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| UNITED STATES DISTRICT COURT |
FOR THE DISTRICT OF COLUMBIA
HOLD SEPARATE STIPULATION AND ORDER
It is hereby stipulated and agreed by and between the undersigned parties, subject to approval and entry by the Court, that:
As used in this Hold Separate Stipulation and Order:
A. "Acquirer" or "Acquirers" means the entity or entities to whom defendant divests some or all of the Divestiture Assets.
B. "Aggregate" means crushed stone and gravel produced at quarries, mines, or gravel pits used for, among other things, the production of ready mix concrete and concrete block.
C. "Cemex" means defendant Cemex, S.A.B. de C.V., a Mexican corporation with its headquarters in Nuevo León, Mexico, its successors and assigns, and its subsidiaries, divisions, groups, affiliates, partnerships and joint ventures, and their directors, officers, managers, agents, and employees.
D. "Concrete block" means a building material used in the construction of residential and commercial structures that is produced at a plant by mixing cementitious material, aggregate, chemical additives, and water, and placing that mixture in molds of various sizes.
E. "Divestiture Assets" means:
F. "Ready mix concrete" means a building material used in the construction of buildings, highways, bridges, tunnels, and other projects that is produced by mixing a cementitious material and aggregate with sufficient water to cause the cement to set and bind.
G. "Rinker" means Rinker Group Limited, an Australian corporation with its headquarters in Chatswood, Australia, its successors and assigns, and its subsidiaries, divisions, groups, affiliates, partnerships and joint ventures, and their directors, officers, managers, agents, and employees.
H. "Divestiture Trigger" means the day on which Cemex elects a majority of the Board of Directors of Rinker or forty-five (45) days after Cemex obtains a number of shares of Rinker stock in excess of 50 percent of the outstanding shares of Rinker, whichever is sooner.
The proposed Final Judgment filed in this case is meant to ensure defendant's prompt divestiture of the Divestiture Assets, for the purpose of maintaining competition in the production and distribution of ready mix concrete in certain areas of Florida and Arizona; of concrete block in the areas of Tampa, Fort Myers, and Naples, Florida; and of aggregate in the area of Tucson, Arizona, to remedy the effects that the United States alleges would otherwise result from Cemex's acquisition of Rinker. This Hold Separate Stipulation and Order ensures that, prior to such divestitures, the Divestiture Assets remain independent, economically viable, and ongoing business concerns that will remain independent and uninfluenced by Cemex's acquisition of Rinker, and that competition is maintained during the pendency of the ordered divestitures.
III. JURISDICTION AND VENUE
This Court has jurisdiction over the subject matter of plaintiff's Complaint alleging that the proposed acquisition of Rinker by Cemex would violate Section 7 of the Clayton Act (15 U.S.C. § 18), and defendant does not object either to the Court's exercise of personal jurisdiction in this case, or to the propriety of venue of this action in the United States District Court for the District of Columbia.
IV. COMPLIANCE WITH AND ENTRY OF FINAL JUDGMENT
A. The parties stipulate that a Final Judgment in the form attached hereto as Exhibit A may be filed with and entered by the Court, upon the motion of any party or upon the Court's own motion, at any time after compliance with the requirements of the Antitrust Procedures and Penalties Act ("APPA"), 15 U.S.C. § 16, and without further notice to any party or other proceedings, provided that the United States has not withdrawn its consent, which it may do at any time before the entry of the proposed Final Judgment by serving notice thereof on defendant and by filing that notice with the Court.
B. Defendant shall abide by and comply with the provisions of the proposed Final Judgment, pending the Judgment's entry by the Court, or until expiration of time for all appeals of any Court ruling declining entry of the proposed Final Judgment, and shall, from the date of the signing of this Hold Separate Stipulation and Order by the parties, comply with all the terms and provisions of the proposed Final Judgment as though the same were in full force and effect as an Order of the Court.
C. Defendant shall not consummate the transaction sought to be enjoined by the Complaint herein before the Court has signed this Hold Separate Stipulation and Order.
D. This Hold Separate Stipulation and Order shall apply with equal force and effect to any amended proposed Final Judgment agreed upon in writing by the parties and submitted to the Court.
E. In the event: (1) the United States has withdrawn its consent, as provided in paragraph IV(A); or (2) the proposed Final Judgment is not entered pursuant to this Hold Separate Stipulation and Order, the time has expired for all appeals of any Court ruling declining entry of the proposed Final Judgment, and the Court has not otherwise ordered continued compliance with the terms and provisions of the proposed Final Judgment, then the parties are released from all further obligations under this Hold Separate Stipulation and Order, and the making of this Hold Separate Stipulation and Order shall be without prejudice to any party in this or any other proceeding.
F. Defendant represents that the divestitures ordered in the proposed Final Judgment can and will be made, and that defendant later will raise no claim of mistake, hardship or difficulty of compliance as grounds for asking the Court to modify any of the provisions contained therein.
V. HOLD SEPARATE PROVISIONS
Until the divestitures required by the Final Judgment have been accomplished:
A. Defendant shall preserve, maintain, and continue to operate those Divestiture Assets owned by defendant prior to an acquisition of Rinker as ongoing, economically viable competitive businesses. From the date of the Divestiture Trigger, defendant shall preserve, maintain, and continue to operate those Divestiture Assets owned by Rinker prior to an acquisition by defendant as ongoing, economically viable competitive businesses. Defendant shall maintain the management, sales, and operations of all assets owned by defendant prior to an acquisition of Rinker entirely separate, distinct, and apart from the assets owned by Rinker prior to an acquisition by defendant. Defendant shall not coordinate the production, marketing, or terms of sale of any of its products with those produced by or sold under any assets owned by Rinker prior to an acquisition by defendant. Within twenty (20) days after the entry of this Hold Separate Stipulation and Order, defendant will inform the United States of the steps defendant has taken to comply with this Hold Separate Stipulation and Order.
B. Defendant shall take all steps necessary to ensure that: (1) the Divestiture Assets will be maintained and operated as ongoing, economically viable and active competitors in the ready mix concrete, concrete block, and aggregate businesses; (2) management of the Divestiture Assets owned by Rinker prior to an acquisition by defendant will not be influenced by defendant; and (3) the books, records, competitively sensitive sales, marketing, and pricing information, and decision-making concerning production and distribution of products by or under any assets owned by defendant prior to an acquisition of Rinker will be kept separate and apart from the assets owned by Rinker prior to an acquisition by defendant.
C. Defendant shall use all reasonable efforts to maintain and increase the sales and revenues of the products produced by or sold under the Divestiture Assets, and shall maintain at 2007 or previously approved levels for 2008, whichever are higher, all promotional, advertising, sales, technical assistance, marketing, and merchandising support for the Divestiture Assets.
D. Defendant shall provide sufficient working capital and lines and sources of credit to continue to maintain the Divestiture Assets as economically viable and competitive, ongoing businesses, consistent with the requirements of paragraphs V(A) and (B).
E. Defendant shall take all steps necessary to ensure that the Divestiture Assets are fully maintained in operable condition at no less than their current capacity and sales, and shall maintain and adhere to normal repair and maintenance schedules for the Divestiture Assets.
F. Defendant shall not, except as part of a divestiture approved by the United States in accordance with the terms of the proposed Final Judgment, remove, sell, lease, assign, transfer, pledge or otherwise dispose of any of the Divestiture Assets.
G. Defendant shall maintain, in accordance with sound accounting principles, separate, accurate and complete financial ledgers, books and records that report on a periodic basis, such as the last business day of every month, consistent with past practices, the assets, liabilities, expenses, revenues, and income of the Divestiture Assets.
H. Defendant shall take no action that would jeopardize, delay, or impede the sale of the Divestiture Assets.
I. Defendant's and Rinker's employees involved in production, operations, and sales at the Divestiture Assets shall not be transferred or reassigned to other areas within the company except for transfer bids initiated by employees pursuant to defendant's and Rinker's regular, established job posting policy. Defendant shall provide the United States with ten (10) calendar days notice of such transfer.
J. Defendant shall take no action that would interfere with the ability of any trustee appointed pursuant to the Final Judgment to complete the divestitures pursuant to the Final Judgment to an Acquirer or Acquirers acceptable to the United States.
K. This Hold Separate Stipulation and Order shall remain in effect until: (1) the consummation of the divestitures required by the proposed Final Judgment; (2) further order of the Court; or (3) the United States' voluntary dismissal of the Complaint in this matter.
Dated: April 4, 2007
IT IS SO ORDERED by the Court, this _____ day of __________ .