EMPLOYEE HEALTH AND SAFETY

Occupational Health and Safety Advisory Services (OHSAS) is a multi-disciplinary organization with expertise in a comprehensive range of occupational health and safety skills. OHSAS18001 is a voluntary standard that guides organizations in establishing health and safety management systems for their businesses. Lexmark-owned and leased manufacturing facilities in Boulder, Colorado, Cebu, Philippines and Juárez, Mexico, have received OHSAS 18001 certification. Our Lexington, Kentucky and Orléans, France facilities also hold OHSAS 18001 certification. Lexmark spends up to $10,000 per facility for fees related to site certification by ISO 14001 and OHSAS 18011 standards.

The effectiveness of Lexmark's Safety Program is determined by OHSAS 18001 Objectives and Targets as well as internal audits and top management reviews of our Safety Management System. These audits and reviews are conducted in conjunction with the conformance audits required as part of OHSAS recertification. We use both audits’ findings to improve our internal processes and promote best practices across our operations. Lexmark employees are involved in setting the objectives for our health and safety management systems.

All Lexmark facilities are guided by the Company’s Corporate Environmental, Health and Safety Instructions, which define the essential programs that each facility must manage in order to meet the objectives of our health and safety policies. It is mandantory to develop written programs that assure legal and regulatory compliance has been adequately addressed. Any changes to health and safety procedures are communicated to all applicable employees through bulletin boards, internal Web site postings, electronic communications, handbooks and meetings with managers.¹

Lexmark has corrective and preventive-action teams that work with responsible personnel to monitor and report on progress and determine if actions are completed and there are internal audit teams that determine the effectiveness of actions taken to address nonconformities with the Health and Safety Management System.

All employees and contractors receive health and safety training and are encouraged to report concerns about health and safety issues. This training includes policy and is provided in stand-up classrooms, online courses as well as on the job, depending on which best fits the need. Training requirements are determined by health and safety program managers as well as employees' direct managers and are based on job requirements, equipment and materials used, regulations and other factors. Lexmark does not have workers who are involved in occupational activities which have a high incidence or high risk of specific diseases.

Safety performance of subcontractors is reviewed during initial contract discussions. The subcontractors must have proof that their employees are properly trained and aware of all health and safety aspects of the jobs they will perform on behalf of Lexmark.

Compliance and safety teams conduct audits and inspections on a regular basis with all aspects of the health and safety management systems covered in these activities. Findings are documented, entered into the corrective and preventive action system and tracked to ensure actions are completed in a timely fashion. Follow-up inspections verify completion and effectiveness of the actions taken. Best-practice measures are then implemented in other areas or sites.

Lexmark requires emergency preparedness with emergency response teams in each manufacturing and development facility. One feature of emergency preparedness training on Lexmark's internal Web site is an icon that will play an audio of the different tones of a fire alarm (get outside!) and a tornado warning (stay inside!).

EMPLOYEE RIGHTS

Lexmark is committed to providing a work environment free from harassment or discrimination based on race, color, religion, gender, sexual orientation, gender identity, national origin, age, disability, veteran status, or for any other unlawful reason. This policy is driven by Lexmark's respect for the dignity of the individual and commitment to treating all persons equitably. We investigate all credible complaints of discrimination brought to the attention of management and deal with them in an expedient and non-retaliatory manner. For example, in the U.S., employees who are found to have engaged in harassment or discrimination according to the terms of this policy, or to have misused their positions of authority in this regard, are subject to immediate disciplinary measures, up to and including dismissal.

Lexmark's Position on Conflict Minerals Consistent with Lexmark’s commitment to acting as a socially responsible company, Lexmark works through the EICC to support positive labor practices. We are working directly with our suppliers (and their suppliers, etc.) to clearly understand that minerals do not originate from conflict sources. The issue of the exploitation and trade of conflict minerals originating in the Democratic Republic of the Congo is challenging for all companies as there is not a mechanism to chemically trace minerals to their source.

Lexmark adheres to the conventions of the International Labour Organization (ILO) that aim to promote workers' rights, fair employment opportunities and unimpeded channels of communication among employees. Lexmark honors its employees’ free choices and complies with all state and federal workplace laws and guidelines, including those associated with labor-organizing activities. Lexmark has not identified any of its operations where employee rights to exercise freedom of association of collective bargaining may be at risk.

Other ILO and United Nations Global Compact (UNGC) initiatives include the abolition of forced labor, the freedom of association and the prohibition of child labor. These initiatives are discussed in Lexmark's Supplier Code of Conduct to which Lexmark and applicable Lexmark suppliers are bound. The Supplier Code of Conduct also discusses Lexmark’s policy on Freely Chosen Employment. The Company has not found any of its operations to have significant risk for incidents of forced or compulsory labor or child labor or young workers exposed to hazardous work.

No Lexmark employees are represented by collective bargaining units. Works Councils are established at certain of Lexmark's European locations which, on behalf of employees, require employers to provide company information for review and to engage in consultation on certain company decisions. Information on the European Works Councils (EWC) is available at http://www.etuc.org/r/57.

All of Lexmark's security personnel – including contracted security personnel – have been trained in the organization's policies on, or specific procedures for, human rights issues and their application to security.

In our experience, open communication and direct engagement between workers and management are key factors in resolving any workplace issues. Whenever possible, Lexmark provides employees several weeks notice of significant operational changes that could substantially affect them. For example, in the case of restructuring in 2008 and 2009, Lexmark provided employees weeks to months of notice. There are instances when prior notification is not possible, such as the October Lexmark CEO transition, which was announced the day it was effective.

Lexmark has not identified any incidents involving indigenous rights among the organization's own employees or in communities near existing operations that are likely to be affected by planned or proposed future operations.

EQUAL EMPLOYMENT OPPORTUNITY (EEO)

Lexmark is committed to equal opportunity in all areas of our operations. All Lexmark business activities and employment-related activities are administered without regard to race, color, religion, gender, sexual orientation, gender identity, national origin, disability, age or veteran status.

Lexmark currently requires training on the human rights aspects of EEO and Affirmative Action which is part of the 40 average hours of training per manager. Starting in 2011, all new Lexmark employees will be required to review the supplier code of conduct, which addresses EEO and aspects of human rights relevant to operations.

We investigate all credible complaints of discrimination brought to the attention of management and deal with it in an expedient and non-retaliatory manner.

1. Lexmark employees are not represented by unions therefore, there are no formal work agreements in which health and safety is addressed.