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Exhibit 10.9    
    

Nonemployee Directors and Consultants Stock Incentive Program

(As Amended and Restated on May 14, 2003)

Edwards Lifesciences Corporation  

       

       

      

 
Contents  

	Article 1.	 	Establishment, Objectives, and Duration	 	1
	

Article 2.	
 	

Definitions	
 	

1
	

Article 3.	
 	

Administration	
 	

3
	

Article 4.	
 	

Eligibility and Participation	
 	

4
	

Article 5.	
 	

Shares Subject to the Program	
 	

4
	

Article 6.	
 	

Stock Options	
 	

5
	

Article 7.	
 	

Restricted Stock	
 	

8
	

Article 8.	
 	

Beneficiary Designation	
 	

9
	

Article 9.	
 	

Deferrals	
 	

9
	

Article 10.	
 	

Rights of Nonemployee Directors and Consultants	
 	

9
	

Article 11.	
 	

Change in Control	
 	

9
	

Article 12.	
 	

Amendment, Modification, and Termination	
 	

9
	

Article 13.	
 	

Compliance with Applicable Law and Withholding	
 	

10
	

Article 14.	
 	

Indemnification	
 	

11
	

Article 15.	
 	

Successors	
 	

11
	

Article 16.	
 	

Legal Construction	
 	

11

       

i

   Edwards Lifesciences Corporation

Nonemployee Directors and Consultants Stock Incentive Program

(as amended and restated as of May 14, 2003)  

Article 1. Establishment, Objectives, and Duration  

        1.1   Establishment of the Program. Edwards Lifesciences Corporation, a Delaware corporation (hereinafter referred to as the
"Company"), hereby amends and restates the incentive compensation plan established April 1, 2000 and known as the "Edwards Lifesciences Corporation Nonemployee Directors and Consultants Stock
Incentive Program" (hereinafter, as amended and restated, referred to as the "Program"), as set forth in this document, effective as of May 14, 2003. The Program was previously amended and
restated in March and November 2002. The Program permits the grant of Nonqualified Stock Options and Restricted Stock. 

        The
Program became effective as of April 1, 2000 (the "Effective Date") and shall remain in effect as provided in Section 1.3 hereof. 

        1.2   Objectives of the Program. The objectives of the Program are to optimize the profitability and growth of the Company
through long-term incentives which are consistent with the Company's goals and which link the personal interests of Participants to those of the Company's stockholders. The Program is
further intended to provide flexibility to the Company in its ability to motivate, attract, and retain the services of Participants who make significant contributions to the Company's success and to
allow Participants to share in the success of the Company. 

        1.3   Duration of the Program. The Program shall commence on the Effective Date, as described in Section 1.1 hereof, and
shall remain in effect, subject to the right of the Board to amend or terminate the Program at any time pursuant to Article 12 hereof, until all Shares subject to it shall have been purchased
or acquired according to the Program's provisions. However, in no event may an Award be granted under the Program on or after April 1, 2010. 

Article 2. Definitions  

        Whenever used in the Program, the following terms shall have the meanings set forth below, and when the meaning is intended, the initial letter of the word shall
be capitalized: 

        2.1   "Annual Retainer" means the fixed annual fee of a Nonemployee Director in effect on the first day of the year in which
such Annual Retainer is payable for services to be rendered as a Nonemployee Director of the Company. The Annual Retainer does not include meeting or chairmanship fees. 

        2.2   "Award" means, individually or collectively, a grant under this Program of Nonqualified Stock Options and Restricted
Stock. 

        2.3   "Award Agreement" means an agreement entered into by the Company and each Participant setting forth the terms and
provisions applicable to Awards granted under this Program. 

        2.4   "Board" or "Board of Directors" means the Board of Directors of the
Company. 

        2.5   "Change in Control" of the Company shall mean the occurrence of any one of the following events: 

	(a)
	Any
"Person", as such term is used in Sections 13(d) and 14(d) of the Exchange Act (other than the Company, any corporation owned, directly or indirectly, by the stockholders of the
Company in substantially the same proportions as their ownership of stock of the Company, and any trustee or other fiduciary holding securities under an employee benefit plan of the 

1

 

Company
or such proportionately owned corporation), is or becomes the "beneficial owner" (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of
the Company representing thirty percent (30%) or more of the combined voting power of the Company's then outstanding securities; or 

	(b)
	During
any period of not more than twenty-four (24) months, individuals who at the beginning of such period constitute the Board of Directors of the Company, and
any new director (other than a director designated by a Person who has entered into an agreement with the Company to effect a transaction described in Sections 2.5(a), 2.5(c), or 2.5(d) of this
Section 2.5) whose election by the Board or nomination for election by the Company's stockholders was approved by a vote of at least two-thirds (2/3) of the directors
then still in office who either were directors at the beginning of the period or whose election or nomination for election was previously so approved, cease for any reason to constitute at least a
majority thereof; or

	(c)
	The
consummation of a merger or consolidation of the Company with any other entity, other than: (i) a merger or consolidation which would result in the voting securities of the
Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) more than sixty percent
(60%) of the combined voting power of the voting securities of the Company or such surviving entity outstanding immediately after such merger or consolidation; or (ii) a merger or consolidation
effected to implement a recapitalization of the Company (or similar transaction) in which no Person acquires more than thirty percent (30%) of the combined voting power of the Company's then
outstanding securities; or

	(d)
	The
Company's stockholders approve a plan of complete liquidation or dissolution of the Company, or an agreement for the sale or disposition by the Company of all or substantially all
of the Company's assets (or any transaction having a similar effect. 

        2.6   "Code" means the Internal Revenue Code of 1986, as amended from time to time. 

        2.7   "Committee" means the Compensation and Planning Committee and any successor thereto or any other committee appointed by
the Board to administer Awards to Participants, as specified in Article 3 herein. 

        2.8   "Company" means Edwards Lifesciences Corporation, a Delaware corporation, and any successor thereto as provided in
Article 15 herein. 

        2.9   "Consultant" means an individual who is providing or has provided services to the Company or any Subsidiary of the
Company but who is not an Employee or a member of the Board, and who does not participate in the Edwards Lifesciences Corporation Long-Term Stock Incentive Compensation Program. 

        2.10 "Disability" shall have the meaning ascribed to such term in the Participant's governing long-term
disability plan, or if no such plan exists, at the discretion of the Board. 

        2.11 "Effective Date" shall have the meaning ascribed to such term in Section 1.1 hereof. 

        2.12 "Employee" means an employee of the Company or of a Subsidiary of the Company. 

        2.13 "Exchange Act" means the Securities Exchange Act of 1934, as amended from time to time, or any successor act thereto. 

        2.14 "Fair Market Value" means, at any date, the closing sale price on the principal securities exchange on which the Shares
are traded on the last previous day on which a sale was reported. 

        2.15 "Insider" shall mean an individual who is, on the relevant date, an officer, director or beneficial owner of more than
ten percent (10%) of any class of the Company's equity securities that is 

2

 

registered
pursuant to Section 12 of the Exchange Act, all as defined under Section 16 of the Exchange Act. 

        2.16 "Nonemployee Director" means a member of the Company's Board who is not an Employee of the Company. 

        2.17 "Nonqualified Stock Option" or "Option" means an option to purchase
Shares granted under Article 6 herein and which is not intended to meet the requirements of Code Section 422. 

        2.18 "Option Price" means the price at which a Share may be purchased by a Participant pursuant to an Option. 

        2.19 "Participant" means a Nonemployee Director or Consultant who has been selected to receive an Award or who has
outstanding an Award granted under the Program. 

        2.20 "Period of Restriction" means the period during which the transfer of Shares of Restricted Stock is limited in some way
(based on the passage of time, the achievement of performance goals, or upon the occurrence of other events as determined by the Committee, in its discretion), and the Shares are subject to a
substantial risk of forfeiture, as provided in Article 7 herein. 

        2.21 "Restricted Stock" means an Award granted to a Participant pursuant to Article 7 herein. 

        2.22 "Shares" means the shares of common stock of the Company. 

        2.23 "Subsidiary" means any business, whether or not incorporated, in which the Company beneficially owns, directly or
indirectly through another entity or entities, securities or interests representing more than fifty percent (50%) of the combined voting power of the voting securities or voting interests of such
business. 

Article 3. Administration  

        3.1   General. The Program shall be administered by the Compensation Committee of the Board, or by any other Committee
appointed by the Board. Any Committee administering the Program shall be comprised entirely of directors. The members of the Committee shall be appointed from time to time by and shall serve at the
sole discretion of the Board. Members of the Committee may participate in the Program. The Committee shall have the authority to delegate administrative duties to officers, Employees, or directors of
the Company; provided that the Committee shall not be able to delegate its authority with respect to granting Awards to Insiders. 

        3.2   Authority of the Committee. Except as limited by law or by the Certificate of Incorporation or Bylaws of the Company, and
subject to the provisions of the Program, the Committee shall have the authority to: (a) interpret the provisions of the Program, and prescribe, amend, and rescind rules and procedures relating
to the Program; (b) grant Awards under the Program, in such forms and amounts and subject to such terms and conditions as it deems appropriate, including, without limitation, Awards which are
made in combination with or in tandem with other Awards (whether or not contemporaneously granted) or compensation or in lieu of current or deferred compensation; (c) subject to
Article 12, modify the terms of, cancel and reissue, or repurchase outstanding Awards; (d) prescribe the form of agreement, certificate or other instrument evidencing any Award under the
Program; (e) correct any defect or omission and reconcile any inconsistency in the Program or in any Award hereunder; (f) to design Awards to satisfy requirements to make such Awards
tax-advantaged to Participants in any jurisdiction or for any other reason that the Company desires; and (g) make all other determinations and take all other actions as it deems
necessary or desirable for the administration of the Program; provided, however, that it is the Company's intent that no outstanding Option will be canceled for the purpose of reissuing such Option to
a Participant at a lower exercise price. The determination of the Committee on matters within its authority shall be conclusive and binding on the Company and all other persons. The Committee shall
comply with all applicable laws in 

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administering
the Plan. As permitted by law (and subject to Section 3.1 herein), the Committee may delegate its authority as identified herein. 

        3.3   Decisions Binding. All determinations and decisions made by the Committee pursuant to the provisions of the Program and
all related orders and resolutions of the Board shall be final, conclusive and binding on all persons, including the Company, its stockholders, directors, Employees, Consultants, Participants, and
their estates and beneficiaries. 

Article 4. Eligibility and Participation  

        4.1   Eligibility. Persons eligible to participate in this Program shall include all Nonemployee Directors and Consultants. 

        4.2   Actual Participation. Subject to the provisions of the Program, the Committee may, from time to time, select from all
eligible Nonemployee Directors and Consultants those to whom Awards shall be granted and shall determine the nature and amount of each Award. 

Article 5. Shares Subject to the Program  

        5.1   Number of Shares Available for Grants. Subject to adjustment as provided in Section 5.4 herein, the number of
Shares hereby reserved for delivery to Participants under the Program shall be three hundred thousand (300,000) Shares. Subject to the restrictions for Nonemployee Directors set forth in Articles 6
and 7, the Committee shall determine the appropriate methodology for calculating the number of Shares issued pursuant to the Program. 

        5.2   Type of Shares. Shares issued under the Program in connection with Options may be authorized and unissued Shares or
issued Shares held as treasury Shares. Shares issued under the Program in connection with Restricted Stock shall be issued Shares held as treasury
Shares; provided, however, that authorized and unissued Shares may be issued in connection with Restricted Stock to the extent that the Committee determines that past services of the Participant
constitute adequate consideration for at least the par value thereof. 

        5.3   Reuse of Shares.

	(a)
	General. In the event of the exercise or termination (by reason of forfeiture, expiration, cancellation, surrender or otherwise) of any
Award under the Program, that number of Shares that was subject to the Award but not delivered shall again be available as Awards under the Program.

	(b)
	Restricted Stock. In the event that Shares are delivered under the Program as Restricted Stock and are thereafter forfeited or
reacquired by the Company pursuant to rights reserved upon the grant thereof, such forfeited or reacquired Shares shall again be available as Awards under the Program.

	(c)
	Limitation. Notwithstanding the provisions of Sections 5.3(a) or 5.3(b) above, the following Shares shall not be available for
reissuance under the Program: (i) Shares which are withheld from any Award or payment under the Program to satisfy tax withholding obligations; (ii) Shares which are surrendered to
fulfill tax obligations incurred under the Program; and (iii) Shares which are surrendered in payment of the Option Price upon the exercise of an Option. 

        5.4   Adjustments in Authorized Shares. In the event of any change in corporate capitalization, such as a stock split, or a
corporate transaction, such as any merger, consolidation, separation, including a spin-off, or other distribution of stock or property of the Company, any reorganization (whether or not
such reorganization comes within the definition of such term in Code Section 368) or any partial or complete liquidation of the Company, such adjustment shall be made in the number and 

4

 

class
of Shares which may be delivered under Section 5.1, in the number and class of and/or price of Shares subject to outstanding Awards granted under the Program, in the number and/or class
of Shares subject to Awards to be granted under the Program under Sections 6.1 and 7.1, and in the closing prices of the Company's common stock used to determine the rate of return on the Company's
common stock under Section 6.1(c), as shall be determined to be appropriate and equitable by the Board, in its sole discretion, to prevent dilution or enlargement of rights; provided, however,
that the number of Shares subject to any Award shall always be a whole number. In a stock-for-stock acquisition of the Company, the Committee may, in its sole discretion,
substitute securities of another issuer for any Shares subject to outstanding Awards. 

Article 6. Stock Options  

        6.1   Grant of Options.

        (a)   Annual Grants On and Prior to April 30, 2004. Subject to the discretion of the Committee and the terms and
provisions of the Program, during the period beginning January 1, 2001 and ending April 30, 2004, each Nonemployee Director shall receive annually an Option to purchase ten thousand
(10,000) Shares, effective as of the day following each annual meeting of the Company's stockholders (but subject to any vesting provisions or other restrictions determined by the Committee). 

        (b)   Annual Grants After April 30, 2004. Subject to the discretion of the Committee and the terms and provisions of the
Program, during the period beginning May 1, 2004 and ending April 1, 2010, each Nonemployee Director shall receive annually an Option to purchase a number of Shares, effective as of
the day following each annual meeting of the Company's stockholders (but subject to any vesting provisions or other restrictions determined by the Committee), equal to the sum of: 

        (i)    Seven
thousand five hundred (7,500) Shares, plus 

        (ii)   Two
hundred fifty (250) Shares for each full percentage that the rate of return on the Company's common stock exceeds the rate of return on the Morgan Stanley
Health Care Products Index (the "Index") (with the difference between the rates of return on the Company's common stock and the Index rounded to the nearest whole percentage); provided, however, in no
event may the total number of Shares subject to each such annual Option exceed twelve thousand five hundred (12,500) Shares. 

        [(c)  For
purposes of Section 6.1(b)(ii), the rate of return on the Company's common stock or the Index shall be calculated by dividing (i) (A) the
daily average closing price of the Company's common stock or the daily average closing value of the Index (as applicable) for the month of March in the year in which the Option is granted less
(B) the daily average closing price of the Company's common stock or the daily average closing value of the Index (as applicable) for the month of March in the year prior to the Option grant
date, by (ii) the daily average closing price of the Company's common stock or the daily average closing value of the Index (as applicable) for the month of March in the year prior to the
Option grant date, and multiplying the quotient by 100 (and adding a percent sign).] 

        For
purposes of this Section 6.1, the applicable closing prices of the Company's common stock shall be as reported by the New York Stock Exchange and the applicable closing values
of the Index shall be as reported by the American Stock Exchange. In the event of certain changes in the Company's capitalization described in Section 5.4, the closing prices used to determine
the rate of return of the Company's common stock under this Section 6.1(c) shall be adjusted in accordance with Section 5.4. In the event of any change to the base value of the Index
that is not solely related to the performance of the underlying securities, the closing values of the Index used to determine the rate of return of the Index under Section 6.1(c) shall be
adjusted by the Board in a 

5

 

manner
as shall be deemed appropriate and equitable by the Board, in its sole discretion, to prevent dilution or enlargement of rights. 

        (d)   Aside
from the foregoing annual grants and any grants pursuant to Section 6.11 of the Program, no additional Options shall be granted to Nonemployee Directors
under the Program. 

        (e)   Subject
to the terms and provisions of the Program, Options may be granted to Consultants in such number, and upon such terms, and at any time and from time to time as
shall be determined by the Committee. 

        (f)    If
all or any portion of the exercise price or taxes incurred in connection with the exercise are paid by delivery (or, in the case of payment of taxes, by withholding
of Shares) of other Shares of the Company, a Participant's Options may provide for the grant of replacement Options. All Options under the Program shall be granted in the form of nonqualified stock
options as no Option under the Program may be granted in the form of an incentive stock option as defined under the provisions of Code Section 422. 

        6.2   Award Agreement. Each Option grant shall be evidenced by an Award Agreement that shall specify the Option Price, the
duration of the Option, the number of Shares to which the Option pertains, and such other provisions as the Committee shall determine. 

        6.3   Option Price. The Option Price for each grant of an Option under this Program shall be at least equal to one hundred
percent (100%) of the Fair Market Value of a Share on the date the Option is granted. 

        6.4   Duration of Options. Each Option granted to a Participant shall expire at such time, not later than the tenth
(10th) anniversary date of its grant, as the Committee shall determine; provided, however, that an Option may have such shorter or longer term as the Committee shall deem necessary to
comply with applicable federal, state, local or, if applicable, foreign law, or, if the Committee so determines, to qualify for favorable tax treatment. Unless the Committee determines otherwise, the
term of each Option granted to a Participant after May 14, 2003, shall expire on the seventh (7th) anniversary date of its grant, subject to such provisions for earlier expiration
as the Committee may specify in accordance with Section 6.8 (relating to termination of directorship of service) or otherwise. 

        6.5   Exercise of Options. Options granted under this Article 6 shall be exercisable at such times and be subject to
such restrictions and conditions as the Committee shall in each instance approve, which need not be the same for each grant or for each Participant. 

        6.6   Payment. Options granted under this Article 6 shall be exercised by the delivery of a written notice of exercise
(or such other form of notice as the Company may specify) to the Company, setting forth the number of Shares with respect to which the Option is to be exercised, accompanied by full payment for the
Shares (or a satisfactory "cashless exercise" notice). 

        The
Option Price upon exercise of any Option shall be payable to the Company in full either: (a) in cash or its equivalent; (b) by tendering previously acquired Shares (by
either actual delivery or attestation) having an aggregate Fair Market Value at the time of exercise equal to the total Option
Price (provided that the Shares which are tendered must have been held by the Participant for at least six (6) months, or such shorter or longer period, if any, as is necessary to avoid
variable accounting treatment); (c) by a cashless exercise as permitted under Federal Reserve Board's Regulation T, subject to applicable securities law restrictions and such procedures
and limitations as the Company may specify from time to time; (d) by any other means which the Board determines to be consistent with the Program's purpose and applicable law; or (e) by
a combination of two or more of (a) through (d). 

        Subject
to any governing rules or regulations, including cashless exercise procedures, as soon as practicable after receipt of a notification of exercise and full payment (or a
satisfactory "cashless 

6

 

exercise"
notice), the Company shall cause to be issued and delivered to the Participant, in certificate form or otherwise, evidence of the Shares purchased under the Option(s). 

        6.7   Restrictions on Share Transferability. The Committee may impose such restrictions on any Shares acquired pursuant to the
exercise of an Option granted under this Article 6 as it may deem advisable, including, without limitation, restrictions under applicable federal securities laws, under the requirements of any
stock exchange or market upon which such Shares are then listed and/or traded, and under any blue sky or state securities laws applicable to such Shares. 

        6.8   Termination of Directorship or Service. Each Participant's Option Award Agreement shall set forth the extent to which the
Participant shall have the right to exercise the Option following termination of the Participant's service to the Company as a Nonemployee Director or Consultant. Such provisions shall be determined
in the sole discretion of the Committee, shall be included in the Award Agreement entered into with each Participant, need not be uniform among all Options issued pursuant to this Article 6,
and may reflect distinctions based on the reasons for termination. 

        6.9   Nontransferability of Options. Except as otherwise provided in a Participant's Award Agreement, no Option granted under
this Article 6 may be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by will or by the laws of descent and distribution. Further, except as otherwise
provided in a Participant's Award Agreement, all Options granted to a Participant under this Article 6 shall be exercisable during his or her lifetime only by such Participant. 

        6.10 Substitution of Cash. Unless otherwise provided in a Participant's Award Agreement, and notwithstanding any provision in
the Program to the contrary (including but not limited to Section 12.3), in the event of a Change in Control in which the Company's stockholders holding Shares receive consideration other than
shares of common stock that are registered under Section 12 of the Exchange Act, the Committee shall have the authority to require that any outstanding Option be surrendered to the Company by a
Participant for cancellation by the Company, with the Participant receiving in exchange a cash payment from the Company within ten (10) days of the Change in Control. Such cash payment shall be
equal to the number of Shares under Option, multiplied by the excess, if any, of the greater of (i) the highest per Share price offered to stockholders in any transaction whereby the Change in
Control takes place, or (ii) the Fair Market Value of a Share on the date the Change in Control occurs, over the Option Price. 

        6.11 Elective Grants to Nonemployee Directors in Lieu of Annual Retainer. Subject to the terms and provisions of the Program
and any other restrictions set out by the Committee in its sole discretion, the Committee may permit each Nonemployee Director to elect to receive all or a portion of his or her Annual Retainer in the
form of Options to be issued as of the first day on which such Annual Retainer is otherwise due and payable (the "Conversion Date") and using the Fair Market Value of a Share as of the Conversion Date
as the Option Price of the Options. 

        If
deferral elections are permitted by the Committee, each irrevocable election shall be made in accordance with such rules as the Committee may determine in its sole discretion. Except
as may otherwise be determined by the Committee, in the event of such an election, the number of Options which an electing Nonemployee Director shall receive shall be determined by dividing that
portion of the Annual Retainer as to which the election is being made by the Fair Market Value of a Share on the Conversion Date and multiplying the quotient by four (4). In the event the preceding
formula would result in a fractional Share under the Option being issued, the portion of the deferred Annual Retainer attributable to such fractional Share will be refunded to the Nonemployee Director
in cash instead of being converted into such fractional Share. 

        Any
portion of a Nonemployee Director's Annual Retainer for which an election has not been made pursuant to this Section 6.11, shall be paid in cash to such Nonemployee Director
at such time or times as payments thereof are customarily made by the Company. 

7

 

Article 7. Restricted Stock  

        7.1   Grant of Restricted Stock. Subject to the terms and provisions of the Program, each Nonemployee Director shall be granted
five thousand (5,000) Shares of Restricted Stock effective as of the later of (i) April 1, 2000, or (ii) the date of such Nonemployee Director's first election to the Board. 

        Subject
to the terms and provisions of the Program, the Committee, at any time and from time to time, may grant Shares of Restricted Stock to Consultants in such amounts as the Committee
shall determine. 

        7.2   Restricted Stock Agreement. Each Restricted Stock grant shall be evidenced by a Restricted Stock Award Agreement that
shall specify the Period(s) of Restriction, the number of Shares of Restricted Stock granted, and such other provisions as the Committee shall determine. 

        7.3   Restriction on Transferability. Except as provided in this Article 7, the Shares of Restricted Stock granted
herein may not be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated until the end of the applicable Period of Restriction established by the Committee and specified in the
Restricted Stock Award Agreement, or upon earlier satisfaction of any other conditions, as specified by the Committee in its sole discretion and set forth in the Restricted Stock Award Agreement. All
rights with respect to the Restricted Stock granted to a Participant under the Program shall be available during his or her lifetime only to such Participant. 

        7.4   Other Restrictions. The Committee shall impose such other conditions and/or restrictions on any Shares of Restricted
Stock granted pursuant to the Program as it may deem advisable including, without limitation, any or all of the following: 

	(a)
	A
required period of service with the Company, as determined by the Committee, prior to the vesting of Shares of Restricted Stock.

	(b)
	A
requirement that Participants forfeit (or in the case of Shares sold to a Participant, resell to the Company at his or her cost) all or a part of Shares of Restricted Stock in the
event of termination of his or her service as a Nonemployee Director or Consultant during the Period of Restriction.

	(c)
	A
prohibition against such Participants' dissemination of any secret or confidential information belonging to the Company, or the solicitation by Participants of the Company's
Employees for employment by another entity. 

        Shares
of Restricted Stock awarded pursuant to the Program shall be registered in the name of the Participant and if such Shares are certificated, in the sole discretion of the
Committee, such certificate may be deposited in a bank designated by the Committee or with the Company. The Committee may require a stock power endorsed in blank with respect to Shares of Restricted
Stock whether or not certificated. 

        Except
as otherwise provided in this Article 7, Shares of Restricted Stock covered by each Restricted Stock grant made under the Program shall become freely transferable (subject
to any restrictions under applicable securities law) by the Participant after the last day of the applicable Period of Restriction. 

        7.5   Voting Rights. Unless the Committee determines otherwise, Participants holding Shares of Restricted Stock issued
hereunder shall be entitled to exercise full voting rights with respect to those Shares during the Period of Restriction. 

        7.6   Dividends and Other Distributions. Unless the Committee determines otherwise, during the Period of Restriction,
Participants holding Shares of Restricted Stock issued hereunder shall be entitled 

8

 

to
regular cash dividends paid with respect to such Shares. The Committee may apply any restrictions to the dividends that the Committee deems appropriate. 

        7.7   Termination of Directorship or Service. Each Restricted Stock Award Agreement shall set forth the extent to which the
Participant shall have the right to vest in previously unvested Shares of Restricted Stock following termination of the Participant's service to the Company as a Nonemployee Director or Consultant.
Such provisions shall be determined in the sole discretion of the Committee, shall be included in the Award Agreement entered into with each Participant, need not be uniform among all Shares of
Restricted Stock issued pursuant to the Program, and may reflect distinctions based on the reasons for termination. 

Article 8. Beneficiary Designation  

        Each Participant under the Program may, from time to time, name any beneficiary or beneficiaries (who may be named contingently or successively) to whom any
benefit under the Program is to be paid in case of his or her death before he or she receives any or all of such benefit. Each such designation shall revoke all prior designations by the same
Participant, shall be in a form prescribed by the Company, and will be effective only when filed by the Participant in writing with the Company during the Participant's lifetime. In the absence of any
such designation, benefits remaining unpaid at the Participant's death shall be paid to the Participant's estate. 

Article 9. Deferrals  

        The Committee may permit or require a Participant to defer such Participant's receipt of the payment of cash or the delivery of Shares that would otherwise be due
to such Participant by virtue of the exercise of an Option, or the lapse or waiver of restrictions with respect to Restricted Stock. If any such deferral election is required or permitted, the
Committee shall, in its sole discretion, establish rules and procedures for such payment deferrals. 

Article 10. Rights of Nonemployee Directors and Consultants  

        10.1 Directorship or Provision of Services. Nothing in the Program or any Award Agreement shall interfere with or limit in
any way the right of the Company to terminate at any time any Participant's service to the Company as a Nonemployee Director or as a Consultant, nor confer upon any Participant any right to continue
in the service of the Company. 

        10.2 Participation. No Nonemployee Director or Consultant shall have the right to be selected to receive an Award under this
Program, or, having been so selected, to be selected to receive a future Award. 

Article 11. Change in Control  

        Upon the occurrence of a Change in Control and notwithstanding the terms of any Award Agreement, unless otherwise specifically prohibited under applicable laws,
or by the rules and regulations of any governing governmental agencies or national securities exchanges: 

	(a)
	Any
and all Options granted hereunder shall become immediately exercisable, and if granted before November 13, 2002 shall remain exercisable throughout their entire term; and

	(b)
	Any
restriction periods and restrictions imposed on Shares of Restricted Stock shall lapse. 

Article 12. Amendment, Modification, and Termination  

        12.1 Amendment, Modification, and Termination. Subject to the terms of the Program including Sections12.2 and 12.3, the Board
may at any time and from time to time, alter, amend, suspend or 

9

 

terminate
the Program in whole or in part and the Committee may amend Awards previously granted under the Program. 

        12.2 Adjustment of Awards Upon the Occurrence of Certain Unusual or Nonrecurring Events. The Committee may make adjustments
in the terms and conditions of, and the criteria included in, Awards in recognition of unusual or nonrecurring events (including, without limitation, the events described in Section 5.4 hereof)
affecting the Company or the financial statements of the Company or of changes in applicable laws, regulations, or accounting principles, whenever the Committee determines that such adjustments are
appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Program. 

        12.3 Awards Previously Granted. Notwithstanding any provision of the Program or of any Award Agreement to the contrary (but
subject to Section 6.10), no termination, amendment, or modification of the Program or amendment of an Award previously granted under the Program shall adversely affect in any material way any
Award previously granted under the Program, without the express consent of the Participant holding such Award. 

Article 13. Compliance with Applicable Law and Withholding  

        13.1 General. The granting of Awards and the issuance of Shares under the Program shall be subject to all applicable laws,
rules, and regulations, and to such approvals by any governmental agencies or national securities exchanges as may be required. Notwithstanding anything to the contrary in the Program or any Award
Agreement, the following shall apply: 

	(a)
	The
Company shall have no obligation to issue any Shares under the Program if such issuance would violate any applicable law or any applicable regulation or requirement of any
securities exchange or similar entity.

	(b)
	Prior
to the issuance of any Shares under the Program, the Company may require a written statement that the recipient is acquiring the Shares for investment and not for the purpose or
with the intention of distributing the Shares and that the recipient will not dispose of them in violation of the registration requirements of the Securities Act of 1933.

	(c)
	With
respect to any Participant who is subject to Section 16(a) of the Exchange Act, the Committee may, at any time, add such conditions and limitations to Award or payment
under the Program or implement procedures for the administration of the Program which it deems necessary or desirable to comply with the requirements of Rule 16b-3 of the Exchange
Act.

	(d)
	If,
at any time, the Company, determines that the listing, registration, or qualification (or any updating of any such document) of any Award, or the Shares issuable pursuant thereto,
is necessary on any securities exchange or under any federal or state securities or blue sky law, or that the consent or approval of any governmental regulatory body is necessary or desirable as a
condition of, or in connection with, any Award, the issuance of Shares pursuant to any Award, or the removal of any restrictions imposed on Shares subject to an Award, such Award shall not be granted
and the Shares shall not be issued or such restrictions shall not be removed, as the case may be, in whole or in part, unless such listing, registration, qualification, consent, or approval shall have
been effected or obtained free of any conditions not acceptable to the Company. 

        13.2 Securities Law Compliance. With respect to Insiders, transactions under this Program are intended to comply with all
applicable conditions of Rule 16b-3 or its successors under the 1934 Act. To the extent any provision of the Program or action by the Committee or the Board fails to so comply, it
shall be deemed null and void, to the extent permitted by law and deemed advisable by the Board. 

10

 

        13.3 Tax Withholding. The Company shall have the power and the right to deduct or withhold, or require a Participant to remit
to the Company, an amount sufficient to satisfy federal, state, local, domestic and foreign taxes, required by law or regulation to be withheld with respect to any taxable event arising as a result of
this Program. 

        13.4 Share Withholding. Awards payable in Shares may provide that with respect to withholding required upon any taxable event
arising thereunder, Participants may elect to satisfy the withholding requirement, in whole or in part, by having the Company withhold Shares to satisfy their withholding tax obligations; provided
that Participants may only elect to have Shares withheld having a Fair Market Value on the date the tax is to be determined equal to or less than the minimum withholding tax which could be imposed on
the transaction. All elections shall be irrevocable, made in writing, signed by the Participant, and shall be subject to any restrictions or limitations, including prior Committee approval, that the
Committee, in its sole discretion, deems appropriate. 

Article 14. Indemnification  

        Each person who is or shall have been a member of the Committee, or of the Board, shall be indemnified and held harmless by the Company against and from any loss,
cost, liability, or expense that may be imposed upon or reasonably incurred by him or her in connection with or resulting from any claim, action, suit, or proceeding to which he or she may be a party
or in which he or she may be involved by reason of any action taken or failure to act under the Program and against and from any and all amounts paid by him or her in settlement thereof, with the
Company's approval, or paid by him or her in satisfaction of any judgment in any such action, suit, or proceeding against him or her, provided he or she shall give the Company an opportunity, at its
own expense, to handle and defend the same before he or she undertakes to handle and defend it on his or her own behalf. The foregoing right of indemnification shall not be exclusive of any other
rights of indemnification to which such persons may be entitled under the Company's Certificate of Incorporation or Bylaws, as a matter of law, or otherwise, or any power that the Company may have to
indemnify them or hold them harmless. 

Article 15. Successors  

        All obligations of the Company under the Program with respect to Awards granted hereunder shall, to the extent legally permissible, be binding on any successor to
the Company, whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise, of all or substantially all of the business and/or assets of
the Company. 

Article 16. Legal Construction  

        16.1 Gender and Number. Except where otherwise indicated by the context, any masculine term used herein also shall include
the feminine; the plural shall include the singular and the singular shall include the plural. 

        16.2 Severability. In the event any provision of the Program shall be held illegal or invalid for any reason, the illegality
or invalidity shall not affect the remaining parts of the Program, and the Program shall be construed and enforced as if the illegal or invalid provision had not been included. 

        16.3 Governing Law. To the extent not preempted by federal law, the Program, and all Award or other agreements hereunder,
shall be construed in accordance with and governed by the laws of the state of Delaware without giving effect to principles of conflicts of laws. 

11

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Exhibit 4.2    
    

        The
issue of the Guaranty of this Note was approved by the Ministry of Finance and Public Credit of Mexico on January 30, 2003 pursuant to Official Communication
No. 305-I.3.-91 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. $750,000,000  

 6.125% Notes due 2008  

REGISTERED

NO. R-1 

        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:	
 	

August 15, 2008
	

ISSUE DATE:	
 	

[            ], 2003
	

CUSIP NO.:	
 	

706451 AM 3
	

INTEREST PAYMENT DATES:	
 	

February 15 and August 15 of each year, commencing February 15, 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 Trust Company), as Trustee (the "Trustee", which expression
shall include any successor trustee under the Indenture). 

F-2

 

        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

F-3

  

 
 

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 6.125% Notes due 2008 (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, Petrõleos 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 6.125% Notes due 2008 (the "Old Notes" and, together with the Notes, the "2008 Notes"). The 2008 Notes are limited to an
aggregate initial principal amount of U.S. $750,000,000, 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 December 3, 2002 and February 6, 2003 (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 $1,000 in excess
thereof. 

        2.
(a) This Note will bear interest from August 15, 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 particular 

R-1

 

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. 

        (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 

R-2

 

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 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. 

R-3

 

        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 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; (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; or (vii) any withholding tax
or deduction imposed on a payment to an individual pursuant to any European Union directive on the taxation of savings and implementing the conclusions of the ECOFIN Council meeting of
November 26-27, 2000, or any law implementing or complying with, or introduced in order to conform to, such a directive or presented for payment by or on behalf of a holder who
would have been able to avoid such withholding or deduction by presenting the relevant Note to another Paying Agent in a Member State of the European Union. All references in this Note or in the
Indenture to principal, premium, if any, and interest in respect of Notes shall, unless the context 

R-4

 

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. 

        (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. 

        (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 

R-5

 

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
2008 Notes then outstanding, voting as a single series, shall give notice in writing 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 

        (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 

R-6

 

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, receiver or similar officer 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, 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 

        (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 

R-7

 

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 Petrõleos
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. 

        "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 

R-8

 

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 2008 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 2008 Notes, voting as a single series. The Indenture also contains provisions permitting the holders of specified percentages in principal amount of the 2008 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:

	 	 	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—             Custodian            

                       (Cust)                 
(Minor)
	

TEN ENT—	
 	

as tenants by

the entireties	
 	

Under Uniform Gifts

to Minors
	

JT TEN—	
 	

as joint tenants with

right of survivorship and

not 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. 

QuickLinks

Exhibit 4.2

CERTIFICATE OF AUTHENTICATION

REVERSE OF NOTE

GUARANTY

ABBREVIATIONS

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