UNDERWRITING AGREEMENT LEXMARK INTERNATIONAL, INC. $350,000,000 5.900% Senior Notes due 2013 $300,000,000 6.650% Senior Notes due 2018 Underwriting Agreement
Exhibit 1.1
$650,000,000
LEXMARK INTERNATIONAL, INC.
$350,000,000 5.900% Senior Notes due 2013
$300,000,000 6.650% Senior Notes due 2018
$300,000,000 6.650% Senior Notes due 2018
May 19, 2008
X.X. Xxxxxx Securities Inc.
Citigroup Global Markets Inc.
As Representatives of the
several Underwriters listed
in Schedule 1 hereto
c/o X.X. Xxxxxx Securities Inc.
000 Xxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Citigroup Global Markets Inc.
As Representatives of the
several Underwriters listed
in Schedule 1 hereto
c/o X.X. Xxxxxx Securities Inc.
000 Xxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Ladies and Gentlemen:
Lexmark International, Inc., a Delaware corporation (the “Company”), proposes to issue and
sell to the several Underwriters listed in Schedule 1 hereto (the “Underwriters”), for whom you are
acting as representatives (the “Representatives”), $350,000,000 principal amount of its 5.900%
Senior Notes due 2013 and $300,000,000 principal amount of its 6.650% Senior Notes due 2018
(collectively, the “Securities”). The Securities will be issued pursuant to an Indenture to be
dated as of May 22, 2008 (the “Indenture”) between the Company and The Bank of New York Trust
Company, N.A., as trustee (the “Trustee”).
The Company hereby confirms its agreement with the several Underwriters concerning the
purchase and sale of the Securities, as follows:
1. Registration Statement. The Company has prepared and filed with the Securities and
Exchange Commission (the “Commission”) under the Securities Act of 1933, as amended, and the rules
and regulations of the Commission thereunder (collectively, the “Securities Act”), a registration
statement on Form S-3 (File No. 333-151002), including a prospectus, relating to the Securities.
Such registration statement, as amended at the time it becomes effective, including the
information, if any, deemed pursuant to Rule 430A, 430B or 430C under the Securities Act to be part
of the registration statement at the time of its effectiveness (“Rule 430 Information”), is
referred to herein as the “Registration Statement”; and as used herein, the term “Preliminary
Prospectus” means each prospectus included in such registration statement (and any amendments
thereto) before it becomes effective, any prospectus filed with the Commission pursuant to Rule
424(a) under the Securities Act and the prospectus included in the Registration Statement at the
time of its effectiveness that omits Rule 430 Information, and the term “Prospectus” means the
prospectus in the form first used (or made available upon request of
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purchasers pursuant to Rule 173 under the Securities Act) in connection with confirmation of
sales of the Securities. If the Company has filed an abbreviated registration statement pursuant
to Rule 462(b) under the Securities Act (the “Rule 462 Registration Statement”), then any reference
herein to the term “Registration Statement” shall be deemed to include such Rule 462 Registration
Statement. Any reference in this Agreement to the Registration Statement, any Preliminary
Prospectus or the Prospectus shall be deemed to refer to and include the documents incorporated by
reference therein pursuant to Item 12 of Form S-3 under the Securities Act, as of the effective
date of the Registration Statement or the date of such Preliminary Prospectus or the Prospectus, as
the case may be and any reference to “amend”, “amendment” or “supplement” with respect to the
Registration Statement, any Preliminary Prospectus or the Prospectus shall be deemed to refer to
and include any documents filed after such date under the Securities Exchange Act of 1934, as
amended, and the rules and regulations of the Commission thereunder (collectively, the “Exchange
Act”) that are deemed to be incorporated by reference therein. Capitalized terms used but not
defined herein shall have the meanings given to such terms in the Registration Statement and the
Prospectus.
At or prior to the time when sales of the Securities were first made (the “Time of Sale”), the
Company had prepared the following information (collectively with the information referred to in
the next succeeding clause, the “Time of Sale Information”): a Preliminary Prospectus dated May 19,
2008, and each “free-writing prospectus” (as defined pursuant to Rule 405 under the Securities Act)
listed on Annex B hereto as constituting part of the Time of Sale Information.
2. Purchase of the Securities by the Underwriters.
(a) The Company agrees to issue and sell the Securities to the several Underwriters as
provided in this Agreement, and each Underwriter, on the basis of the representations,
warranties and agreements set forth herein and subject to the conditions set forth herein,
agrees, severally and not jointly, to purchase from the Company the respective principal
amount of Securities set forth opposite such Underwriter’s name in Schedule 1 hereto at a
price equal to 99.230% of the principal amount thereof with respect
to the Senior Notes due 2013 and 99.080% of the principal amount
thereof with respect to the Senior Notes due 2018, in each case, plus accrued interest, if any, from May
22, 2008 to the Closing Date (as defined below). The Company will not be obligated to
deliver any of the Securities except upon payment for all the Securities to be purchased as
provided herein.
(b) The Company understands that the Underwriters intend to make a public offering of
the Securities as soon after the effectiveness of this Agreement as in the judgment of the
Representatives is advisable, and initially to offer the Securities on the terms set forth
in the Prospectus. The Company acknowledges and agrees that the Underwriters may offer and
sell Securities to or through any affiliate of an Underwriter and that any such affiliate
may offer and sell Securities purchased by it to or through any Underwriter.,
(c) Payment for and delivery of the Securities will be made at the offices of Xxxxx
Xxxx & Xxxxxxxx, 000 Xxxxxxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000 at 10:00 A.M., New York City
time, on May 22, 2008, or at such other time or place on the same or such other date, not
later than the fifth business day thereafter, as the Representatives
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and the Company may agree upon in writing. The time and date of such payment and
delivery is referred to herein as the “Closing Date”.
(d) Payment for the Securities shall be made by wire transfer in immediately available
funds to the account(s) specified by the Company to the Representatives against delivery to
the nominee of The Depository Trust Company, for the account of the Underwriters, of one or
more global notes representing the Securities (collectively, the “Global Note”), with any
transfer taxes payable in connection with the sale of the Securities duly paid by the
Company. The Global Note will be made available for inspection by the Representatives not
later than 1:00 P.M., New York City time, on the business day prior to the Closing Date.
(e) The Company acknowledges and agrees that the Underwriters are acting solely in the
capacity of an arm’s length contractual counterparty to the Company with respect to the
offering of Securities contemplated hereby (including in connection with determining the
terms of the offering) and not as a financial advisor or a fiduciary to, or an agent of, the
Company or any other person. Additionally, neither the Representatives nor any other
Underwriter is advising the Company or any other person as to any legal, tax, investment,
accounting or regulatory matters in any jurisdiction. The Company shall consult with its
own advisors concerning such matters and shall be responsible for making its own independent
investigation and appraisal of the transactions contemplated hereby, and the Underwriters
shall have no responsibility or liability to the Company with respect thereto. Any review by
the Underwriters of the Company, the transactions contemplated hereby or other matters
relating to such transactions will be performed solely for the benefit of the Underwriters
and shall not be on behalf of the Company.
3. Representations and Warranties of the Company. The Company represents and warrants to each
Underwriter that:
(a) Preliminary Prospectus. No order preventing or suspending the use of any
Preliminary Prospectus has been issued by the Commission, and each Preliminary Prospectus,
at the time of filing thereof, complied in all material respects with the Securities Act and
did not contain any untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary in order to make the statements therein, in the
light of the circumstances under which they were made, not misleading; provided that the
Company makes no representation and warranty with respect to any statements or omissions
made in reliance upon and in conformity with information relating to any Underwriter
furnished to the Company in writing by such Underwriter through the Representatives
expressly for use in any Preliminary Prospectus.
(b) Time of Sale Information. The Time of Sale Information, at the Time of Sale did
not, and at the Closing Date will not, contain any untrue statement of a material fact or
omit to state a material fact necessary in order to make the statements therein, in the
light of the circumstances under which they were made, not misleading; provided that the
Company makes no representation and warranty with respect to any statements or omissions
made in reliance upon and in conformity with information relating to any Underwriter
furnished to the Company in writing by such Underwriter through the
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Representatives expressly for use in such Time of Sale Information. No statement of
material fact included in the Prospectus has been omitted from the Time of Sale Information
and no statement of material fact included in the Time of Sale Information that is required
to be included in the Prospectus has been omitted therefrom.
(c) Issuer Free Writing Prospectus. The Company (including its agents and
representatives, other than the Underwriters in their capacity as such) has not prepared,
made, used, authorized, approved or referred to and will not prepare, make, use, authorize,
approve or refer to any “written communication” (as defined in Rule 405 under the Securities
Act) that constitutes an offer to sell or solicitation of an offer to buy the Securities
(each such communication by the Company or its agents and representatives (other than a
communication referred to in clauses (i) (ii) and (iii) below) an “Issuer Free Writing
Prospectus”) other than (i) any document not constituting a prospectus pursuant to Section
2(a)(10)(a) of the Securities Act or Rule 134 under the Securities Act, (ii) the Preliminary
Prospectus, (iii) the Prospectus, (iv) the documents listed on Annex B hereto as
constituting the Time of Sale Information and (v) any electronic road show or other written
communications, in each case approved in writing in advance by the Representatives. Each
such Issuer Free Writing Prospectus complied in all material respects with the Securities
Act, has been or will be (within the time period specified in Rule 433) filed in accordance
with the Securities Act (to the extent required thereby) and, when taken together with the
Preliminary Prospectus filed prior to the first use of such Issuer Free Writing Prospectus,
did not, and at the Closing Date will not, contain any untrue statement of a material fact
or omit to state a material fact necessary in order to make the statements therein, in the
light of the circumstances under which they were made, not misleading; provided that the
Company makes no representation and warranty with respect to any statements or omissions
made in each such Issuer Free Writing Prospectus in reliance upon and in conformity with
information relating to any Underwriter furnished to the Company in writing by such
Underwriter through the Representatives expressly for use in any Issuer Free Writing
Prospectus.
(d) Registration Statement and Prospectus. The Registration Statement is an “automatic
shelf registration statement” as defined under Rule 405 of the Securities Act that has been
filed with the Commission not earlier than three years prior to the date hereof; and no
notice of objection of the Commission to the use of such registration statement or any
post-effective amendment thereto pursuant to Rule 401(g)(2) under the Securities Act has
been received by the Company. No order suspending the effectiveness of the Registration
Statement has been issued by the Commission and no proceeding for that purpose or pursuant
to Section 8A of the Securities Act against the Company or related to the offering has been
initiated or threatened by the Commission; as of the applicable effective date of the
Registration Statement and any amendment thereto, the Registration Statement complied and at
the Closing Date will comply in all material respects with the Securities Act and the Trust
Indenture Act of 1939, as amended, and the rules and regulations of the Commission
thereunder (collectively, the “Trust Indenture Act”), and did not and at the Closing Date
will not contain any untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary in order to make the statements therein, in the
light of the circumstances under which they were made, not misleading; and as of the date of
the Prospectus and any amendment or
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supplement thereto and as of the Closing Date, the Prospectus will not contain any
untrue statement of a material fact or omit to state a material fact required to be stated
therein or necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading; provided that the Company makes no
representation and warranty with respect to (i) that part of the Registration Statement that
constitutes the Statement of Eligibility and Qualification (Form T-1) of the Trustee under
the Trust Indenture Act or (ii) any statements or omissions made in reliance upon and in
conformity with information relating to any Underwriter furnished to the Company in writing
by such Underwriter through the Representatives expressly for use in the Registration
Statement and the Prospectus and any amendment or supplement thereto.
(e) Incorporated Documents. The documents incorporated by reference in the
Registration Statement, the Prospectus and the Time of Sale Information, when they were
filed with the Commission, conformed in all material respects to the requirements of the
Exchange Act, of 1934, as amended, and the rules and regulation of the Commission thereunder
(collectively, the “Exchange Act”) and none of such documents contained any untrue statement
of a material fact or omitted to state a material fact required to be stated therein or
necessary to make the statements therein, in the light of the circumstances under which they
were made, not misleading; and any further documents so filed and incorporated by reference
in the Registration Statement, the Prospectus or the Time of Sale Information, when such
documents become effective or are filed with the Commission, as the case may be, will
conform in all material respects to the requirements of the Securities Act or the Exchange
Act, as applicable, and will not contain any untrue statement of a material fact or omit to
state a material fact required to be stated therein or necessary to make the statements
therein, in the light of the circumstances under which they were made, not misleading.
(f) Financial Statements. The financial statements and the related notes thereto
included or incorporated by reference in the Registration Statement, the Time of Sale
Information and the Prospectus comply in all material respects with the applicable
requirements of the Securities Act and the Exchange Act, as applicable, and present fairly
in all material respects the consolidated financial position of the Company and its
subsidiaries as of the dates indicated and the consolidated results of their operations and
the changes in their cash flows for the periods specified; such consolidated financial
statements have been prepared in conformity with generally accepted accounting principles
applied on a consistent basis throughout the periods covered thereby, and the supporting
schedules included or incorporated by reference in the Registration Statement present fairly
the information required to be stated therein; and the other financial information included
or incorporated by reference in the Registration Statement, the Time of Sale Information and
the Prospectus has been derived from the accounting records of the Company and its
subsidiaries and presents fairly the information shown therein, in all material respects.
(g) No Material Adverse Change. Since the date of the most recent financial statements
of the Company included or incorporated by reference in the Registration Statement, the Time
of Sale Information and the Prospectus, (i) except as described in the Registration
Statement, the Time of Sale Information and the Prospectus, there has not
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been any change in the capital stock or long-term debt of the Company or Lexmark
International Technology S.A. (“LITSA”), other than as a result of share repurchases made
pursuant to the Company’s share repurchase program, or any dividend or distribution of any
kind declared, set aside for payment, paid or made by the Company on any class of capital
stock, or any material adverse change, or any development involving a prospective material
adverse change, in or affecting the business, properties, management, financial position,
results of operations or prospects of the Company and LITSA taken as a whole; (ii) neither
the Company nor LITSA has entered into any transaction or agreement that is material to the
Company and LITSA taken as a whole or incurred any liability or obligation, direct or
contingent, that is material to the Company and LITSA taken as a whole; and (iii) neither
the Company nor LITSA has sustained any material loss or interference with its business from
fire, explosion, flood or other calamity, whether or not covered by insurance, or from any
labor disturbance or dispute or any action, order or decree of any court or arbitrator or
governmental or regulatory authority, except in each case as otherwise disclosed in the
Registration Statement, the Time of Sale Information and the Prospectus.
(h) Organization and Good Standing. The Company and LITSA have been duly organized and
are validly existing and in good standing under the laws of their respective jurisdictions
of organization, are duly qualified to do business and are in good standing in each
jurisdiction in which their respective ownership or lease of property or the conduct of
their respective businesses requires such qualification, and have all power and authority
necessary to own or hold their respective properties and to conduct the businesses in which
they are engaged, except where the failure to be so qualified, in good standing or have such
power or authority would not, individually or in the aggregate, have a material adverse
effect on the business, properties, management, financial position, results of operations or
prospects of the Company and LITSA taken as a whole or on the performance by the Company of
its obligations under the Securities (a “Material Adverse Effect”). The Company does not
own or control, directly or indirectly, any corporation, association or other entity other
than the subsidiaries listed in Exhibit 21 to the Registration Statement. The subsidiaries
listed in Schedule 2 to this Agreement are the only significant subsidiaries of the Company
as defined in Rule 1-02 of Regulation S-X under the Exchange Act.
(i) Capitalization. The Company has an authorized capitalization as set forth in the
Registration Statement, the Time of Sale Information and the Prospectus under the heading
“Capitalization” and all the outstanding shares of capital stock or other equity interests
of LITSA have been duly and validly authorized and issued, are fully paid and non-assessable
(except, in the case of any foreign subsidiary, for directors’ qualifying shares) and are
owned directly or indirectly by the Company, free and clear of any lien, charge,
encumbrance, security interest, restriction on voting or transfer or any other claim of any
third party.
(j) Due Authorization. The Company has full right, power and authority to execute and
deliver this Agreement, the Securities and the Indenture (collectively, the “Transaction
Documents”) and to perform its obligations hereunder and thereunder; and all action required
to be taken for the due and proper authorization, execution and
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delivery of each of the Transaction Documents and the consummation of the transactions
contemplated thereby has been duly and validly taken.
(k) The Indenture. The Indenture has been duly authorized by the Company and upon
effectiveness of the Registration Statement was or will have been duly qualified under the
Trust Indenture Act and, when duly executed and delivered in accordance with its terms by
each of the parties thereto, will constitute a valid and legally binding agreement of the
Company enforceable against the Company in accordance with its terms, except as
enforceability may be limited by applicable bankruptcy, insolvency, reorganization,
moratorium, fraudulent conveyance or similar laws affecting the enforcement of creditors’
rights generally and by general equity principles, regardless of whether such enforceability
is considered in a proceeding at law or in equity (collectively, the “Enforceability
Exceptions”).
(l) The Securities. The Securities have been duly authorized by the Company and, when
duly executed, authenticated by the Trustee, issued and delivered as provided in the
Indenture and paid for as provided herein, will be duly and validly issued and outstanding
and will constitute valid and legally binding obligations of the Company enforceable against
the Company in accordance with their terms, subject to the Enforceability Exceptions, and
will be entitled to the benefits of the Indenture.
(m) Underwriting Agreement. This Agreement has been duly authorized, executed and
delivered by the Company.
(n) Descriptions of the Transaction Documents. Each Transaction Document conforms in
all material respects to the summary descriptions thereof contained in the Registration
Statement, the Time of Sale Information and the Prospectus.
(o) No Violation or Default. Neither the Company nor LITSA is (i) in violation of its
charter or by-laws or similar organizational documents; (ii) in default, and no event has
occurred that, with notice or lapse of time or both, would constitute such a default, in the
due performance or observance of any term, covenant or condition contained in any indenture,
mortgage, deed of trust, loan agreement or other agreement or instrument to which the
Company or LITSA is a party or by which the Company or LITSA is bound or to which any of the
property or assets of the Company or LITSA is subject; or (iii) in violation of any law or
statute or any judgment, order, rule or regulation of any court or arbitrator or
governmental or regulatory authority, except, in the case of clauses (ii) and (iii) above,
for any such default or violation that would not, individually or in the aggregate, have a
Material Adverse Effect.
(p) No Conflicts. The execution, delivery and performance by the Company of each of
the Transaction Documents, the issuance and sale of the Securities and compliance by the
Company with the terms thereof and the consummation of the transactions contemplated by the
Transaction Documents will not (i) conflict with or result in a breach or violation of any
of the terms or provisions of, or constitute a default under, or result in the creation or
imposition of any lien, charge or encumbrance upon any property or assets of the Company or
LITSA pursuant to, any indenture, mortgage, deed
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of trust, loan agreement or other agreement or instrument to which the Company or LITSA
is a party or by which the Company or LITSA is bound or to which any of the property or
assets of the Company or LITSA is subject, (ii) result in any violation of the provisions of
the charter or by-laws or similar organizational documents of the Company or LITSA or (iii)
result in the violation of any law or statute or any judgment, order, rule or regulation of
any court or arbitrator or governmental or regulatory authority, except, in the case of
clauses (i) and (iii) above, for any such conflict, breach, violation or default that would
not, individually or in the aggregate, have a Material Adverse Effect.
(q) No Consents Required. No consent, approval, authorization, order, registration or
qualification of or with any court or arbitrator or governmental or regulatory authority is
required for the execution, delivery and performance by the Company of each of the
Transaction Documents, the issuance and sale of the Securities and compliance by the Company
with the terms thereof and the consummation of the transactions contemplated by the
Transaction Documents, except for the registration of the Securities under the Securities
Act, the qualification of the Indenture under the Trust Indenture Act and such consents,
approvals, authorizations, orders and registrations or qualifications as may be required
under applicable state securities laws in connection with the purchase and distribution of
the Securities by the Underwriters.
(r) Legal Proceedings. Except as described in the Registration Statement, the Time of
Sale Information and the Prospectus, there are no legal, governmental or regulatory
investigations, actions, suits or proceedings pending to which the Company or LITSA is or
may be a party or to which any property of the Company or LITSA is or may be the subject
that, individually or in the aggregate, if determined adversely to the Company or LITSA,
could reasonably be expected to have a Material Adverse Effect; no investigations, actions,
suits or proceedings that, if determined adversely to the Company or LITSA, could reasonably
be expected to have a Material Adverse Effect, are, to the best knowledge of the Company,
threatened or contemplated by any governmental or regulatory authority or threatened by
others; and (i) there are no current or pending legal, governmental or regulatory actions,
suits or proceedings that are required under the Securities Act to be described in the
Registration Statement or the Prospectus that are not so described in the Registration
Statement, the Time of Sale Information and the Prospectus and (ii) there are no statutes,
regulations or contracts or other documents that are required under the Securities Act to be
filed as exhibits to the Registration Statement or described in the Registration Statement
and the Prospectus that are not so filed as exhibits to the Registration Statement or
described in the Registration Statement, the Time of Sale Information and the Prospectus.
(s) Independent Accountants. PricewaterhouseCoopers, LLP, whose report on the
consolidated financial statements of the Company and its subsidiaries is included or
incorporated by reference in the Registration Statement, the Time of Sale Information and
the Prospectus is an independent registered public accounting firm with respect to the
Company and its subsidiaries within the applicable rules and regulations adopted by the
Commission and the Public Company Accounting Oversight Board (United States) and as required
by the Securities Act.
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(t) Title to Real and Personal Property. The Company and LITSA have good and
marketable title in fee simple to, or have valid rights to lease or otherwise use, all items
of real and personal property that are material to the respective businesses of the Company
and LITSA, in each case free and clear of all liens, encumbrances, claims and defects and
imperfections of title except those that (i) do not materially interfere with the use made
and proposed to be made of such property by the Company and LITSA or (ii) could not
reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect.
(u) Title to Intellectual Property. The Company and LITSA own or possess adequate
rights to use all patents, patent applications, trademarks, service marks, trade names,
trademark registrations, service xxxx registrations, copyrights, licenses and know-how
(including trade secrets and other unpatented and/or unpatentable proprietary or
confidential information, systems or procedures) necessary for the conduct of their
respective businesses, except where the failure to own or possess such rights could not be
reasonably expected, individually or in the aggregate, to have a Material Adverse Effect;
and the conduct of their respective businesses will not conflict in any material respect
with any such rights of others, and the Company and LITSA have not received any notice of
any claim of infringement or conflict with any such rights of others that could reasonably
be expected, individually or in the aggregate, to have a Material Adverse Effect.
(v) Investment Company Act. The Company is not and, after giving effect to the
offering and sale of the Securities and the application of the proceeds thereof as described
in the Registration Statement, the Time of Sale Information and the Prospectus, will not be
an “investment company” or an entity “controlled” by an “investment company” within the
meaning of the Investment Company Act of 1940, as amended (collectively, “Investment Company
Act”).
(w) Taxes. The Company and LITSA have paid all federal, state, local and foreign taxes
required to be paid, except those that are being contested in good faith by appropriate
proceedings and with respect to which adequate reserves have been established in accordance
with generally acceptable accounting principles, and filed all tax returns required to be
filed through the date hereof or have properly requested extensions thereof; and except as
otherwise disclosed in the Registration Statement, the Time of Sale Information and the
Prospectus, there is no tax deficiency that has been, or could reasonably be expected to be,
asserted against the Company or LITSA or any of their respective properties or assets that,
individually or in the aggregate, could reasonably be expected to have a Material Adverse
Effect.
(x) Licenses and Permits. The Company and LITSA possess all licenses, certificates,
permits and other authorizations issued by, and have made all declarations and filings with,
the appropriate federal, state, local or foreign governmental or regulatory authorities that
are necessary for the ownership or lease of their respective properties or the conduct of
their respective businesses as described in the Registration Statement, the Time of Sale
Information and the Prospectus, except where the failure to possess or make the same would
not, individually or in the aggregate, have a Material
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Adverse Effect; and except as described in the Registration Statement, the Time of Sale
Information and the Prospectus, neither the Company nor LITSA has received notice of any
revocation or modification of any such material license, certificate, permit or
authorization or has any reason to believe that any such material license, certificate,
permit or authorization will not be renewed in the ordinary course.
(y) No Labor Disputes. No labor disturbance by or dispute with employees of the
Company or LITSA exists or, to the best knowledge of the Company, is contemplated or
threatened, except as would not have a Material Adverse Effect.
(z) Compliance With Environmental Laws. (i) The Company and LITSA (x) are in
compliance with any and all applicable federal, state, local and foreign laws, rules,
regulations, requirements, decisions and orders relating to the protection of human health
or safety, the environment, natural resources, hazardous or toxic substances or wastes,
pollutants or contaminants (collectively, “Environmental Laws”); (y) have received and are
in compliance with all permits, licenses, certificates or other authorizations or approvals
required of them under applicable Environmental Laws to conduct their respective businesses;
and (z) have not received notice of any actual or potential liability under or relating to
any Environmental Laws, including for the investigation or remediation of any disposal or
release of hazardous or toxic substances or wastes, pollutants or contaminants, and have no
knowledge of any event or condition that would reasonably be expected to result in any such
notice, and (ii) there are no costs or liabilities associated with Environmental Laws of or
relating to the Company or LITSA, except in the case of each of (i) and (ii) above, for any
such failure to comply, or failure to receive required permits, licenses or approvals, or
cost or liability, as would not, individually or in the aggregate, have a Material Adverse
Effect; and (iii) except as described in each of the Time of Sale Information and the
Prospectus, (x) there are no proceedings that are pending, or that are known to be
contemplated, against the Company or LITSA under any Environmental Laws in which a
governmental entity is also a party, other than such proceedings regarding which it is
reasonably believed no monetary sanctions of $100,000 or more will be imposed, (y) the
Company and LITSA are not aware of any issues regarding compliance with Environmental Laws,
or liabilities or other obligations under Environmental Laws or concerning hazardous or
toxic substances or wastes, pollutants or contaminants, that could reasonably be expected to
have a material effect on the capital expenditures, earnings or competitive position of the
Company and LITSA, and (z) neither the Company nor LITSA anticipates material capital
expenditures relating to any Environmental Laws that are required to be disclosed under the
Securities Act or the Exchange Act that have not been disclosed.
(aa) Compliance With ERISA. Except as described in the Registration Statement, Time of
Sale Information and the Prospectus, and except as would not, individually or in the
aggregate, result in a Material Adverse Effect, (i) each employee benefit plan, within the
meaning of Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended
(“ERISA”), for which the Company or any member of its “Controlled Group” (defined as any
organization which is a member of a controlled group of corporations within the meaning of
Section 414 of the Internal Revenue Code of 1986, as amended (the “Code”)) would have any
liability (each, a “Plan”) has been
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maintained in compliance with its terms and the requirements of any applicable
statutes, orders, rules and regulations, including but not limited to ERISA and the Code;
(ii) no prohibited transaction, within the meaning of Section 406 of ERISA or Section 4975
of the Code, has occurred with respect to any Plan excluding transactions effected pursuant
to a statutory or administrative exemption; (iii) for each Plan that is subject to the
funding rules of Section 412 of the Code or Section 302 of ERISA, no “accumulated funding
deficiency” as defined in Section 412 of the Code, whether or not waived, has occurred or is
reasonably expected to occur; (iv) no “reportable event” (within the meaning of Section
4043(c) of ERISA) has occurred or is reasonably expected to occur; and (v) neither the
Company nor any member of the Controlled Group has incurred, nor reasonably expects to
incur, any liability under Title IV of ERISA (other than contributions to the Plan or
premiums to the PBGC, in the ordinary course and without default) in respect of a Plan
(including a “multiemployer plan”, within the meaning of Section 4001(a)(3) of ERISA).
(bb) Disclosure Controls. The Company and its subsidiaries maintain an effective
system of “disclosure controls and procedures” (as defined in Rule 13a-15(e) of the Exchange
Act) that is designed to ensure that information required to be disclosed by the Company in
reports that it files or submits under the Exchange Act is recorded, processed, summarized
and reported within the time periods specified in the Commission’s rules and forms,
including controls and procedures designed to ensure that such information is accumulated
and communicated to the Company’s management as appropriate to allow timely decisions
regarding required disclosure. The Company and its subsidiaries have carried out
evaluations of the effectiveness of their disclosure controls and procedures as required by
Rule 13a-15 of the Exchange Act.
(cc) Accounting Controls. The Company and its subsidiaries maintain systems of
“internal control over financial reporting” (as defined in Rule 13a-15(f) of the Exchange
Act) that comply with the requirements of the Exchange Act and have been designed by, or
under the supervision of, their respective principal executive and principal financial
officers, or persons performing similar functions, to provide reasonable assurance regarding
the reliability of financial reporting and the preparation of financial statements for
external purposes in accordance with generally accepted accounting principles, including,
but not limited to internal accounting controls sufficient to provide reasonable assurance
that (i) transactions are executed in accordance with management’s general or specific
authorizations; (ii) transactions are recorded as necessary to permit preparation of
financial statements in conformity with generally accepted accounting principles and to
maintain asset accountability; (iii) access to assets is permitted only in accordance with
management’s general or specific authorization; and (iv) the recorded accountability for
assets is compared with the existing assets at reasonable intervals and appropriate action
is taken with respect to any differences. Except as disclosed in the Registration
Statement, the Time of Sale Information and the Prospectus, there are no material weaknesses
in the Company’s internal controls.
(dd) Insurance. The Company and LITSA have insurance covering their respective
properties, operations, personnel and businesses, which insurance is in amounts and insures
against such losses and risks as are adequate to protect the Company
11
and LITSA and their respective businesses and that are customary in the Company’s and
LITSA’s respective businesses.
(ee) No Unlawful Payments. Neither the Company nor any of its subsidiaries nor, to the
best knowledge of the Company, any director, officer, agent, employee or other person
associated with or acting on behalf of the Company or any of its subsidiaries has (i) used
any corporate funds for any unlawful contribution, gift, entertainment or other unlawful
expense relating to political activity; (ii) made any direct or indirect unlawful payment to
any foreign or domestic government official or employee from corporate funds; (iii) violated
or is in violation of any provision of the Foreign Corrupt Practices Act of 1977; or (iv)
made any bribe, rebate, payoff, influence payment, kickback or other unlawful payment.
(ff) Compliance with Money Laundering Laws. The operations of the Company and its
subsidiaries are and have been conducted at all times in compliance with applicable
financial recordkeeping and reporting requirements of the Currency and Foreign Transactions
Reporting Act of 1970, as amended, the money laundering statutes of all jurisdictions, the
rules and regulations thereunder and any related or similar rules, regulations or
guidelines, issued, administered or enforced by any governmental agency (collectively, the
“Money Laundering Laws”) and no action, suit or proceeding by or before any court or
governmental agency, authority or body or any arbitrator involving the Company or any of its
subsidiaries with respect to the Money Laundering Laws is pending or, to the best knowledge
of the Company, threatened.
(gg) Compliance with OFAC. None of the Company, any of its subsidiaries or, to the
knowledge of the Company, any director, officer, agent, employee or Affiliate of the Company
or any of its subsidiaries is currently subject to any U.S. sanctions administered by the
Office of Foreign Assets Control of the U.S. Department of the Treasury (“OFAC”); and the
Company will not directly or indirectly use the proceeds of the offering of the Securities
hereunder, or lend, contribute or otherwise make available such proceeds to any subsidiary,
joint venture partner or other person or entity, for the purpose of financing the activities
of any person currently subject to any U.S. sanctions administered by OFAC.
(hh) No Stabilization. The Company has not taken, directly or indirectly, any action
designed to or that could reasonably be expected to cause or result in any stabilization or
manipulation of the price of the Securities.
(ii) Xxxxxxxx-Xxxxx Act. There is and has been no failure on the part of the Company
or any of the Company’s directors or officers, in their capacities as such, to comply in all
material respects with any provision of the Xxxxxxxx-Xxxxx Act of 2002 and the rules and
regulations promulgated in connection therewith (the “Xxxxxxxx-Xxxxx Act”), including
Section 402 related to loans and Sections 302 and 906 related to certifications.
(jj) Status under the Securities Act. The Company is not an ineligible issuer and is a
well-known seasoned issuer, in each case as defined under the Securities Act, in
12
each case at the times specified in the Securities Act in connection with the offering
of the Securities.
4. Further Agreements of the Company. The Company covenants and agrees with each Underwriter
that:
(a) Required Filings. The Company will file the final Prospectus with the Commission
within the time periods specified by Rule 424(b) and Rule 430A, 430B or 430C under the
Securities Act, will file any Issuer Free Writing Prospectus (including the Term Sheet in
the form of Annex C hereto) to the extent required by Rule 433 under the Securities Act; and
will file promptly all reports and any definitive proxy or information statements required
to be filed by the Company with the Commission pursuant to Section 13(a), 13(c), 14 or 15(d)
of the Exchange Act subsequent to the date of the Prospectus and for so long as the delivery
of a prospectus is required in connection with the offering or sale of the Securities; and
the Company will furnish copies of the Prospectus and each Issuer Free Writing Prospectus
(to the extent not previously delivered) to the Underwriters in New York City prior to 10:00
A.M., New York City time, on the business day next succeeding the date of this Agreement in
such quantities as the Representatives may reasonably request. The Company will pay the
registration fees for this offering within the time period required by Rule 456(b)(1)(i)
under the Securities Act (without giving effect to the proviso therein) and in any event
prior to the Closing Date.
(b) Delivery of Copies. The Company will deliver, without charge, (i) to the
Representatives, two signed copies of the Registration Statement as originally filed and
each amendment thereto, in each case including all exhibits and consents filed therewith and
documents incorporated by reference therein; and (ii) to each Underwriter (A) a conformed
copy of the Registration Statement as originally filed and each amendment thereto, in each
case including all exhibits and consents filed therewith and (B) during the Prospectus
Delivery Period (as defined below), as many copies of the Prospectus (including all
amendments and supplements thereto and documents incorporated by reference therein) and each
Issuer Free Writing Prospectus as the Representatives may reasonably request. As used
herein, the term “Prospectus Delivery Period” means such period of time after the first date
of the public offering of the Securities as in the opinion of counsel for the Underwriters a
prospectus relating to the Securities is required by law to be delivered (or required to be
delivered but for Rule 172 under the Securities Act) in connection with sales of the
Securities by any Underwriter or dealer.
(c) Amendments or Supplements; Issuer Free Writing Prospectuses. Prior to the later of
(i) the Closing Date or (ii) the expiration of the Prospectus Delivery Period, before
making, preparing, using, authorizing, approving, referring to or filing any Issuer Free
Writing Prospectus, and before filing any amendment or supplement to the Registration
Statement or the Prospectus, whether before or after the time that the Registration
Statement becomes effective, the Company will furnish to the Representatives and counsel for
the Underwriters a copy of the proposed Issuer Free Writing Prospectus, amendment or
supplement for review and will not make, prepare, use, authorize, approve, refer to or file
any such Issuer Free Writing Prospectus or file any such proposed amendment or supplement to
which the Representatives reasonably object.
13
(d) Notice to the Representatives. The Company will advise the Representatives
promptly, and confirm such advice in writing, (i) when the Registration Statement has become
effective; (ii) when any amendment to the Registration Statement has been filed or becomes
effective; (iii) when any supplement to the Prospectus or any amendment to the Prospectus or
any Issuer Free Writing Prospectus has been filed; (iv) of any request by the Commission for
any amendment to the Registration Statement or any amendment or supplement to the Prospectus
or the receipt of any comments from the Commission relating to the Registration Statement or
any other request by the Commission for any additional information; (v) of the issuance by
the Commission of any order suspending the effectiveness of the Registration Statement or
preventing or suspending the use of any Preliminary Prospectus or the Prospectus or the
initiation or threatening of any proceeding for that purpose or pursuant to Section 8A of
the Securities Act; (vi) of the occurrence of any event within the Prospectus Delivery
Period as a result of which the Prospectus, the Time of Sale Information or any Issuer Free
Writing Prospectus as then amended or supplemented would include any untrue statement of a
material fact or omit to state a material fact required to be stated therein or necessary in
order to make the statements therein, in the light of the circumstances existing when the
Prospectus, the Time of Sale Information or any such Issuer Free Writing Prospectus is
delivered to a purchaser, not misleading; and (vii) of the receipt by the Company of any
notice of objection of the Commission to the use of the Registration Statement or any
post-effective amendment thereto pursuant to Rule 401(g)(2) under the Securities Act; and
(viii) of the receipt by the Company of any notice with respect to any suspension of the
qualification of the Securities for offer and sale in any jurisdiction or the initiation or
threatening of any proceeding for such purpose; and the Company will use its reasonable best
efforts to prevent the issuance of any such order suspending the effectiveness of the
Registration Statement, preventing or suspending the use of any Preliminary Prospectus or
the Prospectus or suspending any such qualification of the Securities and, if any such order
is issued, will obtain as soon as possible the withdrawal thereof.
(e) Time of Sale Information. If at any time prior to the Closing Date (i) any event
shall occur or condition shall exist as a result of which the Time of Sale Information as
then amended or supplemented would include any untrue statement of a material fact or omit
to state any material fact necessary in order to make the statements therein, in the light
of the circumstances, not misleading or (ii) it is necessary to amend or supplement the Time
of Sale Information to comply with law, the Company will immediately notify the Underwriters
thereof and forthwith prepare and, subject to paragraph (c) above, file with the Commission
(to the extent required) and furnish to the Underwriters and to such dealers as the
Representatives may designate, such amendments or supplements to the Time of Sale
Information as may be necessary so that the statements in the Time of Sale Information as so
amended or supplemented will not, in the light of the circumstances, be misleading or so
that the Time of Sale Information will comply with law.
(f) Ongoing Compliance. If during the Prospectus Delivery Period (i) any event shall
occur or condition shall exist as a result of which the Prospectus as then amended or
supplemented would include any untrue statement of a material fact or omit to state any
material fact required to be stated therein or necessary in order to make the
14
statements therein, in the light of the circumstances existing when the Prospectus is
delivered to a purchaser, not misleading or (ii) it is necessary to amend or supplement the
Prospectus to comply with law, the Company will immediately notify the Underwriters thereof
and forthwith prepare and, subject to paragraph (c) above, file with the Commission and
furnish to the Underwriters and to such dealers as the Representatives may designate, such
amendments or supplements to the Prospectus as may be necessary so that the statements in
the Prospectus as so amended or supplemented will not, in the light of the circumstances
existing when the Prospectus is delivered to a purchaser, be misleading or so that the
Prospectus will comply with law.
(g) Blue Sky Compliance. The Company will qualify the Securities for offer and sale
under the securities or Blue Sky laws of such jurisdictions as the Representatives shall
reasonably request and will continue such qualifications in effect so long as required for
distribution of the Securities; provided that the Company shall not be required to (i)
qualify as a foreign corporation or other entity or as a dealer in securities in any such
jurisdiction where it would not otherwise be required to so qualify, (ii) file any general
consent to service of process in any such jurisdiction or (iii) subject itself to taxation
in any such jurisdiction if it is not otherwise so subject.
(h) Earning Statement. The Company will make generally available to its security
holders and the Representatives as soon as practicable an earning statement that satisfies
the provisions of Section 11(a) of the Securities Act and Rule 158 of the Commission
promulgated thereunder covering a period of at least twelve months beginning with the first
fiscal quarter of the Company occurring after the “effective date” (as defined in Rule 158)
of the Registration Statement.
(i) Clear Market. During the period from the date hereof through and including the
business day following the Closing Date, the Company will not, without the prior written
consent of the Representatives, offer, sell, contract to sell or otherwise dispose of any
debt securities issued or guaranteed by the Company and having a tenor of more than one
year.
(j) Use of Proceeds. The Company will apply the net proceeds from the sale of the
Securities as described in the Registration Statement, the Time of Sale Information and the
Prospectus under the heading “Use of proceeds”.
(k) No Stabilization. The Company will not take, directly or indirectly, any action
designed to or that could reasonably be expected to cause or result in any stabilization or
manipulation of the price of the Securities.
(l) Record Retention. The Company will, pursuant to reasonable procedures developed in
good faith, retain copies of each Issuer Free Writing Prospectus that is not filed with the
Commission in accordance with Rule 433 under the Securities Act.
5. Certain Agreements of the Underwriters. Each Underwriter hereby represents and agrees that
15
(a) It has not and will not use, authorize use of, refer to, or participate in the
planning for use of, any “free writing prospectus”, as defined in Rule 405 under the
Securities Act (which term includes use of any written information furnished to the
Commission by the Company and not incorporated by reference into the Registration Statement
and any press release issued by the Company) other than (i) a free writing prospectus that,
solely as a result of use by such underwriter, would not trigger an obligation to file such
free writing prospectus with the Commission pursuant to Rule 433, (ii) any Issuer Free
Writing Prospectus listed on Annex B or prepared pursuant to Section 3(c) or Section 4(c)
above (including any electronic road show), or (iii) any free writing prospectus prepared by
such underwriter and approved by the Company in advance in writing (each such free writing
prospectus referred to in clauses (i) or (iii), an “Underwriter Free Writing Prospectus”).
Notwithstanding the foregoing, the Underwriters may use a term sheet substantially in the
form of Annex C hereto without the consent of the Company.
(b) It is not subject to any pending proceeding under Section 8A of the Securities Act
with respect to the offering (and will promptly notify the Company if any such proceeding
against it is initiated during the Prospectus Delivery Period).
6. Conditions of Underwriters’ Obligations. The obligation of each Underwriter to purchase
Securities on the Closing Date as provided herein is subject to the performance by the Company of
its covenants and other obligations hereunder and to the following additional conditions:
(a) Registration Compliance; No Stop Order. No order suspending the effectiveness of
the Registration Statement shall be in effect, and no proceeding for such purpose, pursuant
to Rule 401(g)(2) or pursuant to Section 8A under the Securities Act shall be pending before
or threatened by the Commission; the Prospectus and each Issuer Free Writing Prospectus
shall have been timely filed with the Commission under the Securities Act (in the case of a
Issuer Free Writing Prospectus, to the extent required by Rule 433 under the Securities Act)
and in accordance with Section 4(a) hereof; and all requests by the Commission for
additional information shall have been complied with to the reasonable satisfaction of the
Representatives.
(b) Representations and Warranties. The representations and warranties of the Company
contained herein shall be true and correct on the date hereof and on and as of the Closing
Date; and the statements of the Company and its officers made in any certificates delivered
pursuant to this Agreement shall be true and correct on and as of the Closing Date.
(c) No Downgrade. Subsequent to the earlier of (A) the Time of Sale and (B) the
execution and delivery of this Agreement, (i) no downgrading shall have occurred in the
rating accorded the Securities or any other debt securities or preferred stock of or
guaranteed by the Company or LITSA by any “nationally recognized statistical rating
organization”, as such term is defined by the Commission for purposes of Rule 436(g)(2)
under the Securities Act and (ii) no such organization shall have publicly announced that it
has under surveillance or review, or has changed its outlook with respect to, its rating
16
of the Securities or of any other debt securities or preferred stock of or guaranteed
by the Company or LITSA (other than an announcement with positive implications of a possible
upgrading).
(d) No Material Adverse Change. No event or condition of a type described in Section
3(g) hereof shall have occurred or shall exist, which event or condition is not described in
the Time of Sale Information (excluding any amendment or supplement thereto) and the
Prospectus (excluding any amendment or supplement thereto) and the effect of which in the
judgment of the Representatives makes it impracticable or inadvisable to proceed with the
offering, sale or delivery of the Securities on the terms and in the manner contemplated by
this Agreement, the Time of Sale Information and the Prospectus.
(e) Officer’s Certificate. The Representatives shall have received on and as of the
Closing Date a certificate of an executive officer of the Company who has specific knowledge
of the Company’s financial matters and is reasonably satisfactory to the Representatives (i)
confirming that such officer has carefully reviewed the Registration Statement, the Time of
Sale Information and the Prospectus and, to the best knowledge of such officer, the
representations set forth in Sections 3(b) or 3(d) hereof are true and correct, (ii)
confirming that the other representations and warranties of the Company in this Agreement
are true and correct and that the Company has complied with all agreements and satisfied all
conditions on its part to be performed or satisfied hereunder at or prior to the Closing
Date and (iii) to the effect set forth in paragraphs (a), (c) and (d) above.
(f) Comfort Letters. On the date of this Agreement and on the Closing Date,
PricewaterhouseCoopers, LLP shall have furnished to the Representatives, at the request of
the Company, letters, dated the respective dates of delivery thereof and addressed to the
Underwriters, in form and substance reasonably satisfactory to the Representatives,
containing statements and information of the type customarily included in accountants’
“comfort letters” to underwriters with respect to the financial statements and certain
financial information contained or incorporated by reference in the Registration Statement,
the Time of Sale Information and the Prospectus; provided that the letter delivered on the
Closing Date shall use a “cut-off” date no more than three business days prior to the
Closing Date.
(g) Opinion and 10b-5 Statement of Counsel for the Company. (i) Xxxxxxxx Xxxx LLP,
counsel for the Company, shall have furnished to the Representatives, at the request of the
Company, their written opinion and 10b-5 Statement, dated the Closing Date and addressed to
the Underwriters, in form and substance reasonably satisfactory to the Representatives, to
the effect set forth in Annex A-1 hereto and (ii) Xxxxxxx X. Xxxx, Esq. General Counsel of
the Company, shall have furnished to the Representatives, at the request of the Company, his
written opinion, dated the Closing Date and addressed to the Underwriters, in form and
substance reasonably satisfactory to the Representatives, to the effect set forth in Annex
A-2 hereto.
17
(h) Opinion and 10b-5 Statement of Counsel for the Underwriters. The Representatives
shall have received on and as of the Closing Date an opinion and 00x-0 Xxxxxxxxx xx Xxxxx
Xxxx & Xxxxxxxx, counsel for the Underwriters, with respect to such matters as the
Representatives may reasonably request, and such counsel shall have received such documents
and information as they may reasonably request to enable them to pass upon such matters.
(i) No Legal Impediment to Issuance. No action shall have been taken and no statute,
rule, regulation or order shall have been enacted, adopted or issued by any federal, state
or foreign governmental or regulatory authority that would, as of the Closing Date, prevent
the issuance or sale of the Securities; and no injunction or order of any federal, state or
foreign court shall have been issued that would, as of the Closing Date, prevent the
issuance or sale of the Securities.
(j) Good Standing. The Representatives shall have received on and as of the Closing
Date satisfactory evidence of the good standing of the Company and the subsidiaries listed
in Schedule 2 in their respective jurisdictions of organization and their good standing in
such other jurisdictions as the Representatives may reasonably request, in each case in
writing or any standard form of telecommunication from the appropriate governmental
authorities of such jurisdictions.
(k) Additional Documents. On or prior to the Closing Date, the Company shall have
furnished to the Representatives such further certificates and documents as the
Representatives may reasonably request.
All opinions, letters, certificates and evidence mentioned above or elsewhere in this
Agreement shall be deemed to be in compliance with the provisions hereof only if they are in form
and substance reasonably satisfactory to counsel for the Underwriters.
7. Indemnification and Contribution.
(a) Indemnification of the Underwriters. The Company agrees to indemnify and hold
harmless each Underwriter, its affiliates, directors and officers and each person, if any,
who controls such Underwriter within the meaning of Section 15 of the Securities Act or
Section 20 of the Exchange Act, from and against any and all losses, claims, damages and
liabilities (including, without limitation, reasonable outside counsel legal fees and other
expenses incurred in connection with any suit, action or proceeding or any claim asserted,
as such fees and expenses are incurred), joint or several, that arise out of, or are based
upon, (i) any untrue statement or alleged untrue statement of a material fact contained in
the Registration Statement or caused by any omission or alleged omission to state therein a
material fact required to be stated therein or necessary in order to make the statements
therein, not misleading, (ii) or any untrue statement or alleged untrue statement of a
material fact contained in the Prospectus (or any amendment or supplement thereto), any
Issuer Free Writing Prospectus or any Time of Sale Information, or caused by any omission or
alleged omission to state therein a material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not misleading, in
each case except insofar as such losses, claims, damages or
18
liabilities arise out of, or are based upon, any untrue statement or omission or
alleged untrue statement or omission made in reliance upon and in conformity with any
information relating to any Underwriter furnished to the Company in writing by such
Underwriter through the Representatives expressly for use therein.
(b) Indemnification of the Company. Each Underwriter agrees, severally and not
jointly, to indemnify and hold harmless the Company, its directors, its officers who signed
the Registration Statement and each person, if any, who controls the Company within the
meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act to the same
extent as the indemnity set forth in paragraph (a) above, but only with respect to any
losses, claims, damages or liabilities that arise out of, or are based upon, any untrue
statement or omission or alleged untrue statement or omission made in reliance upon and in
conformity with any information relating to such Underwriter furnished to the Company in
writing by such Underwriter through the Representatives expressly for use in the
Registration Statement, the Prospectus (or any amendment or supplement thereto), any Issuer
Free Writing Prospectus or any Time of Sale Information, it being understood and agreed that
the only such information consists of the following: (1) the information in the last paragraph of
the cover page of the Prospectus Supplement regarding the delivery of the Securities; (2)
the marketing names of the underwriters on the cover page of the Prospectus Supplement; (3)
the information in the third paragraph of text under the caption “Underwriting” in the
Prospectus Supplement concerning the offering price and selling terms; and (4) the information
in the seventh paragraph of text under the caption “Underwriting” in the Prospectus Supplement
concerning stabilization and other transactions.
(c) Notice and Procedures. If any suit, action, proceeding (including any governmental
or regulatory investigation), claim or demand shall be brought or asserted against any
person in respect of which indemnification may be sought pursuant to either paragraph (a) or
(b) above, such person (the “Indemnified Person”) shall promptly notify the person against
whom such indemnification may be sought (the “Indemnifying Person”) in writing; provided
that the failure to notify the Indemnifying Person shall not relieve it from any liability
that it may have under this Section 7 except to the extent that it has been materially
prejudiced (through the forfeiture of substantive rights or defenses) by such failure; and
provided, further, that the failure to notify the Indemnifying Person shall not relieve it
from any liability that it may have to an Indemnified Person otherwise than under this
Section 7. If any such proceeding shall be brought or asserted against an Indemnified
Person and it shall have notified the Indemnifying Person thereof, the Indemnifying Person
shall retain counsel reasonably satisfactory to the Indemnified Person (who shall not,
without the consent of the Indemnified Person, be counsel to the Indemnifying Person) to
represent the Indemnified Person and any others entitled to indemnification pursuant to
Section 7 that the Indemnifying Party may designate in such proceeding and shall pay the
reasonable fees and expenses of counsel related to such proceeding, as incurred. In any
such proceeding, any Indemnified Person shall have the right to retain its own counsel, but
the fees and expenses of such counsel shall be at the expense of such Indemnified Person
unless (i) the Indemnifying Person and the Indemnified Person shall have mutually agreed to
the contrary; (ii) the Indemnifying Person has failed within a reasonable time to retain
counsel reasonably satisfactory to the Indemnified Person; (iii) the Indemnified Person
shall have reasonably concluded that there may be legal defenses available to it that are
different from or in addition to those available to the Indemnifying Person; or (iv) the
named parties in any such proceeding (including any impleaded parties) include both the
Indemnifying Person and the Indemnified Person and representation of both parties by the
same counsel would be inappropriate due to actual or potential differing interest between
them. It is understood
19
and agreed that the Indemnifying Person shall not, in connection with any proceeding or
related proceeding in the same jurisdiction, be liable for the fees and expenses of more
than one separate firm (in addition to any local counsel) for all Indemnified Persons, and
that all such fees and expenses shall be reimbursed as they are incurred. Any such separate
firm for any Underwriter, its affiliates, directors and officers and any control persons of
such Underwriter shall be designated in writing by X.X. Xxxxxx Securities Inc. and any such
separate firm for the Company, its directors, its officers who signed the Registration
Statement and any control persons of the Company shall be designated in writing by the
Company. The Indemnifying Person shall not be liable for any settlement of any proceeding
effected without its written consent, but if settled with such consent or if there be a
final judgment for the plaintiff, the Indemnifying Person agrees to indemnify each
Indemnified Person from and against any loss or liability by reason of such settlement or
judgment. Notwithstanding the foregoing sentence, if at any time an Indemnified Person
shall have requested that an Indemnifying Person reimburse the Indemnified Person for fees
and expenses of counsel as contemplated by this paragraph, the Indemnifying Person shall be
liable for any settlement of any proceeding effected without its written consent if (i) such
settlement is entered into more than 30 days after receipt by the Indemnifying Person of
such request and (ii) the Indemnifying Person shall not have reimbursed the Indemnified
Person in accordance with such request prior to the date of such settlement. No
Indemnifying Person shall, without the written consent of the Indemnified Person, effect any
settlement of any pending or threatened proceeding in respect of which any Indemnified
Person is or could have been a party and indemnification could have been sought hereunder by
such Indemnified Person, unless such settlement (x) includes an unconditional release of
such Indemnified Person, in form and substance reasonably satisfactory to such Indemnified
Person, from all liability on claims that are the subject matter of such proceeding and (y)
does not include any statement as to or any admission of fault, culpability or a failure to
act by or on behalf of any Indemnified Person.
(d) Contribution. If the indemnification provided for in paragraphs (a) and (b) above
is unavailable to an Indemnified Person or insufficient in respect of any losses, claims,
damages or liabilities referred to therein, then each Indemnifying Person under such
paragraph, in lieu of indemnifying such Indemnified Person thereunder, shall contribute to
the amount paid or payable by such Indemnified Person as a result of such losses, claims,
damages or liabilities (i) in such proportion as is appropriate to reflect the relative
benefits received by the Company on the one hand and the Underwriters on the other from the
offering of the Securities or (ii) if the allocation provided by clause (i) is not permitted
by applicable law, in such proportion as is appropriate to reflect not only the relative
benefits referred to in clause (i) but also the relative fault of the Company on the one
hand and the Underwriters on the other in connection with the statements or omissions that
resulted in such losses, claims, damages or liabilities, as well as any other relevant
equitable considerations. The relative benefits received by the Company on the one hand and
the Underwriters on the other shall be deemed to be in the same respective proportions as
the net proceeds (before deducting expenses) received by the Company from the sale of the
Securities and the total underwriting discounts and commissions received by the Underwriters
in connection therewith, in each case as set forth in the table on the cover of the
Prospectus, bear to the aggregate offering price of the Securities. The
20
relative fault of the Company on the one hand and the Underwriters on the other shall
be determined by reference to, among other things, whether the untrue or alleged untrue
statement of a material fact or the omission or alleged omission to state a material fact
relates to information supplied by the Company or by the Underwriters and the parties’
relative intent, knowledge, access to information and opportunity to correct or prevent such
statement or omission.
(e) Limitation on Liability. The Company and the Underwriters agree that it would not
be just and equitable if contribution pursuant to this Section 7 were determined by pro rata
allocation (even if the Underwriters were treated as one entity for such purpose) or by any
other method of allocation that does not take account of the equitable considerations
referred to in paragraph (d) above. The amount paid or payable by an Indemnified Person as
a result of the losses, claims, damages and liabilities referred to in paragraph (d) above
shall be deemed to include, subject to the limitations set forth above, any legal or other
expenses incurred by such Indemnified Person in connection with any such action or claim.
Notwithstanding the provisions of this Section 7, in no event shall an Underwriter be
required to contribute any amount in excess of the amount by which the total underwriting
discounts and commissions received by such Underwriter with respect to the offering of the
Securities exceeds the amount of any damages that such Underwriter has otherwise been
required to pay by reason of such untrue or alleged untrue statement or omission or alleged
omission. No person guilty of fraudulent misrepresentation (within the meaning of Section
11(f) of the Securities Act) shall be entitled to contribution from any person who was not
guilty of such fraudulent misrepresentation. The Underwriters’ obligations to contribute
pursuant to this Section 7 are several in proportion to their respective purchase
obligations hereunder and not joint.
(f) Non-Exclusive Remedies. The remedies provided for in this Section 7 are not
exclusive and shall not limit any rights or remedies which may otherwise be available to any
Indemnified Person at law or in equity.
8. Effectiveness of Agreement. This Agreement shall become effective upon the execution and
delivery hereof by the parties hereto.
9. Termination. This Agreement may be terminated in the absolute discretion of the
Representatives, by notice to the Company, if after the execution and delivery of this Agreement
and prior to the Closing Date (i) trading generally shall have been suspended or materially limited
on the New York Stock Exchange or the over-the-counter market; (ii) trading of any securities
issued or guaranteed by the Company shall have been suspended on any exchange or in any
over-the-counter market; (iii) a general moratorium on commercial banking activities shall have
been declared by federal or New York State authorities; or (iv) there shall have occurred any
outbreak or escalation of hostilities or any change in financial markets or any calamity or crisis,
either within or outside the United States, that, in the judgment of the Representatives, is
material and adverse and makes it impracticable or inadvisable to proceed with the offering, sale
or delivery of the Securities on the terms and in the manner contemplated by this Agreement, the
Time of Sale Information and the Prospectus.
10. Defaulting Underwriter.
21
(a) If, on the Closing Date, any Underwriter defaults on its obligation to purchase the
Securities that it has agreed to purchase hereunder, the non-defaulting Underwriters may in
their discretion arrange for the purchase of such Securities by other persons satisfactory
to the Company on the terms contained in this Agreement. If, within 36 hours after any such
default by any Underwriter, the non-defaulting Underwriters do not arrange for the purchase
of such Securities, then the Company shall be entitled to a further period of 36 hours
within which to procure other persons satisfactory to the non-defaulting Underwriters to
purchase such Securities on such terms. If other persons become obligated or agree to
purchase the Securities of a defaulting Underwriter, either the non defaulting Underwriters
or the Company may postpone the Closing Date for up to five full business days in order to
effect any changes that in the opinion of counsel for the Company or counsel for the
Underwriters may be necessary in the Registration Statement and the Prospectus or in any
other document or arrangement, and the Company agrees to promptly prepare any amendment or
supplement to the Registration Statement and the Prospectus that effects any such changes.
As used in this Agreement, the term “Underwriter” includes, for all purposes of this
Agreement unless the context otherwise requires, any person not listed in Schedule 1 hereto
that, pursuant to this Section 10, purchases Securities that a defaulting Underwriter agreed
but failed to purchase.
(b) If, after giving effect to any arrangements for the purchase of the Securities of a
defaulting Underwriter or Underwriters by the non-defaulting Underwriters and the Company as
provided in paragraph (a) above, the aggregate principal amount of such Securities that
remains unpurchased does not exceed one-eleventh of the aggregate principal amount of all
the Securities, then the Company shall have the right to require each non-defaulting
Underwriter to purchase the principal amount of Securities that such Underwriter agreed to
purchase hereunder plus such Underwriter’s pro rata share (based on the principal amount of
Securities that such Underwriter agreed to purchase hereunder) of the Securities of such
defaulting Underwriter or Underwriters for which such arrangements have not been made.
(c) If, after giving effect to any arrangements for the purchase of the Securities of a
defaulting Underwriter or Underwriters by the non-defaulting Underwriters and the Company as
provided in paragraph (a) above, the aggregate principal amount of such Securities that
remains unpurchased exceeds one-eleventh of the aggregate principal amount of all the
Securities, or if the Company shall not exercise the right described in paragraph (b) above,
then this Agreement shall terminate without liability on the part of the non-defaulting
Underwriters. Any termination of this Agreement pursuant to this Section 10 shall be
without liability on the part of the Company, except that the Company will continue to be
liable for the payment of expenses as set forth in Section 11 hereof and except that the
provisions of Section 7 hereof shall not terminate and shall remain in effect.
(d) Nothing contained herein shall relieve a defaulting Underwriter of any liability it
may have to the Company or any non-defaulting Underwriter for damages caused by its default.
11. Payment of Expenses.
22
(a) Whether or not the transactions contemplated by this Agreement are consummated or
this Agreement is terminated, the Company will pay or cause to be paid all costs and
expenses incident to the performance of its obligations hereunder, including without
limitation, (i) the costs incident to the authorization, issuance, sale, preparation and
delivery of the Securities and any taxes payable in that connection; (ii) the costs incident
to the preparation, printing and filing under the Securities Act of the Registration
Statement, the Preliminary Prospectus, any Issuer Free Writing Prospectus, any Time of Sale
Information and the Prospectus (including all exhibits, amendments and supplements thereto)
and the distribution thereof; (iii) the costs of reproducing and distributing each of the
Transaction Documents; (iv) the fees and expenses of the Company’s counsel and independent
accountants; (v) the fees and expenses incurred in connection with the registration or
qualification and determination of eligibility for investment of the Securities under the
laws of such jurisdictions as the Representatives may designate and the preparation,
printing and distribution of a Blue Sky Memorandum (including the related fees and expenses
of counsel for the Underwriters); (vi) any fees charged by rating agencies for rating the
Securities; (vii) the fees and expenses of the Trustee and any paying agent (including
related fees and expenses of any counsel to such parties); (viii) all expenses and
application fees incurred in connection with any filing with, and clearance of the offering
by, the National Association of Securities Dealers, Inc.; and (ix) all expenses incurred by
the Company in connection with any “road show” presentation to potential investors; and (x)
all expenses and application fees related to the listing of the Securities on the Exchange,
if any.
(b) If (i) this Agreement is terminated pursuant to Section 9, (ii) the Company for any
reason fails to tender the Securities for delivery to the Underwriters or (iii) the
Underwriters decline to purchase the Securities for any reason permitted under this
Agreement, the Company agrees to reimburse the Underwriters for all reasonable out-of-pocket
costs and expenses (including the fees and expenses of their counsel) reasonably incurred by
the Underwriters in connection with this Agreement and the offering contemplated hereby.
12. Persons Entitled to Benefit of Agreement. This Agreement shall inure to the benefit of
and be binding upon the parties hereto and their respective successors and the officers and
directors and any controlling persons referred to herein, and the affiliates of each Underwriter
referred to in Section 7 hereof. Nothing in this Agreement is intended or shall be construed to
give any other person any legal or equitable right, remedy or claim under or in respect of this
Agreement or any provision contained herein. No purchaser of Securities from any Underwriter shall
be deemed to be a successor merely by reason of such purchase.
13. Survival. The respective indemnities, rights of contribution, representations, warranties
and agreements of the Company and the Underwriters contained in this Agreement or made by or on
behalf of the Company or the Underwriters pursuant to this Agreement or any certificate delivered
pursuant hereto shall survive the delivery of and payment for the Securities and shall remain in
full force and effect, regardless of any termination of this Agreement or any investigation made by
or on behalf of the Company or the Underwriters.
23
14. Certain Defined Terms. For purposes of this Agreement, (a) except where otherwise
expressly provided, the term “affiliate” has the meaning set forth in Rule 405 under the Securities
Act; (b) the term “business day” means any day other than a day on which banks are permitted or
required to be closed in New York City; and (c) the term “subsidiary” has the meaning set forth in
Rule 405 under the Securities Act ; and (d) the term “significant subsidiary” has the meaning set
forth in Rule 1-02 of Regulation S-X under the Exchange Act.
15. Miscellaneous.
(a) Authority of the Representatives. Any action by the Underwriters hereunder may be
taken by X.X. Xxxxxx Securities Inc. or Citigroup Global Markets Inc. on behalf of the
Underwriters, and any such action taken by X.X. Xxxxxx Securities Inc. or Citigroup Global
Markets Inc. shall be binding upon the Underwriters.
(b) Notices. All notices and other communications hereunder shall be in writing and
shall be deemed to have been duly given if mailed or transmitted and confirmed by any
standard form of telecommunication. Notices to the Underwriters shall be given to the
Representatives c/o X.X. Xxxxxx Securities Inc., 000 Xxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000
(fax: 000-000-0000); Attention: Investment Grade Syndicate Desk. Notices to the Company
shall be given to it at Lexmark International, Inc., 000 X. Xxx Xxxxxx Xx., Xxxxxxxxx,
Xxxxxxxx 00000 (fax: 000-000-0000); Attention: Xxxxxxx X. Xxxx, Vice President, General
Counsel and Secretary with a copy to Xxxxxx X. Xxxxx, Corporate Counsel and Assistant
Secretary.
(c) Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of New York.
(d) Counterparts. This Agreement may be signed in counterparts (which may include
counterparts delivered by any standard form of telecommunication), each of which shall be an
original and all of which together shall constitute one and the same instrument.
(e) Amendments or Waivers. No amendment or waiver of any provision of this Agreement,
nor any consent or approval to any departure therefrom, shall in any event be effective
unless the same shall be in writing and signed by the parties hereto.
(f) Headings. The headings herein are included for convenience of reference only and
are not intended to be part of, or to affect the meaning or interpretation of, this
Agreement.
24
If the foregoing is in accordance with your understanding, please indicate your acceptance of
this Agreement by signing in the space provided below.
Very truly yours, LEXMARK INTERNATIONAL, INC. |
||||
By: | /s/ Xxxxxxx Xxxxxx | |||
Name: | Xxxxxxx Xxxxxx | |||
Title: | Vice President and Treasurer | |||
Accepted:
May 19, 2008
X.X. XXXXXX SECURITIES INC.
CITIGROUP GLOBAL MARKETS INC.
For itself and on behalf of the
several Underwriters listed
in Schedule 1 hereto.
several Underwriters listed
in Schedule 1 hereto.
X.X. XXXXXX SECURITIES INC. |
||||
By: | /s/ Xxxxxxx X. Xxxxxxx | |||
Name: Xxxxxxx X. Xxxxxxx | ||||
Title: Vice President | ||||
CITIGROUP GLOBAL MARKETS INC. |
||||
By: | /s/ Xxxxx X. Xxxxxxxxx | |||
Xxxxx X. Xxxxxxxxx | ||||
Managing Director | ||||
Schedule 1
Principal Amount | Principal Amount | |||||||
Underwriter | Notes due 2013 | Notes due 2018 | ||||||
X.X. Xxxxxx Securities Inc. |
$ | 175,000,000 | $ | 150,000,000 | ||||
Citigroup Global Markets Inc. |
140,000,000 | 120,000,000 | ||||||
Scotia Capital (USA) Inc. |
17,500,000 | 15,000,000 | ||||||
SunTrust Xxxxxxxx Xxxxxxxx, Inc. |
17,500,000 | 15,000,000 | ||||||
Total |
$ | 350,000,000 | $ | 300,000,000 |
Schedule 2
List of significant subsidiaries
Lexmark International Financial Services Company Ltd.
Lexmark International Technology S.A.
Lexmark Receivables Corporation
Annex A-1
Form of Opinion of Xxxxxxxx Xxxx LLP
(-) The Registration Statement is an “automatic shelf registration statement” as defined in
Rule 405 of the Securities Act that has been filed with the Commission not earlier than three years
prior to the date of this Agreement; each of the Preliminary Prospectus and the Prospectus was
filed with the Commission pursuant to the subparagraph of Rule 424(b) under the Securities Act
specified in such opinion on the date specified therein; and, to our knowledge, no order suspending
the effectiveness of the Registration Statement has been issued, no notice of objection of the
Commission to the use of such registration statement or any post-effective amendment thereto
pursuant to Rule 401(g)(2) under the Securities Act has been received by the Company and no
proceeding for that purpose or pursuant to Section 8A of the Securities Act against the Company or
in connection with the offering is pending or, to the best knowledge of such counsel, threatened by
the Commission.
(-) The Registration Statement, the Preliminary Prospectus, each Issuer Free Writing
Prospectus included in the Time of Sale Information and the Prospectus (other than (a) the
financial statements and related schedules thereto, including the notes thereto and the independent
registered public accounting firm’s report thereon, (b) the other financial and accounting data
that is included or incorporated by reference therein, and (c) the documents incorporated by
reference in the Registration Statement, the Time of Sale Information, the Preliminary Prospectus
and the Prospectus or any further amendment or supplement thereto made by the Company prior to the
Closing Date, in each case as to which such counsel need express no opinion) appear on their face
to be appropriately responsive in all material respects to the requirements of the Securities Act;
and the Indenture complies as to form in all material respects with the requirements of the Trust
Indenture Act.
(-) Each Transaction Document conforms in all material respects to the summary descriptions
thereof contained in the Registration Statement, the Time of Sale Information and the Prospectus.
(-) The descriptions in the Registration Statement, the Time of Sale Information and the
Prospectus of statutes, legal, governmental and regulatory proceedings and contracts and other
documents are accurate in all material respects; the statements in the Preliminary Prospectus and
Prospectus under the heading “Material U.S. federal income tax considerations”, and incorporated by
reference in the Preliminary Prospectus and the Prospectus from Item 3 of Part I of the Company’s
Annual Report on Form 10-K for the year ended December 31, 2007 to the extent that they constitute
summaries of matters of law or regulation or legal conclusions, fairly summarize the matters
described therein in all material respects;
(-) To the best knowledge of such counsel, (A) there are no current or pending legal,
governmental or regulatory actions, suits or proceedings that are required under the Securities Act
to be described in the Registration Statement or the Prospectus and that are not so described in
the Registration Statement, the Time of Sale Information and the Prospectus and (B) there are no
statutes, regulations or contracts and other documents that are required under the Securities Act
to
A-1-1
be filed as exhibits to the Registration Statement or described in the Registration Statement or
the Prospectus and that have not been so filed as exhibits to the Registration Statement or
described in the Registration Statement, the Time of Sale Information and the Prospectus.
(-) The Company is not and, after giving effect to the offering and sale of the Securities and
the application of the proceeds thereof as described in the Registration Statement, the Time of
Sale Information and the Prospectus, will not be an “investment company” or an entity “controlled”
by an “investment company” within the meaning of the Investment Company Act.
(-) The documents incorporated by reference in the Time of Sale Information and the Prospectus
or any further amendment or supplement thereto made by the Company prior to the Closing Date (other
than (a) the financial statements and related schedules thereto, including the notes thereto and
the independent registered public accounting firm’s report thereon, and (b) the other financial and
accounting data that is included or incorporated by reference therein, in each case as to which
such counsel need express no opinion), when they became effective or were filed with the
Commission, as the case may be, appeared on their face to be appropriately responsive in all
material respects to the requirements of the Exchange Act and the rules and regulations of the
Commission thereunder.
Such counsel shall also state that they have participated in conferences with representatives
of the Company, representatives of the Company’s independent registered public accounting firm and
representatives of the Underwriters at which conferences the contents of the Registration
Statement, the Time of Sale Information and the Prospectus and any amendment and supplement thereto
and related matters were discussed. We have not participated in the preparation of the documents
incorporated by reference into the Registration Statement, the Time of Sale Information and the
Prospectus, however, we have reviewed such documents. Although such counsel assumes no
responsibility for the accuracy, completeness or fairness of the Registration Statement, the Time
of Sale Information, the Prospectus and any amendment or supplement thereto (except as expressly
provided above), nothing has come to the attention of such counsel to cause such counsel to believe
that the Registration Statement, at the time of its effective date (including the information, if
any, deemed pursuant to Rule 430A, 430B or 430C to be part of the Registration Statement at the
time of effectiveness), contained any untrue statement of a material fact or omitted to state a
material fact required to be stated therein or necessary to make the statements therein not
misleading, that the Time of Sale Information, at the Time of Sale (which such counsel may assume
to be the date of the Underwriting Agreement) contained any untrue statement of a material fact or
omitted to state a material fact necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading or that the Prospectus or any amendment or
supplement thereto as of its date and the Closing Date contains any untrue statement of a material
fact or omits to state a material fact necessary to make the statements therein, in the light of
the circumstances under which they were made, not misleading (other than (a) the financial
statements and related schedules thereto, including the notes thereto and the independent
registered public accounting firm’s report thereon, and (b) the other financial and accounting data
that is included or incorporated by reference therein, in each case as to which such counsel need
express no belief).
A-1-2
In rendering such opinion, such counsel may rely as to matters of fact on certificates of
responsible officers of the Company and public officials that are furnished to the Underwriters.
The opinion of Xxxxxxxx Xxxx LLP described above shall be rendered to the Underwriters at the
request of the Company and shall so state therein.
X-0-0
Xxxxx X-0
Form of Opinion of Xxxxxxx X. Xxxx, Esq.
(-) Each of the Company and LITSA has been duly incorporated and is validly existing as a
corporation in good standing under the laws of their respective jurisdictions of organization, with
power and authority (corporate and other), to own its properties and conduct its business as
described in the Prospectus or the Company’s Annual Report on Form 10-K for the fiscal year ended
December 31, 2008 incorporated by reference therein (the “Form 10-K”).
(-) Each of the Company and LITSA has been duly qualified as a foreign corporation for the
transaction of business and is in good standing under the laws of each other jurisdiction in which
it owns or leases properties or conducts any business so as to require such qualification, except
where the failure to so qualify or be in good standing would not have a Material Adverse Effect on
the Company and its subsidiaries taken as a whole.
(-) The Company has an authorized capitalization as described in the Registration Statement,
the Time of Sale Information and the Prospectus, and, except as otherwise described in the
Prospectus, all of the outstanding shares of capital stock of the Company have been duly authorized
and validly issued and are fully paid and non-assessable; all of the outstanding shares of capital
stock of LITSA have been duly authorized and validly issued, are fully paid and non-assessable and
(except for directors’ qualifying shares, if any) are owned directly or indirectly by the Company.
(-) To the best of my knowledge and other than as set forth or contemplated in the
Registration Statement, the Time of Sale Information, and the Prospectus or in the Form 10-K, there
are no legal, governmental or regulatory investigations, actions, suits or proceedings pending to
which the Company or LITSA is a party or to which any property of the Company or LITSA is the
subject which, if determined adversely to the Company or LITSA, individually or in the aggregate,
could reasonably be expected to have, a Material Adverse Effect on the Company and its subsidiaries
taken as a whole.
(-) This Agreement has been duly authorized, executed and delivered by the Company.
(-) The Notes have been duly authorized, executed and delivered by the Issuer and, when they
have been duly authenticated by the Trustee in accordance with the terms of the Indenture and
delivered to and paid for by the Underwriters in accordance with the terms of the Underwriting
Agreement, will constitute valid and binding obligations of the Issuer entitled to the benefits
provided by the Indenture and enforceable in accordance with their terms and will be entitled to
the benefits of the Indenture, subject as to enforcement, to the Enforceability Exceptions.
(-) The Indenture has been duly authorized, executed and delivered by the Company and assuming
the due authorization, execution and delivery thereof by the Trustee pursuant
A-2-1
thereto constitutes a valid and legally binding instrument of the Company enforceable in accordance
with its terms, subject to the Enforceability Exceptions.
(-) The execution, delivery and performance by the Company of its obligations under each of
the Transaction Documents, the issuance and sale by the Company of the Notes, the performance by
the Company of all of its obligations under the Notes, the Indenture and the Underwriting Agreement
and the consummation of the transactions therein contemplated will not conflict with or result in a
breach of any of the terms or provisions of, or constitute a default under, any indenture,
mortgage, deed of trust, loan agreement or other material agreement or instrument known to me to
which the Company or any subsidiary is a party or by which the Company or any subsidiary is bound
or to which any of the property or assets of the Company or any subsidiary is subject, except for
violations or defaults which individually or in the aggregate are not material to the Company and
its subsidiaries taken as a whole; nor will any such action result in any violation of the
provisions of the organizational documents of the Company or any subsidiary or any applicable law
or statute or any order, rule or regulation of any court or governmental agency or body having
jurisdiction over the Company or any subsidiary or any of their respective properties.
(-) No consent, approval, authorization, order, registration or qualification of or with any
court or governmental or regulatory authority is required for the issue and sale of the Notes or
the consummation by the Company of the other transactions contemplated by the Underwriting
Agreement or the Indenture, except such consents, approvals, authorizations, orders, licenses,
registrations or qualifications as have been obtained under the Securities Act and the Trust
Indenture Act or state securities or Blue Sky laws.
A-2-2
Annex B
Time of Sale Information
Preliminary
Prospectus dated May 19, 2008
Free Writing Prospectus dated May 19, 2008
B-1
Annex C
Lexmark International, Inc.
5.900%
Notes due June 1, 2013 (the “Notes due 2013”)
6.650% Notes due June 1, 2018 (the “Notes due 2018”)
Pricing Term Sheet
Notes due 2013
6.650% Notes due June 1, 2018 (the “Notes due 2018”)
Pricing Term Sheet
Notes due 2013
Issuer:
|
Lexmark International, Inc. | |
Principal Amount:
|
$350,000,000 | |
Security Type:
|
Senior Note | |
Maturity:
|
June 1, 2013 | |
Coupon:
|
5.900% | |
Price to Public:
|
99.830% | |
Yield to Maturity:
|
5.939% | |
Spread to Benchmark Treasury:
|
2.850% | |
Benchmark Treasury:
|
3.125% due April 30, 2013 | |
Benchmark Treasury Spot and Yield:
|
100-5 1/4 3.089% | |
Interest Payment Dates:
|
June 1 and December 1, commencing December 1, 2008 | |
Make-Whole Call:
|
Treasury Rate plus 40 basis points | |
Trade Date:
|
May 19, 2008 | |
Settlement Date:
|
May 22, 2008 (T+3) | |
Denominations:
|
$2,000 x $1,000 | |
Ratings1:
|
Baa2 with stable outlook (Xxxxx’x
Investors Service, Inc.) / BBB with negative outlook (Standard & Poor’s Ratings Services) |
|
Joint Bookrunners:
|
X.X. Xxxxxx Securities Inc. Citigroup Global Markets Inc. |
|
Co-Managers:
|
Scotia Capital (USA) Inc. SunTrust Xxxxxxxx Xxxxxxxx, Inc. |
1 | A securities rating is not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at any time. |
C-1
Notes
due 2018
Issuer:
|
Lexmark International, Inc. | |
Principal Amount:
|
$300,000,000 | |
Security Type:
|
Senior Note | |
Maturity:
|
June 1, 2018 | |
Coupon:
|
6.650% | |
Price to Public:
|
99.730% | |
Yield to Maturity:
|
6.687% | |
Spread to Benchmark Treasury:
|
2.850% | |
Benchmark Treasury:
|
3.875% due May 15, 2018 | |
Benchmark Treasury Spot and Yield:
|
100-10 3.837% | |
Interest Payment Dates:
|
June 1 and December 1, commencing December 1, 2008 | |
Make-Whole Call:
|
Treasury Rate plus 40 basis points | |
Trade Date:
|
May 19, 2008 | |
Settlement Date:
|
May 22, 2008 (T+3) | |
Denominations:
|
$2,000 x $1,000 | |
Ratings1:
|
Baa2 with stable outlook (Xxxxx’x Investors Service, Inc.) / BBB with negative outlook (Standard & Poor’s Ratings Services) |
|
Joint Bookrunners:
|
X.X. Xxxxxx Securities Inc. Citigroup Global Markets Inc. |
|
Co-Managers:
|
Scotia Capital (USA) Inc. SunTrust Xxxxxxxx Xxxxxxxx, Inc. |
The issuer has filed a registration statement (including a prospectus) with the SEC for the
offering to which this communication relates. Before you invest, you should read the prospectus in
that registration statement and other documents the issuer has filed with the SEC for more complete
information about the issuer and this offering. You may get these documents for free by visiting
XXXXX on the SEC Web site at xxx.xxx.xxx. Alternatively, the issuer, any underwriter or any dealer
participating in the offering will arrange to send you the prospectus if you request it by calling
X.X. Xxxxxx Securities Inc. collect at 000-000-0000 or Citigroup Global Markets Inc. toll free at
0-000-000-0000.
1 | A securities rating is not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at any time. |
C-2