November 15, 2004First Health Group Corp • November 15th, 2004 • Hospital & medical service plans
As you are aware, we have entered into a merger agreement with Coventry Health Care, Inc., pursuant to which we will merge into a wholly owned subsidiary of Coventry. In connection with the merger, we are offering to purchase all of First Health’s outstanding options for cash. The price we are offering for all options is equal to the greater of (i) the amount by which $18.75 exceeds the exercise price of the options, if any, or (ii) $1.25, less applicable tax withholdings. The offer applies to all of your options, whether vested or unvested and regardless of exercise price. No options will be purchased unless the conditions to completion of the merger have been satisfied or waived. These and other important terms of the offer are described in the Offer to Purchase that accompanies this letter.
