EXHIBIT 1.1
IMS Health Incorporated
Common Stock par value $0.01 per share
_________________
Underwriting Agreement
Goldman, Sachs & Co.
85 Broad Street
New York, New York 10004.
Ladies and Gentlemen:
IMS (Gibraltar) Holding Limited (the “ Subsidiary
”), a wholly owned-subsidiary of IMS Health Incorporated, a
Delaware corporation (the “Company” ), and
Goldman, Sachs & Co. ( “Goldman” ) have
entered into an Accelerated Stock Buyback Agreement (the “
ASB Agreement ”), dated January 19, 2007, relating to
shares of Common Stock, par value $0.01 per share (
“Stock” ) of the Company. The Subsidiary’s
obligations under the ASB Agreement were fully and unconditionally
guaranteed by the Company pursuant to the Guarantee dated January
19, 2007 (the “ Guarantee ”). Subject to the
terms and conditions stated therein and herein, (i) the Company and
the Subsidiary will settle obligations owed to Goldman thereunder
by delivery of a certain number of shares of Stock (the “
Securities ”) from time to time to the order of
Goldman, except for any obligation to deliver Makewhole Shares (as
defined in the ASB Agreement) which the Company and the Subsidiary
may settle in Securities or in cash and (ii) if such obligations
are settled by delivery of Securities, Goldman will use its good
faith efforts to complete sales of such Securities pursuant to the
Registration Statement (as defined below) to the extent that such
sales are required for Goldman to realize Net Proceeds (as defined
in the ASB Agreement) as promptly as commercially practicable,
subject to the satisfaction of all the conditions set forth herein.
Goldman agrees that the number of Securities deliverable to it
pursuant to Section 2 of Annex B to the ASB Agreement can be
increased by a number of Securities equal to (i) the amount of
reasonable out-of-pocket expenses incurred by Goldman in connection
with the proposed offer and sale of the Securities (which amount
the Company has been notified of by Goldman), divided by (ii) the
Net Share Settlement Price (as defined in the ASB
Agreement).
1. The
Company represents and warrants to, and agrees with, Goldman as of
the date hereof and at all times during the Prospectus
Delivery
Period (as defined below), other
than any time following notice by the Company to Goldman pursuant
to Section 3(a)(vi) or 3(e)(ii) and prior to the Company’s
notice to Goldman that the event or condition described in such
previous notice has been remedied, that:
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(a) An “
automatic shelf registration statement ” as defined
under Rule 405 under the Securities Act of 1933, as amended (the
“ Act ”) on Form S-3 (File No. 333-140975) in
respect of the Securities was filed with the Securities and
Exchange Commission (the “ Commission ”) on
February 28, 2007; such registration statement, and any
post-effective amendment thereto, became effective on filing; and
no stop order suspending the effectiveness of such registration
statement or any part thereof has been issued and no proceeding for
that purpose has been initiated or, to the Company’s
knowledge, threatened by the Commission, 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 Act has been received by the Company (the base prospectus filed
as part of such registration statement, in the form in which it has
most recently been filed with the Commission on or prior to the
date of this Agreement, is hereinafter called the “ Basic
Prospectus ”; any preliminary prospectus (including any
preliminary prospectus supplement) relating to the Securities filed
with the Commission pursuant to Rule 424(b) under the Act is
hereinafter called a “ Preliminary Prospectus ”;
the various parts of such registration statement, including all
exhibits thereto but excluding Form T-1 and including any
prospectus supplement relating to the Securities that is filed with
the Commission and deemed by virtue of Rule 430B to be part of such
registration statement, each as amended at the time such part of
the registration statement became effective, are hereinafter
collectively called the “ Registration Statement
”; the Basic Prospectus, as amended and supplemented as of
each time during the Prospectus Delivery Period (other than any
time following notice by the Company to Goldman pursuant to Section
3(a)(vi) or 3(e)(ii) and prior to the Company’s notice to
Goldman that the event or condition described in such previous
notice has been remedied), is hereinafter called the
“Prospectus ”; any reference herein to the Basic
Prospectus, 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 Act, as
of the date of such prospectus; any reference to any amendment or
supplement to the Basic Prospectus, any Preliminary Prospectus or
the Prospectus shall be deemed to refer to and include any
post-effective amendment to the Registration Statement, any
prospectus supplement relating to the Securities filed with the
Commission pursuant to Rule 424(b) under the Act and any documents
filed under the Securities Exchange Act of 1934, as amended (the
“ Exchange Act ”), and incorporated therein, in
each case after the date of the Basic Prospectus, such Preliminary
Prospectus, or
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the Prospectus,
as the case may be; any reference to any amendment to the
Registration Statement shall be deemed to refer to and include any
annual report of the Company filed pursuant to Section 13(a) or
15(d) of the Exchange Act after the effective date of the
Registration Statement that is incorporated by reference in the
Registration Statement; and any “issuer free writing
prospectus” as defined in Rule 433 under the Act relating to
the Securities is hereinafter called an “ Issuer Free
Writing Prospectus ”);
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(b) No order
preventing or suspending the use of any Preliminary Prospectus or
any Issuer Free Writing Prospectus has been issued by the
Commission, and each Preliminary Prospectus, at the time of filing
thereof, conformed in all material respects to the requirements of
the Act and the rules and regulations of the Commission thereunder,
and did not contain an 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; provided,
however , that this representation and warranty shall not apply
to any statements or omissions made in reliance upon and in
conformity with information furnished in writing to the Company by
Goldman expressly for use therein;
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(c) The Prospectus,
as of the date hereof and as of each other time as of which this
representation is made, did not 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
under which they were made, not misleading; and each Issuer Free
Writing Prospectus listed on Schedule I(a) hereto does not
conflict with the information contained in the Registration
Statement or the Prospectus and each such Issuer Free Writing
Prospectus, as supplemented by and taken together with the
Prospectus as of the date hereof and as of each other time as of
which this representation is made, did not 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 under which they were made, not misleading;
provided, however , that this representation and warranty
shall not apply to statements or omissions made in an Issuer Free
Writing Prospectus in reliance upon and in conformity with
information furnished in writing to the Company by Goldman
expressly for use therein;
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(d) The documents
incorporated by reference in the Prospectus, when they became
effective or were filed with the Commission, as the case may be,
conformed in all material respects to the requirements of the Act
or the Exchange Act, as applicable, and the rules and regulations
of the Commission thereunder, and none of such documents contained
an untrue statement of a material fact or omitted to state a
material fact
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required to be
stated therein or necessary to make the statements therein not
misleading; any further documents so filed and incorporated by
reference in the Prospectus or any further amendment or supplement
thereto, 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 Act or the Exchange Act, as
applicable, and the rules and regulations of the Commission
thereunder and will not contain an 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 not misleading;
provided, however , that this representation and warranty
shall not apply to any statements or omissions made in reliance
upon and in conformity with information furnished in writing to the
Company by you expressly for use therein; and no such documents
were filed with the Commission since the Commission’s close
of business on the business day immediately prior to the date of
this Agreement and prior to the execution of this Agreement, except
as set forth on Schedule I(b) hereto;
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(e) The
Registration Statement conforms, and the Prospectus and any further
amendments or supplements to the Registration Statement and the
Prospectus will conform, in all material respects to the
requirements of the Act and the rules and regulations of the
Commission thereunder and do not and will not, as of the applicable
effective date as to each part of the Registration Statement and as
of the applicable filing date as to the Prospectus and any
amendment or supplement thereto, contain an 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 not
misleading; provided, however , that this representation and
warranty shall not apply to any statements or omissions made in
reliance upon and in conformity with information furnished in
writing to the Company by you expressly for use therein;
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(f) Neither the
Company nor any of its subsidiaries has sustained since the date of
the latest audited financial statements included or incorporated by
reference in the Prospectus any material loss or material
interference with its business from fire, explosion, flood or other
calamity, whether or not covered by insurance, or from any labor
dispute or court or governmental action, order or decree, otherwise
than as set forth or contemplated in the Prospectus; and, since the
respective dates as of which information is given in the
Registration Statement and the Prospectus, there has not been any
change in the capital stock or long term debt of the Company or any
of its subsidiaries or any material adverse change, or any
development involving a prospective material adverse change, in or
affecting the general affairs, management, financial position,
stockholders’ equity or results of operations of the Company
and its subsidiaries taken as a whole (a “ Material
Adverse Effect ”), otherwise than as set forth or
contemplated in the Prospectus;
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(g) The Company
and its subsidiaries have good and marketable title in fee simple
to all real property and good and marketable title to all personal
property owned by them, in each case free and clear of all liens,
encumbrances and defects except such as are described in the
Prospectus or such as do not materially affect the value of such
property and do not interfere with the use made and proposed to be
made of such property by the Company and its subsidiaries; and any
real property and buildings held under lease by the Company and its
subsidiaries are held by them under valid, subsisting and
enforceable leases with such exceptions as are not material and do
not interfere with the use made and proposed to be made of such
property and buildings by the Company and its subsidiaries, except
to the extent such interference would not, individually or in the
aggregate, reasonably be expected to have a Material Adverse
Effect;
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(h) The Company
(A) has been duly incorporated and is validly existing as a
corporation in good standing under the laws of Delaware, with power
and authority (corporate and other) to own its properties and
conduct its business as described in the Prospectus, and (B) 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 in the case of
clause (B) for such failure to be so qualified or in good standing
that would not, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect; and each
“significant subsidiary” (as such term is defined in
Rule 1-02 of Regulation S-X promulgated under the Act, a “
Significant Subsidiary ”) of the Company that is a
corporation has been duly incorporated and is validly existing as a
corporation in good standing under the laws of its jurisdiction of
incorporation; each Significant Subsidiary of the Company that is a
limited liability company has been duly formed and is validly
existing as a limited liability company in good standing under the
laws of its jurisdiction of formation; and each Significant
Subsidiary of the Company that is a limited partnership has been
duly formed and is validly existing as a limited partnership in
good standing under the laws of its jurisdiction of
formation;
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(i) The Company
has an authorized capitalization as set forth in the Prospectus and
all of the issued shares of capital stock of the Company have been
duly and validly authorized and issued and are fully paid and
non-assessable and conform to the description of the Stock
contained in the Prospectus; and all of the issued shares of
capital stock of each Significant Subsidiary of the Company have
been duly and validly authorized and issued, are fully paid and
non-assessable and (except for directors’ qualifying shares
or as disclosed in documents filed under the
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Exchange Act)
are owned directly or indirectly by the Company, free and clear of
all liens, encumbrances, equities or claims;
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(j) The Securities
issued and sold by Goldman have been duly and validly authorized
and, when issued and sold by Goldman, will be duly and validly
issued and fully paid and non-assessable and will conform to the
description of the Securities contained in the
Prospectus;
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(k) The issue and
sale of the Securities as contemplated herein and the compliance by
the Company with this Agreement, the delivery of the Securities by
the Company and the Subsidiary in satisfaction of their obligations
under the ASB Agreement and the Guarantee and the consummation of
the transactions contemplated in this Agreement (A) will not
conflict materially with or result in a material breach or
violation of any of the terms or provisions of, or constitute a
material default under, any indenture, mortgage, deed of trust,
loan agreement or other agreement or instrument to which the
Company or any of its subsidiaries is a party or by which the
Company or any of its subsidiaries is bound or to which any of the
property or assets of the Company or any of its subsidiaries is
subject, (B) will not violate the provisions of the Certificate of
Incorporation or By-laws of the Company or (C) will not result in a
material violation of any statute or any order, rule or regulation
of any court or governmental agency or body having jurisdiction
over the Company or any of its subsidiaries or any of their
properties; and no consent, approval, authorization, order,
registration or qualification of or with any such court or
governmental agency or body is required for the issue and sale of
the Securities or the consummation by the Company of the
transactions contemplated by this Agreement, or the delivery of the
Securities by the Company and the Subsidiary in satisfaction of
their obligations under the ASB Agreement and the Guarantee, except
such as have been obtained under the Act and such consents,
approvals, authorizations, registrations or qualifications as may
be required under state securities or Blue Sky laws in connection
with the distribution of the Securities by Goldman;
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(l) Neither the
Company nor any of its subsidiaries is (A) in violation of its
Certificate of Incorporation or By-laws or (B) in default in the
performance or observance of any obligation, covenant or condition
contained in any indenture, mortgage, deed of trust, loan
agreement, lease or other agreement or instrument to which it is a
party or by which it or any of its properties may be bound, except
in the case of clause (B) as would not, individually or in the
aggregate, reasonably be expected to have a Material Adverse
Effect;
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(m) The statements
set forth in the Prospectus under the caption “Description of
Capital Stock of IMS Health Incorporated”, insofar as they
purport to constitute a summary of the terms of the Stock and under
the
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caption
“Provisions Of Our Restated Certificate Of Incorporation And
Restated By-Laws Affecting Change in Control”, insofar as
they purport to describe the provisions of the laws and documents
referred to therein, are accurate and complete and fair in all
material respects;
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(n) Other than as
set forth in the Prospectus, there are no legal or governmental
proceedings pending to which the Company or any of its subsidiaries
is a party or of which any property of the Company or any of its
subsidiaries is the subject which, if determined adversely to the
Company or any of its subsidiaries, would individually or in the
aggregate have a Material Adverse Effect; and, to the best of the
Company’s knowledge, no such proceedings are threatened or
contemplated by governmental authorities or threatened by
others;
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(o) The Company is
not and, after delivery of the Securities to Goldman and after
giving effect to the sale of the Securities pursuant to the terms
hereof, will not be an “investment company”, as such
term is defined in the Investment Company Act of 1940, as amended
(the “ Investment Company Act ”);
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(p) (A) (i) At the
time of filing the Registration Statement, (ii) at the time of the
most recent amendment thereto for the purposes of complying with
Section 10(a)(3) of the Act (whether such amendment was by
post-effective amendment, incorporated report filed pursuant to
Section 13 or 15(d) of the Exchange Act or form of prospectus), and
(iii) at the time the Company or any person acting on its behalf
(within the meaning, for this clause only, of Rule 163(c) under the
Act) made any offer relating to the Securities in reliance on the
exemption of Rule 163 under the Act, the Company was a
“well-known seasoned issuer” as defined in Rule 405
under the Act; and (B) at the earliest time after the filing of the
Registration Statement that the Company or another offering
participant made a bona fide offer (within the meaning of Rule
164(h)(2) under the Act) of the Securities, the Company was not an
“ineligible issuer” as defined in Rule 405 under the
Act;
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(q)
PricewaterhouseCoopers LLP, who have certified certain financial
statements of the Company and its subsidiaries, and have audited
the Company’s internal control over financial reporting and
management’s assessment thereof are independent public
accountants as required by the Act and the rules and regulations of
the Commission thereunder;
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(r) The Company
maintains a system of internal control over financial reporting (as
such term is defined in Rule 13a-15(f) under the Exchange Act) that
complies with the requirements of the Exchange Act and has been
designed by the Company’s principal executive officer and
principal financial officer, or under their supervision, to provide
reasonable
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assurance
regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in
accordance with generally accepted accounting principles. The
Company’s internal control over financial reporting is
effective and the Company is not aware of any material weaknesses
in its internal control over financial reporting;
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(s) Since the date
of the latest audited financial statements included or incorporated
by reference in the Prospectus, there has been no change in the
Company’s internal control over financial reporting that has
materially affected, or is reasonably likely to materially affect,
the Company’s internal control over financial
reporting;
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(t) The Company
maintains disclosure controls and procedures (as such term is
defined in Rule 13a-15(e) under the Exchange Act) that comply with
the requirements of the Exchange Act; such disclosure controls and
procedures have been designed to ensure that material information
relating to the Company and its subsidiaries is made known to the
Company’s principal executive officer and principal financial
officer by others within those entities; and such disclosure
controls and procedures are effective;
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(u) The Company
and its subsidiaries are insured by insurers of recognized
financial responsibility against such losses and risks and in such
amounts as are customary in the businesses in which they are
engaged; the Company and its subsidiaries are in compliance with
the terms of such policies and instruments in all material
respects; and the Company has no reason to believe that the Company
and its subsidiaries will not be able to renew their respective
existing insurance coverage as and when such coverage expires or to
obtain similar coverage from similar insurers as may be necessary
to continue their business at a cost that would not have a Material
Adverse Effect;
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(v) The Company or
one of its subsidiaries owns, licenses or otherwise possesses
legally enforceable rights to use all patents, patent rights,
inventions, trade secrets, know-how, trademarks, service marks,
trade names and copyrights which are necessary to conduct their
business as described in the Registration Statement and Prospectus,
except where the failure to own, license or otherwise possess any
such rights would not, individually or in the aggregate, reasonably
be expected to have a Material Adverse Effect; the expiration of
any such patents, patent rights, trade secrets, trademarks, service
marks, trade names or copyrights would not reasonably be expected
to have a Material Adverse Effect; and neither the Company nor any
subsidiary has received any notice of, and the Company has no
knowledge of, any infringement of or conflict with asserted rights
of others with respect to any patent, patent rights, inventions,
trade secrets, know-how, trademarks, service marks,
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trade names or
copyrights which, singly or in the aggregate, if the subject of an
unfavorable decision, ruling or finding, would reasonably be
expected to result in a Material Adverse Effect;
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For
the purposes of this Agreement, “ Prospectus Delivery
Period ” means each period of time beginning at the
relevant Delivery Time (as defined below) and ending at the time at
which Goldman delivers a written notice to the Company (the “
Completion Notice ”) setting forth (i) the number of
Securities delivered at the relevant Delivery Time that were sold
by Goldman pursuant to the terms hereof, (ii) the price at which
such Securities have been sold and (iii) the Net Proceeds (as
defined in the ASB Agreement) realized from such sales. Goldman
shall deliver the Completio
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