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EXHIBIT 4.9    
  

Petróleos Mexicanos  

6.50% Guaranteed Notes due February 1, 2005  

jointly and severally guaranteed by  

Pemex Exploración y Producción

Pemex-Refinación

and

Pemex-Gas y Petroquímica Básica  

 
 

Exchange and Registration Rights Agreement    
  

August 29,
2001 

Lehman
Brothers Inc.

Goldman, Sachs & Co.

c/o Lehman Brothers Inc.

3 World Financial Center

New York, New York 10285 

Ladies
and Gentlemen: 

        Petróleos
Mexicanos (the "Issuer"), a decentralized public entity of the Federal Government of the United Mexican States ("Mexico"), proposes to issue and sell to the
Purchasers (as defined herein) upon the terms set forth in the Terms Agreement (as defined herein) its 6.50% Notes due February 1, 2005, which are jointly and severally guaranteed by Pemex
Exploración y Producción, Pemex-Refinación and Pemex-Gas y Petroquímica Básica (collectively, the "Guarantors").
As an inducement to the Purchasers to enter into the Terms Agreement and in satisfaction of a condition to the obligations of the Purchasers thereunder, the Issuer agrees with the Purchasers for the
benefit of holders (as defined herein) from time to time of the Registrable Securities (as defined herein) as follows: 

        1.    Certain Definitions.    For purposes of this Exchange and Registration Rights Agreement, the following terms
shall have the following respective meanings: 

        "Additional Interest" shall have the meaning assigned thereto in Section 2(c) hereof. 

        "Advice" shall have the meaning assigned thereto in Section 3(h) hereof. 

        "Base Interest" shall mean the interest that would otherwise accrue on the Securities under the terms thereof and the Fiscal Agency
Agreement, without giving effect to the provisions of this Agreement. 

        The
term "broker-dealer" shall mean any broker or dealer registered with the Commission under the Exchange Act. 

        "Closing Date" shall mean the date on which the Registrable Securities are initially issued. 

        "Commission" shall mean the United States Securities and Exchange Commission, or any other federal agency at the time administering the
Exchange Act or the Securities Act, whichever is the relevant statute for the particular purpose. 

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        "Distribution Agreement" shall mean the Distribution Agreement, dated June 16, 1993, as amended by Amendment No. 1 thereto
dated as of March 8, 1994, Amendment No. 2 thereto dated as of February 26, 1998, Amendment No. 3 thereto dated as of July 9, 1998 and Amendment No. 4 thereto
dated as of October 5, 1999, among the Issuer and the Agents named therein. 

        "Effective Time," in the case of (i) an Exchange Registration, shall mean the time and date as of which the Commission declares the
Exchange Registration Statement effective or as of which the Exchange Registration Statement otherwise becomes effective and (ii) a Shelf Registration, shall mean the time and date as of which
the Commission declares the Shelf Registration Statement effective or as of which the Shelf Registration Statement otherwise becomes effective. 

        "Electing Holder" shall mean any holder of Registrable Securities that has returned a completed and signed Notice and Questionnaire to the
Issuer in accordance with Section 3(d)(ii) hereof. 

        "Event Date" shall have the meaning assigned thereto in Section 2(c) hereof. 

        "Exchange Act" shall mean the Securities Exchange Act of 1934, or any successor thereto, as the same shall be amended from time to time. 

        "Exchange Offer" shall have the meaning assigned thereto in Section 2(a) hereof. 

        "Exchange Registration" shall have the meaning assigned thereto in Section 3(c) hereof. 

        "Exchange Registration Statement" shall have the meaning assigned thereto in Section 2(a) hereof. 

        "Exchange Securities" shall have the meaning assigned thereto in Section 2(a) hereof. 

        "Fiscal Agency Agreement" shall mean the Fiscal Agency Agreement, dated as of June 16, 1993, as amended and restated as of
February 26, 1998, between the Issuer and Bankers Trust Company, as Fiscal Agent, as the same shall be amended from time to time. 

        "Guarantors" has the meaning set forth in the preamble hereto. 

        "Guaranty Agreement" means the Guaranty Agreement, dated July 26, 1996, among the Issuer and the Guarantors. 

        The
term "holder" shall mean each of the Purchasers and other persons who acquire Registrable Securities from time to time (including any
successors or assigns), in each case for so long as such person owns any Registrable Securities. 

        "Indenture" shall mean the Indenture relating to the Exchange Securities to be entered into between the Issuer and Bankers Trust Company,
as Trustee, as amended from time to time. 

        "Notice and Questionnaire" means a Notice of Registration Statement and Selling Securityholder Questionnaire substantially in the form of
Exhibit A hereto. 

        The
term "person" shall mean a corporation, association, partnership, organization, business, individual, government or political
subdivision thereof or governmental agency. 

        "Purchasers" shall mean the persons named as Managers in Schedule A to the Terms Agreement. 

        "Registrable Securities" shall mean the Securities; provided, however, that a Security shall cease to be a Registrable Security when
(i) in the circumstances contemplated by Section 2(a) hereof, the Security has been exchanged for an Exchange Security in an Exchange Offer as contemplated in Section 2(a) hereof
(provided that any Exchange Security that, pursuant to the last two sentences of Section 2(a), is included in a prospectus for use in connection with resales by broker-dealers shall be deemed
to be a Registrable Security with respect to Sections 5, 6 and 9 until the earlier of the resale of such Registrable Security or the expiration of the 180-day period referred to in
Section 2(a)); (ii) in the circumstances contemplated by Section 2(b) hereof, a Shelf Registration Statement registering such 

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Security under the Securities Act has been declared or becomes effective and such Security has been sold or otherwise transferred by the holder thereof pursuant to and in a manner contemplated by
such effective Shelf Registration Statement; (iii) such Security is sold pursuant to Rule 144 under circumstances in which any legend borne by such Security relating to restrictions on
transferability thereof, under the Securities Act or otherwise, is removed by the Issuer or pursuant to the Fiscal Agency Agreement; (iv) such Security is eligible to be sold pursuant to
paragraph (k) of Rule 144; or (v) such Security shall cease to be outstanding. 

        "Registration Default" shall have the meaning assigned thereto in Section 2(c) hereof. 

        "Registration Expenses" shall have the meaning assigned thereto in Section 4 hereof. 

        "Resale Period" shall have the meaning assigned thereto in Section 2(a) hereof. 

        "Restricted Holder" shall mean (i) a holder that is an affiliate of the Issuer within the meaning of Rule 405, (ii) a
holder who acquires Exchange Securities outside the ordinary course of such holder's business or (iii) a holder who is engaged in, or intends to engage in, or has arrangements or understandings
with any person to participate in the Exchange Offer for the purpose of distributing Exchange Securities. 

        "Rule 144," "Rule 405" and "Rule 415" shall mean, in each case, such
rule promulgated under the Securities Act (or any successor provision), as the same shall be amended from time to time. 

        "Securities" shall mean, collectively, the 6.50% Notes due February 1, 2005 of the Issuer to be issued and sold to the Purchasers,
and securities issued in exchange therefor or in lieu thereof pursuant to the Indenture. "Securities" shall also include any further issuance of 6.50% Notes due February 1, 2005 pursuant to the
Fiscal Agency Agreement that is so designated by written notice by the Issuer to the Purchasers. Each Security is entitled to the benefit of the guaranties provided for in the Guaranty Agreement (the
"Guaranties") and, unless the context otherwise requires, any reference herein to a "Security," an "Exchange Security" or a "Registrable Security" shall include a reference to the related Guaranty. 

        "Securities Act" shall mean the Securities Act of 1933, or any successor thereto, as the same shall be amended from time to time. 

        "Shelf Registration" shall have the meaning assigned thereto in Section 2(b) hereof. 

        "Shelf Registration Statement" shall have the meaning assigned thereto in Section 2(b) hereof. 

        "Terms Agreement" shall mean the Terms Agreement, dated as of August 15, 2001, among the Purchasers and the Issuer relating to the
Securities. 

        "Trustee" means the trustee with respect to the Exchange Securities under the Indenture. 

        "Trust Indenture Act" shall mean the Trust Indenture Act of 1939, or any successor thereto, and the rules, regulations and forms
promulgated thereunder, all as the same shall be amended from time to time. 

                Unless
the context otherwise requires, any reference herein to a "Section" or "clause" refers to a Section or clause, as the case may be, of this Exchange and Registration
Rights Agreement, and the words "herein," "hereof" and "hereunder" and other words of similar import refer to this Exchange and Registration Rights Agreement as a whole and not to any particular
Section or other subdivision. 

        2.    Registration Under the Securities Act.

        (a)  Except
as set forth in Section 2(b) below, the Issuer agrees to use its best efforts to file or cause to be filed under the Securities Act, as soon as
practicable, but no later than 368 days 

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after the Closing Date, a registration statement relating to an offer to exchange (such registration statement, the "Exchange Registration Statement", and such offer, the "Exchange Offer") any and
all of the Securities for a like aggregate principal amount of debt securities issued by the Issuer, which debt securities are substantially similar to the Securities, except that they
(i) shall be registered pursuant to an effective registration statement under the Securities Act, (ii) shall be issued pursuant to the Indenture and not the Fiscal Agency Agreement and
(iii) shall not contain provisions for the additional interest contemplated in Section 2(c) below (such new debt securities hereinafter called "Exchange Securities"). The Issuer shall
enter into the Indenture on or before the Effective Time of the Exchange
Offer. The Issuer agrees to use its best efforts to cause the Exchange Registration Statement to become effective by the Commission under the Securities Act as soon as practicable, but no later than
368 days after the Closing Date. The Exchange Offer will be registered under the Securities Act on the appropriate form and will comply with all applicable rules and regulations under the
Exchange Act. The Issuer further agrees to use its best efforts to commence and complete the Exchange Offer promptly, but no later than 398 days after the Closing Date, hold the Exchange Offer
open for at least 30 days and issue and deliver Exchange Securities in exchange for all Registrable Securities that have been properly tendered and not withdrawn on or prior to the expiration
of the Exchange Offer. Each holder of Registrable Securities who wishes to exchange such Registrable Securities for Exchange Securities in, and in accordance with the terms of, the Exchange Offer will
be required to make certain customary representations in connection therewith, including representations that such holder is not a Restricted Holder. Upon the effectiveness of the Exchange Offer
Registration Statement, the Issuer shall promptly commence the Exchange Offer, it being the objective of such Exchange Offer that each holder (other than a Restricted Holder) electing to participate
in the Exchange Offer will receive Exchange Securities that are, upon receipt, transferable by each such holder without restriction under the Securities Act and the Exchange Act and without material
restrictions under the blue sky or securities laws of a substantial majority of the states of the United States of America. The Exchange Offer shall be deemed to have been completed upon the earlier
to occur of (i) the Issuer having exchanged the Exchange Securities for all outstanding Registrable Securities pursuant to the Exchange Offer and (ii) the Issuer having exchanged,
pursuant to the Exchange Offer, Exchange Securities for all Registrable Securities that have been properly tendered and not withdrawn before the expiration of the Exchange Offer, which shall be on a
date that is at least 30 days following the commencement of the Exchange Offer. The Issuer agrees (x) to include in the Exchange Registration Statement a prospectus for use in any
resales by any holder of Exchange Securities that is a broker-dealer and (y) to keep such Exchange Registration Statement effective for a period (the "Resale Period") beginning when Exchange
Securities are first issued in the Exchange Offer and ending upon the earlier of the expiration of the 180th day after the Exchange Offer has been completed or such time as such broker-dealers no
longer own any Registrable Securities. With respect to such Exchange Registration Statement, such holders shall have the benefit of the rights of indemnification and contribution set forth in Sections
6(a), (c), (d) and (e) hereof. 

        (b)  If
(i) on or prior to the time the Exchange Offer is completed existing Commission interpretations are changed such that the debt securities or the related
guaranty received by holders other than Restricted Holders in the Exchange Offer for Registrable Securities are not or would not be, upon receipt, transferable by each such holder without restriction
under the Securities Act, (ii) the Exchange Offer has not been completed within 398 days following the Closing Date or (iii) any holder notifies the Issuer prior to 20 days
after the consummation of the Exchange Offer that (A) based on the advice of counsel, due to a change in law or Commission policy it may not resell the Exchange Securities acquired by it in the
Exchange Offer to the public without delivering a prospectus and the prospectus contained in the Exchange Registration Statement is not appropriate or available for such resales by such holder or
(B) it is a Purchaser 

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and owns Registrable Securities acquired directly from the Issuer or an affiliate of the Issuer or (C) on or prior to the consummation of the Exchange Offer existing laws, regulations and/or
applicable Commission interpretations have been changed such that the holders of at least a majority in aggregate principal amount of the Registrable Securities would not be able to resell the
Exchange Securities acquired by them in, and in accordance with the terms of, the Exchange Offer to the public without restriction under the Securities Act and without restriction under applicable
blue sky or state securities laws, the Issuer shall, in lieu of (or, in the case of clause (iii), in addition to) conducting the Exchange Offer contemplated by Section 2(a), use its best
efforts to file or cause to be filed under the Securities
Act as soon as practicable, but no later than the later of the 368th day after the Closing Date and 30 days after the time such obligation to file arises (but in no event prior to
August 1 or after September 30 of any calendar year), a "shelf" registration statement providing for the registration of, and the sale on a continuous or delayed basis by the holders of,
all of the Registrable Securities, pursuant to Rule 415 or any similar rule that may be adopted by the Commission (such filing, the "Shelf Registration" and such registration statement, the
"Shelf Registration Statement"). 

        The
Issuer agrees to use its best efforts (x) to cause the Shelf Registration Statement to become or be declared effective on or prior to 60 days after such filing was
required to be made hereunder (but in no event prior to August 1 or after September 30 of any calendar year) and to keep such Shelf Registration Statement continuously effective for a
period of two years (or, if shorter, the period after which Rule 144(k) under the Securities Act generally becomes available to non-affiliates of the Issuers) from the effective
date of the Shelf Registration Statement (subject to extension pursuant to Section 2(d) and Section 3(h)) (provided that if such Shelf
Registration Statement has been filed solely at the request of a Purchaser pursuant to clause (iii)(B) of Section 2(b) above, the Issuer shall only be required to use its best efforts to
keep such Shelf Registration Statement continuously effective for a period of one year from the date of issuance of the Securities (subject to extension pursuant to Section 2(d) and
Section 3(h)) or until all of the Securities covered by the Shelf Registration Statement have been sold pursuant to the Shelf Registration Statement or cease to be outstanding;  provided, however,
that no holder shall be entitled to be named as a selling securityholder in the Shelf Registration Statement or to use the prospectus
forming a part thereof for resales of Registrable Securities unless such holder is an Electing Holder. The Issuer further agrees to supplement or make amendments to the Shelf Registration Statement,
as and when required by the rules, regulations or instructions applicable to the registration form used by the Issuer for such Shelf Registration Statement or by the Securities Act or rules and
regulations thereunder for shelf registration, and the Issuer agrees to furnish to each Electing Holder copies of any such supplement or amendment promptly after its being used or promptly following
its filing with the Commission. 

        (c)  If
(i) the Exchange Registration Statement (or a Shelf Registration Statement in lieu thereof) is not filed on or prior to the 368th day after the Closing Date,
(ii) the Exchange Registration Statement (or a Shelf Registration Statement in lieu thereof) is not declared effective by the Commission on or prior to the 368th day after the Closing Date,
(iii) the Exchange Offer is not consummated on or prior to the 30th day after the date specified for the effectiveness of the Exchange Registration Statement, (iv) a Shelf Registration
Statement required to be filed is not filed on or before the date specified above for such filing, (v) a Shelf Registration Statement otherwise required to be filed is not declared effective on
or before the date specified above for effectiveness thereof or (vi) a Shelf Registration Statement is declared effective but thereafter, subject to certain exceptions, ceases to be effective
or usable (whether due to a stop order or otherwise) in connection with resales of Registrable Securities during the period specified in 2(b) (each such event referred to in clauses (i) through
(vi) above, a "Registration Default"), then, in the case of a Registration Default referred to in clause (i), (ii) or (iii) above, the interest rate on all Registrable
Securities or, in the case of a Registration Default referred to in clause (iv), (v) or 

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(vi) above, the interest rate on the Registrable Securities to which such Registration Default relates, will increase by 0.25% per annum with respect to each 90-day period that
passes until all such Registration Defaults have been cured, up to a maximum amount of 1.00% per annum ("Additional Interest"). Upon the cure of any of such Registration Default, the interest rate
borne by the Registrable Securities shall be reduced thereafter by the full amount of any such increase or increases that resulted from such Registration Default. 

        The
Issuer shall notify the Fiscal Agent within three business days after each and every date on which an event occurs in respect of which Additional Interest is required to be paid (an
"Event Date"). Additional Interest shall be paid by depositing with the Fiscal Agent, in trust, for the benefit of the holders, on or before the applicable semiannual interest payment date,
immediately available funds in sums sufficient to pay the Additional Interest then due. The Additional Interest due shall be payable on each interest payment date to the record holder entitled to
receive the interest payment to be paid on such date as set forth in the Fiscal Agency Agreement. Each obligation to pay Additional Interest shall be deemed to accrue from and including the day
following the applicable Event Date. 

        (d)  Any
Exchange Offer Registration Statement pursuant to Section 2(a) and any Shelf Registration Statement pursuant to Section 2(b) will not be deemed to have
become effective unless it has been declared effective by the Commission; provided that, after it has been declared effective, the offering of
Securities pursuant to a Shelf Registration Statement is subject to any stop order, injunction or other order or requirement of the Commission or any other governmental agency or court, such
Registration Statement will be deemed not to have been effective for such Securities during the period it was so subject, until the offering of such Securities pursuant to such Registration Statement
may legally resume. 

        In
no event shall the Issuer be deemed to be in breach of its obligations under the second paragraph of Section 2(b) nor shall a Registration Default described in
Section 2(c)(vi) be deemed to have occurred (i) as a result of any action required by applicable law which renders the Issuer unable to comply with the Commission disclosure
requirements or (ii) if compliance with its obligations under this Exchange and Registration Rights Agreement to maintain the effectiveness of, supplement or amend any Registration Statement,
upon advice of U.S. counsel to the Issuer, would require additional disclosure of material non-public information by the Issuer or its subsidiaries as to which, and so long as, the Issuer
or its subsidiaries has a bona fide business purpose in preserving its confidentiality; provided that
the maximum period of time during which the Issuer shall be entitled to postpone the effectiveness, supplementing or amending of any Registration Statement pursuant to clause (ii) of this
paragraph shall be 45 calendar days; provided, further, that (x) upon the exercise of its right under clause (ii) of this paragraph to
postpone the effectiveness, supplementing or amending of any such Registration Statement, the Issuer shall give the holders prompt written notice of such exercise and an approximation of the
anticipated length of such postponement and (y) after the exercise of its right under clause (ii) of this paragraph to postpone the effectiveness, supplementing or amending of any such
Registration Statement, the Issuer shall not, within six months of the expiration of any such postponement, exercise again its right of postponement under clause (ii) of this paragraph. The
holders hereby acknowledge that any notice given by the Issuer pursuant to this paragraph may constitute material non-public information and that the United States securities laws prohibit
any person who has material non-public information about a company from purchasing or selling securities of the company or from communicating such information to any other person under
circumstances in which it is reasonably foreseeable that such person is likely to purchase or sell such securities. 

        (e)  The
Issuer shall register the Exchange Securities with the Sección Especial del Registro Nacional de
Valores (Special Section of the National Registry of Securities), of Mexico. 

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        (f)    The
Issuer shall register this Agreement, the Indenture and the forms of Exchange Securities with the Secretaría de
Hacienda y Crédito Público (the Ministry of Finance) of Mexico. 

        (g)  The
Issuer shall take all actions necessary or advisable to cause to be registered the Guaranties under the registration statement contemplated in Section 2(a) or
2(b) hereof, as applicable. 

        (h)  Any
reference herein to a registration statement as of any time shall be deemed to include any document incorporated, or deemed to be incorporated, therein by reference
as of such time and any reference herein to any post-effective amendment to a registration statement as of any time shall be deemed to include any document incorporated, or deemed to be
incorporated, therein by reference as of such time. 

        3.    Registration Procedures. 

        If
the Issuer files a registration statement pursuant to Section 2(a) or Section 2(b), the following provisions shall apply: 

        (a)  At
or before the Effective Time of the Exchange Offer or the Shelf Registration, as the case may be, the Issuer shall enter into the Indenture and shall cause the
Indenture to be qualified under the Trust Indenture Act of 1939. 

        (b)  In
the event that such qualification would require the appointment of a new trustee under the Indenture, the Issuer shall appoint a new trustee thereunder pursuant to
the applicable provisions of the Indenture. 

        (c)  In
connection with the Issuer's obligations with respect to the registration of Exchange Securities as contemplated by Section 2(a) (the "Exchange Registration"),
if applicable, the Issuer shall, as soon as practicable (or as otherwise specified): 

        (i)    prepare
and file with the Commission, as soon as practicable but no later than 368 days after the Closing Date, an Exchange Registration Statement on any form
which may be utilized by the Issuer and which shall permit the Exchange Offer and use its best efforts to cause such Exchange Registration Statement to become effective as soon as practicable
thereafter, but no later than 368 days after the Closing Date; 

        (ii)    as
soon as practicable prepare and file with the Commission such amendments and supplements to such Exchange Registration Statement and the prospectus
included therein as may be necessary to effect and maintain the effectiveness of such Exchange Registration Statement for the periods and purposes contemplated in Section 2(a) hereof and as may
be required by the applicable rules and regulations of the Commission and the instructions applicable to the form of such Exchange Registration Statement, and promptly provide each broker-dealer
holding Exchange Securities that has identified itself to the Issuer as such with such number of copies of the prospectus included therein (as then amended or supplemented), in conformity in all
material respects with the requirements of the Securities Act and the Trust Indenture Act and the rules and regulations of the Commission thereunder, as such broker-dealer reasonably may request prior
to the expiration of the Resale Period, for use in connection with resales of Exchange Securities; 

        (iii)    promptly
notify each broker-dealer that has identified itself to the Issuer as such and requested copies of the prospectus included in such registration
statement, and confirm such advice in writing, (A) when such Exchange Registration Statement or the prospectus included therein or any prospectus amendment or supplement or
post-effective amendment has been filed, and, with respect to such Exchange Registration Statement or any post-effective amendment, when the same has become effective,
(B) of any request by the Commission or by the blue sky or securities commissioner or regulator of any state for 

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amendments or supplements to such Exchange Registration Statement or prospectus or for additional information after such Exchange Registration Statement has become effective, (C) of the
issuance by the Commission of any stop order suspending the effectiveness of such Exchange Registration Statement or the initiation or threatening of any proceedings for that purpose, (D) if at
any time the representations and warranties of the Issuer contemplated by Section 5 cease to be true and correct in all material respects, (E) of the receipt by the Issuer of any
notification with respect to the suspension of the qualification of the Exchange Securities for sale in any jurisdiction or the initiation or threatening of any proceeding for such purpose, or
(F) at any time during the Resale Period when a prospectus is required to be delivered under the Securities Act, that such Exchange Registration Statement, prospectus, prospectus amendment or
supplement or post-effective amendment does not conform in all material respects to the applicable requirements of the Securities Act and the Trust Indenture Act and the rules and
regulations of the Commission thereunder or contains an untrue statement of a material fact or omits to state any material fact required to be stated therein or necessary to make the statements
therein not misleading in light of the circumstances then existing; and each such broker-dealer agrees to suspend use of such prospectus, prospectus amendment or supplement until the Issuer has
amended or supplemented the prospectus to correct such misstatement or omission; 

        (iv)    in
the event that the Issuer would be required, pursuant to Section 3(c)(iii)(F) above, to notify any broker-dealers holding Exchange Securities
that have identified itself to the Issuer as such, without delay prepare and furnish to each such holder a reasonable number of copies of a prospectus supplemented or amended so that, as thereafter
delivered to purchasers of such Exchange Securities during the Resale Period, such prospectus shall conform in all material respects to the applicable requirements of the Securities Act and the Trust
Indenture Act and the rules and regulations of the Commission thereunder and shall not contain an untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances then existing; 

        (v)    use
its best efforts to obtain the withdrawal of any order suspending the effectiveness of such Exchange Registration Statement or any
post-effective amendment thereto at the earliest practicable date; 

        (vi)    use
its best efforts to (A) register or qualify the Exchange Securities under the securities laws or blue sky laws of such jurisdictions as are
contemplated by Section 2(a) no later than the commencement of the Exchange Offer, (B) keep such registrations or qualifications in effect and comply with such laws so as to permit the
continuance of offers, sales and dealings therein in such jurisdictions until the expiration of the Resale Period and (C) take any and all other actions as may be reasonably necessary or
advisable to enable each broker-dealer holding Exchange Securities that has identified itself to the Issuer as such to consummate the disposition thereof in such jurisdictions;  provided, however, that
neither the Issuer nor the Guarantors shall be required for any such purpose to (1) qualify as a foreign corporation in
any jurisdiction wherein it would not otherwise be required to qualify but for the requirements of this Section 3(c)(vi), (2) consent to general service of process in any such
jurisdiction or (3) make any changes to its certificate of incorporation or by-laws or any agreement between it and its stockholders; 

        (vii)     provide
a CUSIP number, ISIN, and common code for all Exchange Securities, not later than the applicable Effective Time; 

        (viii)    comply
with all applicable rules and regulations of the Commission, and make generally available to its securityholders as soon as practicable but no
later than 24 months 

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after the effective date of such Exchange Registration Statement, an earnings statement of the Issuer and its subsidiaries complying with Section 11(a) of the Securities Act (including, at the
option of the Issuer, Rule 158 thereunder) (it being understood that the Issuer may satisfy its obligations under this clause through the filing of its annual report on Form 20
-F for the first full fiscal year after such effective date). 

        (d)  In
connection with the Issuer's obligations with respect to the Shelf Registration, if applicable, the Issuer shall, as soon as practicable (or as otherwise specified): 

        (i)    prepare
and file with the Commission, as soon as practicable but in any case within the time periods specified in Section 2(b), a Shelf Registration Statement on
any form which may be utilized by the Issuer and which shall register all of the Registrable Securities for resale by the Electing Holders in accordance with such method or methods of disposition as
may be specified by such Electing Holders
and use its best efforts to cause such Shelf Registration Statement to become effective as soon as practicable but in any case within the time periods specified in Section 2(b); 

        (ii)    not
less than 15 calendar days prior to the Effective Time of the Shelf Registration Statement, mail the Notice and Questionnaire to the holders of
Registrable Securities; no holder shall be entitled to be named as a selling securityholder in the Shelf Registration Statement, and no holder shall be entitled to use the prospectus forming a part
thereof for resales of Registrable Securities at any time, unless such holder has returned a completed and signed Notice and Questionnaire to the Issuer by the deadline for response set forth therein;  provided, however,
 that holders of Registrable Securities shall have at least 15 calendar days from the date on which the Notice and Questionnaire is
first mailed to such holders to return a completed and signed Notice and Questionnaire to the Issuer; 

        (iii)      as
soon as practicable prepare and file with the Commission such amendments and supplements to such Shelf Registration Statement and the prospectus
included therein as may be necessary to effect and maintain the effectiveness of such Shelf Registration Statement for the period specified in Section 2(b) hereof and as may be required by the
applicable rules and regulations of the Commission and the instructions applicable to the form of such Shelf Registration Statement, and furnish to the Electing Holders copies of any such supplement
or amendment simultaneously with or promptly after its being used or filed with the Commission; 

        (iv)    before
filing any Shelf Registration Statement or prospectus and each amendment or supplement thereto, provide (A) the Electing Holders,
(B) the managing underwriters (which term, for purposes of this Exchange and Registration Rights Agreement, shall include a person deemed to be an underwriter within the meaning of
Section 2(a)(11) of the Securities Act), if any, thereof, (C) counsel for any such managing underwriter or agent and (D) not more than one counsel for all the Electing Holders the
opportunity to participate in the preparation of such Shelf Registration Statement, each prospectus included therein or filed with the Commission and each amendment or supplement thereto; 

        (v)    for
a reasonable period prior to the filing of such Shelf Registration Statement, and throughout the period specified in Section 2(b), make
available at reasonable times at the Issuer's principal place of business or such other reasonable place for inspection by the persons referred to in Section 3(d)(iv) above who shall
certify to the Issuer that they have a current intention to sell the Registrable Securities pursuant to the Shelf Registration such financial and other information and books and records of the Issuer,
and cause the officers, employees, counsel and independent certified public accountants of the Issuer to respond to such inquiries, as shall be reasonably necessary, in the reasonable judgment of the
respective counsel referred to in such Section, to conduct a reasonable investigation within the meaning of Section 11 of the Securities Act; provided, however, that each such party shall be
required 

9

 

to maintain in confidence and not to disclose to any other person any information or records reasonably designated by the Issuer as being confidential, until such time as (A) such information
becomes a matter of public record (whether by virtue of its inclusion in such registration statement or otherwise), or (B) such person shall be required so to disclose such information pursuant
to a subpoena or order of any court or other governmental agency or body having jurisdiction over the matter (subject
to the requirements of such order, and only after such person shall have given the Issuer prompt prior written notice of such requirement) unless such release is against Mexican law, or (C) in
an opinion addressed to the Issuer of counsel experienced in such matters and approved by the Issuer, such information is required to be set forth in such Shelf Registration Statement or the
prospectus included therein or in an amendment to such Shelf Registration Statement or an amendment or supplement to such prospectus in order that such Shelf Registration Statement, prospectus,
amendment or supplement, as the case may be, complies with applicable requirements of the federal securities laws and the rules and regulations of the Commission and does not contain an untrue
statement of a material fact or omit to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances then
existing; 

        (vi)    promptly
notify each of the Electing Holders, any sales or placement agent therefor and any underwriter thereof (which notification may be made through
any managing underwriter that is a representative of such underwriter for such purpose) and confirm such advice in writing, (A) when such Shelf Registration Statement or the prospectus included
therein or any prospectus amendment or supplement or post-effective amendment has been filed, and, with respect to such Shelf Registration Statement or any post-effective
amendment, when the same has become effective, (B) of any request by the Commission and by the blue sky or securities commissioner or regulator of any state for amendments or supplements to
such Shelf Registration Statement or prospectus or for additional information after such Shelf Registration has become effective, (C) of the issuance by the Commission of any stop order
suspending the effectiveness of such Shelf Registration Statement or the initiation or threatening of any proceedings for that purpose, (D) if at any time the representations and warranties of
the Issuer contemplated by Section 3(d)(xiv) or Section 5 or contained in any underwriting agreement or similar agreement relating to the offering cease to be true and correct in
all material respects, (E) of the receipt by the Issuer of any notification with respect to the suspension of the qualification of the Registrable Securities for sale in any jurisdiction or the
initiation or threatening of any proceeding for such purpose, or (F) if at any time when a prospectus is required to be delivered under the Securities Act, that such Shelf Registration
Statement, prospectus, prospectus amendment or supplement or post-effective amendment does not conform in all material respects to the applicable requirements of the Securities Act and the
Trust Indenture Act and the rules and regulations of the Commission thereunder or contains an untrue statement of a material fact or omits to state any material fact required to be stated therein or
necessary to make the statements therein not misleading in light of the circumstances then existing; 

        (vii)   use
its best efforts to obtain the withdrawal of any order suspending the effectiveness of such registration statement or any post-effective
amendment thereto at the earliest practicable date; 

        (viii)    if
requested by any managing underwriter or underwriters, or any Electing Holder, promptly incorporate in a prospectus supplement or
post-effective amendment such information as is required by the applicable rules and regulations of the Commission and as such managing underwriter or underwriters, or such Electing Holder
specifies should be included therein relating to the terms of the sale of such Registrable Securities, including 

10

 

information with respect to the principal amount of Registrable Securities being sold by such Electing Holder or to any underwriters, the name and description of such Electing Holder or underwriter,
the offering price of such Registrable Securities and any discount, commission or other compensation
payable in respect thereof, the purchase price being paid therefor by such underwriters and with respect to any other terms of the offering of the Registrable Securities to be sold by such Electing
Holder or to such underwriters; and make all required filings of such prospectus supplement or post-effective amendment promptly after notification of the matters to be incorporated in
such prospectus supplement or post-effective amendment; 

        (ix)  furnish
to each Electing Holder, therefor, each underwriter, if any, thereof and the respective counsel referred to in Section 3(d)(v) an executed copy
(or, in the case of an Electing Holder, a conformed copy) of such Shelf Registration Statement, each such amendment and supplement thereto (in each case including all exhibits thereto (in the case of
an Electing Holder of Registrable Securities, upon request) and documents incorporated by reference therein) and such number of copies of such Shelf Registration Statement (excluding exhibits thereto
and documents incorporated by reference therein unless reasonably so requested by such Electing Holder, agent or underwriter, as the case may be) and of the prospectus included in such Shelf
Registration Statement (including each preliminary prospectus and any summary prospectus), in conformity in all material respects with the applicable requirements of the Securities Act and the Trust
Indenture Act and the rules and regulations of the Commission thereunder, and such other documents, as such Electing Holder, agent, if any, and underwriter, if any, may reasonably request in order to
facilitate the offering and disposition of the Registrable Securities owned by such Electing Holder, offered or sold by such agent or underwritten by such underwriter and to permit such Electing
Holder, agent and underwriter to satisfy the prospectus delivery requirements of the Securities Act; and the Issuer hereby consents (subject to Section 3(h)) to the use of such prospectus
(including such preliminary and summary prospectus) and any amendment or supplement thereto by each such Electing Holder and by any such agent and underwriter, in each case in the form most recently
provided to such person by the Issuer, in connection with the offering and sale of the Registrable Securities covered by the prospectus (including such preliminary and summary prospectus) or any
supplement or amendment thereto; 

        (x)  use
best efforts to (A) register or qualify the Registrable Securities to be included in such Shelf Registration Statement under such securities laws or blue sky
laws of such jurisdictions as any Electing Holder and each underwriter, if any, thereof shall reasonably request, (B) keep such registrations or qualifications in effect and comply with such
laws so as to permit the continuance of offers, sales and dealings therein in such jurisdictions during the period the Shelf Registration is required to remain effective under Section 2(b) and
(C) take any and all other actions as may be reasonably necessary or advisable to enable each such Electing Holder, agent, if any, and underwriter, if any, to consummate the disposition in such
jurisdictions of such Registrable Securities; provided, however, that neither the Issuer nor the Guarantors shall be required for any such purpose to
(1) qualify as a foreign corporation in any jurisdiction wherein it would not otherwise be required to qualify but for the requirements of this Section 3(d)(x), (2) consent to
general service of process in any such jurisdiction or (3) make any changes to its certificate of incorporation or by-laws or any agreement between it and its stockholders; 

        (xi)  unless
any Registrable Securities shall be in book-entry only form, cooperate with the Electing Holders and the managing underwriters, if any, to facilitate
the timely preparation and delivery of certificates representing Registrable Securities to be sold, and, in the case of an underwritten offering, enable such Registrable Securities to be in such
denominations and 

11

 

registered in such names as the managing underwriters may request at least two business days prior to any sale of the Registrable Securities; 

        (xii)   provide
a CUSIP number, ISIN, and common code for all Registrable Securities, not later than the applicable Effective Time; 

        (xiii)    enter
into one or more underwriting agreements, engagement letters, agency agreements, "best efforts" underwriting agreements or similar agreements, as
appropriate, including customary provisions relating to indemnification and contribution, and take such other actions in connection therewith as any Electing Holders aggregating at least 20% in
aggregate principal amount of the Registrable Securities at the time outstanding shall request in order to expedite or facilitate the disposition of such Registrable Securities; 

        (xiv)     whether
or not an agreement of the type referred to in Section 3(d)(xiii) hereof is entered into and whether or not any portion of the
offering contemplated by the Shelf Registration is an underwritten offering or is made through a placement or sales agent or any other entity, (A) make such representations and warranties to
the Electing Holders and the underwriters, if any, thereof in form, substance and scope as are customarily made in connection with an offering of debt securities pursuant to any appropriate agreement
or to a registration statement filed on the form applicable to the Shelf Registration; (B) obtain opinions of counsel customary for a public offering of Securities to the Issuer in customary
form and covering such matters, of the type customarily covered by such an opinion, as the managing underwriters, if any, or, in the event there are no managing underwriters, the Electing Holders of
at least a majority in aggregate principal amount of the Registrable Securities at the time outstanding may reasonably request, addressed to the managing underwriters (if any) or such Electing Holder
or Electing Holders and dated the effective date of such Shelf Registration Statement; (C) obtain a "cold comfort" letter or letters from the independent certified public accountants of the
Issuer addressed to the managing underwriters (if any) or, in the event there are no managing underwriters, use reasonable efforts to have such letters addressed to the selling Electing Holders, dated
(i) the effective date of such Shelf Registration Statement and (ii) the effective date of any prospectus supplement to the prospectus included in such Shelf Registration Statement or
post-effective amendment to such Shelf Registration Statement which includes unaudited or audited financial statements as of a date or for a period subsequent to that of the latest such
statements included in such prospectus, such letter or letters to be in customary form and covering such matters of the type customarily covered by letters of such type; (D) deliver such
documents and certificates, including officers' certificates, as may be reasonably requested by any Electing Holders of at least 20% in aggregate principal amount of the Registrable Securities at the
time outstanding or the managing underwriters, if any, thereof to evidence the accuracy of the representations and warranties made pursuant to clause (A) above or those contained in
Section 5 hereof and the compliance with or satisfaction of any agreements or conditions contained in the underwriting agreement or other agreement entered into by the Issuer; and
(E) undertake such obligations relating to expense reimbursement, indemnification and contribution as are provided in Section 6 hereof; 

        (xv)   notify
in writing each holder of Registrable Securities of any proposal by the Issuer to amend or waive any provision of this Exchange and Registration
Rights Agreement pursuant to Section 9(g) hereof and of any amendment or waiver effected pursuant thereto, each of which notices shall contain the text of the amendment or waiver proposed or
effected, as the case may be; 

        (xvi)     in
the event that any broker-dealer registered under the Exchange Act shall underwrite any Registrable Securities or participate as a member of an
underwriting syndicate 

12

 

or selling group or "assist in the distribution" (within the meaning of the Conduct Rules (the "Conduct Rules") of the National Association of Securities Dealers, Inc. ("NASD") or any
successor thereto, as amended from time to time) thereof, whether as a holder of such Registrable Securities or as an underwriter, a placement or sales agent or a broker or dealer in respect thereof,
or otherwise, assist such broker-dealer in complying with the requirements of such Conduct Rules, including by (A) if such Conduct Rules shall so require, engaging a "qualified independent
underwriter" (as defined in such Conduct Rules) to participate in the preparation of the Shelf Registration Statement relating to such Registrable Securities, to exercise usual standards of due
diligence in respect thereto and, if any portion of the offering contemplated by such Shelf Registration Statement is an underwritten offering or is made through a placement or sales agent, to
recommend the yield of such Registrable Securities, (B) indemnifying any such qualified independent underwriter to the extent of the indemnification of underwriters provided in Section 6
hereof (or to such other customary extent as may be requested by such underwriter), and (C) providing such information to such broker-dealer as may be required in order for such broker-dealer
to comply with the requirements of the Conduct Rules; and 

        (xvii)    comply
with all applicable rules and regulations of the Commission, and make generally available to its securityholders as soon as practicable but in
any event not later than 24 months after the effective date of such Shelf Registration Statement, an earnings statement of the Issuer and its subsidiaries complying with Section 11(a) of
the Securities Act (including, at the option of the Issuer, Rule 158 thereunder) (it being understood that the Issuer may satisfy its obligations under this clause through the filing of its
annual report on Form 20-F for the first full fiscal year after such effective date). 

        (e)  In
the event that the Issuer would be required, pursuant to Section 3(d)(vi)(F) above, to notify the Electing Holders and the managing underwriters, if any,
thereof, the Issuer shall without delay prepare and furnish to each of the Electing Holders and to each such underwriter, if any, a reasonable number of copies of a prospectus supplemented or amended
so that, as thereafter delivered to purchasers of Registrable Securities, such prospectus shall conform in all material respects to the applicable requirements of the Securities Act and the Trust
Indenture Act and the rules and regulations of the Commission thereunder and shall not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein not misleading in light of the circumstances then existing. Each Electing Holder agrees that upon receipt of any notice from the Issuer pursuant to
Section 3(d)(vi)(F) hereof, such Electing Holder shall forthwith discontinue the disposition of Registrable Securities pursuant to the Shelf Registration Statement applicable to such
Registrable Securities until such Electing Holder shall have received copies of such amended or supplemented prospectus, and if so directed by the Issuer, such Electing Holder shall deliver to the
Issuer (at the Issuer's expense) all copies, other than permanent file copies, then in such Electing Holder's possession of the prospectus covering such Registrable Securities at the time of receipt
of such notice. 

        (f)    In
the event of a Shelf Registration, in addition to the information required to be provided by each Electing Holder in its Notice Questionnaire, the Issuer may require
such Electing Holder to furnish to
the Issuer such additional information regarding such Electing Holder and such Electing Holder's intended method of distribution of Registrable Securities as the Issuer may, after consulting with
counsel, determine is required in order to comply with the Securities Act. Each such Electing Holder agrees to notify the Issuer as promptly as practicable of any inaccuracy or change in information
previously furnished by such Electing Holder to the Issuer or of the occurrence of any event in either case as a result of which any prospectus relating to such Shelf Registration contains or would
contain an untrue statement of a material fact regarding such Electing Holder or such Electing Holder's intended method of disposition of such Registrable 

13

 

Securities or omits to state any material fact regarding such Electing Holder or such Electing Holder's intended method of disposition of such Registrable Securities required to be stated therein or
necessary to make the statements therein not misleading in light of the circumstances then existing, and promptly to furnish to the Issuer any additional information required to correct and update any
previously furnished information or required so that such prospectus shall not contain, with respect to such Electing Holder or the disposition of such Registrable Securities, an untrue statement of a
material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances then existing. 

        (g)  Until
the expiration of two years after the Closing Date, the Issuer will not, and will not permit any of its direct and indirect subsidiaries, including the Guarantors
to, resell any of the Securities that have been reacquired by any of them except pursuant to an effective registration statement under the Securities Act. 

        (h)  In
the case of a Shelf Registration Statement or the notification of the Issuer by broker-dealers seeking to sell Exchange Securities and required to deliver
prospectuses that will be utilizing the prospectus contained in the Exchange Offer Registration Statement, each holder agrees that, upon receipt of any notice from the Issuer of (i) the
happening of any event of the kind described in any of clauses (B)–(F) of Section 3(d)(vi) or (ii) the exercise of the Issuer's right, under clause (ii) of the
second paragraph of Section 2(d), to postpone the effectiveness, supplementing or amending of any such Registration Statement, such holder will forthwith discontinue disposition of Securities
pursuant to the applicable Registration Statement until such holder receives the copies of the supplemented or amended prospectus contemplated by Section 3(c)(iv) or Section 3(e)
or until such holder is advised in writing (the "Advice") by the Issuer that the use of the applicable prospectus may be resumed, and, if so directed by the Issuer, such holder will deliver to the
Issuer (at the Issuer's expense) all copies in such holder's possession, other than permanent file copies, of the prospectus covering such Securities current at the time of receipt of such notice. If
the Issuer shall give any such notice to suspend the disposition of any Securities pursuant to a Registration Statement, the Issuer shall use its best efforts to file a supplement or an
amendment to the Registration Statement and, in the case of an amendment, have such amendment declared effective as soon as practicable and shall extend the period during which such Registration
Statement shall be maintained effective pursuant to this Exchange and Registration Rights Agreement by the number of days in the period from and including the date of the giving of such notice to and
including the date when the Issuer shall have made available to the holders (i) copies of the supplemented or amended prospectus necessary to resume such dispositions or (ii) the Advice. 

        4.    Registration Expenses.

                The
Issuer agrees unless otherwise agreed in writing between the issuer and the Purchasers to bear and to pay or cause to be paid promptly the following expenses incident
to the Issuer's performance of or compliance with this Exchange and Registration Rights Agreement: (a) all Commission and any NASD registration, filing and review fees and other expenses
(except as noted herein) in connection with the registration of the Securities with the Commission in connection with such registration, filing and review; (b) all fees and expenses in
connection with the qualification of the Securities for offering and sale under the State securities and blue sky laws referred to in Section 3(d)(x) hereof and determination of their
eligibility for investment under the laws of such jurisdictions as any managing underwriters or the Electing Holders may designate, including any fees and disbursements of counsel for the Electing
Holders or underwriters in connection with such qualification; (c) fees and expenses of the Trustee under the Indenture, any agent of the Trustee and any counsel for the Trustee and of any
collateral agent or custodian; (d) internal expenses (including all salaries and expenses of the Issuer's officers and employees performing legal or accounting duties); (e) reasonable
and duly documented fees, disbursements and expenses of counsel and independent 

14

 

certified public accountants of the Issuer (including the expenses of any opinions or "cold comfort" letters required by or incident to such performance and compliance); (f) fees,
disbursements and expenses of one counsel for the Electing Holders retained in connection with a Shelf Registration, as selected by the Electing Holders of at least a majority in aggregate principal
amount of the Registrable Securities held by Electing Holders (which counsel shall be reasonably satisfactory to the Issuer); and (g) fees, expenses and disbursements of any other persons,
including special experts, retained by the Issuer in connection with such registration (collectively, the "Registration Expenses"). The Purchasers agree to bear and to pay or cause to be paid promptly
the following expenses incident to the Purchasers' compliance with this Exchange and Regulation Rights Agreement: (a) all expenses relating to the preparation, printing, production,
distribution and reproduction of each registration statement required to be filed hereunder, each prospectus included therein or prepared for distribution pursuant hereto, each amendment or supplement
to the foregoing, the expenses of preparing the Securities for delivery and the expenses of printing or producing any underwriting agreements, agreements among underwriters, selling agreements and
blue sky or legal investment memoranda and all other documents in connection with the offering, sale or delivery of Securities to be disposed of (including certificates representing the Securities);
(b) messenger, telephone and delivery expenses relating to the offering, sale or delivery of Securities and the preparation of documents referred in clause (a) above; (c) fees and
disbursements and expenses of any "qualified independent underwriter" engaged pursuant to Section 3(d)(xix) hereof; (d) any fees charged by securities rating services for rating
the Securities (limited to the one-time payment of Moody's quarterly fee for the current quarter, as well as the one-time payment of Moody's transaction fee, as it relates to
the initial sale of the Securities); and (e) any fees associated with listing the Securities on the Luxembourg Stock Exchange and the consummation by the transactions contemplated by this
Exchange and Registration Rights Agreement in Luxembourg. To the extent that any Registration Expenses are incurred, assumed or paid by any holder of Registrable Securities therefor or underwriter
thereof, the Issuer shall reimburse such person for the full amount of the Registration Expenses so incurred, assumed or paid promptly after receipt of a request therefor. Notwithstanding the
foregoing, the holders of the Registrable Securities being registered shall pay all agency fees and commissions and underwriting discounts and commissions attributable to the sale of such Registrable
Securities and the fees and disbursements of any counsel or other advisors or experts retained by such holders (severally or jointly), other than the counsel and experts specifically referred to
above. 

        5.    Representations and Warranties.

                The
Issuer represents and warrants to, and agrees with, each Purchaser and each of the holders from time to time of Registrable Securities that: 

        (a)  The
compliance by the Issuer with the provisions of this Exchange and Registration Rights Agreement, and the consummation of the transactions herein contemplated will
not conflict with or result in a breach of any of the terms or provisions of, or constitute a default under, any material agreement or material instrument to which the Issuer or any of the Guarantors
is a party or by which the Issuer or any of the Guarantors is bound or to which any of the property or assets of the Issuer or any of the Guarantors is subject, nor will such action result in any
violation of the provisions of the Ley Orgánica de Petróleos Mexicanos y Organismos Subsidiarios (the "Organic Law") and
related regulations or any other statute or any order, rule or regulation of any court or governmental agency or body having jurisdiction over the Issuer or any of the Guarantors or any of its or
their respective properties; 

        (b)  This
Exchange and Registration Rights Agreement has been duly authorized, executed and delivered by the Issuer. 

15

 

        6.    Indemnification. 

        (a)  Indemnification by the Issuer.    The Issuer will indemnify and hold harmless each of the holders of
Registrable Securities included in an Exchange Registration Statement, each of the Electing Holders of Registrable Securities included in a Shelf Registration Statement and each person who
participates as an underwriter in any offering or sale of such Registrable Securities against any losses, claims, damages or liabilities, joint or several, to which such holder or underwriter may
become subject under the Securities Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon an untrue statement or
alleged untrue statement of a material fact contained in any Exchange Registration Statement or Shelf Registration Statement, as the case may be, under which such Registrable Securities were
registered under the Securities Act, or any preliminary, final or summary prospectus contained therein or furnished by the Issuer to any such holder, Electing Holder or underwriter, or any amendment
or supplement thereto, or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein, in
light of the circumstances under which they were made, not misleading, and will reimburse such holder, such Electing Holder and such underwriter for any legal or other expenses reasonably incurred by
them in connection with investigating or defending any such action or claim as such expenses are incurred; provided, however, that (i) the Issuer
shall not be liable to any such person in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon an untrue statement or alleged untrue statement or
omission or alleged omission made in such registration statement, or preliminary, final or summary prospectus, or amendment or supplement thereto, in reliance upon and in conformity with written
information
furnished to the Issuer by such person expressly for use therein; and (ii) such indemnity shall not inure to the benefit of any holder, Electing Holder or underwriter from or through whom the
person asserting such loss, claim, damage or liability purchased the Securities which are the subject thereof if such loss, claim, damage or liability results from the fact that such person was not
sent or given by such holder, Electing Holder or underwriter at or prior to the confirmation of the sale of the Securities a copy of the preliminary, final or summary prospectus, as amended or
supplemented at the time of sale, and the untrue statement or omission of a material fact contained in the preliminary, final or summary prospectus, as amended or supplemented, was corrected in the
preliminary, final or summary prospectus, as amended or supplemented at the time of sale, and sufficient copies of the preliminary, final or summary prospectus, as so amended or supplemented at the
time of sale, were supplied to each holder, Electing Holder or underwriter sufficiently in advance of the date of such confirmation to permit delivery thereof to such person prior to such
confirmation. 

        (b)  Indemnification by the Holders and Underwriters.    The Issuer may require, as a condition to including any
Registrable Securities in any registration statement filed pursuant to Section 2(b) hereof and to entering into any underwriting agreement with respect thereto, that the Issuer shall have
received an undertaking reasonably satisfactory to it from the Electing Holder of such Registrable Securities and from each underwriter named in any such underwriting agreement, severally and not
jointly, to (i) indemnify and hold harmless the Issuer, and all other holders of Registrable Securities, against any losses, claims, damages or liabilities to which the Issuer or such other
holders of Registrable Securities may become subject, under the Securities Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are
based upon an untrue statement or alleged untrue statement of a material fact contained in such registration statement, or any preliminary, final or summary prospectus contained therein or furnished
by the Issuer to any such Electing Holder or underwriter, or any amendment or supplement thereto, or arise out of or are based upon the omission or alleged omission to state therein a material fact
required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading, in each case to the 

16

 

extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in reliance upon and in conformity with written information furnished
to the Issuer by such Electing Holder or underwriter expressly for use therein, and (ii) reimburse the Issuer for any legal or other expenses reasonably incurred by the Issuer in connection
with investigating or defending any such action or claim as such expenses are incurred; provided, however, that no such Electing Holder shall be required to undertake liability to any person under
this Section 6(b) for any amounts in excess of the dollar amount of the proceeds to be received by such Electing Holder from the sale of such Electing Holder's Registrable Securities pursuant
to such registration. 

        (c)  Notices of Claims, Etc.    Promptly after receipt by an indemnified party under subsection (a) or
(b) above of written notice of the commencement of any action, such indemnified party shall, if a claim in respect thereof is to be made against an indemnifying party pursuant to the
indemnification provisions of or contemplated by this Section 6, notify such indemnifying party in writing of the commencement of such action; but the omission so to notify the indemnifying
party shall not relieve it from any liability which it may have to any indemnified party otherwise than under the indemnification provisions of or contemplated by Section 6(a) or 6(b) hereof.
In case any such action shall be brought against any indemnified party and it shall notify an indemnifying party of the commencement thereof, such indemnifying party shall be entitled to participate
therein and, to the extent that it shall wish, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel
reasonably satisfactory to such indemnified party (who shall not, except with the consent of the indemnified party, be counsel to the indemnifying party), and, after notice from the indemnifying party
to such indemnified party of its election so to assume the defense thereof, such indemnifying party shall not be liable to such indemnified party for any legal expenses of other counsel or any other
expenses, in each case subsequently incurred by such indemnified party, in connection with the defense thereof other than reasonable and duly documented costs in a manner customary for the indemnified
party of investigation. The indemnifying party shall not be liable for any settlement of any proceeding effected without its written consent, which shall not be unreasonably withheld. No indemnifying
party shall, without the written consent of the indemnified party, effect the settlement or compromise of, or consent to the entry of any judgment with respect to, any pending or threatened action or
claim in respect of which indemnification or contribution may be sought hereunder (whether or not the indemnified party is an actual or potential party to such action or claim) unless such settlement,
compromise or judgment (i) includes an unconditional release of the indemnified party from all liability arising out of such action or claim and (ii) does not include a statement as to
or an admission of fault, culpability or a failure to act by or on behalf of any indemnified party. 

        (d)  Contribution.    If for any reason the indemnification provisions contemplated by Section 6(a) or
Section 6(b) are unavailable to hold harmless an indemnified party in respect of any losses, claims, damages or liabilities (or actions in respect thereof) referred to therein although
applicable in accordance with their terms, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party as a result of such losses, claims, damages or
liabilities (or actions in respect thereof) in such proportion as is appropriate to reflect the relative fault of the indemnifying party and the indemnified party in connection with the statements or
omissions which resulted in such losses, claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations. The relative fault of such indemnifying
party and indemnified party shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or omission or alleged omission to state a
material fact relates to information supplied by such indemnifying party or by such indemnified party, and the parties' relative intent, knowledge, access to information and opportunity to correct or
prevent such statement or omission. The parties hereto agree that it 

17

 

would not be just and equitable if contributions pursuant to this Section 6(d) were determined by pro rata allocation (even if the holders or any underwriters or all of them were treated as
one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to in this Section 6(d). The amount paid or payable by an
indemnified party as a result of the losses, claims, damages, or liabilities (or actions in respect thereof) referred to above shall be deemed to include any legal or other fees or expenses reasonably
incurred by such indemnified party in connection with investigating or defending any such action or claim. Notwithstanding the provisions of this Section 6(d), no holder shall be required to
contribute any amount in excess of the amount by which the dollar amount of the proceeds received by such holder from the sale of any Registrable Securities (after deducting any fees, discounts and
commissions applicable thereto) exceeds the amount of any damages which such holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged
omission, and no underwriter shall be required to contribute any amount in excess of the amount by which the total price at which the Registrable Securities underwritten by it and distributed to the
public were offered to the public exceeds the amount of any damages which such underwriter has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or
alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not
guilty of such fraudulent misrepresentation. The holders' and any underwriters' obligations in this Section 6(d) to contribute shall be several in proportion to the
principal amount of Registrable Securities registered or underwritten, as the case may be, by them and not joint. 

        (e)  The
obligations of the Issuer under this Section 6 shall be in addition to any liability which the Issuer may otherwise have and shall extend, upon the same terms
and conditions, to each officer, director and partner of each holder and underwriter and each person, if any, who controls any holder, agent or underwriter within the meaning of the Securities Act;
and the obligations of the holders and any agents or underwriters contemplated by this Section 6 shall be in addition to any liability which the respective holder, agent or underwriter may
otherwise have and shall extend, upon the same terms and conditions, to each officer and director of the Issuer (including any person who, with his consent, is named in any registration statement as
about to become a director of the Issuer) and to each person, if any, who controls the Issuer within the meaning of the Securities Act. 

        7.    Underwritten Offerings. 

        (a)  Selection of Underwriters.    If any of the Registrable Securities covered by the Shelf Registration are to be
sold pursuant to an underwritten offering, the managing underwriter or underwriters thereof shall be designated by Electing Holders holding at least a majority in aggregate principal amount of the
Registrable Securities to be included in such offering, provided that such designated managing underwriter or underwriters is or are acceptable to the Issuer. 

        (b)  Participation by Holders.    Each holder of Registrable Securities hereby agrees with each other such holder
that no such holder may participate in any underwritten offering hereunder unless such holder (i) agrees to sell such holder's Registrable Securities on the basis provided in any underwriting
arrangements approved by the persons entitled hereunder to approve such arrangements and (ii) completes and executes all questionnaires, powers of attorney, indemnities, underwriting agreements
and other documents reasonably required under the terms of such underwriting arrangements. 

        8.    Rule 144. 

                The
Issuer covenants to the holders of Registrable Securities that to the extent it shall be required to do so under the Exchange Act, the Issuer shall timely file the
reports required to be filed 

18

 

by it under the Exchange Act or the Securities Act (including the reports under Section 13 and 15(d) of the Exchange Act referred to in subparagraph (c)(1) of Rule 144 adopted by the
Commission under the Securities Act) and the rules and regulations adopted by the Commission thereunder, and shall take such further action as any holder of Registrable Securities may reasonably
request, all to the extent required from time to time to enable such holder to sell Registrable Securities without registration under the Securities Act within the limitations of the exemption
provided by Rule 144 under the Securities Act, as such Rule may be amended from time to time, or any similar or successor rule or
regulation hereafter adopted by the Commission. Upon the request of any holder of Registrable Securities in connection with that holder's sale pursuant to Rule 144, the Issuer shall deliver to
such holder a written statement as to whether it has complied with such requirements. 

        9.    Miscellaneous.

        (a)  No Inconsistent Agreements.    The Issuer represents, warrants, covenants and agrees that it has not granted,
and shall not grant, registration rights with respect to Registrable Securities or any other securities which would be inconsistent with the rights granted to the holders of the Registrable Securities
in this Exchange and Registration Rights Agreement. 

        (b)  Notices.    All notices, requests, claims, demands, waivers and other communications hereunder shall be in
writing and shall be deemed to have been duly given when delivered by hand, if delivered personally or by courier, as follows: If to the Issuer, to it at Avenida Marina Nacional 329, Torre Ejecutiva,
Piso 32, Gerencia de Financiamientos y Análisis de Mercado, Mexico D.F. 11311, Mexico, and if to a holder, to the address of such holder set forth in the security register or other
records of the Issuer, or to such other address as the Issuer or any such holder may have furnished to the other in writing in accordance herewith, except that notices of change of address shall be
effective only upon receipt. 

        (c)  Parties in Interest.    All the terms and provisions of this Exchange and Registration Rights Agreement shall
be binding upon, shall inure to the benefit of and shall be enforceable by the parties hereto and the holders from time to time of the Registrable Securities and the respective successors and assigns
of the parties hereto and such holders. In the event that any transferee of any holder of Registrable Securities shall acquire Registrable Securities, in any manner, whether by gift, bequest,
purchase, operation of law or otherwise, such transferee shall, without any further writing or action of any kind, be deemed a beneficiary hereof for all purposes and such Registrable Securities shall
be held subject to all of the terms of this Exchange and Registration Rights Agreement, and by taking and holding such Registrable Securities such transferee shall be entitled to receive the benefits
of, and be conclusively deemed to have agreed to be bound by all of the applicable terms and provisions of this Exchange and Registration Rights Agreement. If the Issuer shall so request, any such
successor, assign or transferee shall agree in writing to acquire and hold the Registrable Securities subject to all of the applicable terms hereof. 

        (d)  Survival.    The respective indemnities, agreements, representations, warranties and each other provision set
forth in this Exchange and Registration Rights Agreement or made pursuant hereto shall remain in full force and effect regardless of any investigation (or statement as to the results thereof) made by
or on behalf of any holder of Registrable Securities, the Issuer or any director, officer or partner of such holder, the Issuer, any agent or underwriter or any director, officer or partner thereof,
or any controlling person of any of the foregoing, and shall survive delivery of and payment for the Registrable Securities pursuant to the Terms Agreement and the transfer and registration of
Registrable Securities by such holder and the consummation of an Exchange Offer. 

        (e)  Governing Law.    This Exchange and Registration Rights Agreement shall be governed by and construed in
accordance with the laws of the State of New York except that the authorization  

19

 

 and execution of this Exchange and Registration Rights Agreement by the Issuer shall be governed by the laws of Mexico.

        (f)    Headings.    The descriptive headings of the several Sections and paragraphs of this Exchange and Registration
Rights Agreement are inserted for convenience only, do not constitute a part of this Exchange and Registration Rights Agreement and shall not affect in any way the meaning or interpretation of this
Exchange and Registration Rights Agreement. 

        (g)  Entire Agreement; Amendments.    This Exchange and Registration Rights Agreement and the other writings
referred to herein (including the Fiscal Agency Agreement, the Indenture and the form of Securities) or delivered pursuant hereto which form a part hereof contain the entire understanding of
the parties with respect to its subject matter. This Exchange and Registration Rights Agreement supersedes all prior agreements and understandings between the parties with respect to its subject
matter. This Exchange and Registration Rights Agreement may be amended and the observance of any term of this Exchange and Registration Rights Agreement may be waived (either generally or in a
particular instance and either retroactively or prospectively) only by a written instrument duly executed by the Issuer and the holders of at least a majority in aggregate principal amount of the
Registrable Securities at the time outstanding. Each holder of any Registrable Securities at the time or thereafter outstanding shall be bound by any amendment or waiver effected pursuant to this
Section 9(g), whether or not any notice, writing or marking indicating such amendment or waiver appears on such Registrable Securities or is delivered to such holder. 

        (h)  Counterparts.    This Exchange and Registration Rights Agreement may be executed by the parties in
counterparts, each of which shall be deemed to be an original, but all such respective counterparts shall together constitute one and the same instrument. 

        (i)    Agent for Service; Submission to Jurisdiction; Waiver of Immunities.    The Issuer hereby appoints the Consul
General of Mexico in New York City (currently Mr. Jorge Pinto) and its successors as its authorized agent (the "Authorized Agent") upon which process may be served in any action by any
Purchaser, or by any persons controlling such Purchaser, arising out of or based upon this Exchange and Registration Rights Agreement which may be instituted in the U.S. District Court for the
Southern District of New York and any appellate court or body thereto (collectively, the "Federal Courts") or the state courts of New York referred to below. Each of the parties hereto irrevocably
submits to the jurisdiction of the Federal Courts in respect of any action arising out of or based upon this Exchange and Registration Rights Agreement and irrevocably waives any objection which it
may now or hereafter have to the laying of venue of any such action in any such court, and each such party further waives any right to which it may be entitled on account of residence or domicile. In
addition, in the event the Federal Courts are unavailable, the Issuer irrevocably submits to the jurisdiction of the Supreme Court of the State of New York, County of New York, and any appellate court
or body thereto, in respect of any action arising out of or based upon this Exchange and Registration Rights Agreement and irrevocably waives any objection which it may now or hereafter have to the
laying of venue of any such
action in any such court, and each such party further waives any right to which it may be entitled on account of residence or domicile. The appointment made by the Issuer shall be irrevocable as long
as any of the Securities remain outstanding, unless and until a successor agent shall have been appointed the Issuer's Authorized Agent and such successor agent shall have accepted such appointment.
The Issuer will take any and all action, including the filing of any and all documents and instruments, that may be necessary to continue such appointment or appointments in full force and effect as
aforesaid. Service of process upon the Authorized Agent at 27 East 39th Street, New York, New York 10016, and written notice of such service mailed or delivered to the Issuer at the address set forth
in Section 9(b) above shall be deemed, in every respect, effective service of process upon the Issuer. The Issuer hereby waives irrevocably any immunity from jurisdiction to which it might 

20

 

otherwise be entitled (including, to the extent applicable, sovereign immunity, immunity to pre-judgment attachment, post-judgment attachment and execution) in any such action
in any federal court in The City of New York, or in any competent court in Mexico, except that Article 27 of the Political Constitution of the United Mexican States, Articles 2, 16 and 60 of
the General Law on National Patrimony (and other related articles), Articles 1, 2, 3 and 4 (and related articles) of the Regulatory Law, Articles 15, 16 and 19 of the Regulations to the Regulatory
Law, Articles 1, 2, 3 and 4 (and other related articles) of the Organic Law, and Article 4 of the Federal Code of Civil Procedure of Mexico, set forth that (a) all domestic petroleum and
hydrocarbon resources (whether solid, liquid, gas or intermediate form) are permanently and inalienably vested in Mexico (and, therefore, entitled to immunity), (b) the Petroleum Industry is
reserved to Mexico (and, therefore, entitled to immunity), (c) the public entities created and appointed by the Federal Congress of Mexico exclusively to conduct, control, operate and develop
the Petroleum Industry in and on behalf of Mexico are the Issuer and the Guarantors (such entities are, therefore, entitled to immunity with respect to exclusive right and power), and
(e) attachment prior to judgment or attachment in aid of execution or execution of a final judgment may not be ordered by Mexican courts against property of the Issuer and the Guarantors. 

        (j)    Judgment Currency.    The Issuer shall indemnify, to the extent permitted by applicable law, each Purchaser,
each Participating Broker-Dealer, each underwriter who participates in an offering of Securities, their respective affiliates, each Person, if any, who controls any of such parties within the meaning
of Section 15 of the Securities Act or Section 20 of the Exchange Act and each of their respective officers, directors, employees and agents and each Holder against any loss incurred by
such party as a result of any judgment or order being given or made for any amount due under this Agreement and such judgment or order being expressed and paid in a currency (the
"Judgment Currency") other than United States dollars and as a result of any variation as between (i) the rate of exchange at which the United
States dollar amount is converted into the Judgment Currency for the purpose of such judgment or order and (ii) the spot rate of exchange in The City of New York at which such party on the date
of payment of such judgment or order is able to purchase United States dollars with the amount of the Judgment Currency actually received by such party. The foregoing indemnity shall continue in full
force and effect notwithstanding any such judgment or order as aforesaid. The term "spot rate of exchange" shall include any premiums and costs of exchange payable in connection with the purchase of,
or conversion into, United States dollars. 

21

 

                If
the foregoing is in accordance with your understanding, please sign and return to us 8 counterparts hereof, and upon the acceptance hereof by you, on behalf of each of
the Purchasers, this letter and such acceptance hereof shall constitute a binding agreement between each of the Purchasers and the Issuer. It is understood that your acceptance of this letter on
behalf of each of the Purchasers is pursuant to the authority set forth in a form of Agreement among Purchasers, the form of which shall be submitted to the Issuer for examination upon request, but
without warranty on your part as to the authority of the signers thereof. 

	

 	
 	

Very truly yours,
	 	 	 	 	 	 
	 	 	PETRÓLEOS MEXICANOS
	 	 	 	 	 	 
	 	 	By:	 	/s/  MAURICIO ALAZRAKI      

	 	 	 	 	Name:	Mauricio Alazraki
	 	 	 	 	Title:	Deputy Manager of Capital Markets

and Acting Associate Managing

Director of Finance

	Accepted as of the date hereof:	 
	 	 	 	 	 
	LEHMAN BROTHERS INC.	 
	 	 	 	 	 
	By:	 	/s/  MARTIN GOLDBERG      
	 
	 	 	Name:	Martin Goldberg	 
	 	 	Title:	Senior Vice President	 
	
GOLDMAN, SACHS & CO.	

 
	
By:	
 	

/s/  GOLDMAN, SACHS & CO.      
 (Goldman, Sachs & Co.)	

 

22

  

 
 

EXHIBIT A    
  

 
 
 

Petróleos Mexicanos    
    
    INSTRUCTION TO DTC PARTICIPANTS    
    
    (Date of Mailing)    
    
    URGENT—IMMEDIATE ATTENTION REQUESTED    
    
        DEADLINE FOR RESPONSE: [DATE] *    
    

The Depository Trust Company ("DTC") has identified you as a DTC Participant through which beneficial interests in Petróleos Mexicanos (the "Issuer") 6.50% Notes
due February 1, 2005 (the "Securities") are held. 

The
Issuer is in the process of registering the Securities under the Securities Act of 1933 for resale by the beneficial owners thereof. In order to have their Securities included in the registration
statement, beneficial owners must complete and return the enclosed Notice of Registration Statement and Selling Securityholder Questionnaire. 

It
is important that beneficial owners of the Securities receive a copy of the enclosed materials as soon as possible as their rights to have the Securities included in
the registration statement depend upon
their returning the Notice and Questionnaire by [Deadline For Response]. Please forward a copy of the enclosed documents to each
beneficial owner that holds interests in the Securities through you. If you require more copies of the enclosed materials or have any questions pertaining to this matter, please contact
Petróleos Mexicanos, Avenida Marina Nacional 329, Torre Ejecutiva, Piso 32, Gerencia de Financiamientos y Análisis de Mercado, Mexico
D.F. 11311, Mexico, Facsimile Transmission No. 011-525-726-1307, Attention: Associate Managing Director of Finance. 

* Not
less than 28 calendar days from date of mailing. 

A-1

 

Petróleos Mexicanos  

Notice of Registration Statement

and

Selling Securityholder Questionnaire 

(Date) 

Reference
is hereby made to the Exchange and Registration Rights Agreement dated August 29, 2001 (the "Exchange and Registration Rights Agreement") between Petróleos Mexicanos
(the "Issuer") and the Purchasers named therein. Pursuant to the Exchange and Registration Rights Agreement, the Issuer intends to file with the United States Securities and Exchange Commission (the
"Commission") a registration statement on Form [      ] (the "Shelf Registration
Statement") for the registration and resale under Rule 415 of the Securities Act of 1933, as amended (the "Securities Act"), of the Issuer's 6.50% Notes due February 1, 2005 (the
"Securities"). A copy of the Exchange and Registration Rights Agreement is attached hereto. All capitalized terms not otherwise defined herein shall have the meanings ascribed thereto in the Exchange
and Registration Rights Agreement. 

Each beneficial owner of Registrable Securities (as defined below) is entitled to have the Registrable Securities beneficially owned by it included in the Shelf Registration
Statement. In order to have Registrable Securities included in the Shelf Registration Statement, this Notice of Registration Statement and Selling Securityholder Questionnaire ("Notice and
Questionnaire") must be completed, executed and delivered to the Issuer's counsel at the address set forth herein for receipt ON OR BEFORE [Deadline for
Response]. Beneficial owners of Registrable Securities who do not complete,
execute and return this Notice and Questionnaire by such date (i) will not be named as selling securityholders in the Shelf Registration Statement and (ii) may not use the prospectus
forming a part thereof for resales of Registrable Securities. 

Certain
legal consequences arise from being named as a selling securityholder in the Shelf Registration Statement and related prospectus. Accordingly, holders and beneficial owners of Registrable
Securities are advised to consult their own securities law counsel regarding the consequences of being named or not being named as a selling securityholder in the Shelf Registration Statement and
related prospectus. 

The
term "Registrable Securities" is defined in the Exchange and Registration Rights Agreement. 

A-2

 
ELECTION 

        The
undersigned holder (the "Selling Securityholder") of Registrable Securities hereby elects to include in the Shelf Registration Statement the Registrable Securities beneficially owned
by it and listed below in Item (3). The undersigned, by signing and returning this Notice and Questionnaire, agrees to be bound with respect to such Registrable Securities by the terms and
conditions of this Notice and Questionnaire and the Exchange and Registration Rights Agreement. Such holder agrees severally and not jointly, to (i) indemnify and hold harmless the Issuer and
all other holders of Registrable Securities, against any losses, claims, damages or liabilities to which the Issuer or such other holders of Registrable Securities may become subject, under the
Securities Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon an untrue statement or alleged untrue statement of a
material fact contained in such registration statement, or any preliminary, final or summary prospectus contained therein or furnished by the Issuer to any such holder or underwriter, or any amendment
or supplement thereto, or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein, in
light of the circumstances under which they were made, not misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged
omission was made in reliance upon and in conformity with written information furnished to the Issuer by such holder expressly for use therein, and (ii) reimburse the Issuer for any legal or
other expenses reasonably incurred by the Issuer in connection with investigating or defending any such action or claim as such expenses are incurred; provided, however, that no such holder shall be
required to undertake liability to any person hereunder for any amounts in excess of the dollar amount of the proceeds to be received by such holder from the sale of such holder's Registrable
Securities pursuant to such registration. 

Upon
any sale of Registrable Securities pursuant to the Shelf Registration Statement, the Selling Securityholder will be required to deliver to the Issuer and Trustee the Notice of Transfer set forth
in Appendix A to the Prospectus and as Exhibit B to the Exchange and Registration Rights Agreement. 

The
Selling Securityholder hereby provides the following information to the Issuer and represents and warrants that such information is accurate and complete: 

A-3

 
QUESTIONNAIRE 

	(1)
	
	(a)
	Full
Legal Name of Selling Securityholder:

	—
	

	(b)
	Full
Legal Name of Registered Holder (if not the same as in (a) above) of Registrable Securities Listed in Item (3) below:

	—
	

	(c)
	Full
Legal Name of DTC Participant (if applicable and if not the same as (b) above) Through Which Registrable Securities Listed in Item (3) below are Held:

	—
	

	(2)
	Address
for Notices to Selling Securityholder: 

	

 	

 	

	
 	

 
	 	 	
	 	 
	 	 	
	 	 
	        	 	 	 	 
	 	Telephone:	
	 	 
	 	Fax:	
	 	 
	 	Contact Person:	
	 	 

	(3)
	Beneficial
Ownership of Securities: 

Except as set forth below in this Item (3), the undersigned does not beneficially own any Securities.

	(a)
	Principal
amount of Registrable Securities beneficially owned:
                                         
                                          
                     
 

CUSIP
No(s). of such Registrable Securities:
                                         
                                          
                                          
          

	(b)
	Principal
amount of Securities other than Registrable Securities beneficially owned:
                                         
                                

CUSIP
No(s). of such other Securities:
                                         
                                          
                                          
                   
 

	(c)
	Principal
amount of Registrable Securities which the undersigned wishes to be included in the Shelf Registration
Statement:                                       
                                          
                                          
              
 

CUSIP
No(s). of such Registrable Securities to be included in the Shelf Registration Statement:
                                         
            

	(4)
	Beneficial
Ownership of Other Securities of the Issuer and Guarantors: 

Except as set forth below in this Item (4), the undersigned Selling Securityholder is not the beneficial or registered owner of any other securities of the Issuer or any
Guarantor other than the Securities listed above in Item (3).

A-4

 

State
any exceptions here: 

	(5)
	Relationships
with the Issuer and Guarantors: 

Except as set forth below, neither the Selling Securityholder nor any of its affiliates, officers, directors or principal equity holders (5% or more) has held any position or
office or has had any other material relationship with the Issuer or any of the Guarantors (or their respective predecessors or affiliates) during the past three years. 

State
any exceptions here: 

	(6)
	Plan
of Distribution: 

Except as set forth below, the undersigned Selling Securityholder intends to distribute the Registrable Securities listed above in Item (3) only as follows (if at all):
Such Registrable Securities may be sold from time to time directly by the undersigned Selling Securityholder or, alternatively, through underwriters, broker-dealers or agents. Such Registrable
Securities may be sold in one or more transactions at fixed prices, at prevailing market prices at the time of sale, at varying prices determined at the time of sale, or at negotiated prices. Such
sales may be effected in transactions (which may involve crosses or block transactions) (i) on any national securities exchange or quotation service on which the Registered Securities may be
listed or quoted at the time of sale, (ii) in the over-the-counter market, (iii) in transactions otherwise than on such exchanges or services or in the
over-the-counter market, or (iv) through the writing of options. In connection with sales of the Registrable Securities or otherwise, the Selling Securityholder may
enter into hedging transactions with broker-dealers, which may in turn engage in short sales of the Registrable Securities in the course of hedging the positions they assume. The Selling
Securityholder may also sell Registrable Securities short and deliver Registrable Securities to close out such short positions, or loan or pledge Registrable Securities to broker-dealers that in turn
may sell such securities.

State
any exceptions here: 

By
signing below, the Selling Securityholder acknowledges that it understands its obligation to comply, and agrees that it will comply, with the provisions of the Exchange Act and the rules and
regulations thereunder, particularly Regulation M. 

In
the event that the Selling Securityholder transfers all or any portion of the Registrable Securities listed in Item (3) above after the date on which such information is provided to the
Issuer, the Selling Securityholder agrees to notify the transferee(s) at the time of the transfer of its rights and obligations under this Notice and Questionnaire and the Exchange and Registration
Rights Agreement. 

By
signing below, the Selling Securityholder consents to the disclosure of the information contained herein in its answers to Items (1) through (6) above and the inclusion of such
information in the Shelf Registration Statement and related prospectus. The Selling Securityholder understands that such information will be relied upon by the Issuer in connection with the
preparation of the Shelf Registration Statement and related prospectus. 

In
accordance with the Selling Securityholder's obligation under Section 3(d) of the Exchange and Registration Rights Agreement to provide such information as may be required by law for
inclusion in the Shelf Registration Statement, the Selling Securityholder agrees to promptly notify the Issuer of any 

A-5

 

inaccuracies or changes in the information provided herein which may occur subsequent to the date hereof at any time while the Shelf Registration Statement remains in effect. All notices hereunder
and pursuant to the Exchange and Registration Rights Agreement shall be made in writing, by hand-delivery or air courier guaranteeing overnight delivery as follows: 

	 	(i)    To the Issuer:	 	 	 
	 	 	
	 	 
	 	 	
	 	 
	 	 	
	 	 
	 	 	
	 	 
	 	 	
	 	 
	 	(ii)  With a copy to:	Avenida Marina Nacional 329

Torre Ejecutiva, Piso 32

Gerencia de Financiamientos y Análisis de Mercado

Mexico, D.F. 11311

Mexico

Attention: Associate Managing Director

                        of Finance	 	 

Once
this Notice and Questionnaire is executed by the Selling Securityholder and received by the Issuer's counsel, the terms of this Notice and Questionnaire, and the representations and warranties
contained herein, shall be binding on, shall inure to the benefit of and shall be enforceable by the
respective successors, heirs, personal representatives, and assigns of the Issuer and the Selling Securityholder (with respect to the Registrable Securities beneficially owned by such Selling
Securityholder and listed in Item (3) above. This Agreement shall be governed in all respects by the laws of the State of New York. 

IN
WITNESS WHEREOF, the undersigned, by authority duly given, has caused this Notice and Questionnaire to be executed and delivered either in person or by its duly authorized agent. 

Dated:
                            

	

 	

 Selling Securityholder

(Print/type full legal name of beneficial owner of Registrable Securities)
	

 	

By:	

	 	Name:

Title:

PLEASE
RETURN THE COMPLETED AND EXECUTED NOTICE AND QUESTIONNAIRE FOR RECEIPT ON OR BEFORE [DEADLINE FOR RESPONSE] TO THE
ISSUER'S COUNSEL AT: 

	

 	

 	

	
 	

 
	 	 	
	 	 
	 	 	
	 	 
	 	 	
	 	 
	 	 	
	 	 

A-6

  

 
 

EXHIBIT B    
  

 
 

NOTICE OF TRANSFER PURSUANT TO REGISTRATION STATEMENT    
  

Bankers
Trust Company

Petróleos Mexicanos

[c/o Bankers Trust Company

101 Barclay Street, Floor 21 West

New York, NY 10286] 

Attention:
Trust Officer 

	 	 	Re:	 	Petróleos Mexicanos (the "Issuer") 6.50% Notes due February 1, 2005

Dear
Sirs: 

Please
be advised that                        has transferred
$                                         
 aggregate principal amount of the above-referenced Notes pursuant to an effective Registration Statement on Form
[            ] (File No. 333-            ) filed by the Issuer and Petróleos Mexicanos. 

We
hereby certify that the prospectus delivery requirements, if any, of the Securities Act of 1933, as amended, have been satisfied and that the above-named beneficial owner of the Notes is named as a
"Selling Holder" in the Prospectus dated [date] or in supplements thereto, and that the aggregate principal amount of the Notes
transferred are the Notes listed in such prospectus opposite such owner's name. 

Dated:

	

 	
 	

Very truly yours,
	

 	
 	

 	

 (Name)
	

 	

 	

By:	

 (Authorized Signature)

B-1

QuickLinks

EXHIBIT 4.9

Exchange and Registration Rights Agreement

EXHIBIT A

INSTRUCTION TO DTC PARTICIPANTS

EXHIBIT B

NOTICE OF TRANSFER PURSUANT TO REGISTRATION STATEMENTEXHIBIT 4.7

THE REGISTERED HOLDER OF THIS WARRANT BY ITS ACCEPTANCE HEREOF, AGREES THAT IT
WILL NOT SELL, TRANSFER OR ASSIGN THIS WARRANT EXCEPT AS HEREIN PROVIDED.

NOT EXERCISABLE PRIOR TO FEBRUARY __, 2004. VOID AFTER 5:00 P.M. EASTERN TIME,
FEBRUARY __, 2008.

                                     WARRANT

                            For the Purchase of up to

                            ___________ Common Shares

                            CPI AEROSTRUCTURES, INC.

                            (A New York Corporation)

1. Warrant.

         THIS CERTIFIES THAT, in consideration of $100.00 duly paid by or on
behalf of ____________________________ ("Holder"), as registered owner of this
Warrant, to CPI Aerostructures, Inc. ("Company"), Holder is entitled, at any
time or from time to time at or after February __, 2004 ("Commencement Date"),
and at or before 5:00 p.m., Eastern Time, February __, 2008 ("Expiration Date"),
but not thereafter, to subscribe for, purchase and receive, in whole or in part,
up to _________________ (_________) Common Shares of the Company, $.001 par
value ("Common Shares"), pursuant to which the Company has registered Common
Shares. This Warrant is one of a series of similar warrants of like tenor to
purchase up to 200,000 Common Shares (collectively, the "Warrants"). The Common
Shares are sometimes referred to herein as the "Securities." If the Expiration
Date is a day on which banking institutions are authorized by law to close, then
this Warrant may be exercised on the next succeeding day that is not such a day
in accordance with the terms herein. During the period ending on the Expiration
Date, the Company agrees not to take any action that would terminate the
Warrant. This Warrant is initially exercisable at $___ per Common Share
purchased; provided, however, that upon the occurrence of any of the events
specified in Section 6 hereof, the rights granted by this Warrant, including the
exercise price and the number of Common Shares to be received upon such
exercise, shall be adjusted as therein specified. The term "Exercise Price"
shall mean the initial exercise price or the adjusted exercise price, depending
on the context.

2. Exercise.

     2.1 Exercise Form. In order to exercise this Warrant, the exercise form
attached hereto must be duly executed and completed and delivered to the
Company, together with this Warrant and payment of the Exercise Price in cash or

<PAGE>

by certified check or official bank check for the Securities being purchased. If
the subscription rights represented hereby shall not be exercised at or before
5:00 p.m., Eastern time, on the Expiration Date, this Warrant shall become and
be void without further force or effect, and all rights represented hereby shall
cease and expire.

     2.2 Legend. Each certificate for Securities purchased under this Warrant
shall bear a legend as follows unless such Securities have been registered under
the Securities Act of 1933, as amended:

          "The securities represented by this certificate have not been
          registered under the Securities Act of 1933, as amended ("Act"), or
          applicable state law. The securities may not be offered for sale, sold
          or otherwise transferred except pursuant to an effective registration
          statement under the Act, or pursuant to an exemption from registration
          under the Act and applicable state law."

     2.3 Conversion Right.

          2.3.1 Determination of Amount. In lieu of the payment of the Exercise
Price in the manner required by Section 2.1, the Holder shall have the right
(but not the obligation) to convert any exercisable but unexercised portion of
this Warrant into securities ("Conversion Right") as follows: Upon exercise of
the Conversion Right, the Company shall deliver to the Holder (without payment
by the Holder of any of the Exercise Price in cash) that number of Common Shares
equal to the quotient obtained by dividing (x) the "Value" (as defined below),
at the close of trading on the next to last trading day immediately preceding
the exercise of the Conversion Right, of the portion of the Warrant being
converted by (y) the Market Price (as defined below) at that same time. The
"Value" of the portion of the Warrant being converted shall equal the remainder
derived from subtracting (a) the Exercise Price multiplied by the number of
Common Shares underlying the portion of the Warrant being converted from (b) the
Market Price of the Common Shares multiplied by the number of Common Shares
underlying the portion of the Warrant being converted. As used in this Section
2.3, the term "Market Price" at any date shall be deemed to be the last reported
sale price of the Common Shares on such date, or, in case no such reported sale
takes place on such day, the average of the last reported sale price for the
three immediately preceding trading days, in either case as officially reported
by the principal securities exchange on which the Common Shares are listed or
admitted to trading, or, if the Common Shares are not listed or admitted to
trading on any national securities exchange or if any such exchange on which the
Common Shares are listed is not the principal trading market, the last reported
sale price as furnished by the NASD through the Nasdaq National Market or
SmallCap Market, or, if applicable, the OTC Bulletin Board or successor trading
medium, or if the Common Shares are not listed or admitted to trading on any of
the foregoing markets, or similar organization, as determined in good faith by
resolution of the Board of Directors of the Company, based on the best
information available to it.

                                       2
<PAGE>

          2.3.2 Mechanics of Conversion. The Conversion Right may be
exercised by the Holder on any business day on or after the Commencement Date
and not later than the Expiration Date by delivering the Warrant with a duly
executed exercise form attached hereto with the conversion right section
completed to the Company, exercising the Conversion Right and specifying the
total number of Common Shares that the Holder will purchase pursuant to such
Conversion Right.

3. Transfer.

     3.1 General Restrictions. The registered Holder of this Warrant, by its
acceptance hereof, agrees that it will not sell, transfer or assign or
hypothecate this Warrant prior to the Commencement Date to anyone other than (i)
an officer or partner of such Holder, (ii) an officer of EarlyBirdCapital, Inc.
("EBC" or the "Underwriter") or an officer or partner of any Selected Dealer
that executed the Selected Dealer Agreement between the Underwriter and the
members of the selling group ("Selected Dealer") in connection with the
Company's public offering with respect to which this Warrant has been issued, or
(iii) any Selected Dealer. On and after the Commencement Date, transfers to
others may be made subject to compliance with or exemptions from applicable
securities laws. In order to make any permitted assignment, the Holder must
deliver to the Company the assignment form attached hereto duly executed and
completed, together with the Warrant and payment of all transfer taxes, if any,
payable in connection therewith. The Company shall immediately transfer this
Warrant on the books of the Company and shall execute and deliver a new Warrant
or Warrants of like tenor to the appropriate assignee(s) expressly evidencing
the right to purchase the aggregate number of Common Shares purchasable
hereunder or such portion of such number as shall be contemplated by any such
assignment.

     3.2 Restrictions Imposed by the Act. This Warrant and the Securities
underlying this Warrant shall not be transferred unless and until (i) the
Company has received the opinion of counsel for the Holder that this Warrant or
the Securities, as the case may be, may be transferred pursuant to an exemption
from registration under the Act and applicable state law, the availability of
which is established to the reasonable satisfaction of the Company (the Company
hereby agreeing that an opinion of Graubard Miller in form and substance
reasonably satisfactory to the Company shall be deemed satisfactory evidence of
the availability of an exemption), or (ii) a registration statement relating to
such Warrant or Securities, as the case may be, has been filed by the Company
and declared effective by the Securities and Exchange Commission ("Commission")
and compliance with applicable state law.

4. New Warrants to be Issued.

     4.1 Partial Exercise, Conversion or Transfer. Subject to the restrictions
in Section 3 hereof, this Warrant may be exercised, converted or assigned in
whole or in part. In the event of the exercise, conversion or assignment hereof
in part only, upon surrender of this Warrant for cancellation, together with the
duly executed exercise or assignment form and funds (except in the case of
conversion) sufficient to pay any Exercise Price and/or transfer tax, the

                                       3
<PAGE>

Company shall cause to be delivered to the Holder without charge a new Warrant
of like tenor to this Warrant in the name of the Holder evidencing the right of
the Holder to purchase the aggregate number of Common Shares purchasable
hereunder as to which this Warrant has not been exercised or assigned.

     4.2 Lost Certificate. Upon receipt by the Company of evidence satisfactory
to it of the loss, theft, destruction or mutilation of this Warrant and of
reasonably satisfactory indemnification, the Company shall execute and deliver a
new Warrant of like tenor and date. Any such new Warrant executed and delivered
as a result of such loss, theft, mutilation or destruction shall constitute a
substitute contractual obligation on the part of the Company.

5. Registration Rights.

     5.1 Demand Registration.

          5.1.1 Grant of Right. The Company, upon written demand ("Initial
Demand Notice") of the Holder(s) of at least 51% of the Warrants and/or the
underlying Common Shares ("Majority Holders"), agrees to register, on one
occasion, all or any portion of the Warrants requested by the Majority Holders
in the Initial Demand Notice and all of the Securities underlying such Warrants
(collectively the "Registrable Securities"). On such occasion, the Company will
file a registration statement covering the Registrable Securities within sixty
(60) days after receipt of the Initial Demand Notice and use its best efforts to
have the registration statement declared effective promptly thereafter. If the
Company fails to comply with the provisions of this Section 5.1.1, the Company
shall, in addition to any other equitable or other relief available to the
Holder(s), be liable for any and all incidental, special and consequential
damages sustained by the Holder(s). The demand for registration may be made at
any time during a period of four years beginning one year from the effective
date of the registration statement on Form SB-2 (No. 333-101902) pursuant to
which the Company has registered Common Shares ("Effective Date"). The Company
covenants and agrees to give written notice of its receipt of any Initial Demand
Notice by any Holder(s) to all other registered Holders of the Warrants and/or
the Registrable Securities within ten (10) days from the date of the receipt of
any such Initial Demand Notice.

          5.1.2 Terms. The Company shall bear all fees and expenses attendant to
registering the Registrable Securities, but the Holders shall pay any and all
underwriting commissions and the expenses of any legal counsel selected by the
Holders to represent them in connection with the sale of the Registrable
Securities. The Company agrees to use its best efforts to cause the filing
required herein to become effective promptly and to qualify or register the
Registrable Securities in such States as are reasonably requested by the
Holder(s); provided, however, that in no event shall the Company be required to
register the Registrable Securities in a State in which such registration would
cause (i) the Company to be obligated to register or license to do business in
such State or submit to general service of process in such State, or (ii) the
principal Shareholders of the Company to be obligated to escrow their shares of
capital stock of the Company. The Company shall cause any registration statement

                                       4
<PAGE>

filed pursuant to the demand right granted under Section 5.1.1 to remain
effective until all of the Registrable Securities covered by such registration
statement have been sold.

     5.2 "Piggy-Back" Registration.

          5.2.1 Grant of Right. In addition to the demand right of registration,
the Holders of the Warrants shall have the right at any time for a period of six
(6) years commencing one year from the Effective Date to include the Registrable
Securities as part of any other registration of securities filed by the Company
(other than in connection with a transaction contemplated by Rule 145(a)
promulgated under the Act or pursuant to Form S-8 or any equivalent form);
provided, however, that if, in the written determination of the Company's
managing underwriter or underwriters, if any, for such offering, the inclusion
of the Registrable Securities, when added to the securities being registered by
the Company or the selling shareholder(s), will exceed the maximum amount of the
Company's securities that can be marketed (i) at a price reasonably related to
their then current market value, or (ii) without materially and adversely
affecting the entire offering, the Company shall nevertheless register all or
any portion of the Registrable Securities required to be so registered but such
Registrable Securities shall not be sold by the Holders until 90 days after the
registration statement for such offering has become effective and provided
further that, if any securities are registered for sale on behalf of other
shareholders in such offering and such shareholders have not agreed to defer
such sale until the expiration of such 90 day period, the number of securities
to be sold by all shareholders in such public offering during such 90 day period
shall be apportioned pro rata among all such selling shareholders, including all
holders of the Registrable Securities, according to the total amount of
securities of the Company owned by said selling shareholders, including all
holders of the Registrable Securities.

          5.2.2 Terms. The Company shall bear all fees and expenses attendant to
registering the Registrable Securities, but the Holders shall pay any and all
underwriting commissions and the expenses of any legal counsel selected by the
Holders to represent them in connection with the sale of the Registrable
Securities. In the event of such a proposed registration, the Company shall
furnish the then Holders of outstanding Registrable Securities with not less
than thirty (30) days written notice prior to the proposed date of filing of
such registration statement. Such notice to the Holders shall continue to be
given for each registration statement filed by the Company until such time as
all of the Registrable Securities have been sold by the Holder. The holders of
the Registrable Securities shall exercise the "piggy-back" rights provided for
herein by giving written notice, within twenty (20) days of the receipt of the
Company's notice of its intention to file a registration statement. The Company
shall cause any registration statement filed pursuant to the above "piggyback"
rights to remain effective until all of the Registrable Securities covered by
such registration statement have been sold.

     5.3 General Terms.

          5.3.1 Indemnification. The Company shall indemnify the Holder(s) of
the Registrable Securities to be sold pursuant to any registration statement
hereunder and each person, if any, who controls any such Holder within the

                                       5
<PAGE>

meaning of Section 15 of the Act or Section 20(a) of the Securities Exchange Act
of 1934, as amended ("Exchange Act"), against all loss, claim, damage, expense
or liability (including all reasonable attorneys' fees and other expenses
reasonably incurred in investigating, preparing or defending against any claim
whatsoever) to which any of them may become subject under the Act, the Exchange
Act or otherwise, arising from such registration statement but only to the same
extent and with the same effect as the provisions pursuant to which the Company
has agreed to indemnify the Underwriter contained in Section 5 of the
Underwriting Agreement between the Underwriter and the Company, dated the
Effective Date. The Holder(s) of the Registrable Securities to be sold pursuant
to such registration statement, and their successors and assigns, shall
severally, and not jointly, indemnify the Company against all loss, claim,
damage, expense or liability (including all reasonable attorneys' fees and other
expenses reasonably incurred in investigating, preparing or defending against
any claim whatsoever) to which they may become subject under the Act, the
Exchange Act or otherwise, arising from information furnished by or on behalf of
such Holders, or their successors or assigns, in writing, for specific inclusion
in such registration statement to the same extent and with the same effect as
the provisions contained in Section 5 of the Underwriting Agreement pursuant to
which the Underwriter has agreed to indemnify the Company.

          5.3.2 Exercise of Warrants. Nothing contained in this Warrant shall be
construed as requiring the Holder(s) to exercise their Warrants prior to or
after the initial filing of any registration statement or the effectiveness
thereof.

          5.3.3 Documents Delivered to Holders. The Company shall furnish to
each Holder participating in any of the foregoing offerings and to each
underwriter of any such offering, if any, a signed counterpart, addressed to
such Holder or underwriter, of (i) an opinion of counsel to the Company, dated
the effective date of such registration statement (and, if such registration
includes an underwritten public offering, an opinion dated the date of the
closing under any underwriting agreement related thereto), and (ii) a "cold
comfort" letter dated the effective date of such registration statement (and, if
such registration includes an underwritten public offering, a letter dated the
date of the closing under the underwriting agreement) signed by the independent
public accountants who have issued a report on the Company's financial
statements included in such registration statement, in each case covering
substantially the same matters with respect to such registration statement (and
the prospectus included therein) and, in the case of such accountants' letter,
with respect to events subsequent to the date of such financial statements, as
are customarily covered in opinions of issuer's counsel and in accountants'
letters delivered to underwriters in underwritten public offerings of
securities. The Company shall also deliver promptly to each Holder participating
in the offering requesting the correspondence and memoranda described below and
to the managing underwriter copies of all correspondence between the Commission
and the Company, its counsel or auditors and all memoranda relating to
discussions with the Commission or its staff with respect to the registration
statement and permit each Holder and underwriter to do such investigation, upon
reasonable advance notice, with respect to information contained in or omitted
from the registration statement as it deems reasonably necessary to comply with
applicable securities laws or rules of the National Association of Securities

                                       6
<PAGE>

Dealers, Inc. ("NASD"). Such investigation shall include access to books,
records and properties and opportunities to discuss the business of the Company
with its officers and independent auditors, all to such reasonable extent and at
such reasonable times as any such Holder shall reasonably request, provided that
all such persons sign a confidentiality agreement.

          5.3.4 Underwriting Agreement. The Company shall enter into an
underwriting agreement with the managing underwriter(s) selected by the Majority
Holders whose Registrable Securities are being registered pursuant to Section
5.1, which managing underwriter shall be reasonably satisfactory to the Company.
Such agreement shall be reasonably satisfactory in form and substance to the
Company, each Holder and such managing underwriter, and shall contain such
representations, warranties and covenants by the Company and such other terms as
are customarily contained in agreements of that type used by the managing
underwriter. The Holders shall be parties to any underwriting agreement relating
to an underwritten sale of their Registrable Securities and may, at their
option, require that any or all of the representations, warranties and covenants
of the Company to or for the benefit of such underwriters shall also be made to
and for the benefit of such Holders. Such Holders shall not be required to make
any representations or warranties to or agreements with the Company or the
underwriter except as they may relate to such Holders, their shares and their
intended methods of distribution.

          5.3.5 Documents to be Delivered by Holder(s). Each of the Holder(s)
participating in any of the foregoing offerings shall furnish to the Company a
completed and executed questionnaire provided by the Company requesting
information customarily sought of selling securityholders.

6. Adjustments.

     6.1 Adjustments to Exercise Price and Number of Securities. The Exercise
Price and the number of Common Shares underlying the Warrant shall be subject to
adjustment from time to time as hereinafter set forth:

          6.1.1 Stock Dividends, Recapitalization, Reclassification, Split-Ups.
If after the date hereof, and subject to the provisions of Section 6.2 below,
the number of outstanding Common Shares is increased by a stock dividend payable
in Common Shares or by a split-up, recapitalization or reclassification of
Common Shares or other similar event, then, on the effective date thereof, the
number of Common Shares issuable on exercise of this Warrant shall be increased
in proportion to such increase in outstanding shares. For example, if the
Company declares a two-for-one stock dividend and at the time of such dividend
the Warrant is for the purchase of 1,000 Common Shares at $10.00 per share, upon
effectiveness of the dividend, the Warrant will be adjusted (disregarding for
purposes of this example that adjustments shall be rounded to the nearest cent,
as provided in Section 6.1.3) to allow for the purchase of 2,000 shares at $5.00
per share.

                                       7
<PAGE>

          6.1.2 Aggregation of Shares. If after the date hereof, and subject to
the provisions of Section 6.2, the number of outstanding Common Shares is
decreased by a consolidation, combination or reclassification of Common Shares
or other similar event, then, upon the effective date thereof, the number of
Common Shares issuable on exercise of the Warrant shall be decreased in
proportion to such decrease in outstanding shares.

          6.1.3 Adjustments in Exercise Price. Whenever the number of Common
Shares purchasable upon the exercise of this Warrant is adjusted, as provided in
this Section 6.1, the Exercise Price shall be adjusted (to the nearest cent) by
multiplying such Exercise Price immediately prior to such adjustment by a
fraction (x) the numerator of which shall be the number of Common Shares
purchasable upon the exercise of this Warrant immediately prior to such
adjustment, and (y) the denominator of which shall be the number of Common
Shares so purchasable immediately thereafter.

          6.1.4 Replacement of Securities upon Reorganization, etc. In case of
any reclassification or reorganization of the outstanding Common Shares other
than a change covered by Section 6.1.1 or 6.1.2 hereof or that solely affects
the par value of such Common Shares, or in the case of any merger or
consolidation of the Company with or into another corporation (other than a
consolidation or merger in which the Company is the continuing corporation and
that does not result in any reclassification or reorganization of the
outstanding Common Shares), or in the case of any sale or conveyance to another
corporation or entity of the property of the Company as an entirety or
substantially as an entirety in connection with which the Company is dissolved,
the Holder of this Warrant shall have the right thereafter (until the expiration
of the right of exercise of this Warrant) to receive upon the exercise hereof,
for the same aggregate Exercise Price payable hereunder immediately prior to
such event, the kind and amount of shares of stock or other securities or
property (including cash) receivable upon such reclassification, reorganization,
merger or consolidation, or upon a dissolution following any such sale or other
transfer, by a Holder of the number of Common Shares of the Company obtainable
upon exercise of this Warrant immediately prior to such event; and if any
reclassification also results in a change in Common Shares covered by Section
6.1.1 or 6.1.2, then such adjustment shall be made pursuant to Sections 6.1.1,
6.1.2, 6.1.3 and this Section 6.1.4. The provisions of this Section 6.1.4 shall
similarly apply to successive reclassifications, reorganizations, mergers or
consolidations, sales or other transfers.

          6.1.5 Changes in Form of Warrant. This form of Warrant need not be
changed because of any change pursuant to this Section, and Warrants issued
after such change may state the same Exercise Price and the same number of
Common Shares as are stated in the Warrants initially issued pursuant to this
Agreement. The acceptance by any Holder of the issuance of new Warrants
reflecting a required or permissive change shall not be deemed to waive any
rights to a prior adjustment or the computation thereof.

     6.2 Elimination of Fractional Interests. The Company shall not be required
to issue certificates representing fractions of Common Shares upon the exercise
or transfer of this Warrant, nor shall it be required to issue scrip or pay cash
in lieu of any fractional interests, it being the intent of the parties that all

                                       8
<PAGE>

fractional interests shall be eliminated by rounding any fraction up or down to
the nearest whole number of Common Shares or other securities, properties or
rights.

7. Reservation and Listing. The Company shall at all times reserve and keep
available out of its authorized Common Shares, solely for the purpose of
issuance upon exercise of the Warrants, such number of Common Shares or other
securities, properties or rights as shall be issuable upon the exercise thereof.
The Company covenants and agrees that, upon exercise of the Warrants and payment
of the Exercise Price therefor, all Common Shares and other securities issuable
upon such exercise shall be duly and validly issued, fully paid and
non-assessable and not subject to preemptive rights of any shareholder. As long
as the Warrants shall be outstanding, the Company shall use its reasonable best
efforts to cause all Common Shares issuable upon exercise of the Warrants to be
listed (subject to official notice of issuance) on all securities exchanges (or,
if applicable on Nasdaq) on which the Common Shares issued to the public in
connection herewith are then listed and/or quoted.

8. Certain Notice Requirements.

     8.1 Holder's Right to Receive Notice. Nothing herein shall be construed as
conferring upon the Holders the right to vote or consent or to receive notice as
a shareholder for the election of directors or any other matter, or as having
any rights whatsoever as a shareholder of the Company. If, however, at any time
prior to the expiration of the Warrants and their exercise, any of the events
described in Section 8.2 shall occur, then, in one or more of said events, the
Company shall give written notice of such event at least fifteen (15) days prior
to the date fixed as a record date or the date of closing the transfer books for
the determination of the shareholders entitled to such dividend, distribution,
conversion or exchange of securities or subscription rights, or entitled to vote
on such proposed dissolution, liquidation, winding up or sale. Such notice shall
specify such record date or the date of the closing of the transfer books, as
the case may be.

     8.2 Events Requiring Notice. The Company shall be required to give the
notice described in this Section 8 upon one or more of the following events: (i)
if the Company shall take a record of the holders of its Common Shares for the
purpose of entitling them to receive a dividend or distribution payable
otherwise than in cash, or a cash dividend or distribution payable otherwise
than out of retained earnings, as indicated by the accounting treatment of such
dividend or distribution on the books of the Company, or (ii) the Company shall
offer to all the holders of its Common Shares any additional shares of capital
stock of the Company or securities convertible into or exchangeable for shares
of capital stock of the Company, or any option, right or warrant to subscribe
therefor, or (iii) a dissolution, liquidation or winding up of the Company
(other than in connection with a consolidation or merger) or a sale of all or
substantially all of its property, assets and business shall be proposed.

     8.3 Notice of Change in Exercise Price. The Company shall, promptly after
an event requiring a change in the Exercise Price pursuant to Section 6 hereof,
send notice to the Holders of such event and change ("Price Notice"). The Price

                                       9
<PAGE>

Notice shall describe the event causing the change and the method of calculating
same and shall be certified as being true and accurate by the Company's
President and Chief Financial Officer.

     8.4 Transmittal of Notices. All notices, requests, consents and other
communications under this Warrant shall be in writing and shall be deemed to
have been duly made on the date of delivery if delivered personally or sent by
overnight courier, with acknowledgement of receipt to the party to which notice
is given, or on the fifth day after mailing if mailed to the party to whom
notice is to be given, by registered or certified mail, return receipt
requested, postage prepaid and properly addressed as follows: (i) if to the
registered Holder of the Warrant, to the address of such Holder as shown on the
books of the Company, or (ii) if to the Company, to its principal executive
office.

9. Miscellaneous.

     9.1 Amendments. The Company and the Underwriter may from time to time
supplement or amend this Warrant without the approval of any of the Holders in
order to cure any ambiguity, to correct or supplement any provision contained
herein that may be defective or inconsistent with any other provisions herein,
or to make any other provisions in regard to matters or questions arising
hereunder that the Company and the Underwriter may deem necessary or desirable
and that the Company and the Underwriter deem shall not adversely affect the
interest of the Holders. All other modifications or amendments shall require the
written consent of the party against whom enforcement of the modification or
amendment is sought.

     9.2 Headings. The headings contained herein are for the sole purpose of
convenience of reference, and shall not in any way limit or affect the meaning
or interpretation of any of the terms or provisions of this Warrant.

     9.3 Entire Agreement. This Warrant (together with the other agreements and
documents being delivered pursuant to or in connection with this Warrant)
constitutes the entire agreement of the parties hereto with respect to the
subject matter hereof, and supersedes all prior agreements and understandings of
the parties, oral and written, with respect to the subject matter hereof.

     9.4 Binding Effect. This Warrant shall inure solely to the benefit of and
shall be binding upon, the Holder and the Company and their respective
successors, legal representatives and assigns, and no other person shall have or
be construed to have any legal or equitable right, remedy or claim under or in
respect of or by virtue of this Warrant or any provisions herein contained.

     9.5 Governing Law; Submission to Jurisdiction. This Warrant shall be
governed by and construed and enforced in accordance with the laws of the State
of New York, without giving effect to principles of conflict of laws. The
Company hereby agrees that any action, proceeding or claim against it arising
out of, or relating in any way to this Warrant shall be brought and enforced in

                                       10
<PAGE>

the courts of the State of New York or of the United States of America for the
Southern District of New York, and irrevocably submits to such jurisdiction,
which jurisdiction shall be exclusive. The Company hereby waives any objection
to such exclusive jurisdiction and that such courts represent an inconvenient
forum. Any process or summons to be served upon the Company may be served by
transmitting a copy thereof by registered or certified mail, return receipt
requested, postage prepaid, addressed to it at the address described in Section
8 hereof. Such mailing shall be deemed personal service and shall be legal and
binding upon the Company in any action, proceeding or claim. The Company agrees
that the prevailing party(ies) in any such action shall be entitled to recover
from the other party(ies) all of its reasonable attorneys' fees and expenses
relating to such action or proceeding and/or incurred in connection with the
preparation therefor.

     9.6 Waiver, Etc. The failure of the Company or the Holder to at any time
enforce any of the provisions of this Warrant shall not be deemed or construed
to be a waiver of any such provision, nor to in any way affect the validity of
this Warrant or any provision hereof or the right of the Company or any Holder
to thereafter enforce each and every provision of this Warrant. No waiver of any
breach, non-compliance or non-fulfillment of any of the provisions of this
Warrant shall be effective unless set forth in a written instrument executed by
the party or parties against whom or which enforcement of such waiver is sought;
and no waiver of any such breach, non-compliance or non-fulfillment shall be
construed or deemed to be a waiver of any other or subsequent breach,
non-compliance or non-fulfillment.

     9.7 Exchange Agreement. As a condition of the Holder's receipt and
acceptance of this Warrant, Holder agrees that, at any time prior to the
complete exercise of this Warrant by Holder, if the Company and
EarlyBirdCapital, Inc. enter into an agreement ("Exchange Agreement") pursuant
to which they agree that all outstanding Warrants will be exchanged for
securities or cash or a combination of both, then the Holder shall agree to such
exchange and become a party to the Exchange Agreement.

                                       11
<PAGE>

     IN WITNESS WHEREOF, the Company has caused this Warrant to be signed by its
duly authorized officer as of the __ day of February, 2003.

                                CPI AEROSTRUCTURES, INC.

                                By:__________________________________
                                   Edward J. Fred
                                   President and Chief Financial Officer

                                       12

<PAGE>

Form to be used to exercise Warrant:

CPI Aerostructures, Inc.
200A Executive Drive
Edgewood, New York 11717

Date:_________________, 200__

     The undersigned hereby elects irrevocably to exercise the within Warrant
and to purchase _________ Common Shares of CPI Aerostructures, Inc. and hereby
makes payment of $____________ (at the rate of $_________ per Common Share) in
payment of the Exercise Price pursuant thereto. Please issue the Common Shares
as to which this Warrant is exercised in accordance with the instructions given
below.

                                       or

     The undersigned hereby elects irrevocably to exercise the within Warrant
and to purchase _________ Common Shares of CPI Aerostructures, Inc. by surrender
of the unexercised portion of the within Warrant (with a "Value" of $_______
based on a "Market Price" of $__________). Please issue the Common Shares as to
which this Warrant is exercised in accordance with the instructions given below.

                                                ------------------------------
                                                Signature

     NOTICE: The signature to this form must correspond with the name as written
upon the face of the within Warrant in every particular without alteration or
enlargement or any change whatsoever.

                   INSTRUCTIONS FOR REGISTRATION OF SECURITIES

Name              ________________________________________________________
                                    (Print in Block Letters)

Address           ________________________________________________________

<PAGE>

Form to be used to assign Warrant:

                                   ASSIGNMENT

     (To be executed by the registered Holder to effect a transfer of the within
Warrant):

     FOR VALUE RECEIVED,__________________________________ does hereby sell,
assign and transfer unto ______________________ the right to purchase
____________ Common Shares of CPI Aerostructures, Inc. ("Company") evidenced by
the within Warrant and does hereby authorize the Company to transfer such right
on the books of the Company.

Dated:___________________, 200_

                                              ------------------------------
                                              Signature

------------------------------
Signature Guaranteed

     NOTICE: The signature to this form must correspond with the name as written
upon the face of the within Warrant in every particular without alteration or
enlargement or any change whatsoever, and must be guaranteed by a bank, other
than a savings bank, or by a trust company or by a firm having membership on a
registered national securities exchange.

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