UNITED STATES OF AMERICA
BEFORE FEDERAL TRADE COMMISSION
In the Matter of
RECKITT & COLMAN plc,
a corporation. |
File No. 991-0306 |
AGREEMENT CONTAINING CONSENT ORDER
The Federal Trade Commission ("Commission"), having
initiated an investigation of the proposed acquisition of the voting
securities of Benckiser N.V. from NRV Vermögensverwaltung GmbH ("Vermögensverwaltung")
by Reckitt & Colman plc ("Reckitt & Colman"), and it
now appearing that Reckitt & Colman, hereinafter sometimes referred
to as "proposed respondent," is willing to enter into an
agreement containing an order ("Agreement") to divest certain
assets and providing for other relief:
IT IS HEREBY AGREED by and between proposed
respondent, by its duly authorized officers and attorneys, and counsel
for the Commission that:
1. Proposed respondent Reckitt & Colman plc is a public limited
company, organized, existing and doing business under and by virtue of
the laws of England with its office and principal place of business
located at 67 Alma Road, Windsor, Berkshire SL4 3HD, United Kingdom.
2. Proposed respondent admits all the jurisdictional facts set forth
in the draft of complaint here attached.
3. Proposed respondent waives:
a. any further procedural steps;
- the requirement that the Commission's Decision and Order, here
attached and made a part hereof, contain a statement of findings
of fact and conclusions of law;
- all rights to seek judicial review or otherwise to challenge or
contest the validity of the Order entered pursuant to this
agreement; and
- any claim under the Equal Access to Justice Act.
4. Proposed respondent shall submit within thirty (30) days of the
date this Agreement is signed by proposed respondent, an initial report,
pursuant to Section 2.33 of the Commission's Rules, signed by the
proposed respondent setting forth in detail the manner in which the
proposed respondent will comply with the Order when and if entered. Such
report will not become part of the public record unless and until the
accompanying Agreement and Order are accepted by the Commission for
public comment.
5. This Agreement shall not become part of the public record of the
proceeding unless and until it is accepted by the Commission. If this
Agreement is accepted by the Commission it, together with the draft of
complaint contemplated thereby, will be placed on the public record for
a period of thirty (30) days and information in respect thereto publicly
released. The Commission thereafter may either withdraw its acceptance
of this Agreement and so notify the proposed respondent, in which event
it will take such action as it may consider appropriate, or issue and
serve its complaint (in such form as the circumstances may require) and
decision, in disposition of the proceeding.
6. This Agreement is for settlement purposes only and does not
constitute an admission by proposed respondent that the law has been
violated as alleged in the draft of complaint here attached, or that the
facts as alleged in the draft complaint, other than jurisdictional
facts, are true.
7. This Agreement contemplates that, if it is accepted by the
Commission, and if such acceptance is not subsequently withdrawn by the
Commission pursuant to the provisions of Section 2.34 of the
Commission's Rules, the Commission may, without further notice to the
proposed respondent, (1) issue its complaint corresponding in form and
substance with the draft of complaint here attached and its decision
containing the following Order to divest in disposition of the
proceeding, and (2) make information public with respect thereto. When
so entered, the Order shall have the same force and effect and may be
altered, modified, or set aside in the same manner and within the same
time provided by statute for other orders. The Order shall become final
upon service. Delivery of the Complaint and Decision & Order to
proposed respondent's United States counsel named in this Agreement by
any means specified in Commission Rule 4.4(a), 16 C.F.R.§ 4.4(a), shall
constitute service. Proposed respondent waives any right it may have to
any other manner of service. The complaint may be used in construing the
terms of the Order, and no agreement, understanding, representation, or
interpretation not contained in the Order or the Agreement may be used
to vary or contradict the terms of the Order.
8. By signing this agreement containing consent order, proposed
respondent represents that it can accomplish the full relief
contemplated by the Order.
9. Proposed respondent has read the proposed complaint and Order
contemplated hereby. Proposed respondent understands that once the Order
has been issued, it will be required to file one or more compliance
reports showing that it has fully complied with the Order. Proposed
respondent agrees to comply with Paragraphs II., V., and VI. of the
proposed order from the date it signs this Agreement. Proposed
respondent agrees that if it divests the Divested Assets pursuant to
Paragraph II.A. of the Order prior to the time the Order becomes final,
it will include and enforce a provision in the Divestiture Agreement
with Church & Dwight requiring the transaction to be rescinded, and
the Divested Assets returned to proposed respondent, should the
Commission notify proposed respondent that Church & Dwight is not an
acceptable acquirer, or the Divestiture Agreement is not an acceptable
manner of divestiture. Proposed respondent further understands that it
may be liable for civil penalties in the amount provided by law for each
violation of the Order after it becomes final.
Signed this day of November, 1999.
FEDERAL TRADE COMMISSION
BUREAU OF COMPETITION |
RECKITT & COLMAN plc |
By:
Judith A. Cole
Attorney
Counsel for the Federal Trade Commission
APPROVED:
Michael E. Antalics
Assistant Director
Molly S. Boast
Senior Deputy Director
Richard G. Parker
Director
Bureau of Competition |
By:
Charles E. Koob
Counsel for Reckitt & Colman plc |
UNITED STATES OF AMERICA
BEFORE FEDERAL TRADE COMMISSION
- COMMISSIONERS:
- Robert Pitofsky, Chairman
- Sheila F. Anthony
- Mozelle W. Thompson
- Orson Swindle
- Thomas B. Leary
In the Matter of
RECKITT & COLMAN plc,
a corporation. |
DOCKET NO.
DECISION AND ORDER |
The Federal Trade Commission having initiated an investigation of the
proposed acquisition by Reckitt & Colman of 100 percent of the
voting securities of Benckiser NV, and Respondent having been furnished
thereafter with a copy of a draft of Complaint that the Bureau of
Competition presented to the Commission for its consideration and which,
if issued by the Commission, would charge Respondent with violations of
Section 7 of the Clayton Act, as amended, 15 U.S.C. § 18, and
Section 5 of the Federal Trade Commission Act, as amended, 15 U.S.C.
§ 45; and
Respondent, its attorneys, and counsel for the Commission having
thereafter executed an Agreement Containing Consent Order ("Consent
Agreement"), containing an admission by Respondent of all the
jurisdictional facts set forth in the aforesaid draft of Complaint, a
statement that the signing of said Consent Agreement is for settlement
purposes only and does not constitute an admission by Respondent that
the law has been violated as alleged in such Complaint, or that the
facts as alleged in such Complaint, other than jurisdictional facts, are
true, and waivers and other provisions as required by the Commission's
Rules; and
The Commission having thereafter considered the matter and having
determined that it had reason to believe that the Respondent has
violated the said Acts, and that a Complaint should issue stating its
charges in that respect, and having accepted the executed Consent
Agreement and placed such Consent Agreement on the public record for a
period of thirty (30) days for the receipt and consideration of public
comments, now in further conformity with the procedure described in
Commission Rule 2.34, 16 C.F.R. § 2.34, the Commission hereby
issues its Complaint, makes the following jurisdictional findings, and
issues the following Order:
1. Respondent Reckitt & Colman plc is a public limited company
organized, existing and doing business under and by virtue of the laws
of England, with its office and principal place of business at 67 Alma
Road, Windsor, Berkshire SL4 3HD, United Kingdom.
2. The Federal Trade Commission has jurisdiction of the subject
matter of this proceeding and of the Respondent, and the proceeding is
in the public interest.
ORDER
I.
IT IS ORDERED that, as used in this Order, the
following definitions shall apply:
A. "Respondent" or "Reckitt & Colman" means
Reckitt & Colman plc, its directors, officers, employees, agents,
representatives, predecessors, successors, and assigns; its
subsidiaries, divisions, groups, and affiliates controlled by Reckitt
& Colman plc, and the respective directors, officers, employees,
agents, representatives, successors, and assigns of each.
B. "Vermögensverwaltung" means NRV Vermögensverwaltung,
a corporation organized, existing, and doing business under and by
virtue of the laws of Germany, with its office and principal place of
business located at Ludwig-Bertram Strasse 8+10, 67059 Ludwigshafen,
Germany.
C. "Benckiser" means Benckiser N.V., a subsidiary
controlled by Vermögensverwaltung, which is organized, existing, and
doing business under and by virtue of the laws of The Netherlands,
with its office and principal place of business located at World Trade
Center, Amsterdam Airport, Tower C, Schipholboulevard 229, 1118 BH
Schiphol Airport, The Netherlands, and includes, but is not limited
to, Benckiser's wholly-owned subsidiary, Benckiser Consumer Products
Inc., a corporation organized, existing, and doing business under and
by virtue of the laws of Delaware, with its office and principal place
of business located at Greenwich American Centre, 5 American Lane,
Greenwich, Connecticut 06831-2513.
D. "Church & Dwight" means Church & Dwight Co.,
Inc., a corporation organized, existing, and doing business under and
by virtue of the laws of Delaware, with its office and principal place
of business located at 469 North Harrison Street, Princeton, New
Jersey 08543-5297.
E. "Commission" means the Federal Trade Commission.
F. "Acquisition" means the acquisition of Benckiser by
Reckitt & Colman pursuant to a Merger Agreement dated July 27,
1999.
G. "Acquirer" means either Church & Dwight, if
Respondent divests pursuant to Paragraph II.A.1. of this Order, or
such other entity to whom Respondent divests the Divested Assets
pursuant to any other provision of this Order.
H. "Hard Surface Bathroom Cleaners" means products
specially formulated, marketed, and used by consumers to remove
built-up soils and stains from bathroom surfaces.
I. "Fine Fabric Wash Products" means products specially
formulated, marketed, and used by consumers to safely clean fine
fabrics such as silks, woolens or other delicate fabrics.
J. "Divested Assets" means all of Respondent's rights,
title, and interest, acquired from Vermögensverwaltung pursuant to
the Acquisition, in assets and businesses relating to the research,
development, manufacture, sale, and distribution of Hard Surface
Bathroom Cleaners and Fine Fabric Wash Products (collectively the
"Divested Products"), including, without limitation, the
following:
- the trade dress, brand and trademark, "Scrub Free,"
and associated goodwill;
- the trade dress, brand and trademark, "Delicare,"and
associated goodwill;
- all inventory, customer lists, vendor lists, supplier contact
lists, price lists, catalogs, sales and promotion plans,
materials and literature, advertising materials, cost and
pricing information, marketing plans, information and materials,
product development information, research materials, technical
information, claims support, product liability claim files,
business plans (including, but not limited to, actual plans
currently in force for the top 20 accounts), trade secrets,
technology, technical know-how, formulae, manufacturing
processes, recipes, blue prints, research records,
specifications, packaging designs (including product labels),
artwork, drawings, and process and quality control data;
- intellectual property rights (including, but not limited to,
an assignment of all rights under a Patent and Know-How License
Agreement (July 1, 1987) between Ecolab, Inc., and Joh. A.
Benckiser GmbH, and the First Amendment to the Patent and
Know-How Agreement (November 4, 1999) between Benckiser N.V. and
Ecolab, Inc.), copyrights, trademarks, trade dress, trade names,
and Universal Product Code Product Identifier Codes (but
excluding Universal Product Code Company Identifier Codes);
- all rights, title and interest in and to the contracts entered
into in the ordinary course of business with customers,
retailers of Divested Products (including, but not limited to,
letters of confirmation of trade promotions and slotting
letters), suppliers, sales representatives, brokers, licensees,
or any other person;
- all rights under warranties and guarantees, express or
implied;
- all books, records, files, and supporting documents; and,
- all Environmental Protection Agency applications,
registrations, permits, and the like, and all documents related
thereto.
K. "Divestiture Agreement" means each and all of the
following:
1. the agreement for the sale of the Divested Assets to Church
& Dwight dated October 12, 1999, as amended by the First
Amendment to the Asset Purchase Agreement (November 5, 1999);
2. the Trademark Purchase Agreement between Benckiser and Church
& Dwight dated October 12, 1999;
3. the Transitional Services Agreement between Benckiser and
Church & Dwight dated October 21, 1999; and,
4. the Assignment and Assumption Agreement between Benckiser and
Church & Dwight.
L. "New Divestiture Agreement" means all agreements for
the sale of the Divested Assets other than the Divestiture Agreement,
and includes any divestiture agreements entered into by a trustee
pursuant to Paragraph III of this Order.
M. "Cost" means direct cash cost of raw materials,
packaging and labor.
N. "Non-Public Acquirer Information" means any
information not in the public domain obtained by Respondent directly
or indirectly from the Acquirer in the course of negotiation or
performance of the Divestiture Agreement or the New Divestiture
Agreement. Non-Public Acquirer Information shall not include
information that falls within the public domain through no violation
of this Order by Respondent.
II.
IT IS FURTHER ORDERED that:
A. 1. Respondent shall divest, absolutely and in good faith, the
Divested Assets to Church & Dwight pursuant to the Divestiture
Agreement (which agreement shall not be read to vary or contradict the
terms of this Order), subsequently to the date upon which the
Commission accepts the Consent Agreement for public comment, but on or
before the date that Respondent consummates the Acquisition.
2. Provided, however, that if Respondent divests pursuant
to Paragraph II.A.1., Respondent need divest only (a) such Divested
Assets that are identified in Paragraph I.J.1. through I.J.8., and (b)
such assets that are included in the Divestiture Agreement.
B. Provided, however, that if the Commission determines to
make the Order final, but notifies the Respondent either that Church
& Dwight is not an acceptable acquirer, or that the Divestiture
Agreement is not an acceptable manner of divestiture, then Respondent
shall rescind the Divestiture Agreement and rescind any divestiture to
Church & Dwight, and Respondent shall divest the Divested Assets,
absolutely and in good faith, and at no minimum price, pursuant to a
New Divestiture Agreement within ninety (90) days of the date the
Order becomes final to an Acquirer or Acquirers that receive the prior
approval of the Commission and in a manner that receives the prior
approval of the Commission.
C. Any New Divestiture Agreement shall require Respondent to:
1. Indemnify, defend and hold the Acquirer harmless from any and
all suits, claims, actions, demands, liabilities, expenses or losses
arising from any manufacture or sale of the Hard Surface Bathroom
Cleaners and/or Fine Fabric Wash Products supplied to the Acquirer
by Respondent pursuant to the New Divestiture Agreement; provided,
however, that the obligations of this Paragraph II.C.1. may be
contingent upon the Acquirer's giving Respondent prompt, adequate
notice of such claim, cooperating fully in the defense of such
claim, and permitting Respondent to assume the sole control of all
phases of the defense and/or settlement of such claim, including the
selection of counsel; and provided further that the
obligations of this Paragraph II.C.1. may not require Respondent to
be liable for any negligent act or omission of the Acquirer or for
any representations and warranties, express or implied, made by the
Acquirer that exceed the representations and warranties made by
Respondent to the Acquirer;
2. Make available to the Acquirer, upon reasonable notice and
request by the Acquirer, for a period not to exceed eighteen (18)
months from the date Respondent begins delivery of products pursuant
the New Divestiture Agreement, all records kept in the normal course
of business that relate to the Cost of manufacturing or supplying
the Hard Surface Bathroom Cleaners and Fine Fabric Wash Products;
3. Make available to the Acquirer, upon reasonable notice and
request by the Acquirer, for a period not to exceed eighteen (18)
months from the date Respondent first provides assistance,
personnel, or training to the Acquirer pursuant to the New
Divestiture Agreement, all records kept in the normal course of
business that relate to the Cost of providing such assistance,
personnel, or training to the Acquirer.
D. If Respondent or a trustee divests pursuant to Paragraph II.B.
or Paragraph III. of this Order, Respondent shall, at the option of
the Acquirer, enter into a contract:
- To supply and deliver to the Acquirer in a timely manner and
under reasonable terms and conditions, up to a twelve (12) month
supply of any and all of the Hard Surface Bathroom Cleaners and
Fine Fabric Wash Products at Cost, in such
quantities as the Acquirer may request up to 110% of Benckiser's
1999 or 2000 production forecast, whichever is greater;
- To assign or otherwise convey to the Acquirer all of
Respondent's right, title, and interest in any contract with any
person relating to research, development, manufacture, marketing,
sale, brokerage, or distribution of Hard Surface Bathroom Cleaners
and/or Fine Fabric Wash Products; provided that if such
assignment or conveyance may not be made or be made effective
without the consent of any person, Respondent shall use its best
efforts to obtain all necessary consents from such person and,
failing such consent, shall enter into an agreement with the
Acquirer to provide to the Acquirer all the benefits flowing to
Respondent pursuant to such contract;
- To provide to the Acquirer, at Cost, for a period not to exceed
six (6) months from the date of consummation of the New
Divestiture Agreement, such assistance, personnel and training as
requested by the Acquirer (including its agents and contractors)
relating to:
(a) the research, development, manufacture, sale, and
distribution of the Hard Surface Bathroom Cleaners and/or Fine
Fabric Wash Products; and
(b) any Environmental Protection Agency applications,
registrations, procedures, proceedings, or approvals related to
the research, development, manufacture, sale and distribution of
Hard Surface Bathroom Cleaners and Fine Fabric Wash Products in
the United States;
- To sell any capital equipment, fixtures, machines, buildings,
structures, vehicles, real property, or other tangible assets
(other than books and records) used in the research, development,
manufacture, sale, or distribution of the Divested Products; provided,
however, that with respect to the assets that are to be
divested and the contracts that are to be entered into pursuant to
this Paragraph II.D. at the option of the Acquirer or Acquirers,
Respondent need not divest such assets or enter into such
contracts only if the Acquirer or Acquirers choose not to acquire
such assets or enter such contracts and the Commission approves
the divestiture without such assets or contracts.
E. Respondent shall comply with the terms of the Divestiture
Agreement (if Respondent divests pursuant to Paragraph II.A. of this
Order) or the New Divestiture Agreement (if Respondent, or a trustee,
divests pursuant to Paragraph II.B. or Paragraph III. of this Order),
which terms are incorporated by reference into this Order, and made a
part hereof. Any failure by Respondent to comply with the Divestiture
Agreement or the New Divestiture Agreement shall constitute a failure
to comply with this Order.
F. The purpose of the divestiture of the Divested Assets is to
ensure the continued use of the Divested Assets in the same businesses
in which the Divested Assets are engaged at the time of the
Acquisition, and to remedy any lessening of competition resulting from
the Acquisition as alleged in the Commission's Complaint.
G. Respondent shall not provide, disclose or otherwise make
available to any of its employees any Non-Public Acquirer Information,
nor shall Respondent use any Non-Public Acquirer Information obtained
or derived by Respondent in connection with the negotiation or
performance of either the Divestiture Agreement or New Divestiture
Agreement; provided, however, that Respondent may
provide, disclose, or otherwise make available Non-Public Acquirer
Information to its employees whose duties include negotiating, or
performing Respondent's obligations under, the Divestiture Agreement
or New Divestiture Agreement, and Respondent may use Non-Public
Acquirer Information in connection with negotiating or performing the
Divestiture Agreement or New Divestiture Agreement.
H. Pending divestiture of the Divested Assets, Respondent shall
take such actions as are necessary to maintain the viability,
marketability and competitiveness of the Divested Assets, and to
prevent the destruction, removal, wasting, deterioration, or
impairment of any of the Divested Assets.
III.
IT IS FURTHER ORDERED that:
A. If Respondent fails to divest absolutely and in good faith the
Divested Assets pursuant to Paragraph II. of this Order, the
Commission may appoint a trustee to divest the Divested Assets. In the
event that the Commission or the Attorney General brings an action
pursuant to § 5(l) of the Federal Trade Commission Act, 15
U.S.C. § 45(l), or any other statute enforced by the
Commission, Respondent shall consent to the appointment of a trustee
in such action. Neither the appointment of a trustee nor a decision
not to appoint a trustee under this Paragraph shall preclude the
Commission or the Attorney General from seeking civil penalties or any
other relief available to it, including a court-appointed trustee
pursuant to § 5(l) of the Federal Trade Commission Act, or any
other statute enforced by the Commission, for any failure by
Respondent to comply with this Order.
B. If a trustee is appointed by the Commission or a court pursuant
to Paragraph III.A. of this Order, Respondent shall consent to the
following terms and conditions regarding the trustee's powers, duties,
authority, and responsibilities:
1. The Commission shall select the trustee, subject to the
consent of Respondent, which consent shall not be unreasonably
withheld. The trustee shall be a person with experience and
expertise in acquisitions and divestitures. If Respondent has not
opposed, in writing, including the reasons for opposing, the
selection of any proposed trustee within ten (10) days after notice
by the staff of the Commission to Respondent of the identity of any
proposed trustee, Respondent shall be deemed to have consented to
the selection of the proposed trustee.
2. Subject to the prior approval of the Commission, the trustee
shall have the exclusive power and authority to accomplish the
divestiture described in Paragraph III.A. of the Order.
3. Within ten (10) days after appointment of the trustee,
Respondent shall execute a trust agreement that, subject to the
prior approval of the Commission, and in the case of a
court-appointed trustee, of the court, transfers to the trustee all
rights and powers necessary to permit the trustee to effect the
divestiture required by this Order and to execute a New Divestiture
Agreement on behalf of Respondent.
4. The trustee shall have twelve (12) months from the date the
Commission approves the trust agreement described in Paragraph
III.B.3. to accomplish the divestiture, which shall be to an
Acquirer or Acquirers who receive the prior approval of the
Commission, and in a manner and pursuant to a New Divestiture
Agreement that receive the prior approval of the Commission. If,
however, at the end of the twelve-month period, the trustee has
submitted a plan for divestiture, or believes that the divestiture
required by this Order can be achieved within a reasonable time,
then the divestiture period may be extended by the Commission, or,
in the case of a court-appointed trustee, by the court; provided,
however, the Commission may extend the trustee's period for
divestiture only two (2) times.
5. The trustee shall have full and complete access to the
personnel, books, records and facilities related to the Divested
Assets or to any other relevant information, as the trustee may
request. Respondent shall develop such financial or other
information as the trustee may request and shall cooperate with the
trustee. Respondent shall take no action to interfere with or impede
the trustee's accomplishment of the divestiture. Any delays in any
divestiture caused by Respondent shall extend the time for that
divestiture under this Paragraph in an amount equal to the delay, as
determined by the Commission or, for a court-appointed trustee, by
the court.
6. The trustee shall use his or her best efforts to negotiate the
most favorable price and terms available in each contract that is
submitted to the Commission, subject to Respondent's absolute and
unconditional obligation to divest expeditiously at no minimum
price. The divestiture shall be made in a manner consistent with the
terms of this Order; provided, however, if the
trustee receives bona fide offers from more than one acquiring
entity, and if the Commission determines to approve more than one
such acquiring entity, the trustee shall divest to the acquiring
entity or entities selected by Respondent from among those approved
by the Commission; provided further, however, that
Respondent shall select such entity within five (5) days of
receiving notification of the Commission's approval.
7. The trustee shall serve, without bond or other security, at
the cost and expense of Respondent, on such reasonable and customary
terms and conditions as the Commission or a court may set. The
trustee shall have the authority to employ, at the cost and expense
of Respondent, and at reasonable fees, such consultants,
accountants, attorneys, investment bankers, business brokers,
appraisers, and other representatives and assistants as are
necessary to carry out the trustee's duties and responsibilities.
The trustee shall account for all monies derived from the
divestiture and all expenses incurred. After approval by the
Commission and, in the case of a court-appointed trustee, by the
court, of the account of the trustee, including fees for his or her
services, all remaining monies shall be paid at the direction of the
Respondent, and the trustee's power shall be terminated. The
trustee's compensation shall be based at least in significant part
on a commission arrangement contingent on the trustee's
accomplishing the divestiture required by Paragraph III.A. of this
Order.
8. Respondent shall indemnify the trustee and hold the trustee
harmless against any losses, claims, damages, liabilities, or
expenses arising out of, or in connection with, the performance of
the trustee's duties, including all reasonable fees of counsel and
other expenses incurred in connection with the preparation for, or
defense of, any claim whether or not resulting in any liability,
except to the extent that such losses, claims, damages, liabilities,
or expenses result from misfeasance, gross negligence, willful or
wanton acts, or bad faith by the trustee.
9. If the trustee ceases to act or fails to act diligently, a
substitute trustee shall be appointed in the same manner as provided
in this Paragraph.
10. The Commission or, in the case of a court-appointed trustee,
the court, may on its own initiative or at the request of the
trustee issue such additional orders or directions as may be
reasonably necessary or appropriate to accomplish the divestiture
required by this Order.
11. The trustee may divest such additional ancillary assets
related to the Divested Assets and effect such ancillary
arrangements as are necessary to satisfy the requirements or
purposes of this Order.
12. The trustee shall have no obligation or authority to operate
or maintain the Divested Assets.
13. The trustee shall report in writing to Respondent and the
Commission every sixty (60) days concerning the trustee's efforts to
accomplish the divestiture required by this Order.
IV.
IT IS FURTHER ORDERED that within thirty (30) days
after the date this Order becomes final, and every thirty (30) days
thereafter until Respondent has completed the divestiture of the
Divested Assets and every ninety (90) days thereafter until Respondent
has fully complied with the provisions of Paragraphs II. and III. of
this Order, Respondent shall submit to the Commission verified written
reports setting forth in detail the manner and form in which it intends
to comply, is complying, and has complied with the requirements of this
Order. Respondent shall include in its compliance reports, among other
things that are required from time to time, a full description of the
efforts being made to comply with Paragraphs II. and III. of the Order,
including a description of all substantive contacts or negotiations for
the divestiture and the identity of all parties contacted. Respondent
shall include in its compliance reports copies of all written
communications to and from such parties, all internal documents (except
privileged documents), and all reports and recommendations, concerning
the divestiture.
V.
IT IS FURTHER ORDERED that Respondent shall notify
the Commission at least thirty (30) days prior to any proposed change in
the corporate Respondent such as dissolution, assignment, sale resulting
in the emergence of a successor corporation, or the creation or
dissolution of subsidiaries or any other change in the corporation that
may affect compliance obligations arising out of the Order.
VI.
IT IS FURTHER ORDERED that, for the purpose of
determining or securing compliance with this Order, Respondent shall
permit any duly authorized representative of the Commission:
A. Access, during office hours and in the presence of counsel, to
all facilities and access to inspect and copy all books, ledgers,
accounts, correspondence, memoranda and other records and documents in
the possession or under the control of Respondent relating to any
matters contained in this Order; and
B. Upon five (5) days' notice to Respondent and without restraint
or interference from Respondent, to interview officers, directors, or
employees of Respondent, who may have counsel present, regarding such
matters.
VII.
IT IS FURTHER ORDERED that this order shall terminate five (5) years
after the divestiture required in Paragraph II.A. of this order has been
accomplished.
By the Commission.
Donald S. Clark
Secretary
SEAL:
ISSUED: |