ERGO International AG - Munich Re

ERGO International Aktiengesellschaft
(a stock corporation incorporated under the laws of Germany, having its registered seat in DuÈ sseldorf)
b 345,000,000
2.25% Guaranteed Exchangeable Bonds due 2006
exchangeable for ordinary shares with no par value in
E.ON AG
(a stock corporation incorporated under the laws of Germany, having its registered seat in DuÈ sseldorf)
and
b 345,000,000
0.75% Guaranteed Exchangeable Bonds due 2006
exchangeable for ordinary shares with a nominal value of b 3.82 per share in
AVENTIS S.A.
(a stock corporation incorporated under the laws of France, having its registered seat in Strasbourg)
both unconditionally and irrevocably guaranteed by
ERGO Versicherungsgruppe Aktiengesellschaft
(a stock corporation incorporated under the laws of Germany, having its registered seat in DuÈ sseldorf)
Issue Price: 100%
The 2.25% Guaranteed Exchangeable Bonds due 2006 (the ``Bonds Exchangeable for E.ON Shares'') exchangeable for
ordinary shares with no par value (the ``E.ON Shares'') in E.ON AG (``E.ON'') and the 0.75% Guaranteed Exchangeable Bonds
due 2006 (the ``Bonds Exchangeable for Aventis Shares'', and together with the Bonds Exchangeable for E.ON Shares, the
``Bonds'') exchangeable for ordinary shares, nominal value B 3.82 per share (the ``Aventis Shares'', and together with the E.ON
Shares, the ``Shares''), in Aventis S.A. (``Aventis'') issued by ERGO International Aktiengesellschaft (the ``Issuer'') will be in the
denomination of B 10,000 each. Each Bond Exchangeable for E.ON Shares will, at the option of the Bondholders, be exchangeable
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
of B 75.00, and each Bond Exchangeable for Aventis Shares will, at the option of the Bondholders, be exchangeable on or after
January 1, 2002 to and including September 1, 2006 for Aventis Shares at an initial exchange price for each Aventis Share of
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
``Conditions of Issue ± } 5(5) Cash Payment in lieu of Delivery of Shares''. The obligations of the Issuer under the Bonds will be
unconditionally and irrevocably guaranteed by ERGO Versicherungsgruppe Aktiengesellschaft (the ``Guarantor'' or ``ERGO'').
The Issuer has granted to Morgan Stanley & Co. International Limited (the ``Manager'') the option to resell to the Issuer, for
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
amount of the Bonds Exchangeable for Aventis Shares prior to October 14, 2001. See ``Subscription and Sale''.
Unless previously exchanged, the Bonds will be redeemed by the Issuer on September 14, 2006 at 100% of their principal
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
principal amount together with interest accrued thereon if the price of the Shares (plus any cash amounts payable and the value
of any property and of any shares deliverable by the Issuer) exceeds 130% of the exchange price during a speci®ed period. See
``Conditions of Issue ± } 3(3) Early Redemption''. Interest will accrue from September 14, 2001 and will be payable annually in
arrears on September 14 of each year, commencing on September 14, 2002.
Application has been made to list the Bonds on the Luxembourg Stock Exchange. The E.ON Shares are listed on all eight
German stock exchanges and the Swiss Stock Exchange and the Aventis Shares are listed on the Euronext Paris and Frankfurt
stock exchanges. Each of E.ON and Aventis also has American Depositary Shares (ADSs) listed on the New York Stock
Exchange.
The Bonds Exchangeable for E.ON Shares and the Bonds Exchangeable for Aventis Shares are each represented by a
global certi®cate (each, a ``Global Certi®cate'', and both together, the ``Global Certi®cates'') payable to bearer without interest
coupons. De®nitive certi®cates representing individual Bonds and interest coupons will not be issued. The Global Certi®cates will
be kept in custody with Clearstream Banking AG, Frankfurt am Main (``Clearstream Frankfurt''), until all obligations of the
Issuer under the Bonds have been satis®ed.
The Bonds and the Guarantees (as de®ned herein) have not been and will not be registered under the United States
Securities Act of 1933, as amended (the ``Securities Act''). The Bonds are being offered or sold only to U.S. persons that are
``quali®ed institutional buyers'' under Rule 144A under the Securities Act and ``quali®ed purchasers'' under the United States
Investment Company Act of 1940, as amended (the ``1940 Act''), and to non-U.S. persons in offshore transactions in reliance on
Regulation S under the Securities Act. Prospective investors are hereby noti®ed that sellers of the Bonds may be relying on the
exemption from the provisions of Section 5 of the Securities Act provided by Rule 144A. Reoffers, resales and other transfers of the
Bonds are subject to the restrictions described under ``Transfer Restrictions''.
The Bonds offered hereby are offered by the Manager subject to receipt and acceptance by it and subject to its right to reject
any order in whole or in part. The Bonds have been accepted for clearance through Clearstream Frankfurt, Clearstream
Banking S.A., Luxembourg (``Clearstream Luxembourg''), and Euroclear Bank S.A./N.V., Brussels (``Euroclear''). It is expected
that delivery of the Bonds will be made through the facilities of Clearstream Frankfurt and, outside the Federal Republic of
Germany, of Clearstream Luxembourg and Euroclear, against payment therefor in immediately available funds, on or about
September 14, 2001.
Morgan Stanley
The date of this Information Memorandum is September 12, 2001.

THIS INFORMATION MEMORANDUM DOES NOT CONSTITUTE AN OFFER TO SELL
OR A SOLICITATION OF AN OFFER TO BUY ANY SECURITY OTHER THAN THE BONDS
OFFERED HEREBY, AND DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION
OF AN OFFER TO BUY ANY BONDS OFFERED HEREBY TO ANY PERSON IN ANY
JURISDICTION IN WHICH IT IS UNLAWFUL TO MAKE ANY SUCH OFFER OR
SOLICITATION.
The distribution of this Information Memorandum and the offering of the Bonds, and the Shares to
be delivered upon redemption of the Bonds by way of exchange, may, in certain jurisdictions, be restricted
by law. No action has been or will be taken in any jurisdiction by the Issuer, the Guarantor or by the
Manager that would permit a public offering of the Bonds or Shares or possession or distribution of a
prospectus or offering memorandum in any jurisdiction where action for that purpose is required. The
Issuer, the Guarantor and the Manager require persons into whose possession this Information
Memorandum comes to inform themselves of and observe all such restrictions. None of the Issuer, the
Guarantor or the Manager accepts any legal responsibility for any violation by any person, whether or not
a prospective purchaser of the Bonds, of any such restrictions. For a further description of certain
restrictions on offers and sales of the Bonds and on the distribution of this Information Memorandum,
particularly in relation to the United States, see ``Subscription and Sale'' and ``Transfer Restrictions''.
No securities sales prospectus (Wertpapier-Verkaufsprospekt) has been ®led with or approved by the
Federal Securities Trading Supervisory Authority (Bundesaufsichtsamt fuÈr den Wertpapierhandel) in
relation to the Bonds. Accordingly, the Bonds may be sold in Germany only in accordance with any of the
exemptions provided in the Securities Sales Prospectus Act (Wertpapier-Verkaufsprospektgesetz).
The Issuer has not authorised any offer of the Bonds to the public in the United Kingdom within the
meaning of the Public Offers of Securities Regulations 1995 (as amended) (the ``Regulations''). The Bonds
may not lawfully be offered or sold to persons in the United Kingdom, except under circumstances which
do not result in an offer to the public in the United Kingdom within the meaning of the Regulations or
otherwise in compliance with all applicable provisions of the Regulations. See ``Subscription and Sale ±
Selling Restrictions''.
The Bonds have not been and will not be registered under the Securities and Exchange Law of Japan.
The Bonds may not be offered or sold, directly or indirectly, in Japan or to, or for the bene®t of, any
resident of Japan (including any Japanese corporation) or to others for reoffer or resale, directly or
indirectly, in Japan or to, or for the bene®t of, any resident of Japan, except pursuant to an exemption from
the registration requirements and from the requirements to deliver a prospectus under the Securities and
Exchange Law of Japan and otherwise in compliance with such law and other relevant laws and
regulations.
In the Netherlands, the Bonds may only be offered, transferred, delivered or sold to individuals or
legal entities who or which trade or invest in securities in the conduct of their profession or trade, which
include banks, brokers, dealers, insurance companies, pension funds and other institutional investors, and
commercial enterprises which regularly, as an ancillary activity, invest in securities.
THE BONDS HAVE NOT BEEN RECOMMENDED BY ANY UNITED STATES FEDERAL
OR STATE SECURITIES COMMISSION OR REGULATORY AUTHORITY. FURTHERMORE,
THE FOREGOING AUTHORITIES HAVE NOT CONFIRMED THE ACCURACY OR
DETERMINED THE ADEQUACY OF THIS INFORMATION MEMORANDUM. ANY
REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENCE.
The purpose of this Information Memorandum is to give information with regard to the Issuer, the
Guarantor, E.ON, Aventis and the Bonds. Subject to the quali®cations set out below, the Issuer and the
Guarantor accept responsibility for the information contained in this Information Memorandum. To the
best knowledge and belief of the Issuer and the Guarantor, the information contained in this Information
Memorandum, for which the Issuer and the Guarantor accept responsibility, is in accordance with the facts
and does not omit anything likely to affect the import of such information. The information contained
herein with regard to E.ON and the E.ON Shares and with regard to Aventis and the Aventis Shares has
been accurately reproduced from, or is a summary of, publicly available information published by E.ON
and Aventis, respectively. So far as the Issuer and the Guarantor are aware, no facts have been omitted
2

which would render such information misleading. The Issuer and the Guarantor accept responsibility for
the accurate reproduction or, as the case may be, summary of such information. No further or other
responsibility in respect of such information is accepted by the Issuer or the Guarantor.
No person has been authorised to give any information or to make any representations, other than
those contained in this Information Memorandum, in connection with the issue and sale of the Bonds and,
if given or made, such information or representations must not be relied upon as having been authorised by
the Issuer, the Guarantor or the Manager. Neither the delivery of this Information Memorandum nor any
allotment or sale made in connection herewith shall, under any circumstances, create any implication that
there has been no change in the affairs of the Issuer or the Guarantor since the date hereof, or that the
information herein is correct as of any time subsequent to the date hereof.
The Manager makes no representation or warranty, express or implied, as to the accuracy or
completeness of the information contained in this Information Memorandum and nothing contained herein
is, or shall be relied upon as, a promise or representation by the Manager as to the past or the future.
The document does not constitute an offer or an invitation by or on behalf of the Issuer or the
Guarantor or by or on behalf of the Manager to subscribe for or purchase any of the Bonds and should not
be considered to be a recommendation by the Issuer, the Guarantor, the Manager or any of them that any
recipient of this document should subscribe for or purchase any of the Bonds. Each recipient of this
document shall be taken to have made its own investigation and appraisal of the conditions (®nancial or
otherwise) of the Issuer, the Guarantor, E.ON and Aventis.
All references herein to ``euro'' or ``e`' are to the single currency which was introduced on January 1,
1999 at the start of the third stage of the economic and monetary union of the European Union. All
references herein to ``DM'' or ``Deutsche Mark'' are to the non-decimal subunits of the euro as de®ned by
the conversion rate irrevocably ®xed in accordance with Article 109 1 (4) sentence 1 of the EC Treaty.
This Information Memorandum contains statements relating to the future that are based on the
beliefs of the Issuer's or the Guarantor's management. The words ``anticipate'', ``believe'', ``estimate'',
``expect'', ``intend'', ``plan'' and ``project'' are used to identify such future-oriented statements. These
statements re¯ect current views with respect to future events and are subject to risks and uncertainties.
Many factors could cause the actual results to be materially different. These factors include, among others,
changes in general economic and business conditions, changes in currency exchange rates and interest rates,
the introduction of competing products, a lack of acceptance of new products or services, and changes in
business strategy. Actual results may vary materially from those projected here. Neither the Issuer nor the
Guarantor intends or assumes any obligation to update these forward-looking statements.
3

IN CONNECTION WITH THIS ISSUE, THE MANAGER OR ITS AFFILIATES MAY OVER-
ALLOT OR EFFECT TRANSACTIONS WHICH STABILISE OR MAINTAIN THE MARKET PRICE
OF THE BONDS AND THE SHARES AT LEVELS WHICH MIGHT NOT OTHERWISE PREVAIL.
SUCH STABILISING, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME.
NOTICE TO NEW HAMPSHIRE RESIDENTS ONLY
NEITHER THE FACT THAT A REGISTRATION STATEMENT OR AN APPLICATION FOR
A LICENCE HAS BEEN FILED UNDER CHAPTER 421-B OF THE NEW HAMPSHIRE REVISED
STATUTES WITH THE STATE OF NEW HAMPSHIRE NOR THE FACT THAT A SECURITY IS
EFFECTIVELY REGISTERED OR A PERSON IS LICENSED IN THE STATE OF NEW
HAMPSHIRE CONSTITUTES A FINDING BY THE SECRETARY OF STATE OF NEW
HAMPSHIRE THAT ANY DOCUMENT FILED UNDER RSA 421-B IS TRUE, COMPLETE AND
NOT MISLEADING. NEITHER ANY SUCH FACT NOR THE FACT THAT AN EXEMPTION OR
EXCEPTION IS AVAILABLE FOR A SECURITY OR A TRANSACTION MEANS THAT THE
SECRETARY OF STATE HAS PASSED IN ANY WAY UPON THE MERITS OR
QUALIFICATIONS OF, OR RECOMMENDED OR GIVEN APPROVAL TO, ANY PERSON,
SECURITY OR TRANSACTION. IT IS UNLAWFUL TO MAKE, OR CAUSE TO BE MADE, TO
ANY PROSPECTIVE PURCHASER, CUSTOMER OR CLIENT ANY REPRESENTATION
INCONSISTENT WITH THE PROVISIONS OF THIS PARAGRAPH.
4

TABLE OF CONTENTS
INCORPORATION BY REFERENCEPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 8
ENFORCEMENT OF CIVIL LIABILITIES PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 8
AVAILABLE INFORMATION PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 8
SUMMARY OF THE CONDITIONS OF ISSUE PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 9
CONDITIONS OF ISSUE OF THE BONDS EXCHANGEABLE FOR E.ON SHARESPPPPPP 13
CONDITIONS OF ISSUE OF THE BONDS EXCHANGEABLE FOR AVENTIS SHARESPP 43
UNDERTAKING WITH RESPECT TO THE BONDS EXCHANGEABLE FOR E.ON
SHARESPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 71
UNDERTAKING WITH RESPECT TO THE BONDS EXCHANGEABLE FOR AVENTIS
SHARESPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 74
THE ISSUERPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 77
Share Capital PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 77
Capitalisation PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 77
Business of the Issuer PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 78
Management BoardPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 78
Supervisory BoardPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 78
Financial Year PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 78
Auditors PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 78
THE GUARANTOR PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 79
Incorporation, Registered Seat, Duration and Corporate Purpose PPPPPPPPPPPPPPPPPPPPPPPP 79
Share Capital PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 79
Capitalisation PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 80
The ERGO Group PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 80
Business of the ERGO GroupPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 81
Overview PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 81
Business Segments PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 82
Life Insurance PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 82
Health Insurance PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 82
Property and Casualty Insurance PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 83
Legal Expenses InsurancePPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 83
Financial Services PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 83
Business Regions PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 84
Germany PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 84
Rest of EuropePPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 84
Major New Acquisitions PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 84
Business Developments in First Half 2001 PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 85
Recent Business Developments and Outlook PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 85
Management BoardPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 86
Supervisory BoardPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 86
Financial Year PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 87
Auditors PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 87
E.ON AG PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 88
Incorporation, Registered Seat, Duration and Corporate Purpose PPPPPPPPPPPPPPPPPPPPPPPP 88
Share Capital PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 88
Business of E.ON PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 89
Rights Attaching to Shares PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 89
Transfer of Shares PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 89
Annual General Meetings PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 89
Voting RightsPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 89
Dividend RightsPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 89
Rights in Liquidation PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 89
5
Page

Financial Year PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 89
Selected Financial Data PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 90
Distribution of Net Income PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 91
Share Price StatisticsPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 91
Major Recent Developments PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 92
Additional Information PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 92
AVENTIS S.A.PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 93
Incorporation, Registered Seat, Duration and Corporate Purpose PPPPPPPPPPPPPPPPPPPPPPPP 93
Share Capital PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 93
Business of Aventis PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 93
Rights Attaching to Shares PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 93
Transfer of Shares PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 93
Annual General Meetings PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 94
Voting RightsPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 94
Dividend RightsPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 94
Rights in Liquidation PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 94
Financial Year PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 94
Selected Financial Data PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 95
Distribution of Net Income PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 96
Share Price StatisticsPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 97
Additional Information PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 97
REGULATION OF INSURANCE COMPANIES IN GERMANY PPPPPPPPPPPPPPPPPPPPPPPPP 98
TAXATION PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 99
Taxation in the Federal Republic of Germany PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 99
German Residents PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 99
Bonds PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 99
Interest PaymentsPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 99
Sale, Redemption, or Exchange of the Bonds PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 99
Shares PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 100
Dividend PaymentsPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 100
Sale of Shares Acquired in Exchange of the Bonds PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 101
German Non-Residents PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 101
Bonds PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 101
Income from the Bonds is Connected with Certain Activities in GermanyPPPPPPPPPPPPPPPPPP 101
Income from the Bonds is not Connected with Certain Activities in Germany PPPPPPPPPPPPPP 101
Shares PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 102
Dividend PaymentsPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 102
Sale of Shares Acquired in Exchange of the Bonds PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 102
Inheritance or Gift Tax PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 102
Other Taxes PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 102
French Taxation PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 103
Taxation of Dividends PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 103
Taxation on Disposition of the Aventis Shares PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 103
Estate and Gift Tax PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 104
Taxation of German Investors PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 104
Proposed EU Savings Tax Directive PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 105
United States Federal Income Taxation PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 105
Bonds Exchangeable for E.ON Shares and E.ON Shares PPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 105
Bonds Exchangeable for E.ON SharesPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 106
Interest on the Bonds Exchangeable for E.ON Shares PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 106
Sale, Exchange, or other Disposition of the Bonds Exchangeable for E.ON Shares PPPPPPPPP 106
E.ON Shares PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 107
Dividends on the E.ON Shares PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 107
Sale or other Disposition of the E.ON Shares PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 107
Bonds Exchangeable for Aventis Shares and Aventis Shares PPPPPPPPPPPPPPPPPPPPPPPPPPP 108
Bonds Exchangeable for Aventis Shares PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 108
6

Interest on the Bonds Exchangeable for Aventis Shares PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 108
Sale, Exchange, or other Disposition of the Bonds Exchangeable for Aventis Shares PPPPPPPP 109
Aventis Shares PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 110
Dividends on the Aventis SharesPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 110
Sale or other Disposition of the Aventis Shares PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 111
U.S. Information Reporting and Backup Withholding Rules PPPPPPPPPPPPPPPPPPPPPPPPPPPP 111
SUBSCRIPTION AND SALE PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 112
Underwriting Arrangements PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 112
Selling Restrictions PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 112
Federal Republic of Germany PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 112
United States of America PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 112
United Kingdom PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 113
JapanPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 113
The Netherlands PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 113
General PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 113
TRANSFER RESTRICTIONS PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 114
GENERAL INFORMATION PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 115
Authorisation PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 115
Listing InformationPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 115
Use of Proceeds PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 115
Litigation PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 116
Material Change PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 116
Payment Procedures PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 116
Withholding Taxes PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 116
Clearance PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 116
FINANCIAL PAGES PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP F-1
7

INCORPORATION BY REFERENCE
The 1999 and 2000 Consolidated Annual Reports of the Guarantor and its consolidated subsidiaries
(the ``ERGO Group''), including the audited Management Report and Consolidated Annual Accounts, the
1999 and 2000 unconsolidated Annual Reports, including the audited unconsolidated Annual Accounts,
and the Consolidated Interim Report for the six months ending June 30, 2001, including the unaudited
Consolidated Interim Accounts, of the Guarantor and the 1999 and 2000 Annual Reports, including the
audited Annual Accounts, of the Issuer are incorporated by reference into this Information Memorandum.
In addition, the 1998, 1999 and 2000 Annual Reports and the Interim Reports for the six months ending
June 30, 2001 of E.ON and Aventis are incorporated by reference into this Information Memorandum.
Copies of the above-mentioned reports and accounts and copies of all annual and, in the case of the
Guarantor, E.ON and Aventis, quarterly, ®nancial reports and accounts published by the Issuer, the
Guarantor, E.ON and Aventis in relation to subsequent years may be inspected and obtained without
charge at the of®ces of Dexia Banque Internationale aÁ Luxembourg, 69, route d'Esch, L-1470 Luxembourg,
as long as any Bonds are listed on the Luxembourg Stock Exchange and the rules of such stock exchange so
require. The Issuer does not publish any interim ®nancial statements.
The Consolidated Annual and Consolidated Interim Reports of the Guarantor for the previous two
®nancial years are also available on its website www.ergo.de. The unconsolidated Annual Reports of the
Guarantor for the previous two ®nancial years were published in the Federal Gazette of Germany
(Bundesanzeiger).
ENFORCEMENT OF CIVIL LIABILITIES
Each of the Issuer and the Guarantor is a stock corporation organized under the laws of the Federal
Republic of Germany. All of the members of their management boards are citizens of countries other than
the United States, and all or a substantial portion of the assets of each company and of such persons are
located outside the United States. As a result, it may not be possible to effect service of process within the
United States upon any of the Issuer or the Guarantor, or upon the members of their management boards,
or to enforce against them in the courts in the Federal Republic of Germany judgments obtained in U.S.
courts based on the civil liability provisions of the U.S. securities laws. The enforcement in the Federal
Republic of Germany of civil liabilities based solely upon U.S. securities laws in original actions or in
actions for the enforcement of judgments of U.S. courts may encounter dif®culties. In addition, awards of
punitive damages in actions brought in the United States or elsewhere are unenforceable in the Federal
Republic of Germany.
AVAILABLE INFORMATION
The Issuer and the Guarantor have agreed that if, at any time during the term of the Bonds, they are
not subject to the reporting requirements of Section 13 or 15(d) of the United States Exchange Act of 1934,
as amended (the ``Exchange Act''), and they are not exempt from reporting requirements pursuant to Rule
12g3-2(b) under the Exchange Act, they will make available upon request the information required to be
delivered pursuant to Rule 144A(d)(4) under the Securities Act for delivery to any holder, bene®cial owner
or prospective purchaser of any Bond sold in the United States pursuant to Rule 144A. This information
will also be available at the of®ces of Dexia Banque Internationale aÁ Luxembourg, 69, route d'Esch, L-1470
Luxembourg, as long as any Bonds are listed on the Luxembourg Stock Exchange.
8

SUMMARY OF THE CONDITIONS OF ISSUE
The following summary is quali®ed in its entirety by the more detailed information appearing in the
``Conditions of Issue'' of the Bonds Exchangeable for E.ON Shares and the ``Conditions of Issue'' of the
Bonds Exchangeable for Aventis Shares (each, the ``Conditions'') and certain terms used herein are de®ned
in the Conditions.
Issuer: ERGO International Aktiengesellschaft
Guarantor: ERGO Versicherungsgruppe Aktiengesellschaft
Description of the Bonds: The Issuer will issue two tranches of Bonds, the Bonds
Denomination of the Bonds:
Exchangeable for E.ON Shares and the Bonds Exchangeable for
Aventis Shares. The Bonds Exchangeable for E.ON Shares will
have an aggregate principal amount of e 345,000,000 and the
Bonds Exchangeable for Aventis Shares will have an aggregate
principal amount of e 345,000,000. Each tranche of Bonds is
hereinafter referred to as an ``Issue''. Unless the context otherwise
requires, any reference to ``Bonds'' means the Bonds of each Issue.
The Bonds will be divided into bearer bonds in the principal
amount of e 10,000 each which rank pari passu among themselves.
Form of the Bonds: The Bonds will be represented by a permanent global certi®cate (the
``Global Certi®cate'') payable to bearer without interest coupons.
The Global Certi®cate will be deposited with Clearstream Banking
AG, Frankfurt am Main (``Clearstream Frankfurt''). The Bonds
will be transferable in accordance with the rules of Clearstream
Frankfurt, and outside the Federal Republic of Germany, the rules
of Clearstream Banking S.A., Luxembourg, and Euroclear S.A./
N.V., Brussels, as operator of the Euroclear System. De®nitive
certi®cates representing individual Bonds and interest coupons will
not be issued.
Maturity Date; Early Redemption: The Issuer will redeem the Bonds at 100% of their principal amount
on September 14, 2006, to the extent they have not previously been
redeemed or exchanged or purchased and cancelled. From and
including September 28, 2004, the Issuer may redeem the Bonds, in
whole or in part, at their principal amount plus interest accrued
thereon, if the price of the shares for which the Bonds are
exchangeable exceeds 130% of the Exchange Price during a
speci®ed period. Any partial redemption of Bonds must (i) relate
to Bonds of an Issue in an aggregate principal amount of at least
e 100,000,000 and (ii) not reduce the aggregate principal amount of
the Issue outstanding after such redemption to less than
Interest:
e 50,000,000.
The Bonds Exchangeable for E.ON Shares will bear interest at the
rate of 2.25% per annum on their principal amount from
Payments:
September 14, 2001 and the Bonds Exchangeable for Aventis
Shares will bear interest at the rate of 0.75% per annum on their
principal amount from September 14, 2001. Interest on the Bonds
will be payable annually in arrears on September 14 of each year,
commencing on September 14, 2002.
Payments of principal of, and interest on, the Bonds will be made
by the Issuer to the Principal Paying Agent for on-payment to
Clearstream Frankfurt. All payments to the holders of the Bonds
(the ``Bondholders'') in connection with the exchange of Bonds will
be effected by transfer to such account as a Bondholder may specify
in its exchange notice (an ``Exchange Notice'').
9

Status and Negative Pledge of the
Issuer:
The Bonds will constitute unsecured and unsubordinated
obligations of the Issuer and rank pari passu with all other
present and future unsecured and unsubordinated obligations of
the Issuer. Until such time as principal and interest, as well as any
cash amounts payable under or in respect of the Bonds have been
paid to the Paying Agents and all obligations to deliver shares or
other property have been ful®lled, the Issuer will undertake, subject
to certain exceptions, not to provide any security interest upon its
assets for any present or future Capital Market Indebtedness,
including any guarantee in respect thereof, unless the Bonds at the
same time share pari passu and pro rata in such security or unless
such other security, as shall have been approved by an independent
accounting ®rm of recognised international standing as being
equivalent security, has been made available to the Bondholders.
``Capital Market Indebtedness'' means any present or future
obligation for the repayment of borrowed money of the Issuer,
the Guarantor or any third party, which is in the form of, or
represented or evidenced by, bonds, notes or other securities with
an original maturity of more than one year which are, or are
capable of being quoted, listed, dealt in or traded on a stock
exchange or other recognised securities market.
Guarantees: The Guarantor will give its unconditional and irrevocable
guarantee (with respect to each Issue, a ``Guarantee'', and
together, the ``Guarantees'') for the due payment of principal of,
and interest on, the Bonds and all other amounts, if any, payable by
the Issuer under the Conditions and the delivery of the shares and
any other property to be delivered under the Conditions. The
Guarantees will constitute unsecured and unsubordinated
obligations of the Guarantor and rank pari passu with all other
present and future unsecured and unsubordinated obligations of
the Guarantor.
Negative Pledge of the Guarantor: The Guarantor will provide an undertaking concerning negative
pledge that will be identical to the undertaking of the Issuer.
Exchange Right: Subject to adjustment as provided in § 5 of the Conditions, each
Bondholder will have the right (the ``Exchange Right'') to
exchange, in the case of the Bonds Exchangeable for E.ON
Shares, each Bond for 133.3333 shares of E.ON or, in the case of
the Bonds Exchangeable for Aventis Shares, each Bond for
101.5228 shares of Aventis (in each case, the ``Exchange Ratio'')
during the Exchange Period by delivering to an Exchange Agent a
duly completed Exchange Notice in accordance with the provisions
of § 5 of the Conditions.
Exchange Period: The Exchange Period will be the period commencing on and
including January 1, 2002 and ending on and including September 1,
2006.
Exchange Price: The price at which shares will be delivered by the Issuer to a
Bondholder upon exchange (in each case, the ``Exchange Price'')
will be e 75.00 per share of E.ON, in the case of the Bonds
Exchangeable for E.ON Shares, and e 98.50 per share of Aventis,
in the case of the Bonds Exchangeable for Aventis Shares, each
subject to adjustment as provided in § 5 of the Conditions.
10

Calculation, Paying and Exchange
Agents:
Cash Payment in Lieu of Delivery of
Shares:
Fractions of shares will not be delivered on exchange but will be
compensated in cash based on the applicable share price (calculated
in accordance with § 3(3)(a) of the Conditions) on the date on
which the Exchange Right has been validly exercised (the
``Exchange Date'').
The Issuer has appointed Morgan Stanley Bank AG, Frankfurt am
Main, as principal paying agent (in such capacity, the ``Principal
Paying Agent'') and principal exchange agent (in such capacity, the
``Principal Exchange Agent'') and Dexia Banque Internationale aÁ
Luxembourg, socieÂte anonyme, Luxembourg, as paying agent (in
such capacity, the ``Luxembourg Paying Agent'', and together with
the Principal Paying Agent, the ``Paying Agents'') and exchange
agent (in such capacity, the ``Luxembourg Exchange Agent'' and,
together with the Principal Exchange Agent, the ``Exchange
Agents''). The Issuer has also appointed Dexia Banque
Internationale aÁ Luxembourg, socieÂte anonyme as calculation
agent for the purpose of calculating the number of shares, cash and/
or other property to be delivered upon the exercise of the Exchange
Right and making the adjustments and other determinations
referred to in §§ 5 and 6 of the Conditions (in such capacity, the
``Calculation Agent''). The Issuer may at any time, by giving not
less than 30 days' notice by publication in accordance with § 11 of
the Conditions, appoint another leading bank maintaining its head
of®ce or a branch in Germany or Luxembourg, as Paying Agent,
Exchange Agent or Calculation Agent provided that for as long as
any of the Bonds are outstanding, there will always be a Paying
Agent, an Exchange Agent and an agent performing the functions
of the Calculation Agent in Luxembourg.
The Issuer will be entitled upon the exercise of the Exchange Right
by a Bondholder, in lieu of the delivery of shares, to pay to the
Bondholder a cash amount (the ``Cash Payment''). The Cash
Payment will be calculated with respect to the total number of
shares (including fractions of shares) for which the Exchange Right
has been exercised, such number of shares to be calculated in
accordance with the provisions of § 5(5) of the Conditions. The
Cash Payment related to a share will, subject to certain exceptions,
be calculated as an amount equal to the arithmetic average of the
applicable price of the shares on each of the ten Stock Exchange
Trading Days after the Exchange Date.
Substitution of the Issuer: The Guarantor will at any time be entitled, without the consent of
the Bondholders, to substitute the Issuer either by itself or by
another subsidiary in which the Guarantor holds at least 90% of the
voting rights as principal debtor in respect of all obligations arising
under and/or in connection with the Bonds, subject to the
conditions and requirements set forth in § 10(1) of the Conditions.
Notices: All notices regarding the Bonds will be published in the following
journals: (a) a newspaper recognised by the rules of the
Luxembourg Stock Exchange (which is expected to be the
Luxemburger Wort), (b) a leading daily newspaper printed in the
English language and of general circulation in London (which is
expected to be the Financial Times), and (c) a leading daily
newspaper printed in the German language and of general
circulation in Germany (which is expected to be the BoÈrsen-
11

Zeitung). Any notice will become effective for all purposes on the
date of its publication in the newspaper recognised by the rules of
the Luxembourg Stock Exchange.
Governing Law and Jurisdiction: The Bonds and the Guarantees will be governed by and shall be
construed in accordance with the laws of Germany. The District
Court (Landgericht) in Frankfurt am Main will have jurisdiction
for all proceedings arising out of or in connection with the Bonds.
12

CONDITIONS OF ISSUE
OF THE BONDS EXCHANGEABLE FOR E.ON SHARES
ANLEIHEBEDINGUNGEN CONDITIONS OF ISSUE
§1
(StuÈckelung, Verbriefung und
Girosammelverwahrung)
(1) StuÈckelung. (1) Denomination.
Die ERGO International Aktiengesellschaft,
DuÈsseldorf (die ``Emittentin''), begibt eine 2,25%
garantierte Umtauschanleihe im Gesamtnennbetrag
von
e 345.000.000 (in Worten: Euro dreihundertfuÈnfundvierzig
Millionen)
eingeteilt in 34.500 untereinander gleichrangige
Teilschuldverschreibungen mit einem Nennbetrag
von jeweils e 10.000 (die ``Teilschuldverschreibungen'').
(2) Verbriefung. (2) Form.
Die Teilschuldverschreibungen werden durch eine
auf den Inhaber lautende Globalurkunde (die
``Globalurkunde'') ohne Zinsscheine verbrieft.
Effektive Urkunden uÈber einzelne Teilschuldverschreibungen
und Zinsscheine werden nicht
ausgegeben. Eine Kopie der Globalurkunde ist fuÈr
die AnleiheglaÈubiger (jeweils ein ``AnleiheglaÈubiger'')
bei den GeschaÈftsstellen der Zahlstellen
(§ 13) kostenlos erhaÈltlich.
§1
(Denomination, Form and Clearing)
ERGO International Aktiengesellschaft, DuÈsseldorf
(the ``Issuer'') issues 2.25% guaranteed
exchangeable bonds in the aggregate principal
amount of
e 345,000,000 (in words: Euro three hundred and
forty-®ve million)
divided into 34,500 bonds with a nominal amount
of e 10,000 each which rank pari passu among
themselves (the ``Bonds'').
The Bonds are represented by a global certi®cate
(the ``Global Certi®cate'') payable to bearer without
interest coupons. De®nitive certi®cates representing
individual Bonds and interest coupons shall not be
issued. A copy of the Global Certi®cate is available
to the holders of the bonds (each, a ``Bondholder'')
free of charge at the of®ces of the Paying Agents
(§ 13).
(3) Girosammelverwahrung. (3) Custody and Clearing.
Die Globalurkunde wird bis zur vollstaÈndigen
ErfuÈllung saÈmtlicher Verp¯ichtungen der Emittentin
aus den Teilschuldverschreibungen von der
Clearstream Banking AG, Frankfurt am Main
(``Clearstream Frankfurt''), verwahrt. Die Teilschuldverschreibungen
sind durch entsprechende
Depotbuchungen gemaÈû den jeweiligen Bestimmungen
von Clearstream Frankfurt und, auûerhalb
der Bundesrepublik Deutschland, Clearstream
Banking S.A., Luxemburg (``Clearstream
Luxemburg''), und Euroclear Bank S.A/N.V.,
BruÈssel (``Euroclear''), uÈbertragbar.
13
The Global Certi®cate will be kept in custody with
Clearstream Banking AG, Frankfurt am Main
(``Clearstream Frankfurt''), until all obligations of
the Issuer under the Bonds have been satis®ed. The
Bonds shall be transferable by appropriate entries in
securities accounts in accordance with applicable
rules of Clearstream Frankfurt and, outside the
Federal Republic of Germany, of Clearstream
Banking S.A., Luxembourg (``Clearstream
Luxembourg''), and Euroclear Bank S.A/N.V.,
Brussels (``Euroclear'').

§ 2
(Verzinsung)
§ 2
(Interest)
(1) Zinssatz und Zinszahlungstage. (1) Interest Rate and Interest Payment Dates.
Die Teilschuldverschreibungen werden vom
14. September 2001 (der ``Ausgabetag'') an mit
einem Zinssatz von 2,25% p.a. auf den Nennbetrag
verzinst. Die Zinsen sind jaÈhrlich nachtraÈglich
jeweils am 14. September eines jeden Jahres zu
zahlen (jeweils ein ``Zinszahlungstag''), beginnend
am 14. September 2002. Der letzte Zinszahlungstag
ist der 14. September 2006 (sofern nicht
die Teilschuldverschreibungen zu einem fruÈheren
Zeitpunkt zuruÈckgezahlt oder um-getauscht
werden). Der Zinslauf endet mit Beginn des Tages,
an dem die Teilschuldverschreibungen zur
RuÈckzahlung faÈllig werden, oder, bei AusuÈbung des
Umtauschrechts (§ 5(1)(a)), mit Beginn des dem
Umtauschtag (§ 5(2)(a)) unmittelbar vorangehenden
Zinszahlungstages bzw. des Ausgabetages, sofern es
bis dahin keinen Zinszahlungstag gegeben hat.
(2) Verzug. (2) Late Payment.
Sofern die Emittentin Teilschuldverschreibungen
bei FaÈlligkeit nicht gemaÈû § 3 tilgt, werden die zu
tilgenden Teilschuldverschreibungen ± ausgenommen
im Falle des § 4(2) ± vom FaÈlligkeitstag bis zum
Tag der tatsaÈchlichen RuÈckzahlung weiterhin mit
einem Zinssatz von 2,25% p.a. auf ihren
Nennbetrag verzinst.
(3) Zinstagequotient. (3) Accrued Interest.
Zinsen, die fuÈr einen Zeitraum von weniger als
einem Jahr zu berechnen sind, werden auf der
Grundlage der tatsaÈchlich verstrichenen Tage,
dividiert durch 365 bzw. 366 (tatsaÈchliche Anzahl
der Tage im jeweiligen Zinsjahr), berechnet.
§ 3
(FaÈlligkeit, Vorzeitige RuÈckzahlung)
(1) FaÈlligkeit. (1) Maturity.
Die Teilschuldverschreibungen sind am
14. September 2006 zum Nennbetrag
zuruÈckzuzahlen, sofern sie nicht vorher
zuruÈckgezahlt, umgetauscht oder gemaÈû § 3(2)
gekauft und entwertet werden.
(2) RuÈckerwerb. (2) Repurchase.
Die Emittentin, die Garantin (§ 8) oder ein mit
ihnen verbundenes Unternehmen ist jederzeit
berechtigt, Teilschuldverschreibungen im Markt
oder auf andere Weise zu erwerben. Auf diese
14
The Bonds shall bear interest on their principal
amount at the rate of 2.25% per annum from
September 14, 2001 (the ``Issue Date''). Interest
shall be payable annually in arrears on September
14 of each year (each, an ``Interest Payment Date''),
commencing on September 14, 2002. The last
Interest Payment Date shall be September 14,
2006 (unless the Bonds are previously redeemed or
exchanged). Interest shall cease to accrue as of the
beginning of the day on which the Bonds become
due for redemption, or, when the Exchange Right
(§ 5(1)(a)) shall have been exercised, as of the
beginning of the Interest Payment Date immediately
preceding the Exchange Date (§ 5(2)(a)), or, if there
was no Interest Payment Date, the Issue Date.
Should the Issuer fail to redeem Bonds when due
pursuant to § 3, interest shall, except in the case
referred to in § 4(2), continue to accrue on the
principal amount of the Bonds to be redeemed from
such due date until the date of actual redemption of
the Bonds at the rate of 2.25% per annum.
If interest is to be calculated for a period of less than
a full year, such interest shall be calculated on the
basis of the actual number of days elapsed, divided
by 365 or 366 (actual number of days in the
respective annual interest period).
§ 3
(Maturity, Early Redemption)
The Bonds shall be redeemed at their principal
amount on September 14, 2006, unless previously
redeemed, exchanged, or purchased in accordance
with §3 (2) and cancelled.
The Issuer, the Guarantor (§ 8) or any of their
af®liates may at any time purchase Bonds in the
open market or otherwise. Bonds so repurchased
may be held, cancelled or resold.

Weise ruÈckerworbene Teilschuldverschreibungen
koÈnnen gehalten, entwertet oder weiterverkauft
werden.
(3) Vorzeitige RuÈckzahlung. (3) Early Redemption.
(a) Die Emittentin ist berechtigt, die Teilschuldverschreibungen
insgesamt oder teilweise
durch Bekanntmachung gemaÈû § 11 mit einer
Frist von mindestens 30 und hoÈchstens 60
Tagen zum Nennbetrag zuzuÈglich aufgelaufener
Zinsen zuruÈckzuzahlen, wenn der Kurs
der Aktien (§ 5(1)(a)) in der XETRA-
Notierung (wie nachstehend de®niert)
(zuzuÈglich gemaÈû § 6 zahlbarer BarbetraÈge
und dem Wert von gemaÈû § 6 zu liefernder
VermoÈgenswerte und zuzuÈglich dem Wert von
gemaÈû § 5(6) zu liefernder Aktien) an mehr als
20 Handelstagen (jeweils ein ``BoÈrsentag'') an
der Frankfurter WertpapierboÈrse (die ``FWB'')
innerhalb eines Zeitraums von 30
aufeinanderfolgenden BoÈrsentagen, der am
fuÈnften BoÈrsentag vor einer solchen
Bekanntmachung endet, 130% des zu diesem
Zeitpunkt guÈltigen Umtauschwertes (§ 5(1)(b))
uÈbersteigt; eine teilweise RuÈckzahlung der
Teilschuldverschreibungen ist jedoch nur
zulaÈssig, sofern (i) diese sich auf Teilschuldverschreibungen
in einem Gesamtnennbetrag
von mindestens e 100.000.000 bezieht
und (ii) den Gesamtnennbetrag der nach dieser
RuÈckzahlung ausstehenden Teilschuldverschreibungen
nicht auf weniger als
e 50.000.000 verringert. Die Bekanntmachung
der vorzeitigen RuÈckzahlung der
Teilschuldverschreibungen ist unwiderru¯ich.
Der in der Bekanntmachung als
RuÈckzahlungstag angegebene Tag darf nicht
vor dem 28. September 2004 liegen. FaÈllt der
RuÈckzahlungstag in einen NichtausuÈbungszeitraum
(§ 5(4)) oder in einen Zeitraum von
10 Tagen nach dem Ende eines
NichtausuÈbungs-zeitraums, so verschiebt sich
der RuÈck-zahlungstag auf den zehnten
Bankarbeitstag (§ 4(2)) nach dem Ende dieses
Nichtaus-uÈbungszeitraums. Die
Bekanntmachung hat den RuÈckzahlungstag
sowie die UmstaÈnde zu bezeichnen, aufgrund
derer die Emittentin zur RuÈckzahlung der
Teilschuldverschreibungen berechtigt ist. Im
Falle einer teilweisen RuÈckzahlung werden die
zuruÈckzuzahlenden Teilschuldverschreibungen
anteilsmaÈûig bestimmt oder, soweit dies nicht
moÈglich ist, per Zufallsauswahl durch
Clearstream Frankfurt gemaÈû dem von
Clearstream Frankfurt fuÈr diesen Zweck
festgesetzten Verfahren ermittelt.
15
(a) The Issuer may, on giving no less than 30 and
no more than 60 days' notice in accordance
with § 11, redeem the Bonds, in whole or in
part, at their principal amount plus interest
accrued thereon, if the price of the Shares
(§ 5(1)(a)) in the XETRA-Quotation (as
de®ned below) (plus any cash amounts
payable, and the value of any property
deliverable, pursuant to § 6 and plus the
value of any shares deliverable pursuant to
§ 5(6)) exceeds on more than 20 trading days
(each, a ``Stock Exchange Trading Day'') on
the Frankfurt Stock Exchange (the ``FSE'')
during a period of 30 consecutive Stock
Exchange Trading Days ending on the ®fth
Stock Exchange Trading Day preceding such
notice 130% of the then-applicable Exchange
Price (§ 5(1)(b)); provided, however, that any
partial redemption of Bonds shall (i) relate to
Bonds with an aggregate principal amount of
at least e 100,000,000 and (ii) not reduce the
aggregate principal amount of the Bonds
outstanding after such redemption to less
than e 50,000,000. Such notice of early
redemption shall be irrevocable. The date
speci®ed in such notice as date of redemption
shall not fall earlier than on September 28,
2004. If the date of redemption falls within an
Excluded Period (§ 5(4)) or the ten days
following the end of an Excluded Period, the
date of redemption will be postponed to the
tenth Business Day (§ 4(2)) following the end of
such Excluded Period. Such notice shall state
the date of redemption and the facts which
establish the right of the Issuer so to redeem
the Bonds. In the case of a partial redemption,
the Bonds to be redeemed will be selected on a
pro rata basis or, where this is not possible, by
random selection by Clearstream Frankfurt in
accordance with the procedures established by
Clearstream Frankfurt for such purpose.

``XETRA-Notierung'' an einem Tag ist der Kurs in
der XETRA-Mittagsauktion derjenigen Aktien, die
zum Zeitpunkt der Kursfeststellung uneingeschraÈnkt
dividendenberechtigt sind, oder, falls kein
derartiger Kurs festgestellt wird, der Einheitskurs
an der FWB, oder, falls kein Einheitskurs
festgestellt wird, der letzte veroÈffentlichte
BoÈrsenkurs fuÈr die Aktien an der FWB an diesem
Tag, oder, falls kein BoÈrsenkurs veroÈffentlicht wird,
das Mittel der letzten Brief- und Geldkurse. Falls
die Aktien nicht an der FWB notiert sind oder
Brief- und Geldkurse nicht verfuÈgbar sind, sind die
entsprechenden Notierungen oder Kurse an der
wichtigsten WertpapierboÈrse zu verwenden, an der
die Aktien gehandelt werden. Falls die Aktien nicht
anderweitig zum BoÈrsenhandel zugelassen sind,
bestimmt die Berechnungsstelle (§ 13) die XETRA-
Notierung auf der Grundlage anderer Notierungen
oder Informationen, die sie fuÈr maûgeblich haÈlt.
(b) Die Emittentin ist berechtigt, die
Teilschuldverschreibungen mittels Bekanntmachung
gemaÈû § 11 mit einer Frist von
mindestens 30 und hoÈchstens 60 Tagen
insgesamt zum Nennbetrag zuzuÈglich
aufgelaufener Zinsen zuruÈckzuzahlen, wenn
der Gesamtnennbetrag der am Tag der
Bekanntmachung ausstehenden Teilschuldverschreibungen
10% oder weniger des Gesamtnennbetrags
der urspruÈnglich ausgegebenen
Teilschuldverschreibungen entspricht.
§ 4
(Zahlungen)
``XETRA-Quotation'' on any day means the
quotation in XETRA in the midday auction of the
shares entitled at the time of ®xing of the quotation
to full dividend rights, or, in the case that no such
quotation is reported, the of®cial quotation
(Einheitskurs) on the FSE or, in the case that no
of®cial quotation is reported, the last reported per
share sale price on such day of the shares on the
FSE or, if no sale price is reported, the average of
the last bid and ask prices. If the shares are not
listed on the FSE, or no bid and ask prices are
available, the respective quotations or prices on the
principal securities exchange on which the shares
are listed shall be used. In the absence of such
listing, the Calculation Agent (§ 13) shall determine
the XETRA-Quotation on the basis of such
quotations or other information as it considers
appropriate.
(b) The Issuer may, on giving no less than 30 and
no more than 60 days' notice in accordance
with § 11, redeem the Bonds in whole at their
principal amount together with interest
accrued thereon, if the aggregate principal
amount of the Bonds outstanding on the date
the notice is given is equal to or less than 10%
of the aggregate principal amount of the Bonds
that were initially issued.
§ 4
(Payments)
(1) Zahlungen von Kapital und Zinsen. (1) Payments of Principal and Interest.
Zahlungen von Kapital und Zinsen auf die
Teilschuldverschreibungen sind in Euro am
entsprechenden Zahlungstag (§ 4(3)) an Clearstream
Frankfurt oder entsprechend deren Anweisung zu
leisten. SaÈmtliche Zahlungen, die an Clearstream
Frankfurt oder entsprechend deren Anweisung
geleistet werden, befreien die Emittentin von ihren
Verbindlichkeiten aus den Teilschuldverschreibungen
in HoÈhe der geleisteten Zahlungen.
(2) Bankarbeitstage. (2) Business Days.
FaÈllt ein FaÈlligkeitstag fuÈr Zahlungen von Kapital
oder Zinsen auf die Teilschuldverschreibungen auf
einen Tag, an dem Clearstream Frankfurt und die
Banken in Frankfurt am Main nicht fuÈr den
GeschaÈftsverkehr geoÈffnet sind und keine
Zahlungen in Euro abwickeln (jeweils ein
16
Payments of principal of, and interest on, the Bonds
shall be made in Euro on the relevant Payment Date
(§ 4(3)) to, or to the order of, Clearstream
Frankfurt. All payments made to Clearstream
Frankfurt or to its order shall discharge the
liability of the Issuer under the Bonds to the
extent of the sums so paid.
If any due date for payment of principal of, or
interest on, the Bonds is not a day on which
Clearstream Frankfurt and banks in Frankfurt am
Main are open for business and settle payments in
Euro (each, a ``Business Day''), such payment will
not be made until the next following Business Day,

``Bankarbeitstag''), erfolgt die betreffende Zahlung
erst am naÈchstfolgenden Bankarbeitstag, ohne daû
im Hinblick auf die Verschiebung der Zahlung
zusaÈtzliche Zinsen oder sonstige BetraÈge geschuldet
werden.
(3) Zahlungstag. (3) Payment Date.
Im Sinne dieser Anleihebedingungen ist ein
``Zahlungstag'' ein Tag, an dem, gegebenenfalls
aufgrund einer Verschiebung gemaÈû § 4(2), eine
Zahlung zu leisten ist.
(4) Hinterlegung bei Gericht. (4) Depositing in Court.
Die Emittentin kann BetraÈge an Kapital und Zinsen
sowie alle anderen gegebenenfalls auf die
Teilschuldverschreibungen zu zahlenden BetraÈge,
deren Zahlung von den AnleiheglaÈubigern nicht
innerhalb von zwoÈlf Monaten nach deren FaÈlligkeit
geltend gemacht worden ist, beim Amtsgericht in
Frankfurt am Main hinterlegen. Soweit die
Emittentin auf das Recht zur RuÈcknahme der
hinterlegten BetraÈge verzichtet, erloÈschen die
betreffenden AnspruÈche der AnleiheglaÈubiger
gegen die Emittentin.
§ 5
(Umtauschrecht)
(1) Umtauschrecht, Umtauschfrist und
Umtauschwert.
(a) Jeder AnleiheglaÈubiger hat waÈhrend der
nachstehend bezeichneten Umtauschfrist,
vorbehaltlich der ErfuÈllung der Bestimmungen
dieses § 5, jederzeit das Recht (das
``Umtauschrecht''), seine Teilschuldverschreibungen
gegen voll eingezahlte und mit voller
Dividendenberechtigung ausgestattete auf den
Inhaber lautende Stammaktien ohne Nennwert
(die ``Aktien'') der E.ON AG (die
``Gesellschaft'') in fuÈr die ErfuÈllung von
GeschaÈften an der FWB lieferbarer Form
umzutauschen. Nach AusuÈbung des
Umtauschrechts gemaÈû § 5(2)(a) erlischt das
Recht eines AnleiheglaÈubigers auf RuÈckzahlung
der Teilschuldverschreibungen im Hinblick auf
diejenigen Teilschuldverschreibungen, fuÈr
welche das Umtauschrecht ausgeuÈbt worden
ist, und wird durch das Recht auf Lieferung der
Aktien gemaÈû § 5 ersetzt. Die ``Umtauschfrist''
ist der Zeitraum vom 1. Januar 2002 bis zum
1. September 2006 (jeweils einschlieûlich).
Wenn jedoch Teilschuldverschreibungen vor
dem 1. September 2006 gemaÈû § 3(3) zur
RuÈckzahlung gekuÈndigt werden, endet die
17
and no further interest or other amount shall be
owed in respect of the delay in such payment.
For the purposes of these Conditions of Issue,
``Payment Date'' means any day on which a
payment is to be made, where applicable as
adjusted in accordance with § 4(2).
The Issuer may deposit with the lower court
(Amtsgericht) in Frankfurt am Main amounts of
principal, interest and all other amounts due under
the Bonds, if any, not claimed by Bondholders
within twelve months after the date on which such
amounts have become due. To the extent that the
Issuer waives its right to withdraw such deposit, the
relevant claim of the Bondholders against the Issuer
shall cease.
§ 5
(Exchange Right)
(1) Exchange Right, Exchange Period and
Exchange Price.
(a) At any time during the Exchange Period
referred to below and subject to compliance
with the provisions of this § 5, each
Bondholder has the right (the ``Exchange
Right'') to exchange its Bonds for fully paidin
ordinary bearer shares with no par value and
full dividend entitlement (the ``Shares'') of
E.ON AG (the ``Company'') in a form that
enables good delivery for settlement of
transactions on the FSE. Upon exercise of
the Exchange Right in accordance with
§ 5(2)(a), the Bondholder's right to have the
Bonds redeemed shall cease with respect to
those Bonds for which the Exchange Right has
been exercised and shall be replaced by the
right to demand delivery of Shares as provided
for in this § 5. The ``Exchange Period'' shall be
the period from and including January 1, 2002
to and including September 1, 2006, provided
that, if the Bonds have been called for
redemption pursuant to § 3(3) prior to
September 1, 2006, the Exchange Period with
respect to the Bonds that are subject to
redemption shall expire at the end of the ®fth

Umtauschfrist fuÈr die der RuÈckzahlung
unterliegenden Teilschuldverschreibungen mit
Ablauf des fuÈnften Bankarbeitstages vor dem
Tag der RuÈckzahlung, es sei denn, die
Emittentin verletzt ihre P¯icht zur
RuÈckzahlung dieser Teilschuldverschreibungen
bei FaÈlligkeit gemaÈû § 3.
(b) Der Gegenwert, zu dem die Aktien von der
Emittentin an die AnleiheglaÈubiger bei
AusuÈbung des Umtauschrechts geliefert
werden (der ``Umtauschwert''), betraÈgt
e 75,00 je Aktie. Der Umtauschwert kann
auf die in § 5(3) geregelte Art und Weise
angepasst werden. Die Anzahl der bei
Umtausch einer Teilschuldverschreibung zu
liefernden Aktien ergibt sich durch Teilung
des Nennbetrags jeder Teilschuldverschreibung
durch den am Umtauschtag
(§ 5(2)(a)) geltenden Umtauschwert. Das
Ergebnis dieser Teilung ist auf die vierte
Dezimalstelle zu runden, wobei 0,00005
aufgerundet werden, so daû, vorbehaltlich
einer Anpassung des Umtauschwertes, fuÈr
jede Teilschuldverschreibung 133,3333 Aktien
geliefert werden. Wenn ein AnleiheglaÈubiger
das Umtauschrecht gleichzeitig hinsichtlich
mehrerer Teilschuldverschreibungen ausuÈbt,
errechnet sich die Anzahl der zu liefernden
Aktien auf der Basis des Gesamtnennbetrags
dieser Teilschuldverschreibungen.
(c) Das Umtauschrecht kann von einem
AnleiheglaÈubiger nicht mehr ausgeuÈbt
werden, wenn bei einer Zahlstelle (§ 13) in
bezug auf die von diesem AnleiheglaÈubiger
gehaltenen Teilschuldverschreibungen eine
Benachrichtigung zum Zwecke der
KuÈndigung gemaÈû § 9(2) eingegangen ist.
Business Day preceding the date of redemption
unless the Issuer fails to redeem such Bonds
when due pursuant to § 3.
(b) The price at which Shares will be delivered by
the Issuer to Bondholders upon exercise of the
Exchange Right (the ``Exchange Price'') will be
e 75.00 per Share. The Exchange Price may be
subject to adjustments in the manner provided
in § 5(3). The number of Shares to be delivered
upon exchange of a Bond will be determined
by dividing the principal amount of each Bond
by the Exchange Price applicable on the
Exchange Date (§ 5(2)(a)). The result of such
division shall be rounded to the fourth decimal
place, with 0.00005 being rounded upwards; so
that, subject to any adjustments to the
Exchange Price, 133.3333 Shares will be
delivered for each Bond. If more than one
Bond is exchanged at any one time by the same
Bondholder, the number of Shares to be
delivered will be calculated on the basis of
the aggregate principal amount of such Bonds.
(c) The Exchange Right may no longer be
exercised by a Bondholder following the
receipt by a Paying Agent (§ 13) of a notice
in accordance with § 9(2) declaring the Bonds
held by such Bondholder due.
(2) Umtauschverfahren. (2) Procedure for Exchange.
(a) Zur AusuÈbung des Umtauschrechts muû jeder
AnleiheglaÈubiger waÈhrend der Umtauschfrist
(i) auf eigene Kosten waÈhrend der uÈblichen
GeschaÈftszeiten bei einer Umtauschstelle (§ 13)
eine ordnungsgemaÈû ausgefuÈllte und
unterzeichnete UmtauscherklaÈrung (die
``UmtauscherklaÈrung''), die bei den
GeschaÈftsstellen der Umtauschstellen
erhaÈltlich ist, einreichen und (ii) die
umzutauschenden Teilschuldverschreibungen
auf das Konto einer Umtauschstelle (oder auf
das von einer Umtauschstelle auf dem
Formular der UmtauscherklaÈrung angegebene
Konto) bei Clearstream Luxemburg oder
18
(a) In order to exercise the Exchange Right, each
Bondholder must, during the Exchange Period,
(i) deliver at its own expense during normal
business hours to an Exchange Agent (§ 13) a
notice of exchange (the ``Exchange Notice'')
duly completed and signed on a form available
at the of®ces of the Exchange Agents and (ii)
transfer the Bonds to be exchanged to the
account of an Exchange Agent (or to the
account designated by an Exchange Agent on
the form of the Exchange Notice) with
Clearstream Luxembourg or Clearstream
Frankfurt. The Exchange Notice shall be
irrevocable. Any Exchange Right shall have

Clearstream Frankfurt uÈbertragen. Die
UmtauscherklaÈrung ist unwiderru¯ich. Ein
Umtauschrecht ist an dem Tag (der
``Umtauschtag'') wirksam ausgeuÈbt, an dem
beide unter § 5(2)(a) (i) und (ii) aufgefuÈhrten
Voraussetzungen erfuÈllt sind; in diesem
Zusammenhang gilt, daû (x) eine AusuÈbung
des Umtauschrechts nicht wirksam ist, sofern
die UmtauscherklaÈrung einer Umtauschstelle
waÈhrend eines NichtausuÈbungszeitraums
(§ 5(4)) zugeht und (y), sofern der Tag, an
dem die in § 5(2)(a) (i) und (ii) aufgefuÈhrten
Voraussetzungen erfuÈllt sind, kein BoÈrsentag
ist, der auf diesen Tag unmittelbar folgende
BoÈrsentag der Umtauschtag ist.
(b) Eine Lieferung von Bruchteilen von Aktien, die
infolge der AusuÈbung des Umtauschrechts
entstuÈnden, ist ausgeschlossen. Soweit die
AusuÈbung des Umtauschrechts im Hinblick
auf eine oder mehrere Teilschuldverschreibung(en)
zu Bruchteilen von Aktien
fuÈhren wuÈrde, leistet die Emittentin anstelle der
Lieferung dieser Bruchteile eine Zahlung in
Euro, deren HoÈhe auf der Grundlage der
XETRA-Notierung am Umtauschtag
ermittelt wird. Eine solche Zahlung erfolgt
durch UÈ berweisung auf das von dem
betreffenden AnleiheglaÈubiger in der
UmtauscherklaÈrung angegebene Konto. Sollte
sich die an einen AnleiheglaÈubiger zu leistende
Zahlung insgesamt auf weniger als e 10
belaufen, ist die Emittentin nicht verp¯ichtet,
diese Zahlung zu leisten.
(c) Bei AusuÈbung des Umtauschrechts wird die
Emittentin so bald wie moÈglich, jedoch
keinesfalls spaÈter als sieben Bankarbeitstage
nach dem Umtauschtag, die Aktien uÈber
Clearstream Frankfurt, Clearstream
Luxemburg oder Euroclear entsprechend den
Angaben des AnleiheglaÈubigers in der
UmtauscherklaÈrung an den AnleiheglaÈubiger
liefern und etwaige gemaÈû § 5(2)(b)
erforderliche Zahlungen leisten. Die
Emittentin ist zur Lieferung von Aktien und
Leistung von Zahlungen an einen
AnleiheglaÈubiger, der das Umtauschrecht
ausgeuÈbt hat, nur verp¯ichtet, sofern der
betreffende AnleiheglaÈubiger etwaige Steuern
und sonstige Abgaben, die im Zusammenhang
mit der AusuÈbung des Umtauschrechts, der
Lieferung von Aktien oder einer Zahlung
durch die Emittentin gemaÈû diesem § 5
erhoben werden, gezahlt hat.
19
been validly exercised on the date (the
``Exchange Date'') on which both conditions
set forth in (i) and (ii) of this § 5(2)(a) shall
have been ful®lled, provided that (x) the
Exchange Right shall not have been validly
exercised if the receipt of the Exchange Notice
by an Exchange Agent falls within an Excluded
Period (§ 5(4)) and (y), if the day on which the
conditions set forth in (i) and (ii) of this
§ 5(2)(a) shall have been ful®lled is not a Stock
Exchange Trading Day, the Exchange Date
shall be the Stock Exchange Trading Day
immediately following such day.
(b) No fractions of Shares shall be delivered upon
exercise of the Exchange Right. To the extent
that any exercise of the Exchange Right with
respect to one or more Bonds would result in
fractions of Shares, the Issuer shall make, in
lieu of delivery of such fractions of Shares, a
cash payment in Euro based on the XETRA-
Quotation on the Exchange Date. Any such
payment shall be made by transfer to such
account as the relevant Bondholder may
specify in the Exchange Notice. If the
aggregate cash payment otherwise to be made
to a Bondholder would amount to less than
e 10, the Issuer shall be under no obligation to
make any such payment.
(c) Upon exercise of an Exchange Right, the
Issuer shall, as soon as practicable, but in any
event no later than seven Business Days after
the Exchange Date, deliver the Shares to the
Bondholder through Clearstream Frankfurt,
Clearstream Luxembourg or Euroclear, as
speci®ed in the Bondholder's Exchange
Notice, and make any cash payment required
under § 5(2)(b). The Issuer's obligation to
deliver Shares and to make any cash payment
to any Bondholder who has exercised the
Exchange Right is subject to the condition
that such Bondholder shall have paid any taxes
and other duties which are imposed in
connection with the exercise of the Exchange
Right, the delivery of Shares or any cash
payment by the Issuer under this § 5.

(3) Anpassung des Umtauschwertes. (3) Adjustments to the Exchange Price.
(a) Falls die Gesellschaft vor dem 14. September
2006 oder einem fruÈheren RuÈckzahlungstag
(i) unter GewaÈhrung eines unmittelbaren
oder mittelbaren Bezugsrechts an ihre
AktionaÈre ihr Grundkapital durch die
Ausgabe neuer Aktien gegen Einlagen
erhoÈht (``KapitalerhoÈhung gegen
Einlagen''), oder
(ii) ihr Grundkapital aus Gewinn- oder
KapitalruÈcklagen erhoÈht (``KapitalerhoÈhung
aus RuÈcklagen''), oder
(iii) ihren AktionaÈren unmittelbar oder
mittelbar ein Recht zum Bezug von
Schuldverschreibungen oder sonstigen
Wertpapieren mit oder ohne Recht zum
Bezug von Aktien einraÈumt (sofern es sich
dabei nicht um oben unter (i) und (ii)
beschriebene Bezugsrechte handelt)
(``GewaÈhrung von Bezugsrechten''),
wird der Umtauschwert nach Maûgabe der
AbsaÈtze § 5(3)(b) bis (d) angepaût; in den oben
genannten FaÈllen (i) bis (iii) erfolgt jedoch
keine Anpassung, sofern die KapitalerhoÈhung
bzw. GewaÈhrung von Rechten im
Zusammenhang mit einem Aktienoptionsprogramm
oder sonstigen Aktienerwerbsprogramm
fuÈr die GeschaÈftsfuÈhrung oder fuÈr
Arbeitnehmer der Gesellschaft und/oder ihrer
verbundenen Unternehmen erfolgt.
(b) Im Falle einer KapitalerhoÈhung gegen
Einlagen wird der Umtauschwert mit dem
Wert multipliziert, der durch Anwendung der
nachstehenden Formel berechnet wird; eine
Anpassung des Umtauschwertes unterbleibt
jedoch, sofern der Umtauschwert sich infolge
der Anwendung dieser Formel erhoÈhen wuÈrde:
No E + D E + D
6 1 ± +
Nn { CPo } CPo
wobei folgendes gilt: where:
``No'' ist die Anzahl der Aktien vor der
KapitalerhoÈhung gegen Einlagen,
20
(a) In the event that prior to September 14, 2006
or any earlier date of redemption, the
Company
(i) by granting its shareholders direct or
indirect subscription rights, increases its
share capital through the issuance of new
shares against contributions (``Increase of
Share Capital Against Contributions''), or
(ii) increases its share capital out of retained
earnings or capital reserves (``Increase of
Share Capital out of Reserves''), or
(iii) grants its shareholders, directly or
indirectly, rights to subscribe bonds or
other securities with or without rights to
subscribe shares (except for subscription
rights described under (i) and (ii) above)
(``Granting of Subscription Rights''),
the Exchange Price shall be adjusted in
accordance with § 5(3)(b) through (d),
provided that in the cases (i) through (iii)
above, no adjustment shall be made if the
increase of share capital or granting of rights,
respectively, is made in connection with any
stock option programme or otherstock
ownership programme for the management or
employees of the Company and/or any of its
af®liates.
(b) In the event of an Increase of Share Capital
Against Contributions, the Exchange Price
shall be multiplied by the ®gure calculated by
applying the following formula, provided that
the Exchange Price shall not be adjusted if the
Exchange Price would be increased by applying
this formula:
No E + D E + D
6 1 ± +
Nn { CPo } CPo
``No'' is the number of Shares before the
Increase of Share Capital Against
Contributions,

``Nn'' ist die Anzahl der Aktien nach
DurchfuÈhrung der KapitalerhoÈhung gegen
Einlagen,
``Nn'' is the number of Shares after the
Increase of Share Capital Against
Contributions,
``E'' ist der Ausgabepreis der neuen Aktien, ``E'' is the issue price of the new shares,
``D'' ist der (nicht abgezinste)
Dividendennachteil der neuen Aktien, wie er
von Eurex 1 Deutschland (``Eurex 1 '')
festgestellt wird; sofern dieser bis zum
Stichtag (§ 5(3)(k)) nicht von Eurex 1
ermittelt worden ist (weil Optionen auf die
Aktien an der Eurex 1 nicht gehandelt werden
oder aus sonstigen GruÈnden), wird die
Berechnungsstelle (§ 13) den entsprechenden
Wert mit Hilfe eines international anerkannten
unabhaÈngigen SachverstaÈndigen bestimmen,
und
``CPo'' ist der Kurs der Aktie in der XETRA-
Notierung oder, falls ein solcher Kurs nicht
verfuÈgbar ist, der von der Eurex 1 fuÈr die
Anpassung von Optionen auf die Aktien
bestimmte Kurs, jeweils an dem BoÈrsentag,
der dem Stichtag (§ 5(3)(k)) unmittelbar
vorangeht.
(c) Im Falle einer KapitalerhoÈhung aus RuÈcklagen
wird der Umtauschwert mit dem Wert
multipliziert, der durch Anwendung der
nachstehenden Formel berechnet wird:
No
Nn
``No'' und ``Nn'' haben dieselbe Bedeutung wie
in § 5(3)(b).
(d) Im Falle der GewaÈhrung von Bezugsrechten
wird der Umtauschwert mit dem Wert
multipliziert, der durch Anwendung der
nachstehenden Formel berechnet wird:
CPo ± VSR
CPo
``D'' is the disadvantage (not discounted) for
dividends to which the new shares are not
entitled, as determined by Eurex 1
Deutschland (``Eurex 1 '') or, if not so
determined until the Record Date (§ 5(3)(k))
(because options on the Shares are not traded
on Eurex 1 or for any other reason), as
determined by the Calculation Agent (§ 13)
with the assistance of an independent expert of
recognized international standing, and
``CPo'' is the price of the Shares in the
XETRA-Quotation or, if such price is not
available, the price determined by Eurex 1 for
the purpose of adjustment of options on the
Shares, in each case on the Stock Exchange
Trading Day immediately prior to the Record
Date (§ 5(3)(k)).
(c) In the event of an Increase of Share Capital out
of Reserves, the Exchange Price shall be
multiplied by the ®gure calculated by
applying the following formula:
No
Nn
``No'' and ``Nn'' shall have the same meanings
as in 5(3)(b).
(d) In the event of a Granting of Subscription
Rights, the Exchange Price shall be multiplied
by the ®gure calculated by applying the
following formula:
CPo ± VSR
CPo
wobei folgendes gilt: where:
``CPo'' ist der Kurs der Aktie in der XETRA-
Notierung am Bezugsstichtag (wie nachstehend
de®niert);
21
``CPo'' is the price of the Shares in the
XETRA-Quotation on the Subscription
Record Date (as de®ned below);

``VSR'' (Wert des Bezugsrechts) bedeutet je
Aktie:
(i) der von der Eurex 1 auf der Grundlage
der Marktlage am letzten BoÈrsentag vor
Beginn des Bezugsrechtshandels
festgestellte Wert des Rechts zum Bezug
der betreffenden Wertpapiere, oder
(ii) falls ein solcher Wert von der Eurex 1
nicht bekanntgegeben wird (weil
Optionen auf die Aktien an der Eurex 1
nicht gehandelt werden oder aus sonstigen
GruÈnden), der Schluûkurs dieses
Rechts am Stichtag (§ 5(3)(k)), oder
(iii) falls ein solcher Kurs nicht verfuÈgbar ist,
der von der Berechnungsstelle unter
Heranziehung eines international
anerkannten unabhaÈngigen SachverstaÈndigen,
wenn moÈglich unter
BeruÈcksichtigung der am Stichtag
herrschenden Marktlage, bestimmte
Wert des Bezugsrechts; und
``Bezugsstichtag'' ist der dem ersten BoÈrsentag,
an dem die Aktien an der FWB ``ex
Bezugsrecht'' notiert werden, unmittelbar
vorangehende BoÈrsentag.
(e) Falls sich die Anzahl der Aktien veraÈndert,
ohne daû sich gleichzeitig die HoÈhe des
Grundkapitals aÈndert, gilt § 5(3)(c) sinngemaÈû.
(f) Falls die Gesellschaft vor dem 14. September
2006 oder einem fruÈheren RuÈckzahlungstag
ihren AktionaÈren Schuldverschreibungen,
Optionsscheine, Wandlungsrechte oder andere
VermoÈgensgegenstaÈnde ausschuÈttet, zuteilt
oder gewaÈhrt (auûer den in § 5(3)(a)
genannten FaÈllen, einer Auûerordentlichen
Dividende (§ 5(3)(g)) und einer Abspaltung
(§ 5(3)(h))) (eine ``AusschuÈttung''), wird der
Umtauschwert mit dem Wert multipliziert,
der durch Anwendung der nachstehenden
Formel berechnet wird:
CPo ± VD
CPo
22
``VSR'' (value of the subscription rights)
means, on a per share basis:
(i) the value of the right to subscribe the
relevant securities, as determined by
Eurex 1 on the basis of the market
conditions prevailing on the Stock
Exchange Trading Day before the
subscription rights commence to be
traded, or
(ii) if such value is not published by Eurex 1 ,
(because options on the Shares are not
traded on Eurex 1 or for any other
reason), the closing price of such right
on the Record Date (§ 5(3)(k)), or
(iii) in case such price is not available, the
value of the subscription right, as
determined by the Calculation Agent,
with the assistance of an independent
expert of recognized international
standing, if possible taking into account
the market conditions prevailing on the
Record Date; and
``Subscription Record Date'' is the Stock
Exchange Trading Day immediately
preceding the ®rst Stock Exchange Trading
Day on which the Shares are traded on the
FSE ``ex-subscription right''.
(e) In the event that the number of Shares is
changed without a change in the amount of the
share capital, § 5(3)(c) shall apply mutatis
mutandis.
(f) In the event that prior to September 14, 2006
or any earlier date of redemption, the
Company distributes, allots or grants to its
shareholders debt securities, warrants,
conversion rights or other assets (excluding
the events referred to in § 5(3)(a), an
Extraordinary Dividend (§ 5(3)(g)) and a
Spin-off Event (§ 5(3)(h))) (a ``Distribution''),
the Exchange Price shall be multiplied by the
®gure calculated by applying the following
formula:
CPo ± VD
CPo

wobei folgendes gilt: where:
``CPo'' ist der Kurs der Aktien in der XETRA-
Notierung am AusschuÈttungsstichtag (wie
nachstehend de®niert);
``VD'' (Wert der AusschuÈttung) bedeutet den
von der Berechnungsstelle mit Hilfe eines
international anerkannten unabhaÈngigen
SachverstaÈndigen je Aktie ermittelten
angemessenen Marktwert der
AusschuÈttung am AusschuÈttungsstichtag (wie
nachstehend de®niert); und
``AusschuÈttungsstichtag'' ist (i) der dem ersten
BoÈrsentag, an dem die Aktien an der FWB
unter Ausschluss (``ex'') des Rechts notiert
werden, das die AktionaÈre zu der
AusschuÈttung berechtigt, unmittelbar
vorausgehende BoÈrsentag, oder, falls (i) nicht
anwendbar ist, (ii) der Zeitpunkt und das
Datum fuÈr die Bestimmung der AktionaÈre,
die berechtigt sind, die AusschuÈttung zu
erhalten.
(g) Falls die Gesellschaft vor dem 14. September
2006 oder einem fruÈheren RuÈckzahlungstag
waÈhrend eines GeschaÈftsjahres einen
Gesamtbetrag an Dividenden auf ihre Aktien
ausschuÈttet, der berechnet auf der Grundlage
des arithmetischen Mittels der Kurse der
Aktien in den XETRA-Notierungen an jedem
BoÈrsentag waÈhrend des GeschaÈftsjahres, das
einer solchen Dividende oder solchen Dividenden
vorangeht, zu einem Dividendenertrag
je Aktie (ausgedruÈckt als Prozentsatz fuÈhrt, der
die Summe von 3% zuzuÈglich des
Durchschnittlichen Dividendenertrags (wie
nachstehend de®niert) uÈbersteigt (dieser
Dividendenertrag wird einschlieûlich der 3%
nachfolgend als eine ``Auûerordentliche
Dividende'' oder ``EDY'' bezeichnet), wird der
Umtauschwert mit dem Wert multipliziert, der
durch Anwendung der nachstehenden Formel
berechnet wird:
1 ± EDY + ADY 1 ± EDY + ADY
wobei folgendes gilt: where:
``ADY'' bzw. ``Durchschnittlicher Dividendenertrag''
bedeutet den durchschnittlichen
Dividendenertrag (ausgedruÈckt als
23
``CPo'' is the price of the Shares in the
XETRA-Quotation on the Distribution
Record Date (as de®ned below);
``VD'' (value of the distribution) means the fair
market value of the Distribution on the
Distribution Record Date (as de®ned below)
as determined by the Calculation Agent with
the assistance of an independent expert of
recognized international standing, calculated
on a per share basis; and
``Distribution Record Date'' is (i) the Stock
Exchange Trading Day immediately preceding
the ®rst Stock Exchange Trading Day on
which the Shares are traded on the FSE ``ex''
the right entitling a shareholder to receive the
Distribution or, if (i) is inapplicable, (ii) the
time and date for the determination of the
shareholders entitled to receive the
Distribution.
(g) In the event that prior to September 14, 2006
or any earlier date of redemption, the
Company distributes to its shareholders with
respect to any of its ®scal years an aggregate
amount of dividends on its Shares which, on a
per share basis and calculated on the basis of
the arithmetic average of the price of the
Shares in the XETRA-Quotations on each
Stock Exchange Trading Day during the ®scal
year preceding such dividend or dividends, will
result in a dividend yield (in %) that exceeds
the sum of 3% plus the Average Dividend
Yield (as de®ned below) (such dividend yield,
including the 3%, an ``Extraordinary Dividend''
or ``EDY''), the Exchange Price shall be
multiplied by the ®gure calculated by
applying the following formula:
``ADY'' or ``Average Dividend Yield'' is the
average of the dividend yields (in %, without
taking into account any corporate tax credit

Prozentsatz, ohne BeruÈcksichtigung eines
etwaigen in einer Dividende enthaltenen
KoÈrperschaftsteuerguthabens und ohne
BeruÈcksichtigung einer Dividende oder von
Dividenden (oder Teilen davon), die
Auûerordentliche Dividenden waren) jedes
der letzten fuÈnf GeschaÈftsjahre, die dem
GeschaÈftsjahr vorangingen, welches vor der
AusschuÈttung oder den AusschuÈttungen lag,
die zur Anwendung dieses § 5(3)(g) fuÈhren
(dieser Dividendenertrag wird fuÈr jedes dieser
fuÈnf GeschaÈftsjahre auf der Grundlage des
arithmetischen Mittels der Kurse der Aktien in
den XETRA-Notierungen an jedem BoÈrsentag
waÈhrend des GeschaÈftsjahres, im Hinblick auf
welches die Dividende oder Dividenden
ausgeschuÈttet wurden, berechnet (soweit
erforderlich, ist diese Berechnung unter
Heranziehung der Aktienkurse und
Dividenden der vormaligen VEBA AG, bevor
diese in E.ON AG um®rmiert hat,
durchzufuÈhren)); und
``Dividendenstichtag'' ist der dem ersten
BoÈrsentag, an dem die Aktien an der FWB
``ex Dividende'' notiert werden, unmittelbar
vorangehende BoÈrsentag.
(h) Falls die Gesellschaft ihren AktionaÈren einen
Anteil am Kapital verbriefende Wertpapiere
eines anderen Emittenten als der Gesellschaft
(die ``Abspaltungs-Wertpapiere'') gewaÈhrt oder
gewaÈhren laÈût (eine ``Abspaltung''), wird die
Emittentin mit Hilfe eines international
anerkannten unabhaÈngigen SachverstaÈndigen
eine der folgenden MoÈglichkeiten waÈhlen:
(i) wenn die Abspaltungs-Wertpapiere an
einer anerkannten BoÈrse oÈffentlich
gehandelt werden, umfasst jede Aktie
anschlieûend die Anzahl von
Abspaltungs-Wertpapieren, zu deren
Erhalt ein AnleiheglaÈubiger berechtigt
gewesen waÈre, wenn er das
Umtauschrecht unmittelbar vor dem
AusschuÈttungsstichtag dieser Abspaltung
ausgeuÈbt haÈtte;
(ii) der Umtauschwert wird durch
Anwendung der Formel gemaÈû § 5(3)(f)
angepaût;
(iii) innerhalb von fuÈnf BoÈrsentagen nach dem
``ex'' Tag dieser Abspaltung liefert die
Emittentin jedem AnleiheglaÈubiger die
24
inherent in any dividend and without taking
into account any dividend or dividends (or
portion thereof) that constituted
Extraordinary Dividends) of each of the last
®ve ®scal years which preceded the ®scal year
preceding the distribution or distributions
giving rise to the application of this § 5(3)(g)
(such dividend yield calculated for each of
those ®ve ®scal years on the basis of the
arithmetic average of the price of the Shares in
the XETRA-Quotations on each Stock
Exchange Trading Day during the ®scal year
in respect of which the dividend or dividends
were distributed (to the extent necessary, such
calculation to be made using the share price
and dividends of the former VEBA AG prior
to its name change to E.ON AG)); and
``Dividend Record Date'' is the Stock Exchange
Trading Day immediately preceding the ®rst
Stock Exchange Trading Day on which the
Shares are traded on the FSE ``ex-dividend''.
(h) If the Company distributes, or causes to be
distributed, to its shareholders (a ``Spin-off
Event'') equity securities of an issuer other than
the Company (the ``Spin-off Securities''), then
the Issuer shall, with the assistance of an
independent expert of recognized international
standing, select one of the following options:
(i) if the Spin-off Securities are publicly
traded on a recognized exchange, each
Share shall thereafter comprise the
number of Spin-off Securities that a
Bondholder would have been entitled to
receive had the Bondholder exercised the
Exchange Right immediately prior to the
Distribution Record Date of such Spinoff
Event;
(ii) the Exchange Price shall be adjusted by
applying the formula set forth in § 5(3)(f);
(iii) within ®ve Stock Exchange Trading Days
after the ``ex'' date of such Spin-off Event,
the Issuer shall deliver to each

Anzahl von Abspaltungs-Wertpapieren,
zu deren Erhalt ein AnleiheglaÈubiger
berechtigt gewesen waÈre, wenn er das
Umtauschrecht unmittelbar vor dem
AusschuÈttungsstichtag dieser Abspaltung
ausgeuÈbt haÈtte; oder
(iv) innerhalb von fuÈnf BoÈrsentagen nach dem
``ex'' Tag dieser Abspaltung zahlt die
Emittentin jedem AnleiheglaÈubiger einen
Barbetrag, der sich aus (x) der Anzahl der
Abspaltungs-Wertpapiere, zu deren
Erhalt ein AnleiheglaÈubiger berechtigt
gewesen waÈre, wenn er das
Umtauschrecht unmittelbar vor dem
AusschuÈttungsstichtag dieser Abspaltung
ausgeuÈbt haÈtte, multipliziert mit (y) dem
von der Berechnungsstelle mit Hilfe eines
international anerkannten unabhaÈngigen
SachverstaÈndigen am letzten BoÈrsentag
vor dem AusschuÈttungsstichtag dieser
Abspaltung bestimmten angemessenen
Marktwert der Abspaltungs-Wertpapiere
je Aktie ergibt.
(i) Falls die Gesellschaft oder ein Dritter vor dem
14. September 2006 oder einem fruÈheren
RuÈckzahlungstag eine nicht in diesem § 5(3)
genannte Maûnahme in bezug auf das Kapital
oder die VermoÈgensgegenstaÈnde der
Gesellschaft ergreift und diese Maûnahme
nach Auffassung der Berechnungsstelle einen
erheblichen nachteiligen Ein¯uû auf die
Interessen der AnleiheglaÈubiger hat, wird die
Berechnungsstelle den Umtauschwert nach
billigem Ermessen (§ 317 BGB) anpassen oder
in diesem Zusammenhang andere
Anpassungen mit dem Ziel vornehmen,
denjenigen Wert der Teilschuldverschreibungen
zu erhalten, den sie vermutlich
haÈtten, wenn das die Anpassung erfordernde
Ereignis nicht eingetreten waÈre.
(j) Anpassungen nach Maûgabe der vorstehenden
Bestimmungen sind von der Berechnungsstelle
vorzunehmen und gemaÈû § 11
bekanntzumachen. Der nach Maûgabe der
vorstehenden Bestimmungen berechnete
Umtauschwert wird auf die vierte
Dezimalstelle gerundet, wobei 0,00005
aufgerundet werden. Die Berechnungsstelle ist
berechtigt, nach vernuÈnftigem Ermessen und
nach vorheriger Abstimmung mit der
25
Bondholder the number of Spin-off
Securities that a Bondholder would have
been entitled to receive had the
Bondholder exercised the Exchange
Right immediately prior to the
Distribution Record Date of such Spinoff
Event; or
(iv) within ®ve Stock Exchange Trading Days
after the ``ex'' date of such Spin-off Event,
the Issuer shall pay to each Bondholder a
cash amount calculated by multiplying (x)
the number of Spin-off Securities that a
Bondholder would have been entitled to
receive had the Bondholder exercised the
Exchange Right immediately prior to the
Distribution Record Date of such Spinoff
Event by (y) the fair market value of
the Spin-off Securities on a per-share
basis, as determined by the Calculation
Agent with the assistance of an
independent expert of recognized
international standing, on the last Stock
Exchange Trading Day prior to the
Distribution Record Date of such Spinoff
Event.
(i) If the Company or a third party adopts a
measure not contemplated in this § 5(3) in
relation to the capital or assets of the Company
at any time prior to September 14, 2006 or any
earlier date of redemption which has, in the
opinion of the Calculation Agent, a signi®cant
adverse impact on the position of the
Bondholders, the Calculation Agent shall
adjust the Exchange Price in its own
reasonable discretion (§ 317 of the German
Civil Code) or make other adjustments in this
connection with the aim to maintain the value
of the Bonds, which they would presumably
have in the absence of the event leading to such
adjustment.
(j) Adjustments in accordance with the foregoing
clauses shall be calculated by the Calculation
Agent and published in accordance with § 11.
The Exchange Price determined in accordance
with the preceding provisions shall be rounded
to the fourth decimal place, with 0.00005 being
rounded upwards. The Calculation Agent may
in its reasonable discretion and after prior
consultation with the Issuer, obtain, and rely
on, the advice of any lawyers or other

Emittentin den Rat von AnwaÈlten oder
anderen international anerkannten unabhaÈngigen
SachverstaÈndigen (z.B. einer
Investmentbank) einzuholen und dementsprechend
zu handeln. Die Berechnungsstelle
haftet gegenuÈber der Emittentin, der
Garantin (§ 8) oder den AnleiheglaÈubigern
nicht, soweit sie in gutem Glauben
Maûnahmen im Vertrauen auf eine solche
Beratung durchgefuÈhrt oder unterlassen und
dabei mit der Sorgfalt eines ordentlichen
Kaufmanns gehandelt hat.
(k) Anpassungen gemaÈû § 5(3)(b) bis (d) und (f) bis
(h) werden mit Beginn des ersten BoÈrsentages
wirksam, an dem die Aktien an der FWB ``ex
Bezugsrecht'', ``ex Dividende'', ``ex
Gratisaktien'' oder ``ex'' anderer Rechte
gehandelt werden (``Stichtag''). Anpassungen
gemaÈû Absatz § 5(3)(e) werden mit Beginn des
ersten BoÈrsentages wirksam, an dem die Aktien
unter BeruÈcksichtigung der geaÈnderten
Aktienzahl notiert werden. Anpassungen
gemaÈû § 5(3)(i) werden mit Beginn des Tages
wirksam, der von der Berechnungsstelle gemaÈû
§ 5(3)(i) als Wirksamkeitstag bestimmt wird.
(l) Falls Anpassungen des Umtauschwertes
aufgrund mehrerer der in den vorstehenden
AbsaÈtzen § 5(3)(a) bis (i) genannten FaÈllen
erforderlich werden und der Wirksamkeitstag
fuÈr derartige Anpassungen (§ 5(3)(k)) auf
denselben Tag faÈllt, sind die Anpassungen in
folgender Reihenfolge vorzunehmen: zuerst
gemaÈû § 5(3)(a), danach gemaÈû § 5(3)(b),
danach gemaÈû § 5(3)(c), danach gemaÈû
§ 5(3)(d), danach gemaÈû § 5(3)(e), danach
gemaÈû § 5(3)(f), danach gemaÈû § 5(3)(g),
danach gemaÈû § 5(3)(h) und zuletzt gemaÈû
§ 5(3)(i).
(4) NichtausuÈbungszeitraum. (4) Excluded Period.
Die AusuÈbung des Umtauschrechts ist
ausgeschlossen im Falle eines OÈ ffentlichen
UÈ bernahmeangebots (§ 6(3)) waÈhrend eines
Zeitraums (ein ``NichtausuÈbungszeitraum'')
beginnend an dem fuÈnften Bankarbeitstag vor dem
Annahmetag (§ 6(1)) bis (i) zu dem Tag, an dem die
Aktien, die Gegenstand des OÈ ffentlichen
UÈ bernahmeangebots waren, durch die Emittentin,
die Garantin (§ 8) bzw. eines ihrer verbundenen
Unternehmen, welches Aktien haÈlt, wirksam an den
26
independent experts of recognized
international standing (e.g., of an investment
bank). The Calculation Agent shall not be
liable vis-a-vis the Issuer, the Guarantor (§ 8)
or any Bondholder in respect of any action
taken or failed to be taken by it in reliance on
such advice in good faith and in the exercise of
the due care of a proper merchant.
(k) Adjustments in accordance with § 5(3)(b)
through (d) and (f) through (h) shall become
effective as of the beginning of the ®rst Stock
Exchange Trading Day on which the Shares
are traded on the FSE ``ex-subscription
rights'', ``ex-dividend'', ``ex-bonus shares'' or
``ex'' any other right (``Record Date'').
Adjustments in accordance with § 5(3)(e) shall
become effective as of the beginning of the ®rst
Stock Exchange Trading Day on which prices
are quoted taking account of such change of
the number of Shares. Adjustments in
accordance with § 5(3)(i) shall become
effective as of the beginning of the date
determined as the effective date by the
Calculation Agent pursuant to § 5(3)(i).
(l) If adjustments of the Exchange Price are
required under more than one of § 5(3)(a)
through (i), and the effective date for such
adjustments (§ 5(3)(k)) falls on the same date,
such adjustments shall be made by applying,
®rst, the provisions of § 5(3)(a), second, the
provisions of § 5(3)(b), third, the provisions of
§ 5(3)(c), fourth, the provisions of § 5(3)(d),
®fth, the provisions of § 5(3)(e), sixth, the
provisions of § 5(3)(f), seventh, the provisions
of § 5(3)(g), eighth, the provisions of § 5(3)(h),
and ®nally the provisions of § 5(3)(i).
The exercise of the Exchange Right shall be
excluded in the case of a Public Offer (§ 6(3))
during a period (an ``Excluded Period'') between the
date that falls ®ve Business Days prior to the
Acceptance Date (§ 6(1)) and the later of (i) the date
on which the Shares that were subject to the Public
Offer are validly transferred by the Issuer, the
Guarantor (§ 8) or any af®liate holding Shares, as
the case may be, to the offeror and (ii) the date on
which the Issuer publishes pursuant to § 6(1)(i) that

Anbieter uÈbertragen worden sind bzw. (ii) zu dem
Tag, an dem die Emittentin gemaÈû § 6(1)(i)
bekanntgibt, daû die Emittentin, die Garantin
bzw. das betreffende verbundene Unternehmen
das OÈ ffentliche UÈ bernahmeangebot nicht
angenommen hat oder daû das OÈ ffentliche
UÈ bernahmeangebot nicht erfolgreich war, je
nachdem, welches Ereignis spaÈter eintritt, mit der
EinschraÈnkung, daû die AusuÈbung des
Umtauschrechts nicht waÈhrend der letzten fuÈnf
Bankarbeitstage der Umtauschfrist ausgeschlossen
ist.
the Issuer, the Guarantor or such af®liate, as the
case may be, has not accepted the Public Offer or
that the Public Offer was unsuccessful, provided
that the exercise of the Exchange Right shall not be
excluded during the last ®ve Business Days of the
Exchange Period.
(5) Barzahlung anstelle der Lieferung von Aktien. (5) Cash Payment in lieu of Delivery of Shares
Die Emittentin ist jederzeit berechtigt, nach
vorheriger Bekanntmachung gemaÈû § 11
gegenuÈber der Umtauschstelle und den
AnleiheglaÈubigern mit einer Frist von sieben
Bankarbeitstagen statt Lieferung der in § 5(1)(b)
bestimmten Anzahl von Aktien (vorbehaltlich einer
Anpassung des Umtauschwertes) oder eines Teils
davon die Zahlung eines Barbetrags in Euro zu
waÈhlen, sofern der infolge der wirksamen AusuÈbung
des Umtauschrechts durch die jeweiligen
AnleiheglaÈubiger maûgebliche Umtauschtag auf
oder nach den Tag faÈllt, der in der
Bekanntmachung als Wirksamkeitstag fuÈr die
AusuÈbung des Wahlrechts bestimmt ist, und der
vor dem Wirksamkeitstag eines Widerrufs oder
einer AÈ nderung der AusuÈbung des Wahlrechts
(wie nachstehend geregelt) liegt. Der auf jede
Aktie zu zahlende Barbetrag errechnet sich auf der
Grundlage des arithmetischen Mittels der Kurse der
Aktien in den XETRA-Notierungen an den zehn
dem Umtauschtag folgenden BoÈrsentagen; der
Betrag ist zusaÈtzlich zu allen anderen etwaigen
BarbetraÈgen zu zahlen, welche die Emittentin den
AnleiheglaÈubigern nach einer wirksamen AusuÈbung
des Umtauschrechts schuldet. Die Zahlung dieser
BetraÈge ist so bald wie moÈglich nach Ablauf des
zehnten, auf den Umtauschtag folgenden
BoÈrsentages, in keinem Fall spaÈter als sieben
Bankarbeitstage nach diesem BoÈrsentag, auf das in
der UmtauscherklaÈrung angegebene Konto der
AnleiheglaÈubiger zu leisten. Die Emittentin kann
die AusuÈbung dieses Wahlrechts mittels
Bekanntmachung gemaÈû § 11 mit Wirkung zu dem
in der Bekanntmachung angegebenen Datum mit
einer Frist von sieben Bankarbeitstagen gegenuÈber
der Umtauschstelle und den AnleiheglaÈubigern
widerrufen oder aÈndern. Die Emittentin kann das
Wahlrecht nach freiem Ermessen beliebig oft
ausuÈben, widerrufen oder aÈndern. Falls zu
irgendeinem Zeitpunkt aus irgendeinem Grund bei
AusuÈbung des Umtauschrechts durch einen
27
The Issuer may elect from time to time upon no less
than seven Business Days' prior notice to the
Exchange Agents and to the Bondholders in
accordance with § 11, to pay to the Bondholders,
in lieu of the delivery of the number of Shares
speci®ed in § 5(1)(b) (as adjusted as a result of an
adjustment of the Exchange Price) or a portion of
such Shares to the Bondholders upon valid exercise
of the Exchange Right in respect of which the
Exchange Date falls on or after the date speci®ed as
effective date of such election in such notice and
prior to the effective date of revocation or change of
such election (as provided below), a cash amount in
Euro. The cash amount relating to each Share shall
be calculated on the basis of the arithmetic average
of the price of the Shares in the XETRA-Quotations
on each of the ten Stock Exchange Trading Days
after the Exchange Date and shall be in addition to
any other cash amounts which may be payable by
the Issuer to a Bondholder upon the valid exercise
of the Exchange Right. Payment of such amounts
shall be made as soon as practicable after the tenth
Stock Exchange Trading Day following the
Exchange Date and in any event not later than
seven Business Days after such Stock Exchange
Trading Day to the account of the Bondholder
speci®ed in the Exchange Notice. Any such election
by the Issuer may be revoked or changed upon not
less than seven Business Days' prior notice to the
Exchange Agents and to the Bondholders in
accordance with § 11 from the date speci®ed in
such revocation or change notice. The Issuer may
exercise its right to make, revoke or change an
election at any time in its sole discretion. If at any
time and for any reason Shares cannot be delivered
upon the exercise by a Bondholder of the Exchange
Right, the Issuer shall (i) promptly elect to pay a
cash amount in Euro in lieu of the delivery of Shares
in accordance with this § 5(5), (ii), if, by that time,
the Issuer has already so elected, refrain from
revoking or changing such election, and (iii), if a

AnleiheglaÈubiger Aktien nicht geliefert werden
koÈnnen, wird die Emittentin (i) unverzuÈglich nach
Maûgabe dieses § 5(5) statt der Lieferung von
Aktien die Zahlung eines Barbetrags in Euro
waÈhlen und (ii), falls die Emittentin zu diesem
Zeitpunkt ihr Wahlrecht schon entsprechend
ausgeuÈbt hat, diese Wahl nicht widerrufen oder
aÈndern, und (iii), falls ein AnleiheglaÈubiger sein
Umtauschrecht ausgeuÈbt hat und der entsprechende
Umtauschtag vor den Wirksamkeitstag fuÈr die
AusuÈbung des Wahlrechts gemaÈû (i) liegt, an
diesen AnleiheglaÈubiger statt der Lieferung von
Aktien einen Barbetrag in Euro zahlen, der gemaÈû
diesem § 5(5) Satz 2 berechnet wird.
(6) Fusionen. (6) Merger.
Falls die Gesellschaft fusioniert oder aufgespalten
wird oder eine andere Form des Unternehmenszusammenschlusses
oder der Unternehmensreorganisation
durchfuÈhrt und infolgedessen die
Aktien gegen andere Wertpapiere ausgetauscht
oder in ihrem Rechtsinhalt veraÈndert werden, ist
die Emittentin verp¯ichtet, die Aktien durch die im
Austausch fuÈr die Aktien gelieferten Wertpapiere
oder die auf diese Weise in ihrem Rechtsinhalt
veraÈnderten Aktien (jeweils die ``Ersatzwerte'') als
Gegenstand des Umtauschrechts zu ersetzen. Der
Umtauschwert fuÈr die Ersatzwerte wird bestimmt,
indem der vor Eintritt des betreffenden Ereignisses
guÈltige Umtauschwert mit dem UmtauschverhaÈltnis
der Aktien in Ersatzwerte multipliziert wird
(ausgedruÈckt als Bruch, wobei der Nenner der
Anzahl der Ersatzwerte und der ZaÈhler der Anzahl
der Aktien entspricht).
§ 6
(Schutz bei UÈ bernahmeangebot)
(1) Allgemeines. (1) General.
Im Falle eines OÈ ffentlichen UÈ bernahmeangebots
(wie nachstehend de®niert) sind die Emittentin und
die Garantin (§ 8) nach freiem Ermessen berechtigt,
das OÈ ffentliche UÈ bernahmeangebot anzunehmen
oder abzulehnen, jedoch nur in bezug auf
saÈmtliche Aktien, und nicht nur einen Teil davon.
Die Emittentin und die Garantin duÈrfen das
OÈ ffentliche UÈ bernahmeangebot nicht in bezug auf
diejenigen Aktien annehmen, die im Falle einer
wirksamen AusuÈbung des Umtauschrechts vor dem
letzten Tag des Zeitraums, innerhalb dessen das
OÈ ffentliche UÈ bernahmeangebot bedingungsgemaÈû
angenommen werden kann (der ``Annahmetag''), an
die AnleiheglaÈubiger zu liefern sind.
28
Bondholder has exercised the Exchange Right and
the Exchange Date falls before the effective date of
the election pursuant to (i), pay to such Bondholder
a cash amount in Euro in lieu of the delivery of
Shares calculated in accordance with sentence 2 of
this § 5(5).
If the Company shall merge or split-up or enter into
any other form of business combination or
reorganization, and as a result of such event the
Shares are exchanged for other shares or
reclassi®ed, the Issuer shall procure that the shares
delivered in exchange for the Shares, or the Shares
as reclassi®ed (in each case, the ``Substitute
Shares''), shall replace the Shares as the subject to
the Exchange Right. The Exchange Price for
Substitute Shares shall be determined by
multiplying the Exchange Price applicable before
the effectiveness of such event by the exchange ratio
of Shares for Substitute Shares (expressed as a
fraction, the denominator of which is the number of
Substitute Shares and the numerator of which is the
number of Shares).
§ 6
(Event Risk Protection)
In the event of a Public Offer (as de®ned below), the
Issuer and the Guarantor (§ 8) shall have absolute
discretion to accept or reject the Public Offer, but
only for all but not part of the Shares. The Issuer
and the Guarantor may not accept the Public Offer
with respect to the Shares that have to be delivered
to Bondholders upon valid exercise of the Exchange
Right prior to the last day of the period within
which the Public Offer can be accepted in
accordance with its terms (the ``Acceptance Date'').

Im Falle von zwei oder mehreren gleichzeitigen
OÈ ffentlichen UÈ bernahmeangeboten koÈnnen die
Emittentin und die Garantin irgendeines oder
keines der OÈ ffentlichen UÈ bernahmeangebote
annehmen.
Die Emittentin bzw. die Garantin hat den
AnleiheglaÈubigern gemaÈû § 11 bekanntzumachen:
(i) unmittelbar nach dem Annahmetag, ob die
Emittentin, die Garantin bzw. eines ihrer
verbundenen Unternehmen, welches Aktien
haÈlt, das OÈ ffentliche UÈ bernahmeangebot
angenommen hat und ob das OÈ ffentliche
UÈ bernahmeangebot erfolgreich war, und
(ii) nur im Falle der Annahme des OÈ ffentlichen
UÈ bernahmeangebots, sobald wie moÈglich, in
keinem Fall jedoch spaÈter als fuÈnf
Bankarbeitstage nach dem ErfuÈllungstag des
OÈ ffentlichen UÈ bernahmeangebots (wie
nachstehend de®niert), den Betrag und die
Art der Gegenleistung je Aktie, welche die
Emittentin, die Garantin bzw. ein solches
verbundenes Unternehmen erhalten hat oder
im Zusammenhang mit dem OÈ ffentlichen
UÈ bernahmeangebot zu erhalten berechtigt ist.
(2) Annahme eines OÈ ffentlichen
UÈ bernahmeangebots.
Wenn die Emittentin, die Garantin bzw. eines ihrer
verbundenen Unternehmen, das Aktien haÈlt, ein
OÈ ffentliches UÈ bernahmeangebot angenommen hat,
gelten mit Wirkung ab dem jeweiligen ErfuÈllungstag
des OÈ ffentlichen UÈ bernahmeangebots die folgenden
Bestimmungen:
(a) Im Falle eines Ausschlieûlichen Sachangebots
(wie nachstehend de®niert) erhaÈlt jeder
AnleiheglaÈubiger bei AusuÈbung des
Umtauschrechts je Teilschuldverschreibung
Angebotene Sachwerte (wie nachstehend
de®niert) in einem Umfang, der gemaÈû
folgender Formel berechnet wird:
In the event of two or more simultaneous Public
Offers, the Issuer and the Guarantor may accept
any or none of the Public Offers.
The Issuer or the Guarantor, as the case may be,
shall, in accordance with § 11, notify to the
Bondholders:
(i) its decision immediately after the Acceptance
Date, whether the Issuer, the Guarantor or any
of their af®liates holding Shares, as the case
may be, has accepted the Public Offer and
whether the Public Offer was successful, and
(ii) only in the event of acceptance of the Public
Offer, as soon as practicable but in any event
not later than ®ve Business Days after the
Public Offer Closing Date (as de®ned below),
the amount and type of consideration per
Share the Issuer, the Guarantor or such
af®liate, as the case may be, has received or is
entitled to receive in the context of the Public
Offer.
(2) Acceptance of a Public Offer.
If the Issuer, the Guarantor or any of their af®liates
holding Shares, as the case may be, has accepted a
Public Offer, the following provisions shall apply
with effect from such Public Offer Closing Date:
(a) In the event of an All Property Offer (as
de®ned below), each Bondholder shall, upon
exercise of the Exchange Right, receive per
Bond an amount of Offered Property (as
de®ned below) calculated in accordance with
the following formula:
A = E 6 Angebotenes VermoÈgen A = E 6 Offered Property
wobei folgendes gilt: where:
A = die Menge an Angebotenen Sachwerten,
die im Anschluû an das OÈ ffentliche
UÈ bernahmeangebot einem Anleihe-
A = the amount of Offered Property
deliverable to a Bondholder in respect of
each Bond upon exercise of the Exchange
glaÈubiger in bezug auf jede
Right following the Public Offer,
Teilschuldverschreibung bei AusuÈbung
des Umtauschrechts zu liefern ist,
29

E = das unmittelbar vor dem ErfuÈllungstag
des OÈ ffentlichen UÈ bernahmeangebots
guÈltige UmtauschverhaÈltnis.
(b) Im Falle eines Ausschlieûlichen Barangebots
(wie nachstehend de®niert) erhaÈlt jeder
AnleiheglaÈubiger bei AusuÈbung des
Umtauschrechts je Teilschuldverschreibung
einen Barbetrag, der gemaÈû folgender Formel
berechnet wird:
B = E x Angebotener Barbetrag + PraÈmien-
Ausgleichsbetrag
wobei folgendes gilt: where:
B = der Barbetrag, der einem AnleiheglaÈubiger
im Anschluû an das
OÈ ffentliche UÈ bernahmeangebot in bezug
auf jede Teilschuldverschreibung bei
AusuÈbung des Umtauschrechts zu zahlen
ist,
E = das unmittelbar vor dem ErfuÈllungstag
des OÈ ffentlichen UÈ bernahmeangebots
guÈltige UmtauschverhaÈltnis,
der PraÈmien-Ausgleichsbetrag wird gemaÈû
folgender Formel berechnet:
PC = K 2 6 (Kapital ± IP) 6 T
wobei folgendes gilt: where:
K = IP wenn MP _4 IP
MP
K = MP wenn MP 5 IP
IP
PC = PraÈmien-Ausgleichsbetrag je
Teilschuldverschreibung
C
E = the Exchange Ratio applicable
immediately prior to the Public Offer
Closing Date.
(b) In the event of an All Cash Offer (as de®ned
below), each Bondholder shall, upon exercise
of the Exchange Right, receive per Bond a cash
amount calculated in accordance with the
following formula:
B = E x Offered Cash + Premium
Compensation
B = the amount of cash deliverable to a
Bondholder in respect of each Bond
upon exercise of the Exchange Right
following the Public Offer,
E = the Exchange Ratio applicable
immediately prior to the Public Offer
Closing Date,
the Premium Compensation shall be calculated
according to the following formula:
PC = K 2 6 (Principal ± IP) 6 T
K = IP where MP _4 IP
MP
K = MP where MP 5 IP
IP
PC = Premium Compensation per Bond
Kapital = e 10.000 Principal = e 10,000
IP = Umtauschwert je Teilschuldverschreibung
auf der Grundlage der
Notierung der Aktien in XETRA in
der 17:30 Auktion am 4. September
2001, d.h. e 8.026,66
MP = Umtauschwert je Teilschuldverschreibung
am Annahmetag, der
30
IP = Exchange value for one Bond based on
the quotation of the Shares in XETRA
in the 05:30 p.m. auction on September
4, 2001, i.e. e 8,026.66
MP = Exchange value for one Bond on the
Acceptance Date, equal to the product
C

dem Produkt aus E und dem
arithmetischen Mittel der Kurse der
Aktien in den XETRA-Notierungen an
den fuÈnf BoÈrsentagen vor dem und
einschlieûlich des Annahmetags
entspricht
C = Dauer in Tagen vom 14. September
2001 bis einschlieûlich zu dem Tag,
an dem die Emittentin ihre
Option ausuÈben kann, die
Teilschuldverschreibungen gemaÈû
§ 3(3)(a) vor EndfaÈlligkeit in bar
zuruÈckzuzahlen
T = Dauer in Tagen vom Annahmetag bis
einschlieûlich zu dem Tag, an dem die
Emittentin ihre Option ausuÈben kann,
die Teilschuldverschreibungen gemaÈû
§ 3(3)(a) vor EndfaÈlligkeit in bar
zuruÈckzuzahlen.
(c) Im Falle eines Teilweisen Barangebots (wie
nachstehend de®niert) erhaÈlt jeder
AnleiheglaÈubiger bei AusuÈbung des
Umtauschrechts je Teilschuldverschreibung
(i) in bezug auf die in dem Angebot
enthaltenen Angebotenen Sachwerte
Angebotene Sachwerte in einem Umfang, der
gemaÈû § 6(2)(a) berechnet wird, und (ii) in
bezug auf den in dem Angebot enthaltenen
Angebotenen Barbetrag einen Barbetrag, der
gemaÈû § 6(2)(b) berechnet wird.
of E and the arithmetic average of the
price of the Shares in the XETRA-
Quotations on each of the ®ve Stock
Exchange Trading Days preceding, and
including, the Acceptance Date
C = Duration in days from September 14,
2001 to, and including, the date on
which the Issuer may exercise its option
to redeem the Bonds in cash prior to
maturity pursuant to § 3(3)(a)
T = Duration in days from the Acceptance
Date to, and including, the date on
which the Issuer may exercise its option
to redeem the Bonds in cash prior to
maturity pursuant to § 3(3)(a).
(c) In the event of a Partly Cash Offer (as de®ned
below), each Bondholder shall, upon exercise
of the Exchange Right, receive per Bond (i) as
regards the Offered Property comprised in the
offer an amount of Offered Property
calculated in accordance with § 6(2)(a) and
(ii) as regards the Offered Cash Amount
comprised in the offer an amount of Offered
Cash calculated in accordance with § 6(2)(b).
(3) De®nitionen. (3) De®nitions.
Im Sinne dieses § 6 bedeutet: For the purposes of this § 6:
``Angebotener Barbetrag'' den von der Emittentin,
der Garantin bzw. einem ihrer verbundenen
Unternehmen, das Aktien haÈlt, als Gegenleistung
fuÈr eine Aktie in dem OÈ ffentlichen
UÈ bernahmeangebot erhaltenen Barbetrag in Euro
(oder, soweit anwendbar, den zu einem Kurs, den
die EuropaÈische Zentralbank am Tag des Erhalts
dieses Barbetrags festgelegt hat und der von Reuters
auf Seite ECB37 gegen 11 Uhr (Frankfurter Zeit)
veroÈffentlicht wird, in Euro umgerechneten Betrag).
Falls die Angebotenen Sachwerte Wertpapiere
umfassen, die keine Aktien sind, wie zum Beispiel
nicht auf die AÈ nderung des Kurses von Aktien
bezogene Schuldverschreibungen oder Schuldverschreibungen,
die nicht durch Umwandlung,
Umtausch oder RuÈckerstattung Bezugsrechte fuÈr
Aktien gewaÈhren, Wertpapiere, die OptionsvertraÈge
oder bestimmte Rechte beinhalten (Optionsscheine
31
``Offered Cash'' means the cash amount received by
the Issuer, the Guarantor or any of their af®liates
holding Shares, as the case may be, in Euro (or,
where applicable, as converted into Euro at the rate
®xed by the European Central Bank on the date of
receipt of such cash amount, as published on
Reuters page ECB37 at around 11 hours
(Frankfurt time)) as consideration for one Share
in the Public Offer. If the Offered Property
comprises securities which are not shares, such as
debt instruments not linked to the variation of a
share price or debt instruments not giving rights to
subscribe for shares by way of conversion, exchange
or reimbursement, securities representing optional
contracts or speci®c rights (warrants to subscribe or
acquire shares or other securities) having a limited
duration, such securities will be deemed, for the
purpose of § 6(2), to be Offered Cash for an amount

zur Zeichnung oder zum Erwerb von Aktien oder
sonstigen Wertpapieren) mit einer beschraÈnkten
Dauer, werden diese Wertpapiere fuÈr die Zwecke
von § 6(2) als Angebotener Barbetrag behandelt in
HoÈhe des von der Berechnungsstelle (§ 13) auf der
Grundlage des am Annahmetag veroÈffentlichten
letzten Kurses der Wertpapiere an der BoÈrse, an der
sie gehandelt werden, bestimmten Barwertes oder,
falls sie nicht an einer BoÈrse gehandelt werden, in
HoÈhe des von der Berechnungsstelle mit Hilfe eines
international anerkannten unabhaÈngigen
SachverstaÈndigen ermittelten theoretischen Wertes.
``Angebotene Sachwerte'' jegliche Gegenleistung,
welche die Emittentin, die Garantin bzw. eines
ihrer verbundenen Unternehmen fuÈr eine Aktie
erhaÈlt und die kein Angebotener Barbetrag ist.
``Ausschlieûliches Barangebot'' ein OÈ ffentliches
UÈ bernahmeangebot, bei dem die Emittentin, die
Garantin bzw. eines ihrer verbundenen
Unternehmen ausschlieûlich Angebotene
BarbetraÈge als Gegenleistung fuÈr die Aktien erhaÈlt.
``Ausschlieûliches Sachangebot'' ein OÈ ffentliches
UÈ bernahmeangebot, bei dem die Emittentin, die
Garantin bzw. eines ihrer verbundenen
Unternehmen ausschlieûlich Angebotene
Sachwerte als Gegenleistung fuÈr die Aktien erhaÈlt.
``ErfuÈllungstag des OÈ ffentlichen UÈ bernahmeangebots''
der Tag, an dem die Emittentin, die
Garantin bzw. eines ihrer verbundenen
Unternehmen die Gegenleistung fuÈr die Aktien
erhaÈlt.
``OÈ ffentliches UÈ bernahmeangebot'' jegliches
Angebot (einschlieûlich eines Angebots der
Gesellschaft, welches sich an die Inhaber der
Aktien richtet, Aktien zu erwerben, insbesondere
ein UÈ bernahmeangebot, das dem UÈ bernahmekodex,
deutschen Gesetzen oder sonstigen
anwendbaren Bestimmungen unterliegt).
``Teilweises Barangebot'' ein OÈ ffentliches
UÈ bernahmeangebot, bei dem die Emittentin, die
Garantin bzw. eines ihrer verbundenen
Unternehmen sowohl Angebotene BarbetraÈge als
auch Angebotene Sachwerte als Gegenleistung fuÈr
die Aktien erhaÈlt.
``UmtauschverhaÈltnis'' e 10.000 dividiert durch den
im jeweiligen Zeitpunkt guÈltigen Umtauschwert.
32
equal to their cash value in Euro determined by the
Calculation Agent (§ 13) on the basis of their ®nal
price quoted on the Acceptance Date on the stock
exchange on which they are listed or, if they are not
listed, equal to their theoretical value calculated by
the Calculation Agent with the assistance of an
independent expert of recognized international
standing.
``Offered Property'' means any consideration
received by the Issuer, the Guarantor or any of
their af®liates, as the case may be, as consideration
for one Share which is not Offered Cash.
``All Cash Offer'' means a Public Offer where the
Issuer, the Guarantor or any of their af®liates, as
the case may be, receives exclusively Offered Cash
as consideration for the Shares.
``All Property Offer'' means a Public Offer where
the Issuer, the Guarantor or any of their af®liates,
as the case may be, receives exclusively Offered
Property as consideration for the Shares.
``Public Offer Closing Date'' means the day on
which the consideration for the Shares has been
received by the Issuer, the Guarantor or any of their
af®liates, as the case may be.
``Public Offer'' means any offer (including an offer
by the Company which is addressed to the holders
of Shares to acquire Shares, in particular a takeover
bid of a kind that is subject to the German
Takeover Code (UÈ bernahmekodex), German
statutory rules or any other applicable regulations).
``Partly Cash Offer'' means a Public Offer where the
Issuer, the Guarantor or any of their af®liates, as
the case may be, receives Offered Cash as well as
Offered Property as consideration for the Shares.
``Exchange Ratio'' means e 10,000 divided by the
then applicable Exchange Price.

§ 7
(Status; NegativerklaÈrung der Emittentin)
(1) Status der Teilschuldverschreibungen. (1) Status of the Bonds.
Die Teilschuldverschreibungen begruÈnden
unbesicherte und nicht nachrangige
Verp¯ichtungen der Emittentin, die im gleichen
Rang mit allen anderen gegenwaÈrtigen und
zukuÈnftigen unbesicherten und nicht nachrangigen
Verbindlichkeiten der Emittentin stehen.
(2) NegativerklaÈrung. (2) Negative Pledge.
Die Emittentin verp¯ichtet sich, solange bis Kapital
und Zinsen sowie etwaige weitere auf die
Teilschuldverschreibungen zahlbare BarbetraÈge an
die Zahlstellen (§ 13) gezahlt und alle
Verp¯ichtungen zur Lieferung von Aktien oder
sonstigen VermoÈgenswerten erfuÈllt worden sind,
keine Sicherheiten an ihren VermoÈgensgegenstaÈnden
zur Besicherung gegenwaÈrtiger oder
zukuÈnftiger Kapitalmarktverbindlichkeiten (wie
nachstehend de®niert) einschlieûlich hierfuÈr
abgegebener Garantien zu bestellen, es sei denn,
daû die Teilschuldverschreibungen gleichzeitig und
im gleichen Rang an dieser Sicherheit anteilig
teilnehmen oder den AnleiheglaÈubigern eine
andere Sicherheit gewaÈhrt wird, die von einer
international anerkannten unabhaÈngigen
WirtschaftspruÈfungsgesellschaft als gleichwertige
Sicherheit anerkannt wird. Die Verp¯ichtung
gemaÈû vorstehendem Satz ®ndet keine Anwendung
auf eine Sicherheit, (i) deren Bestellung nach
geltendem Recht zwingend ist oder (ii) die zur
Erlangung einer staatlichen Genehmigung
erforderlich ist. Eine Sicherheit, die gemaÈû dem
ersten Satz dieses § 7(2) zu leisten ist, kann auch
zugunsten einer Person bestellt werden, die als
TreuhaÈnder (wie nachstehend de®niert) der
AnleiheglaÈubiger handelt. ``Kapitalmarktverbindlichkeit''
ist jede gegenwaÈrtige oder zukuÈnftige
Verp¯ichtung zur RuÈckzahlung aufgenommener
GeldbetraÈge durch die Emittentin, die Garantin
(§ 8) oder Dritte, die durch Schuldverschreibungen
oder sonstige Wertpapiere mit einer Anfangslaufzeit
von mehr als einem Jahr, die an einer BoÈrse oder an
einem anderen anerkannten Wertpapiermarkt
zugelassen, notiert oder gehandelt werden oder
werden koÈnnen, verbrieft oder verkoÈrpert ist.
``TreuhaÈnder'' ist eine Bank, ein Finanzinstitut,
eine WirtschaftspruÈfungs- oder Steuerberatungsgesellschaft
von international anerkanntem Rang,
die fuÈr die AnleiheglaÈubiger nach Ernennung durch
die Emittentin und mit Zustimmung der
Hauptzahlstelle (§ 13) treuhaÈnderisch handelt.
33
§ 7
(Status; Negative Pledge of the Issuer)
The Bonds constitute unsecured and
unsubordinated obligations of the Issuer which
shall rank at least pari passu with all other present
or future unsecured and unsubordinated obligations
of the Issuer.
The Issuer undertakes until such time as principal
and interest, as well as any other cash amounts
payable under or in respect of the Bonds have been
paid to the Paying Agents (§ 13) and all obligations
to deliver Shares or other property have been
ful®lled, not to provide any security upon its
assets for any present or future Capital Market
Indebtedness (as de®ned below), including any
guarantee in respect thereof, unless the Bonds at
the same time share pari passu and pro rata in such
security or unless such other security, as shall have
been approved by an independent accounting ®rm
of recognized international standing as being
equivalent security, has been made available to the
Bondholders. The undertaking pursuant to the
preceding sentence shall not apply to a security
(i) which is mandatory according to applicable laws,
or (ii) which is a prerequisite for governmental
approvals. Any security which is to be provided
pursuant to the ®rst sentence of this § 7(2) may also
be provided to a person acting as Trustee (as de®ned
below) for the Bondholders. ``Capital Market
Indebtedness'' means any present or future
obligation for the repayment of borrowed money
of the Issuer, the Guarantor (§ 8) or any third party,
which is in the form of, or represented or evidenced
by, bonds, notes or other securities with an original
maturity of more than one year which are, or are
capable of being, quoted, listed, dealt in or traded
on a stock exchange or other recognized securities
market. ``Trustee'' means a bank, ®nancial
institution, auditing or accounting ®rm of
recognized international standing acting as trustee
for the Bondholders, as appointed by the Issuer
with the consent of the Principal Paying Agent
(§ 13).

§ 8
(Garantie und NegativerklaÈrung der Garantin)
§ 8
(Guarantee and Negative Pledge of the Guarantor)
(1) Garantie und NegativerklaÈrung. (1) Guarantee and Negative Pledge.
GemaÈû einer Verp¯ichtungserklaÈrung vom
12. September 2001 (die ``Verp¯ichtungserklaÈrung'')
hat ERGO Versicherungsgruppe Aktiengesellschaft,
DuÈsseldorf (die ``Garantin''):
(a) unbedingt und unwiderru¯ich die
ordnungsgemaÈûe Zahlung von Kapital und
Zinsen auf die Teilschuldverschreibungen
sowie aller sonstigen etwaigen von der
Emittentin gemaÈû diesen Anleihebedingungen
zahlbaren BetraÈge garantiert, und
(b) unbedingt und unwiderru¯ich die Lieferung
der Aktien und der sonstigen VermoÈgenswerte
garantiert, die gemaÈû diesen
Anleihebedingungen zu liefern sind ((a) und
(b) zusammen die ``Garantie''), und
(c) sich gegenuÈber den AnleiheglaÈubigern
verp¯ichtet, solange bis Kapital und Zinsen
sowie etwaige weitere auf die Teilschuldverschreibungen
zahlbare BarbetraÈge an die
Zahlstellen (§ 13) gezahlt und alle
Verp¯ichtungen zur Lieferung von Aktien
oder sonstigen VermoÈgenswerten erfuÈllt
worden sind, keine Sicherheiten an ihren
VermoÈgensgegenstaÈnden zur Besicherung
gegenwaÈrtiger oder zukuÈnftiger Kapitalmarktverbindlichkeiten
einschlieûlich hierfuÈr
abgegebener Garantien zu bestellen, es sei
denn, daû die Teilschuldverschreibungen
gleichzeitig und im gleichen Rang an dieser
Sicherheit anteilig teilnehmen oder den
AnleiheglaÈubigern eine andere Sicherheit
gewaÈhrt wird, die von einer international
anerkannten unabhaÈngigen WirtschaftspruÈfungsgesellschaft
als gleichwertige
Sicherheit anerkannt wird. Die Verp¯ichtung
gemaÈû vorstehendem Satz ®ndet keine
Anwendung auf eine Sicherheit, (i) deren
Bestellung nach geltendem Recht zwingend ist
oder (ii) die zur Erlangung einer staatlichen
Genehmigung erforderlich ist. Eine Sicherheit,
die gemaÈû dem ersten Satz dieses § 8(1)(c) zu
leisten ist, kann auch zugunsten einer Person
bestellt werden, die als TreuhaÈnder der
AnleiheglaÈubiger handelt.
34
Pursuant to an undertaking dated September 12,
2001 (the ``Undertaking''), ERGO Versicherungsgruppe
Aktiengesellschaft, DuÈsseldorf, Federal
Republic of Germany (the ``Guarantor''):
(a) has unconditionally and irrevocably
guaranteed the due payment of principal of,
and interest on, the Bonds and all other
amounts, if any, payable by the Issuer under
these Conditions of Issue, and
(b) has unconditionally and irrevocably
guaranteed the delivery of the Shares and any
other property to be delivered under these
Conditions of Issue ((a) and (b) together, the
``Guarantee''), and
(c) has undertaken towards the Bondholders, until
such time as principal and interest, as well as
any other cash amounts payable under or in
respect of the Bonds, have been paid to the
Paying Agents (§ 13) and all obligations to
deliver Shares or other property have been
ful®lled, not to provide any security upon its
assets for any present or future Capital Market
Indebtedness, including any guarantee in
respect thereof, unless the Bonds at the same
time share pari passu and pro rata in such
security or unless such other security as shall
be approved by an independent accounting
®rm of recognized international standing as
being equivalent security has been made
available to the Bondholders. The
undertaking pursuant to the preceding
sentence shall not apply to a security (i) which
is mandatory according to applicable laws, or
(ii) which is a prerequisite for governmental
approvals. Any security which is to be
provided pursuant to the ®rst sentence of this
§ 8(1)(c) may also be provided to a person
acting as Trustee for the Bondholders.

(2) Vertrag zugunsten Dritter. (2) Third-Party Bene®ciary Contract.
Die Verp¯ichtungserklaÈrung stellt einen Vertrag
zugunsten der AnleiheglaÈubiger als beguÈnstigte
Dritte gemaÈû § 328(1) BGB dar, die jedem
AnleiheglaÈubiger das Recht gibt, die ErfuÈllung der
Verp¯ichtungserklaÈrung unmittelbar von der
Garantin zu verlangen und die Verp¯ichtungserklaÈrung
unmittelbar gegen die Garantin
durchzusetzen. Kopien der Verp¯ichtungserklaÈrung
sind fuÈr die AnleiheglaÈubiger bei den
GeschaÈftsstellen der Zahlstellen kostenlos
erhaÈltlich.
§ 9
(KuÈndigungsgruÈnde)
(1) KuÈndigungsgruÈnde. (1) Events of Default.
Jeder AnleiheglaÈubiger ist berechtigt, alle oder
einzelne seiner Teilschuldverschreibungen zu
kuÈndigen und deren sofortige RuÈckzahlung zum
Nennbetrag zuzuÈglich aufgelaufener Zinsen zu
verlangen, falls aus irgendeinem Grund:
(a) ein gemaÈû diesen Anleihebedingungen
geschuldeter Betrag nicht von oder im
Auftrag der Emittentin innerhalb von 15
Tagen nach dem betreffenden Zahlungstag
gezahlt wird, oder
(b) die Emittentin nicht gemaÈû diesen
Anleihebedingungen innerhalb von 30 Tagen
Aktien liefert, nachdem eine Zahlstelle (§ 13)
von einem AnleiheglaÈubiger gemaÈû § 9(2) eine
Benachrichtigung uÈber eine solche
NichterfuÈllung erhalten hat, oder
(c) die Emittentin oder die Garantin eine andere
Verp¯ichtung gemaÈû diesen Anleihebedingungen
bzw. der Verp¯ichtungserklaÈrung
nicht ordnungsgemaÈû erfuÈllt und
die NichterfuÈllung laÈnger als 60 Tage
fortdauert, nachdem eine Zahlstelle hieruÈber
von einem AnleiheglaÈubiger gemaÈû § 9(2) ein
Benachrichtigung erhalten hat, oder
(d) die Emittentin, die Garantin oder eine
Wesentliche Tochtergesellschaft eine faÈllige
Zahlungsverp¯ichtung, die sich aus einer
Kapitalmarktverbindlichkeit oder einer
Garantie oder HaftungsuÈbernahme fuÈr eine
Zahlungsverp¯ichtung aus einer Kapitalmarktverbindlichkeit
Dritter ergibt, nicht erfuÈllt und
die nicht erfuÈllten Zahlungsverp¯ichtungen
insgesamt e 20 Millionen oder den
35
The Undertaking constitutes a contract in favor of
the Bondholders as third party bene®ciaries
pursuant to § 328(1) of the German Civil Code
giving rise to the right of each Bondholder to
require performance of the Undertaking directly
from the Guarantor and to enforce the Undertaking
directly against the Guarantor. Copies of the
Undertaking are available free of charge to the
Bondholders at the of®ces of the Paying Agents.
§ 9
(Events of Default)
Each Bondholder shall be entitled to declare any or
all of its Bonds due and demand immediate
redemption thereof at their principal amount plus
accrued interest thereon in the event that, for
whatever reason:
(a) any amount due under these Conditions of
Issue has not been paid by or on behalf of the
Issuer within 15 days from the relevant
Payment Date, or
(b) the Issuer fails to deliver Shares as provided for
in these Conditions of Issue within 30 days
after a Paying Agent (§ 13) has received notice
of such failure from a Bondholder in
accordance with § 9(2), or
(c) the Issuer or the Guarantor fails to duly
perform any other obligation under these
Conditions of Issue or the Undertaking, as
the case may be, and any such failure continues
for more than 60 days after a Paying Agent has
received notice thereof from a Bondholder in
accordance with § 9(2), or
(d) the Issuer, the Guarantor or any Material
Subsidiary fails to ful®l any payment
obligation when due, arising from any
Capital Market Indebtedness or from any
guarantee or indemnity for a payment
obligation arising from any Capital Market
Indebtedness of a third party, and the total
unpaid amount exceeds e 20 million or the
equivalent in another currency, and any such

entsprechenden Gegenwert in einer anderen
WaÈhrung uÈbersteigen, und diese NichterfuÈllung
laÈnger als 30 Tage, nachdem eine
Zahlstelle hieruÈber von einem AnleiheglaÈubiger
gemaÈû § 9(2) eine Benachrichtigung erhalten
hat, fortdauert; oder, falls eine derartige
Zahlungsverp¯ichtung der Emittentin, der
Garantin bzw. einer Wesentlichen
Tochtergesellschaft aufgrund eines in der
Person der Emittentin, der Garantin oder
einer Wesentlichen Tochtergesellschaft
eingetretenen Ereignisses oder der
NichterfuÈllung einer der Bedingungen dieser
Zahlungsverp¯ichtung durch die Emittentin,
die Garantin oder eine Wesentliche
Tochtergesellschaft vorzeitig faÈllig gestellt
wird; oder, falls eine fuÈr eine derartige
Zahlungsverp¯ichtung bestellte Sicherheit
verwertet wird, oder
(e) die Emittentin, die Garantin oder eine
Wesentliche Tochtergesellschaft ihre
Zahlungen allgemein einstellt, oder
(f) die Emittentin, die Garantin oder eine
Wesentliche Tochtergesellschaft ihre
ZahlungsunfaÈhigkeit bekanntgibt, oder
(g) die Emittentin, die Garantin oder eine
Wesentliche Tochtergesellschaft in
Liquidation tritt, es sei denn, daû dies im
Zusammenhang mit einer Verschmelzung oder
einer anderen Form des Zusammenschlusses
mit einer anderen Gesellschaft oder einer
Umstrukturierung steht, bei der diese andere
oder neue Gesellschaft alle Verp¯ichtungen
und Verbindlichkeiten der Emittentin, der
Garantin oder der Wesentlichen
Tochtergesellschaft uÈbernimmt, oder
(h) ein Gericht in der Bundesrepublik Deutschland
oder einem anderen Land ein Insolvenzverfahren
oder ein aÈhnliches Verfahren in
bezug auf die VermoÈgensgegenstaÈnde der
Emittentin, der Garantin oder einer
Wesentlichen Tochtergesellschaft einleitet und
dieses Verfahren nicht innerhalb von 60 Tagen
eingestellt oder ausgesetzt wird; oder, falls die
Emittentin, die Garantin, eine Wesentliche
Tochtergesellschaft oder das Bundesaufsichtsamt
fuÈr das Versicherungswesen die
EroÈffnung eines solchen Verfahrens in bezug
auf die VermoÈgensgegenstaÈnde der Emittentin,
der Garantin oder einer Wesentlichen
Tochtergesellschaft beantragt, oder, falls die
Emittentin, die Garantin oder eine Wesentliche
Tochtergesellschaft eine allgemeine
36
failure continues for more than 30 days after a
Paying Agent has received notice thereof from
a Bondholder in accordance with § 9(2); or any
such payment obligation of the Issuer, the
Guarantor or any Material Subsidiary, as the
case may be, becomes due prematurely by
reason of the occurrence of an event relating to
the Issuer, the Guarantor or any Material
Subsidiary or a failure by the Issuer, the
Guarantor or any Material Subsidiary to
comply with any of the terms of any such
payment obligation; or a security interest
granted for any such payment obligation is
being enforced, or
(e) the Issuer, the Guarantor or any Material
Subsidiary suspends its payments generally, or
(f) the Issuer, the Guarantor or any Material
Subsidiary announces its inability to meet its
payment obligations, or
(g) the Issuer, the Guarantor or any Material
Subsidiary enters into liquidation except in
connection with a merger, consolidation or
other form of combination with another
company or in connection with a
reorganization and such other or new
company assumes all obligations and
liabilities of the Issuer, the Guarantor or such
Material Subsidiary, or
(h) a court in the Federal Republic of Germany or
any other country institutes insolvency
proceedings or similar proceedings with
respect to the assets of the Issuer, the
Guarantor or any Material Subsidiary and
such proceedings have not been discharged or
stayed within 60 days; or the Issuer, the
Guarantor, any Material Subsidiary or the
German Federal Insurance Supervisory
Authority (Bundesaufsichtsamt fuÈr das
Versicherungswesen) applies for institution of
such proceedings with respect to the assets of
the Issuer, the Guarantor or any Material
Subsidiary, or the Issuer, the Guarantor or any
Material Subsidiary offers or makes a general
arrangement for the bene®t of its creditors; or

Schuldenregelung zugunsten ihrer GlaÈubiger
anbietet oder trifft; oder
(i) es fuÈr die Emittentin oder die Garantin
unzulaÈssig wird, ihre Verp¯ichtungen im
Zusammenhang mit den Teilschuldverschreibungen
bzw. der Verp¯ichtungserklaÈrung
zu erfuÈllen.
Das Recht, die Teilschuldverschreibungen faÈllig zu
stellen, erlischt, falls der KuÈndigungsgrund vor
AusuÈbung dieses Rechts geheilt wird. Eine
``Wesentliche Tochtergesellschaft'' ist (i) eine
Tochtergesellschaft der Garantin, deren gesamte
VermoÈgensgegenstaÈnde, NettoerloÈse oder
Nettogewinn mindestens 10% der konsolidierten
gesamten VermoÈgensgegenstaÈnde, NettoerloÈse bzw.
des Nettogewinns der Garantin darstellen, wobei
die diesbezuÈglich erforderlichen Berechnungen auf
der Basis des zu diesem Zeitpunkt aktuellen
gepruÈften Jahresabschlusses dieser Tochtergesellschaft
(oder, falls verfuÈgbar, des
konsolidierten gepruÈften Jahresabschlusses) und
des zu diesem Zeitpunkt aktuellen gepruÈften
konsolidierten Jahresabschlusses der Garantin und
ihrer Tochtergesellschaften zu erfolgen haben, oder
(ii) eine Gesellschaft, auf die alle oder im
wesentlichen alle VermoÈgensgegenstaÈnde und der
GeschaÈftsbetrieb einer Tochtergesellschaft der
Garantin uÈbertragen werden, welche unmittelbar
vor dieser UÈ bertragung eine Wesentliche
Tochtergesellschaft im Sinne von (i) war.
(2) Benachrichtigung. (2) Notice.
Eine Benachrichtigung gemaÈû § 9(1) einschlieûlich
einer Benachrichtigung zum Zwecke der KuÈndigung
von Teilschuldverschreibungen ist einer Zahlstelle
in schriftlicher Form zu uÈbergeben oder mittels
eingeschriebenem Brief zuzusenden, jeweils
zusammen mit einer Bescheinigung der Depotbank
des AnleiheglaÈubigers, daû der AnleiheglaÈubiger
zum Zeitpunkt der Abgabe der schriftlichen
Benachrichtigung Inhaber der betreffenden
Teilschuldverschreibungen ist; im Falle des
Verzugs gemaÈû § 9(1)(c) sind zudem die UmstaÈnde
dazulegen, aus denen sich dieser Verzug ergibt.
(3) Wirksamkeit. (3) Effectiveness.
In den FaÈllen des § 9(1)(c) oder (d) wird eine
Benachrichtigung, durch welche die
Teilschuldverschreibungen gekuÈndigt werden, erst
wirksam, wenn bei einer Zahlstelle KuÈndigungserklaÈrungen
von Inhabern von Teilschuldverschreibungen
eingegangen sind, die insgesamt ein
37
(i) it becomes unlawful for the Issuer or the
Guarantor to ful®ll its obligations under the
Bonds or the Undertaking, as the case may be.
The right to declare Bonds due shall terminate if the
situation giving rise to it has been cured before the
right is exercised. ``Material Subsidiary'' means
(i) any subsidiary of the Guarantor whose total
assets, net revenues or net pro®ts represent at least
10% of the consolidated total assets, net revenues or
net pro®ts, as the case may be, of the Guarantor, as
calculated by reference to the then most recent
audited ®nancial statements (or, if available,
consolidated audited ®nancial statements) of such
subsidiary and the then most recent audited
consolidated ®nancial statements of the Guarantor
and its subsidiaries or (ii) to which are transferred
all or substantially all of the assets and undertaking
of a subsidiary of the Guarantor which immediately
prior to such transfer is a Material Subsidiary
pursuant to (i).
Any notice, including any notice declaring Bonds
due, in accordance with § 9(1) shall be made by
means of a written declaration delivered by hand or
registered mail to a Paying Agent together with
evidence by means of a certi®cate of the
Bondholder's depositary bank that the
Bondholder at the time of such written notice is a
holder of the relevant Bonds, and in the case of
default pursuant to § 9(1)(c), together with evidence
specifying such default.
In the event speci®ed in § 9(1)(c) or (d), any notice
declaring Bonds due shall, unless at the time such
notice is received any of the events speci®ed in
§ 9(1)(a), (b), (e), (f), (g), (h) or (i) entitling
Bondholders to declare their Bonds due has
occurred and is continuing, becomes effective only

Zehntel des Gesamtnennbetrags der zu diesem
Zeitpunkt ausstehenden Teilschuldverschreibungen
darstellen, sofern nicht bei deren Eingang zugleich
einer der in § 9(1)(a), (b), (e), (f), (g), (h) oder (i)
bezeichneten FaÈlle, der die AnleiheglaÈubiger zur
KuÈndigung ihrer Teilschuldverschreibungen
berechtigt, vorliegt und fortdauert.
§ 10
(Ersetzung der Emittentin)
(1) Ersetzung. (1) Substitution.
Die Garantin ist jederzeit berechtigt, die Emittentin
entweder durch sich selbst oder durch eine andere
Tochtergesellschaft, an der die Garantin mindestens
90% der Stimmrechte haÈlt, ohne die Zustimmung
der AnleiheglaÈubiger als Hauptschuldnerin in bezug
auf alle Verp¯ichtungen aus und im
Zusammenhang mit den Teilschuldverschreibungen
zu ersetzen (die ``Neue Emittentin''),
sofern:
(a) die Neue Emittentin alle Zustimmungen und
Genehmigungen erhalten hat und in der Lage
ist, alle sich aus oder im Zusammenhang mit
den Teilschuldverschreibungen ergebenden
Verp¯ichtungen ohne Abzug oder Einbehalt
von Steuern oder sonstigen Quellenabgaben zu
erfuÈllen sowie die hierzu erforderlichen BetraÈge
ohne BeschraÈnkungen an die Zahlstellen (§ 13)
zu uÈbertragen;
(b) die Neue Emittentin alle Verp¯ichtungen der
Emittentin aus und im Zusammenhang mit den
Teilschuldverschreibungen uÈbernimmt;
(c) die Bestimmungen von § 1.4 der
Verp¯ichtungserklaÈrung in vollem Umfang
guÈltig und wirksam bleiben, sofern die Neue
Emittentin nicht die Garantin ist; und
(d) die Neue Emittentin sich verp¯ichtet, jedem
AnleiheglaÈubiger alle Steuern, GebuÈhren oder
Abgaben zu erstatten, die ihm infolge der
UÈ bernahme der Verp¯ichtungen der
Emittentin durch die Neue Emittentin
auferlegt werden.
(2) Bekanntmachung. (2) Notice.
Jede solche Ersetzung ist den AnleiheglaÈubigern
gemaÈû § 11 bekanntzumachen.
38
when a Paying Agent has received such notices from
holders of Bonds of at least one tenth in aggregate
nominal amount of the Bonds then outstanding.
§ 10
(Substitution of the Issuer)
The Guarantor shall at any time be entitled, without
the consent of the Bondholders, to substitute the
Issuer either by itself or by another subsidiary in
which the Guarantor holds at least 90% of the
voting rights as principal debtor in respect of all
obligations arising under or in connection with the
Bonds (the ``Substitute Issuer''), provided that:
(a) the Substitute Issuer has received all
authorizations and approvals, and is in a
position, to ful®l all obligations arising under
or in connection with the Bonds without being
obliged to make any deduction or withholding
with respect to any taxes or other duties of
whatever nature to be withheld at source, and
to transfer all amounts which are required
therefor to the Paying Agents (§ 13) without
any restrictions;
(b) the Substitute Issuer assumes all obligations of
the Issuer arising under or in connection with
the Bonds;
(c) if the Substitute Issuer is not the Guarantor,
the provisions of Section 1.4 of the
Undertaking shall remain in full force and
effect; and
(d) the Substitute Issuer undertakes to reimburse
any Bondholder for such taxes, fees or duties
which may be imposed upon it as a
consequence of the assumption of the
obligations of the Issuer by the Substitute
Issuer.
Any such substitution shall be noti®ed to the
Bondholders in accordance with § 11.

(3) Bezugnahmen. (3) References.
Im Falle einer solchen Ersetzung gilt jede
Bezugnahme auf die Emittentin in diesen
Anleihebedingungen als Bezugnahme auf die Neue
Emittentin; § 8 dieser Anleihebedingungen ®ndet
auf die Garantin und ihre Verp¯ichtungen aus der
Verp¯ichtungserklaÈrung sinngemaÈû Anwendung.
§ 11
(Bekanntmachungen)
Alle Bekanntmachungen, welche die Teilschuldverschreibungen
betreffen, werden in folgenden
Zeitungen veroÈffentlicht: (a) einer von den
Bestimmungen der Luxemburger WertpapierboÈrse
anerkannten Zeitung, (b) einer in englischer Sprache
erscheinenden fuÈhrenden Tageszeitung mit
allgemeiner Verbreitung in London, und (c) einer
in deutscher Sprache erscheinenden fuÈhrenden
Tageszeitung mit allgemeiner Verbreitung in
Deutschland. Die Bekanntmachungen werden
unter normalen UmstaÈnden voraussichtlich jeweils
im Luxemburger Wort, der Financial Times und der
BoÈrsen-Zeitung erscheinen. Eine Bekanntmachung
wird fuÈr alle Zwecke am Datum der
VeroÈffentlichung in der von den Bestimmungen
der Luxemburger WertpapierboÈrse anerkannten
Zeitung wirksam.
§ 12
(Begebung weiterer Teilschuldverschreibungen)
Die Emittentin ist berechtigt, jederzeit ohne
Zustimmung der AnleiheglaÈubiger weitere
Teilschuldverschreibungen mit gleicher
Ausstattung (abgesehen von Zinsen, die vor der
Begebung weiterer Teilschuldverschreibungen faÈllig
geworden sind) in der Weise zu begeben, daû sie mit
diesen Teilschuldverschreibungen zusammengefaût
werden, eine einheitliche Anleihe bilden und den
Gesamtnennbetrag der Anleihe entsprechend
erhoÈhen. Der Begriff ``Teilschuldverschreibungen''
umfaût im Falle einer solchen ErhoÈhung auch diese
zusaÈtzlich begebenen Teilschuldverschreibungen.
§ 13
(ErfuÈllungsgehilfen)
(1) Zahlstellen, Umtauschstellen und
Berechnungsstelle.
Morgan Stanley Bank AG, Frankfurt am Main, ist
die Hauptzahlstelle (die ``Hauptzahlstelle'') und die
Hauptumtauschstelle (die ``Hauptumtauschstelle''),
und Dexia Banque International aÁ Luxembourg,
39
In the event of such substitution, any reference in
these Conditions of Issue to the Issuer shall from
then on be deemed to be references to the Substitute
Issuer and § 8 of these Conditions of Issue shall
apply mutatis mutandis to the Guarantor and its
obligations under the Undertaking.
§ 11
(Notices)
All notices regarding the Bonds shall be published
in the following journals: (a) a newspaper
recognised by the rules of the Luxembourg Stock
Exchange, (b) a leading daily newspaper printed in
the English language and of general circulation in
London, and (c) a leading daily newspaper printed
in the German language and of general circulation
in Germany. It is expected that such notices will
normally be published in the Luxemburger Wort,
the Financial Times and the BoÈrsen-Zeitung. Any
notice will become effective for all purposes on the
date of its publication in the newspaper recognised
by the rules of the Luxembourg Stock Exchange.
§ 12
(Issue of Additional Bonds)
The Issuer shall be entitled, from time to time
without the consent of the Bondholders, to issue
additional bonds with identical terms (except for
any interest due prior to such issue of additional
bonds), so that the same shall be consolidated with,
form a single issue with, and increase the aggregate
principal amount of, the Bonds. The term ``Bonds''
shall, in the event of such increase, also comprise
such additional bonds.
§ 13
(Agents)
(1) Paying Agents, Exchange Agents and
Calculation Agent.
Morgan Stanley Bank AG, Frankfurt am Main,
Federal Republic of Germany, shall be the Principal
Paying Agent (the ``Principal Paying Agent'') and
the principal exchange agent (the ``Principal

socieÂte anonyme, Luxemburg, Groûherzogtum
Luxemburg, ist die Luxemburger Zahlstelle
(zusammen mit der Hauptzahlstelle die
``Zahlstellen'') und die Luxemburger Umtauschstelle
(zusammen mit der Hauptumtauschstelle die
``Umtauschstellen''). Dexia Banque International aÁ
Luxembourg, socieÂte anonyme ist auch die
Berechnungsstelle fuÈr die Berechnung der Anzahl
der Aktien, der Bar- und/oder sonstigen Sachwerte,
die bei AusuÈbung des Umtauschrechts zu liefern
sind, und zustaÈndig fuÈr die Anpassungen und
Bestimmungen gemaÈû §§ 5 und 6 (die
``Berechnungsstelle'' und zusammen mit den
Umtauschstellen und den Zahlstellen die
``ErfuÈllungsgehilfen''). Die Berechnungsstelle ist der
einzige ErfuÈllungsgehilfe, der fuÈr die Bestimmung
der in § 5 vorgesehenen Anpassungen und fuÈr die
sonstigen in den §§ (3)(a), 5(1)(b), 5(3) und 6
vorgesehenen Bestimmungen verantwortlich ist.
Die anderen ErfuÈllungsgehilfen haben keinerlei
Verp¯ichtungen, derartige Bestimmungen
vorzunehmen. Die ErfuÈllungsgehilfen sind von den
BeschraÈnkungen des § 181 BGB und
entsprechenden etwaigen BeschraÈnkungen gemaÈû
dem Recht des Groûherzogtums Luxemburg
befreit. Die Emittentin hat dafuÈr zu sorgen, daû,
solange Teilschuldverschreibungen ausstehen,
immer eine Zahlstelle, eine Umtauschstelle und ein
ErfuÈllungsgehilfe, welcher die Funktionen der
Berechnungsstelle uÈbernimmt, im Groûherzogtum
Luxemburg zur VerfuÈgung stehen, um die ihnen in
diesen Anleihebedingungen zugewiesenen Aufgaben
zu erfuÈllen.
Exchange Agent''), and Dexia Banque
Internationale aÁ Luxembourg, socieÂte anonyme,
Luxembourg, Grand-Duchy of Luxembourg shall
be the Luxembourg paying agent (together with the
Principal Paying Agent, the ``Paying Agents'') and
the Luxembourg exchange agent (together with the
Principal Exchange Agent, the ``Exchange Agents'').
Dexia Banque Internationale aÁ Luxembourg,
socieÂte anonyme shall also be the Calculation
Agent for the purpose of calculating the number
of Shares, cash and/or other property to be
delivered upon the exercise of the Exchange Right
and of making the adjustments and determinations
referred to in §§ 5 and 6 (the ``Calculation Agent'',
and together with the Exchange Agents and the
Paying Agents, the ``Agents''). The Calculation
Agent shall be the sole Agent responsible for
determining the adjustments referred to in § 5 and
making the other determinations referred to in §§
3(3)(a), 5(1)(b), 5(3) and 6. The other Agents shall
have no obligation to make any such
determinations. The Agents shall be exempt from
the restrictions set forth in § 181 of the German
Civil Code and any equivalent restriction under the
laws of the Grand-Duchy of Luxembourg, if
applicable. The Issuer shall procure that for as
long as any Bonds are outstanding, there shall
always be a Paying Agent, an Exchange Agent and
an agent performing the functions of the
Calculation Agent in the Grand-Duchy of
Luxembourg to perform the functions assigned to
them in these Conditions of Issue.
(2) Ersetzung der ErfuÈllungsgehilfen. (2) Substitution of Agents.
Die Emittentin kann jederzeit gemaÈû § 13(2) Satz 4
durch Bekanntmachung gemaÈû § 11 mit einer Frist
von mindestens 30 Tagen einen ErfuÈllungsgehilfen
durch eine andere fuÈhrende Bank mit
HauptgeschaÈftssitz oder einer Zweigniederlassung
in der Bundesrepublik Deutschland bzw. dem
Groûherzogtum Luxemburg als Zahlstelle,
Umtauschstelle bzw. Berechnungsstelle ersetzen.
Jeder ErfuÈllungsgehilfe kann jederzeit durch
KuÈndigung mit einer Frist von mindestens 30
Tagen gegenuÈber der Emittentin und den anderen
ErfuÈllungsgehilfen von seinem Amt zuruÈcktreten.
Dieser RuÈcktritt wird jedoch fruÈhestens 30 Tage
nach einer entsprechenden Bekanntmachung der
Emittentin gemaÈû § 11 uÈber die Ernennung einer
fuÈhrenden Bank mit HauptgeschaÈftssitz oder einer
Zweigniederlassung in der Bundesrepublik
Deutschland bzw. dem Groûherzogtum
Luxemburg als neue Zahlstelle, Umtauschstelle
bzw. Berechnungsstelle wirksam.
40
The Issuer may at any time, subject to § 13(2)
sentence 4, by giving not less than 30 days notice in
accordance with § 11, replace an Agent by another
leading bank maintaining its head of®ce or a branch
in the Federal Republic of Germany or the Grand-
Duchy of Luxembourg, as the case may be, as
Paying Agent, Exchange Agent or Calculation
Agent, as the case may be. Each Agent may at
any time resign from of®ce by giving not less than
30 days' notice to the Issuer and the other Agents.
However, such resignation shall become effective
only upon the appointment by the Issuer of a
leading bank maintaining its head of®ce or a branch
in the Federal Republic of Germany or the Grand-
Duchy of Luxembourg, as the case may be, as new
Paying Agent, Exchange Agent or Calculation
Agent, as the case may be, and the giving of not
less than 30 days' notice of any such appointment in
accordance with § 11.

(3) Kein AuftragsverhaÈltnis. (3) No Relationship of Agency.
Die ErfuÈllungsgehilfen handeln in ihrer jeweiligen
Eigenschaft ausschlieûlich als ErfuÈllungsgehilfen
der Emittentin und stehen in dieser Eigenschaft
nicht in einem Auftrags- oder TreuhandverhaÈltnis
zu den AnleiheglaÈubigern.
(4) Berechnungen. (4) Calculations.
Alle von einem ErfuÈllungsgehilfen gemaÈû diesen
Anleihebedingungen getaÈtigten Bestimmungen und
Berechnungen sind fuÈr alle beteiligten Parteien
(einschlieûlich der AnleiheglaÈubiger) endguÈltig und
bindend, auûer im Falle eines offensichtlichen
Irrtums.
§ 14
(Verschiedenes)
(1) Anwendbares Recht. (1) Applicable Law.
Die Teilschuldverschreibungen unterliegen
deutschem Recht.
The Agents in such capacities are acting exclusively
as agent of the Issuer and in such capacities do not
have any relationship of agency or trust with the
Bondholders.
Any determinations and calculations made by any
Agent in accordance with these Conditions of Issue
shall be conclusive and binding on all parties
concerned (including, but not limited to, the
Bondholders), save for manifest error.
§ 14
(Miscellaneous)
The Bonds shall be governed by and construed in
accordance with German law.
(2) Gerichtsstand. (2) Place of Jurisdiction.
Gerichtsstand fuÈr alle Rechtsstreitigkeiten aus oder
im Zusammenhang mit diesen Anleihebedingungen
ist Frankfurt am Main.
Place of jurisdiction for all proceedings arising from
matters governed by these Conditions of Issue shall
be Frankfurt am Main.
(3) ErfuÈllungsort. (3) Place of Performance.
ErfuÈllungsort ist Frankfurt am Main. Place of performance shall be Frankfurt am Main.
(4) Geltendmachung von AnspruÈchen. (4) Enforcement.
Jeder AnleiheglaÈubiger kann in Rechtsstreitigkeiten
gegen die Emittentin oder die Garantin oder in
Rechtsstreitigkeiten, an denen der AnleiheglaÈubiger,
die Emittentin oder die Garantin beteiligt ist, im
eigenen Namen seine Rechte aus den von ihm
gehaltenen Teilschuldverschreibungen geltendmachen
und durchsetzen auf der Grundlage (a)
einer Bescheinigung seiner Depotbank (wie
nachstehend de®niert), (i) die den vollen Namen
und die volle Anschrift des AnleiheglaÈubigers
enthaÈlt, (ii) den Gesamtnennbetrag der
Teilschuldverschreibungen, die am Ausstellungstag
dieser Bescheinigung dem bei dieser Depotbank
unterhaltenen Depot des AnleiheglaÈubigers
gutgeschrieben sind, angibt und (iii) bestaÈtigt, daû
die Depotbank der Clearstream Frankfurt und einer
Zahlstelle (§ 13) eine schriftliche Mitteilung gemacht
hat, welche die Angaben gemaÈû (i) und (ii) enthaÈlt
und BestaÈtigungsvermerke der Clearstream
Frankfurt und des betreffenden Kontoinhabers
traÈgt, und (b) einer Kopie der Globalurkunde,
41
Any Bondholder may in any proceedings against
the Issuer or the Guarantor or to which the
Bondholder, the Issuer or the Guarantor are
parties protect and enforce in its own name its
rights arising under its Bonds on the basis of (a) a
certi®cate issued by its Depository Bank (as de®ned
below) (i) stating the full name and address of the
Bondholder, (ii) specifying the aggregate nominal
amount of Bonds credited on the date of such
statement to the Bondholder's account with such
Depository Bank and (iii) con®rming that the
Depository Bank has given a written notice to
Clearstream Frankfurt and a Paying Agent (§ 13)
containing the information pursuant to (i) and (ii)
and bearing acknowledgements of Clearstream
Frankfurt and the relevant accountholder, and (b)
a copy of the Global Certi®cate certi®ed as being a
true copy by a duly authorized of®cer of
Clearstream Frankfurt. For purposes of the
foregoing, ``Depository Bank'' means any bank or
other ®nancial institution authorized to engage in

deren UÈ bereinstimmung mit dem Original der
Globalurkunde von einem Vertretungsberechtigten
der Clearstream Frankfurt bestaÈtigt wird. Im Sinne
der vorstehenden Bestimmungen bedeutet
``Depotbank'' eine Bank oder ein anderes
Finanzinstitut mit einer Genehmigung fuÈr das
Wertpapier-DepotgeschaÈft, bei dem der
AnleiheglaÈubiger ein Wertpapierdepot unterhaÈlt,
auf dem Teilschuldverschreibungen verbucht sind;
dieser Begriff schlieût Clearstream Frankfurt,
Clearstream Luxemburg und Euroclear ein.
(5) Teilunwirksamkeit. (5) Severability.
Sollte eine der Bestimmungen dieser Anleihebedingungen
ganz oder teilweise unwirksam oder
undurchfuÈhrbar sein oder werden, so bleibt die
Wirksamkeit oder DurchfuÈhrbarkeit der uÈbrigen
Bestimmungen hiervon unberuÈhrt. In diesem Fall
soll anstelle der unwirksamen Bestimmung, soweit
rechtlich moÈglich, eine dem Sinn und
wirtschaftlichen Zweck dieser Anleihebedingungen
zum Zeitpunkt der Begebung der Teilschuldverschreibungen
entsprechende Bestimmung treten.
Sollten diese Anleihebedingungen eine LuÈcke
enthalten, ist eine ergaÈnzende Auslegung, die dem
Sinn und Zweck dieser Anleihebedingungen
entspricht, unter angemessener BeruÈcksichtigung
der berechtigten Interessen der beteiligten Parteien
vorzunehmen.
§ 15
(Sprache)
Allein der deutsche Wortlaut dieser
Anleihebedingungen ist rechtsverbindlich. Die
englische UÈ bersetzung dient nur der Information.
42
securities custody business with which the
Bondholder maintains a securities account in
respect of any Bonds and includes Clearstream
Frankfurt, Clearstream Luxembourg and
Euroclear.
Should any of the provisions of these Conditions of
Issue be or become invalid or unenforceable in
whole or in part, the validity or the enforceability of
the remaining provisions shall not in any way be
affected or impaired thereby. In this case, the
invalid provision shall be replaced by a provision
which, to the extent legally possible, provides for an
interpretation in line with the meaning and the
economic purposes of the Conditions of Issue at the
time of the issue of the Bonds. Under circumstances
in which these Conditions of Issue prove to be
incomplete, a supplementary interpretation in
accordance with the meaning and the purposes of
these Conditions of Issue under due consideration
of the legitimate interest of the parties involved shall
be applied.
§ 15
(Language)
The German version of these Conditions of Issue
shall be the only legally binding version. The
English translation is for convenience only.

CONDITIONS OF ISSUE
OF THE BONDS EXCHANGEABLE FOR AVENTIS SHARES
ANLEIHEBEDINGUNGEN CONDITIONS OF ISSUE
§1
(StuÈckelung, Verbriefung und
Girosammelverwahrung)
(1) StuÈckelung. (1) Denomination.
Die ERGO International Aktiengesellschaft,
DuÈsseldorf (die ``Emittentin''), begibt eine 0,75%
garantierte Umtauschanleihe im Gesamtnennbetrag
von
e 345.000.000 (in Worten: Euro dreihundertfuÈnfundvierzig
Millionen)
eingeteilt in 34.500 untereinander gleichrangige
Teilschuldverschreibungen mit einem Nennbetrag
von jeweils e 10.000 (die ``Teilschuldverschreibungen'').
(2) Verbriefung. (2) Form.
Die Teilschuldverschreibungen werden durch eine
auf den Inhaber lautende Globalurkunde (die
``Globalurkunde'') ohne Zinsscheine verbrieft.
Effektive Urkunden uÈber einzelne Teilschuldverschreibungen
und Zinsscheine werden
nicht ausgegeben. Eine Kopie der Globalurkunde
ist fuÈr die AnleiheglaÈubiger (jeweils ein
``AnleiheglaÈubiger'') bei den GeschaÈftsstellen der
Zahlstellen (§ 13) kostenlos erhaÈltlich.
§1
(Denomination, Form and Clearing)
ERGO International Aktiengesellschaft, DuÈsseldorf
(the ``Issuer''), issues 0.75% guaranteed
exchangeable bonds in the aggregate principal
amount of
e 345,000,000 (in words: Euro three hundred and
forty-®ve million)
divided into 34,500 bonds with a nominal amount
of e 10,000 each which rank pari passu among
themselves (the ``Bonds'').
The Bonds are represented by a global certi®cate
(the ``Global Certi®cate'') payable to bearer without
interest coupons. De®nitive certi®cates representing
individual Bonds and interest coupons shall not be
issued. A copy of the Global Certi®cate is available
to the holders of the bonds (each, a ``Bondholder'')
free of charge at the of®ces of the Paying Agents
(§ 13).
(3) Girosammelverwahrung. (3) Custody and Clearing.
Die Globalurkunde wird bis zur vollstaÈndigen
ErfuÈllung saÈmtlicher Verp¯ichtungen der
Emittentin aus den Teilschuldverschreibungen von
der Clearstream Banking AG, Frankfurt am Main
(``Clearstream Frankfurt''), verwahrt. Die
Teilschuldverschreibungen sind durch
entsprechende Depotbuchungen gemaÈû den
jeweiligen Bestimmungen von Clearstream
Frankfurt und, auûerhalb der Bundesrepublik
Deutschland, Clearstream Banking S.A.,
Luxemburg (``Clearstream Luxemburg''), und
Euroclear Bank S.A/N.V., BruÈssel (``Euroclear''),
uÈbertragbar.
§2
(Verzinsung)
The Global Certi®cate will be kept in custody with
Clearstream Banking AG, Frankfurt am Main
(``Clearstream Frankfurt''), until all obligations of
the Issuer under the Bonds have been satis®ed. The
Bonds shall be transferable by appropriate entries in
securities accounts in accordance with applicable
rules of Clearstream Frankfurt and, outside the
Federal Republic of Germany, of Clearstream
Banking S.A., Luxembourg (``Clearstream
Luxembourg''), and Euroclear Bank S.A/N.V.,
Brussels (``Euroclear'').
§2
(Interest)
(1) Zinssatz und Zinszahlungstage. (1) Interest Rate and Interest Payment Dates.
Die Teilschuldverschreibungen werden vom
14. September 2001 (der ``Ausgabetag'') an mit
einem Zinssatz von 0,75% p.a. auf den Nennbetrag
43
The Bonds shall bear interest on their principal
amount at the rate of 0.75% per annum from
September 14, 2001 (the ``Issue Date''). Interest

verzinst. Die Zinsen sind jaÈhrlich nachtraÈglich
jeweils am 14. September eines jeden Jahres zu
zahlen (jeweils ein ``Zinszahlungstag''),
beginnend am 14. September 2002. Der letzte
Zinszahlungstag ist der 14. September 2006 (sofern
nicht die Teilschuldverschreibungen zu einem
fruÈheren Zeitpunkt zuruÈckgezahlt oder
umgetauscht werden). Der Zinslauf endet mit
Beginn des Tages, an dem die
Teilschuldverschreibungen zur RuÈckzahlung faÈllig
werden, oder, bei AusuÈbung des Umtauschrechts
(§ 5(1)(a)), mit Beginn des dem Umtauschtag
(§ 5(2)(a)) unmittelbar vorangehenden
Zinszahlungstages bzw. des Ausgabetages, sofern
es bis dahin keinen Zinszahlungstag gegeben hat.
(2) Verzug. (2) Late Payment.
Sofern die Emittentin Teilschuldverschreibungen
bei FaÈlligkeit nicht gemaÈû § 3 tilgt, werden die zu
tilgenden Teilschuldverschreibungen ±
ausgenommen im Falle des § 4(2) ± vom
FaÈlligkeitstag bis zum Tag der tatsaÈchlichen
RuÈckzahlung weiterhin mit einem Zinssatz von
0,75% p.a. auf ihren Nennbetrag verzinst.
(3) Zinstagequotient. (3) Accrued Interest.
Zinsen, die fuÈr einen Zeitraum von weniger als
einem Jahr zu berechnen sind, werden auf der
Grundlage der tatsaÈchlich verstrichenen Tage,
dividiert durch 365 bzw. 366 (tatsaÈchliche Anzahl
der Tage im jeweiligen Zinsjahr), berechnet.
§ 3
(FaÈlligkeit, Vorzeitige RuÈckzahlung)
(1) FaÈlligkeit. (1) Maturity.
Die Teilschuldverschreibungen sind am
14. September 2006 zum Nennbetrag zuruÈckzuzahlen,
sofern sie nicht vorher zuruÈckgezahlt,
umgetauscht oder gemaÈû § 3(2) gekauft und
entwertet werden.
(2) RuÈckerwerb. (2) Repurchase.
Die Emittentin, die Garantin (§ 8) oder ein mit
ihnen verbundenes Unternehmen ist jederzeit
berechtigt, Teilschuldverschreibungen im Markt
oder auf andere Weise zu erwerben. Auf diese
Weise ruÈckerworbene Teilschuldverschreibungen
koÈnnen gehalten, entwertet oder weiterverkauft
werden.
(3) Vorzeitige RuÈckzahlung. (3) Early Redmeption.
(a) Die Emittentin ist berechtigt, die
Teilschuldverschreibungen insgesamt oder
44
shall be payable annually in arrears on September
14 of each year (each, an ``Interest Payment Date''),
commencing on September 14, 2002. The last
Interest Payment Date shall be September 14,
2006 (unless the Bonds are previously redeemed or
exchanged). Interest shall cease to accrue as of the
beginning of the day on which the Bonds become
due for redemption, or, when the Exchange Right
(§ 5(1)(a)) shall have been exercised, as of the
beginning of the Interest Payment Date
immediately preceding the Exchange Date
(§ 5(2)(a)), or, if there was no Interest Payment
Date, the Issue Date.
Should the Issuer fail to redeem Bonds when due
pursuant to § 3, interest shall, except in the case
referred to in § 4(2), continue to accrue on the
principal amount of the Bonds to be redeemed from
such due date until the date of actual redemption of
the Bonds at the rate of 0.75% per annum.
If interest is to be calculated for a period of less than
a full year, such interest shall be calculated on the
basis of the actual number of days elapsed, divided
by 365 or 366 (actual number of days in the
respective annual interest period).
§ 3
(Maturity, Early Redemption)
The Bonds shall be redeemed at their principal
amount on September 14, 2006, unless previously
redeemed, exchanged or purchased in accordance
with § 3 (2) and cancelled.
The Issuer, the Guarantor (§ 8) or any of their
af®liates may at any time purchase Bonds in the
open market or otherwise. Bonds so repurchased
may be held, cancelled or resold.
(a) The Issuer may, on giving no less than 30 and
no more than 60 days' notice in accordance

teilweise durch Bekanntmachung gemaÈû § 11
mit einer Frist von mindestens 30 und
hoÈchstens 60 Tagen zum Nennbetrag
zuzuÈglich aufgelaufener Zinsen zuruÈckzuzahlen,
wenn der Schluûkurs (wie
nachstehend de®niert) der Aktien (§ 5(1)(a))
(zuzuÈglich gemaÈû § 6 zahlbarer BarbetraÈge und
dem Wert von gemaÈû § 6 zu liefernder
VermoÈgenswerte und zuzuÈglich dem Wert von
gemaÈû § 5(6) zu liefernder Aktien) an mehr als
20 Handelstagen (jeweils ein ``BoÈrsentag'') an
dem von Euronext Paris S.A. betriebenen
Premier Marche (``Euronext Paris'') innerhalb
eines Zeitraums von 30 aufeinanderfolgenden
BoÈrsentagen, der am fuÈnften BoÈrsentag vor
einer solchen Bekanntmachung endet, 130%
des zu diesem Zeitpunkt guÈltigen
Umtauschwertes (§ 5(1)(b)) uÈbersteigt; eine
teilweise RuÈckzahlung der Teilschuldverschreibungen
ist jedoch nur zulaÈssig,
sofern (i) diese sich auf Teilschuldverschreibungen
in einem Gesamtnennbetrag
von mindestens e 100.000.000 bezieht und (ii)
den Gesamtnennbetrag der nach dieser
RuÈckzahlung ausstehenden Teilschuldverschreibungen
nicht auf weniger als
e 50.000.000 verringert. Die
Bekanntmachung der vorzeitigen
RuÈckzahlung der Teilschuldverschreibungen
ist unwiderru¯ich. Der in der
Bekanntmachung als RuÈckzahlungstag
angegebene Tag darf nicht vor dem
28. September 2004 liegen. FaÈllt der
RuÈckzahlungstag in einen NichtausuÈbungszeitraum
(§ 5(4)) oder in einen
Zeitraum von 10 Tagen nach dem Ende eines
NichtausuÈbungszeitraums, so verschiebt sich
der RuÈckzahlungstag auf den zehnten
Bankarbeitstag (§ 4(2)) nach dem Ende dieses
NichtausuÈbungszeitraums. Die Bekanntmachung
hat den RuÈckzahlungstag sowie die
UmstaÈnde zu bezeichnen, aufgrund derer die
Emittentin zur RuÈckzahlung der
Teilschuldverschreibungen berechtigt ist. Im
Falle einer teilweisen RuÈckzahlung werden die
zuruÈckzuzahlenden Teilschuldverschreibungen
anteilsmaÈûig bestimmt oder, soweit dies nicht
moÈglich ist, per Zufallsauswahl durch
Clearstream Frankfurt gemaÈû dem von
Clearstream Frankfurt fuÈr diesen Zweck
festgesetzten Verfahren ermittelt.
``Schluûkurs'' bedeutet im Hinblick auf einen
BoÈrsentag, an dem die Aktien an Euronext Paris
notiert sind, der Kurs der Aktien am Schluû dieses
BoÈrsentages. Falls die Aktien nicht an Euronext
45
with § 11, redeem the Bonds, in whole or in
part, at their principal amount plus interest
accrued thereon, if the Closing Price (as
de®ned below) of the Shares (§ 5(1)(a)) (plus
any cash amounts payable, and the value of
any property deliverable, pursuant to § 6 and
plus the value of any shares deliverable
pursuant to § 5(6)) exceeds on more than 20
trading days (each, a ``Stock Exchange Trading
Day'') on the Premier Marche managed by
Euronext Paris S.A. (``Euronext Paris'') during
a period of 30 consecutive Stock Exchange
Trading Days ending on the ®fth Stock
Exchange Trading Day preceding such notice
130% of the then-applicable Exchange Price
(§ 5(1)(b)); provided, however, that any partial
redemption of Bonds shall (i) relate to Bonds
with an aggregate principal amount of at least
e 100,000,000 and (ii) not reduce the aggregate
principal amount of the Bonds outstanding
after such redemption to less than
e 50,000,000. Such notice of early
redemption shall be irrevocable. The date
speci®ed in such notice as date of redemption
shall not fall earlier than on September 28,
2004. If the date of redemption falls within an
Excluded Period (§ 5(4)) or the ten days
following the end of an Excluded Period, the
date of redemption will be postponed to the
tenth Business Day (§ 4(2)) following the end
of such Excluded Period. Such notice shall
state the date of redemption and the facts
which establish the right of the Issuer so to
redeem the Bonds. In the case of a partial
redemption, the Bonds to be redeemed will be
selected on a pro rata basis or, where this is not
possible, by random selection by Clearstream
Frankfurt in accordance with the procedures
established by Clearstream Frankfurt for such
purpose.
``Closing Price'' means, with respect to a Stock
Exchange Trading Day on which the Shares are
quoted on Euronext Paris, the price for the Shares
on Euronext Paris at the close of such Stock

Paris notiert sind, sind die entsprechenden
Notierungen oder Kurse an der wichtigsten
WertpapierboÈrse zu verwenden, an der die Aktien
gehandelt werden. Falls die Aktien nicht
anderweitig zum BoÈrsenhandel zugelassen sind,
bestimmt die Berechnungsstelle (§ 13) den
Schluûkurs auf der Grundlage anderer
Notierungen oder Informationen, die sie fuÈr
maûgeblich haÈlt.
(b) Die Emittentin ist berechtigt, die
Teilschuldverschreibungen mittels Bekanntmachung
gemaÈû § 11 mit einer Frist von
mindestens 30 und hoÈchstens 60 Tagen
insgesamt zum Nennbetrag zuzuÈglich
aufgelaufener Zinsen zuruÈckzuzahlen, wenn
der Gesamtnennbetrag der am Tag der
Bekanntmachung ausstehenden Teilschuldverschreibungen
10% oder weniger des
Gesamtnennbetrags der urspruÈnglich
ausgegebenen Teilschuldverschreibungen
entspricht.
§ 4
(Zahlungen)
Exchange Trading Day. If the Shares are not
quoted on Euronext Paris, the respective quotations
or prices on the principal securities exchange on
which the Shares are quoted shall be used. In the
absence of such quotation, the Calculation Agent
(§ 13) shall determine the Closing Price on the basis
of such quotations or other information as it
considers appropriate.
(b) The Issuer may, on giving no less than 30 and
no more than 60 days' notice in accordance
with § 11, redeem the Bonds in whole at their
principal amount together with interest
accrued thereon, if the aggregate principal
amount of the Bonds outstanding on the date
the notice is given is equal to or less than 10%
of the aggregate principal amount of the Bonds
that were initially issued.
§ 4
(Payments)
(1) Zahlungen von Kapital und Zinsen. (1) Payments of Principal and Interest.
Zahlungen von Kapital und Zinsen auf die
Teilschuldverschreibungen sind in Euro am
entsprechenden Zahlungstag (§ 4(3)) an
Clearstream Frankfurt oder entsprechend deren
Anweisung zu leisten. SaÈmtliche Zahlungen, die an
Clearstream Frankfurt oder entsprechend deren
Anweisung geleistet werden, befreien die
Emittentin von ihren Verbindlichkeiten aus den
Teilschuldverschreibungen in HoÈhe der geleisteten
Zahlungen.
(2) Bankarbeitstage. (2) Business Days.
FaÈllt ein FaÈlligkeitstag fuÈr Zahlungen von Kapital
oder Zinsen auf die Teilschuldverschreibungen auf
einen Tag, an dem Clearstream Frankfurt und die
Banken in Frankfurt am Main nicht fuÈr den
GeschaÈftsverkehr geoÈffnet sind und keine
Zahlungen in Euro abwickeln (jeweils ein
``Bankarbeitstag''), erfolgt die betreffende Zahlung
erst am naÈchstfolgenden Bankarbeitstag, ohne daû
im Hinblick auf die Verschiebung der Zahlung
zusaÈtzliche Zinsen oder sonstige BetraÈge geschuldet
werden.
(3) Zahlungstag. (3) Payment Date.
Im Sinne dieser Anleihebedingungen ist ein
``Zahlungstag'' ein Tag, an dem, gegebenenfalls
aufgrund einer Verschiebung gemaÈû § 4(2), eine
Zahlung zu leisten ist.
46
Payments of principal of, and interest on, the Bonds
shall be made in Euro on the relevant Payment Date
(§ 4(3)) to, or to the order of, Clearstream
Frankfurt. All payments made to Clearstream
Frankfurt or to its order shall discharge the
liability of the Issuer under the Bonds to the
extent of the sums so paid.
If any due date for payment of principal of, or
interest on, the Bonds is not a day on which
Clearstream Frankfurt and banks in Frankfurt am
Main are open for business and settle payments in
Euro (each, a ``Business Day''), such payment will
not be made until the next following Business Day,
and no further interest or other amount shall be
owed in respect of the delay in such payment.
For the purposes of these Conditions of Issue,
``Payment Date'' means any day on which a
payment is to be made, where applicable as
adjusted in accordance with § 4(2).

(4) Hinterlegung bei Gericht. (4) Depositing in Court.
Die Emittentin kann BetraÈge an Kapital und Zinsen
sowie alle anderen gegebenenfalls auf die
Teilschuldverschreibungen zu zahlenden BetraÈge,
deren Zahlung von den AnleiheglaÈubigern nicht
innerhalb von zwoÈlf Monaten nach deren FaÈlligkeit
geltend gemacht worden ist, beim Amtsgericht in
Frankfurt am Main hinterlegen. Soweit die
Emittentin auf das Recht zur RuÈcknahme der
hinterlegten BetraÈge verzichtet, erloÈschen die
betreffenden AnspruÈche der AnleiheglaÈubiger
gegen die Emittentin.
The Issuer may deposit with the lower court
(Amtsgericht) in Frankfurt am Main amounts of
principal, interest and all other amounts due under
the Bonds, if any, not claimed by Bondholders
within twelve months after the date on which such
amounts have become due. To the extent that the
Issuer waives its right to withdraw such deposit, the
relevant claim of the Bondholders against the Issuer
shall cease.
§ 5 (Umtauschrecht) § 5 (Exchange Right)
(1) Umtauschrecht, Umtauschfrist und
Umtauschwert.
(a) Jeder AnleiheglaÈubiger hat waÈhrend der
nachstehend bezeichneten Umtauschfrist,
vorbehaltlich der ErfuÈllung der
Bestimmungen dieses § 5, jederzeit das Recht
(das ``Umtauschrecht''), seine Teilschuldverschreibungen
gegen voll eingezahlte und
mit voller Dividendenberechtigung ausgestattete
Stammaktien mit einem Nennwert
von e 3,82 je Aktie (die ``Aktien'') der Aventis
S.A. (die ``Gesellschaft'') in fuÈr die ErfuÈllung
von GeschaÈften an Euronext Paris lieferbarer
Form umzutauschen. Nach AusuÈbung des
Umtauschrechts gemaÈû § 5(2)(a) erlischt das
Recht eines AnleiheglaÈubigers auf
RuÈckzahlung der Teilschuldverschreibungen
im Hinblick auf diejenigen Teilschuldverschreibungen,
fuÈr welche das Umtauschrecht
ausgeuÈbt worden ist, und wird durch das Recht
auf Lieferung der Aktien gemaÈû § 5 ersetzt.
Die ``Umtauschfrist'' ist der Zeitraum vom
1. Januar 2002 bis zum 1. September 2006
(jeweils einschlieûlich). Wenn jedoch
Teilschuldverschreibungen vor dem
1. September 2006 gemaÈû § 3(3) zur
RuÈckzahlung gekuÈndigt werden, endet die
Umtauschfrist fuÈr die der RuÈckzahlung
unterliegenden Teilschuldverschreibungen mit
Ablauf des fuÈnften Bankarbeitstages vor dem
Tag der RuÈckzahlung, es sei denn, die
Emittentin verletzt ihre P¯icht zur
RuÈckzahlung dieser Teilschuldverschreibungen
bei FaÈlligkeit gemaÈû § 3.
(b) Der Gegenwert, zu dem die Aktien von der
Emittentin an die AnleiheglaÈubiger bei
AusuÈbung des Umtauschrechts geliefert
werden (der ``Umtauschwert''), betraÈgt e 98,50
47
(1) Exchange Right, Exchange Period and
Exchange Price.
(a) At any time during the Exchange Period
referred to below and subject to compliance
with the provisions of this § 5, each
Bondholder has the right (the ``Exchange
Right'') to exchange its Bonds for fully paidin
ordinary shares having full dividend
entitlement and with a nominal value of
e 3.82 per share (the ``Shares'') of Aventis
S.A. (the ``Company'') in a form that enables
good delivery for settlement of transactions on
Euronext Paris. Upon exercise of the Exchange
Right in accordance with § 5(2)(a), the
Bondholder's right to have the Bonds
redeemed shall cease with respect to those
Bonds for which the Exchange Right has been
exercised and shall be replaced by the right to
demand delivery of Shares as provided for in
this § 5. The ``Exchange Period'' shall be the
period from and including January 1, 2002 to
and including September 1, 2006, provided
that, if the Bonds have been called for
redemption pursuant to § 3(3) prior to
September 1, 2006, the Exchange Period with
respect to the Bonds that are subject to
redemption shall expire at the end of the ®fth
Business Day preceding the date of redemption
unless the Issuer fails to redeem such Bonds
when due pursuant to § 3.
(b) The price at which Shares will be delivered by
the Issuer to Bondholders upon exercise of the
Exchange Right (the ``Exchange Price'') will be
e 98.50 per Share. The Exchange Price may be

je Aktie. Der Umtauschwert kann auf die in
§ 5(3) geregelte Art und Weise angepasst
werden. Die Anzahl der bei Umtausch einer
Teilschuldverschreibung zu liefernden Aktien
ergibt sich durch Teilung des Nennbetrags
jeder Teilschuldverschreibung durch den am
Umtauschtag (§ 5(2)(a)) geltenden Umtauschwert.
Das Ergebnis dieser Teilung ist auf die
vierte Dezimalstelle zu runden, wobei 0,00005
aufgerundet werden, so daû, vorbehaltlich
einer Anpassung des Umtauschwertes, fuÈr
jede Teilschuldverschreibung 101,5228 Aktien
geliefert werden. Wenn ein AnleiheglaÈubiger
das Umtauschrecht gleichzeitig hinsichtlich
mehrerer Teilschuldverschreibungen ausuÈbt,
errechnet sich die Anzahl der zu liefernden
Aktien auf der Basis des Gesamtnennbetrags
dieser Teilschuldverschreibungen.
(c) Das Umtauschrecht kann von einem
AnleiheglaÈubiger nicht mehr ausgeuÈbt
werden, wenn bei einer Zahlstelle (§ 13) in
bezug auf die von diesem AnleiheglaÈubiger
gehaltenen Teilschuldverschreibungen eine
Benachrichtigung zum Zwecke der
KuÈndigung gemaÈû § 9(2) eingegangen ist.
subject to adjustments in the manner provided
in § 5(3). The number of Shares to be delivered
upon exchange of a Bond will be determined
by dividing the principal amount of each Bond
by the Exchange Price applicable on the
Exchange Date (§ 5(2)(a)). The result of such
division shall be rounded to the fourth decimal
place, with 0.00005 being rounded upwards; so
that, subject to any adjustments to the
Exchange Price, 101.5228 Shares will be
delivered for each Bond. If more than one
Bond is exchanged at any one time by the same
Bondholder, the number of Shares to be
delivered will be calculated on the basis of
the aggregate principal amount of such Bonds.
(c) The Exchange Right may no longer be
exercised by a Bondholder following the
receipt by a Paying Agent (§ 13) of a notice
in accordance with § 9(2) declaring the Bonds
held by such Bondholder due.
(2) Umtauschverfahren. (2) Procedure for Exchange.
(a) Zur AusuÈbung des Umtauschrechts muû jeder
AnleiheglaÈubiger waÈhrend der Umtauschfrist
(i) auf eigene Kosten waÈhrend der uÈblichen
GeschaÈftszeiten bei einer Umtauschstelle (§ 13)
eine ordnungsgemaÈû ausgefuÈllte und
unterzeichnete UmtauscherklaÈrung (die
``UmtauscherklaÈrung''), die bei den
GeschaÈftsstellen der Umtauschstellen erhaÈltlich
ist, einreichen und (ii) die umzutauschenden
Teilschuldverschreibungen auf das Konto einer
Umtauschstelle (oder auf das von einer
Umtauschstelle auf dem Formular der
UmtauscherklaÈrung angegebene Konto) bei
Clearstream Luxemburg oder Clearstream
Frankfurt uÈbertragen. Die UmtauscherklaÈrung
istunwiderru¯ich.EinUmtauschrechtistandem
Tag (der ``Umtauschtag'') wirksam ausgeuÈbt, an
dem beide unter § 5(2)(a) (i) und (ii) aufgefuÈhrten
Voraussetzungen erfuÈllt sind; in diesem
Zusammenhang gilt, daû (x) eine AusuÈbung des
Umtauschrechts nicht wirksam ist, sofern die
UmtauscherklaÈrung einer Umtauschstelle
waÈhrend eines NichtausuÈbungszeitraums
(§ 5(4)) zugeht und (y), sofern der Tag, an dem
die in § 5(2)(a) (i) und (ii) aufgefuÈhrten
Voraussetzungen erfuÈllt sind, kein BoÈrsentag
ist, der auf diesen Tag unmittelbar folgende
BoÈrsentag der Umtauschtag ist.
48
(a) In order to exercise the Exchange Right, each
Bondholder must, during the Exchange Period,
(i) deliver at its own expense during normal
business hours to an Exchange Agent (§ 13) a
notice of exchange (the ``Exchange Notice'')
duly completed and signed on a form available
at the of®ces of the Exchange Agents and (ii)
transfer the Bonds to be exchanged to the
account of an Exchange Agent (or to the
account designated by an Exchange Agent on
the form of the Exchange Notice) with
Clearstream Luxembourg or Clearstream
Frankfurt. The Exchange Notice shall be
irrevocable. Any Exchange Right shall have
been validly exercised on the date (the
``Exchange Date'') on which both conditions
set forth in (i) and (ii) of this § 5(2)(a) shall
have been ful®lled, provided that (x) the
Exchange Right shall not have been validly
exercised if the receipt of the Exchange Notice
by an Exchange Agent falls within an Excluded
Period (§ 5(4)) and (y), if the day on which the
conditions set forth in (i) and (ii) of this
§ 5(2)(a) shall have been ful®lled is not a Stock
Exchange Trading Day, the Exchange Date
shall be the Stock Exchange Trading Day
immediately following such day.

(b) Eine Lieferung von Bruchteilen von Aktien, die
infolge der AusuÈbung des Umtauschrechts
entstuÈnden, ist ausgeschlossen. Soweit die
AusuÈbung des Umtauschrechts im Hinblick
auf eine oder mehrere Teilschuldverschreibung(en)
zu Bruchteilen von Aktien
fuÈhren wuÈrde, leistet die Emittentin anstelle der
Lieferung dieser Bruchteile eine Zahlung in
Euro, deren HoÈhe auf der Grundlage des
Schluûkurses am Umtauschtag ermittelt wird.
Eine solche Zahlung erfolgt durch
UÈ berweisung auf das von dem betreffenden
AnleiheglaÈubiger in der UmtauscherklaÈrung
angegebene Konto. Sollte sich die an einen
AnleiheglaÈubiger zu leistende Zahlung
insgesamt auf weniger als e 10 belaufen, ist
die Emittentin nicht verp¯ichtet, diese Zahlung
zu leisten.
(c) Bei AusuÈbung des Umtauschrechts wird die
Emittentin so bald wie moÈglich, jedoch
keinesfalls spaÈter als sieben Bankarbeitstage
nach dem Umtauschtag, die Aktien uÈber
Clearstream Frankfurt, Clearstream
Luxemburg, Euroclear oder Euroclear France
S.A. entsprechend den Angaben des
AnleiheglaÈubigers in der UmtauscherklaÈrung
an den AnleiheglaÈubiger liefern und etwaige
gemaÈû § 5(2)(b) erforderliche Zahlungen
leisten. Die Emittentin ist zur Lieferung von
Aktien und Leistung von Zahlungen an einen
AnleiheglaÈubiger, der das Umtauschrecht
ausgeuÈbt hat, nur verp¯ichtet, sofern der
betreffende AnleiheglaÈubiger etwaige Steuern
und sonstige Abgaben, die im Zusammenhang
mit der AusuÈbung des Umtauschrechts, der
Lieferung von Aktien oder einer Zahlung
durch die Emittentin gemaÈû diesem § 5
erhoben werden, gezahlt hat.
(b) No fractions of Shares shall be delivered upon
exercise of the Exchange Right. To the extent
that any exercise of the Exchange Right with
respect to one or more Bonds would result in
fractions of Shares, the Issuer shall make, in
lieu of delivery of such fractions of Shares, a
cash payment in Euro based on the Closing
Price of the Shares on the Exchange Date. Any
such payment shall be made by transfer to such
account as the relevant Bondholder may
specify in the Exchange Notice. If the
aggregate cash payment otherwise to be made
to a Bondholder would amount to less than
e 10, the Issuer shall be under no obligation to
make any such payment.
(c) Upon exercise of an Exchange Right, the
Issuer shall, as soon as practicable, but in any
event no later than seven Business Days after
the Exchange Date, deliver the Shares to the
Bondholder through Clearstream Frankfurt,
Clearstream Luxembourg, Euroclear or
Euroclear France S.A., as speci®ed in the
Bondholder's Exchange Notice, and make
any cash payment required under § 5(2)(b).
The Issuer's obligation to deliver Shares and to
make any cash payment to any Bondholder
who has exercised the Exchange Right is
subject to the condition that such Bondholder
shall have paid any taxes and other duties
which are imposed in connection with the
exercise of the Exchange Right, the delivery of
Shares or any cash payment by the Issuer
under this § 5.
(3) Anpassung des Umtauschwertes. (3) Adjustments to the Exchange Price.
(a) Falls die Gesellschaft vor dem 14. September
2006 oder einem fruÈheren RuÈckzahlungstag
(i) ihren AktionaÈren unmittelbar oder
mittelbar ein Recht zum Bezug von
Aktien, Schuldverschreibungen oder
sonstigen Wertpapieren mit oder ohne
Recht zum Bezug von Aktien einraÈumt
(sofern es sich dabei nicht um unter (ii)
beschriebene Bezugsrechte handelt)
(``GewaÈhrung von Bezugsrechten''), oder
49
(a) In the event that prior to September 14, 2006
or any earlier date of redemption, the
Company
(i) grants its shareholders, directly or
indirectly, rights to subscribe shares,
bonds or other securities with or without
rights to subscribe shares (except for
subscription rights described under (ii)
(``Granting of Subscription Rights''), or

(ii) ihr Grundkapital aus Gewinn- oder
KapitalruÈcklagen oder auf andere Weise
aus Gesellschaftsmitteln erhoÈht
(``KapitalerhoÈhung aus RuÈcklagen''),
wird der Umtauschwert nach Maûgabe der
AbsaÈtze § 5(3)(b) und (c) angepaût.
(b) Im Falle einer GewaÈhrung von Bezugsrechten
wird der Umtauschwert mit dem Wert
multipliziert, der durch Anwendung der
nachstehenden Formel berechnet wird:
CPo ± VSR
CPo
(ii) increases its share capital out of retained
earnings or capital reserves or otherwise
out of the Company's own funds
(``Increase of Share Capital out of
Reserves''),
the Exchange Price shall be adjusted in
accordance with § 5(3)(b) and (c).
(b) In the event of a Granting of Subscription
Rights, the Exchange Price shall be multiplied
by the ®gure calculated by applying the
following formula:
CPo ± VSR
CPo
wobei folgendes gilt: where:
``CPo'' ist der Schluûkurs der Aktie am
Bezugsstichtag (wie nachstehend de®niert);
``VSR'' (Wert des Bezugsrechts) bedeutet je
Aktie:
(i) der Wert des Rechts zum Bezug der
betreffenden Wertpapiere, wie er sich aus
dem BoÈrsenschluûkurs dieses Rechts an
Euronext Paris am Stichtag (§ 5(3)(k))
ergibt, oder
(ii) falls ein solcher Kurs nicht verfuÈgbar ist,
der von der Berechnungsstelle unter
Heranziehung eines international
anerkannten unabhaÈngigen SachverstaÈndigen,
wenn moÈglich unter
BeruÈcksichtigung der am Stichtag
herrschenden Marktlage, bestimmte
Wert des Bezugsrechts; und
``Bezugsstichtag'' ist der dem ersten BoÈrsentag,
an dem die Aktien an Euronext Paris ``ex
Bezugsrecht'' notiert werden, unmittelbar
vorangehende BoÈrsentag.
(c) Im Falle einer KapitalerhoÈhung aus RuÈcklagen
wird der Umtauschwert mit dem Wert
multipliziert, der durch Anwendung der
nachstehenden Formel berechnet wird:
No
Nn
``CPo'' is the Closing Price of the Shares on the
Subscription Record Date (as de®ned below);
``VSR'' (value of the subscription rights)
means, on a per share basis:
(i) the value of the right to subscribe the
relevant securities, as determined by the
closing price of such right on Euronext
Paris on the Record Date (§ 5(3)(k)), or
(ii) in case such price is not available, the
value of the subscription right as
determined by the Calculation Agent,
with the assistance of an independent
expert of recognized international
standing, if possible taking into account
the market conditions prevailing on the
Record Date; and
``Subscription Record Date'' is the Stock
Exchange Trading Day immediately
preceding the ®rst Stock Exchange Trading
Day on which the Shares are traded on
Euronext Paris ``ex-subscription right''.
(c) In the event of an Increase of Share Capital out
of Reserves, the Exchange Price shall be
multiplied by the ®gure calculated by
applying the following formula:
No
Nn
wobei folgendes gilt: where:
``No'' ist die Anzahl der Aktien vor der
KapitalerhoÈhung, und
50
``No'' is the number of Shares before the
increase of share capital, and

``Nn'' ist die Anzahl der Aktien nach
DurchfuÈhrung der KapitalerhoÈhung.
(d) Falls sich die Anzahl der Aktien veraÈndert,
ohne daû sich gleichzeitig die HoÈhe des
Grundkapitals aÈndert, gilt § 5(3)(c) sinngemaÈû.
(e) Falls die Gesellschaft vor dem 14. September
2006 oder einem fruÈheren RuÈckzahlungstag
ihren AktionaÈren Schuldverschreibungen,
Optionsscheine, Wandlungsrechte oder andere
VermoÈgensgegenstaÈnde ausschuÈttet, zuteilt
oder gewaÈhrt (auûer den in § 5(3)(a)
genannten FaÈllen, einer Auûerordentlichen
Dividende (§ 5(3)(f)) und einer Abspaltung
(§ 5(3)(g)) (eine ``AusschuÈttung''),
wird der Umtauschwert mit dem Wert
multipliziert, der durch Anwendung der
nachstehenden Formel berechnet wird:
CPo ± VD
CPo
``Nn'' is the number of Shares after the increase
of share capital.
(d) In the event that the number of Shares is
changed without a change in the amount of the
share capital, § 5(3)(c) shall apply mutatis
mutandis.
(e) In the event that prior to September 14, 2006
or any earlier date of redemption, the
Company distributes, allots or grants to its
shareholders debt securities, warrants,
conversion rights or other assets (excluding
the events referred to in § 5(3)(a), an
Extraordinary Dividend (§ 5(3)(f)) and a
Spin-off Event (§ 5(3)(g)) (a ``Distribution''),
the Exchange Price shall be multiplied by the
®gure calculated by applying the following
formula:
CPo ± VD
CPo
wobei folgendes gilt: where:
``CPo'' ist der Schluûkurs der Aktien am
AusschuÈttungsstichtag (wie nachstehend
de®niert);
``VD'' (Wert der AusschuÈttung) bedeutet den
von der Berechnungsstelle mit Hilfe eines
international anerkannten unabhaÈngigen
SachverstaÈndigen je Aktie ermittelten
angemessenen Marktwert der
AusschuÈttung am AusschuÈttungsstichtag (wie
nachstehend de®niert); und
``AusschuÈttungsstichtag'' ist (i) der dem ersten
BoÈrsentag, an dem die Aktien an Euronext
Paris unter Ausschluss (``ex'') des Rechts
notiert werden, das die AktionaÈre zu der
AusschuÈttung berechtigt, unmittelbar
vorausgehende BoÈrsentag, oder, falls (i) nicht
anwendbar ist, (ii) der Zeitpunkt und das
Datum fuÈr die Bestimmung der AktionaÈre,
die berechtigt sind, die AusschuÈttung zu
erhalten.
(f) Falls die Gesellschaft vor dem 14. September
2006 oder einem fruÈheren RuÈckzahlungstag
waÈhrend eines GeschaÈftsjahres einen
Gesamtbetrag an Dividenden auf ihre Aktien
ausschuÈttet, der (ohne BeruÈcksichtigung eines
51
``CPo'' is the Closing Price of the Shares on the
Distribution Record Date (as de®ned below);
``VD'' (value of the distribution) means the fair
market value of the Distribution on the
Distribution Record Date (as de®ned below)
as determined by the Calculation Agent with
the assistance of an independent expert of
recognized international standing, calculated
on a per share basis; and
``Distribution Record Date'' is (i) the Stock
Exchange Trading Day immediately preceding
the ®rst Stock Exchange Trading Day on
which the Shares are traded on Euronext
Paris ``ex'' the right entitling a shareholder to
receive the Distribution or, if (i) is inapplicable,
(ii) the time and date for the determination of
the shareholders entitled to receive the
Distribution.
(f) In the event that prior to September 14, 2006
or any earlier date of redemption, the
Company distributes to its shareholders with
respect to any of its ®scal years an aggregate
amount of dividends (without taking into

damit verbundenen KoÈrperschaftsteuerguthabens)
berechnet auf der Grundlage des
arithmetischen Mittels der Schluûkurse der
Aktien an jedem BoÈrsentag waÈhrend des
GeschaÈftsjahres, das einer solchen Dividende
oder solchen Dividenden vorangeht, zu einem
Dividendenertrag je Aktie (ausgedruÈckt als
Prozentsatz, ohne BeruÈcksichtigung eines
damit verbundenen KoÈrperschaftsteuerguthabens)
fuÈhrt, der die Summe von 3%
zuzuÈglich des Durchschnittlichen Dividendenertrags
(wie nachstehend de®niert)
uÈbersteigt (dieser Dividendenertrag wird
einschlieûlich der 3% nachfolgend als eine
``Auûerordentliche Dividende'' oder ``EDY''
bezeichnet), wird der Umtauschwert mit dem
Wert multipliziert, der durch Anwendung der
nachstehenden Formel berechnet wird:
1 ± EDY + ADY 1 ± EDY + ADY
wobei folgendes gilt: where:
``ADY'' bzw. ``Durchschnittlicher
Dividendenertrag'' bedeutet den
durchschnittlichen Dividendenertrag
(ausgedruÈckt als Prozentsatz, ohne
BeruÈcksichtigung eines etwaigen in einer
Dividende enthaltenen KoÈrperschaftsteuerguthabens
und ohne BeruÈcksichtigung einer
Dividende oder von Dividenden (oder Teilen
davon), die Auûerordentliche Dividenden
waren) jedes der letzten fuÈnf GeschaÈftsjahre,
die dem GeschaÈftsjahr vorangingen, welches
vor der AusschuÈttung oder den
AusschuÈttungen lag, die zur Anwendung
dieses § 5(3)(f) fuÈhren (dieser Dividendenertrag
wird fuÈr jedes dieser fuÈnf
GeschaÈftsjahre auf der Grundlage des
arithmetischen Mittels der Schluûkurse der
Aktien an jedem BoÈrsentag waÈhrend des
GeschaÈftsjahres, im Hinblick auf welches die
Dividende oder Dividenden ausgeschuÈttet
wurden, berechnet (soweit erforderlich, ist
diese Berechnung unter Heranziehung der
Aktienkurse und Dividenden der vormaligen
RhoÃne-Poulenc S.A., bevor diese in Aventis
S.A. um®rmiert hat, durchzufuÈhren)); und
``Dividendenstichtag'' ist der dem ersten
BoÈrsentag, an dem die Aktien an Euronext
Paris ``ex Dividende'' notiert werden,
unmittelbar vorangehende BoÈrsentag.
(g) Falls die Gesellschaft ihren AktionaÈren einen
Anteil am Kapital verbriefende Wertpapiere
52
account any corporate tax credit inherent in
any dividend) on its Shares which, on a per
share basis and calculated on the basis of the
arithmetic average of the Closing Price of the
Shares on each Stock Exchange Trading Day
during the ®scal year preceding such dividend
or dividends, will result in a dividend yield (in
%, without taking into account any corporate
tax credit arising in respect thereof) that
exceeds the sum of 3% plus the Average
Dividend Yield (as de®ned below) (such
dividend yield, including the 3%, an
``Extraordinary Dividend'' or ``EDY''), the
Exchange Price shall be multiplied by the
®gure calculated by applying the following
formula:
``ADY'' or ``Average Dividend Yield'' is the
average of the dividend yields (in %, without
taking into account any corporate tax credit
inherent in any dividend and without taking
into account any dividend or dividends (or
portion thereof) that constituted
Extraordinary Dividends) of each of the last
®ve ®scal years which preceded the ®scal year
preceding the distribution or distributions
giving rise to the application of this § 5(3)(f)
(such dividend yield calculated for each of
those ®ve ®scal years on the basis of the
arithmetic average of the Closing Price of the
Shares on each Stock Exchange Trading Day
during the ®scal year in respect of which the
dividend or dividends were distributed (to the
extent necessary, such calculation to be made
using the share price and dividends of the
former RhoÃne-Poulenc S.A. prior to its name
change to Aventis S.A.)); and
``Dividend Record Date'' is the Stock Exchange
Trading Day immediately preceding the ®rst
Stock Exchange Trading Day on which the
Shares are traded on Euronext Paris ``exdividend''
(g) If the Company distributes, or causes to be
distributed, to its shareholders (a ``Spin-off

eines anderen Emittenten als der Gesellschaft
(die ``Abspaltungs-Wertpapiere'') gewaÈhrt oder
gewaÈhren laÈût (eine ``Abspaltung''), wird die
Emittentin mit Hilfe eines international
anerkannten unabhaÈngigen SachverstaÈndigen
eine der folgenden MoÈglichkeiten waÈhlen:
(i) wenn die Abspaltungs-Wertpapiere an
einer anerkannten BoÈrse oÈffentlich
gehandelt werden, umfasst jede Aktie
anschlieûend die Anzahl von
Abspaltungs-Wertpapieren, zu deren
Erhalt ein AnleiheglaÈubiger berechtigt
gewesen waÈre, wenn er das
Umtauschrecht unmittelbar vor dem
AusschuÈttungsstichtag dieser Abspaltung
ausgeuÈbt haÈtte;
(ii) der Umtauschwert wird durch
Anwendung der Formel gemaÈû § 5(3)(e)
angepaût;
(iii) innerhalb von fuÈnf BoÈrsentagen nach dem
``ex'' Tag dieser Abspaltung liefert die
Emittentin jedem AnleiheglaÈubiger die
Anzahl von Abspaltungs-Wertpapieren,
zu deren Erhalt ein AnleiheglaÈubiger
berechtigt gewesen waÈre, wenn er das
Umtauschrecht unmittelbar vor dem
AusschuÈttungsstichtag dieser Abspaltung
ausgeuÈbt haÈtte; oder
(iv) innerhalb von fuÈnf BoÈrsentagen nach dem
``ex'' Tag dieser Abspaltung zahlt die
Emittentin jedem AnleiheglaÈubiger einen
Barbetrag, der sich aus (x) der Anzahl der
Abspaltungs-Wertpapiere, zu deren
Erhalt ein AnleiheglaÈubiger berechtigt
gewesen waÈre, wenn er das
Umtauschrecht unmittelbar vor dem
AusschuÈttungsstichtag dieser Abspaltung
ausgeuÈbt haÈtte, multipliziert mit (y) dem
von der Berechnungsstelle mit Hilfe eines
international anerkannten unabhaÈngigen
SachverstaÈndigen am letzten BoÈrsentag
vor dem AusschuÈttungsstichtag dieser
Abspaltung bestimmten angemessenen
Marktwert der Abspaltungs-Wertpapiere
je Aktie ergibt.
(h) Falls die Gesellschaft oder ein Dritter vor dem
14. September 2006 oder einem fruÈheren
RuÈckzahlungstag eine nicht in diesem § 5(3)
genannte Maûnahme in bezug auf das Kapital
53
Event'') equity securities of an issuer other than
the Company (the ``Spin-off Securities''), then
the Issuer shall, with the assistance of an
independent expert of recognized international
standing, select one of the following options:
(i) if the Spin-off Securities are publicly
traded on a recognized exchange, each
Share shall thereafter comprise the
number of Spin-off Securities that a
Bondholder would have been entitled to
receive had the Bondholder exercised the
Exchange Right immediately prior to the
Distribution Record Date of such Spinoff
Event;
(ii) the Exchange Price shall be adjusted by
applying the formula set forth in § 5(3)(e);
(iii) within ®ve Stock Exchange Trading Days
after the ``ex'' date of such Spin-off Event,
the Issuer shall deliver to each
Bondholder the number of Spin-off
Securities that a Bondholder would have
been entitled to receive had the
Bondholder exercised the Exchange
Right immediately prior to the
Distribution Record Date of such Spinoff
Event; or
(iv) within ®ve Stock Exchange Trading Days
after the ``ex'' date of such Spin-off Event,
the Issuer shall pay to each Bondholder a
cash amount calculated by multiplying (x)
the number of Spin-off Securities that a
Bondholder would have been entitled to
receive had the Bondholder exercised the
Exchange Right immediately prior to the
Distribution Record Date of such Spinoff
Event by (y) the fair market value of
the Spin-off Securities on a per-share
basis, as determined by the Calculation
Agent with the assistance of an
independent expert of recognized
international standing, on the last Stock
Exchange Trading Day prior to the
Distribution Record Date of such Spinoff
Event.
(h) If the Company or a third party adopts a
measure not contemplated in this § 5(3) in
relation to the capital or assets of the Company
at any time prior to September 14, 2006 or any

oder die VermoÈgensgegenstaÈnde der
Gesellschaft ergreift und diese Maûnahme
nach Auffassung der Berechnungsstelle einen
erheblichen nachteiligen Ein¯uû auf die
Interessen der AnleiheglaÈubiger hat, wird die
Berechnungsstelle den Umtauschwert nach
billigem Ermessen (§ 317 BGB) anpassen oder
in diesem Zusammenhang andere
Anpassungen mit dem Ziel vornehmen,
denjenigen Wert der Teilschuldverschreibungen
zu erhalten, den sie
vermutlich haÈtten, wenn das die Anpassung
erfordernde Ereignis nicht eingetreten waÈre.
(i) Anpassungen nach Maûgabe der vorstehenden
Bestimmungen sind von der Berechnungsstelle
vorzunehmen und gemaÈû § 11 bekanntzumachen.
Der nach Maûgabe der
vorstehenden Bestimmungen berechnete
Umtauschwert wird auf die vierte
Dezimalstelle gerundet, wobei 0,00005
aufgerundet werden. Die Berechnungsstelle ist
berechtigt, nach vernuÈnftigem Ermessen und
nach vorheriger Abstimmung mit der
Emittentin den Rat von AnwaÈlten oder
anderen international anerkannten
unabhaÈngigen SachverstaÈndigen (z.B. einer
Investmentbank) einzuholen und dementsprechend
zu handeln. Die Berechnungsstelle
haftet gegenuÈber der Emittentin, der Garantin
(§ 8) oder den AnleiheglaÈubigern nicht, soweit
sie in gutem Glauben Maûnahmen im
Vertrauen auf eine solche Beratung
durchgefuÈhrt oder unterlassen und dabei mit
der Sorgfalt eines ordentlichen Kaufmanns
gehandelt hat.
(j) Anpassungen gemaÈû § 5(3)(b) und (c) und (e)
bis (g) werden mit Beginn des ersten
BoÈrsentages wirksam, an dem die Aktien an
Euronext Paris ``ex Bezugsrecht'', ``ex
Dividende'', ``ex Gratisaktien'' oder ``ex''
anderer Rechte gehandelt werden
(``Stichtag''). Anpassungen gemaÈû Absatz
§ 5(3)(d) werden mit Beginn des ersten
BoÈrsentages wirksam, an dem die Aktien
unter BeruÈcksichtigung der geaÈnderten
Aktienzahl notiert werden. Anpassungen
gemaÈû § 5(3)(h) werden mit Beginn des Tages
wirksam, der von der Berechnungsstelle gemaÈû
§ 5(3)(h) als Wirksamkeitstag bestimmt wird.
(k) Falls Anpassungen des Umtauschwertes
aufgrund mehrerer der in den vorstehenden
AbsaÈtzen § 5(3)(a) bis (h) genannten FaÈllen
54
earlier date of redemption which has, in the
opinion of the Calculation Agent, a signi®cant
adverse impact on the position of the
Bondholders, the Calculation Agent shall
adjust the Exchange Price in its own
reasonable discretion (§ 317 of the German
Civil Code) or make other adjustments in this
connection with the aim to maintain the value
of the Bonds, which they would presumably
have in the absence of the event leading to such
adjustment.
(i) Adjustments in accordance with the foregoing
clauses shall be calculated by the Calculation
Agent and published in accordance with § 11.
The Exchange Price determined in accordance
with the preceding provisions shall be rounded
to the fourth decimal place, with 0.00005 being
rounded upwards. The Calculation Agent may
in its reasonable discretion and after prior
consultation with the Issuer, obtain, and rely
on, the advice of any lawyers or other
independent experts of recognized
international standing (e.g., of an investment
bank). The Calculation Agent shall not be
liable vis-a-vis the Issuer, the Guarantor (§ 8)
or any Bondholder in respect of any action
taken or failed to be taken by it in reliance on
such advice in good faith and in the exercise of
the due care of a proper merchant.
(j) Adjustments in accordance with § 5(3)(b) and
(c) and (e) through (g) shall become effective as
of the beginning of the ®rst Stock Exchange
Trading Day on which the Shares are traded
on Euronext Paris ``ex-subscription rights'',
``ex-dividend'', ``ex-bonus shares'' or ``ex'' any
other right (``Record Date''). Adjustments in
accordance with § 5(3)(d) shall become
effective as of the beginning of the ®rst Stock
Exchange Trading Day on which prices are
quoted taking account of such change of the
number of Shares. Adjustments in accordance
with § 5(3)(h) shall become effective as of the
beginning of the date determined as the
effective date by the Calculation Agent
pursuant to § 5(3)(h).
(k) If adjustments of the Exchange Price are
required under more than one of § 5(3)(a)
through (h), and the effective date for such

erforderlich werden und der Wirksamkeitstag
fuÈr derartige Anpassungen (§ 5(3)(j)) auf
denselben Tag faÈllt, sind die Anpassungen in
folgender Reihenfolge vorzunehmen: zuerst
gemaÈû § 5(3)(a), danach gemaÈû § 5(3)(b),
danach gemaÈû § 5(3)(c), danach gemaÈû
§ 5(3)(d), danach gemaÈû § 5(3)(e), danach
gemaÈû § 5(3)(f), danach gemaÈû § 5(3)(g) und
zuletzt gemaÈû § 5(3)(h).
(l) Im Falle einer KapitalerhoÈhung aus RuÈcklagen
durch ErhoÈhung des Nominalwertes der
Aktien erfolgt keine Anpassung des
Umtauschwertes, sondern der Nominalwert
der an das Umtauschrecht ausuÈbende
AnleiheglaÈubiger zu liefernden Aktien wird in
demselben Umfang erhoÈht.
(4) NichtausuÈbungszeitraum. (4) Excluded Period.
Die AusuÈbung des Umtauschrechts ist
ausgeschlossen im Falle eines OÈ ffentlichen
UÈ bernahmeangebots (§ 6(3)) waÈhrend eines
Zeitraums (ein ``NichtausuÈbungszeitraum'')
beginnend an dem fuÈnften Bankarbeitstag vor dem
Annahmetag (§ 6(1)) bis (i) zu dem Tag, an dem die
Aktien, die Gegenstand des OÈ ffentlichen
UÈ bernahmeangebots waren, durch die Emittentin,
die Garantin (§ 8) bzw. eines ihrer verbundenen
Unternehmen, welches Aktien haÈlt, wirksam an den
Anbieter uÈbertragen worden sind bzw. (ii) zu dem
Tag, an dem die Emittentin gemaÈû § 6(1)(i)
bekanntgibt, daû die Emittentin, die Garantin
bzw. das betreffende verbundene Unternehmen
das OÈ ffentliche UÈ bernahmeangebot nicht
angenommen hat oder daû das OÈ ffentliche
UÈ bernahmeangebot nicht erfolgreich war, je
nachdem, welches Ereignis spaÈter eintritt, mit der
EinschraÈnkung, daû die AusuÈbung des
Umtauschrechts nicht waÈhrend der letzten fuÈnf
Bankarbeitstage der Umtauschfrist ausgeschlossen
ist.
adjustments (§ 5(3)(j)) falls on the same date,
such adjustments shall be made by applying,
®rst, the provisions of § 5(3)(a), second, the
provisions of § 5(3)(b), third, the provisions of
§ 5(3)(c), fourth, the provisions of § 5(3)(d),
®fth, the provisions of § 5(3)(e), sixth, the
provisions of § 5(3)(f), seventh, the provisions
of § 5(3)(g) and ®nally the provisions of
§ 5(3)(h).
(l) In the event of an Increase of Share Capital out
of Reserves by increasing the nominal value of
the Shares, the Exchange Price shall not be
adjusted but the nominal value of the Shares to
be delivered to Bondholders exercising the
Exchange Right will be increased to the same
extent.
The exercise of the Exchange Right shall be
excluded in the case of a Public Offer (§ 6(3))
during a period (an ``Excluded Period'') between the
date that falls ®ve Business Days prior to the
Acceptance Date (§ 6(1)) and the later of (i) the date
on which the Shares that were subject to the Public
Offer are validly transferred by the Issuer, the
Guarantor (§ 8) or any af®liate holding Shares, as
the case may be, to the offeror and (ii) the date on
which the Issuer publishes pursuant to § 6(1)(i) that
the Issuer, the Guarantor or such af®liate, as the
case may be, has not accepted the Public Offer or
that the Public Offer was unsuccessful, provided
that the exercise of the Exchange Right shall not be
excluded during the last ®ve Business Days of the
Exchange Period.
(5) Barzahlung anstelle der Lieferung von Aktien. (5) Cash Payment in lieu of Delivery of Shares.
Die Emittentin ist jederzeit berechtigt, nach
vorheriger Bekanntmachung gemaÈû § 11
gegenuÈber der Umtauschstelle und den
AnleiheglaÈubigern mit einer Frist von sieben
Bankarbeitstagen statt Lieferung der in § 5(1)(b)
bestimmten Anzahl von Aktien (vorbehaltlich einer
Anpassung des Umtauschwertes) oder eines Teils
davon die Zahlung eines Barbetrags in Euro zu
waÈhlen, sofern der infolge der wirksamen AusuÈbung
des Umtauschrechts durch die jeweiligen
AnleiheglaÈubiger maûgebliche Umtauschtag auf
oder nach den Tag faÈllt, der in der
Bekanntmachung als Wirksamkeitstag fuÈr die
AusuÈbung des Wahlrechts bestimmt ist, und der
55
The Issuer may elect from time to time upon no less
than seven Business Days' prior notice to the
Exchange Agents and to the Bondholders in
accordance with § 11, to pay to the Bondholders,
in lieu of the delivery of the number of Shares
speci®ed in § 5(1)(b) (as adjusted as a result of an
adjustment of the Exchange Price) or a portion of
such Shares to the Bondholders upon valid exercise
of the Exchange Right in respect of which the
Exchange Date falls on or after the date speci®ed as
effective date of such election in such notice and
prior to the effective date of revocation or change of
such election (as provided below), a cash amount in
Euro. The cash amount relating to each Share shall

vor dem Wirksamkeitstag eines Widerrufs oder
einer AÈ nderung der AusuÈbung des Wahlrechts
(wie nachstehend geregelt) liegt. Der auf jede
Aktie zu zahlende Barbetrag errechnet sich auf der
Grundlage des arithmetischen Mittels der
Schluûkurse der Aktien an den zehn dem
Umtauschtag folgenden BoÈrsentagen; der Betrag
ist zusaÈtzlich zu allen anderen etwaigen BarbetraÈgen
zu zahlen, welche die Emittentin den
AnleiheglaÈubigern nach einer wirksamen
AusuÈbung des Umtauschrechts schuldet. Die
Zahlung dieser BetraÈge ist so bald wie moÈglich
nach Ablauf des zehnten, auf den Umtauschtag
folgenden BoÈrsentages, in keinem Fall spaÈter als
sieben Bankarbeitstage nach diesem BoÈrsentag, auf
das in der UmtauscherklaÈrung angegebene Konto
der AnleiheglaÈubiger zu leisten. Die Emittentin
kann die AusuÈbung dieses Wahlrechts mittels
Bekanntmachung gemaÈû § 11 mit Wirkung zu dem
in der Bekanntmachung angegebenen Datum mit
einer Frist von sieben Bankarbeitstagen gegenuÈber
der Umtauschstelle und den AnleiheglaÈubigern
widerrufen oder aÈndern. Die Emittentin kann das
Wahlrecht nach freiem Ermessen beliebig oft
ausuÈben, widerrufen oder aÈndern. Falls zu
irgendeinem Zeitpunkt aus irgendeinem Grund bei
AusuÈbung des Umtauschrechts durch einen
AnleiheglaÈubiger Aktien nicht geliefert werden
koÈnnen, wird die Emittentin (i) unverzuÈglich nach
Maûgabe dieses § 5(5) statt der Lieferung von
Aktien die Zahlung eines Barbetrags in Euro
waÈhlen und (ii), falls die Emittentin zu diesem
Zeitpunkt ihr Wahlrecht schon entsprechend
ausgeuÈbt hat, diese Wahl nicht widerrufen oder
aÈndern, und (iii), falls ein AnleiheglaÈubiger sein
Umtauschrecht ausgeuÈbt hat und der entsprechende
Umtauschtag vor den Wirksamkeitstag fuÈr die
AusuÈbung des Wahlrechts gemaÈû (i) liegt, an
diesen AnleiheglaÈubiger statt der Lieferung von
Aktien einen Barbetrag in Euro zahlen, der gemaÈû
diesem § 5(5) Satz 2 berechnet wird.
(6) Fusionen. (6) Merger.
Falls die Gesellschaft fusioniert oder aufgespalten
wird oder eine andere Form des Unternehmenszusammenschlusses
oder der Unternehmensreorganisation
durchfuÈhrt und infolgedessen
die Aktien gegen andere Wertpapiere
ausgetauscht oder in ihrem Rechtsinhalt veraÈndert
werden, ist die Emittentin verp¯ichtet, die Aktien
durch die im Austausch fuÈr die Aktien gelieferten
Wertpapiere oder die auf diese Weise in ihrem
Rechtsinhalt veraÈnderten Aktien (jeweils die
``Ersatzwerte'') als Gegenstand des Umtauschrechts
zu ersetzen. Der Umtauschwert fuÈr die
Ersatzwerte wird bestimmt, indem der vor Eintritt
des betreffenden Ereignisses guÈltige Umtauschwert
56
be calculated on the basis of the arithmetic average
of the Closing Price of the Shares on each of the ten
Stock Exchange Trading Days after the Exchange
Date and shall be in addition to any other cash
amounts which may be payable by the Issuer to a
Bondholder upon the valid exercise of the Exchange
Right. Payment of such amounts shall be made as
soon as practicable after the tenth Stock Exchange
Trading Day following the Exchange Date and in
any event not later than seven Business Days after
such Stock Exchange Trading Day to the account of
the Bondholder speci®ed in the Exchange Notice.
Any such election by the Issuer may be revoked or
changed upon not less than seven Business Days'
prior notice to the Exchange Agents and to the
Bondholders in accordance with § 11 from the date
speci®ed in such revocation or change notice. The
Issuer may exercise its right to make, revoke or
change an election at any time in its sole discretion.
If at any time and for any reason Shares cannot be
delivered upon the exercise by a Bondholder of the
Exchange Right, the Issuer shall (i) promptly elect
to pay a cash amount in Euro in lieu of the delivery
of Shares in accordance with this § 5(5), (ii) , if, by
that time, the Issuer has already so elected, refrain
from revoking or changing such election, and (iii) ,
if a Bondholder has exercised the Exchange Right
and the Exchange Date falls before the effective
date of the election pursuant to (i), pay to such
Bondholder a cash amount in Euro in lieu of the
delivery of Shares calculated in accordance with
sentence 2 of this § 5(5).
If the Company shall merge or split-up or enter into
any other form of business combination or
reorganisation, and as a result of such event the
Shares are exchanged for other shares or
reclassi®ed, the Issuer shall procure that the shares
delivered in exchange for the Shares, or the Shares
as reclassi®ed (in each case, the ``Substitute
Shares''), shall replace the Shares as the subject to
the Exchange Right. The Exchange Price for
Substitute Shares shall be determined by
multiplying the Exchange Price applicable before
the effectiveness of such event by the exchange ratio
of Shares for Substitute Shares (expressed as a
fraction, the denominator of which is the number of

mit dem UmtauschverhaÈltnis der Aktien in
Ersatzwerte multipliziert wird (ausgedruÈckt als
Bruch, wobei der Nenner der Anzahl der
Ersatzwerte und der ZaÈhler der Anzahl der Aktien
entspricht).
§ 6
(Schutz bei UÈ bernahmeangebot)
(1) Allgemeines. (1) General.
Im Falle eines OÈ ffentlichen UÈ bernahmeangebots
(wie nachstehend de®niert) sind die Emittentin und
die Garantin (§ 8) nach freiem Ermessen berechtigt,
das OÈ ffentliche UÈ bernahmeangebot anzunehmen
oder abzulehnen, jedoch nur in bezug auf
saÈmtliche Aktien, und nicht nur einen Teil davon.
Die Emittentin und die Garantin duÈrfen das
OÈ ffentliche UÈ bernahmeangebot nicht in bezug auf
diejenigen Aktien annehmen, die im Falle einer
wirksamen AusuÈbung des Umtauschrechts vor dem
letzten Tag des Zeitraums, innerhalb dessen das
OÈ ffentliche UÈ bernahmeangebot bedingungsgemaÈû
angenommen werden kann (der ``Annahmetag''), an
die AnleiheglaÈubiger zu liefern sind.
Im Falle von zwei oder mehreren gleichzeitigen
OÈ ffentlichen UÈ bernahmeangeboten koÈnnen die
Emittentin und die Garantin irgendeines oder
keines der OÈ ffentlichen UÈ bernahmeangebote
annehmen.
Die Emittentin bzw. die Garantin hat den
AnleiheglaÈubigern gemaÈû § 11 bekanntzumachen:
(i) unmittelbar nach dem Annahmetag, ob die
Emittentin, die Garantin bzw. eines ihrer
verbundenen Unternehmen, welches Aktien
haÈlt, das OÈ ffentliche UÈ bernahmeangebot
angenommen hat und ob das OÈ ffentliche
UÈ bernahmeangebot erfolgreich war, und
(ii) nur im Falle der Annahme des OÈ ffentlichen
UÈ bernahmeangebots, sobald wie moÈglich, in
keinem Fall jedoch spaÈter als fuÈnf
Bankarbeitstage nach dem ErfuÈllungstag des
OÈ ffentlichen UÈ bernahmeangebots (wie
nachstehend de®niert), den Betrag und die
Art der Gegenleistung je Aktie, welche die
Emittentin, die Garantin bzw. ein solches
verbundenes Unternehmen erhalten hat oder
im Zusammenhang mit dem OÈ ffentlichen
UÈ bernahmeangebot zu erhalten berechtigt ist.
(2) Annahme
angebots.
eines OÈ ffentlichen UÈ bernahme-
Wenn die Emittentin, die Garantin bzw. eines ihrer
verbundenen Unternehmen, das Aktien haÈlt, ein
57
Substitute Shares and the numerator of which is the
number of Shares).
§ 6
(Event Risk Protection)
In the event of a Public Offer (as de®ned below), the
Issuer and the Guarantor (§ 8) shall have absolute
discretion to accept or reject the Public Offer, but
only for all but not part of the Shares. The Issuer
and the Guarantor may not accept the Public Offer
with respect to the Shares that have to be delivered
to Bondholders upon valid exercise of the Exchange
Right prior to the last day of the period within
which the Public Offer can be accepted in
accordance with its terms (the ``Acceptance Date'').
In the event of two or more simultaneous Public
Offers, the Issuer and the Guarantor may accept
any or none of the Public Offers.
The Issuer or the Guarantor, as the case may be,
shall, in accordance with § 11, notify to the
Bondholders:
(i) its decision immediately after the Acceptance
Date, whether the Issuer, the Guarantor or any
of their af®liates holding Shares, as the case
may be, has accepted the Public Offer and
whether the Public Offer was successful, and
(ii) only in the event of acceptance of the Public
Offer, as soon as practicable but in any event
not later than ®ve Business Days after the
Public Offer Closing Date (as de®ned below),
the amount and type of consideration per
Share the Issuer, the Guarantor or such
af®liate, as the case may be, has received or is
entitled to receive in the context of the Public
Offer.
(2) Acceptance of a Public Offer.
If the Issuer, the Guarantor or any of their af®liates
holding Shares, as the case may be, has accepted a

OÈ ffentliches UÈ bernahmeangebot angenommen hat,
gelten mit Wirkung ab dem jeweiligen ErfuÈllungstag
des OÈ ffentlichen UÈ bernahmeangebots die folgenden
Bestimmungen:
(a) Im Falle eines Ausschlieûlichen Sachangebots
(wie nachstehend de®niert) erhaÈlt jeder
AnleiheglaÈubiger bei AusuÈbung des
Umtauschrechts je Teilschuldverschreibung
Angebotene Sachwerte (wie nachstehend
de®niert) in einem Umfang, der gemaÈû
folgender Formel berechnet wird:
Public Offer, the following provisions shall apply
with effect from such Public Offer Closing Date:
(a) In the event of an All Property Offer (as
de®ned below), each Bondholder shall, upon
exercise of the Exchange Right, receive per
Bond an amount of Offered Property (as
de®ned below) calculated in accordance with
the following formula:
A = E 6 Angebotenes VermoÈgen A = E 6 Offered Property
wobei folgendes gilt: where:
A = die Menge an Angebotenen Sachwerten,
die im Anschluû an das OÈ ffentliche
UÈ bernahmeangebot einem AnleiheglaÈubiger
in bezug auf jede Teilschuldverschreibung
bei AusuÈbung des
Umtauschrechts zu liefern ist,
E = das unmittelbar vor dem ErfuÈllungstag
des OÈ ffentlichen UÈ bernahmeangebots
guÈltige UmtauschverhaÈltnis.
(b) Im Falle eines Ausschlieûlichen Barangebots
(wie nachstehend de®niert) erhaÈlt jeder
AnleiheglaÈubiger bei AusuÈbung des
Umtauschrechts je Teilschuldverschreibung
einen Barbetrag, der gemaÈû folgender Formel
berechnet wird:
B = E 6 Angebotener Barbetrag + PraÈmien-
Ausgleichsbetrag
wobei folgendes gilt: where:
B = der Barbetrag, der einem AnleiheglaÈubiger
im Anschluû an das
OÈ ffentliche UÈ bernahmeangebot in bezug
auf jede Teilschuldverschreibung bei
AusuÈbung des Umtauschrechts zu zahlen
ist,
E = das unmittelbar vor dem ErfuÈllungstag
des OÈ ffentlichen UÈ bernahmeangebots
guÈltige UmtauschverhaÈltnis,
der PraÈmien-Ausgleichsbetrag wird gemaÈû
folgender Formel berechnet:
PC = K 2 6 (Kapital ± IP) 6 T
C
wobei folgendes gilt: where:
K = IP
MP
K = MP
IP
wenn MP _4 IP K = IP
MP
wenn MP 5 IP K = MP
IP
58
A = the amount of Offered Property
deliverable to a Bondholder in respect of
each Bond upon exercise of the Exchange
Right following the Public Offer,
E = the Exchange Ratio applicable
immediately prior to the Public Offer
Closing Date.
(b) In the event of an All Cash Offer (as de®ned
below), each Bondholder shall, upon exercise
of the Exchange Right, receive per Bond a cash
amount calculated in accordance with the
following formula:
B = E 6 Offered Cash + Premium
Compensation
B = the amount of cash deliverable to a
Bondholder in respect of each Bond
upon exercise of the Exchange Right
following the Public Offer,
E = the Exchange Ratio applicable
immediately prior to the Public Offer
Closing Date,
the Premium Compensation shall be calculated
according to the following formula:
PC = K 2 6 (Principal ± IP) 6 T
C
where MP _4 IP
where MP 5 IP

PC = PraÈmien-Ausgleichsbetrag
schuldverschreibung
je Teil- PC = Premium Compensation per Bond
Kapital = e 10.000 Principal = e 10,000
IP = Umtauschwert je Teilschuldverschreibung
auf der Grundlage
des Schluûkurses der Aktien am
4. September 2001, d.h. e 7.944,16
MP = Umtauschwert je Teilschuldverschreibung
am Annahmetag, der
dem Produkt aus E und dem
arithmetischen Mittel der Schluûkurse
der Aktien an den fuÈnf
BoÈrsentagen vor dem und einschlieûlich
entspricht
des Annahmetags
C = Dauer in Tagen vom 14. September
2001 bis einschlieûlich zu dem Tag,
an dem die Emittentin ihre Option
ausuÈben kann, die Teilschuld-
T =
verschreibungen gemaÈû § 3(3)(a) vor
EndfaÈlligkeit in bar zuruÈckzuzahlen)
Dauer in Tagen vom Annahmetag
bis einschlieûlich zu dem Tag, an
dem die Emittentin ihre Option
ausuÈben kann, die Teilschuldverschreibungen
gemaÈû § 3(3)(a) vor
EndfaÈlligkeit in bar zuruÈckzuzahlen.
(c) Im Falle eines Teilweisen Barangebots (wie
nachstehend de®niert) erhaÈlt jeder
AnleiheglaÈubiger bei AusuÈbung des
Umtauschrechts je Teilschuldverschreibung (i)
in bezug auf die in dem Angebot enthaltenen
Angebotenen Sachwerte Angebotene
Sachwerte in einem Umfang, der gemaÈû
§ 6(2)(a) berechnet wird, und (ii) in bezug auf
den in dem Angebot enthaltenen Angebotenen
Barbetrag einen Barbetrag, der gemaÈû § 6(2)(b)
berechnet wird.
IP = Exchange value for one Bond based
on the Closing Price of the Shares on
September 4, 2001, i.e. e 7,944.16
MP = Exchange value for one Bond on the
Acceptance Date, equal to the
product of E and the arithmetic
average of the Closing Price of the
Shares on each of the ®ve Stock
Exchange Trading Days preceding,
and including, the Acceptance Date
C = Duration in days from September 14,
2001 to, and including, the date on
which the Issuer may exercise its
option to redeem the Bonds in cash
prior to maturity pursuant to
§ 3(3)(a))
T = Duration in days from the
Acceptance Date to, and including,
the date on which the Issuer may
exercise its option to redeem the
Bonds in cash prior to maturity
pursuant to § 3(3)(a).
(c) In the event of a Partly Cash Offer (as de®ned
below), each Bondholder shall, upon exercise
of the Exchange Right, receive per Bond (i) as
regards the Offered Property comprised in the
offer an amount of Offered Property calculated
in accordance with § 6(2)(a) and (ii) as regards
the Offered Cash Amount comprised in the
offer an amount of Offered Cash calculated in
accordance with § 6(2)(b).
(3) De®nitionen. (3) De®nitions.
Im Sinne dieses § 6 bedeutet: For the purposes of this § 6:
``Angebotener Barbetrag'' den von der Emittentin,
der Garantin bzw. einem ihrer verbundenen
Unternehmen, das Aktien haÈlt, als Gegenleistung
fuÈr eine Aktie in dem OÈ ffentlichen UÈ bernahmeangebot
erhaltenen Barbetrag in Euro
(oder, soweit anwendbar, den zu einem Kurs, den
die EuropaÈische Zentralbank am Tag des Erhalts
dieses Barbetrags festgelegt hat und der von Reuters
auf Seite ECB37 gegen 11 Uhr (Frankfurter Zeit)
veroÈffentlicht wird, in Euro umgerechneten Betrag).
Falls die Angebotenen Sachwerte Wertpapiere
umfassen, die keine Aktien sind, wie zum Beispiel
59
``Offered Cash'' means the cash amount received by
the Issuer, the Guarantor or any of their af®liates
holding Shares, as the case may be, in Euro (or,
where applicable, as converted into Euro at the rate
®xed by the European Central Bank on the date of
receipt of such cash amount, as published on
Reuters page ECB37 at around 11 hours
(Frankfurt time)) as consideration for one Share
in the Public Offer. If the Offered Property
comprises securities which are not shares, such as
debt instruments not linked to the variation of a
share price or debt instruments not giving rights to

nicht auf die AÈ nderung des Kurses von Aktien
bezogene Schuldverschreibungen oder
Schuldverschreibungen, die nicht durch
Umwandlung, Umtausch oder RuÈckerstattung
Bezugsrechte fuÈr Aktien gewaÈhren, Wertpapiere,
die OptionsvertraÈge oder bestimmte Rechte
beinhalten (Optionsscheine zur Zeichnung oder
zum Erwerb von Aktien oder sonstigen
Wertpapieren) mit einer beschraÈnkten Dauer,
werden diese Wertpapiere fuÈr die Zwecke von
§ 6(2) als Angebotener Barbetrag behandelt in
HoÈhe des von der Berechnungsstelle (§ 13) auf der
Grundlage des am Annahmetag veroÈffentlichten
letzten Kurses der Wertpapiere an der BoÈrse, an der
sie gehandelt werden, bestimmten Barwertes oder,
falls sie nicht an einer BoÈrse gehandelt werden, in
HoÈhe des von der Berechnungsstelle mit Hilfe eines
international anerkannten unabhaÈngigen SachverstaÈndigen
ermittelten theoretischen Wertes.
``Angebotene Sachwerte'' jegliche Gegenleistung,
welche die Emittentin, die Garantin bzw. eines
ihrer verbundenen Unternehmen fuÈr eine Aktie
erhaÈlt und die kein Angebotener Barbetrag ist.
``Ausschlieûliches Barangebot'' ein OÈ ffentliches
UÈ bernahmeangebot, bei dem die Emittentin, die
Garantin bzw. eines ihrer verbundenen Unternehmen
ausschlieûlich Angebotene BarbetraÈge als
Gegenleistung fuÈr die Aktien erhaÈlt.
``Ausschlieûliches Sachangebot'' ein OÈ ffentliches
UÈ bernahmeangebot, bei dem die Emittentin, die
Garantin bzw. eines ihrer verbundenen
Unternehmen ausschlieûlich Angebotene Sachwerte
als Gegenleistung fuÈr die Aktien erhaÈlt.
``ErfuÈllungstag des OÈ ffentlichen UÈ bernahmeangebots''
der Tag, an dem die Emittentin,
die Garantin bzw. eines ihrer verbundenen
Unternehmen die Gegenleistung fuÈr die Aktien
erhaÈlt.
``OÈ ffentliches UÈ bernahmeangebot'' jegliches
Angebot, sei es gemaÈû der franzoÈsischen
UÈ bernahmevorschriften oder anderen anwendbaren
Vorschriften, oder ganz allgemein, jegliches
Angebot, das sich an die Inhaber der Aktien richtet
(einschlieûlich eines Angebots der Gesellschaft,
welches sich an die Inhaber der Aktien richtet).
``Teilweises Barangebot'' ein OÈ ffentliches
UÈ bernahmeangebot, bei dem die Emittentin, die
Garantin bzw. eines ihrer verbundenen Unternehmen
sowohl Angebotene BarbetraÈge als auch
Angebotene Sachwerte als Gegenleistung fuÈr die
Aktien erhaÈlt.
60
subscribe for shares by way of conversion, exchange
or reimbursement, securities representing optional
contracts or speci®c rights (warrants to subscribe or
acquire shares or other securities) having a limited
duration, such securities will be deemed, for the
purpose of § 6(2), to be Offered Cash for an amount
equal to their cash value in Euro determined by the
Calculation Agent (§ 13) on the basis of their ®nal
price quoted on the Acceptance Date on the stock
exchange on which they are listed or, if they are not
listed, equal to their theoretical value calculated by
the Calculation Agent with the assistance of an
independent expert of recognized international
standing.
``Offered Property'' means any consideration
received by the Issuer, the Guarantor or any of
their af®liates, as the case may be, as consideration
for one Share which is not Offered Cash.
``All Cash Offer'' means a Public Offer where the
Issuer, the Guarantor or any of their af®liates, as
the case may be, receives exclusively Offered Cash
as consideration for the Shares.
``All Property Offer'' means a Public Offer where
the Issuer, the Guarantor or any of their af®liates,
as the case may be, receives exclusively Offered
Property as consideration for the Shares.
``Public Offer Closing Date'' means the day on
which the consideration for the Shares has been
received by the Issuer, the Guarantor or any of their
af®liates, as the case may be.
``Public Offer'' means any takeover bid whether
according to the French takeover regulations or any
other applicable regulations, or more generally, any
offer which is addressed to the holders of Shares
(including an offer by the Company which is
addressed to the holders of Shares to acquire
Shares).
``Partly Cash Offer'' means a Public Offer where the
Issuer, the Guarantor or any of their af®liates, as
the case may be, receives Offered Cash as well as
Offered Property as consideration for the Shares.

``UmtauschverhaÈltnis'' e 10.000 dividiert durch den
im jeweiligen Zeitpunkt guÈltigen Umtauschwert.
§ 7
(Status; NegativerklaÈrung der Emittentin)
(1) Status der Teilschuldverschreibungen. (1) Status of the Bonds.
Die Teilschuldverschreibungen begruÈnden unbesicherte
und nicht nachrangige Verp¯ichtungen
der Emittentin, die im gleichen Rang mit allen
anderen gegenwaÈrtigen und zukuÈnftigen
unbesicherten und nicht nachrangigen
Verbindlichkeiten der Emittentin stehen.
(2) NegativerklaÈrung. (2) Negative Pledge.
Die Emittentin verp¯ichtet sich, solange bis Kapital
und Zinsen sowie etwaige weitere auf die
Teilschuldverschreibungen zahlbare BarbetraÈge an
die Zahlstellen (§ 13) gezahlt und alle
Verp¯ichtungen zur Lieferung von Aktien oder
sonstigen VermoÈgenswerten erfuÈllt worden sind,
keine Sicherheiten an ihren VermoÈgensgegenstaÈnden
zur Besicherung gegenwaÈrtiger oder
zukuÈnftiger Kapitalmarktverbindlichkeiten (wie
nachstehend de®niert) einschlieûlich hierfuÈr
abgegebener Garantien zu bestellen, es sei denn,
daû die Teilschuldverschreibungen gleichzeitig und
im gleichen Rang an dieser Sicherheit anteilig
teilnehmen oder den AnleiheglaÈubigern eine
andere Sicherheit gewaÈhrt wird, die von einer
international anerkannten unabhaÈngigen
WirtschaftspruÈfungsgesellschaft als gleichwertige
Sicherheit anerkannt wird. Die Verp¯ichtung
gemaÈû vorstehendem Satz ®ndet keine Anwendung
auf eine Sicherheit, (i) deren Bestellung nach
geltendem Recht zwingend ist oder (ii) die zur
Erlangung einer staatlichen Genehmigung
erforderlich ist. Eine Sicherheit, die gemaÈû dem
ersten Satz dieses § 7(2) zu leisten ist, kann auch
zugunsten einer Person bestellt werden, die als
TreuhaÈnder (wie nachstehend de®niert) der
AnleiheglaÈubiger handelt. ``Kapitalmarktverbindlichkeit''
ist jede gegenwaÈrtige oder zukuÈnftige
Verp¯ichtung zur RuÈckzahlung aufgenommener
GeldbetraÈge durch die Emittentin, die Garantin
(§ 8) oder Dritte, die durch Schuldverschreibungen
oder sonstige Wertpapiere mit einer Anfangslaufzeit
von mehr als einem Jahr, die an einer BoÈrse oder an
einem anderen anerkannten Wertpapiermarkt
zugelassen, notiert oder gehandelt werden oder
werden koÈnnen, verbrieft oder verkoÈrpert ist.
``TreuhaÈnder'' ist eine Bank, ein Finanzinstitut,
eine WirtschaftspruÈfungs- oder Steuerberatungsgesellschaft
von international anerkanntem Rang,
die fuÈr die AnleiheglaÈubiger nach Ernennung durch
die Emittentin und mit Zustimmung der
Hauptzahlstelle (§ 13) treuhaÈnderisch handelt.
61
``Exchange Ratio'' means e 10,000 divided by the
then applicable Exchange Price.
§ 7
(Status; Negative Pledge of the Issuer)
The Bonds constitute unsecured and
unsubordinated obligations of the Issuer which
shall rank at least pari passu with all other present
or future unsecured and unsubordinated obligations
of the Issuer.
The Issuer undertakes until such time as principal
and interest, as well as any other cash amounts
payable under or in respect of the Bonds have been
paid to the Paying Agents (§ 13) and all obligations
to deliver Shares or other property have been
ful®lled, not to provide any security upon its
assets for any present or future Capital Market
Indebtedness (as de®ned below), including any
guarantee in respect thereof, unless the Bonds at
the same time share pari passu and pro rata in such
security or unless such other security, as shall have
been approved by an independent accounting ®rm
of recognized international standing as being
equivalent security, has been made available to the
Bondholders. The undertaking pursuant to the
preceding sentence shall not apply to a security (i)
which is mandatory according to applicable laws, or
(ii) which is a prerequisite for governmental
approvals. Any security which is to be provided
pursuant to the ®rst sentence of this § 7(2) may also
be provided to a person acting as Trustee (as de®ned
below) for the Bondholders. ``Capital Market
Indebtedness'' means any present or future
obligation for the repayment of borrowed money
of the Issuer, the Guarantor (§ 8) or any third party,
which is in the form of, or represented or evidenced
by, bonds, notes or other securities with an original
maturity of more than one year which are, or are
capable of being, quoted, listed, dealt in or traded
on a stock exchange or other recognized securities
market. ``Trustee'' means a bank, ®nancial
institution, auditing or accounting ®rm of
recognized international standing acting as trustee
for the Bondholders, as appointed by the Issuer
with the consent of the Principal Paying Agent
(§ 13).

§ 8
(Garantie und NegativerklaÈrung der Garantin)
§ 8
(Guarantee and Negative Pledge of the Guarantor)
(1) Garantie und NegativerklaÈrung. (1) Guarantee and Negative Pledge.
GemaÈû einer Verp¯ichtungserklaÈrung vom
12. September 2001 (die ``Verp¯ichtungserklaÈrung'')
hat ERGO Versicherungsgruppe
Aktiengesellschaft, DuÈsseldorf (die ``Garantin''):
(a) unbedingt und unwiderru¯ich die ordnungsgemaÈûe
Zahlung von Kapital und Zinsen auf
die Teilschuldverschreibungen sowie aller
sonstigen etwaigen von der Emittentin gemaÈû
diesen Anleihebedingungen zahlbaren BetraÈge
garantiert, und
(b) unbedingt und unwiderru¯ich die Lieferung
der Aktien und der sonstigen VermoÈgenswerte
garantiert, die gemaÈû diesen Anleihebedingungen
zu liefern sind ((a) und (b)
zusammen die ``Garantie''), und
(c) sich gegenuÈber den AnleiheglaÈubigern
verp¯ichtet, solange bis Kapital und Zinsen
sowie etwaige weitere auf die Teilschuldverschreibungen
zahlbare BarbetraÈge an die
Zahlstellen (§ 13) gezahlt und alle Verp¯ichtungen
zur Lieferung von Aktien oder
sonstigen VermoÈgenswerten erfuÈllt worden
sind, keine Sicherheiten an ihren
VermoÈgensgegenstaÈnden zur Besicherung
gegenwaÈrtiger oder zukuÈnftiger Kapitalmarktverbindlichkeiten
einschlieûlich hierfuÈr
abgegebener Garantien zu bestellen, es sei
denn, daû die Teilschuldverschreibungen
gleichzeitig und im gleichen Rang an dieser
Sicherheit anteilig teilnehmen oder den
AnleiheglaÈubigern eine andere Sicherheit
gewaÈhrt wird, die von einer international
anerkannten unabhaÈngigen WirtschaftspruÈfungsgesellschaft
als gleichwertige
Sicherheit anerkannt wird. Die Verp¯ichtung
gemaÈû vorstehendem Satz ®ndet keine
Anwendung auf eine Sicherheit, (i) deren
Bestellung nach geltendem Recht zwingend ist
oder (ii) die zur Erlangung einer staatlichen
Genehmigung erforderlich ist. Eine Sicherheit,
die gemaÈû dem ersten Satz dieses § 8(1)(c) zu
leisten ist, kann auch zugunsten einer Person
bestellt werden, die als TreuhaÈnder der
AnleiheglaÈubiger handelt.
Pursuant to an undertaking dated September 12,
2001 (the ``Undertaking''), ERGO
Versicherungsgruppe Aktiengesellschaft,
DuÈsseldorf, Federal Republic of Germany (the
``Guarantor''):
(a) has unconditionally and irrevocably
guaranteed the due payment of principal of,
and interest on, the Bonds and all other
amounts, if any, payable by the Issuer under
these Conditions of Issue, and
(b) has unconditionally and irrevocably
guaranteed the delivery of the Shares and any
other property to be delivered under these
Conditions of Issue ((a) and (b) together, the
``Guarantee''), and
(c) has undertaken towards the Bondholders, until
such time as principal and interest, as well as
any other cash amounts payable under or in
respect of the Bonds, have been paid to the
Paying Agents (§ 13) and all obligations to
deliver Shares or other property have been
ful®lled, not to provide any security upon its
assets for any present or future Capital Market
Indebtedness, including any guarantee in
respect thereof, unless the Bonds at the same
time share pari passu and pro rata in such
security or unless such other security as shall
be approved by an independent accounting
®rm of recognized international standing as
being equivalent security has been made
available to the Bondholders. The
undertaking pursuant to the preceding
sentence shall not apply to a security (i)
which is mandatory according to applicable
laws, or (ii) which is a prerequisite for
governmental approvals. Any security which
is to be provided pursuant to the ®rst sentence
of this § 8(1)(c) may also be provided to a
person acting as Trustee for the Bondholders.
(2) Vertrag zugunsten Dritter. (2) Third-Party Bene®ciary Contract.
Die Verp¯ichtungserklaÈrung stellt einen Vertrag
zugunsten der AnleiheglaÈubiger als beguÈnstigte
Dritte gemaÈû § 328(1) BGB dar, die jedem
AnleiheglaÈubiger das Recht gibt, die ErfuÈllung der
62
The Undertaking constitutes a contract in favor of
the Bondholders as third party bene®ciaries
pursuant to § 328(1) of the German Civil Code
giving rise to the right of each Bondholder to

Verp¯ichtungserklaÈrung unmittelbar von der
Garantin zu verlangen und die Verp¯ichtungserklaÈrung
unmittelbar gegen die Garantin
durchzusetzen. Kopien der Verp¯ichtungserklaÈrung
sind fuÈr die AnleiheglaÈubiger bei den
GeschaÈftsstellen der Zahlstellen kostenlos
erhaÈltlich.
§9
(KuÈndigungsgruÈnde)
(1) KuÈndigungsgruÈnde. (1) Events of Default.
Jeder AnleiheglaÈubiger ist berechtigt, alle oder
einzelne seiner Teilschuldverschreibungen zu
kuÈndigen und deren sofortige RuÈckzahlung zum
Nennbetrag zuzuÈglich aufgelaufener Zinsen zu
verlangen, falls aus irgendeinem Grund:
(a) ein gemaÈû diesen Anleihebedingungen
geschuldeter Betrag nicht von oder im
Auftrag der Emittentin innerhalb von 15
Tagen nach dem betreffenden Zahlungstag
gezahlt wird, oder
(b) die Emittentin nicht gemaÈû diesen
Anleihebedingungen innerhalb von 30 Tagen
Aktien liefert, nachdem eine Zahlstelle (§ 13)
von einem AnleiheglaÈubiger gemaÈû § 9(2) eine
Benachrichtigung uÈber eine solche NichterfuÈllung
erhalten hat, oder
(c) die Emittentin oder die Garantin eine andere
Verp¯ichtung gemaÈû diesen Anleihebedingungen
bzw. der Verp¯ichtungserklaÈrung nicht
ordnungsgemaÈû erfuÈllt und die NichterfuÈllung
laÈnger als 60 Tage fortdauert, nachdem eine
Zahlstelle hieruÈber von einem AnleiheglaÈubiger
gemaÈû § 9(2) eine Benachrichtigung erhalten
hat, oder
(d) die Emittentin, die Garantin oder eine
Wesentliche Tochtergesellschaft eine faÈllige
Zahlungsverp¯ichtung, die sich aus einer
Kapitalmarktverbindlichkeit oder einer
Garantie oder HaftungsuÈbernahme fuÈr eine
Zahlungsverp¯ichtung aus einer Kapitalmarktverbindlichkeit
Dritter ergibt, nicht
erfuÈllt und die nicht erfuÈllten Zahlungsverp¯ichtungen
insgesamt e 20 Millionen
oder den entsprechenden Gegenwert in einer
anderen WaÈhrung uÈbersteigen, und diese
NichterfuÈllung laÈnger als 30 Tage, nachdem
eine Zahlstelle hieruÈber von einem
AnleiheglaÈubiger gemaÈû § 9(2) eine Benachrichtigung
erhalten hat, fortdauert; oder, falls
eine derartige Zahlungsverp¯ichtung der
Emittentin, der Garantin bzw. einer
Wesentlichen Tochtergesellschaft aufgrund
63
require performance of the Undertaking directly
from the Guarantor and to enforce the Undertaking
directly against the Guarantor. Copies of the
Undertaking are available free of charge to the
Bondholders at the of®ces of the Paying Agents.
§9
(Events of Default)
Each Bondholder shall be entitled to declare any or
all of its Bonds due and demand immediate
redemption thereof at their principal amount plus
accrued interest thereon in the event that, for
whatever reason:
(a) any amount due under these Conditions of
Issue has not been paid by or on behalf of the
Issuer within 15 days from the relevant
Payment Date, or
(b) the Issuer fails to deliver Shares as provided for
in these Conditions of Issue within 30 days
after a Paying Agent (§ 13) has received notice
of such failure from a Bondholder in
accordance with § 9(2), or
(c) the Issuer or the Guarantor fails to duly
perform any other obligation under these
Conditions of Issue or the Undertaking, as
the case may be, and any such failure continues
for more than 60 days after a Paying Agent has
received notice thereof from a Bondholder in
accordance with § 9(2), or
(d) the Issuer, the Guarantor or any Material
Subsidiary fails to ful®l any payment
obligation when due, arising from any
Capital Market Indebtedness or from any
guarantee or indemnity for a payment
obligation arising from any Capital Market
Indebtedness of a third party, and the total
unpaid amount exceeds e 20 million or the
equivalent in another currency, and any such
failure continues for more than 30 days after a
Paying Agent has received notice thereof from
a Bondholder in accordance with § 9(2); or any
such payment obligation of the Issuer, the
Guarantor or any Material Subsidiary, as the
case may be, becomes due prematurely by
reason of the occurrence of an event relating to
the Issuer, the Guarantor or any Material
Subsidiary or a failure by the Issuer, the

eines in der Person der Emittentin, der
Garantin oder einer Wesentlichen Tochtergesellschaft
eingetretenen Ereignisses oder der
NichterfuÈllung einer der Bedingungen dieser
Zahlungsverp¯ichtung durch die Emittentin,
die Garantin oder eine Wesentliche
Tochtergesellschaft vorzeitig faÈllig gestellt
wird; oder, falls eine fuÈr eine derartige
Zahlungsverp¯ichtung bestellte Sicherheit
verwertet wird, oder
(e) die Emittentin, die Garantin oder eine
Wesentliche Tochtergesellschaft ihre
Zahlungen allgemein einstellt, oder
(f) die Emittentin, die Garantin oder eine
Wesentliche Tochtergesellschaft ihre ZahlungsunfaÈhigkeit
bekanntgibt, oder
(g) die Emittentin, die Garantin oder eine
Wesentliche Tochtergesellschaft in
Liquidation tritt, es sei denn, daû dies im
Zusammenhang mit einer Verschmelzung oder
einer anderen Form des Zusammenschlusses
mit einer anderen Gesellschaft oder einer
Umstrukturierung steht, bei der diese andere
oder neue Gesellschaft alle Verp¯ichtungen
und Verbindlichkeiten der Emittentin, der
Garantin oder der Wesentlichen Tochtergesellschaft
uÈbernimmt, oder
(h) ein Gericht in der Bundesrepublik Deutschland
oder einem anderen Land ein
Insolvenzverfahren oder ein aÈhnliches
Verfahren in bezug auf die VermoÈgensgegenstaÈnde
der Emittentin, der Garantin
oder einer Wesentlichen Tochtergesellschaft
einleitet und dieses Verfahren nicht innerhalb
von 60 Tagen eingestellt oder ausgesetzt wird;
oder, falls die Emittentin, die Garantin, eine
Wesentliche Tochtergesellschaft oder das
Bundesaufsichtsamt fuÈr das Versicherungswesen
die EroÈffnung eines solchen
Verfahrens in bezug auf die VermoÈgensgegenstaÈnde
der Emittentin, der Garantin
oder einer Wesentlichen Tochtergesellschaft
beantragt, oder, falls die Emittentin, die
Garantin oder eine Wesentliche Tochtergesellschaft
eine allgemeine Schuldenregelung
zugunsten ihrer GlaÈubiger anbietet oder trifft;
oder
(i) es fuÈr die Emittentin oder die Garantin
unzulaÈssig wird, ihre Verp¯ichtungen im
Zusammenhang mit den Teilschuldverschreibungen
bzw. der Verp¯ichtungserklaÈrung
zu erfuÈllen.
64
Guarantor or any Material Subsidiary to
comply with any of the terms of any such
payment obligation; or a security interest
granted for any such payment obligation is
being enforced, or
(e) the Issuer, the Guarantor or any Material
Subsidiary suspends its payments generally, or
(f) the Issuer, the Guarantor or any Material
Subsidiary announces its inability to meet its
payment obligations, or
(g) the Issuer, the Guarantor or any Material
Subsidiary enters into liquidation except in
connection with a merger, consolidation or
other form of combination with another
company or in connection with a
reorganization and such other or new
company assumes all obligations and
liabilities of the Issuer, the Guarantor or such
Material Subsidiary, or
(h) a court in the Federal Republic of Germany or
any other country institutes insolvency
proceedings or similar proceedings with
respect to the assets of the Issuer, the
Guarantor or any Material Subsidiary and
such proceedings have not been discharged or
stayed within 60 days; or the Issuer, the
Guarantor, any Material Subsidiary or the
German Federal Insurance Supervisory
Authority (Bundesaufsichtsamt fuÈr das
Versicherungswesen) applies for institution
of such proceedings with respect to the assets
of the Issuer, the Guarantor or any Material
Subsidiary, or the Issuer, the Guarantor or any
Material Subsidiary offers or makes a general
arrangement for the bene®t of its creditors; or
(i) it becomes unlawful for the Issuer or the
Guarantor to ful®ll its obligations under the
Bonds or the Undertaking, as the case may be.

Das Recht, die Teilschuldverschreibungen faÈllig zu
stellen, erlischt, falls der KuÈndigungsgrund vor
AusuÈbung dieses Rechts geheilt wird. Eine
``Wesentliche Tochtergesellschaft'' ist (i) eine
Tochtergesellschaft der Garantin, deren gesamte
VermoÈgensgegenstaÈnde, NettoerloÈse oder
Nettogewinn mindestens 10% der konsolidierten
gesamten VermoÈgensgegenstaÈnde, NettoerloÈse bzw.
des Nettogewinns der Garantin darstellen, wobei
die diesbezuÈglich erforderlichen Berechnungen auf
der Basis des zu diesem Zeitpunkt aktuellen
gepruÈften Jahresabschlusses dieser Tochtergesellschaft
(oder, falls verfuÈgbar, des
konsolidierten gepruÈften Jahresabschlusses) und
des zu diesem Zeitpunkt aktuellen gepruÈften
konsolidierten Jahresabschlusses der Garantin und
ihrer Tochtergesellschaften zu erfolgen haben, oder
(ii) eine Gesellschaft, auf die alle oder im
wesentlichen alle VermoÈgensgegenstaÈnde und der
GeschaÈftsbetrieb einer Tochtergesellschaft der
Garantin uÈbertragen werden, welche unmittelbar
vor dieser UÈ bertragung eine Wesentliche
Tochtergesellschaft im Sinne von (i) war.
(2) Benachrichtigung. (2) Notice
Eine Benachrichtigung gemaÈû § 9(1) einschlieûlich
einer Benachrichtigung zum Zwecke der KuÈndigung
von Teilschuldverschreibungen ist einer Zahlstelle
in schriftlicher Form zu uÈbergeben oder mittels
eingeschriebenem Brief zuzusenden, jeweils
zusammen mit einer Bescheinigung der Depotbank
des AnleiheglaÈubigers, daû der AnleiheglaÈubiger
zum Zeitpunkt der Abgabe der schriftlichen
Benachrichtigung Inhaber der betreffenden
Teilschuldverschreibungen ist; im Falle des
Verzugs gemaÈû § 9(1)(c) sind zudem die UmstaÈnde
dazulegen, aus denen sich dieser Verzug ergibt.
(3) Wirksamkeit. (3) Effectiveness.
In den FaÈllen des § 9(1)(c) oder (d) wird eine
Benachrichtigung, durch welche die Teilschuldverschreibungen
gekuÈndigt werden, erst wirksam,
wenn bei einer Zahlstelle KuÈndigungserklaÈrungen
von Inhabern von Teilschuldverschreibungen
eingegangen sind, die insgesamt ein Zehntel des
Gesamtnennbetrags der zu diesem Zeitpunkt
ausstehenden Teilschuldverschreibungen darstellen,
sofern nicht bei deren Eingang zugleich einer der in
§ 9(1)(a), (b), (e), (f), (g), (h) oder (i) bezeichneten
FaÈlle, der die AnleiheglaÈubiger zur KuÈndigung ihrer
Teilschuldverschreibungen berechtigt, vorliegt und
fortdauert.
65
The right to declare Bonds due shall terminate if the
situation giving rise to it has been cured before the
right is exercised. ``Material Subsidiary'' means (i)
any subsidiary of the Guarantor whose total assets,
net revenues or net pro®ts represent at least 10% of
the consolidated total assets, net revenues or net
pro®ts, as the case may be, of the Guarantor, as
calculated by reference to the then most recent
audited ®nancial statements (or, if available,
consolidated audited ®nancial statements) of such
subsidiary and the then most recent audited
consolidated ®nancial statements of the Guarantor
and its subsidiaries or (ii) to which are transferred
all or substantially all of the assets and undertaking
of a subsidiary of the Guarantor which immediately
prior to such transfer is a Material Subsidiary
pursuant to (i).
Any notice, including any notice declaring Bonds
due, in accordance with § 9(1) shall be made by
means of a written declaration delivered by hand or
registered mail to a Paying Agent together with
evidence by means of a certi®cate of the
Bondholder's depositary bank that the
Bondholder at the time of such written notice is a
holder of the relevant Bonds, and in the case of
default pursuant to § 9(1)(c), together with evidence
specifying such default.
In the event speci®ed in § 9(1)(c) or (d), any notice
declaring Bonds due shall, unless at the time such
notice is received any of the events speci®ed in
§ 9(1)(a), (b), (e), (f), (g), (h) or (i) entitling
Bondholders to declare their Bonds due has
occurred and is continuing, become effective only
when a Paying Agent has received such notices from
holders of Bonds of at least one tenth in aggregate
nominal amount of the Bonds then outstanding.

§ 10
(Ersetzung der Emittentin)
(1) Ersetzung. (1) Substitution.
Die Garantin ist jederzeit berechtigt, die Emittentin
entweder durch sich selbst oder durch eine andere
Tochtergesellschaft, an der die Garantin mindestens
90% der Stimmrechte haÈlt, ohne die Zustimmung
der AnleiheglaÈubiger als Hauptschuldnerin in bezug
auf alle Verp¯ichtungen aus und im Zusammenhang
mit den Teilschuldverschreibungen zu ersetzen
(die ``Neue Emittentin''), sofern:
(a) die Neue Emittentin alle Zustimmungen und
Genehmigungen erhalten hat und in der Lage
ist, alle sich aus oder im Zusammenhang mit
den Teilschuldverschreibungen ergebenden
Verp¯ichtungen ohne Abzug oder Einbehalt
von Steuern oder sonstigen Quellenabgaben zu
erfuÈllen sowie die hierzu erforderlichen BetraÈge
ohne BeschraÈnkungen an die Zahlstellen (§ 13)
zu uÈbertragen;
(b) die Neue Emittentin alle Verp¯ichtungen der
Emittentin aus und im Zusammenhang mit den
Teilschuldverschreibungen uÈbernimmt;
(c) die Bestimmungen von § 1.4 der
Verp¯ichtungserklaÈrung in vollem Umfang
guÈltig und wirksam bleiben, sofern die Neue
Emittentin nicht die Garantin ist; und
(d) die Neue Emittentin sich verp¯ichtet, jedem
AnleiheglaÈubiger alle Steuern, GebuÈhren oder
Abgaben zu erstatten, die ihm infolge der
UÈ bernahme der Verp¯ichtungen der
Emittentin durch die Neue Emittentin
auferlegt werden.
(2) Bekanntmachung. (2) Notice.
Jede solche Ersetzung ist den AnleiheglaÈubigern
gemaÈû § 11 bekanntzumachen.
(3) Bezugnahmen. (3) References.
Im Falle einer solchen Ersetzung gilt jede
Bezugnahme auf die Emittentin in diesen
Anleihebedingungen als Bezugnahme auf die Neue
Emittentin; § 8 dieser Anleihebedingungen ®ndet
auf die Garantin und ihre Verp¯ichtungen aus der
Verp¯ichtungserklaÈrung sinngemaÈû Anwendung.
66
§ 10
(Substitution of the Issuer)
The Guarantor shall at any time be entitled, without
the consent of the Bondholders, to substitute the
Issuer either by itself or by another subsidiary in
which the Guarantor holds at least 90% of the
voting rights as principal debtor in respect of all
obligations arising under or in connection with the
Bonds (the ``Substitute Issuer''), provided that:
(a) the Substitute Issuer has received all
authorizations and approvals, and is in a
position, to ful®l all obligations arising under
or in connection with the Bonds without being
obliged to make any deduction or withholding
with respect to any taxes or other duties of
whatever nature to be withheld at source, and
to transfer all amounts which are required
therefor to the Paying Agents (§ 13) without
any restrictions;
(b) the Substitute Issuer assumes all obligations of
the Issuer arising under or in connection with
the Bonds;
(c) if the Substitute Issuer is not the Guarantor,
the provisions of Section 1.4 of the
Undertaking shall remain in full force and
effect; and
(d) the Substitute Issuer undertakes to reimburse
any Bondholder for such taxes, fees or duties
which may be imposed upon it as a
consequence of the assumption of the
obligations of the Issuer by the Substitute
Issuer.
Any such substitution shall be noti®ed to the
Bondholders in accordance with § 11.
In the event of such substitution, any reference in
these Conditions of Issue to the Issuer shall from
then on be deemed to be references to the Substitute
Issuer and § 8 of these Conditions of Issue shall
apply mutatis mutandis to the Guarantor and its
obligations under the Undertaking.

§ 11
(Bekanntmachungen)
Alle Bekanntmachungen, welche die
Teilschuldverschreibungen betreffen, werden in
folgenden Zeitungen veroÈffentlicht: (a) einer von
den Bestimmungen der Luxemburger WertpapierboÈrse
anerkannten Zeitung, (b) einer in
englischer Sprache erscheinenden fuÈhrenden
Tageszeitung mit allgemeiner Verbreitung in
London, und (c) einer in deutscher Sprache
erscheinenden fuÈhrenden Tageszeitung mit
allgemeiner Verbreitung in Deutschland. Die
Bekanntmachungen werden unter normalen
UmstaÈnden voraussichtlich jeweils im
Luxemburger Wort, der Financial Times und der
BoÈrsen-Zeitung erscheinen. Eine Bekanntmachung
wird fuÈr alle Zwecke am Datum der
VeroÈffentlichung in der von den Bestimmungen
der Luxemburger WertpapierboÈrse anerkannten
Zeitung wirksam.
§ 12
(Begebung weiterer Teilschuldverschreibungen)
Die Emittentin ist berechtigt, jederzeit ohne
Zustimmung der AnleiheglaÈubiger weitere
Teilschuldverschreibungen mit gleicher Ausstattung
(abgesehen von Zinsen, die vor der
Begebung weiterer Teilschuldverschreibungen faÈllig
geworden sind) in der Weise zu begeben, daû sie mit
diesen Teilschuldverschreibungen zusammengefaût
werden, eine einheitliche Anleihe bilden und den
Gesamtnennbetrag der Anleihe entsprechend
erhoÈhen. Der Begriff ``Teilschuldverschreibungen''
umfaût im Falle einer solchen ErhoÈhung auch diese
zusaÈtzlich begebenen Teilschuldverschreibungen.
§ 13
(ErfuÈllungsgehilfen)
(1) Zahlstellen, Umtauschstellen und Berechnungsstelle.
Morgan Stanley Bank AG, Frankfurt am Main, ist
die Hauptzahlstelle (die ``Hauptzahlstelle'') und die
Hauptumtauschstelle (die ``Hauptumtauschstelle''),
und Dexia Banque International aÁ Luxembourg,
socieÂte anonyme, Luxemburg, Groûherzogtum
Luxemburg, ist die Luxemburger Zahlstelle
(zusammen mit der Hauptzahlstelle die
``Zahlstellen'') und die Luxemburger
Umtauschstelle (zusammen mit der
Hauptumtauschstelle die ``Umtauschstellen'').
Dexia Banque International aÁ Luxembourg,
socieÂte anonyme ist auch die Berechnungsstelle fuÈr
die Berechnung der Anzahl der Aktien, der Barund/oder
sonstigen Sachwerte, die bei AusuÈbung
des Umtauschrechts zu liefern sind, und zustaÈndig
67
§ 11
(Notices)
All notices regarding the Bonds shall be published
in the following journals: (a) a newspaper
recognised by the rules of the Luxembourg Stock
Exchange, (b) a leading daily newspaper printed in
the English language and of general circulation in
London, and (c) a leading daily newspaper printed
in the German language and of general circulation
in Germany. It is expected that such notices will
normally be published in the Luxemburger Wort,
the Financial Times and the BoÈrsen-Zeitung. Any
notice will become effective for all purposes on the
date of its publication in the newspaper recognised
by the rules of the Luxembourg Stock Exchange.
§ 12
(Issue of Additional Bonds)
The Issuer shall be entitled, from time to time
without the consent of the Bondholders, to issue
additional bonds with identical terms (except for
any interest due prior to such issue of additional
bonds), so that the same shall be consolidated with,
form a single issue with, and increase the aggregate
principal amount of, the Bonds. The term ``Bonds''
shall, in the event of such increase, also comprise
such additional bonds.
§ 13
(Agents)
(1) Paying Agents, Exchange Agents and
Calculation Agent.
Morgan Stanley Bank AG, Frankfurt am Main,
Federal Republic of Germany, shall be the Principal
Paying Agent (the ``Principal Paying Agent'') and
the principal exchange agent (the ``Principal
Exchange Agent''), and Dexia Banque
Internationale aÁ Luxembourg, socieÂte anonyme,
Luxembourg, Grand-Duchy of Luxembourg shall
be the Luxembourg paying agent (together with the
Principal Paying Agent, the ``Paying Agents'') and
the Luxembourg exchange agent (together with the
Principal Exchange Agent, the ``Exchange Agents'').
Dexia Banque Internationale aÁ Luxembourg,
socieÂte anonyme shall also be the Calculation
Agent for the purpose of calculating the number
of Shares, cash and/or other property to be

fuÈr die Anpassungen und Bestimmungen gemaÈû §§ 5
und 6 (die ``Berechnungsstelle'' und zusammen mit
den Umtauschstellen und den Zahlstellen die
``ErfuÈllungsgehilfen''). Die Berechnungsstelle ist der
einzige ErfuÈllungsgehilfe, der fuÈr die Bestimmung
der in § 5 vorgesehenen Anpassungen und fuÈr die
sonstigen in den §§ (3)(a), 5(1)(b), 5(3) und 6
vorgesehenen Bestimmungen verantwortlich ist.
Die anderen ErfuÈllungsgehilfen haben keinerlei
Verp¯ichtungen, derartige Bestimmungen
vorzunehmen. Die ErfuÈllungsgehilfen sind von den
BeschraÈnkungen des § 181 BGB und
entsprechenden etwaigen BeschraÈnkungen gemaÈû
dem Recht des Groûherzogtums Luxemburg
befreit. Die Emittentin hat dafuÈr zu sorgen, daû
solange Teilschuldverschreibungen ausstehen,
immer eine Zahlstelle, eine Umtauschstelle und ein
ErfuÈllungsgehilfe, welcher die Funktionen der
Berechnungsstelle uÈbernimmt, im Groûherzogtum
Luxemburg zur VerfuÈgung stehen, um die ihnen in
diesen Anleihebedingungen zugewiesenen Aufgaben
zu erfuÈllen.
delivered upon the exercise of the Exchange Right
and of making the adjustments and determinations
referred to in § § 5 and 6 (the ``Calculation Agent'',
and together with the Exchange Agents and the
Paying Agents, the ``Agents''). The Calculation
Agent shall be the sole Agent responsible for
determining the adjustments referred to in § 5 and
making the other determinations referred to in
§ § 3(3)(a), 5(1)(b), 5(3) and 6. The other Agents
shall have no obligation to make any such
determinations. The Agents shall be exempt from
the restrictions set forth in § 181 of the German
Civil Code and any equivalent restriction under the
laws of the Grand-Duchy of Luxembourg, if
applicable. The Issuer shall procure that for as
long as any Bonds are outstanding, there shall
always be a Paying Agent, an Exchange Agent and
an agent performing the functions of the
Calculation Agent in the Grand-Duchy of
Luxembourg to perform the functions assigned to
them in these Conditions of Issue.
(2) Ersetzung der ErfuÈllungsgehilfen. (2) Substitution of Agents.
Die Emittentin kann jederzeit gemaÈû § 13(2) Satz 4
durch Bekanntmachung gemaÈû § 11 mit einer Frist
von mindestens 30 Tagen einen ErfuÈllungsgehilfen
durch eine andere fuÈhrende Bank mit
HauptgeschaÈftssitz oder einer Zweigniederlassung
in der Bundesrepublik Deutschland bzw. dem
Groûherzogtum Luxemburg als Zahlstelle,
Umtauschstelle bzw. Berechnungsstelle ersetzen.
Jeder ErfuÈllungsgehilfe kann jederzeit durch
KuÈndigung mit einer Frist von mindestens 30
Tagen gegenuÈber der Emittentin und den anderen
ErfuÈllungsgehilfen von seinem Amt zuruÈcktreten.
Dieser RuÈcktritt wird jedoch fruÈhestens 30 Tage
nach einer entsprechenden Bekanntmachung der
Emittentin gemaÈû § 11 uÈber die Ernennung einer
fuÈhrenden Bank mit HauptgeschaÈftssitz oder einer
Zweigniederlassung in der Bundesrepublik
Deutschland bzw. dem Groûherzogtum
Luxemburg als neue Zahlstelle, Umtauschstelle
bzw. Berechnungsstelle wirksam.
The Issuer may at any time, subject to § 13(2)
sentence 4, by giving not less than 30 days notice in
accordance with § 11, replace an Agent by another
leading bank maintaining its head of®ce or a branch
in the Federal Republic of Germany or the Grand-
Duchy of Luxembourg, as the case may be, as
Paying Agent, Exchange Agent or Calculation
Agent, as the case may be. Each Agent may at
any time resign from of®ce by giving not less than
30 days' notice to the Issuer and the other Agents.
However, such resignation shall become effective
only upon the appointment by the Issuer of a
leading bank maintaining its head of®ce or a branch
in the Federal Republic of Germany or the Grand-
Duchy of Luxembourg, as the case may be, as new
Paying Agent, Exchange Agent or Calculation
Agent, as the case may be, and the giving of not
less than 30 days' notice of any such appointment in
accordance with § 11.
(3) Kein AuftragsverhaÈltnis. (3) No Relationship of Agency.
Die ErfuÈllungsgehilfen handeln in ihrer jeweiligen
Eigenschaft ausschlieûlich als ErfuÈllungsgehilfen
der Emittentin und stehen in dieser Eigenschaft
nicht in einem Auftrags- oder TreuhandverhaÈltnis
zu den AnleiheglaÈubigern.
(4) Berechnungen. (4) Calculations.
Alle von einem ErfuÈllungsgehilfen gemaÈû diesen
Anleihebedingungen getaÈtigten Bestimmungen und
Berechnungen sind fuÈr alle beteiligten Parteien
68
The Agents in such capacities are acting exclusively
as agent of the Issuer and in such capacities do not
have any relationship of agency or trust with the
Bondholders.
Any determinations and calculations made by any
Agent in accordance with these Conditions of Issue
shall be conclusive and binding on all parties

(einschlieûlich der AnleiheglaÈubiger) endguÈltig und
bindend, auûer im Falle eines offensichtlichen
Irrtums.
§ 14
(Verschiedenes)
(1) Anwendbares Recht. (1) Applicable Law.
Die Teilschuldverschreibungen unterliegen deutschem
Recht.
concerned (including, but not limited to, the
Bondholders), save for manifest error.
§ 14
(Miscellaneous)
The Bonds shall be governed by and construed in
accordance with German law.
(2) Gerichtsstand. (2) Place of Jurisdiction.
Gerichtsstand fuÈr alle Rechtsstreitigkeiten aus oder
im Zusammenhang mit diesen Anleihebedingungen
ist Frankfurt am Main.
Place of jurisdiction for all proceedings arising from
matters governed by these Conditions of Issue shall
be Frankfurt am Main.
(3) ErfuÈllungsort. (3) Place of Performance.
ErfuÈllungsort ist Frankfurt am Main. Place of performance shall be Frankfurt am Main.
(4) Geltendmachung von AnspruÈchen. (4) Enforcement.
Jeder AnleiheglaÈubiger kann in Rechtsstreitigkeiten
gegen die Emittentin oder die Garantin oder in
Rechtsstreitigkeiten, an denen der AnleiheglaÈubiger,
die Emittentin oder die Garantin beteiligt ist, im
eigenen Namen seine Rechte aus den von ihm
gehaltenen Teilschuldverschreibungen geltendmachen
und durchsetzen auf der Grundlage (a)
einer Bescheinigung seiner Depotbank (wie
nachstehend de®niert), (i) die den vollen Namen
und die volle Anschrift des AnleiheglaÈubigers
enthaÈlt, (ii) den Gesamtnennbetrag der
Teilschuldverschreibungen, die am Ausstellungstag
dieser Bescheinigung dem bei dieser Depotbank
unterhaltenen Depot des AnleiheglaÈubigers
gutgeschrieben sind, angibt und (iii) bestaÈtigt, daû
die Depotbank der Clearstream Frankfurt und einer
Zahlstelle (§ 13) eine schriftliche Mitteilung
gemacht hat, welche die Angaben gemaÈû (i) und
(ii) enthaÈlt und BestaÈtigungsvermerke der
Clearstream Frankfurt und des betreffenden
Kontoinhabers traÈgt, und (b) einer Kopie der
Globalurkunde, deren UÈ bereinstimmung mit dem
Original der Globalurkunde von einem
Vertretungsberechtigten der Clearstream Frankfurt
bestaÈtigt wird. Im Sinne der vorstehenden
Bestimmungen bedeutet ``Depotbank'' eine Bank
oder ein anderes Finanzinstitut mit einer
Genehmigung fuÈr das Wertpapier-DepotgeschaÈft,
bei dem der AnleiheglaÈubiger ein Wertpapierdepot
unterhaÈlt, auf dem Teilschuldverschreibungen
verbucht sind; dieser Begriff schlieût Clearstream
Frankfurt, Clearstream Luxemburg und Euroclear
ein.
69
Any Bondholder may in any proceedings against
the Issuer or the Guarantor or to which the
Bondholder, the Issuer or the Guarantor are
parties protect and enforce in its own name its
rights arising under its Bonds on the basis of (a) a
certi®cate issued by its Depository Bank (as de®ned
below) (i) stating the full name and address of the
Bondholder, (ii) specifying the aggregate nominal
amount of Bonds credited on the date of such
statement to the Bondholder's account with such
Depository Bank and (iii) con®rming that the
Depository Bank has given a written notice to
Clearstream Frankfurt and a Paying Agent (§ 13)
containing the information pursuant to (i) and (ii)
and bearing acknowledgements of Clearstream
Frankfurt and the relevant accountholder, and (b)
a copy of the Global Certi®cate certi®ed as being a
true copy by a duly authorized of®cer of
Clearstream Frankfurt. For purposes of the
foregoing, ``Depository Bank'' means any bank or
other ®nancial institution authorized to engage in
securities custody business with which the
Bondholder maintains a securities account in
respect of any Bonds and includes Clearstream
Frankfurt, Clearstream Luxembourg and
Euroclear.

(5) Teilunwirksamkeit. (5) Severability.
Sollte eine der Bestimmungen dieser Anleihebedingungen
ganz oder teilweise unwirksam oder
undurchfuÈhrbar sein oder werden, so bleibt die
Wirksamkeit oder DurchfuÈhrbarkeit der uÈbrigen
Bestimmungen hiervon unberuÈhrt. In diesem Fall
soll anstelle der unwirksamen Bestimmung, soweit
rechtlich moÈglich, eine dem Sinn und
wirtschaftlichen Zweck dieser Anleihebedingungen
zum Zeitpunkt der Begebung der
Teilschuldverschreibungen entsprechende
Bestimmung treten. Sollten diese Anleihebedingungen
eine LuÈcke enthalten, ist eine
ergaÈnzende Auslegung, die dem Sinn und Zweck
dieser Anleihebedingungen entspricht, unter
angemessener BeruÈcksichtigung der berechtigten
Interessen der beteiligten Parteien vorzunehmen.
Allein der
§ 15
(Sprache)
deutsche Wortlaut dieser
Anleihebedingungen ist rechtsverbindlich. Die
englische UÈ bersetzung dient nur der Information.
70
Should any of the provisions of these Conditions of
Issue be or become invalid or unenforceable in
whole or in part, the validity or the enforceability of
the remaining provisions shall not in any way be
affected or impaired thereby. In this case, the
invalid provision shall be replaced by a provision
which, to the extent legally possible, provides for an
interpretation in line with the meaning and the
economic purposes of the Conditions of Issue at the
time of the issue of the Bonds. Under circumstances
in which these Conditions of Issue prove to be
incomplete, a supplementary interpretation in
accordance with the meaning and the purposes of
these Conditions of Issue under due consideration
of the legitimate interest of the parties involved shall
be applied.
§ 15
(Language)
The German version of these Conditions of Issue
shall be the only legally binding version. The
English translation is for convenience only.

UNDERTAKING
WITH RESPECT TO THE BONDS EXCHANGEABLE FOR E.ON SHARES
The German version of this Undertaking is legally binding. The English translation is for convenience
only.
Verp¯ichtungserklaÈrung
(Garantie and NegativerklaÈrung)
der ERGO Versicherungsgruppe Aktiengesellschaft,
DuÈsseldorf, Bundesrepublik Deutschland
zugunsten der GlaÈubiger der
2,25% Garantierten Umtauschanleihe mit
FaÈlligkeit in 2006
im Gesamtnennbetrag von bis zu e 345.000.000
umtauschbar in auf den Inhaber lautende
Stammaktien ohne Nennbetrag der E.ON AG
begeben durch die ERGO International
Aktiengesellschaft, DuÈsseldorf, Bundesrepublik
Deutschland
1.1 ERGO Versicherungsgruppe Aktiengesellschaft
(die ``Garantin'') uÈbernimmt
hiermit gegenuÈber den jeweiligen Inhabern
der vorstehend genannten Teilschuldverschreibungen
(die ``AnleiheglaÈubiger'') die
unbedingte und unwiderru¯iche Garantie fuÈr
(i) die ordnungsgemaÈûe Zahlung von Kapital
und Zinsen auf die Teilschuldverschreibungen
sowie aller sonstigen etwaigen von der
Emittentin gemaÈû den Anleihebedingungen
der Teilschuldverschreibungen (die
``Anleihebedingungen'') zahlbaren BetraÈge
und (ii) die Lieferung der Aktien und der
sonstigen gemaÈû den Anleihebedingungen zu
liefernden VermoÈgenswerte (die ``Lieferbaren
Wertpapiere''). Diese Garantie begruÈndet
unbesicherte und nicht nachrangige
Verp¯ichtungen der Garantin, die im
gleichen Rang mit allen anderen
gegenwaÈrtigen und zukuÈnftigen
unbesicherten und nicht nachrangigen
Verbindlichkeiten der Garantin stehen.
1.2 Sinn und Zweck dieser Garantie ist es,
sicherzustellen, daû die AnleiheglaÈubiger
unter allen tatsaÈchlichen und rechtlichen
UmstaÈnden und unabhaÈngig von der
Wirksamkeit und Durchsetzbarkeit der
Verp¯ichtungen der ERGO International
Aktiengesellschaft (die ``Emittentin''), und
unabhaÈngig von sonstigen GruÈnden einer
NichterfuÈllung von Verp¯ichtungen der
Emittentin, alle zahlbaren BetraÈge und/oder
Lieferbaren Wertpapiere am jeweiligen
FaÈlligkeitstag gemaÈû den Anleihebedingungen
erhalten. Die Garantin
verzichtet auf das Recht zur Aufrechnung,
71
Undertaking
(Guarantee and Negative Pledge)
of ERGO Versicherungsgruppe Aktiengesellschaft,
DuÈsseldorf, Federal Republic of Germany
in favor of the holders of the
2.25% Guaranteed Exchangeable Bonds
due 2006
in an aggregate nominal amount of up to
e 345,000,000 exchangeable for ordinary bearer
shares with no par value of E.ON AG
issued by ERGO International Aktiengesellschaft,
DuÈsseldorf, Federal Republic of Germany
1.1 ERGO Versicherungsgruppe Aktiengesellschaft
(the ``Guarantor'') hereby
unconditionally and irrevocably guarantees
to the holders of the above mentioned Bonds
from time to time (the ``Bondholders'') (i) the
due payment of principal of and interest on,
the Bonds and all other amounts, if any,
payable by the Issuer under the Conditions of
Issue of the Bonds (the ``Conditions'') and (ii)
the delivery of the Shares and any other
property to be delivered under the Conditions
(the ``Deliverable Securities''). This Guarantee
constitutes unsecured and unsubordinated
obligations of the Guarantor which shall
rank at least pari passu with all other present
and future unsecured and unsubordinated
obligations of the Guarantor.
1.2 The intent and purpose of this Guarantee is to
ensure that the Bondholders under any and all
circumstances, whether factual or legal, and
irrespective of validity or enforceability of the
obligations of ERGO International
Aktiengesellschaft (the ``Issuer''), or of any
other reasons on the basis of which the Issuer
may fail to ful®l its obligations, receive on the
respective due date any and all sums payable
and the Deliverable Securities in accordance
with the Conditions. The Guarantor waives
any right of set-off, the invocation of
counterclaims and similar defences. This
Guarantee is reinstated if any payment of

die Geltendmachung von GegenanspruÈchen
und aÈhnliche Einwendungen. Diese Garantie
lebt wieder auf, falls eine Zahlung von Kapital
oder Zinsen auf die Teilschuldverschreibungen
oder etwaiger sonstiger von der
Emittentin gemaÈû den Anleihebedingungen
zahlbarer BetraÈge oder eine Lieferung von
Lieferbaren Wertpapieren gemaÈû den
Anleihebedingungen infolge der Insolvenz
der Emittentin zuruÈckzugewaÈhren ist.
1.3 Die Garantin kann BetraÈge an Kapital und
Zinsen sowie alle anderen gegebenenfalls auf
die Teilschuldverschreibungen zu zahlenden
BetraÈge, deren Zahlung von den AnleiheglaÈubigern
nicht innerhalb von zwoÈlf
Monaten nach deren FaÈlligkeit geltend
gemacht worden ist, beim Amtsgericht in
Frankfurt am Main hinterlegen. Soweit die
Garantin auf das Recht zur RuÈcknahme der
hinterlegten BetraÈge verzichtet, erloÈschen die
betreffenden AnspruÈche der AnleiheglaÈubiger
gegen die Garantin.
1.4 Im Falle der Ersetzung der Emittentin durch
eine andere Tochtergesellschaft der Garantin
gemaÈû § 10 der Anleihebedingungen erstreckt
sich diese Garantie auf saÈmtliche von der
Neuen Emittentin gemaÈû den
Anleihebedingungen zahlbaren BetraÈge und
die Lieferung der Lieferbaren Wertpapiere.
Dies gilt auch dann, wenn die Neue
Emittentin die Verp¯ichtungen aus den
Teilschuldverschreibungen unmittelbar von
der Garantin uÈbernommen hat.
2. Die Garantin verp¯ichtet sich gegenuÈber
den AnleiheglaÈubigern, solange bis Kapital
und Zinsen sowie etwaige weitere auf
die Teilschuldverschreibungen zahlbare
BarbetraÈge an die Zahlstellen gezahlt und alle
Verp¯ichtungen zur Lieferung von Lieferbaren
Aktien erfuÈllt worden sind, keine Sicherheiten
an ihren VermoÈgensgegenstaÈnden zur
Besicherung gegenwaÈrtiger oder zukuÈnftiger
Kapitalmarktverbindlichkeiten einschlieûlich
hierfuÈr abgegebener Garantien zu bestellen, es
sei denn, daû die Teilschuldverschreibungen
gleichzeitig und im gleichen Rang an dieser
Sicherheit anteilig teilnehmen oder den
AnleiheglaÈubigern eine andere Sicherheit
gewaÈhrt wird, die von einer international
anerkannten unabhaÈngigen WirtschaftspruÈfungsgesellschaft
als gleichwertige Sicherheit
anerkannt wird. Die Verp¯ichtung gemaÈû
vorstehendem Satz ®ndet keine Anwendung
auf eine Sicherheit, (i) deren Bestellung nach
geltendem Recht zwingend ist oder (ii) die zur
72
principal of, or interest on, the Bonds or any
other amounts payable by the Issuer under the
Conditions or the delivery of Deliverable
Securities under the Conditions is recaptured
as a result of the insolvency of the Issuer.
1.3 The Guarantor may deposit with the lower
court (Amtsgericht) in Frankfurt am Main
amounts of principal, interest and all other
amounts due under the Bonds, if any, not
claimed by Bondholders within twelve months
after the date on which such amounts have
become due. To the extent that the Guarantor
waives its right to withdraw such deposit, the
relevant claim of the Bondholders against the
Guarantor shall cease.
1.4 In the event of a substitution of the Issuer by
another subsidiary of the Guarantor pursuant
to § 10 of the Conditions, this Guarantee shall
extend to any and all amounts payable by the
Substitute Issuer and delivery of the
Deliverable Securities pursuant to the
Conditions. The foregoing shall also apply if
the Substitute Issuer shall have assumed the
obligations arising under the Bonds directly
from the Guarantor.
2. The Guarantor hereby undertakes towards the
Bondholders, until such time as principal and
interest, as well as any other cash amounts
payable under or in respect of the Bonds have
been paid to the Paying Agents and all
obligations to deliver Deliverable Securities
have been ful®lled, not to provide any security
upon its assets for any present or future
Capital Market Indebtedness, including any
guarantee in respect thereof, unless the Bonds
at the same time share pari passu and pro rata
in such security or unless such other security as
shall be approved by an independent
accounting ®rm of recognized international
standing as being equivalent security has been
made available to the Bondholders. The
undertaking pursuant to the preceding
sentence shall not apply to a security (i)
which is mandatory according to applicable
laws, or (ii) which is a prerequisite for
governmental approvals. Any security which
is to be provided pursuant to the ®rst sentence

Erlangung einer staatlichen Genehmigung
erforderlich ist. Eine Sicherheit, die gemaÈû
dem ersten Satz dieses Absatz 2. zu leisten ist,
kann auch zugunsten einer Person bestellt
werden, die als TreuhaÈnder der
AnleiheglaÈubiger handelt.
3. Diese Verp¯ichtungserklaÈrung stellt einen
Vertrag zugunsten der AnleiheglaÈubiger als
beguÈnstigte Dritte gemaÈû § 328(1) BGB dar,
die jedem AnleiheglaÈubiger das Recht gibt, die
ErfuÈllung dieser Verp¯ichtungserklaÈrung
unmittelbar von der Garantin zu verlangen
und diese Verp¯ichtungserklaÈrung unmittelbar
gegen die Garantin durchzusetzen.
4.1 Diese Verp¯ichtungserklaÈrung unterliegt
deutschem Recht.
4.2 Gerichtsstand fuÈr alle Rechtsstreitigkeiten aus
oder im Zusammenhang mit dieser
Verp¯ichtungserklaÈrung ist Frankfurt am
Main.
4.3 Begriffe, die in dieser Verp¯ichtungserklaÈrung
verwendet werden und in den
Anleihebedingungen de®niert sind, haben in
dieser Verp¯ichtungserklaÈrung die gleiche
Bedeutung wie in den Anleihebedingungen,
soweit sie in dieser Verp¯ichtungserklaÈrung
nicht anderweitig de®niert sind.
of this paragraph 2 may also be provided to a
person acting as Trustee for the Bondholders.
3. This Undertaking constitutes a contract in
favor of the Bondholders as third party
bene®ciaries pursuant to § 328(1) of the
German Civil Code giving rise to the right of
each Bondholder to require performance of
this Undertaking directly from the Guarantor
and to enforce this Undertaking directly
against the Guarantor.
4.1 This Undertaking shall be governed by and
construed in accordance with German law.
4.2 Place of jurisdiction for all proceedings arising
from matters governed by or arising in
connection with this Undertaking shall be
Frankfurt am Main.
4.3 Terms used in this Undertaking and de®ned in
the Conditions shall have in this Undertaking
the same meaning as in the Conditions unless
they are otherwise de®ned in this Undertaking.
4.4 ErfuÈllungsort ist Frankfurt am Main. 4.4 Place of performance shall be Frankfurt am
Main.
5. Die Garantin einerseits und Morgan Stanley
Bank AG und Dexia Banque International aÁ
Luxembourg, socieÂte anonyme (in dieser
Eigenschaft die ``Zahlstellen'') andererseits
vereinbaren, daû die Zahlstellen nicht als
TreuhaÈnder oder in aÈhnlicher Eigenschaft fuÈr
die AnleiheglaÈubiger handeln. Morgan Stanley
Bank AG verp¯ichtet sich, das Original dieser
Verp¯ichtungserklaÈrung bis zur ErfuÈllung
saÈmtlicher Verp¯ichtungen aus den
Teilschuldverschreibungen und der Garantie
zu verwahren.
5. The Guarantor, on the one hand, and Morgan
Stanley Bank AG and Dexia Banque
Internationale aÁ Luxembourg, socieÂteÂ
anonyme (in this capacity, the ``Paying
Agents''), on the other hand, agree that the
Paying Agents are not acting as trustee or in a
similar capacity for the Bondholders. Morgan
Stanley Bank AG undertakes to hold the
original copy of this Undertaking in custody
until all obligations under the Bonds and the
Guarantee have been ful®lled.
[Unterschrift der Garantin] [Signature of the Guarantor]
[Annahme durch die Zahlstellen] [Acceptance by the Paying Agents]
73

UNDERTAKING
WITH RESPECT TO THE BONDS EXCHANGEABLE FOR AVENTIS SHARES
The German version of this Undertaking is legally binding. The English translation is for convenience only.
Verp¯ichtungserklaÈrung
(Garantie and NegativerklaÈrung)
der ERGO Versicherungsgruppe Aktiengesellschaft,
DuÈsseldorf, Bundesrepublik Deutschland
zugunsten der GlaÈubiger der
0,75% Garantierten Umtauschanleihe mit
FaÈlligkeit in 2006
im Gesamtnennbetrag von bis zu e 345.000.000
umtauschbar in Stammaktien mit einem
Nennbetrag von e 3,82 je Aktie der Aventis S.A.
begeben durch die ERGO International
Aktiengesellschaft, DuÈsseldorf, Bundesrepublik
Deutschland
1.1 ERGO Versicherungsgruppe Aktiengesellschaft
(die ``Garantin'') uÈbernimmt
hiermit gegenuÈber den jeweiligen Inhabern
der vorstehend genannten Teilschuldverschreibungen
(die ``AnleiheglaÈubiger'') die
unbedingte und unwiderru¯iche Garantie fuÈr
(i) die ordnungsgemaÈûe Zahlung von Kapital
und Zinsen auf die Teilschuldverschreibungen
sowie aller sonstigen etwaigen von der
Emittentin gemaÈû den Anleihebedingungen
der Teilschuldverschreibungen (die
``Anleihebedingungen'') zahlbaren BetraÈge
und (ii) die Lieferung der Aktien und der
sonstigen gemaÈû den Anleihebedingungen zu
liefernden VermoÈgenswerte (die ``Lieferbaren
Wertpapiere''). Diese Garantie begruÈndet
unbesicherte und nicht nachrangige
Verp¯ichtungen der Garantin, die im
gleichen Rang mit allen anderen
gegenwaÈrtigen und zukuÈnftigen
unbesicherten und nicht nachrangigen
Verbindlichkeiten der Garantin stehen.
1.2 Sinn und Zweck dieser Garantie ist es,
sicherzustellen, daû die AnleiheglaÈubiger
unter allen tatsaÈchlichen und rechtlichen
UmstaÈnden und unabhaÈngig von der
Wirksamkeit und Durchsetzbarkeit der
Verp¯ichtungen der ERGO International
Aktiengesellschaft (die ``Emittentin''), und
unabhaÈngig von sonstigen GruÈnden einer
NichterfuÈllung von Verp¯ichtungen der
Emittentin, alle zahlbaren BetraÈge und/oder
Lieferbaren Wertpapiere am jeweiligen
FaÈlligkeitstag gemaÈû den Anleihebedingungen
erhalten. Die Garantin
verzichtet auf das Recht zur Aufrechnung,
die Geltendmachung von GegenanspruÈchen
74
Undertaking
(Guarantee and Negative Pledge)
of ERGO Versicherungsgruppe Aktiengesellschaft,
DuÈsseldorf, Federal Republic of Germany
in favor of the holders of the
0.75% Guaranteed Exchangeable Bonds
due 2006
in an aggregate nominal amount of up to
e 345,000,000 exchangeable for ordinary shares,
nominal value e 3.82 per share, of Aventis S.A.
issued by ERGO International Aktiengesellschaft,
DuÈsseldorf, Federal Republic of Germany
1.1 ERGO Versicherungsgruppe Aktiengesellschaft
(the ``Guarantor'') hereby
unconditionally and irrevocably guarantees
to the holders of the above mentioned Bonds
from time to time (the ``Bondholders'') (i) the
due payment of principal of and interest on,
the Bonds and all other amounts, if any,
payable by the Issuer under the Conditions of
Issue of the Bonds (the ``Conditions'') and (ii)
the delivery of the Shares and any other
property to be delivered under the Conditions
(the ``Deliverable Securities''). This Guarantee
constitutes unsecured and unsubordinated
obligations of the Guarantor which shall
rank at least pari passu with all other present
and future unsecured and unsubordinated
obligations of the Guarantor.
1.2 The intent and purpose of this Guarantee is to
ensure that the Bondholders under any and all
circumstances, whether factual or legal, and
irrespective of validity or enforceability of the
obligations of ERGO International
Aktiengesellschaft (the ``Issuer''), or of any
other reasons on the basis of which the Issuer
may fail to ful®l its obligations, receive on the
respective due date any and all sums payable
and the Deliverable Securities in accordance
with the Conditions. The Guarantor waives
any right of set-off, the invocation of
counterclaims and similar defences. This
Guarantee is reinstated if any payment of
principal of, or interest on, the Bonds or any

und aÈhnliche Einwendungen. Diese Garantie
lebt wieder auf, falls eine Zahlung von Kapital
oder Zinsen auf die Teilschuldverschreibungen
oder etwaiger sonstiger von der Emittentin
gemaÈû den Anleihebedingungen zahlbarer
BetraÈge oder eine Lieferung von Lieferbaren
Wertpapieren gemaÈû den Anleihebedingungen
infolge der Insolvenz der Emittentin
zuruÈckzugewaÈhren ist.
1.3 Die Garantin kann BetraÈge an Kapital und
Zinsen sowie alle anderen gegebenenfalls auf
die Teilschuldverschreibungen zu zahlenden
BetraÈge, deren Zahlung von den AnleiheglaÈubigern
nicht innerhalb von zwoÈlf
Monaten nach deren FaÈlligkeit geltend
gemacht worden ist, beim Amtsgericht in
Frankfurt am Main hinterlegen. Soweit die
Garantin auf das Recht zur RuÈcknahme der
hinterlegten BetraÈge verzichtet, erloÈschen die
betreffenden AnspruÈche der AnleiheglaÈubiger
gegen die Garantin.
1.4 Im Falle der Ersetzung der Emittentin durch
eine andere Tochtergesellschaft der Garantin
gemaÈû § 10 der Anleihebedingungen erstreckt
sich diese Garantie auf saÈmtliche von der
Neuen Emittentin gemaÈû den Anleihebedingungen
zahlbaren BetraÈge und die
Lieferung der Lieferbaren Wertpapiere. Dies
gilt auch dann, wenn die Neue Emittentin die
Verp¯ichtungen aus den Teilschuldverschreibungen
unmittelbar von der Garantin
uÈbernommen hat.
2. Die Garantin verp¯ichtet sich gegenuÈber den
AnleiheglaÈubigern, solange bis Kapital und
Zinsen sowie etwaige weitere auf die
Teilschuldverschreibungen zahlbare BarbetraÈge
an die Zahlstellen gezahlt und alle
Verp¯ichtungen zur Lieferung von
Lieferbaren Aktien erfuÈllt worden sind, keine
Sicherheiten an ihren VermoÈgensgegenstaÈnden
zur Besicherung gegenwaÈrtiger oder
zukuÈnftiger Kapitalmarktverbindlichkeiten
einschlieûlich hierfuÈr abgegebener Garantien
zu bestellen, es sei denn, daû die
Teilschuldverschreibungen gleichzeitig und im
gleichen Rang an dieser Sicherheit anteilig
teilnehmen oder den AnleiheglaÈubigern eine
andere Sicherheit gewaÈhrt wird, die von einer
international anerkannten unabhaÈngigen
WirtschaftspruÈfungsgesellschaft als
gleichwertige Sicherheit anerkannt wird. Die
Verp¯ichtung gemaÈû vorstehendem Satz ®ndet
keine Anwendung auf eine Sicherheit, (i) deren
Bestellung nach geltendem Recht zwingend ist
75
other amounts payable by the Issuer under the
Conditions or the delivery of Deliverable
Securities under the Conditions is recaptured
as a result of the insolvency of the Issuer.
1.3 The Guarantor may deposit with the lower
court (Amtsgericht) in Frankfurt am Main
amounts of principal, interest and all other
amounts due under the Bonds, if any, not
claimed by Bondholders within twelve months
after the date on which such amounts have
become due. To the extent that the Guarantor
waives its right to withdraw such deposit, the
relevant claim of the Bondholders against the
Guarantor shall cease.
1.4 In the event of a substitution of the Issuer by
another subsidiary of the Guarantor pursuant
to § 10 of the Conditions, this Guarantee shall
extend to any and all amounts payable by the
Substitute Issuer and delivery of the
Deliverable Securities pursuant to the
Conditions. The foregoing shall also apply if
the Substitute Issuer shall have assumed the
obligations arising under the Bonds directly
from the Guarantor.
2. The Guarantor hereby undertakes towards the
Bondholders, until such time as principal and
interest, as well as any other cash amounts
payable under or in respect of the Bonds have
been paid to the Paying Agents and all
obligations to deliver Deliverable Securities
have been ful®lled, not to provide any security
upon its assets for any present or future
Capital Market Indebtedness, including any
guarantee in respect thereof, unless the Bonds
at the same time share pari passu and pro rata
in such security or unless such other security as
shall be approved by an independent
accounting ®rm of recognized international
standing as being equivalent security has been
made available to the Bondholders. The
undertaking pursuant to the preceding
sentence shall not apply to a security (i)
which is mandatory according to applicable
laws, or (ii) which is a prerequisite for
governmental approvals. Any security which
is to be provided pursuant to the ®rst sentence

oder (ii) die zur Erlangung einer staatlichen
Genehmigung erforderlich ist. Eine Sicherheit,
die gemaÈû dem ersten Satz dieses Absatz 2. zu
leisten ist, kann auch zugunsten einer Person
bestellt werden, die als TreuhaÈnder der
AnleiheglaÈubiger handelt.
3. Diese Verp¯ichtungserklaÈrung stellt einen
Vertrag zugunsten der AnleiheglaÈubiger als
beguÈnstigte Dritte gemaÈû § 328(1) BGB dar,
die jedem AnleiheglaÈubiger das Recht gibt, die
ErfuÈllung dieser Verp¯ichtungserklaÈrung
unmittelbar von der Garantin zu verlangen
und diese Verp¯ichtungserklaÈrung unmittelbar
gegen die Garantin durchzusetzen.
4.1 Diese Verp¯ichtungserklaÈrung unterliegt
deutschem Recht.
4.2 Gerichtsstand fuÈr alle Rechtsstreitigkeiten aus
oder im Zusammenhang mit dieser
Verp¯ichtungserklaÈrung ist Frankfurt am
Main.
4.3 Begriffe, die in dieser Verp¯ichtungserklaÈrung
verwendet werden und in den
Anleihebedingungen de®niert sind, haben in
dieser Verp¯ichtungserklaÈrung die gleiche
Bedeutung wie in den Anleihebedingungen,
soweit sie in dieser Verp¯ichtungserklaÈrung
nicht anderweitig de®niert sind.
of this paragraph 2 may also be provided to a
person acting as Trustee for the Bondholders.
3. This Undertaking constitutes a contract in
favor of the Bondholders as third party
bene®ciaries pursuant to § 328(1) of the
German Civil Code giving rise to the right of
each Bondholder to require performance of
this Undertaking directly from the Guarantor
and to enforce this Undertaking directly
against the Guarantor.
4.1 This Undertaking shall be governed by and
construed in accordance with German law.
4.2 Place of jurisdiction for all proceedings arising
from matters governed by or arising in
connection with this Undertaking shall be
Frankfurt am Main.
4.3 Terms used in this Undertaking and de®ned in
the Conditions shall have in this Undertaking
the same meaning as in the Conditions unless
they are otherwise de®ned in this Undertaking.
4.4 ErfuÈllungsort ist Frankfurt am Main. 4.4 Place of performance shall be Frankfurt am
Main.
5. Die Garantin einerseits und Morgan Stanley
Bank AG und Dexia Banque International aÁ
Luxembourg, socieÂte anonyme (in dieser
Eigenschaft die ``Zahlstellen'') andererseits
vereinbaren, daû die Zahlstellen nicht als
TreuhaÈnder oder in aÈhnlicher Eigenschaft fuÈr
die AnleiheglaÈubiger handeln. Morgan Stanley
Bank AG verp¯ichtet sich, das Original dieser
Verp¯ichtungserklaÈrung bis zur ErfuÈllung
saÈmtlicher Verp¯ichtungen aus den
Teilschuldverschreibungen und der Garantie
zu verwahren.
5. The Guarantor, on the one hand, and Morgan
Stanley Bank AG and Dexia Banque
Internationale aÁ Luxembourg, socieÂteÂ
anonyme (in this capacity, the ``Paying
Agents''), on the other hand, agree that the
Paying Agents are not acting as trustee or in a
similar capacity for the Bondholders. Morgan
Stanley Bank AG undertakes to hold the
original copy of this Undertaking in custody
until all obligations under the Bonds and the
Guarantee have been ful®lled.
[Unterschrift der Garantin] [Signature of the Guarantor]
[Annahme durch die Zahlstellen] [Acceptance by the Paying Agents]
76

THE ISSUER
Incorporation, Registered Seat, Duration and Corporate Purpose
The Issuer was incorporated under the name ``Minerva VermoÈgensverwaltung AG'' on March 8, 1999
and registered with the Commercial Register of the Local Court (Amtsgericht) in Munich under docket
number HR B 12522 on April 20, 1999. By resolution of the general shareholders' meeting held on
March 30, 2001, the Issuer was renamed ``ERGO International Aktiengesellschaft'' and its registered seat
moved from Munich to DuÈsseldorf. At present, the Issuer is registered with the Commercial Register of the
Local Court in DuÈsseldorf under docket number HR B 40871. The principal of®ce of the Issuer is located at
Victoriaplatz 2, D-40198 DuÈsseldorf.
The duration of the Issuer is unlimited.
The corporate purpose of the Issuer, as laid down in its Articles of Association, is to hold
participations in foreign insurance and ®nancial services companies and to serve and co-ordinate the
interests of the ERGO Group abroad, including all of its branches. The Issuer may establish, acquire, or
hold participations in domestic and foreign undertakings of any kind and manage, or simply administer
any participations held in such undertakings. The Issuer is entitled to transact all business and take all
measures relating to, or appearing to be useful for promoting, its corporate purpose.
Announcements of the Issuer are published in the Federal Gazette of Germany.
Share Capital
As of December 31, 2000, the issued share capital of the Issuer amounted to e 50,000 and was divided
into 10,000 ordinary bearer shares with no par value. Accordingly, each share had a notional par value of
e 5.00. The share capital of the Issuer is fully paid up. There is no authorised or conditional share capital.
At present, the Guarantor holds 60% of the shares in the Issuer, while the remaining 40% is held by certain
of its consolidated subsidiaries as follows: 10% each held by DKV Deutsche Krankenversicherung AG,
Hamburg-Mannheimer Versicherungs-AG and VICTORIA Lebensversicherung AG; 5% held by
VICTORIA Krankenversicherung AG; 2.5% each held by VICTORIA Versicherung AG and Hamburg-
Mannheimer Sachversicherungs-AG. The Issuer expects its share capital to be increased considerably in the
future, mainly against contributions in cash. The Issuer further anticipates that its shareholders will, in
addition, contribute certain claims, shares and/or other equity interests of signi®cant value to its capital
reserve. For a description of certain restructuring measures which the Guarantor plans to undertake with
respect to the Issuer, see ``The Guarantor ± Recent Business Developments and Outlook''.
Capitalisation
The following table shows the Issuer's audited capitalisation and its unaudited capitalisation as
adjusted to re¯ect the issuance of the Bonds, both as of December 31, 2000:
31/12/2000
31/12/2000
as adjusted
to re¯ect
issuance of
Bonds
e thousands e thousands
Subscribed Capital and Capital Reserve PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 50.0 50.0
Revenue Reserves PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 0 0
Other Reserves PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 0 0
Balance Sheet Pro®t/Loss PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP (1.7) (1.7)
Shareholders' Equity PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 48.3 48.3
Bonds outstanding PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 0 690,000 *
* The Issuer has granted to the Manager the option to resell to the Issuer, for cancellation, up to e 90 million principal amount of
the Bonds. Prior to this offering of Bonds, the Issuer has not issued any bonds or other debt securities.
77

There has been no material change in the capitalisation of the Issuer since December 31, 2000.
Business of the Issuer
Apart from administering its own assets, the Issuer has not carried out any business activities since its
incorporation in March 1999. At present, the Issuer does not hold any participations in any domestic or
foreign undertakings. However, it is intended that, in the future, the Issuer will function as a holding
company for certain foreign companies of the ERGO Group. See ``The Guarantor ± Recent Business
Developments and Outlook''.
Management Board
The Management Board of the Issuer consists of two members. At present, it includes:
Name Position within Management Board
Dr. Franz-Wilhelm Hopp Member
Hans Ufer Member
The business address of the members of the Management Board is the same as that of the Issuer's
principal of®ce set out above.
Supervisory Board
The Supervisory Board of the Issuer consists of three members. The following individuals are
currently members of the Issuer's Supervisory Board:
Name Position within Supervisory Board Principal Occupation
Dr. Lothar Meyer Chairman Chairman of the Management
Board of the Guarantor
Holger Schmelzer Deputy Chairman Employee of the Guarantor
Dr. Hans-Rainer Weiû Member Employee of the Guarantor
The business address of the Supervisory Board members is the same as that of the Issuer's principal
of®ce set out above.
Financial Year
The ®nancial year of the Issuer is the calendar year.
Auditors
The auditors of the Issuer, BDO Deutsche Warentreuhand Aktiengesellschaft,
WirtschaftspruÈfungsgesellschaft, Elisenstraûe 3, D-80335 MuÈnchen, have audited the Annual Accounts
of the Issuer for the ®nancial years 1999 and 2000 and have issued an unquali®ed auditors' certi®cate in
each case.
78

THE GUARANTOR
Incorporation, Registered Seat, Duration and Corporate Purpose
The original incorporation of ERGO dates back to April 29, 1899. However, in its present form,
ERGO is the result of a major reorganisation carried out in 1997. This reorganisation involved, among
other things, the spin-off (Abspaltung) by ERGO, then operating as a life insurer under the name
``Hamburg-Mannheimer AG'', of its entire life insurance business to Hamburg-Mannheimer
Versicherungs-AG. Once this spin-off took effect, ERGO ceased to be an operating insurer and became
the central holding company within the Hamburg-Mannheimer Group. In preparation for the merger of
VICTORIA Holding AG into ERGO, the latter was renamed ``ERGO Versicherungsgruppe
Aktiengesellschaft''. At present, ERGO is registered with the Commercial Register of the Local Court
in DuÈsseldorf under docket number HR B 35978. The principal of®ce of ERGO is located at
Victoriaplatz 2, D-40198 DuÈsseldorf.
The duration of ERGO is unlimited.
The corporate purpose of ERGO, as stated in its Articles of Association, is to manage a group of
domestic and foreign companies involved in the primary insurance, reinsurance, insurance brokering,
®nancial services and asset management business. ERGO may establish, acquire, or hold participations in
domestic and foreign undertakings of any kind and manage, or simply administer any participations held in
such undertakings. ERGO is entitled to transact all business and take all measures relating to, or appearing
to be useful for promoting, its corporate purpose.
Announcements of ERGO are published in the Federal Gazette of Germany.
Share Capital
As of June 30, 2001, the issued share capital of ERGO amounted to e 196,279,504.20 and was divided
into 75,492,117 ordinary bearer shares with no par value. Accordingly, each share had a notional par value
of e 2.60. The share capital of ERGO is fully paid up. Its shares have been listed on the Frankfurt and
DuÈsseldorf stock exchanges since February 2, 1998 when they replaced the shares of VICTORIA Holding
AG as a consequence of the merger of this company into ERGO.
The Management Board, subject to the consent of the Supervisory Board, is authorised to increase
the share capital of ERGO by October 6, 2002 by up to e 51,129,188.12 through the issuance of new shares
in one or more tranches against contributions in cash or kind (authorised share capital). If certain
prerequisites are ful®lled, the Management Board can also decide on the exclusion of the shareholders'
subscription rights.
The share capital of ERGO is conditionally increased by up to e 31,200,000 (conditional share
capital). The conditional share capital increase will only be implemented to the extent that holders of stock
options attaching to option bonds (Optionsschuldverschreibungen) or option participation rights
(Optionsgenuûrechte) or holders of conversion rights attaching to convertible bonds
(Wandelschuldverschreibungen) or convertible participation rights (Wandelgenuûrechte), in each case to
be issued by October 6, 2002 in accordance with the authorisation of the Management Board dated
October 6, 1997, make use of their option or conversion rights.
By resolution of the general shareholders' meeting held on May 25, 2000, ERGO has been authorised
to repurchase own shares representing up to 10% of its issued share capital by November 24, 2001. The
purchase price for the shares must not exceed or fall below, by more than 10%, the average of®cial
quotation for ERGO's shares on the Frankfurt Stock Exchange on the three trading days preceding the
purchase.
79

Capitalisation
The following table shows ERGO's audited capitalisation as of December 31, 2000 and its unaudited
capitalisation as of June 30, 2001:
31/12/2000 31/12/2000
e million e million
Subscribed Capital and Capital Reserve PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 841 841
Revenue Reserves PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 2,915 3,816
Other Reserves (1) PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 1,620 1,195
Consolidated Unappropriated Pro®t PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 953 145
Shareholders' Equity PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 6,330 (2)
5,997
Bank Loans and Overdrafts (3) PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 1,054 1,655 (4)
(1) The reduction in ``Other Reserves'' from December 31, 2000 to June 30, 2001 re¯ects a decline in unrealised pro®ts and losses from
investments.
(2) Figures do not add up due to rounding.
(3) Otherwise, ERGO's liabilities of e 12,057 million as of December 31, 2000 and e 13,417 million as of June 30, 2001 comprised
primarily deposits on ceded business and accounts payable on direct insurance business with policyholders and intermediaries.
(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
amount of e 500 million with a maturity of ®ve years which ERGO drew down in May 2001.
There has been no material change in the capitalisation of the Guarantor since June 30, 2001.
The ERGO Group
The ERGO Group consists of ERGO and its domestic and foreign subsidiary companies. As the
central holding company within the ERGO Group, the principal activity of ERGO is to perform
management and control functions. The major domestic operating companies within the ERGO Group
include:
VICTORIA Versicherung AG
VICTORIA Lebensversicherung AG
VICTORIA Krankenversicherung AG
VICTORIA RuÈckversicherung AG
Hamburg-Mannheimer Sachversicherungs-AG
Hamburg-Mannheimer Rechtsschutz-Versicherungs-AG
Hamburg-Mannheimer Versicherungs-AG
DKV Deutsche Krankenversicherung AG
D.A.S. Versicherungs-AG
D.A.S. Rechtsschutz-Versicherungs-AG
Vorsorge Lebensversicherung AG
MEAG MUNICH ERGO AssetManagement GmbH
ERGO Trust GmbH
The ERGO Group is operating as an insurer in 22 foreign countries through 51 subsidiary insurance
companies and 5 branches. Bayerische Vita S.p.A. (``Bayerische Vita'') and ERGO Hestia S.A. are the
major foreign operating companies within the ERGO Group. Both were acquired indirectly by ERGO in
the course of 2000. See ``The Guarantor ± Major New Acquisitions''.
As of December 31, 2000, MuÈnchener RuÈckversicherungs-Gesellschaft AG (``Munich Re'') held
directly and indirectly 62.9% of the shares in ERGO and was its largest single shareholder. ERGO is not
aware that any other shareholder holds a participation of more than 5% in its share capital.
On April 1, 2001 Munich Re made public its intention to increase its direct and indirect shareholding
in ERGO to 95%. On May 17, 2001, Munich Re made a tender offer to minority shareholders to acquire
two ERGO shares in exchange for one Munich Re share and a cash payment of e 18. The term of such
tender offer ran from May 21, 2001 to July 19, 2001. In the tender offer document published on May 17,
2001 Munich Re stated that Bayerische Hypo- und Vereinsbank Aktiengesellschaft intends to increase its
shareholding in ERGO to 5% to expand the scope of the cooperation between the bank and the ERGO
80

Group and to reinforce the common long-term strategy. After the tender offer had been concluded, Munich
Re announced on July 25, 2001 that it had acquired 18,609,090 shares in ERGO and, as a result, now holds
91.7% of ERGO's share capital.
As of December 31, 2000, the total assets of the ERGO Group were e 105,861 million (1999: e 97,711
million). The ERGO Group had 21,309 (1999: 18,888) in-house employees and 6,180 (1999: 5,804) salaried
®eld representatives at the end of 2000. In addition, 23,882 (1999: 17,656) full-time self-employed ®eld
representatives were working for the ERGO Group.
All major domestic and foreign companies within the ERGO Group are included in ERGO's
Consolidated Annual Accounts. In addition to the 45 domestic and 75 foreign subsidiary companies which
have been consolidated in full, 20 domestic and 18 foreign companies have been accounted for as associated
companies pursuant to the equity method in the 2000 Consolidated Annual Accounts of ERGO.
Business of the ERGO Group
Overview
The ERGO Group functions as a primary insurance underwriter providing all classes of life, annuity
and health insurance and virtually all types of property and casualty insurance as well as a provider of
reinsurance in all classes of business. In addition, the ERGO Group offers insurance brokerage, asset
management and ®nancial services to its customers. The main focus of the ERGO Group is on private
customers (personal lines insurance), while its second core customer group consists of small and mediumsized
undertakings. Approximately 90% of the ERGO Group's premium income was derived from business
with private customers in 2000. In addition, the ERGO Group writes corporate and industrial business
insurance on a selective basis. The ERGO Group intends to further develop its position as a major provider
of occupational pension schemes.
The ERGO Group is the second-largest primary insurance group in Germany with gross written
premiums of e 12,669 million (1999: e 11,929 million) and investments of e 88,269 million (1999: e 84,645
million) in 2000. The net pro®t of the ERGO Group for 2000 was e 804 million (1999: e 467 million) with
e 246 million (1999: e 91 million) (without adjustment to re¯ect minority interests) attributable to certain
non-recurring factors.
In March 2001, the rating agency Standard & Poor's gave ERGO a rating of AA+ and each of
VICTORIA Versicherung AG, VICTORIA Lebensversicherung AG, Hamburg-Mannheimer
Sachversicherungs-AG, Hamburg-Mannheimer Versicherungs-AG and DKV Deutsche
Krankenversicherung AG a rating of AAA.
The ERGO Group pursues a multi-brand strategy. Consequently, it has maintained the brand-names
VICTORIA, Hamburg-Mannheimer, DKV and D.A.S. Its insurance business is managed according to the
business segments of life insurance, health insurance, property and casualty insurance and legal expenses
insurance. In addition, with its business segment of ®nancial services, the ERGO Group provides
institutional and private clients with asset management services and products.
81

The following chart provides an overview of the structure of the ERGO Group by business segments:
99.5 %
100 %
VICTORIA
Lebensversicherung AG
100 %
Vorsorge
Lebensversicherung AG
Hamburg-Mannheimer
Versicherungs-AG
Hamburg-Mannheimer
foreign subsidiaries
Life
92.47 %
Property and Casualty
Legal Expenses
6.29 %
99.99 %
VICTORIA
Versicherung AG
100 %
VICTORIA
Rückversicherung AG
Hamburg-Mannheimer
Sachversicherungs-AG
D.A.S.
Versicherungs-AG
ERGO Versicherungsgruppe Aktiengesellschaft
VICTORIA
foreign subsidiaries
Health
100 %
72.56 %
Financial Services
Foreign Business Operations
D.A.S.
Rechtsschutz-
Versicherungs-AG
25.53 %
1.79 %
Hamburg-
Mannheimer
Rechtsschutz-
Versicherungs-AG
49 %
99.9 %
DKV
Deutsche Krankenversicherung
AG
51 % 51 %
D.A.S.
foreign subsidiaries
24 %
25 %
VICTORIA
Krankenversicherung
AG
DKV
foreign subsidiaries
MEAG
MUNICH ERGO
AssetManagement
GmbH
ERGO
Trust GmbH
40 %
100 %
ERGO
foreign subsidiaries
In 2000, life insurance accounted for 43% (1999: 43%), health insurance for 30% (1999: 30%),
property and casualty insurance for 22% (1999: 21%) and legal expenses insurance for 5% (1999: 6%) of the
total amount of gross written premiums.
Business Segments
Life Insurance
As of December 31, 2000, the total assets of the ERGO Group's life insurance segment amounted to
e 76,273 million (1999: e 69,954 million). It recorded gross written premiums of e 5,385 million (1999:
e 5,114 million) and investments of e 63,534 million (1999: e 60,335 million) in 2000. Gross written
premiums from domestic new business amounted to e 949 million (1999: e 1,234 million). However, the
2000 and 1999 ®gures relating to domestic new business are not comparable, given that 1999 was an
exceptional year. The Federal Government's plan to tax interest earnings on life insurance policies caused
many German customers to take out a life insurance policy before the plan was scheduled to be introduced
on January 1, 2000. Abroad, gross written premiums from new business reached e 136 million (1999: e 115
million) and e 397 million (1999: e 347 million), including those from new businesses acquired in the
course of 2000. Net pro®t of the life insurance segment for 2000 rose to e 198 million (1999: e 108 million).
The revaluation of certain deferred tax items due to the reduction in corporation tax in Germany from 40%
to 25% from 2001 onwards contributed e 13 million (without adjustment to re¯ect minority interests) to
pro®t growth.
Health Insurance
As of December 31, 2000, the assets of the ERGO Group's health insurance segment were e 19,787
million (1999: e 18,472 million). In 2000, gross written premiums amounted to e 3,834 million (1999:
e 3,593 million) and investments to e 17,586 million (1999: e 16,494 million). Although an increase in
gross written premiums was recorded in 2000, gross written premiums from domestic new business fell to
e 243 million (1999: e 255 million). The main reason for this was the German Health Reform introduced in
82

2000 with its 10% premium increase for private health insurance to stabilise premiums in old age. This
caused private health insurers to be in a more dif®cult competitive position compared to the state health
insurance system. Abroad, gross written premiums from new business were e 77 million in 2000 (1999: e 68
million). Net pro®t of the health insurance segment for 2000 was e 215 million (1999: e 121 million), of
which e 55 million (without adjustment to re¯ect minority interests) was attributable to the revaluation of
certain deferred tax items.
Property and Casualty Insurance
As of December 31, 2000, the total assets of the ERGO Group's property and casualty insurance
segment were e 8,467 million (1999: e 7,425 million). It recorded gross written premiums of e 2,756 million
(1999: e 2,560 million) and investments of e 6,122 million (1999: e 5,731 million) in 2000. Within the
property and casualty insurance segment, gross written premiums were divided among the major business
lines as follows:
Business Line
Gross Written Premiums Percentage of Total Gross
e million
Written Premiums
2000 1999 2000 1999
Motor insurance PPPPPPPPPPPPPPPPPPPPPPPPPPPP 906.2 813.7 32.9% 31.8%
Personal accident insurancePPPPPPPPPPPPPPPPPPP 708.8 683.1 25.7% 26.7%
Fire and property insurance PPPPPPPPPPPPPPPPPP 489.1 448.9 17.7% 17.5%
Liability insurance PPPPPPPPPPPPPPPPPPPPPPPPPP 376.6 360.5 13.7% 14.1%
Transport and aviation insurancePPPPPPPPPPPPPP 109.2 103.3 4.0% 4.0%
Other business lines PPPPPPPPPPPPPPPPPPPPPPPPP 166.3 150.2 6.0% 5.9%
Total PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 2,756.2* 2,559.7 100% 100%
* Figures do not add up due to rounding.
Net pro®t of the property and casualty insurance segment for 2000 reached e 408 million (1999: e 207
million). The revaluation of certain deferred tax items contributed e 161 million (without adjustment to
re¯ect minority interests) to pro®t growth.
Legal Expenses Insurance
As of December 31, 2000, the assets of the ERGO Group's legal expenses insurance segment totalled
e 1,848 million (1999: e 1,863 million). Gross written premiums amounted to e 695 million (1999: e 662
million) and investments to e 1,495 million (1999: e 1,543 million) in 2000. While the level of gross written
premiums from domestic new business remained virtually unchanged during this period, an increase of
15.4% was achieved abroad. This brought the contribution of foreign business to the total amount of gross
written premiums to e 260 million (1999: e 225 million). Net pro®t of the legal expenses insurance segment
for 2000 fell to e 28 million (1999: e 53 million), primarily due to declining investment income. e 19
million (without adjustment to re¯ect minority interests) of such net pro®t was attributable to the
revaluation of certain deferred tax items.
Financial Services
As of December 31, 2000, the total assets of the ERGO Group's ®nancial services segment were e 513
million (1999: e 130 million). In 2000, its investments amounted to e 386 million (1999: e 73 million). The
market value of the assets under management rose to e 146 billion (1999: e 135 billion), of which e 137
billion (1999: e 129 billion) were managed by MEAG MUNICH ERGO AssetManagement GmbH
(``MEAG'') and e 9 billion (1999: e 6 billion) by ERGO Trust GmbH (``ERGO Trust''). ERGO Trust
focuses on third party institutional customers, whereas MEAG's principal activity is to manage the
investments of Munich Re and the ERGO Group. In 2000, e 135 billion (1999: e 127 billion) of the total
assets managed by MEAG were investments of Munich Re and the ERGO Group. Following start-up
losses of e 1.4 million recorded when MEAG was established in 1999, the ®nancial services segment
became pro®table in 2000 with a net pro®t of e 5 million.
83

Business Regions
Germany
As of December 31, 2000, the assets of the ERGO Group's domestic business operations totalled
e 96,482 million (1999: e 93,531 million). Gross written premiums amounted to e 11,017 million (1999:
e 10,769 million) and investments to e 82,856 million (1999: e 81,813 million) in 2000. The individual
business segments made the following contributions to the total amount of domestic gross written
premiums:
Business Segment
Gross Written Premiums Percentage of Total Gross
e million
Written Premiums
2000 1999 2000 1999
Life insurance PPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 4,843.4 4,793.6 44.0% 44.5%
Health insurance PPPPPPPPPPPPPPPPPPPPPPPPPPPP 3,296.2 3,164.4 29.9% 29.4%
Property and casualty insurancePPPPPPPPPPPPPPP 2,442.1 2,373.9 22.2% 22.0%
Legal expenses insurance PPPPPPPPPPPPPPPPPPPPP 435.3 437.3 3.9% 4.1%
Total PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 11,017 10,769.2 100% 100%
Domestic net pro®t for 2000 increased to e 790 million (1999: e 420 million). The reduction in the
German corporation tax rate from 40% to 25% from 2001 onwards led to the revaluation of certain
deferred tax items, which resulted in a one-off increase of e 246 million (without adjustment to re¯ect
minority interests). In 1999, the reduction in the corporation tax rate from 45% to 40% had already resulted
in a contribution of e 91 million (without adjustment to re¯ect minority interests) to pro®t growth.
Rest of Europe
As of December 31, 2000, the total assets of the ERGO Group's foreign business operations were
e 9,379 million (1999: e 4,179 million). Gross written premiums reached e 1,652 million (1999: e 1,159
million) and investments rose to e 5,413 million (1999: e 2,831 million). If all new acquisitions had already
been consolidated for the entire ®nancial year 2000, gross written premiums from foreign business
operations would have amounted to e 2,325 million and their contribution to the total amount of ERGO
Group's gross written premiums would have reached 18%. On this basis, life insurance would have
accounted for 46%, health insurance for 23%, property and casualty insurance for 20% and legal expenses
insurance for 11% of the foreign insurance business volume in 2000. Among the major foreign business
operations of the ERGO Group, gross written premiums would have been divided up as follows:
Foreign Operations Gross Written Premiums
e million
Percentage of Total Gross
Written Premiums
Italy PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 705 30.3%
Netherlands PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 396 17.0%
Belgium PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 286 12.3%
Spain PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 270 11.6%
Austria PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 180 7.8%
Poland PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 166 7.1%
Other countries PPPPPPPPPPPPPPPPPPPPPPPPPPPP 322 13.9%
TotalPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 2,325 100.0%
Net pro®t of the foreign business operations for 2000 fell to e 14 million (1999: e 47 million). This
was due mainly to an increase in claims and certain extraordinary circumstances. In addition, depreciation
of goodwill resulted in a negative impact on pro®ts in the amount of e 12 million (1999: e 5 million).
Major New Acquisitions
As at December 1, 2000, ERGO acquired BBV Italia S.p.A. (``BBV Italia''), which holds 80% of the
shares in the Italian property and casualty insurer Bayerische Assicurazioni S.p.A. (``Bayerische
Assicurazioni'') (the remaining 20% was acquired directly by ERGO) and a participation of 70% in the
Italian life insurer Bayerische Vita. ERGO intends to restructure Bayerische Assicurazioni from a
84

predominantly motor insurer to a provider of comprehensive insurance to private customers. In 2000,
Bayerische Vita recorded gross written premiums of e 649 million (1999: e 501 million) and was listed on
the Milan Stock Exchange. After having indirectly acquired a majority participation in Bayerische Vita,
ERGO made a tender offer as required by Italian takeover law to acquire the shares of minority
shareholders. Given that only 1,400 out of 22.5 million shares (i.e. 0.0019%) were offered to ERGO for
acquisition, the free ¯oat of shares in Bayerische Vita continues to be 30%.
After obtaining a majority shareholding in ERGO Europa Beteiligungsgesellschaft AG (formerly
Alte Leipziger Europa Beteiligungsgesellschaft AG, hereinafter ``ERGO Europe'' ) on July 1, 2000, ERGO
acquired a further participation of 25% in the share capital of ERGO Europe effective on December 31,
2000. At present, ERGO's shareholding in ERGO Europe amounts to 93.9%, while the remaining 6.1% is
held by Munich Re. ERGO Europe, in turn, holds participations in insurance companies represented
mainly in Central and Eastern European countries. The largest of those insurance companies is the Polish
property and casualty insurer ``Hestia S.A.'', which was recently renamed ``ERGO Hestia S.A.'' (``ERGO
Hestia''). ERGO Hestia is the third-largest provider of property and casualty insurance in the Polish
market with gross written premiums of e 148 million (1999: e 128 million) in 2000.
Other new acquisitions made by the ERGO Group in 2000 included ``Levob
Gezondheidszorgverzekering N.V.'', which was recently renamed ``N.V. Verzekeringsmaatschappij
Rijnmond II''. This Dutch health insurer recorded e 36 million of gross written premiums in 2000. In
Belgium, the ERGO Group acquired a majority shareholding in the property and casualty insurer LION
BELGE SOCIETE ANONYME D'ASSURANCES.
Business Developments in First Half 2001
In the ®rst half of 2001, gross written premiums of the ERGO Group increased by 10.4% to e 6.9
billion compared to the ®rst half of 2000. This growth was partly attributable to the subsidiaries in Italy as
well as in Eastern Europe acquired in the course of 2000. Gross written premiums from foreign business
operations rose by 73.4% to e 1.3 billion. Without taking into account these recent acquisitions, a growth
rate of 15.1% would have been achieved abroad. In Germany, gross written premiums increased by 2% to
e 5.6 billion. In relation to the business segments, life insurance as well as property and casualty insurance
were the most important drivers with growth rates of 10.8% and 18.5%, respectively.
In spite of weak capital markets, the investment portfolio of the ERGO Group rose by 2.1% to e 90.7
billion compared to December 31, 2000. However, weak capital markets impacted on the net investment
income which, as at June 30, 2001, accounted for e 2.5 billion. This constitutes a fall of 8.5% compared to
e 2.7 billion as at June 30, 2000. Meanwhile, current income rose by 25.3% to e 2.6 billion.
The net pro®t of the ERGO Group in the ®rst half of 2001 amounted to e 145 million. However, the
ERGO Group believes that this ®gure is in¯uenced by certain special factors, including the condition of the
capital markets. The ERGO Group anticipates that this is not an indication of the developments for the
rest of the year.
Recent Business Developments and Outlook
ERGO plans to transfer its shareholdings in certain foreign subsidiaries, e.g. BBV Italia or ERGO
Europe, to the Issuer by contributing such shareholdings to the Issuer's capital reserve. It is intended that,
in the future, the Issuer will also function as a holding company for certain other foreign companies of the
ERGO Group.
The ERGO Group's target market is Europe, where it aims to occupy a leading position in the life,
health and personal accident insurance segments. Outside Germany, the main focus of the ERGO Group
will be on those European countries in which particularly strong growth can be expected in the personal
insurance business, such as Italy, Spain and the Central and Eastern European countries. In order to
strengthen its market position in Europe further, the ERGO Group will not only try to make the most of
acquisition opportunities but also integrate the products and services offered by the individual ERGO
Group companies into a European network. The ERGO Group believes that expansion in Europe will only
be successful if it is able to manage effectively the integration of newly acquired companies. For that
purpose, ERGO has recently established a ``International Operations'' division.
85

The ERGO Group expects that the German Pension Reform of 2001 (the ``Pension Reform'') will
result in considerable additional demand for products that supplement retirement income. This is due to
the fact that one of the main objectives of the Pension Reform is to promote a broadly invested, capitalfunded
private pension scheme, supplementing the state pension system, through subsidising certain
of®cially certi®ed products. Although there is still some uncertainty as to the individual products receiving
of®cial certi®cation, the Association of German Life Insurers nevertheless anticipates that, by the end of
2002, German customers will increase signi®cantly their spending on life insurance policies. The ERGO
Group expects that the Pension Reform will not only provide additional impetus for the traditional life
insurance business but also for the sale of fund products, both directly and in the form of unit-linked life
insurance. As one of the largest German life insurers, the ERGO Group believes it is in an excellent
position to participate actively in the new business generated through the Pension Reform.
Management Board
The Management Board of ERGO consists of eight members. At present, it includes:
Name Position within Management Board Responsibilities within Group
Dr. Lothar Meyer Chairman Strategy, Corporate Policy, Planning,
Accounting, Controlling, Auditing,
Taxes, Press and Investor Relations
Dr. Jan Boetius Member Health Insurance
Horst DoÈring Member Property and Casualty Insurance
Dr. Franz-Wilhelm Hopp Member Finances, Capital Investments and
Financial Services
Wulf Nibbe Member Legal Expenses Insurance
Michael Rosenberg Member Life Insurance and Information
Processing
Hans Ufer Member Foreign Business Operations
Dr. GoÈtz Wricke Member Life Insurance and Personal Accident
Insurance
The business address of the members of the Management Board is the same as that of ERGO's
principal of®ce set out above.
Supervisory Board
The Supervisory Board of ERGO consists of 20 members. The following individuals are currently
members of ERGO's Supervisory Board:
Name Position within Supervisory Board Principal Occupation
Dr. Hans-JuÈrgen Schinzler Chairman Chairman of the Management Board
of MuÈnchener RuÈckversicherungs-
Gesellschaft AG
Horst Poganaz Deputy Chairman Employee of the VICTORIA insurance
companies
GuÈnter Bayerle Member Employee of DKV Deutsche
Krankenversicherung AG
Hans-Peter Clauûen Member Employee of D.A.S. Deutscher
Automobil Schutz Allgemeine
Rechtsschutz-Versicherungs-AG
Dr. Ralf Corsten Member Chairman of the Management Board
of PREUSSAG AG
Helmut Dobmeier Member Director, Employee of the VICTORIA
insurance companies
86

Name Position within Supervisory Board Principal Occupation
Frank Fassin Member Deputy District Chairman
(Landesbezirksleiter) of the
Wholesaling & Retailing, Banking and
Insurance Employees' Union (HBV)
Hinrich Feddersen Member Member of the Executive Board of the
Wholesaling & Retailing, Banking and
Insurance Employees' Union
Prof. Dr. Dr.h.c. Joachim Funk Member Former Chairman of the Supervisory
Board of Mannesmann AG
Dr. Joachim von Harbou Member Member of the Management Board of
Dresdner Bank AG
Dr. Heiner Hasford Member Member of the Management Board of
MuÈnchener RuÈckversicherungs-
Gesellschaft AG
Dr. Edgar Jannott Member Former Chairman of the Management
Board of ERGO
Dr. Gerhard Jooss Member Member of the Management Board of
ThyssenKrupp AG
Klaus Roth Member Employee of DKV Deutsche
Krankenversicherung AG
Richard Sommer Member Head of the insurance federal
occupational group and member of the
Federal Executive of the German
Salaried Staff Union (DAG)
Holger Stubbe Member Employee of Hamburg-Mannheimer
Versicherungs-AG
Dr. Richard Trautner Member Deputy Chairman of the Supervisory
Board of Bayerische Hypo- und
Vereinsbank AG
Dr. Hans-Dietrich Winkhaus Member Former Chairman of the Executive
Management of Henkel KgaA
Marianne Wloch Member Employee of Hamburg-Mannheimer
Versicherungs-AG
Bernd Wrede Member Chairman of the Management Board
of Hapag-Lloyd AG
The business address of the Supervisory Board members is the same as that of ERGO's principal
of®ce set out above.
Financial Year
The ®nancial year of ERGO is the calendar year.
Auditors
The auditors of ERGO, BDO Deutsche Warentreuhand Aktiengesellschaft,
WirtschaftspruÈfungsgesellschaft, Elisenstraûe 3, D-80335 MuÈnchen, have audited the Management
Report and the Consolidated Annual Accounts as well as the unconsolidated Annual Accounts of
ERGO for the ®nancial years 1999 and 2000 and have issued an unquali®ed auditors' certi®cate in each
case.
87

E.ON AG
The information contained in this Information Memorandum relating to E.ON and the E.ON Shares has
been accurately reproduced from, or is a summary of, publicly available information published by E.ON. So
far as the Issuer and the Guarantor are aware and/or are able to ascertain from such information, no facts have
been omitted which would render the reproduced information misleading. The Issuer and the Guarantor accept
responsibility for the accurate reproduction or, as the case may be, summary of such information. No further or
other responsibility in respect of such information is accepted by the Issuer or the Guarantor.
Incorporation, Registered Seat, Duration and Corporate Purpose
E.ON is a German stock corporation (Aktiengesellschaft) and was incorporated under the name
``Vereinigte ElektrizitaÈts- und Bergwerks-Aktiengesellschaft'' in 1929. It was renamed ``VEBA AG'' in
1970. In the middle of 2000, VEBA AG (``VEBA'') merged with VIAG AG, Munich (``VIAG''). This
merger was implemented by merging VIAG into VEBA, with the latter continuing as the surviving entity.
The newly-merged company was subsequently renamed ``E.ON AG''. E.ON's registered seat is at
DuÈsseldorf where it is registered with the Commercial Register of the Local Court under docket number
HR B 22315. The principal of®ce of E.ON is located at E.ON-Platz 1, D-40479 DuÈsseldorf.
The duration of E.ON is unlimited.
The corporate purpose of E.ON, as stated in its Articles of Association, is to manage a group of
companies active in the following business sectors:
. energy, with main operations in electricity, gas, oil as well as water and waste disposal;
. chemicals, principally consisting of speciality chemicals, construction chemicals, and
.
petrochemicals;
telecommunications; and
. real-estate management.
E.ON is furthermore authorised to manage business in the ®elds of distribution and logistics,
aluminium, silicon wafers and packaging.
Activities in these business sectors include generation, processing and working as well as distribution
and transmission, supply and trading. Facilities of all kinds can be erected, acquired and operated, and
services and business cooperations of all kinds can be undertaken.
E.ON itself can also conduct business in the sectors stated above, in particular, it can conclude
individual transactions. It is entitled to take all actions and measures associated with its corporate purpose
or suited to serve said purpose, directly or indirectly.
E.ON can also establish and purchase other companies as well as acquire shareholdings in other
companies, particularly companies whose corporate purpose includes the aforementioned business sectors
wholly or in part. It is further entitled to acquire interests in companies of all kinds with the primary
objective of investing ®nancial resources. It can amend the structure of companies in which it holds an
investment as well as place them under joint control, or restrict itself to the administration of said
companies and keep its investments at its disposal.
Announcements of E.ON are published in such means of publication as laid down in applicable laws
and regulations.
Share Capital
As of December 31, 2000, the registered share capital of E.ON amounted to e 1,984,577,075 and was
divided into 763,298,875 ordinary bearer shares with no par value. Accordingly, each E.ON Share had a
notional par value of e 2.60. As of December 31, 2000, the total amount of outstanding E.ON Shares was
712,781,940.
The E.ON Shares are listed on all eight German stock exchanges and the Swiss Stock Exchange.
E.ON also has American Depositary Shares (ADSs) listed on the New York Stock Exchange.
88

Business of E.ON
E.ON is the holding company of a group of subsidiary undertakings (E.ON together with its
subsidiary undertakings, the ``E.ON Group''). The E.ON Group operates world-wide and is active in a
wide range of business areas. The main focus of the E.ON Group is on its core business area of energy.
Other businesses of the E.ON Group include speciality chemicals, real estate, telecommunications,
distribution and logistics, aluminium and silicon wafers.
Rights Attaching to Shares
Transfer of Shares
The transfer of E.ON Shares is not restricted and does not require the approval of E.ON.
Annual General Meetings
The annual general meetings of shareholders are held at the registered seat of E.ON or at another
major German city. The annual general meetings are called by the Management Board in agreement with
the Chairman of the Supervisory Board. The convening must be announced not less than one month before
the day by the end of which the shares must be deposited according to E.ON's Articles of Association.
Voting Rights
The right to attend, and to vote at, the annual general meeting is accorded only to those shareholders
who deposit their E.ON Shares with a notary public, a securities clearing and depositing bank or one of the
other depositories named in the noti®cation of convocation by the end of the seventh day before the date of
the annual general meeting, where they will be retained until the conclusion of the annual general meeting.
In case the seventh day before the date of the annual general meeting is a Sunday or a public holiday or a
day on which banks are not open for business, the relevant day shall be the business day immediately
preceding such day.
At the annual general meeting, each E.ON Share confers one vote. Resolutions will be adopted by a
simple majority of the votes cast. In cases where a majority of the share capital is required by mandatory
law, a simple majority of the share capital will suf®ce, unless mandatory legal provisions or E.ON's Articles
of Association require otherwise.
Dividend Rights
Dividends in respect of E.ON Shares are declared once a year at the annual general meeting. For each
®nancial year, the Board of Management approves E.ON's unconsolidated ®nancial statements and
submits them together with a proposal regarding the distribution of pro®ts to the Supervisory Board for its
approval. After examining the ®nancial statements and proposal for pro®t distribution, the Supervisory
Board presents a report in writing at the annual general meeting. On the basis of the Supervisory Board's
report, the shareholders vote on the Management Board's proposal regarding the disposition of all
unappropriated pro®ts, including the amount of net pro®ts to be distributed as a dividend. E.ON's
shareholders participate in the distribution of dividends in proportion to their shareholdings. Prior to
liquidation of E.ON, the only amounts that may be distributed to shareholders under German law are the
distributable pro®ts (Bilanzgewinn).
Rights in Liquidation
According to German law, in the event of liquidation, the assets of E.ON remaining after discharge of
its liabilities will be distributed to its shareholders in proportion to their shareholdings.
Financial Year
The ®nancial year of E.ON is the calendar year.
89

Selected Financial Data
The following table sets out selected ®nancial data (in accordance with U.S. GAAP) for E.ON
(VEBA for periods prior to July 1, 2000) for the three years ending December 31, 2000. This data should be
read in conjunction with, and is quali®ed in its entirety by reference to, certain documents relating to E.ON
incorporated by reference into this Information Memorandum. See ``Additional Information''.
2000 1999 1998
e million e million e million
Statement of Income Data:
Sales PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 82,983 50,515 42,787
Sales excluding electricity and petroleum taxes (1) PPPPPPPPPPPP
Earnings from companies accounted for under the equity
74,048 46,572 39,045
methodPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 48 311 96
Income before income taxes PPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 6,551 4,400 2,385
Income before minority interests (2) PPPPPPPPPPPPPPPPPPPPPPPPP 4,039 3,123 1,161
Net income PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP
Balance Sheet Data:
3,570 2,991 1,174
Total assets PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 106,215 56,219 45,552
Long-term debt PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 7,130 3,630 2,339
Shareholders' equity (3) PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 28,033 15,813 13,855
(1) German law requires the seller of petroleum products and, as of April 1, 1999, electricity to collect petroleum taxes and electricity
taxes, respectively, and remit such amounts to tax authorities.
(2) Before minority interest of positive e 469 million for 2000 as compared with positive e 132 million and negative e 13 million for
1999 and 1998, respectively.
(3) After minority interest.
(Source: 2000 E.ON Annual Report on Form 20-F)
E.ON publishes interim reports on a quarterly basis. The following table sets out selected ®nancial
data (in accordance with U.S. GAAP) for E.ON as of and for the six months ending June 30, 2001. This
data should be read in conjunction with, and is quali®ed in its entirety by reference to, certain documents
relating to E.ON incorporated by reference into this Information Memorandum. See ``Additional
Information''.
1st Half 2001
e million
Statement of Income Data:
Sales PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 44,535
Sales excluding electricity and petroleum taxes * PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 39,810
Results from ordinary business activities PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 2,035
Minority interests PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP (46)
Net income PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP
Balance Sheet Data: PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP
832
Total assets PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 114,574
Liabilities PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 42,042
Shareholders' equity PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 26,445
* German law requires the seller of petroleum products and, as of April 1, 1999, electricity to collect petroleum taxes and electricity
taxes, respectively, and remit such amounts to tax authorities.
(Source: E.ON Interim Report II/2001)
90

Distribution of Net Income
The following table sets out the basic earnings per E.ON Share for the three years ending December
31, 2000:
Earnings per
Share*
e
2000 PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 5.75
1999 PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 5.95
1998 PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 2.34
* Figures for 1999 and 1998 refer to former VEBA shares.
(Source: 2000 E.ON Annual Report on Form 20-F)
The following table sets out the dividends paid per E.ON Share for the three years ending December
31, 2000:
Dividend per
Share*
e
2000 PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 1.35
1999 PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 1.25
1998 PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 1.07
* Figures for 1999 and 1998 refer to former VEBA shares.
(Source: 2000 E.ON Annual Report on Form 20-F)
Share Price Statistics
The following table sets out, for the three years ending December 31, 2000, the closing price per E.ON
Share in XETRA, as reported by the Frankfurt Stock Exchange, at year-end:
Share Price at
Year-end*
e
2000 PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 64.80
1999 PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 48.45
1998 PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 51.12
* Figures for 1999 and 1998 refer to former VEBA shares.
(Source: Deutsche BoÈrse AG)
The following table sets out the highs and lows of the price per E.ON Share in XETRA, as reported
by the Frankfurt Stock Exchange, for the three years ending December 31, 2000:
2000 PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 66.55 41.01
1999 PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 62.60 41.60
1998 PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 66.90 41.11
* Figures for 1999 and 1998 refer to former VEBA shares.
(Source: Deutsche BoÈrse AG)
91
High*
e
Low*
e

The following table sets out the highs and lows of the price per E.ON Share in XETRA, as reported
by the Frankfurt Stock Exchange, for the six months ending August 31, 2001:
August 2001PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 62.68 60.00
July 2001 PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 64.50 60.10
June 2001 PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 61.94 58.55
May 2001 PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 59.60 54.90
April 2001 PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 58.20 51.95
March 2001 PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 56.21 46.95
(Source: Deutsche BoÈrse AG)
Set out below is the closing price per E.ON Share in XETRA, as reported by the Frankfurt Stock
Exchange, on September 12, 2001:
High
e
Low
e
Share Price
e
September 12, 2001PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 54.75
(Source: Deutsche BoÈrse AG)
Major Recent Developments
In April 2001, E.ON tendered a conditional takeover offer of 765 pence (e 12.19) per share to the
shareholders of Powergen plc (``Powergen''). The purchase price for 100% of Powergen's shares amounts to
e 8.3 billion. Powergen's enterprise value, including liabilities, totals e 15.3 billion. The submission of the
®nal offer is subject to various regulatory approvals in the United Kingdom, the United States and from
the EU Commission. E.ON expects the transaction to be completed in spring 2002.
According to a press release published on July 16, 2001, E.ON and British Petroleum plc (``BP'') have
agreed to reorganise their oil and gas activities in Germany. In the context of an increase of its share capital
at the turn of the years 2001/2002, E.ON has agreed to acquire a shareholding of 51% in the BP subsidiary
Gelsenberg AG, which holds 25.5% in Ruhrgas AG. In a second step, BP will be granted an option as of
January 2002 to sell its remaining 49% share in Gelsenberg AG to E.ON. At the same time, BP has agreed
to acquire a shareholding of 51% in the wholly-owned E.ON subsidiary Veba Oel AG through an increase
of its share capital. As part of the share capital increase, BP will redeem the shareholder loans granted by
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
remaining 49% share in Veba Oel AG to BP. These transactions are subject to antitrust approval.
On August 8, 2001, E.ON announced that it has agreed to sell its wholly-owned subsidiary KloÈckner
& Co. AG to Balli group, London. The transaction is subject to Supervisory Board and antitrust approval.
Additional Information
Additional information regarding the share capital, business and management of E.ON is available in
the 2000, 1999 and 1998 Annual Reports and the Interim Report for the ®rst half of the ®nancial year 2001
of E.ON (1999 and 1998: VEBA) which are incorporated by reference into this Information Memorandum.
92

AVENTIS S.A.
The information contained in this Information Memorandum relating to Aventis and the Aventis Shares
has been accurately reproduced from, or is a summary of, publicly available information published by Aventis.
So far as the Issuer and the Guarantor are aware and/or are able to ascertain from such information, no facts
have been omitted which would render the reproduced information misleading. The Issuer and the Guarantor
accept responsibility for the accurate reproduction or, as the case may be, summary of such information. No
further or other responsibility in respect of such information is accepted by the Issuer or the Guarantor.
Incorporation, Registered Seat, Duration and Corporate Purpose
Aventis is a French stock corporation (socieÂte anonyme) and was formed in December 1999 through
the combination of the pharmaceutical and agriculture activities (and remaining industrial activities subject
to divestment) of RhoÃne-Poulenc S.A. (``RhoÃne-Poulenc'') and Hoechst AG (``Hoechst''). The combination
was effected by way of an exchange offer by RhoÃne-Poulenc for the shares in Hoechst, after which the
combined company was renamed ``Aventis''. The registered seat of Aventis is at Strasbourg (Bas-Rhin)
where it is registered with the Register of Commerce and Companies under docket number 542 064 308.
The principal of®ce of Aventis is located at F-67917 Strasbourg Cedex 09.
The duration of Aventis is limited. It shall cease to exist on July 17, 2030, except in the event of an
earlier dissolution or extension decided at an extraordinary general meeting of shareholders.
The corporate purpose of Aventis, as stated in its By-Laws, is:
. the taking by any means with no exceptions nor reservations, the holding in ownership or in
mere possession, the management, as the case may be, the transfer by any means with no
exceptions nor reservations or all or part of any minority or majority participations in any
business ®eld, in particular pertaining to ``life sciences'' comprising inter alia ``pharma''
(including pharmaceuticals, biologics, diagnostics and vaccines) and ``agro'' (including crop
sciences and animal nutrition) and ``veterinary'' business and, more generally, of any
participation in all companies or businesses whatsoever existing or to be created;
. the assistance to its subsidiaries and participations in any matter notably administrative and
®nancial;
. and generally, all industrial, commercial, ®nancial, civil, personal property or real property
directly or indirectly linked to either corporate purpose set forth hereabove or to all similar or
related purposes.
Share Capital
As of December 31, 2000, the registered share capital of Aventis amounted to e 3,002,059,625.06 and
was divided into 785,879,483 ordinary shares with a nominal value of e 3.82 each. The By-Laws of Aventis
set forth that Aventis Shares may be held either in registered or in bearer form, except that holders of 1% or
more of Aventis' share capital are required to register their Aventis Shares.
The Aventis Shares are listed on the Euronext Paris and Frankfurt stock exchanges. Aventis also has
American Depositary Shares (ADSs) listed on the New York Stock Exchange.
Business of Aventis
Aventis is the holding company of a group of subsidiary undertakings (Aventis together with its
subsidiary undertakings, the ``Aventis Group''). The Aventis Group operates world-wide and is active in a
wide range of business areas. The main focus of the Aventis Group is on its four core business areas of
prescription drugs, human vaccines, therapeutic proteins and animal health. The non-core businesses of the
Aventis Group include crop protection and production, animal nutrition, diagnostics and industrial
activities.
Rights Attaching to Shares
Transfer of Shares
The transfer of Aventis Shares is not restricted and does not require the approval of Aventis.
93

Annual General Meetings
The annual general meetings of shareholders are called and held in accordance with the applicable
provisions of French law. The annual general meetings are held at the registered seat of Aventis or at any
other location designated for that purpose in the announcement of convocation.
Voting Rights
The right to attend, and to vote at, the annual general meeting is accorded only to those shareholders
(holding Aventis Shares in bearer form) who obtain from the accredited ®nancial intermediary with whom
they maintain their securities deposit account a certi®cate (certi®cat d'immobilisation de titres au porteur)
indicating the number of Aventis Shares owned and evidencing the holding of such shares in the relevant
securities deposit account until the date of the annual general meeting. Such certi®cate needs to be
deposited at the address speci®ed in the announcement of convocation at least ®ve days before the date of
the annual general meeting. Similarly, the shareholders holding Aventis Shares in registered form are
required to have their Aventis Shares registered in their names with a share register maintained by or on
behalf of Aventis at least ®ve days before the date of the annual general meeting. The respective ®ve day
period may be reduced by the Management Board or the Supervisory Board.
At the annual general meeting, each Aventis Share confers one vote. Resolutions will be adopted by a
simple majority of the votes cast. A majority of two-thirds of the votes cast is required for resolutions
affecting Aventis' By-Laws.
Dividend Rights
The unconsolidated net income of Aventis in each ®nancial year is available (net of adjustments) for
distribution to its shareholders as dividends. The annual general meeting, either on a recommendation from
the Management Board or on its own initiative, may allocate all or part of the distributable pro®ts of
Aventis, if any, to one or more special or general reserves or to keep such pro®ts as retained earnings to be
carried forward to the next ®nancial year. Any remaining distributable pro®ts are divided amongst the
shareholders as dividends in proportion to their shareholdings. Dividends are payable to holders of Aventis
Shares outstanding on the date determined by the annual general meeting approving the distribution of
dividends, or in the absence of such determination, outstanding on the date ®xed by the Management
Board.
Rights in Liquidation
According to French law, in the event of liquidation, the assets of Aventis remaining after
reimbursement of Aventis Shares at their nominal value will be distributed to its shareholders in proportion
to their shareholdings.
Financial Year
The ®nancial year of Aventis is the calendar year.
94

Selected Financial Data
The following table sets out selected ®nancial data (in accordance with French GAAP) for Aventis
(RhoÃne-Poulenc for periods prior to December 15, 1999) for the three years ending December 31, 2000.
This data should be read in conjunction with, and is quali®ed in its entirety by reference to, certain
documents relating to Aventis incorporated by reference into this Information Memorandum. See
``Additional Information''.
2000 1999 1998
e million e million e million
Income Statement Data:
Net salesPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 22,304 12,598 13,232
Operating income (loss) PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 617 (544) 969
Income (loss) before taxes and minority interests PPPPPPPPPPPP (25) (823) 1,138
Provisions for income taxesPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP (60) 42 (343)
Minority interest PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP (85) (70) (9)
Net income (loss) before preferred remuneration PPPPPPPPPPPP (29) (851) 786
Preferred remuneration (1) PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP
Net income available for distribution to common shareholders
(118) (119) (142)
or (loss) (2) PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP
Balance Sheet Data:
(117) (970) 644
Working capital (3) PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP (1,009) (2,913) (775)
Property, plant and equipment, net PPPPPPPPPPPPPPPPPPPPPPPP 7,498 7,496 5,339
Total assets PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 42,183 41,578 24,318
Long-term debt (4) PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 8,216 6,437 3,868
Other long-term liabilities PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 6,994 5,944 2,642
Net debt (5) PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 13,133 12,270 6,172
Minority interests in net assets of consolidated subsidiaries PPP 1,029 1,460 1,028
Amortizable preferred securities PPPPPPPPPPPPPPPPPPPPPPPPPPP 272 325 339
Shareholders' equity PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 10,561 10,371 7,750
(1) Preferred remunerations consist of payments with respect to (a) Preference Shares Series A, (b) amortizable Preferred Securities,
(c) Participating Shares Series A and (d) Capital Equity Notes.
(2) Common shares consist of Ordinary Shares ``A'' and the Preferred Shares ``B.'' In 1998, RhoÃne-Poulenc converted all 926,820
issued Preferred Shares ``B'' into Ordinary Shares ``A'' on a one-to-one basis.
(3) Working capital is de®ned as total current assets minus total current liabilities.
(4) Long-term debt includes the debt relating to capitalised leases but does not include the current portion of long-term debt.
(5) Net debt is de®ned as bank overdrafts, current portion of long-term debt, short-term and long-term borrowings minus cash, shortterm
deposits and marketable securities.
(Source: 2000 Aventis Annual Report on Form 20-F)
95

Aventis publishes interim reports on a quarterly basis. The following table sets out selected ®nancial
data (in accordance with French GAAP) for Aventis as of and for the six months ending June 30, 2001.
This data should be read in conjunction with, and is quali®ed in its entirety by reference to, certain
documents relating to Aventis incorporated by reference into this Information Memorandum. See
``Additional Information''.
First Half
2001
e million
Income Statement Data:
Net salesPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 11,646
Operating income PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 1,772
Income before taxPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 1,487
Tax PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP (572)
Minority interestPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP (124)
Preferred remuneration (1) PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP (60)
Net income PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP
Balance Sheet Data:
730
Property, plant and equipment, net PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 5,609
Total assets PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 41,295
Long-term debt (2) PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 5,786
Other long-term liabilities PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 7,158
Minority interests in net assets of consolidated subsidiaries PPPPPPPPPPPPPPPPPPPPPPPPPPP 1,207
Amortizable preferred securities PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 248
Shareholders' equity PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 11,595
(1) Preferred remunerations consist of payments with respect to (a) Preference Shares Series A, (b) amortizable Preferred Securities,
(c) Participating Shares Series A and (d) Capital Equity Notes.
(2) Long-term debt includes the debt relating to capitalised leases but does not include the current portion of long-term debt.
(Source: Aventis Report for First Half 2001)
Distribution of Net Income
The following table sets out the basic earnings per Aventis Share for the three years ending December
31, 2000:
Earnings/Loss
per Share*
e
2000 PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP (0.19)
1999 PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP (2.49)
1998 PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 1.75
* Figures for 1999 and 1998 refer to former RhoÃne-Poulenc shares.
(Source: 2000 Aventis Annual Report on Form 20-F)
The following table sets out the dividends paid per Aventis Share for the three years ending December
31, 2000:
Dividend per
Share*
e
2000 PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 0.50
1999 PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 0.45
1998 PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 0.60
* Figures for 1999 and 1998 refer to former RhoÃne-Poulenc shares.
(Source: 2000 Aventis Annual Report on Form 20-F)
96

Share Price Statistics
The following table sets out, for the three years ending December 31, 2000, the closing price per
Aventis Share on the Premier MarcheÂ, as reported by Euronext Paris, at year-end:
Share Price at
Year-end*
e
2000 PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 93.50
1999 PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 57.70
1998 PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 43.84
* Figures for 1999 and 1998 refer to former RhoÃne-Poulenc shares.
(Source: Euronext Paris S.A.)
The following table sets out the highs and lows of the price per Aventis Share on the Premier MarcheÂ,
as reported by Euronext Paris, for the three years ending December 31, 2000:
2000 PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 93.50 47.82
1999 PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 67.90 41.00
1998 PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 52.88 30.20
* Figures for 1999 and 1998 refer to former RhoÃne-Poulenc shares.
(Source: Euronext Paris S.A.)
The following table sets out the highs and lows of the price per Aventis Share on the Premier MarcheÂ,
as reported by Euronext Paris, for the six months ending August 31, 2001:
August 2001PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 88.65 78.80
July 2001 PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 92.90 81.70
June 2001 PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 94.30 85.60
May 2001 PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 88.95 82.30
April 2001 PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 90.90 82.35
March 2001 PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 90.60 79.80
(Source: Euronext Paris S.A.)
Set out below is the closing price per Aventis Share on the Premier MarcheÂ, as reported by Euronext
Paris, on September 12, 2001:
High*
e
High
e
Low*
e
Low
e
Share Price
e
September 12, 2001PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 73.50
(Source: Euronext Paris S.A.)
Additional Information
Additional information regarding the share capital, business and management of Aventis is available
in the 2000, 1999 and 1998 Annual Reports and the Interim Report for the ®rst half of the ®nancial year
2001 of Aventis (1999 and 1998: RhoÃne-Poulenc) which are incorporated by reference into this Information
Memorandum.
97

REGULATION OF INSURANCE COMPANIES IN GERMANY
All private primary insurance companies in Germany are subject to the supervision of the Federal
Insurance Supervisory Authority (Bundesaufsichtsamt fuÈr das Versicherungswesen (the ``BAV'')).
Subsequent to deregulation of the insurance industry in 1994, the principal task of the BAV has been
solvency control and ®nancial monitoring. Insurance companies are required to submit quarterly interim
reports, audited annual accounts and statutory annual returns to the BAV. The BAV may appoint special
agents to protect the interests of policyholders and issue orders relating to the insurers' conduct of business.
As regards insurance companies registered in an EU member state other than Germany, some exemptions
apply.
The principles applicable to the supervision of insurance companies in Germany are laid down in the
Insurance Supervisory Act (Versicherungsaufsichtsgesetz (the ``VAG'')) of October 13, 1983, which has
been amended several times as a result of the implementation of various EU insurance directives. The VAG
requires, inter alia, that insurance companies maintain a certain margin of solvency (SolvabilitaÈtsspanne)
and minimum guarantee fund levels (Garantiefonds).
According to the VAG, life and health insurance must be transacted by companies separate from
those writing non-life insurance. Composite life and non-life businesses are not allowed in Germany,
although this is permitted for different companies within the same group. However, according to the EU
Non-Life Insurance Directive, employers may use the same insurance company for health and other
insurance. Insurance companies are not allowed to carry out non-insurance business, but primary insurers
may write reinsurance.
For companies which are exclusively involved in the reinsurance business and which are not organised
in the form of a mutual company, these principles do not apply. They are only to a limited extent subject to
the supervision of the BAV and their duties towards the BAV are largely reduced to the provision of
information. Holding companies that own interests in insurance companies but do not themselves conduct
regulated insurance business are not subject to the supervision of the BAV.
98

TAXATION
Taxation in the Federal Republic of Germany
The following is a general discussion of certain German income tax consequences of the acquisition,
ownership, exchange, and disposition of the Bonds, including the ownership and disposition of Shares
received in exchange of the Bonds. This discussion does not purport to be a comprehensive description of
all tax considerations that may be relevant to a decision to purchase the Bonds. In particular, this
discussion does not consider any speci®c facts or circumstances that may apply to a particular investor.
This summary is based on the law (including tax treaties) currently in force and as applied on the date of
this Information Memorandum, which is subject to change, possibly with retroactive effect.
Prospective investors are advised to consult their own tax advisers as to the tax consequences of the
purchase, ownership, exchange, and disposition of the Bonds and the ownership and disposition of the
Shares.
German Residents
Bonds
Interest Payments
Interest payments to Bondholders who are tax residents of Germany (i.e., persons whose residence,
habitual abode, statutory seat, or place of effective management and control is located in Germany) will be
subject to German personal or corporate income tax (plus a 5.5% solidarity surcharge thereon). This will
also apply to interest having accrued between the last interest payment date and the date of disposition
(StuÈckzinsen). Interest income will also be subject to German trade tax if the Bonds form part of the
property of the Bondholder's German commercial business establishment for trade tax purposes.
If the Bonds are held in custody by a bank or ®nancial services institution in Germany (a ``German
Disbursing Agent''), interest withholding tax (Zinsabschlagsteuer) will be levied on interest payments at a
rate of 30%, plus a 5.5% solidarity surcharge thereon (resulting in an aggregate withholding rate of
31.65%). Amounts withheld will be credited as prepayments against the Bondholder's liability for German
personal or corporate income tax (and the solidarity surcharge thereon) and, if in excess of such liability,
refunded.
German resident individuals are entitled to a standard deduction (Werbungskosten-Pauschbetrag) of
DM 100 (e 51) (DM 200 (e 102) for couples ®ling jointly) in computing their income from capital
investment (including interest income earned from Bonds held as private assets) as well as an exemption
(Sparer-Freibetrag) of DM 3,000 (e 1,550) (DM 6,000 (e 3,100) for couples ®ling jointly) with respect to
such investment income.
Sale, Redemption, or Exchange of the Bonds
According to a release issued by the German Federal Ministry of Finance on March 2, 2001 (BMF-
Schreiben vom 2. MaÈrz 2001, IV C 1 ± S2252 ± 56/01, BStBl. 2001 I, 206), the Bonds will be treated as
®nancial innovations (Finanzinnovationen) within the meaning of Section 20(1) No. 7 and (2) Sentence 1
No. 4c of the German Income Tax Act (Einkommensteuergesetz). As a result, Bondholders (including
individuals who have held the Bonds as private assets for more than one year) will earn taxable income
upon the sale or redemption of the Bonds in an amount equal to the difference between the proceeds from
the sale or redemption of the Bonds and the cost of acquisition (or adjusted book value) for the Bonds.
Bondholders who exchange Bonds for Shares will earn taxable income in an amount equal to the difference
between the fair market value of the Bonds at the date of the exchange and the book value of the Bonds if
the Bonds were held as part of their business property. Bondholders who exchange Bonds that were held as
private assets will earn taxable income in an amount equal to the difference between the fair market value
of the Shares at the date of the exchange and the cost of acquisition for the Bonds.
If the Bonds have been held in custody by the same German Disbursing Agent continuously from
their acquisition to their sale or redemption (or to the exchange of the Bonds for Shares), interest
withholding tax will be levied at an aggregate rate of 31.65% on an amount equal to the positive difference
between the proceeds from the sale or redemption of the Bonds (or, if the Bonds are exchanged for Shares,
the fair market value of the Shares at the date of exchange) and the cost of acquisition for the Bonds. If the
Bonds have not been so held, interest withholding tax will be levied at such rate on an amount equal to 30%
99

of the proceeds from the sale or redemption of the Bonds (or, if the Bonds are exchanged for Shares, the
fair market value of the Shares at the date of the exchange). In the event that a Bondholder exercises its
right to exchange the Bonds for Shares and, consequently, receives no cash payment, the German
Disbursing Agent will be held to request payment of the amount of interest withholding tax due from such
Bondholder. If the Bondholder does not pay the amount due to the German Disbursing Agent, the German
Disbursing Agent will be held to notify the German tax authorities thereof. The German tax authorities will
then collect the amount not withheld from the Bondholder directly.
Shares
Dividend Payments
New German tax rules, commonly referred to as the half-income system (HalbeinkuÈnfteverfahren),
have made signi®cant changes in the German tax treatment of dividend income and capital gains from the
sale of shares. The new rules entered into force on January 1, 2001 and generally apply to dividends
distributed by corporations in 2002 and thereafter. Exceptions may apply to dividends distributed by
corporations with a ®scal year that deviates from the calendar year.
According to the new rules, only half of the dividends distributed to individual Shareholders who are
tax residents of Germany will be subject to German personal income tax. Correspondingly, only half of the
expenses related to the dividend income will be deductible for income tax purposes. Dividends will be
subject to German trade tax under the same rules if the Shares form part of the property of the
Shareholder's German commercial business establishment for trade tax purposes.
It is uncertain whether individual shareholders resident in Germany who hold shares in a corporation
residing in France will be granted the avoir ®scal (see under ``French Taxation'' below). Pursuant to a joint
statement made by German and French tax authorities in the course of a mutual agreement procedure and
published by the German Federal Ministry of Finance on July 13, 2001, the competent authorities are
currently negotiating to abolish the transfer of the avoir ®scal to individual shareholders resident in
Germany.
Dividends distributed to corporate Shareholders resident in Germany by a corporation residing in
Germany will be exempt from German corporate income and trade tax. Expenses directly economically
related to the shareholding will only be deductible to the extent they exceed the amount of dividends
distributed.
In case of shares in a corporation residing in France, only 95% of dividends distributed to corporate
Shareholders resident in Germany will be exempt from German corporate income and trade tax. The
deductibility of expenses related to the shareholding will not be limited. Pursuant to the joint statement
made by the German and French tax authorities in the course of the mutual agreement procedure and
published by the German Federal Ministry of Finance on July 13, 2001, corporate shareholders resident in
Germany that hold less than 10% of the shares in a corporation residing in France will generally not be
entitled to the avoir ®scal.
Dividend payments by a corporation residing in Germany will be subject to German withholding tax
at an aggregate amount of 21.1% (consisting of a 20% withholding tax and a 1.1% solidarity surcharge).
This withholding tax will be levied on the full amount of the dividend notwithstanding the partial or full
exemption of dividends from personal or corporate income tax. Amounts withheld will be fully creditable
against the Shareholder's personal or corporate income tax liability (and the solidarity surcharge thereon)
and, if in excess of such liability, refunded.
This partial or full tax-exemption for dividends will not be available to (i) banks or ®nancial services
institutions for which the Shares form part of their operating assets (Handelsbuch) or (ii) ®nancial
institutions that acquired the Shares in order to realise a short-term trading gain.
German resident individuals are entitled to a standard deduction (Werbungskosten-Pauschbetrag) of
DM 100 (e 51) (DM 200 (e 102) for couples ®ling jointly) in computing their income from capital
investment (including dividend income earned from Shares held as private assets) as well as an exemption
(Sparer-Freibetrag) of DM 3,000 (e 1,550) (DM 6,000 (e 3,100) for couples ®ling jointly) with respect to
such investment income.
100

Sale of Shares Acquired in Exchange of the Bonds
Bondholders who acquire Shares in exchange of the Bonds that were held as part of their business
property will be treated as having acquired the Shares at the fair market value of the Bonds at the date of
the exchange. Under the new rules, only half of the gain realised on a subsequent sale of the Shares will be
subject to German personal income tax (plus the solidarity surcharge thereon) and, if the Shares form part
of the property of a German commercial business establishment, also to German trade tax. Such gain will
be entirely tax-exempt if realised by a corporation. However, this partial or full tax-exemption for gains
from the sale of the Shares will not be available to (i) banks or ®nancial services institutions for which the
Shares form part of their operating assets (Handelsbuch) or (ii) ®nancial institutions that acquired the
Shares in order to realise a short-term trading gain.
Individuals who realise a gain on a subsequent sale of the Shares will generally not be subject to
German taxation if the Shares were held as private assets. However, this does not apply to Shareholders
who (i) sell their Shares not more than one year after the exchange, except if the aggregate amount of gain
earned during the calendar year from sales of privately-held assets having occurred within the applicable
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
during the ®ve-year period preceding such sale, 1% or more of the stated capital of the company whose
Shares are being sold. Under the new rules, half of the gain realised by such Shareholders will be subject to
German personal income tax (plus the solidarity surcharge thereon). It is uncertain whether, in order to
determine the amount of gain realised, the Shares will be treated as having been acquired at their fair
market value on the date of the exchange or at the fair market value of the Bonds on the date of the
exchange.
German Non-Residents
Bonds
Income from the Bonds is Connected with Certain Activities in Germany
Interest paid to, and gains derived from the sale, redemption or exchange of the Bonds by,
Bondholders who are not residents of Germany, but to whom income from the Bonds constitutes income
connected with certain activities conducted in Germany, will be subject to German personal or corporate
income tax, plus the solidarity surcharge thereon, (and, if the Bonds form part of the property of a German
commercial business establishment for German trade tax purposes, also subject to German trade tax) in the
manner described above under the heading ``German Residents''. This will be the case if the Bonds (i) form
part of the business property of a permanent establishment or ®xed base maintained in Germany, (ii) are
held in connection with the letting or leasing of immovable or intangible property or a group of assets
located in Germany, (iii) are held in connection with the provision of services attributable to a ®xed base in
Germany, or (iv) are held in connection with agriculture or forestry for which a permanent establishment in
Germany is maintained. In such case, interest payments and amounts paid to the Bondholders on the sale
or redemption of the Bonds (or the delivery of the Shares in exchange of the Bonds) will also be subject to
German interest withholding tax (Zinsabschlagsteuer) if the Bonds are held in custody by a German
Disbursing Agent.
Income from the Bonds is not Connected with Certain Activities in Germany
Bondholders who are not residents of Germany and who do not hold the Bonds in connection with
any activity performed in Germany will generally not be subject to German personal or corporate income
tax (or trade tax) with respect to income earned on the Bonds. An exception may apply to holders of Bonds
who hold at the time of the sale or redemption of the Bonds (or the exchange of the Bonds for Shares), or
who have held at any time during the ®ve-year period preceding such disposition, directly or indirectly 1%
or more of the stated capital of the Shares in the company into whose Shares the Bonds can be exchanged,
if this company resides in Germany (German tax law is unclear as to whether, for purposes of this 1%ownership
test, only the number of Shares a Bondholder actually owns or has owned must be taken into
account or whether the Bondholder must also aggregate the number of Shares into which such Bondholder
could have exchanged the Bonds such Bondholder holds or has held). Bondholders who believe that they
may meet this 1%-threshold should consult their own tax advisers with regard to the application of these
rules. Payments on the Bonds (or the delivery of the Shares in exchange of the Bonds) will not be subject to
German interest withholding tax.
101

Shares
Dividend Payments
The new half-income system will apply to dividends distributed to holders of Shares who are not
residents of Germany in the manner described above under the heading ``German Residents ± Shares'' for
purposes of German personal and corporate income tax, if the Shares are connected with certain activities
in Germany in the manner described above under the heading ``Bonds''. Dividends are subject to German
trade tax under the same rules if the Shares form part of the property of a German commercial business
establishment.
The full amount of the dividend distributed by a corporation residing in Germany to an individual or
corporate non-resident will be subject to German withholding tax at an aggregate rate of 21.1% (20%
withholding tax plus 1.1% solidarity surcharge thereon). If the Shares are connected with certain activities
in Germany in the manner described above under the heading ``German Non-Residents ± Bonds'', the
amount withheld will be fully creditable against the shareholder's liability for German personal or
corporate income tax (and the solidarity surcharge thereon) and, if in excess of such liability, refunded.
The withholding tax rate may be reduced under an applicable income tax treaty (e.g., the income tax
treaty between the United States and Germany (the ``United States-Germany Tax Treaty'')) if the Shares
are not connected with certain activities in Germany in the manner described above under the heading
``German Non-Residents ± Bonds''. The reduction is granted by way of a refund from the German tax
authorities in an amount equal to the difference between the amount withheld at the German statutory rate
(plus the solidarity surcharge thereon) and the amount computed under the applicable treaty rate. Holders
of Shares should consult their own tax advisers with respect to the procedures for claiming treaty bene®ts in
respect of the Shares.
Sale of Shares Acquired in Exchange of the Bonds
Gains realised by a non-resident from the sale of Shares acquired in exchange of the Bonds will be
subject to German personal or corporate income tax (and possibly trade tax) in the manner described
above under the heading ``German Residents ± Shares'' if the Shares (i) form part of the business property
of a permanent establishment or ®xed base maintained in Germany, (ii) are held in connection with the
provision of services attributable to a ®xed base in Germany, or (iii) are held in connection with agriculture
and forestry for which a permanent establishment in Germany is maintained. Non-residents who do not
hold their Shares in connection with any activity performed in Germany will generally not be subject to
German taxation with respect to gains earned on the sale of the Shares. As mentioned above, an exception
may apply to holders of Shares who hold at the time of the sale, or who have held at any time during the
®ve-year period preceding such sale, directly or indirectly 1% or more of the stated capital of the Shares in a
corporation residing in Germany.
Inheritance or Gift Tax
The gratuitous transfer of the Bonds or the Shares by a holder as a gift or by reason of death is subject
to German gift or inheritance tax, based on the market value of such Bonds or Shares at the time of the
transfer, if the holder of the Bonds or Shares or the recipient is a resident, or deemed to be a resident, of
Germany under German gift and inheritance tax law. If neither the holder of the Bonds or Shares nor the
recipient is a resident, or deemed to be a resident, of Germany at the time of the transfer, no German gift or
inheritance tax is levied unless the Bonds or Shares form part of the business property of a permanent
establishment or a ®xed base maintained by the holder of the Bonds or Shares in Germany or, in case of a
transfer of Shares, the holder of the Shares at the time of the transfer owns, directly or indirectly, 10% or
more of the capital of the company in which the Shares are held and the company resides in Germany. In
the latter case, however, Germany may have waived its right to impose gift or inheritance tax under an
applicable inheritance and gift tax treaty (e.g., the United States-Germany inheritance and gift tax treaty).
Exceptions to these rules may apply to certain individuals having expatriated from Germany.
Other Taxes
No stamp, issue, registration, turnover, transfer or similar taxes or duties will be payable in Germany
in connection with the issuance, delivery, or execution of the Bonds or Shares. Net wealth tax
(VermoÈgensteuer) is currently not levied in Germany.
102

French Taxation
The following discussion generally summarises the principal French tax consequences of the
ownership and disposition of Aventis Shares that are received upon exchange of the Aventis Bonds.
This discussion is intended only as a descriptive summary and does not purport to be a complete
analysis or listing of all potential tax effects of the ownership or disposition of the Aventis Shares. It is
based on laws, directives and treaties in force as of the date hereof, all of which are subject to change,
possibly with retroactive effect, or different interpretation.
The following summary does not discuss the treatment of Aventis Shares that are held by a resident of
France (except for purposes of illustration) or in connection with a permanent establishment or ®xed base
through which a holder of Aventis Shares carries on business or performs personal services in France, or by
a person that owns, directly or indirectly, 5% or more of the stock of Aventis.
Prospective investors are advised to consult their own tax advisers as to the potential tax effects of
owning and disposing of the Aventis Shares in the light of their particular situation.
Taxation of Dividends
French residents are entitled to a tax credit, known as the avoir ®scal, in respect of dividends they
receive from French companies. Individuals are entitled to an avoir ®scal equal to 50% of the dividend
whereas corporate investors are generally entitled to an avoir ®scal equal to 15% of the dividend for
dividends paid in 2001 and after. Dividends paid to non-residents normally are subject to a 25% French
withholding tax and are not eligible for the bene®t of the avoir ®scal. However, non-resident holders of
Aventis Shares that comply with the requirements and procedures for claiming bene®ts under an applicable
income tax treaty (e.g., the income tax treaty between the United States and France (the ``United States-
France Tax Treaty'')) may be subject to a reduced rate of withholding tax (generally 15%), and may be
entitled to bene®t from a refund of the avoir ®scal, as described below. If a non-resident holder of Aventis
Shares establishes its entitlement to treaty bene®ts prior to the payment of a dividend, then French tax
generally will be withheld at the reduced rate provided under the applicable treaty.
Dividends paid out of pro®ts that have not been taxed at the ordinary corporate income tax rate, or
were earned and taxed more than ®ve years before the distribution, are subject to an equalisation tax called
the preÂcompte, which is payable by the distributing corporation. The preÂcompte generally is equal to onehalf
of the amount of the dividend paid to the shareholder prior to deduction of withholding tax. Corporate
investors entitled under a tax treaty to a refund of the avoir ®scal at a rate of 15% (i.e., for dividends paid in
2001 or after) may claim an additional payment equal to 70% of the preÂcompte actually paid in cash by the
distributing corporation, less the applicable withholding tax. This additional payment is considered an
increase to the avoir ®scal. Individual investors entitled under a tax treaty to a refund of the avoir ®scal at a
rate of 50% are not entitled to an additional payment in respect of the preÂcompte.
When a tax treaty does not provide for a refund of the avoir ®scal, or when a non-resident investor is
not entitled to such a refund but is otherwise entitled to the bene®ts of the tax treaty, then such qualifying
investor may obtain from the French tax authorities a payment equal to the preÂcompte actually paid in cash
by the distributing corporation, less the applicable withholding tax.
Holders of Aventis Shares should consult their own tax advisers with respect to the requirements and
procedures for claiming treaty bene®ts and receiving avoir ®scal and preÂcompte payments in respect of such
shares.
Taxation on Disposition of the Aventis Shares
Shareholders that are not residents of France for tax purposes, do not hold Aventis Shares in
connection with the conduct of a business or profession in France, and have held not more than 25% of the
dividend rights (droits aux beÂne®ces sociaux) of the French issuing company, directly or indirectly, at any
time during the preceding ®ve years, are not subject to tax in France on the disposition of the Aventis
Shares.
A 1% registration duty (subject to a maximum of e 3,049 per transfer) applies to certain transfers of
shares in French companies. The duty does not apply to transfers of shares in listed companies that are not
evidenced by a written agreement, or if any such agreement is executed outside France.
103

Estate and Gift Tax
France imposes estate and gift tax on shares of a French company that are acquired by inheritance or
gift. The tax applies without regard to the residence of the transferor. However, France has entered into
estate and gift tax treaties with a number of countries pursuant to which, assuming certain conditions are
met, residents of the treaty country may be exempted from such tax or obtain a tax credit.
Under the estate and gift tax treaty between the United States and France, a transfer of Aventis
Shares by gift or by reason of the death of a U.S. holder entitled to bene®ts under that treaty will not be
subject to French gift or inheritance tax, if the donor or decedent was not domiciled in France at the time of
the transfer, and the Aventis Shares were not used or held for use in the conduct of a business or profession
through a permanent establishment or ®xed base in France.
At present, there is no applicable estate and gift tax treaty between Germany and France. Prospective
investors should consult their own tax advisers as to the tax consequences of the transfer of the Aventis
Shares by gift or by reason of death.
Taxation of German Investors
The following is a summary of the principal French and German tax consequences of the ownership
and disposition of the Aventis Shares for a Shareholder that is a resident of Germany for purposes of the
income tax treaty between Germany and France (the ``Germany-France Tax Treaty'') and is fully eligible
for bene®ts under the Germany-France Tax Treaty (a ``German holder''). This summary does not discuss
the treatment of Aventis Shares that are held in connection with a permanent establishment or ®xed base
through which a Shareholder carries on business or performs personal services in France.
In general, dividends paid to a German holder are subject to French withholding tax at the reduced
rate of 15% provided by the Germany-France Tax Treaty. In addition, dividends received by an individual
German holder give such holder a right to payment of the avoir ®scal to which a resident of France would
be entitled (see above).
Pursuant to a joint statement made by German and French tax authorities in the course of a mutual
agreement procedure and published by the German Federal Ministry of Finance on July 13, 2001, the
competent authorities are currently negotiating to abolish the transfer of the avoir ®scal to individual
shareholders resident in Germany. Therefore, it is uncertain whether individual shareholders resident in
Germany who hold shares in a corporation residing in France will be granted the avoir ®scal. It is also
unclear, as of which taxable period the abolishment of the transfer of the avoir ®scal will apply.
If an individual German holder complies with the requirements and procedures for claiming treaty
bene®ts before a dividend is paid and is entitled to the avoir ®scal, 100% of the dividend will be paid to the
German holder, free of French withholding tax. Such individual German holder must declare the avoir
®scal, which is equal to 50% of the dividend, as an additional dividend in its tax return and offset the
amount of such avoir ®scal against its income tax liability in order to determine the actual income tax
payable. If the amount of the avoir ®scal is greater than the amount of income tax payable, the German
holder will be entitled to a refund of the excess from the German tax authorities.
If a corporate German holder complies with the requirements and procedures for claiming treaty
bene®ts before a dividend is paid, the dividend will be paid after deduction of French withholding tax at the
reduced rate of 15% provided for by the Germany-France Tax Treaty. Pursuant to the joint statement
made by the German and French tax authorities in the course of the mutual agreement procedure and
published by the German Federal Ministry of Finance on July 13, 2001, corporate shareholders resident in
Germany are not entitled to the avoir ®scal any more. Such corporate Shareholders may obtain from the
French tax authorities a refund of the preÂcompte actually paid in cash by the distributing company less the
15% withholding tax.
If a German holder does not comply with the requirements and procedures for claiming treaty
bene®ts before a dividend is paid, French tax will be withheld at the 25% rate, and an application for refund
must be ®led with the French tax authorities. Such refund can take place only if the application is made
before the end of the fourth year following the year the dividend is paid.
104

German holders of Aventis Shares should consult their own tax advisers with respect to the
requirements and procedures for claiming treaty bene®ts and receiving avoir ®scal and preÂcompte payments
in respect of such shares, including the requirements and procedures for claiming refunds of withholding
tax.
Proposed EU Savings Tax Directive
On July 18, 2001, the EU Commission published a proposal for a new directive regarding the taxation
of savings income. It is proposed that each EU member state under its domestic law requires disbursing
agents (within the meaning of the directive established within its territory to provide to the tax authorities
of another member state details of the payment of interest or other similar income such as discount or
premium to an individual resident in that other member state. However, for a transitional period of seven
years Austria, Belgium and Luxembourg may opt instead to withhold tax from such payments. During the
®rst three years after the directive has come into force, tax will have to be withheld by these member states
at a rate of 15% and thereafter of 20%. During the transitional period, the directive will not apply to Bonds
that have been issued in an increase of the nominal amount of Bonds prior to 1 March 2002 if the original
issue has taken place or the prospectus for the original issue has been approved before 1 March 2001. The
proposed directive is to be implemented by the member states by 1 January 2004. However, since the
implementation of the proposal is subject to certain non EU member states and associated territories and
dependencies of EU member states also agreeing to supply information or imposing a withholding tax it is
currently not possible to predict whether, when, or in what form the proposal will ultimately be adopted.
United States Federal Income Taxation
Bonds Exchangeable for E.ON Shares and E.ON Shares
The following is a summary of the material German and U.S. federal income tax consequences for
U.S. holders of the acquisition, ownership, and disposition of the Bonds Exchangeable for E.ON Shares
and the E.ON Shares for which the Bonds Exchangeable for E.ON Shares may in certain circumstances be
exchanged. For purposes of this discussion, a U.S. holder is a bene®cial owner of a Bond Exchangeable for
E.ON Shares or, with respect to ``±Dividends on the E.ON Shares'' and ``±Sale or other Disposition of the
E.ON Shares'', an E.ON Share (including dividends paid with respect thereto), that is a resident of the
United States for purposes of the United States-Germany Tax Treaty and is fully eligible for bene®ts under
the United States-Germany Tax Treaty. A holder will generally be entitled to bene®ts under the United
States-Germany Tax Treaty if such holder is:
. an individual resident of the United States, a U.S. corporation, or a partnership, estate or trust
to the extent its income is subject to taxation in the United States in its hands or in the hands of
its partners or bene®ciaries;
. not also a resident of Germany for German tax purposes; and
. not subject to an anti-treaty shopping article that applies under limited circumstances.
This summary does not purport to be a comprehensive description of all of the tax considerations that
may be relevant to any particular investor, and does not discuss tax considerations that arise from rules of
general application or that are generally assumed to be known by investors. In particular, this summary
deals only with (i) Bonds Exchangeable for E.ON Shares held as capital assets by U.S. holders who
purchase Bonds Exchangeable for E.ON Shares at their issue price in the initial offering, and (ii) E.ON
Shares received in exchange for Bonds Exchangeable for E.ON Shares and held as capital assets. This
summary does not address the tax treatment of holders that are subject to special rules, such as banks,
insurance companies, dealers in securities or currencies, persons that elect mark-to-market treatment,
persons holding Bonds Exchangeable for E.ON Shares or E.ON Shares as a position in a synthetic security,
straddle, or conversion transaction, persons that own, directly or indirectly, 10 percent or more of E.ON's
voting stock, and persons whose functional currency is not the U.S. dollar.
This summary is based on laws, treaties, regulatory interpretations, and judicial decisions in effect on
the date hereof, all of which are subject to change, possibly with retroactive effect.
Holders should consult their own tax advisers regarding the tax consequences of the acquisition,
ownership, and disposition of the Bonds Exchangeable for E.ON Shares and the E.ON Shares in the light
of their particular circumstances, including the effect of any state, local, or other national tax laws.
105

The United States-Germany Tax Treaty bene®ts discussed below generally are not available to U.S.
taxpayers who hold E.ON Shares in connection with the conduct of business through a permanent
establishment, or the performance of personal services through a ®xed base, in Germany. This summary
does not discuss the treatment of such holders.
Bonds Exchangeable for E.ON Shares
Interest on the Bonds Exchangeable for E.ON Shares
Payments of stated interest on the Bonds Exchangeable for E.ON Shares will generally be subject to
U.S. federal income taxation as ordinary income at the time such payments accrue or are received, in
accordance with a U.S. holder's method of accounting for tax purposes.
If a U.S. holder uses the cash method of tax accounting and receives payments of stated interest in
euro, the amount of interest income the holder will realise generally will be the U.S. dollar value of the euro
payment based on the exchange rate in effect on the date of receipt, regardless of whether the payment is in
fact converted into U.S. dollars.
If a U.S. holder uses the accrual method of tax accounting, the amount of interest income the holder
will realise in respect of stated interest on the Bonds Exchangeable for E.ON Shares will be based on the
average exchange rate in effect during the interest accrual period (or, with respect to an interest accrual
period that spans two taxable years, the partial period within the taxable year). Alternatively, an accrualbasis
U.S. holder may elect to translate all stated interest income on the Bonds Exchangeable for E.ON
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
an accrual period that spans more than one taxable year), or on the date that the interest payment is
received if that date is within ®ve business days of the end of the accrual period or taxable year. Such an
election must be applied consistently to all debt instruments from year to year and cannot be changed
without the consent of the Internal Revenue Service. If a U.S. holder uses the accrual method of tax
accounting, the holder will recognise foreign currency gain or loss on the receipt of a payment of stated
interest in euro if the exchange rate in effect on the date the payment is received differs from the rate
applicable to a previous accrual of that interest income. This foreign currency gain or loss will be treated as
ordinary income or loss, and generally will not be treated as an adjustment to interest income received on
the Bonds Exchangeable for E.ON Shares.
Sale, Exchange, or other Disposition of the Bonds Exchangeable for E.ON Shares
A U.S. holder's initial tax basis in a Bond Exchangeable for E.ON Shares generally will equal the
U.S. dollar value of the amount in euro that the holder paid for the Bond Exchangeable for E.ON Shares,
determined on the date of purchase.
A U.S. holder will generally recognise gain or loss on a sale, exchange, or other disposition of the
Bonds Exchangeable for E.ON Shares in an amount equal to the difference between the amount realised on
such sale, exchange, or other disposition (less any accrued stated interest, which will be taxable as ordinary
interest income) and such holder's adjusted tax basis in the Bonds Exchangeable for E.ON Shares. If a U.S.
holder receives foreign currency in respect of a sale, exchange, or other disposition of a Bond Exchangeable
for E.ON Shares, the amount realised will be the U.S. dollar equivalent of the amount received, calculated
at the exchange rate in effect at the time of the sale, exchange, or disposition. Except as discussed below
with respect to foreign currency gain or loss, gain or loss recognised by a U.S. holder on a sale, exchange, or
other disposition of a Bond Exchangeable for E.ON Shares generally will be capital gain or loss and will be
long-term capital gain or loss if the holding period for the Bond Exchangeable for E.ON Shares is more
than one year on the date of disposition. A U.S. holder's ability to offset capital losses against ordinary
income is limited. Long-term capital gain recognised by an individual U.S. holder generally is subject to
taxation at a maximum rate of 20%.
Notwithstanding the foregoing, gain or loss recognised by a U.S. holder on a sale, exchange, or other
disposition of a Bond Exchangeable for E.ON Shares generally will be treated as ordinary income or loss to
the extent that the gain or loss is attributable to changes in exchange rates during the period in which the
Bond Exchangeable for E.ON Shares was held. This foreign currency gain or loss will not be treated as an
adjustment to interest income received on the Bond Exchangeable for E.ON Shares.
106

There are no clear rules that govern the treatment of debt securities that are denominated in foreign
currencies and that provide for payments that are contingent as to amount. Because the value of the E.ON
Shares is not ®xed, the treatment of a U.S. holder's right to exchange Bonds Exchangeable for E.ON Shares
for E.ON Shares is not entirely free from doubt. Nonetheless, because there are no rules that require that
such contingent payments be taken into account before they become ®xed, the exchange of a Bond
Exchangeable for E.ON Shares for E.ON Shares pursuant to the exchange right incorporated in the terms
of the Bonds Exchangeable for E.ON Shares should generally be treated the same as an exchange for cash
or other property. The amount realised on such an exchange for E.ON Shares would be the fair market
value in U.S. dollars of the E.ON Shares received in the exchange, determined at the time of the exchange.
It is possible, however, that the Internal Revenue Service would take a different view. In particular, the
Internal Revenue Service has indicated that it is considering adopting rules comparable to those applicable
to non-foreign currency debt securities that provide for contingent payments, which could affect the timing
and the character of income recognised by a U.S. holder with respect to the Bonds Exchangeable for E.ON
Shares. U.S. holders should consult their own tax advisers regarding the treatment of the exchange right
incorporated in the terms of the Bonds Exchangeable for E.ON Shares.
E.ON Shares
Dividends on the E.ON Shares
As discussed in more detail under ``±Taxation in the Federal Republic of Germany,'' above, new
German tax rules that entered into force on January 1, 2001 have made signi®cant changes in the German
tax treatment of dividend income. For dividends subject to the new rules, German withholding tax applies
at an aggregate rate of 21.1% (consisting of a 20% withholding tax and a 1.1% solidarity surcharge). Under
the United States-Germany Tax Treaty, a U.S. holder will be entitled to claim a refund to the extent the
amount withheld exceeds the 15% rate provided under the treaty. Accordingly, a U.S. holder who complies
with procedures for claiming treaty bene®ts will receive total cash payments of 85 in respect of a dividend of
100, and will incur a net German withholding tax cost of 15. For U.S. tax purposes, the U.S. holder will be
deemed to have received dividend income of 100.
U.S. holders of E.ON Shares should consult their own tax advisers with respect to the procedures for
claiming treaty bene®ts in respect of such shares.
The gross amount of dividends that a U.S. holder receives (prior to the deduction of German
withholding tax) generally will be subject to U.S. federal income taxation as foreign source dividend
income. German withholding tax at the 15% rate provided under the United States-Germany Tax Treaty
will be treated as a foreign income tax that, subject to generally applicable limitations under U.S. tax law, is
eligible for credit against a U.S. holder's U.S. federal income tax liability or, at the holder's election, may be
deducted in computing taxable income. A U.S. holder will not be able to claim credits for German taxes
that would have been refunded if the holder had ®led a claim for a refund. Foreign tax credits will not be
allowed for withholding taxes imposed in respect of certain short-term or hedged positions in securities or
in respect of arrangements in which a U.S. holder's expected economic pro®t is insubstantial. U.S. holders
should consult their own tax advisers concerning the implications of these rules in the light of their
particular circumstances.
Dividends paid in Deutsche Marks or euro will be included in the income of a U.S. holder in a U.S.
dollar amount calculated by reference to the exchange rate in effect on the date of receipt by the holder,
regardless of whether the payment is in fact converted into U.S. dollars. If such a dividend is converted into
U.S. dollars on the date of receipt, a U.S. holder generally should not be required to recognise foreign
currency gain or loss in respect of the dividend income. A U.S. holder may be required to recognise foreign
currency gain or loss on the receipt of a refund in respect of German withholding tax to the extent the U.S.
dollar value of the refund differs from the U.S. dollar equivalent of that amount on the date of receipt of
the underlying dividend.
Sale or other Disposition of the E.ON Shares
For U.S. federal income tax purposes, gain or loss realised by a U.S. holder on a sale or other
disposition of E.ON Shares will be capital gain or loss, and will be long-term capital gain or loss if the
E.ON Shares were held for more than one year. A U.S. holder's initial tax basis in E.ON Shares acquired
on an exchange of Bonds Exchangeable for E.ON Shares will generally be the fair market value in U.S.
dollars of the E.ON Shares received in the exchange, determined at the time of the exchange, and a U.S.
107

holder's holding period for E.ON Shares acquired on an exchange of Bonds Exchangeable for E.ON Shares
will generally run from the time of the exchange. A U.S. holder's ability to offset capital losses against
ordinary income is limited. Long-term capital gain recognised by an individual U.S. holder generally is
subject to taxation at a maximum rate of 20%.
Bonds Exchangeable for Aventis Shares and Aventis Shares
The following is a summary of the material French and U.S. federal income tax consequences for U.S.
holders of the acquisition, ownership, and disposition of the Bonds Exchangeable for Aventis Shares and
the Aventis Shares for which the Bonds Exchangeable for Aventis Shares may in certain circumstances be
exchanged. For purposes of this discussion, a U.S. holder is a bene®cial owner of a Bond Exchangeable for
Aventis Shares or, with respect to ``±Dividends on the Aventis Shares'' and ``±Sale or other Disposition of
the Aventis Shares'', an Aventis Share (including dividends paid with respect thereto), that is a resident of
the United States for purposes of the United States-France Tax Treaty and is fully eligible for bene®ts
under the United States-France Tax Treaty. A holder will generally be entitled to bene®ts under the United
States-France Tax Treaty if such holder is:
. an individual resident of the United States, a U.S. corporation, or a partnership, estate or trust
to the extent its income is subject to taxation in the United States in its hands or in the hands of
its partners or bene®ciaries;
. not also a resident of France for French tax purposes; and
. not subject to an anti-treaty shopping article that applies under limited circumstances.
Special rules apply to pension funds and certain other tax-exempt investors.
This summary does not purport to be a comprehensive description of all of the tax considerations that
may be relevant to any particular investor, and does not discuss tax considerations that arise from rules of
general application or that are generally assumed to be known by investors. In particular, this summary
deals only with (i) Bonds Exchangeable for Aventis Shares held as capital assets by U.S. holders who
purchase Bonds Exchangeable for Aventis Shares at their issue price in the initial offering, and (ii) Aventis
Shares received in exchange for Bonds Exchangeable for Aventis Shares and held as capital assets. This
summary does not address the tax treatment of holders that are subject to special rules, such as banks,
insurance companies, dealers in securities or currencies, persons that elect mark-to-market treatment,
persons holding Bonds Exchangeable for Aventis Shares or Aventis Shares as a position in a synthetic
security, straddle, or conversion transaction, persons that own, directly or indirectly, 5 percent or more of
Aventis' voting stock, and persons whose functional currency is not the U.S. dollar.
This summary is based on laws, treaties, regulatory interpretations, and judicial decisions in effect on
the date hereof, all of which are subject to change, possibly with retroactive effect.
Holders should consult their own tax advisers regarding the tax consequences of the acquisition,
ownership, and disposition of the Bonds Exchangeable for Aventis Shares and the Aventis Shares in the
light of their particular circumstances, including the effect of any state, local, or other national tax laws.
The United States-France Tax Treaty bene®ts discussed below generally are not available to U.S.
taxpayers who hold Aventis Shares in connection with the conduct of business through a permanent
establishment, or the performance of personal services through a ®xed base, in France. This summary does
not discuss the treatment of such holders.
Bonds Exchangeable for Aventis Shares
Interest on the Bonds Exchangeable for Aventis Shares
Payments of stated interest on the Bonds Exchangeable for Aventis Shares will generally be subject to
U.S. federal income taxation as ordinary income at the time such payments accrue or are received, in
accordance with a U.S. holder's method of accounting for tax purposes.
If a U.S. holder uses the cash method of tax accounting and receives payments of stated interest in
euro, the amount of interest income the holder will realise generally will be the U.S. dollar value of the euro
payment based on the exchange rate in effect on the date of receipt, regardless of whether the payment is in
fact converted into U.S. dollars.
108

If a U.S. holder uses the accrual method of tax accounting, the amount of interest income the holder
will realise in respect of stated interest on the Bonds Exchangeable for Aventis Shares will be based on the
average exchange rate in effect during the interest accrual period (or, with respect to an interest accrual
period that spans two taxable years, the partial period within the taxable year). Alternatively, an accrualbasis
U.S. holder may elect to translate all stated interest income on the Bonds Exchangeable for Aventis
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
an accrual period that spans more than one taxable year), or on the date that the interest payment is
received if that date is within ®ve business days of the end of the accrual period or taxable year. Such an
election must be applied consistently to all debt instruments from year to year and cannot be changed
without the consent of the Internal Revenue Service. If a U.S. holder uses the accrual method of tax
accounting, the holder will recognise foreign currency gain or loss on the receipt of a payment of stated
interest in euro if the exchange rate in effect on the date the payment is received differs from the rate
applicable to a previous accrual of that interest income. This foreign currency gain or loss will be treated as
ordinary income or loss, and generally will not be treated as an adjustment to interest income received on
the Bonds Exchangeable for Aventis Shares.
Sale, Exchange, or other Disposition of the Bonds Exchangeable for Aventis Shares
A U.S. holder's initial tax basis in a Bond Exchangeable for Aventis Shares generally will equal the
U.S. dollar value of the amount in euro that the holder paid for the Bond Exchangeable for Aventis Shares,
determined on the date of purchase.
A U.S. holder will generally recognise gain or loss on a sale, exchange, or other disposition of the
Bonds Exchangeable for Aventis Shares in an amount equal to the difference between the amount realised
on such sale, exchange, or other disposition (less any accrued stated interest, which will be taxable as
ordinary interest income) and such holder's adjusted tax basis in the Bonds Exchangeable for Aventis
Shares. If a U.S. holder receives foreign currency in respect of a sale, exchange, or other disposition of a
Bond Exchangeable for Aventis Shares, the amount realised will be the U.S. dollar equivalent of the
amount received, calculated at the exchange rate in effect at the time of the sale, exchange, or disposition.
Except as discussed below with respect to foreign currency gain or loss, gain or loss recognised by a U.S.
holder on a sale, exchange, or other disposition of a Bond Exchangeable for Aventis Shares generally will
be capital gain or loss and will be long-term capital gain or loss if the holding period for the Bond
Exchangeable for Aventis Shares is more than one year on the date of disposition. A U.S. holder's ability to
offset capital losses against ordinary income is limited. Long-term capital gain recognised by an individual
U.S. holder generally is subject to taxation at a maximum rate of 20%.
Notwithstanding the foregoing, gain or loss recognised by a U.S. holder on a sale, exchange, or other
disposition of a Bond Exchangeable for Aventis Shares generally will be treated as ordinary income or loss
to the extent that the gain or loss is attributable to changes in exchange rates during the period in which the
Bond Exchangeable for Aventis Shares was held. This foreign currency gain or loss will not be treated as an
adjustment to interest income received on the Bond Exchangeable for Aventis Shares.
There are no clear rules that govern the treatment of debt securities that are denominated in foreign
currencies and that provide for payments that are contingent as to amount. Because the value of the
Aventis Shares is not ®xed, the treatment of a U.S. holder's right to exchange Bonds Exchangeable for
Aventis Shares for Aventis Shares is not entirely free from doubt. Nonetheless, because there are no rules
that require that such contingent payments be taken into account before they become ®xed, the exchange of
a Bond Exchangeable for Aventis Shares for Aventis Shares pursuant to the exchange right incorporated in
the terms of the Bonds Exchangeable for Aventis Shares should generally be treated the same as an
exchange for cash or other property. The amount realised on such an exchange for Aventis Shares would be
the fair market value in U.S. dollars of the Aventis Shares received in the exchange, determined at the time
of the exchange. It is possible, however, that the Internal Revenue Service would take a different view. In
particular, the Internal Revenue Service has indicated that it is considering adopting rules comparable to
those applicable to non-foreign currency debt securities that provide for contingent payments, which could
affect the timing and the character of income recognised by a U.S. holder with respect to the Bonds
Exchangeable for Aventis Shares. U.S. holders should consult their own tax advisers regarding the
treatment of the exchange right incorporated in the terms of the Bonds Exchangeable for Aventis Shares.
109

Aventis Shares
Dividends on the Aventis Shares
As discussed under ``±French Taxation,'' above, Aventis will withhold tax from dividend payments to
a U.S. holder at a reduced rate of 15%, provided that the U.S. holder has previously complied with the
requirements and procedures for claiming bene®ts under the United States-France Tax Treaty. If such
procedures are not complied with prior to the dividend payment date, Aventis will deduct French
withholding tax at the rate of 25%, and the U.S. holder may claim a withholding tax refund by ®ling an
application for refund with the French tax authorities by December 31 of the second year following the
year in which the withholding tax was paid.
U.S. holders of Aventis Shares may also be entitled to a payment from the French tax authorities
equal to the avoir ®scal, less a 15% withholding tax, if they ®le an application with the French tax
authorities before December 31 of the year following the year during which the dividend is paid. A U.S.
holder generally will be entitled to receive a refund of the avoir ®scal only if it attests (or its partners,
bene®ciaries or grantors attest, if the U.S. holder is a partnership, estate or trust) that it is subject to U.S.
federal income tax on the avoir ®scal payment and the dividend to which it relates. Assuming that the
requirements and procedures for claiming bene®ts under the United States-France Tax Treaty have been
complied with, a U.S. holder that is a corporation generally will be entitled to an avoir ®scal refund of 15%
of the amount of a dividend paid in 2001 or after, and a U.S. holder that is an individual generally will be
entitled to an avoir ®scal refund at the 50% rate. The refund of the avoir ®scal will not be made available
until after January 15 following the close of the calendar year in which the dividend is paid.
Pension funds and certain other tax-exempt U.S. holders are entitled under the United States-France
Tax Treaty to a reduced withholding tax rate of 15%, and to a payment at least equal to 30/85 of the avoir
®scal generally payable to a corporation, less a 15% withholding tax.
U.S. holders that are not entitled to receive payments in respect of the avoir ®scal at the 50% rate (e.g.,
corporations and certain tax-exempt investors) will be entitled to receive an additional payment from the
French tax authorities if Aventis is liable for the preÂcompte in respect of a dividend distribution. Corporate
holders of Aventis Shares receiving dividends in 2001 or after generally will be entitled to receive a payment
equal to 70% of the preÂcompte that Aventis actually pays in cash, less a 15% withholding tax. Pension funds
and certain other tax-exempt U.S. holders generally will be entitled to receive 30/85 of this amount, less a
15% withholding tax. The additional payment is considered an increase to the avoir ®scal, and will also not
be made available until after the close of the calendar year in which the dividend is paid. Individual U.S.
holders entitled to a refund of the avoir ®scal at a rate of 50% are not entitled to an additional payment in
respect of the preÂcompte.
If a U.S. holder is not entitled to a refund of the avoir ®scal, such holder generally may obtain from
the French tax authorities a refund of the preÂcompte Aventis actually pays in cash in respect of a dividend,
less a 15% withholding tax. Pension funds and certain other tax-exempt U.S. holders are also entitled to a
refund of the preÂcompte Aventis actually pays in cash in respect of a dividend, but only up to the amount
exceeding the payments to which they are entitled in respect of the avoir ®scal and the avoir ®scal increase.
If a U.S. holder is not entitled to a refund of the avoir ®scal but is entitled to a full refund of the
preÂcompte, or if it is a U.S. pension fund or other tax-exempt U.S. holder that is entitled to a partial refund
of the preÂcompte, it must make an application for such refund with the French tax authorities before the
end of the year following the year in which the dividend was paid.
Thus, for example, if Aventis pays a dividend of 100 to an individual U.S. holder, the holder initially
will receive 85, but will be entitled to an additional payment of 42.50, consisting of the avoir ®scal of 50 less
a 15% withholding tax. If Aventis pays a dividend in 2001 of 100 to a U.S. holder that is a corporation,
such U.S. holder initially will receive 85, but will generally be entitled to an additional payment of 12.75,
consisting of the avoir ®scal of 15, less a 15% withholding tax on that amount (equal to 2.25); in the event
that the dividend distribution triggers payment by Aventis of the preÂcompte, such U.S. holder may also
obtain from the French tax authorities an additional payment equal to 70% of the preÂcompte that Aventis
actually pays in cash, less a 15% withholding tax. If Aventis pays a dividend in 2001 of 100 to a U.S. holder
that is a U.S. pension fund, such U.S. pension fund initially will receive 85, but will generally be entitled to
an additional payment of 4.5 consisting of the avoir ®scal of 5.29, less a 15% withholding tax on that
110

amount; in the event that the dividend distribution triggers payment by Aventis of the preÂcompte, such U.S.
pension fund may also obtain from the French tax authorities an additional payment equal to 30/85 of 70%
of the preÂcompte Aventis actually pays in cash, less a 15% withholding tax.
U.S. holders of Aventis Shares should consult their own tax advisers with respect to the requirements
and procedures for claiming treaty bene®ts and receiving avoir ®scal and preÂcompte payments in respect of
such shares, including the requirements and procedures for claiming refunds of withholding tax.
The gross amount of dividend, avoir ®scal and preÂcompte payments that a U.S. holder receives (prior
to the deduction of French withholding tax) generally will be subject to U.S. federal income taxation as
foreign source dividend income. French withholding tax at the 15% rate provided under the United States-
France Tax Treaty will be treated as a foreign income tax that, subject to generally applicable limitations
under U.S. tax law, is eligible for credit against a U.S. holder's U.S. federal income tax liability or, at the
holder's election, may be deducted in computing taxable income. A U.S. holder will not be able to claim
credits for French taxes that would have been refunded if the holder had ®led a claim for a refund. Foreign
tax credits will not be allowed for withholding taxes imposed in respect of certain short-term or hedged
positions in securities or in respect of arrangements in which a U.S. holder's expected economic pro®t is
insubstantial. U.S. holders should consult their own tax advisers concerning the implications of these rules
in the light of their particular circumstances.
Dividends paid in French Francs or euro will be included in the income of a U.S. holder in a U.S.
dollar amount calculated by reference to the exchange rate in effect on the date of receipt by the holder,
regardless of whether the payment is in fact converted into U.S. dollars. If such a dividend is converted into
U.S. dollars on the date of receipt, a U.S. holder generally should not be required to recognise foreign
currency gain or loss in respect of the dividend income. A U.S. holder may be required to recognise foreign
currency gain or loss on the receipt of a refund in respect of French withholding tax to the extent the U.S.
dollar value of the refund differs from the U.S. dollar equivalent of that amount on the date of receipt of
the underlying dividend.
Sale or other Disposition of the Aventis Shares
For U.S. federal income tax purposes, gain or loss realised by a U.S. holder on a sale or other
disposition of Aventis Shares will be capital gain or loss, and will be long-term capital gain or loss if the
Aventis Shares were held for more than one year. A U.S. holder's initial tax basis in Aventis Shares
acquired on an exchange of Bonds Exchangeable for Aventis Shares will generally be the fair market value
in U.S. dollars of the Aventis Shares received in the exchange, determined at the time of the exchange, and
a U.S. holder's holding period for Aventis Shares acquired on an exchange of Bonds Exchangeable for
Aventis Shares will generally run from the time of the exchange. A U.S. holder's ability to offset capital
losses against ordinary income is limited. Long-term capital gain recognised by an individual U.S. holder
generally is subject to taxation at a maximum rate of 20%.
U.S. Information Reporting and Backup Withholding Rules
Payments in respect of the Bonds or Shares that are made within the United States or through certain
U.S.-related ®nancial intermediaries are subject to information reporting and may be subject to backup
withholding unless a holder (i) is a corporation or other exempt recipient or (ii) provides a taxpayer
identi®cation number and certi®es that no loss of exemption from backup withholding has occurred.
Holders that are not U.S. persons generally are not subject to information reporting or backup
withholding. However, such a holder may be required to provide a certi®cation to establish its non-U.S.
status in connection with payments received within the United States or from certain U.S.-related payors.
111

SUBSCRIPTION AND SALE
Underwriting Arrangements
Subject to the terms and conditions set forth in the Subscription Agreement dated September 12, 2001
(the ``Subscription Agreement''), the Issuer has agreed to sell to the Manager and the Manager has agreed
to purchase from the Issuer, the Bonds Exchangeable for E.ON Shares and the Bonds Exchangeable for
Aventis Shares in aggregate principal amounts of e 345,000,000 and e 345,000,000, respectively.
Under the terms and conditions of the Subscription Agreement, the Manager is committed to
purchase all of the Bonds at the purchase price of 100% of their principal amount less commissions.
The Manager proposes to offer the Bonds directly to investors at the Issue Price set forth on the front
cover page of this Information Memorandum. The Manager is expected to make offers and sales of the
Bonds in the United States through its af®liates or selling agents, which must be broker-dealers registered
under the Exchange Act.
The Issuer has granted to the Manager the option, exercisable once with respect to each Issue of
Bonds prior to October 14, 2001, to resell to the Issuer up to e 45,000,000 principal amount of Bonds
Exchangeable for E.ON Shares and up to e 45,000,000 principal amount of Bonds Exchangeable for
Aventis Shares. Bonds resold to the Issuer will be cancelled. The option will enable the Manager to overallot
Bonds to effect transactions which stabilise the market price of the Bonds.
The Issuer and the Guarantor have agreed that, for a three-month period commencing on the date of
issue of the Bonds, they will not, and the Guarantor will, to the extent legally possible, cause its subsidiaries
not to, offer, sell or otherwise undertake to sell or dispose of (i) any securities in the form of bonds
convertible or exchangeable into Shares, or (ii) Shares, except in a private placement to strategic investors
who agree to be subject to the same restrictions, or (iii) other securities which are convertible or
exchangeable into or grant the right to subscribe for or receive Shares, or (iv) other similar securities, in
each case of (i) through (iv) without the prior written consent of the Manager.
The Subscription Agreement contains representations and warranties of the Issuer and the Guarantor
relating, inter alia, to the accuracy of the information contained in this Information Memorandum. In
addition, the Issuer and the Guarantor have agreed to indemnify the Manager against certain liabilities in
connection with the offering of the Bonds.
The Manager may terminate the Subscription Agreement under certain circumstances prior to the
issuance of any payment for the Bonds, including if there has been a breach of any of the representations
and warranties contained therein or if there has been such a change in national or international monetary,
®nancial, political or economic conditions or currency exchange rates or exchange controls as would, in the
view of the Manager, be likely to prejudice materially the success of the proposed offering and distribution
of the Bonds or dealings in the Bonds in the secondary market.
Selling Restrictions
Federal Republic of Germany
No securities sales prospectus (Wertpapier-Verkaufsprospekt) has been ®led with or approved by the
Federal Securities Trading Supervisory Authority (Bundesaufsichtsamt fuÈr den Wertpapierhandel) in
relation to the Bonds. Accordingly, the Bonds may be sold in Germany only in accordance with any of the
exemptions provided in the Securities Sales Prospectus Act (Wertpapier-Verkaufsprospektgesetz).
United States of America
The Manager understands that the Bonds have not been and will not be registered under the
Securities Act and that the Bonds may not be offered or sold in the United States or to, or for the account
or bene®t of, a U.S. Person, except in accordance with Regulation S under the Securities Act or pursuant to
an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act.
The Manager has represented and agreed that it will not offer or sell the Bonds (i) as part of its allocation at
any time; or (ii) otherwise until 40 days after the later of the commencement of the offering and the date of
issue of the Bonds (the ``Distribution Compliance Period'') other than outside the United States in
accordance with Rule 903 of Regulation S or through its U.S. broker-dealer af®liates in accordance with
Rule 144A under the Securities Act to persons it reasonably believes are ``quali®ed institutional buyers''
112

under Rule 144A and ``quali®ed purchasers'' under the 1940 Act. The Manager has further agreed that, at
or prior to con®rmation of a sale of Bonds (other than a sale pursuant to Rule 144A), it will have sent to
each distributor, dealer or other person receiving a selling concession, fee or other remuneration that
purchases Bonds in reliance on Regulation S during the Distribution Compliance Period a con®rmation or
other notice setting out the restrictions on offers and sales within the United States or to, or for the account
of or bene®t of, U.S. Persons.
Until 40 days after the commencement of the issue of the Bonds, an offer or sale of the Bonds within
the United States by any dealer (whether or not participating in such issue) may violate the registration
requirements of the Securities Act.
United Kingdom
The Manager has represented and agreed that: (a) it has not offered or sold and, prior to the
expiration of the period of six months from the date of issue of the Bonds, will not offer or sell any Bonds
to persons in the United Kingdom, except to persons whose ordinary activities involve them in acquiring,
holding, managing or disposing of investments (as principal or agent) for the purposes of their business or
otherwise under circumstances which have not resulted and will not result in an offer to the public in the
United Kingdom within the meaning of the Public Offers of Securities Regulations 1995; (b) it has
complied and will comply with all applicable provisions of the Financial Services Act 1986 with respect to
anything done by it in relation to the Bonds in, from or otherwise involving the United Kingdom; and (c) it
has only issued or passed on and will only issue or pass on in the United Kingdom any document received
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
Financial Services Act 1986 (Investment Advertisements) (Exemptions) Order 1996 (as amended), or is a
person to whom such document may otherwise lawfully be issued or passed on.
Japan
The Bonds have not been and will not be registered under the Securities and Exchange Law of Japan.
The Bonds may not be offered or sold, directly or indirectly, in Japan or to, or for the bene®t of, any
resident of Japan (including any Japanese corporation) or to others for reoffer or resale, directly or
indirectly, in Japan or to, or for the bene®t of, any resident of Japan, except pursuant to an exemption from
the registration requirements and from the requirements to deliver a prospectus under the Securities and
Exchange Law of Japan and otherwise in compliance with such law and other relevant laws and
regulations.
The Netherlands
In the Netherlands, the Bonds may only be offered, transferred, delivered or sold to individuals or
legal entities who or which trade or invest in securities in the conduct of their profession or trade, which
include banks, brokers, dealers, insurance companies, pension funds and other institutional investors, and
commercial enterprises which regularly, as an ancillary activity, invest in securities.
General
The Manager has acknowledged that no action has been or will be taken in any jurisdiction by the
Issuer or the Guarantor that would permit a public offering of the Bonds, or possession or distribution of
this Information Memorandum or any other offering material, in any jurisdiction where action for those
purposes is required. The Manager has agreed to comply with all applicable laws in each jurisdiction in
which it purchases, offers, sells or delivers Bonds or has in its possession or distributes this Information
Memorandum or any other offering material relating to the Bonds.
113

TRANSFER RESTRICTIONS
Because of the following restrictions, purchasers of the Bonds within the United States pursuant to
Rule 144A under the Securities Act are advised to consult legal counsel prior to making any offer, resale,
pledge or other transfer of the Bonds offered hereby.
The Bonds and the Guarantee have not been and will not be registered under the Securities Act, and
the Bonds may not be offered or sold within the United States to, or for the account or bene®t of, U.S.
persons (as de®ned in Regulation S under the Securities Act), except pursuant to an exemption from, or in a
transaction not subject to, the registration requirements of the Securities Act and applicable state securities
laws.
Each purchaser of Bonds within the United States pursuant to Rule 144A will be required to sign a
letter acknowledging that it has received a copy of this Information Memorandum and that:
. the purchaser understands and acknowledges that the Bonds have not been and will not be
registered under the Securities Act and are being offered in the United States in reliance on Rule
144A, and that the Issuer is not and will not be registered as an investment company under the
1940 Act;
. the purchaser (i) is acquiring the Bonds for its own account as principal, (ii) is a single bene®cial
owner for the purpose of Section 3(c) (1) of the 1940 Act and related rules, (iii) is a ``quali®ed
institutional buyer'' as de®ned in Rule 144A under the Securities Act and a ``quali®ed
purchaser'' as de®ned in Section 2(a) (51) and related rules of the 1940 Act, (iv) is not a brokerdealer
which owns and invests on a discretionary basis less than U.S.$ 25 million in securities of
unaf®liated issuers, (v) is not a participant-directed employee plan, such as a plan described in
subsections (a) (1) (D), (E) or (F) of Rule 144A, and (vi) was not formed for the purpose of
investing in the Issuer;
. if in the future the purchaser decides to offer, resell, pledge or otherwise transfer the Bonds, the
Bonds may be offered, resold, pledged or otherwise transferred only (i) in an ``offshore
transaction'' in accordance with Regulation S under the Securities Act to a person not known to
it to be a U.S. person or (ii) to Morgan Stanley & Co. Incorporated (or any successor) or its
af®liates. Furthermore, it will make no directed selling efforts in the United States with respect
to the Bonds. The terms ``U.S. person'', ``offshore transaction'' and ``directed selling efforts''
have the meanings set forth in Regulation S; and
. the purchaser understands and agrees that in the event it breaches any representation or
covenant in the letter, the Issuer may require it to resell the Bonds to the Issuer at the initial
Issue Price.
Each purchaser of Bonds acknowledges that the Issuer, the Guarantor, the Manager, their respective
af®liates and others will rely upon the truth and accuracy of the foregoing acknowledgements,
representations and agreements, and agrees that if any of the acknowledgements, representations or
warranties deemed to have been made by it by its purchase of Bonds are no longer accurate, it shall
promptly notify the Issuer and the Manager.
114

GENERAL INFORMATION
Authorisation
The issue of the Bonds by the Issuer has been duly authorised by resolution of the Management
Board of the Issuer on August 6, 2001 and the Supervisory Board of the Issuer on August 6, 2001. The
provision of the Guarantee by the Guarantor has been duly authorised by resolution of the Management
Board of the Guarantor on January 30, 2001 and the Supervisory Board of the Guarantor on March 29,
2001.
Listing Information
Application has been made to list the Bonds on the Luxembourg Stock Exchange.
Prior to the listing, a legal notice containing information regarding the issue of the Bonds and the
Articles of Association of the Issuer and the Guarantor will be registered and deposited with the Gref®er en
Chef du Tribunal d'Arrondissement de et aÁ Luxembourg, where copies thereof may be inspected and
obtained.
The 1999 and 2000 Consolidated Annual Reports, including the audited Management Report and
Consolidated Annual Accounts, the 1999 and 2000 unconsolidated Annual Reports, including the audited
unconsolidated Annual Accounts, and the Consolidated Interim Report for the six months ending June 30,
2001, including the unaudited Consolidated Interim Accounts, of the Guarantor and the 1999 and 2000
Annual Reports, including the audited Annual Accounts, of the Issuer are incorporated by reference into
this Information Memorandum. In addition, the 1998, 1999 and 2000 Annual Reports and the Interim
Reports for the six months ending June 30, 2001 of E.ON and Aventis are incorporated by reference into
this Information Memorandum. Copies of the above-mentioned reports and accounts and copies of all
annual and, in the case of the Guarantor, E.ON and Aventis, quarterly, ®nancial reports and accounts
published by the Issuer, the Guarantor, E.ON and Aventis in relation to subsequent years may be inspected
and obtained without charge at the of®ces of Dexia Banque Internationale aÁ Luxembourg, socieÂteÂ
anonyme, 69, route d'Esch, L-1470 Luxembourg, as long as any Bonds are listed on the Luxembourg Stock
Exchange and the rules of such stock exchange so require. The Issuer does not publish any interim ®nancial
statements. Copies of the Articles of Association of the Issuer, the Guarantor, E.ON and Aventis and
copies of the agency agreement dated September 12, 2001 (the ``Agency Agreement'') between the Issuer,
the Guarantor and Morgan Stanley Bank AG, as principal paying agent and principal exchange agent, and
Dexia Banque Internationale aÁ Luxembourg, socieÂte anonyme, as calculation agent, paying agent and
exchange agent, setting out, inter alia, the duties of the agents, may also be inspected and obtained at the
aforementioned address.
The Consolidated Annual and Consolidated Interim Reports of the Guarantor for the previous two
®nancial years are also available on its website www.ergo.de. The unconsolidated Annual Reports of the
Guarantor for the previous two ®nancial years were published in the Federal Gazette of Germany.
For so long as the Bonds are listed on the Luxembourg Stock Exchange and the rules of such stock
exchange so require, the Issuer will maintain a paying agent and exchange agent in Luxembourg. All
payments of principal and interest on the Bonds and any cash payment to exchanging Bondholders will be
made through the principal paying agent. The Exchange Agents will accept an Exchange Notice from any
Bondholder.
Use of Proceeds
The Issuer intends to make available the net proceeds of the issue, which will not be less than
approximately e 590,000,000 (after deduction of the Manager's commissions and expenses payable by the
Issuer, and assuming that the Manager exercises its put option in full), to other companies of the ERGO
Group, through the purchase of assets or otherwise, in order for such companies to ®nance further
expansion of the ERGO Group's operations in Europe. In addition, the Issuer plans to use the net proceeds
of the issue for general corporate purposes.
115

Litigation
Neither the Issuer nor the Guarantor nor any subsidiary is involved in any litigation or arbitration
proceedings that, if determined adversely to the Issuer or the Guarantor or such subsidiary, would, in the
aggregate, have a material adverse effect on the conditions (®nancial or otherwise) of the Issuer or the
Guarantor or the ERGO Group, taken as a whole, nor is the Issuer or the Guarantor aware that any such
proceedings are threatened.
Material Change
Save as disclosed herein, there has been no material adverse change in the ®nancial position of the
Issuer or the Guarantor since December 31, 2000, the date of the most recent audited ®nancial statements.
Payment Procedures
Payments of interest and principal, if any, on the Bonds shall be made by the Issuer to the Principal
Paying Agent for payment to Clearstream Frankfurt. Clearstream Frankfurt will transfer the amounts
received directly to the Bondholders if the Bonds are held in an account with Clearstream Frankfurt. All
other payments on the Bonds (e.g. the Cash Payment in lieu of Delivery of Shares pursuant to § 5(5) of the
Conditions of Issue) shall be made by the Issuer to the Principal Paying Agent and the Principal Paying
Agent shall transfer the received funds to a euro account designated by the Bondholder.
Withholding Taxes
All amounts payable in respect of the Bonds will be made by the Issuer without withholding or
deduction for or on account of any present or future taxes or duties of whatever nature imposed or levied
by way of withholding or deduction at source by or on behalf of the Federal Republic of Germany or any
political subdivision or any authority thereof or therein having power to tax, unless such withholding or
deduction is required by law. In such event, the Issuer will not be required under the Conditions of Issue to
pay any additional amounts to the Bondholders.
Clearance
The Bonds have been accepted for clearance through Clearstream Frankfurt, Clearstream
Luxembourg and Euroclear with the following security identi®cation numbers:
Bonds Exchangeable for E.ON Shares Bonds Exchangeable for Aventis Shares
ISIN Code: DE0008010489 ISIN Code: DE0008010497
Common Code: 013558558 Common Code: 013558680
WKN: 801048 WKN: 801049
116

FINANCIAL PAGES
INDEX TO FINANCIAL STATEMENTS OF THE ISSUER AND THE GUARANTOR
Balance Sheet of the Issuer for 2000 and 1999 PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP F-2
Pro®t and Loss Account of the Issuer for 2000 and 1999 PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP F-4
Consolidated Balance Sheet of the Guarantor for 2000 and 1999PPPPPPPPPPPPPPPPPPPPPPPPPPPP F-6
Consolidated Pro®t and Loss Account of the Guarantor for 2000 and 1999 PPPPPPPPPPPPPPPPPPP F-9
Consolidated Balance Sheet of the Guarantor for 1st Half 2001 PPPPPPPPPPPPPPPPPPPPPPPPPPPP F-11
Consolidated Pro®t and Loss Account of the Guarantor for 1st Half 2001PPPPPPPPPPPPPPPPPPPP F-14
F±1

Balance Sheet of the Issuer for 2000 and 1999
F±2

Balance Sheet
Assets 2000 1999
DM DM
A. Fixed assets
Investments PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 0.00 0.00
B. Current assets
I. Receivables and other assets PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 1,194.28 217.79
II. Liquid fundsPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 93,524.72 93,370.17
Total assets PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 94,719 93,587.96
Liabilities 2000 1999
DM DM
A. Shareholders' funds
I. Subscribed capital PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 97,791.5 97,791.5
II. Capital reserve PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 0 0
III. Net pro®t for the year PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP (3,302.5) (4,433.54)
B. Provisions PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 230 230
C. Liabilities PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 0.00 0.00
Total liabilitiesPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 94,719 93,587.96
F±3

Pro®t and Loss Account of the Issuer for 2000 and 1999
F±4

Pro®t and Loss Account *
2000 1999
DM DM
1. Income from investment PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 0.00 0.00
2. Other expenses PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP (2,643.25) (5,121.75)
3. Other interests PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 3,773.75 688.21
4. Pro®t on ordinary activities before taxes PPPPPPPPPPPPPPPPPPPPPPPPPPP 1,130.50 (4,433.54)
5. Taxes on income PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 0.54 0.00
6. Pro®t for the year PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 1,131.04 (4,433.54)
7. Result brought forward PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP (4,433.54) 0.00
8. Net pro®t for the yearPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP (3,302.50) (4,433.54)
* 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
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.
F±5

Consolidated Balance Sheet of the Guarantor for 2000 and 1999
F±6

Consolidated Balance Sheet
Assets 2000 1999
e million e million
A. Intangible Assets
I. Goodwill PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 830.0 88.3
II. Other intangible assets PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 408.0 81.2
1,238.0 169.5
B. Investments
I. Real estate PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 5,814.1 4,325.6
II. Shares in af®liated companies PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 234.9 112.6
III. Shares in associated companies PPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 3,522.9 2,269.3
IV. Loans guaranteed by mortgages and other loans PPPPPPPPPPPPPPP 6,400.0 5,891.1
V. Other securities
1. Held to maturity PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 1,185.5 1,421.9
2. Available for sale PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 70,229.5 69,640.3
3. Held for trading PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 47.2 25.3
71,462.2 71,087.5
VI. Other investments PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 835.2 958.4
88,269.3 84,644.5
C. Investments for the bene®t of life insurance policyholders who bear the
investment risk PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 558.7 404.3
D. Reinsurers' share in technical provisions PPPPPPPPPPPPPPPPPPPPPPPPPPPP 6,200.5 5,262.5
E. Receivables PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 2,815.7 2,100.5
F. Liquid funds PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 1,797.0 383.5
G. Deferred aquisition costs PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 3,948.7 3,980.9
H. Deferred tax assets PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 465.5 263.2
I. Other assets PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 568.0 501.7
Total assets PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 105,861.4 97,710.6
F±7

Consolidated Balance Sheet
Liabilities 2000 1999
e million e million
A. Shareholders' funds
I. Subscribed capital and capital reserve PPPPPPPPPPPPPPPPPPPPPPPP 841.4 841.4
II. Revenue reserves PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 2,915.1 2,146.6
III. Other reservesPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 1,620.2 1,675.2
IV. Net pro®t for the year PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 804.1 466.7
V. Result brought forward PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 149.4 28.6
6,330.2 5,185.5
B. Minority interests in shareholders' fundsPPPPPPPPPPPPPPPPPPPPPPPPPPPP 220.9 87.1
C. Technical provisions (gross)
I. Provision for unearned premiums PPPPPPPPPPPPPPPPPPPPPPPPPPPP 1,455.1 1,245.0
II. Acturial provision PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 58,970.1 54,589.2
III. Provision for outstanding claimsPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 4,630.6 3,898.3
IV. Provision for premium refunds and policyholders' dividendsPPPPP 18,294.8 18,414.1
V. Other technical provisions PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 57.4 54.3
83,406.1 78,200.9
D. Technical provisions for life insurance policies where the investment risk is
borne by the policyholders (gross) PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 567.0 391.0
E. Other provisions
I. Pension and similar provisions PPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 536.8 504.1
II. Provisions for tax PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 259.9 369.9
III. Miscellaneous Provisions PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 480.2 511.8
1,276.9 1,385.8
F. Liabilites PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 12,056.6 9,637.3
G. Deferred tax liabilites PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 2,002.0 2,850.0
Total liabilitiesPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 105,861.4 97,710.6
F±8

Consolidated Pro®t and Loss Account of the Guarantor for 2000 and 1999
F±9

Consolidated Pro®t and Loss Account
2000 1999
e million e million
1. Gross premiums writtenPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 12,669.0 11,928.5
2. Earned premiums (net) PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 11,097.5 10,399.0
3. Net investment incomePPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 7,234.4 5,289.9
4. Other income PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 309.9 185.1
Total income (2.-4.) PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 18,641.8 15,874.0
5. Insurance bene®ts (net) PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 14,135.3 11,944.5
6. Operating expenses (net)PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 2,247.4 2,163.0
7. Other expenses PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 1,094.3 930.7
Total expenses (5.-7.) PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 17,477.1 15,038.2
8. Pro®t before depreciation on goodwill PPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 1,164.7 835.9
9. Depreciation on goodwillPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 13.4 4.9
10. Pro®t on ordinary activities before taxes PPPPPPPPPPPPPPPPPPPPPPPPPPP 1,151.4 831.0
11. Taxes on income PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 334.9 367.8
12. Year-end results apportionable to minority interests PPPPPPPPPPPPPPPPPP (12.4) 3.5
13. Net pro®t for the yearPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 804.1 466.7
F±10

Consolidated Balance Sheet of the Guarantor for 1st Half 2001
F±11

Consolidated Balance Sheet
Assets 1st half 2001
e million
A. Intangible Assets
I. Goodwill PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 837
II. Other intangible assets PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 398
1,235
B. Investments
I. Real estate PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 5,865
II. Shares in af®liated companies PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 317
III. Shares in associated companies PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 3,823
IV. Loans guaranteed by mortgages and other loans PPPPPPPPPPPPPPPPPPPPPPPPPPP 7,190
V. Other securities
1. Held to maturity PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 1,128
2. Available for sale PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 70,162
3. Held for trading PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 39
71,329
VI. Other investments PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 1,485
90,009
C. Investments for the bene®t of life insurance policyholders who bear the investment risk P 654
D. Reinsurers' share in technical provisions PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 6,655
E. Receivables PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 3,274
F. Liquid funds PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 1,100
G. Deferred aquisition costs PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 4,024
H. Deferred tax assets PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 527
I. Other assets PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 618
Total assets PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 108,096
F±12

Consolidated Balance Sheet
Liabilities 1st half
2001
A. Shareholders' funds
e million
I. Subscribed capital and capital reserve PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 841
II. Revenue reserves PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 3,816
III. Other reserves PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 1,195
IV. Net pro®t for the year PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 145
B. Minority interests in shareholders' fundsPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 184
C. Technical provisions (gross)
I. Provision for unearned premiumsPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 1,674
II. Acturial provision PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 61,542
III. Provision for outstanding claimsPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 4,741
IV. Provision for premium refunds and policyholders' dividendsPPPPPPPPPPPPPPPPP 16,603
V. Other technical provisions PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 56
5,997
84,616
D. Technical provisions for life insurance policies where the investment risk is borne by the
policyholders (gross) PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 492
E. Other provisions
I. Pension and similar provisions PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 548
II. Provisions for tax PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 237
III. Miscellaneous Provisions PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 478
F. Liabilites PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 13,417
G. Deferred tax liabilites PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 2,127
Total liabilitiesPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 108,096
F±13
1,263

Consolidated Pro®t and Loss Account of the Guarantor for 1st Half 2001
F±14

Consolidated Pro®t and Loss Account
1st half 2001
e million
1. Gross premiums writtenPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 6,876
2. Earned premiums (net) PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 5,771
3. Net investment incomePPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 2,503
4. Other income PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 203
Total income (2.-4.) PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 8,476
5. Insurance bene®ts (net) PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 6,235
6. Operating expenses (net)PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 1,293
7. Other expensesPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 597
Total expenses (5.-7.) PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 8,125
8. Pro®t before depreciation on goodwill PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 351
9. Depreciation on goodwillPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 60
10. Pro®t on ordinary activities before taxes PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 292
11. Taxes on income PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 140
12. Year-end results apportionable to minority interests PPPPPPPPPPPPPPPPPPPPPPPPPPPPPP (7)
13. Net pro®t for the yearPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 145
F±15

ISSUER
ERGO International Aktiengesellschaft
Victoriaplatz 2
D-40198 DuÈsseldorf
GUARANTOR
ERGO Versicherungsgruppe Aktiengesellschaft
Victoriaplatz 2
D-40198 DuÈsseldorf
PRINCIPAL PAYING AGENT AND PRINCIPAL EXCHANGE AGENT
Morgan Stanley Bank AG
Junghofstraûe 13-15
D-60311 Frankfurt am Main
LUXEMBOURG PAYING AGENT, LUXEMBOURG EXCHANGE AGENT,
CALCULATION AGENT AND LISTING AGENT
Dexia Banque Internationale aÁ Luxembourg, socieÂte anonyme
69, route d'Esch
L-1470 Luxembourg
AUDITORS
BDO Deutsche Warentreuhand Aktiengesellschaft,
WirtschaftspruÈfungsgesellschaft
Elisenstraûe 3
D-80335 MuÈnchen
LEGAL ADVISERS
To the Issuer To the Manager
Hengeler Mueller
Bockenheimer Landstraûe 51
D-60325 Frankfurt am Main
imprima de bussy Ð C83053
Cleary, Gottlieb, Steen & Hamilton
Neue Mainzer Straûe 52
D-60311 Frankfurt am Main