Document:

EX-4.6:

 

Exhibit 4.6

RULES AND REGULATIONS

FOR AVENTIS STOCK OPTION

PLAN 2000

Grant of November 14, 2000

	I.	 	GENERAL PRINCIPLES AND PURPOSE FOR AVENTIS STOCK OPTIONS PLAN
	 
	 	 	A stock option plan is a system which enables its beneficiaries to subscribe
for new shares in their company (or in the parent company of their group)
during a certain period, at a price fixed at the opening of the plan and
which remains fixed during the whole of this period.
	 
	 	 	The purpose of Aventis stock option plan 2000 is to foster and promote the
long-term success of Aventis Group and materially increase shareholder value
by motivating superior performance by means of performance-related incentives
and by encouraging and providing for the acquisition of an ownership interest
in Aventis Group by employees. The people concerned can therefore be fully
associated to the running of their company and benefit from capital gains if
the share price progresses favorably.
	 
	 	 	Stock option plans of Aventis are governed by the French law and notably by
Articles 225-177 to 225-185 of the Commercial Code concerning business
corporations.
	 
	 	 	On the basis of the authorization and the powers which have been given to it
by the Company’s shareholders meeting, the Aventis Management Board has
decided on the creation of the present Aventis stock option plan 2000 and has
laid down the conditions within the framework of the legal provisions
mentioned above. The Management Board could adapt these conditions, notably
in the case of changes in the regulations relative to the stock options.
	 
	II.	 	DEFINITIONS
	 
	 	 	Whenever used herein, the following terms shall have the respective meanings
set forth below:
	 
	 	 	“Aventis” means Aventis or the Company, as French holding company for an
international group in the global life sciences industry.
	 
	 	 	“Aventis Group” means any company, partnership or other group of economic
interest where at least 10% of the capital or voting rights is held directly
or indirectly by the Company, on the date of exercise.

 

 

	 	 	“Beneficiary” means any Employee of the Aventis Group designated by the
Management Board to receive options.
	 
	 	 	“Change in control” means exclusively the occurrence of any of the following
events:

	(a)	 	carrying out a takeover bid or a public offer of exchange.
	 
	(b)	 	the direct or indirect acquisition of an interest allowing a new
shareholder to hold at least 20% of the voting rights in the
shareholders’ meeting, or to increase his/her previous interest so as
to hold at least 20% of the voting rights in the shareholders’
meeting.
	 
	(c)	 	the demerger, the contribution or transferal of significant
corporate assets of the Company, which necessitate a shareholders’
meeting of the Company.
	 
	(d)	 	the direct or indirect intervention of a rival company in the
management of the Company.
	 
	(e)	 	the merger-absorption by the Company of a rival company implying
the arrival of shareholders with over 20% of the voting rights of the
company resulting from the merger, and the merger-absorption of the
Company by a rival company implying the arrival of new shareholders
with over 20% of the voting rights of the company resulting from the
merger.

	 	 	“Company” means Aventis, a French company, and any successor thereto.
	 
	 	 	“Employee” means any employee of the Company or of Aventis Group.
	 
	 	 	“Management Board” means the Management Board of directors of Aventis.
	 
	 	 	“Option” means the right to subscribe share at a stated price for a
specified period of time.
	 
	 	 	“Period of restriction” means the period during which the Management Board
can suspend the right for employees to exercise the options.
	 
	 	 	“Share” means the common share of the Company, par value € 3.82 per
share.
	 
	 	 	“The Stock option Plan” means the Aventis stock option plan 2000.
	 
	 	 	Gender and Number: Except when otherwise indicated by the context,
words in the masculine gender used in the stock option plan shall include
the feminine gender, the singular shall include the plural, and the plural
shall include the singular.

	III.	 	DESCRIPTION OF THE AVENTIS STOCK OPTION PLAN

	 	 	Optionees
	 
	 	 	The Management Board has laid down the list of beneficiaries of the stock
options plan.

-2-

 

	 	 	Number of shares
	 
	 	 	The maximum number of shares each beneficiary may apply for is given on the
individual letter addressed by the Chairman, or his duly designated
representative.
	 
	 	 	Share subscription price
	 
	 	 	The Management Board has set the subscription price on the basis of the
average price (on the basis of the closing prices) quoted during the last
twenty days trading on the Paris stock exchange prior to the Management
Board decision with the application of a reduction in accordance with the
legal and statutory provisions in force.
	 
	 	 	It will remain fixed during the entire stock option plan subject to its
adjustment by the Management Board according to the terms and conditions set
out in these regulations.
	 
	 	 	Duration of the options
	 
	 	 	The options are granted irrevocably for duration of 10 years from the time
day they are allotted by the Management Board.
	 
	 	 	Options that have not been exercised at the end of the 10-year period will
be declared null and void. No further extensions will be granted.
	 
	 	 	The options will not be exercisable within the first three years. However,
the beneficiaries deemed to be resident in France for tax purposes will be
entitled to exercise their options only after a five-year period from the
date of the grant, unless they keep the shares on the asset register until
the end of the said five-year period, and except if this exercising before
five years no longer leads to the payment of social security contributions
by the Company on the capital gains made by the beneficiaries following a
change in the French regulations in force.
	 
	 	 	The rights resulting from the options granted are non-transferable.
	 
	 	 	Adjusting the subscription price and the number of shares
	 
	 	 	Should the Company carry out any of the following financial operations
before the stock options have expired, the subscription price of the shares
and the number of shares which can be subscribed for by each beneficiary
will be adjusted by the Management Board under the following conditions:

	1.	 	In the case of the issue, reserved for the shareholders, of shares
to be subscribed in cash, or convertible bonds with bond warrants, the
subscription price of the shares under option will be reduced by an
amount equal to the product of this price through the ratio between the value of the
subscription right and the value of the share before removal of this
right.

-3-

 

	 	 	The ratio will be calculated as follows:

	•	 	The value of the share before removal of the subscription right will be
equal to the average of at least twenty consecutive closing prices
chosen from the forty trading days preceding the opening day of the
issue.
	 
	•	 	The value of the subscription right will be the theoretical value
calculated according to the number of new shares issued to which an
existing share gives entitlement, the issue price of these new shares
and the value of the share before removal of the subscription right.

	2.	 	In the case of an increase in capital through incorporation of
reserves, profit or premiums and distribution of bonus shares, the
subscription price of the shares under option will be adjusted by the
appropriation of a coefficient equal to the ratio between the number of
old shares and the number of existing shares after the operation.
	 
	3.	 	In the case of distribution of reserves into cash or into portfolio
securities, the subscription price of the shares under option will be
reduced by an amount equal to the product of this price through the
ratio between the amount per share of the distribution and the value of
the share before distribution.
	 
	 	 	For the calculation of this ratio, if the Company shares and the
securities distributed are allowed in transactions on a regulated
market, the value of the securities distributed and the value of the
share before distribution will be equal to the average of the first
prices quoted during the thirty trading days of the stock exchange
prior to the start of the distribution.
	 
	 	 	If the shares of the Company or the securities distributed are
not allowed in transactions on a regulated market, the Management
Board will fix the values on sight of the auditors’ special report.
	 
	4.	 	In the case of a reduction of capital due to losses.

	•	 	If the reduction focuses on the number of shares, the subscription
price will be adjusted by appropriating to it a coefficient equal to
the ratio between the number of old shares and the number of shares
remaining after reduction.
	 
	•	 	If the reduction focuses on the nominal value of the shares, there will
be no adjustment.

	 	 	In all the cases mentioned above, an adjustment in the number of shares under
option will be made so that the total subscription prices remains constant.
The number adjusted will however be rounded up to the higher figure.

-4-

 

	 	 	Change of Control
	 
	 	 	The ‘Change of Control’ will be considered as ‘effective’ from:

	(a)	 	the date of publication in the official list of the notice of the
result of the takeover bid by ParisBourseSBFSA, in the case of a
takeover bid or a public offer of exchange.
	 
	(b)	 	the date of the notification to the Company of the crossing of
the threshold level having taken the interest of a shareholder to at
least 20% of the voting rights in the Company, in the case of entry
into the capital of a new shareholder holding at least 20% of the
voting rights in the shareholders’ meeting or the increase in the
previous interest of a new shareholder taking his/her interest to at
least 20% of the voting rights in the shareholders’ meeting.
	 
	(c)	 	the date of the general meeting approving the demerger,
transferal or contribution of the principal assets of the Company or
the merger, in the case of demerger, contribution or transfer of the
principal assets of the Company or merger.
	 
	(d)	 	the date of the general meeting appointing the new management and
administration structure, in the case of the direct or indirect
intervention of a rival company in the management and administration
structure of the Company.

	 	 	In the case of ‘Change of Control’:

	1.	 	The Company will do its best to ensure sufficient liquidity
allowing the options to be exercised under normal conditions.
	 
	2.	 	If the Aventis share ceased to be quoted on a regulated market,
it would be requested of the company responsible for the ‘Change of
Control’ to take over the existing patrimonial commitments with regard
to the beneficiaries and as a consequence to implement one of the
following solutions:

	-	 	either to undertake to buy back from the beneficiaries the shares obtained following the exercising of their options, on the
date when they will present them, this date obligatorily being
during the exercising period initially decided for the options. In
the case where the Company is subject to a procedure of obligatory
withdrawal, the shares obtained by the beneficiaries must
obligatorily be presented for repurchase following the exercising
of the options.
	 
	 	 	The price of the repurchase will be equal to that of the Aventis share
on the date when the Change of Control becomes effective or on the
first date of quotation following this date, and will vary both
upwards and downwards between this date and the date of the request
for repurchase, according to the evolution of the price of the share
of the Company which is the beneficiary of the ‘Change of Control’
over the same period.

-5-

 

	-	 	or to grant the beneficiaries, in exchange for their old
options, new options.

	 	 	If these commitments are not carried out, the resulting loss to the
beneficiaries will be estimated by an expert designated by the two
parties, or if no agreement can be found, by the President of the Paris
Tribunal de Commerce (commercial court), who will give a ruling on the
petition of the more deserving party.
	 
	 	 	The amount decided will be paid by the Company, or by any company which
it will substitute for or which will substitute for it.
	 
	 	 	To decide this loss, the expert will take into account the price of the
share on the date when the Change of Control becomes effective or on the
first date of quotation following this change and the ‘time value’ still
left to run until the final date for the exercising of the considered
options taking into account all the existing corporate or tax
incidences.

	IV.	 	EXERCISE OF THE OPTIONS
	 
	 	 	Exercising conditions
	 
	 	 	The exercise of the options by an optionee is subject to the condition that
he/she has a work contract or corporate mandate with the Company or one of
the Companies of the Aventis Group (‘Group Companies’) on the date of the
exercise, unless otherwise decided by the Chairman in exceptional cases.
	 
	 	 	By Company of the Group, it is meant any company or group of economic
interests where at least 10% of the capital or voting rights is held directly
or indirectly by the Company, on the date of exercise.
	 
	 	 	Notwithstanding the legal provisions of the preceding paragraphs:

	-	 	In the case of resignation, dismissal (except for serious professional
misconduct), termination of employment or revocation, the options can,
whatever the case, be exercised for a maximum period of 6 months from the
date of the letter of resignation, dismissal or revocation, subject to
them being exercisable on the day of the termination of the work contract
or corporate mandate. Non-exercisable options on this date will be lost.
	 
	 	 	In the case of dismissal resulting from collective redundancy schemes, the
options can be exercised for a period of 12 months from the day of the
termination of the work contract or from the Opening Day of the Exercise
Period of the options if this date is later, this period must not exceed
the termination date of the options. By Opening Day of the Exercise Period,
it is meant the day from which the options are exercisable as stipulated in
the paragraph ‘duration of the options.’
	 
	 	 	However, if dismissal (except for serious professional misconduct),
termination of employment or revocation takes place within eighteen months
of a Change of

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	 	 	Control of the Company, the options can be exercised until the termination
under the same conditions as if the optionee still held a work contract or
a corporate mandate.
	 
	 	 	In the case of dismissal for serious professional misconduct, the departure
from Aventis Group automatically cancels those options not yet exercised
with effect from the date of notification of such dismissal.
	 
	-	 	In the case of the transfer of a Company of the Group or an activity
of a Company of the Group to a company where Aventis does not hold
directly or indirectly at least 10% of the capital or voting rights, or
in the case of transfer by flotation, the options can be exercised until
the termination under the same conditions as if the optionee still held
a work contract or a corporate mandate.
	 
	-	 	in the case of retirement or early retirement in accordance with the
applicable regulations, in the case of the dismissal (except for serious
professional misconduct) of an optionee of at least 55 years of age or
the revocation of a corporate mandate of an optionee of at least 55
years of age, or in the case of invalidity, the options can be exercised
until the termination under the same conditions as if the optionee still
held a work contract or a corporate mandate.
	 
	-	 	In the case of the death of the optionee, the heirs who wish to
exercise the options must do so under the conditions fixed by law which
at the moment stipulate that the options are exercisable for a period of
six months from the date of death.

	 	 	Period of restriction
	 
	 	 	The Management Board can suspend the right to exercise the options if
necessary, notably when trading on Aventis capital requires the exact and
prior knowledge of the number of shares which make up the capital or in the
case of one of the financial operations leading to an adjustment being
carried out.
	 
	 	 	In these cases, the Company will inform the beneficiaries of the suspension
date and the date when the options can be exercised again. Such a suspension
cannot extend the exercise period beyond the original 10-year period.
	 
	 	 	The Management Board can also suspend the right to exercise the options
for all employees who are “Restricted Persons” or who have access to
privileged information under the “Aventis Corporate Guidelines on the
avoidance of Insider Trading “.Exercise of the options by an employee who is
a Restricted Person or who has privileged information, is prohibited during
“Black-out periods”. In general, a Black-Out period is the 30 day period
commencing before the Company’s public announcement of its financial results
(first quarter, half year, third quarter and annual results).
	 
	 	 	Methods of the exercise of the options
	 
	 	 	The exercise of the options is optional for the beneficiaries.

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	 	 	The options can be exercised partially or in totality.
	 
	 	 	To exercise an option, the beneficiaries must apply to the Plan Manager
whose details will have been provided.
	 
	 	 	Costs incurred in exercising an option by the Plan Manager will be born by
the beneficiaries.
	 
	V.	 	CHARACTERISTICS OF SUBSCRIBED SHARES
	 
	 	 	Form and delivery of stocks
	 
	 	 	Shares subscribed for by beneficiaries who are French residents must take
the registered form. If this is not the case, their holders will lose the
benefit of the special tax system for stock options.
	 
	 	 	Unless instructions to the contrary are received from the beneficiaries, the
stocks will be registered on an individual account opened in the Plan
Manager’s books.
	 
	 	 	Interest
	 
	 	 	The new shares will be created with coupon attached and will be immediately
entitled to the same dividend as the other shares which make up the capital
of Aventis, subject to having been subscribed during the fiscal year for
which the first dividend will be paid to them.
	 
	 	 	Shares subscribed between the first day of the fiscal year and the date of
distribution of the dividend in that year in respect of the previous fiscal
year will not give entitlement to the dividend relating to this previous
fiscal year and will be subject to a specific quotation on the market of the
Paris Bourse until the date of distribution of the said dividend.
	 
	VI.	 	TRANSFER OF SHARES
	 
	 	 	Subject to the period inherent in preliminary formalities for the quotation
on the stock market of new shares and possibly the application of a tax
system which is less favorable in the case of noncompliance with legal
conditions concerning time of tenure and form, the shares acquired following
the exercise of options can be sold immediately.
	 
	 	 	To carry out this sale, the beneficiaries must address a selling order to
Plan Manager, in accordance with the model sent by the latter.
	 
	 	 	Requests to exercise options will be recorded on a register timed and dated,
which will be held by each Plan Manager.

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	VII.	 	MANAGEMENT OF THE PLAN
	 
	 	 	The administrative management of the Stock Option Plan has been
entrusted to banks selected by Aventis (each one a ‘Plan Manager’).
The beneficiaries will be informed of the details of the Plan Manager
who they can contact for any information.
	 
	VIII.	 	MISCELLANEOUS
	 
	 	 	As some beneficiaries are not French residents, the Management Board
could, depending on the conditions imposed by certain countries and
with regard to the exercise of options and the subsequent transfer of
options, modify certain provisions of the plan concerning
beneficiaries working in these countries, without these modifications
making the plan more favorable for these beneficiaries (apart from
aspects relating to the tax systems of these countries).
	 
	 	 	Nothing in the Plan shall interfere or limit in any way the right of the
employer to terminate any beneficiary employment at any time, nor confer
upon any beneficiary any right to continue in employ of their company. No
beneficiary shall have a right to be selected as a beneficiary, or, having
been so selected, to receive any future options.

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RULES AND REGULATIONS FOR

AVENTIS STOCK SUBSCRIPTION OPTION

GRANT of November 14, 2000

ANNEX

 

	 	 	 	 	 	 	 
	Authorization of the Option Plan

	 	:
	 	Combined General Meeting of 24 May, 2000

	 
	 	 	 	 	 	 
	Decision and date of grant

	 	:
	 	Management Board of November 14, 2000

	 
	 	 	 	 	 	 
	Number of options allotted

	 	:
	 	[ ]	 	 
	 
	 	 	 	 	 	 
	Reference price (average price quoted
	 	:	 	€ 83.94
	from October 17, 2000
	 	 	 	 	 	 
	to November 13, 2000)

	 	 	 	 	 
	 
	 	 	 	 	 	 
	Reduction

	 	:
	 	5%	 	 
	 
	 	 	 	 	 	 
	Exercise price

	 	:
	 	€ 79.75

	 
	 	 	 	 	 	 
	Vesting date

	 	 	 	November 15, 2003 except for French tax

	

	 	 	 	residents

	

	 	 	 	(November 15, 2005 for French tax residents)

	 
	 	 	 	 	 	 
	Exercise period

	 	:
	 	From November 15, 2003 through November 

	

	 	 	 	 14, 2010 inclusive

	

	 	 	 	(From November 15, 2005 through November

	

	 	 	 	14, 2010, inclusive for French tax residents)

	

	 	 	 	 

-10-EX-4.7:

 

Exhibit 4.7

AVENTIS

STOCK OPTION
PLAN

1999/2000

Grant of
December 15, 1999

 

 

AVENTIS Stock Option Plan

1999/2000

Overview of the Plan

The 1999/2000 Aventis Stock Option Plan was authorized by the Company’s
shareholders meeting. Each stock option gives you the right, but not
the obligation, to subscribe one Aventis newly issued share. The
exercise price is defined below. The options are granted at the
Company’s sole discretion, and should you receive a grant, it is
granted for a ten-year period. They become vested (can be exercised)
after five years1 for French tax residents and three years for other participants.

External administrators have been selected to support the day-to-day operations of the Plan, in particular the exercise of the options and the maintenance of an account for each participant. The process to exercise these options may differ slightly based on your country and your company within the Group.

Conditions of the Grant

The specific features of the 1999/2000 Stock Option Plan as decided by the Board of
Management are as follows:

	 	 	 	 	 
	Grant date:

	 	December 15, 1999

	 
	 	 	 	 
	Reference Price:

	 	€ 61.84	 	 
	 
	 	 	 	 
	Discount:

	 	5%	 	 
	 
	 	 	 	 
	Exercise Price:

	 	€ 58.75	 	 
	 
	 	 	 	 
	Vesting Date:

	 	January 6, 2003 through December 15, 2009 inclusive

	 
	 	 	 	 
	Exercise Period:

	 	From January 6, 2003 through December 15, 2009
inclusive

	 
	 	 	 	 
	

	 	(January 6, 20051 through December 15, 2009, inclusive, for French
Residents)

Eligibility to Exercise Your Options

You must be actively employed by one of the companies where the Aventis Group holds at least 10% of the capital or voting rights at the time you exercise your options. However, there are several exceptions to this rule, including:

	 	 	 
	ü

	 	In the case of a resignation or
termination, you have up to six months from the date you receive/give
your notice of termination to exercise any vested options2. Any options that are not vested on your last day of active employment will be forfeited.

	1 Except in some specific cases (Please consult with your HR Department)
	 
	2 The noted exercise periods cannot extend beyond the life of the options, as defined in the Conditions
of the Grant

-2-

 

	 	 	 
	ü

	 	In the case of a lay-off resulting from a company
restructuring or social plan, you have up to twelve
months from your last day of active employment of
from the date on which your options become vested
(whichever is later) to exercise any vested options2.
Any options that are not exercised within the
12-month period will be forfeited.
	 
	 	 
	ü

	 	However, in the case of lay-off or involuntary
termination (except for cause) within eighteen
months following a “Change of Control” (as defined
by the plan rules), your options will continue to
vest and can be exercised in the same fashion and
under the same conditions as if you had remained
actively employed.
	 
	 	 
	ü

	 	In the case of a divestment of your company or
business resulting in your being directly employed
or transferred to a company where Aventis holds less
than 10% of the capital or voting rights, your
options will continue to vest and can be exercised
in the same fashion and under the same conditions as
if you had remained actively employed.
	 
	 	 
	ü

	 	In the case of retirement, early retirement, or
disability, or in the case of a lay-off or
termination (except for cause) when you are aged 55
or older, your options will continue to vest and can
be exercised in the same fashion and under the same
conditions as if you had remained actively employed.
	 
	 	 
	ü

	 	In the case of a participant’s death, all options
granted to date will be automatically vested. The
participant’s estate will have up to six months from
the date of death to exercise the options.
	 
	 	 
	

	 	Information about Exercising Your Options
	 
	 	 
	

	 	Once your stock options are fully vested, you may
exercise them at any time during the exercise period,
which is defined in the Conditions of the Grant. While
the specific procedures for exercising options may
differ from country to country, there are several
general rules that always apply:
	 
	 	 
	ü

	 	You may either choose to: 1) exercise your options and
retain the stock (under this approach, you must advance
the funds necessary to subscribe the shares based on
the exercise price); or 2) utilize a “cashless”
exercise in which you exercise the options and
immediately resell the newly created shares.
	 
	 	 
	ü

	 	The exercise of your stock options (and corresponding
sale of shares, if appropriate) is transacted a soon as
possible after a request is received and your
eligibility is verified.
	 
	 	 
	ü

	 	There are certain administrative and financing fees
charged by the external administrators for managing the
stock options transactions. These fees are charged to
the participant and will vary with the size and type of
transaction.

	2 The noted exercise periods cannot extent beyond the life of the options, as
defined in the Conditions of the Grant.

-3-

 

Special Circumstances For Options Exercised Between The
Approval of the Annual Accounts by the Board and the Dividend
Payment Date: There is a special condition for options that are
exercised between the date of the approval of the accounts by
the Board of management of any year and the date on which
dividends are paid in that year in respect of the previous
financial year (both dates inclusive). Any Aventis shares that
are issued upon the exercise of options in this time period do
not entitle the shareholder to the upcoming dividend payment.

These shares, because they are not entitled to dividends until
the next calendar year, are traded on the cash settlement
market at a price below that of existing shares traded on the
monthly settlement. As a result, this price differential will
reduce the amount of the gain to which you might otherwise be
entitled at the time of exercise.

Taxation 

In most countries, stock options are subject to some form of
taxation. The types of taxation vary from taxing the stock
options at the time of grant to taxing options at the time of
exercise as either ordinary income, capital gains, or at a
special rate. The amount, or percentage, of taxation also
obviously varies from country to country; rather, you are
encouraged to consult your tax advisor or local Human Resources
Department for information about your country’s specific tax
rules and regulations related to stock options.

This booklet gives you a summary of the terms and
conditions of the 1999/2000 Aventis Stock Options
Plan. It is for summary information purposes only. The
Company reserves the right to modify these terms and
conditions as necessary. The Plan is established in
accordance with French law and the formal Plan
Document (French version) will serve as the sole
document of reference should any dispute arise.
Consult your Human Resources Department should you
have additional questions.

-4-

 

RULES AND REGULATIONS

FOR AVENTIS STOCK OPTION

PLAN 1999-2000

Grant of
December 15, 1999

	I.	 	PRINCIPLE OF A STOCK OPTION PLAN
	 
	 	 	A stock option plan is a system which enables its beneficiaries to
subscribe for new shares in their company (or in the parent company of
their group) during a certain period, at a price fixed at the opening
of the plan and which remains fixed during the whole of this period.
	 
	 	 	The people concerned can therefore be fully associated to the smooth
running of their company and benefit from capital gains if the share
price progresses favorably.
	 
	II.	 	LEGAL FRAMEWORK FOR AVENTIS STOCK OPTIONS PLAN
	 
	 	 	Stock option plans are governed notably by Articles 208-1 to 208-8-1
of the law of 24 July 1966 concerning business corporations and
Articles 174-8 to 174-21 of the decree of 23 March 1967.
	 
	 	 	On the basis of the authorization and the powers which have been given
to it by the Company’s shareholders meeting, the Aventis Board of
Management has decided on the creation of the present Aventis stock
option plan (the ‘stock option plan’) and has laid down the conditions
within the framework of the legal provisions mentioned above. The
Board of Management could adapt these conditions, notably in the case
of changes in the regulations relative to the stock options.
	 
	III.	 	DESCRIPTION OF THE AVENTIS STOCK OPTION PLAN
	 
	 	 	Optionees
	 
	 	 	The Board of Management has laid down the list of beneficiaries of the
stock options plan.
	 
	 	 	Number of shares
	 
	 	 	The maximum number of shares each beneficiary may apply for is given on
the individual letter addressed by the Chairman, or his duly designated
representative.

-5-

 

	 	 	Share subscription price
	 
	 	 	The Board of Management has set the subscription price on the basis of
the average price quoted during the last twenty days trading on the
stock exchange prior to the Board with the application of a reduction in
accordance with the legal and statutory provisions in force.
	 
	 	 	It will remain fixed during the entire stock option plan subject to its
adjustment by the Board of Management according to the terms and
conditions set out in these regulations.
	 
	 	 	Duration of the options
	 
	 	 	The options are granted irrevocably for duration of 10 years from the
time day they are allotted by the Board of Management.
	 
	 	 	Options that have not been exercised at the end of the 10-year period
will be declared null and void. No further extensions will be granted.
	 
	 	 	The options will not be exercisable within the first three years.
However, the beneficiaries deemed to be resident in France for tax
purposes will be entitled to exercise their options only after a
five-year period from the date of the grant, unless they keep the shares
on the asset register until the end of the said five-year period, and
except if this exercising before five years no longer leads to the
payment of social security contributions by the Company on the capital
gains made by the beneficiaries following a change in the French
regulations in force.
	 
	 	 	The rights resulting from the options granted are non-transferable.
	 
	 	 	Adjusting the subscription price and the number of shares
	 
	 	 	Should the Company carry out any of the following financial operations
before the stock options have expired, the subscription price of the
shares and the number of shares which can be subscribed for by each
beneficiary will be adjusted by the Board of Management under the
following conditions:

	1.	 	In the case of the issue, reserved for the shareholders, of shares
to be subscribed in cash, or convertible bonds with bond warrants,
the subscription price of the shares under option will be reduced by
an amount equal to the product of this price through the ratio
between the value of the subscription right and the value of the
share before removal of this right.

-6-

 

	 	 	The ratio will be calculated as follows:

	•	 	The value of the share before removal of the subscription right will be equal to
the average of at least twenty consecutive opening prices chosen from the
forty trading days preceding the opening day of the issue.
	 
	•	 	The value of the subscription right will be the theoretical value calculated
according to the number of new shares issued to which an existing
share gives entitlement, the issue price of these new shares and the value of the
share before removal of the subscription right.

	2.	 	In the case of an increase in capital through incorporation of
reserves, profit or
premiums and distribution of bonus shares, the subscription price of
the shares
under option will be adjusted by the appropriation of a coefficient
equal to the
ratio between the number of old shares and the number of existing shares after
the operation.
	 
	3.	 	In the case of distribution of reserves into cash or into portfolio
securities, the
subscription price of the shares under option will be reduced by an
amount equal
to the product of this price through the ratio between the amount per
share of the
distribution and the value of the share before distribution.
	 
	 	 	For the calculation of this ratio, if the Company shares and the
securities distributed are allowed in transactions on a regulated
market, the value of the securities distributed and the value of the
share before distribution will be equal to the average of the first
prices quoted during the thirty trading days of the stock exchange
prior to the start of the distribution.
	 
	 	 	If the shares of the Company or the securities distributed are not
allowed in transactions on a regulated market, the Board of
Management will fix the values on sight of the auditors’ special
report.
	 
	4.	 	In the case of a reduction of capital due to losses.

	•	 	If the reduction focuses on the number of shares, the
subscription price will be adjusted by appropriating to it a coefficient equal to the ratio between the
number of old shares and the number of shares remaining after reduction.
	 
	•	 	If the reduction focuses on the nominal value of the shares, there will be no
adjustment.

	 	 	In all the cases mentioned above, an adjustment in the number of shares
under option will be made so that the total subscription prices remains
constant. The number adjusted will however be rounded up to the higher
figure.

-7-

 

	 	 	Change of Control 

	 	 	‘Change of Control’ means exclusively:

	(a)	 	carrying out a takeover bid or a public offer of exchange.
	 
	(b)	 	the direct or indirect acquisition of an interest allowing a new
shareholder to hold at least 20% of the voting rights in the shareholders’ meeting,
or to increase his/her previous interest so as to hold at least 20% of the
voting rights in the shareholders’ meeting.
	 
	(c)	 	the demerger, the contribution or transferal of significant
corporate assets of
the Company, which necessitate a meeting of the Company’s general
meeting.
	 
	(d)	 	the direct or indirect intervention of a rival company in the
management of the Company.
	 
	(e)	 	the merger-absorption by the Company of a rival company implying
the arrival of shareholders with over 20% of the voting rights of the company
resulting from the merger, and the merger-absorption of the Company by a rival
company implying the arrival of new shareholders with over 20% of the
voting rights of the company resulting from the merger.

	 	 	The ‘Change of Control’ will be considered as ‘effective’ from:

	(a)	 	the date of publication in the official list of the notice of
the result of the takeover bid by the SBF – Paris Bourse, in the case of a takeover bid
or a public offer of exchange.
	 
	(b)	 	the date of the notification to the Company of the crossing of
the threshold
level having taken the interest of a shareholder to at least 20% of
the voting
rights in the Company, in the case of entry into the capital of a
new
shareholder holding at least 20% of the voting rights in the
shareholders’
meeting or the increase in the previous interest of a new shareholder
taking
his/her interest to at least 20% of the voting rights in the
shareholders’
meeting.
	 
	(c)	 	the date of the assembly approving the demerger, transferal or
contribution of
the principal assets of the Company or the merger, in the case of
demerger,
contribution or transfer of the principal assets of the Company or
merger.
	 
	(d)	 	the date of the general assembly appointing the new management
and
administration structure, in the case of the direct or indirect
intervention of a
rival company in the management and administration structure
of the
Company.

	 	 	In the case of ‘Change of Control’:

	1.	 	The Company will do its best to ensure sufficient liquidity
allowing the options to be exercised under normal conditions.
	 
	2.	 	If the Aventis share ceased to be quoted on a regulated market,
it would be requested of the company responsible for the ‘Change of Control’ to
take over the existing patrimonial commitments with regard to the beneficiaries
and as a consequence to implement one of the following solutions:

-8-

 

	-	 	either to undertake to buy back from the beneficiaries
the shares obtained following the exercising of their options, on the date when they
will present them, this date obligatorily being during the exercising period
initially decided for the options. In the case where the Company is subject to a
procedure of obligatory withdrawal, the shares obtained by the
beneficiaries must obligatorily be presented for repurchase following the exercising
of the options.
	 
	 	 	The price of the repurchase will be equal to that of the
Aventis share on the date when the Change of Control becomes
effective or on the first date of quotation following this
date, and will vary both upwards and downwards between this
date and the date of the request for repurchase, according to
the evolution of the price of the share of the Company which is
the beneficiary of the ‘Change of Control’ over the same
period.
	 
	-	 	or to grant the beneficiaries, in exchange for their old options, new
options.

	 	 	If these commitments are not carried out, the resulting loss to
the beneficiaries will be estimated by an expert designated by
the two parties, or if no agreement can be found, by the
President of the Paris Tribunal de Commerce (commercial court),
who will give a ruling on the petition of the more deserving
party.
	 
	 	 	The amount decided will be paid by the Company, or by any company
which it will substitute for or which will substitute for it.
	 
	 	 	To decide this loss, the expert will take into account the price
of the share on the date when the Change of Control becomes
effective or on the first date of quotation following this change
and the ‘time value’ still left to run until the final date for
the exercising of the considered options taking into account all
the existing corporate or tax incidences.

	IV.	 	EXERCISE OF THE OPTIONS
	 
	 	 	Exercising conditions
	 
	 	 	The exercise of the options by an optionee is subject to the
condition that he/she has a work contract or corporate mandate with
the Company or one of the Companies of the Aventis Group (‘Group
Companies’) on the date of the exercise, unless otherwise decided by
the Chairman in exceptional cases.
	 
	 	 	By Company of the Group, it is meant any company or group of economic
interests where at least 10% of the capital or voting rights is held
directly or indirectly by the Company, on the date of exercise.
	 
	 	 	Notwithstanding the legal provisions of the preceding paragraphs:

-9-

 

	-	 	In the case of resignation, dismissal or revocation, the options can,
whatever the case, be exercised for a maximum period of 6 months from
the date of the letter of resignation, dismissal or revocation, subject
to them being exercisable on the day of the termination of the work
contract or corporate mandate. Non-exercisable options on this date
will be lost.
	 
	 	 	In the case of dismissal resulting from restructuring or planned
redundancy schemes, the options can be exercised for a period of 12
months from the day of the termination of the work contract or from the
Opening Day of the Exercise Period of the options if this date is
later, this period must not exceed the termination date of the options.
By Opening Day of the Exercise Period, it is meant the day from which
the options are exercisable as stipulated in the paragraph ‘duration of
the options.’
	 
	 	 	However, if dismissal (except for serious professional misconduct) or
revocation takes place within eighteen months of a Change of Control
of the Company, the options can be exercised until the termination
under the same conditions as if the optionee still held a work
contract or a corporate mandate.
	 
	-	 	In the case of the transfer of a Company of the Group or an activity
of a Company of the Group to a company where Aventis does not hold
directly or indirectly at least 10% of the capital or voting rights,
or in the case of transfer by flotation, the options can be exercised
until the termination under the same conditions as if the optionee
still held a work contract or a corporate mandate.
	 
	-	 	in the case of retirement or early retirement in accordance with the
applicable regulations, in the case of the dismissal (except for
serious professional misconduct) of an optionee of at least 55 years
of age or the revocation of a corporate mandate of an optionee of at
least 55 years of age, or in the case of invalidity, the options can
be exercised until the termination under the same conditions as if the
optionee still held a work contract or a corporate mandate.
	 
	-	 	In the case of the death of the optionee, the heirs who wish to
exercise the options must do so under the conditions fixed by law
which at the moment stipulate that the options are exercisable for a
period of six months from the date of death.
	 
	 	 	Suspension of option rights
	 
	 	 	The Management Board can suspend the right to exercise the options if
necessary, notably when trading on Aventis capital requires the exact
and prior knowledge of the number of shares which make up the capital
or in the case of one of the financial operations leading to an
adjustment being carried out.
	 
	 	 	In these cases, the Company will inform the beneficiaries of the
suspension date and the date when the options can be exercised again.
Such a suspension cannot extend the exercise period beyond the original
10-year period.

-10-

 

	 	 	Methods of the exercise of the options
	 
	 	 	The exercise of the options is optional for the beneficiaries.
	 
	 	 	The options can be exercised partially or in totality.
	 
	 	 	To exercise an option, the beneficiaries must apply to the Plan Manager
whose details will have been provided.
	 
	 	 	Costs incurred in exercising an option by the Plan Manager will be born
by the beneficiaries.
	 
	V.	 	CHARACTERISTICS OF SUBSCRIBED SHARES
	 
	 	 	Form and delivery of stocks
	 
	 	 	Shares subscribed for by beneficiaries who are French residents
must take the registered form. If this is not the case, their
holders will lose the benefit of the special tax system for stock
options.
	 
	 	 	Unless instructions to the contrary are received from the
beneficiaries, the stocks will be registered on an individual
account opened in the Plan Manager’s books.
	 
	 	 	Interest
	 
	 	 	The new shares will be created with coupon attached and will be
immediately entitled to the same dividend as the other shares which
make up the capital of Aventis, subject to having been subscribed
for prior to the date of the statement of accounts for the fiscal
year for which the first dividend will be paid to them.
	 
	 	 	Shares subscribed between the date of the statement of accounts of
an accounting period and the date of distribution of the dividend
for this period will not give entitlement to the dividend relating
to this period and will be subject to a quotation on the spot market
of the Paris Bourse until the date of distribution of the said
dividend.
	 
	VI.	 	TRANSFER OF SHARES
	 
	 	 	Subject to the period inherent in preliminary formalities for the
quotation on the stock market of new shares and possibly the
application of a tax system which is less favorable in the case of
noncompliance with legal conditions concerning time of tenure and
form, the shares acquired following the exercise of options can be
sold immediately.

-11-

 

	 	 	To carry out this sale, the beneficiaries must address a selling order
to Plan Manager, in accordance with the model sent by the latter.
	 
	 	 	Requests to exercise options will be recorded on a register timed and
dated, which will be held by each Plan Manager.
	 
	 	 	VII MANAGEMENT OF THE PLAN
	 
	 	 	The administrative management of the Stock Option Plan has been
entrusted to banks selected by Aventis (each one a ‘Plan
Manager’).
The beneficiaries will be informed of the details of the Plan Manager
who they can contact for any information.
	 
	 	 	VIII MISCELLANEOUS
	 
	 	 	As some beneficiaries are not French residents, the Board of
Management could, depending on the conditions imposed by certain
countries and with regard to the exercise of options and the
subsequent transfer of options, modify certain provisions of the plan
concerning beneficiaries working in these countries, without these
modifications making the plan more favorable for these beneficiaries
(apart from aspects relating to the tax systems of these countries).

-12-

 

RULES AND REGULATIONS FOR

AVENTIS STOCK SUBSCRIPTION OPTION

GRANT of
December 15, 1999

ANNEX

	 	 	 	 	 	 	 
	Authorization of the Option Plan

	 	:
	 	Combined General Meeting of 26 May 1999

	

	 	 	 	(maximum nominal amount $57.300.000 over

	

	 	 	 	 a maximum period of 3 years)

	 
	 	 	 	 	 	 
	Decision and date of grant

	 	:
	 	Board of
Management of December 15, 1999

	 
	 	 	 	 	 	 
	Number of options allotted

	 	:
	 	5 035 005	 	 
	 
	 	 	 	 	 	 
	Reference price (average price quoted

	 	:
	 	€ 61.84

	from 17 November 1999
	 	 	 	 	 	 
	to 14 December 1999)
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Reduction

	 	:
	 	5%	 	 
	 
	 	 	 	 	 	 
	Exercise price

	 	:
	 	€ 58.75

	 
	 	 	 	 	 	 
	Exercise period

	 	:
	 	From January 6, 2003 through December 15,

	

	 	 	 	2009 inclusive

-13-

 

AVENTIS

STOCK OPTION PLAN

1999/2000

Grant of May 11, 2000

-14-

 

AVENTIS Stock Option Plan

1999/2000

Overview of the Plan

The 1999/2000 Aventis Stock Option Plan was authorized by the Company’s
shareholders meeting. Each stock option gives you the right, but not the
obligation, to subscribe one Aventis newly issued share. The exercise
price is defined below. The options are granted at the Company’s sole
discretion, and should you receive a grant, it is granted for a ten-year
period. They become vested (can be exercised) after five years1 for French
tax residents and three years for other participants.

External administrators have been selected to support the day-to-day
operations of the Plan, in particular the exercise of the options and the
maintenance of an account for each participant. The process to exercise
these options may differ slightly based on your country and your company
within the Group.

Conditions of the Grant

The specific features of the 1999/2000 Stock Option Plan as decided by the
Board of
Management are as follows:

	 	 	 	 	 
	Grant date:

	 	May 11 ,2000

	 
	Reference Price:

	 	€61.36	 	 
	 
	Discount:

	 	5%	 	 
	 
	Exercise Price:

	 	€ 58.29	 	 
	 
	Vesting Date:

	 	May 11,
2003 through May 10, 2010 inclusive

	 
	Exercise Period:

	 	From
May 11, 2003 through May 10, 2010 inclusive

	

	 	(From May 11, 20051 through May 10, 2010, inclusive, for French Residents)

Eligibility to Exercise Your Options

You must be actively employed by one of the companies where the Aventis
Group holds at least 10% of the capital or voting rights at the time you
exercise your options. However. there are several exceptions to this rule,
including:

	 	 	 
	ü
	 	In the case of a resignation or termination, you have up to six months
from the date you receive/give your notice of termination to exercise any
vested options2. Any options that are not vested on your last day of
active employment will be forfeited.

	1 Except in some specific cases (Please consult with your HR Department)
	 
	2 The noted exercise periods cannot extend beyond the life of the options, as
defined in the Conditions
of the Grant

-15-

 

	 	 	 
	ü

	 	In the case of a lay-off resulting from a company
restructuring or social plan, you have up to twelve
months from your last day of active employment of
from the date on which your options become vested
(whichever is later) to exercise any vested options2
Any options that are not exercised within the
12-month period will be forfeited.
	 
	 	 
	ü

	 	However, in the case of lay-off or involuntary
termination (except for cause) within eighteen
months following a “Change of Control” (as defined
by the plan rules), your options will continue to
vest and can be exercised in the same fashion and
under the same conditions as if you had remained
actively employed.
	 
	 	 
	ü

	 	In the case of a divestment of your company or
business resulting in your being directly employed
or transferred to a company where Aventis holds less
than 10% of the capital or voting rights, your
options will continue to vest and can be exercised
in the same fashion and under the same conditions as
if you had remained actively employed.
	 
	 	 
	ü

	 	In the case of retirement, early retirement, or
disability, or in the case of a lay-off or
termination (except for cause) when you are aged 55
or older, your options will continue to vest and can
be exercised in the same fashion and under the same
conditions as if you had remained actively employed.
	 
	 	 
	ü

	 	In the case of a participant’s death, all options
granted to date will be automatically vested. The
participant’s estate will have up to six months from
the date of death to exercise the options.
	 
	 	 
	

	 	Information about Exercising Your Options
	 
	 	 
	ü

	 	Once your stock options are fully vested, you may
exercise them at any time during the exercise period,
which is defined in the Conditions of the Grant. While
the specific procedures for exercising options may
differ from country to country, there are several
general rules that always apply:
	 
	 	 
	ü

	 	You may either choose to: 1) exercise your options and
retain the stock (under this approach, you must advance
the funds necessary to subscribe the shares based on
the exercise price); or 2) utilize a “cashless”
exercise in which you exercise the options and
immediately resell the newly created shares.
	 
	 	 
	ü

	 	The exercise of your stock options (and corresponding
sale of shares, if appropriate) is transacted a soon as
possible after a request is received and your
eligibility is verified.
	 
	 	 
	ü

	 	There are certain administrative and financing fees
charged by the external administrators for managing the
stock options transactions. These fees are charged to
the participant and will vary with the size and type of
transaction.

	2	 	The noted exercise periods cannot extent beyond the life of the options, as
defined in the Conditions
of the Grant.

-16-

 

Special Circumstances For Options Exercised Between The
Approval of the Annual Accounts by the Board and the Dividend
Payment Date: There is a special condition for options that are
exercised between the date of the approval of the accounts by
the Board of management of any year and the date on which
dividends are paid in that year in respect of the previous
financial year (both dates inclusive). Any Aventis shares that
are issued upon the exercise of options in this time period do
not entitle the shareholder to the upcoming dividend payment.

These shares, because they are not entitled to dividends until
the next calendar year, are traded on the cash settlement
market at a price below that of existing shares traded on the
monthly settlement. As a result, this price differential will
reduce the amount of the gain to which you might otherwise be
entitled at the time of exercise.

Taxation

In most countries, stock options are subject to some form of
taxation. The types of taxation vary from taxing the stock
options at the time of grant to taxing options at the time of
exercise as either ordinary income, capital gains, or at a
special rate. The amount, or percentage, of taxation also
obviously varies from country to country; rather, you are
encouraged to consult your tax advisor or local Human Resources
Department for information about your country’s specific tax
rules and regulations related to stock options.

This booklet gives you a summary of the terms and
conditions of the 1999/2000 Aventis Stock Options
Plan. It is for summary information purposes only. The
Company reserves the right to modify these terms and
conditions as necessary. The Plan is established in
accordance with French law and the formal Plan
Document (French version) will serve as the sole
document of reference should any dispute arise.
Consult your Human Resources Department should you
have additional questions.

-17-

 

RULES AND REGULATIONS

FOR AVENTIS STOCK OPTION

PLAN 1999-2000

Grant of May 11, 2000

	I.	 	PRINCIPLE OF A STOCK OPTION PLAN
	 
	 	 	A stock option plan is a system which enables its beneficiaries to
subscribe for new shares in their company (or in the parent company of
their group) during a certain period, at a price fixed at the opening
of the plan and which remains fixed during the whole of this period.
	 
	 	 	The people concerned can therefore be fully associated to the smooth
running of their company and benefit from capital gains if the share
price progresses favorably.
	 
	II.	 	LEGAL FRAMEWORK FOR AVENTIS STOCK OPTIONS PLAN
	 
	 	 	Stock option plans are governed notably by Articles 208-1 to 208-8-1
of the law of 24 July 1966 concerning business corporations and
Articles 174-8 to 174-21 of the decree of 23 March 1967.
	 
	 	 	On the basis of the authorization and the powers which have been given
to it by the Company’s shareholders meeting, the Aventis Board of
Management has decided on the creation of the present Aventis stock
option plan (the ‘stock option plan’) and has laid down the conditions
within the framework of the legal provisions mentioned above. The
Board of Management could adapt these conditions, notably in the case
of changes in the regulations relative to the stock options.
	 
	III.	 	DESCRIPTION OF THE AVENTIS STOCK OPTION PLAN
	 
	 	 	Optionees
	 
	 	 	The Board of Management has laid down the list of beneficiaries of the
stock options plan.
	 
	 	 	Number of shares
	 
	 	 	The maximum number of shares each beneficiary may apply for is given on
the individual letter addressed by the Chairman, or his duly designated
representative.

-18-

 

Share subscription price

The Board of Management has set the subscription price on the basis of
the average price quoted during the last twenty days trading on the
stock exchange prior to the Board with the application of a reduction in
accordance with the legal and statutory provisions in force.

It will remain fixed during the entire stock option plan subject to its
adjustment by the Board of Management according to the terms and
conditions set out in these regulations.

Duration of the options

The options are granted irrevocably for duration of 10 years from the
time day they are allotted by the Board of Management.

Options that have not been exercised at the end of the 10-year period
will be declared null and void. No further extensions will be granted.

The options will not be exercisable within the first three years.
However, the beneficiaries deemed to be resident in France for tax
purposes will be entitled to exercise their options only after a
five-year period from the date of the grant, unless they keep the shares
on the asset register until the end of the said five-year period, and
except if this exercising before five years no longer leads to the
payment of social security contributions by the Company on the capital
gains made by the beneficiaries following a change in the French
regulations in force.

The rights resulting from the options granted are non-transferable.

Adjusting the subscription price and the number of shares

Should the Company carry out any of the following financial operations
before the stock options have expired, the subscription price of the shares and the number of shares which can be subscribed for by each
beneficiary will be adjusted by the Board of Management under the
following conditions:

	1.	 	In the case of the issue, reserved for the shareholders, of shares
to be subscribed in cash, or convertible bonds with bond warrants,
the subscription price of the shares under option will be reduced by
an amount equal to the product of this price through the ratio
between the value of the subscription right and the value of the
share before removal of this right.

-19-

 

	 	 	The ratio will be calculated as follows:

	-	 	The value of the share before removal of the subscription right will be equal to
the average of at least twenty consecutive opening prices chosen from the
forty trading days preceding the opening day of the issue.
	 
	-	 	The value of the subscription right will be the theoretical value calculated
according to the number of new shares issued to which an existing
share gives entitlement, the issue price of these new shares and the value of the
share before removal of the subscription right.

	2.	 	In the case of an increase in capital through incorporation of
reserves, profit or premiums and distribution of bonus shares, the subscription price of
the shares under option will be adjusted by the appropriation of a coefficient
equal to the ratio between the number of old shares and the number of existing
 shares after the operation.
	 
	3.	 	In the case of distribution of reserves into cash or into portfolio
securities, the subscription price of the shares under option will be reduced by an
amount equal to the product of this price through the ratio between the amount per
share of the distribution and the value of the share before distribution.
	 
	 	 	For the calculation of this ratio, if the Company shares and the
securities distributed are allowed in transactions on a regulated
market, the value of the securities distributed and the value of the
share before distribution will be equal to the average of the first
prices quoted during the thirty trading days of the stock exchange
prior to the start of the distribution.
	 
	 	 	If the shares of the Company or the securities distributed are not
allowed in transactions on a regulated market, the Board of
Management will fix the values on sight of the auditors’ special
report.
	 
	4.	 	In the case of a reduction of capital due to losses.

	-	 	If the reduction focuses on the number of shares, the
subscription price will be adjusted by appropriating to it a coefficient equal to the ratio between the
number of old shares and the number of shares remaining after reduction.
	 
	-	 	 If the reduction focuses on the nominal value of the shares, there will be no
adjustment.

In all the cases mentioned above, an adjustment in the number of shares
under option will be made so that the total subscription prices remains
constant. The number adjusted will however be rounded up to the higher
figure.

-20-

 

Change of Control

     ‘Change
of Control’ means exclusively:

	(a)	 	carrying out a takeover bid or a public offer of exchange.
	 
	(b)	 	the direct or indirect acquisition of an interest allowing a new
shareholder to hold at least 20% of the voting rights in the shareholders’ meeting,
or to increase his/her previous interest so as to hold at least 20% of the
voting rights in the shareholders’ meeting.
	 
	(c)	 	the demerger, the contribution or transferal of significant
corporate assets of the Company, which necessitate a meeting of the Company’s general
meeting.
	 
	(d)	 	the direct or indirect intervention of a rival company in the
management of the Company.
	 
	(e)	 	the merger-absorption by the Company of a rival company implying
the arrival of shareholders with over 20% of the voting rights of the company
resulting from the merger, and the merger-absorption of the Company by a rival
company implying the arrival of new shareholders with over 20% of the
voting rights of the company resulting from the merger.

The ‘Change of Control’ will be considered as ‘effective’ from:

	(a)	 	the date of publication in the official list of the notice of
the result of the takeover bid by the SBF – Paris Bourse, in the case of a takeover bid
or a public offer of exchange.
	 
	(b)	 	the date of the notification to the Company of the crossing of
the threshold level having taken the interest of a shareholder to at least 20% of
the voting
rights in the Company, in the case of entry into the capital of a
new
shareholder holding at least 20% of the voting rights in the
shareholders’
meeting or the increase in the previous interest of a new shareholder
taking
his/her interest to at least 20% of the voting rights in the
shareholders’
meeting.
	 
	(c)	 	the date of the assembly approving the demerger, transferal or
contribution of
the principal assets of the Company or the merger, in the case of
demerger,
contribution or transfer of the principal assets of the Company or
merger.
	 
	(d)	 	the date of the general assembly appointing the new management
and
administration structure, in the case of the direct or indirect
intervention of a
rival company in the management and administration structure
of the
Company.

In the case of ‘Change of Control’:

	1.	 	The Company will do its best to ensure sufficient liquidity
allowing the options to
be exercised under normal conditions.
	 
	2.	 	If the Aventis share ceased to be quoted on a regulated market,
it would be
requested of the company responsible for the ‘Change of Control’ to
take over
the existing patrimonial commitments with regard to the beneficiaries
and as a consequence to implement one of the following solutions:

-21-

 

	-	 	either to undertake to buy back from the beneficiaries
the shares obtained
following the exercising of their options, on the date when they
will present them, this date obligatorily being during the exercising period
initially decided for the options. In the case where the Company is subject to a
procedure of
obligatory withdrawal, the shares obtained by the
beneficiaries must obligatorily be presented for repurchase following the exercising
of the
options.
	 
	 	 	The price of the repurchase will be equal to that of the
Aventis share on the date when the Change of Control becomes
effective or on the first date of quotation following this
date, and will vary both upwards and downwards between this
date and the date of the request for repurchase, according to
the evolution of the price of the share of the Company which is
the beneficiary of the ‘Change of Control’ over the same
period.
	 
	 	 	or to grant the beneficiaries, in exchange for their old options, new
options.

If these commitments are not carried out, the resulting loss to
the beneficiaries will be estimated by an expert designated by
the two parties, or if no agreement can be found, by the
President of the Paris Tribunal de Commerce (commercial court),
who will give a ruling on the petition of the more deserving
party.

The amount decided will be paid by the Company, or by any company
which it will substitute for or which will substitute for it.

To decide this loss, the expert will take into account the price
of the share on the date when the Change of Control becomes
effective or on the first date of quotation following this change
and the ‘time value’ still left to run until the final date for
the exercising of the considered options taking into account all
the existing corporate or tax incidences.

	IV.	 	EXERCISE OF THE OPTIONS
	 
	 	 	Exercising conditions
	 
	 	 	The exercise of the options by an optionee is subject to the
condition that he/she has a work contract or corporate mandate with
the Company or one of the Companies of the Aventis Group (‘Group
Companies’) on the date of the exercise, unless otherwise decided by
the Chairman in exceptional cases.
	 
	 	 	By Company of the Group, it is meant any company or group of economic
interests where at least 10% of the capital or voting rights is held
directly or indirectly by the Company, on the date of exercise.
	 
	 	 	Notwithstanding the legal provisions of the preceding paragraphs:

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	-	 	In the case of resignation, dismissal or revocation, the options can,
whatever the case, be exercised for a maximum period of 6 months from
the date of the letter of resignation, dismissal or revocation, subject
to them being exercisable on the day of the termination of the work
contract or corporate mandate. Non-exercisable options on this date
will be lost.
	 
	 	 	In the case of dismissal resulting from restructuring or planned
redundancy schemes, the options can be exercised for a period of 12
months from the day of the termination of the work contract or from the
Opening Day of the Exercise Period of the options if this date is
later, this period must not exceed the termination date of the options.
By Opening Day of the Exercise Period, it is meant the day from which
the options are exercisable as stipulated in the paragraph ‘duration of
the options.’
	 
	 	 	However, if dismissal (except for serious professional misconduct) or
revocation takes place within eighteen months of a Change of Control
of the Company, the options can be exercised until the termination
under the same conditions as if the optionee still held a work
contract or a corporate mandate.
	 
	-	 	In the case of the transfer of a Company of the Group or an activity
of a Company of the Group to a company where Aventis does not hold
directly or indirectly at least 10% of the capital or voting rights,
or in the case of transfer by flotation, the options can be exercised
until the termination under the same conditions as if the optionee
still held a work contract or a corporate mandate.
	 
	-	 	in the case of retirement or early retirement in accordance with the
applicable regulations, in the case of the dismissal (except for
serious professional misconduct) of an optionee of at least 55 years
of age or the revocation of a corporate mandate of an optionee of at
least 55 years of age, or in the case of invalidity, the options can
be exercised until the termination under the same conditions as if the
optionee still held a work contract or a corporate mandate.
	 
	-	 	In the case of the death of the optionee, the heirs who wish to
exercise the options must do so under the conditions fixed by law
which at the moment stipulate that the options are exercisable for a
period of six months from the date of death.

Suspension of option rights

The Management Board can suspend the right to exercise the options if
necessary, notably when trading on Aventis capital requires the exact
and prior knowledge of the number of shares which make up the capital
or in the case of one of the financial operations leading to an
adjustment being carried out.

In these cases, the Company will inform the beneficiaries of the
suspension date and the date when the options can be exercised again.
Such a suspension cannot extend the exercise period beyond the original
10-year period.

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Methods of the exercise of the options

The exercise of the options is optional for the beneficiaries.

The options can be exercised partially or in totality.

To exercise an option, the beneficiaries must apply to the Plan Manager
whose details will have been provided.

Costs incurred in exercising an option by the Plan Manager will be born
by the beneficiaries.

V. CHARACTERISTICS OF SUBSCRIBED SHARES

Form and delivery of stocks

Shares subscribed for by beneficiaries who are French residents
must take the registered form. If this is not the case, their
holders will lose the benefit of the special tax system for stock
options.

Unless instructions to the contrary are received from the
beneficiaries, the stocks will be registered on an individual
account opened in the Plan Manager’s books.

Interest

The new shares will be created with coupon attached and will be
immediately entitled to the same dividend as the other shares which
make up the capital of Aventis, subject to having been subscribed
for prior to the date of the statement of accounts for the fiscal
year for which the first dividend will be paid to them.

Shares subscribed between the date of the statement of accounts of
an accounting period and the date of distribution of the dividend
for this period will not give entitlement to the dividend relating
to this period and will be subject to a quotation on the spot market
of the Paris Bourse until the date of distribution of the said
dividend.

VI. TRANSFER OF SHARES

Subject to the period inherent in preliminary formalities for the
quotation on the stock market of new shares and possibly the
application of a tax system which is less favorable in the case of
noncompliance with legal conditions concerning time of tenure and
form, the shares acquired following the exercise of options can be
sold immediately.

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To carry out this sale, the beneficiaries must address a selling order
to Plan Manager, in accordance with the model sent by the latter.

Requests to exercise options will be recorded on a register timed and
dated, which will be held by each Plan Manager.

VII MANAGEMENT OF THE PLAN

The administrative management of the Stock Option Plan has been
entrusted to banks selected by Aventis (each one a ‘Plan
Manager’).
The beneficiaries will be informed of the details of the Plan Manager
who they can contact for any information.

VIII MISCELLANEOUS

As some beneficiaries are not French residents, the Board of
Management could, depending on the conditions imposed by certain
countries and with regard to the exercise of options and the
subsequent transfer of options, modify certain provisions of the plan
concerning beneficiaries working in these countries, without these
modifications making the plan more favorable for these beneficiaries
(apart from aspects relating to the tax systems of these countries).

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RULES AND REGULATIONS FOR AVENTIS

STOCK SUBSCRIPTION OPTION

GRANT of 11 May 2000

ANNEX

	 	 	 	           	 
	Authorization of the Option Plan

	 	:
	 	Combined General Meeting of 26 May 1999

	

	 	 	 	(maximum nominal amount € 57.300.000
over a maximum period of 3 years)

	 
	 	 	 	 
	Decision and date of grant

	 	:
	 	Board of
Management of May 11, 2000

	 
	 	 	 	 
	Number of options allotted

	 	:
	 	747 727
	 
	 	 	 	 
	Reference price (average price quoted
from
10 April 2000 to 10 May 2000)

	 	:
	 	€61,36
	 
	 	 	 	 
	Reduction

	 	:
	 	5%
	 
	 	 	 	 
	Exercise price

	 	:
	 	€ 58.29
	 
	 	 	 	 
	Exercise period

	 	:
	 	From 11 May 2003 to 10 May 2010 inclusive

-26-

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