Document:

EX-4.4

 

Exhibit 4.4

RULES AND REGULATIONS

FOR THE AVENTIS STOCK OPTION

PLAN 2002 / 2

Grant of November 12, 2002

I. GENERAL PRINCIPLES AND PURPOSE FOR AVENTIS STOCK OPTION PLAN

	 	 	A stock option plan is a system that 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 that
remains fixed during the whole of this period.
	 
	 	 	The purpose of Aventis stock option plan 2002 / 2 is to foster and promote
the long-term success of Aventis Group and 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 choose to
be fully associated to the running of their company and benefit from capital
gains if the share price progresses favourably.
	 
	 	 	Stock option plans of Aventis are governed by the French law and notably by
Articles L 225-177 to L 225-185 of the Commercial Law 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 2002 / 2 and
has laid down the conditions within the framework of the legal provisions
mentioned above. The Management Board can 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 the Company together with any company, partnership or
other group of economic interest or legal entity 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 transferral 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
involving the arrival of shareholders holding over 20% of the voting
rights of the company resulting from the merger, and the
merger-absorption of the Company by a rival company involving the
arrival of new shareholders holding 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(s) 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.
	 
	 	 	“Stock Option Plan” means the Aventis stock option plan 2002 / 2.

	 	 	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

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	 	 	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
Option 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.
	 
	 	 	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 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 a duration of 10 years from the 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 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 four-year period from the
date of the grant, unless they keep the shares on the asset register until
the end of the said four-year period, and except if this exercising before
four 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.

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	 	 	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 options have expired, the subscription price of the shares and
the number of shares that 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 or exchangeable bonds or 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.
	 
	 	 	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 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
application of a coefficient equal to the ratio between the number of
old shares and the number of shares existing 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 multiplied by
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.

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	 	 	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 upon review 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 remain constant.
The number adjusted will however be rounded up to the higher figure.

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 Euronext Paris, 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,
transferral 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.

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	2.	 	If the Aventis shares 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 exercise of their options, on the
date when they will present them, this date obligatorily being
during the exercise 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 exercise 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 would 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 diligent party.
	 
	 	 	The amount decided would be paid by the Company, or by any company that
it will substitute for or that 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 exercise of the considered
options taking into account all the existing corporate or tax
incidences.

IV. EXERCISE OF THE OPTIONS

	 	 	Exercising conditions

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	 	 	The exercise of the options by an optionee is subject to the condition that
he/she is actively employed by, or has a corporate mandate with, the Company
or one of the Companies of the Aventis Group on the date of the exercise,
unless otherwise decided by the Management Board in exceptional cases.
	 
	 	 	By Company of the Aventis 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 provisions of the preceding paragraphs:

	-	 	In the case of (i) resignation, (ii) lay-off, redundancy or other
termination at the employer’s initiative (except for serious
professional misconduct), (iii) expiration of a limited duration work
contract or (iv) revocation of a corporate mandate (except for serious
professional misconduct), the options can, whatever the case, be
exercised for a maximum period of 6 months from the date of departure
from the employing company (in the case of resignation or termination),
the date of expiration of the work contract or the date of the
revocation, subject to their being exercisable on such date of
departure, expiration or revocation. Options that are not exercisable on
such date of departure, expiration or revocation will be lost.
	 
	-	 	If the prior formal approval of the Management Board is obtained, in
the case of lay-off, redundancy or other termination at the employer’s
initiative resulting from a collective headcount reduction scheme
(except in the case of serious professional misconduct), the options can
be exercised for a period of 12 months from the effective date of the
termination or from the Opening Day of the Exercise Period of the
options if this date is later, provided that this period cannot exceed
the termination date of the options. Opening Day of the Exercise Period
means it is the day from which the options are exercisable as stipulated
in the paragraph “Duration of the options”.
	 
	-	 	However, if a lay-off, redundancy or other termination at the
employer’s initiative (except for serious professional misconduct),
expiration of a work contract or revocation (except for serious
professional misconduct) takes place within eighteen months following a
Change of Control of the Company, the options can be exercised until the
expiration of the plan under the same conditions as if the optionee were
still employed or held a corporate mandate.
	 
	-	 	In the case of dismissal or revocation for serious professional
misconduct, the departure from the employing company automatically
cancels those options not yet exercised with effect from the date of
notification of such dismissal or revocation.
	 
	-	 	In the case of the transfer of a Company of the Aventis Group or an
activity of a Company of the Aventis Group to a company where Aventis
does not hold

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	 	 	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 expiration of the plan under the same conditions
as if the optionee were still employed or held 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 French
law, which at the moment stipulate that the options are exercisable for
a period of six months from the date of death.
	 
	-	 	Except in the case of serious professional misconduct, the options
can be exercised until the expiration of the plan under the same
conditions as if the optionee were still employed or held a corporate
mandate, in the following cases:

	o	 	Disability,
	 
	o	 	Employee or holder of a corporate mandate, aged 55 or
more, retiring at the employer’s initiative or taking early
retirement at the employer’s initiative,
	 
	o	 	Employee or holder of a corporate mandate, aged 55 or
more and having at least 10 years of seniority in the Aventis
Group, retiring,
	 
	o	 	Lay-off, redundancy or other termination at the
employer’s initiative (except for serious professional misconduct)
of an employee aged 55 or more,
	 
	o	 	Revocation or early termination of the corporate mandate
(except for serious professional misconduct) of a mandate holder
aged 55 or more.

	 	 	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 that 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 Insider
Trading”. Exercise of the options by an employee who is a Restricted Person
or who has access to privileged information, is in particular prohibited
during “Black-Out periods”. In general, a Black-Out period is the 30-day
period commencing

-8-

 

	 	 	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 at the discretion of 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 in 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

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	 	 	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 favourable in the case of non-compliance 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
the 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.
Aventis reserves the right to entrust to a new bank the
administrative management of the stock option plan, after prior
information to the beneficiaries.

VIII MISCELLANEOUS

	 	 	As some beneficiaries are not French residents, the Management Board
could, depending on the conditions imposed by certain countries, 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 favourable 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’s 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 12, 2002

ANNEX

	 	 	 
	Authorization of the Option Plan:

	 	General Shareholders Meeting of May 14, 2002.
	 
	 	 
	Decision and date of grant:

	 	Management Board of November 12, 2002
	 
	 	 
	Number of options allotted:
	 	 
	 
	 	 
	Reference price (average price
quoted from October 14, 2002
to November 8, 2002):

	 	€60.27
	 
	 	 
	Exercise price:

	 	€60.27
	 
	 	 
	Vesting date:

	 	November 13, 2005 except for French tax residents (November 13, 2006 for French tax residents)
	 
	 	 
	Exercise period:

	 	From November 13, 2005 through November 12, 2012 inclusive (From November 13, 2006 through
November 12, 2012, inclusive for French tax residents)

-11-EX-4.5:

 

Exhibit 4.5

RULES AND REGULATIONS

FOR THE AVENTIS STOCK OPTION

PLAN 2001

Grant of November 7, 2001

	I.	 	 GENERAL PRINCIPLES AND PURPOSE FOR AVENTIS STOCK OPTION PLAN

A stock option plan is a system that 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 that
remains fixed during the whole of this period.

The purpose of Aventis stock option plan 2001 is to foster and promote the
long-term success of Aventis Group and 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 choose to
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 L 225-177 to L 225-185 of the Commercial Law 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 2001 and has
laid down the conditions within the framework of the legal provisions
mentioned above. The Management Board can 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 the Company together with any company, partnership or
other group of economic interest or legal entity 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 involving
the arrival of shareholders holding over 20% of the voting rights of
the company resulting from the merger, and the merger-absorption of
the Company by a rival company involving the arrival of new
shareholders holding 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(s) 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.

“Stock Option Plan” means the Aventis stock option plan 2001.

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.

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	III.	 	DESCRIPTION OF THE AVENTIS STOCK OPTION PLAN

Optionees

The Management Board has laid down the list of beneficiaries of the Stock Option 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.

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 a duration of 10 years from the 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 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 four-year period from the
date of the grant, unless they keep the shares on the asset register until
the end of the said four-year period, and except if this exercising before
four 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 options have expired, the subscription price of the shares and
the number of shares

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that 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 or exchangeable bonds or 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.
	 
	 	 	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 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
application of a coefficient equal to the ratio between the number of
old shares and the number of shares existing 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 multiplied by
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 upon review 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.

-4-

 

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

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 Euronext Paris, 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 shares 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 exercise of their options, on the
date when they will present them, this date obligatorily being
during the exercise 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 exercise 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 would 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 diligent party.

The amount decided will be paid by the Company, or by any company that
it will substitute for or that 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 exercise 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 is actively employed by, or has a corporate mandate with, the Company
or one of the Companies of the Aventis Group on the date of the exercise,
unless otherwise decided by the Management Board in exceptional cases.

By Company of the Aventis 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 provisions of the preceding paragraphs:

	-	 	In the case of (i) resignation, (ii) lay-off, redundancy or other
termination at the employer’s initiative (except for serious
professional misconduct), (iii) expiration of a limited duration work
contract or (iv) revocation of a corporate mandate, the options can,
whatever the case, be exercised for a maximum period of 6 months from
the date of departure from the employing company (in the case of
resignation or termination), the date of expiration of the work contract
or the date of the revocation, subject to their being exercisable on
such date of departure, expiration or revocation. Options that are not
exercisable on such date of departure, expiration or revocation will be
lost.
	 
	-	 	If the prior formal approval of the Management Board is obtained, in
the case of lay-off, redundancy or other termination at the employer’s
initiative resulting from a collective headcount reduction scheme
(except in the case of serious professional misconduct), the options can
be exercised for a period of 12 months from the

-6-

 

	 	 	effective date of the termination or from the Opening Day of the Exercise
Period of the options if this date is later, provided that this period
cannot 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 a lay-off, redundancy or other termination at the
employer’s initiative (except for serious professional misconduct),
expiration of a work contract or revocation takes place within eighteen
months following a Change of Control of the Company, the options can be
exercised until the expiration of the plan under the same conditions as
if the optionee were still employed or held a corporate mandate.
	 
	-	 	In the case of dismissal for serious professional misconduct, the
departure from the employing company 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 Aventis Group or an
activity of a Company of the Aventis 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 expiration of the plan under the same conditions
as if the optionee were still employed or held 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 French
law, which at the moment stipulate that the options are exercisable for
a period of six months from the date of death.
	 
	-	 	Except in the case of serious professional misconduct, the options
can be exercised until the expiration of the plan under the same
conditions as if the optionee were still employed or held a corporate
mandate, in the following cases:

	-	 	Disability,
	 
	-	 	Employee or holder of a corporate mandate, aged 55 or
more, retiring at the employer’s initiative or taking early
retirement at the employer’s initiative,
	 
	-	 	Employee or holder of a corporate mandate, aged 55 or
more and having at least 10 years of seniority in the Aventis
Group, retiring,
	 
	-	 	Lay-off, redundancy or other termination at the
employer’s initiative (except for serious professional misconduct)
of an employee aged 55 or more,
	 
	-	 	Revocation or early termination of the corporate mandate
(except for serious professional misconduct) of a mandate holder
aged 55 or more.

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

-7-

 

number of shares that 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 Insider
Trading”. Exercise of the options by an employee who is a Restricted Person
or who has access to privileged information, is in particular 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 at the discretion of 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 in 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.

-8-

 

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
the 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 PLAN3

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, 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’s 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

-9-

 

be selected as a beneficiary, or, having been so selected, to receive any
future options.

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

-10-

 

RULES AND REGULATIONS FOR

AVENTIS STOCK SUBSCRIPTION OPTION

GRANT of November 7, 2001

ANNEX

	 	 	 	 	 	 	 
	Authorization of the Option Plan

	 	:
	 	Combined General Meeting of 24 May, 2000

	 
	 	 	 	 	 	 
	Decision and date of grant

	 	:
	 	Management Board of November 7, 2001

	 
	 	 	 	 	 	 
	Number of options allotted

	 	:
	 	11,392,710	 	 
	 
	 	 	 	 	 	 
	Reference price (average price
quoted from October 10, 2001
to November 7, 2001)

	 	:
	 	€ 83.81	 	 
	 
	 	 	 	 	 	 
	Exercise price

	 	:
	 	€ 83.81	 	 
	 
	 	 	 	 	 	 
	Vesting date

	 	 	 	November 8, 2004 except for French tax
residents

	

	 	 	 	(November 8, 2005 for French tax residents)

	 
	 	 	 	 	 	 
	Exercise period

	 	:
	 	From November 8, 2004 through November 7,
2011 inclusive

	

	 	 	 	(From November 8, 2005 through November 7,
2011, inclusive for French tax residents)

-11-

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