ERGO International AG - Munich Re
ERGO International AG - Munich Re
ERGO International AG - Munich Re
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<strong>ERGO</strong> <strong>International</strong> Aktiengesellschaft<br />
(a stock corporation incorporated under the laws of Germany, having its registered seat in DuÈ sseldorf)<br />
b 345,000,000<br />
2.25% Guaranteed Exchangeable Bonds due 2006<br />
exchangeable for ordinary shares with no par value in<br />
E.ON <strong>AG</strong><br />
(a stock corporation incorporated under the laws of Germany, having its registered seat in DuÈ sseldorf)<br />
and<br />
b 345,000,000<br />
0.75% Guaranteed Exchangeable Bonds due 2006<br />
exchangeable for ordinary shares with a nominal value of b 3.82 per share in<br />
AVENTIS S.A.<br />
(a stock corporation incorporated under the laws of France, having its registered seat in Strasbourg)<br />
both unconditionally and irrevocably guaranteed by<br />
<strong>ERGO</strong> Versicherungsgruppe Aktiengesellschaft<br />
(a stock corporation incorporated under the laws of Germany, having its registered seat in DuÈ sseldorf)<br />
Issue Price: 100%<br />
The 2.25% Guaranteed Exchangeable Bonds due 2006 (the ``Bonds Exchangeable for E.ON Shares'') exchangeable for<br />
ordinary shares with no par value (the ``E.ON Shares'') in E.ON <strong>AG</strong> (``E.ON'') and the 0.75% Guaranteed Exchangeable Bonds<br />
due 2006 (the ``Bonds Exchangeable for Aventis Shares'', and together with the Bonds Exchangeable for E.ON Shares, the<br />
``Bonds'') exchangeable for ordinary shares, nominal value B 3.82 per share (the ``Aventis Shares'', and together with the E.ON<br />
Shares, the ``Shares''), in Aventis S.A. (``Aventis'') issued by <strong>ERGO</strong> <strong>International</strong> Aktiengesellschaft (the ``Issuer'') will be in the<br />
denomination of B 10,000 each. Each Bond Exchangeable for E.ON Shares will, at the option of the Bondholders, be exchangeable<br />
on or after January 1, 2002 to and including September 1, 2006 for E.ON Shares at an initial exchange price for each E.ON Share<br />
of B 75.00, and each Bond Exchangeable for Aventis Shares will, at the option of the Bondholders, be exchangeable on or after<br />
January 1, 2002 to and including September 1, 2006 for Aventis Shares at an initial exchange price for each Aventis Share of<br />
B 98.50. The Issuer is entitled, upon exchange of a Bond by a Bondholder, to pay a cash amount in lieu of delivery of Shares. See<br />
``Conditions of Issue ± } 5(5) Cash Payment in lieu of Delivery of Shares''. The obligations of the Issuer under the Bonds will be<br />
unconditionally and irrevocably guaranteed by <strong>ERGO</strong> Versicherungsgruppe Aktiengesellschaft (the ``Guarantor'' or ``<strong>ERGO</strong>'').<br />
The Issuer has granted to Morgan Stanley & Co. <strong>International</strong> Limited (the ``Manager'') the option to resell to the Issuer, for<br />
cancellation, up to B 45,000,000 principal amount of the Bonds Exchangeable for E.ON Shares and up to B 45,000,000 principal<br />
amount of the Bonds Exchangeable for Aventis Shares prior to October 14, 2001. See ``Subscription and Sale''.<br />
Unless previously exchanged, the Bonds will be redeemed by the Issuer on September 14, 2006 at 100% of their principal<br />
amount. The Issuer may, at its option, but not earlier than on September 28, 2004, redeem the Bonds, in whole or in part, at their<br />
principal amount together with interest accrued thereon if the price of the Shares (plus any cash amounts payable and the value<br />
of any property and of any shares deliverable by the Issuer) exceeds 130% of the exchange price during a speci®ed period. See<br />
``Conditions of Issue ± } 3(3) Early <strong>Re</strong>demption''. Interest will accrue from September 14, 2001 and will be payable annually in<br />
arrears on September 14 of each year, commencing on September 14, 2002.<br />
Application has been made to list the Bonds on the Luxembourg Stock Exchange. The E.ON Shares are listed on all eight<br />
German stock exchanges and the Swiss Stock Exchange and the Aventis Shares are listed on the Euronext Paris and Frankfurt<br />
stock exchanges. Each of E.ON and Aventis also has American Depositary Shares (ADSs) listed on the New York Stock<br />
Exchange.<br />
The Bonds Exchangeable for E.ON Shares and the Bonds Exchangeable for Aventis Shares are each represented by a<br />
global certi®cate (each, a ``Global Certi®cate'', and both together, the ``Global Certi®cates'') payable to bearer without interest<br />
coupons. De®nitive certi®cates representing individual Bonds and interest coupons will not be issued. The Global Certi®cates will<br />
be kept in custody with Clearstream Banking <strong>AG</strong>, Frankfurt am Main (``Clearstream Frankfurt''), until all obligations of the<br />
Issuer under the Bonds have been satis®ed.<br />
The Bonds and the Guarantees (as de®ned herein) have not been and will not be registered under the United States<br />
Securities Act of 1933, as amended (the ``Securities Act''). The Bonds are being offered or sold only to U.S. persons that are<br />
``quali®ed institutional buyers'' under Rule 144A under the Securities Act and ``quali®ed purchasers'' under the United States<br />
Investment Company Act of 1940, as amended (the ``1940 Act''), and to non-U.S. persons in offshore transactions in reliance on<br />
<strong>Re</strong>gulation S under the Securities Act. Prospective investors are hereby noti®ed that sellers of the Bonds may be relying on the<br />
exemption from the provisions of Section 5 of the Securities Act provided by Rule 144A. <strong>Re</strong>offers, resales and other transfers of the<br />
Bonds are subject to the restrictions described under ``Transfer <strong>Re</strong>strictions''.<br />
The Bonds offered hereby are offered by the Manager subject to receipt and acceptance by it and subject to its right to reject<br />
any order in whole or in part. The Bonds have been accepted for clearance through Clearstream Frankfurt, Clearstream<br />
Banking S.A., Luxembourg (``Clearstream Luxembourg''), and Euroclear Bank S.A./N.V., Brussels (``Euroclear''). It is expected<br />
that delivery of the Bonds will be made through the facilities of Clearstream Frankfurt and, outside the Federal <strong>Re</strong>public of<br />
Germany, of Clearstream Luxembourg and Euroclear, against payment therefor in immediately available funds, on or about<br />
September 14, 2001.<br />
Morgan Stanley<br />
The date of this Information Memorandum is September 12, 2001.
THIS INFORMATION MEMORANDUM DOES NOT CONSTITUTE AN OFFER TO SELL<br />
OR A SOLICITATION OF AN OFFER TO BUY ANY SECURITY OTHER THAN THE BONDS<br />
OFFERED HEREBY, AND DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION<br />
OF AN OFFER TO BUY ANY BONDS OFFERED HEREBY TO ANY PERSON IN ANY<br />
JURISDICTION IN WHICH IT IS UNLAWFUL TO MAKE ANY SUCH OFFER OR<br />
SOLICITATION.<br />
The distribution of this Information Memorandum and the offering of the Bonds, and the Shares to<br />
be delivered upon redemption of the Bonds by way of exchange, may, in certain jurisdictions, be restricted<br />
by law. No action has been or will be taken in any jurisdiction by the Issuer, the Guarantor or by the<br />
Manager that would permit a public offering of the Bonds or Shares or possession or distribution of a<br />
prospectus or offering memorandum in any jurisdiction where action for that purpose is required. The<br />
Issuer, the Guarantor and the Manager require persons into whose possession this Information<br />
Memorandum comes to inform themselves of and observe all such restrictions. None of the Issuer, the<br />
Guarantor or the Manager accepts any legal responsibility for any violation by any person, whether or not<br />
a prospective purchaser of the Bonds, of any such restrictions. For a further description of certain<br />
restrictions on offers and sales of the Bonds and on the distribution of this Information Memorandum,<br />
particularly in relation to the United States, see ``Subscription and Sale'' and ``Transfer <strong>Re</strong>strictions''.<br />
No securities sales prospectus (Wertpapier-Verkaufsprospekt) has been ®led with or approved by the<br />
Federal Securities Trading Supervisory Authority (Bundesaufsichtsamt fuÈr den Wertpapierhandel) in<br />
relation to the Bonds. Accordingly, the Bonds may be sold in Germany only in accordance with any of the<br />
exemptions provided in the Securities Sales Prospectus Act (Wertpapier-Verkaufsprospektgesetz).<br />
The Issuer has not authorised any offer of the Bonds to the public in the United Kingdom within the<br />
meaning of the Public Offers of Securities <strong>Re</strong>gulations 1995 (as amended) (the ``<strong>Re</strong>gulations''). The Bonds<br />
may not lawfully be offered or sold to persons in the United Kingdom, except under circumstances which<br />
do not result in an offer to the public in the United Kingdom within the meaning of the <strong>Re</strong>gulations or<br />
otherwise in compliance with all applicable provisions of the <strong>Re</strong>gulations. See ``Subscription and Sale ±<br />
Selling <strong>Re</strong>strictions''.<br />
The Bonds have not been and will not be registered under the Securities and Exchange Law of Japan.<br />
The Bonds may not be offered or sold, directly or indirectly, in Japan or to, or for the bene®t of, any<br />
resident of Japan (including any Japanese corporation) or to others for reoffer or resale, directly or<br />
indirectly, in Japan or to, or for the bene®t of, any resident of Japan, except pursuant to an exemption from<br />
the registration requirements and from the requirements to deliver a prospectus under the Securities and<br />
Exchange Law of Japan and otherwise in compliance with such law and other relevant laws and<br />
regulations.<br />
In the Netherlands, the Bonds may only be offered, transferred, delivered or sold to individuals or<br />
legal entities who or which trade or invest in securities in the conduct of their profession or trade, which<br />
include banks, brokers, dealers, insurance companies, pension funds and other institutional investors, and<br />
commercial enterprises which regularly, as an ancillary activity, invest in securities.<br />
THE BONDS HAVE NOT BEEN RECOMMENDED BY ANY UNITED STATES FEDERAL<br />
OR STATE SECURITIES COMMISSION OR REGULATORY AUTHORITY. FURTHERMORE,<br />
THE FOREGOING AUTHORITIES HAVE NOT CONFIRMED THE ACCURACY OR<br />
DETERMINED THE ADEQUACY OF THIS INFORMATION MEMORANDUM. ANY<br />
REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENCE.<br />
The purpose of this Information Memorandum is to give information with regard to the Issuer, the<br />
Guarantor, E.ON, Aventis and the Bonds. Subject to the quali®cations set out below, the Issuer and the<br />
Guarantor accept responsibility for the information contained in this Information Memorandum. To the<br />
best knowledge and belief of the Issuer and the Guarantor, the information contained in this Information<br />
Memorandum, for which the Issuer and the Guarantor accept responsibility, is in accordance with the facts<br />
and does not omit anything likely to affect the import of such information. The information contained<br />
herein with regard to E.ON and the E.ON Shares and with regard to Aventis and the Aventis Shares has<br />
been accurately reproduced from, or is a summary of, publicly available information published by E.ON<br />
and Aventis, respectively. So far as the Issuer and the Guarantor are aware, no facts have been omitted<br />
2
which would render such information misleading. The Issuer and the Guarantor accept responsibility for<br />
the accurate reproduction or, as the case may be, summary of such information. No further or other<br />
responsibility in respect of such information is accepted by the Issuer or the Guarantor.<br />
No person has been authorised to give any information or to make any representations, other than<br />
those contained in this Information Memorandum, in connection with the issue and sale of the Bonds and,<br />
if given or made, such information or representations must not be relied upon as having been authorised by<br />
the Issuer, the Guarantor or the Manager. Neither the delivery of this Information Memorandum nor any<br />
allotment or sale made in connection herewith shall, under any circumstances, create any implication that<br />
there has been no change in the affairs of the Issuer or the Guarantor since the date hereof, or that the<br />
information herein is correct as of any time subsequent to the date hereof.<br />
The Manager makes no representation or warranty, express or implied, as to the accuracy or<br />
completeness of the information contained in this Information Memorandum and nothing contained herein<br />
is, or shall be relied upon as, a promise or representation by the Manager as to the past or the future.<br />
The document does not constitute an offer or an invitation by or on behalf of the Issuer or the<br />
Guarantor or by or on behalf of the Manager to subscribe for or purchase any of the Bonds and should not<br />
be considered to be a recommendation by the Issuer, the Guarantor, the Manager or any of them that any<br />
recipient of this document should subscribe for or purchase any of the Bonds. Each recipient of this<br />
document shall be taken to have made its own investigation and appraisal of the conditions (®nancial or<br />
otherwise) of the Issuer, the Guarantor, E.ON and Aventis.<br />
All references herein to ``euro'' or ``e`' are to the single currency which was introduced on January 1,<br />
1999 at the start of the third stage of the economic and monetary union of the European Union. All<br />
references herein to ``DM'' or ``Deutsche Mark'' are to the non-decimal subunits of the euro as de®ned by<br />
the conversion rate irrevocably ®xed in accordance with Article 109 1 (4) sentence 1 of the EC Treaty.<br />
This Information Memorandum contains statements relating to the future that are based on the<br />
beliefs of the Issuer's or the Guarantor's management. The words ``anticipate'', ``believe'', ``estimate'',<br />
``expect'', ``intend'', ``plan'' and ``project'' are used to identify such future-oriented statements. These<br />
statements re¯ect current views with respect to future events and are subject to risks and uncertainties.<br />
Many factors could cause the actual results to be materially different. These factors include, among others,<br />
changes in general economic and business conditions, changes in currency exchange rates and interest rates,<br />
the introduction of competing products, a lack of acceptance of new products or services, and changes in<br />
business strategy. Actual results may vary materially from those projected here. Neither the Issuer nor the<br />
Guarantor intends or assumes any obligation to update these forward-looking statements.<br />
3
IN CONNECTION WITH THIS ISSUE, THE MAN<strong>AG</strong>ER OR ITS AFFILIATES MAY OVER-<br />
ALLOT OR EFFECT TRANSACTIONS WHICH STABILISE OR MAINTAIN THE MARKET PRICE<br />
OF THE BONDS AND THE SHARES AT LEVELS WHICH MIGHT NOT OTHERWISE PREVAIL.<br />
SUCH STABILISING, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME.<br />
NOTICE TO NEW HAMPSHIRE RESIDENTS ONLY<br />
NEITHER THE FACT THAT A REGISTRATION STATEMENT OR AN APPLICATION FOR<br />
A LICENCE HAS BEEN FILED UNDER CHAPTER 421-B OF THE NEW HAMPSHIRE REVISED<br />
STATUTES WITH THE STATE OF NEW HAMPSHIRE NOR THE FACT THAT A SECURITY IS<br />
EFFECTIVELY REGISTERED OR A PERSON IS LICENSED IN THE STATE OF NEW<br />
HAMPSHIRE CONSTITUTES A FINDING BY THE SECRETARY OF STATE OF NEW<br />
HAMPSHIRE THAT ANY DOCUMENT FILED UNDER RSA 421-B IS TRUE, COMPLETE AND<br />
NOT MISLEADING. NEITHER ANY SUCH FACT NOR THE FACT THAT AN EXEMPTION OR<br />
EXCEPTION IS AVAILABLE FOR A SECURITY OR A TRANSACTION MEANS THAT THE<br />
SECRETARY OF STATE HAS PASSED IN ANY WAY UPON THE MERITS OR<br />
QUALIFICATIONS OF, OR RECOMMENDED OR GIVEN APPROVAL TO, ANY PERSON,<br />
SECURITY OR TRANSACTION. IT IS UNLAWFUL TO MAKE, OR CAUSE TO BE MADE, TO<br />
ANY PROSPECTIVE PURCHASER, CUSTOMER OR CLIENT ANY REPRESENTATION<br />
INCONSISTENT WITH THE PROVISIONS OF THIS PAR<strong>AG</strong>RAPH.<br />
4
TABLE OF CONTENTS<br />
INCORPORATION BY REFERENCEPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 8<br />
ENFORCEMENT OF CIVIL LIABILITIES PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 8<br />
AVAILABLE INFORMATION PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 8<br />
SUMMARY OF THE CONDITIONS OF ISSUE PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 9<br />
CONDITIONS OF ISSUE OF THE BONDS EXCHANGEABLE FOR E.ON SHARESPPPPPP 13<br />
CONDITIONS OF ISSUE OF THE BONDS EXCHANGEABLE FOR AVENTIS SHARESPP 43<br />
UNDERTAKING WITH RESPECT TO THE BONDS EXCHANGEABLE FOR E.ON<br />
SHARESPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 71<br />
UNDERTAKING WITH RESPECT TO THE BONDS EXCHANGEABLE FOR AVENTIS<br />
SHARESPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 74<br />
THE ISSUERPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 77<br />
Share Capital PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 77<br />
Capitalisation PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 77<br />
Business of the Issuer PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 78<br />
Management BoardPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 78<br />
Supervisory BoardPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 78<br />
Financial Year PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 78<br />
Auditors PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 78<br />
THE GUARANTOR PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 79<br />
Incorporation, <strong>Re</strong>gistered Seat, Duration and Corporate Purpose PPPPPPPPPPPPPPPPPPPPPPPP 79<br />
Share Capital PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 79<br />
Capitalisation PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 80<br />
The <strong>ERGO</strong> Group PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 80<br />
Business of the <strong>ERGO</strong> GroupPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 81<br />
Overview PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 81<br />
Business Segments PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 82<br />
Life Insurance PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 82<br />
Health Insurance PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 82<br />
Property and Casualty Insurance PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 83<br />
Legal Expenses InsurancePPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 83<br />
Financial Services PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 83<br />
Business <strong>Re</strong>gions PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 84<br />
Germany PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 84<br />
<strong>Re</strong>st of EuropePPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 84<br />
Major New Acquisitions PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 84<br />
Business Developments in First Half 2001 PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 85<br />
<strong>Re</strong>cent Business Developments and Outlook PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 85<br />
Management BoardPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 86<br />
Supervisory BoardPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 86<br />
Financial Year PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 87<br />
Auditors PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 87<br />
E.ON <strong>AG</strong> PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 88<br />
Incorporation, <strong>Re</strong>gistered Seat, Duration and Corporate Purpose PPPPPPPPPPPPPPPPPPPPPPPP 88<br />
Share Capital PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 88<br />
Business of E.ON PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 89<br />
Rights Attaching to Shares PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 89<br />
Transfer of Shares PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 89<br />
Annual General Meetings PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 89<br />
Voting RightsPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 89<br />
Dividend RightsPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 89<br />
Rights in Liquidation PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 89<br />
5<br />
Page
Financial Year PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 89<br />
Selected Financial Data PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 90<br />
Distribution of Net Income PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 91<br />
Share Price StatisticsPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 91<br />
Major <strong>Re</strong>cent Developments PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 92<br />
Additional Information PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 92<br />
AVENTIS S.A.PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 93<br />
Incorporation, <strong>Re</strong>gistered Seat, Duration and Corporate Purpose PPPPPPPPPPPPPPPPPPPPPPPP 93<br />
Share Capital PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 93<br />
Business of Aventis PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 93<br />
Rights Attaching to Shares PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 93<br />
Transfer of Shares PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 93<br />
Annual General Meetings PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 94<br />
Voting RightsPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 94<br />
Dividend RightsPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 94<br />
Rights in Liquidation PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 94<br />
Financial Year PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 94<br />
Selected Financial Data PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 95<br />
Distribution of Net Income PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 96<br />
Share Price StatisticsPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 97<br />
Additional Information PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 97<br />
REGULATION OF INSURANCE COMPANIES IN GERMANY PPPPPPPPPPPPPPPPPPPPPPPPP 98<br />
TAXATION PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 99<br />
Taxation in the Federal <strong>Re</strong>public of Germany PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 99<br />
German <strong>Re</strong>sidents PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 99<br />
Bonds PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 99<br />
Interest PaymentsPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 99<br />
Sale, <strong>Re</strong>demption, or Exchange of the Bonds PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 99<br />
Shares PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 100<br />
Dividend PaymentsPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 100<br />
Sale of Shares Acquired in Exchange of the Bonds PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 101<br />
German Non-<strong>Re</strong>sidents PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 101<br />
Bonds PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 101<br />
Income from the Bonds is Connected with Certain Activities in GermanyPPPPPPPPPPPPPPPPPP 101<br />
Income from the Bonds is not Connected with Certain Activities in Germany PPPPPPPPPPPPPP 101<br />
Shares PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 102<br />
Dividend PaymentsPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 102<br />
Sale of Shares Acquired in Exchange of the Bonds PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 102<br />
Inheritance or Gift Tax PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 102<br />
Other Taxes PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 102<br />
French Taxation PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 103<br />
Taxation of Dividends PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 103<br />
Taxation on Disposition of the Aventis Shares PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 103<br />
Estate and Gift Tax PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 104<br />
Taxation of German Investors PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 104<br />
Proposed EU Savings Tax Directive PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 105<br />
United States Federal Income Taxation PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 105<br />
Bonds Exchangeable for E.ON Shares and E.ON Shares PPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 105<br />
Bonds Exchangeable for E.ON SharesPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 106<br />
Interest on the Bonds Exchangeable for E.ON Shares PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 106<br />
Sale, Exchange, or other Disposition of the Bonds Exchangeable for E.ON Shares PPPPPPPPP 106<br />
E.ON Shares PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 107<br />
Dividends on the E.ON Shares PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 107<br />
Sale or other Disposition of the E.ON Shares PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 107<br />
Bonds Exchangeable for Aventis Shares and Aventis Shares PPPPPPPPPPPPPPPPPPPPPPPPPPP 108<br />
Bonds Exchangeable for Aventis Shares PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 108<br />
6
Interest on the Bonds Exchangeable for Aventis Shares PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 108<br />
Sale, Exchange, or other Disposition of the Bonds Exchangeable for Aventis Shares PPPPPPPP 109<br />
Aventis Shares PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 110<br />
Dividends on the Aventis SharesPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 110<br />
Sale or other Disposition of the Aventis Shares PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 111<br />
U.S. Information <strong>Re</strong>porting and Backup Withholding Rules PPPPPPPPPPPPPPPPPPPPPPPPPPPP 111<br />
SUBSCRIPTION AND SALE PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 112<br />
Underwriting Arrangements PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 112<br />
Selling <strong>Re</strong>strictions PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 112<br />
Federal <strong>Re</strong>public of Germany PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 112<br />
United States of America PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 112<br />
United Kingdom PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 113<br />
JapanPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 113<br />
The Netherlands PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 113<br />
General PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 113<br />
TRANSFER RESTRICTIONS PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 114<br />
GENERAL INFORMATION PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 115<br />
Authorisation PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 115<br />
Listing InformationPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 115<br />
Use of Proceeds PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 115<br />
Litigation PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 116<br />
Material Change PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 116<br />
Payment Procedures PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 116<br />
Withholding Taxes PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 116<br />
Clearance PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 116<br />
FINANCIAL P<strong>AG</strong>ES PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP F-1<br />
7
INCORPORATION BY REFERENCE<br />
The 1999 and 2000 Consolidated Annual <strong>Re</strong>ports of the Guarantor and its consolidated subsidiaries<br />
(the ``<strong>ERGO</strong> Group''), including the audited Management <strong>Re</strong>port and Consolidated Annual Accounts, the<br />
1999 and 2000 unconsolidated Annual <strong>Re</strong>ports, including the audited unconsolidated Annual Accounts,<br />
and the Consolidated Interim <strong>Re</strong>port for the six months ending June 30, 2001, including the unaudited<br />
Consolidated Interim Accounts, of the Guarantor and the 1999 and 2000 Annual <strong>Re</strong>ports, including the<br />
audited Annual Accounts, of the Issuer are incorporated by reference into this Information Memorandum.<br />
In addition, the 1998, 1999 and 2000 Annual <strong>Re</strong>ports and the Interim <strong>Re</strong>ports for the six months ending<br />
June 30, 2001 of E.ON and Aventis are incorporated by reference into this Information Memorandum.<br />
Copies of the above-mentioned reports and accounts and copies of all annual and, in the case of the<br />
Guarantor, E.ON and Aventis, quarterly, ®nancial reports and accounts published by the Issuer, the<br />
Guarantor, E.ON and Aventis in relation to subsequent years may be inspected and obtained without<br />
charge at the of®ces of Dexia Banque <strong>International</strong>e aÁ Luxembourg, 69, route d'Esch, L-1470 Luxembourg,<br />
as long as any Bonds are listed on the Luxembourg Stock Exchange and the rules of such stock exchange so<br />
require. The Issuer does not publish any interim ®nancial statements.<br />
The Consolidated Annual and Consolidated Interim <strong>Re</strong>ports of the Guarantor for the previous two<br />
®nancial years are also available on its website www.ergo.de. The unconsolidated Annual <strong>Re</strong>ports of the<br />
Guarantor for the previous two ®nancial years were published in the Federal Gazette of Germany<br />
(Bundesanzeiger).<br />
ENFORCEMENT OF CIVIL LIABILITIES<br />
Each of the Issuer and the Guarantor is a stock corporation organized under the laws of the Federal<br />
<strong>Re</strong>public of Germany. All of the members of their management boards are citizens of countries other than<br />
the United States, and all or a substantial portion of the assets of each company and of such persons are<br />
located outside the United States. As a result, it may not be possible to effect service of process within the<br />
United States upon any of the Issuer or the Guarantor, or upon the members of their management boards,<br />
or to enforce against them in the courts in the Federal <strong>Re</strong>public of Germany judgments obtained in U.S.<br />
courts based on the civil liability provisions of the U.S. securities laws. The enforcement in the Federal<br />
<strong>Re</strong>public of Germany of civil liabilities based solely upon U.S. securities laws in original actions or in<br />
actions for the enforcement of judgments of U.S. courts may encounter dif®culties. In addition, awards of<br />
punitive damages in actions brought in the United States or elsewhere are unenforceable in the Federal<br />
<strong>Re</strong>public of Germany.<br />
AVAILABLE INFORMATION<br />
The Issuer and the Guarantor have agreed that if, at any time during the term of the Bonds, they are<br />
not subject to the reporting requirements of Section 13 or 15(d) of the United States Exchange Act of 1934,<br />
as amended (the ``Exchange Act''), and they are not exempt from reporting requirements pursuant to Rule<br />
12g3-2(b) under the Exchange Act, they will make available upon request the information required to be<br />
delivered pursuant to Rule 144A(d)(4) under the Securities Act for delivery to any holder, bene®cial owner<br />
or prospective purchaser of any Bond sold in the United States pursuant to Rule 144A. This information<br />
will also be available at the of®ces of Dexia Banque <strong>International</strong>e aÁ Luxembourg, 69, route d'Esch, L-1470<br />
Luxembourg, as long as any Bonds are listed on the Luxembourg Stock Exchange.<br />
8
SUMMARY OF THE CONDITIONS OF ISSUE<br />
The following summary is quali®ed in its entirety by the more detailed information appearing in the<br />
``Conditions of Issue'' of the Bonds Exchangeable for E.ON Shares and the ``Conditions of Issue'' of the<br />
Bonds Exchangeable for Aventis Shares (each, the ``Conditions'') and certain terms used herein are de®ned<br />
in the Conditions.<br />
Issuer: <strong>ERGO</strong> <strong>International</strong> Aktiengesellschaft<br />
Guarantor: <strong>ERGO</strong> Versicherungsgruppe Aktiengesellschaft<br />
Description of the Bonds: The Issuer will issue two tranches of Bonds, the Bonds<br />
Denomination of the Bonds:<br />
Exchangeable for E.ON Shares and the Bonds Exchangeable for<br />
Aventis Shares. The Bonds Exchangeable for E.ON Shares will<br />
have an aggregate principal amount of e 345,000,000 and the<br />
Bonds Exchangeable for Aventis Shares will have an aggregate<br />
principal amount of e 345,000,000. Each tranche of Bonds is<br />
hereinafter referred to as an ``Issue''. Unless the context otherwise<br />
requires, any reference to ``Bonds'' means the Bonds of each Issue.<br />
The Bonds will be divided into bearer bonds in the principal<br />
amount of e 10,000 each which rank pari passu among themselves.<br />
Form of the Bonds: The Bonds will be represented by a permanent global certi®cate (the<br />
``Global Certi®cate'') payable to bearer without interest coupons.<br />
The Global Certi®cate will be deposited with Clearstream Banking<br />
<strong>AG</strong>, Frankfurt am Main (``Clearstream Frankfurt''). The Bonds<br />
will be transferable in accordance with the rules of Clearstream<br />
Frankfurt, and outside the Federal <strong>Re</strong>public of Germany, the rules<br />
of Clearstream Banking S.A., Luxembourg, and Euroclear S.A./<br />
N.V., Brussels, as operator of the Euroclear System. De®nitive<br />
certi®cates representing individual Bonds and interest coupons will<br />
not be issued.<br />
Maturity Date; Early <strong>Re</strong>demption: The Issuer will redeem the Bonds at 100% of their principal amount<br />
on September 14, 2006, to the extent they have not previously been<br />
redeemed or exchanged or purchased and cancelled. From and<br />
including September 28, 2004, the Issuer may redeem the Bonds, in<br />
whole or in part, at their principal amount plus interest accrued<br />
thereon, if the price of the shares for which the Bonds are<br />
exchangeable exceeds 130% of the Exchange Price during a<br />
speci®ed period. Any partial redemption of Bonds must (i) relate<br />
to Bonds of an Issue in an aggregate principal amount of at least<br />
e 100,000,000 and (ii) not reduce the aggregate principal amount of<br />
the Issue outstanding after such redemption to less than<br />
Interest:<br />
e 50,000,000.<br />
The Bonds Exchangeable for E.ON Shares will bear interest at the<br />
rate of 2.25% per annum on their principal amount from<br />
Payments:<br />
September 14, 2001 and the Bonds Exchangeable for Aventis<br />
Shares will bear interest at the rate of 0.75% per annum on their<br />
principal amount from September 14, 2001. Interest on the Bonds<br />
will be payable annually in arrears on September 14 of each year,<br />
commencing on September 14, 2002.<br />
Payments of principal of, and interest on, the Bonds will be made<br />
by the Issuer to the Principal Paying Agent for on-payment to<br />
Clearstream Frankfurt. All payments to the holders of the Bonds<br />
(the ``Bondholders'') in connection with the exchange of Bonds will<br />
be effected by transfer to such account as a Bondholder may specify<br />
in its exchange notice (an ``Exchange Notice'').<br />
9
Status and Negative Pledge of the<br />
Issuer:<br />
The Bonds will constitute unsecured and unsubordinated<br />
obligations of the Issuer and rank pari passu with all other<br />
present and future unsecured and unsubordinated obligations of<br />
the Issuer. Until such time as principal and interest, as well as any<br />
cash amounts payable under or in respect of the Bonds have been<br />
paid to the Paying Agents and all obligations to deliver shares or<br />
other property have been ful®lled, the Issuer will undertake, subject<br />
to certain exceptions, not to provide any security interest upon its<br />
assets for any present or future Capital Market Indebtedness,<br />
including any guarantee in respect thereof, unless the Bonds at the<br />
same time share pari passu and pro rata in such security or unless<br />
such other security, as shall have been approved by an independent<br />
accounting ®rm of recognised international standing as being<br />
equivalent security, has been made available to the Bondholders.<br />
``Capital Market Indebtedness'' means any present or future<br />
obligation for the repayment of borrowed money of the Issuer,<br />
the Guarantor or any third party, which is in the form of, or<br />
represented or evidenced by, bonds, notes or other securities with<br />
an original maturity of more than one year which are, or are<br />
capable of being quoted, listed, dealt in or traded on a stock<br />
exchange or other recognised securities market.<br />
Guarantees: The Guarantor will give its unconditional and irrevocable<br />
guarantee (with respect to each Issue, a ``Guarantee'', and<br />
together, the ``Guarantees'') for the due payment of principal of,<br />
and interest on, the Bonds and all other amounts, if any, payable by<br />
the Issuer under the Conditions and the delivery of the shares and<br />
any other property to be delivered under the Conditions. The<br />
Guarantees will constitute unsecured and unsubordinated<br />
obligations of the Guarantor and rank pari passu with all other<br />
present and future unsecured and unsubordinated obligations of<br />
the Guarantor.<br />
Negative Pledge of the Guarantor: The Guarantor will provide an undertaking concerning negative<br />
pledge that will be identical to the undertaking of the Issuer.<br />
Exchange Right: Subject to adjustment as provided in § 5 of the Conditions, each<br />
Bondholder will have the right (the ``Exchange Right'') to<br />
exchange, in the case of the Bonds Exchangeable for E.ON<br />
Shares, each Bond for 133.3333 shares of E.ON or, in the case of<br />
the Bonds Exchangeable for Aventis Shares, each Bond for<br />
101.5228 shares of Aventis (in each case, the ``Exchange Ratio'')<br />
during the Exchange Period by delivering to an Exchange Agent a<br />
duly completed Exchange Notice in accordance with the provisions<br />
of § 5 of the Conditions.<br />
Exchange Period: The Exchange Period will be the period commencing on and<br />
including January 1, 2002 and ending on and including September 1,<br />
2006.<br />
Exchange Price: The price at which shares will be delivered by the Issuer to a<br />
Bondholder upon exchange (in each case, the ``Exchange Price'')<br />
will be e 75.00 per share of E.ON, in the case of the Bonds<br />
Exchangeable for E.ON Shares, and e 98.50 per share of Aventis,<br />
in the case of the Bonds Exchangeable for Aventis Shares, each<br />
subject to adjustment as provided in § 5 of the Conditions.<br />
10
Calculation, Paying and Exchange<br />
Agents:<br />
Cash Payment in Lieu of Delivery of<br />
Shares:<br />
Fractions of shares will not be delivered on exchange but will be<br />
compensated in cash based on the applicable share price (calculated<br />
in accordance with § 3(3)(a) of the Conditions) on the date on<br />
which the Exchange Right has been validly exercised (the<br />
``Exchange Date'').<br />
The Issuer has appointed Morgan Stanley Bank <strong>AG</strong>, Frankfurt am<br />
Main, as principal paying agent (in such capacity, the ``Principal<br />
Paying Agent'') and principal exchange agent (in such capacity, the<br />
``Principal Exchange Agent'') and Dexia Banque <strong>International</strong>e aÁ<br />
Luxembourg, socieÂte anonyme, Luxembourg, as paying agent (in<br />
such capacity, the ``Luxembourg Paying Agent'', and together with<br />
the Principal Paying Agent, the ``Paying Agents'') and exchange<br />
agent (in such capacity, the ``Luxembourg Exchange Agent'' and,<br />
together with the Principal Exchange Agent, the ``Exchange<br />
Agents''). The Issuer has also appointed Dexia Banque<br />
<strong>International</strong>e aÁ Luxembourg, socieÂte anonyme as calculation<br />
agent for the purpose of calculating the number of shares, cash and/<br />
or other property to be delivered upon the exercise of the Exchange<br />
Right and making the adjustments and other determinations<br />
referred to in §§ 5 and 6 of the Conditions (in such capacity, the<br />
``Calculation Agent''). The Issuer may at any time, by giving not<br />
less than 30 days' notice by publication in accordance with § 11 of<br />
the Conditions, appoint another leading bank maintaining its head<br />
of®ce or a branch in Germany or Luxembourg, as Paying Agent,<br />
Exchange Agent or Calculation Agent provided that for as long as<br />
any of the Bonds are outstanding, there will always be a Paying<br />
Agent, an Exchange Agent and an agent performing the functions<br />
of the Calculation Agent in Luxembourg.<br />
The Issuer will be entitled upon the exercise of the Exchange Right<br />
by a Bondholder, in lieu of the delivery of shares, to pay to the<br />
Bondholder a cash amount (the ``Cash Payment''). The Cash<br />
Payment will be calculated with respect to the total number of<br />
shares (including fractions of shares) for which the Exchange Right<br />
has been exercised, such number of shares to be calculated in<br />
accordance with the provisions of § 5(5) of the Conditions. The<br />
Cash Payment related to a share will, subject to certain exceptions,<br />
be calculated as an amount equal to the arithmetic average of the<br />
applicable price of the shares on each of the ten Stock Exchange<br />
Trading Days after the Exchange Date.<br />
Substitution of the Issuer: The Guarantor will at any time be entitled, without the consent of<br />
the Bondholders, to substitute the Issuer either by itself or by<br />
another subsidiary in which the Guarantor holds at least 90% of the<br />
voting rights as principal debtor in respect of all obligations arising<br />
under and/or in connection with the Bonds, subject to the<br />
conditions and requirements set forth in § 10(1) of the Conditions.<br />
Notices: All notices regarding the Bonds will be published in the following<br />
journals: (a) a newspaper recognised by the rules of the<br />
Luxembourg Stock Exchange (which is expected to be the<br />
Luxemburger Wort), (b) a leading daily newspaper printed in the<br />
English language and of general circulation in London (which is<br />
expected to be the Financial Times), and (c) a leading daily<br />
newspaper printed in the German language and of general<br />
circulation in Germany (which is expected to be the BoÈrsen-<br />
11
Zeitung). Any notice will become effective for all purposes on the<br />
date of its publication in the newspaper recognised by the rules of<br />
the Luxembourg Stock Exchange.<br />
Governing Law and Jurisdiction: The Bonds and the Guarantees will be governed by and shall be<br />
construed in accordance with the laws of Germany. The District<br />
Court (Landgericht) in Frankfurt am Main will have jurisdiction<br />
for all proceedings arising out of or in connection with the Bonds.<br />
12
CONDITIONS OF ISSUE<br />
OF THE BONDS EXCHANGEABLE FOR E.ON SHARES<br />
ANLEIHEBEDINGUNGEN CONDITIONS OF ISSUE<br />
§1<br />
(StuÈckelung, Verbriefung und<br />
Girosammelverwahrung)<br />
(1) StuÈckelung. (1) Denomination.<br />
Die <strong>ERGO</strong> <strong>International</strong> Aktiengesellschaft,<br />
DuÈsseldorf (die ``Emittentin''), begibt eine 2,25%<br />
garantierte Umtauschanleihe im Gesamtnennbetrag<br />
von<br />
e 345.000.000 (in Worten: Euro dreihundertfuÈnfundvierzig<br />
Millionen)<br />
eingeteilt in 34.500 untereinander gleichrangige<br />
Teilschuldverschreibungen mit einem Nennbetrag<br />
von jeweils e 10.000 (die ``Teilschuldverschreibungen'').<br />
(2) Verbriefung. (2) Form.<br />
Die Teilschuldverschreibungen werden durch eine<br />
auf den Inhaber lautende Globalurkunde (die<br />
``Globalurkunde'') ohne Zinsscheine verbrieft.<br />
Effektive Urkunden uÈber einzelne Teilschuldverschreibungen<br />
und Zinsscheine werden nicht<br />
ausgegeben. Eine Kopie der Globalurkunde ist fuÈr<br />
die AnleiheglaÈubiger (jeweils ein ``AnleiheglaÈubiger'')<br />
bei den GeschaÈftsstellen der Zahlstellen<br />
(§ 13) kostenlos erhaÈltlich.<br />
§1<br />
(Denomination, Form and Clearing)<br />
<strong>ERGO</strong> <strong>International</strong> Aktiengesellschaft, DuÈsseldorf<br />
(the ``Issuer'') issues 2.25% guaranteed<br />
exchangeable bonds in the aggregate principal<br />
amount of<br />
e 345,000,000 (in words: Euro three hundred and<br />
forty-®ve million)<br />
divided into 34,500 bonds with a nominal amount<br />
of e 10,000 each which rank pari passu among<br />
themselves (the ``Bonds'').<br />
The Bonds are represented by a global certi®cate<br />
(the ``Global Certi®cate'') payable to bearer without<br />
interest coupons. De®nitive certi®cates representing<br />
individual Bonds and interest coupons shall not be<br />
issued. A copy of the Global Certi®cate is available<br />
to the holders of the bonds (each, a ``Bondholder'')<br />
free of charge at the of®ces of the Paying Agents<br />
(§ 13).<br />
(3) Girosammelverwahrung. (3) Custody and Clearing.<br />
Die Globalurkunde wird bis zur vollstaÈndigen<br />
ErfuÈllung saÈmtlicher Verp¯ichtungen der Emittentin<br />
aus den Teilschuldverschreibungen von der<br />
Clearstream Banking <strong>AG</strong>, Frankfurt am Main<br />
(``Clearstream Frankfurt''), verwahrt. Die Teilschuldverschreibungen<br />
sind durch entsprechende<br />
Depotbuchungen gemaÈû den jeweiligen Bestimmungen<br />
von Clearstream Frankfurt und, auûerhalb<br />
der Bundesrepublik Deutschland, Clearstream<br />
Banking S.A., Luxemburg (``Clearstream<br />
Luxemburg''), und Euroclear Bank S.A/N.V.,<br />
BruÈssel (``Euroclear''), uÈbertragbar.<br />
13<br />
The Global Certi®cate will be kept in custody with<br />
Clearstream Banking <strong>AG</strong>, Frankfurt am Main<br />
(``Clearstream Frankfurt''), until all obligations of<br />
the Issuer under the Bonds have been satis®ed. The<br />
Bonds shall be transferable by appropriate entries in<br />
securities accounts in accordance with applicable<br />
rules of Clearstream Frankfurt and, outside the<br />
Federal <strong>Re</strong>public of Germany, of Clearstream<br />
Banking S.A., Luxembourg (``Clearstream<br />
Luxembourg''), and Euroclear Bank S.A/N.V.,<br />
Brussels (``Euroclear'').
§ 2<br />
(Verzinsung)<br />
§ 2<br />
(Interest)<br />
(1) Zinssatz und Zinszahlungstage. (1) Interest Rate and Interest Payment Dates.<br />
Die Teilschuldverschreibungen werden vom<br />
14. September 2001 (der ``Ausgabetag'') an mit<br />
einem Zinssatz von 2,25% p.a. auf den Nennbetrag<br />
verzinst. Die Zinsen sind jaÈhrlich nachtraÈglich<br />
jeweils am 14. September eines jeden Jahres zu<br />
zahlen (jeweils ein ``Zinszahlungstag''), beginnend<br />
am 14. September 2002. Der letzte Zinszahlungstag<br />
ist der 14. September 2006 (sofern nicht<br />
die Teilschuldverschreibungen zu einem fruÈheren<br />
Zeitpunkt zuruÈckgezahlt oder um-getauscht<br />
werden). Der Zinslauf endet mit Beginn des Tages,<br />
an dem die Teilschuldverschreibungen zur<br />
RuÈckzahlung faÈllig werden, oder, bei AusuÈbung des<br />
Umtauschrechts (§ 5(1)(a)), mit Beginn des dem<br />
Umtauschtag (§ 5(2)(a)) unmittelbar vorangehenden<br />
Zinszahlungstages bzw. des Ausgabetages, sofern es<br />
bis dahin keinen Zinszahlungstag gegeben hat.<br />
(2) Verzug. (2) Late Payment.<br />
Sofern die Emittentin Teilschuldverschreibungen<br />
bei FaÈlligkeit nicht gemaÈû § 3 tilgt, werden die zu<br />
tilgenden Teilschuldverschreibungen ± ausgenommen<br />
im Falle des § 4(2) ± vom FaÈlligkeitstag bis zum<br />
Tag der tatsaÈchlichen RuÈckzahlung weiterhin mit<br />
einem Zinssatz von 2,25% p.a. auf ihren<br />
Nennbetrag verzinst.<br />
(3) Zinstagequotient. (3) Accrued Interest.<br />
Zinsen, die fuÈr einen Zeitraum von weniger als<br />
einem Jahr zu berechnen sind, werden auf der<br />
Grundlage der tatsaÈchlich verstrichenen Tage,<br />
dividiert durch 365 bzw. 366 (tatsaÈchliche Anzahl<br />
der Tage im jeweiligen Zinsjahr), berechnet.<br />
§ 3<br />
(FaÈlligkeit, Vorzeitige RuÈckzahlung)<br />
(1) FaÈlligkeit. (1) Maturity.<br />
Die Teilschuldverschreibungen sind am<br />
14. September 2006 zum Nennbetrag<br />
zuruÈckzuzahlen, sofern sie nicht vorher<br />
zuruÈckgezahlt, umgetauscht oder gemaÈû § 3(2)<br />
gekauft und entwertet werden.<br />
(2) RuÈckerwerb. (2) <strong>Re</strong>purchase.<br />
Die Emittentin, die Garantin (§ 8) oder ein mit<br />
ihnen verbundenes Unternehmen ist jederzeit<br />
berechtigt, Teilschuldverschreibungen im Markt<br />
oder auf andere Weise zu erwerben. Auf diese<br />
14<br />
The Bonds shall bear interest on their principal<br />
amount at the rate of 2.25% per annum from<br />
September 14, 2001 (the ``Issue Date''). Interest<br />
shall be payable annually in arrears on September<br />
14 of each year (each, an ``Interest Payment Date''),<br />
commencing on September 14, 2002. The last<br />
Interest Payment Date shall be September 14,<br />
2006 (unless the Bonds are previously redeemed or<br />
exchanged). Interest shall cease to accrue as of the<br />
beginning of the day on which the Bonds become<br />
due for redemption, or, when the Exchange Right<br />
(§ 5(1)(a)) shall have been exercised, as of the<br />
beginning of the Interest Payment Date immediately<br />
preceding the Exchange Date (§ 5(2)(a)), or, if there<br />
was no Interest Payment Date, the Issue Date.<br />
Should the Issuer fail to redeem Bonds when due<br />
pursuant to § 3, interest shall, except in the case<br />
referred to in § 4(2), continue to accrue on the<br />
principal amount of the Bonds to be redeemed from<br />
such due date until the date of actual redemption of<br />
the Bonds at the rate of 2.25% per annum.<br />
If interest is to be calculated for a period of less than<br />
a full year, such interest shall be calculated on the<br />
basis of the actual number of days elapsed, divided<br />
by 365 or 366 (actual number of days in the<br />
respective annual interest period).<br />
§ 3<br />
(Maturity, Early <strong>Re</strong>demption)<br />
The Bonds shall be redeemed at their principal<br />
amount on September 14, 2006, unless previously<br />
redeemed, exchanged, or purchased in accordance<br />
with §3 (2) and cancelled.<br />
The Issuer, the Guarantor (§ 8) or any of their<br />
af®liates may at any time purchase Bonds in the<br />
open market or otherwise. Bonds so repurchased<br />
may be held, cancelled or resold.
Weise ruÈckerworbene Teilschuldverschreibungen<br />
koÈnnen gehalten, entwertet oder weiterverkauft<br />
werden.<br />
(3) Vorzeitige RuÈckzahlung. (3) Early <strong>Re</strong>demption.<br />
(a) Die Emittentin ist berechtigt, die Teilschuldverschreibungen<br />
insgesamt oder teilweise<br />
durch Bekanntmachung gemaÈû § 11 mit einer<br />
Frist von mindestens 30 und hoÈchstens 60<br />
Tagen zum Nennbetrag zuzuÈglich aufgelaufener<br />
Zinsen zuruÈckzuzahlen, wenn der Kurs<br />
der Aktien (§ 5(1)(a)) in der XETRA-<br />
Notierung (wie nachstehend de®niert)<br />
(zuzuÈglich gemaÈû § 6 zahlbarer BarbetraÈge<br />
und dem Wert von gemaÈû § 6 zu liefernder<br />
VermoÈgenswerte und zuzuÈglich dem Wert von<br />
gemaÈû § 5(6) zu liefernder Aktien) an mehr als<br />
20 Handelstagen (jeweils ein ``BoÈrsentag'') an<br />
der Frankfurter WertpapierboÈrse (die ``FWB'')<br />
innerhalb eines Zeitraums von 30<br />
aufeinanderfolgenden BoÈrsentagen, der am<br />
fuÈnften BoÈrsentag vor einer solchen<br />
Bekanntmachung endet, 130% des zu diesem<br />
Zeitpunkt guÈltigen Umtauschwertes (§ 5(1)(b))<br />
uÈbersteigt; eine teilweise RuÈckzahlung der<br />
Teilschuldverschreibungen ist jedoch nur<br />
zulaÈssig, sofern (i) diese sich auf Teilschuldverschreibungen<br />
in einem Gesamtnennbetrag<br />
von mindestens e 100.000.000 bezieht<br />
und (ii) den Gesamtnennbetrag der nach dieser<br />
RuÈckzahlung ausstehenden Teilschuldverschreibungen<br />
nicht auf weniger als<br />
e 50.000.000 verringert. Die Bekanntmachung<br />
der vorzeitigen RuÈckzahlung der<br />
Teilschuldverschreibungen ist unwiderru¯ich.<br />
Der in der Bekanntmachung als<br />
RuÈckzahlungstag angegebene Tag darf nicht<br />
vor dem 28. September 2004 liegen. FaÈllt der<br />
RuÈckzahlungstag in einen NichtausuÈbungszeitraum<br />
(§ 5(4)) oder in einen Zeitraum von<br />
10 Tagen nach dem Ende eines<br />
NichtausuÈbungs-zeitraums, so verschiebt sich<br />
der RuÈck-zahlungstag auf den zehnten<br />
Bankarbeitstag (§ 4(2)) nach dem Ende dieses<br />
Nichtaus-uÈbungszeitraums. Die<br />
Bekanntmachung hat den RuÈckzahlungstag<br />
sowie die UmstaÈnde zu bezeichnen, aufgrund<br />
derer die Emittentin zur RuÈckzahlung der<br />
Teilschuldverschreibungen berechtigt ist. Im<br />
Falle einer teilweisen RuÈckzahlung werden die<br />
zuruÈckzuzahlenden Teilschuldverschreibungen<br />
anteilsmaÈûig bestimmt oder, soweit dies nicht<br />
moÈglich ist, per Zufallsauswahl durch<br />
Clearstream Frankfurt gemaÈû dem von<br />
Clearstream Frankfurt fuÈr diesen Zweck<br />
festgesetzten Verfahren ermittelt.<br />
15<br />
(a) The Issuer may, on giving no less than 30 and<br />
no more than 60 days' notice in accordance<br />
with § 11, redeem the Bonds, in whole or in<br />
part, at their principal amount plus interest<br />
accrued thereon, if the price of the Shares<br />
(§ 5(1)(a)) in the XETRA-Quotation (as<br />
de®ned below) (plus any cash amounts<br />
payable, and the value of any property<br />
deliverable, pursuant to § 6 and plus the<br />
value of any shares deliverable pursuant to<br />
§ 5(6)) exceeds on more than 20 trading days<br />
(each, a ``Stock Exchange Trading Day'') on<br />
the Frankfurt Stock Exchange (the ``FSE'')<br />
during a period of 30 consecutive Stock<br />
Exchange Trading Days ending on the ®fth<br />
Stock Exchange Trading Day preceding such<br />
notice 130% of the then-applicable Exchange<br />
Price (§ 5(1)(b)); provided, however, that any<br />
partial redemption of Bonds shall (i) relate to<br />
Bonds with an aggregate principal amount of<br />
at least e 100,000,000 and (ii) not reduce the<br />
aggregate principal amount of the Bonds<br />
outstanding after such redemption to less<br />
than e 50,000,000. Such notice of early<br />
redemption shall be irrevocable. The date<br />
speci®ed in such notice as date of redemption<br />
shall not fall earlier than on September 28,<br />
2004. If the date of redemption falls within an<br />
Excluded Period (§ 5(4)) or the ten days<br />
following the end of an Excluded Period, the<br />
date of redemption will be postponed to the<br />
tenth Business Day (§ 4(2)) following the end of<br />
such Excluded Period. Such notice shall state<br />
the date of redemption and the facts which<br />
establish the right of the Issuer so to redeem<br />
the Bonds. In the case of a partial redemption,<br />
the Bonds to be redeemed will be selected on a<br />
pro rata basis or, where this is not possible, by<br />
random selection by Clearstream Frankfurt in<br />
accordance with the procedures established by<br />
Clearstream Frankfurt for such purpose.
``XETRA-Notierung'' an einem Tag ist der Kurs in<br />
der XETRA-Mittagsauktion derjenigen Aktien, die<br />
zum Zeitpunkt der Kursfeststellung uneingeschraÈnkt<br />
dividendenberechtigt sind, oder, falls kein<br />
derartiger Kurs festgestellt wird, der Einheitskurs<br />
an der FWB, oder, falls kein Einheitskurs<br />
festgestellt wird, der letzte veroÈffentlichte<br />
BoÈrsenkurs fuÈr die Aktien an der FWB an diesem<br />
Tag, oder, falls kein BoÈrsenkurs veroÈffentlicht wird,<br />
das Mittel der letzten Brief- und Geldkurse. Falls<br />
die Aktien nicht an der FWB notiert sind oder<br />
Brief- und Geldkurse nicht verfuÈgbar sind, sind die<br />
entsprechenden Notierungen oder Kurse an der<br />
wichtigsten WertpapierboÈrse zu verwenden, an der<br />
die Aktien gehandelt werden. Falls die Aktien nicht<br />
anderweitig zum BoÈrsenhandel zugelassen sind,<br />
bestimmt die Berechnungsstelle (§ 13) die XETRA-<br />
Notierung auf der Grundlage anderer Notierungen<br />
oder Informationen, die sie fuÈr maûgeblich haÈlt.<br />
(b) Die Emittentin ist berechtigt, die<br />
Teilschuldverschreibungen mittels Bekanntmachung<br />
gemaÈû § 11 mit einer Frist von<br />
mindestens 30 und hoÈchstens 60 Tagen<br />
insgesamt zum Nennbetrag zuzuÈglich<br />
aufgelaufener Zinsen zuruÈckzuzahlen, wenn<br />
der Gesamtnennbetrag der am Tag der<br />
Bekanntmachung ausstehenden Teilschuldverschreibungen<br />
10% oder weniger des Gesamtnennbetrags<br />
der urspruÈnglich ausgegebenen<br />
Teilschuldverschreibungen entspricht.<br />
§ 4<br />
(Zahlungen)<br />
``XETRA-Quotation'' on any day means the<br />
quotation in XETRA in the midday auction of the<br />
shares entitled at the time of ®xing of the quotation<br />
to full dividend rights, or, in the case that no such<br />
quotation is reported, the of®cial quotation<br />
(Einheitskurs) on the FSE or, in the case that no<br />
of®cial quotation is reported, the last reported per<br />
share sale price on such day of the shares on the<br />
FSE or, if no sale price is reported, the average of<br />
the last bid and ask prices. If the shares are not<br />
listed on the FSE, or no bid and ask prices are<br />
available, the respective quotations or prices on the<br />
principal securities exchange on which the shares<br />
are listed shall be used. In the absence of such<br />
listing, the Calculation Agent (§ 13) shall determine<br />
the XETRA-Quotation on the basis of such<br />
quotations or other information as it considers<br />
appropriate.<br />
(b) The Issuer may, on giving no less than 30 and<br />
no more than 60 days' notice in accordance<br />
with § 11, redeem the Bonds in whole at their<br />
principal amount together with interest<br />
accrued thereon, if the aggregate principal<br />
amount of the Bonds outstanding on the date<br />
the notice is given is equal to or less than 10%<br />
of the aggregate principal amount of the Bonds<br />
that were initially issued.<br />
§ 4<br />
(Payments)<br />
(1) Zahlungen von Kapital und Zinsen. (1) Payments of Principal and Interest.<br />
Zahlungen von Kapital und Zinsen auf die<br />
Teilschuldverschreibungen sind in Euro am<br />
entsprechenden Zahlungstag (§ 4(3)) an Clearstream<br />
Frankfurt oder entsprechend deren Anweisung zu<br />
leisten. SaÈmtliche Zahlungen, die an Clearstream<br />
Frankfurt oder entsprechend deren Anweisung<br />
geleistet werden, befreien die Emittentin von ihren<br />
Verbindlichkeiten aus den Teilschuldverschreibungen<br />
in HoÈhe der geleisteten Zahlungen.<br />
(2) Bankarbeitstage. (2) Business Days.<br />
FaÈllt ein FaÈlligkeitstag fuÈr Zahlungen von Kapital<br />
oder Zinsen auf die Teilschuldverschreibungen auf<br />
einen Tag, an dem Clearstream Frankfurt und die<br />
Banken in Frankfurt am Main nicht fuÈr den<br />
GeschaÈftsverkehr geoÈffnet sind und keine<br />
Zahlungen in Euro abwickeln (jeweils ein<br />
16<br />
Payments of principal of, and interest on, the Bonds<br />
shall be made in Euro on the relevant Payment Date<br />
(§ 4(3)) to, or to the order of, Clearstream<br />
Frankfurt. All payments made to Clearstream<br />
Frankfurt or to its order shall discharge the<br />
liability of the Issuer under the Bonds to the<br />
extent of the sums so paid.<br />
If any due date for payment of principal of, or<br />
interest on, the Bonds is not a day on which<br />
Clearstream Frankfurt and banks in Frankfurt am<br />
Main are open for business and settle payments in<br />
Euro (each, a ``Business Day''), such payment will<br />
not be made until the next following Business Day,
``Bankarbeitstag''), erfolgt die betreffende Zahlung<br />
erst am naÈchstfolgenden Bankarbeitstag, ohne daû<br />
im Hinblick auf die Verschiebung der Zahlung<br />
zusaÈtzliche Zinsen oder sonstige BetraÈge geschuldet<br />
werden.<br />
(3) Zahlungstag. (3) Payment Date.<br />
Im Sinne dieser Anleihebedingungen ist ein<br />
``Zahlungstag'' ein Tag, an dem, gegebenenfalls<br />
aufgrund einer Verschiebung gemaÈû § 4(2), eine<br />
Zahlung zu leisten ist.<br />
(4) Hinterlegung bei Gericht. (4) Depositing in Court.<br />
Die Emittentin kann BetraÈge an Kapital und Zinsen<br />
sowie alle anderen gegebenenfalls auf die<br />
Teilschuldverschreibungen zu zahlenden BetraÈge,<br />
deren Zahlung von den AnleiheglaÈubigern nicht<br />
innerhalb von zwoÈlf Monaten nach deren FaÈlligkeit<br />
geltend gemacht worden ist, beim Amtsgericht in<br />
Frankfurt am Main hinterlegen. Soweit die<br />
Emittentin auf das <strong>Re</strong>cht zur RuÈcknahme der<br />
hinterlegten BetraÈge verzichtet, erloÈschen die<br />
betreffenden AnspruÈche der AnleiheglaÈubiger<br />
gegen die Emittentin.<br />
§ 5<br />
(Umtauschrecht)<br />
(1) Umtauschrecht, Umtauschfrist und<br />
Umtauschwert.<br />
(a) Jeder AnleiheglaÈubiger hat waÈhrend der<br />
nachstehend bezeichneten Umtauschfrist,<br />
vorbehaltlich der ErfuÈllung der Bestimmungen<br />
dieses § 5, jederzeit das <strong>Re</strong>cht (das<br />
``Umtauschrecht''), seine Teilschuldverschreibungen<br />
gegen voll eingezahlte und mit voller<br />
Dividendenberechtigung ausgestattete auf den<br />
Inhaber lautende Stammaktien ohne Nennwert<br />
(die ``Aktien'') der E.ON <strong>AG</strong> (die<br />
``Gesellschaft'') in fuÈr die ErfuÈllung von<br />
GeschaÈften an der FWB lieferbarer Form<br />
umzutauschen. Nach AusuÈbung des<br />
Umtauschrechts gemaÈû § 5(2)(a) erlischt das<br />
<strong>Re</strong>cht eines AnleiheglaÈubigers auf RuÈckzahlung<br />
der Teilschuldverschreibungen im Hinblick auf<br />
diejenigen Teilschuldverschreibungen, fuÈr<br />
welche das Umtauschrecht ausgeuÈbt worden<br />
ist, und wird durch das <strong>Re</strong>cht auf Lieferung der<br />
Aktien gemaÈû § 5 ersetzt. Die ``Umtauschfrist''<br />
ist der Zeitraum vom 1. Januar 2002 bis zum<br />
1. September 2006 (jeweils einschlieûlich).<br />
Wenn jedoch Teilschuldverschreibungen vor<br />
dem 1. September 2006 gemaÈû § 3(3) zur<br />
RuÈckzahlung gekuÈndigt werden, endet die<br />
17<br />
and no further interest or other amount shall be<br />
owed in respect of the delay in such payment.<br />
For the purposes of these Conditions of Issue,<br />
``Payment Date'' means any day on which a<br />
payment is to be made, where applicable as<br />
adjusted in accordance with § 4(2).<br />
The Issuer may deposit with the lower court<br />
(Amtsgericht) in Frankfurt am Main amounts of<br />
principal, interest and all other amounts due under<br />
the Bonds, if any, not claimed by Bondholders<br />
within twelve months after the date on which such<br />
amounts have become due. To the extent that the<br />
Issuer waives its right to withdraw such deposit, the<br />
relevant claim of the Bondholders against the Issuer<br />
shall cease.<br />
§ 5<br />
(Exchange Right)<br />
(1) Exchange Right, Exchange Period and<br />
Exchange Price.<br />
(a) At any time during the Exchange Period<br />
referred to below and subject to compliance<br />
with the provisions of this § 5, each<br />
Bondholder has the right (the ``Exchange<br />
Right'') to exchange its Bonds for fully paidin<br />
ordinary bearer shares with no par value and<br />
full dividend entitlement (the ``Shares'') of<br />
E.ON <strong>AG</strong> (the ``Company'') in a form that<br />
enables good delivery for settlement of<br />
transactions on the FSE. Upon exercise of<br />
the Exchange Right in accordance with<br />
§ 5(2)(a), the Bondholder's right to have the<br />
Bonds redeemed shall cease with respect to<br />
those Bonds for which the Exchange Right has<br />
been exercised and shall be replaced by the<br />
right to demand delivery of Shares as provided<br />
for in this § 5. The ``Exchange Period'' shall be<br />
the period from and including January 1, 2002<br />
to and including September 1, 2006, provided<br />
that, if the Bonds have been called for<br />
redemption pursuant to § 3(3) prior to<br />
September 1, 2006, the Exchange Period with<br />
respect to the Bonds that are subject to<br />
redemption shall expire at the end of the ®fth
Umtauschfrist fuÈr die der RuÈckzahlung<br />
unterliegenden Teilschuldverschreibungen mit<br />
Ablauf des fuÈnften Bankarbeitstages vor dem<br />
Tag der RuÈckzahlung, es sei denn, die<br />
Emittentin verletzt ihre P¯icht zur<br />
RuÈckzahlung dieser Teilschuldverschreibungen<br />
bei FaÈlligkeit gemaÈû § 3.<br />
(b) Der Gegenwert, zu dem die Aktien von der<br />
Emittentin an die AnleiheglaÈubiger bei<br />
AusuÈbung des Umtauschrechts geliefert<br />
werden (der ``Umtauschwert''), betraÈgt<br />
e 75,00 je Aktie. Der Umtauschwert kann<br />
auf die in § 5(3) geregelte Art und Weise<br />
angepasst werden. Die Anzahl der bei<br />
Umtausch einer Teilschuldverschreibung zu<br />
liefernden Aktien ergibt sich durch Teilung<br />
des Nennbetrags jeder Teilschuldverschreibung<br />
durch den am Umtauschtag<br />
(§ 5(2)(a)) geltenden Umtauschwert. Das<br />
Ergebnis dieser Teilung ist auf die vierte<br />
Dezimalstelle zu runden, wobei 0,00005<br />
aufgerundet werden, so daû, vorbehaltlich<br />
einer Anpassung des Umtauschwertes, fuÈr<br />
jede Teilschuldverschreibung 133,3333 Aktien<br />
geliefert werden. Wenn ein AnleiheglaÈubiger<br />
das Umtauschrecht gleichzeitig hinsichtlich<br />
mehrerer Teilschuldverschreibungen ausuÈbt,<br />
errechnet sich die Anzahl der zu liefernden<br />
Aktien auf der Basis des Gesamtnennbetrags<br />
dieser Teilschuldverschreibungen.<br />
(c) Das Umtauschrecht kann von einem<br />
AnleiheglaÈubiger nicht mehr ausgeuÈbt<br />
werden, wenn bei einer Zahlstelle (§ 13) in<br />
bezug auf die von diesem AnleiheglaÈubiger<br />
gehaltenen Teilschuldverschreibungen eine<br />
Benachrichtigung zum Zwecke der<br />
KuÈndigung gemaÈû § 9(2) eingegangen ist.<br />
Business Day preceding the date of redemption<br />
unless the Issuer fails to redeem such Bonds<br />
when due pursuant to § 3.<br />
(b) The price at which Shares will be delivered by<br />
the Issuer to Bondholders upon exercise of the<br />
Exchange Right (the ``Exchange Price'') will be<br />
e 75.00 per Share. The Exchange Price may be<br />
subject to adjustments in the manner provided<br />
in § 5(3). The number of Shares to be delivered<br />
upon exchange of a Bond will be determined<br />
by dividing the principal amount of each Bond<br />
by the Exchange Price applicable on the<br />
Exchange Date (§ 5(2)(a)). The result of such<br />
division shall be rounded to the fourth decimal<br />
place, with 0.00005 being rounded upwards; so<br />
that, subject to any adjustments to the<br />
Exchange Price, 133.3333 Shares will be<br />
delivered for each Bond. If more than one<br />
Bond is exchanged at any one time by the same<br />
Bondholder, the number of Shares to be<br />
delivered will be calculated on the basis of<br />
the aggregate principal amount of such Bonds.<br />
(c) The Exchange Right may no longer be<br />
exercised by a Bondholder following the<br />
receipt by a Paying Agent (§ 13) of a notice<br />
in accordance with § 9(2) declaring the Bonds<br />
held by such Bondholder due.<br />
(2) Umtauschverfahren. (2) Procedure for Exchange.<br />
(a) Zur AusuÈbung des Umtauschrechts muû jeder<br />
AnleiheglaÈubiger waÈhrend der Umtauschfrist<br />
(i) auf eigene Kosten waÈhrend der uÈblichen<br />
GeschaÈftszeiten bei einer Umtauschstelle (§ 13)<br />
eine ordnungsgemaÈû ausgefuÈllte und<br />
unterzeichnete UmtauscherklaÈrung (die<br />
``UmtauscherklaÈrung''), die bei den<br />
GeschaÈftsstellen der Umtauschstellen<br />
erhaÈltlich ist, einreichen und (ii) die<br />
umzutauschenden Teilschuldverschreibungen<br />
auf das Konto einer Umtauschstelle (oder auf<br />
das von einer Umtauschstelle auf dem<br />
Formular der UmtauscherklaÈrung angegebene<br />
Konto) bei Clearstream Luxemburg oder<br />
18<br />
(a) In order to exercise the Exchange Right, each<br />
Bondholder must, during the Exchange Period,<br />
(i) deliver at its own expense during normal<br />
business hours to an Exchange Agent (§ 13) a<br />
notice of exchange (the ``Exchange Notice'')<br />
duly completed and signed on a form available<br />
at the of®ces of the Exchange Agents and (ii)<br />
transfer the Bonds to be exchanged to the<br />
account of an Exchange Agent (or to the<br />
account designated by an Exchange Agent on<br />
the form of the Exchange Notice) with<br />
Clearstream Luxembourg or Clearstream<br />
Frankfurt. The Exchange Notice shall be<br />
irrevocable. Any Exchange Right shall have
Clearstream Frankfurt uÈbertragen. Die<br />
UmtauscherklaÈrung ist unwiderru¯ich. Ein<br />
Umtauschrecht ist an dem Tag (der<br />
``Umtauschtag'') wirksam ausgeuÈbt, an dem<br />
beide unter § 5(2)(a) (i) und (ii) aufgefuÈhrten<br />
Voraussetzungen erfuÈllt sind; in diesem<br />
Zusammenhang gilt, daû (x) eine AusuÈbung<br />
des Umtauschrechts nicht wirksam ist, sofern<br />
die UmtauscherklaÈrung einer Umtauschstelle<br />
waÈhrend eines NichtausuÈbungszeitraums<br />
(§ 5(4)) zugeht und (y), sofern der Tag, an<br />
dem die in § 5(2)(a) (i) und (ii) aufgefuÈhrten<br />
Voraussetzungen erfuÈllt sind, kein BoÈrsentag<br />
ist, der auf diesen Tag unmittelbar folgende<br />
BoÈrsentag der Umtauschtag ist.<br />
(b) Eine Lieferung von Bruchteilen von Aktien, die<br />
infolge der AusuÈbung des Umtauschrechts<br />
entstuÈnden, ist ausgeschlossen. Soweit die<br />
AusuÈbung des Umtauschrechts im Hinblick<br />
auf eine oder mehrere Teilschuldverschreibung(en)<br />
zu Bruchteilen von Aktien<br />
fuÈhren wuÈrde, leistet die Emittentin anstelle der<br />
Lieferung dieser Bruchteile eine Zahlung in<br />
Euro, deren HoÈhe auf der Grundlage der<br />
XETRA-Notierung am Umtauschtag<br />
ermittelt wird. Eine solche Zahlung erfolgt<br />
durch UÈ berweisung auf das von dem<br />
betreffenden AnleiheglaÈubiger in der<br />
UmtauscherklaÈrung angegebene Konto. Sollte<br />
sich die an einen AnleiheglaÈubiger zu leistende<br />
Zahlung insgesamt auf weniger als e 10<br />
belaufen, ist die Emittentin nicht verp¯ichtet,<br />
diese Zahlung zu leisten.<br />
(c) Bei AusuÈbung des Umtauschrechts wird die<br />
Emittentin so bald wie moÈglich, jedoch<br />
keinesfalls spaÈter als sieben Bankarbeitstage<br />
nach dem Umtauschtag, die Aktien uÈber<br />
Clearstream Frankfurt, Clearstream<br />
Luxemburg oder Euroclear entsprechend den<br />
Angaben des AnleiheglaÈubigers in der<br />
UmtauscherklaÈrung an den AnleiheglaÈubiger<br />
liefern und etwaige gemaÈû § 5(2)(b)<br />
erforderliche Zahlungen leisten. Die<br />
Emittentin ist zur Lieferung von Aktien und<br />
Leistung von Zahlungen an einen<br />
AnleiheglaÈubiger, der das Umtauschrecht<br />
ausgeuÈbt hat, nur verp¯ichtet, sofern der<br />
betreffende AnleiheglaÈubiger etwaige Steuern<br />
und sonstige Abgaben, die im Zusammenhang<br />
mit der AusuÈbung des Umtauschrechts, der<br />
Lieferung von Aktien oder einer Zahlung<br />
durch die Emittentin gemaÈû diesem § 5<br />
erhoben werden, gezahlt hat.<br />
19<br />
been validly exercised on the date (the<br />
``Exchange Date'') on which both conditions<br />
set forth in (i) and (ii) of this § 5(2)(a) shall<br />
have been ful®lled, provided that (x) the<br />
Exchange Right shall not have been validly<br />
exercised if the receipt of the Exchange Notice<br />
by an Exchange Agent falls within an Excluded<br />
Period (§ 5(4)) and (y), if the day on which the<br />
conditions set forth in (i) and (ii) of this<br />
§ 5(2)(a) shall have been ful®lled is not a Stock<br />
Exchange Trading Day, the Exchange Date<br />
shall be the Stock Exchange Trading Day<br />
immediately following such day.<br />
(b) No fractions of Shares shall be delivered upon<br />
exercise of the Exchange Right. To the extent<br />
that any exercise of the Exchange Right with<br />
respect to one or more Bonds would result in<br />
fractions of Shares, the Issuer shall make, in<br />
lieu of delivery of such fractions of Shares, a<br />
cash payment in Euro based on the XETRA-<br />
Quotation on the Exchange Date. Any such<br />
payment shall be made by transfer to such<br />
account as the relevant Bondholder may<br />
specify in the Exchange Notice. If the<br />
aggregate cash payment otherwise to be made<br />
to a Bondholder would amount to less than<br />
e 10, the Issuer shall be under no obligation to<br />
make any such payment.<br />
(c) Upon exercise of an Exchange Right, the<br />
Issuer shall, as soon as practicable, but in any<br />
event no later than seven Business Days after<br />
the Exchange Date, deliver the Shares to the<br />
Bondholder through Clearstream Frankfurt,<br />
Clearstream Luxembourg or Euroclear, as<br />
speci®ed in the Bondholder's Exchange<br />
Notice, and make any cash payment required<br />
under § 5(2)(b). The Issuer's obligation to<br />
deliver Shares and to make any cash payment<br />
to any Bondholder who has exercised the<br />
Exchange Right is subject to the condition<br />
that such Bondholder shall have paid any taxes<br />
and other duties which are imposed in<br />
connection with the exercise of the Exchange<br />
Right, the delivery of Shares or any cash<br />
payment by the Issuer under this § 5.
(3) Anpassung des Umtauschwertes. (3) Adjustments to the Exchange Price.<br />
(a) Falls die Gesellschaft vor dem 14. September<br />
2006 oder einem fruÈheren RuÈckzahlungstag<br />
(i) unter GewaÈhrung eines unmittelbaren<br />
oder mittelbaren Bezugsrechts an ihre<br />
AktionaÈre ihr Grundkapital durch die<br />
Ausgabe neuer Aktien gegen Einlagen<br />
erhoÈht (``KapitalerhoÈhung gegen<br />
Einlagen''), oder<br />
(ii) ihr Grundkapital aus Gewinn- oder<br />
KapitalruÈcklagen erhoÈht (``KapitalerhoÈhung<br />
aus RuÈcklagen''), oder<br />
(iii) ihren AktionaÈren unmittelbar oder<br />
mittelbar ein <strong>Re</strong>cht zum Bezug von<br />
Schuldverschreibungen oder sonstigen<br />
Wertpapieren mit oder ohne <strong>Re</strong>cht zum<br />
Bezug von Aktien einraÈumt (sofern es sich<br />
dabei nicht um oben unter (i) und (ii)<br />
beschriebene Bezugsrechte handelt)<br />
(``GewaÈhrung von Bezugsrechten''),<br />
wird der Umtauschwert nach Maûgabe der<br />
AbsaÈtze § 5(3)(b) bis (d) angepaût; in den oben<br />
genannten FaÈllen (i) bis (iii) erfolgt jedoch<br />
keine Anpassung, sofern die KapitalerhoÈhung<br />
bzw. GewaÈhrung von <strong>Re</strong>chten im<br />
Zusammenhang mit einem Aktienoptionsprogramm<br />
oder sonstigen Aktienerwerbsprogramm<br />
fuÈr die GeschaÈftsfuÈhrung oder fuÈr<br />
Arbeitnehmer der Gesellschaft und/oder ihrer<br />
verbundenen Unternehmen erfolgt.<br />
(b) Im Falle einer KapitalerhoÈhung gegen<br />
Einlagen wird der Umtauschwert mit dem<br />
Wert multipliziert, der durch Anwendung der<br />
nachstehenden Formel berechnet wird; eine<br />
Anpassung des Umtauschwertes unterbleibt<br />
jedoch, sofern der Umtauschwert sich infolge<br />
der Anwendung dieser Formel erhoÈhen wuÈrde:<br />
No E + D E + D<br />
6 1 ± +<br />
Nn { CPo } CPo<br />
wobei folgendes gilt: where:<br />
``No'' ist die Anzahl der Aktien vor der<br />
KapitalerhoÈhung gegen Einlagen,<br />
20<br />
(a) In the event that prior to September 14, 2006<br />
or any earlier date of redemption, the<br />
Company<br />
(i) by granting its shareholders direct or<br />
indirect subscription rights, increases its<br />
share capital through the issuance of new<br />
shares against contributions (``Increase of<br />
Share Capital Against Contributions''), or<br />
(ii) increases its share capital out of retained<br />
earnings or capital reserves (``Increase of<br />
Share Capital out of <strong>Re</strong>serves''), or<br />
(iii) grants its shareholders, directly or<br />
indirectly, rights to subscribe bonds or<br />
other securities with or without rights to<br />
subscribe shares (except for subscription<br />
rights described under (i) and (ii) above)<br />
(``Granting of Subscription Rights''),<br />
the Exchange Price shall be adjusted in<br />
accordance with § 5(3)(b) through (d),<br />
provided that in the cases (i) through (iii)<br />
above, no adjustment shall be made if the<br />
increase of share capital or granting of rights,<br />
respectively, is made in connection with any<br />
stock option programme or otherstock<br />
ownership programme for the management or<br />
employees of the Company and/or any of its<br />
af®liates.<br />
(b) In the event of an Increase of Share Capital<br />
Against Contributions, the Exchange Price<br />
shall be multiplied by the ®gure calculated by<br />
applying the following formula, provided that<br />
the Exchange Price shall not be adjusted if the<br />
Exchange Price would be increased by applying<br />
this formula:<br />
No E + D E + D<br />
6 1 ± +<br />
Nn { CPo } CPo<br />
``No'' is the number of Shares before the<br />
Increase of Share Capital Against<br />
Contributions,
``Nn'' ist die Anzahl der Aktien nach<br />
DurchfuÈhrung der KapitalerhoÈhung gegen<br />
Einlagen,<br />
``Nn'' is the number of Shares after the<br />
Increase of Share Capital Against<br />
Contributions,<br />
``E'' ist der Ausgabepreis der neuen Aktien, ``E'' is the issue price of the new shares,<br />
``D'' ist der (nicht abgezinste)<br />
Dividendennachteil der neuen Aktien, wie er<br />
von Eurex 1 Deutschland (``Eurex 1 '')<br />
festgestellt wird; sofern dieser bis zum<br />
Stichtag (§ 5(3)(k)) nicht von Eurex 1<br />
ermittelt worden ist (weil Optionen auf die<br />
Aktien an der Eurex 1 nicht gehandelt werden<br />
oder aus sonstigen GruÈnden), wird die<br />
Berechnungsstelle (§ 13) den entsprechenden<br />
Wert mit Hilfe eines international anerkannten<br />
unabhaÈngigen SachverstaÈndigen bestimmen,<br />
und<br />
``CPo'' ist der Kurs der Aktie in der XETRA-<br />
Notierung oder, falls ein solcher Kurs nicht<br />
verfuÈgbar ist, der von der Eurex 1 fuÈr die<br />
Anpassung von Optionen auf die Aktien<br />
bestimmte Kurs, jeweils an dem BoÈrsentag,<br />
der dem Stichtag (§ 5(3)(k)) unmittelbar<br />
vorangeht.<br />
(c) Im Falle einer KapitalerhoÈhung aus RuÈcklagen<br />
wird der Umtauschwert mit dem Wert<br />
multipliziert, der durch Anwendung der<br />
nachstehenden Formel berechnet wird:<br />
No<br />
Nn<br />
``No'' und ``Nn'' haben dieselbe Bedeutung wie<br />
in § 5(3)(b).<br />
(d) Im Falle der GewaÈhrung von Bezugsrechten<br />
wird der Umtauschwert mit dem Wert<br />
multipliziert, der durch Anwendung der<br />
nachstehenden Formel berechnet wird:<br />
CPo ± VSR<br />
CPo<br />
``D'' is the disadvantage (not discounted) for<br />
dividends to which the new shares are not<br />
entitled, as determined by Eurex 1<br />
Deutschland (``Eurex 1 '') or, if not so<br />
determined until the <strong>Re</strong>cord Date (§ 5(3)(k))<br />
(because options on the Shares are not traded<br />
on Eurex 1 or for any other reason), as<br />
determined by the Calculation Agent (§ 13)<br />
with the assistance of an independent expert of<br />
recognized international standing, and<br />
``CPo'' is the price of the Shares in the<br />
XETRA-Quotation or, if such price is not<br />
available, the price determined by Eurex 1 for<br />
the purpose of adjustment of options on the<br />
Shares, in each case on the Stock Exchange<br />
Trading Day immediately prior to the <strong>Re</strong>cord<br />
Date (§ 5(3)(k)).<br />
(c) In the event of an Increase of Share Capital out<br />
of <strong>Re</strong>serves, the Exchange Price shall be<br />
multiplied by the ®gure calculated by<br />
applying the following formula:<br />
No<br />
Nn<br />
``No'' and ``Nn'' shall have the same meanings<br />
as in 5(3)(b).<br />
(d) In the event of a Granting of Subscription<br />
Rights, the Exchange Price shall be multiplied<br />
by the ®gure calculated by applying the<br />
following formula:<br />
CPo ± VSR<br />
CPo<br />
wobei folgendes gilt: where:<br />
``CPo'' ist der Kurs der Aktie in der XETRA-<br />
Notierung am Bezugsstichtag (wie nachstehend<br />
de®niert);<br />
21<br />
``CPo'' is the price of the Shares in the<br />
XETRA-Quotation on the Subscription<br />
<strong>Re</strong>cord Date (as de®ned below);
``VSR'' (Wert des Bezugsrechts) bedeutet je<br />
Aktie:<br />
(i) der von der Eurex 1 auf der Grundlage<br />
der Marktlage am letzten BoÈrsentag vor<br />
Beginn des Bezugsrechtshandels<br />
festgestellte Wert des <strong>Re</strong>chts zum Bezug<br />
der betreffenden Wertpapiere, oder<br />
(ii) falls ein solcher Wert von der Eurex 1<br />
nicht bekanntgegeben wird (weil<br />
Optionen auf die Aktien an der Eurex 1<br />
nicht gehandelt werden oder aus sonstigen<br />
GruÈnden), der Schluûkurs dieses<br />
<strong>Re</strong>chts am Stichtag (§ 5(3)(k)), oder<br />
(iii) falls ein solcher Kurs nicht verfuÈgbar ist,<br />
der von der Berechnungsstelle unter<br />
Heranziehung eines international<br />
anerkannten unabhaÈngigen SachverstaÈndigen,<br />
wenn moÈglich unter<br />
BeruÈcksichtigung der am Stichtag<br />
herrschenden Marktlage, bestimmte<br />
Wert des Bezugsrechts; und<br />
``Bezugsstichtag'' ist der dem ersten BoÈrsentag,<br />
an dem die Aktien an der FWB ``ex<br />
Bezugsrecht'' notiert werden, unmittelbar<br />
vorangehende BoÈrsentag.<br />
(e) Falls sich die Anzahl der Aktien veraÈndert,<br />
ohne daû sich gleichzeitig die HoÈhe des<br />
Grundkapitals aÈndert, gilt § 5(3)(c) sinngemaÈû.<br />
(f) Falls die Gesellschaft vor dem 14. September<br />
2006 oder einem fruÈheren RuÈckzahlungstag<br />
ihren AktionaÈren Schuldverschreibungen,<br />
Optionsscheine, Wandlungsrechte oder andere<br />
VermoÈgensgegenstaÈnde ausschuÈttet, zuteilt<br />
oder gewaÈhrt (auûer den in § 5(3)(a)<br />
genannten FaÈllen, einer Auûerordentlichen<br />
Dividende (§ 5(3)(g)) und einer Abspaltung<br />
(§ 5(3)(h))) (eine ``AusschuÈttung''), wird der<br />
Umtauschwert mit dem Wert multipliziert,<br />
der durch Anwendung der nachstehenden<br />
Formel berechnet wird:<br />
CPo ± VD<br />
CPo<br />
22<br />
``VSR'' (value of the subscription rights)<br />
means, on a per share basis:<br />
(i) the value of the right to subscribe the<br />
relevant securities, as determined by<br />
Eurex 1 on the basis of the market<br />
conditions prevailing on the Stock<br />
Exchange Trading Day before the<br />
subscription rights commence to be<br />
traded, or<br />
(ii) if such value is not published by Eurex 1 ,<br />
(because options on the Shares are not<br />
traded on Eurex 1 or for any other<br />
reason), the closing price of such right<br />
on the <strong>Re</strong>cord Date (§ 5(3)(k)), or<br />
(iii) in case such price is not available, the<br />
value of the subscription right, as<br />
determined by the Calculation Agent,<br />
with the assistance of an independent<br />
expert of recognized international<br />
standing, if possible taking into account<br />
the market conditions prevailing on the<br />
<strong>Re</strong>cord Date; and<br />
``Subscription <strong>Re</strong>cord Date'' is the Stock<br />
Exchange Trading Day immediately<br />
preceding the ®rst Stock Exchange Trading<br />
Day on which the Shares are traded on the<br />
FSE ``ex-subscription right''.<br />
(e) In the event that the number of Shares is<br />
changed without a change in the amount of the<br />
share capital, § 5(3)(c) shall apply mutatis<br />
mutandis.<br />
(f) In the event that prior to September 14, 2006<br />
or any earlier date of redemption, the<br />
Company distributes, allots or grants to its<br />
shareholders debt securities, warrants,<br />
conversion rights or other assets (excluding<br />
the events referred to in § 5(3)(a), an<br />
Extraordinary Dividend (§ 5(3)(g)) and a<br />
Spin-off Event (§ 5(3)(h))) (a ``Distribution''),<br />
the Exchange Price shall be multiplied by the<br />
®gure calculated by applying the following<br />
formula:<br />
CPo ± VD<br />
CPo
wobei folgendes gilt: where:<br />
``CPo'' ist der Kurs der Aktien in der XETRA-<br />
Notierung am AusschuÈttungsstichtag (wie<br />
nachstehend de®niert);<br />
``VD'' (Wert der AusschuÈttung) bedeutet den<br />
von der Berechnungsstelle mit Hilfe eines<br />
international anerkannten unabhaÈngigen<br />
SachverstaÈndigen je Aktie ermittelten<br />
angemessenen Marktwert der<br />
AusschuÈttung am AusschuÈttungsstichtag (wie<br />
nachstehend de®niert); und<br />
``AusschuÈttungsstichtag'' ist (i) der dem ersten<br />
BoÈrsentag, an dem die Aktien an der FWB<br />
unter Ausschluss (``ex'') des <strong>Re</strong>chts notiert<br />
werden, das die AktionaÈre zu der<br />
AusschuÈttung berechtigt, unmittelbar<br />
vorausgehende BoÈrsentag, oder, falls (i) nicht<br />
anwendbar ist, (ii) der Zeitpunkt und das<br />
Datum fuÈr die Bestimmung der AktionaÈre,<br />
die berechtigt sind, die AusschuÈttung zu<br />
erhalten.<br />
(g) Falls die Gesellschaft vor dem 14. September<br />
2006 oder einem fruÈheren RuÈckzahlungstag<br />
waÈhrend eines GeschaÈftsjahres einen<br />
Gesamtbetrag an Dividenden auf ihre Aktien<br />
ausschuÈttet, der berechnet auf der Grundlage<br />
des arithmetischen Mittels der Kurse der<br />
Aktien in den XETRA-Notierungen an jedem<br />
BoÈrsentag waÈhrend des GeschaÈftsjahres, das<br />
einer solchen Dividende oder solchen Dividenden<br />
vorangeht, zu einem Dividendenertrag<br />
je Aktie (ausgedruÈckt als Prozentsatz fuÈhrt, der<br />
die Summe von 3% zuzuÈglich des<br />
Durchschnittlichen Dividendenertrags (wie<br />
nachstehend de®niert) uÈbersteigt (dieser<br />
Dividendenertrag wird einschlieûlich der 3%<br />
nachfolgend als eine ``Auûerordentliche<br />
Dividende'' oder ``EDY'' bezeichnet), wird der<br />
Umtauschwert mit dem Wert multipliziert, der<br />
durch Anwendung der nachstehenden Formel<br />
berechnet wird:<br />
1 ± EDY + ADY 1 ± EDY + ADY<br />
wobei folgendes gilt: where:<br />
``ADY'' bzw. ``Durchschnittlicher Dividendenertrag''<br />
bedeutet den durchschnittlichen<br />
Dividendenertrag (ausgedruÈckt als<br />
23<br />
``CPo'' is the price of the Shares in the<br />
XETRA-Quotation on the Distribution<br />
<strong>Re</strong>cord Date (as de®ned below);<br />
``VD'' (value of the distribution) means the fair<br />
market value of the Distribution on the<br />
Distribution <strong>Re</strong>cord Date (as de®ned below)<br />
as determined by the Calculation Agent with<br />
the assistance of an independent expert of<br />
recognized international standing, calculated<br />
on a per share basis; and<br />
``Distribution <strong>Re</strong>cord Date'' is (i) the Stock<br />
Exchange Trading Day immediately preceding<br />
the ®rst Stock Exchange Trading Day on<br />
which the Shares are traded on the FSE ``ex''<br />
the right entitling a shareholder to receive the<br />
Distribution or, if (i) is inapplicable, (ii) the<br />
time and date for the determination of the<br />
shareholders entitled to receive the<br />
Distribution.<br />
(g) In the event that prior to September 14, 2006<br />
or any earlier date of redemption, the<br />
Company distributes to its shareholders with<br />
respect to any of its ®scal years an aggregate<br />
amount of dividends on its Shares which, on a<br />
per share basis and calculated on the basis of<br />
the arithmetic average of the price of the<br />
Shares in the XETRA-Quotations on each<br />
Stock Exchange Trading Day during the ®scal<br />
year preceding such dividend or dividends, will<br />
result in a dividend yield (in %) that exceeds<br />
the sum of 3% plus the Average Dividend<br />
Yield (as de®ned below) (such dividend yield,<br />
including the 3%, an ``Extraordinary Dividend''<br />
or ``EDY''), the Exchange Price shall be<br />
multiplied by the ®gure calculated by<br />
applying the following formula:<br />
``ADY'' or ``Average Dividend Yield'' is the<br />
average of the dividend yields (in %, without<br />
taking into account any corporate tax credit
Prozentsatz, ohne BeruÈcksichtigung eines<br />
etwaigen in einer Dividende enthaltenen<br />
KoÈrperschaftsteuerguthabens und ohne<br />
BeruÈcksichtigung einer Dividende oder von<br />
Dividenden (oder Teilen davon), die<br />
Auûerordentliche Dividenden waren) jedes<br />
der letzten fuÈnf GeschaÈftsjahre, die dem<br />
GeschaÈftsjahr vorangingen, welches vor der<br />
AusschuÈttung oder den AusschuÈttungen lag,<br />
die zur Anwendung dieses § 5(3)(g) fuÈhren<br />
(dieser Dividendenertrag wird fuÈr jedes dieser<br />
fuÈnf GeschaÈftsjahre auf der Grundlage des<br />
arithmetischen Mittels der Kurse der Aktien in<br />
den XETRA-Notierungen an jedem BoÈrsentag<br />
waÈhrend des GeschaÈftsjahres, im Hinblick auf<br />
welches die Dividende oder Dividenden<br />
ausgeschuÈttet wurden, berechnet (soweit<br />
erforderlich, ist diese Berechnung unter<br />
Heranziehung der Aktienkurse und<br />
Dividenden der vormaligen VEBA <strong>AG</strong>, bevor<br />
diese in E.ON <strong>AG</strong> um®rmiert hat,<br />
durchzufuÈhren)); und<br />
``Dividendenstichtag'' ist der dem ersten<br />
BoÈrsentag, an dem die Aktien an der FWB<br />
``ex Dividende'' notiert werden, unmittelbar<br />
vorangehende BoÈrsentag.<br />
(h) Falls die Gesellschaft ihren AktionaÈren einen<br />
Anteil am Kapital verbriefende Wertpapiere<br />
eines anderen Emittenten als der Gesellschaft<br />
(die ``Abspaltungs-Wertpapiere'') gewaÈhrt oder<br />
gewaÈhren laÈût (eine ``Abspaltung''), wird die<br />
Emittentin mit Hilfe eines international<br />
anerkannten unabhaÈngigen SachverstaÈndigen<br />
eine der folgenden MoÈglichkeiten waÈhlen:<br />
(i) wenn die Abspaltungs-Wertpapiere an<br />
einer anerkannten BoÈrse oÈffentlich<br />
gehandelt werden, umfasst jede Aktie<br />
anschlieûend die Anzahl von<br />
Abspaltungs-Wertpapieren, zu deren<br />
Erhalt ein AnleiheglaÈubiger berechtigt<br />
gewesen waÈre, wenn er das<br />
Umtauschrecht unmittelbar vor dem<br />
AusschuÈttungsstichtag dieser Abspaltung<br />
ausgeuÈbt haÈtte;<br />
(ii) der Umtauschwert wird durch<br />
Anwendung der Formel gemaÈû § 5(3)(f)<br />
angepaût;<br />
(iii) innerhalb von fuÈnf BoÈrsentagen nach dem<br />
``ex'' Tag dieser Abspaltung liefert die<br />
Emittentin jedem AnleiheglaÈubiger die<br />
24<br />
inherent in any dividend and without taking<br />
into account any dividend or dividends (or<br />
portion thereof) that constituted<br />
Extraordinary Dividends) of each of the last<br />
®ve ®scal years which preceded the ®scal year<br />
preceding the distribution or distributions<br />
giving rise to the application of this § 5(3)(g)<br />
(such dividend yield calculated for each of<br />
those ®ve ®scal years on the basis of the<br />
arithmetic average of the price of the Shares in<br />
the XETRA-Quotations on each Stock<br />
Exchange Trading Day during the ®scal year<br />
in respect of which the dividend or dividends<br />
were distributed (to the extent necessary, such<br />
calculation to be made using the share price<br />
and dividends of the former VEBA <strong>AG</strong> prior<br />
to its name change to E.ON <strong>AG</strong>)); and<br />
``Dividend <strong>Re</strong>cord Date'' is the Stock Exchange<br />
Trading Day immediately preceding the ®rst<br />
Stock Exchange Trading Day on which the<br />
Shares are traded on the FSE ``ex-dividend''.<br />
(h) If the Company distributes, or causes to be<br />
distributed, to its shareholders (a ``Spin-off<br />
Event'') equity securities of an issuer other than<br />
the Company (the ``Spin-off Securities''), then<br />
the Issuer shall, with the assistance of an<br />
independent expert of recognized international<br />
standing, select one of the following options:<br />
(i) if the Spin-off Securities are publicly<br />
traded on a recognized exchange, each<br />
Share shall thereafter comprise the<br />
number of Spin-off Securities that a<br />
Bondholder would have been entitled to<br />
receive had the Bondholder exercised the<br />
Exchange Right immediately prior to the<br />
Distribution <strong>Re</strong>cord Date of such Spinoff<br />
Event;<br />
(ii) the Exchange Price shall be adjusted by<br />
applying the formula set forth in § 5(3)(f);<br />
(iii) within ®ve Stock Exchange Trading Days<br />
after the ``ex'' date of such Spin-off Event,<br />
the Issuer shall deliver to each
Anzahl von Abspaltungs-Wertpapieren,<br />
zu deren Erhalt ein AnleiheglaÈubiger<br />
berechtigt gewesen waÈre, wenn er das<br />
Umtauschrecht unmittelbar vor dem<br />
AusschuÈttungsstichtag dieser Abspaltung<br />
ausgeuÈbt haÈtte; oder<br />
(iv) innerhalb von fuÈnf BoÈrsentagen nach dem<br />
``ex'' Tag dieser Abspaltung zahlt die<br />
Emittentin jedem AnleiheglaÈubiger einen<br />
Barbetrag, der sich aus (x) der Anzahl der<br />
Abspaltungs-Wertpapiere, zu deren<br />
Erhalt ein AnleiheglaÈubiger berechtigt<br />
gewesen waÈre, wenn er das<br />
Umtauschrecht unmittelbar vor dem<br />
AusschuÈttungsstichtag dieser Abspaltung<br />
ausgeuÈbt haÈtte, multipliziert mit (y) dem<br />
von der Berechnungsstelle mit Hilfe eines<br />
international anerkannten unabhaÈngigen<br />
SachverstaÈndigen am letzten BoÈrsentag<br />
vor dem AusschuÈttungsstichtag dieser<br />
Abspaltung bestimmten angemessenen<br />
Marktwert der Abspaltungs-Wertpapiere<br />
je Aktie ergibt.<br />
(i) Falls die Gesellschaft oder ein Dritter vor dem<br />
14. September 2006 oder einem fruÈheren<br />
RuÈckzahlungstag eine nicht in diesem § 5(3)<br />
genannte Maûnahme in bezug auf das Kapital<br />
oder die VermoÈgensgegenstaÈnde der<br />
Gesellschaft ergreift und diese Maûnahme<br />
nach Auffassung der Berechnungsstelle einen<br />
erheblichen nachteiligen Ein¯uû auf die<br />
Interessen der AnleiheglaÈubiger hat, wird die<br />
Berechnungsstelle den Umtauschwert nach<br />
billigem Ermessen (§ 317 BGB) anpassen oder<br />
in diesem Zusammenhang andere<br />
Anpassungen mit dem Ziel vornehmen,<br />
denjenigen Wert der Teilschuldverschreibungen<br />
zu erhalten, den sie vermutlich<br />
haÈtten, wenn das die Anpassung erfordernde<br />
Ereignis nicht eingetreten waÈre.<br />
(j) Anpassungen nach Maûgabe der vorstehenden<br />
Bestimmungen sind von der Berechnungsstelle<br />
vorzunehmen und gemaÈû § 11<br />
bekanntzumachen. Der nach Maûgabe der<br />
vorstehenden Bestimmungen berechnete<br />
Umtauschwert wird auf die vierte<br />
Dezimalstelle gerundet, wobei 0,00005<br />
aufgerundet werden. Die Berechnungsstelle ist<br />
berechtigt, nach vernuÈnftigem Ermessen und<br />
nach vorheriger Abstimmung mit der<br />
25<br />
Bondholder the number of Spin-off<br />
Securities that a Bondholder would have<br />
been entitled to receive had the<br />
Bondholder exercised the Exchange<br />
Right immediately prior to the<br />
Distribution <strong>Re</strong>cord Date of such Spinoff<br />
Event; or<br />
(iv) within ®ve Stock Exchange Trading Days<br />
after the ``ex'' date of such Spin-off Event,<br />
the Issuer shall pay to each Bondholder a<br />
cash amount calculated by multiplying (x)<br />
the number of Spin-off Securities that a<br />
Bondholder would have been entitled to<br />
receive had the Bondholder exercised the<br />
Exchange Right immediately prior to the<br />
Distribution <strong>Re</strong>cord Date of such Spinoff<br />
Event by (y) the fair market value of<br />
the Spin-off Securities on a per-share<br />
basis, as determined by the Calculation<br />
Agent with the assistance of an<br />
independent expert of recognized<br />
international standing, on the last Stock<br />
Exchange Trading Day prior to the<br />
Distribution <strong>Re</strong>cord Date of such Spinoff<br />
Event.<br />
(i) If the Company or a third party adopts a<br />
measure not contemplated in this § 5(3) in<br />
relation to the capital or assets of the Company<br />
at any time prior to September 14, 2006 or any<br />
earlier date of redemption which has, in the<br />
opinion of the Calculation Agent, a signi®cant<br />
adverse impact on the position of the<br />
Bondholders, the Calculation Agent shall<br />
adjust the Exchange Price in its own<br />
reasonable discretion (§ 317 of the German<br />
Civil Code) or make other adjustments in this<br />
connection with the aim to maintain the value<br />
of the Bonds, which they would presumably<br />
have in the absence of the event leading to such<br />
adjustment.<br />
(j) Adjustments in accordance with the foregoing<br />
clauses shall be calculated by the Calculation<br />
Agent and published in accordance with § 11.<br />
The Exchange Price determined in accordance<br />
with the preceding provisions shall be rounded<br />
to the fourth decimal place, with 0.00005 being<br />
rounded upwards. The Calculation Agent may<br />
in its reasonable discretion and after prior<br />
consultation with the Issuer, obtain, and rely<br />
on, the advice of any lawyers or other
Emittentin den Rat von AnwaÈlten oder<br />
anderen international anerkannten unabhaÈngigen<br />
SachverstaÈndigen (z.B. einer<br />
Investmentbank) einzuholen und dementsprechend<br />
zu handeln. Die Berechnungsstelle<br />
haftet gegenuÈber der Emittentin, der<br />
Garantin (§ 8) oder den AnleiheglaÈubigern<br />
nicht, soweit sie in gutem Glauben<br />
Maûnahmen im Vertrauen auf eine solche<br />
Beratung durchgefuÈhrt oder unterlassen und<br />
dabei mit der Sorgfalt eines ordentlichen<br />
Kaufmanns gehandelt hat.<br />
(k) Anpassungen gemaÈû § 5(3)(b) bis (d) und (f) bis<br />
(h) werden mit Beginn des ersten BoÈrsentages<br />
wirksam, an dem die Aktien an der FWB ``ex<br />
Bezugsrecht'', ``ex Dividende'', ``ex<br />
Gratisaktien'' oder ``ex'' anderer <strong>Re</strong>chte<br />
gehandelt werden (``Stichtag''). Anpassungen<br />
gemaÈû Absatz § 5(3)(e) werden mit Beginn des<br />
ersten BoÈrsentages wirksam, an dem die Aktien<br />
unter BeruÈcksichtigung der geaÈnderten<br />
Aktienzahl notiert werden. Anpassungen<br />
gemaÈû § 5(3)(i) werden mit Beginn des Tages<br />
wirksam, der von der Berechnungsstelle gemaÈû<br />
§ 5(3)(i) als Wirksamkeitstag bestimmt wird.<br />
(l) Falls Anpassungen des Umtauschwertes<br />
aufgrund mehrerer der in den vorstehenden<br />
AbsaÈtzen § 5(3)(a) bis (i) genannten FaÈllen<br />
erforderlich werden und der Wirksamkeitstag<br />
fuÈr derartige Anpassungen (§ 5(3)(k)) auf<br />
denselben Tag faÈllt, sind die Anpassungen in<br />
folgender <strong>Re</strong>ihenfolge vorzunehmen: zuerst<br />
gemaÈû § 5(3)(a), danach gemaÈû § 5(3)(b),<br />
danach gemaÈû § 5(3)(c), danach gemaÈû<br />
§ 5(3)(d), danach gemaÈû § 5(3)(e), danach<br />
gemaÈû § 5(3)(f), danach gemaÈû § 5(3)(g),<br />
danach gemaÈû § 5(3)(h) und zuletzt gemaÈû<br />
§ 5(3)(i).<br />
(4) NichtausuÈbungszeitraum. (4) Excluded Period.<br />
Die AusuÈbung des Umtauschrechts ist<br />
ausgeschlossen im Falle eines OÈ ffentlichen<br />
UÈ bernahmeangebots (§ 6(3)) waÈhrend eines<br />
Zeitraums (ein ``NichtausuÈbungszeitraum'')<br />
beginnend an dem fuÈnften Bankarbeitstag vor dem<br />
Annahmetag (§ 6(1)) bis (i) zu dem Tag, an dem die<br />
Aktien, die Gegenstand des OÈ ffentlichen<br />
UÈ bernahmeangebots waren, durch die Emittentin,<br />
die Garantin (§ 8) bzw. eines ihrer verbundenen<br />
Unternehmen, welches Aktien haÈlt, wirksam an den<br />
26<br />
independent experts of recognized<br />
international standing (e.g., of an investment<br />
bank). The Calculation Agent shall not be<br />
liable vis-a-vis the Issuer, the Guarantor (§ 8)<br />
or any Bondholder in respect of any action<br />
taken or failed to be taken by it in reliance on<br />
such advice in good faith and in the exercise of<br />
the due care of a proper merchant.<br />
(k) Adjustments in accordance with § 5(3)(b)<br />
through (d) and (f) through (h) shall become<br />
effective as of the beginning of the ®rst Stock<br />
Exchange Trading Day on which the Shares<br />
are traded on the FSE ``ex-subscription<br />
rights'', ``ex-dividend'', ``ex-bonus shares'' or<br />
``ex'' any other right (``<strong>Re</strong>cord Date'').<br />
Adjustments in accordance with § 5(3)(e) shall<br />
become effective as of the beginning of the ®rst<br />
Stock Exchange Trading Day on which prices<br />
are quoted taking account of such change of<br />
the number of Shares. Adjustments in<br />
accordance with § 5(3)(i) shall become<br />
effective as of the beginning of the date<br />
determined as the effective date by the<br />
Calculation Agent pursuant to § 5(3)(i).<br />
(l) If adjustments of the Exchange Price are<br />
required under more than one of § 5(3)(a)<br />
through (i), and the effective date for such<br />
adjustments (§ 5(3)(k)) falls on the same date,<br />
such adjustments shall be made by applying,<br />
®rst, the provisions of § 5(3)(a), second, the<br />
provisions of § 5(3)(b), third, the provisions of<br />
§ 5(3)(c), fourth, the provisions of § 5(3)(d),<br />
®fth, the provisions of § 5(3)(e), sixth, the<br />
provisions of § 5(3)(f), seventh, the provisions<br />
of § 5(3)(g), eighth, the provisions of § 5(3)(h),<br />
and ®nally the provisions of § 5(3)(i).<br />
The exercise of the Exchange Right shall be<br />
excluded in the case of a Public Offer (§ 6(3))<br />
during a period (an ``Excluded Period'') between the<br />
date that falls ®ve Business Days prior to the<br />
Acceptance Date (§ 6(1)) and the later of (i) the date<br />
on which the Shares that were subject to the Public<br />
Offer are validly transferred by the Issuer, the<br />
Guarantor (§ 8) or any af®liate holding Shares, as<br />
the case may be, to the offeror and (ii) the date on<br />
which the Issuer publishes pursuant to § 6(1)(i) that
Anbieter uÈbertragen worden sind bzw. (ii) zu dem<br />
Tag, an dem die Emittentin gemaÈû § 6(1)(i)<br />
bekanntgibt, daû die Emittentin, die Garantin<br />
bzw. das betreffende verbundene Unternehmen<br />
das OÈ ffentliche UÈ bernahmeangebot nicht<br />
angenommen hat oder daû das OÈ ffentliche<br />
UÈ bernahmeangebot nicht erfolgreich war, je<br />
nachdem, welches Ereignis spaÈter eintritt, mit der<br />
EinschraÈnkung, daû die AusuÈbung des<br />
Umtauschrechts nicht waÈhrend der letzten fuÈnf<br />
Bankarbeitstage der Umtauschfrist ausgeschlossen<br />
ist.<br />
the Issuer, the Guarantor or such af®liate, as the<br />
case may be, has not accepted the Public Offer or<br />
that the Public Offer was unsuccessful, provided<br />
that the exercise of the Exchange Right shall not be<br />
excluded during the last ®ve Business Days of the<br />
Exchange Period.<br />
(5) Barzahlung anstelle der Lieferung von Aktien. (5) Cash Payment in lieu of Delivery of Shares<br />
Die Emittentin ist jederzeit berechtigt, nach<br />
vorheriger Bekanntmachung gemaÈû § 11<br />
gegenuÈber der Umtauschstelle und den<br />
AnleiheglaÈubigern mit einer Frist von sieben<br />
Bankarbeitstagen statt Lieferung der in § 5(1)(b)<br />
bestimmten Anzahl von Aktien (vorbehaltlich einer<br />
Anpassung des Umtauschwertes) oder eines Teils<br />
davon die Zahlung eines Barbetrags in Euro zu<br />
waÈhlen, sofern der infolge der wirksamen AusuÈbung<br />
des Umtauschrechts durch die jeweiligen<br />
AnleiheglaÈubiger maûgebliche Umtauschtag auf<br />
oder nach den Tag faÈllt, der in der<br />
Bekanntmachung als Wirksamkeitstag fuÈr die<br />
AusuÈbung des Wahlrechts bestimmt ist, und der<br />
vor dem Wirksamkeitstag eines Widerrufs oder<br />
einer AÈ nderung der AusuÈbung des Wahlrechts<br />
(wie nachstehend geregelt) liegt. Der auf jede<br />
Aktie zu zahlende Barbetrag errechnet sich auf der<br />
Grundlage des arithmetischen Mittels der Kurse der<br />
Aktien in den XETRA-Notierungen an den zehn<br />
dem Umtauschtag folgenden BoÈrsentagen; der<br />
Betrag ist zusaÈtzlich zu allen anderen etwaigen<br />
BarbetraÈgen zu zahlen, welche die Emittentin den<br />
AnleiheglaÈubigern nach einer wirksamen AusuÈbung<br />
des Umtauschrechts schuldet. Die Zahlung dieser<br />
BetraÈge ist so bald wie moÈglich nach Ablauf des<br />
zehnten, auf den Umtauschtag folgenden<br />
BoÈrsentages, in keinem Fall spaÈter als sieben<br />
Bankarbeitstage nach diesem BoÈrsentag, auf das in<br />
der UmtauscherklaÈrung angegebene Konto der<br />
AnleiheglaÈubiger zu leisten. Die Emittentin kann<br />
die AusuÈbung dieses Wahlrechts mittels<br />
Bekanntmachung gemaÈû § 11 mit Wirkung zu dem<br />
in der Bekanntmachung angegebenen Datum mit<br />
einer Frist von sieben Bankarbeitstagen gegenuÈber<br />
der Umtauschstelle und den AnleiheglaÈubigern<br />
widerrufen oder aÈndern. Die Emittentin kann das<br />
Wahlrecht nach freiem Ermessen beliebig oft<br />
ausuÈben, widerrufen oder aÈndern. Falls zu<br />
irgendeinem Zeitpunkt aus irgendeinem Grund bei<br />
AusuÈbung des Umtauschrechts durch einen<br />
27<br />
The Issuer may elect from time to time upon no less<br />
than seven Business Days' prior notice to the<br />
Exchange Agents and to the Bondholders in<br />
accordance with § 11, to pay to the Bondholders,<br />
in lieu of the delivery of the number of Shares<br />
speci®ed in § 5(1)(b) (as adjusted as a result of an<br />
adjustment of the Exchange Price) or a portion of<br />
such Shares to the Bondholders upon valid exercise<br />
of the Exchange Right in respect of which the<br />
Exchange Date falls on or after the date speci®ed as<br />
effective date of such election in such notice and<br />
prior to the effective date of revocation or change of<br />
such election (as provided below), a cash amount in<br />
Euro. The cash amount relating to each Share shall<br />
be calculated on the basis of the arithmetic average<br />
of the price of the Shares in the XETRA-Quotations<br />
on each of the ten Stock Exchange Trading Days<br />
after the Exchange Date and shall be in addition to<br />
any other cash amounts which may be payable by<br />
the Issuer to a Bondholder upon the valid exercise<br />
of the Exchange Right. Payment of such amounts<br />
shall be made as soon as practicable after the tenth<br />
Stock Exchange Trading Day following the<br />
Exchange Date and in any event not later than<br />
seven Business Days after such Stock Exchange<br />
Trading Day to the account of the Bondholder<br />
speci®ed in the Exchange Notice. Any such election<br />
by the Issuer may be revoked or changed upon not<br />
less than seven Business Days' prior notice to the<br />
Exchange Agents and to the Bondholders in<br />
accordance with § 11 from the date speci®ed in<br />
such revocation or change notice. The Issuer may<br />
exercise its right to make, revoke or change an<br />
election at any time in its sole discretion. If at any<br />
time and for any reason Shares cannot be delivered<br />
upon the exercise by a Bondholder of the Exchange<br />
Right, the Issuer shall (i) promptly elect to pay a<br />
cash amount in Euro in lieu of the delivery of Shares<br />
in accordance with this § 5(5), (ii), if, by that time,<br />
the Issuer has already so elected, refrain from<br />
revoking or changing such election, and (iii), if a
AnleiheglaÈubiger Aktien nicht geliefert werden<br />
koÈnnen, wird die Emittentin (i) unverzuÈglich nach<br />
Maûgabe dieses § 5(5) statt der Lieferung von<br />
Aktien die Zahlung eines Barbetrags in Euro<br />
waÈhlen und (ii), falls die Emittentin zu diesem<br />
Zeitpunkt ihr Wahlrecht schon entsprechend<br />
ausgeuÈbt hat, diese Wahl nicht widerrufen oder<br />
aÈndern, und (iii), falls ein AnleiheglaÈubiger sein<br />
Umtauschrecht ausgeuÈbt hat und der entsprechende<br />
Umtauschtag vor den Wirksamkeitstag fuÈr die<br />
AusuÈbung des Wahlrechts gemaÈû (i) liegt, an<br />
diesen AnleiheglaÈubiger statt der Lieferung von<br />
Aktien einen Barbetrag in Euro zahlen, der gemaÈû<br />
diesem § 5(5) Satz 2 berechnet wird.<br />
(6) Fusionen. (6) Merger.<br />
Falls die Gesellschaft fusioniert oder aufgespalten<br />
wird oder eine andere Form des Unternehmenszusammenschlusses<br />
oder der Unternehmensreorganisation<br />
durchfuÈhrt und infolgedessen die<br />
Aktien gegen andere Wertpapiere ausgetauscht<br />
oder in ihrem <strong>Re</strong>chtsinhalt veraÈndert werden, ist<br />
die Emittentin verp¯ichtet, die Aktien durch die im<br />
Austausch fuÈr die Aktien gelieferten Wertpapiere<br />
oder die auf diese Weise in ihrem <strong>Re</strong>chtsinhalt<br />
veraÈnderten Aktien (jeweils die ``Ersatzwerte'') als<br />
Gegenstand des Umtauschrechts zu ersetzen. Der<br />
Umtauschwert fuÈr die Ersatzwerte wird bestimmt,<br />
indem der vor Eintritt des betreffenden Ereignisses<br />
guÈltige Umtauschwert mit dem UmtauschverhaÈltnis<br />
der Aktien in Ersatzwerte multipliziert wird<br />
(ausgedruÈckt als Bruch, wobei der Nenner der<br />
Anzahl der Ersatzwerte und der ZaÈhler der Anzahl<br />
der Aktien entspricht).<br />
§ 6<br />
(Schutz bei UÈ bernahmeangebot)<br />
(1) Allgemeines. (1) General.<br />
Im Falle eines OÈ ffentlichen UÈ bernahmeangebots<br />
(wie nachstehend de®niert) sind die Emittentin und<br />
die Garantin (§ 8) nach freiem Ermessen berechtigt,<br />
das OÈ ffentliche UÈ bernahmeangebot anzunehmen<br />
oder abzulehnen, jedoch nur in bezug auf<br />
saÈmtliche Aktien, und nicht nur einen Teil davon.<br />
Die Emittentin und die Garantin duÈrfen das<br />
OÈ ffentliche UÈ bernahmeangebot nicht in bezug auf<br />
diejenigen Aktien annehmen, die im Falle einer<br />
wirksamen AusuÈbung des Umtauschrechts vor dem<br />
letzten Tag des Zeitraums, innerhalb dessen das<br />
OÈ ffentliche UÈ bernahmeangebot bedingungsgemaÈû<br />
angenommen werden kann (der ``Annahmetag''), an<br />
die AnleiheglaÈubiger zu liefern sind.<br />
28<br />
Bondholder has exercised the Exchange Right and<br />
the Exchange Date falls before the effective date of<br />
the election pursuant to (i), pay to such Bondholder<br />
a cash amount in Euro in lieu of the delivery of<br />
Shares calculated in accordance with sentence 2 of<br />
this § 5(5).<br />
If the Company shall merge or split-up or enter into<br />
any other form of business combination or<br />
reorganization, and as a result of such event the<br />
Shares are exchanged for other shares or<br />
reclassi®ed, the Issuer shall procure that the shares<br />
delivered in exchange for the Shares, or the Shares<br />
as reclassi®ed (in each case, the ``Substitute<br />
Shares''), shall replace the Shares as the subject to<br />
the Exchange Right. The Exchange Price for<br />
Substitute Shares shall be determined by<br />
multiplying the Exchange Price applicable before<br />
the effectiveness of such event by the exchange ratio<br />
of Shares for Substitute Shares (expressed as a<br />
fraction, the denominator of which is the number of<br />
Substitute Shares and the numerator of which is the<br />
number of Shares).<br />
§ 6<br />
(Event Risk Protection)<br />
In the event of a Public Offer (as de®ned below), the<br />
Issuer and the Guarantor (§ 8) shall have absolute<br />
discretion to accept or reject the Public Offer, but<br />
only for all but not part of the Shares. The Issuer<br />
and the Guarantor may not accept the Public Offer<br />
with respect to the Shares that have to be delivered<br />
to Bondholders upon valid exercise of the Exchange<br />
Right prior to the last day of the period within<br />
which the Public Offer can be accepted in<br />
accordance with its terms (the ``Acceptance Date'').
Im Falle von zwei oder mehreren gleichzeitigen<br />
OÈ ffentlichen UÈ bernahmeangeboten koÈnnen die<br />
Emittentin und die Garantin irgendeines oder<br />
keines der OÈ ffentlichen UÈ bernahmeangebote<br />
annehmen.<br />
Die Emittentin bzw. die Garantin hat den<br />
AnleiheglaÈubigern gemaÈû § 11 bekanntzumachen:<br />
(i) unmittelbar nach dem Annahmetag, ob die<br />
Emittentin, die Garantin bzw. eines ihrer<br />
verbundenen Unternehmen, welches Aktien<br />
haÈlt, das OÈ ffentliche UÈ bernahmeangebot<br />
angenommen hat und ob das OÈ ffentliche<br />
UÈ bernahmeangebot erfolgreich war, und<br />
(ii) nur im Falle der Annahme des OÈ ffentlichen<br />
UÈ bernahmeangebots, sobald wie moÈglich, in<br />
keinem Fall jedoch spaÈter als fuÈnf<br />
Bankarbeitstage nach dem ErfuÈllungstag des<br />
OÈ ffentlichen UÈ bernahmeangebots (wie<br />
nachstehend de®niert), den Betrag und die<br />
Art der Gegenleistung je Aktie, welche die<br />
Emittentin, die Garantin bzw. ein solches<br />
verbundenes Unternehmen erhalten hat oder<br />
im Zusammenhang mit dem OÈ ffentlichen<br />
UÈ bernahmeangebot zu erhalten berechtigt ist.<br />
(2) Annahme eines OÈ ffentlichen<br />
UÈ bernahmeangebots.<br />
Wenn die Emittentin, die Garantin bzw. eines ihrer<br />
verbundenen Unternehmen, das Aktien haÈlt, ein<br />
OÈ ffentliches UÈ bernahmeangebot angenommen hat,<br />
gelten mit Wirkung ab dem jeweiligen ErfuÈllungstag<br />
des OÈ ffentlichen UÈ bernahmeangebots die folgenden<br />
Bestimmungen:<br />
(a) Im Falle eines Ausschlieûlichen Sachangebots<br />
(wie nachstehend de®niert) erhaÈlt jeder<br />
AnleiheglaÈubiger bei AusuÈbung des<br />
Umtauschrechts je Teilschuldverschreibung<br />
Angebotene Sachwerte (wie nachstehend<br />
de®niert) in einem Umfang, der gemaÈû<br />
folgender Formel berechnet wird:<br />
In the event of two or more simultaneous Public<br />
Offers, the Issuer and the Guarantor may accept<br />
any or none of the Public Offers.<br />
The Issuer or the Guarantor, as the case may be,<br />
shall, in accordance with § 11, notify to the<br />
Bondholders:<br />
(i) its decision immediately after the Acceptance<br />
Date, whether the Issuer, the Guarantor or any<br />
of their af®liates holding Shares, as the case<br />
may be, has accepted the Public Offer and<br />
whether the Public Offer was successful, and<br />
(ii) only in the event of acceptance of the Public<br />
Offer, as soon as practicable but in any event<br />
not later than ®ve Business Days after the<br />
Public Offer Closing Date (as de®ned below),<br />
the amount and type of consideration per<br />
Share the Issuer, the Guarantor or such<br />
af®liate, as the case may be, has received or is<br />
entitled to receive in the context of the Public<br />
Offer.<br />
(2) Acceptance of a Public Offer.<br />
If the Issuer, the Guarantor or any of their af®liates<br />
holding Shares, as the case may be, has accepted a<br />
Public Offer, the following provisions shall apply<br />
with effect from such Public Offer Closing Date:<br />
(a) In the event of an All Property Offer (as<br />
de®ned below), each Bondholder shall, upon<br />
exercise of the Exchange Right, receive per<br />
Bond an amount of Offered Property (as<br />
de®ned below) calculated in accordance with<br />
the following formula:<br />
A = E 6 Angebotenes VermoÈgen A = E 6 Offered Property<br />
wobei folgendes gilt: where:<br />
A = die Menge an Angebotenen Sachwerten,<br />
die im Anschluû an das OÈ ffentliche<br />
UÈ bernahmeangebot einem Anleihe-<br />
A = the amount of Offered Property<br />
deliverable to a Bondholder in respect of<br />
each Bond upon exercise of the Exchange<br />
glaÈubiger in bezug auf jede<br />
Right following the Public Offer,<br />
Teilschuldverschreibung bei AusuÈbung<br />
des Umtauschrechts zu liefern ist,<br />
29
E = das unmittelbar vor dem ErfuÈllungstag<br />
des OÈ ffentlichen UÈ bernahmeangebots<br />
guÈltige UmtauschverhaÈltnis.<br />
(b) Im Falle eines Ausschlieûlichen Barangebots<br />
(wie nachstehend de®niert) erhaÈlt jeder<br />
AnleiheglaÈubiger bei AusuÈbung des<br />
Umtauschrechts je Teilschuldverschreibung<br />
einen Barbetrag, der gemaÈû folgender Formel<br />
berechnet wird:<br />
B = E x Angebotener Barbetrag + PraÈmien-<br />
Ausgleichsbetrag<br />
wobei folgendes gilt: where:<br />
B = der Barbetrag, der einem AnleiheglaÈubiger<br />
im Anschluû an das<br />
OÈ ffentliche UÈ bernahmeangebot in bezug<br />
auf jede Teilschuldverschreibung bei<br />
AusuÈbung des Umtauschrechts zu zahlen<br />
ist,<br />
E = das unmittelbar vor dem ErfuÈllungstag<br />
des OÈ ffentlichen UÈ bernahmeangebots<br />
guÈltige UmtauschverhaÈltnis,<br />
der PraÈmien-Ausgleichsbetrag wird gemaÈû<br />
folgender Formel berechnet:<br />
PC = K 2 6 (Kapital ± IP) 6 T<br />
wobei folgendes gilt: where:<br />
K = IP wenn MP _4 IP<br />
MP<br />
K = MP wenn MP 5 IP<br />
IP<br />
PC = PraÈmien-Ausgleichsbetrag je<br />
Teilschuldverschreibung<br />
C<br />
E = the Exchange Ratio applicable<br />
immediately prior to the Public Offer<br />
Closing Date.<br />
(b) In the event of an All Cash Offer (as de®ned<br />
below), each Bondholder shall, upon exercise<br />
of the Exchange Right, receive per Bond a cash<br />
amount calculated in accordance with the<br />
following formula:<br />
B = E x Offered Cash + Premium<br />
Compensation<br />
B = the amount of cash deliverable to a<br />
Bondholder in respect of each Bond<br />
upon exercise of the Exchange Right<br />
following the Public Offer,<br />
E = the Exchange Ratio applicable<br />
immediately prior to the Public Offer<br />
Closing Date,<br />
the Premium Compensation shall be calculated<br />
according to the following formula:<br />
PC = K 2 6 (Principal ± IP) 6 T<br />
K = IP where MP _4 IP<br />
MP<br />
K = MP where MP 5 IP<br />
IP<br />
PC = Premium Compensation per Bond<br />
Kapital = e 10.000 Principal = e 10,000<br />
IP = Umtauschwert je Teilschuldverschreibung<br />
auf der Grundlage der<br />
Notierung der Aktien in XETRA in<br />
der 17:30 Auktion am 4. September<br />
2001, d.h. e 8.026,66<br />
MP = Umtauschwert je Teilschuldverschreibung<br />
am Annahmetag, der<br />
30<br />
IP = Exchange value for one Bond based on<br />
the quotation of the Shares in XETRA<br />
in the 05:30 p.m. auction on September<br />
4, 2001, i.e. e 8,026.66<br />
MP = Exchange value for one Bond on the<br />
Acceptance Date, equal to the product<br />
C
dem Produkt aus E und dem<br />
arithmetischen Mittel der Kurse der<br />
Aktien in den XETRA-Notierungen an<br />
den fuÈnf BoÈrsentagen vor dem und<br />
einschlieûlich des Annahmetags<br />
entspricht<br />
C = Dauer in Tagen vom 14. September<br />
2001 bis einschlieûlich zu dem Tag,<br />
an dem die Emittentin ihre<br />
Option ausuÈben kann, die<br />
Teilschuldverschreibungen gemaÈû<br />
§ 3(3)(a) vor EndfaÈlligkeit in bar<br />
zuruÈckzuzahlen<br />
T = Dauer in Tagen vom Annahmetag bis<br />
einschlieûlich zu dem Tag, an dem die<br />
Emittentin ihre Option ausuÈben kann,<br />
die Teilschuldverschreibungen gemaÈû<br />
§ 3(3)(a) vor EndfaÈlligkeit in bar<br />
zuruÈckzuzahlen.<br />
(c) Im Falle eines Teilweisen Barangebots (wie<br />
nachstehend de®niert) erhaÈlt jeder<br />
AnleiheglaÈubiger bei AusuÈbung des<br />
Umtauschrechts je Teilschuldverschreibung<br />
(i) in bezug auf die in dem Angebot<br />
enthaltenen Angebotenen Sachwerte<br />
Angebotene Sachwerte in einem Umfang, der<br />
gemaÈû § 6(2)(a) berechnet wird, und (ii) in<br />
bezug auf den in dem Angebot enthaltenen<br />
Angebotenen Barbetrag einen Barbetrag, der<br />
gemaÈû § 6(2)(b) berechnet wird.<br />
of E and the arithmetic average of the<br />
price of the Shares in the XETRA-<br />
Quotations on each of the ®ve Stock<br />
Exchange Trading Days preceding, and<br />
including, the Acceptance Date<br />
C = Duration in days from September 14,<br />
2001 to, and including, the date on<br />
which the Issuer may exercise its option<br />
to redeem the Bonds in cash prior to<br />
maturity pursuant to § 3(3)(a)<br />
T = Duration in days from the Acceptance<br />
Date to, and including, the date on<br />
which the Issuer may exercise its option<br />
to redeem the Bonds in cash prior to<br />
maturity pursuant to § 3(3)(a).<br />
(c) In the event of a Partly Cash Offer (as de®ned<br />
below), each Bondholder shall, upon exercise<br />
of the Exchange Right, receive per Bond (i) as<br />
regards the Offered Property comprised in the<br />
offer an amount of Offered Property<br />
calculated in accordance with § 6(2)(a) and<br />
(ii) as regards the Offered Cash Amount<br />
comprised in the offer an amount of Offered<br />
Cash calculated in accordance with § 6(2)(b).<br />
(3) De®nitionen. (3) De®nitions.<br />
Im Sinne dieses § 6 bedeutet: For the purposes of this § 6:<br />
``Angebotener Barbetrag'' den von der Emittentin,<br />
der Garantin bzw. einem ihrer verbundenen<br />
Unternehmen, das Aktien haÈlt, als Gegenleistung<br />
fuÈr eine Aktie in dem OÈ ffentlichen<br />
UÈ bernahmeangebot erhaltenen Barbetrag in Euro<br />
(oder, soweit anwendbar, den zu einem Kurs, den<br />
die EuropaÈische Zentralbank am Tag des Erhalts<br />
dieses Barbetrags festgelegt hat und der von <strong>Re</strong>uters<br />
auf Seite ECB37 gegen 11 Uhr (Frankfurter Zeit)<br />
veroÈffentlicht wird, in Euro umgerechneten Betrag).<br />
Falls die Angebotenen Sachwerte Wertpapiere<br />
umfassen, die keine Aktien sind, wie zum Beispiel<br />
nicht auf die AÈ nderung des Kurses von Aktien<br />
bezogene Schuldverschreibungen oder Schuldverschreibungen,<br />
die nicht durch Umwandlung,<br />
Umtausch oder RuÈckerstattung Bezugsrechte fuÈr<br />
Aktien gewaÈhren, Wertpapiere, die OptionsvertraÈge<br />
oder bestimmte <strong>Re</strong>chte beinhalten (Optionsscheine<br />
31<br />
``Offered Cash'' means the cash amount received by<br />
the Issuer, the Guarantor or any of their af®liates<br />
holding Shares, as the case may be, in Euro (or,<br />
where applicable, as converted into Euro at the rate<br />
®xed by the European Central Bank on the date of<br />
receipt of such cash amount, as published on<br />
<strong>Re</strong>uters page ECB37 at around 11 hours<br />
(Frankfurt time)) as consideration for one Share<br />
in the Public Offer. If the Offered Property<br />
comprises securities which are not shares, such as<br />
debt instruments not linked to the variation of a<br />
share price or debt instruments not giving rights to<br />
subscribe for shares by way of conversion, exchange<br />
or reimbursement, securities representing optional<br />
contracts or speci®c rights (warrants to subscribe or<br />
acquire shares or other securities) having a limited<br />
duration, such securities will be deemed, for the<br />
purpose of § 6(2), to be Offered Cash for an amount
zur Zeichnung oder zum Erwerb von Aktien oder<br />
sonstigen Wertpapieren) mit einer beschraÈnkten<br />
Dauer, werden diese Wertpapiere fuÈr die Zwecke<br />
von § 6(2) als Angebotener Barbetrag behandelt in<br />
HoÈhe des von der Berechnungsstelle (§ 13) auf der<br />
Grundlage des am Annahmetag veroÈffentlichten<br />
letzten Kurses der Wertpapiere an der BoÈrse, an der<br />
sie gehandelt werden, bestimmten Barwertes oder,<br />
falls sie nicht an einer BoÈrse gehandelt werden, in<br />
HoÈhe des von der Berechnungsstelle mit Hilfe eines<br />
international anerkannten unabhaÈngigen<br />
SachverstaÈndigen ermittelten theoretischen Wertes.<br />
``Angebotene Sachwerte'' jegliche Gegenleistung,<br />
welche die Emittentin, die Garantin bzw. eines<br />
ihrer verbundenen Unternehmen fuÈr eine Aktie<br />
erhaÈlt und die kein Angebotener Barbetrag ist.<br />
``Ausschlieûliches Barangebot'' ein OÈ ffentliches<br />
UÈ bernahmeangebot, bei dem die Emittentin, die<br />
Garantin bzw. eines ihrer verbundenen<br />
Unternehmen ausschlieûlich Angebotene<br />
BarbetraÈge als Gegenleistung fuÈr die Aktien erhaÈlt.<br />
``Ausschlieûliches Sachangebot'' ein OÈ ffentliches<br />
UÈ bernahmeangebot, bei dem die Emittentin, die<br />
Garantin bzw. eines ihrer verbundenen<br />
Unternehmen ausschlieûlich Angebotene<br />
Sachwerte als Gegenleistung fuÈr die Aktien erhaÈlt.<br />
``ErfuÈllungstag des OÈ ffentlichen UÈ bernahmeangebots''<br />
der Tag, an dem die Emittentin, die<br />
Garantin bzw. eines ihrer verbundenen<br />
Unternehmen die Gegenleistung fuÈr die Aktien<br />
erhaÈlt.<br />
``OÈ ffentliches UÈ bernahmeangebot'' jegliches<br />
Angebot (einschlieûlich eines Angebots der<br />
Gesellschaft, welches sich an die Inhaber der<br />
Aktien richtet, Aktien zu erwerben, insbesondere<br />
ein UÈ bernahmeangebot, das dem UÈ bernahmekodex,<br />
deutschen Gesetzen oder sonstigen<br />
anwendbaren Bestimmungen unterliegt).<br />
``Teilweises Barangebot'' ein OÈ ffentliches<br />
UÈ bernahmeangebot, bei dem die Emittentin, die<br />
Garantin bzw. eines ihrer verbundenen<br />
Unternehmen sowohl Angebotene BarbetraÈge als<br />
auch Angebotene Sachwerte als Gegenleistung fuÈr<br />
die Aktien erhaÈlt.<br />
``UmtauschverhaÈltnis'' e 10.000 dividiert durch den<br />
im jeweiligen Zeitpunkt guÈltigen Umtauschwert.<br />
32<br />
equal to their cash value in Euro determined by the<br />
Calculation Agent (§ 13) on the basis of their ®nal<br />
price quoted on the Acceptance Date on the stock<br />
exchange on which they are listed or, if they are not<br />
listed, equal to their theoretical value calculated by<br />
the Calculation Agent with the assistance of an<br />
independent expert of recognized international<br />
standing.<br />
``Offered Property'' means any consideration<br />
received by the Issuer, the Guarantor or any of<br />
their af®liates, as the case may be, as consideration<br />
for one Share which is not Offered Cash.<br />
``All Cash Offer'' means a Public Offer where the<br />
Issuer, the Guarantor or any of their af®liates, as<br />
the case may be, receives exclusively Offered Cash<br />
as consideration for the Shares.<br />
``All Property Offer'' means a Public Offer where<br />
the Issuer, the Guarantor or any of their af®liates,<br />
as the case may be, receives exclusively Offered<br />
Property as consideration for the Shares.<br />
``Public Offer Closing Date'' means the day on<br />
which the consideration for the Shares has been<br />
received by the Issuer, the Guarantor or any of their<br />
af®liates, as the case may be.<br />
``Public Offer'' means any offer (including an offer<br />
by the Company which is addressed to the holders<br />
of Shares to acquire Shares, in particular a takeover<br />
bid of a kind that is subject to the German<br />
Takeover Code (UÈ bernahmekodex), German<br />
statutory rules or any other applicable regulations).<br />
``Partly Cash Offer'' means a Public Offer where the<br />
Issuer, the Guarantor or any of their af®liates, as<br />
the case may be, receives Offered Cash as well as<br />
Offered Property as consideration for the Shares.<br />
``Exchange Ratio'' means e 10,000 divided by the<br />
then applicable Exchange Price.
§ 7<br />
(Status; NegativerklaÈrung der Emittentin)<br />
(1) Status der Teilschuldverschreibungen. (1) Status of the Bonds.<br />
Die Teilschuldverschreibungen begruÈnden<br />
unbesicherte und nicht nachrangige<br />
Verp¯ichtungen der Emittentin, die im gleichen<br />
Rang mit allen anderen gegenwaÈrtigen und<br />
zukuÈnftigen unbesicherten und nicht nachrangigen<br />
Verbindlichkeiten der Emittentin stehen.<br />
(2) NegativerklaÈrung. (2) Negative Pledge.<br />
Die Emittentin verp¯ichtet sich, solange bis Kapital<br />
und Zinsen sowie etwaige weitere auf die<br />
Teilschuldverschreibungen zahlbare BarbetraÈge an<br />
die Zahlstellen (§ 13) gezahlt und alle<br />
Verp¯ichtungen zur Lieferung von Aktien oder<br />
sonstigen VermoÈgenswerten erfuÈllt worden sind,<br />
keine Sicherheiten an ihren VermoÈgensgegenstaÈnden<br />
zur Besicherung gegenwaÈrtiger oder<br />
zukuÈnftiger Kapitalmarktverbindlichkeiten (wie<br />
nachstehend de®niert) einschlieûlich hierfuÈr<br />
abgegebener Garantien zu bestellen, es sei denn,<br />
daû die Teilschuldverschreibungen gleichzeitig und<br />
im gleichen Rang an dieser Sicherheit anteilig<br />
teilnehmen oder den AnleiheglaÈubigern eine<br />
andere Sicherheit gewaÈhrt wird, die von einer<br />
international anerkannten unabhaÈngigen<br />
WirtschaftspruÈfungsgesellschaft als gleichwertige<br />
Sicherheit anerkannt wird. Die Verp¯ichtung<br />
gemaÈû vorstehendem Satz ®ndet keine Anwendung<br />
auf eine Sicherheit, (i) deren Bestellung nach<br />
geltendem <strong>Re</strong>cht zwingend ist oder (ii) die zur<br />
Erlangung einer staatlichen Genehmigung<br />
erforderlich ist. Eine Sicherheit, die gemaÈû dem<br />
ersten Satz dieses § 7(2) zu leisten ist, kann auch<br />
zugunsten einer Person bestellt werden, die als<br />
TreuhaÈnder (wie nachstehend de®niert) der<br />
AnleiheglaÈubiger handelt. ``Kapitalmarktverbindlichkeit''<br />
ist jede gegenwaÈrtige oder zukuÈnftige<br />
Verp¯ichtung zur RuÈckzahlung aufgenommener<br />
GeldbetraÈge durch die Emittentin, die Garantin<br />
(§ 8) oder Dritte, die durch Schuldverschreibungen<br />
oder sonstige Wertpapiere mit einer Anfangslaufzeit<br />
von mehr als einem Jahr, die an einer BoÈrse oder an<br />
einem anderen anerkannten Wertpapiermarkt<br />
zugelassen, notiert oder gehandelt werden oder<br />
werden koÈnnen, verbrieft oder verkoÈrpert ist.<br />
``TreuhaÈnder'' ist eine Bank, ein Finanzinstitut,<br />
eine WirtschaftspruÈfungs- oder Steuerberatungsgesellschaft<br />
von international anerkanntem Rang,<br />
die fuÈr die AnleiheglaÈubiger nach Ernennung durch<br />
die Emittentin und mit Zustimmung der<br />
Hauptzahlstelle (§ 13) treuhaÈnderisch handelt.<br />
33<br />
§ 7<br />
(Status; Negative Pledge of the Issuer)<br />
The Bonds constitute unsecured and<br />
unsubordinated obligations of the Issuer which<br />
shall rank at least pari passu with all other present<br />
or future unsecured and unsubordinated obligations<br />
of the Issuer.<br />
The Issuer undertakes until such time as principal<br />
and interest, as well as any other cash amounts<br />
payable under or in respect of the Bonds have been<br />
paid to the Paying Agents (§ 13) and all obligations<br />
to deliver Shares or other property have been<br />
ful®lled, not to provide any security upon its<br />
assets for any present or future Capital Market<br />
Indebtedness (as de®ned below), including any<br />
guarantee in respect thereof, unless the Bonds at<br />
the same time share pari passu and pro rata in such<br />
security or unless such other security, as shall have<br />
been approved by an independent accounting ®rm<br />
of recognized international standing as being<br />
equivalent security, has been made available to the<br />
Bondholders. The undertaking pursuant to the<br />
preceding sentence shall not apply to a security<br />
(i) which is mandatory according to applicable laws,<br />
or (ii) which is a prerequisite for governmental<br />
approvals. Any security which is to be provided<br />
pursuant to the ®rst sentence of this § 7(2) may also<br />
be provided to a person acting as Trustee (as de®ned<br />
below) for the Bondholders. ``Capital Market<br />
Indebtedness'' means any present or future<br />
obligation for the repayment of borrowed money<br />
of the Issuer, the Guarantor (§ 8) or any third party,<br />
which is in the form of, or represented or evidenced<br />
by, bonds, notes or other securities with an original<br />
maturity of more than one year which are, or are<br />
capable of being, quoted, listed, dealt in or traded<br />
on a stock exchange or other recognized securities<br />
market. ``Trustee'' means a bank, ®nancial<br />
institution, auditing or accounting ®rm of<br />
recognized international standing acting as trustee<br />
for the Bondholders, as appointed by the Issuer<br />
with the consent of the Principal Paying Agent<br />
(§ 13).
§ 8<br />
(Garantie und NegativerklaÈrung der Garantin)<br />
§ 8<br />
(Guarantee and Negative Pledge of the Guarantor)<br />
(1) Garantie und NegativerklaÈrung. (1) Guarantee and Negative Pledge.<br />
GemaÈû einer Verp¯ichtungserklaÈrung vom<br />
12. September 2001 (die ``Verp¯ichtungserklaÈrung'')<br />
hat <strong>ERGO</strong> Versicherungsgruppe Aktiengesellschaft,<br />
DuÈsseldorf (die ``Garantin''):<br />
(a) unbedingt und unwiderru¯ich die<br />
ordnungsgemaÈûe Zahlung von Kapital und<br />
Zinsen auf die Teilschuldverschreibungen<br />
sowie aller sonstigen etwaigen von der<br />
Emittentin gemaÈû diesen Anleihebedingungen<br />
zahlbaren BetraÈge garantiert, und<br />
(b) unbedingt und unwiderru¯ich die Lieferung<br />
der Aktien und der sonstigen VermoÈgenswerte<br />
garantiert, die gemaÈû diesen<br />
Anleihebedingungen zu liefern sind ((a) und<br />
(b) zusammen die ``Garantie''), und<br />
(c) sich gegenuÈber den AnleiheglaÈubigern<br />
verp¯ichtet, solange bis Kapital und Zinsen<br />
sowie etwaige weitere auf die Teilschuldverschreibungen<br />
zahlbare BarbetraÈge an die<br />
Zahlstellen (§ 13) gezahlt und alle<br />
Verp¯ichtungen zur Lieferung von Aktien<br />
oder sonstigen VermoÈgenswerten erfuÈllt<br />
worden sind, keine Sicherheiten an ihren<br />
VermoÈgensgegenstaÈnden zur Besicherung<br />
gegenwaÈrtiger oder zukuÈnftiger Kapitalmarktverbindlichkeiten<br />
einschlieûlich hierfuÈr<br />
abgegebener Garantien zu bestellen, es sei<br />
denn, daû die Teilschuldverschreibungen<br />
gleichzeitig und im gleichen Rang an dieser<br />
Sicherheit anteilig teilnehmen oder den<br />
AnleiheglaÈubigern eine andere Sicherheit<br />
gewaÈhrt wird, die von einer international<br />
anerkannten unabhaÈngigen WirtschaftspruÈfungsgesellschaft<br />
als gleichwertige<br />
Sicherheit anerkannt wird. Die Verp¯ichtung<br />
gemaÈû vorstehendem Satz ®ndet keine<br />
Anwendung auf eine Sicherheit, (i) deren<br />
Bestellung nach geltendem <strong>Re</strong>cht zwingend ist<br />
oder (ii) die zur Erlangung einer staatlichen<br />
Genehmigung erforderlich ist. Eine Sicherheit,<br />
die gemaÈû dem ersten Satz dieses § 8(1)(c) zu<br />
leisten ist, kann auch zugunsten einer Person<br />
bestellt werden, die als TreuhaÈnder der<br />
AnleiheglaÈubiger handelt.<br />
34<br />
Pursuant to an undertaking dated September 12,<br />
2001 (the ``Undertaking''), <strong>ERGO</strong> Versicherungsgruppe<br />
Aktiengesellschaft, DuÈsseldorf, Federal<br />
<strong>Re</strong>public of Germany (the ``Guarantor''):<br />
(a) has unconditionally and irrevocably<br />
guaranteed the due payment of principal of,<br />
and interest on, the Bonds and all other<br />
amounts, if any, payable by the Issuer under<br />
these Conditions of Issue, and<br />
(b) has unconditionally and irrevocably<br />
guaranteed the delivery of the Shares and any<br />
other property to be delivered under these<br />
Conditions of Issue ((a) and (b) together, the<br />
``Guarantee''), and<br />
(c) has undertaken towards the Bondholders, until<br />
such time as principal and interest, as well as<br />
any other cash amounts payable under or in<br />
respect of the Bonds, have been paid to the<br />
Paying Agents (§ 13) and all obligations to<br />
deliver Shares or other property have been<br />
ful®lled, not to provide any security upon its<br />
assets for any present or future Capital Market<br />
Indebtedness, including any guarantee in<br />
respect thereof, unless the Bonds at the same<br />
time share pari passu and pro rata in such<br />
security or unless such other security as shall<br />
be approved by an independent accounting<br />
®rm of recognized international standing as<br />
being equivalent security has been made<br />
available to the Bondholders. The<br />
undertaking pursuant to the preceding<br />
sentence shall not apply to a security (i) which<br />
is mandatory according to applicable laws, or<br />
(ii) which is a prerequisite for governmental<br />
approvals. Any security which is to be<br />
provided pursuant to the ®rst sentence of this<br />
§ 8(1)(c) may also be provided to a person<br />
acting as Trustee for the Bondholders.
(2) Vertrag zugunsten Dritter. (2) Third-Party Bene®ciary Contract.<br />
Die Verp¯ichtungserklaÈrung stellt einen Vertrag<br />
zugunsten der AnleiheglaÈubiger als beguÈnstigte<br />
Dritte gemaÈû § 328(1) BGB dar, die jedem<br />
AnleiheglaÈubiger das <strong>Re</strong>cht gibt, die ErfuÈllung der<br />
Verp¯ichtungserklaÈrung unmittelbar von der<br />
Garantin zu verlangen und die Verp¯ichtungserklaÈrung<br />
unmittelbar gegen die Garantin<br />
durchzusetzen. Kopien der Verp¯ichtungserklaÈrung<br />
sind fuÈr die AnleiheglaÈubiger bei den<br />
GeschaÈftsstellen der Zahlstellen kostenlos<br />
erhaÈltlich.<br />
§ 9<br />
(KuÈndigungsgruÈnde)<br />
(1) KuÈndigungsgruÈnde. (1) Events of Default.<br />
Jeder AnleiheglaÈubiger ist berechtigt, alle oder<br />
einzelne seiner Teilschuldverschreibungen zu<br />
kuÈndigen und deren sofortige RuÈckzahlung zum<br />
Nennbetrag zuzuÈglich aufgelaufener Zinsen zu<br />
verlangen, falls aus irgendeinem Grund:<br />
(a) ein gemaÈû diesen Anleihebedingungen<br />
geschuldeter Betrag nicht von oder im<br />
Auftrag der Emittentin innerhalb von 15<br />
Tagen nach dem betreffenden Zahlungstag<br />
gezahlt wird, oder<br />
(b) die Emittentin nicht gemaÈû diesen<br />
Anleihebedingungen innerhalb von 30 Tagen<br />
Aktien liefert, nachdem eine Zahlstelle (§ 13)<br />
von einem AnleiheglaÈubiger gemaÈû § 9(2) eine<br />
Benachrichtigung uÈber eine solche<br />
NichterfuÈllung erhalten hat, oder<br />
(c) die Emittentin oder die Garantin eine andere<br />
Verp¯ichtung gemaÈû diesen Anleihebedingungen<br />
bzw. der Verp¯ichtungserklaÈrung<br />
nicht ordnungsgemaÈû erfuÈllt und<br />
die NichterfuÈllung laÈnger als 60 Tage<br />
fortdauert, nachdem eine Zahlstelle hieruÈber<br />
von einem AnleiheglaÈubiger gemaÈû § 9(2) ein<br />
Benachrichtigung erhalten hat, oder<br />
(d) die Emittentin, die Garantin oder eine<br />
Wesentliche Tochtergesellschaft eine faÈllige<br />
Zahlungsverp¯ichtung, die sich aus einer<br />
Kapitalmarktverbindlichkeit oder einer<br />
Garantie oder HaftungsuÈbernahme fuÈr eine<br />
Zahlungsverp¯ichtung aus einer Kapitalmarktverbindlichkeit<br />
Dritter ergibt, nicht erfuÈllt und<br />
die nicht erfuÈllten Zahlungsverp¯ichtungen<br />
insgesamt e 20 Millionen oder den<br />
35<br />
The Undertaking constitutes a contract in favor of<br />
the Bondholders as third party bene®ciaries<br />
pursuant to § 328(1) of the German Civil Code<br />
giving rise to the right of each Bondholder to<br />
require performance of the Undertaking directly<br />
from the Guarantor and to enforce the Undertaking<br />
directly against the Guarantor. Copies of the<br />
Undertaking are available free of charge to the<br />
Bondholders at the of®ces of the Paying Agents.<br />
§ 9<br />
(Events of Default)<br />
Each Bondholder shall be entitled to declare any or<br />
all of its Bonds due and demand immediate<br />
redemption thereof at their principal amount plus<br />
accrued interest thereon in the event that, for<br />
whatever reason:<br />
(a) any amount due under these Conditions of<br />
Issue has not been paid by or on behalf of the<br />
Issuer within 15 days from the relevant<br />
Payment Date, or<br />
(b) the Issuer fails to deliver Shares as provided for<br />
in these Conditions of Issue within 30 days<br />
after a Paying Agent (§ 13) has received notice<br />
of such failure from a Bondholder in<br />
accordance with § 9(2), or<br />
(c) the Issuer or the Guarantor fails to duly<br />
perform any other obligation under these<br />
Conditions of Issue or the Undertaking, as<br />
the case may be, and any such failure continues<br />
for more than 60 days after a Paying Agent has<br />
received notice thereof from a Bondholder in<br />
accordance with § 9(2), or<br />
(d) the Issuer, the Guarantor or any Material<br />
Subsidiary fails to ful®l any payment<br />
obligation when due, arising from any<br />
Capital Market Indebtedness or from any<br />
guarantee or indemnity for a payment<br />
obligation arising from any Capital Market<br />
Indebtedness of a third party, and the total<br />
unpaid amount exceeds e 20 million or the<br />
equivalent in another currency, and any such
entsprechenden Gegenwert in einer anderen<br />
WaÈhrung uÈbersteigen, und diese NichterfuÈllung<br />
laÈnger als 30 Tage, nachdem eine<br />
Zahlstelle hieruÈber von einem AnleiheglaÈubiger<br />
gemaÈû § 9(2) eine Benachrichtigung erhalten<br />
hat, fortdauert; oder, falls eine derartige<br />
Zahlungsverp¯ichtung der Emittentin, der<br />
Garantin bzw. einer Wesentlichen<br />
Tochtergesellschaft aufgrund eines in der<br />
Person der Emittentin, der Garantin oder<br />
einer Wesentlichen Tochtergesellschaft<br />
eingetretenen Ereignisses oder der<br />
NichterfuÈllung einer der Bedingungen dieser<br />
Zahlungsverp¯ichtung durch die Emittentin,<br />
die Garantin oder eine Wesentliche<br />
Tochtergesellschaft vorzeitig faÈllig gestellt<br />
wird; oder, falls eine fuÈr eine derartige<br />
Zahlungsverp¯ichtung bestellte Sicherheit<br />
verwertet wird, oder<br />
(e) die Emittentin, die Garantin oder eine<br />
Wesentliche Tochtergesellschaft ihre<br />
Zahlungen allgemein einstellt, oder<br />
(f) die Emittentin, die Garantin oder eine<br />
Wesentliche Tochtergesellschaft ihre<br />
ZahlungsunfaÈhigkeit bekanntgibt, oder<br />
(g) die Emittentin, die Garantin oder eine<br />
Wesentliche Tochtergesellschaft in<br />
Liquidation tritt, es sei denn, daû dies im<br />
Zusammenhang mit einer Verschmelzung oder<br />
einer anderen Form des Zusammenschlusses<br />
mit einer anderen Gesellschaft oder einer<br />
Umstrukturierung steht, bei der diese andere<br />
oder neue Gesellschaft alle Verp¯ichtungen<br />
und Verbindlichkeiten der Emittentin, der<br />
Garantin oder der Wesentlichen<br />
Tochtergesellschaft uÈbernimmt, oder<br />
(h) ein Gericht in der Bundesrepublik Deutschland<br />
oder einem anderen Land ein Insolvenzverfahren<br />
oder ein aÈhnliches Verfahren in<br />
bezug auf die VermoÈgensgegenstaÈnde der<br />
Emittentin, der Garantin oder einer<br />
Wesentlichen Tochtergesellschaft einleitet und<br />
dieses Verfahren nicht innerhalb von 60 Tagen<br />
eingestellt oder ausgesetzt wird; oder, falls die<br />
Emittentin, die Garantin, eine Wesentliche<br />
Tochtergesellschaft oder das Bundesaufsichtsamt<br />
fuÈr das Versicherungswesen die<br />
EroÈffnung eines solchen Verfahrens in bezug<br />
auf die VermoÈgensgegenstaÈnde der Emittentin,<br />
der Garantin oder einer Wesentlichen<br />
Tochtergesellschaft beantragt, oder, falls die<br />
Emittentin, die Garantin oder eine Wesentliche<br />
Tochtergesellschaft eine allgemeine<br />
36<br />
failure continues for more than 30 days after a<br />
Paying Agent has received notice thereof from<br />
a Bondholder in accordance with § 9(2); or any<br />
such payment obligation of the Issuer, the<br />
Guarantor or any Material Subsidiary, as the<br />
case may be, becomes due prematurely by<br />
reason of the occurrence of an event relating to<br />
the Issuer, the Guarantor or any Material<br />
Subsidiary or a failure by the Issuer, the<br />
Guarantor or any Material Subsidiary to<br />
comply with any of the terms of any such<br />
payment obligation; or a security interest<br />
granted for any such payment obligation is<br />
being enforced, or<br />
(e) the Issuer, the Guarantor or any Material<br />
Subsidiary suspends its payments generally, or<br />
(f) the Issuer, the Guarantor or any Material<br />
Subsidiary announces its inability to meet its<br />
payment obligations, or<br />
(g) the Issuer, the Guarantor or any Material<br />
Subsidiary enters into liquidation except in<br />
connection with a merger, consolidation or<br />
other form of combination with another<br />
company or in connection with a<br />
reorganization and such other or new<br />
company assumes all obligations and<br />
liabilities of the Issuer, the Guarantor or such<br />
Material Subsidiary, or<br />
(h) a court in the Federal <strong>Re</strong>public of Germany or<br />
any other country institutes insolvency<br />
proceedings or similar proceedings with<br />
respect to the assets of the Issuer, the<br />
Guarantor or any Material Subsidiary and<br />
such proceedings have not been discharged or<br />
stayed within 60 days; or the Issuer, the<br />
Guarantor, any Material Subsidiary or the<br />
German Federal Insurance Supervisory<br />
Authority (Bundesaufsichtsamt fuÈr das<br />
Versicherungswesen) applies for institution of<br />
such proceedings with respect to the assets of<br />
the Issuer, the Guarantor or any Material<br />
Subsidiary, or the Issuer, the Guarantor or any<br />
Material Subsidiary offers or makes a general<br />
arrangement for the bene®t of its creditors; or
Schuldenregelung zugunsten ihrer GlaÈubiger<br />
anbietet oder trifft; oder<br />
(i) es fuÈr die Emittentin oder die Garantin<br />
unzulaÈssig wird, ihre Verp¯ichtungen im<br />
Zusammenhang mit den Teilschuldverschreibungen<br />
bzw. der Verp¯ichtungserklaÈrung<br />
zu erfuÈllen.<br />
Das <strong>Re</strong>cht, die Teilschuldverschreibungen faÈllig zu<br />
stellen, erlischt, falls der KuÈndigungsgrund vor<br />
AusuÈbung dieses <strong>Re</strong>chts geheilt wird. Eine<br />
``Wesentliche Tochtergesellschaft'' ist (i) eine<br />
Tochtergesellschaft der Garantin, deren gesamte<br />
VermoÈgensgegenstaÈnde, NettoerloÈse oder<br />
Nettogewinn mindestens 10% der konsolidierten<br />
gesamten VermoÈgensgegenstaÈnde, NettoerloÈse bzw.<br />
des Nettogewinns der Garantin darstellen, wobei<br />
die diesbezuÈglich erforderlichen Berechnungen auf<br />
der Basis des zu diesem Zeitpunkt aktuellen<br />
gepruÈften Jahresabschlusses dieser Tochtergesellschaft<br />
(oder, falls verfuÈgbar, des<br />
konsolidierten gepruÈften Jahresabschlusses) und<br />
des zu diesem Zeitpunkt aktuellen gepruÈften<br />
konsolidierten Jahresabschlusses der Garantin und<br />
ihrer Tochtergesellschaften zu erfolgen haben, oder<br />
(ii) eine Gesellschaft, auf die alle oder im<br />
wesentlichen alle VermoÈgensgegenstaÈnde und der<br />
GeschaÈftsbetrieb einer Tochtergesellschaft der<br />
Garantin uÈbertragen werden, welche unmittelbar<br />
vor dieser UÈ bertragung eine Wesentliche<br />
Tochtergesellschaft im Sinne von (i) war.<br />
(2) Benachrichtigung. (2) Notice.<br />
Eine Benachrichtigung gemaÈû § 9(1) einschlieûlich<br />
einer Benachrichtigung zum Zwecke der KuÈndigung<br />
von Teilschuldverschreibungen ist einer Zahlstelle<br />
in schriftlicher Form zu uÈbergeben oder mittels<br />
eingeschriebenem Brief zuzusenden, jeweils<br />
zusammen mit einer Bescheinigung der Depotbank<br />
des AnleiheglaÈubigers, daû der AnleiheglaÈubiger<br />
zum Zeitpunkt der Abgabe der schriftlichen<br />
Benachrichtigung Inhaber der betreffenden<br />
Teilschuldverschreibungen ist; im Falle des<br />
Verzugs gemaÈû § 9(1)(c) sind zudem die UmstaÈnde<br />
dazulegen, aus denen sich dieser Verzug ergibt.<br />
(3) Wirksamkeit. (3) Effectiveness.<br />
In den FaÈllen des § 9(1)(c) oder (d) wird eine<br />
Benachrichtigung, durch welche die<br />
Teilschuldverschreibungen gekuÈndigt werden, erst<br />
wirksam, wenn bei einer Zahlstelle KuÈndigungserklaÈrungen<br />
von Inhabern von Teilschuldverschreibungen<br />
eingegangen sind, die insgesamt ein<br />
37<br />
(i) it becomes unlawful for the Issuer or the<br />
Guarantor to ful®ll its obligations under the<br />
Bonds or the Undertaking, as the case may be.<br />
The right to declare Bonds due shall terminate if the<br />
situation giving rise to it has been cured before the<br />
right is exercised. ``Material Subsidiary'' means<br />
(i) any subsidiary of the Guarantor whose total<br />
assets, net revenues or net pro®ts represent at least<br />
10% of the consolidated total assets, net revenues or<br />
net pro®ts, as the case may be, of the Guarantor, as<br />
calculated by reference to the then most recent<br />
audited ®nancial statements (or, if available,<br />
consolidated audited ®nancial statements) of such<br />
subsidiary and the then most recent audited<br />
consolidated ®nancial statements of the Guarantor<br />
and its subsidiaries or (ii) to which are transferred<br />
all or substantially all of the assets and undertaking<br />
of a subsidiary of the Guarantor which immediately<br />
prior to such transfer is a Material Subsidiary<br />
pursuant to (i).<br />
Any notice, including any notice declaring Bonds<br />
due, in accordance with § 9(1) shall be made by<br />
means of a written declaration delivered by hand or<br />
registered mail to a Paying Agent together with<br />
evidence by means of a certi®cate of the<br />
Bondholder's depositary bank that the<br />
Bondholder at the time of such written notice is a<br />
holder of the relevant Bonds, and in the case of<br />
default pursuant to § 9(1)(c), together with evidence<br />
specifying such default.<br />
In the event speci®ed in § 9(1)(c) or (d), any notice<br />
declaring Bonds due shall, unless at the time such<br />
notice is received any of the events speci®ed in<br />
§ 9(1)(a), (b), (e), (f), (g), (h) or (i) entitling<br />
Bondholders to declare their Bonds due has<br />
occurred and is continuing, becomes effective only
Zehntel des Gesamtnennbetrags der zu diesem<br />
Zeitpunkt ausstehenden Teilschuldverschreibungen<br />
darstellen, sofern nicht bei deren Eingang zugleich<br />
einer der in § 9(1)(a), (b), (e), (f), (g), (h) oder (i)<br />
bezeichneten FaÈlle, der die AnleiheglaÈubiger zur<br />
KuÈndigung ihrer Teilschuldverschreibungen<br />
berechtigt, vorliegt und fortdauert.<br />
§ 10<br />
(Ersetzung der Emittentin)<br />
(1) Ersetzung. (1) Substitution.<br />
Die Garantin ist jederzeit berechtigt, die Emittentin<br />
entweder durch sich selbst oder durch eine andere<br />
Tochtergesellschaft, an der die Garantin mindestens<br />
90% der Stimmrechte haÈlt, ohne die Zustimmung<br />
der AnleiheglaÈubiger als Hauptschuldnerin in bezug<br />
auf alle Verp¯ichtungen aus und im<br />
Zusammenhang mit den Teilschuldverschreibungen<br />
zu ersetzen (die ``Neue Emittentin''),<br />
sofern:<br />
(a) die Neue Emittentin alle Zustimmungen und<br />
Genehmigungen erhalten hat und in der Lage<br />
ist, alle sich aus oder im Zusammenhang mit<br />
den Teilschuldverschreibungen ergebenden<br />
Verp¯ichtungen ohne Abzug oder Einbehalt<br />
von Steuern oder sonstigen Quellenabgaben zu<br />
erfuÈllen sowie die hierzu erforderlichen BetraÈge<br />
ohne BeschraÈnkungen an die Zahlstellen (§ 13)<br />
zu uÈbertragen;<br />
(b) die Neue Emittentin alle Verp¯ichtungen der<br />
Emittentin aus und im Zusammenhang mit den<br />
Teilschuldverschreibungen uÈbernimmt;<br />
(c) die Bestimmungen von § 1.4 der<br />
Verp¯ichtungserklaÈrung in vollem Umfang<br />
guÈltig und wirksam bleiben, sofern die Neue<br />
Emittentin nicht die Garantin ist; und<br />
(d) die Neue Emittentin sich verp¯ichtet, jedem<br />
AnleiheglaÈubiger alle Steuern, GebuÈhren oder<br />
Abgaben zu erstatten, die ihm infolge der<br />
UÈ bernahme der Verp¯ichtungen der<br />
Emittentin durch die Neue Emittentin<br />
auferlegt werden.<br />
(2) Bekanntmachung. (2) Notice.<br />
Jede solche Ersetzung ist den AnleiheglaÈubigern<br />
gemaÈû § 11 bekanntzumachen.<br />
38<br />
when a Paying Agent has received such notices from<br />
holders of Bonds of at least one tenth in aggregate<br />
nominal amount of the Bonds then outstanding.<br />
§ 10<br />
(Substitution of the Issuer)<br />
The Guarantor shall at any time be entitled, without<br />
the consent of the Bondholders, to substitute the<br />
Issuer either by itself or by another subsidiary in<br />
which the Guarantor holds at least 90% of the<br />
voting rights as principal debtor in respect of all<br />
obligations arising under or in connection with the<br />
Bonds (the ``Substitute Issuer''), provided that:<br />
(a) the Substitute Issuer has received all<br />
authorizations and approvals, and is in a<br />
position, to ful®l all obligations arising under<br />
or in connection with the Bonds without being<br />
obliged to make any deduction or withholding<br />
with respect to any taxes or other duties of<br />
whatever nature to be withheld at source, and<br />
to transfer all amounts which are required<br />
therefor to the Paying Agents (§ 13) without<br />
any restrictions;<br />
(b) the Substitute Issuer assumes all obligations of<br />
the Issuer arising under or in connection with<br />
the Bonds;<br />
(c) if the Substitute Issuer is not the Guarantor,<br />
the provisions of Section 1.4 of the<br />
Undertaking shall remain in full force and<br />
effect; and<br />
(d) the Substitute Issuer undertakes to reimburse<br />
any Bondholder for such taxes, fees or duties<br />
which may be imposed upon it as a<br />
consequence of the assumption of the<br />
obligations of the Issuer by the Substitute<br />
Issuer.<br />
Any such substitution shall be noti®ed to the<br />
Bondholders in accordance with § 11.
(3) Bezugnahmen. (3) <strong>Re</strong>ferences.<br />
Im Falle einer solchen Ersetzung gilt jede<br />
Bezugnahme auf die Emittentin in diesen<br />
Anleihebedingungen als Bezugnahme auf die Neue<br />
Emittentin; § 8 dieser Anleihebedingungen ®ndet<br />
auf die Garantin und ihre Verp¯ichtungen aus der<br />
Verp¯ichtungserklaÈrung sinngemaÈû Anwendung.<br />
§ 11<br />
(Bekanntmachungen)<br />
Alle Bekanntmachungen, welche die Teilschuldverschreibungen<br />
betreffen, werden in folgenden<br />
Zeitungen veroÈffentlicht: (a) einer von den<br />
Bestimmungen der Luxemburger WertpapierboÈrse<br />
anerkannten Zeitung, (b) einer in englischer Sprache<br />
erscheinenden fuÈhrenden Tageszeitung mit<br />
allgemeiner Verbreitung in London, und (c) einer<br />
in deutscher Sprache erscheinenden fuÈhrenden<br />
Tageszeitung mit allgemeiner Verbreitung in<br />
Deutschland. Die Bekanntmachungen werden<br />
unter normalen UmstaÈnden voraussichtlich jeweils<br />
im Luxemburger Wort, der Financial Times und der<br />
BoÈrsen-Zeitung erscheinen. Eine Bekanntmachung<br />
wird fuÈr alle Zwecke am Datum der<br />
VeroÈffentlichung in der von den Bestimmungen<br />
der Luxemburger WertpapierboÈrse anerkannten<br />
Zeitung wirksam.<br />
§ 12<br />
(Begebung weiterer Teilschuldverschreibungen)<br />
Die Emittentin ist berechtigt, jederzeit ohne<br />
Zustimmung der AnleiheglaÈubiger weitere<br />
Teilschuldverschreibungen mit gleicher<br />
Ausstattung (abgesehen von Zinsen, die vor der<br />
Begebung weiterer Teilschuldverschreibungen faÈllig<br />
geworden sind) in der Weise zu begeben, daû sie mit<br />
diesen Teilschuldverschreibungen zusammengefaût<br />
werden, eine einheitliche Anleihe bilden und den<br />
Gesamtnennbetrag der Anleihe entsprechend<br />
erhoÈhen. Der Begriff ``Teilschuldverschreibungen''<br />
umfaût im Falle einer solchen ErhoÈhung auch diese<br />
zusaÈtzlich begebenen Teilschuldverschreibungen.<br />
§ 13<br />
(ErfuÈllungsgehilfen)<br />
(1) Zahlstellen, Umtauschstellen und<br />
Berechnungsstelle.<br />
Morgan Stanley Bank <strong>AG</strong>, Frankfurt am Main, ist<br />
die Hauptzahlstelle (die ``Hauptzahlstelle'') und die<br />
Hauptumtauschstelle (die ``Hauptumtauschstelle''),<br />
und Dexia Banque <strong>International</strong> aÁ Luxembourg,<br />
39<br />
In the event of such substitution, any reference in<br />
these Conditions of Issue to the Issuer shall from<br />
then on be deemed to be references to the Substitute<br />
Issuer and § 8 of these Conditions of Issue shall<br />
apply mutatis mutandis to the Guarantor and its<br />
obligations under the Undertaking.<br />
§ 11<br />
(Notices)<br />
All notices regarding the Bonds shall be published<br />
in the following journals: (a) a newspaper<br />
recognised by the rules of the Luxembourg Stock<br />
Exchange, (b) a leading daily newspaper printed in<br />
the English language and of general circulation in<br />
London, and (c) a leading daily newspaper printed<br />
in the German language and of general circulation<br />
in Germany. It is expected that such notices will<br />
normally be published in the Luxemburger Wort,<br />
the Financial Times and the BoÈrsen-Zeitung. Any<br />
notice will become effective for all purposes on the<br />
date of its publication in the newspaper recognised<br />
by the rules of the Luxembourg Stock Exchange.<br />
§ 12<br />
(Issue of Additional Bonds)<br />
The Issuer shall be entitled, from time to time<br />
without the consent of the Bondholders, to issue<br />
additional bonds with identical terms (except for<br />
any interest due prior to such issue of additional<br />
bonds), so that the same shall be consolidated with,<br />
form a single issue with, and increase the aggregate<br />
principal amount of, the Bonds. The term ``Bonds''<br />
shall, in the event of such increase, also comprise<br />
such additional bonds.<br />
§ 13<br />
(Agents)<br />
(1) Paying Agents, Exchange Agents and<br />
Calculation Agent.<br />
Morgan Stanley Bank <strong>AG</strong>, Frankfurt am Main,<br />
Federal <strong>Re</strong>public of Germany, shall be the Principal<br />
Paying Agent (the ``Principal Paying Agent'') and<br />
the principal exchange agent (the ``Principal
socieÂte anonyme, Luxemburg, Groûherzogtum<br />
Luxemburg, ist die Luxemburger Zahlstelle<br />
(zusammen mit der Hauptzahlstelle die<br />
``Zahlstellen'') und die Luxemburger Umtauschstelle<br />
(zusammen mit der Hauptumtauschstelle die<br />
``Umtauschstellen''). Dexia Banque <strong>International</strong> aÁ<br />
Luxembourg, socieÂte anonyme ist auch die<br />
Berechnungsstelle fuÈr die Berechnung der Anzahl<br />
der Aktien, der Bar- und/oder sonstigen Sachwerte,<br />
die bei AusuÈbung des Umtauschrechts zu liefern<br />
sind, und zustaÈndig fuÈr die Anpassungen und<br />
Bestimmungen gemaÈû §§ 5 und 6 (die<br />
``Berechnungsstelle'' und zusammen mit den<br />
Umtauschstellen und den Zahlstellen die<br />
``ErfuÈllungsgehilfen''). Die Berechnungsstelle ist der<br />
einzige ErfuÈllungsgehilfe, der fuÈr die Bestimmung<br />
der in § 5 vorgesehenen Anpassungen und fuÈr die<br />
sonstigen in den §§ (3)(a), 5(1)(b), 5(3) und 6<br />
vorgesehenen Bestimmungen verantwortlich ist.<br />
Die anderen ErfuÈllungsgehilfen haben keinerlei<br />
Verp¯ichtungen, derartige Bestimmungen<br />
vorzunehmen. Die ErfuÈllungsgehilfen sind von den<br />
BeschraÈnkungen des § 181 BGB und<br />
entsprechenden etwaigen BeschraÈnkungen gemaÈû<br />
dem <strong>Re</strong>cht des Groûherzogtums Luxemburg<br />
befreit. Die Emittentin hat dafuÈr zu sorgen, daû,<br />
solange Teilschuldverschreibungen ausstehen,<br />
immer eine Zahlstelle, eine Umtauschstelle und ein<br />
ErfuÈllungsgehilfe, welcher die Funktionen der<br />
Berechnungsstelle uÈbernimmt, im Groûherzogtum<br />
Luxemburg zur VerfuÈgung stehen, um die ihnen in<br />
diesen Anleihebedingungen zugewiesenen Aufgaben<br />
zu erfuÈllen.<br />
Exchange Agent''), and Dexia Banque<br />
<strong>International</strong>e aÁ Luxembourg, socieÂte anonyme,<br />
Luxembourg, Grand-Duchy of Luxembourg shall<br />
be the Luxembourg paying agent (together with the<br />
Principal Paying Agent, the ``Paying Agents'') and<br />
the Luxembourg exchange agent (together with the<br />
Principal Exchange Agent, the ``Exchange Agents'').<br />
Dexia Banque <strong>International</strong>e aÁ Luxembourg,<br />
socieÂte anonyme shall also be the Calculation<br />
Agent for the purpose of calculating the number<br />
of Shares, cash and/or other property to be<br />
delivered upon the exercise of the Exchange Right<br />
and of making the adjustments and determinations<br />
referred to in §§ 5 and 6 (the ``Calculation Agent'',<br />
and together with the Exchange Agents and the<br />
Paying Agents, the ``Agents''). The Calculation<br />
Agent shall be the sole Agent responsible for<br />
determining the adjustments referred to in § 5 and<br />
making the other determinations referred to in §§<br />
3(3)(a), 5(1)(b), 5(3) and 6. The other Agents shall<br />
have no obligation to make any such<br />
determinations. The Agents shall be exempt from<br />
the restrictions set forth in § 181 of the German<br />
Civil Code and any equivalent restriction under the<br />
laws of the Grand-Duchy of Luxembourg, if<br />
applicable. The Issuer shall procure that for as<br />
long as any Bonds are outstanding, there shall<br />
always be a Paying Agent, an Exchange Agent and<br />
an agent performing the functions of the<br />
Calculation Agent in the Grand-Duchy of<br />
Luxembourg to perform the functions assigned to<br />
them in these Conditions of Issue.<br />
(2) Ersetzung der ErfuÈllungsgehilfen. (2) Substitution of Agents.<br />
Die Emittentin kann jederzeit gemaÈû § 13(2) Satz 4<br />
durch Bekanntmachung gemaÈû § 11 mit einer Frist<br />
von mindestens 30 Tagen einen ErfuÈllungsgehilfen<br />
durch eine andere fuÈhrende Bank mit<br />
HauptgeschaÈftssitz oder einer Zweigniederlassung<br />
in der Bundesrepublik Deutschland bzw. dem<br />
Groûherzogtum Luxemburg als Zahlstelle,<br />
Umtauschstelle bzw. Berechnungsstelle ersetzen.<br />
Jeder ErfuÈllungsgehilfe kann jederzeit durch<br />
KuÈndigung mit einer Frist von mindestens 30<br />
Tagen gegenuÈber der Emittentin und den anderen<br />
ErfuÈllungsgehilfen von seinem Amt zuruÈcktreten.<br />
Dieser RuÈcktritt wird jedoch fruÈhestens 30 Tage<br />
nach einer entsprechenden Bekanntmachung der<br />
Emittentin gemaÈû § 11 uÈber die Ernennung einer<br />
fuÈhrenden Bank mit HauptgeschaÈftssitz oder einer<br />
Zweigniederlassung in der Bundesrepublik<br />
Deutschland bzw. dem Groûherzogtum<br />
Luxemburg als neue Zahlstelle, Umtauschstelle<br />
bzw. Berechnungsstelle wirksam.<br />
40<br />
The Issuer may at any time, subject to § 13(2)<br />
sentence 4, by giving not less than 30 days notice in<br />
accordance with § 11, replace an Agent by another<br />
leading bank maintaining its head of®ce or a branch<br />
in the Federal <strong>Re</strong>public of Germany or the Grand-<br />
Duchy of Luxembourg, as the case may be, as<br />
Paying Agent, Exchange Agent or Calculation<br />
Agent, as the case may be. Each Agent may at<br />
any time resign from of®ce by giving not less than<br />
30 days' notice to the Issuer and the other Agents.<br />
However, such resignation shall become effective<br />
only upon the appointment by the Issuer of a<br />
leading bank maintaining its head of®ce or a branch<br />
in the Federal <strong>Re</strong>public of Germany or the Grand-<br />
Duchy of Luxembourg, as the case may be, as new<br />
Paying Agent, Exchange Agent or Calculation<br />
Agent, as the case may be, and the giving of not<br />
less than 30 days' notice of any such appointment in<br />
accordance with § 11.
(3) Kein AuftragsverhaÈltnis. (3) No <strong>Re</strong>lationship of Agency.<br />
Die ErfuÈllungsgehilfen handeln in ihrer jeweiligen<br />
Eigenschaft ausschlieûlich als ErfuÈllungsgehilfen<br />
der Emittentin und stehen in dieser Eigenschaft<br />
nicht in einem Auftrags- oder TreuhandverhaÈltnis<br />
zu den AnleiheglaÈubigern.<br />
(4) Berechnungen. (4) Calculations.<br />
Alle von einem ErfuÈllungsgehilfen gemaÈû diesen<br />
Anleihebedingungen getaÈtigten Bestimmungen und<br />
Berechnungen sind fuÈr alle beteiligten Parteien<br />
(einschlieûlich der AnleiheglaÈubiger) endguÈltig und<br />
bindend, auûer im Falle eines offensichtlichen<br />
Irrtums.<br />
§ 14<br />
(Verschiedenes)<br />
(1) Anwendbares <strong>Re</strong>cht. (1) Applicable Law.<br />
Die Teilschuldverschreibungen unterliegen<br />
deutschem <strong>Re</strong>cht.<br />
The Agents in such capacities are acting exclusively<br />
as agent of the Issuer and in such capacities do not<br />
have any relationship of agency or trust with the<br />
Bondholders.<br />
Any determinations and calculations made by any<br />
Agent in accordance with these Conditions of Issue<br />
shall be conclusive and binding on all parties<br />
concerned (including, but not limited to, the<br />
Bondholders), save for manifest error.<br />
§ 14<br />
(Miscellaneous)<br />
The Bonds shall be governed by and construed in<br />
accordance with German law.<br />
(2) Gerichtsstand. (2) Place of Jurisdiction.<br />
Gerichtsstand fuÈr alle <strong>Re</strong>chtsstreitigkeiten aus oder<br />
im Zusammenhang mit diesen Anleihebedingungen<br />
ist Frankfurt am Main.<br />
Place of jurisdiction for all proceedings arising from<br />
matters governed by these Conditions of Issue shall<br />
be Frankfurt am Main.<br />
(3) ErfuÈllungsort. (3) Place of Performance.<br />
ErfuÈllungsort ist Frankfurt am Main. Place of performance shall be Frankfurt am Main.<br />
(4) Geltendmachung von AnspruÈchen. (4) Enforcement.<br />
Jeder AnleiheglaÈubiger kann in <strong>Re</strong>chtsstreitigkeiten<br />
gegen die Emittentin oder die Garantin oder in<br />
<strong>Re</strong>chtsstreitigkeiten, an denen der AnleiheglaÈubiger,<br />
die Emittentin oder die Garantin beteiligt ist, im<br />
eigenen Namen seine <strong>Re</strong>chte aus den von ihm<br />
gehaltenen Teilschuldverschreibungen geltendmachen<br />
und durchsetzen auf der Grundlage (a)<br />
einer Bescheinigung seiner Depotbank (wie<br />
nachstehend de®niert), (i) die den vollen Namen<br />
und die volle Anschrift des AnleiheglaÈubigers<br />
enthaÈlt, (ii) den Gesamtnennbetrag der<br />
Teilschuldverschreibungen, die am Ausstellungstag<br />
dieser Bescheinigung dem bei dieser Depotbank<br />
unterhaltenen Depot des AnleiheglaÈubigers<br />
gutgeschrieben sind, angibt und (iii) bestaÈtigt, daû<br />
die Depotbank der Clearstream Frankfurt und einer<br />
Zahlstelle (§ 13) eine schriftliche Mitteilung gemacht<br />
hat, welche die Angaben gemaÈû (i) und (ii) enthaÈlt<br />
und BestaÈtigungsvermerke der Clearstream<br />
Frankfurt und des betreffenden Kontoinhabers<br />
traÈgt, und (b) einer Kopie der Globalurkunde,<br />
41<br />
Any Bondholder may in any proceedings against<br />
the Issuer or the Guarantor or to which the<br />
Bondholder, the Issuer or the Guarantor are<br />
parties protect and enforce in its own name its<br />
rights arising under its Bonds on the basis of (a) a<br />
certi®cate issued by its Depository Bank (as de®ned<br />
below) (i) stating the full name and address of the<br />
Bondholder, (ii) specifying the aggregate nominal<br />
amount of Bonds credited on the date of such<br />
statement to the Bondholder's account with such<br />
Depository Bank and (iii) con®rming that the<br />
Depository Bank has given a written notice to<br />
Clearstream Frankfurt and a Paying Agent (§ 13)<br />
containing the information pursuant to (i) and (ii)<br />
and bearing acknowledgements of Clearstream<br />
Frankfurt and the relevant accountholder, and (b)<br />
a copy of the Global Certi®cate certi®ed as being a<br />
true copy by a duly authorized of®cer of<br />
Clearstream Frankfurt. For purposes of the<br />
foregoing, ``Depository Bank'' means any bank or<br />
other ®nancial institution authorized to engage in
deren UÈ bereinstimmung mit dem Original der<br />
Globalurkunde von einem Vertretungsberechtigten<br />
der Clearstream Frankfurt bestaÈtigt wird. Im Sinne<br />
der vorstehenden Bestimmungen bedeutet<br />
``Depotbank'' eine Bank oder ein anderes<br />
Finanzinstitut mit einer Genehmigung fuÈr das<br />
Wertpapier-DepotgeschaÈft, bei dem der<br />
AnleiheglaÈubiger ein Wertpapierdepot unterhaÈlt,<br />
auf dem Teilschuldverschreibungen verbucht sind;<br />
dieser Begriff schlieût Clearstream Frankfurt,<br />
Clearstream Luxemburg und Euroclear ein.<br />
(5) Teilunwirksamkeit. (5) Severability.<br />
Sollte eine der Bestimmungen dieser Anleihebedingungen<br />
ganz oder teilweise unwirksam oder<br />
undurchfuÈhrbar sein oder werden, so bleibt die<br />
Wirksamkeit oder DurchfuÈhrbarkeit der uÈbrigen<br />
Bestimmungen hiervon unberuÈhrt. In diesem Fall<br />
soll anstelle der unwirksamen Bestimmung, soweit<br />
rechtlich moÈglich, eine dem Sinn und<br />
wirtschaftlichen Zweck dieser Anleihebedingungen<br />
zum Zeitpunkt der Begebung der Teilschuldverschreibungen<br />
entsprechende Bestimmung treten.<br />
Sollten diese Anleihebedingungen eine LuÈcke<br />
enthalten, ist eine ergaÈnzende Auslegung, die dem<br />
Sinn und Zweck dieser Anleihebedingungen<br />
entspricht, unter angemessener BeruÈcksichtigung<br />
der berechtigten Interessen der beteiligten Parteien<br />
vorzunehmen.<br />
§ 15<br />
(Sprache)<br />
Allein der deutsche Wortlaut dieser<br />
Anleihebedingungen ist rechtsverbindlich. Die<br />
englische UÈ bersetzung dient nur der Information.<br />
42<br />
securities custody business with which the<br />
Bondholder maintains a securities account in<br />
respect of any Bonds and includes Clearstream<br />
Frankfurt, Clearstream Luxembourg and<br />
Euroclear.<br />
Should any of the provisions of these Conditions of<br />
Issue be or become invalid or unenforceable in<br />
whole or in part, the validity or the enforceability of<br />
the remaining provisions shall not in any way be<br />
affected or impaired thereby. In this case, the<br />
invalid provision shall be replaced by a provision<br />
which, to the extent legally possible, provides for an<br />
interpretation in line with the meaning and the<br />
economic purposes of the Conditions of Issue at the<br />
time of the issue of the Bonds. Under circumstances<br />
in which these Conditions of Issue prove to be<br />
incomplete, a supplementary interpretation in<br />
accordance with the meaning and the purposes of<br />
these Conditions of Issue under due consideration<br />
of the legitimate interest of the parties involved shall<br />
be applied.<br />
§ 15<br />
(Language)<br />
The German version of these Conditions of Issue<br />
shall be the only legally binding version. The<br />
English translation is for convenience only.
CONDITIONS OF ISSUE<br />
OF THE BONDS EXCHANGEABLE FOR AVENTIS SHARES<br />
ANLEIHEBEDINGUNGEN CONDITIONS OF ISSUE<br />
§1<br />
(StuÈckelung, Verbriefung und<br />
Girosammelverwahrung)<br />
(1) StuÈckelung. (1) Denomination.<br />
Die <strong>ERGO</strong> <strong>International</strong> Aktiengesellschaft,<br />
DuÈsseldorf (die ``Emittentin''), begibt eine 0,75%<br />
garantierte Umtauschanleihe im Gesamtnennbetrag<br />
von<br />
e 345.000.000 (in Worten: Euro dreihundertfuÈnfundvierzig<br />
Millionen)<br />
eingeteilt in 34.500 untereinander gleichrangige<br />
Teilschuldverschreibungen mit einem Nennbetrag<br />
von jeweils e 10.000 (die ``Teilschuldverschreibungen'').<br />
(2) Verbriefung. (2) Form.<br />
Die Teilschuldverschreibungen werden durch eine<br />
auf den Inhaber lautende Globalurkunde (die<br />
``Globalurkunde'') ohne Zinsscheine verbrieft.<br />
Effektive Urkunden uÈber einzelne Teilschuldverschreibungen<br />
und Zinsscheine werden<br />
nicht ausgegeben. Eine Kopie der Globalurkunde<br />
ist fuÈr die AnleiheglaÈubiger (jeweils ein<br />
``AnleiheglaÈubiger'') bei den GeschaÈftsstellen der<br />
Zahlstellen (§ 13) kostenlos erhaÈltlich.<br />
§1<br />
(Denomination, Form and Clearing)<br />
<strong>ERGO</strong> <strong>International</strong> Aktiengesellschaft, DuÈsseldorf<br />
(the ``Issuer''), issues 0.75% guaranteed<br />
exchangeable bonds in the aggregate principal<br />
amount of<br />
e 345,000,000 (in words: Euro three hundred and<br />
forty-®ve million)<br />
divided into 34,500 bonds with a nominal amount<br />
of e 10,000 each which rank pari passu among<br />
themselves (the ``Bonds'').<br />
The Bonds are represented by a global certi®cate<br />
(the ``Global Certi®cate'') payable to bearer without<br />
interest coupons. De®nitive certi®cates representing<br />
individual Bonds and interest coupons shall not be<br />
issued. A copy of the Global Certi®cate is available<br />
to the holders of the bonds (each, a ``Bondholder'')<br />
free of charge at the of®ces of the Paying Agents<br />
(§ 13).<br />
(3) Girosammelverwahrung. (3) Custody and Clearing.<br />
Die Globalurkunde wird bis zur vollstaÈndigen<br />
ErfuÈllung saÈmtlicher Verp¯ichtungen der<br />
Emittentin aus den Teilschuldverschreibungen von<br />
der Clearstream Banking <strong>AG</strong>, Frankfurt am Main<br />
(``Clearstream Frankfurt''), verwahrt. Die<br />
Teilschuldverschreibungen sind durch<br />
entsprechende Depotbuchungen gemaÈû den<br />
jeweiligen Bestimmungen von Clearstream<br />
Frankfurt und, auûerhalb der Bundesrepublik<br />
Deutschland, Clearstream Banking S.A.,<br />
Luxemburg (``Clearstream Luxemburg''), und<br />
Euroclear Bank S.A/N.V., BruÈssel (``Euroclear''),<br />
uÈbertragbar.<br />
§2<br />
(Verzinsung)<br />
The Global Certi®cate will be kept in custody with<br />
Clearstream Banking <strong>AG</strong>, Frankfurt am Main<br />
(``Clearstream Frankfurt''), until all obligations of<br />
the Issuer under the Bonds have been satis®ed. The<br />
Bonds shall be transferable by appropriate entries in<br />
securities accounts in accordance with applicable<br />
rules of Clearstream Frankfurt and, outside the<br />
Federal <strong>Re</strong>public of Germany, of Clearstream<br />
Banking S.A., Luxembourg (``Clearstream<br />
Luxembourg''), and Euroclear Bank S.A/N.V.,<br />
Brussels (``Euroclear'').<br />
§2<br />
(Interest)<br />
(1) Zinssatz und Zinszahlungstage. (1) Interest Rate and Interest Payment Dates.<br />
Die Teilschuldverschreibungen werden vom<br />
14. September 2001 (der ``Ausgabetag'') an mit<br />
einem Zinssatz von 0,75% p.a. auf den Nennbetrag<br />
43<br />
The Bonds shall bear interest on their principal<br />
amount at the rate of 0.75% per annum from<br />
September 14, 2001 (the ``Issue Date''). Interest
verzinst. Die Zinsen sind jaÈhrlich nachtraÈglich<br />
jeweils am 14. September eines jeden Jahres zu<br />
zahlen (jeweils ein ``Zinszahlungstag''),<br />
beginnend am 14. September 2002. Der letzte<br />
Zinszahlungstag ist der 14. September 2006 (sofern<br />
nicht die Teilschuldverschreibungen zu einem<br />
fruÈheren Zeitpunkt zuruÈckgezahlt oder<br />
umgetauscht werden). Der Zinslauf endet mit<br />
Beginn des Tages, an dem die<br />
Teilschuldverschreibungen zur RuÈckzahlung faÈllig<br />
werden, oder, bei AusuÈbung des Umtauschrechts<br />
(§ 5(1)(a)), mit Beginn des dem Umtauschtag<br />
(§ 5(2)(a)) unmittelbar vorangehenden<br />
Zinszahlungstages bzw. des Ausgabetages, sofern<br />
es bis dahin keinen Zinszahlungstag gegeben hat.<br />
(2) Verzug. (2) Late Payment.<br />
Sofern die Emittentin Teilschuldverschreibungen<br />
bei FaÈlligkeit nicht gemaÈû § 3 tilgt, werden die zu<br />
tilgenden Teilschuldverschreibungen ±<br />
ausgenommen im Falle des § 4(2) ± vom<br />
FaÈlligkeitstag bis zum Tag der tatsaÈchlichen<br />
RuÈckzahlung weiterhin mit einem Zinssatz von<br />
0,75% p.a. auf ihren Nennbetrag verzinst.<br />
(3) Zinstagequotient. (3) Accrued Interest.<br />
Zinsen, die fuÈr einen Zeitraum von weniger als<br />
einem Jahr zu berechnen sind, werden auf der<br />
Grundlage der tatsaÈchlich verstrichenen Tage,<br />
dividiert durch 365 bzw. 366 (tatsaÈchliche Anzahl<br />
der Tage im jeweiligen Zinsjahr), berechnet.<br />
§ 3<br />
(FaÈlligkeit, Vorzeitige RuÈckzahlung)<br />
(1) FaÈlligkeit. (1) Maturity.<br />
Die Teilschuldverschreibungen sind am<br />
14. September 2006 zum Nennbetrag zuruÈckzuzahlen,<br />
sofern sie nicht vorher zuruÈckgezahlt,<br />
umgetauscht oder gemaÈû § 3(2) gekauft und<br />
entwertet werden.<br />
(2) RuÈckerwerb. (2) <strong>Re</strong>purchase.<br />
Die Emittentin, die Garantin (§ 8) oder ein mit<br />
ihnen verbundenes Unternehmen ist jederzeit<br />
berechtigt, Teilschuldverschreibungen im Markt<br />
oder auf andere Weise zu erwerben. Auf diese<br />
Weise ruÈckerworbene Teilschuldverschreibungen<br />
koÈnnen gehalten, entwertet oder weiterverkauft<br />
werden.<br />
(3) Vorzeitige RuÈckzahlung. (3) Early <strong>Re</strong>dmeption.<br />
(a) Die Emittentin ist berechtigt, die<br />
Teilschuldverschreibungen insgesamt oder<br />
44<br />
shall be payable annually in arrears on September<br />
14 of each year (each, an ``Interest Payment Date''),<br />
commencing on September 14, 2002. The last<br />
Interest Payment Date shall be September 14,<br />
2006 (unless the Bonds are previously redeemed or<br />
exchanged). Interest shall cease to accrue as of the<br />
beginning of the day on which the Bonds become<br />
due for redemption, or, when the Exchange Right<br />
(§ 5(1)(a)) shall have been exercised, as of the<br />
beginning of the Interest Payment Date<br />
immediately preceding the Exchange Date<br />
(§ 5(2)(a)), or, if there was no Interest Payment<br />
Date, the Issue Date.<br />
Should the Issuer fail to redeem Bonds when due<br />
pursuant to § 3, interest shall, except in the case<br />
referred to in § 4(2), continue to accrue on the<br />
principal amount of the Bonds to be redeemed from<br />
such due date until the date of actual redemption of<br />
the Bonds at the rate of 0.75% per annum.<br />
If interest is to be calculated for a period of less than<br />
a full year, such interest shall be calculated on the<br />
basis of the actual number of days elapsed, divided<br />
by 365 or 366 (actual number of days in the<br />
respective annual interest period).<br />
§ 3<br />
(Maturity, Early <strong>Re</strong>demption)<br />
The Bonds shall be redeemed at their principal<br />
amount on September 14, 2006, unless previously<br />
redeemed, exchanged or purchased in accordance<br />
with § 3 (2) and cancelled.<br />
The Issuer, the Guarantor (§ 8) or any of their<br />
af®liates may at any time purchase Bonds in the<br />
open market or otherwise. Bonds so repurchased<br />
may be held, cancelled or resold.<br />
(a) The Issuer may, on giving no less than 30 and<br />
no more than 60 days' notice in accordance
teilweise durch Bekanntmachung gemaÈû § 11<br />
mit einer Frist von mindestens 30 und<br />
hoÈchstens 60 Tagen zum Nennbetrag<br />
zuzuÈglich aufgelaufener Zinsen zuruÈckzuzahlen,<br />
wenn der Schluûkurs (wie<br />
nachstehend de®niert) der Aktien (§ 5(1)(a))<br />
(zuzuÈglich gemaÈû § 6 zahlbarer BarbetraÈge und<br />
dem Wert von gemaÈû § 6 zu liefernder<br />
VermoÈgenswerte und zuzuÈglich dem Wert von<br />
gemaÈû § 5(6) zu liefernder Aktien) an mehr als<br />
20 Handelstagen (jeweils ein ``BoÈrsentag'') an<br />
dem von Euronext Paris S.A. betriebenen<br />
Premier Marche (``Euronext Paris'') innerhalb<br />
eines Zeitraums von 30 aufeinanderfolgenden<br />
BoÈrsentagen, der am fuÈnften BoÈrsentag vor<br />
einer solchen Bekanntmachung endet, 130%<br />
des zu diesem Zeitpunkt guÈltigen<br />
Umtauschwertes (§ 5(1)(b)) uÈbersteigt; eine<br />
teilweise RuÈckzahlung der Teilschuldverschreibungen<br />
ist jedoch nur zulaÈssig,<br />
sofern (i) diese sich auf Teilschuldverschreibungen<br />
in einem Gesamtnennbetrag<br />
von mindestens e 100.000.000 bezieht und (ii)<br />
den Gesamtnennbetrag der nach dieser<br />
RuÈckzahlung ausstehenden Teilschuldverschreibungen<br />
nicht auf weniger als<br />
e 50.000.000 verringert. Die<br />
Bekanntmachung der vorzeitigen<br />
RuÈckzahlung der Teilschuldverschreibungen<br />
ist unwiderru¯ich. Der in der<br />
Bekanntmachung als RuÈckzahlungstag<br />
angegebene Tag darf nicht vor dem<br />
28. September 2004 liegen. FaÈllt der<br />
RuÈckzahlungstag in einen NichtausuÈbungszeitraum<br />
(§ 5(4)) oder in einen<br />
Zeitraum von 10 Tagen nach dem Ende eines<br />
NichtausuÈbungszeitraums, so verschiebt sich<br />
der RuÈckzahlungstag auf den zehnten<br />
Bankarbeitstag (§ 4(2)) nach dem Ende dieses<br />
NichtausuÈbungszeitraums. Die Bekanntmachung<br />
hat den RuÈckzahlungstag sowie die<br />
UmstaÈnde zu bezeichnen, aufgrund derer die<br />
Emittentin zur RuÈckzahlung der<br />
Teilschuldverschreibungen berechtigt ist. Im<br />
Falle einer teilweisen RuÈckzahlung werden die<br />
zuruÈckzuzahlenden Teilschuldverschreibungen<br />
anteilsmaÈûig bestimmt oder, soweit dies nicht<br />
moÈglich ist, per Zufallsauswahl durch<br />
Clearstream Frankfurt gemaÈû dem von<br />
Clearstream Frankfurt fuÈr diesen Zweck<br />
festgesetzten Verfahren ermittelt.<br />
``Schluûkurs'' bedeutet im Hinblick auf einen<br />
BoÈrsentag, an dem die Aktien an Euronext Paris<br />
notiert sind, der Kurs der Aktien am Schluû dieses<br />
BoÈrsentages. Falls die Aktien nicht an Euronext<br />
45<br />
with § 11, redeem the Bonds, in whole or in<br />
part, at their principal amount plus interest<br />
accrued thereon, if the Closing Price (as<br />
de®ned below) of the Shares (§ 5(1)(a)) (plus<br />
any cash amounts payable, and the value of<br />
any property deliverable, pursuant to § 6 and<br />
plus the value of any shares deliverable<br />
pursuant to § 5(6)) exceeds on more than 20<br />
trading days (each, a ``Stock Exchange Trading<br />
Day'') on the Premier Marche managed by<br />
Euronext Paris S.A. (``Euronext Paris'') during<br />
a period of 30 consecutive Stock Exchange<br />
Trading Days ending on the ®fth Stock<br />
Exchange Trading Day preceding such notice<br />
130% of the then-applicable Exchange Price<br />
(§ 5(1)(b)); provided, however, that any partial<br />
redemption of Bonds shall (i) relate to Bonds<br />
with an aggregate principal amount of at least<br />
e 100,000,000 and (ii) not reduce the aggregate<br />
principal amount of the Bonds outstanding<br />
after such redemption to less than<br />
e 50,000,000. Such notice of early<br />
redemption shall be irrevocable. The date<br />
speci®ed in such notice as date of redemption<br />
shall not fall earlier than on September 28,<br />
2004. If the date of redemption falls within an<br />
Excluded Period (§ 5(4)) or the ten days<br />
following the end of an Excluded Period, the<br />
date of redemption will be postponed to the<br />
tenth Business Day (§ 4(2)) following the end<br />
of such Excluded Period. Such notice shall<br />
state the date of redemption and the facts<br />
which establish the right of the Issuer so to<br />
redeem the Bonds. In the case of a partial<br />
redemption, the Bonds to be redeemed will be<br />
selected on a pro rata basis or, where this is not<br />
possible, by random selection by Clearstream<br />
Frankfurt in accordance with the procedures<br />
established by Clearstream Frankfurt for such<br />
purpose.<br />
``Closing Price'' means, with respect to a Stock<br />
Exchange Trading Day on which the Shares are<br />
quoted on Euronext Paris, the price for the Shares<br />
on Euronext Paris at the close of such Stock
Paris notiert sind, sind die entsprechenden<br />
Notierungen oder Kurse an der wichtigsten<br />
WertpapierboÈrse zu verwenden, an der die Aktien<br />
gehandelt werden. Falls die Aktien nicht<br />
anderweitig zum BoÈrsenhandel zugelassen sind,<br />
bestimmt die Berechnungsstelle (§ 13) den<br />
Schluûkurs auf der Grundlage anderer<br />
Notierungen oder Informationen, die sie fuÈr<br />
maûgeblich haÈlt.<br />
(b) Die Emittentin ist berechtigt, die<br />
Teilschuldverschreibungen mittels Bekanntmachung<br />
gemaÈû § 11 mit einer Frist von<br />
mindestens 30 und hoÈchstens 60 Tagen<br />
insgesamt zum Nennbetrag zuzuÈglich<br />
aufgelaufener Zinsen zuruÈckzuzahlen, wenn<br />
der Gesamtnennbetrag der am Tag der<br />
Bekanntmachung ausstehenden Teilschuldverschreibungen<br />
10% oder weniger des<br />
Gesamtnennbetrags der urspruÈnglich<br />
ausgegebenen Teilschuldverschreibungen<br />
entspricht.<br />
§ 4<br />
(Zahlungen)<br />
Exchange Trading Day. If the Shares are not<br />
quoted on Euronext Paris, the respective quotations<br />
or prices on the principal securities exchange on<br />
which the Shares are quoted shall be used. In the<br />
absence of such quotation, the Calculation Agent<br />
(§ 13) shall determine the Closing Price on the basis<br />
of such quotations or other information as it<br />
considers appropriate.<br />
(b) The Issuer may, on giving no less than 30 and<br />
no more than 60 days' notice in accordance<br />
with § 11, redeem the Bonds in whole at their<br />
principal amount together with interest<br />
accrued thereon, if the aggregate principal<br />
amount of the Bonds outstanding on the date<br />
the notice is given is equal to or less than 10%<br />
of the aggregate principal amount of the Bonds<br />
that were initially issued.<br />
§ 4<br />
(Payments)<br />
(1) Zahlungen von Kapital und Zinsen. (1) Payments of Principal and Interest.<br />
Zahlungen von Kapital und Zinsen auf die<br />
Teilschuldverschreibungen sind in Euro am<br />
entsprechenden Zahlungstag (§ 4(3)) an<br />
Clearstream Frankfurt oder entsprechend deren<br />
Anweisung zu leisten. SaÈmtliche Zahlungen, die an<br />
Clearstream Frankfurt oder entsprechend deren<br />
Anweisung geleistet werden, befreien die<br />
Emittentin von ihren Verbindlichkeiten aus den<br />
Teilschuldverschreibungen in HoÈhe der geleisteten<br />
Zahlungen.<br />
(2) Bankarbeitstage. (2) Business Days.<br />
FaÈllt ein FaÈlligkeitstag fuÈr Zahlungen von Kapital<br />
oder Zinsen auf die Teilschuldverschreibungen auf<br />
einen Tag, an dem Clearstream Frankfurt und die<br />
Banken in Frankfurt am Main nicht fuÈr den<br />
GeschaÈftsverkehr geoÈffnet sind und keine<br />
Zahlungen in Euro abwickeln (jeweils ein<br />
``Bankarbeitstag''), erfolgt die betreffende Zahlung<br />
erst am naÈchstfolgenden Bankarbeitstag, ohne daû<br />
im Hinblick auf die Verschiebung der Zahlung<br />
zusaÈtzliche Zinsen oder sonstige BetraÈge geschuldet<br />
werden.<br />
(3) Zahlungstag. (3) Payment Date.<br />
Im Sinne dieser Anleihebedingungen ist ein<br />
``Zahlungstag'' ein Tag, an dem, gegebenenfalls<br />
aufgrund einer Verschiebung gemaÈû § 4(2), eine<br />
Zahlung zu leisten ist.<br />
46<br />
Payments of principal of, and interest on, the Bonds<br />
shall be made in Euro on the relevant Payment Date<br />
(§ 4(3)) to, or to the order of, Clearstream<br />
Frankfurt. All payments made to Clearstream<br />
Frankfurt or to its order shall discharge the<br />
liability of the Issuer under the Bonds to the<br />
extent of the sums so paid.<br />
If any due date for payment of principal of, or<br />
interest on, the Bonds is not a day on which<br />
Clearstream Frankfurt and banks in Frankfurt am<br />
Main are open for business and settle payments in<br />
Euro (each, a ``Business Day''), such payment will<br />
not be made until the next following Business Day,<br />
and no further interest or other amount shall be<br />
owed in respect of the delay in such payment.<br />
For the purposes of these Conditions of Issue,<br />
``Payment Date'' means any day on which a<br />
payment is to be made, where applicable as<br />
adjusted in accordance with § 4(2).
(4) Hinterlegung bei Gericht. (4) Depositing in Court.<br />
Die Emittentin kann BetraÈge an Kapital und Zinsen<br />
sowie alle anderen gegebenenfalls auf die<br />
Teilschuldverschreibungen zu zahlenden BetraÈge,<br />
deren Zahlung von den AnleiheglaÈubigern nicht<br />
innerhalb von zwoÈlf Monaten nach deren FaÈlligkeit<br />
geltend gemacht worden ist, beim Amtsgericht in<br />
Frankfurt am Main hinterlegen. Soweit die<br />
Emittentin auf das <strong>Re</strong>cht zur RuÈcknahme der<br />
hinterlegten BetraÈge verzichtet, erloÈschen die<br />
betreffenden AnspruÈche der AnleiheglaÈubiger<br />
gegen die Emittentin.<br />
The Issuer may deposit with the lower court<br />
(Amtsgericht) in Frankfurt am Main amounts of<br />
principal, interest and all other amounts due under<br />
the Bonds, if any, not claimed by Bondholders<br />
within twelve months after the date on which such<br />
amounts have become due. To the extent that the<br />
Issuer waives its right to withdraw such deposit, the<br />
relevant claim of the Bondholders against the Issuer<br />
shall cease.<br />
§ 5 (Umtauschrecht) § 5 (Exchange Right)<br />
(1) Umtauschrecht, Umtauschfrist und<br />
Umtauschwert.<br />
(a) Jeder AnleiheglaÈubiger hat waÈhrend der<br />
nachstehend bezeichneten Umtauschfrist,<br />
vorbehaltlich der ErfuÈllung der<br />
Bestimmungen dieses § 5, jederzeit das <strong>Re</strong>cht<br />
(das ``Umtauschrecht''), seine Teilschuldverschreibungen<br />
gegen voll eingezahlte und<br />
mit voller Dividendenberechtigung ausgestattete<br />
Stammaktien mit einem Nennwert<br />
von e 3,82 je Aktie (die ``Aktien'') der Aventis<br />
S.A. (die ``Gesellschaft'') in fuÈr die ErfuÈllung<br />
von GeschaÈften an Euronext Paris lieferbarer<br />
Form umzutauschen. Nach AusuÈbung des<br />
Umtauschrechts gemaÈû § 5(2)(a) erlischt das<br />
<strong>Re</strong>cht eines AnleiheglaÈubigers auf<br />
RuÈckzahlung der Teilschuldverschreibungen<br />
im Hinblick auf diejenigen Teilschuldverschreibungen,<br />
fuÈr welche das Umtauschrecht<br />
ausgeuÈbt worden ist, und wird durch das <strong>Re</strong>cht<br />
auf Lieferung der Aktien gemaÈû § 5 ersetzt.<br />
Die ``Umtauschfrist'' ist der Zeitraum vom<br />
1. Januar 2002 bis zum 1. September 2006<br />
(jeweils einschlieûlich). Wenn jedoch<br />
Teilschuldverschreibungen vor dem<br />
1. September 2006 gemaÈû § 3(3) zur<br />
RuÈckzahlung gekuÈndigt werden, endet die<br />
Umtauschfrist fuÈr die der RuÈckzahlung<br />
unterliegenden Teilschuldverschreibungen mit<br />
Ablauf des fuÈnften Bankarbeitstages vor dem<br />
Tag der RuÈckzahlung, es sei denn, die<br />
Emittentin verletzt ihre P¯icht zur<br />
RuÈckzahlung dieser Teilschuldverschreibungen<br />
bei FaÈlligkeit gemaÈû § 3.<br />
(b) Der Gegenwert, zu dem die Aktien von der<br />
Emittentin an die AnleiheglaÈubiger bei<br />
AusuÈbung des Umtauschrechts geliefert<br />
werden (der ``Umtauschwert''), betraÈgt e 98,50<br />
47<br />
(1) Exchange Right, Exchange Period and<br />
Exchange Price.<br />
(a) At any time during the Exchange Period<br />
referred to below and subject to compliance<br />
with the provisions of this § 5, each<br />
Bondholder has the right (the ``Exchange<br />
Right'') to exchange its Bonds for fully paidin<br />
ordinary shares having full dividend<br />
entitlement and with a nominal value of<br />
e 3.82 per share (the ``Shares'') of Aventis<br />
S.A. (the ``Company'') in a form that enables<br />
good delivery for settlement of transactions on<br />
Euronext Paris. Upon exercise of the Exchange<br />
Right in accordance with § 5(2)(a), the<br />
Bondholder's right to have the Bonds<br />
redeemed shall cease with respect to those<br />
Bonds for which the Exchange Right has been<br />
exercised and shall be replaced by the right to<br />
demand delivery of Shares as provided for in<br />
this § 5. The ``Exchange Period'' shall be the<br />
period from and including January 1, 2002 to<br />
and including September 1, 2006, provided<br />
that, if the Bonds have been called for<br />
redemption pursuant to § 3(3) prior to<br />
September 1, 2006, the Exchange Period with<br />
respect to the Bonds that are subject to<br />
redemption shall expire at the end of the ®fth<br />
Business Day preceding the date of redemption<br />
unless the Issuer fails to redeem such Bonds<br />
when due pursuant to § 3.<br />
(b) The price at which Shares will be delivered by<br />
the Issuer to Bondholders upon exercise of the<br />
Exchange Right (the ``Exchange Price'') will be<br />
e 98.50 per Share. The Exchange Price may be
je Aktie. Der Umtauschwert kann auf die in<br />
§ 5(3) geregelte Art und Weise angepasst<br />
werden. Die Anzahl der bei Umtausch einer<br />
Teilschuldverschreibung zu liefernden Aktien<br />
ergibt sich durch Teilung des Nennbetrags<br />
jeder Teilschuldverschreibung durch den am<br />
Umtauschtag (§ 5(2)(a)) geltenden Umtauschwert.<br />
Das Ergebnis dieser Teilung ist auf die<br />
vierte Dezimalstelle zu runden, wobei 0,00005<br />
aufgerundet werden, so daû, vorbehaltlich<br />
einer Anpassung des Umtauschwertes, fuÈr<br />
jede Teilschuldverschreibung 101,5228 Aktien<br />
geliefert werden. Wenn ein AnleiheglaÈubiger<br />
das Umtauschrecht gleichzeitig hinsichtlich<br />
mehrerer Teilschuldverschreibungen ausuÈbt,<br />
errechnet sich die Anzahl der zu liefernden<br />
Aktien auf der Basis des Gesamtnennbetrags<br />
dieser Teilschuldverschreibungen.<br />
(c) Das Umtauschrecht kann von einem<br />
AnleiheglaÈubiger nicht mehr ausgeuÈbt<br />
werden, wenn bei einer Zahlstelle (§ 13) in<br />
bezug auf die von diesem AnleiheglaÈubiger<br />
gehaltenen Teilschuldverschreibungen eine<br />
Benachrichtigung zum Zwecke der<br />
KuÈndigung gemaÈû § 9(2) eingegangen ist.<br />
subject to adjustments in the manner provided<br />
in § 5(3). The number of Shares to be delivered<br />
upon exchange of a Bond will be determined<br />
by dividing the principal amount of each Bond<br />
by the Exchange Price applicable on the<br />
Exchange Date (§ 5(2)(a)). The result of such<br />
division shall be rounded to the fourth decimal<br />
place, with 0.00005 being rounded upwards; so<br />
that, subject to any adjustments to the<br />
Exchange Price, 101.5228 Shares will be<br />
delivered for each Bond. If more than one<br />
Bond is exchanged at any one time by the same<br />
Bondholder, the number of Shares to be<br />
delivered will be calculated on the basis of<br />
the aggregate principal amount of such Bonds.<br />
(c) The Exchange Right may no longer be<br />
exercised by a Bondholder following the<br />
receipt by a Paying Agent (§ 13) of a notice<br />
in accordance with § 9(2) declaring the Bonds<br />
held by such Bondholder due.<br />
(2) Umtauschverfahren. (2) Procedure for Exchange.<br />
(a) Zur AusuÈbung des Umtauschrechts muû jeder<br />
AnleiheglaÈubiger waÈhrend der Umtauschfrist<br />
(i) auf eigene Kosten waÈhrend der uÈblichen<br />
GeschaÈftszeiten bei einer Umtauschstelle (§ 13)<br />
eine ordnungsgemaÈû ausgefuÈllte und<br />
unterzeichnete UmtauscherklaÈrung (die<br />
``UmtauscherklaÈrung''), die bei den<br />
GeschaÈftsstellen der Umtauschstellen erhaÈltlich<br />
ist, einreichen und (ii) die umzutauschenden<br />
Teilschuldverschreibungen auf das Konto einer<br />
Umtauschstelle (oder auf das von einer<br />
Umtauschstelle auf dem Formular der<br />
UmtauscherklaÈrung angegebene Konto) bei<br />
Clearstream Luxemburg oder Clearstream<br />
Frankfurt uÈbertragen. Die UmtauscherklaÈrung<br />
istunwiderru¯ich.EinUmtauschrechtistandem<br />
Tag (der ``Umtauschtag'') wirksam ausgeuÈbt, an<br />
dem beide unter § 5(2)(a) (i) und (ii) aufgefuÈhrten<br />
Voraussetzungen erfuÈllt sind; in diesem<br />
Zusammenhang gilt, daû (x) eine AusuÈbung des<br />
Umtauschrechts nicht wirksam ist, sofern die<br />
UmtauscherklaÈrung einer Umtauschstelle<br />
waÈhrend eines NichtausuÈbungszeitraums<br />
(§ 5(4)) zugeht und (y), sofern der Tag, an dem<br />
die in § 5(2)(a) (i) und (ii) aufgefuÈhrten<br />
Voraussetzungen erfuÈllt sind, kein BoÈrsentag<br />
ist, der auf diesen Tag unmittelbar folgende<br />
BoÈrsentag der Umtauschtag ist.<br />
48<br />
(a) In order to exercise the Exchange Right, each<br />
Bondholder must, during the Exchange Period,<br />
(i) deliver at its own expense during normal<br />
business hours to an Exchange Agent (§ 13) a<br />
notice of exchange (the ``Exchange Notice'')<br />
duly completed and signed on a form available<br />
at the of®ces of the Exchange Agents and (ii)<br />
transfer the Bonds to be exchanged to the<br />
account of an Exchange Agent (or to the<br />
account designated by an Exchange Agent on<br />
the form of the Exchange Notice) with<br />
Clearstream Luxembourg or Clearstream<br />
Frankfurt. The Exchange Notice shall be<br />
irrevocable. Any Exchange Right shall have<br />
been validly exercised on the date (the<br />
``Exchange Date'') on which both conditions<br />
set forth in (i) and (ii) of this § 5(2)(a) shall<br />
have been ful®lled, provided that (x) the<br />
Exchange Right shall not have been validly<br />
exercised if the receipt of the Exchange Notice<br />
by an Exchange Agent falls within an Excluded<br />
Period (§ 5(4)) and (y), if the day on which the<br />
conditions set forth in (i) and (ii) of this<br />
§ 5(2)(a) shall have been ful®lled is not a Stock<br />
Exchange Trading Day, the Exchange Date<br />
shall be the Stock Exchange Trading Day<br />
immediately following such day.
(b) Eine Lieferung von Bruchteilen von Aktien, die<br />
infolge der AusuÈbung des Umtauschrechts<br />
entstuÈnden, ist ausgeschlossen. Soweit die<br />
AusuÈbung des Umtauschrechts im Hinblick<br />
auf eine oder mehrere Teilschuldverschreibung(en)<br />
zu Bruchteilen von Aktien<br />
fuÈhren wuÈrde, leistet die Emittentin anstelle der<br />
Lieferung dieser Bruchteile eine Zahlung in<br />
Euro, deren HoÈhe auf der Grundlage des<br />
Schluûkurses am Umtauschtag ermittelt wird.<br />
Eine solche Zahlung erfolgt durch<br />
UÈ berweisung auf das von dem betreffenden<br />
AnleiheglaÈubiger in der UmtauscherklaÈrung<br />
angegebene Konto. Sollte sich die an einen<br />
AnleiheglaÈubiger zu leistende Zahlung<br />
insgesamt auf weniger als e 10 belaufen, ist<br />
die Emittentin nicht verp¯ichtet, diese Zahlung<br />
zu leisten.<br />
(c) Bei AusuÈbung des Umtauschrechts wird die<br />
Emittentin so bald wie moÈglich, jedoch<br />
keinesfalls spaÈter als sieben Bankarbeitstage<br />
nach dem Umtauschtag, die Aktien uÈber<br />
Clearstream Frankfurt, Clearstream<br />
Luxemburg, Euroclear oder Euroclear France<br />
S.A. entsprechend den Angaben des<br />
AnleiheglaÈubigers in der UmtauscherklaÈrung<br />
an den AnleiheglaÈubiger liefern und etwaige<br />
gemaÈû § 5(2)(b) erforderliche Zahlungen<br />
leisten. Die Emittentin ist zur Lieferung von<br />
Aktien und Leistung von Zahlungen an einen<br />
AnleiheglaÈubiger, der das Umtauschrecht<br />
ausgeuÈbt hat, nur verp¯ichtet, sofern der<br />
betreffende AnleiheglaÈubiger etwaige Steuern<br />
und sonstige Abgaben, die im Zusammenhang<br />
mit der AusuÈbung des Umtauschrechts, der<br />
Lieferung von Aktien oder einer Zahlung<br />
durch die Emittentin gemaÈû diesem § 5<br />
erhoben werden, gezahlt hat.<br />
(b) No fractions of Shares shall be delivered upon<br />
exercise of the Exchange Right. To the extent<br />
that any exercise of the Exchange Right with<br />
respect to one or more Bonds would result in<br />
fractions of Shares, the Issuer shall make, in<br />
lieu of delivery of such fractions of Shares, a<br />
cash payment in Euro based on the Closing<br />
Price of the Shares on the Exchange Date. Any<br />
such payment shall be made by transfer to such<br />
account as the relevant Bondholder may<br />
specify in the Exchange Notice. If the<br />
aggregate cash payment otherwise to be made<br />
to a Bondholder would amount to less than<br />
e 10, the Issuer shall be under no obligation to<br />
make any such payment.<br />
(c) Upon exercise of an Exchange Right, the<br />
Issuer shall, as soon as practicable, but in any<br />
event no later than seven Business Days after<br />
the Exchange Date, deliver the Shares to the<br />
Bondholder through Clearstream Frankfurt,<br />
Clearstream Luxembourg, Euroclear or<br />
Euroclear France S.A., as speci®ed in the<br />
Bondholder's Exchange Notice, and make<br />
any cash payment required under § 5(2)(b).<br />
The Issuer's obligation to deliver Shares and to<br />
make any cash payment to any Bondholder<br />
who has exercised the Exchange Right is<br />
subject to the condition that such Bondholder<br />
shall have paid any taxes and other duties<br />
which are imposed in connection with the<br />
exercise of the Exchange Right, the delivery of<br />
Shares or any cash payment by the Issuer<br />
under this § 5.<br />
(3) Anpassung des Umtauschwertes. (3) Adjustments to the Exchange Price.<br />
(a) Falls die Gesellschaft vor dem 14. September<br />
2006 oder einem fruÈheren RuÈckzahlungstag<br />
(i) ihren AktionaÈren unmittelbar oder<br />
mittelbar ein <strong>Re</strong>cht zum Bezug von<br />
Aktien, Schuldverschreibungen oder<br />
sonstigen Wertpapieren mit oder ohne<br />
<strong>Re</strong>cht zum Bezug von Aktien einraÈumt<br />
(sofern es sich dabei nicht um unter (ii)<br />
beschriebene Bezugsrechte handelt)<br />
(``GewaÈhrung von Bezugsrechten''), oder<br />
49<br />
(a) In the event that prior to September 14, 2006<br />
or any earlier date of redemption, the<br />
Company<br />
(i) grants its shareholders, directly or<br />
indirectly, rights to subscribe shares,<br />
bonds or other securities with or without<br />
rights to subscribe shares (except for<br />
subscription rights described under (ii)<br />
(``Granting of Subscription Rights''), or
(ii) ihr Grundkapital aus Gewinn- oder<br />
KapitalruÈcklagen oder auf andere Weise<br />
aus Gesellschaftsmitteln erhoÈht<br />
(``KapitalerhoÈhung aus RuÈcklagen''),<br />
wird der Umtauschwert nach Maûgabe der<br />
AbsaÈtze § 5(3)(b) und (c) angepaût.<br />
(b) Im Falle einer GewaÈhrung von Bezugsrechten<br />
wird der Umtauschwert mit dem Wert<br />
multipliziert, der durch Anwendung der<br />
nachstehenden Formel berechnet wird:<br />
CPo ± VSR<br />
CPo<br />
(ii) increases its share capital out of retained<br />
earnings or capital reserves or otherwise<br />
out of the Company's own funds<br />
(``Increase of Share Capital out of<br />
<strong>Re</strong>serves''),<br />
the Exchange Price shall be adjusted in<br />
accordance with § 5(3)(b) and (c).<br />
(b) In the event of a Granting of Subscription<br />
Rights, the Exchange Price shall be multiplied<br />
by the ®gure calculated by applying the<br />
following formula:<br />
CPo ± VSR<br />
CPo<br />
wobei folgendes gilt: where:<br />
``CPo'' ist der Schluûkurs der Aktie am<br />
Bezugsstichtag (wie nachstehend de®niert);<br />
``VSR'' (Wert des Bezugsrechts) bedeutet je<br />
Aktie:<br />
(i) der Wert des <strong>Re</strong>chts zum Bezug der<br />
betreffenden Wertpapiere, wie er sich aus<br />
dem BoÈrsenschluûkurs dieses <strong>Re</strong>chts an<br />
Euronext Paris am Stichtag (§ 5(3)(k))<br />
ergibt, oder<br />
(ii) falls ein solcher Kurs nicht verfuÈgbar ist,<br />
der von der Berechnungsstelle unter<br />
Heranziehung eines international<br />
anerkannten unabhaÈngigen SachverstaÈndigen,<br />
wenn moÈglich unter<br />
BeruÈcksichtigung der am Stichtag<br />
herrschenden Marktlage, bestimmte<br />
Wert des Bezugsrechts; und<br />
``Bezugsstichtag'' ist der dem ersten BoÈrsentag,<br />
an dem die Aktien an Euronext Paris ``ex<br />
Bezugsrecht'' notiert werden, unmittelbar<br />
vorangehende BoÈrsentag.<br />
(c) Im Falle einer KapitalerhoÈhung aus RuÈcklagen<br />
wird der Umtauschwert mit dem Wert<br />
multipliziert, der durch Anwendung der<br />
nachstehenden Formel berechnet wird:<br />
No<br />
Nn<br />
``CPo'' is the Closing Price of the Shares on the<br />
Subscription <strong>Re</strong>cord Date (as de®ned below);<br />
``VSR'' (value of the subscription rights)<br />
means, on a per share basis:<br />
(i) the value of the right to subscribe the<br />
relevant securities, as determined by the<br />
closing price of such right on Euronext<br />
Paris on the <strong>Re</strong>cord Date (§ 5(3)(k)), or<br />
(ii) in case such price is not available, the<br />
value of the subscription right as<br />
determined by the Calculation Agent,<br />
with the assistance of an independent<br />
expert of recognized international<br />
standing, if possible taking into account<br />
the market conditions prevailing on the<br />
<strong>Re</strong>cord Date; and<br />
``Subscription <strong>Re</strong>cord Date'' is the Stock<br />
Exchange Trading Day immediately<br />
preceding the ®rst Stock Exchange Trading<br />
Day on which the Shares are traded on<br />
Euronext Paris ``ex-subscription right''.<br />
(c) In the event of an Increase of Share Capital out<br />
of <strong>Re</strong>serves, the Exchange Price shall be<br />
multiplied by the ®gure calculated by<br />
applying the following formula:<br />
No<br />
Nn<br />
wobei folgendes gilt: where:<br />
``No'' ist die Anzahl der Aktien vor der<br />
KapitalerhoÈhung, und<br />
50<br />
``No'' is the number of Shares before the<br />
increase of share capital, and
``Nn'' ist die Anzahl der Aktien nach<br />
DurchfuÈhrung der KapitalerhoÈhung.<br />
(d) Falls sich die Anzahl der Aktien veraÈndert,<br />
ohne daû sich gleichzeitig die HoÈhe des<br />
Grundkapitals aÈndert, gilt § 5(3)(c) sinngemaÈû.<br />
(e) Falls die Gesellschaft vor dem 14. September<br />
2006 oder einem fruÈheren RuÈckzahlungstag<br />
ihren AktionaÈren Schuldverschreibungen,<br />
Optionsscheine, Wandlungsrechte oder andere<br />
VermoÈgensgegenstaÈnde ausschuÈttet, zuteilt<br />
oder gewaÈhrt (auûer den in § 5(3)(a)<br />
genannten FaÈllen, einer Auûerordentlichen<br />
Dividende (§ 5(3)(f)) und einer Abspaltung<br />
(§ 5(3)(g)) (eine ``AusschuÈttung''),<br />
wird der Umtauschwert mit dem Wert<br />
multipliziert, der durch Anwendung der<br />
nachstehenden Formel berechnet wird:<br />
CPo ± VD<br />
CPo<br />
``Nn'' is the number of Shares after the increase<br />
of share capital.<br />
(d) In the event that the number of Shares is<br />
changed without a change in the amount of the<br />
share capital, § 5(3)(c) shall apply mutatis<br />
mutandis.<br />
(e) In the event that prior to September 14, 2006<br />
or any earlier date of redemption, the<br />
Company distributes, allots or grants to its<br />
shareholders debt securities, warrants,<br />
conversion rights or other assets (excluding<br />
the events referred to in § 5(3)(a), an<br />
Extraordinary Dividend (§ 5(3)(f)) and a<br />
Spin-off Event (§ 5(3)(g)) (a ``Distribution''),<br />
the Exchange Price shall be multiplied by the<br />
®gure calculated by applying the following<br />
formula:<br />
CPo ± VD<br />
CPo<br />
wobei folgendes gilt: where:<br />
``CPo'' ist der Schluûkurs der Aktien am<br />
AusschuÈttungsstichtag (wie nachstehend<br />
de®niert);<br />
``VD'' (Wert der AusschuÈttung) bedeutet den<br />
von der Berechnungsstelle mit Hilfe eines<br />
international anerkannten unabhaÈngigen<br />
SachverstaÈndigen je Aktie ermittelten<br />
angemessenen Marktwert der<br />
AusschuÈttung am AusschuÈttungsstichtag (wie<br />
nachstehend de®niert); und<br />
``AusschuÈttungsstichtag'' ist (i) der dem ersten<br />
BoÈrsentag, an dem die Aktien an Euronext<br />
Paris unter Ausschluss (``ex'') des <strong>Re</strong>chts<br />
notiert werden, das die AktionaÈre zu der<br />
AusschuÈttung berechtigt, unmittelbar<br />
vorausgehende BoÈrsentag, oder, falls (i) nicht<br />
anwendbar ist, (ii) der Zeitpunkt und das<br />
Datum fuÈr die Bestimmung der AktionaÈre,<br />
die berechtigt sind, die AusschuÈttung zu<br />
erhalten.<br />
(f) Falls die Gesellschaft vor dem 14. September<br />
2006 oder einem fruÈheren RuÈckzahlungstag<br />
waÈhrend eines GeschaÈftsjahres einen<br />
Gesamtbetrag an Dividenden auf ihre Aktien<br />
ausschuÈttet, der (ohne BeruÈcksichtigung eines<br />
51<br />
``CPo'' is the Closing Price of the Shares on the<br />
Distribution <strong>Re</strong>cord Date (as de®ned below);<br />
``VD'' (value of the distribution) means the fair<br />
market value of the Distribution on the<br />
Distribution <strong>Re</strong>cord Date (as de®ned below)<br />
as determined by the Calculation Agent with<br />
the assistance of an independent expert of<br />
recognized international standing, calculated<br />
on a per share basis; and<br />
``Distribution <strong>Re</strong>cord Date'' is (i) the Stock<br />
Exchange Trading Day immediately preceding<br />
the ®rst Stock Exchange Trading Day on<br />
which the Shares are traded on Euronext<br />
Paris ``ex'' the right entitling a shareholder to<br />
receive the Distribution or, if (i) is inapplicable,<br />
(ii) the time and date for the determination of<br />
the shareholders entitled to receive the<br />
Distribution.<br />
(f) In the event that prior to September 14, 2006<br />
or any earlier date of redemption, the<br />
Company distributes to its shareholders with<br />
respect to any of its ®scal years an aggregate<br />
amount of dividends (without taking into
damit verbundenen KoÈrperschaftsteuerguthabens)<br />
berechnet auf der Grundlage des<br />
arithmetischen Mittels der Schluûkurse der<br />
Aktien an jedem BoÈrsentag waÈhrend des<br />
GeschaÈftsjahres, das einer solchen Dividende<br />
oder solchen Dividenden vorangeht, zu einem<br />
Dividendenertrag je Aktie (ausgedruÈckt als<br />
Prozentsatz, ohne BeruÈcksichtigung eines<br />
damit verbundenen KoÈrperschaftsteuerguthabens)<br />
fuÈhrt, der die Summe von 3%<br />
zuzuÈglich des Durchschnittlichen Dividendenertrags<br />
(wie nachstehend de®niert)<br />
uÈbersteigt (dieser Dividendenertrag wird<br />
einschlieûlich der 3% nachfolgend als eine<br />
``Auûerordentliche Dividende'' oder ``EDY''<br />
bezeichnet), wird der Umtauschwert mit dem<br />
Wert multipliziert, der durch Anwendung der<br />
nachstehenden Formel berechnet wird:<br />
1 ± EDY + ADY 1 ± EDY + ADY<br />
wobei folgendes gilt: where:<br />
``ADY'' bzw. ``Durchschnittlicher<br />
Dividendenertrag'' bedeutet den<br />
durchschnittlichen Dividendenertrag<br />
(ausgedruÈckt als Prozentsatz, ohne<br />
BeruÈcksichtigung eines etwaigen in einer<br />
Dividende enthaltenen KoÈrperschaftsteuerguthabens<br />
und ohne BeruÈcksichtigung einer<br />
Dividende oder von Dividenden (oder Teilen<br />
davon), die Auûerordentliche Dividenden<br />
waren) jedes der letzten fuÈnf GeschaÈftsjahre,<br />
die dem GeschaÈftsjahr vorangingen, welches<br />
vor der AusschuÈttung oder den<br />
AusschuÈttungen lag, die zur Anwendung<br />
dieses § 5(3)(f) fuÈhren (dieser Dividendenertrag<br />
wird fuÈr jedes dieser fuÈnf<br />
GeschaÈftsjahre auf der Grundlage des<br />
arithmetischen Mittels der Schluûkurse der<br />
Aktien an jedem BoÈrsentag waÈhrend des<br />
GeschaÈftsjahres, im Hinblick auf welches die<br />
Dividende oder Dividenden ausgeschuÈttet<br />
wurden, berechnet (soweit erforderlich, ist<br />
diese Berechnung unter Heranziehung der<br />
Aktienkurse und Dividenden der vormaligen<br />
RhoÃne-Poulenc S.A., bevor diese in Aventis<br />
S.A. um®rmiert hat, durchzufuÈhren)); und<br />
``Dividendenstichtag'' ist der dem ersten<br />
BoÈrsentag, an dem die Aktien an Euronext<br />
Paris ``ex Dividende'' notiert werden,<br />
unmittelbar vorangehende BoÈrsentag.<br />
(g) Falls die Gesellschaft ihren AktionaÈren einen<br />
Anteil am Kapital verbriefende Wertpapiere<br />
52<br />
account any corporate tax credit inherent in<br />
any dividend) on its Shares which, on a per<br />
share basis and calculated on the basis of the<br />
arithmetic average of the Closing Price of the<br />
Shares on each Stock Exchange Trading Day<br />
during the ®scal year preceding such dividend<br />
or dividends, will result in a dividend yield (in<br />
%, without taking into account any corporate<br />
tax credit arising in respect thereof) that<br />
exceeds the sum of 3% plus the Average<br />
Dividend Yield (as de®ned below) (such<br />
dividend yield, including the 3%, an<br />
``Extraordinary Dividend'' or ``EDY''), the<br />
Exchange Price shall be multiplied by the<br />
®gure calculated by applying the following<br />
formula:<br />
``ADY'' or ``Average Dividend Yield'' is the<br />
average of the dividend yields (in %, without<br />
taking into account any corporate tax credit<br />
inherent in any dividend and without taking<br />
into account any dividend or dividends (or<br />
portion thereof) that constituted<br />
Extraordinary Dividends) of each of the last<br />
®ve ®scal years which preceded the ®scal year<br />
preceding the distribution or distributions<br />
giving rise to the application of this § 5(3)(f)<br />
(such dividend yield calculated for each of<br />
those ®ve ®scal years on the basis of the<br />
arithmetic average of the Closing Price of the<br />
Shares on each Stock Exchange Trading Day<br />
during the ®scal year in respect of which the<br />
dividend or dividends were distributed (to the<br />
extent necessary, such calculation to be made<br />
using the share price and dividends of the<br />
former RhoÃne-Poulenc S.A. prior to its name<br />
change to Aventis S.A.)); and<br />
``Dividend <strong>Re</strong>cord Date'' is the Stock Exchange<br />
Trading Day immediately preceding the ®rst<br />
Stock Exchange Trading Day on which the<br />
Shares are traded on Euronext Paris ``exdividend''<br />
(g) If the Company distributes, or causes to be<br />
distributed, to its shareholders (a ``Spin-off
eines anderen Emittenten als der Gesellschaft<br />
(die ``Abspaltungs-Wertpapiere'') gewaÈhrt oder<br />
gewaÈhren laÈût (eine ``Abspaltung''), wird die<br />
Emittentin mit Hilfe eines international<br />
anerkannten unabhaÈngigen SachverstaÈndigen<br />
eine der folgenden MoÈglichkeiten waÈhlen:<br />
(i) wenn die Abspaltungs-Wertpapiere an<br />
einer anerkannten BoÈrse oÈffentlich<br />
gehandelt werden, umfasst jede Aktie<br />
anschlieûend die Anzahl von<br />
Abspaltungs-Wertpapieren, zu deren<br />
Erhalt ein AnleiheglaÈubiger berechtigt<br />
gewesen waÈre, wenn er das<br />
Umtauschrecht unmittelbar vor dem<br />
AusschuÈttungsstichtag dieser Abspaltung<br />
ausgeuÈbt haÈtte;<br />
(ii) der Umtauschwert wird durch<br />
Anwendung der Formel gemaÈû § 5(3)(e)<br />
angepaût;<br />
(iii) innerhalb von fuÈnf BoÈrsentagen nach dem<br />
``ex'' Tag dieser Abspaltung liefert die<br />
Emittentin jedem AnleiheglaÈubiger die<br />
Anzahl von Abspaltungs-Wertpapieren,<br />
zu deren Erhalt ein AnleiheglaÈubiger<br />
berechtigt gewesen waÈre, wenn er das<br />
Umtauschrecht unmittelbar vor dem<br />
AusschuÈttungsstichtag dieser Abspaltung<br />
ausgeuÈbt haÈtte; oder<br />
(iv) innerhalb von fuÈnf BoÈrsentagen nach dem<br />
``ex'' Tag dieser Abspaltung zahlt die<br />
Emittentin jedem AnleiheglaÈubiger einen<br />
Barbetrag, der sich aus (x) der Anzahl der<br />
Abspaltungs-Wertpapiere, zu deren<br />
Erhalt ein AnleiheglaÈubiger berechtigt<br />
gewesen waÈre, wenn er das<br />
Umtauschrecht unmittelbar vor dem<br />
AusschuÈttungsstichtag dieser Abspaltung<br />
ausgeuÈbt haÈtte, multipliziert mit (y) dem<br />
von der Berechnungsstelle mit Hilfe eines<br />
international anerkannten unabhaÈngigen<br />
SachverstaÈndigen am letzten BoÈrsentag<br />
vor dem AusschuÈttungsstichtag dieser<br />
Abspaltung bestimmten angemessenen<br />
Marktwert der Abspaltungs-Wertpapiere<br />
je Aktie ergibt.<br />
(h) Falls die Gesellschaft oder ein Dritter vor dem<br />
14. September 2006 oder einem fruÈheren<br />
RuÈckzahlungstag eine nicht in diesem § 5(3)<br />
genannte Maûnahme in bezug auf das Kapital<br />
53<br />
Event'') equity securities of an issuer other than<br />
the Company (the ``Spin-off Securities''), then<br />
the Issuer shall, with the assistance of an<br />
independent expert of recognized international<br />
standing, select one of the following options:<br />
(i) if the Spin-off Securities are publicly<br />
traded on a recognized exchange, each<br />
Share shall thereafter comprise the<br />
number of Spin-off Securities that a<br />
Bondholder would have been entitled to<br />
receive had the Bondholder exercised the<br />
Exchange Right immediately prior to the<br />
Distribution <strong>Re</strong>cord Date of such Spinoff<br />
Event;<br />
(ii) the Exchange Price shall be adjusted by<br />
applying the formula set forth in § 5(3)(e);<br />
(iii) within ®ve Stock Exchange Trading Days<br />
after the ``ex'' date of such Spin-off Event,<br />
the Issuer shall deliver to each<br />
Bondholder the number of Spin-off<br />
Securities that a Bondholder would have<br />
been entitled to receive had the<br />
Bondholder exercised the Exchange<br />
Right immediately prior to the<br />
Distribution <strong>Re</strong>cord Date of such Spinoff<br />
Event; or<br />
(iv) within ®ve Stock Exchange Trading Days<br />
after the ``ex'' date of such Spin-off Event,<br />
the Issuer shall pay to each Bondholder a<br />
cash amount calculated by multiplying (x)<br />
the number of Spin-off Securities that a<br />
Bondholder would have been entitled to<br />
receive had the Bondholder exercised the<br />
Exchange Right immediately prior to the<br />
Distribution <strong>Re</strong>cord Date of such Spinoff<br />
Event by (y) the fair market value of<br />
the Spin-off Securities on a per-share<br />
basis, as determined by the Calculation<br />
Agent with the assistance of an<br />
independent expert of recognized<br />
international standing, on the last Stock<br />
Exchange Trading Day prior to the<br />
Distribution <strong>Re</strong>cord Date of such Spinoff<br />
Event.<br />
(h) If the Company or a third party adopts a<br />
measure not contemplated in this § 5(3) in<br />
relation to the capital or assets of the Company<br />
at any time prior to September 14, 2006 or any
oder die VermoÈgensgegenstaÈnde der<br />
Gesellschaft ergreift und diese Maûnahme<br />
nach Auffassung der Berechnungsstelle einen<br />
erheblichen nachteiligen Ein¯uû auf die<br />
Interessen der AnleiheglaÈubiger hat, wird die<br />
Berechnungsstelle den Umtauschwert nach<br />
billigem Ermessen (§ 317 BGB) anpassen oder<br />
in diesem Zusammenhang andere<br />
Anpassungen mit dem Ziel vornehmen,<br />
denjenigen Wert der Teilschuldverschreibungen<br />
zu erhalten, den sie<br />
vermutlich haÈtten, wenn das die Anpassung<br />
erfordernde Ereignis nicht eingetreten waÈre.<br />
(i) Anpassungen nach Maûgabe der vorstehenden<br />
Bestimmungen sind von der Berechnungsstelle<br />
vorzunehmen und gemaÈû § 11 bekanntzumachen.<br />
Der nach Maûgabe der<br />
vorstehenden Bestimmungen berechnete<br />
Umtauschwert wird auf die vierte<br />
Dezimalstelle gerundet, wobei 0,00005<br />
aufgerundet werden. Die Berechnungsstelle ist<br />
berechtigt, nach vernuÈnftigem Ermessen und<br />
nach vorheriger Abstimmung mit der<br />
Emittentin den Rat von AnwaÈlten oder<br />
anderen international anerkannten<br />
unabhaÈngigen SachverstaÈndigen (z.B. einer<br />
Investmentbank) einzuholen und dementsprechend<br />
zu handeln. Die Berechnungsstelle<br />
haftet gegenuÈber der Emittentin, der Garantin<br />
(§ 8) oder den AnleiheglaÈubigern nicht, soweit<br />
sie in gutem Glauben Maûnahmen im<br />
Vertrauen auf eine solche Beratung<br />
durchgefuÈhrt oder unterlassen und dabei mit<br />
der Sorgfalt eines ordentlichen Kaufmanns<br />
gehandelt hat.<br />
(j) Anpassungen gemaÈû § 5(3)(b) und (c) und (e)<br />
bis (g) werden mit Beginn des ersten<br />
BoÈrsentages wirksam, an dem die Aktien an<br />
Euronext Paris ``ex Bezugsrecht'', ``ex<br />
Dividende'', ``ex Gratisaktien'' oder ``ex''<br />
anderer <strong>Re</strong>chte gehandelt werden<br />
(``Stichtag''). Anpassungen gemaÈû Absatz<br />
§ 5(3)(d) werden mit Beginn des ersten<br />
BoÈrsentages wirksam, an dem die Aktien<br />
unter BeruÈcksichtigung der geaÈnderten<br />
Aktienzahl notiert werden. Anpassungen<br />
gemaÈû § 5(3)(h) werden mit Beginn des Tages<br />
wirksam, der von der Berechnungsstelle gemaÈû<br />
§ 5(3)(h) als Wirksamkeitstag bestimmt wird.<br />
(k) Falls Anpassungen des Umtauschwertes<br />
aufgrund mehrerer der in den vorstehenden<br />
AbsaÈtzen § 5(3)(a) bis (h) genannten FaÈllen<br />
54<br />
earlier date of redemption which has, in the<br />
opinion of the Calculation Agent, a signi®cant<br />
adverse impact on the position of the<br />
Bondholders, the Calculation Agent shall<br />
adjust the Exchange Price in its own<br />
reasonable discretion (§ 317 of the German<br />
Civil Code) or make other adjustments in this<br />
connection with the aim to maintain the value<br />
of the Bonds, which they would presumably<br />
have in the absence of the event leading to such<br />
adjustment.<br />
(i) Adjustments in accordance with the foregoing<br />
clauses shall be calculated by the Calculation<br />
Agent and published in accordance with § 11.<br />
The Exchange Price determined in accordance<br />
with the preceding provisions shall be rounded<br />
to the fourth decimal place, with 0.00005 being<br />
rounded upwards. The Calculation Agent may<br />
in its reasonable discretion and after prior<br />
consultation with the Issuer, obtain, and rely<br />
on, the advice of any lawyers or other<br />
independent experts of recognized<br />
international standing (e.g., of an investment<br />
bank). The Calculation Agent shall not be<br />
liable vis-a-vis the Issuer, the Guarantor (§ 8)<br />
or any Bondholder in respect of any action<br />
taken or failed to be taken by it in reliance on<br />
such advice in good faith and in the exercise of<br />
the due care of a proper merchant.<br />
(j) Adjustments in accordance with § 5(3)(b) and<br />
(c) and (e) through (g) shall become effective as<br />
of the beginning of the ®rst Stock Exchange<br />
Trading Day on which the Shares are traded<br />
on Euronext Paris ``ex-subscription rights'',<br />
``ex-dividend'', ``ex-bonus shares'' or ``ex'' any<br />
other right (``<strong>Re</strong>cord Date''). Adjustments in<br />
accordance with § 5(3)(d) shall become<br />
effective as of the beginning of the ®rst Stock<br />
Exchange Trading Day on which prices are<br />
quoted taking account of such change of the<br />
number of Shares. Adjustments in accordance<br />
with § 5(3)(h) shall become effective as of the<br />
beginning of the date determined as the<br />
effective date by the Calculation Agent<br />
pursuant to § 5(3)(h).<br />
(k) If adjustments of the Exchange Price are<br />
required under more than one of § 5(3)(a)<br />
through (h), and the effective date for such
erforderlich werden und der Wirksamkeitstag<br />
fuÈr derartige Anpassungen (§ 5(3)(j)) auf<br />
denselben Tag faÈllt, sind die Anpassungen in<br />
folgender <strong>Re</strong>ihenfolge vorzunehmen: zuerst<br />
gemaÈû § 5(3)(a), danach gemaÈû § 5(3)(b),<br />
danach gemaÈû § 5(3)(c), danach gemaÈû<br />
§ 5(3)(d), danach gemaÈû § 5(3)(e), danach<br />
gemaÈû § 5(3)(f), danach gemaÈû § 5(3)(g) und<br />
zuletzt gemaÈû § 5(3)(h).<br />
(l) Im Falle einer KapitalerhoÈhung aus RuÈcklagen<br />
durch ErhoÈhung des Nominalwertes der<br />
Aktien erfolgt keine Anpassung des<br />
Umtauschwertes, sondern der Nominalwert<br />
der an das Umtauschrecht ausuÈbende<br />
AnleiheglaÈubiger zu liefernden Aktien wird in<br />
demselben Umfang erhoÈht.<br />
(4) NichtausuÈbungszeitraum. (4) Excluded Period.<br />
Die AusuÈbung des Umtauschrechts ist<br />
ausgeschlossen im Falle eines OÈ ffentlichen<br />
UÈ bernahmeangebots (§ 6(3)) waÈhrend eines<br />
Zeitraums (ein ``NichtausuÈbungszeitraum'')<br />
beginnend an dem fuÈnften Bankarbeitstag vor dem<br />
Annahmetag (§ 6(1)) bis (i) zu dem Tag, an dem die<br />
Aktien, die Gegenstand des OÈ ffentlichen<br />
UÈ bernahmeangebots waren, durch die Emittentin,<br />
die Garantin (§ 8) bzw. eines ihrer verbundenen<br />
Unternehmen, welches Aktien haÈlt, wirksam an den<br />
Anbieter uÈbertragen worden sind bzw. (ii) zu dem<br />
Tag, an dem die Emittentin gemaÈû § 6(1)(i)<br />
bekanntgibt, daû die Emittentin, die Garantin<br />
bzw. das betreffende verbundene Unternehmen<br />
das OÈ ffentliche UÈ bernahmeangebot nicht<br />
angenommen hat oder daû das OÈ ffentliche<br />
UÈ bernahmeangebot nicht erfolgreich war, je<br />
nachdem, welches Ereignis spaÈter eintritt, mit der<br />
EinschraÈnkung, daû die AusuÈbung des<br />
Umtauschrechts nicht waÈhrend der letzten fuÈnf<br />
Bankarbeitstage der Umtauschfrist ausgeschlossen<br />
ist.<br />
adjustments (§ 5(3)(j)) falls on the same date,<br />
such adjustments shall be made by applying,<br />
®rst, the provisions of § 5(3)(a), second, the<br />
provisions of § 5(3)(b), third, the provisions of<br />
§ 5(3)(c), fourth, the provisions of § 5(3)(d),<br />
®fth, the provisions of § 5(3)(e), sixth, the<br />
provisions of § 5(3)(f), seventh, the provisions<br />
of § 5(3)(g) and ®nally the provisions of<br />
§ 5(3)(h).<br />
(l) In the event of an Increase of Share Capital out<br />
of <strong>Re</strong>serves by increasing the nominal value of<br />
the Shares, the Exchange Price shall not be<br />
adjusted but the nominal value of the Shares to<br />
be delivered to Bondholders exercising the<br />
Exchange Right will be increased to the same<br />
extent.<br />
The exercise of the Exchange Right shall be<br />
excluded in the case of a Public Offer (§ 6(3))<br />
during a period (an ``Excluded Period'') between the<br />
date that falls ®ve Business Days prior to the<br />
Acceptance Date (§ 6(1)) and the later of (i) the date<br />
on which the Shares that were subject to the Public<br />
Offer are validly transferred by the Issuer, the<br />
Guarantor (§ 8) or any af®liate holding Shares, as<br />
the case may be, to the offeror and (ii) the date on<br />
which the Issuer publishes pursuant to § 6(1)(i) that<br />
the Issuer, the Guarantor or such af®liate, as the<br />
case may be, has not accepted the Public Offer or<br />
that the Public Offer was unsuccessful, provided<br />
that the exercise of the Exchange Right shall not be<br />
excluded during the last ®ve Business Days of the<br />
Exchange Period.<br />
(5) Barzahlung anstelle der Lieferung von Aktien. (5) Cash Payment in lieu of Delivery of Shares.<br />
Die Emittentin ist jederzeit berechtigt, nach<br />
vorheriger Bekanntmachung gemaÈû § 11<br />
gegenuÈber der Umtauschstelle und den<br />
AnleiheglaÈubigern mit einer Frist von sieben<br />
Bankarbeitstagen statt Lieferung der in § 5(1)(b)<br />
bestimmten Anzahl von Aktien (vorbehaltlich einer<br />
Anpassung des Umtauschwertes) oder eines Teils<br />
davon die Zahlung eines Barbetrags in Euro zu<br />
waÈhlen, sofern der infolge der wirksamen AusuÈbung<br />
des Umtauschrechts durch die jeweiligen<br />
AnleiheglaÈubiger maûgebliche Umtauschtag auf<br />
oder nach den Tag faÈllt, der in der<br />
Bekanntmachung als Wirksamkeitstag fuÈr die<br />
AusuÈbung des Wahlrechts bestimmt ist, und der<br />
55<br />
The Issuer may elect from time to time upon no less<br />
than seven Business Days' prior notice to the<br />
Exchange Agents and to the Bondholders in<br />
accordance with § 11, to pay to the Bondholders,<br />
in lieu of the delivery of the number of Shares<br />
speci®ed in § 5(1)(b) (as adjusted as a result of an<br />
adjustment of the Exchange Price) or a portion of<br />
such Shares to the Bondholders upon valid exercise<br />
of the Exchange Right in respect of which the<br />
Exchange Date falls on or after the date speci®ed as<br />
effective date of such election in such notice and<br />
prior to the effective date of revocation or change of<br />
such election (as provided below), a cash amount in<br />
Euro. The cash amount relating to each Share shall
vor dem Wirksamkeitstag eines Widerrufs oder<br />
einer AÈ nderung der AusuÈbung des Wahlrechts<br />
(wie nachstehend geregelt) liegt. Der auf jede<br />
Aktie zu zahlende Barbetrag errechnet sich auf der<br />
Grundlage des arithmetischen Mittels der<br />
Schluûkurse der Aktien an den zehn dem<br />
Umtauschtag folgenden BoÈrsentagen; der Betrag<br />
ist zusaÈtzlich zu allen anderen etwaigen BarbetraÈgen<br />
zu zahlen, welche die Emittentin den<br />
AnleiheglaÈubigern nach einer wirksamen<br />
AusuÈbung des Umtauschrechts schuldet. Die<br />
Zahlung dieser BetraÈge ist so bald wie moÈglich<br />
nach Ablauf des zehnten, auf den Umtauschtag<br />
folgenden BoÈrsentages, in keinem Fall spaÈter als<br />
sieben Bankarbeitstage nach diesem BoÈrsentag, auf<br />
das in der UmtauscherklaÈrung angegebene Konto<br />
der AnleiheglaÈubiger zu leisten. Die Emittentin<br />
kann die AusuÈbung dieses Wahlrechts mittels<br />
Bekanntmachung gemaÈû § 11 mit Wirkung zu dem<br />
in der Bekanntmachung angegebenen Datum mit<br />
einer Frist von sieben Bankarbeitstagen gegenuÈber<br />
der Umtauschstelle und den AnleiheglaÈubigern<br />
widerrufen oder aÈndern. Die Emittentin kann das<br />
Wahlrecht nach freiem Ermessen beliebig oft<br />
ausuÈben, widerrufen oder aÈndern. Falls zu<br />
irgendeinem Zeitpunkt aus irgendeinem Grund bei<br />
AusuÈbung des Umtauschrechts durch einen<br />
AnleiheglaÈubiger Aktien nicht geliefert werden<br />
koÈnnen, wird die Emittentin (i) unverzuÈglich nach<br />
Maûgabe dieses § 5(5) statt der Lieferung von<br />
Aktien die Zahlung eines Barbetrags in Euro<br />
waÈhlen und (ii), falls die Emittentin zu diesem<br />
Zeitpunkt ihr Wahlrecht schon entsprechend<br />
ausgeuÈbt hat, diese Wahl nicht widerrufen oder<br />
aÈndern, und (iii), falls ein AnleiheglaÈubiger sein<br />
Umtauschrecht ausgeuÈbt hat und der entsprechende<br />
Umtauschtag vor den Wirksamkeitstag fuÈr die<br />
AusuÈbung des Wahlrechts gemaÈû (i) liegt, an<br />
diesen AnleiheglaÈubiger statt der Lieferung von<br />
Aktien einen Barbetrag in Euro zahlen, der gemaÈû<br />
diesem § 5(5) Satz 2 berechnet wird.<br />
(6) Fusionen. (6) Merger.<br />
Falls die Gesellschaft fusioniert oder aufgespalten<br />
wird oder eine andere Form des Unternehmenszusammenschlusses<br />
oder der Unternehmensreorganisation<br />
durchfuÈhrt und infolgedessen<br />
die Aktien gegen andere Wertpapiere<br />
ausgetauscht oder in ihrem <strong>Re</strong>chtsinhalt veraÈndert<br />
werden, ist die Emittentin verp¯ichtet, die Aktien<br />
durch die im Austausch fuÈr die Aktien gelieferten<br />
Wertpapiere oder die auf diese Weise in ihrem<br />
<strong>Re</strong>chtsinhalt veraÈnderten Aktien (jeweils die<br />
``Ersatzwerte'') als Gegenstand des Umtauschrechts<br />
zu ersetzen. Der Umtauschwert fuÈr die<br />
Ersatzwerte wird bestimmt, indem der vor Eintritt<br />
des betreffenden Ereignisses guÈltige Umtauschwert<br />
56<br />
be calculated on the basis of the arithmetic average<br />
of the Closing Price of the Shares on each of the ten<br />
Stock Exchange Trading Days after the Exchange<br />
Date and shall be in addition to any other cash<br />
amounts which may be payable by the Issuer to a<br />
Bondholder upon the valid exercise of the Exchange<br />
Right. Payment of such amounts shall be made as<br />
soon as practicable after the tenth Stock Exchange<br />
Trading Day following the Exchange Date and in<br />
any event not later than seven Business Days after<br />
such Stock Exchange Trading Day to the account of<br />
the Bondholder speci®ed in the Exchange Notice.<br />
Any such election by the Issuer may be revoked or<br />
changed upon not less than seven Business Days'<br />
prior notice to the Exchange Agents and to the<br />
Bondholders in accordance with § 11 from the date<br />
speci®ed in such revocation or change notice. The<br />
Issuer may exercise its right to make, revoke or<br />
change an election at any time in its sole discretion.<br />
If at any time and for any reason Shares cannot be<br />
delivered upon the exercise by a Bondholder of the<br />
Exchange Right, the Issuer shall (i) promptly elect<br />
to pay a cash amount in Euro in lieu of the delivery<br />
of Shares in accordance with this § 5(5), (ii) , if, by<br />
that time, the Issuer has already so elected, refrain<br />
from revoking or changing such election, and (iii) ,<br />
if a Bondholder has exercised the Exchange Right<br />
and the Exchange Date falls before the effective<br />
date of the election pursuant to (i), pay to such<br />
Bondholder a cash amount in Euro in lieu of the<br />
delivery of Shares calculated in accordance with<br />
sentence 2 of this § 5(5).<br />
If the Company shall merge or split-up or enter into<br />
any other form of business combination or<br />
reorganisation, and as a result of such event the<br />
Shares are exchanged for other shares or<br />
reclassi®ed, the Issuer shall procure that the shares<br />
delivered in exchange for the Shares, or the Shares<br />
as reclassi®ed (in each case, the ``Substitute<br />
Shares''), shall replace the Shares as the subject to<br />
the Exchange Right. The Exchange Price for<br />
Substitute Shares shall be determined by<br />
multiplying the Exchange Price applicable before<br />
the effectiveness of such event by the exchange ratio<br />
of Shares for Substitute Shares (expressed as a<br />
fraction, the denominator of which is the number of
mit dem UmtauschverhaÈltnis der Aktien in<br />
Ersatzwerte multipliziert wird (ausgedruÈckt als<br />
Bruch, wobei der Nenner der Anzahl der<br />
Ersatzwerte und der ZaÈhler der Anzahl der Aktien<br />
entspricht).<br />
§ 6<br />
(Schutz bei UÈ bernahmeangebot)<br />
(1) Allgemeines. (1) General.<br />
Im Falle eines OÈ ffentlichen UÈ bernahmeangebots<br />
(wie nachstehend de®niert) sind die Emittentin und<br />
die Garantin (§ 8) nach freiem Ermessen berechtigt,<br />
das OÈ ffentliche UÈ bernahmeangebot anzunehmen<br />
oder abzulehnen, jedoch nur in bezug auf<br />
saÈmtliche Aktien, und nicht nur einen Teil davon.<br />
Die Emittentin und die Garantin duÈrfen das<br />
OÈ ffentliche UÈ bernahmeangebot nicht in bezug auf<br />
diejenigen Aktien annehmen, die im Falle einer<br />
wirksamen AusuÈbung des Umtauschrechts vor dem<br />
letzten Tag des Zeitraums, innerhalb dessen das<br />
OÈ ffentliche UÈ bernahmeangebot bedingungsgemaÈû<br />
angenommen werden kann (der ``Annahmetag''), an<br />
die AnleiheglaÈubiger zu liefern sind.<br />
Im Falle von zwei oder mehreren gleichzeitigen<br />
OÈ ffentlichen UÈ bernahmeangeboten koÈnnen die<br />
Emittentin und die Garantin irgendeines oder<br />
keines der OÈ ffentlichen UÈ bernahmeangebote<br />
annehmen.<br />
Die Emittentin bzw. die Garantin hat den<br />
AnleiheglaÈubigern gemaÈû § 11 bekanntzumachen:<br />
(i) unmittelbar nach dem Annahmetag, ob die<br />
Emittentin, die Garantin bzw. eines ihrer<br />
verbundenen Unternehmen, welches Aktien<br />
haÈlt, das OÈ ffentliche UÈ bernahmeangebot<br />
angenommen hat und ob das OÈ ffentliche<br />
UÈ bernahmeangebot erfolgreich war, und<br />
(ii) nur im Falle der Annahme des OÈ ffentlichen<br />
UÈ bernahmeangebots, sobald wie moÈglich, in<br />
keinem Fall jedoch spaÈter als fuÈnf<br />
Bankarbeitstage nach dem ErfuÈllungstag des<br />
OÈ ffentlichen UÈ bernahmeangebots (wie<br />
nachstehend de®niert), den Betrag und die<br />
Art der Gegenleistung je Aktie, welche die<br />
Emittentin, die Garantin bzw. ein solches<br />
verbundenes Unternehmen erhalten hat oder<br />
im Zusammenhang mit dem OÈ ffentlichen<br />
UÈ bernahmeangebot zu erhalten berechtigt ist.<br />
(2) Annahme<br />
angebots.<br />
eines OÈ ffentlichen UÈ bernahme-<br />
Wenn die Emittentin, die Garantin bzw. eines ihrer<br />
verbundenen Unternehmen, das Aktien haÈlt, ein<br />
57<br />
Substitute Shares and the numerator of which is the<br />
number of Shares).<br />
§ 6<br />
(Event Risk Protection)<br />
In the event of a Public Offer (as de®ned below), the<br />
Issuer and the Guarantor (§ 8) shall have absolute<br />
discretion to accept or reject the Public Offer, but<br />
only for all but not part of the Shares. The Issuer<br />
and the Guarantor may not accept the Public Offer<br />
with respect to the Shares that have to be delivered<br />
to Bondholders upon valid exercise of the Exchange<br />
Right prior to the last day of the period within<br />
which the Public Offer can be accepted in<br />
accordance with its terms (the ``Acceptance Date'').<br />
In the event of two or more simultaneous Public<br />
Offers, the Issuer and the Guarantor may accept<br />
any or none of the Public Offers.<br />
The Issuer or the Guarantor, as the case may be,<br />
shall, in accordance with § 11, notify to the<br />
Bondholders:<br />
(i) its decision immediately after the Acceptance<br />
Date, whether the Issuer, the Guarantor or any<br />
of their af®liates holding Shares, as the case<br />
may be, has accepted the Public Offer and<br />
whether the Public Offer was successful, and<br />
(ii) only in the event of acceptance of the Public<br />
Offer, as soon as practicable but in any event<br />
not later than ®ve Business Days after the<br />
Public Offer Closing Date (as de®ned below),<br />
the amount and type of consideration per<br />
Share the Issuer, the Guarantor or such<br />
af®liate, as the case may be, has received or is<br />
entitled to receive in the context of the Public<br />
Offer.<br />
(2) Acceptance of a Public Offer.<br />
If the Issuer, the Guarantor or any of their af®liates<br />
holding Shares, as the case may be, has accepted a
OÈ ffentliches UÈ bernahmeangebot angenommen hat,<br />
gelten mit Wirkung ab dem jeweiligen ErfuÈllungstag<br />
des OÈ ffentlichen UÈ bernahmeangebots die folgenden<br />
Bestimmungen:<br />
(a) Im Falle eines Ausschlieûlichen Sachangebots<br />
(wie nachstehend de®niert) erhaÈlt jeder<br />
AnleiheglaÈubiger bei AusuÈbung des<br />
Umtauschrechts je Teilschuldverschreibung<br />
Angebotene Sachwerte (wie nachstehend<br />
de®niert) in einem Umfang, der gemaÈû<br />
folgender Formel berechnet wird:<br />
Public Offer, the following provisions shall apply<br />
with effect from such Public Offer Closing Date:<br />
(a) In the event of an All Property Offer (as<br />
de®ned below), each Bondholder shall, upon<br />
exercise of the Exchange Right, receive per<br />
Bond an amount of Offered Property (as<br />
de®ned below) calculated in accordance with<br />
the following formula:<br />
A = E 6 Angebotenes VermoÈgen A = E 6 Offered Property<br />
wobei folgendes gilt: where:<br />
A = die Menge an Angebotenen Sachwerten,<br />
die im Anschluû an das OÈ ffentliche<br />
UÈ bernahmeangebot einem AnleiheglaÈubiger<br />
in bezug auf jede Teilschuldverschreibung<br />
bei AusuÈbung des<br />
Umtauschrechts zu liefern ist,<br />
E = das unmittelbar vor dem ErfuÈllungstag<br />
des OÈ ffentlichen UÈ bernahmeangebots<br />
guÈltige UmtauschverhaÈltnis.<br />
(b) Im Falle eines Ausschlieûlichen Barangebots<br />
(wie nachstehend de®niert) erhaÈlt jeder<br />
AnleiheglaÈubiger bei AusuÈbung des<br />
Umtauschrechts je Teilschuldverschreibung<br />
einen Barbetrag, der gemaÈû folgender Formel<br />
berechnet wird:<br />
B = E 6 Angebotener Barbetrag + PraÈmien-<br />
Ausgleichsbetrag<br />
wobei folgendes gilt: where:<br />
B = der Barbetrag, der einem AnleiheglaÈubiger<br />
im Anschluû an das<br />
OÈ ffentliche UÈ bernahmeangebot in bezug<br />
auf jede Teilschuldverschreibung bei<br />
AusuÈbung des Umtauschrechts zu zahlen<br />
ist,<br />
E = das unmittelbar vor dem ErfuÈllungstag<br />
des OÈ ffentlichen UÈ bernahmeangebots<br />
guÈltige UmtauschverhaÈltnis,<br />
der PraÈmien-Ausgleichsbetrag wird gemaÈû<br />
folgender Formel berechnet:<br />
PC = K 2 6 (Kapital ± IP) 6 T<br />
C<br />
wobei folgendes gilt: where:<br />
K = IP<br />
MP<br />
K = MP<br />
IP<br />
wenn MP _4 IP K = IP<br />
MP<br />
wenn MP 5 IP K = MP<br />
IP<br />
58<br />
A = the amount of Offered Property<br />
deliverable to a Bondholder in respect of<br />
each Bond upon exercise of the Exchange<br />
Right following the Public Offer,<br />
E = the Exchange Ratio applicable<br />
immediately prior to the Public Offer<br />
Closing Date.<br />
(b) In the event of an All Cash Offer (as de®ned<br />
below), each Bondholder shall, upon exercise<br />
of the Exchange Right, receive per Bond a cash<br />
amount calculated in accordance with the<br />
following formula:<br />
B = E 6 Offered Cash + Premium<br />
Compensation<br />
B = the amount of cash deliverable to a<br />
Bondholder in respect of each Bond<br />
upon exercise of the Exchange Right<br />
following the Public Offer,<br />
E = the Exchange Ratio applicable<br />
immediately prior to the Public Offer<br />
Closing Date,<br />
the Premium Compensation shall be calculated<br />
according to the following formula:<br />
PC = K 2 6 (Principal ± IP) 6 T<br />
C<br />
where MP _4 IP<br />
where MP 5 IP
PC = PraÈmien-Ausgleichsbetrag<br />
schuldverschreibung<br />
je Teil- PC = Premium Compensation per Bond<br />
Kapital = e 10.000 Principal = e 10,000<br />
IP = Umtauschwert je Teilschuldverschreibung<br />
auf der Grundlage<br />
des Schluûkurses der Aktien am<br />
4. September 2001, d.h. e 7.944,16<br />
MP = Umtauschwert je Teilschuldverschreibung<br />
am Annahmetag, der<br />
dem Produkt aus E und dem<br />
arithmetischen Mittel der Schluûkurse<br />
der Aktien an den fuÈnf<br />
BoÈrsentagen vor dem und einschlieûlich<br />
entspricht<br />
des Annahmetags<br />
C = Dauer in Tagen vom 14. September<br />
2001 bis einschlieûlich zu dem Tag,<br />
an dem die Emittentin ihre Option<br />
ausuÈben kann, die Teilschuld-<br />
T =<br />
verschreibungen gemaÈû § 3(3)(a) vor<br />
EndfaÈlligkeit in bar zuruÈckzuzahlen)<br />
Dauer in Tagen vom Annahmetag<br />
bis einschlieûlich zu dem Tag, an<br />
dem die Emittentin ihre Option<br />
ausuÈben kann, die Teilschuldverschreibungen<br />
gemaÈû § 3(3)(a) vor<br />
EndfaÈlligkeit in bar zuruÈckzuzahlen.<br />
(c) Im Falle eines Teilweisen Barangebots (wie<br />
nachstehend de®niert) erhaÈlt jeder<br />
AnleiheglaÈubiger bei AusuÈbung des<br />
Umtauschrechts je Teilschuldverschreibung (i)<br />
in bezug auf die in dem Angebot enthaltenen<br />
Angebotenen Sachwerte Angebotene<br />
Sachwerte in einem Umfang, der gemaÈû<br />
§ 6(2)(a) berechnet wird, und (ii) in bezug auf<br />
den in dem Angebot enthaltenen Angebotenen<br />
Barbetrag einen Barbetrag, der gemaÈû § 6(2)(b)<br />
berechnet wird.<br />
IP = Exchange value for one Bond based<br />
on the Closing Price of the Shares on<br />
September 4, 2001, i.e. e 7,944.16<br />
MP = Exchange value for one Bond on the<br />
Acceptance Date, equal to the<br />
product of E and the arithmetic<br />
average of the Closing Price of the<br />
Shares on each of the ®ve Stock<br />
Exchange Trading Days preceding,<br />
and including, the Acceptance Date<br />
C = Duration in days from September 14,<br />
2001 to, and including, the date on<br />
which the Issuer may exercise its<br />
option to redeem the Bonds in cash<br />
prior to maturity pursuant to<br />
§ 3(3)(a))<br />
T = Duration in days from the<br />
Acceptance Date to, and including,<br />
the date on which the Issuer may<br />
exercise its option to redeem the<br />
Bonds in cash prior to maturity<br />
pursuant to § 3(3)(a).<br />
(c) In the event of a Partly Cash Offer (as de®ned<br />
below), each Bondholder shall, upon exercise<br />
of the Exchange Right, receive per Bond (i) as<br />
regards the Offered Property comprised in the<br />
offer an amount of Offered Property calculated<br />
in accordance with § 6(2)(a) and (ii) as regards<br />
the Offered Cash Amount comprised in the<br />
offer an amount of Offered Cash calculated in<br />
accordance with § 6(2)(b).<br />
(3) De®nitionen. (3) De®nitions.<br />
Im Sinne dieses § 6 bedeutet: For the purposes of this § 6:<br />
``Angebotener Barbetrag'' den von der Emittentin,<br />
der Garantin bzw. einem ihrer verbundenen<br />
Unternehmen, das Aktien haÈlt, als Gegenleistung<br />
fuÈr eine Aktie in dem OÈ ffentlichen UÈ bernahmeangebot<br />
erhaltenen Barbetrag in Euro<br />
(oder, soweit anwendbar, den zu einem Kurs, den<br />
die EuropaÈische Zentralbank am Tag des Erhalts<br />
dieses Barbetrags festgelegt hat und der von <strong>Re</strong>uters<br />
auf Seite ECB37 gegen 11 Uhr (Frankfurter Zeit)<br />
veroÈffentlicht wird, in Euro umgerechneten Betrag).<br />
Falls die Angebotenen Sachwerte Wertpapiere<br />
umfassen, die keine Aktien sind, wie zum Beispiel<br />
59<br />
``Offered Cash'' means the cash amount received by<br />
the Issuer, the Guarantor or any of their af®liates<br />
holding Shares, as the case may be, in Euro (or,<br />
where applicable, as converted into Euro at the rate<br />
®xed by the European Central Bank on the date of<br />
receipt of such cash amount, as published on<br />
<strong>Re</strong>uters page ECB37 at around 11 hours<br />
(Frankfurt time)) as consideration for one Share<br />
in the Public Offer. If the Offered Property<br />
comprises securities which are not shares, such as<br />
debt instruments not linked to the variation of a<br />
share price or debt instruments not giving rights to
nicht auf die AÈ nderung des Kurses von Aktien<br />
bezogene Schuldverschreibungen oder<br />
Schuldverschreibungen, die nicht durch<br />
Umwandlung, Umtausch oder RuÈckerstattung<br />
Bezugsrechte fuÈr Aktien gewaÈhren, Wertpapiere,<br />
die OptionsvertraÈge oder bestimmte <strong>Re</strong>chte<br />
beinhalten (Optionsscheine zur Zeichnung oder<br />
zum Erwerb von Aktien oder sonstigen<br />
Wertpapieren) mit einer beschraÈnkten Dauer,<br />
werden diese Wertpapiere fuÈr die Zwecke von<br />
§ 6(2) als Angebotener Barbetrag behandelt in<br />
HoÈhe des von der Berechnungsstelle (§ 13) auf der<br />
Grundlage des am Annahmetag veroÈffentlichten<br />
letzten Kurses der Wertpapiere an der BoÈrse, an der<br />
sie gehandelt werden, bestimmten Barwertes oder,<br />
falls sie nicht an einer BoÈrse gehandelt werden, in<br />
HoÈhe des von der Berechnungsstelle mit Hilfe eines<br />
international anerkannten unabhaÈngigen SachverstaÈndigen<br />
ermittelten theoretischen Wertes.<br />
``Angebotene Sachwerte'' jegliche Gegenleistung,<br />
welche die Emittentin, die Garantin bzw. eines<br />
ihrer verbundenen Unternehmen fuÈr eine Aktie<br />
erhaÈlt und die kein Angebotener Barbetrag ist.<br />
``Ausschlieûliches Barangebot'' ein OÈ ffentliches<br />
UÈ bernahmeangebot, bei dem die Emittentin, die<br />
Garantin bzw. eines ihrer verbundenen Unternehmen<br />
ausschlieûlich Angebotene BarbetraÈge als<br />
Gegenleistung fuÈr die Aktien erhaÈlt.<br />
``Ausschlieûliches Sachangebot'' ein OÈ ffentliches<br />
UÈ bernahmeangebot, bei dem die Emittentin, die<br />
Garantin bzw. eines ihrer verbundenen<br />
Unternehmen ausschlieûlich Angebotene Sachwerte<br />
als Gegenleistung fuÈr die Aktien erhaÈlt.<br />
``ErfuÈllungstag des OÈ ffentlichen UÈ bernahmeangebots''<br />
der Tag, an dem die Emittentin,<br />
die Garantin bzw. eines ihrer verbundenen<br />
Unternehmen die Gegenleistung fuÈr die Aktien<br />
erhaÈlt.<br />
``OÈ ffentliches UÈ bernahmeangebot'' jegliches<br />
Angebot, sei es gemaÈû der franzoÈsischen<br />
UÈ bernahmevorschriften oder anderen anwendbaren<br />
Vorschriften, oder ganz allgemein, jegliches<br />
Angebot, das sich an die Inhaber der Aktien richtet<br />
(einschlieûlich eines Angebots der Gesellschaft,<br />
welches sich an die Inhaber der Aktien richtet).<br />
``Teilweises Barangebot'' ein OÈ ffentliches<br />
UÈ bernahmeangebot, bei dem die Emittentin, die<br />
Garantin bzw. eines ihrer verbundenen Unternehmen<br />
sowohl Angebotene BarbetraÈge als auch<br />
Angebotene Sachwerte als Gegenleistung fuÈr die<br />
Aktien erhaÈlt.<br />
60<br />
subscribe for shares by way of conversion, exchange<br />
or reimbursement, securities representing optional<br />
contracts or speci®c rights (warrants to subscribe or<br />
acquire shares or other securities) having a limited<br />
duration, such securities will be deemed, for the<br />
purpose of § 6(2), to be Offered Cash for an amount<br />
equal to their cash value in Euro determined by the<br />
Calculation Agent (§ 13) on the basis of their ®nal<br />
price quoted on the Acceptance Date on the stock<br />
exchange on which they are listed or, if they are not<br />
listed, equal to their theoretical value calculated by<br />
the Calculation Agent with the assistance of an<br />
independent expert of recognized international<br />
standing.<br />
``Offered Property'' means any consideration<br />
received by the Issuer, the Guarantor or any of<br />
their af®liates, as the case may be, as consideration<br />
for one Share which is not Offered Cash.<br />
``All Cash Offer'' means a Public Offer where the<br />
Issuer, the Guarantor or any of their af®liates, as<br />
the case may be, receives exclusively Offered Cash<br />
as consideration for the Shares.<br />
``All Property Offer'' means a Public Offer where<br />
the Issuer, the Guarantor or any of their af®liates,<br />
as the case may be, receives exclusively Offered<br />
Property as consideration for the Shares.<br />
``Public Offer Closing Date'' means the day on<br />
which the consideration for the Shares has been<br />
received by the Issuer, the Guarantor or any of their<br />
af®liates, as the case may be.<br />
``Public Offer'' means any takeover bid whether<br />
according to the French takeover regulations or any<br />
other applicable regulations, or more generally, any<br />
offer which is addressed to the holders of Shares<br />
(including an offer by the Company which is<br />
addressed to the holders of Shares to acquire<br />
Shares).<br />
``Partly Cash Offer'' means a Public Offer where the<br />
Issuer, the Guarantor or any of their af®liates, as<br />
the case may be, receives Offered Cash as well as<br />
Offered Property as consideration for the Shares.
``UmtauschverhaÈltnis'' e 10.000 dividiert durch den<br />
im jeweiligen Zeitpunkt guÈltigen Umtauschwert.<br />
§ 7<br />
(Status; NegativerklaÈrung der Emittentin)<br />
(1) Status der Teilschuldverschreibungen. (1) Status of the Bonds.<br />
Die Teilschuldverschreibungen begruÈnden unbesicherte<br />
und nicht nachrangige Verp¯ichtungen<br />
der Emittentin, die im gleichen Rang mit allen<br />
anderen gegenwaÈrtigen und zukuÈnftigen<br />
unbesicherten und nicht nachrangigen<br />
Verbindlichkeiten der Emittentin stehen.<br />
(2) NegativerklaÈrung. (2) Negative Pledge.<br />
Die Emittentin verp¯ichtet sich, solange bis Kapital<br />
und Zinsen sowie etwaige weitere auf die<br />
Teilschuldverschreibungen zahlbare BarbetraÈge an<br />
die Zahlstellen (§ 13) gezahlt und alle<br />
Verp¯ichtungen zur Lieferung von Aktien oder<br />
sonstigen VermoÈgenswerten erfuÈllt worden sind,<br />
keine Sicherheiten an ihren VermoÈgensgegenstaÈnden<br />
zur Besicherung gegenwaÈrtiger oder<br />
zukuÈnftiger Kapitalmarktverbindlichkeiten (wie<br />
nachstehend de®niert) einschlieûlich hierfuÈr<br />
abgegebener Garantien zu bestellen, es sei denn,<br />
daû die Teilschuldverschreibungen gleichzeitig und<br />
im gleichen Rang an dieser Sicherheit anteilig<br />
teilnehmen oder den AnleiheglaÈubigern eine<br />
andere Sicherheit gewaÈhrt wird, die von einer<br />
international anerkannten unabhaÈngigen<br />
WirtschaftspruÈfungsgesellschaft als gleichwertige<br />
Sicherheit anerkannt wird. Die Verp¯ichtung<br />
gemaÈû vorstehendem Satz ®ndet keine Anwendung<br />
auf eine Sicherheit, (i) deren Bestellung nach<br />
geltendem <strong>Re</strong>cht zwingend ist oder (ii) die zur<br />
Erlangung einer staatlichen Genehmigung<br />
erforderlich ist. Eine Sicherheit, die gemaÈû dem<br />
ersten Satz dieses § 7(2) zu leisten ist, kann auch<br />
zugunsten einer Person bestellt werden, die als<br />
TreuhaÈnder (wie nachstehend de®niert) der<br />
AnleiheglaÈubiger handelt. ``Kapitalmarktverbindlichkeit''<br />
ist jede gegenwaÈrtige oder zukuÈnftige<br />
Verp¯ichtung zur RuÈckzahlung aufgenommener<br />
GeldbetraÈge durch die Emittentin, die Garantin<br />
(§ 8) oder Dritte, die durch Schuldverschreibungen<br />
oder sonstige Wertpapiere mit einer Anfangslaufzeit<br />
von mehr als einem Jahr, die an einer BoÈrse oder an<br />
einem anderen anerkannten Wertpapiermarkt<br />
zugelassen, notiert oder gehandelt werden oder<br />
werden koÈnnen, verbrieft oder verkoÈrpert ist.<br />
``TreuhaÈnder'' ist eine Bank, ein Finanzinstitut,<br />
eine WirtschaftspruÈfungs- oder Steuerberatungsgesellschaft<br />
von international anerkanntem Rang,<br />
die fuÈr die AnleiheglaÈubiger nach Ernennung durch<br />
die Emittentin und mit Zustimmung der<br />
Hauptzahlstelle (§ 13) treuhaÈnderisch handelt.<br />
61<br />
``Exchange Ratio'' means e 10,000 divided by the<br />
then applicable Exchange Price.<br />
§ 7<br />
(Status; Negative Pledge of the Issuer)<br />
The Bonds constitute unsecured and<br />
unsubordinated obligations of the Issuer which<br />
shall rank at least pari passu with all other present<br />
or future unsecured and unsubordinated obligations<br />
of the Issuer.<br />
The Issuer undertakes until such time as principal<br />
and interest, as well as any other cash amounts<br />
payable under or in respect of the Bonds have been<br />
paid to the Paying Agents (§ 13) and all obligations<br />
to deliver Shares or other property have been<br />
ful®lled, not to provide any security upon its<br />
assets for any present or future Capital Market<br />
Indebtedness (as de®ned below), including any<br />
guarantee in respect thereof, unless the Bonds at<br />
the same time share pari passu and pro rata in such<br />
security or unless such other security, as shall have<br />
been approved by an independent accounting ®rm<br />
of recognized international standing as being<br />
equivalent security, has been made available to the<br />
Bondholders. The undertaking pursuant to the<br />
preceding sentence shall not apply to a security (i)<br />
which is mandatory according to applicable laws, or<br />
(ii) which is a prerequisite for governmental<br />
approvals. Any security which is to be provided<br />
pursuant to the ®rst sentence of this § 7(2) may also<br />
be provided to a person acting as Trustee (as de®ned<br />
below) for the Bondholders. ``Capital Market<br />
Indebtedness'' means any present or future<br />
obligation for the repayment of borrowed money<br />
of the Issuer, the Guarantor (§ 8) or any third party,<br />
which is in the form of, or represented or evidenced<br />
by, bonds, notes or other securities with an original<br />
maturity of more than one year which are, or are<br />
capable of being, quoted, listed, dealt in or traded<br />
on a stock exchange or other recognized securities<br />
market. ``Trustee'' means a bank, ®nancial<br />
institution, auditing or accounting ®rm of<br />
recognized international standing acting as trustee<br />
for the Bondholders, as appointed by the Issuer<br />
with the consent of the Principal Paying Agent<br />
(§ 13).
§ 8<br />
(Garantie und NegativerklaÈrung der Garantin)<br />
§ 8<br />
(Guarantee and Negative Pledge of the Guarantor)<br />
(1) Garantie und NegativerklaÈrung. (1) Guarantee and Negative Pledge.<br />
GemaÈû einer Verp¯ichtungserklaÈrung vom<br />
12. September 2001 (die ``Verp¯ichtungserklaÈrung'')<br />
hat <strong>ERGO</strong> Versicherungsgruppe<br />
Aktiengesellschaft, DuÈsseldorf (die ``Garantin''):<br />
(a) unbedingt und unwiderru¯ich die ordnungsgemaÈûe<br />
Zahlung von Kapital und Zinsen auf<br />
die Teilschuldverschreibungen sowie aller<br />
sonstigen etwaigen von der Emittentin gemaÈû<br />
diesen Anleihebedingungen zahlbaren BetraÈge<br />
garantiert, und<br />
(b) unbedingt und unwiderru¯ich die Lieferung<br />
der Aktien und der sonstigen VermoÈgenswerte<br />
garantiert, die gemaÈû diesen Anleihebedingungen<br />
zu liefern sind ((a) und (b)<br />
zusammen die ``Garantie''), und<br />
(c) sich gegenuÈber den AnleiheglaÈubigern<br />
verp¯ichtet, solange bis Kapital und Zinsen<br />
sowie etwaige weitere auf die Teilschuldverschreibungen<br />
zahlbare BarbetraÈge an die<br />
Zahlstellen (§ 13) gezahlt und alle Verp¯ichtungen<br />
zur Lieferung von Aktien oder<br />
sonstigen VermoÈgenswerten erfuÈllt worden<br />
sind, keine Sicherheiten an ihren<br />
VermoÈgensgegenstaÈnden zur Besicherung<br />
gegenwaÈrtiger oder zukuÈnftiger Kapitalmarktverbindlichkeiten<br />
einschlieûlich hierfuÈr<br />
abgegebener Garantien zu bestellen, es sei<br />
denn, daû die Teilschuldverschreibungen<br />
gleichzeitig und im gleichen Rang an dieser<br />
Sicherheit anteilig teilnehmen oder den<br />
AnleiheglaÈubigern eine andere Sicherheit<br />
gewaÈhrt wird, die von einer international<br />
anerkannten unabhaÈngigen WirtschaftspruÈfungsgesellschaft<br />
als gleichwertige<br />
Sicherheit anerkannt wird. Die Verp¯ichtung<br />
gemaÈû vorstehendem Satz ®ndet keine<br />
Anwendung auf eine Sicherheit, (i) deren<br />
Bestellung nach geltendem <strong>Re</strong>cht zwingend ist<br />
oder (ii) die zur Erlangung einer staatlichen<br />
Genehmigung erforderlich ist. Eine Sicherheit,<br />
die gemaÈû dem ersten Satz dieses § 8(1)(c) zu<br />
leisten ist, kann auch zugunsten einer Person<br />
bestellt werden, die als TreuhaÈnder der<br />
AnleiheglaÈubiger handelt.<br />
Pursuant to an undertaking dated September 12,<br />
2001 (the ``Undertaking''), <strong>ERGO</strong><br />
Versicherungsgruppe Aktiengesellschaft,<br />
DuÈsseldorf, Federal <strong>Re</strong>public of Germany (the<br />
``Guarantor''):<br />
(a) has unconditionally and irrevocably<br />
guaranteed the due payment of principal of,<br />
and interest on, the Bonds and all other<br />
amounts, if any, payable by the Issuer under<br />
these Conditions of Issue, and<br />
(b) has unconditionally and irrevocably<br />
guaranteed the delivery of the Shares and any<br />
other property to be delivered under these<br />
Conditions of Issue ((a) and (b) together, the<br />
``Guarantee''), and<br />
(c) has undertaken towards the Bondholders, until<br />
such time as principal and interest, as well as<br />
any other cash amounts payable under or in<br />
respect of the Bonds, have been paid to the<br />
Paying Agents (§ 13) and all obligations to<br />
deliver Shares or other property have been<br />
ful®lled, not to provide any security upon its<br />
assets for any present or future Capital Market<br />
Indebtedness, including any guarantee in<br />
respect thereof, unless the Bonds at the same<br />
time share pari passu and pro rata in such<br />
security or unless such other security as shall<br />
be approved by an independent accounting<br />
®rm of recognized international standing as<br />
being equivalent security has been made<br />
available to the Bondholders. The<br />
undertaking pursuant to the preceding<br />
sentence shall not apply to a security (i)<br />
which is mandatory according to applicable<br />
laws, or (ii) which is a prerequisite for<br />
governmental approvals. Any security which<br />
is to be provided pursuant to the ®rst sentence<br />
of this § 8(1)(c) may also be provided to a<br />
person acting as Trustee for the Bondholders.<br />
(2) Vertrag zugunsten Dritter. (2) Third-Party Bene®ciary Contract.<br />
Die Verp¯ichtungserklaÈrung stellt einen Vertrag<br />
zugunsten der AnleiheglaÈubiger als beguÈnstigte<br />
Dritte gemaÈû § 328(1) BGB dar, die jedem<br />
AnleiheglaÈubiger das <strong>Re</strong>cht gibt, die ErfuÈllung der<br />
62<br />
The Undertaking constitutes a contract in favor of<br />
the Bondholders as third party bene®ciaries<br />
pursuant to § 328(1) of the German Civil Code<br />
giving rise to the right of each Bondholder to
Verp¯ichtungserklaÈrung unmittelbar von der<br />
Garantin zu verlangen und die Verp¯ichtungserklaÈrung<br />
unmittelbar gegen die Garantin<br />
durchzusetzen. Kopien der Verp¯ichtungserklaÈrung<br />
sind fuÈr die AnleiheglaÈubiger bei den<br />
GeschaÈftsstellen der Zahlstellen kostenlos<br />
erhaÈltlich.<br />
§9<br />
(KuÈndigungsgruÈnde)<br />
(1) KuÈndigungsgruÈnde. (1) Events of Default.<br />
Jeder AnleiheglaÈubiger ist berechtigt, alle oder<br />
einzelne seiner Teilschuldverschreibungen zu<br />
kuÈndigen und deren sofortige RuÈckzahlung zum<br />
Nennbetrag zuzuÈglich aufgelaufener Zinsen zu<br />
verlangen, falls aus irgendeinem Grund:<br />
(a) ein gemaÈû diesen Anleihebedingungen<br />
geschuldeter Betrag nicht von oder im<br />
Auftrag der Emittentin innerhalb von 15<br />
Tagen nach dem betreffenden Zahlungstag<br />
gezahlt wird, oder<br />
(b) die Emittentin nicht gemaÈû diesen<br />
Anleihebedingungen innerhalb von 30 Tagen<br />
Aktien liefert, nachdem eine Zahlstelle (§ 13)<br />
von einem AnleiheglaÈubiger gemaÈû § 9(2) eine<br />
Benachrichtigung uÈber eine solche NichterfuÈllung<br />
erhalten hat, oder<br />
(c) die Emittentin oder die Garantin eine andere<br />
Verp¯ichtung gemaÈû diesen Anleihebedingungen<br />
bzw. der Verp¯ichtungserklaÈrung nicht<br />
ordnungsgemaÈû erfuÈllt und die NichterfuÈllung<br />
laÈnger als 60 Tage fortdauert, nachdem eine<br />
Zahlstelle hieruÈber von einem AnleiheglaÈubiger<br />
gemaÈû § 9(2) eine Benachrichtigung erhalten<br />
hat, oder<br />
(d) die Emittentin, die Garantin oder eine<br />
Wesentliche Tochtergesellschaft eine faÈllige<br />
Zahlungsverp¯ichtung, die sich aus einer<br />
Kapitalmarktverbindlichkeit oder einer<br />
Garantie oder HaftungsuÈbernahme fuÈr eine<br />
Zahlungsverp¯ichtung aus einer Kapitalmarktverbindlichkeit<br />
Dritter ergibt, nicht<br />
erfuÈllt und die nicht erfuÈllten Zahlungsverp¯ichtungen<br />
insgesamt e 20 Millionen<br />
oder den entsprechenden Gegenwert in einer<br />
anderen WaÈhrung uÈbersteigen, und diese<br />
NichterfuÈllung laÈnger als 30 Tage, nachdem<br />
eine Zahlstelle hieruÈber von einem<br />
AnleiheglaÈubiger gemaÈû § 9(2) eine Benachrichtigung<br />
erhalten hat, fortdauert; oder, falls<br />
eine derartige Zahlungsverp¯ichtung der<br />
Emittentin, der Garantin bzw. einer<br />
Wesentlichen Tochtergesellschaft aufgrund<br />
63<br />
require performance of the Undertaking directly<br />
from the Guarantor and to enforce the Undertaking<br />
directly against the Guarantor. Copies of the<br />
Undertaking are available free of charge to the<br />
Bondholders at the of®ces of the Paying Agents.<br />
§9<br />
(Events of Default)<br />
Each Bondholder shall be entitled to declare any or<br />
all of its Bonds due and demand immediate<br />
redemption thereof at their principal amount plus<br />
accrued interest thereon in the event that, for<br />
whatever reason:<br />
(a) any amount due under these Conditions of<br />
Issue has not been paid by or on behalf of the<br />
Issuer within 15 days from the relevant<br />
Payment Date, or<br />
(b) the Issuer fails to deliver Shares as provided for<br />
in these Conditions of Issue within 30 days<br />
after a Paying Agent (§ 13) has received notice<br />
of such failure from a Bondholder in<br />
accordance with § 9(2), or<br />
(c) the Issuer or the Guarantor fails to duly<br />
perform any other obligation under these<br />
Conditions of Issue or the Undertaking, as<br />
the case may be, and any such failure continues<br />
for more than 60 days after a Paying Agent has<br />
received notice thereof from a Bondholder in<br />
accordance with § 9(2), or<br />
(d) the Issuer, the Guarantor or any Material<br />
Subsidiary fails to ful®l any payment<br />
obligation when due, arising from any<br />
Capital Market Indebtedness or from any<br />
guarantee or indemnity for a payment<br />
obligation arising from any Capital Market<br />
Indebtedness of a third party, and the total<br />
unpaid amount exceeds e 20 million or the<br />
equivalent in another currency, and any such<br />
failure continues for more than 30 days after a<br />
Paying Agent has received notice thereof from<br />
a Bondholder in accordance with § 9(2); or any<br />
such payment obligation of the Issuer, the<br />
Guarantor or any Material Subsidiary, as the<br />
case may be, becomes due prematurely by<br />
reason of the occurrence of an event relating to<br />
the Issuer, the Guarantor or any Material<br />
Subsidiary or a failure by the Issuer, the
eines in der Person der Emittentin, der<br />
Garantin oder einer Wesentlichen Tochtergesellschaft<br />
eingetretenen Ereignisses oder der<br />
NichterfuÈllung einer der Bedingungen dieser<br />
Zahlungsverp¯ichtung durch die Emittentin,<br />
die Garantin oder eine Wesentliche<br />
Tochtergesellschaft vorzeitig faÈllig gestellt<br />
wird; oder, falls eine fuÈr eine derartige<br />
Zahlungsverp¯ichtung bestellte Sicherheit<br />
verwertet wird, oder<br />
(e) die Emittentin, die Garantin oder eine<br />
Wesentliche Tochtergesellschaft ihre<br />
Zahlungen allgemein einstellt, oder<br />
(f) die Emittentin, die Garantin oder eine<br />
Wesentliche Tochtergesellschaft ihre ZahlungsunfaÈhigkeit<br />
bekanntgibt, oder<br />
(g) die Emittentin, die Garantin oder eine<br />
Wesentliche Tochtergesellschaft in<br />
Liquidation tritt, es sei denn, daû dies im<br />
Zusammenhang mit einer Verschmelzung oder<br />
einer anderen Form des Zusammenschlusses<br />
mit einer anderen Gesellschaft oder einer<br />
Umstrukturierung steht, bei der diese andere<br />
oder neue Gesellschaft alle Verp¯ichtungen<br />
und Verbindlichkeiten der Emittentin, der<br />
Garantin oder der Wesentlichen Tochtergesellschaft<br />
uÈbernimmt, oder<br />
(h) ein Gericht in der Bundesrepublik Deutschland<br />
oder einem anderen Land ein<br />
Insolvenzverfahren oder ein aÈhnliches<br />
Verfahren in bezug auf die VermoÈgensgegenstaÈnde<br />
der Emittentin, der Garantin<br />
oder einer Wesentlichen Tochtergesellschaft<br />
einleitet und dieses Verfahren nicht innerhalb<br />
von 60 Tagen eingestellt oder ausgesetzt wird;<br />
oder, falls die Emittentin, die Garantin, eine<br />
Wesentliche Tochtergesellschaft oder das<br />
Bundesaufsichtsamt fuÈr das Versicherungswesen<br />
die EroÈffnung eines solchen<br />
Verfahrens in bezug auf die VermoÈgensgegenstaÈnde<br />
der Emittentin, der Garantin<br />
oder einer Wesentlichen Tochtergesellschaft<br />
beantragt, oder, falls die Emittentin, die<br />
Garantin oder eine Wesentliche Tochtergesellschaft<br />
eine allgemeine Schuldenregelung<br />
zugunsten ihrer GlaÈubiger anbietet oder trifft;<br />
oder<br />
(i) es fuÈr die Emittentin oder die Garantin<br />
unzulaÈssig wird, ihre Verp¯ichtungen im<br />
Zusammenhang mit den Teilschuldverschreibungen<br />
bzw. der Verp¯ichtungserklaÈrung<br />
zu erfuÈllen.<br />
64<br />
Guarantor or any Material Subsidiary to<br />
comply with any of the terms of any such<br />
payment obligation; or a security interest<br />
granted for any such payment obligation is<br />
being enforced, or<br />
(e) the Issuer, the Guarantor or any Material<br />
Subsidiary suspends its payments generally, or<br />
(f) the Issuer, the Guarantor or any Material<br />
Subsidiary announces its inability to meet its<br />
payment obligations, or<br />
(g) the Issuer, the Guarantor or any Material<br />
Subsidiary enters into liquidation except in<br />
connection with a merger, consolidation or<br />
other form of combination with another<br />
company or in connection with a<br />
reorganization and such other or new<br />
company assumes all obligations and<br />
liabilities of the Issuer, the Guarantor or such<br />
Material Subsidiary, or<br />
(h) a court in the Federal <strong>Re</strong>public of Germany or<br />
any other country institutes insolvency<br />
proceedings or similar proceedings with<br />
respect to the assets of the Issuer, the<br />
Guarantor or any Material Subsidiary and<br />
such proceedings have not been discharged or<br />
stayed within 60 days; or the Issuer, the<br />
Guarantor, any Material Subsidiary or the<br />
German Federal Insurance Supervisory<br />
Authority (Bundesaufsichtsamt fuÈr das<br />
Versicherungswesen) applies for institution<br />
of such proceedings with respect to the assets<br />
of the Issuer, the Guarantor or any Material<br />
Subsidiary, or the Issuer, the Guarantor or any<br />
Material Subsidiary offers or makes a general<br />
arrangement for the bene®t of its creditors; or<br />
(i) it becomes unlawful for the Issuer or the<br />
Guarantor to ful®ll its obligations under the<br />
Bonds or the Undertaking, as the case may be.
Das <strong>Re</strong>cht, die Teilschuldverschreibungen faÈllig zu<br />
stellen, erlischt, falls der KuÈndigungsgrund vor<br />
AusuÈbung dieses <strong>Re</strong>chts geheilt wird. Eine<br />
``Wesentliche Tochtergesellschaft'' ist (i) eine<br />
Tochtergesellschaft der Garantin, deren gesamte<br />
VermoÈgensgegenstaÈnde, NettoerloÈse oder<br />
Nettogewinn mindestens 10% der konsolidierten<br />
gesamten VermoÈgensgegenstaÈnde, NettoerloÈse bzw.<br />
des Nettogewinns der Garantin darstellen, wobei<br />
die diesbezuÈglich erforderlichen Berechnungen auf<br />
der Basis des zu diesem Zeitpunkt aktuellen<br />
gepruÈften Jahresabschlusses dieser Tochtergesellschaft<br />
(oder, falls verfuÈgbar, des<br />
konsolidierten gepruÈften Jahresabschlusses) und<br />
des zu diesem Zeitpunkt aktuellen gepruÈften<br />
konsolidierten Jahresabschlusses der Garantin und<br />
ihrer Tochtergesellschaften zu erfolgen haben, oder<br />
(ii) eine Gesellschaft, auf die alle oder im<br />
wesentlichen alle VermoÈgensgegenstaÈnde und der<br />
GeschaÈftsbetrieb einer Tochtergesellschaft der<br />
Garantin uÈbertragen werden, welche unmittelbar<br />
vor dieser UÈ bertragung eine Wesentliche<br />
Tochtergesellschaft im Sinne von (i) war.<br />
(2) Benachrichtigung. (2) Notice<br />
Eine Benachrichtigung gemaÈû § 9(1) einschlieûlich<br />
einer Benachrichtigung zum Zwecke der KuÈndigung<br />
von Teilschuldverschreibungen ist einer Zahlstelle<br />
in schriftlicher Form zu uÈbergeben oder mittels<br />
eingeschriebenem Brief zuzusenden, jeweils<br />
zusammen mit einer Bescheinigung der Depotbank<br />
des AnleiheglaÈubigers, daû der AnleiheglaÈubiger<br />
zum Zeitpunkt der Abgabe der schriftlichen<br />
Benachrichtigung Inhaber der betreffenden<br />
Teilschuldverschreibungen ist; im Falle des<br />
Verzugs gemaÈû § 9(1)(c) sind zudem die UmstaÈnde<br />
dazulegen, aus denen sich dieser Verzug ergibt.<br />
(3) Wirksamkeit. (3) Effectiveness.<br />
In den FaÈllen des § 9(1)(c) oder (d) wird eine<br />
Benachrichtigung, durch welche die Teilschuldverschreibungen<br />
gekuÈndigt werden, erst wirksam,<br />
wenn bei einer Zahlstelle KuÈndigungserklaÈrungen<br />
von Inhabern von Teilschuldverschreibungen<br />
eingegangen sind, die insgesamt ein Zehntel des<br />
Gesamtnennbetrags der zu diesem Zeitpunkt<br />
ausstehenden Teilschuldverschreibungen darstellen,<br />
sofern nicht bei deren Eingang zugleich einer der in<br />
§ 9(1)(a), (b), (e), (f), (g), (h) oder (i) bezeichneten<br />
FaÈlle, der die AnleiheglaÈubiger zur KuÈndigung ihrer<br />
Teilschuldverschreibungen berechtigt, vorliegt und<br />
fortdauert.<br />
65<br />
The right to declare Bonds due shall terminate if the<br />
situation giving rise to it has been cured before the<br />
right is exercised. ``Material Subsidiary'' means (i)<br />
any subsidiary of the Guarantor whose total assets,<br />
net revenues or net pro®ts represent at least 10% of<br />
the consolidated total assets, net revenues or net<br />
pro®ts, as the case may be, of the Guarantor, as<br />
calculated by reference to the then most recent<br />
audited ®nancial statements (or, if available,<br />
consolidated audited ®nancial statements) of such<br />
subsidiary and the then most recent audited<br />
consolidated ®nancial statements of the Guarantor<br />
and its subsidiaries or (ii) to which are transferred<br />
all or substantially all of the assets and undertaking<br />
of a subsidiary of the Guarantor which immediately<br />
prior to such transfer is a Material Subsidiary<br />
pursuant to (i).<br />
Any notice, including any notice declaring Bonds<br />
due, in accordance with § 9(1) shall be made by<br />
means of a written declaration delivered by hand or<br />
registered mail to a Paying Agent together with<br />
evidence by means of a certi®cate of the<br />
Bondholder's depositary bank that the<br />
Bondholder at the time of such written notice is a<br />
holder of the relevant Bonds, and in the case of<br />
default pursuant to § 9(1)(c), together with evidence<br />
specifying such default.<br />
In the event speci®ed in § 9(1)(c) or (d), any notice<br />
declaring Bonds due shall, unless at the time such<br />
notice is received any of the events speci®ed in<br />
§ 9(1)(a), (b), (e), (f), (g), (h) or (i) entitling<br />
Bondholders to declare their Bonds due has<br />
occurred and is continuing, become effective only<br />
when a Paying Agent has received such notices from<br />
holders of Bonds of at least one tenth in aggregate<br />
nominal amount of the Bonds then outstanding.
§ 10<br />
(Ersetzung der Emittentin)<br />
(1) Ersetzung. (1) Substitution.<br />
Die Garantin ist jederzeit berechtigt, die Emittentin<br />
entweder durch sich selbst oder durch eine andere<br />
Tochtergesellschaft, an der die Garantin mindestens<br />
90% der Stimmrechte haÈlt, ohne die Zustimmung<br />
der AnleiheglaÈubiger als Hauptschuldnerin in bezug<br />
auf alle Verp¯ichtungen aus und im Zusammenhang<br />
mit den Teilschuldverschreibungen zu ersetzen<br />
(die ``Neue Emittentin''), sofern:<br />
(a) die Neue Emittentin alle Zustimmungen und<br />
Genehmigungen erhalten hat und in der Lage<br />
ist, alle sich aus oder im Zusammenhang mit<br />
den Teilschuldverschreibungen ergebenden<br />
Verp¯ichtungen ohne Abzug oder Einbehalt<br />
von Steuern oder sonstigen Quellenabgaben zu<br />
erfuÈllen sowie die hierzu erforderlichen BetraÈge<br />
ohne BeschraÈnkungen an die Zahlstellen (§ 13)<br />
zu uÈbertragen;<br />
(b) die Neue Emittentin alle Verp¯ichtungen der<br />
Emittentin aus und im Zusammenhang mit den<br />
Teilschuldverschreibungen uÈbernimmt;<br />
(c) die Bestimmungen von § 1.4 der<br />
Verp¯ichtungserklaÈrung in vollem Umfang<br />
guÈltig und wirksam bleiben, sofern die Neue<br />
Emittentin nicht die Garantin ist; und<br />
(d) die Neue Emittentin sich verp¯ichtet, jedem<br />
AnleiheglaÈubiger alle Steuern, GebuÈhren oder<br />
Abgaben zu erstatten, die ihm infolge der<br />
UÈ bernahme der Verp¯ichtungen der<br />
Emittentin durch die Neue Emittentin<br />
auferlegt werden.<br />
(2) Bekanntmachung. (2) Notice.<br />
Jede solche Ersetzung ist den AnleiheglaÈubigern<br />
gemaÈû § 11 bekanntzumachen.<br />
(3) Bezugnahmen. (3) <strong>Re</strong>ferences.<br />
Im Falle einer solchen Ersetzung gilt jede<br />
Bezugnahme auf die Emittentin in diesen<br />
Anleihebedingungen als Bezugnahme auf die Neue<br />
Emittentin; § 8 dieser Anleihebedingungen ®ndet<br />
auf die Garantin und ihre Verp¯ichtungen aus der<br />
Verp¯ichtungserklaÈrung sinngemaÈû Anwendung.<br />
66<br />
§ 10<br />
(Substitution of the Issuer)<br />
The Guarantor shall at any time be entitled, without<br />
the consent of the Bondholders, to substitute the<br />
Issuer either by itself or by another subsidiary in<br />
which the Guarantor holds at least 90% of the<br />
voting rights as principal debtor in respect of all<br />
obligations arising under or in connection with the<br />
Bonds (the ``Substitute Issuer''), provided that:<br />
(a) the Substitute Issuer has received all<br />
authorizations and approvals, and is in a<br />
position, to ful®l all obligations arising under<br />
or in connection with the Bonds without being<br />
obliged to make any deduction or withholding<br />
with respect to any taxes or other duties of<br />
whatever nature to be withheld at source, and<br />
to transfer all amounts which are required<br />
therefor to the Paying Agents (§ 13) without<br />
any restrictions;<br />
(b) the Substitute Issuer assumes all obligations of<br />
the Issuer arising under or in connection with<br />
the Bonds;<br />
(c) if the Substitute Issuer is not the Guarantor,<br />
the provisions of Section 1.4 of the<br />
Undertaking shall remain in full force and<br />
effect; and<br />
(d) the Substitute Issuer undertakes to reimburse<br />
any Bondholder for such taxes, fees or duties<br />
which may be imposed upon it as a<br />
consequence of the assumption of the<br />
obligations of the Issuer by the Substitute<br />
Issuer.<br />
Any such substitution shall be noti®ed to the<br />
Bondholders in accordance with § 11.<br />
In the event of such substitution, any reference in<br />
these Conditions of Issue to the Issuer shall from<br />
then on be deemed to be references to the Substitute<br />
Issuer and § 8 of these Conditions of Issue shall<br />
apply mutatis mutandis to the Guarantor and its<br />
obligations under the Undertaking.
§ 11<br />
(Bekanntmachungen)<br />
Alle Bekanntmachungen, welche die<br />
Teilschuldverschreibungen betreffen, werden in<br />
folgenden Zeitungen veroÈffentlicht: (a) einer von<br />
den Bestimmungen der Luxemburger WertpapierboÈrse<br />
anerkannten Zeitung, (b) einer in<br />
englischer Sprache erscheinenden fuÈhrenden<br />
Tageszeitung mit allgemeiner Verbreitung in<br />
London, und (c) einer in deutscher Sprache<br />
erscheinenden fuÈhrenden Tageszeitung mit<br />
allgemeiner Verbreitung in Deutschland. Die<br />
Bekanntmachungen werden unter normalen<br />
UmstaÈnden voraussichtlich jeweils im<br />
Luxemburger Wort, der Financial Times und der<br />
BoÈrsen-Zeitung erscheinen. Eine Bekanntmachung<br />
wird fuÈr alle Zwecke am Datum der<br />
VeroÈffentlichung in der von den Bestimmungen<br />
der Luxemburger WertpapierboÈrse anerkannten<br />
Zeitung wirksam.<br />
§ 12<br />
(Begebung weiterer Teilschuldverschreibungen)<br />
Die Emittentin ist berechtigt, jederzeit ohne<br />
Zustimmung der AnleiheglaÈubiger weitere<br />
Teilschuldverschreibungen mit gleicher Ausstattung<br />
(abgesehen von Zinsen, die vor der<br />
Begebung weiterer Teilschuldverschreibungen faÈllig<br />
geworden sind) in der Weise zu begeben, daû sie mit<br />
diesen Teilschuldverschreibungen zusammengefaût<br />
werden, eine einheitliche Anleihe bilden und den<br />
Gesamtnennbetrag der Anleihe entsprechend<br />
erhoÈhen. Der Begriff ``Teilschuldverschreibungen''<br />
umfaût im Falle einer solchen ErhoÈhung auch diese<br />
zusaÈtzlich begebenen Teilschuldverschreibungen.<br />
§ 13<br />
(ErfuÈllungsgehilfen)<br />
(1) Zahlstellen, Umtauschstellen und Berechnungsstelle.<br />
Morgan Stanley Bank <strong>AG</strong>, Frankfurt am Main, ist<br />
die Hauptzahlstelle (die ``Hauptzahlstelle'') und die<br />
Hauptumtauschstelle (die ``Hauptumtauschstelle''),<br />
und Dexia Banque <strong>International</strong> aÁ Luxembourg,<br />
socieÂte anonyme, Luxemburg, Groûherzogtum<br />
Luxemburg, ist die Luxemburger Zahlstelle<br />
(zusammen mit der Hauptzahlstelle die<br />
``Zahlstellen'') und die Luxemburger<br />
Umtauschstelle (zusammen mit der<br />
Hauptumtauschstelle die ``Umtauschstellen'').<br />
Dexia Banque <strong>International</strong> aÁ Luxembourg,<br />
socieÂte anonyme ist auch die Berechnungsstelle fuÈr<br />
die Berechnung der Anzahl der Aktien, der Barund/oder<br />
sonstigen Sachwerte, die bei AusuÈbung<br />
des Umtauschrechts zu liefern sind, und zustaÈndig<br />
67<br />
§ 11<br />
(Notices)<br />
All notices regarding the Bonds shall be published<br />
in the following journals: (a) a newspaper<br />
recognised by the rules of the Luxembourg Stock<br />
Exchange, (b) a leading daily newspaper printed in<br />
the English language and of general circulation in<br />
London, and (c) a leading daily newspaper printed<br />
in the German language and of general circulation<br />
in Germany. It is expected that such notices will<br />
normally be published in the Luxemburger Wort,<br />
the Financial Times and the BoÈrsen-Zeitung. Any<br />
notice will become effective for all purposes on the<br />
date of its publication in the newspaper recognised<br />
by the rules of the Luxembourg Stock Exchange.<br />
§ 12<br />
(Issue of Additional Bonds)<br />
The Issuer shall be entitled, from time to time<br />
without the consent of the Bondholders, to issue<br />
additional bonds with identical terms (except for<br />
any interest due prior to such issue of additional<br />
bonds), so that the same shall be consolidated with,<br />
form a single issue with, and increase the aggregate<br />
principal amount of, the Bonds. The term ``Bonds''<br />
shall, in the event of such increase, also comprise<br />
such additional bonds.<br />
§ 13<br />
(Agents)<br />
(1) Paying Agents, Exchange Agents and<br />
Calculation Agent.<br />
Morgan Stanley Bank <strong>AG</strong>, Frankfurt am Main,<br />
Federal <strong>Re</strong>public of Germany, shall be the Principal<br />
Paying Agent (the ``Principal Paying Agent'') and<br />
the principal exchange agent (the ``Principal<br />
Exchange Agent''), and Dexia Banque<br />
<strong>International</strong>e aÁ Luxembourg, socieÂte anonyme,<br />
Luxembourg, Grand-Duchy of Luxembourg shall<br />
be the Luxembourg paying agent (together with the<br />
Principal Paying Agent, the ``Paying Agents'') and<br />
the Luxembourg exchange agent (together with the<br />
Principal Exchange Agent, the ``Exchange Agents'').<br />
Dexia Banque <strong>International</strong>e aÁ Luxembourg,<br />
socieÂte anonyme shall also be the Calculation<br />
Agent for the purpose of calculating the number<br />
of Shares, cash and/or other property to be
fuÈr die Anpassungen und Bestimmungen gemaÈû §§ 5<br />
und 6 (die ``Berechnungsstelle'' und zusammen mit<br />
den Umtauschstellen und den Zahlstellen die<br />
``ErfuÈllungsgehilfen''). Die Berechnungsstelle ist der<br />
einzige ErfuÈllungsgehilfe, der fuÈr die Bestimmung<br />
der in § 5 vorgesehenen Anpassungen und fuÈr die<br />
sonstigen in den §§ (3)(a), 5(1)(b), 5(3) und 6<br />
vorgesehenen Bestimmungen verantwortlich ist.<br />
Die anderen ErfuÈllungsgehilfen haben keinerlei<br />
Verp¯ichtungen, derartige Bestimmungen<br />
vorzunehmen. Die ErfuÈllungsgehilfen sind von den<br />
BeschraÈnkungen des § 181 BGB und<br />
entsprechenden etwaigen BeschraÈnkungen gemaÈû<br />
dem <strong>Re</strong>cht des Groûherzogtums Luxemburg<br />
befreit. Die Emittentin hat dafuÈr zu sorgen, daû<br />
solange Teilschuldverschreibungen ausstehen,<br />
immer eine Zahlstelle, eine Umtauschstelle und ein<br />
ErfuÈllungsgehilfe, welcher die Funktionen der<br />
Berechnungsstelle uÈbernimmt, im Groûherzogtum<br />
Luxemburg zur VerfuÈgung stehen, um die ihnen in<br />
diesen Anleihebedingungen zugewiesenen Aufgaben<br />
zu erfuÈllen.<br />
delivered upon the exercise of the Exchange Right<br />
and of making the adjustments and determinations<br />
referred to in § § 5 and 6 (the ``Calculation Agent'',<br />
and together with the Exchange Agents and the<br />
Paying Agents, the ``Agents''). The Calculation<br />
Agent shall be the sole Agent responsible for<br />
determining the adjustments referred to in § 5 and<br />
making the other determinations referred to in<br />
§ § 3(3)(a), 5(1)(b), 5(3) and 6. The other Agents<br />
shall have no obligation to make any such<br />
determinations. The Agents shall be exempt from<br />
the restrictions set forth in § 181 of the German<br />
Civil Code and any equivalent restriction under the<br />
laws of the Grand-Duchy of Luxembourg, if<br />
applicable. The Issuer shall procure that for as<br />
long as any Bonds are outstanding, there shall<br />
always be a Paying Agent, an Exchange Agent and<br />
an agent performing the functions of the<br />
Calculation Agent in the Grand-Duchy of<br />
Luxembourg to perform the functions assigned to<br />
them in these Conditions of Issue.<br />
(2) Ersetzung der ErfuÈllungsgehilfen. (2) Substitution of Agents.<br />
Die Emittentin kann jederzeit gemaÈû § 13(2) Satz 4<br />
durch Bekanntmachung gemaÈû § 11 mit einer Frist<br />
von mindestens 30 Tagen einen ErfuÈllungsgehilfen<br />
durch eine andere fuÈhrende Bank mit<br />
HauptgeschaÈftssitz oder einer Zweigniederlassung<br />
in der Bundesrepublik Deutschland bzw. dem<br />
Groûherzogtum Luxemburg als Zahlstelle,<br />
Umtauschstelle bzw. Berechnungsstelle ersetzen.<br />
Jeder ErfuÈllungsgehilfe kann jederzeit durch<br />
KuÈndigung mit einer Frist von mindestens 30<br />
Tagen gegenuÈber der Emittentin und den anderen<br />
ErfuÈllungsgehilfen von seinem Amt zuruÈcktreten.<br />
Dieser RuÈcktritt wird jedoch fruÈhestens 30 Tage<br />
nach einer entsprechenden Bekanntmachung der<br />
Emittentin gemaÈû § 11 uÈber die Ernennung einer<br />
fuÈhrenden Bank mit HauptgeschaÈftssitz oder einer<br />
Zweigniederlassung in der Bundesrepublik<br />
Deutschland bzw. dem Groûherzogtum<br />
Luxemburg als neue Zahlstelle, Umtauschstelle<br />
bzw. Berechnungsstelle wirksam.<br />
The Issuer may at any time, subject to § 13(2)<br />
sentence 4, by giving not less than 30 days notice in<br />
accordance with § 11, replace an Agent by another<br />
leading bank maintaining its head of®ce or a branch<br />
in the Federal <strong>Re</strong>public of Germany or the Grand-<br />
Duchy of Luxembourg, as the case may be, as<br />
Paying Agent, Exchange Agent or Calculation<br />
Agent, as the case may be. Each Agent may at<br />
any time resign from of®ce by giving not less than<br />
30 days' notice to the Issuer and the other Agents.<br />
However, such resignation shall become effective<br />
only upon the appointment by the Issuer of a<br />
leading bank maintaining its head of®ce or a branch<br />
in the Federal <strong>Re</strong>public of Germany or the Grand-<br />
Duchy of Luxembourg, as the case may be, as new<br />
Paying Agent, Exchange Agent or Calculation<br />
Agent, as the case may be, and the giving of not<br />
less than 30 days' notice of any such appointment in<br />
accordance with § 11.<br />
(3) Kein AuftragsverhaÈltnis. (3) No <strong>Re</strong>lationship of Agency.<br />
Die ErfuÈllungsgehilfen handeln in ihrer jeweiligen<br />
Eigenschaft ausschlieûlich als ErfuÈllungsgehilfen<br />
der Emittentin und stehen in dieser Eigenschaft<br />
nicht in einem Auftrags- oder TreuhandverhaÈltnis<br />
zu den AnleiheglaÈubigern.<br />
(4) Berechnungen. (4) Calculations.<br />
Alle von einem ErfuÈllungsgehilfen gemaÈû diesen<br />
Anleihebedingungen getaÈtigten Bestimmungen und<br />
Berechnungen sind fuÈr alle beteiligten Parteien<br />
68<br />
The Agents in such capacities are acting exclusively<br />
as agent of the Issuer and in such capacities do not<br />
have any relationship of agency or trust with the<br />
Bondholders.<br />
Any determinations and calculations made by any<br />
Agent in accordance with these Conditions of Issue<br />
shall be conclusive and binding on all parties
(einschlieûlich der AnleiheglaÈubiger) endguÈltig und<br />
bindend, auûer im Falle eines offensichtlichen<br />
Irrtums.<br />
§ 14<br />
(Verschiedenes)<br />
(1) Anwendbares <strong>Re</strong>cht. (1) Applicable Law.<br />
Die Teilschuldverschreibungen unterliegen deutschem<br />
<strong>Re</strong>cht.<br />
concerned (including, but not limited to, the<br />
Bondholders), save for manifest error.<br />
§ 14<br />
(Miscellaneous)<br />
The Bonds shall be governed by and construed in<br />
accordance with German law.<br />
(2) Gerichtsstand. (2) Place of Jurisdiction.<br />
Gerichtsstand fuÈr alle <strong>Re</strong>chtsstreitigkeiten aus oder<br />
im Zusammenhang mit diesen Anleihebedingungen<br />
ist Frankfurt am Main.<br />
Place of jurisdiction for all proceedings arising from<br />
matters governed by these Conditions of Issue shall<br />
be Frankfurt am Main.<br />
(3) ErfuÈllungsort. (3) Place of Performance.<br />
ErfuÈllungsort ist Frankfurt am Main. Place of performance shall be Frankfurt am Main.<br />
(4) Geltendmachung von AnspruÈchen. (4) Enforcement.<br />
Jeder AnleiheglaÈubiger kann in <strong>Re</strong>chtsstreitigkeiten<br />
gegen die Emittentin oder die Garantin oder in<br />
<strong>Re</strong>chtsstreitigkeiten, an denen der AnleiheglaÈubiger,<br />
die Emittentin oder die Garantin beteiligt ist, im<br />
eigenen Namen seine <strong>Re</strong>chte aus den von ihm<br />
gehaltenen Teilschuldverschreibungen geltendmachen<br />
und durchsetzen auf der Grundlage (a)<br />
einer Bescheinigung seiner Depotbank (wie<br />
nachstehend de®niert), (i) die den vollen Namen<br />
und die volle Anschrift des AnleiheglaÈubigers<br />
enthaÈlt, (ii) den Gesamtnennbetrag der<br />
Teilschuldverschreibungen, die am Ausstellungstag<br />
dieser Bescheinigung dem bei dieser Depotbank<br />
unterhaltenen Depot des AnleiheglaÈubigers<br />
gutgeschrieben sind, angibt und (iii) bestaÈtigt, daû<br />
die Depotbank der Clearstream Frankfurt und einer<br />
Zahlstelle (§ 13) eine schriftliche Mitteilung<br />
gemacht hat, welche die Angaben gemaÈû (i) und<br />
(ii) enthaÈlt und BestaÈtigungsvermerke der<br />
Clearstream Frankfurt und des betreffenden<br />
Kontoinhabers traÈgt, und (b) einer Kopie der<br />
Globalurkunde, deren UÈ bereinstimmung mit dem<br />
Original der Globalurkunde von einem<br />
Vertretungsberechtigten der Clearstream Frankfurt<br />
bestaÈtigt wird. Im Sinne der vorstehenden<br />
Bestimmungen bedeutet ``Depotbank'' eine Bank<br />
oder ein anderes Finanzinstitut mit einer<br />
Genehmigung fuÈr das Wertpapier-DepotgeschaÈft,<br />
bei dem der AnleiheglaÈubiger ein Wertpapierdepot<br />
unterhaÈlt, auf dem Teilschuldverschreibungen<br />
verbucht sind; dieser Begriff schlieût Clearstream<br />
Frankfurt, Clearstream Luxemburg und Euroclear<br />
ein.<br />
69<br />
Any Bondholder may in any proceedings against<br />
the Issuer or the Guarantor or to which the<br />
Bondholder, the Issuer or the Guarantor are<br />
parties protect and enforce in its own name its<br />
rights arising under its Bonds on the basis of (a) a<br />
certi®cate issued by its Depository Bank (as de®ned<br />
below) (i) stating the full name and address of the<br />
Bondholder, (ii) specifying the aggregate nominal<br />
amount of Bonds credited on the date of such<br />
statement to the Bondholder's account with such<br />
Depository Bank and (iii) con®rming that the<br />
Depository Bank has given a written notice to<br />
Clearstream Frankfurt and a Paying Agent (§ 13)<br />
containing the information pursuant to (i) and (ii)<br />
and bearing acknowledgements of Clearstream<br />
Frankfurt and the relevant accountholder, and (b)<br />
a copy of the Global Certi®cate certi®ed as being a<br />
true copy by a duly authorized of®cer of<br />
Clearstream Frankfurt. For purposes of the<br />
foregoing, ``Depository Bank'' means any bank or<br />
other ®nancial institution authorized to engage in<br />
securities custody business with which the<br />
Bondholder maintains a securities account in<br />
respect of any Bonds and includes Clearstream<br />
Frankfurt, Clearstream Luxembourg and<br />
Euroclear.
(5) Teilunwirksamkeit. (5) Severability.<br />
Sollte eine der Bestimmungen dieser Anleihebedingungen<br />
ganz oder teilweise unwirksam oder<br />
undurchfuÈhrbar sein oder werden, so bleibt die<br />
Wirksamkeit oder DurchfuÈhrbarkeit der uÈbrigen<br />
Bestimmungen hiervon unberuÈhrt. In diesem Fall<br />
soll anstelle der unwirksamen Bestimmung, soweit<br />
rechtlich moÈglich, eine dem Sinn und<br />
wirtschaftlichen Zweck dieser Anleihebedingungen<br />
zum Zeitpunkt der Begebung der<br />
Teilschuldverschreibungen entsprechende<br />
Bestimmung treten. Sollten diese Anleihebedingungen<br />
eine LuÈcke enthalten, ist eine<br />
ergaÈnzende Auslegung, die dem Sinn und Zweck<br />
dieser Anleihebedingungen entspricht, unter<br />
angemessener BeruÈcksichtigung der berechtigten<br />
Interessen der beteiligten Parteien vorzunehmen.<br />
Allein der<br />
§ 15<br />
(Sprache)<br />
deutsche Wortlaut dieser<br />
Anleihebedingungen ist rechtsverbindlich. Die<br />
englische UÈ bersetzung dient nur der Information.<br />
70<br />
Should any of the provisions of these Conditions of<br />
Issue be or become invalid or unenforceable in<br />
whole or in part, the validity or the enforceability of<br />
the remaining provisions shall not in any way be<br />
affected or impaired thereby. In this case, the<br />
invalid provision shall be replaced by a provision<br />
which, to the extent legally possible, provides for an<br />
interpretation in line with the meaning and the<br />
economic purposes of the Conditions of Issue at the<br />
time of the issue of the Bonds. Under circumstances<br />
in which these Conditions of Issue prove to be<br />
incomplete, a supplementary interpretation in<br />
accordance with the meaning and the purposes of<br />
these Conditions of Issue under due consideration<br />
of the legitimate interest of the parties involved shall<br />
be applied.<br />
§ 15<br />
(Language)<br />
The German version of these Conditions of Issue<br />
shall be the only legally binding version. The<br />
English translation is for convenience only.
UNDERTAKING<br />
WITH RESPECT TO THE BONDS EXCHANGEABLE FOR E.ON SHARES<br />
The German version of this Undertaking is legally binding. The English translation is for convenience<br />
only.<br />
Verp¯ichtungserklaÈrung<br />
(Garantie and NegativerklaÈrung)<br />
der <strong>ERGO</strong> Versicherungsgruppe Aktiengesellschaft,<br />
DuÈsseldorf, Bundesrepublik Deutschland<br />
zugunsten der GlaÈubiger der<br />
2,25% Garantierten Umtauschanleihe mit<br />
FaÈlligkeit in 2006<br />
im Gesamtnennbetrag von bis zu e 345.000.000<br />
umtauschbar in auf den Inhaber lautende<br />
Stammaktien ohne Nennbetrag der E.ON <strong>AG</strong><br />
begeben durch die <strong>ERGO</strong> <strong>International</strong><br />
Aktiengesellschaft, DuÈsseldorf, Bundesrepublik<br />
Deutschland<br />
1.1 <strong>ERGO</strong> Versicherungsgruppe Aktiengesellschaft<br />
(die ``Garantin'') uÈbernimmt<br />
hiermit gegenuÈber den jeweiligen Inhabern<br />
der vorstehend genannten Teilschuldverschreibungen<br />
(die ``AnleiheglaÈubiger'') die<br />
unbedingte und unwiderru¯iche Garantie fuÈr<br />
(i) die ordnungsgemaÈûe Zahlung von Kapital<br />
und Zinsen auf die Teilschuldverschreibungen<br />
sowie aller sonstigen etwaigen von der<br />
Emittentin gemaÈû den Anleihebedingungen<br />
der Teilschuldverschreibungen (die<br />
``Anleihebedingungen'') zahlbaren BetraÈge<br />
und (ii) die Lieferung der Aktien und der<br />
sonstigen gemaÈû den Anleihebedingungen zu<br />
liefernden VermoÈgenswerte (die ``Lieferbaren<br />
Wertpapiere''). Diese Garantie begruÈndet<br />
unbesicherte und nicht nachrangige<br />
Verp¯ichtungen der Garantin, die im<br />
gleichen Rang mit allen anderen<br />
gegenwaÈrtigen und zukuÈnftigen<br />
unbesicherten und nicht nachrangigen<br />
Verbindlichkeiten der Garantin stehen.<br />
1.2 Sinn und Zweck dieser Garantie ist es,<br />
sicherzustellen, daû die AnleiheglaÈubiger<br />
unter allen tatsaÈchlichen und rechtlichen<br />
UmstaÈnden und unabhaÈngig von der<br />
Wirksamkeit und Durchsetzbarkeit der<br />
Verp¯ichtungen der <strong>ERGO</strong> <strong>International</strong><br />
Aktiengesellschaft (die ``Emittentin''), und<br />
unabhaÈngig von sonstigen GruÈnden einer<br />
NichterfuÈllung von Verp¯ichtungen der<br />
Emittentin, alle zahlbaren BetraÈge und/oder<br />
Lieferbaren Wertpapiere am jeweiligen<br />
FaÈlligkeitstag gemaÈû den Anleihebedingungen<br />
erhalten. Die Garantin<br />
verzichtet auf das <strong>Re</strong>cht zur Aufrechnung,<br />
71<br />
Undertaking<br />
(Guarantee and Negative Pledge)<br />
of <strong>ERGO</strong> Versicherungsgruppe Aktiengesellschaft,<br />
DuÈsseldorf, Federal <strong>Re</strong>public of Germany<br />
in favor of the holders of the<br />
2.25% Guaranteed Exchangeable Bonds<br />
due 2006<br />
in an aggregate nominal amount of up to<br />
e 345,000,000 exchangeable for ordinary bearer<br />
shares with no par value of E.ON <strong>AG</strong><br />
issued by <strong>ERGO</strong> <strong>International</strong> Aktiengesellschaft,<br />
DuÈsseldorf, Federal <strong>Re</strong>public of Germany<br />
1.1 <strong>ERGO</strong> Versicherungsgruppe Aktiengesellschaft<br />
(the ``Guarantor'') hereby<br />
unconditionally and irrevocably guarantees<br />
to the holders of the above mentioned Bonds<br />
from time to time (the ``Bondholders'') (i) the<br />
due payment of principal of and interest on,<br />
the Bonds and all other amounts, if any,<br />
payable by the Issuer under the Conditions of<br />
Issue of the Bonds (the ``Conditions'') and (ii)<br />
the delivery of the Shares and any other<br />
property to be delivered under the Conditions<br />
(the ``Deliverable Securities''). This Guarantee<br />
constitutes unsecured and unsubordinated<br />
obligations of the Guarantor which shall<br />
rank at least pari passu with all other present<br />
and future unsecured and unsubordinated<br />
obligations of the Guarantor.<br />
1.2 The intent and purpose of this Guarantee is to<br />
ensure that the Bondholders under any and all<br />
circumstances, whether factual or legal, and<br />
irrespective of validity or enforceability of the<br />
obligations of <strong>ERGO</strong> <strong>International</strong><br />
Aktiengesellschaft (the ``Issuer''), or of any<br />
other reasons on the basis of which the Issuer<br />
may fail to ful®l its obligations, receive on the<br />
respective due date any and all sums payable<br />
and the Deliverable Securities in accordance<br />
with the Conditions. The Guarantor waives<br />
any right of set-off, the invocation of<br />
counterclaims and similar defences. This<br />
Guarantee is reinstated if any payment of
die Geltendmachung von GegenanspruÈchen<br />
und aÈhnliche Einwendungen. Diese Garantie<br />
lebt wieder auf, falls eine Zahlung von Kapital<br />
oder Zinsen auf die Teilschuldverschreibungen<br />
oder etwaiger sonstiger von der<br />
Emittentin gemaÈû den Anleihebedingungen<br />
zahlbarer BetraÈge oder eine Lieferung von<br />
Lieferbaren Wertpapieren gemaÈû den<br />
Anleihebedingungen infolge der Insolvenz<br />
der Emittentin zuruÈckzugewaÈhren ist.<br />
1.3 Die Garantin kann BetraÈge an Kapital und<br />
Zinsen sowie alle anderen gegebenenfalls auf<br />
die Teilschuldverschreibungen zu zahlenden<br />
BetraÈge, deren Zahlung von den AnleiheglaÈubigern<br />
nicht innerhalb von zwoÈlf<br />
Monaten nach deren FaÈlligkeit geltend<br />
gemacht worden ist, beim Amtsgericht in<br />
Frankfurt am Main hinterlegen. Soweit die<br />
Garantin auf das <strong>Re</strong>cht zur RuÈcknahme der<br />
hinterlegten BetraÈge verzichtet, erloÈschen die<br />
betreffenden AnspruÈche der AnleiheglaÈubiger<br />
gegen die Garantin.<br />
1.4 Im Falle der Ersetzung der Emittentin durch<br />
eine andere Tochtergesellschaft der Garantin<br />
gemaÈû § 10 der Anleihebedingungen erstreckt<br />
sich diese Garantie auf saÈmtliche von der<br />
Neuen Emittentin gemaÈû den<br />
Anleihebedingungen zahlbaren BetraÈge und<br />
die Lieferung der Lieferbaren Wertpapiere.<br />
Dies gilt auch dann, wenn die Neue<br />
Emittentin die Verp¯ichtungen aus den<br />
Teilschuldverschreibungen unmittelbar von<br />
der Garantin uÈbernommen hat.<br />
2. Die Garantin verp¯ichtet sich gegenuÈber<br />
den AnleiheglaÈubigern, solange bis Kapital<br />
und Zinsen sowie etwaige weitere auf<br />
die Teilschuldverschreibungen zahlbare<br />
BarbetraÈge an die Zahlstellen gezahlt und alle<br />
Verp¯ichtungen zur Lieferung von Lieferbaren<br />
Aktien erfuÈllt worden sind, keine Sicherheiten<br />
an ihren VermoÈgensgegenstaÈnden zur<br />
Besicherung gegenwaÈrtiger oder zukuÈnftiger<br />
Kapitalmarktverbindlichkeiten einschlieûlich<br />
hierfuÈr abgegebener Garantien zu bestellen, es<br />
sei denn, daû die Teilschuldverschreibungen<br />
gleichzeitig und im gleichen Rang an dieser<br />
Sicherheit anteilig teilnehmen oder den<br />
AnleiheglaÈubigern eine andere Sicherheit<br />
gewaÈhrt wird, die von einer international<br />
anerkannten unabhaÈngigen WirtschaftspruÈfungsgesellschaft<br />
als gleichwertige Sicherheit<br />
anerkannt wird. Die Verp¯ichtung gemaÈû<br />
vorstehendem Satz ®ndet keine Anwendung<br />
auf eine Sicherheit, (i) deren Bestellung nach<br />
geltendem <strong>Re</strong>cht zwingend ist oder (ii) die zur<br />
72<br />
principal of, or interest on, the Bonds or any<br />
other amounts payable by the Issuer under the<br />
Conditions or the delivery of Deliverable<br />
Securities under the Conditions is recaptured<br />
as a result of the insolvency of the Issuer.<br />
1.3 The Guarantor may deposit with the lower<br />
court (Amtsgericht) in Frankfurt am Main<br />
amounts of principal, interest and all other<br />
amounts due under the Bonds, if any, not<br />
claimed by Bondholders within twelve months<br />
after the date on which such amounts have<br />
become due. To the extent that the Guarantor<br />
waives its right to withdraw such deposit, the<br />
relevant claim of the Bondholders against the<br />
Guarantor shall cease.<br />
1.4 In the event of a substitution of the Issuer by<br />
another subsidiary of the Guarantor pursuant<br />
to § 10 of the Conditions, this Guarantee shall<br />
extend to any and all amounts payable by the<br />
Substitute Issuer and delivery of the<br />
Deliverable Securities pursuant to the<br />
Conditions. The foregoing shall also apply if<br />
the Substitute Issuer shall have assumed the<br />
obligations arising under the Bonds directly<br />
from the Guarantor.<br />
2. The Guarantor hereby undertakes towards the<br />
Bondholders, until such time as principal and<br />
interest, as well as any other cash amounts<br />
payable under or in respect of the Bonds have<br />
been paid to the Paying Agents and all<br />
obligations to deliver Deliverable Securities<br />
have been ful®lled, not to provide any security<br />
upon its assets for any present or future<br />
Capital Market Indebtedness, including any<br />
guarantee in respect thereof, unless the Bonds<br />
at the same time share pari passu and pro rata<br />
in such security or unless such other security as<br />
shall be approved by an independent<br />
accounting ®rm of recognized international<br />
standing as being equivalent security has been<br />
made available to the Bondholders. The<br />
undertaking pursuant to the preceding<br />
sentence shall not apply to a security (i)<br />
which is mandatory according to applicable<br />
laws, or (ii) which is a prerequisite for<br />
governmental approvals. Any security which<br />
is to be provided pursuant to the ®rst sentence
Erlangung einer staatlichen Genehmigung<br />
erforderlich ist. Eine Sicherheit, die gemaÈû<br />
dem ersten Satz dieses Absatz 2. zu leisten ist,<br />
kann auch zugunsten einer Person bestellt<br />
werden, die als TreuhaÈnder der<br />
AnleiheglaÈubiger handelt.<br />
3. Diese Verp¯ichtungserklaÈrung stellt einen<br />
Vertrag zugunsten der AnleiheglaÈubiger als<br />
beguÈnstigte Dritte gemaÈû § 328(1) BGB dar,<br />
die jedem AnleiheglaÈubiger das <strong>Re</strong>cht gibt, die<br />
ErfuÈllung dieser Verp¯ichtungserklaÈrung<br />
unmittelbar von der Garantin zu verlangen<br />
und diese Verp¯ichtungserklaÈrung unmittelbar<br />
gegen die Garantin durchzusetzen.<br />
4.1 Diese Verp¯ichtungserklaÈrung unterliegt<br />
deutschem <strong>Re</strong>cht.<br />
4.2 Gerichtsstand fuÈr alle <strong>Re</strong>chtsstreitigkeiten aus<br />
oder im Zusammenhang mit dieser<br />
Verp¯ichtungserklaÈrung ist Frankfurt am<br />
Main.<br />
4.3 Begriffe, die in dieser Verp¯ichtungserklaÈrung<br />
verwendet werden und in den<br />
Anleihebedingungen de®niert sind, haben in<br />
dieser Verp¯ichtungserklaÈrung die gleiche<br />
Bedeutung wie in den Anleihebedingungen,<br />
soweit sie in dieser Verp¯ichtungserklaÈrung<br />
nicht anderweitig de®niert sind.<br />
of this paragraph 2 may also be provided to a<br />
person acting as Trustee for the Bondholders.<br />
3. This Undertaking constitutes a contract in<br />
favor of the Bondholders as third party<br />
bene®ciaries pursuant to § 328(1) of the<br />
German Civil Code giving rise to the right of<br />
each Bondholder to require performance of<br />
this Undertaking directly from the Guarantor<br />
and to enforce this Undertaking directly<br />
against the Guarantor.<br />
4.1 This Undertaking shall be governed by and<br />
construed in accordance with German law.<br />
4.2 Place of jurisdiction for all proceedings arising<br />
from matters governed by or arising in<br />
connection with this Undertaking shall be<br />
Frankfurt am Main.<br />
4.3 Terms used in this Undertaking and de®ned in<br />
the Conditions shall have in this Undertaking<br />
the same meaning as in the Conditions unless<br />
they are otherwise de®ned in this Undertaking.<br />
4.4 ErfuÈllungsort ist Frankfurt am Main. 4.4 Place of performance shall be Frankfurt am<br />
Main.<br />
5. Die Garantin einerseits und Morgan Stanley<br />
Bank <strong>AG</strong> und Dexia Banque <strong>International</strong> aÁ<br />
Luxembourg, socieÂte anonyme (in dieser<br />
Eigenschaft die ``Zahlstellen'') andererseits<br />
vereinbaren, daû die Zahlstellen nicht als<br />
TreuhaÈnder oder in aÈhnlicher Eigenschaft fuÈr<br />
die AnleiheglaÈubiger handeln. Morgan Stanley<br />
Bank <strong>AG</strong> verp¯ichtet sich, das Original dieser<br />
Verp¯ichtungserklaÈrung bis zur ErfuÈllung<br />
saÈmtlicher Verp¯ichtungen aus den<br />
Teilschuldverschreibungen und der Garantie<br />
zu verwahren.<br />
5. The Guarantor, on the one hand, and Morgan<br />
Stanley Bank <strong>AG</strong> and Dexia Banque<br />
<strong>International</strong>e aÁ Luxembourg, socieÂteÂ<br />
anonyme (in this capacity, the ``Paying<br />
Agents''), on the other hand, agree that the<br />
Paying Agents are not acting as trustee or in a<br />
similar capacity for the Bondholders. Morgan<br />
Stanley Bank <strong>AG</strong> undertakes to hold the<br />
original copy of this Undertaking in custody<br />
until all obligations under the Bonds and the<br />
Guarantee have been ful®lled.<br />
[Unterschrift der Garantin] [Signature of the Guarantor]<br />
[Annahme durch die Zahlstellen] [Acceptance by the Paying Agents]<br />
73
UNDERTAKING<br />
WITH RESPECT TO THE BONDS EXCHANGEABLE FOR AVENTIS SHARES<br />
The German version of this Undertaking is legally binding. The English translation is for convenience only.<br />
Verp¯ichtungserklaÈrung<br />
(Garantie and NegativerklaÈrung)<br />
der <strong>ERGO</strong> Versicherungsgruppe Aktiengesellschaft,<br />
DuÈsseldorf, Bundesrepublik Deutschland<br />
zugunsten der GlaÈubiger der<br />
0,75% Garantierten Umtauschanleihe mit<br />
FaÈlligkeit in 2006<br />
im Gesamtnennbetrag von bis zu e 345.000.000<br />
umtauschbar in Stammaktien mit einem<br />
Nennbetrag von e 3,82 je Aktie der Aventis S.A.<br />
begeben durch die <strong>ERGO</strong> <strong>International</strong><br />
Aktiengesellschaft, DuÈsseldorf, Bundesrepublik<br />
Deutschland<br />
1.1 <strong>ERGO</strong> Versicherungsgruppe Aktiengesellschaft<br />
(die ``Garantin'') uÈbernimmt<br />
hiermit gegenuÈber den jeweiligen Inhabern<br />
der vorstehend genannten Teilschuldverschreibungen<br />
(die ``AnleiheglaÈubiger'') die<br />
unbedingte und unwiderru¯iche Garantie fuÈr<br />
(i) die ordnungsgemaÈûe Zahlung von Kapital<br />
und Zinsen auf die Teilschuldverschreibungen<br />
sowie aller sonstigen etwaigen von der<br />
Emittentin gemaÈû den Anleihebedingungen<br />
der Teilschuldverschreibungen (die<br />
``Anleihebedingungen'') zahlbaren BetraÈge<br />
und (ii) die Lieferung der Aktien und der<br />
sonstigen gemaÈû den Anleihebedingungen zu<br />
liefernden VermoÈgenswerte (die ``Lieferbaren<br />
Wertpapiere''). Diese Garantie begruÈndet<br />
unbesicherte und nicht nachrangige<br />
Verp¯ichtungen der Garantin, die im<br />
gleichen Rang mit allen anderen<br />
gegenwaÈrtigen und zukuÈnftigen<br />
unbesicherten und nicht nachrangigen<br />
Verbindlichkeiten der Garantin stehen.<br />
1.2 Sinn und Zweck dieser Garantie ist es,<br />
sicherzustellen, daû die AnleiheglaÈubiger<br />
unter allen tatsaÈchlichen und rechtlichen<br />
UmstaÈnden und unabhaÈngig von der<br />
Wirksamkeit und Durchsetzbarkeit der<br />
Verp¯ichtungen der <strong>ERGO</strong> <strong>International</strong><br />
Aktiengesellschaft (die ``Emittentin''), und<br />
unabhaÈngig von sonstigen GruÈnden einer<br />
NichterfuÈllung von Verp¯ichtungen der<br />
Emittentin, alle zahlbaren BetraÈge und/oder<br />
Lieferbaren Wertpapiere am jeweiligen<br />
FaÈlligkeitstag gemaÈû den Anleihebedingungen<br />
erhalten. Die Garantin<br />
verzichtet auf das <strong>Re</strong>cht zur Aufrechnung,<br />
die Geltendmachung von GegenanspruÈchen<br />
74<br />
Undertaking<br />
(Guarantee and Negative Pledge)<br />
of <strong>ERGO</strong> Versicherungsgruppe Aktiengesellschaft,<br />
DuÈsseldorf, Federal <strong>Re</strong>public of Germany<br />
in favor of the holders of the<br />
0.75% Guaranteed Exchangeable Bonds<br />
due 2006<br />
in an aggregate nominal amount of up to<br />
e 345,000,000 exchangeable for ordinary shares,<br />
nominal value e 3.82 per share, of Aventis S.A.<br />
issued by <strong>ERGO</strong> <strong>International</strong> Aktiengesellschaft,<br />
DuÈsseldorf, Federal <strong>Re</strong>public of Germany<br />
1.1 <strong>ERGO</strong> Versicherungsgruppe Aktiengesellschaft<br />
(the ``Guarantor'') hereby<br />
unconditionally and irrevocably guarantees<br />
to the holders of the above mentioned Bonds<br />
from time to time (the ``Bondholders'') (i) the<br />
due payment of principal of and interest on,<br />
the Bonds and all other amounts, if any,<br />
payable by the Issuer under the Conditions of<br />
Issue of the Bonds (the ``Conditions'') and (ii)<br />
the delivery of the Shares and any other<br />
property to be delivered under the Conditions<br />
(the ``Deliverable Securities''). This Guarantee<br />
constitutes unsecured and unsubordinated<br />
obligations of the Guarantor which shall<br />
rank at least pari passu with all other present<br />
and future unsecured and unsubordinated<br />
obligations of the Guarantor.<br />
1.2 The intent and purpose of this Guarantee is to<br />
ensure that the Bondholders under any and all<br />
circumstances, whether factual or legal, and<br />
irrespective of validity or enforceability of the<br />
obligations of <strong>ERGO</strong> <strong>International</strong><br />
Aktiengesellschaft (the ``Issuer''), or of any<br />
other reasons on the basis of which the Issuer<br />
may fail to ful®l its obligations, receive on the<br />
respective due date any and all sums payable<br />
and the Deliverable Securities in accordance<br />
with the Conditions. The Guarantor waives<br />
any right of set-off, the invocation of<br />
counterclaims and similar defences. This<br />
Guarantee is reinstated if any payment of<br />
principal of, or interest on, the Bonds or any
und aÈhnliche Einwendungen. Diese Garantie<br />
lebt wieder auf, falls eine Zahlung von Kapital<br />
oder Zinsen auf die Teilschuldverschreibungen<br />
oder etwaiger sonstiger von der Emittentin<br />
gemaÈû den Anleihebedingungen zahlbarer<br />
BetraÈge oder eine Lieferung von Lieferbaren<br />
Wertpapieren gemaÈû den Anleihebedingungen<br />
infolge der Insolvenz der Emittentin<br />
zuruÈckzugewaÈhren ist.<br />
1.3 Die Garantin kann BetraÈge an Kapital und<br />
Zinsen sowie alle anderen gegebenenfalls auf<br />
die Teilschuldverschreibungen zu zahlenden<br />
BetraÈge, deren Zahlung von den AnleiheglaÈubigern<br />
nicht innerhalb von zwoÈlf<br />
Monaten nach deren FaÈlligkeit geltend<br />
gemacht worden ist, beim Amtsgericht in<br />
Frankfurt am Main hinterlegen. Soweit die<br />
Garantin auf das <strong>Re</strong>cht zur RuÈcknahme der<br />
hinterlegten BetraÈge verzichtet, erloÈschen die<br />
betreffenden AnspruÈche der AnleiheglaÈubiger<br />
gegen die Garantin.<br />
1.4 Im Falle der Ersetzung der Emittentin durch<br />
eine andere Tochtergesellschaft der Garantin<br />
gemaÈû § 10 der Anleihebedingungen erstreckt<br />
sich diese Garantie auf saÈmtliche von der<br />
Neuen Emittentin gemaÈû den Anleihebedingungen<br />
zahlbaren BetraÈge und die<br />
Lieferung der Lieferbaren Wertpapiere. Dies<br />
gilt auch dann, wenn die Neue Emittentin die<br />
Verp¯ichtungen aus den Teilschuldverschreibungen<br />
unmittelbar von der Garantin<br />
uÈbernommen hat.<br />
2. Die Garantin verp¯ichtet sich gegenuÈber den<br />
AnleiheglaÈubigern, solange bis Kapital und<br />
Zinsen sowie etwaige weitere auf die<br />
Teilschuldverschreibungen zahlbare BarbetraÈge<br />
an die Zahlstellen gezahlt und alle<br />
Verp¯ichtungen zur Lieferung von<br />
Lieferbaren Aktien erfuÈllt worden sind, keine<br />
Sicherheiten an ihren VermoÈgensgegenstaÈnden<br />
zur Besicherung gegenwaÈrtiger oder<br />
zukuÈnftiger Kapitalmarktverbindlichkeiten<br />
einschlieûlich hierfuÈr abgegebener Garantien<br />
zu bestellen, es sei denn, daû die<br />
Teilschuldverschreibungen gleichzeitig und im<br />
gleichen Rang an dieser Sicherheit anteilig<br />
teilnehmen oder den AnleiheglaÈubigern eine<br />
andere Sicherheit gewaÈhrt wird, die von einer<br />
international anerkannten unabhaÈngigen<br />
WirtschaftspruÈfungsgesellschaft als<br />
gleichwertige Sicherheit anerkannt wird. Die<br />
Verp¯ichtung gemaÈû vorstehendem Satz ®ndet<br />
keine Anwendung auf eine Sicherheit, (i) deren<br />
Bestellung nach geltendem <strong>Re</strong>cht zwingend ist<br />
75<br />
other amounts payable by the Issuer under the<br />
Conditions or the delivery of Deliverable<br />
Securities under the Conditions is recaptured<br />
as a result of the insolvency of the Issuer.<br />
1.3 The Guarantor may deposit with the lower<br />
court (Amtsgericht) in Frankfurt am Main<br />
amounts of principal, interest and all other<br />
amounts due under the Bonds, if any, not<br />
claimed by Bondholders within twelve months<br />
after the date on which such amounts have<br />
become due. To the extent that the Guarantor<br />
waives its right to withdraw such deposit, the<br />
relevant claim of the Bondholders against the<br />
Guarantor shall cease.<br />
1.4 In the event of a substitution of the Issuer by<br />
another subsidiary of the Guarantor pursuant<br />
to § 10 of the Conditions, this Guarantee shall<br />
extend to any and all amounts payable by the<br />
Substitute Issuer and delivery of the<br />
Deliverable Securities pursuant to the<br />
Conditions. The foregoing shall also apply if<br />
the Substitute Issuer shall have assumed the<br />
obligations arising under the Bonds directly<br />
from the Guarantor.<br />
2. The Guarantor hereby undertakes towards the<br />
Bondholders, until such time as principal and<br />
interest, as well as any other cash amounts<br />
payable under or in respect of the Bonds have<br />
been paid to the Paying Agents and all<br />
obligations to deliver Deliverable Securities<br />
have been ful®lled, not to provide any security<br />
upon its assets for any present or future<br />
Capital Market Indebtedness, including any<br />
guarantee in respect thereof, unless the Bonds<br />
at the same time share pari passu and pro rata<br />
in such security or unless such other security as<br />
shall be approved by an independent<br />
accounting ®rm of recognized international<br />
standing as being equivalent security has been<br />
made available to the Bondholders. The<br />
undertaking pursuant to the preceding<br />
sentence shall not apply to a security (i)<br />
which is mandatory according to applicable<br />
laws, or (ii) which is a prerequisite for<br />
governmental approvals. Any security which<br />
is to be provided pursuant to the ®rst sentence
oder (ii) die zur Erlangung einer staatlichen<br />
Genehmigung erforderlich ist. Eine Sicherheit,<br />
die gemaÈû dem ersten Satz dieses Absatz 2. zu<br />
leisten ist, kann auch zugunsten einer Person<br />
bestellt werden, die als TreuhaÈnder der<br />
AnleiheglaÈubiger handelt.<br />
3. Diese Verp¯ichtungserklaÈrung stellt einen<br />
Vertrag zugunsten der AnleiheglaÈubiger als<br />
beguÈnstigte Dritte gemaÈû § 328(1) BGB dar,<br />
die jedem AnleiheglaÈubiger das <strong>Re</strong>cht gibt, die<br />
ErfuÈllung dieser Verp¯ichtungserklaÈrung<br />
unmittelbar von der Garantin zu verlangen<br />
und diese Verp¯ichtungserklaÈrung unmittelbar<br />
gegen die Garantin durchzusetzen.<br />
4.1 Diese Verp¯ichtungserklaÈrung unterliegt<br />
deutschem <strong>Re</strong>cht.<br />
4.2 Gerichtsstand fuÈr alle <strong>Re</strong>chtsstreitigkeiten aus<br />
oder im Zusammenhang mit dieser<br />
Verp¯ichtungserklaÈrung ist Frankfurt am<br />
Main.<br />
4.3 Begriffe, die in dieser Verp¯ichtungserklaÈrung<br />
verwendet werden und in den<br />
Anleihebedingungen de®niert sind, haben in<br />
dieser Verp¯ichtungserklaÈrung die gleiche<br />
Bedeutung wie in den Anleihebedingungen,<br />
soweit sie in dieser Verp¯ichtungserklaÈrung<br />
nicht anderweitig de®niert sind.<br />
of this paragraph 2 may also be provided to a<br />
person acting as Trustee for the Bondholders.<br />
3. This Undertaking constitutes a contract in<br />
favor of the Bondholders as third party<br />
bene®ciaries pursuant to § 328(1) of the<br />
German Civil Code giving rise to the right of<br />
each Bondholder to require performance of<br />
this Undertaking directly from the Guarantor<br />
and to enforce this Undertaking directly<br />
against the Guarantor.<br />
4.1 This Undertaking shall be governed by and<br />
construed in accordance with German law.<br />
4.2 Place of jurisdiction for all proceedings arising<br />
from matters governed by or arising in<br />
connection with this Undertaking shall be<br />
Frankfurt am Main.<br />
4.3 Terms used in this Undertaking and de®ned in<br />
the Conditions shall have in this Undertaking<br />
the same meaning as in the Conditions unless<br />
they are otherwise de®ned in this Undertaking.<br />
4.4 ErfuÈllungsort ist Frankfurt am Main. 4.4 Place of performance shall be Frankfurt am<br />
Main.<br />
5. Die Garantin einerseits und Morgan Stanley<br />
Bank <strong>AG</strong> und Dexia Banque <strong>International</strong> aÁ<br />
Luxembourg, socieÂte anonyme (in dieser<br />
Eigenschaft die ``Zahlstellen'') andererseits<br />
vereinbaren, daû die Zahlstellen nicht als<br />
TreuhaÈnder oder in aÈhnlicher Eigenschaft fuÈr<br />
die AnleiheglaÈubiger handeln. Morgan Stanley<br />
Bank <strong>AG</strong> verp¯ichtet sich, das Original dieser<br />
Verp¯ichtungserklaÈrung bis zur ErfuÈllung<br />
saÈmtlicher Verp¯ichtungen aus den<br />
Teilschuldverschreibungen und der Garantie<br />
zu verwahren.<br />
5. The Guarantor, on the one hand, and Morgan<br />
Stanley Bank <strong>AG</strong> and Dexia Banque<br />
<strong>International</strong>e aÁ Luxembourg, socieÂteÂ<br />
anonyme (in this capacity, the ``Paying<br />
Agents''), on the other hand, agree that the<br />
Paying Agents are not acting as trustee or in a<br />
similar capacity for the Bondholders. Morgan<br />
Stanley Bank <strong>AG</strong> undertakes to hold the<br />
original copy of this Undertaking in custody<br />
until all obligations under the Bonds and the<br />
Guarantee have been ful®lled.<br />
[Unterschrift der Garantin] [Signature of the Guarantor]<br />
[Annahme durch die Zahlstellen] [Acceptance by the Paying Agents]<br />
76
THE ISSUER<br />
Incorporation, <strong>Re</strong>gistered Seat, Duration and Corporate Purpose<br />
The Issuer was incorporated under the name ``Minerva VermoÈgensverwaltung <strong>AG</strong>'' on March 8, 1999<br />
and registered with the Commercial <strong>Re</strong>gister of the Local Court (Amtsgericht) in <strong>Munich</strong> under docket<br />
number HR B 12522 on April 20, 1999. By resolution of the general shareholders' meeting held on<br />
March 30, 2001, the Issuer was renamed ``<strong>ERGO</strong> <strong>International</strong> Aktiengesellschaft'' and its registered seat<br />
moved from <strong>Munich</strong> to DuÈsseldorf. At present, the Issuer is registered with the Commercial <strong>Re</strong>gister of the<br />
Local Court in DuÈsseldorf under docket number HR B 40871. The principal of®ce of the Issuer is located at<br />
Victoriaplatz 2, D-40198 DuÈsseldorf.<br />
The duration of the Issuer is unlimited.<br />
The corporate purpose of the Issuer, as laid down in its Articles of Association, is to hold<br />
participations in foreign insurance and ®nancial services companies and to serve and co-ordinate the<br />
interests of the <strong>ERGO</strong> Group abroad, including all of its branches. The Issuer may establish, acquire, or<br />
hold participations in domestic and foreign undertakings of any kind and manage, or simply administer<br />
any participations held in such undertakings. The Issuer is entitled to transact all business and take all<br />
measures relating to, or appearing to be useful for promoting, its corporate purpose.<br />
Announcements of the Issuer are published in the Federal Gazette of Germany.<br />
Share Capital<br />
As of December 31, 2000, the issued share capital of the Issuer amounted to e 50,000 and was divided<br />
into 10,000 ordinary bearer shares with no par value. Accordingly, each share had a notional par value of<br />
e 5.00. The share capital of the Issuer is fully paid up. There is no authorised or conditional share capital.<br />
At present, the Guarantor holds 60% of the shares in the Issuer, while the remaining 40% is held by certain<br />
of its consolidated subsidiaries as follows: 10% each held by DKV Deutsche Krankenversicherung <strong>AG</strong>,<br />
Hamburg-Mannheimer Versicherungs-<strong>AG</strong> and VICTORIA Lebensversicherung <strong>AG</strong>; 5% held by<br />
VICTORIA Krankenversicherung <strong>AG</strong>; 2.5% each held by VICTORIA Versicherung <strong>AG</strong> and Hamburg-<br />
Mannheimer Sachversicherungs-<strong>AG</strong>. The Issuer expects its share capital to be increased considerably in the<br />
future, mainly against contributions in cash. The Issuer further anticipates that its shareholders will, in<br />
addition, contribute certain claims, shares and/or other equity interests of signi®cant value to its capital<br />
reserve. For a description of certain restructuring measures which the Guarantor plans to undertake with<br />
respect to the Issuer, see ``The Guarantor ± <strong>Re</strong>cent Business Developments and Outlook''.<br />
Capitalisation<br />
The following table shows the Issuer's audited capitalisation and its unaudited capitalisation as<br />
adjusted to re¯ect the issuance of the Bonds, both as of December 31, 2000:<br />
31/12/2000<br />
31/12/2000<br />
as adjusted<br />
to re¯ect<br />
issuance of<br />
Bonds<br />
e thousands e thousands<br />
Subscribed Capital and Capital <strong>Re</strong>serve PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 50.0 50.0<br />
<strong>Re</strong>venue <strong>Re</strong>serves PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 0 0<br />
Other <strong>Re</strong>serves PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 0 0<br />
Balance Sheet Pro®t/Loss PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP (1.7) (1.7)<br />
Shareholders' Equity PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 48.3 48.3<br />
Bonds outstanding PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 0 690,000 *<br />
* The Issuer has granted to the Manager the option to resell to the Issuer, for cancellation, up to e 90 million principal amount of<br />
the Bonds. Prior to this offering of Bonds, the Issuer has not issued any bonds or other debt securities.<br />
77
There has been no material change in the capitalisation of the Issuer since December 31, 2000.<br />
Business of the Issuer<br />
Apart from administering its own assets, the Issuer has not carried out any business activities since its<br />
incorporation in March 1999. At present, the Issuer does not hold any participations in any domestic or<br />
foreign undertakings. However, it is intended that, in the future, the Issuer will function as a holding<br />
company for certain foreign companies of the <strong>ERGO</strong> Group. See ``The Guarantor ± <strong>Re</strong>cent Business<br />
Developments and Outlook''.<br />
Management Board<br />
The Management Board of the Issuer consists of two members. At present, it includes:<br />
Name Position within Management Board<br />
Dr. Franz-Wilhelm Hopp Member<br />
Hans Ufer Member<br />
The business address of the members of the Management Board is the same as that of the Issuer's<br />
principal of®ce set out above.<br />
Supervisory Board<br />
The Supervisory Board of the Issuer consists of three members. The following individuals are<br />
currently members of the Issuer's Supervisory Board:<br />
Name Position within Supervisory Board Principal Occupation<br />
Dr. Lothar Meyer Chairman Chairman of the Management<br />
Board of the Guarantor<br />
Holger Schmelzer Deputy Chairman Employee of the Guarantor<br />
Dr. Hans-Rainer Weiû Member Employee of the Guarantor<br />
The business address of the Supervisory Board members is the same as that of the Issuer's principal<br />
of®ce set out above.<br />
Financial Year<br />
The ®nancial year of the Issuer is the calendar year.<br />
Auditors<br />
The auditors of the Issuer, BDO Deutsche Warentreuhand Aktiengesellschaft,<br />
WirtschaftspruÈfungsgesellschaft, Elisenstraûe 3, D-80335 MuÈnchen, have audited the Annual Accounts<br />
of the Issuer for the ®nancial years 1999 and 2000 and have issued an unquali®ed auditors' certi®cate in<br />
each case.<br />
78
THE GUARANTOR<br />
Incorporation, <strong>Re</strong>gistered Seat, Duration and Corporate Purpose<br />
The original incorporation of <strong>ERGO</strong> dates back to April 29, 1899. However, in its present form,<br />
<strong>ERGO</strong> is the result of a major reorganisation carried out in 1997. This reorganisation involved, among<br />
other things, the spin-off (Abspaltung) by <strong>ERGO</strong>, then operating as a life insurer under the name<br />
``Hamburg-Mannheimer <strong>AG</strong>'', of its entire life insurance business to Hamburg-Mannheimer<br />
Versicherungs-<strong>AG</strong>. Once this spin-off took effect, <strong>ERGO</strong> ceased to be an operating insurer and became<br />
the central holding company within the Hamburg-Mannheimer Group. In preparation for the merger of<br />
VICTORIA Holding <strong>AG</strong> into <strong>ERGO</strong>, the latter was renamed ``<strong>ERGO</strong> Versicherungsgruppe<br />
Aktiengesellschaft''. At present, <strong>ERGO</strong> is registered with the Commercial <strong>Re</strong>gister of the Local Court<br />
in DuÈsseldorf under docket number HR B 35978. The principal of®ce of <strong>ERGO</strong> is located at<br />
Victoriaplatz 2, D-40198 DuÈsseldorf.<br />
The duration of <strong>ERGO</strong> is unlimited.<br />
The corporate purpose of <strong>ERGO</strong>, as stated in its Articles of Association, is to manage a group of<br />
domestic and foreign companies involved in the primary insurance, reinsurance, insurance brokering,<br />
®nancial services and asset management business. <strong>ERGO</strong> may establish, acquire, or hold participations in<br />
domestic and foreign undertakings of any kind and manage, or simply administer any participations held in<br />
such undertakings. <strong>ERGO</strong> is entitled to transact all business and take all measures relating to, or appearing<br />
to be useful for promoting, its corporate purpose.<br />
Announcements of <strong>ERGO</strong> are published in the Federal Gazette of Germany.<br />
Share Capital<br />
As of June 30, 2001, the issued share capital of <strong>ERGO</strong> amounted to e 196,279,504.20 and was divided<br />
into 75,492,117 ordinary bearer shares with no par value. Accordingly, each share had a notional par value<br />
of e 2.60. The share capital of <strong>ERGO</strong> is fully paid up. Its shares have been listed on the Frankfurt and<br />
DuÈsseldorf stock exchanges since February 2, 1998 when they replaced the shares of VICTORIA Holding<br />
<strong>AG</strong> as a consequence of the merger of this company into <strong>ERGO</strong>.<br />
The Management Board, subject to the consent of the Supervisory Board, is authorised to increase<br />
the share capital of <strong>ERGO</strong> by October 6, 2002 by up to e 51,129,188.12 through the issuance of new shares<br />
in one or more tranches against contributions in cash or kind (authorised share capital). If certain<br />
prerequisites are ful®lled, the Management Board can also decide on the exclusion of the shareholders'<br />
subscription rights.<br />
The share capital of <strong>ERGO</strong> is conditionally increased by up to e 31,200,000 (conditional share<br />
capital). The conditional share capital increase will only be implemented to the extent that holders of stock<br />
options attaching to option bonds (Optionsschuldverschreibungen) or option participation rights<br />
(Optionsgenuûrechte) or holders of conversion rights attaching to convertible bonds<br />
(Wandelschuldverschreibungen) or convertible participation rights (Wandelgenuûrechte), in each case to<br />
be issued by October 6, 2002 in accordance with the authorisation of the Management Board dated<br />
October 6, 1997, make use of their option or conversion rights.<br />
By resolution of the general shareholders' meeting held on May 25, 2000, <strong>ERGO</strong> has been authorised<br />
to repurchase own shares representing up to 10% of its issued share capital by November 24, 2001. The<br />
purchase price for the shares must not exceed or fall below, by more than 10%, the average of®cial<br />
quotation for <strong>ERGO</strong>'s shares on the Frankfurt Stock Exchange on the three trading days preceding the<br />
purchase.<br />
79
Capitalisation<br />
The following table shows <strong>ERGO</strong>'s audited capitalisation as of December 31, 2000 and its unaudited<br />
capitalisation as of June 30, 2001:<br />
31/12/2000 31/12/2000<br />
e million e million<br />
Subscribed Capital and Capital <strong>Re</strong>serve PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 841 841<br />
<strong>Re</strong>venue <strong>Re</strong>serves PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 2,915 3,816<br />
Other <strong>Re</strong>serves (1) PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 1,620 1,195<br />
Consolidated Unappropriated Pro®t PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 953 145<br />
Shareholders' Equity PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 6,330 (2)<br />
5,997<br />
Bank Loans and Overdrafts (3) PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 1,054 1,655 (4)<br />
(1) The reduction in ``Other <strong>Re</strong>serves'' from December 31, 2000 to June 30, 2001 re¯ects a decline in unrealised pro®ts and losses from<br />
investments.<br />
(2) Figures do not add up due to rounding.<br />
(3) Otherwise, <strong>ERGO</strong>'s liabilities of e 12,057 million as of December 31, 2000 and e 13,417 million as of June 30, 2001 comprised<br />
primarily deposits on ceded business and accounts payable on direct insurance business with policyholders and intermediaries.<br />
(4) The increase in ``Bank Loans and Overdrafts'' from December 31, 2000 to June 30, 2001 is primarily due to a bank loan in the<br />
amount of e 500 million with a maturity of ®ve years which <strong>ERGO</strong> drew down in May 2001.<br />
There has been no material change in the capitalisation of the Guarantor since June 30, 2001.<br />
The <strong>ERGO</strong> Group<br />
The <strong>ERGO</strong> Group consists of <strong>ERGO</strong> and its domestic and foreign subsidiary companies. As the<br />
central holding company within the <strong>ERGO</strong> Group, the principal activity of <strong>ERGO</strong> is to perform<br />
management and control functions. The major domestic operating companies within the <strong>ERGO</strong> Group<br />
include:<br />
VICTORIA Versicherung <strong>AG</strong><br />
VICTORIA Lebensversicherung <strong>AG</strong><br />
VICTORIA Krankenversicherung <strong>AG</strong><br />
VICTORIA RuÈckversicherung <strong>AG</strong><br />
Hamburg-Mannheimer Sachversicherungs-<strong>AG</strong><br />
Hamburg-Mannheimer <strong>Re</strong>chtsschutz-Versicherungs-<strong>AG</strong><br />
Hamburg-Mannheimer Versicherungs-<strong>AG</strong><br />
DKV Deutsche Krankenversicherung <strong>AG</strong><br />
D.A.S. Versicherungs-<strong>AG</strong><br />
D.A.S. <strong>Re</strong>chtsschutz-Versicherungs-<strong>AG</strong><br />
Vorsorge Lebensversicherung <strong>AG</strong><br />
ME<strong>AG</strong> MUNICH <strong>ERGO</strong> AssetManagement GmbH<br />
<strong>ERGO</strong> Trust GmbH<br />
The <strong>ERGO</strong> Group is operating as an insurer in 22 foreign countries through 51 subsidiary insurance<br />
companies and 5 branches. Bayerische Vita S.p.A. (``Bayerische Vita'') and <strong>ERGO</strong> Hestia S.A. are the<br />
major foreign operating companies within the <strong>ERGO</strong> Group. Both were acquired indirectly by <strong>ERGO</strong> in<br />
the course of 2000. See ``The Guarantor ± Major New Acquisitions''.<br />
As of December 31, 2000, MuÈnchener RuÈckversicherungs-Gesellschaft <strong>AG</strong> (``<strong>Munich</strong> <strong>Re</strong>'') held<br />
directly and indirectly 62.9% of the shares in <strong>ERGO</strong> and was its largest single shareholder. <strong>ERGO</strong> is not<br />
aware that any other shareholder holds a participation of more than 5% in its share capital.<br />
On April 1, 2001 <strong>Munich</strong> <strong>Re</strong> made public its intention to increase its direct and indirect shareholding<br />
in <strong>ERGO</strong> to 95%. On May 17, 2001, <strong>Munich</strong> <strong>Re</strong> made a tender offer to minority shareholders to acquire<br />
two <strong>ERGO</strong> shares in exchange for one <strong>Munich</strong> <strong>Re</strong> share and a cash payment of e 18. The term of such<br />
tender offer ran from May 21, 2001 to July 19, 2001. In the tender offer document published on May 17,<br />
2001 <strong>Munich</strong> <strong>Re</strong> stated that Bayerische Hypo- und Vereinsbank Aktiengesellschaft intends to increase its<br />
shareholding in <strong>ERGO</strong> to 5% to expand the scope of the cooperation between the bank and the <strong>ERGO</strong><br />
80
Group and to reinforce the common long-term strategy. After the tender offer had been concluded, <strong>Munich</strong><br />
<strong>Re</strong> announced on July 25, 2001 that it had acquired 18,609,090 shares in <strong>ERGO</strong> and, as a result, now holds<br />
91.7% of <strong>ERGO</strong>'s share capital.<br />
As of December 31, 2000, the total assets of the <strong>ERGO</strong> Group were e 105,861 million (1999: e 97,711<br />
million). The <strong>ERGO</strong> Group had 21,309 (1999: 18,888) in-house employees and 6,180 (1999: 5,804) salaried<br />
®eld representatives at the end of 2000. In addition, 23,882 (1999: 17,656) full-time self-employed ®eld<br />
representatives were working for the <strong>ERGO</strong> Group.<br />
All major domestic and foreign companies within the <strong>ERGO</strong> Group are included in <strong>ERGO</strong>'s<br />
Consolidated Annual Accounts. In addition to the 45 domestic and 75 foreign subsidiary companies which<br />
have been consolidated in full, 20 domestic and 18 foreign companies have been accounted for as associated<br />
companies pursuant to the equity method in the 2000 Consolidated Annual Accounts of <strong>ERGO</strong>.<br />
Business of the <strong>ERGO</strong> Group<br />
Overview<br />
The <strong>ERGO</strong> Group functions as a primary insurance underwriter providing all classes of life, annuity<br />
and health insurance and virtually all types of property and casualty insurance as well as a provider of<br />
reinsurance in all classes of business. In addition, the <strong>ERGO</strong> Group offers insurance brokerage, asset<br />
management and ®nancial services to its customers. The main focus of the <strong>ERGO</strong> Group is on private<br />
customers (personal lines insurance), while its second core customer group consists of small and mediumsized<br />
undertakings. Approximately 90% of the <strong>ERGO</strong> Group's premium income was derived from business<br />
with private customers in 2000. In addition, the <strong>ERGO</strong> Group writes corporate and industrial business<br />
insurance on a selective basis. The <strong>ERGO</strong> Group intends to further develop its position as a major provider<br />
of occupational pension schemes.<br />
The <strong>ERGO</strong> Group is the second-largest primary insurance group in Germany with gross written<br />
premiums of e 12,669 million (1999: e 11,929 million) and investments of e 88,269 million (1999: e 84,645<br />
million) in 2000. The net pro®t of the <strong>ERGO</strong> Group for 2000 was e 804 million (1999: e 467 million) with<br />
e 246 million (1999: e 91 million) (without adjustment to re¯ect minority interests) attributable to certain<br />
non-recurring factors.<br />
In March 2001, the rating agency Standard & Poor's gave <strong>ERGO</strong> a rating of AA+ and each of<br />
VICTORIA Versicherung <strong>AG</strong>, VICTORIA Lebensversicherung <strong>AG</strong>, Hamburg-Mannheimer<br />
Sachversicherungs-<strong>AG</strong>, Hamburg-Mannheimer Versicherungs-<strong>AG</strong> and DKV Deutsche<br />
Krankenversicherung <strong>AG</strong> a rating of AAA.<br />
The <strong>ERGO</strong> Group pursues a multi-brand strategy. Consequently, it has maintained the brand-names<br />
VICTORIA, Hamburg-Mannheimer, DKV and D.A.S. Its insurance business is managed according to the<br />
business segments of life insurance, health insurance, property and casualty insurance and legal expenses<br />
insurance. In addition, with its business segment of ®nancial services, the <strong>ERGO</strong> Group provides<br />
institutional and private clients with asset management services and products.<br />
81
The following chart provides an overview of the structure of the <strong>ERGO</strong> Group by business segments:<br />
99.5 %<br />
100 %<br />
VICTORIA<br />
Lebensversicherung <strong>AG</strong><br />
100 %<br />
Vorsorge<br />
Lebensversicherung <strong>AG</strong><br />
Hamburg-Mannheimer<br />
Versicherungs-<strong>AG</strong><br />
Hamburg-Mannheimer<br />
foreign subsidiaries<br />
Life<br />
92.47 %<br />
Property and Casualty<br />
Legal Expenses<br />
6.29 %<br />
99.99 %<br />
VICTORIA<br />
Versicherung <strong>AG</strong><br />
100 %<br />
VICTORIA<br />
Rückversicherung <strong>AG</strong><br />
Hamburg-Mannheimer<br />
Sachversicherungs-<strong>AG</strong><br />
D.A.S.<br />
Versicherungs-<strong>AG</strong><br />
<strong>ERGO</strong> Versicherungsgruppe Aktiengesellschaft<br />
VICTORIA<br />
foreign subsidiaries<br />
Health<br />
100 %<br />
72.56 %<br />
Financial Services<br />
Foreign Business Operations<br />
D.A.S.<br />
<strong>Re</strong>chtsschutz-<br />
Versicherungs-<strong>AG</strong><br />
25.53 %<br />
1.79 %<br />
Hamburg-<br />
Mannheimer<br />
<strong>Re</strong>chtsschutz-<br />
Versicherungs-<strong>AG</strong><br />
49 %<br />
99.9 %<br />
DKV<br />
Deutsche Krankenversicherung<br />
<strong>AG</strong><br />
51 % 51 %<br />
D.A.S.<br />
foreign subsidiaries<br />
24 %<br />
25 %<br />
VICTORIA<br />
Krankenversicherung<br />
<strong>AG</strong><br />
DKV<br />
foreign subsidiaries<br />
ME<strong>AG</strong><br />
MUNICH <strong>ERGO</strong><br />
AssetManagement<br />
GmbH<br />
<strong>ERGO</strong><br />
Trust GmbH<br />
40 %<br />
100 %<br />
<strong>ERGO</strong><br />
foreign subsidiaries<br />
In 2000, life insurance accounted for 43% (1999: 43%), health insurance for 30% (1999: 30%),<br />
property and casualty insurance for 22% (1999: 21%) and legal expenses insurance for 5% (1999: 6%) of the<br />
total amount of gross written premiums.<br />
Business Segments<br />
Life Insurance<br />
As of December 31, 2000, the total assets of the <strong>ERGO</strong> Group's life insurance segment amounted to<br />
e 76,273 million (1999: e 69,954 million). It recorded gross written premiums of e 5,385 million (1999:<br />
e 5,114 million) and investments of e 63,534 million (1999: e 60,335 million) in 2000. Gross written<br />
premiums from domestic new business amounted to e 949 million (1999: e 1,234 million). However, the<br />
2000 and 1999 ®gures relating to domestic new business are not comparable, given that 1999 was an<br />
exceptional year. The Federal Government's plan to tax interest earnings on life insurance policies caused<br />
many German customers to take out a life insurance policy before the plan was scheduled to be introduced<br />
on January 1, 2000. Abroad, gross written premiums from new business reached e 136 million (1999: e 115<br />
million) and e 397 million (1999: e 347 million), including those from new businesses acquired in the<br />
course of 2000. Net pro®t of the life insurance segment for 2000 rose to e 198 million (1999: e 108 million).<br />
The revaluation of certain deferred tax items due to the reduction in corporation tax in Germany from 40%<br />
to 25% from 2001 onwards contributed e 13 million (without adjustment to re¯ect minority interests) to<br />
pro®t growth.<br />
Health Insurance<br />
As of December 31, 2000, the assets of the <strong>ERGO</strong> Group's health insurance segment were e 19,787<br />
million (1999: e 18,472 million). In 2000, gross written premiums amounted to e 3,834 million (1999:<br />
e 3,593 million) and investments to e 17,586 million (1999: e 16,494 million). Although an increase in<br />
gross written premiums was recorded in 2000, gross written premiums from domestic new business fell to<br />
e 243 million (1999: e 255 million). The main reason for this was the German Health <strong>Re</strong>form introduced in<br />
82
2000 with its 10% premium increase for private health insurance to stabilise premiums in old age. This<br />
caused private health insurers to be in a more dif®cult competitive position compared to the state health<br />
insurance system. Abroad, gross written premiums from new business were e 77 million in 2000 (1999: e 68<br />
million). Net pro®t of the health insurance segment for 2000 was e 215 million (1999: e 121 million), of<br />
which e 55 million (without adjustment to re¯ect minority interests) was attributable to the revaluation of<br />
certain deferred tax items.<br />
Property and Casualty Insurance<br />
As of December 31, 2000, the total assets of the <strong>ERGO</strong> Group's property and casualty insurance<br />
segment were e 8,467 million (1999: e 7,425 million). It recorded gross written premiums of e 2,756 million<br />
(1999: e 2,560 million) and investments of e 6,122 million (1999: e 5,731 million) in 2000. Within the<br />
property and casualty insurance segment, gross written premiums were divided among the major business<br />
lines as follows:<br />
Business Line<br />
Gross Written Premiums Percentage of Total Gross<br />
e million<br />
Written Premiums<br />
2000 1999 2000 1999<br />
Motor insurance PPPPPPPPPPPPPPPPPPPPPPPPPPPP 906.2 813.7 32.9% 31.8%<br />
Personal accident insurancePPPPPPPPPPPPPPPPPPP 708.8 683.1 25.7% 26.7%<br />
Fire and property insurance PPPPPPPPPPPPPPPPPP 489.1 448.9 17.7% 17.5%<br />
Liability insurance PPPPPPPPPPPPPPPPPPPPPPPPPP 376.6 360.5 13.7% 14.1%<br />
Transport and aviation insurancePPPPPPPPPPPPPP 109.2 103.3 4.0% 4.0%<br />
Other business lines PPPPPPPPPPPPPPPPPPPPPPPPP 166.3 150.2 6.0% 5.9%<br />
Total PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 2,756.2* 2,559.7 100% 100%<br />
* Figures do not add up due to rounding.<br />
Net pro®t of the property and casualty insurance segment for 2000 reached e 408 million (1999: e 207<br />
million). The revaluation of certain deferred tax items contributed e 161 million (without adjustment to<br />
re¯ect minority interests) to pro®t growth.<br />
Legal Expenses Insurance<br />
As of December 31, 2000, the assets of the <strong>ERGO</strong> Group's legal expenses insurance segment totalled<br />
e 1,848 million (1999: e 1,863 million). Gross written premiums amounted to e 695 million (1999: e 662<br />
million) and investments to e 1,495 million (1999: e 1,543 million) in 2000. While the level of gross written<br />
premiums from domestic new business remained virtually unchanged during this period, an increase of<br />
15.4% was achieved abroad. This brought the contribution of foreign business to the total amount of gross<br />
written premiums to e 260 million (1999: e 225 million). Net pro®t of the legal expenses insurance segment<br />
for 2000 fell to e 28 million (1999: e 53 million), primarily due to declining investment income. e 19<br />
million (without adjustment to re¯ect minority interests) of such net pro®t was attributable to the<br />
revaluation of certain deferred tax items.<br />
Financial Services<br />
As of December 31, 2000, the total assets of the <strong>ERGO</strong> Group's ®nancial services segment were e 513<br />
million (1999: e 130 million). In 2000, its investments amounted to e 386 million (1999: e 73 million). The<br />
market value of the assets under management rose to e 146 billion (1999: e 135 billion), of which e 137<br />
billion (1999: e 129 billion) were managed by ME<strong>AG</strong> MUNICH <strong>ERGO</strong> AssetManagement GmbH<br />
(``ME<strong>AG</strong>'') and e 9 billion (1999: e 6 billion) by <strong>ERGO</strong> Trust GmbH (``<strong>ERGO</strong> Trust''). <strong>ERGO</strong> Trust<br />
focuses on third party institutional customers, whereas ME<strong>AG</strong>'s principal activity is to manage the<br />
investments of <strong>Munich</strong> <strong>Re</strong> and the <strong>ERGO</strong> Group. In 2000, e 135 billion (1999: e 127 billion) of the total<br />
assets managed by ME<strong>AG</strong> were investments of <strong>Munich</strong> <strong>Re</strong> and the <strong>ERGO</strong> Group. Following start-up<br />
losses of e 1.4 million recorded when ME<strong>AG</strong> was established in 1999, the ®nancial services segment<br />
became pro®table in 2000 with a net pro®t of e 5 million.<br />
83
Business <strong>Re</strong>gions<br />
Germany<br />
As of December 31, 2000, the assets of the <strong>ERGO</strong> Group's domestic business operations totalled<br />
e 96,482 million (1999: e 93,531 million). Gross written premiums amounted to e 11,017 million (1999:<br />
e 10,769 million) and investments to e 82,856 million (1999: e 81,813 million) in 2000. The individual<br />
business segments made the following contributions to the total amount of domestic gross written<br />
premiums:<br />
Business Segment<br />
Gross Written Premiums Percentage of Total Gross<br />
e million<br />
Written Premiums<br />
2000 1999 2000 1999<br />
Life insurance PPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 4,843.4 4,793.6 44.0% 44.5%<br />
Health insurance PPPPPPPPPPPPPPPPPPPPPPPPPPPP 3,296.2 3,164.4 29.9% 29.4%<br />
Property and casualty insurancePPPPPPPPPPPPPPP 2,442.1 2,373.9 22.2% 22.0%<br />
Legal expenses insurance PPPPPPPPPPPPPPPPPPPPP 435.3 437.3 3.9% 4.1%<br />
Total PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 11,017 10,769.2 100% 100%<br />
Domestic net pro®t for 2000 increased to e 790 million (1999: e 420 million). The reduction in the<br />
German corporation tax rate from 40% to 25% from 2001 onwards led to the revaluation of certain<br />
deferred tax items, which resulted in a one-off increase of e 246 million (without adjustment to re¯ect<br />
minority interests). In 1999, the reduction in the corporation tax rate from 45% to 40% had already resulted<br />
in a contribution of e 91 million (without adjustment to re¯ect minority interests) to pro®t growth.<br />
<strong>Re</strong>st of Europe<br />
As of December 31, 2000, the total assets of the <strong>ERGO</strong> Group's foreign business operations were<br />
e 9,379 million (1999: e 4,179 million). Gross written premiums reached e 1,652 million (1999: e 1,159<br />
million) and investments rose to e 5,413 million (1999: e 2,831 million). If all new acquisitions had already<br />
been consolidated for the entire ®nancial year 2000, gross written premiums from foreign business<br />
operations would have amounted to e 2,325 million and their contribution to the total amount of <strong>ERGO</strong><br />
Group's gross written premiums would have reached 18%. On this basis, life insurance would have<br />
accounted for 46%, health insurance for 23%, property and casualty insurance for 20% and legal expenses<br />
insurance for 11% of the foreign insurance business volume in 2000. Among the major foreign business<br />
operations of the <strong>ERGO</strong> Group, gross written premiums would have been divided up as follows:<br />
Foreign Operations Gross Written Premiums<br />
e million<br />
Percentage of Total Gross<br />
Written Premiums<br />
Italy PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 705 30.3%<br />
Netherlands PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 396 17.0%<br />
Belgium PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 286 12.3%<br />
Spain PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 270 11.6%<br />
Austria PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 180 7.8%<br />
Poland PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 166 7.1%<br />
Other countries PPPPPPPPPPPPPPPPPPPPPPPPPPPP 322 13.9%<br />
TotalPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 2,325 100.0%<br />
Net pro®t of the foreign business operations for 2000 fell to e 14 million (1999: e 47 million). This<br />
was due mainly to an increase in claims and certain extraordinary circumstances. In addition, depreciation<br />
of goodwill resulted in a negative impact on pro®ts in the amount of e 12 million (1999: e 5 million).<br />
Major New Acquisitions<br />
As at December 1, 2000, <strong>ERGO</strong> acquired BBV Italia S.p.A. (``BBV Italia''), which holds 80% of the<br />
shares in the Italian property and casualty insurer Bayerische Assicurazioni S.p.A. (``Bayerische<br />
Assicurazioni'') (the remaining 20% was acquired directly by <strong>ERGO</strong>) and a participation of 70% in the<br />
Italian life insurer Bayerische Vita. <strong>ERGO</strong> intends to restructure Bayerische Assicurazioni from a<br />
84
predominantly motor insurer to a provider of comprehensive insurance to private customers. In 2000,<br />
Bayerische Vita recorded gross written premiums of e 649 million (1999: e 501 million) and was listed on<br />
the Milan Stock Exchange. After having indirectly acquired a majority participation in Bayerische Vita,<br />
<strong>ERGO</strong> made a tender offer as required by Italian takeover law to acquire the shares of minority<br />
shareholders. Given that only 1,400 out of 22.5 million shares (i.e. 0.0019%) were offered to <strong>ERGO</strong> for<br />
acquisition, the free ¯oat of shares in Bayerische Vita continues to be 30%.<br />
After obtaining a majority shareholding in <strong>ERGO</strong> Europa Beteiligungsgesellschaft <strong>AG</strong> (formerly<br />
Alte Leipziger Europa Beteiligungsgesellschaft <strong>AG</strong>, hereinafter ``<strong>ERGO</strong> Europe'' ) on July 1, 2000, <strong>ERGO</strong><br />
acquired a further participation of 25% in the share capital of <strong>ERGO</strong> Europe effective on December 31,<br />
2000. At present, <strong>ERGO</strong>'s shareholding in <strong>ERGO</strong> Europe amounts to 93.9%, while the remaining 6.1% is<br />
held by <strong>Munich</strong> <strong>Re</strong>. <strong>ERGO</strong> Europe, in turn, holds participations in insurance companies represented<br />
mainly in Central and Eastern European countries. The largest of those insurance companies is the Polish<br />
property and casualty insurer ``Hestia S.A.'', which was recently renamed ``<strong>ERGO</strong> Hestia S.A.'' (``<strong>ERGO</strong><br />
Hestia''). <strong>ERGO</strong> Hestia is the third-largest provider of property and casualty insurance in the Polish<br />
market with gross written premiums of e 148 million (1999: e 128 million) in 2000.<br />
Other new acquisitions made by the <strong>ERGO</strong> Group in 2000 included ``Levob<br />
Gezondheidszorgverzekering N.V.'', which was recently renamed ``N.V. Verzekeringsmaatschappij<br />
Rijnmond II''. This Dutch health insurer recorded e 36 million of gross written premiums in 2000. In<br />
Belgium, the <strong>ERGO</strong> Group acquired a majority shareholding in the property and casualty insurer LION<br />
BELGE SOCIETE ANONYME D'ASSURANCES.<br />
Business Developments in First Half 2001<br />
In the ®rst half of 2001, gross written premiums of the <strong>ERGO</strong> Group increased by 10.4% to e 6.9<br />
billion compared to the ®rst half of 2000. This growth was partly attributable to the subsidiaries in Italy as<br />
well as in Eastern Europe acquired in the course of 2000. Gross written premiums from foreign business<br />
operations rose by 73.4% to e 1.3 billion. Without taking into account these recent acquisitions, a growth<br />
rate of 15.1% would have been achieved abroad. In Germany, gross written premiums increased by 2% to<br />
e 5.6 billion. In relation to the business segments, life insurance as well as property and casualty insurance<br />
were the most important drivers with growth rates of 10.8% and 18.5%, respectively.<br />
In spite of weak capital markets, the investment portfolio of the <strong>ERGO</strong> Group rose by 2.1% to e 90.7<br />
billion compared to December 31, 2000. However, weak capital markets impacted on the net investment<br />
income which, as at June 30, 2001, accounted for e 2.5 billion. This constitutes a fall of 8.5% compared to<br />
e 2.7 billion as at June 30, 2000. Meanwhile, current income rose by 25.3% to e 2.6 billion.<br />
The net pro®t of the <strong>ERGO</strong> Group in the ®rst half of 2001 amounted to e 145 million. However, the<br />
<strong>ERGO</strong> Group believes that this ®gure is in¯uenced by certain special factors, including the condition of the<br />
capital markets. The <strong>ERGO</strong> Group anticipates that this is not an indication of the developments for the<br />
rest of the year.<br />
<strong>Re</strong>cent Business Developments and Outlook<br />
<strong>ERGO</strong> plans to transfer its shareholdings in certain foreign subsidiaries, e.g. BBV Italia or <strong>ERGO</strong><br />
Europe, to the Issuer by contributing such shareholdings to the Issuer's capital reserve. It is intended that,<br />
in the future, the Issuer will also function as a holding company for certain other foreign companies of the<br />
<strong>ERGO</strong> Group.<br />
The <strong>ERGO</strong> Group's target market is Europe, where it aims to occupy a leading position in the life,<br />
health and personal accident insurance segments. Outside Germany, the main focus of the <strong>ERGO</strong> Group<br />
will be on those European countries in which particularly strong growth can be expected in the personal<br />
insurance business, such as Italy, Spain and the Central and Eastern European countries. In order to<br />
strengthen its market position in Europe further, the <strong>ERGO</strong> Group will not only try to make the most of<br />
acquisition opportunities but also integrate the products and services offered by the individual <strong>ERGO</strong><br />
Group companies into a European network. The <strong>ERGO</strong> Group believes that expansion in Europe will only<br />
be successful if it is able to manage effectively the integration of newly acquired companies. For that<br />
purpose, <strong>ERGO</strong> has recently established a ``<strong>International</strong> Operations'' division.<br />
85
The <strong>ERGO</strong> Group expects that the German Pension <strong>Re</strong>form of 2001 (the ``Pension <strong>Re</strong>form'') will<br />
result in considerable additional demand for products that supplement retirement income. This is due to<br />
the fact that one of the main objectives of the Pension <strong>Re</strong>form is to promote a broadly invested, capitalfunded<br />
private pension scheme, supplementing the state pension system, through subsidising certain<br />
of®cially certi®ed products. Although there is still some uncertainty as to the individual products receiving<br />
of®cial certi®cation, the Association of German Life Insurers nevertheless anticipates that, by the end of<br />
2002, German customers will increase signi®cantly their spending on life insurance policies. The <strong>ERGO</strong><br />
Group expects that the Pension <strong>Re</strong>form will not only provide additional impetus for the traditional life<br />
insurance business but also for the sale of fund products, both directly and in the form of unit-linked life<br />
insurance. As one of the largest German life insurers, the <strong>ERGO</strong> Group believes it is in an excellent<br />
position to participate actively in the new business generated through the Pension <strong>Re</strong>form.<br />
Management Board<br />
The Management Board of <strong>ERGO</strong> consists of eight members. At present, it includes:<br />
Name Position within Management Board <strong>Re</strong>sponsibilities within Group<br />
Dr. Lothar Meyer Chairman Strategy, Corporate Policy, Planning,<br />
Accounting, Controlling, Auditing,<br />
Taxes, Press and Investor <strong>Re</strong>lations<br />
Dr. Jan Boetius Member Health Insurance<br />
Horst DoÈring Member Property and Casualty Insurance<br />
Dr. Franz-Wilhelm Hopp Member Finances, Capital Investments and<br />
Financial Services<br />
Wulf Nibbe Member Legal Expenses Insurance<br />
Michael Rosenberg Member Life Insurance and Information<br />
Processing<br />
Hans Ufer Member Foreign Business Operations<br />
Dr. GoÈtz Wricke Member Life Insurance and Personal Accident<br />
Insurance<br />
The business address of the members of the Management Board is the same as that of <strong>ERGO</strong>'s<br />
principal of®ce set out above.<br />
Supervisory Board<br />
The Supervisory Board of <strong>ERGO</strong> consists of 20 members. The following individuals are currently<br />
members of <strong>ERGO</strong>'s Supervisory Board:<br />
Name Position within Supervisory Board Principal Occupation<br />
Dr. Hans-JuÈrgen Schinzler Chairman Chairman of the Management Board<br />
of MuÈnchener RuÈckversicherungs-<br />
Gesellschaft <strong>AG</strong><br />
Horst Poganaz Deputy Chairman Employee of the VICTORIA insurance<br />
companies<br />
GuÈnter Bayerle Member Employee of DKV Deutsche<br />
Krankenversicherung <strong>AG</strong><br />
Hans-Peter Clauûen Member Employee of D.A.S. Deutscher<br />
Automobil Schutz Allgemeine<br />
<strong>Re</strong>chtsschutz-Versicherungs-<strong>AG</strong><br />
Dr. Ralf Corsten Member Chairman of the Management Board<br />
of PREUSS<strong>AG</strong> <strong>AG</strong><br />
Helmut Dobmeier Member Director, Employee of the VICTORIA<br />
insurance companies<br />
86
Name Position within Supervisory Board Principal Occupation<br />
Frank Fassin Member Deputy District Chairman<br />
(Landesbezirksleiter) of the<br />
Wholesaling & <strong>Re</strong>tailing, Banking and<br />
Insurance Employees' Union (HBV)<br />
Hinrich Feddersen Member Member of the Executive Board of the<br />
Wholesaling & <strong>Re</strong>tailing, Banking and<br />
Insurance Employees' Union<br />
Prof. Dr. Dr.h.c. Joachim Funk Member Former Chairman of the Supervisory<br />
Board of Mannesmann <strong>AG</strong><br />
Dr. Joachim von Harbou Member Member of the Management Board of<br />
Dresdner Bank <strong>AG</strong><br />
Dr. Heiner Hasford Member Member of the Management Board of<br />
MuÈnchener RuÈckversicherungs-<br />
Gesellschaft <strong>AG</strong><br />
Dr. Edgar Jannott Member Former Chairman of the Management<br />
Board of <strong>ERGO</strong><br />
Dr. Gerhard Jooss Member Member of the Management Board of<br />
ThyssenKrupp <strong>AG</strong><br />
Klaus Roth Member Employee of DKV Deutsche<br />
Krankenversicherung <strong>AG</strong><br />
Richard Sommer Member Head of the insurance federal<br />
occupational group and member of the<br />
Federal Executive of the German<br />
Salaried Staff Union (D<strong>AG</strong>)<br />
Holger Stubbe Member Employee of Hamburg-Mannheimer<br />
Versicherungs-<strong>AG</strong><br />
Dr. Richard Trautner Member Deputy Chairman of the Supervisory<br />
Board of Bayerische Hypo- und<br />
Vereinsbank <strong>AG</strong><br />
Dr. Hans-Dietrich Winkhaus Member Former Chairman of the Executive<br />
Management of Henkel KgaA<br />
Marianne Wloch Member Employee of Hamburg-Mannheimer<br />
Versicherungs-<strong>AG</strong><br />
Bernd Wrede Member Chairman of the Management Board<br />
of Hapag-Lloyd <strong>AG</strong><br />
The business address of the Supervisory Board members is the same as that of <strong>ERGO</strong>'s principal<br />
of®ce set out above.<br />
Financial Year<br />
The ®nancial year of <strong>ERGO</strong> is the calendar year.<br />
Auditors<br />
The auditors of <strong>ERGO</strong>, BDO Deutsche Warentreuhand Aktiengesellschaft,<br />
WirtschaftspruÈfungsgesellschaft, Elisenstraûe 3, D-80335 MuÈnchen, have audited the Management<br />
<strong>Re</strong>port and the Consolidated Annual Accounts as well as the unconsolidated Annual Accounts of<br />
<strong>ERGO</strong> for the ®nancial years 1999 and 2000 and have issued an unquali®ed auditors' certi®cate in each<br />
case.<br />
87
E.ON <strong>AG</strong><br />
The information contained in this Information Memorandum relating to E.ON and the E.ON Shares has<br />
been accurately reproduced from, or is a summary of, publicly available information published by E.ON. So<br />
far as the Issuer and the Guarantor are aware and/or are able to ascertain from such information, no facts have<br />
been omitted which would render the reproduced information misleading. The Issuer and the Guarantor accept<br />
responsibility for the accurate reproduction or, as the case may be, summary of such information. No further or<br />
other responsibility in respect of such information is accepted by the Issuer or the Guarantor.<br />
Incorporation, <strong>Re</strong>gistered Seat, Duration and Corporate Purpose<br />
E.ON is a German stock corporation (Aktiengesellschaft) and was incorporated under the name<br />
``Vereinigte ElektrizitaÈts- und Bergwerks-Aktiengesellschaft'' in 1929. It was renamed ``VEBA <strong>AG</strong>'' in<br />
1970. In the middle of 2000, VEBA <strong>AG</strong> (``VEBA'') merged with VI<strong>AG</strong> <strong>AG</strong>, <strong>Munich</strong> (``VI<strong>AG</strong>''). This<br />
merger was implemented by merging VI<strong>AG</strong> into VEBA, with the latter continuing as the surviving entity.<br />
The newly-merged company was subsequently renamed ``E.ON <strong>AG</strong>''. E.ON's registered seat is at<br />
DuÈsseldorf where it is registered with the Commercial <strong>Re</strong>gister of the Local Court under docket number<br />
HR B 22315. The principal of®ce of E.ON is located at E.ON-Platz 1, D-40479 DuÈsseldorf.<br />
The duration of E.ON is unlimited.<br />
The corporate purpose of E.ON, as stated in its Articles of Association, is to manage a group of<br />
companies active in the following business sectors:<br />
. energy, with main operations in electricity, gas, oil as well as water and waste disposal;<br />
. chemicals, principally consisting of speciality chemicals, construction chemicals, and<br />
.<br />
petrochemicals;<br />
telecommunications; and<br />
. real-estate management.<br />
E.ON is furthermore authorised to manage business in the ®elds of distribution and logistics,<br />
aluminium, silicon wafers and packaging.<br />
Activities in these business sectors include generation, processing and working as well as distribution<br />
and transmission, supply and trading. Facilities of all kinds can be erected, acquired and operated, and<br />
services and business cooperations of all kinds can be undertaken.<br />
E.ON itself can also conduct business in the sectors stated above, in particular, it can conclude<br />
individual transactions. It is entitled to take all actions and measures associated with its corporate purpose<br />
or suited to serve said purpose, directly or indirectly.<br />
E.ON can also establish and purchase other companies as well as acquire shareholdings in other<br />
companies, particularly companies whose corporate purpose includes the aforementioned business sectors<br />
wholly or in part. It is further entitled to acquire interests in companies of all kinds with the primary<br />
objective of investing ®nancial resources. It can amend the structure of companies in which it holds an<br />
investment as well as place them under joint control, or restrict itself to the administration of said<br />
companies and keep its investments at its disposal.<br />
Announcements of E.ON are published in such means of publication as laid down in applicable laws<br />
and regulations.<br />
Share Capital<br />
As of December 31, 2000, the registered share capital of E.ON amounted to e 1,984,577,075 and was<br />
divided into 763,298,875 ordinary bearer shares with no par value. Accordingly, each E.ON Share had a<br />
notional par value of e 2.60. As of December 31, 2000, the total amount of outstanding E.ON Shares was<br />
712,781,940.<br />
The E.ON Shares are listed on all eight German stock exchanges and the Swiss Stock Exchange.<br />
E.ON also has American Depositary Shares (ADSs) listed on the New York Stock Exchange.<br />
88
Business of E.ON<br />
E.ON is the holding company of a group of subsidiary undertakings (E.ON together with its<br />
subsidiary undertakings, the ``E.ON Group''). The E.ON Group operates world-wide and is active in a<br />
wide range of business areas. The main focus of the E.ON Group is on its core business area of energy.<br />
Other businesses of the E.ON Group include speciality chemicals, real estate, telecommunications,<br />
distribution and logistics, aluminium and silicon wafers.<br />
Rights Attaching to Shares<br />
Transfer of Shares<br />
The transfer of E.ON Shares is not restricted and does not require the approval of E.ON.<br />
Annual General Meetings<br />
The annual general meetings of shareholders are held at the registered seat of E.ON or at another<br />
major German city. The annual general meetings are called by the Management Board in agreement with<br />
the Chairman of the Supervisory Board. The convening must be announced not less than one month before<br />
the day by the end of which the shares must be deposited according to E.ON's Articles of Association.<br />
Voting Rights<br />
The right to attend, and to vote at, the annual general meeting is accorded only to those shareholders<br />
who deposit their E.ON Shares with a notary public, a securities clearing and depositing bank or one of the<br />
other depositories named in the noti®cation of convocation by the end of the seventh day before the date of<br />
the annual general meeting, where they will be retained until the conclusion of the annual general meeting.<br />
In case the seventh day before the date of the annual general meeting is a Sunday or a public holiday or a<br />
day on which banks are not open for business, the relevant day shall be the business day immediately<br />
preceding such day.<br />
At the annual general meeting, each E.ON Share confers one vote. <strong>Re</strong>solutions will be adopted by a<br />
simple majority of the votes cast. In cases where a majority of the share capital is required by mandatory<br />
law, a simple majority of the share capital will suf®ce, unless mandatory legal provisions or E.ON's Articles<br />
of Association require otherwise.<br />
Dividend Rights<br />
Dividends in respect of E.ON Shares are declared once a year at the annual general meeting. For each<br />
®nancial year, the Board of Management approves E.ON's unconsolidated ®nancial statements and<br />
submits them together with a proposal regarding the distribution of pro®ts to the Supervisory Board for its<br />
approval. After examining the ®nancial statements and proposal for pro®t distribution, the Supervisory<br />
Board presents a report in writing at the annual general meeting. On the basis of the Supervisory Board's<br />
report, the shareholders vote on the Management Board's proposal regarding the disposition of all<br />
unappropriated pro®ts, including the amount of net pro®ts to be distributed as a dividend. E.ON's<br />
shareholders participate in the distribution of dividends in proportion to their shareholdings. Prior to<br />
liquidation of E.ON, the only amounts that may be distributed to shareholders under German law are the<br />
distributable pro®ts (Bilanzgewinn).<br />
Rights in Liquidation<br />
According to German law, in the event of liquidation, the assets of E.ON remaining after discharge of<br />
its liabilities will be distributed to its shareholders in proportion to their shareholdings.<br />
Financial Year<br />
The ®nancial year of E.ON is the calendar year.<br />
89
Selected Financial Data<br />
The following table sets out selected ®nancial data (in accordance with U.S. GAAP) for E.ON<br />
(VEBA for periods prior to July 1, 2000) for the three years ending December 31, 2000. This data should be<br />
read in conjunction with, and is quali®ed in its entirety by reference to, certain documents relating to E.ON<br />
incorporated by reference into this Information Memorandum. See ``Additional Information''.<br />
2000 1999 1998<br />
e million e million e million<br />
Statement of Income Data:<br />
Sales PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 82,983 50,515 42,787<br />
Sales excluding electricity and petroleum taxes (1) PPPPPPPPPPPP<br />
Earnings from companies accounted for under the equity<br />
74,048 46,572 39,045<br />
methodPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 48 311 96<br />
Income before income taxes PPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 6,551 4,400 2,385<br />
Income before minority interests (2) PPPPPPPPPPPPPPPPPPPPPPPPP 4,039 3,123 1,161<br />
Net income PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP<br />
Balance Sheet Data:<br />
3,570 2,991 1,174<br />
Total assets PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 106,215 56,219 45,552<br />
Long-term debt PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 7,130 3,630 2,339<br />
Shareholders' equity (3) PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 28,033 15,813 13,855<br />
(1) German law requires the seller of petroleum products and, as of April 1, 1999, electricity to collect petroleum taxes and electricity<br />
taxes, respectively, and remit such amounts to tax authorities.<br />
(2) Before minority interest of positive e 469 million for 2000 as compared with positive e 132 million and negative e 13 million for<br />
1999 and 1998, respectively.<br />
(3) After minority interest.<br />
(Source: 2000 E.ON Annual <strong>Re</strong>port on Form 20-F)<br />
E.ON publishes interim reports on a quarterly basis. The following table sets out selected ®nancial<br />
data (in accordance with U.S. GAAP) for E.ON as of and for the six months ending June 30, 2001. This<br />
data should be read in conjunction with, and is quali®ed in its entirety by reference to, certain documents<br />
relating to E.ON incorporated by reference into this Information Memorandum. See ``Additional<br />
Information''.<br />
1st Half 2001<br />
e million<br />
Statement of Income Data:<br />
Sales PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 44,535<br />
Sales excluding electricity and petroleum taxes * PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 39,810<br />
<strong>Re</strong>sults from ordinary business activities PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 2,035<br />
Minority interests PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP (46)<br />
Net income PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP<br />
Balance Sheet Data: PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP<br />
832<br />
Total assets PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 114,574<br />
Liabilities PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 42,042<br />
Shareholders' equity PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 26,445<br />
* German law requires the seller of petroleum products and, as of April 1, 1999, electricity to collect petroleum taxes and electricity<br />
taxes, respectively, and remit such amounts to tax authorities.<br />
(Source: E.ON Interim <strong>Re</strong>port II/2001)<br />
90
Distribution of Net Income<br />
The following table sets out the basic earnings per E.ON Share for the three years ending December<br />
31, 2000:<br />
Earnings per<br />
Share*<br />
e<br />
2000 PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 5.75<br />
1999 PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 5.95<br />
1998 PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 2.34<br />
* Figures for 1999 and 1998 refer to former VEBA shares.<br />
(Source: 2000 E.ON Annual <strong>Re</strong>port on Form 20-F)<br />
The following table sets out the dividends paid per E.ON Share for the three years ending December<br />
31, 2000:<br />
Dividend per<br />
Share*<br />
e<br />
2000 PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 1.35<br />
1999 PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 1.25<br />
1998 PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 1.07<br />
* Figures for 1999 and 1998 refer to former VEBA shares.<br />
(Source: 2000 E.ON Annual <strong>Re</strong>port on Form 20-F)<br />
Share Price Statistics<br />
The following table sets out, for the three years ending December 31, 2000, the closing price per E.ON<br />
Share in XETRA, as reported by the Frankfurt Stock Exchange, at year-end:<br />
Share Price at<br />
Year-end*<br />
e<br />
2000 PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 64.80<br />
1999 PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 48.45<br />
1998 PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 51.12<br />
* Figures for 1999 and 1998 refer to former VEBA shares.<br />
(Source: Deutsche BoÈrse <strong>AG</strong>)<br />
The following table sets out the highs and lows of the price per E.ON Share in XETRA, as reported<br />
by the Frankfurt Stock Exchange, for the three years ending December 31, 2000:<br />
2000 PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 66.55 41.01<br />
1999 PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 62.60 41.60<br />
1998 PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 66.90 41.11<br />
* Figures for 1999 and 1998 refer to former VEBA shares.<br />
(Source: Deutsche BoÈrse <strong>AG</strong>)<br />
91<br />
High*<br />
e<br />
Low*<br />
e
The following table sets out the highs and lows of the price per E.ON Share in XETRA, as reported<br />
by the Frankfurt Stock Exchange, for the six months ending August 31, 2001:<br />
August 2001PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 62.68 60.00<br />
July 2001 PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 64.50 60.10<br />
June 2001 PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 61.94 58.55<br />
May 2001 PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 59.60 54.90<br />
April 2001 PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 58.20 51.95<br />
March 2001 PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 56.21 46.95<br />
(Source: Deutsche BoÈrse <strong>AG</strong>)<br />
Set out below is the closing price per E.ON Share in XETRA, as reported by the Frankfurt Stock<br />
Exchange, on September 12, 2001:<br />
High<br />
e<br />
Low<br />
e<br />
Share Price<br />
e<br />
September 12, 2001PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 54.75<br />
(Source: Deutsche BoÈrse <strong>AG</strong>)<br />
Major <strong>Re</strong>cent Developments<br />
In April 2001, E.ON tendered a conditional takeover offer of 765 pence (e 12.19) per share to the<br />
shareholders of Powergen plc (``Powergen''). The purchase price for 100% of Powergen's shares amounts to<br />
e 8.3 billion. Powergen's enterprise value, including liabilities, totals e 15.3 billion. The submission of the<br />
®nal offer is subject to various regulatory approvals in the United Kingdom, the United States and from<br />
the EU Commission. E.ON expects the transaction to be completed in spring 2002.<br />
According to a press release published on July 16, 2001, E.ON and British Petroleum plc (``BP'') have<br />
agreed to reorganise their oil and gas activities in Germany. In the context of an increase of its share capital<br />
at the turn of the years 2001/2002, E.ON has agreed to acquire a shareholding of 51% in the BP subsidiary<br />
Gelsenberg <strong>AG</strong>, which holds 25.5% in Ruhrgas <strong>AG</strong>. In a second step, BP will be granted an option as of<br />
January 2002 to sell its remaining 49% share in Gelsenberg <strong>AG</strong> to E.ON. At the same time, BP has agreed<br />
to acquire a shareholding of 51% in the wholly-owned E.ON subsidiary Veba Oel <strong>AG</strong> through an increase<br />
of its share capital. As part of the share capital increase, BP will redeem the shareholder loans granted by<br />
E.ON of approximately e 1.9 billion. E.ON will be able to exercise a put option as of April 2002 to sell its<br />
remaining 49% share in Veba Oel <strong>AG</strong> to BP. These transactions are subject to antitrust approval.<br />
On August 8, 2001, E.ON announced that it has agreed to sell its wholly-owned subsidiary KloÈckner<br />
& Co. <strong>AG</strong> to Balli group, London. The transaction is subject to Supervisory Board and antitrust approval.<br />
Additional Information<br />
Additional information regarding the share capital, business and management of E.ON is available in<br />
the 2000, 1999 and 1998 Annual <strong>Re</strong>ports and the Interim <strong>Re</strong>port for the ®rst half of the ®nancial year 2001<br />
of E.ON (1999 and 1998: VEBA) which are incorporated by reference into this Information Memorandum.<br />
92
AVENTIS S.A.<br />
The information contained in this Information Memorandum relating to Aventis and the Aventis Shares<br />
has been accurately reproduced from, or is a summary of, publicly available information published by Aventis.<br />
So far as the Issuer and the Guarantor are aware and/or are able to ascertain from such information, no facts<br />
have been omitted which would render the reproduced information misleading. The Issuer and the Guarantor<br />
accept responsibility for the accurate reproduction or, as the case may be, summary of such information. No<br />
further or other responsibility in respect of such information is accepted by the Issuer or the Guarantor.<br />
Incorporation, <strong>Re</strong>gistered Seat, Duration and Corporate Purpose<br />
Aventis is a French stock corporation (socieÂte anonyme) and was formed in December 1999 through<br />
the combination of the pharmaceutical and agriculture activities (and remaining industrial activities subject<br />
to divestment) of RhoÃne-Poulenc S.A. (``RhoÃne-Poulenc'') and Hoechst <strong>AG</strong> (``Hoechst''). The combination<br />
was effected by way of an exchange offer by RhoÃne-Poulenc for the shares in Hoechst, after which the<br />
combined company was renamed ``Aventis''. The registered seat of Aventis is at Strasbourg (Bas-Rhin)<br />
where it is registered with the <strong>Re</strong>gister of Commerce and Companies under docket number 542 064 308.<br />
The principal of®ce of Aventis is located at F-67917 Strasbourg Cedex 09.<br />
The duration of Aventis is limited. It shall cease to exist on July 17, 2030, except in the event of an<br />
earlier dissolution or extension decided at an extraordinary general meeting of shareholders.<br />
The corporate purpose of Aventis, as stated in its By-Laws, is:<br />
. the taking by any means with no exceptions nor reservations, the holding in ownership or in<br />
mere possession, the management, as the case may be, the transfer by any means with no<br />
exceptions nor reservations or all or part of any minority or majority participations in any<br />
business ®eld, in particular pertaining to ``life sciences'' comprising inter alia ``pharma''<br />
(including pharmaceuticals, biologics, diagnostics and vaccines) and ``agro'' (including crop<br />
sciences and animal nutrition) and ``veterinary'' business and, more generally, of any<br />
participation in all companies or businesses whatsoever existing or to be created;<br />
. the assistance to its subsidiaries and participations in any matter notably administrative and<br />
®nancial;<br />
. and generally, all industrial, commercial, ®nancial, civil, personal property or real property<br />
directly or indirectly linked to either corporate purpose set forth hereabove or to all similar or<br />
related purposes.<br />
Share Capital<br />
As of December 31, 2000, the registered share capital of Aventis amounted to e 3,002,059,625.06 and<br />
was divided into 785,879,483 ordinary shares with a nominal value of e 3.82 each. The By-Laws of Aventis<br />
set forth that Aventis Shares may be held either in registered or in bearer form, except that holders of 1% or<br />
more of Aventis' share capital are required to register their Aventis Shares.<br />
The Aventis Shares are listed on the Euronext Paris and Frankfurt stock exchanges. Aventis also has<br />
American Depositary Shares (ADSs) listed on the New York Stock Exchange.<br />
Business of Aventis<br />
Aventis is the holding company of a group of subsidiary undertakings (Aventis together with its<br />
subsidiary undertakings, the ``Aventis Group''). The Aventis Group operates world-wide and is active in a<br />
wide range of business areas. The main focus of the Aventis Group is on its four core business areas of<br />
prescription drugs, human vaccines, therapeutic proteins and animal health. The non-core businesses of the<br />
Aventis Group include crop protection and production, animal nutrition, diagnostics and industrial<br />
activities.<br />
Rights Attaching to Shares<br />
Transfer of Shares<br />
The transfer of Aventis Shares is not restricted and does not require the approval of Aventis.<br />
93
Annual General Meetings<br />
The annual general meetings of shareholders are called and held in accordance with the applicable<br />
provisions of French law. The annual general meetings are held at the registered seat of Aventis or at any<br />
other location designated for that purpose in the announcement of convocation.<br />
Voting Rights<br />
The right to attend, and to vote at, the annual general meeting is accorded only to those shareholders<br />
(holding Aventis Shares in bearer form) who obtain from the accredited ®nancial intermediary with whom<br />
they maintain their securities deposit account a certi®cate (certi®cat d'immobilisation de titres au porteur)<br />
indicating the number of Aventis Shares owned and evidencing the holding of such shares in the relevant<br />
securities deposit account until the date of the annual general meeting. Such certi®cate needs to be<br />
deposited at the address speci®ed in the announcement of convocation at least ®ve days before the date of<br />
the annual general meeting. Similarly, the shareholders holding Aventis Shares in registered form are<br />
required to have their Aventis Shares registered in their names with a share register maintained by or on<br />
behalf of Aventis at least ®ve days before the date of the annual general meeting. The respective ®ve day<br />
period may be reduced by the Management Board or the Supervisory Board.<br />
At the annual general meeting, each Aventis Share confers one vote. <strong>Re</strong>solutions will be adopted by a<br />
simple majority of the votes cast. A majority of two-thirds of the votes cast is required for resolutions<br />
affecting Aventis' By-Laws.<br />
Dividend Rights<br />
The unconsolidated net income of Aventis in each ®nancial year is available (net of adjustments) for<br />
distribution to its shareholders as dividends. The annual general meeting, either on a recommendation from<br />
the Management Board or on its own initiative, may allocate all or part of the distributable pro®ts of<br />
Aventis, if any, to one or more special or general reserves or to keep such pro®ts as retained earnings to be<br />
carried forward to the next ®nancial year. Any remaining distributable pro®ts are divided amongst the<br />
shareholders as dividends in proportion to their shareholdings. Dividends are payable to holders of Aventis<br />
Shares outstanding on the date determined by the annual general meeting approving the distribution of<br />
dividends, or in the absence of such determination, outstanding on the date ®xed by the Management<br />
Board.<br />
Rights in Liquidation<br />
According to French law, in the event of liquidation, the assets of Aventis remaining after<br />
reimbursement of Aventis Shares at their nominal value will be distributed to its shareholders in proportion<br />
to their shareholdings.<br />
Financial Year<br />
The ®nancial year of Aventis is the calendar year.<br />
94
Selected Financial Data<br />
The following table sets out selected ®nancial data (in accordance with French GAAP) for Aventis<br />
(RhoÃne-Poulenc for periods prior to December 15, 1999) for the three years ending December 31, 2000.<br />
This data should be read in conjunction with, and is quali®ed in its entirety by reference to, certain<br />
documents relating to Aventis incorporated by reference into this Information Memorandum. See<br />
``Additional Information''.<br />
2000 1999 1998<br />
e million e million e million<br />
Income Statement Data:<br />
Net salesPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 22,304 12,598 13,232<br />
Operating income (loss) PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 617 (544) 969<br />
Income (loss) before taxes and minority interests PPPPPPPPPPPP (25) (823) 1,138<br />
Provisions for income taxesPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP (60) 42 (343)<br />
Minority interest PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP (85) (70) (9)<br />
Net income (loss) before preferred remuneration PPPPPPPPPPPP (29) (851) 786<br />
Preferred remuneration (1) PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP<br />
Net income available for distribution to common shareholders<br />
(118) (119) (142)<br />
or (loss) (2) PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP<br />
Balance Sheet Data:<br />
(117) (970) 644<br />
Working capital (3) PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP (1,009) (2,913) (775)<br />
Property, plant and equipment, net PPPPPPPPPPPPPPPPPPPPPPPP 7,498 7,496 5,339<br />
Total assets PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 42,183 41,578 24,318<br />
Long-term debt (4) PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 8,216 6,437 3,868<br />
Other long-term liabilities PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 6,994 5,944 2,642<br />
Net debt (5) PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 13,133 12,270 6,172<br />
Minority interests in net assets of consolidated subsidiaries PPP 1,029 1,460 1,028<br />
Amortizable preferred securities PPPPPPPPPPPPPPPPPPPPPPPPPPP 272 325 339<br />
Shareholders' equity PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 10,561 10,371 7,750<br />
(1) Preferred remunerations consist of payments with respect to (a) Preference Shares Series A, (b) amortizable Preferred Securities,<br />
(c) Participating Shares Series A and (d) Capital Equity Notes.<br />
(2) Common shares consist of Ordinary Shares ``A'' and the Preferred Shares ``B.'' In 1998, RhoÃne-Poulenc converted all 926,820<br />
issued Preferred Shares ``B'' into Ordinary Shares ``A'' on a one-to-one basis.<br />
(3) Working capital is de®ned as total current assets minus total current liabilities.<br />
(4) Long-term debt includes the debt relating to capitalised leases but does not include the current portion of long-term debt.<br />
(5) Net debt is de®ned as bank overdrafts, current portion of long-term debt, short-term and long-term borrowings minus cash, shortterm<br />
deposits and marketable securities.<br />
(Source: 2000 Aventis Annual <strong>Re</strong>port on Form 20-F)<br />
95
Aventis publishes interim reports on a quarterly basis. The following table sets out selected ®nancial<br />
data (in accordance with French GAAP) for Aventis as of and for the six months ending June 30, 2001.<br />
This data should be read in conjunction with, and is quali®ed in its entirety by reference to, certain<br />
documents relating to Aventis incorporated by reference into this Information Memorandum. See<br />
``Additional Information''.<br />
First Half<br />
2001<br />
e million<br />
Income Statement Data:<br />
Net salesPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 11,646<br />
Operating income PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 1,772<br />
Income before taxPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 1,487<br />
Tax PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP (572)<br />
Minority interestPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP (124)<br />
Preferred remuneration (1) PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP (60)<br />
Net income PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP<br />
Balance Sheet Data:<br />
730<br />
Property, plant and equipment, net PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 5,609<br />
Total assets PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 41,295<br />
Long-term debt (2) PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 5,786<br />
Other long-term liabilities PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 7,158<br />
Minority interests in net assets of consolidated subsidiaries PPPPPPPPPPPPPPPPPPPPPPPPPPP 1,207<br />
Amortizable preferred securities PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 248<br />
Shareholders' equity PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 11,595<br />
(1) Preferred remunerations consist of payments with respect to (a) Preference Shares Series A, (b) amortizable Preferred Securities,<br />
(c) Participating Shares Series A and (d) Capital Equity Notes.<br />
(2) Long-term debt includes the debt relating to capitalised leases but does not include the current portion of long-term debt.<br />
(Source: Aventis <strong>Re</strong>port for First Half 2001)<br />
Distribution of Net Income<br />
The following table sets out the basic earnings per Aventis Share for the three years ending December<br />
31, 2000:<br />
Earnings/Loss<br />
per Share*<br />
e<br />
2000 PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP (0.19)<br />
1999 PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP (2.49)<br />
1998 PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 1.75<br />
* Figures for 1999 and 1998 refer to former RhoÃne-Poulenc shares.<br />
(Source: 2000 Aventis Annual <strong>Re</strong>port on Form 20-F)<br />
The following table sets out the dividends paid per Aventis Share for the three years ending December<br />
31, 2000:<br />
Dividend per<br />
Share*<br />
e<br />
2000 PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 0.50<br />
1999 PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 0.45<br />
1998 PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 0.60<br />
* Figures for 1999 and 1998 refer to former RhoÃne-Poulenc shares.<br />
(Source: 2000 Aventis Annual <strong>Re</strong>port on Form 20-F)<br />
96
Share Price Statistics<br />
The following table sets out, for the three years ending December 31, 2000, the closing price per<br />
Aventis Share on the Premier MarcheÂ, as reported by Euronext Paris, at year-end:<br />
Share Price at<br />
Year-end*<br />
e<br />
2000 PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 93.50<br />
1999 PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 57.70<br />
1998 PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 43.84<br />
* Figures for 1999 and 1998 refer to former RhoÃne-Poulenc shares.<br />
(Source: Euronext Paris S.A.)<br />
The following table sets out the highs and lows of the price per Aventis Share on the Premier MarcheÂ,<br />
as reported by Euronext Paris, for the three years ending December 31, 2000:<br />
2000 PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 93.50 47.82<br />
1999 PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 67.90 41.00<br />
1998 PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 52.88 30.20<br />
* Figures for 1999 and 1998 refer to former RhoÃne-Poulenc shares.<br />
(Source: Euronext Paris S.A.)<br />
The following table sets out the highs and lows of the price per Aventis Share on the Premier MarcheÂ,<br />
as reported by Euronext Paris, for the six months ending August 31, 2001:<br />
August 2001PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 88.65 78.80<br />
July 2001 PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 92.90 81.70<br />
June 2001 PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 94.30 85.60<br />
May 2001 PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 88.95 82.30<br />
April 2001 PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 90.90 82.35<br />
March 2001 PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 90.60 79.80<br />
(Source: Euronext Paris S.A.)<br />
Set out below is the closing price per Aventis Share on the Premier MarcheÂ, as reported by Euronext<br />
Paris, on September 12, 2001:<br />
High*<br />
e<br />
High<br />
e<br />
Low*<br />
e<br />
Low<br />
e<br />
Share Price<br />
e<br />
September 12, 2001PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 73.50<br />
(Source: Euronext Paris S.A.)<br />
Additional Information<br />
Additional information regarding the share capital, business and management of Aventis is available<br />
in the 2000, 1999 and 1998 Annual <strong>Re</strong>ports and the Interim <strong>Re</strong>port for the ®rst half of the ®nancial year<br />
2001 of Aventis (1999 and 1998: RhoÃne-Poulenc) which are incorporated by reference into this Information<br />
Memorandum.<br />
97
REGULATION OF INSURANCE COMPANIES IN GERMANY<br />
All private primary insurance companies in Germany are subject to the supervision of the Federal<br />
Insurance Supervisory Authority (Bundesaufsichtsamt fuÈr das Versicherungswesen (the ``BAV'')).<br />
Subsequent to deregulation of the insurance industry in 1994, the principal task of the BAV has been<br />
solvency control and ®nancial monitoring. Insurance companies are required to submit quarterly interim<br />
reports, audited annual accounts and statutory annual returns to the BAV. The BAV may appoint special<br />
agents to protect the interests of policyholders and issue orders relating to the insurers' conduct of business.<br />
As regards insurance companies registered in an EU member state other than Germany, some exemptions<br />
apply.<br />
The principles applicable to the supervision of insurance companies in Germany are laid down in the<br />
Insurance Supervisory Act (Versicherungsaufsichtsgesetz (the ``V<strong>AG</strong>'')) of October 13, 1983, which has<br />
been amended several times as a result of the implementation of various EU insurance directives. The V<strong>AG</strong><br />
requires, inter alia, that insurance companies maintain a certain margin of solvency (SolvabilitaÈtsspanne)<br />
and minimum guarantee fund levels (Garantiefonds).<br />
According to the V<strong>AG</strong>, life and health insurance must be transacted by companies separate from<br />
those writing non-life insurance. Composite life and non-life businesses are not allowed in Germany,<br />
although this is permitted for different companies within the same group. However, according to the EU<br />
Non-Life Insurance Directive, employers may use the same insurance company for health and other<br />
insurance. Insurance companies are not allowed to carry out non-insurance business, but primary insurers<br />
may write reinsurance.<br />
For companies which are exclusively involved in the reinsurance business and which are not organised<br />
in the form of a mutual company, these principles do not apply. They are only to a limited extent subject to<br />
the supervision of the BAV and their duties towards the BAV are largely reduced to the provision of<br />
information. Holding companies that own interests in insurance companies but do not themselves conduct<br />
regulated insurance business are not subject to the supervision of the BAV.<br />
98
TAXATION<br />
Taxation in the Federal <strong>Re</strong>public of Germany<br />
The following is a general discussion of certain German income tax consequences of the acquisition,<br />
ownership, exchange, and disposition of the Bonds, including the ownership and disposition of Shares<br />
received in exchange of the Bonds. This discussion does not purport to be a comprehensive description of<br />
all tax considerations that may be relevant to a decision to purchase the Bonds. In particular, this<br />
discussion does not consider any speci®c facts or circumstances that may apply to a particular investor.<br />
This summary is based on the law (including tax treaties) currently in force and as applied on the date of<br />
this Information Memorandum, which is subject to change, possibly with retroactive effect.<br />
Prospective investors are advised to consult their own tax advisers as to the tax consequences of the<br />
purchase, ownership, exchange, and disposition of the Bonds and the ownership and disposition of the<br />
Shares.<br />
German <strong>Re</strong>sidents<br />
Bonds<br />
Interest Payments<br />
Interest payments to Bondholders who are tax residents of Germany (i.e., persons whose residence,<br />
habitual abode, statutory seat, or place of effective management and control is located in Germany) will be<br />
subject to German personal or corporate income tax (plus a 5.5% solidarity surcharge thereon). This will<br />
also apply to interest having accrued between the last interest payment date and the date of disposition<br />
(StuÈckzinsen). Interest income will also be subject to German trade tax if the Bonds form part of the<br />
property of the Bondholder's German commercial business establishment for trade tax purposes.<br />
If the Bonds are held in custody by a bank or ®nancial services institution in Germany (a ``German<br />
Disbursing Agent''), interest withholding tax (Zinsabschlagsteuer) will be levied on interest payments at a<br />
rate of 30%, plus a 5.5% solidarity surcharge thereon (resulting in an aggregate withholding rate of<br />
31.65%). Amounts withheld will be credited as prepayments against the Bondholder's liability for German<br />
personal or corporate income tax (and the solidarity surcharge thereon) and, if in excess of such liability,<br />
refunded.<br />
German resident individuals are entitled to a standard deduction (Werbungskosten-Pauschbetrag) of<br />
DM 100 (e 51) (DM 200 (e 102) for couples ®ling jointly) in computing their income from capital<br />
investment (including interest income earned from Bonds held as private assets) as well as an exemption<br />
(Sparer-Freibetrag) of DM 3,000 (e 1,550) (DM 6,000 (e 3,100) for couples ®ling jointly) with respect to<br />
such investment income.<br />
Sale, <strong>Re</strong>demption, or Exchange of the Bonds<br />
According to a release issued by the German Federal Ministry of Finance on March 2, 2001 (BMF-<br />
Schreiben vom 2. MaÈrz 2001, IV C 1 ± S2252 ± 56/01, BStBl. 2001 I, 206), the Bonds will be treated as<br />
®nancial innovations (Finanzinnovationen) within the meaning of Section 20(1) No. 7 and (2) Sentence 1<br />
No. 4c of the German Income Tax Act (Einkommensteuergesetz). As a result, Bondholders (including<br />
individuals who have held the Bonds as private assets for more than one year) will earn taxable income<br />
upon the sale or redemption of the Bonds in an amount equal to the difference between the proceeds from<br />
the sale or redemption of the Bonds and the cost of acquisition (or adjusted book value) for the Bonds.<br />
Bondholders who exchange Bonds for Shares will earn taxable income in an amount equal to the difference<br />
between the fair market value of the Bonds at the date of the exchange and the book value of the Bonds if<br />
the Bonds were held as part of their business property. Bondholders who exchange Bonds that were held as<br />
private assets will earn taxable income in an amount equal to the difference between the fair market value<br />
of the Shares at the date of the exchange and the cost of acquisition for the Bonds.<br />
If the Bonds have been held in custody by the same German Disbursing Agent continuously from<br />
their acquisition to their sale or redemption (or to the exchange of the Bonds for Shares), interest<br />
withholding tax will be levied at an aggregate rate of 31.65% on an amount equal to the positive difference<br />
between the proceeds from the sale or redemption of the Bonds (or, if the Bonds are exchanged for Shares,<br />
the fair market value of the Shares at the date of exchange) and the cost of acquisition for the Bonds. If the<br />
Bonds have not been so held, interest withholding tax will be levied at such rate on an amount equal to 30%<br />
99
of the proceeds from the sale or redemption of the Bonds (or, if the Bonds are exchanged for Shares, the<br />
fair market value of the Shares at the date of the exchange). In the event that a Bondholder exercises its<br />
right to exchange the Bonds for Shares and, consequently, receives no cash payment, the German<br />
Disbursing Agent will be held to request payment of the amount of interest withholding tax due from such<br />
Bondholder. If the Bondholder does not pay the amount due to the German Disbursing Agent, the German<br />
Disbursing Agent will be held to notify the German tax authorities thereof. The German tax authorities will<br />
then collect the amount not withheld from the Bondholder directly.<br />
Shares<br />
Dividend Payments<br />
New German tax rules, commonly referred to as the half-income system (HalbeinkuÈnfteverfahren),<br />
have made signi®cant changes in the German tax treatment of dividend income and capital gains from the<br />
sale of shares. The new rules entered into force on January 1, 2001 and generally apply to dividends<br />
distributed by corporations in 2002 and thereafter. Exceptions may apply to dividends distributed by<br />
corporations with a ®scal year that deviates from the calendar year.<br />
According to the new rules, only half of the dividends distributed to individual Shareholders who are<br />
tax residents of Germany will be subject to German personal income tax. Correspondingly, only half of the<br />
expenses related to the dividend income will be deductible for income tax purposes. Dividends will be<br />
subject to German trade tax under the same rules if the Shares form part of the property of the<br />
Shareholder's German commercial business establishment for trade tax purposes.<br />
It is uncertain whether individual shareholders resident in Germany who hold shares in a corporation<br />
residing in France will be granted the avoir ®scal (see under ``French Taxation'' below). Pursuant to a joint<br />
statement made by German and French tax authorities in the course of a mutual agreement procedure and<br />
published by the German Federal Ministry of Finance on July 13, 2001, the competent authorities are<br />
currently negotiating to abolish the transfer of the avoir ®scal to individual shareholders resident in<br />
Germany.<br />
Dividends distributed to corporate Shareholders resident in Germany by a corporation residing in<br />
Germany will be exempt from German corporate income and trade tax. Expenses directly economically<br />
related to the shareholding will only be deductible to the extent they exceed the amount of dividends<br />
distributed.<br />
In case of shares in a corporation residing in France, only 95% of dividends distributed to corporate<br />
Shareholders resident in Germany will be exempt from German corporate income and trade tax. The<br />
deductibility of expenses related to the shareholding will not be limited. Pursuant to the joint statement<br />
made by the German and French tax authorities in the course of the mutual agreement procedure and<br />
published by the German Federal Ministry of Finance on July 13, 2001, corporate shareholders resident in<br />
Germany that hold less than 10% of the shares in a corporation residing in France will generally not be<br />
entitled to the avoir ®scal.<br />
Dividend payments by a corporation residing in Germany will be subject to German withholding tax<br />
at an aggregate amount of 21.1% (consisting of a 20% withholding tax and a 1.1% solidarity surcharge).<br />
This withholding tax will be levied on the full amount of the dividend notwithstanding the partial or full<br />
exemption of dividends from personal or corporate income tax. Amounts withheld will be fully creditable<br />
against the Shareholder's personal or corporate income tax liability (and the solidarity surcharge thereon)<br />
and, if in excess of such liability, refunded.<br />
This partial or full tax-exemption for dividends will not be available to (i) banks or ®nancial services<br />
institutions for which the Shares form part of their operating assets (Handelsbuch) or (ii) ®nancial<br />
institutions that acquired the Shares in order to realise a short-term trading gain.<br />
German resident individuals are entitled to a standard deduction (Werbungskosten-Pauschbetrag) of<br />
DM 100 (e 51) (DM 200 (e 102) for couples ®ling jointly) in computing their income from capital<br />
investment (including dividend income earned from Shares held as private assets) as well as an exemption<br />
(Sparer-Freibetrag) of DM 3,000 (e 1,550) (DM 6,000 (e 3,100) for couples ®ling jointly) with respect to<br />
such investment income.<br />
100
Sale of Shares Acquired in Exchange of the Bonds<br />
Bondholders who acquire Shares in exchange of the Bonds that were held as part of their business<br />
property will be treated as having acquired the Shares at the fair market value of the Bonds at the date of<br />
the exchange. Under the new rules, only half of the gain realised on a subsequent sale of the Shares will be<br />
subject to German personal income tax (plus the solidarity surcharge thereon) and, if the Shares form part<br />
of the property of a German commercial business establishment, also to German trade tax. Such gain will<br />
be entirely tax-exempt if realised by a corporation. However, this partial or full tax-exemption for gains<br />
from the sale of the Shares will not be available to (i) banks or ®nancial services institutions for which the<br />
Shares form part of their operating assets (Handelsbuch) or (ii) ®nancial institutions that acquired the<br />
Shares in order to realise a short-term trading gain.<br />
Individuals who realise a gain on a subsequent sale of the Shares will generally not be subject to<br />
German taxation if the Shares were held as private assets. However, this does not apply to Shareholders<br />
who (i) sell their Shares not more than one year after the exchange, except if the aggregate amount of gain<br />
earned during the calendar year from sales of privately-held assets having occurred within the applicable<br />
short-term holding period is less than DM 1,000 (e 512), or (ii) hold at the time of the sale, or at any time<br />
during the ®ve-year period preceding such sale, 1% or more of the stated capital of the company whose<br />
Shares are being sold. Under the new rules, half of the gain realised by such Shareholders will be subject to<br />
German personal income tax (plus the solidarity surcharge thereon). It is uncertain whether, in order to<br />
determine the amount of gain realised, the Shares will be treated as having been acquired at their fair<br />
market value on the date of the exchange or at the fair market value of the Bonds on the date of the<br />
exchange.<br />
German Non-<strong>Re</strong>sidents<br />
Bonds<br />
Income from the Bonds is Connected with Certain Activities in Germany<br />
Interest paid to, and gains derived from the sale, redemption or exchange of the Bonds by,<br />
Bondholders who are not residents of Germany, but to whom income from the Bonds constitutes income<br />
connected with certain activities conducted in Germany, will be subject to German personal or corporate<br />
income tax, plus the solidarity surcharge thereon, (and, if the Bonds form part of the property of a German<br />
commercial business establishment for German trade tax purposes, also subject to German trade tax) in the<br />
manner described above under the heading ``German <strong>Re</strong>sidents''. This will be the case if the Bonds (i) form<br />
part of the business property of a permanent establishment or ®xed base maintained in Germany, (ii) are<br />
held in connection with the letting or leasing of immovable or intangible property or a group of assets<br />
located in Germany, (iii) are held in connection with the provision of services attributable to a ®xed base in<br />
Germany, or (iv) are held in connection with agriculture or forestry for which a permanent establishment in<br />
Germany is maintained. In such case, interest payments and amounts paid to the Bondholders on the sale<br />
or redemption of the Bonds (or the delivery of the Shares in exchange of the Bonds) will also be subject to<br />
German interest withholding tax (Zinsabschlagsteuer) if the Bonds are held in custody by a German<br />
Disbursing Agent.<br />
Income from the Bonds is not Connected with Certain Activities in Germany<br />
Bondholders who are not residents of Germany and who do not hold the Bonds in connection with<br />
any activity performed in Germany will generally not be subject to German personal or corporate income<br />
tax (or trade tax) with respect to income earned on the Bonds. An exception may apply to holders of Bonds<br />
who hold at the time of the sale or redemption of the Bonds (or the exchange of the Bonds for Shares), or<br />
who have held at any time during the ®ve-year period preceding such disposition, directly or indirectly 1%<br />
or more of the stated capital of the Shares in the company into whose Shares the Bonds can be exchanged,<br />
if this company resides in Germany (German tax law is unclear as to whether, for purposes of this 1%ownership<br />
test, only the number of Shares a Bondholder actually owns or has owned must be taken into<br />
account or whether the Bondholder must also aggregate the number of Shares into which such Bondholder<br />
could have exchanged the Bonds such Bondholder holds or has held). Bondholders who believe that they<br />
may meet this 1%-threshold should consult their own tax advisers with regard to the application of these<br />
rules. Payments on the Bonds (or the delivery of the Shares in exchange of the Bonds) will not be subject to<br />
German interest withholding tax.<br />
101
Shares<br />
Dividend Payments<br />
The new half-income system will apply to dividends distributed to holders of Shares who are not<br />
residents of Germany in the manner described above under the heading ``German <strong>Re</strong>sidents ± Shares'' for<br />
purposes of German personal and corporate income tax, if the Shares are connected with certain activities<br />
in Germany in the manner described above under the heading ``Bonds''. Dividends are subject to German<br />
trade tax under the same rules if the Shares form part of the property of a German commercial business<br />
establishment.<br />
The full amount of the dividend distributed by a corporation residing in Germany to an individual or<br />
corporate non-resident will be subject to German withholding tax at an aggregate rate of 21.1% (20%<br />
withholding tax plus 1.1% solidarity surcharge thereon). If the Shares are connected with certain activities<br />
in Germany in the manner described above under the heading ``German Non-<strong>Re</strong>sidents ± Bonds'', the<br />
amount withheld will be fully creditable against the shareholder's liability for German personal or<br />
corporate income tax (and the solidarity surcharge thereon) and, if in excess of such liability, refunded.<br />
The withholding tax rate may be reduced under an applicable income tax treaty (e.g., the income tax<br />
treaty between the United States and Germany (the ``United States-Germany Tax Treaty'')) if the Shares<br />
are not connected with certain activities in Germany in the manner described above under the heading<br />
``German Non-<strong>Re</strong>sidents ± Bonds''. The reduction is granted by way of a refund from the German tax<br />
authorities in an amount equal to the difference between the amount withheld at the German statutory rate<br />
(plus the solidarity surcharge thereon) and the amount computed under the applicable treaty rate. Holders<br />
of Shares should consult their own tax advisers with respect to the procedures for claiming treaty bene®ts in<br />
respect of the Shares.<br />
Sale of Shares Acquired in Exchange of the Bonds<br />
Gains realised by a non-resident from the sale of Shares acquired in exchange of the Bonds will be<br />
subject to German personal or corporate income tax (and possibly trade tax) in the manner described<br />
above under the heading ``German <strong>Re</strong>sidents ± Shares'' if the Shares (i) form part of the business property<br />
of a permanent establishment or ®xed base maintained in Germany, (ii) are held in connection with the<br />
provision of services attributable to a ®xed base in Germany, or (iii) are held in connection with agriculture<br />
and forestry for which a permanent establishment in Germany is maintained. Non-residents who do not<br />
hold their Shares in connection with any activity performed in Germany will generally not be subject to<br />
German taxation with respect to gains earned on the sale of the Shares. As mentioned above, an exception<br />
may apply to holders of Shares who hold at the time of the sale, or who have held at any time during the<br />
®ve-year period preceding such sale, directly or indirectly 1% or more of the stated capital of the Shares in a<br />
corporation residing in Germany.<br />
Inheritance or Gift Tax<br />
The gratuitous transfer of the Bonds or the Shares by a holder as a gift or by reason of death is subject<br />
to German gift or inheritance tax, based on the market value of such Bonds or Shares at the time of the<br />
transfer, if the holder of the Bonds or Shares or the recipient is a resident, or deemed to be a resident, of<br />
Germany under German gift and inheritance tax law. If neither the holder of the Bonds or Shares nor the<br />
recipient is a resident, or deemed to be a resident, of Germany at the time of the transfer, no German gift or<br />
inheritance tax is levied unless the Bonds or Shares form part of the business property of a permanent<br />
establishment or a ®xed base maintained by the holder of the Bonds or Shares in Germany or, in case of a<br />
transfer of Shares, the holder of the Shares at the time of the transfer owns, directly or indirectly, 10% or<br />
more of the capital of the company in which the Shares are held and the company resides in Germany. In<br />
the latter case, however, Germany may have waived its right to impose gift or inheritance tax under an<br />
applicable inheritance and gift tax treaty (e.g., the United States-Germany inheritance and gift tax treaty).<br />
Exceptions to these rules may apply to certain individuals having expatriated from Germany.<br />
Other Taxes<br />
No stamp, issue, registration, turnover, transfer or similar taxes or duties will be payable in Germany<br />
in connection with the issuance, delivery, or execution of the Bonds or Shares. Net wealth tax<br />
(VermoÈgensteuer) is currently not levied in Germany.<br />
102
French Taxation<br />
The following discussion generally summarises the principal French tax consequences of the<br />
ownership and disposition of Aventis Shares that are received upon exchange of the Aventis Bonds.<br />
This discussion is intended only as a descriptive summary and does not purport to be a complete<br />
analysis or listing of all potential tax effects of the ownership or disposition of the Aventis Shares. It is<br />
based on laws, directives and treaties in force as of the date hereof, all of which are subject to change,<br />
possibly with retroactive effect, or different interpretation.<br />
The following summary does not discuss the treatment of Aventis Shares that are held by a resident of<br />
France (except for purposes of illustration) or in connection with a permanent establishment or ®xed base<br />
through which a holder of Aventis Shares carries on business or performs personal services in France, or by<br />
a person that owns, directly or indirectly, 5% or more of the stock of Aventis.<br />
Prospective investors are advised to consult their own tax advisers as to the potential tax effects of<br />
owning and disposing of the Aventis Shares in the light of their particular situation.<br />
Taxation of Dividends<br />
French residents are entitled to a tax credit, known as the avoir ®scal, in respect of dividends they<br />
receive from French companies. Individuals are entitled to an avoir ®scal equal to 50% of the dividend<br />
whereas corporate investors are generally entitled to an avoir ®scal equal to 15% of the dividend for<br />
dividends paid in 2001 and after. Dividends paid to non-residents normally are subject to a 25% French<br />
withholding tax and are not eligible for the bene®t of the avoir ®scal. However, non-resident holders of<br />
Aventis Shares that comply with the requirements and procedures for claiming bene®ts under an applicable<br />
income tax treaty (e.g., the income tax treaty between the United States and France (the ``United States-<br />
France Tax Treaty'')) may be subject to a reduced rate of withholding tax (generally 15%), and may be<br />
entitled to bene®t from a refund of the avoir ®scal, as described below. If a non-resident holder of Aventis<br />
Shares establishes its entitlement to treaty bene®ts prior to the payment of a dividend, then French tax<br />
generally will be withheld at the reduced rate provided under the applicable treaty.<br />
Dividends paid out of pro®ts that have not been taxed at the ordinary corporate income tax rate, or<br />
were earned and taxed more than ®ve years before the distribution, are subject to an equalisation tax called<br />
the preÂcompte, which is payable by the distributing corporation. The preÂcompte generally is equal to onehalf<br />
of the amount of the dividend paid to the shareholder prior to deduction of withholding tax. Corporate<br />
investors entitled under a tax treaty to a refund of the avoir ®scal at a rate of 15% (i.e., for dividends paid in<br />
2001 or after) may claim an additional payment equal to 70% of the preÂcompte actually paid in cash by the<br />
distributing corporation, less the applicable withholding tax. This additional payment is considered an<br />
increase to the avoir ®scal. Individual investors entitled under a tax treaty to a refund of the avoir ®scal at a<br />
rate of 50% are not entitled to an additional payment in respect of the preÂcompte.<br />
When a tax treaty does not provide for a refund of the avoir ®scal, or when a non-resident investor is<br />
not entitled to such a refund but is otherwise entitled to the bene®ts of the tax treaty, then such qualifying<br />
investor may obtain from the French tax authorities a payment equal to the preÂcompte actually paid in cash<br />
by the distributing corporation, less the applicable withholding tax.<br />
Holders of Aventis Shares should consult their own tax advisers with respect to the requirements and<br />
procedures for claiming treaty bene®ts and receiving avoir ®scal and preÂcompte payments in respect of such<br />
shares.<br />
Taxation on Disposition of the Aventis Shares<br />
Shareholders that are not residents of France for tax purposes, do not hold Aventis Shares in<br />
connection with the conduct of a business or profession in France, and have held not more than 25% of the<br />
dividend rights (droits aux beÂne®ces sociaux) of the French issuing company, directly or indirectly, at any<br />
time during the preceding ®ve years, are not subject to tax in France on the disposition of the Aventis<br />
Shares.<br />
A 1% registration duty (subject to a maximum of e 3,049 per transfer) applies to certain transfers of<br />
shares in French companies. The duty does not apply to transfers of shares in listed companies that are not<br />
evidenced by a written agreement, or if any such agreement is executed outside France.<br />
103
Estate and Gift Tax<br />
France imposes estate and gift tax on shares of a French company that are acquired by inheritance or<br />
gift. The tax applies without regard to the residence of the transferor. However, France has entered into<br />
estate and gift tax treaties with a number of countries pursuant to which, assuming certain conditions are<br />
met, residents of the treaty country may be exempted from such tax or obtain a tax credit.<br />
Under the estate and gift tax treaty between the United States and France, a transfer of Aventis<br />
Shares by gift or by reason of the death of a U.S. holder entitled to bene®ts under that treaty will not be<br />
subject to French gift or inheritance tax, if the donor or decedent was not domiciled in France at the time of<br />
the transfer, and the Aventis Shares were not used or held for use in the conduct of a business or profession<br />
through a permanent establishment or ®xed base in France.<br />
At present, there is no applicable estate and gift tax treaty between Germany and France. Prospective<br />
investors should consult their own tax advisers as to the tax consequences of the transfer of the Aventis<br />
Shares by gift or by reason of death.<br />
Taxation of German Investors<br />
The following is a summary of the principal French and German tax consequences of the ownership<br />
and disposition of the Aventis Shares for a Shareholder that is a resident of Germany for purposes of the<br />
income tax treaty between Germany and France (the ``Germany-France Tax Treaty'') and is fully eligible<br />
for bene®ts under the Germany-France Tax Treaty (a ``German holder''). This summary does not discuss<br />
the treatment of Aventis Shares that are held in connection with a permanent establishment or ®xed base<br />
through which a Shareholder carries on business or performs personal services in France.<br />
In general, dividends paid to a German holder are subject to French withholding tax at the reduced<br />
rate of 15% provided by the Germany-France Tax Treaty. In addition, dividends received by an individual<br />
German holder give such holder a right to payment of the avoir ®scal to which a resident of France would<br />
be entitled (see above).<br />
Pursuant to a joint statement made by German and French tax authorities in the course of a mutual<br />
agreement procedure and published by the German Federal Ministry of Finance on July 13, 2001, the<br />
competent authorities are currently negotiating to abolish the transfer of the avoir ®scal to individual<br />
shareholders resident in Germany. Therefore, it is uncertain whether individual shareholders resident in<br />
Germany who hold shares in a corporation residing in France will be granted the avoir ®scal. It is also<br />
unclear, as of which taxable period the abolishment of the transfer of the avoir ®scal will apply.<br />
If an individual German holder complies with the requirements and procedures for claiming treaty<br />
bene®ts before a dividend is paid and is entitled to the avoir ®scal, 100% of the dividend will be paid to the<br />
German holder, free of French withholding tax. Such individual German holder must declare the avoir<br />
®scal, which is equal to 50% of the dividend, as an additional dividend in its tax return and offset the<br />
amount of such avoir ®scal against its income tax liability in order to determine the actual income tax<br />
payable. If the amount of the avoir ®scal is greater than the amount of income tax payable, the German<br />
holder will be entitled to a refund of the excess from the German tax authorities.<br />
If a corporate German holder complies with the requirements and procedures for claiming treaty<br />
bene®ts before a dividend is paid, the dividend will be paid after deduction of French withholding tax at the<br />
reduced rate of 15% provided for by the Germany-France Tax Treaty. Pursuant to the joint statement<br />
made by the German and French tax authorities in the course of the mutual agreement procedure and<br />
published by the German Federal Ministry of Finance on July 13, 2001, corporate shareholders resident in<br />
Germany are not entitled to the avoir ®scal any more. Such corporate Shareholders may obtain from the<br />
French tax authorities a refund of the preÂcompte actually paid in cash by the distributing company less the<br />
15% withholding tax.<br />
If a German holder does not comply with the requirements and procedures for claiming treaty<br />
bene®ts before a dividend is paid, French tax will be withheld at the 25% rate, and an application for refund<br />
must be ®led with the French tax authorities. Such refund can take place only if the application is made<br />
before the end of the fourth year following the year the dividend is paid.<br />
104
German holders of Aventis Shares should consult their own tax advisers with respect to the<br />
requirements and procedures for claiming treaty bene®ts and receiving avoir ®scal and preÂcompte payments<br />
in respect of such shares, including the requirements and procedures for claiming refunds of withholding<br />
tax.<br />
Proposed EU Savings Tax Directive<br />
On July 18, 2001, the EU Commission published a proposal for a new directive regarding the taxation<br />
of savings income. It is proposed that each EU member state under its domestic law requires disbursing<br />
agents (within the meaning of the directive established within its territory to provide to the tax authorities<br />
of another member state details of the payment of interest or other similar income such as discount or<br />
premium to an individual resident in that other member state. However, for a transitional period of seven<br />
years Austria, Belgium and Luxembourg may opt instead to withhold tax from such payments. During the<br />
®rst three years after the directive has come into force, tax will have to be withheld by these member states<br />
at a rate of 15% and thereafter of 20%. During the transitional period, the directive will not apply to Bonds<br />
that have been issued in an increase of the nominal amount of Bonds prior to 1 March 2002 if the original<br />
issue has taken place or the prospectus for the original issue has been approved before 1 March 2001. The<br />
proposed directive is to be implemented by the member states by 1 January 2004. However, since the<br />
implementation of the proposal is subject to certain non EU member states and associated territories and<br />
dependencies of EU member states also agreeing to supply information or imposing a withholding tax it is<br />
currently not possible to predict whether, when, or in what form the proposal will ultimately be adopted.<br />
United States Federal Income Taxation<br />
Bonds Exchangeable for E.ON Shares and E.ON Shares<br />
The following is a summary of the material German and U.S. federal income tax consequences for<br />
U.S. holders of the acquisition, ownership, and disposition of the Bonds Exchangeable for E.ON Shares<br />
and the E.ON Shares for which the Bonds Exchangeable for E.ON Shares may in certain circumstances be<br />
exchanged. For purposes of this discussion, a U.S. holder is a bene®cial owner of a Bond Exchangeable for<br />
E.ON Shares or, with respect to ``±Dividends on the E.ON Shares'' and ``±Sale or other Disposition of the<br />
E.ON Shares'', an E.ON Share (including dividends paid with respect thereto), that is a resident of the<br />
United States for purposes of the United States-Germany Tax Treaty and is fully eligible for bene®ts under<br />
the United States-Germany Tax Treaty. A holder will generally be entitled to bene®ts under the United<br />
States-Germany Tax Treaty if such holder is:<br />
. an individual resident of the United States, a U.S. corporation, or a partnership, estate or trust<br />
to the extent its income is subject to taxation in the United States in its hands or in the hands of<br />
its partners or bene®ciaries;<br />
. not also a resident of Germany for German tax purposes; and<br />
. not subject to an anti-treaty shopping article that applies under limited circumstances.<br />
This summary does not purport to be a comprehensive description of all of the tax considerations that<br />
may be relevant to any particular investor, and does not discuss tax considerations that arise from rules of<br />
general application or that are generally assumed to be known by investors. In particular, this summary<br />
deals only with (i) Bonds Exchangeable for E.ON Shares held as capital assets by U.S. holders who<br />
purchase Bonds Exchangeable for E.ON Shares at their issue price in the initial offering, and (ii) E.ON<br />
Shares received in exchange for Bonds Exchangeable for E.ON Shares and held as capital assets. This<br />
summary does not address the tax treatment of holders that are subject to special rules, such as banks,<br />
insurance companies, dealers in securities or currencies, persons that elect mark-to-market treatment,<br />
persons holding Bonds Exchangeable for E.ON Shares or E.ON Shares as a position in a synthetic security,<br />
straddle, or conversion transaction, persons that own, directly or indirectly, 10 percent or more of E.ON's<br />
voting stock, and persons whose functional currency is not the U.S. dollar.<br />
This summary is based on laws, treaties, regulatory interpretations, and judicial decisions in effect on<br />
the date hereof, all of which are subject to change, possibly with retroactive effect.<br />
Holders should consult their own tax advisers regarding the tax consequences of the acquisition,<br />
ownership, and disposition of the Bonds Exchangeable for E.ON Shares and the E.ON Shares in the light<br />
of their particular circumstances, including the effect of any state, local, or other national tax laws.<br />
105
The United States-Germany Tax Treaty bene®ts discussed below generally are not available to U.S.<br />
taxpayers who hold E.ON Shares in connection with the conduct of business through a permanent<br />
establishment, or the performance of personal services through a ®xed base, in Germany. This summary<br />
does not discuss the treatment of such holders.<br />
Bonds Exchangeable for E.ON Shares<br />
Interest on the Bonds Exchangeable for E.ON Shares<br />
Payments of stated interest on the Bonds Exchangeable for E.ON Shares will generally be subject to<br />
U.S. federal income taxation as ordinary income at the time such payments accrue or are received, in<br />
accordance with a U.S. holder's method of accounting for tax purposes.<br />
If a U.S. holder uses the cash method of tax accounting and receives payments of stated interest in<br />
euro, the amount of interest income the holder will realise generally will be the U.S. dollar value of the euro<br />
payment based on the exchange rate in effect on the date of receipt, regardless of whether the payment is in<br />
fact converted into U.S. dollars.<br />
If a U.S. holder uses the accrual method of tax accounting, the amount of interest income the holder<br />
will realise in respect of stated interest on the Bonds Exchangeable for E.ON Shares will be based on the<br />
average exchange rate in effect during the interest accrual period (or, with respect to an interest accrual<br />
period that spans two taxable years, the partial period within the taxable year). Alternatively, an accrualbasis<br />
U.S. holder may elect to translate all stated interest income on the Bonds Exchangeable for E.ON<br />
Shares at the spot rate on the last day of the accrual period (or the last day of the taxable year, in the case of<br />
an accrual period that spans more than one taxable year), or on the date that the interest payment is<br />
received if that date is within ®ve business days of the end of the accrual period or taxable year. Such an<br />
election must be applied consistently to all debt instruments from year to year and cannot be changed<br />
without the consent of the Internal <strong>Re</strong>venue Service. If a U.S. holder uses the accrual method of tax<br />
accounting, the holder will recognise foreign currency gain or loss on the receipt of a payment of stated<br />
interest in euro if the exchange rate in effect on the date the payment is received differs from the rate<br />
applicable to a previous accrual of that interest income. This foreign currency gain or loss will be treated as<br />
ordinary income or loss, and generally will not be treated as an adjustment to interest income received on<br />
the Bonds Exchangeable for E.ON Shares.<br />
Sale, Exchange, or other Disposition of the Bonds Exchangeable for E.ON Shares<br />
A U.S. holder's initial tax basis in a Bond Exchangeable for E.ON Shares generally will equal the<br />
U.S. dollar value of the amount in euro that the holder paid for the Bond Exchangeable for E.ON Shares,<br />
determined on the date of purchase.<br />
A U.S. holder will generally recognise gain or loss on a sale, exchange, or other disposition of the<br />
Bonds Exchangeable for E.ON Shares in an amount equal to the difference between the amount realised on<br />
such sale, exchange, or other disposition (less any accrued stated interest, which will be taxable as ordinary<br />
interest income) and such holder's adjusted tax basis in the Bonds Exchangeable for E.ON Shares. If a U.S.<br />
holder receives foreign currency in respect of a sale, exchange, or other disposition of a Bond Exchangeable<br />
for E.ON Shares, the amount realised will be the U.S. dollar equivalent of the amount received, calculated<br />
at the exchange rate in effect at the time of the sale, exchange, or disposition. Except as discussed below<br />
with respect to foreign currency gain or loss, gain or loss recognised by a U.S. holder on a sale, exchange, or<br />
other disposition of a Bond Exchangeable for E.ON Shares generally will be capital gain or loss and will be<br />
long-term capital gain or loss if the holding period for the Bond Exchangeable for E.ON Shares is more<br />
than one year on the date of disposition. A U.S. holder's ability to offset capital losses against ordinary<br />
income is limited. Long-term capital gain recognised by an individual U.S. holder generally is subject to<br />
taxation at a maximum rate of 20%.<br />
Notwithstanding the foregoing, gain or loss recognised by a U.S. holder on a sale, exchange, or other<br />
disposition of a Bond Exchangeable for E.ON Shares generally will be treated as ordinary income or loss to<br />
the extent that the gain or loss is attributable to changes in exchange rates during the period in which the<br />
Bond Exchangeable for E.ON Shares was held. This foreign currency gain or loss will not be treated as an<br />
adjustment to interest income received on the Bond Exchangeable for E.ON Shares.<br />
106
There are no clear rules that govern the treatment of debt securities that are denominated in foreign<br />
currencies and that provide for payments that are contingent as to amount. Because the value of the E.ON<br />
Shares is not ®xed, the treatment of a U.S. holder's right to exchange Bonds Exchangeable for E.ON Shares<br />
for E.ON Shares is not entirely free from doubt. Nonetheless, because there are no rules that require that<br />
such contingent payments be taken into account before they become ®xed, the exchange of a Bond<br />
Exchangeable for E.ON Shares for E.ON Shares pursuant to the exchange right incorporated in the terms<br />
of the Bonds Exchangeable for E.ON Shares should generally be treated the same as an exchange for cash<br />
or other property. The amount realised on such an exchange for E.ON Shares would be the fair market<br />
value in U.S. dollars of the E.ON Shares received in the exchange, determined at the time of the exchange.<br />
It is possible, however, that the Internal <strong>Re</strong>venue Service would take a different view. In particular, the<br />
Internal <strong>Re</strong>venue Service has indicated that it is considering adopting rules comparable to those applicable<br />
to non-foreign currency debt securities that provide for contingent payments, which could affect the timing<br />
and the character of income recognised by a U.S. holder with respect to the Bonds Exchangeable for E.ON<br />
Shares. U.S. holders should consult their own tax advisers regarding the treatment of the exchange right<br />
incorporated in the terms of the Bonds Exchangeable for E.ON Shares.<br />
E.ON Shares<br />
Dividends on the E.ON Shares<br />
As discussed in more detail under ``±Taxation in the Federal <strong>Re</strong>public of Germany,'' above, new<br />
German tax rules that entered into force on January 1, 2001 have made signi®cant changes in the German<br />
tax treatment of dividend income. For dividends subject to the new rules, German withholding tax applies<br />
at an aggregate rate of 21.1% (consisting of a 20% withholding tax and a 1.1% solidarity surcharge). Under<br />
the United States-Germany Tax Treaty, a U.S. holder will be entitled to claim a refund to the extent the<br />
amount withheld exceeds the 15% rate provided under the treaty. Accordingly, a U.S. holder who complies<br />
with procedures for claiming treaty bene®ts will receive total cash payments of 85 in respect of a dividend of<br />
100, and will incur a net German withholding tax cost of 15. For U.S. tax purposes, the U.S. holder will be<br />
deemed to have received dividend income of 100.<br />
U.S. holders of E.ON Shares should consult their own tax advisers with respect to the procedures for<br />
claiming treaty bene®ts in respect of such shares.<br />
The gross amount of dividends that a U.S. holder receives (prior to the deduction of German<br />
withholding tax) generally will be subject to U.S. federal income taxation as foreign source dividend<br />
income. German withholding tax at the 15% rate provided under the United States-Germany Tax Treaty<br />
will be treated as a foreign income tax that, subject to generally applicable limitations under U.S. tax law, is<br />
eligible for credit against a U.S. holder's U.S. federal income tax liability or, at the holder's election, may be<br />
deducted in computing taxable income. A U.S. holder will not be able to claim credits for German taxes<br />
that would have been refunded if the holder had ®led a claim for a refund. Foreign tax credits will not be<br />
allowed for withholding taxes imposed in respect of certain short-term or hedged positions in securities or<br />
in respect of arrangements in which a U.S. holder's expected economic pro®t is insubstantial. U.S. holders<br />
should consult their own tax advisers concerning the implications of these rules in the light of their<br />
particular circumstances.<br />
Dividends paid in Deutsche Marks or euro will be included in the income of a U.S. holder in a U.S.<br />
dollar amount calculated by reference to the exchange rate in effect on the date of receipt by the holder,<br />
regardless of whether the payment is in fact converted into U.S. dollars. If such a dividend is converted into<br />
U.S. dollars on the date of receipt, a U.S. holder generally should not be required to recognise foreign<br />
currency gain or loss in respect of the dividend income. A U.S. holder may be required to recognise foreign<br />
currency gain or loss on the receipt of a refund in respect of German withholding tax to the extent the U.S.<br />
dollar value of the refund differs from the U.S. dollar equivalent of that amount on the date of receipt of<br />
the underlying dividend.<br />
Sale or other Disposition of the E.ON Shares<br />
For U.S. federal income tax purposes, gain or loss realised by a U.S. holder on a sale or other<br />
disposition of E.ON Shares will be capital gain or loss, and will be long-term capital gain or loss if the<br />
E.ON Shares were held for more than one year. A U.S. holder's initial tax basis in E.ON Shares acquired<br />
on an exchange of Bonds Exchangeable for E.ON Shares will generally be the fair market value in U.S.<br />
dollars of the E.ON Shares received in the exchange, determined at the time of the exchange, and a U.S.<br />
107
holder's holding period for E.ON Shares acquired on an exchange of Bonds Exchangeable for E.ON Shares<br />
will generally run from the time of the exchange. A U.S. holder's ability to offset capital losses against<br />
ordinary income is limited. Long-term capital gain recognised by an individual U.S. holder generally is<br />
subject to taxation at a maximum rate of 20%.<br />
Bonds Exchangeable for Aventis Shares and Aventis Shares<br />
The following is a summary of the material French and U.S. federal income tax consequences for U.S.<br />
holders of the acquisition, ownership, and disposition of the Bonds Exchangeable for Aventis Shares and<br />
the Aventis Shares for which the Bonds Exchangeable for Aventis Shares may in certain circumstances be<br />
exchanged. For purposes of this discussion, a U.S. holder is a bene®cial owner of a Bond Exchangeable for<br />
Aventis Shares or, with respect to ``±Dividends on the Aventis Shares'' and ``±Sale or other Disposition of<br />
the Aventis Shares'', an Aventis Share (including dividends paid with respect thereto), that is a resident of<br />
the United States for purposes of the United States-France Tax Treaty and is fully eligible for bene®ts<br />
under the United States-France Tax Treaty. A holder will generally be entitled to bene®ts under the United<br />
States-France Tax Treaty if such holder is:<br />
. an individual resident of the United States, a U.S. corporation, or a partnership, estate or trust<br />
to the extent its income is subject to taxation in the United States in its hands or in the hands of<br />
its partners or bene®ciaries;<br />
. not also a resident of France for French tax purposes; and<br />
. not subject to an anti-treaty shopping article that applies under limited circumstances.<br />
Special rules apply to pension funds and certain other tax-exempt investors.<br />
This summary does not purport to be a comprehensive description of all of the tax considerations that<br />
may be relevant to any particular investor, and does not discuss tax considerations that arise from rules of<br />
general application or that are generally assumed to be known by investors. In particular, this summary<br />
deals only with (i) Bonds Exchangeable for Aventis Shares held as capital assets by U.S. holders who<br />
purchase Bonds Exchangeable for Aventis Shares at their issue price in the initial offering, and (ii) Aventis<br />
Shares received in exchange for Bonds Exchangeable for Aventis Shares and held as capital assets. This<br />
summary does not address the tax treatment of holders that are subject to special rules, such as banks,<br />
insurance companies, dealers in securities or currencies, persons that elect mark-to-market treatment,<br />
persons holding Bonds Exchangeable for Aventis Shares or Aventis Shares as a position in a synthetic<br />
security, straddle, or conversion transaction, persons that own, directly or indirectly, 5 percent or more of<br />
Aventis' voting stock, and persons whose functional currency is not the U.S. dollar.<br />
This summary is based on laws, treaties, regulatory interpretations, and judicial decisions in effect on<br />
the date hereof, all of which are subject to change, possibly with retroactive effect.<br />
Holders should consult their own tax advisers regarding the tax consequences of the acquisition,<br />
ownership, and disposition of the Bonds Exchangeable for Aventis Shares and the Aventis Shares in the<br />
light of their particular circumstances, including the effect of any state, local, or other national tax laws.<br />
The United States-France Tax Treaty bene®ts discussed below generally are not available to U.S.<br />
taxpayers who hold Aventis Shares in connection with the conduct of business through a permanent<br />
establishment, or the performance of personal services through a ®xed base, in France. This summary does<br />
not discuss the treatment of such holders.<br />
Bonds Exchangeable for Aventis Shares<br />
Interest on the Bonds Exchangeable for Aventis Shares<br />
Payments of stated interest on the Bonds Exchangeable for Aventis Shares will generally be subject to<br />
U.S. federal income taxation as ordinary income at the time such payments accrue or are received, in<br />
accordance with a U.S. holder's method of accounting for tax purposes.<br />
If a U.S. holder uses the cash method of tax accounting and receives payments of stated interest in<br />
euro, the amount of interest income the holder will realise generally will be the U.S. dollar value of the euro<br />
payment based on the exchange rate in effect on the date of receipt, regardless of whether the payment is in<br />
fact converted into U.S. dollars.<br />
108
If a U.S. holder uses the accrual method of tax accounting, the amount of interest income the holder<br />
will realise in respect of stated interest on the Bonds Exchangeable for Aventis Shares will be based on the<br />
average exchange rate in effect during the interest accrual period (or, with respect to an interest accrual<br />
period that spans two taxable years, the partial period within the taxable year). Alternatively, an accrualbasis<br />
U.S. holder may elect to translate all stated interest income on the Bonds Exchangeable for Aventis<br />
Shares at the spot rate on the last day of the accrual period (or the last day of the taxable year, in the case of<br />
an accrual period that spans more than one taxable year), or on the date that the interest payment is<br />
received if that date is within ®ve business days of the end of the accrual period or taxable year. Such an<br />
election must be applied consistently to all debt instruments from year to year and cannot be changed<br />
without the consent of the Internal <strong>Re</strong>venue Service. If a U.S. holder uses the accrual method of tax<br />
accounting, the holder will recognise foreign currency gain or loss on the receipt of a payment of stated<br />
interest in euro if the exchange rate in effect on the date the payment is received differs from the rate<br />
applicable to a previous accrual of that interest income. This foreign currency gain or loss will be treated as<br />
ordinary income or loss, and generally will not be treated as an adjustment to interest income received on<br />
the Bonds Exchangeable for Aventis Shares.<br />
Sale, Exchange, or other Disposition of the Bonds Exchangeable for Aventis Shares<br />
A U.S. holder's initial tax basis in a Bond Exchangeable for Aventis Shares generally will equal the<br />
U.S. dollar value of the amount in euro that the holder paid for the Bond Exchangeable for Aventis Shares,<br />
determined on the date of purchase.<br />
A U.S. holder will generally recognise gain or loss on a sale, exchange, or other disposition of the<br />
Bonds Exchangeable for Aventis Shares in an amount equal to the difference between the amount realised<br />
on such sale, exchange, or other disposition (less any accrued stated interest, which will be taxable as<br />
ordinary interest income) and such holder's adjusted tax basis in the Bonds Exchangeable for Aventis<br />
Shares. If a U.S. holder receives foreign currency in respect of a sale, exchange, or other disposition of a<br />
Bond Exchangeable for Aventis Shares, the amount realised will be the U.S. dollar equivalent of the<br />
amount received, calculated at the exchange rate in effect at the time of the sale, exchange, or disposition.<br />
Except as discussed below with respect to foreign currency gain or loss, gain or loss recognised by a U.S.<br />
holder on a sale, exchange, or other disposition of a Bond Exchangeable for Aventis Shares generally will<br />
be capital gain or loss and will be long-term capital gain or loss if the holding period for the Bond<br />
Exchangeable for Aventis Shares is more than one year on the date of disposition. A U.S. holder's ability to<br />
offset capital losses against ordinary income is limited. Long-term capital gain recognised by an individual<br />
U.S. holder generally is subject to taxation at a maximum rate of 20%.<br />
Notwithstanding the foregoing, gain or loss recognised by a U.S. holder on a sale, exchange, or other<br />
disposition of a Bond Exchangeable for Aventis Shares generally will be treated as ordinary income or loss<br />
to the extent that the gain or loss is attributable to changes in exchange rates during the period in which the<br />
Bond Exchangeable for Aventis Shares was held. This foreign currency gain or loss will not be treated as an<br />
adjustment to interest income received on the Bond Exchangeable for Aventis Shares.<br />
There are no clear rules that govern the treatment of debt securities that are denominated in foreign<br />
currencies and that provide for payments that are contingent as to amount. Because the value of the<br />
Aventis Shares is not ®xed, the treatment of a U.S. holder's right to exchange Bonds Exchangeable for<br />
Aventis Shares for Aventis Shares is not entirely free from doubt. Nonetheless, because there are no rules<br />
that require that such contingent payments be taken into account before they become ®xed, the exchange of<br />
a Bond Exchangeable for Aventis Shares for Aventis Shares pursuant to the exchange right incorporated in<br />
the terms of the Bonds Exchangeable for Aventis Shares should generally be treated the same as an<br />
exchange for cash or other property. The amount realised on such an exchange for Aventis Shares would be<br />
the fair market value in U.S. dollars of the Aventis Shares received in the exchange, determined at the time<br />
of the exchange. It is possible, however, that the Internal <strong>Re</strong>venue Service would take a different view. In<br />
particular, the Internal <strong>Re</strong>venue Service has indicated that it is considering adopting rules comparable to<br />
those applicable to non-foreign currency debt securities that provide for contingent payments, which could<br />
affect the timing and the character of income recognised by a U.S. holder with respect to the Bonds<br />
Exchangeable for Aventis Shares. U.S. holders should consult their own tax advisers regarding the<br />
treatment of the exchange right incorporated in the terms of the Bonds Exchangeable for Aventis Shares.<br />
109
Aventis Shares<br />
Dividends on the Aventis Shares<br />
As discussed under ``±French Taxation,'' above, Aventis will withhold tax from dividend payments to<br />
a U.S. holder at a reduced rate of 15%, provided that the U.S. holder has previously complied with the<br />
requirements and procedures for claiming bene®ts under the United States-France Tax Treaty. If such<br />
procedures are not complied with prior to the dividend payment date, Aventis will deduct French<br />
withholding tax at the rate of 25%, and the U.S. holder may claim a withholding tax refund by ®ling an<br />
application for refund with the French tax authorities by December 31 of the second year following the<br />
year in which the withholding tax was paid.<br />
U.S. holders of Aventis Shares may also be entitled to a payment from the French tax authorities<br />
equal to the avoir ®scal, less a 15% withholding tax, if they ®le an application with the French tax<br />
authorities before December 31 of the year following the year during which the dividend is paid. A U.S.<br />
holder generally will be entitled to receive a refund of the avoir ®scal only if it attests (or its partners,<br />
bene®ciaries or grantors attest, if the U.S. holder is a partnership, estate or trust) that it is subject to U.S.<br />
federal income tax on the avoir ®scal payment and the dividend to which it relates. Assuming that the<br />
requirements and procedures for claiming bene®ts under the United States-France Tax Treaty have been<br />
complied with, a U.S. holder that is a corporation generally will be entitled to an avoir ®scal refund of 15%<br />
of the amount of a dividend paid in 2001 or after, and a U.S. holder that is an individual generally will be<br />
entitled to an avoir ®scal refund at the 50% rate. The refund of the avoir ®scal will not be made available<br />
until after January 15 following the close of the calendar year in which the dividend is paid.<br />
Pension funds and certain other tax-exempt U.S. holders are entitled under the United States-France<br />
Tax Treaty to a reduced withholding tax rate of 15%, and to a payment at least equal to 30/85 of the avoir<br />
®scal generally payable to a corporation, less a 15% withholding tax.<br />
U.S. holders that are not entitled to receive payments in respect of the avoir ®scal at the 50% rate (e.g.,<br />
corporations and certain tax-exempt investors) will be entitled to receive an additional payment from the<br />
French tax authorities if Aventis is liable for the preÂcompte in respect of a dividend distribution. Corporate<br />
holders of Aventis Shares receiving dividends in 2001 or after generally will be entitled to receive a payment<br />
equal to 70% of the preÂcompte that Aventis actually pays in cash, less a 15% withholding tax. Pension funds<br />
and certain other tax-exempt U.S. holders generally will be entitled to receive 30/85 of this amount, less a<br />
15% withholding tax. The additional payment is considered an increase to the avoir ®scal, and will also not<br />
be made available until after the close of the calendar year in which the dividend is paid. Individual U.S.<br />
holders entitled to a refund of the avoir ®scal at a rate of 50% are not entitled to an additional payment in<br />
respect of the preÂcompte.<br />
If a U.S. holder is not entitled to a refund of the avoir ®scal, such holder generally may obtain from<br />
the French tax authorities a refund of the preÂcompte Aventis actually pays in cash in respect of a dividend,<br />
less a 15% withholding tax. Pension funds and certain other tax-exempt U.S. holders are also entitled to a<br />
refund of the preÂcompte Aventis actually pays in cash in respect of a dividend, but only up to the amount<br />
exceeding the payments to which they are entitled in respect of the avoir ®scal and the avoir ®scal increase.<br />
If a U.S. holder is not entitled to a refund of the avoir ®scal but is entitled to a full refund of the<br />
preÂcompte, or if it is a U.S. pension fund or other tax-exempt U.S. holder that is entitled to a partial refund<br />
of the preÂcompte, it must make an application for such refund with the French tax authorities before the<br />
end of the year following the year in which the dividend was paid.<br />
Thus, for example, if Aventis pays a dividend of 100 to an individual U.S. holder, the holder initially<br />
will receive 85, but will be entitled to an additional payment of 42.50, consisting of the avoir ®scal of 50 less<br />
a 15% withholding tax. If Aventis pays a dividend in 2001 of 100 to a U.S. holder that is a corporation,<br />
such U.S. holder initially will receive 85, but will generally be entitled to an additional payment of 12.75,<br />
consisting of the avoir ®scal of 15, less a 15% withholding tax on that amount (equal to 2.25); in the event<br />
that the dividend distribution triggers payment by Aventis of the preÂcompte, such U.S. holder may also<br />
obtain from the French tax authorities an additional payment equal to 70% of the preÂcompte that Aventis<br />
actually pays in cash, less a 15% withholding tax. If Aventis pays a dividend in 2001 of 100 to a U.S. holder<br />
that is a U.S. pension fund, such U.S. pension fund initially will receive 85, but will generally be entitled to<br />
an additional payment of 4.5 consisting of the avoir ®scal of 5.29, less a 15% withholding tax on that<br />
110
amount; in the event that the dividend distribution triggers payment by Aventis of the preÂcompte, such U.S.<br />
pension fund may also obtain from the French tax authorities an additional payment equal to 30/85 of 70%<br />
of the preÂcompte Aventis actually pays in cash, less a 15% withholding tax.<br />
U.S. holders of Aventis Shares should consult their own tax advisers with respect to the requirements<br />
and procedures for claiming treaty bene®ts and receiving avoir ®scal and preÂcompte payments in respect of<br />
such shares, including the requirements and procedures for claiming refunds of withholding tax.<br />
The gross amount of dividend, avoir ®scal and preÂcompte payments that a U.S. holder receives (prior<br />
to the deduction of French withholding tax) generally will be subject to U.S. federal income taxation as<br />
foreign source dividend income. French withholding tax at the 15% rate provided under the United States-<br />
France Tax Treaty will be treated as a foreign income tax that, subject to generally applicable limitations<br />
under U.S. tax law, is eligible for credit against a U.S. holder's U.S. federal income tax liability or, at the<br />
holder's election, may be deducted in computing taxable income. A U.S. holder will not be able to claim<br />
credits for French taxes that would have been refunded if the holder had ®led a claim for a refund. Foreign<br />
tax credits will not be allowed for withholding taxes imposed in respect of certain short-term or hedged<br />
positions in securities or in respect of arrangements in which a U.S. holder's expected economic pro®t is<br />
insubstantial. U.S. holders should consult their own tax advisers concerning the implications of these rules<br />
in the light of their particular circumstances.<br />
Dividends paid in French Francs or euro will be included in the income of a U.S. holder in a U.S.<br />
dollar amount calculated by reference to the exchange rate in effect on the date of receipt by the holder,<br />
regardless of whether the payment is in fact converted into U.S. dollars. If such a dividend is converted into<br />
U.S. dollars on the date of receipt, a U.S. holder generally should not be required to recognise foreign<br />
currency gain or loss in respect of the dividend income. A U.S. holder may be required to recognise foreign<br />
currency gain or loss on the receipt of a refund in respect of French withholding tax to the extent the U.S.<br />
dollar value of the refund differs from the U.S. dollar equivalent of that amount on the date of receipt of<br />
the underlying dividend.<br />
Sale or other Disposition of the Aventis Shares<br />
For U.S. federal income tax purposes, gain or loss realised by a U.S. holder on a sale or other<br />
disposition of Aventis Shares will be capital gain or loss, and will be long-term capital gain or loss if the<br />
Aventis Shares were held for more than one year. A U.S. holder's initial tax basis in Aventis Shares<br />
acquired on an exchange of Bonds Exchangeable for Aventis Shares will generally be the fair market value<br />
in U.S. dollars of the Aventis Shares received in the exchange, determined at the time of the exchange, and<br />
a U.S. holder's holding period for Aventis Shares acquired on an exchange of Bonds Exchangeable for<br />
Aventis Shares will generally run from the time of the exchange. A U.S. holder's ability to offset capital<br />
losses against ordinary income is limited. Long-term capital gain recognised by an individual U.S. holder<br />
generally is subject to taxation at a maximum rate of 20%.<br />
U.S. Information <strong>Re</strong>porting and Backup Withholding Rules<br />
Payments in respect of the Bonds or Shares that are made within the United States or through certain<br />
U.S.-related ®nancial intermediaries are subject to information reporting and may be subject to backup<br />
withholding unless a holder (i) is a corporation or other exempt recipient or (ii) provides a taxpayer<br />
identi®cation number and certi®es that no loss of exemption from backup withholding has occurred.<br />
Holders that are not U.S. persons generally are not subject to information reporting or backup<br />
withholding. However, such a holder may be required to provide a certi®cation to establish its non-U.S.<br />
status in connection with payments received within the United States or from certain U.S.-related payors.<br />
111
SUBSCRIPTION AND SALE<br />
Underwriting Arrangements<br />
Subject to the terms and conditions set forth in the Subscription Agreement dated September 12, 2001<br />
(the ``Subscription Agreement''), the Issuer has agreed to sell to the Manager and the Manager has agreed<br />
to purchase from the Issuer, the Bonds Exchangeable for E.ON Shares and the Bonds Exchangeable for<br />
Aventis Shares in aggregate principal amounts of e 345,000,000 and e 345,000,000, respectively.<br />
Under the terms and conditions of the Subscription Agreement, the Manager is committed to<br />
purchase all of the Bonds at the purchase price of 100% of their principal amount less commissions.<br />
The Manager proposes to offer the Bonds directly to investors at the Issue Price set forth on the front<br />
cover page of this Information Memorandum. The Manager is expected to make offers and sales of the<br />
Bonds in the United States through its af®liates or selling agents, which must be broker-dealers registered<br />
under the Exchange Act.<br />
The Issuer has granted to the Manager the option, exercisable once with respect to each Issue of<br />
Bonds prior to October 14, 2001, to resell to the Issuer up to e 45,000,000 principal amount of Bonds<br />
Exchangeable for E.ON Shares and up to e 45,000,000 principal amount of Bonds Exchangeable for<br />
Aventis Shares. Bonds resold to the Issuer will be cancelled. The option will enable the Manager to overallot<br />
Bonds to effect transactions which stabilise the market price of the Bonds.<br />
The Issuer and the Guarantor have agreed that, for a three-month period commencing on the date of<br />
issue of the Bonds, they will not, and the Guarantor will, to the extent legally possible, cause its subsidiaries<br />
not to, offer, sell or otherwise undertake to sell or dispose of (i) any securities in the form of bonds<br />
convertible or exchangeable into Shares, or (ii) Shares, except in a private placement to strategic investors<br />
who agree to be subject to the same restrictions, or (iii) other securities which are convertible or<br />
exchangeable into or grant the right to subscribe for or receive Shares, or (iv) other similar securities, in<br />
each case of (i) through (iv) without the prior written consent of the Manager.<br />
The Subscription Agreement contains representations and warranties of the Issuer and the Guarantor<br />
relating, inter alia, to the accuracy of the information contained in this Information Memorandum. In<br />
addition, the Issuer and the Guarantor have agreed to indemnify the Manager against certain liabilities in<br />
connection with the offering of the Bonds.<br />
The Manager may terminate the Subscription Agreement under certain circumstances prior to the<br />
issuance of any payment for the Bonds, including if there has been a breach of any of the representations<br />
and warranties contained therein or if there has been such a change in national or international monetary,<br />
®nancial, political or economic conditions or currency exchange rates or exchange controls as would, in the<br />
view of the Manager, be likely to prejudice materially the success of the proposed offering and distribution<br />
of the Bonds or dealings in the Bonds in the secondary market.<br />
Selling <strong>Re</strong>strictions<br />
Federal <strong>Re</strong>public of Germany<br />
No securities sales prospectus (Wertpapier-Verkaufsprospekt) has been ®led with or approved by the<br />
Federal Securities Trading Supervisory Authority (Bundesaufsichtsamt fuÈr den Wertpapierhandel) in<br />
relation to the Bonds. Accordingly, the Bonds may be sold in Germany only in accordance with any of the<br />
exemptions provided in the Securities Sales Prospectus Act (Wertpapier-Verkaufsprospektgesetz).<br />
United States of America<br />
The Manager understands that the Bonds have not been and will not be registered under the<br />
Securities Act and that the Bonds may not be offered or sold in the United States or to, or for the account<br />
or bene®t of, a U.S. Person, except in accordance with <strong>Re</strong>gulation S under the Securities Act or pursuant to<br />
an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act.<br />
The Manager has represented and agreed that it will not offer or sell the Bonds (i) as part of its allocation at<br />
any time; or (ii) otherwise until 40 days after the later of the commencement of the offering and the date of<br />
issue of the Bonds (the ``Distribution Compliance Period'') other than outside the United States in<br />
accordance with Rule 903 of <strong>Re</strong>gulation S or through its U.S. broker-dealer af®liates in accordance with<br />
Rule 144A under the Securities Act to persons it reasonably believes are ``quali®ed institutional buyers''<br />
112
under Rule 144A and ``quali®ed purchasers'' under the 1940 Act. The Manager has further agreed that, at<br />
or prior to con®rmation of a sale of Bonds (other than a sale pursuant to Rule 144A), it will have sent to<br />
each distributor, dealer or other person receiving a selling concession, fee or other remuneration that<br />
purchases Bonds in reliance on <strong>Re</strong>gulation S during the Distribution Compliance Period a con®rmation or<br />
other notice setting out the restrictions on offers and sales within the United States or to, or for the account<br />
of or bene®t of, U.S. Persons.<br />
Until 40 days after the commencement of the issue of the Bonds, an offer or sale of the Bonds within<br />
the United States by any dealer (whether or not participating in such issue) may violate the registration<br />
requirements of the Securities Act.<br />
United Kingdom<br />
The Manager has represented and agreed that: (a) it has not offered or sold and, prior to the<br />
expiration of the period of six months from the date of issue of the Bonds, will not offer or sell any Bonds<br />
to persons in the United Kingdom, except to persons whose ordinary activities involve them in acquiring,<br />
holding, managing or disposing of investments (as principal or agent) for the purposes of their business or<br />
otherwise under circumstances which have not resulted and will not result in an offer to the public in the<br />
United Kingdom within the meaning of the Public Offers of Securities <strong>Re</strong>gulations 1995; (b) it has<br />
complied and will comply with all applicable provisions of the Financial Services Act 1986 with respect to<br />
anything done by it in relation to the Bonds in, from or otherwise involving the United Kingdom; and (c) it<br />
has only issued or passed on and will only issue or pass on in the United Kingdom any document received<br />
by it in connection with the issue of the Bonds to a person who is of a kind described in Article 11 (3) of the<br />
Financial Services Act 1986 (Investment Advertisements) (Exemptions) Order 1996 (as amended), or is a<br />
person to whom such document may otherwise lawfully be issued or passed on.<br />
Japan<br />
The Bonds have not been and will not be registered under the Securities and Exchange Law of Japan.<br />
The Bonds may not be offered or sold, directly or indirectly, in Japan or to, or for the bene®t of, any<br />
resident of Japan (including any Japanese corporation) or to others for reoffer or resale, directly or<br />
indirectly, in Japan or to, or for the bene®t of, any resident of Japan, except pursuant to an exemption from<br />
the registration requirements and from the requirements to deliver a prospectus under the Securities and<br />
Exchange Law of Japan and otherwise in compliance with such law and other relevant laws and<br />
regulations.<br />
The Netherlands<br />
In the Netherlands, the Bonds may only be offered, transferred, delivered or sold to individuals or<br />
legal entities who or which trade or invest in securities in the conduct of their profession or trade, which<br />
include banks, brokers, dealers, insurance companies, pension funds and other institutional investors, and<br />
commercial enterprises which regularly, as an ancillary activity, invest in securities.<br />
General<br />
The Manager has acknowledged that no action has been or will be taken in any jurisdiction by the<br />
Issuer or the Guarantor that would permit a public offering of the Bonds, or possession or distribution of<br />
this Information Memorandum or any other offering material, in any jurisdiction where action for those<br />
purposes is required. The Manager has agreed to comply with all applicable laws in each jurisdiction in<br />
which it purchases, offers, sells or delivers Bonds or has in its possession or distributes this Information<br />
Memorandum or any other offering material relating to the Bonds.<br />
113
TRANSFER RESTRICTIONS<br />
Because of the following restrictions, purchasers of the Bonds within the United States pursuant to<br />
Rule 144A under the Securities Act are advised to consult legal counsel prior to making any offer, resale,<br />
pledge or other transfer of the Bonds offered hereby.<br />
The Bonds and the Guarantee have not been and will not be registered under the Securities Act, and<br />
the Bonds may not be offered or sold within the United States to, or for the account or bene®t of, U.S.<br />
persons (as de®ned in <strong>Re</strong>gulation S under the Securities Act), except pursuant to an exemption from, or in a<br />
transaction not subject to, the registration requirements of the Securities Act and applicable state securities<br />
laws.<br />
Each purchaser of Bonds within the United States pursuant to Rule 144A will be required to sign a<br />
letter acknowledging that it has received a copy of this Information Memorandum and that:<br />
. the purchaser understands and acknowledges that the Bonds have not been and will not be<br />
registered under the Securities Act and are being offered in the United States in reliance on Rule<br />
144A, and that the Issuer is not and will not be registered as an investment company under the<br />
1940 Act;<br />
. the purchaser (i) is acquiring the Bonds for its own account as principal, (ii) is a single bene®cial<br />
owner for the purpose of Section 3(c) (1) of the 1940 Act and related rules, (iii) is a ``quali®ed<br />
institutional buyer'' as de®ned in Rule 144A under the Securities Act and a ``quali®ed<br />
purchaser'' as de®ned in Section 2(a) (51) and related rules of the 1940 Act, (iv) is not a brokerdealer<br />
which owns and invests on a discretionary basis less than U.S.$ 25 million in securities of<br />
unaf®liated issuers, (v) is not a participant-directed employee plan, such as a plan described in<br />
subsections (a) (1) (D), (E) or (F) of Rule 144A, and (vi) was not formed for the purpose of<br />
investing in the Issuer;<br />
. if in the future the purchaser decides to offer, resell, pledge or otherwise transfer the Bonds, the<br />
Bonds may be offered, resold, pledged or otherwise transferred only (i) in an ``offshore<br />
transaction'' in accordance with <strong>Re</strong>gulation S under the Securities Act to a person not known to<br />
it to be a U.S. person or (ii) to Morgan Stanley & Co. Incorporated (or any successor) or its<br />
af®liates. Furthermore, it will make no directed selling efforts in the United States with respect<br />
to the Bonds. The terms ``U.S. person'', ``offshore transaction'' and ``directed selling efforts''<br />
have the meanings set forth in <strong>Re</strong>gulation S; and<br />
. the purchaser understands and agrees that in the event it breaches any representation or<br />
covenant in the letter, the Issuer may require it to resell the Bonds to the Issuer at the initial<br />
Issue Price.<br />
Each purchaser of Bonds acknowledges that the Issuer, the Guarantor, the Manager, their respective<br />
af®liates and others will rely upon the truth and accuracy of the foregoing acknowledgements,<br />
representations and agreements, and agrees that if any of the acknowledgements, representations or<br />
warranties deemed to have been made by it by its purchase of Bonds are no longer accurate, it shall<br />
promptly notify the Issuer and the Manager.<br />
114
GENERAL INFORMATION<br />
Authorisation<br />
The issue of the Bonds by the Issuer has been duly authorised by resolution of the Management<br />
Board of the Issuer on August 6, 2001 and the Supervisory Board of the Issuer on August 6, 2001. The<br />
provision of the Guarantee by the Guarantor has been duly authorised by resolution of the Management<br />
Board of the Guarantor on January 30, 2001 and the Supervisory Board of the Guarantor on March 29,<br />
2001.<br />
Listing Information<br />
Application has been made to list the Bonds on the Luxembourg Stock Exchange.<br />
Prior to the listing, a legal notice containing information regarding the issue of the Bonds and the<br />
Articles of Association of the Issuer and the Guarantor will be registered and deposited with the Gref®er en<br />
Chef du Tribunal d'Arrondissement de et aÁ Luxembourg, where copies thereof may be inspected and<br />
obtained.<br />
The 1999 and 2000 Consolidated Annual <strong>Re</strong>ports, including the audited Management <strong>Re</strong>port and<br />
Consolidated Annual Accounts, the 1999 and 2000 unconsolidated Annual <strong>Re</strong>ports, including the audited<br />
unconsolidated Annual Accounts, and the Consolidated Interim <strong>Re</strong>port for the six months ending June 30,<br />
2001, including the unaudited Consolidated Interim Accounts, of the Guarantor and the 1999 and 2000<br />
Annual <strong>Re</strong>ports, including the audited Annual Accounts, of the Issuer are incorporated by reference into<br />
this Information Memorandum. In addition, the 1998, 1999 and 2000 Annual <strong>Re</strong>ports and the Interim<br />
<strong>Re</strong>ports for the six months ending June 30, 2001 of E.ON and Aventis are incorporated by reference into<br />
this Information Memorandum. Copies of the above-mentioned reports and accounts and copies of all<br />
annual and, in the case of the Guarantor, E.ON and Aventis, quarterly, ®nancial reports and accounts<br />
published by the Issuer, the Guarantor, E.ON and Aventis in relation to subsequent years may be inspected<br />
and obtained without charge at the of®ces of Dexia Banque <strong>International</strong>e aÁ Luxembourg, socieÂteÂ<br />
anonyme, 69, route d'Esch, L-1470 Luxembourg, as long as any Bonds are listed on the Luxembourg Stock<br />
Exchange and the rules of such stock exchange so require. The Issuer does not publish any interim ®nancial<br />
statements. Copies of the Articles of Association of the Issuer, the Guarantor, E.ON and Aventis and<br />
copies of the agency agreement dated September 12, 2001 (the ``Agency Agreement'') between the Issuer,<br />
the Guarantor and Morgan Stanley Bank <strong>AG</strong>, as principal paying agent and principal exchange agent, and<br />
Dexia Banque <strong>International</strong>e aÁ Luxembourg, socieÂte anonyme, as calculation agent, paying agent and<br />
exchange agent, setting out, inter alia, the duties of the agents, may also be inspected and obtained at the<br />
aforementioned address.<br />
The Consolidated Annual and Consolidated Interim <strong>Re</strong>ports of the Guarantor for the previous two<br />
®nancial years are also available on its website www.ergo.de. The unconsolidated Annual <strong>Re</strong>ports of the<br />
Guarantor for the previous two ®nancial years were published in the Federal Gazette of Germany.<br />
For so long as the Bonds are listed on the Luxembourg Stock Exchange and the rules of such stock<br />
exchange so require, the Issuer will maintain a paying agent and exchange agent in Luxembourg. All<br />
payments of principal and interest on the Bonds and any cash payment to exchanging Bondholders will be<br />
made through the principal paying agent. The Exchange Agents will accept an Exchange Notice from any<br />
Bondholder.<br />
Use of Proceeds<br />
The Issuer intends to make available the net proceeds of the issue, which will not be less than<br />
approximately e 590,000,000 (after deduction of the Manager's commissions and expenses payable by the<br />
Issuer, and assuming that the Manager exercises its put option in full), to other companies of the <strong>ERGO</strong><br />
Group, through the purchase of assets or otherwise, in order for such companies to ®nance further<br />
expansion of the <strong>ERGO</strong> Group's operations in Europe. In addition, the Issuer plans to use the net proceeds<br />
of the issue for general corporate purposes.<br />
115
Litigation<br />
Neither the Issuer nor the Guarantor nor any subsidiary is involved in any litigation or arbitration<br />
proceedings that, if determined adversely to the Issuer or the Guarantor or such subsidiary, would, in the<br />
aggregate, have a material adverse effect on the conditions (®nancial or otherwise) of the Issuer or the<br />
Guarantor or the <strong>ERGO</strong> Group, taken as a whole, nor is the Issuer or the Guarantor aware that any such<br />
proceedings are threatened.<br />
Material Change<br />
Save as disclosed herein, there has been no material adverse change in the ®nancial position of the<br />
Issuer or the Guarantor since December 31, 2000, the date of the most recent audited ®nancial statements.<br />
Payment Procedures<br />
Payments of interest and principal, if any, on the Bonds shall be made by the Issuer to the Principal<br />
Paying Agent for payment to Clearstream Frankfurt. Clearstream Frankfurt will transfer the amounts<br />
received directly to the Bondholders if the Bonds are held in an account with Clearstream Frankfurt. All<br />
other payments on the Bonds (e.g. the Cash Payment in lieu of Delivery of Shares pursuant to § 5(5) of the<br />
Conditions of Issue) shall be made by the Issuer to the Principal Paying Agent and the Principal Paying<br />
Agent shall transfer the received funds to a euro account designated by the Bondholder.<br />
Withholding Taxes<br />
All amounts payable in respect of the Bonds will be made by the Issuer without withholding or<br />
deduction for or on account of any present or future taxes or duties of whatever nature imposed or levied<br />
by way of withholding or deduction at source by or on behalf of the Federal <strong>Re</strong>public of Germany or any<br />
political subdivision or any authority thereof or therein having power to tax, unless such withholding or<br />
deduction is required by law. In such event, the Issuer will not be required under the Conditions of Issue to<br />
pay any additional amounts to the Bondholders.<br />
Clearance<br />
The Bonds have been accepted for clearance through Clearstream Frankfurt, Clearstream<br />
Luxembourg and Euroclear with the following security identi®cation numbers:<br />
Bonds Exchangeable for E.ON Shares Bonds Exchangeable for Aventis Shares<br />
ISIN Code: DE0008010489 ISIN Code: DE0008010497<br />
Common Code: 013558558 Common Code: 013558680<br />
WKN: 801048 WKN: 801049<br />
116
FINANCIAL P<strong>AG</strong>ES<br />
INDEX TO FINANCIAL STATEMENTS OF THE ISSUER AND THE GUARANTOR<br />
Balance Sheet of the Issuer for 2000 and 1999 PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP F-2<br />
Pro®t and Loss Account of the Issuer for 2000 and 1999 PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP F-4<br />
Consolidated Balance Sheet of the Guarantor for 2000 and 1999PPPPPPPPPPPPPPPPPPPPPPPPPPPP F-6<br />
Consolidated Pro®t and Loss Account of the Guarantor for 2000 and 1999 PPPPPPPPPPPPPPPPPPP F-9<br />
Consolidated Balance Sheet of the Guarantor for 1st Half 2001 PPPPPPPPPPPPPPPPPPPPPPPPPPPP F-11<br />
Consolidated Pro®t and Loss Account of the Guarantor for 1st Half 2001PPPPPPPPPPPPPPPPPPPP F-14<br />
F±1
Balance Sheet of the Issuer for 2000 and 1999<br />
F±2
Balance Sheet<br />
Assets 2000 1999<br />
DM DM<br />
A. Fixed assets<br />
Investments PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 0.00 0.00<br />
B. Current assets<br />
I. <strong>Re</strong>ceivables and other assets PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 1,194.28 217.79<br />
II. Liquid fundsPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 93,524.72 93,370.17<br />
Total assets PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 94,719 93,587.96<br />
Liabilities 2000 1999<br />
DM DM<br />
A. Shareholders' funds<br />
I. Subscribed capital PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 97,791.5 97,791.5<br />
II. Capital reserve PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 0 0<br />
III. Net pro®t for the year PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP (3,302.5) (4,433.54)<br />
B. Provisions PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 230 230<br />
C. Liabilities PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 0.00 0.00<br />
Total liabilitiesPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 94,719 93,587.96<br />
F±3
Pro®t and Loss Account of the Issuer for 2000 and 1999<br />
F±4
Pro®t and Loss Account *<br />
2000 1999<br />
DM DM<br />
1. Income from investment PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 0.00 0.00<br />
2. Other expenses PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP (2,643.25) (5,121.75)<br />
3. Other interests PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 3,773.75 688.21<br />
4. Pro®t on ordinary activities before taxes PPPPPPPPPPPPPPPPPPPPPPPPPPP 1,130.50 (4,433.54)<br />
5. Taxes on income PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 0.54 0.00<br />
6. Pro®t for the year PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 1,131.04 (4,433.54)<br />
7. <strong>Re</strong>sult brought forward PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP (4,433.54) 0.00<br />
8. Net pro®t for the yearPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP (3,302.50) (4,433.54)<br />
* The Issuer had losses of DM 4,433.54 in 1999, primarily due to start-up expenses in connection with its establishment, and pro®ts<br />
of DM 1,131.04 in 2000. Accordingly, the net losses of DM 4,433.54 in 1999 were reduced to DM 3,302.50 in 2000.<br />
F±5
Consolidated Balance Sheet of the Guarantor for 2000 and 1999<br />
F±6
Consolidated Balance Sheet<br />
Assets 2000 1999<br />
e million e million<br />
A. Intangible Assets<br />
I. Goodwill PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 830.0 88.3<br />
II. Other intangible assets PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 408.0 81.2<br />
1,238.0 169.5<br />
B. Investments<br />
I. <strong>Re</strong>al estate PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 5,814.1 4,325.6<br />
II. Shares in af®liated companies PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 234.9 112.6<br />
III. Shares in associated companies PPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 3,522.9 2,269.3<br />
IV. Loans guaranteed by mortgages and other loans PPPPPPPPPPPPPPP 6,400.0 5,891.1<br />
V. Other securities<br />
1. Held to maturity PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 1,185.5 1,421.9<br />
2. Available for sale PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 70,229.5 69,640.3<br />
3. Held for trading PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 47.2 25.3<br />
71,462.2 71,087.5<br />
VI. Other investments PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 835.2 958.4<br />
88,269.3 84,644.5<br />
C. Investments for the bene®t of life insurance policyholders who bear the<br />
investment risk PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 558.7 404.3<br />
D. <strong>Re</strong>insurers' share in technical provisions PPPPPPPPPPPPPPPPPPPPPPPPPPPP 6,200.5 5,262.5<br />
E. <strong>Re</strong>ceivables PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 2,815.7 2,100.5<br />
F. Liquid funds PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 1,797.0 383.5<br />
G. Deferred aquisition costs PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 3,948.7 3,980.9<br />
H. Deferred tax assets PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 465.5 263.2<br />
I. Other assets PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 568.0 501.7<br />
Total assets PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 105,861.4 97,710.6<br />
F±7
Consolidated Balance Sheet<br />
Liabilities 2000 1999<br />
e million e million<br />
A. Shareholders' funds<br />
I. Subscribed capital and capital reserve PPPPPPPPPPPPPPPPPPPPPPPP 841.4 841.4<br />
II. <strong>Re</strong>venue reserves PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 2,915.1 2,146.6<br />
III. Other reservesPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 1,620.2 1,675.2<br />
IV. Net pro®t for the year PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 804.1 466.7<br />
V. <strong>Re</strong>sult brought forward PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 149.4 28.6<br />
6,330.2 5,185.5<br />
B. Minority interests in shareholders' fundsPPPPPPPPPPPPPPPPPPPPPPPPPPPP 220.9 87.1<br />
C. Technical provisions (gross)<br />
I. Provision for unearned premiums PPPPPPPPPPPPPPPPPPPPPPPPPPPP 1,455.1 1,245.0<br />
II. Acturial provision PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 58,970.1 54,589.2<br />
III. Provision for outstanding claimsPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 4,630.6 3,898.3<br />
IV. Provision for premium refunds and policyholders' dividendsPPPPP 18,294.8 18,414.1<br />
V. Other technical provisions PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 57.4 54.3<br />
83,406.1 78,200.9<br />
D. Technical provisions for life insurance policies where the investment risk is<br />
borne by the policyholders (gross) PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 567.0 391.0<br />
E. Other provisions<br />
I. Pension and similar provisions PPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 536.8 504.1<br />
II. Provisions for tax PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 259.9 369.9<br />
III. Miscellaneous Provisions PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 480.2 511.8<br />
1,276.9 1,385.8<br />
F. Liabilites PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 12,056.6 9,637.3<br />
G. Deferred tax liabilites PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 2,002.0 2,850.0<br />
Total liabilitiesPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 105,861.4 97,710.6<br />
F±8
Consolidated Pro®t and Loss Account of the Guarantor for 2000 and 1999<br />
F±9
Consolidated Pro®t and Loss Account<br />
2000 1999<br />
e million e million<br />
1. Gross premiums writtenPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 12,669.0 11,928.5<br />
2. Earned premiums (net) PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 11,097.5 10,399.0<br />
3. Net investment incomePPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 7,234.4 5,289.9<br />
4. Other income PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 309.9 185.1<br />
Total income (2.-4.) PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 18,641.8 15,874.0<br />
5. Insurance bene®ts (net) PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 14,135.3 11,944.5<br />
6. Operating expenses (net)PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 2,247.4 2,163.0<br />
7. Other expenses PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 1,094.3 930.7<br />
Total expenses (5.-7.) PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 17,477.1 15,038.2<br />
8. Pro®t before depreciation on goodwill PPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 1,164.7 835.9<br />
9. Depreciation on goodwillPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 13.4 4.9<br />
10. Pro®t on ordinary activities before taxes PPPPPPPPPPPPPPPPPPPPPPPPPPP 1,151.4 831.0<br />
11. Taxes on income PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 334.9 367.8<br />
12. Year-end results apportionable to minority interests PPPPPPPPPPPPPPPPPP (12.4) 3.5<br />
13. Net pro®t for the yearPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 804.1 466.7<br />
F±10
Consolidated Balance Sheet of the Guarantor for 1st Half 2001<br />
F±11
Consolidated Balance Sheet<br />
Assets 1st half 2001<br />
e million<br />
A. Intangible Assets<br />
I. Goodwill PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 837<br />
II. Other intangible assets PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 398<br />
1,235<br />
B. Investments<br />
I. <strong>Re</strong>al estate PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 5,865<br />
II. Shares in af®liated companies PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 317<br />
III. Shares in associated companies PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 3,823<br />
IV. Loans guaranteed by mortgages and other loans PPPPPPPPPPPPPPPPPPPPPPPPPPP 7,190<br />
V. Other securities<br />
1. Held to maturity PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 1,128<br />
2. Available for sale PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 70,162<br />
3. Held for trading PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 39<br />
71,329<br />
VI. Other investments PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 1,485<br />
90,009<br />
C. Investments for the bene®t of life insurance policyholders who bear the investment risk P 654<br />
D. <strong>Re</strong>insurers' share in technical provisions PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 6,655<br />
E. <strong>Re</strong>ceivables PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 3,274<br />
F. Liquid funds PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 1,100<br />
G. Deferred aquisition costs PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 4,024<br />
H. Deferred tax assets PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 527<br />
I. Other assets PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 618<br />
Total assets PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 108,096<br />
F±12
Consolidated Balance Sheet<br />
Liabilities 1st half<br />
2001<br />
A. Shareholders' funds<br />
e million<br />
I. Subscribed capital and capital reserve PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 841<br />
II. <strong>Re</strong>venue reserves PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 3,816<br />
III. Other reserves PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 1,195<br />
IV. Net pro®t for the year PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 145<br />
B. Minority interests in shareholders' fundsPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 184<br />
C. Technical provisions (gross)<br />
I. Provision for unearned premiumsPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 1,674<br />
II. Acturial provision PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 61,542<br />
III. Provision for outstanding claimsPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 4,741<br />
IV. Provision for premium refunds and policyholders' dividendsPPPPPPPPPPPPPPPPP 16,603<br />
V. Other technical provisions PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 56<br />
5,997<br />
84,616<br />
D. Technical provisions for life insurance policies where the investment risk is borne by the<br />
policyholders (gross) PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 492<br />
E. Other provisions<br />
I. Pension and similar provisions PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 548<br />
II. Provisions for tax PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 237<br />
III. Miscellaneous Provisions PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 478<br />
F. Liabilites PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 13,417<br />
G. Deferred tax liabilites PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 2,127<br />
Total liabilitiesPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 108,096<br />
F±13<br />
1,263
Consolidated Pro®t and Loss Account of the Guarantor for 1st Half 2001<br />
F±14
Consolidated Pro®t and Loss Account<br />
1st half 2001<br />
e million<br />
1. Gross premiums writtenPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 6,876<br />
2. Earned premiums (net) PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 5,771<br />
3. Net investment incomePPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 2,503<br />
4. Other income PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 203<br />
Total income (2.-4.) PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 8,476<br />
5. Insurance bene®ts (net) PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 6,235<br />
6. Operating expenses (net)PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 1,293<br />
7. Other expensesPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 597<br />
Total expenses (5.-7.) PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 8,125<br />
8. Pro®t before depreciation on goodwill PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 351<br />
9. Depreciation on goodwillPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 60<br />
10. Pro®t on ordinary activities before taxes PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 292<br />
11. Taxes on income PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 140<br />
12. Year-end results apportionable to minority interests PPPPPPPPPPPPPPPPPPPPPPPPPPPPPP (7)<br />
13. Net pro®t for the yearPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 145<br />
F±15
ISSUER<br />
<strong>ERGO</strong> <strong>International</strong> Aktiengesellschaft<br />
Victoriaplatz 2<br />
D-40198 DuÈsseldorf<br />
GUARANTOR<br />
<strong>ERGO</strong> Versicherungsgruppe Aktiengesellschaft<br />
Victoriaplatz 2<br />
D-40198 DuÈsseldorf<br />
PRINCIPAL PAYING <strong>AG</strong>ENT AND PRINCIPAL EXCHANGE <strong>AG</strong>ENT<br />
Morgan Stanley Bank <strong>AG</strong><br />
Junghofstraûe 13-15<br />
D-60311 Frankfurt am Main<br />
LUXEMBOURG PAYING <strong>AG</strong>ENT, LUXEMBOURG EXCHANGE <strong>AG</strong>ENT,<br />
CALCULATION <strong>AG</strong>ENT AND LISTING <strong>AG</strong>ENT<br />
Dexia Banque <strong>International</strong>e aÁ Luxembourg, socieÂte anonyme<br />
69, route d'Esch<br />
L-1470 Luxembourg<br />
AUDITORS<br />
BDO Deutsche Warentreuhand Aktiengesellschaft,<br />
WirtschaftspruÈfungsgesellschaft<br />
Elisenstraûe 3<br />
D-80335 MuÈnchen<br />
LEGAL ADVISERS<br />
To the Issuer To the Manager<br />
Hengeler Mueller<br />
Bockenheimer Landstraûe 51<br />
D-60325 Frankfurt am Main<br />
imprima de bussy Ð C83053<br />
Cleary, Gottlieb, Steen & Hamilton<br />
Neue Mainzer Straûe 52<br />
D-60311 Frankfurt am Main