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Underwriting Agreement

Underwriting Agreement

Underwriting Agreement | Document Parties: Goldman, Sachs & Co | IMS Health Incorporated You are currently viewing:
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Goldman, Sachs & Co | IMS Health Incorporated

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Title: Underwriting Agreement
Governing Law: New York     Date: 4/24/2007
Law Firm: Davis Polk    

Underwriting Agreement, Parties: goldman  sachs & co , ims health incorporated
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EXHIBIT 1.1

 

IMS Health Incorporated

Common Stock par value $0.01 per share

_________________

Underwriting Agreement

 

        April 20, 2007

 

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:

 

          (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 ”);

 

 

          (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;

 

 

          (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;

 

 

          (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;

 

 

          (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;

 

 

          (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;

 

 

          (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;

 

 

          (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;

 

 

          (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;

 

 

          (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;

 

 

          (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;

 

 

          (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;

 

 

          (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;

 

 

          (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 ”);

 

 

          (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;

 

 

          (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;

 

 

          (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;

 

 

          (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;

 

 

          (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;

 

 

          (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;

 

 

          (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;

 

            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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