partner of the Stockholder and each agent and underwriter
of the Shares and each person, if any, who controls the Stockholder or any such
agent or underwriter within the meaning of the Securities Act; and the
obligations of the Stockholder and any agents or underwriters contemplated by
this Section 3.6, shall be in addition to any liability that the Stockholder or
its respective agent or underwriter may otherwise have and shall extend, upon
the same terms and conditions, to each officer and director of the Company
(including any person who, with his consent, is named in any registration
statement as about to become a director of the Company) and to each person, if
any, who controls the Company within the meaning of the Securities Act.

          (g) Survival.  The indemnity and contribution agreements contained in
this Section 3.6 shall remain in full force and effect, regardless of any
investigation made by or on behalf of the Stockholder, its officers, directors,
partners, attorneys, agents or any person, if any, who controls the Stockholder
as aforesaid, and shall survive the transfer of such Securities by the
Stockholder.

          Underwriters. If any of the Shares are to be sold pursuant to an
underwritten offering, the investment banker or bankers and the managing
underwriter or underwriters thereof shall be selected by the Company except in
the case of a Demand Registration, in which the managing underwriter or
underwriters shall be selected in accordance with Section 3.1(f) hereof.

          Exchange Act Filings; Rule 144; Rule 144A(a) .  (a) The Company
covenants to and with the Stockholder that to the extent it shall be required to
do so under the Exchange Act, the Company shall timely file the reports required
to be filed by it under the Exchange Act or the Securities Act (including, but
not limited to, the reports under Sections 13

                                      -18-
<PAGE>

and 15(d) of the Exchange Act referred to in subparagraph (c)(1) of Rule 144
adopted by the SEC under the Securities Act and the rules and regulations
adopted by the SEC thereunder) and shall take such further action as the
Stockholder may reasonably request, all to the extent required from time to time
to enable the Stockholder to sell Shares without registration under the
Securities Act within the limitations of the exemption provided by Rule 144
under the Securities Act, as such Rule may be amended from time to rime, or any
similar rule or regulation hereafter adopted by the SEC. Upon the request of the
Stockholder, the Company shall deliver to the Stockholder a written statement as
to whether it has complied with such requirements.

          (b) If at any time the Company is not subject to Section 13 or 15(d)
of the Exchange Act and is not exempt from reporting pursuant to Rule 12g3-2(b)
under the Exchange Act, the Company agrees, upon the request of the Stockholder
seeking to transfer Shares in conformity with Rule 144A under the Securities
Act, to furnish to the Stockholder or prospective purchasers of the Shares from
the Stockholder the information required by Rule 144A(d)(4)(i) under the
Securities Act in the manner and at the times contemplated by such Rule.

          (c) The Company covenants to make available "adequate current public
information" concerning the Company within the meaning of Rule 144(c) under the
Securities Act.

          Agreement of the Stockholder. The Stockholder agrees not to, and it
shall cause its subsidiaries nor to, make any sale, transfer or other
disposition of Shares of Company Common Stock except in compliance with the
registration requirements of the Securities Act and the rules and regulations
thereunder, including any exemptions from such registration requirements, or in
accordance with the Terms of this Agreement.

          Legends(a) .  (a) Stop Transfer restrictions will be given to the
Company's Transfer agent(s) with respect to the Shares and there will be placed
on the certificates or instruments representing the Shares, and on any
certificate instrument delivered in substitution therefor, a legend stating in
substance:

          THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
          UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"),
          AND MAY NOT BE SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT PURSUANT
          TO SUCH REGISTRATION OR IN ACCORDANCE WITH AN EXEMPTION FROM THE
          REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.

          (b) The Company hereby agrees that it will cause stop transfer
restrictions to be released with respect to any Shares that are transferred (i)
pursuant to an effective registration statement under the Securities Act, (ii)
pursuant to Rule 144 or 145 under the Securities Act, (iii) in accordance with
the requirements of Rule 903 or 904 of Regulation S under the Securities Act, or
(iv) pursuant to another exemption from the registration requirements of the
Securities Act; provided, however, that in the case of any transfer pursuant to
clause (ii), (iii) or (iv) above, the request for transfer is accompanied by a
written statement signed by the Stockholder confirming

                                      -19-
<PAGE>

compliance with the requirements of the relevant exemption from registration;
and provided, further, that in the case of any transfer pursuant to clause (iv)
above, other than any transfer by the Stockholder to one or more of its direct
or indirect subsidiaries, or among such subsidiaries, or by any such subsidiary
to the Stockholder, the Company shall have received a written opinion of counsel
reasonably satisfactory to the Company, the Company further agrees that it will
cause the legend described in subsection (a) of this Section 3.10 to be removed
in the event of any transfer as provided in clause (i), (ii) or (iii) above.

          Treatment of Convertible Preferred Stock. Shares of Convertible
Preferred Stock owned by the Stockholder shall be treated in all respects in the
same manner as shares of Common Stock owned by the Stockholder for the purposes
of this Agreement. The Company and the Stockholder agree that the Stockholder
shall convert shares of Convertible Preferred Stock registered and sold pursuant
to this Agreement into shares of Common Stock contemporaneously with the closing
of any such sale.

          Other Registration Rights Agreements. The Company will not enter into
any agreement offering registration rights to any person which contains terms
which are materially adverse to, or materially adversely affect the rights of,
the Stockholder under this Agreement unless, prior to entering into such
agreement, it shall offer registration rights on substantially similar terms to
the Stockholder.

                                  ARTICLE IV

                                 Miscellaneous
                                 -------------

          Term of Agreement, Termination. The term of this Agreement shall
commence on the date hereof and such term and this Agreement shall terminate
upon the expiration of the Demand Period; provided, however, that the Company's
obligations hereunder with respect to the Stockholder (and any Transferee who is
a member of the Stockholder Group) under this Agreement shall be suspended at
the option of the Company during any period of material breach by the
Stockholder of the Stockholder Agreement.

          Recapitalizations, Exchanges, Etc. Affecting the Shares. The
provisions of this Agreement shall apply to any and all shares of capital stock
of the Company or any successor or assign of the Company (whether by merger,
consolidation, sale of assets or otherwise) which may be issued in respect of,
in exchange for, or in substitution of the Shares, by reason of a stock
dividend, stock split, stock issuance, reverse stock split, combination,
recapitalization, reclassification, merger, consolidation of otherwise. Upon the
occurrence of any such event, amounts hereunder shall be appropriately adjusted.

          Other Company Securities. The provisions of this Agreement shall apply
mutatis mutandis to any publicly traded security of the Company other than the
Common Stock which may be owned by the Stockholder from time to time during the
Demand Period.

          Amendment; Conflict. This Agreement may not be amended except by a
written instrument, duly executed by the Company and the Stockholder. In the
event of a conflict

                                      -20-
<PAGE>

between this Agreement and the Stockholder Agreement, the terms and provisions
of the Stockholder Agreement shall take precedence and shall control the
resolution of the conflict.

          Notices. Except as otherwise provided in this Agreement, all notices,
requests, claims, demands, waivers and other communications hereunder shall be
in writing and shall be deemed to have been duly given when delivered by hand,
when delivered personally or by courier, three days after being deposited in the
mail (registered or certified mail, postage prepaid, return receipt requested),
or when received by facsimile transmission if promptly confirmed by one of the
foregoing means, as follows:

If to the Company or PNM:

     Public Service Company or New Mexico and
     HVOLT Enterprises, Inc.
     Alvarado Square,
     Albuquerque, NM 87158
     Attention:     Chief Financial Officer
     Fax:           (505) 241-2368

with a copy to:

     Winthrop, Stimson, Putnam & Roberts
     One Battery Park Plaza
     New York, New York  10004
     Attention:     Timothy Michael Toy, Esq.
                    Stephen R. Rusmisel, Esq.
     Fax:           (212) 858-1500

If to the Stockholder or WRI:

     Westar Industries, Inc.
     818 South Kansas Avenue
     Topeka, KS  66612
     Attention:     President
     Fax:           (785) 575-1936

with a copy to:

     LeBoeuf, Lamb, Greene & MacRae, L.L.P.
     125 West 55th Street
     New York, New York  10019
     Attention:     William S. Lamb, Esq.

                                      -21-
<PAGE>

                    Benjamin G. Clark, Esq.
     Fax:           (212) 424-8500

          Integration. This Agreement and the other writings referred to herein
or delivered pursuant hereto which form a part hereof contain the entire
understanding of the parties with respect to its subject matter. This Agreement
supersedes all prior agreements and understandings between the parties with
respect to its subject matter. There are no restrictions, agreements, promises,
representations, warranties, covenants or undertakings with respect to its
subject matter other than those expressly set forth or referred to herein.

          Binding Effect; Benefit. This Agreement shall inure to the benefit of
and be binding upon the parties hereto, and their respective successors and
permitted assigns. Nothing in this Agreement, expressed or implied, is intended
to confer on any person other than the parties hereto, and their respective
successors and permitted assigns, any rights, remedies, obligations or
liabilities under or by reason of this Agreement.

          Assignability(a) .  This Agreement shall not be assignable by any
parry hereto, whether by voluntary act, operation of law or otherwise, except
that the Stockholder may assign this Agreement in whole or in part to up to two
(2) Transferees (as defined in the Stockholder Agreement) who acquire any Shares
pursuant to Section 3.4 of the Stockholder Agreement.

          Counterparts. This Agreement may be executed by the parties hereto in
two or more counterparts, each of which shall be deemed an original, but all of
which together shall constitute one and the same instrument.

          Applicable Law. This Agreement shall be governed by and construed in
accordance with the internal laws of the state of Delaware without giving effect
to principles of conflicts of law.

          Stockholder Agreement. This Agreement shall remain in effect in
accordance with its terms notwithstanding the termination or lapse in
effectiveness of any other agreement between the Stockholder and the Company,
including, but not limited to, the Stockholder Agreement.

          Severability. In the event any one or more of the provisions contained
herein, or the application thereof in any circumstance, is held invalid, illegal
or unenforceable, the validity, legality and enforceability of any such
provision in every other respect and of the remaining provisions contained
herein shall not be affected or impaired, and such unreasonable, unlawful or
unenforceable provision shall be interpreted, revised or applied in the manner
that renders it lawful and enforceable to the fullest extent possible under law.

                                      -22-
<PAGE>

          IN WITNESS WHEREOF, the parties named below have hereto set their
hands as the day and year first above written.

                                    HVOLT ENTERPRISES, INC.

                                    By:
                                       -----------------------------------------

                                    Name:
                                         ---------------------------------------

                                    Title:
                                          --------------------------------------

                                    WESTAR INDUSTRIES, INC.

                                    By:
                                       -----------------------------------------

                                    Name:
                                         ---------------------------------------

                                    Title:
                                          --------------------------------------

                                      -23-

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