Securities Purchase Agreement (2007)Full Document 

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SECURITIES PURCHASE AGREEMENT

among

UNIVERSAL AMERICAN FINANCIAL CORP.

and

THE SEVERAL INVESTORS PARTY HERETO

Dated as of May 7, 2007




TABLE OF CONTENTS

 

Page

ARTICLE 1

CERTAIN DEFINITIONS

3

 

 

 

Section 1.1

Certain Definitions

3

 

 

 

Section 1.2

Interpretive Provision

10

 

 

 

ARTICLE 2

ISSUANCE AND PURCHASE OF CONVERTIBLE SHARES

10

 

 

 

Section 2.1

Issuance and Purchase of Convertible Shares

10

 

 

 

Section 2.2

Deliveries

11

 

 

 

Section 2.3

Closing

11

 

 

 

ARTICLE 3

INVESTOR REPRESENTATIONS AND WARRANTIES

12

 

 

 

Section 3.1

Organization, Good Standing, Qualification and Power

12

 

 

 

Section 3.2

Authority; Execution and Delivery; Enforceability

12

 

 

 

Section 3.3

Non-contravention

12

 

 

 

Section 3.4

Consents

12

 

 

 

Section 3.5

Information Supplied

13

 

 

 

Section 3.6

Brokers

13

 

 

 

Section 3.7

Acquisition for Investment

13

 

 

 

Section 3.8

Disclosure of Information

13

 

 

 

Section 3.9

Restricted Securities

13

 

 

 

ARTICLE 4

REPRESENTATIONS AND WARRANTIES OF PARENT

14

 

 

 

Section 4.1

Organization, Good Standing, Qualification and Power

14

 

 

 

Section 4.2

Authority; Execution and Delivery; Enforceability

14

 

 

 

Section 4.3

Non-contravention

15

 

 

 

Section 4.4

Consents

15

 

 

 

Section 4.5

Capitalization of Parent; Parent Subsidiaries

16

 

 

 

Section 4.6

Parent SEC Documents

18

 

 

 

Section 4.7

No Undisclosed Liabilities

19

 

 

 

Section 4.8

Title to Tangible Personal Property

19

 

 

 

Section 4.9

Absence of Certain Developments

19

 

 

 

Section 4.10

Governmental Authorizations; Licenses; Etc

20

 

 

 

Section 4.11

Litigation

20

 

i




 

Section 4.12

Taxes

20

 

 

 

Section 4.13

Employee Matters

21

 

 

 

Section 4.14

Employee Benefit Plans

22

 

 

 

Section 4.15

Intellectual Property Rights

22

 

 

 

Section 4.16

Contracts

22

 

 

 

Section 4.17

Insurance

23

 

 

 

Section 4.18

Real Property

23

 

 

 

Section 4.19

Transactions With Affiliates

23

 

 

 

Section 4.20

Financing

23

 

 

 

Section 4.21

Information Supplied

24

 

 

 

Section 4.22

Required Parent Shareholder Approval

24

 

 

 

Section 4.23

Valid Issuance of Parent Shares

24

 

 

 

Section 4.24

Anti-Takeover Statutes

25

 

 

 

Section 4.25

Exemption from Registration

25

 

 

 

Section 4.26

Brokers

25

 

 

 

Section 4.27

Fairness Opinion; Acknowledgement

26

 

 

 

Section 4.28

Merger Agreement

26

 

 

 

ARTICLE 5

COVENANTS AND AGREEMENTS

26

 

 

 

Section 5.1

Access; Documents and Information

26

 

 

 

Section 5.2

Charter Amendment

27

 

 

 

Section 5.3

Conduct of Business by Parent.

27

 

 

 

Section 5.4

Closing Documents

29

 

 

 

Section 5.5

Commercially Reasonable Efforts; Further Assurances

30

 

 

 

Section 5.6

Public Announcements

31

 

 

 

Section 5.7

Availability of Shares

31

 

 

 

Section 5.8

Certificates

32

 

 

 

Section 5.9

Certain Claims

32

 

 

 

Section 5.10

Certain Tax Matters

32

 

 

 

Section 5.11

Preparation of the Proxy Statement; Parent Shareholder Meeting

32

 

ii




 

Section 5.12

Anti-Takeover Statutes

34

 

 

 

Section 5.13

Nasdaq National Market Listing

34

 

 

 

Section 5.14

Legends

34

 

 

 

Section 5.15

Use of Proceeds

35

 

 

 

Section 5.16

Exchange of Series A Preferred Stock for Series B Preferred Stock

35

 

 

 

ARTICLE 6

CONDITIONS TO CLOSING

37

 

 

 

Section 6.1

Mutual Conditions

37

 

 

 

Section 6.2

Conditions to the Obligations of Parent

37

 

 

 

Section 6.3

Conditions to the Obligations of the Investors

38

 

 

 

Section 6.4

Frustration of Closing Conditions

40

 

 

 

ARTICLE 7

TERMINATION

40

 

 

 

Section 7.1

Termination

40

 

 

 

Section 7.2

Effect of Termination

41

 

 

 

ARTICLE 8

MISCELLANEOUS

41

 

 

 

Section 8.1

Survival

41

 

 

 

Section 8.2

Indemnification

42

 

 

 

Section 8.3

Notices

44

 

 

 

Section 8.4

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