1
EXHIBIT 99.2
PACIFICARE HEALTH SYSTEMS, INC.
0000 Xxxx Xxxxxx Xxxxx
Xxxxx Xxx, XX 00000-0000
February 8, 2001
UniHealth Foundation
0000 Xxxxxxxxx Xxxxx
Xxxxxxx, XX 00000
Attention: Xxxxx X. Xxxxxxxxx
Re: Modification of Stock Purchase Agreement
Ladies and Gentlemen:
This letter (the "Letter Agreement") is written to confirm our agreement
regarding the modification of the Stock Purchase Agreement dated May 4, 1999 by
and between PacifiCare Health Systems, Inc. ("PacifiCare") and UniHealth
Foundation ("UniHealth") (the "Stock Purchase Agreement"). Capitalized terms
used but not defined herein shall have the meanings given to them in the Stock
Purchase Agreement.
Under the Stock Purchase Agreement, PacifiCare agreed to purchase, and UniHealth
agreed to sell most of the shares of PacifiCare Common Stock held by UniHealth,
subject to and in accordance with the terms of the Stock Purchase Agreement. The
parties have agreed upon certain modifications to the Stock Purchase Agreement.
The Stock Purchase Agreement is hereby modified as follows:
1. PacifiCare agrees that, notwithstanding subsections 7.1(d) and 7.1(k) of the
Stock Purchase Agreement, UniHealth may sell up to One Million (1,000,000)
UniHealth Shares (the "Saleable Shares") in one or more open market sales
or sales made pursuant to Rule 144 of the Securities Act of 1933, as
amended; provided, however, that UniHealth may not sell more than Two
Hundred Fifty Thousand (250,000) UniHealth Shares on any given day. In
connection with the modification to the Stock Purchase Agreement provided
for in this paragraph 1, PacifiCare waives enforcement of any breach of
the covenant set forth in subsection 7.1(1) of the Stock Purchase
Agreement.
2. PacifiCare waives any right of first refusal that it may have with respect
to the Saleble Shares, provided that any such sale or disposition closes
within thirty (30) days following February 9, 2001 and; provided, further,
however, that UniHealth may not sell more than Two Hundred Fifty Thousand
(250,000) UniHealth Shares on any given day. Any shares that UniHealth does
not sell pursuant to this waiver shall remain subject to the right of first
refusal under the Stock Purchase Agreement.
3. In consideration for the right to sell the Saleable Shares granted in
paragraph 1 above, UniHealth agrees that it will not exercise any right it
may have pursuant to Section 9.2 of the Stock Purchase Agreement to sell to
PacifiCare any of the Final Shares, and further
2
acknowledges and agrees that, upon execution of this Letter Agreement, any
right to request that PacifiCare purchase the Final Shares will be
terminated and extinguished in its entirety.
4. Each of PacifiCare and UniHealth agree that, notwithstanding the definition
of Final Closing Date set forth in Section 1.1(i) of the Stock Purchase
Agreement, upon execution of this Letter Agreement, the Final Closing shall
have occurred.
5. Except as expressly stated herein, the Stock Purchase Agreement is and
shall remain unmodified and in full force and effect.
6. The Stock Purchase Agreement and any other agreements entered into
contemporaneously therewith, together with this Letter Agreement, set forth
the entire agreement of the parties and are intended to supersede all prior
negotiations, understandings, and agreements and cannot be altered,
amended, changed or modified in any respect or particular unless each such
alteration, amendment, change or modification shall have been agreed to by
PacifiCare and UniHealth and reduced to writing in its entirety and signed
and delivered by each party.
7. This Letter Agreement may be executed in counterparts, each of which
together shall comprise one and the same instrument.
Please confirm your acceptance to the terms and provisions of this agreement by
signing below.
Very truly yours,
PACIFICARE HEALTH SYSTEMS, INC.
By: Xxxxxx X. Xxxxxxxxxx
--------------------------
Its: Secretary, General Counsel
--------------------------
AGREED AND ACCEPTED:
UNIHEALTH FOUNDATION
By: Xxxxx X. Xxxxxxxxx
-----------------------
Its: Chairman & CEO Date: February 8, 2001
----------------------- ----------------
2
