-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, I5wukpy36O2mayT9xGpiHmsqum7ArAVZa7JbRzwomSrpXP/pPUCnHbQFSz0kjWJ7 T7lL6qme0ggR5KWmwlF0mg== 0000950134-98-009911.txt : 19981228 0000950134-98-009911.hdr.sgml : 19981228 ACCESSION NUMBER: 0000950134-98-009911 CONFORMED SUBMISSION TYPE: SC 13D/A PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 19981223 GROUP MEMBERS: CHARLES W TATE GROUP MEMBERS: DAN H BLANKS GROUP MEMBERS: DAVID B DENIGER GROUP MEMBERS: ENERGY INVESTMENT PARTNERSHIP NO 1 GROUP MEMBERS: HICKS THOMAS O GROUP MEMBERS: JACK D FURST GROUP MEMBERS: JOHN R MUSE GROUP MEMBERS: LAWRENCE D STUART JR GROUP MEMBERS: MICHAEL J LEVITT SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: COHO ENERGY INC CENTRAL INDEX KEY: 0000908797 STANDARD INDUSTRIAL CLASSIFICATION: CRUDE PETROLEUM & NATURAL GAS [1311] IRS NUMBER: 752488635 STATE OF INCORPORATION: TX FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D/A SEC ACT: SEC FILE NUMBER: 005-43919 FILM NUMBER: 98774909 BUSINESS ADDRESS: STREET 1: 14785 PRESTON RD STREET 2: STE 860 CITY: DALLAS STATE: TX ZIP: 75240 BUSINESS PHONE: 2147748300 MAIL ADDRESS: STREET 1: 14785 PRESTON RD STREET 2: SUITE 860 CITY: DALLAS STATE: TX ZIP: 75240 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: HICKS THOMAS O CENTRAL INDEX KEY: 0000938201 STANDARD INDUSTRIAL CLASSIFICATION: [] IRS NUMBER: 459720171 FILING VALUES: FORM TYPE: SC 13D/A BUSINESS ADDRESS: STREET 1: 200 CRESCENT COURT STREET 2: SUITE 1600 CITY: DALLAS STATE: TX ZIP: 75201 BUSINESS PHONE: 2147407300 MAIL ADDRESS: STREET 1: 200 CRESCENT COURT STREET 2: SUITE 1600 CITY: DALLAS STATE: TX ZIP: 75201 SC 13D/A 1 AMENDMENT NO. 2 TO SCHEDULE 13D 1 - -------------------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 SCHEDULE 13D/A UNDER THE SECURITIES EXCHANGE ACT OF 1934 (AMENDMENT NO. 2) COHO ENERGY, INC. (Name of Issuer) COMMON STOCK, $0.01 PAR VALUE (Title of Class of Securities) 19248110 (CUSIP Number) THOMAS O. HICKS 200 CRESCENT COURT SUITE 1600 DALLAS, TEXAS 75201 (214) 740-7300 (Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications) Copy to: MICHAEL D. WORTLEY VINSON & ELKINS L.L.P. 3700 TRAMMELL CROW CENTER 2001 ROSS AVENUE DALLAS, TEXAS 75201 (214) 220-7732 DECEMBER 18, 1998 (Date of Event which Requires Filing of this Statement on Schedule 13D/A) - -------------------------------------------------------------------------------- 2 CUSIP NO. 19248110 Schedule 13D/A Page 2 of 16 - -------------------------------------------------------------------------------- 1 Name of Reporting Person, S.S. or I.R.S. Identification No. of Above Person Energy Investment Partnership No. 1 - -------------------------------------------------------------------------------- 2 Check the appropriate box if a member of a group (a) [ ] (b) [ ] - -------------------------------------------------------------------------------- 3 SEC Use Only - -------------------------------------------------------------------------------- 4 Source of Funds WC - -------------------------------------------------------------------------------- 5 Check Box if Disclosure of Legal Proceedings is Required [ ] Pursuant to Items 2(d) or 2(e) - -------------------------------------------------------------------------------- 6 Citizenship or Place of Organization State of Texas - -------------------------------------------------------------------------------- Number of Shares 7 Sole Voting Power 0 - -------------------------------------------------------------------------------- Beneficially 8 Shared Voting Power Owned 2,182,084 - -------------------------------------------------------------------------------- by Each Reporting 9 Sole Dispositive Power 0 - -------------------------------------------------------------------------------- Person With 10 Shared Dispositive Power 2,182,084 - -------------------------------------------------------------------------------- 11 Aggregate Amount Beneficially Owned by Each Reporting Person 2,182,084 - -------------------------------------------------------------------------------- 12 Check Box if the Aggregate Amount in Row (11) Excludes [ ] Certain Shares - -------------------------------------------------------------------------------- 13 Percent of Class Represented by Amount in Row (11) 8.5% - -------------------------------------------------------------------------------- 14 Type of Reporting Person PN - -------------------------------------------------------------------------------- 3 CUSIP NO. 19248110 Schedule 13D/A Page 3 of 16 - -------------------------------------------------------------------------------- 1 Name of Reporting Person, S.S. or I.R.S. Identification No. of Above Person Thomas O. Hicks - -------------------------------------------------------------------------------- 2 Check the appropriate box if a member of a group (a) [ ] (b) [ ] - -------------------------------------------------------------------------------- 3 SEC Use Only - -------------------------------------------------------------------------------- 4 Source of Funds PF - -------------------------------------------------------------------------------- 5 Check Box if Disclosure of Legal Proceedings is Required [ ] Pursuant to Items 2(d) or 2(e) - -------------------------------------------------------------------------------- 6 Citizenship or Place of Organization State of Texas - -------------------------------------------------------------------------------- Number of Shares 7 Sole Voting Power 0 - -------------------------------------------------------------------------------- Beneficially 8 Shared Voting Power Owned 2,182,084 - -------------------------------------------------------------------------------- by Each Reporting 9 Sole Dispositive Power 0 - -------------------------------------------------------------------------------- Person With 10 Shared Dispositive Power 2,182,084 - -------------------------------------------------------------------------------- 11 Aggregate Amount Beneficially Owned by Each Reporting Person 2,182,084 - -------------------------------------------------------------------------------- 12 Check Box if the Aggregate Amount in Row (11) Excludes [ ] Certain Shares - -------------------------------------------------------------------------------- 13 Percent of Class Represented by Amount in Row (11) 8.5% - -------------------------------------------------------------------------------- 14 Type of Reporting Person IN - -------------------------------------------------------------------------------- 4 CUSIP NO. 19248110 Schedule 13D/A Page 4 of 16 - -------------------------------------------------------------------------------- 1 Name of Reporting Person, S.S. or I.R.S. Identification No. of Above Person John R. Muse - -------------------------------------------------------------------------------- 2 Check the appropriate box if a member of a group (a) [ ] (b) [ ] - -------------------------------------------------------------------------------- 3 SEC Use Only - -------------------------------------------------------------------------------- 4 Source of Funds PF - -------------------------------------------------------------------------------- 5 Check Box if Disclosure of Legal Proceedings is Required [ ] Pursuant to Items 2(d) or 2(e) - -------------------------------------------------------------------------------- 6 Citizenship or Place of Organization State of Texas - -------------------------------------------------------------------------------- Number of Shares 7 Sole Voting Power 0 - -------------------------------------------------------------------------------- Beneficially 8 Shared Voting Power Owned 2,182,084 - -------------------------------------------------------------------------------- by Each Reporting 9 Sole Dispositive Power 0 - -------------------------------------------------------------------------------- Person With 10 Shared Dispositive Power 2,182,084 - -------------------------------------------------------------------------------- 11 Aggregate Amount Beneficially Owned by Each Reporting Person 2,182,084 - -------------------------------------------------------------------------------- 12 Check Box if the Aggregate Amount in Row (11) Excludes [ ] Certain Shares - -------------------------------------------------------------------------------- 13 Percent of Class Represented by Amount in Row (11) 8.5% - -------------------------------------------------------------------------------- 14 Type of Reporting Person IN - -------------------------------------------------------------------------------- 5 CUSIP NO. 19248110 Schedule 13D/A Page 5 of 16 - -------------------------------------------------------------------------------- 1 Name of Reporting Person, S.S. or I.R.S. Identification No. of Above Person Charles W. Tate - -------------------------------------------------------------------------------- 2 Check the appropriate box if a member of a group (a) [ ] (b) [ ] - -------------------------------------------------------------------------------- 3 SEC Use Only - -------------------------------------------------------------------------------- 4 Source of Funds PF - -------------------------------------------------------------------------------- 5 Check Box if Disclosure of Legal Proceedings is Required [ ] Pursuant to Items 2(d) or 2(e) - -------------------------------------------------------------------------------- 6 Citizenship or Place of Organization State of Texas - -------------------------------------------------------------------------------- Number of Shares 7 Sole Voting Power 0 - -------------------------------------------------------------------------------- Beneficially 8 Shared Voting Power Owned 2,182,084 - -------------------------------------------------------------------------------- by Each Reporting 9 Sole Dispositive Power 0 - -------------------------------------------------------------------------------- Person With 10 Shared Dispositive Power 2,182,084 - -------------------------------------------------------------------------------- 11 Aggregate Amount Beneficially Owned by Each Reporting Person 2,182,084 - -------------------------------------------------------------------------------- 12 Check Box if the Aggregate Amount in Row (11) Excludes [ ] Certain Shares - -------------------------------------------------------------------------------- 13 Percent of Class Represented by Amount in Row (11) 8.5% - -------------------------------------------------------------------------------- 14 Type of Reporting Person IN - -------------------------------------------------------------------------------- 6 CUSIP NO. 19248110 Schedule 13D/A Page 6 of 16 - -------------------------------------------------------------------------------- 1 Name of Reporting Person, S.S. or I.R.S. Identification No. of Above Person Jack D. Furst - -------------------------------------------------------------------------------- 2 Check the appropriate box if a member of a group (a) [ ] (b) [ ] - -------------------------------------------------------------------------------- 3 SEC Use Only - -------------------------------------------------------------------------------- 4 Source of Funds PF - -------------------------------------------------------------------------------- 5 Check Box if Disclosure of Legal Proceedings is Required [ ] Pursuant to Items 2(d) or 2(e) - -------------------------------------------------------------------------------- 6 Citizenship or Place of Organization State of Texas - -------------------------------------------------------------------------------- Number of Shares 7 Sole Voting Power 0 - -------------------------------------------------------------------------------- Beneficially 8 Shared Voting Power Owned 2,182,084 - -------------------------------------------------------------------------------- by Each Reporting 9 Sole Dispositive Power 0 - -------------------------------------------------------------------------------- Person With 10 Shared Dispositive Power 2,182,084 - -------------------------------------------------------------------------------- 11 Aggregate Amount Beneficially Owned by Each Reporting Person 2,182,084 - -------------------------------------------------------------------------------- 12 Check Box if the Aggregate Amount in Row (11) Excludes [ ] Certain Shares - -------------------------------------------------------------------------------- 13 Percent of Class Represented by Amount in Row (11) 8.5% - -------------------------------------------------------------------------------- 14 Type of Reporting Person IN - -------------------------------------------------------------------------------- 7 CUSIP NO. 19248110 Schedule 13D/A Page 7 of 16 - -------------------------------------------------------------------------------- 1 Name of Reporting Person, S.S. or I.R.S. Identification No. of Above Person Lawrence D. Stuart, Jr. - -------------------------------------------------------------------------------- 2 Check the appropriate box if a member of a group (a) [ ] (b) [ ] - -------------------------------------------------------------------------------- 3 SEC Use Only - -------------------------------------------------------------------------------- 4 Source of Funds PF - -------------------------------------------------------------------------------- 5 Check Box if Disclosure of Legal Proceedings is Required [ ] Pursuant to Items 2(d) or 2(e) - -------------------------------------------------------------------------------- 6 Citizenship or Place of Organization State of Texas - -------------------------------------------------------------------------------- Number of Shares 7 Sole Voting Power 0 - -------------------------------------------------------------------------------- Beneficially 8 Shared Voting Power Owned 2,182,084 - -------------------------------------------------------------------------------- by Each Reporting 9 Sole Dispositive Power 0 - -------------------------------------------------------------------------------- Person With 10 Shared Dispositive Power 2,182,084 - -------------------------------------------------------------------------------- 11 Aggregate Amount Beneficially Owned by Each Reporting Person 2,182,084 - -------------------------------------------------------------------------------- 12 Check Box if the Aggregate Amount in Row (11) Excludes [ ] Certain Shares - -------------------------------------------------------------------------------- 13 Percent of Class Represented by Amount in Row (11) 8.5% - -------------------------------------------------------------------------------- 14 Type of Reporting Person IN - -------------------------------------------------------------------------------- 8 CUSIP NO. 19248110 Schedule 13D/A Page 8 of 16 - -------------------------------------------------------------------------------- 1 Name of Reporting Person, S.S. or I.R.S. Identification No. of Above Person Michael J. Levitt - -------------------------------------------------------------------------------- 2 Check the appropriate box if a member of a group (a) [ ] (b) [ ] - -------------------------------------------------------------------------------- 3 SEC Use Only - -------------------------------------------------------------------------------- 4 Source of Funds PF - -------------------------------------------------------------------------------- 5 Check Box if Disclosure of Legal Proceedings is Required [ ] Pursuant to Items 2(d) or 2(e) - -------------------------------------------------------------------------------- 6 Citizenship or Place of Organization State of Texas - -------------------------------------------------------------------------------- Number of Shares 7 Sole Voting Power 0 - -------------------------------------------------------------------------------- Beneficially 8 Shared Voting Power Owned 2,182,084 - -------------------------------------------------------------------------------- by Each Reporting 9 Sole Dispositive Power 0 - -------------------------------------------------------------------------------- Person With 10 Shared Dispositive Power 2,182,084 - -------------------------------------------------------------------------------- 11 Aggregate Amount Beneficially Owned by Each Reporting Person 2,182,084 - -------------------------------------------------------------------------------- 12 Check Box if the Aggregate Amount in Row (11) Excludes [ ] Certain Shares - -------------------------------------------------------------------------------- 13 Percent of Class Represented by Amount in Row (11) 8.5% - -------------------------------------------------------------------------------- 14 Type of Reporting Person IN - -------------------------------------------------------------------------------- 9 CUSIP NO. 19248110 Schedule 13D/A Page 9 of 16 - -------------------------------------------------------------------------------- 1 Name of Reporting Person, S.S. or I.R.S. Identification No. of Above Person Dan H. Blanks - -------------------------------------------------------------------------------- 2 Check the appropriate box if a member of a group (a) [ ] (b) [ ] - -------------------------------------------------------------------------------- 3 SEC Use Only - -------------------------------------------------------------------------------- 4 Source of Funds PF - -------------------------------------------------------------------------------- 5 Check Box if Disclosure of Legal Proceedings is Required [ ] Pursuant to Items 2(d) or 2(e) - -------------------------------------------------------------------------------- 6 Citizenship or Place of Organization State of Texas - -------------------------------------------------------------------------------- Number of Shares 7 Sole Voting Power 0 - -------------------------------------------------------------------------------- Beneficially 8 Shared Voting Power Owned 2,182,084 - -------------------------------------------------------------------------------- by Each Reporting 9 Sole Dispositive Power 0 - -------------------------------------------------------------------------------- Person With 10 Shared Dispositive Power 2,182,084 - -------------------------------------------------------------------------------- 11 Aggregate Amount Beneficially Owned by Each Reporting Person 2,182,084 - -------------------------------------------------------------------------------- 12 Check Box if the Aggregate Amount in Row (11) Excludes [ ] Certain Shares - -------------------------------------------------------------------------------- 13 Percent of Class Represented by Amount in Row (11) 8.5% - -------------------------------------------------------------------------------- 14 Type of Reporting Person IN - -------------------------------------------------------------------------------- 10 CUSIP NO. 19248110 Schedule 13D/A Page 10 of 16 - -------------------------------------------------------------------------------- 1 Name of Reporting Person, S.S. or I.R.S. Identification No. of Above Person David B. Deniger - -------------------------------------------------------------------------------- 2 Check the appropriate box if a member of a group (a) [ ] (b) [ ] - -------------------------------------------------------------------------------- 3 SEC Use Only - -------------------------------------------------------------------------------- 4 Source of Funds PF - -------------------------------------------------------------------------------- 5 Check Box if Disclosure of Legal Proceedings is Required [ ] Pursuant to Items 2(d) or 2(e) - -------------------------------------------------------------------------------- 6 Citizenship or Place of Organization State of Texas - -------------------------------------------------------------------------------- Number of Shares 7 Sole Voting Power 0 - -------------------------------------------------------------------------------- Beneficially 8 Shared Voting Power Owned 2,182,084 - -------------------------------------------------------------------------------- by Each Reporting 9 Sole Dispositive Power 0 - -------------------------------------------------------------------------------- Person With 10 Shared Dispositive Power 2,182,084 - -------------------------------------------------------------------------------- 11 Aggregate Amount Beneficially Owned by Each Reporting Person 2,182,084 - -------------------------------------------------------------------------------- 12 Check Box if the Aggregate Amount in Row (11) Excludes [ ] Certain Shares - -------------------------------------------------------------------------------- 13 Percent of Class Represented by Amount in Row (11) 8.5% - -------------------------------------------------------------------------------- 14 Type of Reporting Person IN - -------------------------------------------------------------------------------- 11 Schedule 13D/A Page 11 of 16 This Amendment No. 2 to Schedule 13D is being filed by Energy Investment Partnership No. 1, a Texas general partnership (the "Purchaser"), Thomas O. Hicks, a United States citizen ("Hicks"), John R. Muse, a United States citizen ("Muse"), Charles W. Tate, a United States citizen ("Tate"), Jack D. Furst, a United States citizen ("Furst"), Lawrence D. Stuart, Jr., a United States citizen ("Stuart"), Michael J. Levitt, a United States citizen ("Levitt"), Dan H. Blanks, a United States citizen ("Blanks"), and David B. Deniger, a United States citizen ("Deniger"). The Purchaser, Hicks, Muse, Tate, Furst, Stuart, Levitt, Blanks and Deniger are collectively referred to herein as the "Reporting Persons." This Amendment to Schedule 13D amends and supplements Items 3, 4 and 6 contained in the Reporting Persons' original Schedule 13D dated May 18, 1998, as amended by Amendment No. 1 to Schedule 13D dated August 21, 1998. Items 1, 2, 5 and 7 of the original Schedule 13D, as previously amended, remain unchanged. Each Reporting Person disclaims responsibility for the completeness and accuracy of the information contained in this statement concerning the other Reporting Persons. ITEM 3. SOURCES AND AMOUNT OF FUNDS OR OTHER CONSIDERATION. The Purchaser utilized $15,530,802 of its working capital to purchase the 2,182,084 shares of common stock, par value $0.01 per share (the "Common Stock"), beneficially owned by the Purchaser (the "Shares") and pay related fees and expenses. This working capital was provided by capital contributions from Hicks, Muse, Tate, Furst, Stuart, Levitt, Blanks and Deniger. Each of Hicks, Muse, Tate, Furst, Stuart, Levitt, Blanks and Deniger obtained the funds contributed to the Purchaser from personal funds. On August 21, 1998, HM 4 Coho, L.P., a Texas limited partnership (the "Partnership"), and the Company entered into a Stock Purchase Agreement (the "Stock Purchase Agreement") which provided that the Partnership would purchase (the "Stock Purchase") 41,666,666 shares of Common Stock (the "Additional Shares") for $249,999,996 by wire transfer of immediately available funds (the "Purchase Price"). Originally, the Stock Purchase was structured such that the Partnership could purchase the Additional Shares in two allotments in separate closings. On November 4, 1998, the Stock Purchase Agreement was amended and restated, among other things, to effect the Stock Purchase through a single closing (as so amended and restated, the "Amended and Restated Stock Purchase Agreement"). On December 18, 1998, the Partnership terminated the Amended and Restated Stock Purchase Agreement, subject to the Company's right to cure its breach of certain representations and warranties caused by the occurrence of a Material Adverse Effect as defined in the Amended and Restated Stock Purchase Agreement. Hicks, Muse Fund IV, LLC, a Texas limited liability company (the "LLC"), of which Hicks is the sole member, is the general partner of the general partner of the general partner of the Partnership. Because Hicks is the sole member of the LLC, Hicks will also be considered to be a beneficial owner of the Additional Shares if the Stock Purchase is consummated. The Partnership will utilize its working capital to pay the Purchase Price and to pay related fees and expenses if the Stock Purchase is consummated. The Partnership expects to obtain its working capital funds from the capital contributions of its partners. Upon termination of the Amended and Restated Stock Purchase Agreement, the Partnership began negotiations with the Company to purchase (the "Alternative Stock Purchase") 62,500,000 shares of Common Stock for $4.00 per share, the consummation of which would be subject to, among other things, the effectiveness of certain amendments to the Company's credit agreement and indenture. ITEM 4. PURPOSE OF THE TRANSACTION. The purpose of the Stock Purchase(or, if the Stock Purchase is not consummated and the Partnership enters into an agreement with the Company to purchase 62,500,000 shares of Common Stock for $4.00 per share, the Alternative Stock Purchase) is to implement the Partnership's plan to obtain a majority interest in the Company for investment purposes. (a) Except as described herein, neither the Partnership nor the Reporting Persons have any current plans to purchase additional shares of Common Stock in open market or private transactions from shareholders of the Company or to purchase additional shares of Common Stock or Common Stock equivalents directly from the Company. Any change with respect to these plans shall be reported promptly in an amendment to the Purchaser's Schedule 13D. (b), (c), (e), (f), (g), (h), (i) and (j) Neither the Partnership nor the Reporting Persons have current plans or proposals which relate to or would result in (i) an extraordinary corporate transaction, such as a merger, reorganization or liquidation, involving the Company or any of its subsidiaries, (ii) a sale or transfer of a material amount of assets of the Company or any of its subsidiaries, (iii) any material change in the present capitalization or dividend policy of the Company, (iv) any other material change to the Company's business or corporate structure, (v) subject to the matters discussed in paragraphs (d) and (e) of this Item 4, any changes in the Company's articles of incorporation or bylaws, or other actions which may impede the acquisition or control of the Company by any person, (vi) 12 Schedule 13D/A Page 12 of 16 the Common Stock ceasing to be authorized to be quoted on the NASDAQ National Market System, (vii) the Common Stock becoming eligible for termination of registration pursuant to Section 12(g)(4) of the Securities Exchange Act of 1934 (the "Exchange Act"), or (viii) any action similar to any of the foregoing. Any change with respect to these plans shall be promptly reported in an amendment to the Purchaser's Schedule 13D. (d) On May 12, 1998, the Company and the Purchaser entered into a Shareholder Agreement (the "Shareholder Agreement") which provided for (i) certain demand and piggyback registration rights with respect to the shares of Common Stock owned at such time or in the future by the Purchaser or its transferees who become a party to the Shareholder Agreement and (ii) the appointment or election and annual nomination to the Board of Directors of the Company and the Board's Compensation Committee and Audit Committee and any Executive Committee of two designees of the Purchaser (the "Purchaser Designees") and any of its transferees who become a party to the Shareholder Agreement, subject to certain Common Stock ownership requirements. Pursuant to the Shareholder Agreement, the Purchaser Designees, Muse and Stuart, were added to the Board of Directors on May 12, 1998, to serve until the next annual meeting of shareholders of the Company. There are currently seven directors serving on the Company's Board of Directors, including the Purchaser's Designees. Pursuant to the Amended and Restated Stock Purchase Agreement the Company and the Purchaser agreed to enter into an Amended and Restated Shareholder Agreement (the "Amended and Restated Shareholder Agreement") upon the closing of the purchase and sale of the Additional Shares. The Amended and Restated Shareholder Agreement would provide for (i) certain demand and piggyback registration rights with respect to the Additional Shares and any other shares of Common Stock owned in the future by the Purchaser and the Partnership and their transferees who become a party to the Amended and Restated Shareholder Agreement (each, a "Holder") (see Item 6) and (ii) upon the purchase and sale of the Additional Shares, the increase in the size of the Board of Directors of the Company to nine members and, in addition to the existing Purchaser Designees, the appointment or election and annual nomination to the Board of Directors of the Company two designees of the Partnership or the Partnership's transferees who become a party to the Amended and Restated Shareholder Agreement (the "Partnership Designees," together with the Purchaser Designees the "Holder Designees"). The Company would appoint a Partnership Designee and a Purchaser Designee serving on the Board of Directors of the Company to be members of the Board of Directors' Compensation Committee and Audit Committee, and, if established, the Executive Committee of the Board of Directors. The Purchaser's right to designate directors of the Company would continue as long as the Purchaser and its affiliates own at least 1,000,000 shares of Common Stock. The right of the Partnership to designate directors of the Company would continue as long as the Partnership and its affiliates or any single transferee of the Partnership (and affiliates thereof) who becomes a party to the Amended and Restated Shareholder Agreement own at least 5% of the of the outstanding shares of Common Stock. In addition, if the Purchaser or any single transferee or group of related transferees of the Purchaser ceases to own at least 1,000,000 shares of Common Stock and the Partnership and its affiliates or any single transferee or group of related transferees of the Partnership or its affiliates continue to own at least 5% of the outstanding shares of Common Stock, the Purchaser would cease to have the right to designate any Holder Designees and the Partnership would have the right to designate all four Holder Designees, unless or until such time as the Purchaser's right to designate directors of the Company has terminated as provided in the preceding sentence. To the extent that the Company's proxy statement for any annual meeting of shareholders of the Company includes a recommendation regarding the election of any other nominees to the Company's Board of Directors, the Company would include a recommendation of its Board of Directors that shareholders of the Company also vote in favor of the Holder Designees. If the Stock Purchase is not consummated and the Partnership enters into an agreement with the Company to purchase 62,500,000 shares of Common Stock for $4.00 per share, the Company and the Purchaser would likely enter into an amended and restated shareholder agreement with terms substantially similar to the terms described above. 13 Schedule 13D/A Page 13 of 16 ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT TO SECURITIES OF THE ISSUER. The following summaries of the Amended and Restated Stock Purchase Agreement and the Financial Advisory Agreement are qualified in their entirety by reference to such agreements, copies of which are attached hereto as Exhibits 10.2 and 10.3, respectively, and incorporated herein by reference. Amended and Restated Stock Purchase Agreement. On August 21, 1998, the Partnership and the Company entered into the Stock Purchase Agreement (see Item 4) pursuant to which the Partnership agreed to purchase the Additional Shares in two allotments for the Purchase Price, subject to certain terms and conditions. On November 4, 1998, the Stock Purchase Agreement was amended and restated, to, among other things, effect the Stock Purchase through a single closing. The Partnership terminated the Amended and Restated Stock Purchase Agreement on December 18, 1998, subject to the Company's right to cure its breach of certain representations and warranties caused by the occurrence of a Material Adverse Effect as defined in the Amended and Restated Stock Purchase Agreement. Amended and Restated Shareholder Agreement. Pursuant to the terms of the Amended and Restated Stock Purchase Agreement, the Purchaser and the Company agreed to enter into the Amended and Restated Shareholder Agreement (see Item 4) upon the closing. In addition to the provisions of the Amended and Restated Shareholder Agreement described in Item 4, the Amended and Restated Shareholder Agreement would provide each Holder with unlimited demand registrations (in firm commitment underwritten offerings) and unlimited piggyback registration rights with respect to the Additional Shares and all shares of Common Stock acquired by each Holder in the future, subject to certain requirements. With certain exceptions, the Company would pay all costs of such registration except for underwriting discounts and commissions and transfer taxes. The Company would have certain rights to delay the filing of a registration statement, and parties to other registration rights agreements with the Company would have a right, under certain circumstances, to sell shares of Common Stock in connection with registrations involving shares owned by each Holder as long as the managing underwriter or underwriters would advise each Holder in writing that the inclusion of such securities would not materially and adversely affect the price or success of the offering. Each Holder under the Amended and Restated Shareholder Agreement would agree therein until May 11, 2000, not to (i) deposit any shares of Common Stock in a voting trust or grant any proxy with respect to any shares of Common Stock to any person not designated by the Company (other than another Holder or any affiliate or partner of a Holder) or subject any shares of Common Stock to any arrangement or agreement with respect to the voting of such shares of Common Stock, (ii) act with one or more persons (other than another Holder or any affiliate or partner of a Holder) as a partnership, limited partnership, syndicate or "group" (as such term is used in Section 13(d)(3) of the Exchange Act) for the purpose of acquiring, holding, voting or disposing of shares of Common Stock, (iii) directly or indirectly, sell or transfer, or offer to sell or transfer, (A) shares of Common Stock that represent more than 10% of the fully diluted common equity of the Company to any single person or any "Affiliated Group" (with respect to any person, such person and each Affiliate Associate (within the meaning of Rule 12b-2 promulgated under the Exchange Act) of such person and each other person with whom such person is acting "as a partnership, limited partnership, syndicate, or other group for the purpose of acquiring, holding or disposing of" shares (within the meaning of Section 13(d)(3) of the Exchange Act)) or (B) shares of Common Stock that represent more than 5% of the outstanding Common Stock of the Company to any holder of 10% of the outstanding shares of Common Stock. The foregoing prohibition would be subject to certain exceptions. Financial Advisory Agreement. On August 21, 1998, the Company and Hicks, Muse & Co. Partners, L.P., a Texas limited partnership ("HMCo"), entered into a Financial Advisory Agreement (the "Financial Advisory Agreement"). On November 4, 1998, the Financial Advisory Agreement was amended and restated, to, among other things, effect the Stock Purchase through a single closing (as so amended and restated, the "Amended and Restated Financial Advisory Agreement"). HM Partners, Inc., in which Hicks owns a majority equity interest, is the general partner of HMCo and Hicks, Muse, Tate, Furst, Stuart, Levitt, Blanks and Deniger are HMCo's limited partners. Pursuant to the Amended and Restated Financial Advisory Agreement, HMCo has been engaged to render financial advisory services to the Company and its subsidiaries in connection with the negotiation of the Partnership's purchase of the Additional Shares and also to render financial advisory, investment banking and other similar services to the Company with respect to any future proposals for (i) the acquisition by any person or group of beneficial ownership of (A) a majority of the combined voting power of the then outstanding securities of the Company entitled to vote generally in the election of directors, or (B) a majority of the Company's outstanding capital stock, (ii) a reorganization, recapitalization, merger, consolidation or similar business combination or transaction or sale or other disposition (whether in a single transaction or series of related transactions) of all or substantially all of the assets of the Company and its subsidiaries taken as a whole (unless the holders of the outstanding securities of the Company entitled to vote generally in the election of directors prior to such transaction continue to own at least a majority of the securities entitled to vote generally in the election of directors of the entity resulting from such transaction upon the completion of such transaction), (iii) the sale of oil and gas properties of the Company or its 14 Schedule 13D/A Page 14 of 16 subsidiaries involving consideration of $100 million or more, (iv) any acquisition by the Company or its subsidiaries involving consideration of $100 million or more of (A) a majority of the voting power of the then outstanding voting securities of any corporation entitled to voting generally in the election of directors or (B) a majority of the ownership interests of an entity other than a corporation (whether by merger, tender offer, exchange offer or similar extraordinary transaction), or (v) any acquisition by the Company or its subsidiaries of oil and gas properties or other assets involving consideration of $100 million or more (collectively, "Additional Transactions"). The term of the Amended and Restated Financial Advisory Agreement will continue until the earlier to occur of November 4, 2008 or the date on which the Partnership and its affiliates cease to own beneficially, directly or indirectly, at least 5% of the outstanding equity securities of the Company or its successors. Pursuant to the terms of the Amended and Restated Financial Advisory Agreement, the Company paid HMCo a transaction fee of $1,250,000 concurrently with the execution of the Stock Purchase Agreement on August 21, 1998. If the Stock Purchase is consummated, the Company will pay to HMCo a transaction fee in the amount of $8,750,000 on the date of the closing. Under the Financial Advisory Agreement, HMCo is entitled to receive additional compensation at then current market rates for financial advisory, investment banking and other similar services rendered to the Company in connection with Additional Transactions if the Company engages a financial advisor in connection with such transactions. 15 Schedule 13D/A Page 15 of 16 SIGNATURES After due inquiry and to the best of my knowledge and belief, the undersigned certify that the information set forth in this statement is true, complete and correct. Dated: December 22, 1998 ENERGY INVESTMENT PARTNERSHIP NO. 1 By: /s/ David W. Knickel -------------------------------------- David W. Knickel Attorney-in-Fact Dated: December 22, 1998 THOMAS O. HICKS /s/ David W. Knickel ----------------------------------------- By: David W. Knickel, Attorney-in-Fact Dated: December 22, 1998 JOHN R. MUSE /s/ David W. Knickel ----------------------------------------- By: David W. Knickel, Attorney-in-Fact Dated: December 22, 1998 CHARLES W. TATE /s/ David W. Knickel ----------------------------------------- By: David W. Knickel, Attorney-in-Fact Dated: December 22, 1998 JACK D. FURST /s/ David W. Knickel ----------------------------------------- By: David W. Knickel, Attorney-in-Fact 16 Schedule 13D/A Page 16 of 16 Dated: December 22, 1998 LAWRENCE D. STUART, JR. /s/ David W. Knickel ----------------------------------------- By: David W. Knickel, Attorney-in-Fact Dated: December 22, 1998 MICHAEL J. LEVITT /s/ David W. Knickel ----------------------------------------- By: David W. Knickel, Attorney-in-Fact Dated: December 22, 1998 DAN H. BLANKS /s/ David W. Knickel ----------------------------------------- By: David W. Knickel, Attorney-in-Fact Dated: December 22, 1998 DAVID B. DENIGER /s/ David W. Knickel ----------------------------------------- By: David W. Knickel, Attorney-in-Fact -----END PRIVACY-ENHANCED MESSAGE-----