Document:

Converted by EDGARwiz

EXHIBIT 10.01

THIS DEBENTURE AND THE COMMON SHARES ISSUABLE UPON CONVERSION OF THIS DEBENTURE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS.  THIS NOTE AND THE COMMON SHARES ISSUABLE UPON CONVERSION OF THIS NOTE MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THIS DEBENTURE UNDER SAID ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO WELLQUEST MEDICAL & WELLNESS CORPORATION THAT SUCH REGISTRATION IS NOT REQUIRED.

CONVERTIBLE DEBENTURE

FOR VALUE RECEIVED, WellQuest Medical & Wellness Corporation, an Oklahoma corporation (the “Borrower”), promises to pay to Stephen H. M. Swift (the “Holder”) or its registered assigns or successors in interest, the sum of Fifty Thousand Dollars ($50,000.00), together with any accrued and unpaid interest hereon, on April 15, 2011 (the “Maturity Date”) if not sooner paid.

The following terms shall apply to this Debenture:

ARTICLE I
 INTEREST & AMORTIZATION

1.1. Contract Rate.  Subject to Sections 4.11 and 6.7 hereof, interest payable on this Debenture shall accrue at a rate per annum equal to ten percent (10.0%) (the “Contract Rate”).  

1.2. Payments.  Payment of the aggregate principal amount outstanding under this Debenture (the “Principal Amount”), together with all accrued interest thereon shall be made on the Maturity Date.

ARTICLE II
 CONVERSION REPAYMENT 

2.1. Optional Conversion.  The Holder shall have the right, but not the obligation, at any time until the Maturity Date, or thereafter during an Event of Default and to convert all or any portion of the outstanding Principal Amount and/or accrued interest and fees due and payable into fully paid and nonassessable shares of the Common Stock at the Conversion Price. The shares of Common Stock to be issued upon such conversion are herein referred to as the “Conversion Shares.”  The “Conversion Price” shall mean the last sale price of the Borrower’s Common Stock on the trading day preceding the Conversion Date (as hereinafter defined).

2.2. Mechanics of Holder’s Conversion.  In the event that the Holder elects to convert this Debenture into Common Stock, the Holder shall give notice of such election by delivering an executed and completed notice of conversion (“Notice of Conversion”) to Borrower and such Notice of Conversion shall provide a breakdown in reasonable detail of the Principal Amount, accrued interest and fees that are being converted.  On each Conversion Date (as hereinafter defined) and in accordance with its Notice of Conversion, the Holder shall make the appropriate reduction to the Principal Amount, accrued interest and fees as entered in its records and shall provide written notice thereof to the Borrower on the Conversion Date.  Each date on which a Notice of Conversion is delivered or telecopied to Borrower in accordance with the provisions hereof shall be deemed a Conversion Date (the “Conversion Date”).  A form of Notice of Conversion to be employed by the Holder is annexed hereto as Exhibit A.  Pursuant to the terms of the Notice of Conversion, Borrower will issue instructions to the transfer agent accompanied by an opinion of counsel to Borrower of the Notice of Conversion and shall cause the transfer agent to transmit the certificates representing the Conversion Shares to the Holder by physical delivery or crediting the account of the Holder’s designated broker with the Depository Trust Corporation (“DTC”) through its Deposit Withdrawal Agent Commission (“DWAC”) system within three (3) business days after receipt by Borrower of the Notice of Conversion (the “Delivery Date”). In the case of the exercise of the conversion rights set forth herein the conversion privilege shall be deemed to have been exercised and the Conversion Shares issuable upon such conversion
shall be deemed to have been issued upon the date of receipt by Borrower of the Notice of Conversion. The Holder shall be treated for all purposes as the record holder of such Common Stock, unless the Holder provides Borrower written instructions to the contrary. 

2.3. Conversion Mechanics.

(a) The number of shares of Common Stock to be issued upon each conversion of this Debenture shall be determined by dividing that portion of the principal and interest and fees to be converted, if any, by the then applicable Conversion Price.  

(b) The Conversion Price and number and kind of shares or other securities to be issued upon conversion shall be subject to adjustment from time to time upon the happening of certain events while this conversion right remains outstanding, as follows:

A. Reclassification, etc.  If Borrower at any time shall, by reclassification or otherwise, change the Common Stock into the same or a different number of securities of any class or classes, this Debenture, as to the unpaid Principal Amount and accrued interest thereon, shall thereafter be deemed to evidence the right to purchase an adjusted number of such securities and kind of securities as would have been issuable as the result of such change with respect to the Common Stock (i) immediately prior to or (ii) immediately after such reclassification or other change at the sole election of the Holder.

B. Stock Splits, Combinations and Dividends.  If the shares of Common Stock are subdivided or combined into a greater or smaller number of shares of Common Stock, or if a dividend is paid on the Common Stock or any preferred stock

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issued by Borrower in shares of Common Stock, the Conversion Price shall be proportionately reduced in case of subdivision of shares or stock dividend or proportionately increased in the case of combination of shares, in each such case by the ratio which the total number of shares of Common Stock outstanding immediately after such event bears to the total number of shares of Common Stock outstanding immediately prior to such event.

2.4. Reservation of Shares. During the period the conversion right exists, Borrower will reserve from its authorized and unissued Common Stock a sufficient number of shares to provide for the issuance of Common Stock upon the full conversion of this Debenture.  Borrower represents that upon issuance, such shares will be duly and validly issued, fully paid and non-assessable.  Borrower agrees that its issuance of this Debenture shall constitute full authority to its officers, agents, and transfer agents who are charged with the duty of executing and issuing stock certificates to execute and issue the necessary certificates for shares of Common Stock upon the conversion of this Debenture.

2.5. Issuance of New Debenture.  Upon any partial conversion of this Debenture, a new Debenture containing the same date and provisions of this Debenture shall, at the request of the Holder, be issued by the Borrower to the Holder for the principal balance of this Debenture and interest which shall not have been converted or paid. Subject to the provisions of Article III, the Borrower will pay no costs, fees or any other consideration to the Holder for the production and issuance of a new Debenture.

ARTICLE III 
EVENTS OF DEFAULT

The occurrence of any of the following events set forth in Sections 3.1 through 3.9, inclusive, shall be an “Event of Default”:

3.1. Failure to Pay Principal, Interest or other Fees.  Borrower fails to pay when due any installment of principal, interest or other fees hereon and such failure shall continue for a period of ten (10) days following the date upon which any such payment was due.

3.2. Breach of Covenant.  Borrower breaches any covenant or other term or condition of this Debenture in any material respect and such breach, if subject to cure, continues for a period of fifteen (15) days after the occurrence thereof.

3.3. Breach of Representations and Warranties.  Any representation or warranty of Borrower made herein shall be false or misleading in any material respect.

3.4. Stop Trade.  An SEC stop trade order or Principal Market trading suspension of the Common Stock shall be in effect for 5 consecutive days or 5 days during a period of 10 consecutive days, excluding in all cases a suspension of all trading on a Principal Market, provided that Borrower shall not have been able to cure such trading suspension within 30 days of the notice thereof or list the Common Stock on

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another Principal Market within 60 days of such notice.  The “Principal Market” for the Common Stock shall include the FINRA OTC Bulletin Board, FINRA SmallCap Market, FINRA National Market System, American Stock Exchange, or New York Stock Exchange (whichever of the foregoing is at the time the principal trading exchange or market for the Common Stock), or any securities exchange or other securities market on which the Common Stock is then being listed or traded.

3.5. Receiver or Trustee.  Any Borrower or any of its Subsidiaries shall make an assignment for the benefit of creditors, or apply for or consent to the appointment of a receiver or trustee for it or for a substantial part of its property or business; or such a receiver or trustee shall otherwise be appointed.

3.6. Judgments.  Any money judgment, writ or similar final process shall be entered or filed against any Borrower or any of its Subsidiaries or any of their respective property or other assets for more than $250,000 in the aggregate for Borrower, and shall remain unvacated, unbonded or unstayed for a period of thirty (30) days.

3.7. Bankruptcy.  Bankruptcy, insolvency, reorganization or liquidation proceedings or other proceedings or relief under any bankruptcy law or any law for the relief of debtors shall be instituted by or against any Borrower or any of its Subsidiaries.

3.8. Default Under Other Agreements.  The occurrence of an Event of Default hereunder or any event of default (or similar term) under any other agreement evidencing indebtedness of at least $500,000.

3.9. Failure to Deliver Common Stock or Replacement Debenture.  Borrower’s failure to timely deliver Common Stock to the Holder pursuant to and in the form required by this Debenture, if such failure to timely deliver Common Stock shall not be cured within five (5) days.  If Borrower is required to issue a replacement Debenture to Holder and Borrower shall fail to deliver such replacement Debenture within seven (7) Business Days.

DEFAULT RELATED PROVISIONS

3.10. Default Interest Rate.  Following the occurrence and during the continuance of an Event of Default, interest on this Debenture shall automatically be increased by one-half percent (0.50%) per month, subject to a maximum interest rate of twelve percent (12%) per annum, and all outstanding Obligations, including unpaid interest, shall continue to accrue interest from the date of such Event of Default at such interest rate applicable to such Obligations until such Event of Default is cured or waived.

3.11. Conversion Privileges.  The conversion privileges set forth in Article II shall remain in full force and effect immediately from the date hereof and until this Debenture is paid in full.

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3.12. Cumulative Remedies.  The remedies under this Debenture shall be cumulative.

ARTICLE IV
 MISCELLANEOUS

4.1. Failure or Indulgence Not Waiver.  No failure or delay on the part of the Holder hereof in the exercise of any power, right or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude other or further exercise thereof or of any other right, power or privilege.  All rights and remedies existing hereunder are cumulative to, and not exclusive of, any rights or remedies otherwise available.

4.2. Notices.  All notices to be given under this Debenture shall be in writing and shall be given either personally, by reputable private delivery service, by regular first-class mail or certified mail return receipt requested, addressed to Holder or Borrower at the address shown below, or by facsimile to the facsimile number shown below or at any other address (or to any other facsimile number) designated in writing by one party to the other party in the manner prescribed in this Section 4.2.  All notices shall be deemed to have been given when received or when delivery is refused by the recipient.

(a)

Holder:

Steve Swift

5158 Oak Leaf Drive

Tulsa, OK 74131

         Phone:  918-361-4192

         Facsimile: 479-286-0061

(b)

Borrower:

WellQuest Medical & Wellness Corporation

3400 SE Macy Road, #18

Bentonville, Arkansas 72712

Attn:  Steve Swift, President

         Phone:  (479) 845-0880

         Facsimile: (479) 845-0887

4.3. Amendment Provision.  The term “Debenture” and all reference thereto, as used throughout this instrument, shall mean this instrument as originally executed, or if later amended or supplemented, then as so amended or supplemented, and any successor instrument as it may be amended or supplemented.

4.4. Assignability.  The provisions of this Debenture shall be binding upon and inure to the benefit of the respective successors, assigns, heirs, beneficiaries and representatives of Borrower and Holder; provided, that Borrower may not assign or transfer any of its rights under this Debenture without the prior written consent of Holder, and any prohibited assignment shall be void.  No consent by Holder to any assignment 

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shall release Borrower from its liability for any of the obligations.  Holder shall have the right to assign all or any of its rights and obligations under this Debenture and any related document or agreement, to one or more other Persons, and Borrower agrees to execute all agreements, instruments and documents requested by Holder in connection with each such assignment and participation.

4.5. Cost of Collection.  If default is made in the payment of this Debenture, each Borrower shall jointly and severally pay the Holder hereof reasonable costs of collection, including reasonable attorneys’ fees.

4.6. Governing Law; Consent to Jurisdiction; Waiver of Jury Trial.  This Debenture shall be governed by, and construed in accordance with, the internal laws of the State of Oklahoma without regard to the choice of law principles thereof.  Each of the parties hereto irrevocably submits to the exclusive jurisdiction of the courts of the State of Oklahoma and the United States District Courts situated therein for the purpose of any suit, action, proceeding or judgment relating to or arising out of this Agreement and the transactions contemplated hereby.  Service of process in connection with any such suit, action or proceeding may be served on each party hereto anywhere in the world by the same methods as are specified for the giving of notices under this Agreement.  Each of the parties hereto irrevocably consents to the jurisdiction of any such court in any such suit, action or proceeding and to the laying of venue in such court.  Each party hereto irrevocably waives any objection to the laying of venue of any such suit, action or proceeding brought in such courts and irrevocably waives any claim that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum.  EACH OF THE PARTIES HERETO WAIVES ANY RIGHT TO REQUEST A TRIAL BY JURY IN ANY LITIGATION WITH RESPECT TO THIS AGREEMENT AND REPRESENTS THAT COUNSEL HAS BEEN CONSULTED SPECIFICALLY AS TO THIS WAIVER.

4.7. Maximum Payments.  Nothing contained herein shall be deemed to establish or require the payment of a rate of interest or other charges in excess of the maximum permitted by applicable law.  In the event that the rate of interest required to be paid or other charges hereunder exceed the maximum permitted by such law, any payments in excess of such maximum shall be credited against amounts owed by Borrowers to the Holder and thus refunded to the Borrowers

4.8. Construction.  Each party acknowledges that its legal counsel participated in the preparation of this Debenture and, therefore, stipulates that the rule of construction that ambiguities are to be resolved against the drafting party shall not be applied in the interpretation of this Debenture to favor any party against the other.

[Balance of page intentionally left blank; signature page follows.]

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IN WITNESS WHEREOF, Borrower has caused this Convertible Debenture to be signed in its name effective as of this 15th day of April, 2009.

BORROWER

WELLQUEST MEDICAL & WELLNESS CORPORATION

By: ____________________
Name: Curtis Rice
Title:Vice-President

HOLDER

STEPHEN H. M. SWIFT

___________________________________

Stephen H. M. Swift

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EXHIBIT A

NOTICE OF CONVERSION

(To be executed by the Holder in order to convert all or part of the Debentureinto Common Stock)

[Name and Address of Holder]

The undersigned hereby converts $_________ of the principal due on April 15, 2011 under the Convertible Debenture issued by WellQuest Medical & Wellness Corporation (“Borrower”) dated as of April 15, 2009 by delivery of shares of Common Stock of Borrower on and subject to the conditions set forth in Article II of such Debenture.

1.

Date of Conversion 

_______________________

2.

Conversion Price

_______________________

3.

# of Shares To Be Delivered:

_______________________

Please issue the shares of Common Stock into which the Convertible Debenture are being converted in the following name and to the following address:

Issue to:

_________________________________

_________________________________

_________________________________

_________________________________

Authorization:

_________________________________

By: ______________________________

Title: _____________________________

Dated:

_________________________________exv4w2

Exhibit 4.2

STATOILHYDRO ASA

STATOILHYDRO PETROLEUM AS

Officers’ Certificate

Pursuant to Sections 102 and 301 of the Indenture

Each of the undersigned officers of StatoilHydro ASA, a public limited company incorporated under
the laws of the Kingdom of Norway (the “Company”) and of StatoilHydro Petroleum AS, a limited
company incorporated under the laws of the Kingdom of Norway (“StatoilHydro Petroleum”), hereby
certifies:

	1.	 	The terms of the series of securities established under the Indenture, dated as of April 15,
2009 (the “Indenture”), among the Company, StatoilHydro Petroleum and Deutsche Bank Trust
Company Americas, as Trustee, in the aggregate principal amount of US$500,000,000, to be
entitled the 3.875% Notes due 2014 (the “2014 Notes”) and in the aggregate principal amount of
US$1,500,000,000, to be entitled the 5.25% Notes due 2019 (the “2019 Notes”, and, together
with the 2014 Notes, “the Notes”), are set forth in Annex A-1 and Annex A-2 respectively.
	 
	2.	 	That the following statements are made pursuant to the provisions of Section 102 of the
Indenture:

	 	(1)	 	Each of the undersigned has read the provisions of the Indenture setting
forth conditions precedent to the authentication of the Notes, and the definitions in
the Indenture relating thereto;
	 
	 	(2)	 	Each of the undersigned has examined resolutions of the Board of Directors of
the Company and the resolutions of the Board of Directors of StatoilHydro Petroleum
together with the terms set forth in Annex A-1 and Annex A-2;
	 
	 	(3)	 	In the opinion of each of the undersigned such examination is sufficient to
enable us to express an informed opinion as to whether or not the conditions precedent
referred to above have been complied with; and
	 
	 	(4)	 	Each of the undersigned is of the opinion that the conditions precedent
referred to above have been complied with.

 

 

IN WITNESS WHEREOF, each of the undersigned has signed his name.

	 	 	 	 	 	 	 
	Dated: April 16, 2009	 	StatoilHydro ASA	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Eldar Saetre	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Eldar Saetre	 	 
	 

	 	 	 	Title: Executive Vice President
&
Chief Financial Officer	 	 
	 
	 	 	 	 	 	 
	 	 	StatoilHydro Petroleum AS	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Eldar Saetre	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Eldar Saetre	 	 
	 

	 	 	 	Title: Chairman & Chief Financial
Officer	 	 

 

 

Annex A-1

	 	 	 
	U.S.$500,000,000 3.875% Notes due 2014:

	 	 
	 
	 	 
	Issuer:

	 	StatoilHydro ASA (“StatoilHydro”)
	 
	 	 
	Guarantor:

	 	StatoilHydro Petroleum AS (“StatoilHydro Petroleum”)
	 
	 	 
	Title:

	 	3.875% Notes due 2014 (the “2014 Notes”) 
	 
	 	 
	Total initial principal amount being
issued:

	 	$500,000,000 
	 
	 	 
	Denomination:

	 	The Notes will be issued in denominations of $1,000 and integral
multiples of $1,000.
	 
	 	 
	Issuance Date:

	 	April 23, 2009
	 
	 	 
	Guarantee:

	 	Payment of the principal of and interest on the Notes is fully
guaranteed by StatoilHydro Petroleum pursuant to Section 1401 of the
Indenture.
	 
	 	 
	Maturity Date:

	 	April 15, 2014
	 
	 	 
	Day Count:

	 	30/360 
	 
	 	 
	Day Count Convention:

	 	Following unadjusted.
	 
	 	 
	Interest Rate:

	 	3.875% per annum. 
	 
	 	 
	Date interest starts accruing:

	 	April 23, 2009
	 
	 	 
	Interest Payment Dates:

	 	April 15 and October 15 of each year, subject to the Day Count
Convention
	 
	 	 
	First Interest Payment Date:

	 	October 15, 2009
	 
	 	 
	Business Day:

	 	Any week day on which banking or trust institutions in neither New
York nor Oslo are authorized generally or obligated by law,
regulation or executive order to close
	 
	 	 
	Regular record dates for
interest:

	 	The 15th calendar day preceding each Interest Payment Date, whether
or not such day is a Business Day.
	 
	 	 
	Redemption:

	 	The 2014 Notes are redeemable as described below under “Optional Tax
Redemption” and “Optional Make-Whole Redemption”. The provision for
optional tax redemption will apply in respect of changes in tax
treatments occurring after April 16, 2009.
	 
	 	 

 

 

	 	 	 
	Optional Tax Redemption:

	 	StatoilHydro and StatoilHydro Petroleum have the option to redeem the
2014 Notes, in whole, in the two situations described below at a
redemption price equal to the principal amount of the 2014 Notes plus
accrued interest and any additional amounts due on the date fixed for
redemption upon providing between 30 and 60 days’ notice.
	 
	 	 
	 

	 	The first situation is where, as a result of changes in or amendment
to, or changes in the official application or interpretation of, any
laws or regulations or rulings, or changes in the official
application or interpretation of, or any execution of or amendment
to, any treaties on or after April 16, 2009 in the jurisdiction where
StatoilHydro or StatoilHydro Petroleum are incorporated or, if
different, tax resident, StatoilHydro or StatoilHydro Petroleum, as
applicable, would be required to pay additional amounts as described
below under “Payment of Additional Amounts”. If StatoilHydro or
StatoilHydro Petroleum are succeeded by another entity, the
applicable jurisdiction will be the jurisdiction in which such
successor entity is organized or incorporated or, if different, tax
resident, and the applicable date will be the date the entity became
a successor. StatoilHydro or StatoilHydro Petroleum do not have the
option to redeem in this case if either StatoilHydro or StatoilHydro
Petroleum, as applicable, could have avoided the payment of
additional amounts or the deduction or withholding by using
reasonable measures available to StatoilHydro or StatoilHydro
Petroleum, as applicable.
	 
	 	 
	 

	 	The second situation is where, following a merger, consolidation,
sale or lease of StatoilHydro’s or StatoilHydro Petroleum’s assets to
a person that assumes StatoilHydro’s or StatoilHydro Petroleum’s
obligations under the 2014 Notes, that person is required to pay
additional amounts as described below under “Payment of Additional
Amounts”. StatoilHydro, StatoilHydro Petroleum or the other person
would have the option to redeem the 2014 Notes in this situation even
if the additional amounts became payable immediately after such
assumption. Neither StatoilHydro, StatoilHydro Petroleum nor that
person has any obligation under the indenture to seek to avoid the
obligation to pay additional amounts in this situation.
StatoilHydro, StatoilHydro Petroleum or the other person, as
applicable, shall deliver to the trustee an officer’s certificate to
the effect that the circumstances required for redemption exist.
However, StatoilHydro, StatoilHydro Petroleum or the other person, as
applicable, would have the option to redeem the 2014 Notes in the
circumstances described in this paragraph only if a change in,
execution of or amendment to any law or treaty occurs after the date
of such assumption.
	 
	 	 
	Optional Make-Whole Redemption:

	 	StatoilHydro has the right to redeem the 2014 Notes, in whole or in
part, at any time and from time to time at a redemption price equal
to

 

 

	 	 	 
	 

	 	the greater of (i) 100% of the principal amount of the 2014 Notes
to be redeemed and (ii) the sum of the present values of the
remaining scheduled payments of principal and interest on the 2014
Notes to be redeemed (not including any portion of payments of
interest accrued to the redemption date) discounted to the redemption
date on a semi-annual basis (assuming a 360-day year consisting of
twelve 30-day months) at the treasury rate plus 35 basis points, plus
accrued and unpaid interest to the date of redemption. For purposes
of determining the optional make-whole redemption price, the
following definitions are applicable. “Treasury rate” means, with
respect to any redemption date, the rate per year equal to the
semi-annual equivalent yield to maturity or interpolated (on a day
count basis) of the comparable treasury issue, assuming a price for
the comparable treasury issue (expressed as a percentage of its
principal amount) equal to the comparable treasury price for such
redemption date. “Comparable treasury issue” means the U.S. Treasury
security or securities selected by the quotation agent as having an
actual or interpolated maturity comparable to the remaining term of
the 2014 Notes to be redeemed that would be utilized, at the time of
selection and in accordance with customary financial practice, in
pricing new issues of corporate debt securities of comparable
maturity to the remaining term of such notes. “Comparable treasury
price” means, with respect to any redemption date, the average of the
reference treasury dealer quotations for such redemption date.
“Quotation agent” means one of the reference treasury dealers
appointed by StatoilHydro. “Reference treasury dealer” means Banc of
America Securities LLC, Citigroup Global Markets Inc. or J.P. Morgan
Securities Inc. or their respective affiliates which are primary U.S.
government securities dealers, and their respective successors, and
two other primary U.S. government securities dealers selected by
StatoilHydro, provided, however, that if any of the foregoing shall
cease to be a primary U.S. government securities dealer in the United
States (a “primary treasury dealer”), StatoilHydro shall substitute
therefor another primary treasury dealer. “Reference treasury dealer
quotations” means with respect to each reference treasury dealer and
any redemption date, the average, as determined by the quotation
agent, of the bid and asked prices for the comparable treasury issue
(expressed in each case as a percentage of its principal amount)
quoted in writing to the quotation agent by such reference treasury
dealer at 3:30 p.m. New York time on the third business day preceding
such redemption date.
	 
	 	 
	Payment of Additional Amounts:

	 	None payable under current law. The government or any political
subdivision or taxing authority of such government of any
jurisdiction where StatoilHydro or StatoilHydro Petroleum are
incorporated (currently the Kingdom of Norway) or, if different, tax
resident may require StatoilHydro or StatoilHydro Petroleum to
withhold amounts from payments on the principal or interest on the
2014 Notes or payment under the guarantees for taxes, assessments

 

 

	 	 	 
	 

	 	or
any other governmental charges. If any such jurisdiction requires a
withholding of this type, StatoilHydro or StatoilHydro Petroleum may
be required to pay the noteholder additional amounts so that the net
amount the noteholder receives will be the amount specified in the
2014 Notes. However, in order for the noteholder to be entitled to
receive the additional amounts, the noteholder must not be resident
in the jurisdiction that requires the withholding. StatoilHydro and
StatoilHydro Petroleum will not have to pay additional amounts under
any or any combination of the following circumstances:

	 	•	 	The tax, assessment or governmental charge is imposed only
because the noteholder, or a fiduciary, settlor, beneficiary or
member or shareholder of, or possessor of a power over, the
noteholder, if the noteholder is an estate, trust, partnership or
corporation, was or is connected to the taxing jurisdiction, other
than by merely holding the 2014 Notes or receiving principal or
interest in respect thereof. These connections include where the
noteholder or related party:

	 	•	 	is or has been a citizen or resident of the jurisdiction;
	 
	 	•	 	is or has been present or engaged in trade or business in the
jurisdiction; or
	 
	 	•	 	has or had a permanent establishment in the jurisdiction.

	 	•	 	The tax, assessment or governmental charge is imposed due to
the presentation of the 2014 Notes for payment on a date more than 30
days after the 2014 Notes became due or after the payment was
provided for, whichever occurs later.
	 
	 	•	 	The tax, assessment or governmental charge is on account of
an estate, inheritance, gift, sale, transfer, personal property or
similar tax, assessment or other governmental charge.
	 
	 	•	 	The tax, assessment or governmental charge is for a tax or
governmental charge that is payable in a manner that does not involve
withholding.
	 
	 	•	 	The tax, assessment or governmental charge is imposed or
withheld because the noteholder or beneficial owner failed to comply
with any of StatoilHydro’s following requests:

	 	•	 	to provide information about the nationality, residence or
identity of the noteholder or beneficial owner, or
	 
	 	•	 	to make a declaration or other similar claim or satisfy any

 

 

	 	 	 	information or reporting requirements

	 	 	 	in each case that the statutes, treaties, regulations or
administrative practices of the taxing jurisdiction require as a
precondition to exemption from all or part of such tax, assessment or
governmental charge.

	 	•	 	The tax, assessment or governmental charge is imposed
pursuant to European Union Directive 2003/48/EC or any other
Directive implementing the conclusions of the ECOFIN Council meeting
of November 26 and 27, 2000 on the taxation of savings or any law or
agreement implementing or complying with, or introduced to conform
to, such directive.
	 
	 	•	 	The tax, assessment or governmental charge is imposed on a
noteholder or beneficial owner who could have avoided such
withholding or deduction by presenting its 2014 Notes to another
paying agent.
	 
	 	•	 	The noteholder is a fiduciary, partnership or other entity
that is not the sole beneficial owner of the payment of the principal
of, or any interest on, the 2014 Notes, and the laws of the
jurisdiction (or any political subdivision or taxing authority
thereof or therein) require the payment to be included in the income
of a beneficiary or settlor for tax purposes with respect to such
fiduciary, a member of such partnership or a beneficial owner who
would not have been entitled to such additional amounts had such
beneficiary, settlor, member or beneficial owner been the noteholder
of the 2014 notes. The foregoing provisions will also apply to any
present or future taxes, assessments or governmental charges imposed
by any jurisdiction in which StatoilHydro’s successor or StatoilHydro
Petroleum’s successor is organized or incorporated.

	 	 	 
	 

	 	This provision will also apply to any present or future taxes,
assessments or governmental charges imposed by any jurisdiction in
which StatoilHydro’s or StatoilHydro Petroleum’s successor is
organized or incorporated or, if different, tax resident.
	 
	 	 
	Sinking fund:

	 	There is no sinking fund.
	 
	 	 
	Further issuances:

	 	StatoilHydro may, at its sole option, at any time and without the
consent of the then existing noteholders, “reopen” the 2014 Notes and
issue an unlimited principal amount of additional 2014 Notes in one
or more transactions subsequent to the date of the prospectus
supplement dated April 16, 2009, with terms (other than the issuance
date, issue price and, possibly, the first interest payment date and
the date interest starts accruing) identical to the 2014 Notes issued

 

 

	 	 	 
	 

	 	pursuant to the prospectus supplement. These additional 2014 Notes
will be deemed part of the same series as the 2014 Notes issued
pursuant to the prospectus supplement and will provide the holders of
these additional 2014 Notes the right to vote together with holders
of the 2014 Notes issued pursuant to the prospectus supplement.
StatoilHydro may reopen a series of notes only if the additional
notes issued will be fungible with the original notes of the series
for United States federal income tax purposes.
	 
	 	 
	CUSIP Number:

	 	85771S AB2 
	 
	 	 
	ISIN:

	 	US85771SAB25

 

 

Annex A-2

U.S.$1,500,000,000 5.25% Notes due 2019:

	 	 	 
	Issuer:

	 	StatoilHydro ASA (“StatoilHydro”)
	 
	 	 
	Guarantor:

	 	StatoilHydro Petroleum AS (“StatoilHydro Petroleum”)
	 
	 	 
	Title:

	 	5.25% Notes due 2019 (the “2019 Notes”)
	 
	 	 
	Total initial principal amount being
issued:

	 	$1,500,000,000
	 
	 	 
	Denomination:

	 	The Notes will be issued in denominations of $1,000 and integral
multiples of $1,000.
	 
	 	 
	Issuance Date:

	 	April 23, 2009
	 
	 	 
	Guarantee:

	 	Payment of the principal of and interest on the Notes is fully
guaranteed by StatoilHydro Petroleum pursuant to Section 1401 of the
Indenture.
	 
	 	 
	Maturity Date:

	 	April 15, 2019
	 
	 	 
	Day Count:

	 	30/360
	 
	 	 
	Day Count Convention:

	 	Following unadjusted.
	 
	 	 
	Interest Rate:

	 	5.25% per annum.
	 
	 	 
	Date interest starts accruing:

	 	April 23, 2009
	 
	 	 
	Interest Payment Dates:

	 	April 15 and October 15 of each year, subject to the Day Count
Convention
	 
	 	 
	First Interest Payment Date:

	 	October 15, 2009
	 
	 	 
	Business Day:

	 	Any week day on which banking or trust institutions in neither New
York nor Oslo are authorized generally or obligated by law,
regulation or executive order to close
	 
	 	 
	Regular record dates for
interest:

	 	The 15th calendar day preceding each Interest Payment Date, whether
or not such day is a Business Day.
	 
	 	 
	Redemption:

	 	The 2019 Notes are redeemable as described below under “Optional Tax
Redemption” and “Optional Make-Whole Redemption”. The provision for
optional tax redemption will apply in respect of changes in tax
treatments occurring after April 16, 2009.

 

 

	 	 	 
	Optional Tax Redemption:

	 	StatoilHydro and StatoilHydro Petroleum have the option to redeem the
2019 Notes, in whole, in the two situations described below at a
redemption price equal to the principal amount of the 2019 Notes plus
accrued interest and any additional amounts due on the date fixed for
redemption upon providing between 30 and 60 days’ notice.
	 
	 	 
	 

	 	The first situation is where, as a result of changes in or amendment
to, or changes in the official application or interpretation of, any
laws or regulations or rulings, or changes in the official
application or interpretation of, or any execution of or amendment
to, any treaties on or after April 16, 2009 in the jurisdiction where
StatoilHydro or StatoilHydro Petroleum are incorporated or, if
different, tax resident, StatoilHydro or StatoilHydro Petroleum, as
applicable, would be required to pay additional amounts as described
below under “Payment of Additional Amounts”. If StatoilHydro or
StatoilHydro Petroleum are succeeded by another entity, the
applicable jurisdiction will be the jurisdiction in which such
successor entity is organized or incorporated or, if different, tax
resident, and the applicable date will be the date the entity became
a successor. StatoilHydro or StatoilHydro Petroleum do not have the
option to redeem in this case if either StatoilHydro or StatoilHydro
Petroleum, as applicable, could have avoided the payment of
additional amounts or the deduction or withholding by using
reasonable measures available to StatoilHydro or StatoilHydro
Petroleum, as applicable.
	 
	 	 
	 

	 	The second situation is where, following a merger, consolidation,
sale or lease of StatoilHydro’s or StatoilHydro Petroleum’s assets to
a person that assumes StatoilHydro’s or StatoilHydro Petroleum’s
obligations under the 2019 Notes, that person is required to pay
additional amounts as described below under “Payment of Additional
Amounts”. StatoilHydro, StatoilHydro Petroleum or the other person
would have the option to redeem the 2019 Notes in this situation even
if the additional amounts became payable immediately after such
assumption. Neither StatoilHydro, StatoilHydro Petroleum nor that
person has any obligation under the indenture to seek to avoid the
obligation to pay additional amounts in this situation.
StatoilHydro, StatoilHydro Petroleum or the other person, as
applicable, shall deliver to the trustee an officer’s certificate to
the effect that the circumstances required for redemption exist.
However, StatoilHydro, StatoilHydro Petroleum or the other person, as
applicable, would have the option to redeem the 2019 Notes in the
circumstances described in this paragraph only if a change in,
execution of or amendment to any law or treaty occurs after the date
of such assumption.
	 
	 	 
	Optional Make-Whole Redemption:

	 	StatoilHydro has the right to redeem the 2019 Notes, in whole or in
part, at any time and from time to time at a redemption price equal
to

 

 

	 	 	 
	 

	 	the greater of (i) 100% of the principal amount of the 2019 Notes
to be redeemed and (ii) the sum of the present values of the
remaining scheduled payments of principal and interest on the 2019
Notes to be redeemed (not including any portion of payments of
interest accrued to the redemption date) discounted to the redemption
date on a semi-annual basis (assuming a 360-day year consisting of
twelve 30-day months) at the treasury rate plus 35 basis points, plus
accrued and unpaid interest to the date of redemption. For purposes
of determining the optional make-whole redemption price, the
following definitions are applicable. “Treasury rate” means, with
respect to any redemption date, the rate per year equal to the
semi-annual equivalent yield to maturity or interpolated (on a day
count basis) of the comparable treasury issue, assuming a price for
the comparable treasury issue (expressed as a percentage of its
principal amount) equal to the comparable treasury price for such
redemption date. “Comparable treasury issue” means the U.S. Treasury
security or securities selected by the quotation agent as having an
actual or interpolated maturity comparable to the remaining term of
the 2019 Notes to be redeemed that would be utilized, at the time of
selection and in accordance with customary financial practice, in
pricing new issues of corporate debt securities of comparable
maturity to the remaining term of such notes. “Comparable treasury
price” means, with respect to any redemption date, the average of the
reference treasury dealer quotations for such redemption date.
“Quotation agent” means one of the reference treasury dealers
appointed by StatoilHydro. “Reference treasury dealer” means Banc of
America Securities LLC, Citigroup Global Markets Inc. or J.P. Morgan
Securities Inc. or their respective affiliates which are primary U.S.
government securities dealers, and their respective successors, and
two other primary U.S. government securities dealers selected by
StatoilHydro, provided, however, that if any of the foregoing shall
cease to be a primary U.S. government securities dealer in the United
States (a “primary treasury dealer”), StatoilHydro shall substitute
therefor another primary treasury dealer. “Reference treasury dealer
quotations” means with respect to each reference treasury dealer and
any redemption date, the average, as determined by the quotation
agent, of the bid and asked prices for the comparable treasury issue
(expressed in each case as a percentage of its principal amount)
quoted in writing to the quotation agent by such reference treasury
dealer at 3:30 p.m. New York time on the third business day preceding
such redemption date.
	 
	 	 
	Payment of Additional Amounts:

	 	None payable under current law. The government or any political
subdivision or taxing authority of such government of any
jurisdiction where StatoilHydro or StatoilHydro Petroleum are
incorporated (currently the Kingdom of Norway) or, if different, tax
resident may require StatoilHydro or StatoilHydro Petroleum to
withhold amounts from payments on the principal or interest on the
2019 Notes or payment under the guarantees for taxes, assessments

 

 

	 	 	 
	 

	 	or
any other governmental charges. If any such jurisdiction requires a
withholding of this type, StatoilHydro or StatoilHydro Petroleum may
be required to pay the noteholder additional amounts so that the net
amount the noteholder receives will be the amount specified in the
2019 Notes. However, in order for the noteholder to be entitled to
receive the additional amounts, the noteholder must not be resident
in the jurisdiction that requires the withholding. StatoilHydro and
StatoilHydro Petroleum will not have to pay additional amounts under
any or any combination of the following circumstances:

	 	•	 	The tax, assessment or governmental charge is imposed only
because the noteholder, or a fiduciary, settlor, beneficiary or
member or shareholder of, or possessor of a power over, the
noteholder, if the noteholder is an estate, trust, partnership or
corporation, was or is connected to the taxing jurisdiction, other
than by merely holding the 2019 Notes or receiving principal or
interest in respect thereof. These connections include where the
noteholder or related party:

	 	•	 	is or has been a citizen or resident of the jurisdiction;
	 
	 	•	 	is or has been present or engaged in trade or business in the
jurisdiction; or
	 
	 	•	 	has or had a permanent establishment in the jurisdiction.

	 	•	 	The tax, assessment or governmental charge is imposed due to
the presentation of the 2019 Notes for payment on a date more than 30
days after the 2019 Notes became due or after the payment was
provided for, whichever occurs later.
	 
	 	•	 	The tax, assessment or governmental charge is on account of
an estate, inheritance, gift, sale, transfer, personal property or
similar tax, assessment or other governmental charge.
	 
	 	•	 	The tax, assessment or governmental charge is for a tax or
governmental charge that is payable in a manner that does not involve
withholding.
	 
	 	•	 	The tax, assessment or governmental charge is imposed or
withheld because the noteholder or beneficial owner failed to comply
with any of StatoilHydro’s following requests:

	 	•	 	to provide information about the nationality, residence or
identity of the noteholder or beneficial owner, or
	 
	 	•	 	to make a declaration or other similar claim or satisfy any

 

 

	 	 	 	information or reporting requirements

	 	 	 	in each case that the statutes, treaties, regulations or
administrative practices of the taxing jurisdiction require as a
precondition to exemption from all or part of such tax, assessment or
governmental charge.
	 
	 	•	 	The tax, assessment or governmental charge is imposed
pursuant to European Union Directive 2003/48/EC or any other
Directive implementing the conclusions of the ECOFIN Council meeting
of November 26 and 27, 2000 on the taxation of savings or any law or
agreement implementing or complying with, or introduced to conform
to, such directive.
	 
	 	•	 	The tax, assessment or governmental charge is imposed on a
noteholder or beneficial owner who could have avoided such
withholding or deduction by presenting its 2019 Notes to another
paying agent.
	 
	 	•	 	The noteholder is a fiduciary, partnership or other entity
that is not the sole beneficial owner of the payment of the principal
of, or any interest on, the 2019 Notes, and the laws of the
jurisdiction (or any political subdivision or taxing authority
thereof or therein) require the payment to be included in the income
of a beneficiary or settlor for tax purposes with respect to such
fiduciary, a member of such partnership or a beneficial owner who
would not have been entitled to such additional amounts had such
beneficiary, settlor, member or beneficial owner been the noteholder
of the 2019 notes. The foregoing provisions will also apply to any
present or future taxes, assessments or governmental charges imposed
by any jurisdiction in which StatoilHydro’s successor or StatoilHydro
Petroleum’s successor is organized or incorporated.

	 	 	 
	 

	 	This provision will also apply to any present or future taxes,
assessments or governmental charges imposed by any jurisdiction in
which StatoilHydro’s or StatoilHydro Petroleum’s successor is
organized or incorporated or, if different, tax resident.
	 
	 	 
	Sinking fund:

	 	There is no sinking fund.
	 
	 	 
	Further issuances:

	 	StatoilHydro may, at its sole option, at any time and without the
consent of the then existing noteholders, “reopen” the 2019 Notes and
issue an unlimited principal amount of additional 2019 Notes in one
or more transactions subsequent to the date of the prospectus
supplement dated April 16, 2009, with terms (other than the issuance
date, issue price and, possibly, the first interest payment date and
the date interest starts accruing) identical to the 2019 Notes issued

 

 

	 	 	 
	 

	 	pursuant to the prospectus supplement. These additional 2019 Notes
will be deemed part of the same series as the 2019 Notes issued
pursuant to the prospectus supplement and will provide the holders of
these additional 2019 Notes the right to vote together with holders
of the 2019 Notes issued pursuant to the prospectus supplement.
StatoilHydro may reopen a series of notes only if the additional
notes issued will be fungible with the original notes of the series
for United States federal income tax purposes.
	 
	CUSIP Number:

	 	85771S AA4
	 
	 	 
	ISIN:

	 	US85771SAA42

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