Document:

Exhibit 4.2

 

EXECUTION
COPY

 

AMENDMENT
NO. 1

 

to

 

FISCAL
AND PAYING AGENCY AGREEMENT

 

among

 

PDVSA
FINANCE LTD.

 

and

 

JPMORGAN
CHASE BANK, as Fiscal Agent

 

and

 

J.P.
MORGAN BANK LUXEMBOURG S.A., as Paying Agent

 

Dated as
of July 12, 2004

 

 

TABLE OF CONTENTS

 

	
   

  	
  ARTICLE 1

  	
   

  
	
   

  	
  Ratification;
  definitions

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 1.01.

  	
  Ratification

  	
   

  
	
  Section 1.02.

  	
  Definitions.

  	
   

  
	
  Section 1.03.

  	
  Construction
  of References

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ARTICLE 2

  	
   

  
	
   

  	
  Amendments
  to the Fiscal Agency Agreement

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 2.01.

  	
  Amendments
  to “Specified Event” definition

  	
   

  
	
  Section 2.02.

  	
  Amendments
  to Section 7.01(i) 

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ARTICLE 3

  	
   

  
	
   

  	
  Waivers

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 3.01.

  	
  Waiver of
  Sections, 4.04, 4.12 and 4.14(c)

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ARTICLE 4

  	
   

  
	
   

  	
  Miscellaneous

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 4.01.

  	
  Incorporation
  into Fiscal Agency Agreement

  	
   

  
	
  Section 4.02.

  	
  Waiver of
  Immunity; Submission to Jurisdiction and Appointment of Agent for Service of
  Process

  	
   

  
	
  Section 4.03.

  	
  Successors
  and Assigns

  	
   

  
	
  Section 4.04.

  	
  Governing
  Law

  	
   

  
	
  Section 4.05.

  	
  Counterparts

  	
   

  
	
  Section 4.06.

  	
  Separability
  Clause

  	
   

  
	
  Section 4.07.

  	
  Effect of
  Headings

  	
   

  
	
  Section 4.08.

  	
  The
  Fiscal Agent

  	
   

  
	
  Section 4.09.

  	
  Effectiveness

  	
   

  

 

i

 

FISCAL AND PAYING AGENCY AGREEMENT

AMENDMENT NO. 1

 

This Amendment No. 1, dated as of July 12,
2004 (“Amendment No. 1”), to
the Fiscal and Paying Agency Agreement, dated as of May 14, 1998 (the “Fiscal Agency Agreement”), is entered into
by and among PDVSA FINANCE LTD., a company incorporated under the laws of the
Cayman Islands (together with its successors and assigns, the “Issuer”), JPMORGAN CHASE BANK (formerly
known as “The Chase Manhattan Bank”), as fiscal and paying agent (the “Fiscal Agent”), and J.P. MORGAN BANK
LUXEMBOURG S.A. (formerly known as “Chase Manhattan Bank Luxembourg S.A.”), as
paying agent (the “Paying Agent”).

 

W I T N E S S E T H:

 

WHEREAS, pursuant to Section 2.01 of the Fiscal
Agency Agreement, the Issuer has from time to time issued Notes (defined below)
under the terms of a Senior Indenture, dated as of May 14, 1998 (the “Senior Indenture”), between the Issuer and
JPMorgan Chase Bank, as trustee (the “Trustee”),
a First Supplemental Indenture, dated as of May 14, 1998 (the “First Supplemental Indenture”), the Second
Supplemental Indenture, dated as of April 8, 1999 (the “Second Supplemental Indenture”), and the
Third Supplemental Indenture, dated as of November 16, 2001 (the “Third Supplemental Indenture” and, together
with the Senior Indenture, the First Supplemental Indenture and the Second
Supplemental Indenture, the “Indentures”);

 

WHEREAS, the Issuer has issued and outstanding under
the Indentures, the following series of Notes: 6.250% Euro Notes Due 2006,
6.650% Notes Due 2006, 9.375% Notes Due 2007, 6.800% Notes Due 2008, 9.750%
Notes Due 2010, 8.500% Notes Due 2012, 7.400% Notes Due 2016, 9.950% Notes Due
2020 and 7.500% Notes Due 2028 (collectively, the “Notes”);

 

WHEREAS, the Issuer desires to amend certain covenants
and agreements and waive certain provisions in the Fiscal Agency Agreement;

 

WHEREAS, Section 2.03
of the Fiscal Agency Agreement provides that no amendment to or waiver of any
provision of the Fiscal Agency Agreement will be binding upon or effective with
respect to any holder of any Indebtedness of the Issuer unless such amendment
or waiver is permitted by or approved in accordance with the terms of the Debt
Agreement pursuant to which such Indebtedness is issued and outstanding;

 

WHEREAS, Section 8.02
of the Senior Indenture provides that, with the consent of Holders of not less
than a majority in aggregate principal amount of the Securities at the time
Outstanding of all series affected by such supplemental indenture, voting as
one class (the “Requisite Consents”),
the Issuer, when authorized by a resolution of its Board of Directors, and the
Trustee may, from time to time and at any time, enter into indentures to
supplement the Senior Indenture for the purposes of adding any provisions to or
changing in any manner or eliminating any of the provisions of the Senior
Indenture or of any supplemental indenture or of modifying in any manner the
rights of the Holders of the Securities of each such series, subject to

 

2

 

certain exceptions; unless otherwise defined,
capitalized terms used in this paragraph shall have the meanings ascribed to
them in the Senior Indenture;

 

WHEREAS, the Issuer commenced an offer to purchase any
and all of the outstanding Notes and a solicitation of consents from holders of
the Notes to proposed amendments to and waivers of certain provisions of the
Indentures, upon the terms and subject to the conditions set forth in an Offer
to Purchase and Consent Solicitation and a related Letter of Transmittal, each
dated as of June 28, 2004 (the “Offer to
Purchase and Consent Solicitation”);

 

WHEREAS, as of the date hereof, such Requisite
Consents have been obtained pursuant to the Offer to Purchase and Consent
Solicitation;

 

WHEREAS, all things necessary for the execution of
this Amendment No. 1 and to make this Amendment No. 1 a valid
amendment to the Fiscal Agency Agreement according to its terms and a valid and
binding agreement of the Issuer have been done; and

 

WHEREAS, this Amendment No. 1 shall be effective
as of the expiration date of the Offer to Purchase and Consent Solicitation;
provided that if the Offer to Purchase and Consent Solicitation is terminated
or withdrawn or if the Notes are not purchased pursuant to the terms of the
Offer to Purchase and Consent Solicitation, this Amendment No. 1 shall not
become operative and the terms hereof shall not constitute a valid and binding
agreement of the Issuer.

 

NOW, THEREFORE, for and in consideration of the
premises and the mutual covenants and agreements hereinafter set forth, the
parties hereto agree, for the benefit of the other party and for the equal and
ratable benefit of the respective holders from time to time of the Notes, and
holders of Indebtedness of the Issuer from time to time so designated under the
Debt Agreements pursuant to which such Indebtedness is issued, as follows:

 

ARTICLE 1

RATIFICATION; DEFINITIONS

 

Section 1.01.                             Ratification.  This
Amendment No. 1 is supplemental to, and is entered into in accordance with
Section 2.03 of the Fiscal Agency Agreement and, except as modified,
amended and supplemented by this Amendment No. 1, the provisions of the
Fiscal Agency Agreement are ratified and confirmed in all respects and shall
remain in full force and effect.

 

Section 1.02.                             Definitions.  Unless
otherwise provided, for all purposes of this Amendment No. 1, capitalized
terms used but not defined herein shall have the meanings assigned to them in
the Fiscal Agency Agreement.

 

Section 1.03.                             Construction
of References.  All references in
this Amendment No. 1 to designated Sections and other subdivisions are to
such designated Sections and subdivisions of this Amendment No. 1.  Except as otherwise indicated, all the
agreements or instruments herein defined or referred to shall mean such
agreements or instruments as the same may be supplemented or amended from time
to time or the terms thereof waived or modified to the extent permitted by, and
in accordance with, the terms thereof. 
For all purposes of this

 

3

 

Amendment No. 1,
except as otherwise expressly provided or unless the context otherwise
requires, terms defined herein include the plural as well as the singular.

 

ARTICLE 2

AMENDMENTS TO THE FISCAL AGENCY AGREEMENT

 

Section 2.01.                             Amendments
to “Specified Event” definition.  The
definition of “Specified Event” in the Fiscal Agency Agreement is hereby
amended by replacing “27 million barrels of crude oil” in sub-clause (i)(B)(x)
with “4.5 million barrels of crude oil” and replacing “80%” in sub-clause
(i)(B)(y) with “40%” so that, as amended:

 

“‘Specified Event’ means either of the following events: (i) upon
notification to the Issuer pursuant to a Specified Event Notice, (A) failure
of the Issuer to comply with any covenant referred to in Section 7.01(b)(i) and
the continuation of such failure or (B) failure of PDVSA Petróleo, S.A. to
comply in any material respect with its obligation under the Receivables
Purchase Agreement to cause the monthly average amount of Eligible Receivables
of Designated Customers Generated by PDVSA Petróleo, S.A. during any
consecutive twelve-month period that are not subject to any encumbrance other
than pursuant to the Receivables Purchase Agreement to represent at least the
lesser of (x) 4.5 million barrels of crude oil of less than 30 API gravity and
(y) 40% of PDVSA Petróleo, S.A.’s total Eligible Receivables Generated from
sales of crude oil of less than 30 API gravity, and the continuation of such
failure or (ii) an Event of Default under Section 7.01(g) shall
have occurred and be continuing.”

 

Section 2.02.                             Amendments
to Section 7.01(i).  Section 7.01(i) of
the Fiscal Agency Agreement is hereby amended by replacing “27 million barrels
of crude oil” in sub-clause (x) with “4.5 million barrels of crude oil” and
replacing “80%” in sub-clause (y) with “40%” so that, as amended, Section 7.01(i) of
the Fiscal Agency Agreement would state as follows:

 

“(i)  failure of PDVSA Petróleo, S.A. to comply in any material
respect with its obligation under the Receivables Purchase agreement to cause
the monthly average of Eligible Receivables of Designated Customers Generated
by PDVSA Petróleo, S.A. during any consecutive twelve-month period that are not
subject to any encumbrance other than pursuant to the Receivables Purchase
Agreement to represent at least  the
lesser of (x) 4.5 million barrels of crude oil of less than 30 API gravity and
(y) 40% of PDVSA Petróleo, S.A.’s total Eligible Receivables Generated from
Sales of crude oil of less than 30 API gravity, and PDVSA Petróleo, S.A.
directly or indirectly sells, in any month after such failure, crude oil of
less than 30 API gravity representing more than 30% of PDVSA Petróleo, S.A.’s
average monthly exports of such crude oil during the consecutive twelve-month
period prior to the date of determination to any third party that is not
required to make all payments in respect of any Receivable owing to PDVSA
Petróleo, S.A. to a Collection Account under circumstances in which PDVSA
Petróleo, S.A. would oblige such third party to resell such crude oil to one or
more third parties that are required to make all payments in respect of any
Receivable owing to PDVSA Petróleo, S.A. to a Collection Account.”

 

4

 

ARTICLE 3

WAIVERS

 

Section 3.01.                             Waiver
of Sections, 4.04, 4.12 and 4.14(c). 
Solely in connection with the Offer to Purchase and Consent
Solicitation, the application of Sections 4.04, 4.12, and 4.14(c) of the
Fiscal Agency Agreement is hereby waived in order to effect the above
amendments to the Fiscal Agency Agreement and in order to consummate the Offer
to Purchase and Consent Solicitation in accordance with its terms, including to
permit the repurchase by PDVSA Petróleo, S.A. from the Issuer of Purchased
Receivables (as such term is defined in the Receivables Purchase Agreement,
dated as of April 27, 1998, by and among the Issuer, PDVSA Petróleo, S.A.
and Petróleos de Venezuela, S.A., as amended) in connection with and pursuant
to the terms of the Offer to Purchase and Consent Solicitation.

 

ARTICLE 4

MISCELLANEOUS

 

Section 4.01.                             Incorporation
into Fiscal Agency Agreement.  This
Amendment No. 1 and all its provisions shall be deemed a part of the
Fiscal Agency Agreement in the manner and to the extent herein and therein
provided.

 

Section 4.02.                             Waiver
of Immunity; Submission to Jurisdiction and Appointment of Agent for Service of
Process.  The Issuer represents and
warrants to the Fiscal Agent that the execution by it of this Amendment No. 1
and the performance by it of its obligations hereunder, constitute commercial
activities of the Issuer within the meaning of the Foreign Sovereign Immunities
Act of 1976, as amended, 28 U.S.C. §§ 1602-1611 (the “FSIA”).

 

To the extent that the Issuer (including any of its
revenues, assets or properties) has or hereafter may acquire any immunity from
jurisdiction of any court, from service or notice, attachment prior to
judgment, attachment in aid of execution of judgment, or any other legal
process for enforcement of judgment in any action or proceeding in any manner
arising out of this Amendment No. 1 or the transactions contemplated
hereby, the Issuer hereby irrevocably agrees not to plead or claim, and
irrevocably waives any such immunity, and any defense based on such immunity,
in respect of its obligations arising out of this Amendment No. 1 and the
transactions contemplated hereby. 
Without limiting the foregoing, the Issuer hereby expressly and
irrevocably waives (and agrees not to plead or claim or raise as a defense) any
sovereign immunity under the FSIA from (i) any action or proceeding in any
Federal or state court in the United States arising out of this Amendment No. 1
and the transactions contemplated hereby and (ii) attachment prior to
judgment, attachment in aid of execution, or execution of a judgment arising
out of this Amendment No. 1 and the transactions contemplated hereby
against the revenues, assets or properties of the Issuer located in the United
States.

 

The Issuer agrees that any legal suit, action or
proceeding brought by the Fiscal Agent or any third-party beneficiary hereunder
arising out of or based upon this Amendment No. 1 may be brought in the
federal courts of the United States for the Southern District of New York (and
the courts of appeal thereto), and if they cannot or will not hear such an
action, then in the state courts of the County and State of New York (and
courts of appeal thereto), waives any claim that such proceeding has been
brought in an inconvenient forum, irrevocably submits to and accepts

 

5

 

the nonexclusive jurisdiction of such courts in any
such proceeding and hereby appoints CT Corporation System, with offices on the
date hereof at 111 Eighth Avenue, New York, New York 10011, and its successors,
as its registered agent (the “Registered
Agent”) upon which process may be served in any such action which
may be instituted in any such court.  The
Issuer agrees to take any and all action, including the filing of any and all
documents and instruments that may be necessary to continue such appointment in
full force and effect as aforesaid.  Service
of process upon the Registered Agent and written notice of such service to the
Issuer (mailed or delivered to the Issuer at its address set forth above) shall
be deemed effective service of process upon the Issuer, as the case may be.  Notwithstanding the foregoing, any action
based on this Amendment No. 1 or the transactions contemplated hereby may
be instituted by the Fiscal Agent or any Holder in any competent court,
including courts in the Cayman Islands and the Republic of Venezuela.

 

Section 4.03.                             Successors
and Assigns.  All covenants and
agreements of the Company and the Fiscal Agent in this Amendment No. 1
shall bind their respective successors.

 

Section 4.04.                             Governing Law.  This
Amendment No. 1 shall be deemed to be a contract under the laws of the
State of New York, and for all purposes shall be construed in accordance with
the laws of such State, except as may otherwise be required by mandatory
provisions of law.

 

Section 4.05.                             Counterparts.  This
Amendment No. 1 may be executed in any number of counterparts, each of
which shall be an original; but such counterparts shall together constitute but
one and the same instrument.

 

Section 4.06.                             Separability
Clause.  In case any provision in
this Amendment No. 1 shall be invalid, illegal or unenforceable, the
validity, legality and enforceability of the remaining provisions shall not in
any way be affected or impaired thereby.

 

Section 4.07.                             Effect
of Headings.  The Article and Section headings
herein and the Table of Contents are for convenience only and shall not affect
the construction hereof.

 

Section 4.08.                             The
Fiscal Agent. The recitals herein contained are made by the Company and not
by the Fiscal Agent, and the Fiscal Agent assumes no responsibility for the
correctness thereof.

 

Section 4.09.                             Effectiveness.  This Amendment No. 1 shall be
effective as of August 2, 2004, being the Settlement Date referred to in
the Dealer Manager Agreement, dated June 28, 2004, by and among the
Issuer, Petróleos de Venezuela, S.A., a corporation organized under the laws of
the Bolivarian Republic of Venezuela, and Deutsche Bank Securities Inc. and
J.P. Morgan Securities Inc., as dealer managers and consent solicitation
agents; provided that if the Offer to Purchase and Consent Solicitation is
terminated or withdrawn or if the Notes are not purchased pursuant to the terms
of the Offer to Purchase and Consent Solicitation, this Amendment No. 1
shall not become operative and the terms hereof shall not constitute a valid
and binding agreement of the Issuer.

 

6

 

IN
WITNESS WHEREOF, the Issuer and the Fiscal Agent and the Paying Agent have each
caused this Amendment No. 1 to be executed by its duly authorized officer
as of the date first set forth above.

 

	
   

  	
  PDVSA FINANCE LTD.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ José A. Rojas

  	
   

  
	
   

  	
   

  	
  Name:  José A. Rojas

  
	
   

  	
   

  	
  Title:    President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ José Gregório Morales

  	
   

  
	
   

  	
   

  	
  Name:  José Gregório Morales

  
	
   

  	
   

  	
  Title:    Principal Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  JPMORGAN CHASE BANK, as Fiscal Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Lucia Jaklitsch

  	
   

  
	
   

  	
   

  	
  Name:  Lucia Jaklitsch

  
	
   

  	
   

  	
  Title:    Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CHASE MANHATTAN BANK LUXEMBOURG S.A., 

  as Paying Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Lucia Jaklitsch

  	
   

  
	
   

  	
   

  	
  Name:  Lucia Jaklitsch

  
	
   

  	
   

  	
  Title:    Vice President

  

 

7Exhibit 4.4

 

EXECUTION
COPY

 

AMENDMENT
NO. 1

 

to

 

RECEIVABLES
PURCHASE AGREEMENT

 

by and
among

 

PDVSA
FINANCE LTD.,

 

PDVSA
PETRÓLEO, S.A.

 

and

 

PETRÓLEOS
DE VENEZUELA, S.A.

 

Dated as
of July 12, 2004

 

 

TABLE OF CONTENTS

 

	
   

  	
  ARTICLE 1

  	
   

  
	
   

  	
  Ratification;
  Definitions

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 1.01.

  	
  Ratification

  	
   

  
	
  Section 1.02.

  	
  Definitions

  	
   

  
	
  Section 1.03.

  	
  Construction
  of References

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ARTICLE 2

  	
   

  
	
   

  	
  Amendments
  to the Receivables Purchase Agreement

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 2.01.

  	
  Amendments
  to Schedule I

  	
   

  
	
  Section 2.02.

  	
  Amendments
  to Section 6.02

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ARTICLE 3

  	
   

  
	
   

  	
  Waivers

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 3.01.

  	
  Waiver of
  Section 6.07

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ARTICLE 4

  	
   

  
	
   

  	
  Miscellaneous

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 4.01.

  	
  Incorporation
  into Receivables Purchase Agreement

  	
   

  
	
  Section 4.02.

  	
  Successors
  and Assigns

  	
   

  
	
  Section 4.03.

  	
  Governing
  Law

  	
   

  
	
  Section 4.04.

  	
  Appointment
  of Agent for Service of Process

  	
   

  
	
  Section 4.05.

  	
  Counterparts

  	
   

  
	
  Section 4.06.

  	
  Separability
  Clause

  	
   

  
	
  Section 4.07.

  	
  Effect of
  Headings

  	
   

  
	
  Section 4.08.

  	
  The
  Fiscal Agent

  	
   

  
	
  Section 4.09.

  	
  Effectiveness

  	
   

  

 

i

 

RECEIVABLES PURCHASE AGREEMENT

AMENDMENT NO. 1

 

This Amendment No. 1, dated as of July 12,
2004 (“Amendment No. 1”), to
the Receivables Purchase Agreement, dated as of April 27, 1998 (the “Receivables Purchase Agreement”), is
entered into by and among PDVSA FINANCE LTD., a company incorporated under the
laws of the Cayman Islands (together with its successors and assigns, “PDVSA Finance”), PDVSA PETRÓLEO, S.A., a
corporation established under the laws of the Bolivarian Republic of Venezuela
and domiciled in Caracas (together with its successors and assigns, “PDVSA Petróleo”), and Petróleos de
Venezuela, S.A., a corporation established under the laws of the Bolivarian
Republic of Venezuela and domiciled in Caracas (together with its successors
and assigns, “PDVSA”).

 

W I T N E S S E T H:

 

WHEREAS, PDVSA Finance has from time to time issued
Notes (defined below) under the terms of a Senior Indenture, dated as of May 14,
1998 (the “Senior Indenture”),
between PDVSA Finance and JPMorgan Chase Bank, formerly known as The Chase
Manhattan Bank, as trustee (the “Trustee”),
a First Supplemental Indenture, dated as of May 14, 1998 (the “First Supplemental Indenture”), the Second
Supplemental Indenture, dated as of April 8, 1999 (the “Second Supplemental Indenture”), and the
Third Supplemental Indenture, dated as of November 16, 2001 (the “Third Supplemental Indenture” and, together
with the Senior Indenture, the First Supplemental Indenture and the Second
Supplemental Indenture, the “Indentures”);

 

WHEREAS, PDVSA Finance has issued and outstanding
under the Indentures, the following series of Notes: 6.250% Euro Notes Due
2006, 6.650% Notes Due 2006, 9.375% Notes Due 2007, 6.800% Notes Due 2008,
9.750% Notes Due 2010, 8.500% Notes Due 2012, 7.400% Notes Due 2016, 9.950%
Notes Due 2020 and 7.500% Notes Due 2028 (collectively, the “Notes”);

 

WHEREAS, the parties hereto desire to amend certain
covenants and agreements in the Receivables Purchase Agreement;

 

WHEREAS, Section 7.02
of the Receivables Purchase Agreement provides that no provision of the
Receivables Purchase Agreement may be amended or waived without the written
consent of each of the parties thereto and of all third party beneficiaries
referred to in Section 7.01 of the Receivables Purchase Agreement;

 

WHEREAS, Section 7.01
of the Receivables Purchase Agreement provides that the performance by the
parties thereto of their respective obligations under the Receivables Purchase
Agreement are intended to be for the benefit of the Trustee and any other agent
or other representative of holders of Indebtedness of PDVSA Finance so
designated under the Debt Agreements pursuant to which such Indebtedness is
issued and that each of the Trustee and any such agent or representative is an
intended third party beneficiary under the Receivables Purchase Agreement with
direct rights of enforcement thereunder;

 

1

 

WHEREAS, Section 8.02
of the Senior Indenture provides that, with the consent of Holders of not less
than a majority in aggregate principal amount of the Securities at the time
Outstanding of all series affected by such supplemental indenture, voting as
one class (the “Requisite Consents”),
PDVSA Finance, when authorized by a resolution of its Board of Directors, and
the Trustee may, from time to time and at any time, enter into indentures to
supplement the Senior Indenture for the purposes of adding any provisions to or
changing in any manner or eliminating any of the provisions of the Senior
Indenture or of any supplemental indenture or of modifying in any manner the
rights of the Holders of the Securities of each such series, subject to certain
exceptions; unless otherwise defined, capitalized terms used in this paragraph
shall have the meanings ascribed to them in the Senior Indenture;

 

WHEREAS, PDVSA Finance commenced an offer to purchase
any and all of the outstanding Notes and a solicitation of consents from
holders of the Notes to proposed amendments to and waivers of certain provisions
of the Indentures, upon the terms and subject to the conditions set forth in an
Offer to Purchase and Consent Solicitation and a related Letter of Transmittal,
dated as of June 28, 2004 (the “Offer to
Purchase and Consent Solicitation”);

 

WHEREAS, as of the date hereof, such Requisite
Consents have been obtained pursuant to the Offer to Purchase and Consent
Solicitation;

 

WHEREAS, all things necessary for the execution of
this Amendment No. 1 and to make this Amendment No. 1 a valid
amendment to the Receivables Purchase Agreement according to its terms and a
valid and binding agreement of PDVSA Finance have been done; and

 

WHEREAS, this Amendment No. 1 shall be effective
as of the expiration date of the Offer to Purchase and Consent Solicitation; provided
that if the Offer to Purchase and Consent Solicitation is terminated or
withdrawn or if the Notes are not purchased pursuant to the terms of the Offer
to Purchase and Consent Solicitation, this Amendment No. 1 shall not
become operative and the terms hereof shall not constitute a valid and binding
agreement of PDVSA Finance.

 

NOW, THEREFORE, for and in consideration of the
premises and the mutual covenants and agreements hereinafter set forth, the
parties hereto agree, for the benefit of the other party and for the equal and
ratable benefit of the respective holders from time to time of the Notes, and
for the benefit of holders of Indebtedness of PDVSA Finance from time to time
so designated under the Debt Agreements pursuant to which such Indebtedness is
issued, as follows:

 

ARTICLE 1

RATIFICATION; DEFINITIONS

 

Section 1.01.                             Ratification.  This
Amendment No. 1 is supplemental to, and is entered into in accordance with
Section 7.02 of the Receivables Purchase Agreement and, except as
modified, amended and supplemented by this Amendment No. 1, the provisions
of the Receivables Purchase Agreement are ratified and confirmed in all
respects and shall remain in full force and effect.

 

2

 

Section 1.02.                             Definitions  For all
purposes of this Amendment No. 1, capitalized terms used but not defined
herein shall have the meanings assigned to them in the Receivables Purchase
Agreement.

 

Section 1.03.                             Construction
of References.  All references in
this Amendment No. 1 to designated Sections and other subdivisions are to
such designated Sections and subdivisions of this Amendment No. 1.  Except as otherwise indicated, all the
agreements or instruments herein defined or referred to shall mean such
agreements or instruments as the same may be supplemented or amended from time
to time or the terms thereof waived or modified to the extent permitted by, and
in accordance with, the terms thereof. 
For all purposes of this Amendment No. 1, except as otherwise
expressly provided or unless the context otherwise requires, terms defined
herein include the plural as well as the singular.

 

ARTICLE 2

AMENDMENTS TO THE RECEIVABLES PURCHASE AGREEMENT

 

Section 2.01.                             Amendments
to Schedule I.  Schedule I
to the Receivables Purchase Agreement is hereby amended by deleting the
following entities from the list of Designated Customers set forth therein:

 

(a)                                  CITGO Petroleum Corporation;

 

(b)                                 CITGO Asphalt Refining and
Chemicals LP;

 

(c)                                  CITGO International Supply Co.;

 

(d)                                 CITGO Refining and Chemicals LP;

 

(e)                                  CITGO Venezuela Supply Co.; and

 

(f)                                    Hovensa,
L.L.C.

 

Each Designated Customer Notice in effect as of the
date hereof with respect to the Designated Customers listed above shall be
revoked, such revocation to be effective from and after the date that this
Amendment No. 1 becomes effective.

 

Section 2.02.                             Amendments
to Section 6.02  Section 6.02
of the Receivables Purchase Agreement is hereby amended by replacing “27
million barrels of crude oil” in sub-clause (x) with “4.5 million barrels of crude
oil” and replacing “80%” in sub-clause (y) with “40%” so that as amended, Section 6.02
of the Receivables Purchase Agreement would state as follows:

 

“SECTION 6.02.  Availability
of Eligible Receivables of Designated Customers.  PDVSA Petróleo, S.A. will cause the monthly
average amount of Eligible Receivables of Designated Customers Generated by
PDVSA Petróleo, S.A. during any consecutive twelve-month period and that are
not subject to any encumbrance other than pursuant to this Agreement to represent
the lesser of (x) 4.5 million barrels of Oil of less than 30 API gravity and
(y) 40% of PDVSA Petróleo, S.A.’s total Eligible Receivables Generated from
Sales of Oil of less than 30 API gravity.”

 

3

 

ARTICLE 3

WAIVERS

 

Section 3.01.                             Waiver
of Section 6.07  The parties
hereof agree to waive the application of Section 6.07 of the Receivables
Purchase Agreement solely for the purposes of permitting the repurchase by
PDVSA Petróleo, S.A. from PDVSA Finance of Purchased Receivables in connection
with and pursuant to the terms of the Offer to Purchase and Consent
Solicitation.

 

ARTICLE 4

MISCELLANEOUS

 

Section 4.01.                             Incorporation
into Receivables Purchase Agreement. 
This Amendment No. 1 and all its provisions shall be deemed a part
of the Receivables Purchase Agreement in the manner and to the extent herein
and therein provided.

 

Section 4.02.                             Successors
and Assigns.  All covenants and
agreements of the parties hereto in this Amendment No. 1 shall bind their
respective successors.

 

Section 4.03.                             Governing Law.  This
Amendment No. 1 shall be deemed to be a contract under the laws of the
State of New York, and for all purposes shall be construed in accordance with
the laws of such State, except as may otherwise be required by mandatory
provisions of law.

 

Section 4.04.                             Appointment
of Agent for Service of Process  Each
of PDVSA Finance, PDVSA Petróleo and PDVSA hereby appoints CT Corporation
System, with offices on the date hereof at 111 Eighth Avenue, New York, New York
10011, and its successors, as its registered agent (the “Registered
Agent”).  Each of PDVSA
Finance, PDVSA Petróleo and PDVSA hereby agrees to take any and all action,
including the filing of any and all documents and instruments that may be
necessary to continue such appointment in full force and effect as aforesaid.

 

Section 4.05.                             Counterparts.  This
Amendment No. 1 may be executed in any number of counterparts, each of
which shall be an original; but such counterparts shall together constitute but
one and the same instrument.

 

Section 4.06.                             Separability
Clause.  In case any provision in
this Amendment No. 1 shall be invalid, illegal or unenforceable, the
validity, legality and enforceability of the remaining provisions shall not in
any way be affected or impaired thereby.

 

Section 4.07.                             Effect
of Headings  The Article and Section headings
herein and the Table of Contents are for convenience only and shall not affect
the construction hereof.

 

Section 4.08.                             The
Fiscal Agent.  The recitals herein
contained are made by PDVSA Finance, PDVSA and PDVSA Petóleo and not by the
Fiscal Agent, and the Fiscal Agent assumes no responsibility for the
correctness thereof.

 

4

 

Section 4.09.                             Effectiveness.  This
Amendment No. 1 shall be effective as of August 2, 2004, being the
Settlement Date referred to in the Dealer Manager Agreement, dated June 28,
2004, by and among PDVSA Finance, PDVSA and Deutsche Bank Securities Inc. and
J.P. Morgan Securities Inc., as dealer managers and consent solicitation
agents; provided that if the Offer to Purchase and Consent Solicitation is
terminated or withdrawn or if the Notes are not purchased pursuant to the terms
of the Offer to Purchase and Consent Solicitation, this Amendment No. 1
shall not become operative and the terms hereof shall not constitute a valid
and binding agreement of PDVSA Finance.

 

5

 

IN WITNESS WHEREOF, the parties hereto have each
caused this Amendment No. 1 to be executed by its duly authorized officer
as of the date first set forth above.

 

	
   

  	
  PDVSA FINANCE LTD.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ José A. Rojas

  	
   

  
	
   

  	
   

  	
  Name:  José A. Rojas

  
	
   

  	
   

  	
  Title:    President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ José Gregório Morales

  	
   

  
	
   

  	
   

  	
  Name:  José Gregório Morales

  
	
   

  	
   

  	
  Title:    Principal Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  PDVSA PETRÓLEO, S.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Alí Rodriguez Araque

  	
   

  
	
   

  	
   

  	
  Name:  Alí Rodriguez Araque

  
	
   

  	
   

  	
  Title:    President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  PETRÓLEOS DE VENEZUELA, S.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Alí Rodriguez Araque

  	
   

  
	
   

  	
   

  	
  Name:  Alí Rodriguez Araque

  
	
   

  	
   

  	
  Title:    President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  JPMORGAN CHASE BANK, as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Lucia Jaklitsch

  	
   

  
	
   

  	
   

  	
  Name:  Lucia Jaklitsch

  
	
   

  	
   

  	
  Title     Vice President

  

 

6

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