Item 1.01. Entry into a Material Definitive Agreement.
On June 1, 2009 Graphic Packaging International, Inc. ("GPI"), a wholly owned
subsidiary of the registrant, entered into an 8-year supply agreement with Sun
Chemical Corporation ("Sun") whereby GPI has agreed to purchase from Sun at
least 95% of its annual requirements for certain ink products. Pricing for
products purchased under the agreement is based on margin expectations and
manufacturing costs. The agreement may be terminated early (i) by GPI upon
payment of a termination fee or (ii) by Sun if GPI has not purchased certain
minimum annual amounts of products, in which case GPI will be required to pay a
pre-determined termination fee. In addition, the agreement may be extended by
Sun if GPI has not purchased a minimum aggregate amount of products over the
term.
The Company expects to file the agreement as an exhibit to its Quarterly
Report on Form 10-Q for the quarterly period ended on June 30, 2009, and intends
to seek confidential treatment for certain terms and provisions of the
agreement. The foregoing description is qualified in its entirety by reference
to the complete text of the agreement when filed.
Item 9.01 Financial Statements and Exhibits.
99.1 Press Release dated June 2, 2009