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Exhibit 4.3  

        The
issue of the Guaranty of this Note was approved by the Ministry of Finance and Public Credit of Mexico on January 31, 2002 pursuant to Official Communication
No. 305-I.2.1-24 and has been given Registration No. 57-2000-FPG. 

        UNLESS
THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, 55 WATER STREET, NEW YORK, NEW YORK 10004, A NEW YORK CORPORATION ("DTC"), TO THE
ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IN EXCHANGE FOR THIS CERTIFICATE OR ANY PORTION HEREOF IS REGISTERED IN THE NAME OF CEDE & CO.
OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF CEDE & CO. (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF CEDE & CO.), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON OTHER THAN DTC OR A NOMINEE THEREOF IS WRONGFUL INASMUCH AS THE REGISTERED
OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 

        THIS
NOTE IS A U.S. GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE REFERRED TO HEREINAFTER. THIS NOTE MAY NOT BE EXCHANGED, IN WHOLE OR IN PART, FOR A NOTE REGISTERED IN THE NAME OF
ANY PERSON OTHER THAN DTC OR A NOMINEE THEREOF EXCEPT IN THE LIMITED CIRCUMSTANCES SET FORTH IN SECTION 3.05(a) OF THE INDENTURE. 

 
 
 

PEMEX PROJECT FUNDING MASTER TRUST
  
    MEDIUM-TERM NOTES, SERIES A
  
    Due from 1 Year to 30 Years from Date of Issue    
    

        Unconditionally Guaranteed by
  PETROLEOS MEXICANOS
  (A Decentralized Public Entity of
the

Federal Government of the United Mexican States)  

U.S. $1,000,000,000

7.875% Notes due 2009  

REGISTERED

NO. R-[    •    ] 

        The
following summary of terms is subject to the information set forth on the reverse hereof and Schedule I hereto. 

	

PRINCIPAL AMOUNT:	
 	

U.S. $[            ]
	

SPECIFIED CURRENCY:	
 	

U.S. dollars ("U.S. $" or "$")
	

STATED MATURITY:	
 	

February 1, 2009
	

ISSUE DATE:	
 	

[            ], 2003
	

CUSIP NO.:	
 	

706451 AE 1
	

INTEREST PAYMENT DATES:	
 	

February 1 and August 1 of each year, commencing February 1, 2004
	

PRINCIPAL PAYING AGENT AND TRANSFER AGENT:	
 	

Deutsche Bank Trust Company Americas, New York
	

PAYING AGENTS AND TRANSFER AGENTS:	
 	

Deutsche Bank AG, London Branch Deutsche Bank Luxembourg S.A.

        Pemex
Project Funding Master Trust (herein called "Pemex Project Funding Master Trust" or the "Issuer," which terms include any successor entity under the Indenture hereinafter referred
to), a statutory trust organized under the laws of the State of Delaware, for value received, hereby promises, in accordance with and subject to the provisions set forth on the face and reverse
hereof, to pay to Cede & Co. or registered assigns, the principal amount set forth above at the Stated Maturity specified above or on such earlier date as the same may become payable in
accordance with the terms hereof the principal amount specified above in the Specified Currency specified above or such other redemption amount as may be specified herein, and to pay in arrears on the
dates specified herein interest on such principal amount at the rate or rates specified herein, and accruing from the date specified herein, until the principal amount hereof is paid or made available
for payment. 

        Unless
defined herein, capitalized terms used herein shall have the meanings assigned to them on the reverse hereof and in the indenture dated as of July 31, 2000 (the
"Indenture"), among the Issuer, Petróleos Mexicanos, as Guarantor, and Deutsche Bank Trust Company Americas (formerly Bankers 

F-2

 

Trust
Company), as Trustee (the "Trustee", which expression shall include any successor trustee under the Indenture). 

        Reference
is hereby made to the further provisions of this Note set forth on the reverse hereof, which further provisions shall for all purposes have the same effect as if set forth at
this place. 

        Unless
the certificate of authentication hereon has been executed by the Trustee referred to on the reverse hereof by manual signature, this Note shall not be entitled to any benefit
under the Indenture or be valid or obligatory for any purpose. 

        IN
WITNESS WHEREOF, the Issuer has caused this Note to be duly executed. 

	Dated:	 	 	 
	

 	
 	

PEMEX PROJECT FUNDING

        MASTER TRUST
	 	 	by	THE BANK OF NEW YORK

not in its individual capacity,

but solely as Managing Trustee
	

 	
 	

By:	

 Name:

Title:

 
 

CERTIFICATE OF AUTHENTICATION    
    

        This is one of the series of Securities designated herein issued under the within-mentioned Indenture. 

	Dated:	 	 	 
	

 	
 	

DEUTSCHE BANK TRUST COMPANY

AMERICAS
	 	 	as Trustee
	

 	
 	

By:	

 Authorized Signatory

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REVERSE OF NOTE    
    

        1.     This
Note is one of a duly authorized Series of Securities of Pemex Project Funding Master Trust (the "Issuer") designated as its 7.875% Notes due 2009 (the "Notes"),
issued and to be issued in accordance with an indenture, dated as of July 31, 2000 (herein called the "Indenture"), among the Issuer, Petróleos Mexicanos, as Guarantor (the
"Guarantor"), and Deutsche Bank Trust Company Americas (formerly Bankers Trust Company), as Trustee (herein called the "Trustee", which term includes any successor trustee under the Indenture), copies
of which Indenture are on file and available for inspection at the corporate trust office of the Trustee in the Borough of Manhattan, The City of New York and, so long as the Notes are listed on the
Luxembourg Stock Exchange and such Exchange shall so require, at the office of the Paying Agent in Luxembourg. Reference is hereby made to the Indenture for a statement of the respective rights,
limitations of rights, duties and immunities thereunder of the Issuer and the holders of the Notes and of the terms upon which the Notes are, and are to be, authenticated and delivered. The Notes were
originally issued pursuant to an exchange offer made to all holders of the Issuer's 7.875% Notes due 2009 (the "Old Notes" and, together with the Notes, the "2009 Notes"). The 2009 Notes are limited
to an aggregate initial principal amount of U.S. $1,000,000,000, subject to further increase as provided in Paragraph 10 below. Capitalized terms not otherwise defined herein or on the face of
this Note shall have the meanings assigned to them in the Indenture. 

        The
Notes are direct, unsecured and unsubordinated Public External Indebtedness (as defined in Paragraph 8 below) of the Issuer for money borrowed and will rank  pari passu with each other and with all
other present and future unsecured and unsubordinated Public External Indebtedness for money borrowed of the
Issuer. The Notes are not obligations of, or guaranteed by, the United Mexican States ("Mexico"). 

        Each
of the Notes will have the benefit of the unconditional guaranty endorsed hereon (the "Guaranty") as to punctual payment when due of all amounts of principal of and interest
(including Additional Amounts) and premium (if any) on the Notes, and any other amounts payable by the Issuer under the Notes or the Indenture. The Guarantor's payment obligations under the Guaranty
and the Indenture will have the benefit of an unconditional guaranty as to payment of principal and interest (including Additional Amounts) jointly and severally from each of
Pemex-Exploración y Producción, Pemex-Refinación and Pemex-Gas y Petroquímica Básica (each, a "Subsidiary
Guarantor" and together, the "Subsidiary Guarantors"), pursuant to a Guaranty Agreement, dated July 29, 1996 (the "Subsidiary Guaranty"), among the Guarantor and the Subsidiary Guarantors. The
Guarantor has designated its Guaranty of each of the Notes and the Indenture as obligations of the Guarantor
entitled to the benefits of the Subsidiary Guaranty, pursuant to certificates of designation, dated November 14, 2001 and February 1, 2002 (the "Certificates of Designation"). 

        The
Notes are denominated in U.S. dollars or in the Specified Currency specified on the face hereof. Payments on the Notes will be made in the Specified Currency specified on the face
hereof. The Notes are issuable only in fully registered form, without interest coupons. Notes are issuable in authorized denominations of U.S. $10,000 and integral multiples of U.S. $1,000 in excess
thereof. 

        2.     (a)    This
Note will bear interest from August 1, 2003 or from the most recent Interest Payment Date to which interest has been paid or duly provided
for, at the interest rate per annum specified on the face hereof, until the principal hereof has been paid or duly made available for payment. The interest on this Note shall be payable in arrears on
each Interest Payment Date specified on the face hereof, and shall be computed on the basis of a 360-day year consisting of twelve 30-day months. Any payment on this Note due
on any day which is not a Business Day in The City of New York or the place of payment need not be made on such day, but may be made on the next succeeding Business Day with the same force and effect
as if made on the due date, and no interest shall accrue for the period from and after such due date. "Business Day", as used herein with respect to any 

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particular
location, means each Monday, Tuesday, Wednesday, Thursday and Friday which is not a day on which banking institutions in such location are authorized or obligated by law to close in such
location. 

        (b)   The
interest so payable, and punctually paid or duly provided for, on any Interest Payment Date will be paid to the person in whose name this Note (or one or more
predecessor Notes) is registered at the close of business on the 15th day (whether or not a Business Day) (the "Regular Record Date") next preceding such Interest Payment Date;  provided that interest
payable at Stated Maturity will be payable to the person to whom principal shall be payable; and  provided, further, that if this Note is a Global Security,
any payment of interest on this Note shall be
made to the applicable Depositary or its nominee, as the registered owner hereof. Unless otherwise specified on the face hereof, the first payment of interest on any Note originally issued between a
Regular Record Date and an Interest Payment Date will be made on the Interest Payment Date following the next succeeding Regular Record Date to the registered owner on such next succeeding Regular
Record Date. Any such interest not so punctually paid or duly provided for will forthwith cease to be payable to the holder on such Regular Record Date and may either be paid to the person in whose
name this Note (or one or more predecessor Notes) is registered at the close of business on a special record date for the payment of such defaulted interest to be fixed by the Trustee, notice whereof
shall be given to holders of Notes not less than 10 days prior to such special record date, or be paid at any time in any other lawful manner not inconsistent with the requirements of any
securities exchange on which the Notes may be listed, and upon such notice as may be required by such exchange. 

        (c)   Payment
of principal (and premium, if any) and any interest due with respect to the Notes at Stated Maturity will be made in immediately available funds upon surrender
of such Notes at the corporate trust office of the Trustee in the Borough of Manhattan, The City of New York, or at the specified office of any other Paying Agent,  provided that the Note is presented to
the Paying Agent in time for the Paying Agent to make such payments in such funds in accordance with its normal
procedures. Payments of principal (and premium, if any) and any interest in respect of this Note to be made other than at Stated Maturity or upon redemption will be made by check mailed on or before
the due date for such payments to the address of the persons entitled thereto as they appear in the Security Register; provided that (i) the
applicable Depositary, as holder of the Global Securities, shall be entitled to receive payments of interest by wire transfer of immediately available funds and (ii) a holder of U.S.
$10,000,000 in aggregate principal or face amount of Notes having the same Interest Payment Date shall be entitled to receive payments of interest by wire transfer to an account maintained by such
holder at a bank located in the United States as may have been appropriately designated by such person to the Paying Agent in writing no later than the relevant Regular Record Date. Unless such
designation is revoked, any such designation made by such holder with respect to such Note shall remain in effect with respect to any further payments with respect to such Note payable to such holder. 

        3.     (a)    The
Issuer shall maintain in the Borough of Manhattan, The City of New York, an office or agency where Notes may be surrendered for registration of
transfer or exchange. The Issuer has initially appointed the corporate trust office of the Trustee as its agent in the Borough of Manhattan, The City of New York, for such purpose and has agreed to
cause to be kept at such office a register in which, subject to such reasonable regulations as it may prescribe, the Issuer will provide for the registration of Notes and of transfers of Notes. The
Issuer reserves the right to vary or terminate the appointment of the Trustee as security registrar or of any Transfer Agent or to appoint additional or other registrars or Transfer Agents or to
approve any change in the office through which any security registrar or any Transfer Agent acts, provided that there will at all times be a security registrar in the Borough of Manhattan, The City of
New York and, so long as the Notes are listed on the Luxembourg Stock Exchange and such Exchange shall so require, a Transfer Agent in Luxembourg. 

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        (b)   The
transfer or exchange of a Note is registrable on the aforementioned register upon surrender of such Note at the corporate trust office of the Trustee or any Transfer
Agent duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Issuer and the Trustee duly executed by the holder thereof or his attorney duly authorized in
writing. Upon such surrender of a Note for registration of transfer, the Issuer shall execute one or more new Notes of any authorized denominations and of a like form, tenor and terms and a like
aggregate principal amount, the Guarantor shall execute the Guaranty endorsed thereon, and the Trustee shall authenticate and deliver in the name of the designated transferee or transferees, such new
Notes, dated the date of authentication thereof. At the option of the holder upon request confirmed in writing, Notes may be exchanged for Notes of any authorized denominations and of a like form,
tenor and terms and a like aggregate principal amount upon surrender of the Notes to be exchanged at the office of any Transfer Agent or at the corporate trust office of the Trustee. Whenever any
Notes are so surrendered for exchange, the Issuer shall execute the Notes which the holder making the exchange is entitled to receive, the Guarantor shall execute the Guaranty endorsed thereon, and
the Trustee shall authenticate and deliver such Notes. 

        (c)   Any
registration of transfer or exchange will be effected upon the Transfer Agent or the Trustee, as the case may be, being satisfied with the documents of title and
identity of the person making the request and subject to such reasonable regulations as the Issuer may from time to time agree with any Transfer Agents and the Trustee. 

        (d)   In
the event of a redemption of Notes in part (if permitted by the provisions hereof), the Issuer shall not be required (i) to register the transfer of or
exchange any Note during a period beginning at the opening of business 15 days before, and continuing until, the date on which notice is given identifying the Notes to be redeemed, or
(ii) to register the transfer of or exchange any Note, or portion thereof, called for redemption. 

        (e)   All
Notes issued upon any registration of transfer or exchange of Notes shall be the valid obligations of the Issuer, evidencing the same debt, and entitled to the same
benefits, as the Notes surrendered upon such registration of transfer or exchange. No service charge shall be made for any registration of transfer or exchange, but the Issuer may require payment of a
sum sufficient to cover any stamp tax or other governmental charge payable in connection therewith, other than an exchange in connection with a partial redemption of a Note not involving any
registration of a transfer. 

        Prior
to due presentment of this Note for registration of transfer, the Issuer, the Guarantor, each Subsidiary Guarantor, the Trustee and any agent of the Issuer, the Guarantor, any
Subsidiary Guarantor or the Trustee may treat the person in whose name this Note is registered as the owner hereof for all purposes, whether or not this Note be overdue, and neither the Issuer, the
Guarantor, any Subsidiary Guarantor, the Trustee nor any such agent shall be affected by any notice to the contrary. 

        4.     The
Issuer shall pay to the Trustee at its principal office in the Borough of Manhattan, The City of New York, on or prior to 11:00 a.m., New York City time, on
each Interest Payment Date, any redemption date and at the Stated Maturity of the Notes, in such amounts sufficient (with any amounts then held by the Trustee and available for the purpose) to pay the
interest on, the redemption price of and accrued interest (if the redemption date is not an Interest Payment Date) on, and the principal of, the Notes due and payable on such Interest Payment Date,
redemption date or Stated Maturity, as the case may be. The Trustee shall apply the amounts so paid to it to the payment of such interest, redemption price and principal in accordance with the terms
of the Notes. Any monies paid by the Issuer to the Trustee for the payment of the principal, premium (if any) or interest on any Notes and remaining unclaimed at the end of two years after such
principal (or premium, if any) or interest shall have become due and payable (whether at the Stated Maturity, upon call for redemption or otherwise) shall then be repaid to the Issuer upon its written
request, and upon such repayment all liability of the 

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Trustee
with respect thereto shall cease, without, however, limiting in any way any obligation the Issuer may have to pay the principal of (and premium, if any) and interest on each Note as the same
shall become due. Notwithstanding the foregoing, the right to receive any payment of principal of or interest on the Notes will become void at the end of five years after the due date thereof. 

        5.     (a)    The
Issuer will pay all stamp and other duties, if any, which may be imposed by the United States or any political subdivision thereof or taxing
authority of or in the foregoing with respect to the Indenture or the issuance of this Note. Except as otherwise provided herein, the Issuer shall not be required to make any payment with respect to
any tax, assessment or other governmental charge imposed by any government or any political subdivision or taxing authority thereof or therein. 

        (b)   The
Issuer, or, in the case of a payment by the Guarantor or a Subsidiary Guarantor, such Guarantor or Subsidiary Guarantor, will pay to the holder of this Note such
additional amounts ("Additional Amounts") as may be necessary in order that every net payment made by the Issuer, the Guarantor or a Subsidiary Guarantor on this Note after deduction or withholding
for or on account of any present or future tax, assessment or other governmental charge imposed upon or as a result of such payment by Mexico or any political subdivision or taxing authority thereof
or therein ("Mexican Withholding Taxes"), will not be less than the amount then due and payable on this Note. The foregoing obligation to pay Additional Amounts, however, will not apply to
(i) any Mexican Withholding Taxes that would not have been imposed or levied on the holder of this Note but for the existence of any present or former connection between such holder and Mexico
or any political subdivision or territory or possession thereof or area subject to its jurisdiction, including, without limitation, such holder (A) being or having been a citizen or resident
thereof, (B) maintaining or having maintained an office, permanent establishment, fixed base or branch therein, or (C) being or having been present or engaged in trade or business
therein, except for a connection solely arising from the mere ownership of, or receipt of payment under, this Note; (ii) except as otherwise provided, any estate, inheritance, gift, sales,
transfer or personal property or similar tax, assessment or other governmental charge; (iii) any Mexican Withholding Taxes that are imposed or levied by reason of the failure by such holder to
comply with any certification, identification, information, documentation, declaration or other reporting requirement that is required or imposed by a statute, treaty, regulation, general rule or
administrative practice as a precondition to exemption from, or reduction in the rate of, the imposition, withholding or deduction of any Mexican Withholding Taxes;  provided that at least 60 days
prior to (A) the first payment date with respect to which the Issuer, the Guarantor or a Subsidiary
Guarantor shall apply this clause (iii) and, (B) in the event of a change in such certification, identification, information, documentation, declaration or other reporting requirement,
the first payment date subsequent to such change, the Issuer, the Guarantor or a Subsidiary Guarantor, as the case may be, shall have notified the Trustee in writing that the holders of Notes will be
required to provide such certification, identification, information or documentation, declaration or other reporting; (iv) any Mexican Withholding Taxes imposed at a rate in excess of 4.9% in
the event that such holder has failed to provide on a timely basis, at the reasonable request of the Issuer, information or documentation (not described in clause (iii) above) concerning such
holder's eligibility for benefits under an income tax treaty to which Mexico is a party that is necessary to determine the appropriate rate of deduction or withholding of Mexican taxes under any such
treaty; (v) any Mexican Withholding Taxes that would not have been so imposed but for the presentation by such holder of this Note for payment on a date more than 15 days after the date
on which such payment became due and payable or the date on which payment thereof is duly provided for, whichever occurs later; or (vi) any payment on this Note to any holder who is a fiduciary
or partnership or other than the sole beneficial owner of any such payment, to the extent that a beneficiary or settlor with respect to such fiduciary, a member of such a partnership or the beneficial
owner of such payment would not have been entitled to the Additional Amounts had such beneficiary, settlor, member or beneficial owner been the holder of this Note. All references in this Note or in
the Indenture to principal, premium, if any, and interest in 

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respect
of Notes shall, unless the context otherwise requires, be deemed to mean and include all Additional Amounts, if any, payable in respect thereof as set forth in this paragraph (b). 

        (c)   Notwithstanding
the foregoing, the limitations on the Issuer's, the Guarantor's and the Subsidiary Guarantors' obligation to pay Additional Amounts set forth in clauses
(iii) and (iv) above shall not apply if the provision of the certification, identification, information, documentation, declaration or other evidence described in such clauses
(iii) and (iv) would be materially more onerous, in form, in procedure or in the substance of information disclosed, to a holder or beneficial owner of this Note (taking into account any
relevant differences between United States and Mexican law, regulation or administrative practice) than comparable information or other applicable reporting requirements imposed or provided for under
United States federal income tax law (including the United States-Mexico Income Tax Treaty), regulation (including proposed regulations) and administrative practice. In addition, the limitations on
the Issuer's, the Guarantor's and the Subsidiary Guarantors' obligation to pay Additional Amounts set forth in clauses (iii) and (iv) above shall not apply if Rule 3.25.15
published in the Official Gazette of the Federation on May 30, 2002, or a substantially similar successor of such rule is in effect, unless (A) the provision of the certification,
identification, information, documentation, declaration or other evidence described in clauses (iii) and (iv) is expressly required by statute, regulation, general rules or
administrative practice in order to apply Rule 3.25.15 (or a substantially similar successor of such rule), the Issuer, the Guarantor or the applicable Subsidiary Guarantor cannot obtain such
certification, identification, information, documentation, declaration or evidence, or satisfy any other reporting requirements, on its own through reasonable diligence and the Issuer, the Guarantor
or the applicable Subsidiary Guarantor otherwise would meet the requirements for application of Rule 3.25.15 (or such successor of such rule) or (B) in the case of a holder or beneficial
owner of a Note that is a pension fund or other tax-exempt organization, such holder or beneficial owner would be subject to Mexican Withholding Taxes at a rate less than that provided by
Rule 3.25.15 if the information, documentation or other evidence required under clause (iv) above were provided. In addition, clause (iii) above shall not be construed to require
that a non-Mexican pension or retirement fund, a non-Mexican tax-exempt organization or a non-Mexican financial institution or any other holder or
beneficial owner of this Note register with the Ministry of Finance and Public Credit of Mexico for the purpose of establishing eligibility for an exemption from or reduction of Mexican Withholding
Taxes. 

        (d)   The
Issuer, the Guarantor or a Subsidiary Guarantor, as the case may be, will, upon written request, provide the Trustee, the holders and the Paying Agents with a duly
certified or authenticated copy of an original receipt of the payment of Mexican Withholding Taxes which such Issuer, Guarantor of Subsidiary Guarantor has withheld or deducted in respect of any
payments made under or with respect to the Notes, the Guaranty or the Subsidiary Guaranty, as the case may be. Any reference herein or in the Indenture to principal, interest, Redemption Price or any
other amount payable under or with respect to the Notes will be deemed also to refer to any Additional Amounts which may be payable under the undertakings referred to herein. 

        (e)   In
the event that Additional Amounts actually paid with respect to this Note are based on rates of deduction or withholding of Mexican Withholding Taxes in excess of the
appropriate rate applicable to the holder of this Note, and, as a result thereof, such holder is entitled to make a claim for a refund or credit of such excess, then such holder shall, by accepting
this Note, be deemed to have assigned and transferred all right, title and interest to any such claim for a refund or credit of such excess to the Issuer, the Guarantor or the applicable Subsidiary
Guarantor, as the case may be. However, by making such assignment, the holder makes no representation or warranty that the Issuer, the Guarantor or the applicable Subsidiary Guarantor, as the case may
be, will be entitled to receive such claim for a refund or credit and incurs no other obligation with respect thereto. 

        6.     (a)    This
Note may not be redeemed prior to the Stated Maturity, except as specified in paragraph (b) below. 

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        (b)   The
Notes may be redeemed at the option of the Issuer in whole, but not in part, at any time, together, if applicable, with interest accrued to but excluding the date
fixed for redemption, at par, on giving not less than 30 nor more than 60 days' notice to the holders of the Notes (which notice shall be irrevocable), if (i) the Issuer or the Guarantor
certifies to the Trustee immediately prior to the giving of such notice that it has or will become obligated to pay Additional Amounts in excess of the Additional Amounts that it would be obligated to
pay if payments (including payments of interest) on the Notes (or payments under the Guaranties with respect to interest on the Notes) were subject to a tax at a rate of 10%, as a result of any change
in, amendment to, or lapse of, the laws, regulations or rulings of Mexico or any political subdivision or any taxing authority thereof or therein affecting taxation, or any change in, or amendment to,
an official interpretation or application of such laws, regulations or rulings, which change or amendment becomes effective on or after the date of issuance of the Notes and (ii) prior to the
publication of any notice of redemption, the Issuer or the Guarantor shall deliver to the Trustee an Officer's Certificate stating that the obligation referred to in (i) above cannot be avoided
by the Issuer or the Guarantor, as the case may be, taking reasonable measures available to it, and the Trustee shall be entitled to accept such certificate as sufficient evidence of the satisfaction
of the condition precedent set out in (i) above in which event it shall be conclusive and binding on the holders of the Notes; provided that no
such notice of redemption shall be given earlier than 90 days prior to the earliest date on which the Issuer or the Guarantor, as the case may be, would be obligated but for such redemption to
pay such Additional Amounts were a payment in respect of the Notes then due and, at the time such notice is given, such obligation to pay such Additional Amounts remains in effect. 

        (c)   The
Issuer, the Guarantor or any Subsidiary Guarantor may at any time purchase Notes at any price in the open market or otherwise. Notes so purchased by the Issuer, the
Guarantor or any Subsidiary Guarantor may be held, resold (subject to compliance with applicable securities and tax laws) or surrendered to the Trustee for cancellation. 

        7.     This
Note is not repayable prior to the Stated Maturity at the option of the holder, except as set forth in Paragraph 8. 

        8.     If
any of the following events (each, an "Event of Default") occurs and is continuing, the Trustee, if so requested in writing by holders of at least 20% in principal
amount of the 2009 Notes then outstanding, voting as a single series, shall give notice to the Issuer that the Notes are, and they shall immediately become, due and payable at their principal amount
together with accrued interest: 

        (a)    Non-Payment:    default is made in payment of principal of or any interest on any of the Notes when
due and such failure continues, in the case of non-payment of principal for seven days, and of interest for fourteen days after the due date; or 

        (b)    Breach of Other Obligations:    the Issuer or the Guarantor defaults in performance or observance of or
compliance with any of its other obligations set out in the Notes or the Guaranties or (insofar as it concerns the Notes or the Guaranties) the Indenture which default is incapable of remedy or, if
capable of remedy, is not remedied within 30 days after notice of such default shall have been given to the Issuer, the Guarantor and the Subsidiary Guarantors by the Trustee; or 

        (c)    Cross-Default:    default by the Issuer, the Guarantor or any of the Guarantor's Material Subsidiaries (as
defined below) or the Subsidiary Guarantors or any of them or any of their respective Material Subsidiaries in the payment of the principal of, or interest on, any Public External Indebtedness (as
defined below) of, or guaranteed by, the Issuer, the Guarantor or any of the Guarantor's Material Subsidiaries or the Subsidiary Guarantors or any of them or any of their respective Material
Subsidiaries, in an aggregate principal amount exceeding U.S. $40,000,000 or its equivalent, when and as the same shall become due and payable, if such default shall continue for more than the period
of grace, if any, originally applicable thereto; or 

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        (d)    Enforcement Proceedings:    a distress or execution or other legal process is levied or enforced or sued out
upon or against any substantial part of the property, assets or revenues of the Issuer, the Guarantor or any of the Guarantor's Material Subsidiaries or the Subsidiary Guarantors or any of them or any
of their respective Material Subsidiaries and is not discharged or stayed within 60 days of having been so levied, enforced or sued out; or 

        (e)    Security Enforced:    an encumbrancer takes possession or a receiver, manager or other similar officer is
appointed of the whole or any substantial part of the undertaking, property, assets or revenues of the Issuer, the Guarantor or any of the Guarantor's Material Subsidiaries or the Subsidiary
Guarantors or any of them or any of their respective Material Subsidiaries; or 

        (f)    Insolvency:    the Issuer, the Guarantor or any of the Guarantor's Material Subsidiaries or the Subsidiary
Guarantors or any of them or any of their respective Material Subsidiaries becomes insolvent or is generally unable to pay its debts as they mature or applies for or consents to or suffers the
appointment of an administrator, liquidator, síndico, conciliador, interventor or receiver of the Issuer, the Guarantor or any of the
Guarantor's Material Subsidiaries or the Subsidiary Guarantors or any of them or any of their respective Material Subsidiaries or the whole or any substantial part of the undertaking, property, assets
or revenues of the Issuer, the Guarantor or any of the Guarantor's Material Subsidiaries or the Subsidiary Guarantors or any of them or any of their respective Material Subsidiaries or takes any
proceeding under any law for a readjustment or deferment of its obligations
or any part of them for bankruptcy, reorganization, concurso mercantil, dissolution or liquidation or makes or enters into a general assignment or an
arrangement or composition with or for the benefit of its creditors or stops or threatens to cease to carry on its business or any substantial part of its business; or 

        (g)    Winding-up:    an order is made or an effective resolution passed for winding up the Issuer, the
Guarantor or any of the Guarantor's Material Subsidiaries or the Subsidiary Guarantors or any of them or any of their respective Material Subsidiaries; or 

        (h)    Moratorium:    a general moratorium is agreed or declared in respect of any External Indebtedness (as defined
below) of the Issuer, the Guarantor or any of the Guarantor's Material Subsidiaries or the Subsidiary Guarantors or any of them or any of their respective Material Subsidiaries; or 

        (i)    Authorization and Consents:    any action, condition or thing (including the obtaining or effecting of any
necessary consent, approval, authorization, exemption, filing, license, order, recording or registration) at any time required to be taken, fulfilled or done in order (i) to enable the Issuer
lawfully to enter into, exercise its rights and perform and comply with its obligations under the Notes or the Indenture, (ii) to enable the Guarantor lawfully to enter into, exercise its
rights and perform and comply with its obligations under the Guaranties relating to the Notes, the Indenture or the Subsidiary Guaranty Agreement in relation to the Notes and the related Guaranties,
(iii) to enable any of the Subsidiary Guarantors lawfully to enter into, perform and comply with its obligations under the Subsidiary Guaranty Agreement in relation to the Notes, the related
Guaranties or the Indenture and (iv) to ensure that those obligations are legally binding and enforceable, is not taken, fulfilled or done within 30 days of its being so required; or 

        (j)    Illegality:    it is or becomes unlawful for (i) the Issuer to perform or comply with one or more of its
obligations under any of the Notes or the Indenture, (ii) the Guarantor to perform or comply with any of its obligations under the Indenture, the Guaranties or the Subsidiary Guaranty Agreement
with respect to the Notes, the related Guaranties or the Indenture, or (iii) the Subsidiary Guarantors or any of them to perform or comply with one or more of its obligations under the
Subsidiary Guaranty Agreement with respect to the Notes, the related Guaranties or the Indenture; or 

R-7

 

        (k)    Control:    the Guarantor ceases to be a decentralized public entity of the Government or the Government
otherwise ceases to control the Guarantor or any Subsidiary Guarantor; or the Issuer, the Guarantor or any of the Subsidiary Guarantors is dissolved, disestablished or suspends its respective
operations, and such dissolution, disestablishment or suspension of operations is material in relation to the business of the Issuer, the Guarantor and the Subsidiary Guarantors taken as a whole; or
the Guarantor and the Subsidiary Guarantors cease to be the entities which have the exclusive right and authority to conduct on behalf of Mexico the activities of exploration, exploitation, refining,
transportation, storage, distribution and first-hand sale of crude oil and exploration, exploitation, production and first-hand sale of natural gas, as well as the
transportation and storage inextricably linked with such exploitation and production; or the Issuer ceases to be controlled by the Guarantor; or 

        (l)    Disposals:    

        (i)    the
Guarantor ceases to carry on all or a substantial part of its business, or sells, transfers or otherwise disposes (whether voluntarily or involuntarily) of all or
substantially all of its assets (whether by one transaction or a series of transactions whether related or not) other than (A) solely in connection with the implementation of the  Ley Orgánica de Petróleos
Mexicanos y Organismos Subsidiarios or (B) to a Subsidiary Guarantor; or 

        (ii)   any
Subsidiary Guarantor ceases to carry on all or a substantial part of its business, or sells, transfers or otherwise disposes (whether voluntarily or involuntarily)
of all or substantially all of its assets (whether by one transaction or a series of transactions whether related or not) and such cessation, sale, transfer or other disposal is material in relation
to the business of the Guarantor and the Subsidiary Guarantors taken as a whole; or 

        (m)    Analogous Events:    any event occurs which under the laws of Mexico has an analogous effect to any of the
events referred to in paragraphs (d) to (g) above; or 

        (n)    Guaranties:    the Guaranties or the Subsidiary Guaranty Agreement is not (or is claimed by the Guarantor or
any of the Subsidiary Guarantors not to be) in full force and effect. 

        "External
Indebtedness" means Indebtedness which is payable, or at the option of its holder may be paid, (i) in a currency or by reference to a currency other than the currency of
Mexico, (ii) to a person resident or having its head office or its principal place of business outside Mexico and (iii) outside the territory of Mexico. 

        "Guarantee"
means any obligation of a person to pay the Indebtedness of another person, including without limitation: 

        (i)    an
obligation to pay or purchase such Indebtedness; or 

        (ii)   an
obligation to lend money or to purchase or subscribe for shares or other securities or to purchase assets or services in order to provide funds for the payment of
such Indebtedness; or 

        (iii)  any
other agreement to be responsible for such Indebtedness. 

        "Indebtedness"
means any obligation (whether present or future, actual or contingent) for the payment or repayment of money which has been borrowed or raised (including money raised by
acceptances and leasing). 

        "Public
External Indebtedness" means any External Indebtedness which is in the form of, or represented by, notes, bonds or other securities which are for the time being quoted, listed or
ordinarily dealt in on any stock exchange. 

R-8

 

        "Subsidiary"
means, in relation to any person, any other person (whether or not now existing) which is controlled directly or indirectly by, or more than 50 percent of whose
issued equity share capital (or equivalent) is then held or beneficially owned by, the first person and/or any one or more of the first person's Subsidiaries, and "control" means the power to appoint
the majority of the members of the governing body or management of, or otherwise to control the affairs and policies of, that person. 

        "Material
Subsidiaries" means, at any time, each of the Subsidiary Guarantors and any Subsidiary of the Guarantor or any of the Subsidiary Guarantors having, as of the end of the most
recent fiscal quarter of the Guarantor, total assets greater than 12% of the total assets of the Guarantor, the Subsidiary Guarantors and their Subsidiaries on a consolidated basis. 

        After
any such acceleration has been made, but before a judgment or decree for the payment of money due based on acceleration has been obtained by the Trustee, the holders of a majority
in aggregate principal amount of the 2009 Notes then outstanding, voting as a single series, may rescind and annul such acceleration in writing if all Events of Default, other than the
non-payment of the principal of the Notes that have become due solely by such declaration of acceleration, have been cured or waived as provided in the Indenture. 

        9.     The
Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Issuer and the
Guarantor and the rights of the holders of the Notes to be affected under the Indenture at any time by the Issuer, the Guarantor and the Trustee with the consent of the holders of not less than a
majority in principal amount of the 2009 Notes, voting as a single series. The Indenture also contains provisions permitting the holders of specified percentages in principal amount of the 2009 Notes
at the time Outstanding, on behalf of the holders of all Notes, to waive compliance by the Issuer or the Guarantor with certain provisions of the Indenture and certain past defaults under the
Indenture or the Notes and their consequences. Any such consent or waiver by the holder of this Note shall be conclusive and binding upon such holder and upon all future holders of this Note and of
any Note issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Note. 

        10.   The
Issuer may from time to time without the consent of any holder of Notes create and issue additional notes having the same terms and conditions as Notes previously
issued (or the same except the first payment of interest or the issue price), which additional notes may be consolidated to form a single series with the outstanding Notes. 

        11.   No
reference herein to the Indenture and no provision of this Note or of the Indenture shall alter or impair the obligations of the Issuer or the Guarantor, which are
absolute and unconditional, to pay the principal of and interest on this Note at the times, place and rate, and in the coin or currency, herein prescribed. 

        12.   The
Bank of New York is executing this Note not in its individual capacity but solely as Managing Trustee of the Issuer and in no event shall the The Bank of New York
have any liability for the representations, warranties, covenants, agreements or other obligations of the Issuer or the Guarantor hereunder, as to which recourse shall be had solely to the assets of
the Issuer or the Guarantor, and under no circumstances shall The Bank of New York be personally liable for the payment of any indebtedness due under the Note. The Note does not represent interests in
or obligations of The Bank of New York. 

        13.   THIS NOTE SHALL BE GOVERNED BY, AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, UNITED STATES OF AMERICA.  

*** 

R-9

 
 
 

GUARANTY    
    

        1.     The
Guarantor hereby unconditionally and irrevocably guarantees the punctual payment when due, whether at Stated Maturity, upon redemption or early repayment, upon
acceleration or otherwise, of all payments of principal of and interest (including Additional Amounts) on the Notes, and any other amounts payable by the Issuer under the Notes or the Indenture (the
"Obligations"). If the Issuer shall fail to pay punctually any Obligation, the Guarantor shall forthwith pay such Obligation when and as the same shall be due and payable to the person entitled
thereto in the manner specified in the Notes or the Indenture. All payments hereunder shall be made in currency specified in the Notes in same day funds (or such other funds as may, at the time of
payment, be customary for the settlement in New York City of international banking transactions in the such currency) as if such payment were made by the Issuer in accordance with the terms of the
Notes and the Indenture. 

        2.     The
obligations of the Guarantor set forth herein shall constitute a guaranty of payment and not of collection, and shall be absolute and unconditional. This Guaranty
shall be continuing and remain in full force and effect and be binding upon the Guarantor and its successors and assigns and inure to the benefit of the holders of the Notes and the Trustee (each, a
"Beneficiary", and collectively, the "Beneficiaries") until all Obligations of the Issuer have been discharged in full. The Guarantor hereby waives, to the extent permitted by applicable law, all
claims of waiver, exchange, release, surrender, alteration or compromise and all set-offs, counterclaims and recoupments which it may have or assert against the Beneficiaries. The
Guarantor hereby waives promptness, diligence, presentment, demand for payment, notice of acceptance of this Guaranty, protest of any kind whatsoever, any requirement that a Beneficiary exhaust any
right or take any action against the Issuer or any other person or entity or any property or collateral, as well as any right to require a proceeding first against the Issuer or the Issuer's property
or the exercise by a holder of the Notes of its rights upon the occurrence and continuation of an Event of Default. 

        3.     This
Guaranty shall not be valid or obligatory for any purpose until the certificate of authentication on the Note upon which this Guaranty is endorsed shall have been
executed by the Trustee under the Indenture by the manual signature of one of its authorized signatories. 

        4.     The
obligations of the Guarantor to the Beneficiaries pursuant to this Guaranty and the Indenture, and the rights of the Guarantor with respect thereto, are expressly set
forth in the Indenture and reference is hereby made to the Indenture for the precise terms of this Guaranty, which are incorporated herein by reference and made a part hereof. 

        5.     Capitalized
terms used herein and not otherwise defined herein have the meanings specified in the Indenture. 

        THIS GUARANTY SHALL BE GOVERNED BY, AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, UNITED STATES OF AMERICA, EXCEPT THAT ALL MATTERS
RELATING TO THE AUTHORIZATION AND EXECUTION BY THE GUARANTOR OF THIS GUARANTY SHALL BE GOVERNED BY THE LAWS OF MEXICO.

        IN
WITNESS WHEREOF, the Guarantor has caused this Guaranty to be duly executed. 

	Dated: August [•], 2003	 	 	 	 
	

 	
 	

PETROLEOS MEXICANOS
	

 	
 	

By:	
 	

 Name:

Title:

R-10

 
 

ABBREVIATIONS    
    

        The
following abbreviations, when used in the inscription on the face of this instrument, shall be construed as though they were written out in full according to applicable laws or
regulations: 

	TEN COM -	 	as tenants

in common	 	UNIF GIFT

MIN ACT -	 	            

(Cust)	 	Custodian	 	            

(Minor)
	

TEN ENT -	
 	

as tenants by

the entireties	
 	

Under Uniform Gifts to Minors
	

JT TEN -	
 	

as joint tenants with right of survivorship and not State as tenants in common	
 	

 	
 	

 	
 	

 	
 	

 
	 	 	 	 	
 State

Additional
abbreviations may also be used though not in the above list. 

FOR
VALUE RECEIVED the undersigned hereby sell(s), assign(s)

and transfer(s) unto 

PLEASE
INSERT SOCIAL SECURITY OR OTHER

IDENTIFYING NUMBER OF ASSIGNEE 

	 
	 	 

	
 Please print or typewrite name and address including postal zip code of assignee
	

 the within note and all rights thereunder,

hereby irrevocably constituting and appointing

                                        
                                          
    
attorney to transfer said note on the books of Pemex Project Funding Master Trust, with full power of substitution in the premises. 

Dated:
                                        

NOTICE:    The
signature to this assignment must correspond with the name as written upon the face of the within instrument in every particular, without alteration or enlargement or any
change whatever. 

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PEMEX PROJECT FUNDING MASTER TRUST MEDIUM-TERM NOTES, SERIES A Due from 1 Year to 30 Years from Date of Issue

CERTIFICATE OF AUTHENTICATION

REVERSE OF NOTE

GUARANTY

ABBREVIATIONSQuickLinks
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Exhibit 10(ab)    
    

 
  EMPLOYMENT AGREEMENT    
    

        This Employment Agreement (this "Agreement") is dated as of May 2, 2003, between Aon Corporation, a Delaware corporation (the "Company"), and
D. Cameron Findlay (the "Executive"). 

        WHEREAS,
the Company seeks to employ Executive as Executive Vice President and General Counsel of the Company and to have him serve as senior executive officer of one or more
subsidiaries of the Company; and 

        WHEREAS,
Executive desires to serve and to be employed upon the terms and subject to the conditions set forth herein. 

        NOW,
THEREFORE, in consideration of the premises and the mutual agreements contained herein, the parties hereby agree as follows: 

        1.    Employment.    The Company hereby agrees to employ the Executive and the
Executive
hereby agrees to be employed upon the terms and subject to the conditions contained in this Agreement. The term of employment of the Executive pursuant to this Agreement (the "Employment Period")
shall commence effective as of August 1, 2003 (the "Effective Date") and shall end on July 31, 2009, unless earlier terminated pursuant to Section 4 hereof. 

        2.    Position and Duties;
Responsibilities.    (a)    Position and Duties.    The Executive shall be employed as Executive
Vice President and General Counsel of the Company and shall, during the Employment Period, be employed in such position or in such other position or positions with the Company or subsidiaries of the
Company (not inconsistent with the position of Executive Vice President of the Company) as from time to time determined by the Chairman and Chief Executive Officer of the Company (the "Chairman and
CEO") and shall report directly to the Chairman and CEO. During the Employment Period, the Executive shall perform faithfully and loyally and to the best of his abilities the duties assigned to him
hereunder and shall devote his full business time, attention and effort to the affairs of the Company and its subsidiaries and shall use his best efforts to promote the interests of the Company and
its subsidiaries. The Executive may engage in charitable, civic or community activities and, with the prior approval of the Chairman and CEO, may serve as a director of any other business corporation,
provided
that (i) such activities or service do not interfere with his duties hereunder or violate the terms of any of the covenants contained in Sections 6, 7 or 8 hereof and (ii) such
other business corporation provides the Executive with director and officer insurance coverage which, in the opinion of the Chairman and CEO, is adequate under the circumstances. 

        (b)    Responsibilities.    Subject to the direction of the Chairman and CEO, the Executive shall have authority and
responsibility as General Counsel of the Company. As of the Effective Date and continuing for the Employment Period, the Executive shall also have other executive administrative duties and
responsibilities (not inconsistent with the position of Executive Vice President of the Company) on behalf of the Company and its subsidiaries as may from time to time be authorized or directed by the
Chairman and CEO. 

        3.    Compensation.    (a)    Base
Salary.    During the Employment Period, the Company shall pay to the Executive a base salary at the rate of $600,000 per annum ("Base Salary"), payable in accordance
with the Company's executive payroll policy. Such Base Salary shall be subject to adjustment at the discretion of the Chairman and CEO; provided, however, that the Base Salary shall in no event be
less than $600,000 per annum. 

        (b)    Signing Bonus.    On the Effective Date, the Company shall pay to the Executive a signing bonus in the amount
of $250,000 (the "Signing Bonus"). In the event that the employment of the Executive is terminated prior to February 1, 2005 by the Company for Cause as defined in Section 4(c)(ii)(B),
(C), (D), or (E) hereof or voluntarily by the Executive pursuant to Section 4(e) hereof, the Executive shall be obligated to repay to the Company within 30 days following such
termination of employment the entire amount of the Signing Bonus. 

        (c)    Annual Bonus.    During the Employment Period, commencing in 2004, the Executive shall participate in the
annual incentive bonus plan (the "Senior Executive Plan"). Each such annual incentive bonus shall be determined pursuant to the terms of the Senior Executive Plan as in effect from time to time;
provided, however, that no such annual incentive bonus shall exceed 150% of the Executive's Base Salary as in effect at the end of the fiscal year to which such annual incentive bonus relates; and
further provided that for calendar year 2004, Executive's incentive bonus shall not be less than $450,000. 

        (d)    Stock Awards.    The Executive shall receive a stock award of 50,000 shares of common stock ("Common
Stock") of the Company pursuant to the terms of the Aon Stock Incentive Plan; provided, however, that to the extent such award remains unvested at the date of termination of employment for any reason
other than Cause as defined in Section 4(c)(ii)(B), (C), (D), or (E), it shall continue to vest in accordance with its original vesting schedule and the committee administering such plan shall
take such action as shall be necessary pursuant to the 

 

terms
of such plan to effect such continued vesting; provided further that in the event of termination of employment without Cause pursuant to Section 4(d) hereof, such award shall become
immediately vested. 

        (e)    Stock Options.    The Executive shall be granted an option for 50,000 shares of the Common Stock of the
Company pursuant to the terms of the Aon Stock Incentive Plan. Such grant shall vest in accordance with the terms of such plan; provided, however, such grant, to the extent unvested at the date of
termination of employment for any reason other than Cause as defined in Section 4(c)(ii)(B), (C), (D), or (E), shall continue to vest in accordance with its original vesting schedule; provided
further that in the event of termination of employment without Cause pursuant to Section 4(d) hereof, such option shall become immediately vested. 

        (f)    Other Benefits.    The Executive shall be reimbursed for his expenses of relocating to the Chicago metropolitan
area in accordance with the Aon relocation plan. During the Employment Period, the Executive shall be provided with life insurance coverage in the amount of $2,500,000, including coverage under the
Company's basic group life insurance plan. In addition, during the Employment Period, the Executive shall be entitled to participate in the Company's employee benefit plans generally available to
executives of the Company (such benefits being hereinafter referred to as the "Employee Benefits"). The Executive also shall be entitled to take time off for vacation or illness in accordance with the
Company's policy for executives and to receive all other fringe benefits as are from time to time made generally available to executives of the Company. 

        (g)    Pension Benefits.    (i) Upon termination of employment, the Executive will be entitled to receive a
supplemental pension benefit payable on a single life annuity basis at age 65, or if later, the date of termination of employment, which will produce for the Executive aggregate pension benefits
(taking into account the offsets as described in (ii) below), in an annual amount equal to the aggregate annual pension benefit to which the Executive would be entitled under the Company's
qualified and non-qualified defined benefit plans as in effect on the Effective Date as if Executive's Years of Service (as defined in the Company's Pension Plan) for benefit calculation
purposes is equal to (i) 10 years plus (ii) the Executive's actual Years of Service with the Company. 

         (ii)  the
amount of the supplemental pension benefit described in Section 3(f)(i) above shall be offset by the benefits provided to Executive under any
qualified or non-qualified defined benefit plans of the Company. The offset described in this paragraph shall be determined on the basis of such benefits payable on a single life annuity
basis payable at age 65, or if later, the date of termination of employment. 

        (iii)  the
Executive may elect to receive the supplemental pension benefit in any form available under the qualified or non-qualified defined benefit plan of the
Company as in effect on the Effective Date, or as may be available under any such plan hereafter. For commencement of benefits prior to age 65, the supplemental pension benefit will be subject to
reduction pursuant to the early retirement benefit provisions of the Company plans as in effect at the time of payment. 

        (iv)  if
the Executive dies after the Effective Date but before the supplemental pension benefit becomes payable, the Executive's spouse will be entitled to receive a
survivor annuity. The survivor annuity shall be payable as of the later of the date of death or the first date the Executive would have been entitled to retire and commence a joint and 50% survivor
annuity (the "Pension Commencement Date"). The amount of the survivor annuity shall be equal to the 50% survivor annuity to which the spouse is entitled as if: (a) the Executive terminated
employment immediately before death, (b) the Executive was fully vested in the supplemental pension benefit as of such date and (c) the employee survived until the Pension Commencement
Date, elected to commence the age 65 benefit in the form of a joint and 50% survivor annuity as of the Pension Commencement Date, and Executive's death occurred on the day after the Pension
Commencement Date. 

        (h)    Expense Reimbursement.    During the Employment Period the Company shall reimburse the Executive in accordance
with the Company's policies and procedures, for all proper expenses incurred by him in the performance of his duties hereunder. 

        4.    Termination.    (a)    Death.    Upon
the death of the Executive, this Agreement shall automatically terminate and the Executive's executor, administrator or designated beneficiary shall be entitled to receive the Executive's Base Salary
which shall have accrued to the date of such death. The Company shall pay to the Executive's executor or administrator of Executive's estate a lump sum cash amount equal to the Executive's Base
Salary, at the rate in effect at the date of such death, to which the Executive would have been entitled from the date of such death until the end of the Employment Period, reduced by the amount of
any benefit paid under any individual or group life insurance policy maintained by the Company for the benefit of the Executive. 

2

 

        (b)    Disability.    The Company may, at its option, terminate this Agreement upon written notice to the Executive if
the Executive, because of physical or mental incapacity or disability, fails to perform the essential functions of his position, with reasonable accommodation, if relevant, required of him hereunder
for a continuous period of 120 days or any 180 days within any 12-month period. Upon such termination, the Executive or his legal representative shall be entitled to receive
the Base Salary which shall have accrued to the date of termination, plus continuation of Base Salary, at the rate in effect at the date of such termination of employment, until the eighth annual
anniversary of the Effective Date; provided, however, that the amount of any benefit payable under any disability insurance policy maintained by the Company for the benefit of the Executive shall be
deducted from the payments of such Base Salary, with the benefit received under such policy reducing the installment of Base Salary payable closest to the payment of such benefit. In the event of any
dispute regarding the existence of the Executive's incapacity or disability hereunder, the matter shall be resolved by the determination of an independent physician agreed to between the Executive and
the Board specializing in the claimed area of incapacity or disability. The Executive shall submit to appropriate medical examinations for purposes of such determination. 

        (c)    Cause.    (i) The Company may at any time, at its option, terminate the Executive's employment under
this Agreement immediately for Cause (as hereinafter defined). The Company's decision in this regard shall be taken by the Governance Committee of the Board ("Governance Committee"). The Executive
shall be given at least seven days advanced written notice of any meeting at which the Governance Committee proposes to put forward for a vote a decision on whether or not to terminate the Executive
for Cause and the written notice shall describe in reasonable detail the basis on which the Governance Committee may conclude that Cause exists. The Executive shall have the opportunity to appear in
person and to make such written and/or oral presentation to such meeting of the Governance Committee as the Executive thinks fit. If a majority of the Governance Committee authorizes by affirmative
vote a termination for Cause at such meeting (whether or not the Executive makes any oral or written presentations at such meeting) such determination shall be final and binding upon the Company and
the Executive once such decision is confirmed in writing and communicated to the Executive. 

         (ii)  As
used in this Agreement, the term "Cause" shall mean any one or more of the following: 

        (A)  any
failure or inability (other than by reason of physical or mental disability determined in accordance with Section 4(b)) of the Executive to perform his
material duties under this Agreement to the satisfaction of at least a majority of the members of the Governance Committee, including, without limitation, any refusal by the Executive to perform such
duties or to perform such specific directives of the Chairman and CEO which are consistent with the scope and nature of the Executive's duties and responsibilities under this Agreement; 

        (B)  any
intentional act of fraud, embezzlement or theft by the Executive in connection with his duties hereunder or in the course of his employment hereunder or the
Executive's admission or conviction of, or plea of nolo contendere to, a felony or of any crime involving moral turpitude, fraud, embezzlement, theft or misrepresentation; 

        (C)  any
gross negligence or willful misconduct of the Executive resulting in a loss to the Company or any of its subsidiaries, or damage to the reputation of the Company or
any of its subsidiaries; 

        (D)  any
breach by the Executive of any one or more of the covenants contained in Section 6, 7 or 8 hereof; or 

        (E)  any
violation of any statutory or common law duty of loyalty to the Company or any of its subsidiaries. 

        (iii)  The
exercise of the right of the Company to terminate this Agreement pursuant to this Section 4(c) shall not abrogate the rights or remedies of the Company in
respect of the breach giving rise to such termination. 

        (iv)  If
the Company terminates the Executive's employment for Cause, as defined in Section 4(c)(ii)(B), (C), (D) or (E), he shall be entitled to: 

        (A)  accrued
Base Salary through the date of the termination of his employment; and 

        (B)  other
Employee Benefits to which the Executive is entitled upon his termination of employment with the Company, including regular and supplemental retirement and
disability benefits, in accordance with the terms of the plans and programs of the Company. 

3

 

         (v)  if
the Company terminates the Executive's employment for Cause, as defined in Section 4(c)(ii)(A), he shall be entitled to: 

        (A)  the
payments specified by Sections 4(c)(iv)(A) and (B); and 

        (B)  the
continuation of the Base Salary, at the rate in effect at the date of such termination of employment, for a period of two years from the date of such termination of
employment. 

        (d)    Termination Without Cause.    If, during the Employment Period, the Company terminates the employment of the
Executive hereunder for any reason other than a reason set forth in Section 4(a), (b) or (c), the Company shall give the Executive 12 months prior written notice of such
termination, and: 

          (i)  Concurrent
with such termination, the Executive shall be entitled to receive the payments and benefits specified by Sections 4(c)(iv)(A) and (B); 

         (ii)  The
Company shall continue to pay the Executive, until the end of the Employment Period, his Base Salary at the rate in effect at the date of such termination of
employment. 

Notwithstanding
the foregoing provisions of this Section 4(d), if any payment specified by this Section 4(d) would not be deductible by the Company for federal income tax purposes by
reason of Section 162(m) of the Internal Revenue Code of 1986, as amended (the "Code"), or any similar or successor statute (excluding Section 280G of the Code), such payment shall be
deferred and the amount thereof (plus earnings thereon in accordance with the terms of such deferral) shall be paid to the Executive at the earliest time that such payment shall be deductible by the
Company. 

        (e)    Voluntary Termination.    The Executive may voluntarily terminate his employment with the Company prior to the
end of the Employment Period for any reason. If the Executive voluntarily terminates his employment pursuant to this Section 4(e), the Executive shall give the Company 12 months prior
written notice and shall be entitled to the payments specified by Sections 4(c)(iv)(A) and (B). 

        5.    Federal and State Withholding.    The Company shall deduct from the amounts
payable to
the Executive pursuant to this Agreement the amount of all required federal, state and local withholding taxes in accordance with the Executive's Form W-4 on file with the Company,
and all applicable federal employment taxes. 

        6.    Noncompetition;
Nonsolicitation.    (a)    General.    The Executive acknowledges that in the course of his
employment with the Company and Aon Group, Inc., a Maryland corporation ("Aon Group"), he has and will become familiar with trade secrets and other confidential information concerning the
Company and its subsidiaries, including Aon Group, and that his services will be of special, unique and extraordinary value to the Company and its affiliates. 

        (b)    Noncompetition.    The Executive agrees that during the period of his employment with the Company and for a
period of two years thereafter (the "Noncompetition Period") he shall not in any manner, directly or indirectly, through any person, firm or corporation, alone or as a member of a partnership or as an
officer, director, stockholder, investor or employee of or consultant to any other corporation or enterprise or otherwise, engage or be engaged, or assist any other person, firm, corporation or
enterprise in engaging or being engaged, in any business, in which the Executive was involved or had knowledge, being conducted by, or contemplated by, the Company or any of its subsidiaries,
including Aon Group, Inc., as of the termination of the Executive's employment in any geographic area in which the Company or any of its subsidiaries including Aon Group, Inc. is then
conducting such business. 

        (c)    Nonsolicitation.    The Executive further agrees that during the Noncompetition Period he shall not in any
manner, directly or indirectly, induce or attempt to induce any employee of the Company or any of its subsidiaries, including Aon Group, to terminate or abandon his or her employment for any purpose
whatsoever. 

        (d)    Exceptions.    Nothing in this Section 6 shall prohibit the Executive from being (i) a
stockholder in a mutual fund or a diversified investment company or (ii) a passive owner of not more than two percent of the outstanding stock of any class of a corporation, any securities of
which are publicly traded, so long as Executive has no active participation in the business of such corporation. 

        (e)    Reformation.    If, at any time of enforcement of this Section 6, a court holds that the restrictions
stated herein are unreasonable under circumstances then existing, the parties hereto agree that the maximum period, scope or geographical area reasonable under such circumstances shall be substituted
for the stated period, scope or area and that the court shall be allowed to revise the restrictions contained herein to cover the maximum 

4

 

period,
scope and area permitted by law. This Agreement shall not authorize a court to increase or broaden any of the restrictions in this Section 6. 

        (f)    Consideration; Breach.    The Company and the Executive agree that the payments to be made, and the benefits to
be provided, by the Company to the Executive pursuant to Section 3 hereof shall be made and provided in consideration of the Executive's agreements contained in Section 6 hereof. In the
event that the Executive shall breach any provision of Section 6 hereof, the Company shall be entitled immediately to terminate making all remaining payments and providing all remaining
benefits pursuant to Section 3 hereof and upon such termination the Company shall have no further liability to the Executive under this Agreement. 

        7.    Confidentiality.    The Executive shall not, at any time during the Employment
Period or
thereafter, make use of or disclose, directly or indirectly, any (i) trade secret or other confidential or secret information of the Company or of any of its subsidiaries, including Aon
Group, Inc. or (ii) other technical, business, proprietary or financial information of the Company or of any of its subsidiaries, including Aon Group, not available to the public
generally or to the competitors of the Company or to the competitors of any of its subsidiaries, including Aon Group, ("Confidential Information"), except to the extent that such Confidential
Information (a) becomes a matter of public record or is published in a newspaper, magazine or other periodical available to the general public, other than as a result of any act or omission of
the Executive, (b) is required to be disclosed by any law, regulation or order of any court or regulatory commission, department or agency, provided that the Executive gives prompt notice of
such requirement to the Company to enable the Company to seek an appropriate protective order, or (c) is necessary to perform properly the Executive's duties under this Agreement. Promptly
following the termination of the Employment Period, the Executive shall surrender to the Company all records, memoranda, notes, plans, reports, computer tapes and software and other documents and data
which constitute Confidential Information which he may then possess or have under his control (together with all copies thereof). 

        8.    Inventions.    The Executive hereby assigns to the Company his entire right,
title and
interest in and to all discoveries and improvements, patentable or otherwise, trade secrets and ideas, writings and copyrightable material, which may be conceived by the Executive or developed or
acquired by him during the Employment Period, which may pertain directly or indirectly to the business of the Company or any of its subsidiaries, including Aon Group. The Executive agrees to disclose
fully all such developments to the Company upon its request, which disclosure shall be made in writing promptly following any such request. The Executive shall, upon the Company's request, execute,
acknowledge and deliver to the Company all instruments and do all other acts which are necessary or desirable to enable the Company or any of its subsidiaries to file and prosecute applications for,
and to acquire, maintain and enforce, all patents, trademarks and copyrights in all countries. 

        9.    Enforcement.    The parties hereto agree that the Company and its subsidiaries
would be
damaged irreparably in the event that any provision of Section 6, 7 or 8 of this Agreement were not performed in accordance with its terms or were otherwise breached and that money damages
would be an inadequate remedy for any such nonperformance or breach. Accordingly, the Company and its successors and permitted assigns shall be entitled, in addition to other rights and remedies
existing in their favor, to an injunction or injunctions to prevent any breach or threatened breach of any of such provisions and to enforce such provisions specifically (without posting a bond or
other security). The Executive agrees that he will submit himself to the personal jurisdiction of the courts of the State of Illinois in any action by the Company to enforce any provision of
Section 6, 7 or 8 of this Agreement. 

        10.    Survival.    Sections 6, 7, 8 and 9 of this Agreement shall survive and
continue
in full force and effect in accordance with their respective terms, notwithstanding any termination of the Employment Period. 

        11.    Notices.    All notices and other communications required or permitted
hereunder shall
be in writing and shall be deemed given when (i) delivered personally or by overnight courier to the following address of the other party hereto (or such other address for such party as shall
be specified by notice given pursuant to this Section 11) or (ii) sent by facsimile to the following facsimile number of the other party hereto (or such other facsimile number for such
party as shall be specified by notice given pursuant to this Section 11), with the confirmatory copy delivered by overnight courier to the address of such party pursuant to this
Section 11: 

        If
to the Company, to: 

Aon
Corporation

200 East Randolph

Chicago, Illinois 60601

Attention: Chairman and Chief Executive Officer 

5

 

        with
copies to: 

Aon
Corporation

200 East Randolph

Chicago, Illinois 60601

Attention: Chairman of the Governance Committee 

Aon
Corporation

200 East Randolph

Chicago, Illinois 60601

Attention: Patrick G. Ryan 

        If
to the Executive, to: 

D. Cameron
Findlay

                                

                                 

        12.    Severability.    Whenever possible, each provision of this Agreement shall be
interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under applicable law
or rule in any jurisdiction, such invalidity, illegality or unenforceability shall not affect the validity, legality or enforceability of any other provision of this Agreement or the validity,
legality or enforceability of such provision in any other jurisdiction, but this Agreement shall be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable
provision had never been contained herein. 

        13.    Entire Agreement.    This Agreement constitutes the entire agreement and
understanding
between the parties with respect to the subject matter hereof and supersedes and preempts any prior understandings, agreements or representations by or between the parties, written or oral, which may
have related in any manner to the subject matter hereof. 

        14.    Successors and Assigns.    This Agreement shall be enforceable by the
Executive and his
heirs, executors, administrators and legal representatives, and by the Company and its successors and assigns. 

        15.    Governing Law.    This Agreement shall be governed by and construed and
enforced in
accordance with the internal laws of the State of Illinois without regard to principles of conflict of laws. 

        16.    Amendment and Waiver.    The provisions of this Agreement may be amended or
waived only
by the written agreement of the Company and the Executive, and no course of conduct or failure or delay in enforcing the provisions of this Agreement shall affect the validity, binding effect or
enforceability of this Agreement. 

        17.    Counterparts.    This Agreement may be executed in two counterparts, each of
which
shall be deemed to be an original and both of which together shall constitute one and the same instrument. 

6

 

        IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above. 

	 	AON CORPORATION
	

 	

By:	
 	

/s/  PATRICK G. RYAN      

	 	Title:	 	Chairman

	

 	
EXECUTIVE:
	

 	

/s/  D. CAMERON FINDLAY      
 D. Cameron Findlay

7

QuickLinks

Exhibit 10(ab)

EMPLOYMENT AGREEMENT

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