|
|
|
|
Document Preview Plan of Merger |
||||
|
|
||||
|
Click "Add to Cart" button to purchase document. |
||||
|
|
||||
|
Title: |
Plan of Merger |
|||
|
Entities: |
First Union National Bank; Fleet National Bank; Magnum Hunter Resources Inc.; Society of Petroleum Engineers |
|||
|
Date: |
2001 |
|||
|
Size: |
Preview shows 17KB of 291KB total |
|||
|
Price: |
$70 |
|||
|
ID: |
#1033878 |
|||
|
|
||||
|
||||
|
|
||||
|
Start of Preview |
||||
<SEQUENCE>3
<FILENAME>f8-mergeragmt.txt
<DESCRIPTION>MERGER AGREEMENT AND PLAN TO MERGER
<TEXT>
AGREEMENT
AND
PLAN OF MERGER
Among
MAGNUM HUNTER RESOURCES, INC. ("Parent"),
PINTAIL ENERGY, INC. ("Merger Sub")
And
PRIZE ENERGY CORP. ("Prize")
December 17, 2001
<PAGE>
TABLE OF CONTENTS
Page
ARTICLE 1 DEFINITIONS.........................................................1
1.1 Defined Terms......................................................1
1.2 References and Titles.............................................11
ARTICLE 2 THE MERGER.........................................................12
2.1 The Merger........................................................12
2.2 Effect of the Merger..............................................12
2.3 Governing Instruments, Directors and Officers
of the Surviving Corporation....................................12
2.4 Effect on Securities..............................................12
2.5 Exchange of Certificates..........................................14
2.6 Closing...........................................................17
2.7 Effective Time of the Merger......................................17
2.8 Taking of Necessary Action; Further Action........................17
ARTICLE 3 REPRESENTATIONS AND WARRANTIES OF PRIZE............................18
3.1 Organization......................................................18
3.2 Other Equity Interests............................................18
3.3 Authority and Enforceability......................................18
3.4 No Violations.....................................................19
3.5 Consents and Approvals............................................19
3.6 SEC Documents.....................................................20
3.7 Financial Statements..............................................20
3.8 Capital Structure.................................................20
3.9 No Undisclosed Liabilities........................................21
3.10 Absence of Certain Changes or Events..............................21
3.11 Compliance with Laws, Material Agreements and Permits.............23
3.12 Governmental Regulation...........................................24
3.13 Litigation........................................................24
3.14 No Restrictions...................................................24
3.15 Tax Audits and Settlements........................................24
3.16 Taxes.............................................................24
3.17 Employee Benefit Plans............................................26
3.18 Employment Contracts and Benefits.................................28
3.19 Labor Matters.....................................................28
3.20 Accounts Receivable...............................................29
3.21 Insurance.........................................................29
3.22 Intangible Property...............................................29
3.23 Title to Assets...................................................30
3.24 Oil and Gas Operations............................................30
3.25 Financial and Commodity Hedging...................................30
3.26 Environmental Matters.............................................30
3.27 Books and Records.................................................32
3.28 Brokers...........................................................32
i
<page>
3.29 Vote Required.....................................................32
3.30 Powers of Attorney; Authorized Signatories........................32
3.31 Gas Imbalances....................................................32
3.32 Royalties.........................................................32
3.33 Prepayments.......................................................33
3.34 Reserve Report....................................................33
3.35 State Takeover Laws...............................................33
3.36 Disclosure........................................................33
ARTICLE 4 REPRESENTATIONS AND WARRANTIES OF PARENT AND
MERGER SUB.......................................................33
4.1 Organization......................................................33
4.2 Other Equity Interests............................................33
4.3 Authority and Enforceability......................................33
4.4 No Violations.....................................................34
4.5 Consents and Approvals............................................34
4.6 SEC Documents.....................................................35
4.7 Financial Statements..............................................35
4.8 Capital Structure.................................................35
4.9 No Undisclosed Liabilities........................................36
4.10 Absence of Certain Changes or Events..............................37
4.11 Compliance with Laws, Material Agreements and Permits.............39
4.12 Governmental Regulation...........................................39
4.13 Litigation........................................................39
4.14 Interim Operations of Merger Sub..................................39
4.15 No Restrictions...................................................40
4.16 Tax Audits and Settlements........................................40
4.17 Taxes.............................................................40
4.18 Employee Benefit Plans............................................41
4.19 Employment Contracts and Benefits.................................44
4.20 Labor Matters.....................................................44
4.21 Accounts Receivable...............................................44
4.22 Insurance.........................................................44
4.23 Intellectual Property.............................................45
4.24 Title to Assets...................................................45
4.25 Oil and Gas Operations............................................46
4.26 Financial and Commodity Hedging...................................46
4.27 Environmental Matters.............................................46
4.28 Books and Records.................................................47
4.29 Funding...........................................................47
4.30 Brokers...........................................................48
4.31 Vote Required.....................................................48
4.32 Gas Imbalances....................................................48
4.33 Royalties.........................................................48
4.34 Prepayments.......................................................48
ii
<page>
4.35 Rights Agreement..................................................48
4.36 Reserve Report....................................................48
4.37 State Takeover Laws...............................................48
4.38 Disclosure........................................................49
ARTICLE 5 COVENANTS..........................................................49
5.1 Conduct of Business by Parent Pending Closing.....................49
5.2 Conduct of Business by Prize Pending Closing......................52
5.3 Access to Assets, Personnel and Information.......................55
5.4 No Solicitation...................................................57
5.5 Prize Stockholders Meeting........................................58
5.6 Parent Stockholders Meeting.......................................59
5.7 Registration Statement and Proxy Statement/Prospectus.............59
5.8 Stock Exchange Listing............................................61
5.9 Additional Arrangements...........................................61
5.10 Agreements of Affiliates..........................................61
5.11 Public Announcements..............................................61
5.12 Notification of Certain Matters...................................62
5.13 Payment of Expenses...............................................62
5.14 Registration Rights...............................................62
5.15 Indemnification and Insurance.....................................62
5.16 Prize Employees...................................................64
5.17 Severance Plan....................................................64
5.18 Termination of Certain Agreement..................................64
5.19 Parent Board of Directors.........................................65
5.20 Registration Statements Relating to Prize Warrants................65
5.21 Bank Credit Agreements............................................65
ARTICLE 6 CONDITIONS.........................................................65
6.1 Conditions to Each Party's Obligation to Effect the Merger........65
6.2 Conditions to Obligations of Parent and Merger Sub................67
6.3 Conditions to Obligation of Prize.................................68
ARTICLE 7 TERMINATION........................................................69
7.1 Termination Rights................................................69
7.2 Effect of Termination.............................................70
7.3 Fees and Expenses.................................................71
ARTICLE 8 MISCELLANEOUS......................................................71
8.1 Nonsurvival of Representations and Warranties.....................71
8.2 Amendment.........................................................71
8.3 Notices...........................................................71
8.4 Counterparts......................................................72
8.5 Severability......................................................73
8.6 Entire Agreement; No Third Party Beneficiaries....................73
8.7 Applicable Law....................................................73
8.8 No Remedy in Certain Circumstances................................73
8.9 Assignment........................................................73
8.10 Waivers...........................................................73
8.11 Confidentiality Agreement.........................................74
iii
<page>
8.12 Incorporation.....................................................74
SCHEDULES
Prize Disclosure Schedule
Parent Disclosure Schedule
EXHIBITS
5.10 - Form of Affiliate Letter
5.14 - Registration Rights Agreement
iv
<PAGE>
AGREEMENT AND PLAN OF MERGER
This Agreement and Plan of Merger (this "Agreement") is made and entered
into as of the 17th day of December, 2001, by and among Magnum Hunter Resources,
Inc., a Nevada corporation ("Parent"); Pintail Energy, Inc., a Texas corporation
("Merger Sub"); and Prize Energy Corp., a Delaware corporation ("Prize").
Recitals
A. The board of directors of each of Parent and Prize has determined
that it is in the best interests of its respective stockholders to approve the
strategic alliance of Parent and Prize by means of the merger of Prize with and
into Merger Sub upon the terms and subject to the conditions set forth in this
Agreement.
B. For federal income tax purposes, it is intended that such merger qualify
as a "reorganization" within the meaning of Section 368(a) of the Internal
Revenue Code of 1986, as amended.
C. Parent, Merger Sub and Prize (the "Parties") desire to make certain
representations, warranties, covenants and agreements in connection with such
merger and also to prescribe various conditions to such merger.
NOW, THEREFORE, for and in consideration of the recitals and the mutual
covenants and agreements set forth in this Agreement, the Parties agree as
follows:
ARTICLE 1
DEFINITIONS
1.1 Defined Terms. As used in this Agreement, each of the following terms
has the meaning set forth below:
"Affiliate" means, with respect to any Person, each other Person that
directly or indirectly (through one or more intermediaries or otherwise)
controls, is controlled by, or is under common control with such Person. The
term "control" (including the terms "controlled by" and "under common control
with") means the possession, directly or indirectly, of the actual power to
direct or cause the direction of the management policies of a Person, whether
through the ownership of stock, by contract, credit arrangement or otherwise.
"Agreement" means this Agreement and Plan of Merger, as amended,
supplemented or modified from time to time.
"Alternative Proposal" has the meaning specified in Section 5.4(b).
<page>
"AMEX" means The American Stock Exchange.
"Articles of Merger" means the articles of merger, prepared and executed in
accordance with the applicable provisions of the TBCA, filed with the Secretary
of State of Texas to effect the Merger in Texas.
"Capital Expenditures" means costs and expenses associated with the
acquisition, development or redevelopment of Oil and Gas Interests or any other
fixed or capital assets of the Prize Companies or Parent Companies, as
applicable, which pursuant to GAAP are required to be capitalized and subject to
depletion, depreciation or amortization, including Drilling or Completion
Expenditures.
"Capital Project" means any project, transaction, agreement, arrangement or
series of transactions, agreements or arrangements to which a Person is a party
involving a Capital Expenditure, including (a) any purchase, lease, acquisition,
developmental drilling, completion and/or recompletion of proved developed
producing, proved developed non-producing, or proved undeveloped Oil and Gas
Interests; (b) any purchase, lease or acquisition and/or exploratory drilling of
Oil and Gas Interests; and (c) any purchase, lease, acquisition, construction,
development or completion of transportation, compression, gathering or related
facilities for oil, gas or related products or the provision of services,
|
End of Preview |
Home Intelligence Services Subscriptions News About Us