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Transaction Support Agreement

 

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Title:

Transaction Support Agreement

Entities:

CEMEX S.A. de C.V.; Skadden, Arps, Slate, Meagher & Flom LLP

Date:

2002

Size:

Preview shows 8KB of 36KB total

Price:

$41

ID:

#419569

 

 

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                          TRANSACTION SUPPORT AGREEMENT


This Transaction Support Agreement, dated as of June 11, 2002
(this "Agreement"), is made by and among Cemex, S.A. de C.V., a Mexico
corporation ("Parent"), Tricem Acquisition, Corp., a Puerto Rico corporation
("Purchaser"), and the stockholder of Puerto Rican Cement Company, Inc., a
Puerto Rico corporation (the "Company"), identified on the signature page hereto
(the "Stockholder").

W I T N E S S E T H:
- - - - - - - - - -

WHEREAS, Parent, Purchaser and the Company are entering into an Agreement
and Plan of Merger, dated as of the date hereof (as it may be amended from time
to time, the "Merger Agreement"; capitalized terms used and not otherwise
defined in this Agreement have the meanings ascribed to such terms in the Merger
Agreement), pursuant to which (i) Purchaser shall commence a cash tender offer
(as such tender offer may hereafter be amended from time to time in accordance
with the Merger Agreement, the "Offer") to acquire each issued and outstanding
share of common stock, par value $1.00 per share, of the Company ("Common
Stock") in exchange for a net amount of $35.00 in cash (the "Offer Price") in
accordance with and subject to the terms and conditions of the Merger Agreement
and the Offer; and (ii) following consummation of the Offer, the Company shall
merge with Purchaser (the "Merger");

WHEREAS, the Stockholder is the record or beneficial owner of the number of
shares of Common Stock set forth on Schedule A hereto (all such shares of Common
Stock and any shares of Common Stock hereafter acquired by the Stockholder, the
"Shares");

WHEREAS, as a condition to entering into the Merger Agreement and incurring
the obligations set forth therein, including the Offer, Parent and Purchaser
have required that the Stockholder agree to enter into this Agreement and
certain other stockholders of the Company agree to enter into similar
Transaction Support Agreements; and

WHEREAS, the Stockholder wishes to induce Parent and Purchaser to enter
into the Merger Agreement and, therefore, the Stockholder is willing to enter
into this Agreement.

NOW, THEREFORE, in consideration of the foregoing and the mutual covenants
and agreements contained herein, and intending to be legally bound hereby, the
parties hereto agree as follows:

{PAGE}

ARTICLE I

TENDER OF SHARES

Section 1.01 Tender of Shares. The Stockholder agrees to promptly (and, in
any event, not later than two Business Days prior to the scheduled expiration
date of the Offer) tender or cause to be tendered into the Offer, pursuant to
and in accordance with the terms of the Offer, and not withdraw or cause to be
withdrawn (except following the termination of the Offer in accordance with its
terms), all of the Shares. The Stockholder acknowledges and agrees that
Purchaser's obligation to accept for payment shares of Common Stock in the
Offer, including any Shares tendered by a Stockholder, is subject to the terms
and conditions of the Merger Agreement and the Offer.


ARTICLE II

VOTING AGREEMENT

Section 2.01 Voting Agreement. The Stockholder hereby agrees that, from and
after the date hereof and until the date (the "Voting Termination Date") that is
the later of (i) the termination of the Merger Agreement in accordance with its
terms or (ii) the Option Termination Date (as defined below), if any, at any
meeting of the stockholders of the Company, however called, and in any action by
consent of the stockholders of the Company, the Stockholder shall vote (or cause
to be voted) all the Shares (i) in favor of adoption of the Merger Agreement,
the Merger and all the transactions contemplated by the Merger Agreement and
this Agreement and otherwise in such manner as may be necessary to consummate
the Merger; (ii) against any action, proposal, agreement or transaction that
would result in a breach of any covenant, obligation, agreement, representation
or warranty of the Company under the Merger Agreement or of the Stockholder
contained in this Agreement; and (iii) against any action, agreement,
transaction (other than the Merger Agreement or the transactions contemplated
thereby) or proposal (including any Takeover Proposal or Superior Proposal) that
could reasonably be expected to result in any of the conditions to the Company's
obligations under the Merger Agreement not being fulfilled or that is intended,
or could reasonably be expected, to impede, interfere, delay, discourage or
adversely affect the Merger Agreement, the Offer, the Merger or this Agreement.
Any vote by the Stockholder that is not in accordance with this Section 2.01
shall be considered null and void, and the provisions of Section 2.02 shall be
deemed to take immediate effect.

Section 2.02 Irrevocable Proxy. If, and only if, the Stockholder fails to
comply with the provisions of Section 2.01, the Stockholder hereby agrees that
such failure shall result, without any further action by the Stockholder
effective as of the date of such failure, in the constitution and appointment of
Parent and each of its executive officers from and after the date of such
determination until the Voting Termination Date (at which point such
constitution and appointment shall automatically be revoked) as the
Stockholder's attorney, agent and proxy (such constitution and appointment, the
"Irrevocable Proxy"), with full power of substitution, to vote and otherwise act
with

2

{PAGE}

respect to all the Shares at any meeting of the stockholders of the Company
(whether annual or special and whether or not an adjourned or postponed
meeting), and in any action by written consent of the stockholders of the
Company, on the matters and in the manner specified in Section 2.01. THIS PROXY
AND POWER OF ATTORNEY ARE IRREVOCABLE AND COUPLED WITH AN INTEREST AND, TO THE
EXTENT PERMITTED UNDER APPLICABLE LAW, SHALL BE VALID AND BINDING ON ANY PERSON
TO WHOM THE STOCKHOLDER MAY TRANSFER ANY OF ITS SHARES IN BREACH OF THIS
AGREEMENT. The Stockholder hereby revokes all other proxies and powers of
attorney with respect to all the Shares that may have heretofore been appointed
or granted, and no subsequent proxy or power of attorney shall be given (and if
given, shall not be effective) by the Stockholder with respect thereto. All
authority herein conferred or agreed to be conferred shall survive the death or
incapacity of the Stockholder and any obligation of the Stockholder under this
Agreement shall be binding upon the heirs, personal representatives, successors
and assigns of the Stockholder.


ARTICLE III

THE OPTION

Section 3.01 Grant of Option. The Stockholder hereby grants to Parent an
irrevocable option (each, an "Option" and, collectively, the "Options") to
purchase all of the Shares (the "Option Shares") at a purchase price per Share
(the "Purchase Price") equal to $35.00, less the value of any dividends per
Option Share declared or paid from and after the date of this Agreement through
the end of the Option Exercise Period and subject to adjustment pursuant to
Section 7.13(a), other than any dividends paid in accordance with clause (A) of
Section 8.2(b)(3) of the Merger Agreement.

 

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