JPMorgan - KASE

Description of the Notes
The following summary of certain provisions of the Indenture does not purport to be complete
and is qualified in its entirety by reference to the Indenture, including the definitions therein of
certain terms used below. For purposes of this section, references to the “Company” are to
Hurricane Hydrocarbons Ltd., excluding its subsidiaries, and references to the “Issuer” are to
Hurricane Finance B.V.
General
The Notes will be issued pursuant to an Indenture (the “Indenture”) to be dated February 12,
2003 among Hurricane Finance B.V. (the “Issuer”), the Company, the other Guarantors, J.P.
Morgan Corporate Trustee Services Limited, as trustee (the “Trustee”), and JPMorgan Chase
Bank, as principal paying agent and registrar in a transaction which is not subject to the
registration requirements of the Securities Act. See “Notice to Investors”. The terms of the Notes
include those stated in the Indenture and those deemed to be incorporated in the Indenture by
reference to the Trust Indenture Act, as the Indenture will provide that such provisions will be
deemed to be incorporated by reference therein on the same basis as if the Trust Indenture Act
were applicable thereto. The Notes are subject to all such terms, and prospective Holders of
Notes are referred to the Indenture and the Trust Indenture Act for a statement of such terms. A
copy of the proposed form of Indenture is available as set forth under “General Listing
Information”. Definitions of certain capitalized terms used in the Indenture and in the following
summary are set forth below under “Description of the Notes — Certain Definitions”.
The Notes will be senior unsecured obligations of the Issuer and will rank equally in right of
payment with all future unsecured, unsubordinated obligations of the Issuer, if any. The Issuer is
a newly formed, special-purpose financing vehicle and has no operating activities other than
acting as issuer of the Notes. The Issuer’s only material asset will be the Intercompany Loan and
the Issuer will be entirely dependent upon payments by HKM on the Intercompany Loan in order
to make payments on the Notes.
On the Issue Date, the Issuer will lend the gross proceeds of the offering to HKM pursuant to the
Intercompany Loan. The Intercompany Loan will rank equal in right of payment to all existing
and future senior unsecured obligations of HKM. The Indenture also limits the rights of the Issuer
and HKM to amend or prepay the Intercompany Loan. See “ — Certain Covenants —
Amendments to or Prepayments of Intercompany Loan”. The Intercompany Loan will mature on
the maturity date of the Notes.
The Guarantees will be senior unsecured obligations of the Guarantors and will rank senior in
right of payment to all subordinated Indebtedness of the Guarantors and will rank equally in
right of payment with all existing and future senior Indebtedness and all other liabilities of each
Guarantor that are not subordinated by their express terms to the Guarantees, including trade
debt. The Guarantees will be effectively subordinated to all existing and future secured
Indebtedness of each Guarantor to the extent of the value of the assets securing such
Indebtedness.
As of the date hereof, the Company has six active Subsidiaries, all of which constitute Restricted
Subsidiaries for the purposes of the Indenture. Under certain circumstances, the Company will be
able to designate certain Subsidiaries as Unrestricted Subsidiaries, provided that none of the
Issuer, HKM, HOP or Valsera may be so designated. Unrestricted Subsidiaries will not be subject
to many of the restrictive covenants set forth in the Indenture.
As of the Issue Date, the Company, HKM and HOP (the “Initial Guarantors”) will be the only
Guarantors. The obligations of the Issuer under the Notes will be jointly and severally guaranteed
by the Guarantors. The Indenture provides that, other than Valsera, each of the Company’s
Subsidiaries that becomes a Material Restricted Subsidiary (and any other Subsidiary that
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