Agreement and Plan of Reorganization (2017)Full Document 

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EXECUTION VERSION

AGREEMENT AND PLAN OF REORGANIZATION

by and among

UNITEDHEALTH GROUP INCORPORATED,

SPARTAN MERGER SUB 1, INC.,

SPARTAN MERGER SUB 2, LLC,

and

SURGICAL CARE AFFILIATES, INC.

Dated as of January 7, 2017


TABLE OF CONTENTS

ARTICLE I THE OFFER

Section 1.1

The Offer

2

Section 1.2

Schedule TO; Offer Documents; Registration Statement

5

Section 1.3

Company Actions

7

ARTICLE II THE MERGERS

Section 2.1

The Mergers

9

Section 2.2

Closing

9

Section 2.3

Effective Times

9

Section 2.4

Effects of the Mergers

10

Section 2.5

Organizational Documents of the Surviving Company

10

Section 2.6

Directors; Manager

10

Section 2.7

Officers

10

ARTICLE III CONVERSION OF SHARES; EXCHANGE OF CERTIFICATES

Section 3.1

Effect on Capital Stock

11

Section 3.2

Exchange of Certificates

12

Section 3.3

Company Options, Company RSU Awards and ESPP

15

ARTICLE IV REPRESENTATIONS AND WARRANTIES OF THE COMPANY

Section 4.1

Organization

18

Section 4.2

Capital Stock

18

Section 4.3

Corporate Authority Relative to this Agreement; No Violation

20

Section 4.4

Reports and Financial Statements

22

Section 4.5

Internal Controls and Procedures

23

Section 4.6

No Undisclosed Liabilities

23

Section 4.7

Compliance with Law; Permits

23

Section 4.8

Certain Regulatory Matters

24

Section 4.9

Environmental Laws and Regulations

27

Section 4.10

Employee Benefit Plans

27

Section 4.11

Absence of Certain Changes or Events

29

Section 4.12

Investigations; Litigation

29

Section 4.13

Information Supplied

29

Section 4.14

Tax Matters

29

Section 4.15

Employment and Labor Matters

31

Section 4.16

Intellectual Property

32

Section 4.17

Property

34

Section 4.18

Insurance

35

Section 4.19

Opinion of Financial Advisor

35

Section 4.20

Material Contracts

35

Section 4.21

Privacy and Data Security

37

Section 4.22

Affiliate Transactions

39

Section 4.23

Finders or Brokers

39

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Section 4.24

State Takeover Statutes

39

Section 4.25

DGCL 251(h)

39

Section 4.26

No Other Representations

39

ARTICLE V REPRESENTATIONS AND WARRANTIES OF PARENT AND MERGER SUBS

Section 5.1

Organization

40

Section 5.2

Capitalization

40

Section 5.3

Corporate Authority Relative to this Agreement; No Violation

41

Section 5.4

Reports and Financial Statements

42

Section 5.5

Internal Controls and Procedures

43

Section 5.6

No Undisclosed Liabilities

44

Section 5.7

Compliance with Law

44

Section 5.8

Absence of Certain Changes or Events

44

Section 5.9

Investigations; Litigation

44

Section 5.10

Information Supplied

45

Section 5.11

Finders or Brokers

45

Section 5.12

Sufficiency of Funds

45

Section 5.13

Merger Subs

45

Section 5.14

Ownership of Company Common Stock

45

Section 5.15

Tax Matters

45

Section 5.16

No Other Representations

46

ARTICLE VI COVENANTS AND AGREEMENTS

Section 6.1

Conduct of Business

46

Section 6.2

Access

49

Section 6.3

No Solicitation

50

Section 6.4

Employee Matters

53

Section 6.5

Regulatory Approvals; Efforts

55

Section 6.6

Takeover Statutes

57

Section 6.7

Public Announcements

57

Section 6.8

Indemnification and Insurance

57

Section 6.9

Control of Operations

59

Section 6.10

Section 16 Matters

59

Section 6.11

Transaction Litigation

59

Section 6.12

Exchange Matters

59

Section 6.13

Rule 14d-10 Matters

59

Section 6.14

Certain Tax Matters

60

Section 6.15

Additional Agreements

60

Section 6.16

Advice of Changes

60

Section 6.17