Document:

EX-4.8:

 

Exhibit 4.8

1999

Stock Option

 Preliminary Plan Summary

September 7, 1999

 

 

Introduction

The 1999 Stock Option Plan (SOP) is a form of long-term incentive compensation
that aligns the interests of management with shareholders toward an increase in
the value of the company’s stock. After the successful closing of the share
exchange between Hoechst (the Company) and Rhône-Poulenc and the start of
Aventis, the Company intends to take the steps necessary to convert these
options to Aventis options and to maintain continuity of the 1999 Stock Option
Plan within the context of the Aventis group.

The SOP provides an award to selected managers of options to purchase, after a
certain period of time, company stock at a specific Grant Price. The value of
your options depends on the increase in value of stock over this Grant Price at
the time you exercise your options. Therefore, your commitment to increase the
value of the company’s stock is needed to grow the value of your options.

The SOP provides the participating Hoechst companies an additional incentive
for recruiting, motivating and retaining top leaders and is an important
component to furthering our position in the marketplace and long-term success
worldwide.

Eligibility and Grant of Options

The Hoechst AG Board of Management has selected participants in the SOP from
among management-level employees, based on recommendations by those companies
participating in the SOP worldwide. Each participant will receive an award of
options to buy a certain number of Hoechst shares in the future at the Grant
Price of Euro 40,21.

The Grant Price of Euro 40,21 is the average closing price of Hoechst shares
on the Frankfurt (XETRA) Stock Exchange on the five trading days of the week
of the Grant Date, September 7, 1999.

The number of options you receive is determined by management and generally is
in relation to last year’s grant, or, if you did not participate in the 1998
Plan, to the grant you would have received if you had participated.

The number and Grant Price of your options will be adjusted to reflect the
demerger of Celanese, the Hoechst extra-ordinary dividend payment and the share
exchange.

1

 

Conditions to exercising your Options

Exercising your options means buying company stock at the Grant Price. The
general rule is that you may exercise your options only:

	 	 	 
	ü

	 	After the Vesting Period and
	 
	ü

	 	During the Exercise Period

Vesting Period

Generally, you may not exercise your options until you have remained employed
by the Company for three years (for French fiscal residents five years) after
the Grant Date – through September 6, 2002 (Vesting Period) – unless you meet a
special condition as described in the “Special Conditions” section on page 3.

Once the Vesting Period has expired, you may exercise your options according to
the SOP terms.

The following time line illustrates the Vesting and Exercise Periods:

	Vesting Period            Exercise Period

	September 7, 1999 September 7, 2002 September 7, 2009

	SOP begins            Exercise Permitted            SOP ends

	No Exercise Permitted            Remaining options forfeited

Exercise Period

The Exercise Period is the seven-year period after the Vesting Period, running
from September 7, 2002 through September 7, 2009. Generally, you may exercise
your options only during the Exercise Period (except as noted in the “Special
Conditions” section). The SOP ends on September 7, 2009.

Calculation Example

	 	 	 	 	 	 	 
	

	 	Number of options:
	 	2.500
	

	 	Grant Price:
	 	40,21 Euro

	

	 	Market Price
at time of exercise:
	 	70,00 Euro

	 
	 	 	 	 	 	 
	

	 	Buy 2.500 shares for:
	 	100.525 Euro

	

	 	Market Price
of 2.500 shares:
	 	175.000 Euro

	 
	

	 	Total Gain
	 	74.475 Euro

2

 

Special Conditions

The table at the right describes special conditions pertaining to the status of
your SOP grant. Exercise is only permitted during the Exercise Period except in
circumstances as noted in the table.

Please note, if there is a change in control of Hoechst AG (other than the
business combination with Rhône-Poulenc to form Aventis) a subsidiary, or an
operation belonging to Hoechst AG, provisions in the final plan document (“the
Plan Document”) will apply.

	*	 	Options not exercised by the end of the Exercise Period or Special Condition deadline are automatically forfeited!

	 	 	 	 	 
	Event	 	Status of Your Options	 	Exercise Permitted
	

	Termination of
employment for any
reason in the first
12 months following
Grant Date (prior to
September 7, 2000)

	 	Forfeited
	 	Not applicable
	

	Participant transfers
to a Hoechst Group
SOP-participating
company

	 	Retained
	 	Per terms of SOP
	

	Participant transfers
to a non-SOP
participating Group
company during the
Vesting Period (prior
to September 7, 2002)

	 	Forfeited
	 	Not applicable
	

	Participant transfers
to a non-SOP
participating Group
company during the
Exercise Period
(after September 6,
2002)

	 	Retained
	 	Only within 30 days
after transfer*
	

	Participant
resignation during
the Vesting Period
(prior to September
7, 2002)

	 	Forfeited
	 	Not applicable
	

	Participant
resignation during
the Exercise Period
(after September 6,
2002)

	 	Retained
	 	Only within 30 days
of termination date*
	

	Termination of
employment by
employer due to
organizational
changes or by mutual
agreement more than
12 months after the
Grant Date (after
September 6, 2000)

	 	Immediately vested
	 	Only within 30 days
of termination date*
	

	Company departs
Hoechst Group more
than 12 months after
Grant Date (after
September 6, 2000)

	 	Immediately vested
	 	Only within 6 months
after spin-off*
	

	Employment of
Participant is
terminated at any
time for cause as
defined by the Plan
document

	 	Forfeited
	 	Not applicable
	

	Retirement (according
to the retirement
eligibility rule of
your employer) more
than 12 months after
the Grant Date (after
September 6, 2000)

	 	Retained
	 	Any time during

Exercise Period*
	

	Disability as defined
by the Plan document
more than 12 months
after the Grant Date
(after September 6,
2000)

	 	Retained
	 	Any time during

Exercise Period*
	

	Death more than 12
months after the
Grant Date (after
September 6, 2000)

	 	Immediately vested
	 	Within one year after

death*
	

	Participant
repatriates or takes
a foreign assignment
where SOP is not
available at the
Global level of new
position during the
Vesting Period

	 	Options pro-rated

(see formula on next

page)
	 	Retained options per
terms of SOP
	

3

 

Pro-ration Formula:

	Number of full months
Number of Options Granted
since September 7, 1999
(up to 36 = Vesting Period)

	X

	Number of Option Granted

	•	 	If the resulting number of options is less than 500, all options are
forfeited.
	 
	•	 	If the resulting number of options is 500 or greater, the resulting
number of options is retained.

Exercise Procedures

If the conditions to exercising your options are satisfied, you may exercise
all or a portion of your outstanding options by instructing the SOP
Administrator (to be selected) to buy shares of company stock on your behalf.

You may exercise your options only in groups of 100, with a minimum of 500. If
at any time you hold less than 1.000 options, you must exercise all remaining
options at the same time.

When you wish to exercise your options, you will give your instructions to the
SOP Administrator. You may choose to buy and sell your shares simultaneously or
purchase the shares and sell them at a later date (certain country restrictions
may apply). You will be responsible for expenses related to either type of
exercise. If you choose to purchase and hold the shares, you assume the
investment risk for future share price changes.

Prior to the beginning of the Exercise Period (or any Special Condition
deadline), you will receive detailed information on procedures for exercising
your options.

The timing and amount of taxation can vary considerably from country to
country. Your employer will be withholding all applicable taxes and other
deductions from your salary. Recognizing the differences in tax treatment,
seeking professional tax advice is recommended to determine the tax effect of
the SOP on you as an individual.

4

 

General Information

This brochure summarizes the terms and conditions of the SOP
1999. If there is a conflict between this summary and the
final Plan Document, the provisions of the Plan Document
control. The Hoechst AG Board of Management reserves the
right to amend or terminate the SOP at any time. Although
Hoechst AG or Aventis intend to create similar plans in the
future, it is under no legal obligation to do so and you
have no vested right to participate in them.

Securities offered to persons who are not residents or
citizens of the United States of America have not been
registered under the U.S. Securities Act of 1933, and may
not be offered or sold in the U.S. unless registered under
such Act or an exemption from registration is available.

5EX-4.9:

 

Exhibit 4.9

(New 1999, Plan Participant Letter – or for 1998 plan participants who were
promoted or demoted since 1998 grant))

Dear Plan Participant:

Company: Hoechst Marion Roussel

As a participant in the 1999 Hoechst AG Stock Option Plan, you have been
granted options to purchase
           shares of company stock. The Grant Price for
the 1999 stock option grant is EURO 40,21.

The Grant Price and number of options will be adjusted to reflect the spin-off
of Celanese AG, the payment of the extraordinary dividend and the share
exchange with Rhône-Poulenc. Upon completion of the share exchange, the Company
intends to take the steps necessary to convert your options to Aventis options.
The formation of Aventis will not trigger an opportunity to exercise these
options before the end of the vesting period.

Any payment made to you under the Hoechst AG 1999 SOP will not be taken into
account for determination of any company benefits or compensation programs
(including pension and severance payments) except as defined by mandatory laws
or collective bargaining agreements governing your employment with the above
referenced company.

If you have any questions, please contact Pam McHugh +1 908 231 -2794 or Ute
Herzog +49 69 305-80597 – both of them will be glad to be of assistance.

Sincerely,

Hoechst Marion Roussel AG

Richard J. Markham

 

 

(Letter for 1998 plan participants receiving a 1999 grant)

Dear Plan Participant:

Company: Hoechst Marion Roussel

As a participant in the 1999 Hoechst AG Stock Option Plan, you have been
granted options to purchase
            shares of company stock. The Grant

Price for the 1999 stock option grant is EURO 40,21.

The 1999 stock option award is determined by management and generally is in
relation to last year’s grant. The Company’s intent is to award a number of
options in 1999 that has the same value as your 1998 grant. An option under the
1999 SOP has a higher value than one option under the 1998 SOP because there
are no exercise hurdles and the exercise period lasts longer. Therefore, the
number of your 1999 options is lower than the number awarded last year.

The Grant Price and number of options will be adjusted to reflect the spin-off
of Celanese AG, the payment of the extraordinary dividend and the share
exchange with Rhône-Poulenc. Upon completion of the share exchange, the Company
intends to take the steps necessary to convert your options to Aventis options.
The formation of Aventis will not trigger an opportunity to exercise these
options before the end of the vesting period.

Any payment made to you under the Hoechst AG 1999 SOP will not be taken into
account for determination of any company benefits or compensation programs
(including pension and severance payments) except as defined by mandatory laws
or collective bargaining agreements governing your employment with the above
referenced company.

If you have any questions, please contact Pam McHugh +1 908 231-2794 or Ute
Herzog +49 69 305-80597 – both of them will be glad to be of assistance.

Sincerely,

Hoechst Marion Roussel AG

Richard J.
Markham         (date)

-2-

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