Document:

Base Agreement, dated as of September 1, 2003

 Exhibit 10.17 
 CONFIDENTIAL TREATMENT REQUESTED UNDER 
 C.F.R. SECTIONS 200.80(b)(4), 200.83 AND 230.406. 
  
 **** INDICATES OMITTED MATERIAL THAT IS THE 
 SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST 
 FILED SEPARATELY WITH THE
COMMISSION. 
  
 THE OMITTED MATERIAL HAS BEEN FILED 
 SEPARATELY WITH THE COMMISSION. 
  
  
 Base Agreement Nr. 0248-00 
  
 BASE AGREEMENT 
  
 Base Agreement executed on September 1, 2003 between Pemex- Gas y Petroquímica Básica, hereinafter PGPB, represented by its Sales
Manager, Aty. Juan Marcelo Parizot Murillo, and RHODIA FOSFATADOS DE MEXICO, S.A. DE C.V. hereinafter the Purchaser, represented by its Director of Finance, Aty. Silvio Fagundes Lucinda in accordance to the following Declarations
and Clauses. 
  
 DECLARATIONS 
  
 PGPB declares: 
  

	I.	That it is a decentralized public entity of the Federal Government of the Mexican United States, of a technical, industrial and commercial character, with legal personality and its
own patrimony, and with legal capacity to execute this Base Agreement, in accordance to the Organic Law of Petroleos Mexicanos and Subsidiary Entities, published in the Official Daily of the Federation on July 16, 1982;

  

	II.	That it indicates its fiscal domicile to be at: Av. Marina Nacional 39, Torre Ejecutiva, 39th. floor, Col. Huasteca, C. V. 11311, Mexico, D.F. and that its R.F.C is PGP910716MT6; 

  

	III.	That in its character of decentralized public entity, its purpose is the processing of Natural Gas, Natural Gas liquids and artificial gas, the storage, transportation, distribution
and commercialization of these hydrocarbons, as well as its derivatives that may susceptible of serving as basic industrial raw materials; 

  

	IV.	That the First Hand Sales of Natural Gas are activities regulated by the Reglamentary Law of Constitutional Article 27 in the Field of Petroleum, the Natural Gas Regulations, the
Law of the Regulatory Commission of Energy, the directives issued by said Commission, the Terms and Conditions and other applicable dispositions; 

  

	V.	That it is willing to sell and deliver Natural Gas to the Purchaser in accordance with the Terms and Conditions; 

  

	VI.	That it has the organization, the elements and the technical, financial, commercial and legal capacity to meet all the obligations derived from this Base Agreement and from the VPM
Contracts; 

  

	VII.	That its legal representative, Aty. Juan Marcelo Parizot Murillo is empowered to execute this Base Agreement, as stated on Public Instrument No. 74.346, issued on
December 10, 1997, by Notary Public Nr. 114, of Mexico, D.F. Aty. Ma. Teresa Rodriguez y Rodriguez, same which, under protest to tell the truth, has not been modified or revoked 

 to the date of execution of this Base Agreement, and that he encloses a certified copy of
same on Attachment A. 
  
 The Purchaser declares: 
  

	I.	That it is an anonymous corporation of variable capital and accredits its personality by means of Public Instrument Nr. 65,786 issued on July 6, 2000, before Notary Public137,
of Mexico, D.F., Aty. Carlos de Pablo Serna and duly inscribed on the Public Registry of Property and Commerce of Mexico, D.F., on July 28, 2000, under number 103384; 

  

	II.	That it indicates its legal domicile to be at: Domicilio Conocido S/n, Com. Ind. Pajaritos, Coatzacoalcos, Veracruz and its R.F.C. is RFM00711PK4; 

  

	III.	That it recognizes that the sales of Natural Gas derived from this Base Agreement are First Hand Sales and that it submits to the Terms and Conditions; 

  

	IV.	That it wishes to acquire and receive from PGPB Gas Natural, subject to that established in this Base Agreement and the Terms and Conditions; 

  

	V.	That it has the organization, elements and technical, financial, commercial and legal capacity to fulfill the obligations that may derive from this Base Agreement;

  

	VI.	That its representative is empowered to execute this Base Agreement, as stated in the Power of Attorney contained in Public Instrument Nr. 65,788, issued on July 6, 2000 by
Public Notary Nr. 137 of Mexico, D.F., Aty. Carlos de Pablo Serna, and duly inscribed in the Public Registry of Property and Commerce of Mexico, D.F., on July 28, 2000, under number 103384, which, under protest to tell the truth, has not been
modified or revoked to the date of the execution of this Base Agreement, and that it encloses a certified copy of same in Attachment B; 

  

	VII.	That at the time of the execution of this Base Agreement it is up to date in the payment of its fiscal obligations. 

  
 The above having been stated, the parties agree to submit to
the following: 

 Base Agreement Nr. 0248-00 
  
 CLAUSES 
  
 CLAUSE 1 Objective. The objective of this Base Agreement is for PGBP to sell Gas to the Purchaser through the execution of VPM contracts and that the latter be
able to place Orders to PGBP, reason for which both parties submit to the Terms and Conditions. 
  
 CLAUSE 2. Incorporation of the Terms and Conditions. The Parties assume all the rights and obligations established in the Terms and Conditions, as they may be current, which form an integral part of this Base
Agreement and are herein accepted as reproduced same as if they were inserted. 
  
 CLAUSE 3 Payment. The payments to be made by the Purchaser to PGBP will be made through the following means, as available: 
  

			
	 1.      Payments in cash
	 	Deposit in banking account
	 2.      Electronic Transfer
	 	Banamex 08700036775 through
	 3.      Interbank payment
	 	 Linea Banamex
 Inverlat 4664426 (in this case it will
be necessary
 to open an electronic transfer contract)

  
 CLAUSE 4 Representatives. For
everything related to this Base Agreement and the VPM Contracts, both parties appoint the following persons as commercial, operative and financial representatives: 
  

			
	PGBP:	 	The Purchaser:
	 Representative:
	 	Representative:
	 Eng. Adrián Alvarez Arciga
	 	Aty. Silvio Fagundes Lucinda
	 Telephone: (5) 232-5967
	 	 Telephone:(5) 2832808

	 Telefax: (5) 232-6007
	 	 Telefax:(5) 2834500

	 E-mail
	 	 E-mail

	 Alvarez@gas.pemex.com
	 	 silvio.fagundes@rhodia.com.mx

		
	 Substituterepresentative:
	 	 SubstituteRepresentative:

	 Eng. Gerardo Gaona Ojeda
	 	 Eng. Rodolfo Menendez Menendez

	 Telephone:(5) 232-5958
	 	 Telephone(5) 2832819

	 Telefax:(5) 232-6007
	 	 Telefax:(5) 2882847

	 E-mail:
	 	 E-mail:

	 Ggaona@gas.pemex.com
	 	 rodolfo.menendes@rhodia.com.mx

  
  

 Base Agreement Nr. 0248-00 
  
 CLAUSE 5 Notifications. For the purpose of notifications and communications related to this Base Agreement and the VPM contracts, the
parties indicate the following as domicile, telephone number, telefax and E-mail: 
  

			
	PGBP:	 	 RHODIA FOSFATADOS DE MEXICO,
 S.A. DE
C.V.

		
	 Domicile:Av. Marina Nacional # 329
 Ind. Pajaritos, Coatzacoalcos, Veracruz
	 	Domicile: Domicilio Conocido s/n, Com.
		
	 Telephone:01 800 800 7472
	 	Telephone: (015) 2832819
	 Telefax:(5) 232-6014
	 	Telephone (015) 2832847
	 E-mail
	 	E-mail
	 Ggaona@gas.pemex.com
	 	rodolfo.menendes@rhodia.com.mx

  
 CLAUSE 6 Modifications. The
parties may agree on modifications to this Base Agreement and/or the VPM Contracts, by means of written agreement between both parties, which should be subject to the Terms and Conditions. In any event, the modifications to the Terms and Conditions
will be understood as integrated to this Base Agreement and to the corresponding VPM Contracts as of the date of their effectiveness. 
  
 CLAUSE 7 Arbitral commitment. The controversies that may arise between the parties in relation to this Base Agreement and the VPM Contracts, should be resolved
through the Arbitral procedure that the Purchaser may choose in accordance with Clause 31 of the Terms and Conditions. 
  
 CLAUSE 8 Duration. The duration of this Base Agreement will be indefinite as of November 1st, 2000. In testimony of which, the parties sign this Base Agreement in duplicate, in the City of Veracruz, Veracruz, on the above mentioned date. 

 

			
	 For   PGPB
	 	For the Purchaser
	 (Illegiblesignature)
	 	(Illegible signature)
	 Aty. Juan Marcelo Parizot Murillo
	 	Aty. Silvio Fagundes Lucinda
	 Sale Manager
	 	Director of Finance

 PEMEX 
 GAS
Y PETROQUIMICA BASICA 
 Subdirección de Gas Natural 
 Gerencia de Ventas 
 Subgerencia Regional Norte 

México, D.F., October 3, 2003 
 “2003, Year of the CCL Anniversary of the Birthdate of 
 Don Miguel Hidalgo y Costilla, Father of the Country” 

 
 SRN – 103/2003 
  
 Rhodia Fosfatados de México, S.A. de C.V. 
 Lilian Diaz Gonzalez Gallardo 
 Tel. 4322-4823 
 Fax: 5322-4898 
  
 Subject: Results of the Commercial Justification for the Reduction of Warranties 2003-2004 
  
 As you are aware, for the purpose of reducing the cost of carrying out commercial
transactions with Pemex Gas and Basic Petrochemical, through the evaluation of your financial statements we offered you the option to reduce or eliminate the submittance of a warranty. 
  
 Since the results of this analysis did not favor your company for the exemption of the warranty, as an additional effort, this Office
presented a Commercial Justification to the Credit Committee of this Entity, in which the partial or total exemption of this warranty was again requested. 
  
 For this reason I am pleased to notify you that the Credit Committee of this Entity authorized the total exemption to your company for Commercial Justification for a
period of 6 months as of October 1st. 2003 to March 31st. 2004, for a limit of credit corresponding to $13,922,975. 
  
 We do not omit to mention that this exemption was conditioned to the timely payment of your consumption, underlining the fact that if your company incurs in 1
non-compliance during the above mentioned period, the exemption to this warranty will be automatically canceled, and you must then submit the corresponding warranty for an amount that shall be informed by this office, or else, in the event that may
want to continue carrying out your consumption without warranty, you will be able to do so under the basis of prior payment. 
  
 Without further comment, please receive a cordial greeting. 
  
 Sincerely, 
 (Signature) 
 Eng. Gerardo Gaona Ojeda 
 Asst. Manager 
 c.c. Aty. Marcelo Parizot M., Sales Manager 

					
	Marina Nacional 329	 	“At PGPB the highest priority is the	 	Tel: (55) 5232-5958
	 EdificioB- 1 9th. Floor
	 	of our workers, our clients, our neighbors	 	5232-5960
	Col. Huasteca	 	and the environment”	 	 Fax: (55) 5232-6008
 5232-6014

 Mexico, D.F., November 11, 2003. 
  
 Pemex-Gas y Petroquímica Básica. 
 Sub-Direction for Natural Gas. 
 Business Development Managing Bureau 
 Present, 
  
 Attention:
Atty. Javier R. López Ramos. 
  
 I, JOSE ROBERTO FLORES ATHIE
legal representative of RHODIA FOSFATADOS DE MEXICO, S.A. DE C.V., as stated in public instrument 70,939, dated January 30, 2002, issued by Atty. CARLOS DE PABLO SERNA, NOTARY PUBLIC Number 137, of MEXICO CITY,
FEDERAL DISTRICT, hereby inform you the following: 
  
 Through this means, and
in the exercise of the powers vested in me through public the instrument referred to in the preceding paragraph, in the name and representation of RHODIA FOSFATADOS DE MEXICO, S.A. DE C.V., I expressly manifest my acceptance, and therefore,
adhesion to all of the terms and conditions of the Master Contract of Coverage whose execution is offered by Pemex-Gas y Petroquímica Básica, to provide its Clients with coverage mechanisms that will protect them against the
fluctuations that may occur in the price of natural gas sold and delivered under the Purchase/sale Contracts, as the latter concept is defined in the text of said contract. 
  
 To this effect, I make the following declarations: 
  

	 	A.	Name, trade name or denomination of the represented. RHODIA FOSFATADOS DE MEXICO, S.A. DE C.V. 

	 	B.	Public instrument(s) in which the incorporation of the represented is stated? PUBLIC INSTRUMENT number 22,607, dated DECEMBER 15, 1987, issued by NOTARY
PUBLIC number 136 of MEXICO CITY, FEDERAL DISTRICT, Attorney JOSE MANUEL GOMEZ DEL CAMPO LOPEZ, which was duly inscribed in the Public Registry of Commerce de MEXICO, FEDERAL DISTRICT, under MERCANTILE DOCKET NUMBER 103384,
on MAY 25 1988; which has INDEED been modified. 

  
 *NOTE: SHOULD THERE BE A MODIFICATION TO THE CLIENT’S INCORPORATION, PROVIDE THE DATA OF THE PUBLIC INSTRUMENT (S) WHERE THESE ARE ESTIPULATED AS INDICATED FOREWITH, OTHERWISE OMIT THE FOLLOWING PARAGRAPHS. 

	 	    	Said modification(s) is stated in: PUBLIC INSTRUMENT number 83,289, dated JULY 23, 1992, issued by NOTARY PUBLIC number 83 of
MEXICO CITY, FEDERAL DISTRICT, Attorney ALBERTO T. SANCHEZ COLIN, which was duly inscribed in the Public Registry of Commerce of MEXICO CITY, FEDERAL DISTRICT under MERCANTILE DOCKET NUMBER 103384, on AUGUST 7,
1992. 

  
 * NOTE: COMPLETE THE FOLLOWING PARAGRAPH
ONLY WHEN THERE IS ONE OR MORE ADDITIONAL MODIFICATIONS TO THE ONE INDICATED IN THE PRECEDING PARAGRAPH. 
  

	 	    	Likewise, other(s) appear in the following public instrument(s) 1) PUBLIC INSTRUMENT 34,108 DATED DECEMBER 26, 1984, ISSUED BY NOTARY PUBLIC NUMBER 33 OF MEXICO CITY, FEDERAL
DISTRICT, ATTORNEY EDUARDO FLORES CASTRO ALTAMIRANO, WHICH WAS DULY INSCRIBED IN THE PUBLIC REGISTRY OF COMMERCE OF MEXICO CITY, FEDERAL DISTRICT UNDER MERCANTILE DOCKET NUMBER 103384, ON MARCH 7, 995. 

	 	2) PUBLIC INSTRUMENT NUMBER 65,786, DATED JULY 6 2000, ISSUED BY NOTARY PUBLIC NUMBER 137 OF MEXICO CITY, FEDERAL DISTRICT, ATTORNEY CARLOS DE PABLO SERNA, WHICH WAS DULY
INSCRIBED IN THE PUBLIC REGISTRY OF COMMERCE OF MEXICO CITY, FEDERAL DISTRICT, UNDER MERCANTILE DOCKET 103384, ON JULY 28, 2000. 

  

	 	C.	Name of the legal representative. JOSE ROBERTO FLORES ATHIE. 

  

	 	D.	Quality and powers of the representation. The legal representative in his character of ENPOWERED, has sufficient powers to subscribe, in the name and representation of
RHODIA FOSFATADOS DE MEXICO, S.A. DE C.V., the Master Contract of Coverage whose execution is offered by Pemex-Gas y Petroquímica Básica, derived from a general power or special power or commission to execute said contract.

  

	 	E.	Public instrument in which the powers of representation are accredited. PUBLIC INSTRUMENT NUMBER 70,939, DATED JANUARY 30, 2002, ISSUED BY NOTARY PUBLIC NUMBER 137 OF
MEXICO CITY, FEDERAL DISTRICT, WHICH WAS DULY INSCRIBED IN THE PUBLIC REGISTRY OF COMMERCE OF MEXICO CITY, FEDERAL DISTRICT, UNDER MERCANTILE DOCKET 103384, ON FEBRUARY 14, 2002. 

  

	 	F.	Fiscal domicile. AVENIDA 5 Y 12 COMPLEJO INDUSTRIAL PAJARITOS, COATZACOALCOS, VERACRUZ, C.P. 96380. 

  

	 	G.	Federal registry of taxpayers. RFM000711PK4 

	 	H.	Purchase/Sale Contract(s), as defined in the Master Contract of Coverage. BASE AGREEMENT EXECUTED ON SEPTEMBER 1, 2000, BETWEEN PEMEX GAS Y PETROQUIMICA BASICA,
HEREINAFTER PGPB, REPRESENTED BY ITS SALES MANAGER, ATTY. JUAN MARCELO PARIZOT MURILLO, AND RHODIA FOSFATADOS DE MEXICO, S.A. DE C.V., HEREINAFTER THE PURCHASER, REPRESENTED BY ITS DIRECTOR OF FINANCE, ATTY. SILVIO FAGUNDES LUCINDA.

  

	 	I.	Names, data and signatures of the authorized person(s) referred to in Attachment 1 of the Master Contract of Coverage. The following persons are authorized to carry out
operations of coverage in accordance with the Master Contract of Coverage: 

  

	 	    	LILIAN DÍAZ GONZALEZ GALLARDO 

	 	    	5322-4823 

	 	    	FAX 5322-4898 

	 	    	Lilian.diaz@rhodia.com.mx 

	 	    	<SIGNATURE> 

  

	 	    	IRIS MAGDALENA ALVARADO VERGARA 

	 	    	01-921-9212115545 

	 	    	FAX 01 –9212115592 

	 	    	iris.alvarado@rhodia.com.mx 

  

	 	J.	Domicile to receive notifications, communications and requests in accordance to clause 11.1. The designated domicile is INSURGENTES SUR, NR. 1971, TORRE 3, 6TH. FLOOR, COLONIA GUADALUPE INN, C.P. 01020, MEXICO, FEDERAL DISTRICT. 

	 	K.	Designation and data of the person(s) authorized as contact, for the purpose of making and receiving notifications under the terms of clause 11.1 of the Contract of Coverage.

  

			
	 •     Contacts:
	  	 Name: PABLO GERARDO LOPEZ SANCHES
 Telephone: 5322-4870
 Fax: 5322-4896
 e-mail: pablo.lopezs@rhodia.com.mx
  
 Name: LILIAN DIAZ GONZALEZ GALLARDO
 Telephone: 5322-4823
 Fax: 5322-4898
 e-mail: lilian.diaz@rhodia.com.mx

	 	  	 

  
 Likewise, as sign of my conformity
with respect to the terms and conditions of the Master Contract of Coverage whose execution is offered by Pemex Gas y Petroquimica Basica, I forward this letter via fax to the latter, accompanied by the following documents: 
  

	 	1.	Plain copy of the fiscal cedule of RHODIA FOSFATADOS DE MEXICO, S.A. DE C.V. 

	 	2.	Plain copy of the official identification with photograph of the legal representative, consisting of <VOTERS CERTIFICATE NUMBER 3229006393776. 

  
 And I commit to deliver, within the 90 Days following the signature of this
letter, at the domicile of the Gerencia de Desarrollo de Negocios located at Marina Nacional 329, building B-1, 9th.
Floor, Colonia Huasteca. C.P. 11311, the documents listed below: 
  

	 	1.	Original of the Letter of Acceptance duly filled and signed on the margin and on the bottom by the signee. 

  

	 	2.	2. CERTIFIED COPY and plain copy of the Public Instrument(s) related to items B and E, in order that, prior comparison, the original(s) be returned by Pemex-Gas y
Petroquímica Básica. The above is in the event that said public instruments be already in the possession of Pemex-Gas y Petroquímica Básica for the signature of Purchase/Sale Contracts. 

  
 Thus, I agree that RHODIA FOSFATADOS DE MEXICO, S.A. DE C.V. remains under obligation,
as of the date of signature of this letter, to the compliance of the terms and conditions that appear in the Master Contract of Coverage, whose execution is offered by Pemex-Gas y Petroquímica Básica and which is hereby accepted, as
well as the consequences that, according to the nature of same, are in accordance with good faith, with the use or with the law. 
  
 Notwithstanding the above, I agree that Pemex-Gas y Petroquímica Básica may terminate the Master Contract of Coverage if RHODIA FOSFATADOS DE MEXICO S.A.
DE C.V. fails to comply with the presentation of the documents mentioned above at the end of the 90 days following the date of the signature of this Letter. 
  

(Signature) 

 JOSE ROBERTO FLORES ATHIE 

 MASTER CONTRACT OF COVERAGE 
  
 EXECUTED BY 
  
 PEMEX GAS Y PETROQUÍMICA BÁSICA 
  
 AND 
  
 RHODIA FOSFATADOS DE MEXICO, S.A. DE C.V. 
  
 Dated 
  
 November 11, 2003 

 MASTER CONTRACT OF COVERAGE 
 INDEX 
  

					
	 1.
	  	DEFINITIONS AND INTERPRETATION	  	5
	 	  	1.1 DEFINITIONS	  	5
	 	  	1.2 Interpretation	  	12
	 2.
	  	PURPOSE	  	12
	 3.
	  	EXECUTION OF A COVERAGE OPERATION	  	13
	 	  	3.1 Estimate requirement	  	13
	 	  	3.2 Estimate	  	13
	 	  	3.3 Execution of Coverage Operations	  	13
	 	  	3.4 Confirmation	  	14
	 	  	3.5 Lack of Confirmation	  	14
	 	  	3.6 Liquidation of Coverage Operations	  	14
	 	  	3.7 Authorized Personnel	  	15
	 4.
	  	CALCULATION OF ADJUSTMENTS PER COVERAGE	  	15
	 	  	4.1 Calculation of Adjustment per Coverage for one Fixed	  	15
	 	  	4.2 Calculation of Adjustment per Coverage for one Ceiling	  	16
	 	  	4.3 Calculation of Adjustments per Coverage for a Tunnel	  	17
	 	  	4.4. Calculation of Adjustment per Coverage for one Floor	  	17
	 	  	4.5 Calculation for Adjustment per Coverage for one Fixed of 2004-2006	  	18
	 	  	4.6 Calculation of Adjustment for Coverage of a Fixed 2004 annotated to 6.00 USD/MMBtu	  	19
	 	  	4.7 Verification of Coverage for 2005-2006	  	19
	 	  	4.8 Calculation of Adjustment per Coverage of Other Coverage Operations	  	20
	 	  	4.9 Non Availability of the Agreed Upon Index	  	20
	 5.
	  	INVOICING OF ADJUSTMENTS PER COVERAGE	  	21
	 	  	5.1 Invoicing on Valuation Date	  	21
	 	  	5.2 Invoicing for voluntary Liquidation of Open Operations	  	21
	 	  	5.3 Invoicing of Liquidation operations for Non Compliance	  	22
	 	  	5.4 Obligatoriety of the Adjustments per Coverage	  	22
	 	  	5.5 Non Compliance in the Payment of the Adjustments per Coverage	  	23
	 6.
	  	NON COMPLIANCE IN THE RECEPTION OR NOMINATION OF VOLUMES SUBJECT TO ONE COVERAGE OPERATION	  	23
	 7
	  	NOTIFICATION OF ADJUSTMENTS PER COVERAGE	  	23
	 	  	7.1 Notification on behalf of PGPB	  	24
	 	  	7.2 Acceptance of the Notification	  	24
	 8.
	  	VALUATION OF OPEN OPERATIONS	  	24
	 	  	8.1 Valuation of Open Operations	  	24
	 	  	8.2 Calculation of Market Values for Establishing Collateral Warranties	  	25
	 	  	8.3 Calculation methodology for the determination of the amount of the Valuation of Open Operations	  	25

					
	 	  	8.4 Calculation methodology for the determination of the client’s Daily Balance	  	25
	 9.
	  	CREDIT CONDITIONS AND ESTABLISHMENT OF WARRANTIES	  	26
	 	  	9.1 Credit Conditions to realize Coverage Operations	  	26
	 	  	9.2 Exemption of the deposit of Coverage Warranties	  	26
	 	  	9.3 Establishment and Liberation of Collateral Warranties	  	26
	 	  	9.4 Exemption of the deposit of Collateral Warranties	  	26
	 10.
	  	CAUSES AND EFFECTS OF RESCISSION AND TERMINATION	  	27
	 	  	10.1 Causes for Rescission	  	27
	 	  	10.2 Notification and Period of Remedy	  	28
	 	  	10.3 Causes for Termination	  	28
	 	  	10.4 Effects of Rescission and Termination	  	29
	 	  	10.5 Amounts due with Respect to Liquidation Operations	  	29
	 	  	10.6 Payment of the Amounts Owed	  	30
	 	  	10.7 Reference for Determining Market Values	  	30
	 	  	10.8 Taxes	  	31
	 11.
	  	GENERAL PROVISIONS	  	31
	 	  	11.1 Notifications	  	31
	 	  	11.2 Domicile for Payment of Coverage Operations	  	32
	 	  	11.3 Electronic Taping of Telephone Conversations	  	32
	 	  	11.4 Change of Circumstances	  	32
	 	  	11.5 Limitation of Responsibility; Maximum Amount of Indemnity	  	33
	 	  	11.6 Cession	  	33
	 	  	11.7 No Stipulation in Favor of Third Parties	  	33
	 	  	11.8 Autonomy of the Provisions	  	33
	 	  	11.9 Amendments	  	33
	 	  	11.10 Applicable Legislation	  	34
	 	  	11.11 Solution of Controversies	  	34
	 	  	11.12 Integrity of the Contract	  	35
	 	  	11.13 Duration	  	35
	 	  	11.14 Confidentiality of the Contract	  	36
	 	  	11.15 Exchange parity	  	36
	 12.
	  	FORCE MAJEURE	  	36
	 Attachment 1 – Authorized Persons
	  	38
	 Attachment 2 – Confirmation Format
	  	39
	 Attachment 3 – Alternative Sources of Price
	  	39
	 Attachment 4 – Notification of Valuation instruments
	  	39
	 Attachment 5 – List of Leading Leaders to be designated as independent Court Appointed Expert
	  	40

  

 -2- 

	Classification	date: December 16, 2003         Administrative Unit: Gerencia de Commercialization 

	Classification:	Reserved         Classified parts or sections: 3 pages         Reserve time: 12 years

 Legal basis: Art. 18 Fract I; Art. 13 Fract. II; Art. 14 Fract. II of the Federal Law of Transparency and Access to Public Government
Information. 
  
 Signature of the TitleHolder of
the Administrative Unit: ____________ Period and date of reserve extension:_____ 

	Date	of de-classification: Name and signature of the de-classifying public servant_____________ 

  

			
	 PemexGas y Petroquímica Básica
 Sub-Directionfor Natural Gas
 Av. Marina Nacional 329
 Building B-1, 9th. Floor
 Col. Huasteca
 Delegación Miguel Hidalgo
 11311 México, D.F.
	 	 Tel (0155) 1944 5953/54/55
 Fax (0155) 1944
6010

	 	 	 (Logo) PEMEX
 GAS Y PETROQUÍMICA
BÁSICA
 Mexico, D.F., April 21, 2005

	 Lilian Díaz González Gallardo
 Representative
 Rhodia Fosfatados de México, S.A. de C.V.
 Telephone: 5322 4823
 Insurgentes Sur Nr. 1971
 Torre III, 6th. Floor
 Col. Guadalupe Inn
 Delegación Alvaro Obregón
 C.P. 01020
 México, D.F.
	 	 

  
  
 Dear Lilian: 
  
 Enclosed I am forwarding two originals of the Confirmations of Coverage Transactions between PGBP and your company (based on the format of Attachment 2 of the Master
Contract of Coverage) for your signature. I will appreciate your returning one original duly signed for our files, within the next five working days. If for any reason you are unable to forward them within this lapse of time, please get in touch
with us to notify us. 
  
 It is important to mention that in the confirmations of
Coverage Transactions the following are specified amongst others: 
  
 1. The type of coverage agreed upon (it can be: a fixed price or a ceiling price or a tunnel price) 
  
 2. The amount covered (the volume) 

 3. The agreed upon price 
 4. The index applying to the coverage 
 5. The contract date of the coverage 
  
 Without anything further at the moment I send you a cordial greeting. 
  
 Sincerely, 
 (Signature) 
 Atty. Ilse Ballesteros 
  

 -2- 

 Date of confirmation:
02-Dec-04             Hour: 02:01 p.m. 
 Dte of closing: 02-Dec-04 C-04-0627

 Índex: IFERC’s TETCO STX 
  
 Confirmation of Transactions of 
 Coverage between PGPB and 
 Nr. of Contrat: CMC-2000-036 
 Contract price of natural gas: 
  
 Transaction 
 Fixed Price 
  

									
	 Invoicing
 Period
	 	Month/Year	 	 Amount
 Covered
 MMBtu
	 	 Fixed Price
 USD/MMBtu
	 	Valuation Date
					
	1st. Period	 	Jan-05	 	(****)	 	(****)	 	(****)
	2nd. Period	 	Jan-05	 	(****)	 	(****)	 	(****)
	1st,. Period	 	Jan-05	 	(****)	 	(****)	 	(****)
	2nd. Period	 	Jan-05	 	(****)	 	(****)	 	(****)
	1st. Period	 	Mar-05	 	(****)	 	(****)	 	(****)
	2nd. Period	 	Mar-05	 	(****)	 	(****)	 	(****)

  

									
	 Invoicing
 Period
	 	Month/Year	 	 Covered
 Amount MCal
	 	 Fixed Price
 MCal
	 	 Date of
 Valuation

					
	1st. Period	 	Jan-05	 	(****)	 	(****)	 	(****)
	2nd. Perod	 	Jan-05	 	(****)	 	(****)	 	(****)
	1st. Period	 	Jan-05	 	(****)	 	(****)	 	(****)
	2nd. Period	 	Feb-05	 	(****)	 	(****)	 	(****)
	1st. Period	 	Mar-05	 	(****)	 	(****)	 	(****)
	2nd. Perod	 	Mar-05	 	(****)	 	(****)	 	(****)

  
  

 Pemex Gas y Petroquímica básica 
 Lic. Ilse Fernanda Martínez 
  
  

 Rhodia Fosfatados de México, S.A de C.V 
 Srita. Lillán Díaz González Gallardo 
  

 -3- 

 MASTER CONTRACT OF COVERAGE 
  
 Master Contract of Coverage executed on November 11, 2003 between Pemex-Gas y Petroquímica Básica (“PGPB”).
Represented by Javier Ramón López Ramos, and Rhodia Fosfatados de Mexico, S.A. de C.V. (the “Customer”), represented by Jose Roberto Flores Athie, under the following declarations and clauses. 
  
 DECLARATIONS 
  
 PGPB declares through its representative that: 

 

	 	I.1	It is a Decentralized Public Entity, Subsidiary of Petróleos Mexicanos, of a technical, industrial and commercial character, with legal personality and its own patrimony, and
with the legal capacity to execute this Contract, in accordance with the Organic Law of Petróleos Mexicanos and Subsidiary Entities, published in the Official Daily of the Federation on July 16, 1992. 

  

	 	I.2	It has executed one or more Purchase/Sale Contracts (as said term is defined further on), in accordance with which PGPB has obligated itself to sell and deliver natural gas to the
Customer, from time to time and under the terms and conditions agreed upon therein. 

  

	 	I.3	The Purchase/Sale Contracts mentioned above establish, among other things, that the price to be paid by the Customer for the natural gas delivered in accordance with said
Purchase/Sale Contracts will be the price that, from time to time, is current as per the formula for the calculation of the price established therein. 

  

	 	I.4	PGPB is prepared to provide the Customer coverage mechanisms against fluctuations that, as a result of the application of the formula for the calculation of the established price in
said Purchase/Sale Contracts, may occur in the price of natural gas sold and delivered under those Purchase/Sale Contracts. 

  

	 	I.5	It accredits the powers of its legal representative by means of the power protocolized with Public Instrument Nr. 65,171 issued by Notary Public Nr. 26 of México, Federal
District, Atty. Luis Alberto Perera Becerra, on December 31, 2001, affirming that said powers have not been revoked or limited to him in any form to the date of the execution of this Contract. 

  

	 	I.6	Its fiscal domicile is located at Av. Marina Nacional # 329, colonia Huasteca, delegación Miguel Hidalgo, México, Distrito Federal, postal code 11311, and that the
number of his Federal Registry of Taxpayers is PGP –920716-MT6. 

  

	 	I.7	It has sufficient technical and financial capacity to execute this Contract and to comply with the obligations that may derive from it. 

  

	 	I.8	Its determinant motive to execute this Contract is to provide the Customer with coverage mechanisms that will protect him against the fluctuations that may occur in the price of
natural gas sold and delivered under the Purchase/Sale contracts. It is not its intention to speculate with the 

  

 -4- 

	 	    	price of this hydrocarbon nor to support the Customer in carrying out coverage operations having speculation purposes. 

  

	 	II	The Customer declares through its representatives that: 

  

	 	II.1	It is a mercantile corporation legally incorporated in accordance with the laws of the Mexican United States, as accredited with Public Instrument number 22,607, dated December 15,
1987, issued by Notary Public number 136 of Mexico City, Federal District, Attorney Jose Manuel Gomez del Campo Lopez, which was duly inscribed in the Public Registry of Commerce de Mexico, Federal District, under Mercantile Docket number 103384, on
May 25 1988; which has indeed been modified. Said modification(s) is stated in: Public Instrument number 83,289, dated July 23, 1992, issued by Notary Public number 83 of Mexico City, Federal District, attorney Alberto T. Sanchez Colin, which was
duly inscribed in the Public Registry of Commerce of Mexico City, Federal District under Mercantile Docket number 103384, on August 7, 1992. Likewise, other modifications appear in the following public instrument(s) 1) Public Instrument 34,108 dated
December 26, 1984, issued by Notary Public number 33 of Mexico City, Federal District, attorney Eduardo Flores Castro Altamirano, which was duly inscribed in the Public Registry of Commerce of Mexico City, Federal District under Mercantile Docket
number 103384, on March 7, 995. 2) Public Instrument number 65,786, dated July 6 2000, issued by Notary Public number 137 of Mexico City, Federal District, attorney Carlos de Pablo Serna, which was duly inscribed in the Public Registry of Commerce
of Mexico City, Federal District, under Mercantile Docket 103384, on July 28, 2000. 

  

	 	II.2	It has executed one or more Purchase/Sale Contracts, in accordance with which obligated itself to purchase, receive and pay for, from time to time, natural gas delivered by PGPB
under the terms and conditions agreed upon therein. 

  

	 	II.3	It has requested PGPB to provide it diverse coverage mechanisms against fluctuations in the price of natural gas purchased and received in accordance with said Purchase/Sale
Contracts. 

  

	 	II.4	It has sufficient technical and financial capacity to execute this Contract and to fulfill the obligations that may derive from it. 

  

	 	II.5	It accredits the powers of its legal representative(s) by means of Public Instrument number 70,939, dated January 30, 2002, issued by Notary Public number 137 of Mexico City,
Federal District, which was duly inscribed in the Public Registry of Commerce of Mexico City, Federal District, under Mercantile Docket 103384, on February 14, 2002; and affirms that said powers have not been revoked or limited in any form to the
date of execution of this Contract. 

  

	 	II.6	Its fiscal domicile is located at Avenida 5 y 12 Complejo Industrial Pajaritos, Coatzacoalcos, Veracruz, C.P. 96380 and the number of its Federal Registry of Taxpayers is
RFM000711PK4. 

  

	 	II.7	It is its wish to execute this Contract, in order to be able to carry out different coverage operations only to protect itself from the volatility in the price of natural gas
purchased and received in accordance with the Purchase/Sale Contracts it has subscribed with PGPB. It does not pretend to speculate with the price of natural gas. 

  
 Based on the above declarations, the Parties agree to the following clauses: 
  
 1. DEFINITIONS AND INTERPRETATION 
  
 1.1 DEFINITIONS 
  
 For this Contract, the following terms will have the meaning mentioned forthwith: 
  
 “Adjustment per Coverage”, means the amount in favor
or against the Client that constitutes, as the case may be, an obligation to pay or a right to collect the corresponding amount and that reflects the result realized from one or various Coverage Operations on one specific date, including without
limiting the amount of Premiums, as detailed in Clauses 4 and 5 of this Contract, The Adjustment per Coverage could be the result of the valuation of one or several Coverage Operations on a fixed date, or else the liquidation of same with Operations
of Liquidation. 
  
 “Government
Authority”, means the state entity of the executive, legislative or judicial branch, of the federal, state or municipal government, and with faculties of decision or execution 
  

 -5- 

 whose exercise causes the creation, modification or extinction of the matter in question. Included in this definition
are: any secretariat, department, branch, decentralized entity (including the CRE without limitation), court, tribunal, commission, legislative, executive or judicial entity, whether they be federal or state and any other similar authority, that may
produce in an imperative, unilateral and coercitive manner, the creation, alteration or affectation of the situation in question. 
  
 “Quantity per Consumption Period”, means the volume or nominal quantity of natural gas, expressed in MMBtus, agreed upon by the
Parties in the terms and conditions of the Coverage Operation, specified in the Confirmation of same and applicable for a Consumption Period. 
  
 “Coverage 2004 – 2006”, is the scheme of Coverage Operations in which PGPB will publish Quotations of (i) Fixed Price
for three Consumption Periods (offer of the day), whose contracting period will be up until June 30, 2004 for Industrial Clients consumers of Natural Gas, as well as for the Natural Gas Distributing companies, (ii) Fixed Price of 2004
– 2006 and (iii) Fixed Price annotated to 6.00 USD/MMBtu, where the contracting period will be up to October 14, 2003 for Natural Gas Distributing companies, up to November 7, 2003 for contracting operations up to 5,040 daily
giga calories and up to November 14, 2003 for consumptions under 2,520 daily giga calories. 
  
 “Credit Committee”, means the Institutional Credit Committee of Pemex-Gas y Petroquímica Básica or the collegiate
group or administrative unit that may substitute it in its study functions and resolution of credit applications for sale of products, services and coverage, as well as the aspects inherent to the handling and operation of same. 
  
 “Confirmation”, means the document subscribed by PGPB
with the Client, each time that a Coverage Operation is realized, which contains the conditions of each Coverage Operation, amongst others, the Quantity per Consumption Period, the Original Price, Consumption Price, Annotated Index, type of
instrument, date of operation and Date of Valuation, and whose format is shown in Attachment 2 – “Confirmation Format”. 
  
 “Recuperation Cost”, is the value stipulated in the Confirmation to which Clause 3.4 of the Contract refers, calculated in the
following manner: for the case of the Fixed of 2004-2006, it is the difference between the sale quotation for a Fixed from January 2004 to December, 2006 of the day of closing of the Coverage Operation and the Fixed Price of 2004-2006; multiplied by
the Quantity for total Consumption Period. 
  
 For the case of the
Fixed in 2004 annotated at 6.00 USD/MMBtu, is the difference between: (i) the sales quotation of a Fixed for 2004 (ii) less the purchase quotation of a Ceiling at 6.00 USD/MMBtu for 2004 and (iii) the Fixed in 2004 annotated at 6.00
USD/MMBtu, of the day of closing of the Coverage Operation; multiplied by the Quantity for the total Consumption Period; 
  
 “Contract”, is this Master Contract of Coverage, including all its attachments, modifications or supplements in accordance with
Clause 11.9 of same. 
  
 “Purchase/Sale
Contract”, means the following contract(s) executed between PGPB and the Client: Base Agreement executed on September 1, 2000, between Pemex Gas y Petroquimica Basica, hereinafter PGPB, represented by its sales manager, atty. Juan
Marcelo Parizot Murillo, and Rhodia Fosfatados de Mexico, S.A. De C.V., hereinafter the Purchaser, represented by its Director of Finance, atty. Silvio Fagundes Lucinda, whether jointly or separately and including its corresponding modifications.

  

 -6- 

 “Informative Quotation”, is the information that PGPB provides the Client at his
request, either oral or written, which will serve only as reference of the prices requested, and will not be considered as a Confirmation of a Coverage Operation until there is full compliance with that established in Clause 3.3 of this Contract.

  
 “CRE”, means the Energy Regulatory
Commission, decentralized entity of the Secretariat of Energy. 
  
 “Day”, means any natural day. 
  
 “Working Day”, means any Working Day of Mexico and Working Day of the United States. 
  
 “Working Day of the United States”, means any Day in which the financial markets are open to the public in the City of New York of
the United States of America. 
  
 “Working Day of
Mexico”, means any Day, with the exception of Saturdays and Sundays, the mandatory days off, according to the Federal Labor Law in effect and the holidays contractually established in the Collective Labor Contract executed between
Petróleos Mexicanos by itself and in representation of Pemex- Exploración y Producción, Pemex Refinación, Pemex- Gas y Petroquímica Básica and the Union of Petroleum Workers of the Mexican Republic in effect
or in the Collective Contract that may substitute it. 
  
 “Dollars”, means the currency of legal tender in the United States of America. 
  
 “Date of Liquidation”, means the date on which all the Open Operations of Coverage must be paid in accordance with this contract.

  
 “Date of Valuation”, means the date
stipulated in the Confirmation, in which the value of the Agreed Upon Indexes used for the calculation of Adjustments for Coverage is known. 
  
 “Fixed”, is a Coverage Operation which allows the Parties to agree on the expected value of a price Index at a pre-determined
level, in accordance with which (a) when on the Date of Valuation, the Agreed Upon Index is less than the Fixed Price the purchaser will pay the seller the difference between the Fixed Price and the Agreed Upon Index in the Confirmation
of the Coverage Operation, multiplied by the Quantity per Consumption Period; or (b) when on the Date of Valuation, the Agreed Upon Index is higher than the Fixed Price the purchaser will collect from the seller the difference between
the Fixed Price and the Agreed Upon Index, multiplied by the Quantity per Consumption Period. 
  
 “Fixed of 2004-2006”, is a Coverage Operation which allows the Parties to agree on the expected value of an Index at a level of the Fixed Price of 2004-2006 for the Consumption Period of
January 2004 to December 2006, in accordance with which (a) when on the Date of Valuation, the Agreed Upon Index is lower than the Fixed Price of 2004-2006, the purchaser will pay the seller the difference between the Fixed Price of 2004-2006
and the Agreed Upon Index in the 
  

 -7- 

 Confirmation of the Coverage Operation, multiplied by the Quantity of the Consumption Period; or (b) when on the
Valuation Date, the Agreed Upon Index is higher than the Fixed Price of 2004-2006, the purchaser will collect from the seller the difference bewteen the Fixed Price of 2004-2006 and the Agreed Upon Index, multiplied by theQuantity for the
Consumption Period. 
  
 “Fixed 2004 annotated at 6.00
USD/MMBtu”, is a Coverage Operation, which allows the Parties to agree on the expected value of an Index at a pre-determined level with an annotated protection, in accordance with which (a) when on the Valuation Date, the Agreed
Upon Index is lower than the Fixed Price 2004 annotated at 6,00 USD/MMBtu the purchaser will pay the seller the difference between the Fixed Price 2004 annotated at 6.00 USD/MMBtu and the Agreed Upon Index in the Confirmation of the Coverage
Operation, multiplied by the Quantity per Consumption Period; or (b) when on the Valuation Date, the Agreed Upon Index is higher than the Fixed Price 2004 annotated at 6.00 USD/MMBtu and lower than 6.00 USD/MMBtu, the purchaser will collect
from the seller the difference between the Fixed Price 2004 annotated at 6.00 USD/MMBtu and the Agreed Upon Index , multiplied by the Quantity per Consumption Period; or (c) when on the Valuation Date, the Agreed Upon Index is higher than 6.00
USD/MMBtu, the purchaser will collect from the seller the difference between the Fixed Price 2004 annotated at 6.00 USD/MMBtu and 6.00 USD/MMBtu, multiplied by the Quantity per Consumption Period. 
  
 “Alternative Source of Prices”, means the Primary
Alternative Source of Price or a Secondary Alternative Source of Price when the case occurs in which the Agreed Upon Index is not avail able. 
  
 “Primary Alternative Source of Price”, means the Alternative Source of Prices used to determine the Agreed Upon Index when the
Index (es) used for its calculation is (are) not available, stipulated in accordance with Attachment 3 of this contract. 
  
 “Secondary Alternative Source of Prices”, means that the Alternative Source of Prices used to determine the Agreed Upon Index when
the Primary Alternative Source of Price is not available, stipulated in accordance with Attachment 3 of this Contract. 
  
 “Coverage Warranty”, means the Stand By letter of credit and/or letter of solidary responsibility with prior authorization from
the Credit Committee and/or cash deposits that determine the Operative Limit for Coverage and through which the compliance of the payment obligations derived from this Contract chargeable to the Client is assured. 
  
 “Collateral Warranties”, means any one of the
following warranties: (I) Stand By letter of credit; or (ii) cash deposit which the Client must grant in favor of PGPB at the moment that the Daily Balance is higher than the Operative Limit of Coverage, in terms of this Contract.

  
 “Electronic Recording”, means the
registry of telephone conversations held between the Persons Authorized by the Client and PGPB, that the latter performs on a magnetic tape. 
  
 “Amount Due”, means, in relation to any Operation of Liquidation, the amount resulting by following the procedure described in
Clause 10 of this Contract. 
  

 -8- 

 “Indexes”, means the list of prices of natural gas of referred
markets to one gas duct or to a zone in particular or to both, within the United States of America, issued by a publication known at international level, or any other publication mutually agreed upon by the Parties. 
  
 “Agreed Upon Index”. Means the
Index(es) on which the Coverage Operation is carried out and appears specified in the Confirmation. 
  
 “Non Compliance”, means any of the non-compliance events outlined in Clause 10.1 of this Contract. 
  
 “Past Due Interest”, means the past
due interest due by the Client to PGPB in accordance to each one of the Purchase/Sale Contracts and in accordance wit this Contract. 
  
 “Leading Leaders”, means any commercializing company leader in financial derivatives of natural gas in the
United States of America, that has at least one credit rating higher or equal to a ‘BBB’ by Standard & Poor’s Corporation or its equivalent in Moody’s Investors Service, Inc. 
  
 “Applicable Laws”, means the federal
laws and dispositions in effect in the United Mexican States issued by a Government Authority, as well as the applicable state and municipal dispositions in effect in Mexico as the case may be. 
  
 “Operative Limit for Coverage”,
means the revolving amount that PGPB authorizes to the Client, so that for the account of same, in one or several dispositions, he carry out Coverage Operations. 
  
 “Stock Market”, means the market in which Coverage Operations are carried out
through third parties and operates through a stock market of futures properly constituted. In this Contract it refers to the stock exchange of futures of New York (New York Mercantile Exchange or NYMEX). 
  
 “Extra Stock Market”, means the
market in which the Coverage Operations are carried out between individuals and does not operate through a stock market of futures known in the international markets as “Over the Counter”. 
  
 “Mexico”, means the United Mexican
States. 
  
 “MMBtu”,
means one million British thermal units (British thermal units). 
  
 “Coverage Operation”, means an operation to cover the risk in the fluctuation of the price of natural gas carried out by the Client with PGPB and that is Agreed Upon by the Parties through a
Confirmation of the agreed upon terms and conditions, such as described in Clause 3.3. In no case does this operation imply a physical delivery of gas. 
  
 “Open Operation”, means any Coverage Operation of the Client in which the Date of Valuation has not occurred, or
respect of which no contrary operation canceling it has been carried out and the results of the operation have been settled. 

 “Operation of Liquidation”, means, for any Open Operation, the contrary operation
that cancels totally or partially the one originally executed before the Date of Valuation. 
  
 “Liquidated Operations”, means the valuation of an amount as a result of the combination of one Coverage Operation and its corresponding Operation of Liquidation. 
  
 “Operation”, means a Coverage Operation or an
Operation of Liquidation, as applicable within the context in which the term “Operation” is used. 
  
 “Party” or “Parties” means individually PGPB or the Client, as the case may be, and in the plural it means PGPB and the
Client jointly. 
  
 “Complied Party”,
means the Party to whom it is not imputable any cause of Non Compliance or of agreement termination in accordance with clauses 10.1 and 10.3 of this Contract. 
  
 “Non Complied Party”, means the Party to whom some Non Compliance or Termination cause is imputable
in accordance with Clauses 10.1 and 10.3 of this Contract. 
  
 “Period”, is the time elapsed between the date of beginning and of termination of a Coverage Operation that is established in the Confirmation. 
  
 “Consumption Period”, is the time elapsed between the date of beginning and of conclusion of a
natural gas consumption, which is specified in the Purchase/Sale Contract. 
  
 “Peso”,means the currency of legal tender in Mexico 
  
 “Floor”, means the Coverage Operation through which the purchaser establishes a minimum selling price of the Agreed Upon Index,
for one Quantity per Consumption Period that are specified in the Confirmation of the Coverage Operation and in accordance with which, when on the Date of Valuation the Agreed Upon Index is lower than the Floor Price, the Purchaser of the Coverage
Operation will collect from the seller the difference between the Agreed Upon Index less the Floor Price, multiplied by the Quantity per Consumption Period. 
  
 “Fixed Price”, means in relation to any Fixed, the value in Dollars per MMBtu of the Quantity per Consumption Period as specified
in the Confirmation referred to in Clause 3.4 of this Contract. 
  
 “Fixed Price of 2004-2006” means in relation to any Fixed of 2004-2006, the value in Dollars per MMBtu of the Quantity per Consumption Period as specified in the Confirmation referred to in Clause 3.4 of this
Contract. 
  
 “Fixed Price 2004 annotated at 6.00
USD/MMBtu”, means in relation to any Annotated Fixed, the value in Dollars per MMBtu of the Quantity per Consumption Period as specified in the Confirmation referred to in Clause 3.4 of this Contract. 
  

 -9- 

 “Index Price”, is the price published in the Agreed Upon Index and that is used
for the Consumption Period in effect. 
  
 “Original
Price”, refers to the Fixed Price, Floor Price, Tunnel Price, the Premium or any other agreed upon price and established in the Confirmation. 
  
 “Floor Price”, means in relation to any Floor the value in Dollars per MMBtu of the Quantity per Consumption Period as specified
in the Confirmation referred to in Clause 3.4 of this Contract. 
  
 “Ceiling Price”, means in relation to any Ceiling the value in Dollars per MMBtu of the Quantity per Consumption Period as specified in the Confirmation referred to in Clause 3.4 of this Contract. 
  
 “Premium”, is the cost in Dollars per MMBtu of any
Coverage Operation Ceiling, Floor or Tunnel established in the Confirmation referred to in Clause 3.4 of this Contract corresponding to said Coverage Operation. 
  

“Daily Balance”, means the amount determined by the algebraic addition of the value of the Adjustments per Coverage of which
the Date of Valuation had already occurred and the Adjustment per Coverage had not been invoiced or paid for, plus the amount of the Valuation of Open Operations and the Past Due Interest on Coverage Operations in the event that these were due.

  
 “Ceiling”, is a Coverage Operation
that allows the purchaser of same to agree upon the expected value of a price index to a maximum level and in accordance with which, when on the Valuation Date the Agreed Upon Index is higher than the Ceiling Price, the purchaser of the Coverage
Operation will collect from the seller the difference between the Agreed Upon Index less the Ceiling Price, multiplied by the Quantity for the Consumption Period. 
  
 “Tunnel”, is a Coverage Operation integrated by a Coverage Operation Ceiling and one Floor, in
accordance with which: (a) when on the Date of Valuation the Agreed Upon Index is lower or equal to the Ceiling Price and at the same time higher or equal to the Floor Price, the purchaser will not receive any Adjustment per Coverage for this
concept; (b) when on the Date of Valuation the Agreed Upon Index is lower than the Floor Price, the purchaser of the Coverage Operation Tunnel type will pay to the seller the difference between the Floor Price less the Agreed Upon Index
multiplied by the Quantity per Consumption Period; and (c) when on the Date of Valuation the Agreed Upon Index is higher than the Ceiling Price, the purchaser of the Coverage Operation Tunnel type will collect from the seller the difference
between the Agreed Upon index less the Ceiling Price multiplied by the Quantity per Consumption Period. 
  
 “Market Values”, is for any Original Price of a Coverage Operation its cost of opportunity at market prices calculated on any date
prior to the Valuation Date. 
  

 -10- 

 “Present Value” (VP), is the Value at the calculation date of an amount to be
paid in the future, which is determined with the following formula: 
  
 VP = VF *(1 / (1 +i) N) 
  
 Where: 
 VP = Present Value to the date of calculation 
 I = Zero coupon rate 
 N = Number of years in
365 days terms 
 VF = Future Value 
  
 “Valuation of Open Operations”, is the amount to the date of calculation that will result from adding algebraically the product of
the Quantity per Consumption Period of the Consumption Periods remaining to be valued and the difference between the Market Value and the Original Price of the Coverage Operation, for all Open Operations. 
  
 “Mean Life”, is the time to the average due date of
all the payment obligations generated by one or several Coverage Operations. It is determined by the following formula: 
  
 VM = (f1t1, + f2 t2 + ... + fn tn ) / f1 + f2 + ... + fn ) 
  
 Where: 
 VM = Mean life 
 fn = Month of flow 
 tn = Time to due date, period between the current date and the date in which the corresponding Adjustment for Coverage should be applied. 
  
 1.2 Interpretation 
  
 Unless otherwise established by the text for this Contract: 
  

	 	(a)	References to “Clause” or “Attachment” will be to the clauses and attachments of this contract. 

	 	(b)	The headings of the Clauses and Attachments are used only for convenience and will not be taken into account for the interpretation of same; and 

	 	(c)	The words in the singular will include the plural and vice versa. 

  
 2. PURPOSE 
  
 The purpose of this contract is to establish the framework conditions of economic and judicial nature under which the Parties may execute, under the
different types, Coverage Operations, which individually or jointly will not be able to surpass, in no event, the natural gas volumes contracted for under some Purchase/Sale Contract nor extend beyond the effective date of the latter. 
  

 -12- 

 3. EXECUTION OF A COVERAGE OPERATION 
  
 3.1 Request of estimate 
  
 On Working Days between 09.00 hours and 13.30 hours official Mexico City, Federal District time, the Client can request via telephone, e-mail, or fax an
offer of estimate of the Coverage Operation required, in the understanding that until PGPB and the Client agree on the terms and conditions of any Coverage Operation, said estimate will only have the character of Informative Estimate. 
  
 3.2 Estimate 
  
 Once the request from the Client is received, PGPB will provide him via telephone, e-mail or fax an offer of estimate of the
required Coverage Operation, in the understanding that until PGPB and the Client agree on the terms and conditions of any Coverage Operation, said estimate will only have the character of Informative Estimate. 
  
 3.2.1 Coverage 2004-2006 Estimate. 
  
 As part of the 2004-2006 Coverage, through its Internet Webb site PGPB will
publish daily and until December 19, 2003, an offer of Fixed Price for the following periods: 2004, 2004-2005 and 2004-2006. The estimate published in accordance with this clause, will be in effect until 17.00 hours of the day of its
publication providing the prices do not suffer a variation +/- 5% in the international market. 
  
 3.3 Execution of Coverage Operations 
  
 When the persons authorized by each one of the Parties, same that are indicated in Attachment 1 – “Authorized Persons”, agree on the terms and conditions of a Coverage Operation, it will be understood
that the Parties have executed a Coverage Operation. A coverage Operation will be considered as executed when the Parties have agreed: 
  
 1. Type of Coverage Operation; 
 2. Quantity per Consumption Period 
 3. Original Price of the type of Coverage Operation;

 4. Premium, if it is applicable; 
 5. Period and Date of Valuation; and 
 6. Agreed Upon Index. 
  
 In the
event that the price desired by the Client to close the Coverage Operation is not available in the market, the Client, through any of its Authorized Persons, may be able to place an order to PGPB for the execution of a Coverage Operation (the
“Order”), indicating in it, in addition to elements (I) to (vii) indicated above, the term during which the Order will be in effect and its intention to execute the Coverage Operation at the moment that the indicated price
becomes available in the market. 
  
 Within the term of
effectiveness of the Order and as long as the Coverage Operation has not been executed, the Client may request to withdraw or modify the Order at its sole discretion, in the 
  

 -13- 

 understanding that PGPB will notify the necessary to the Authorized Person(s) once said request has been withdrawn from
the corresponding market by PGPB. 
  
 3.3.1 Execution of
Coverage Operations under the Coverage 2004-2006 Scheme. 
  
 For Coverage Operations executed under this scheme, the Coverage Operation will be considered executed when the Client has complied with the requirements indicated below: 
  
 1. Delivery of the Letter of Acceptance of the Contract duly filled and signed. 
 2. Delivery to PGPB of the corresponding Coverage Warranty 
 3. The notification be made to PGPB of the Quantity per Consumption Period and of the Consumption Periods, at 5.00 P.M. at the latest of
the Working Day of the United States in which the corresponding Quotation is published. 
  
 3.4 Confirmation 
  
 Within the following 48
hours, in which the Client and PGPB had agreed on the terms and conditions of a Coverage Operation, PGPB must forward to the Client a Confirmation in writing via fax, e-mail or any other means using the format of Attachment 2 –
“Confirmation Format”. In case of using a means other than fax or e-mail, this will have to be mutually annotated between the Parties and confirmed in writing, 
  
 3.5 Lack of Confirmation 
  
 In case that PGPB does not send the Confirmation within the lapse of time on Clause 3.4, the Client will have the right to forward to PGPB a Confirmation
using the format of Attachment 2 – “Confirmation Format” of this Contract no later than 17.00 hrs. of the second Working Day following the Day in which the Coverage Operation had been executed. 
  
 Both Parties will have the right to object to the contents and/or scope of
the Confirmation in writing within the two (2) Working Days following the date of forwarding of same. In the event that one of the Parties does not agree with the objections presented by the other Party, and the latter could not be resolved
with the Electronic Recording or when this does not exist, the Parties will gather to reach an agreement on the Terms and Conditions of the executed Coverage Operation within the five (5) Working Days following the date of forwarding of the
objection to the Confirmation. With respect to any Coverage Operation, the Confirmation and this Contract jointly will constitute the Terms and Conditions of said Coverage Operation. If the parties can not resolve the controversy by common
agreement, they will abide by the dispositions on Clause 11.11 of this Contract. 
  
 3.6 Liquidation of Coverage Operations 
  
 The
Client will have the right to liquidate any Coverage Operation in whole or in part before the Date of Valuation specified in the corresponding Confirmation, through the execution of a Liquidation Operation, as indicated in this Clause 3. The
adjustment for Coverage generated by the liquidation of Coverage Operations will be invoiced in accordance with the provisions of Clause 4 of this Contract as it refers to the Calculation of Liquidated Operations. 
  

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 Subject to the dispositions of Clause 10 of this Contract, in case there is any Non Compliance or cause
for termination of this Contract, the Complied Party will have the right, without responsibility and without a judicial declaration, to cancel in whole or in part the corresponding Open Operation or to rescind or terminate this Contract proceeding
to the cancellation of all Open Operations, through the execution of one or several Liquidation Operations, as stipulated in this Clause 3.6. 
  
 Only for the cases of Non Compliance and of Termination outlined in Clauses 10.1.2, and 10.1.3, section (a), the Liquidation Date could be equal to the
date on which the Complied Party notifies the Non Compliance or cause of Termination to the Non Complied Party, and without the need that there be an acknowledgement of receipt by the Non Complied Party. For this effects, and for any other
assumption of Non Compliance or cause for Termination of this Contract, the Client is in agreement that PGPB execute any Liquidation Operation to proceed to the total or partial cancellation of the corresponding Coverage Operation(s) without the
need for any instruction with respect to the latter. 
  
 3.7 Authorized
Personnel 
  
 On Attachment 1 – “Authorized
Persons”, the Client designates those legitimated individuals to execute Coverage Operations in accordance with this Contract. 
  
 On Attachment 1 – “Authorized Persons”, PGPB designates those legitimated individuals to respond to the requests for quotation from the
Client and to execute Coverage Operations with respect to said quotations in accordance to this Contract. 
  
 The parts agree to commit themselves to notify the other part in writing, in an opportune manner, of any change in the individuals designated in
Attachment 1 – “Authorized Persons”. Said notification will replace the previous Attachment 1 – “Authorized Persons” without the need for the signature of a modifying agreement to this Contract, in order to make such
changes. 
  
 All the Authorized Persons from both Parties should
have the sufficient powers in accordance with the Applicable Laws to execute the operations contemplated in this Contract. For these effects, the Client recognizes that the Persons Authorized by him on Attachment 1 will act as factors and that,
therefore, he will be obligated in all the acts and operations that they execute under this Contract. 
  

	4.	CALCULATION OF ADJUSTMENTS PER COVERAGE 

  
 4.1 Calculation of Adjustment by Coverage for one Fixed 
  

	 	(a)	Calculation for the Valuation Date 

  
 For the Coverage Operations in which the Client is purchaser of a Fixed, the Adjustment per Coverage will be the result of multiplying the Quantity per
Consumption Period by the difference between the Fixed Price of the Coverage Operation and the Index Price. 
  

 -15- 

 For the Coverage Operations in which the Client is seller of a Fixed, the Adjustment per Coverage will be
the result of multiplying the Quantity per Consumption Period by the difference between the Index Price of the Coverage Operation and the Fixed Price. 
  

	 	(b)	Calculation for Liquidated Operations 

  
 For the Liquidation Operations, the Adjustment per Coverage for each Consumption Period will be the product of the Quantity per Consumption Period and the
difference between: the Fixed Price of the purchase Operation and the Fixed Price of the sale Operation when the client is the purchaser, in the case that the Client be the seller of the Fixed, the Adjustment per Coverage for each Consumption Period
will be the product of the Quantity by the Consumption Period and the difference between: the Fixed Price of the sale Operation and the Fixed Price of the Purchase Operation. 
  
 4.2 Calculation of the Adjustment per Coverage for a Ceiling 
  

	 	(a)	Calculation for the Valuation 

  
 For the Coverage Operations in which the Client is the purchaser of a Ceiling, the calculation will be: 
  
 (i) If the Index Price is lower than the Ceiling Price, the
Coverage Adjustment will be in favor of PGPB and will be the result of multiplying the Premium by the Quantity per Consumption Period. 
  
 (ii) If the Index Price is higher than the Ceiling Price, the Adjustment per Coverage will be the result of multiplying the Premium by the
Quantity per Consumption Period discounting the intrinsic value. The intrinsic value will be the difference between the Index Price and the Ceiling Price multiplied by the Quantity per Consumption Period. 
  
 For the Coverage Operations in which the Client is the seller of a Ceiling,
the calculation will be: 
  
 (i) If the Index
Price is lower than the Ceiling Price, the Adjustment per Coverage will be in favor of the Client and it will be the Premium multiplied by the Quantity per Consumption Period. 
  
 If the Index Price is higher than the Ceiling Price, the Adjustment per Coverage will be the result of multiplying the
Quantity per Consumption Period by the Premium discounting the intrinsic value. The intrinsic value will be the difference between the Ceiling Price and the Index Price multiplied by the Quantity per Consumption Period. 
  

	 	(b)	Calculation for Liquidated Operations 

  
 The Adjustment per Coverage for each Consumption Period will be the Quantity per Consumption Period and the difference between the Premium of the purchase
Operation and Premium of the Operation of the Ceiling, when the Client be the purchaser of the Ceiling and when the Client be the seller of the Ceiling, the Adjustment per Coverage for each Consumption Period will be the Quantity per Consumption

  

 -16- 

 Period and the difference between the Premium of the Operation of sale of the Ceiling and the Premium of the Operation of
Purchase of the Ceiling. The Ceiling Price of the Operation of purchase and of the Operation of sale must be equal to be considered as Liquidated Operations. 
  
 4.3 Calculation of the Adjustment per Coverage for a Tunnel 
  

	 	(a)	Calculation for the Valuation Date 

  
 For the Coverage Operations Tunnel type the calculation will be: 
  

(i) If the Index Price is higher than the Floor Price and lower than the Ceiling Price, the Adjustment Per Coverage will be Zero.

 (ii) If the Index Price is lower than the Floor Price, the Adjustment per Coverage will be the result of multiplying the
Quantity per Consumption Period by the intrinsic value. The intrinsic value will be the difference between the Floor Price and the Index Price multiplied by the Quantity per Consumption Period. 
 (iii) If the Index Price is higher than the Ceiling Price, the Adjustment per Coverage will be the result of multiplying the Quantity per
Consumption Period by the intrinsic value. The intrinsic value will be the difference between the Ceiling Price and the Index Price multiplied by the Quantity per Consumption Period. 
  
 In case that the Operation had an established Premium in the Confirmation, the product of the Premium by the Quantity per
Consumption Period must be added to the previous calculation. 
  

	 	(b)	Calculation for Liquidated Operations 

  
 The Adjustment per Coverage for each Consumption Period will be the product of the Quantity per Consumption Period and the difference between the Premium
of the sale Operation and the Premium of the purchase Operation. The Ceiling Prices of the Operation of purchase and of the Operation of sale must be equal, as well as the Floor Prices of the Operation of purchase and of the Operation of sale, for
these to be considered as Liquidated Operations. 
  
 4.4 Calculation of
Adjustment per Coverage for one Floor 
  

	 	(a)	Calculation for the Valuation Date 

  
 For the Coverage Operations in which the Client is the seller of one Floor, the calculation will be: 
  
 (i) If the Index Price is higher than the Floor Price, the
Adjustment per Coverage will be in favor of the Client and will be the result of multiplying the Premium by the Quantity per Consumption Period. 
  
 (ii) If the Index Price is lower than the Floor Price, the Adjustment per Coverage will be the result of multiplying the Premium by the
Quantity per Consumption Period and discounting the intrinsic value. The intrinsic value will be the difference between the Floor Price and the Index Price multiplied by the Quantity per Consumption Period. 
  

 -17- 

 For the Coverage Operations in which the Client is the purchaser of one Floor, the calculation will be:

  
 (i) If the index Price is higher than the
Floor Price, the Adjustment per Coverage in favor of PGPB will be the result of multiplying the Premium by the Quantity per Consumption Period. 
  
 (ii) If the Index Price is lower than the Floor Price, the Adjustment per Coverage will be the result of multiplying the Premium by the
Quantity per Consumption Period discounting the intrinsic value multiplied by the Quantity per Consumption Period. 
  

	 	(b)	Calculation for Liquidated Operations 

  
 The Adjustment per Coverage for each Consumption Period will be the product of the Quantity per Consumption Period and the difference between the Premium
of the Operation of sale of the Floor and the Premium of the Operation of purchase of the Floor when the Client is the seller. For the case in which the Client be the purchaser of the Floor, the Adjustment per Coverage for each Consumption Period
will be the product of the Quantity per Consumption Period and the difference between the Premium of the Operation of purchase of the Floor and the Premium of the Operation of sale of the Floor. The Floor Price of the Operation of Purchase
and of the Operation of sale must be equal in order to be considered as Liquidated Operations. 
  
 4.5 Calculation of Adjustment per Coverage for one Fixed of 2004-2006 
  

	 	(a)	Calculation for the Valuation Date 

  
 For those Coverage Operations in which the Client is the purchaser of a Fixed of 2004-2006, the Adjustment per Coverage will be the result of multiplying
the Quantity per Consumption Period, by the difference between the Fixed Price of 2004-2006 and the Index Price. 
  

	 	(b)	Calculation for Liquidated Operations 

  
 For the Liquidation Operations, the Adjustment per Coverage for each Consumption Period will be the product of the Quantity per Consumption Period by the
difference between the Fixed Price of 2004-2006 and the Fixed Price of the Operation of sale. In addition to the above, the Cost of Recuperation of the operation will be added. 
  
 4.6 Calculation of Adjustment for Coverage of a Fixed 2004 annotated to 6.00 USD/MMBtu. 
  

	 	(a)	Calculation for the Valuation Date 

  
 For the Operations of Coverage in which the Client is buyer of a Fixed 2004 annotated 
  

 -18- 

 at 6.00 USD/MMBtu, the Adjustment per Coverage will be realized in accordance to the
following: 
  
 (i) If the Index Price is higher
than the Fixed Price annotated at 6.00 USD/MMBtu, and inferior to 6.00 USD/MMBtu, the Adjustment per Coverage will be the difference between the Fixed Price annotated at 6.00 USD/MMBtu and the Index Price multiplied by the Quantity per Consumption
Period, or 
  
 (ii) If the Index Price is lower
than the Fixed Price 2004 annotated at 6.00 USD/MMBtu, the Adjustment per Coverage will be the difference between the Fixed Price annotated at 6.00 USD/MMBtu and the Index Price multiplied by the Quantity per Consumption Period, or 
  
 (iii) If the Index Price is higher than 6.00 USD/MMBtu, the
Adjustment per Coverage will be the difference between the Fixed Price annotated at 6.00 USD/MMBtu and 6.00 USD/MMBtu multiplied by the Quantity per Consumption Period. 
  

	 	(b)	Calculation for Liquidated Operations 

  
 For Operations of Liquidation, the calculation of the Adjustment per Coverage for each Consumption Period will be the product of the Quantity per
Consumption Period by the difference of the Fixed Price 2004 annotated at 6.00 USD/MMBtu less (i) the Fixed Price of the Operation of Sale, less (ii) the Ceiling Price at 6.00 USD/MMBtu of purchase. In addition to the above, the Cost of
Recuperation of the operation will be added. 
  
 4.7 Verification of Coverage
for 2005-2006 
  
 Those clients who executed a Coverage
Operation type Fixed 2004 annotated at 6.00 USD/MMBtu, will have the obligation to realize Coverage Operations for the Consumption Period 2005 – 2006, for the same Quantity per Consumption Period contracted for on 2004. 
  
 For those clients that will not realize the contracting of Coverage
Operations with PGPB for the Consumption Period 2005 – 2006, must deliver to PGPB before June 30, 2004, a certificate or evidence from the counterpart with whom they realized the Coverage Operations, that will prove in an indubitable
manner that these were covered during such period, and that contains at least the following information: Name of the Counterpart, Name of the Client, Instrument of Coverage, Price of the Coverage Operation, volume and a Agreed upon period.

  
 In the event that the client does not prove indubitably to
PGPB, before June 2004, with the certificate or evidence mentioned above, that he in fact realized coverage for the period 2005-2006 for the same amount of volume covered under this scheme, he will pay PGPB the following, and must conserve the
coverage for 2004: 
  
 a) During the month of
July, the cost of recuperation for the six months elapsed and, 
  

 -19- 

 b) From July to December 2004 the cost of Recuperation for the Quantity of the Consumption Period for
each one of the remaining periods. 
  
 In the event that the
client proves to have realized the coverage for 2005 –2006 for a volume lower than the one contracted for in 2004, the payment of the above will be made in a manner proportional to the amount not covered. 
  
 4.8 Calculation of Adjustment per Coverage of Other Coverage Operations. 

 
 The parties expressly agree that they will not contract instruments
different to those stipulated in this Contract. In case that the need to incorporate different instruments is foreseen, the Parties will make in writing the necessary amendments to this Contract, incorporating the description of the purpose and the
effects of the additional instruments in the understanding that the corresponding Adjustment per Coverage will be made in accordance with the general practices of the market, and that the Original Price of the Coverage Operation will always be
compared against the annotated Index or in its case the price of liquidation multiplied by the Quantity per Consumption Period. 
  
 4.9 Non Availability of the Agreed Upon Index 
  
 In the event that for any cause the source that reports the Indexes used for the calculation of the Annotated Index is suspended, does not publish said
indexes, or is not available for the effects of the calculation of the Adjustment per Coverage, the Alternative Secondary Source of Prices will be applied in accordance with Attachment 3 – “Alternative Sources of Prices”, of this
Contract where the Alternative Sources of Prices are listed. 
  
 Notwithstanding the above, the Parties may agree on any source of price different to the Alternative Sources of Price stipulated in Attachment 3 if and when said sources of price are stipulated in the Confirmation. 
  
 5. INVOICING OF ADJUSTMENTS PER COVERAGE 
  
 5.1 Invoicing on the Valuation Date 
  
 The Coverage Operations executed between PGPB and the Client will be able to
generate Adjustments per Coverage. The Adjustments per Coverage will be issued through one or several notes of credit, when the result of the Adjustmenr per Coverage is negative or through invoices in addition to the ones issued by PGPB for the
purchase of natural gas through the Purchase/Sale Contract when the results of the Adjustment per Coverage is positive, which will be paid for or collected with the same terms of payments established in the Purchase/Sale Contract or at any other
time agreed upon by the Parties. 
  
 In the event that the
Adjustment per Coverage is an amount in favor of the Client and this is higher than the amount invoiced for consumption of natural gas, the remaining amount in concept of the Adjustment per Coverage will be paid to the Client through the issuance by
PGPB of a subsequent note of credit for the concept of Adjustment per Coverage. Said note of credit could be applied on the due date of subsequent invoices under Purchase/Sale Contract, until de Adjustment per Coverage is completed. 
  

 -20- 

 In the event that the Purchase/Sale Contracts between the Parties have been terminated, and there are
balances in favor of the Client, the Client may request reimbursement of the balance though written notification to PGPB, indicating and enclosing the following: (a) the amount of the balance in favor of the Client, (b) bank account number
and name of the bank, and (c) an invoice issued in accordance with the Applicable Laws in the amount of the corresponding balance, so that PGPB make the corresponding deposit within the thirty (30) days following receipt by PGPB of the
notification mentioned in this paragraph. 
  
 In the event the
Purchase/Sale Contracts between the Parties have been terminated, and there are balances in favor of PGPB, the Client will have five (5) Working Days to make the respective payment, counted as of the Working Day following the date of the
notification by PGPB. The notification from PGPB must likewise comply with all the requirements set forth in preceding paragraph. 
  
 5.2 Invoicing for voluntary Liquidation of Open Operations 
  
 The Client may execute Coverage Operations contrary to the ones originally agreed upon for the purpose of fixing the Market Value of said operations,
which should coincide, in so far as their Valuation Dates with the Coverage Operations initially agreed upon. These operations can be for 100% of the Quantity per Consumption Period of the Coverage Operations initially agreed upon or for part of
them. 
  
 Once the Market Value of the Coverage Operations that he
wishes to terminate through a Liquidation Operation has been fixed, the Client may request the Adjustment per Coverage resulting from said Coverage Operations, before the Valuation Date. This Adjustment per Coverage will be calculated in Dollars as
the Present Value of the Adjustments per Coverage for each Consumption Period discounted at a rate negotiated by PGPB with the Client that: (i) will reflect the funding cost of Petroleos Mexicanos in Dollars, and (ii) is consistent with
the Mean Life of the Coverage Operation. The calculation of the Present Value will consider the date on which the Adjustment for Coverage requested by the Client would apply. 
  
 For the quantification of the amount in pesos, the exchange rate published by Banco de Mexico in the Official Daily of the
Federation one Working Day before the date of the Adjustment for Coverage will be used, and in the event it is not available, the index substituting it in accordance with the Applicable Laws will be used. 
  
 In the event that Purchase/Sale Contracts between the Parties has been
terminated, and there are balances in favor of the Client, the Client may request through written notification to PGPB that these be reimbursed, indicating and enclosing the following: (a) the amount of balance in favor of the Client,
(b) bank account number and name of the bank, and (c) an invoice issued in accordance with the Applicable Laws for the amount of the corresponding balance, so that PGPB make the corresponding deposit within a lapse of thirty
(30) Days following the date of receipt by PGPB of the notification mentioned in this paragraph. 
  
 In the event that Purchase/Sale Contracts between the Parties had been terminated, and there are balances in favor of PGPB, the Client will have five
(5) Working Days to make the respective payment, counted as of the Working Day following the date of the notification by PGPB. The notification by PGPB must likewise comply with all of the requirements mentioned in the preceding paragraph.

  

 -21- 

	5.3	Invoicing of Liquidation Operations for Non Compliance 

  
 In the event that a Liquidation Operation for Non Compliance in accordance with the provision of this Contract is realized, the resulting Adjustment per
Coverage of said Operation, in accordance with the calculation described in Clause 5.2, should there be one, will be subject to the following: 
  
 (i) In the event that such balance results in favor of PGPB, it will be invoiced in an specific manner for this concept. The Client will
have five (5) Working Days to make the respective payment, counted as of the Working Day following the date of receipt of the notification from PGPB. 
  
 (ii) In the event that said balance results in favor of the Client, the balance will be paid by PGPB to the Client through the issuance of
a posterior note of credit, for the concept of Adjustment per Coverage, within five (5) Working Days following the date of notification of the Liquidation operation by one of the Parties. Said note can be applied on the due date of subsequent
invoices issued under any Purchase/Sale Contract for up to the total of said notes, providing that the Purchase/Sale Contract is kept in effect. In the event that there is no Purchase/Sale Contract in effect, PGPB will pay the Client in accordance
with the provisions of Clause 5.2, as it may apply. 
  
 5.4 Obligatoriety of
the Adjustments per Coverage 
  
 For the Coverage Operations
executed between PGPB and the Client that generate an Adjustment per Coverage, the terms of payment agreed upon in the Purchase/Sale Contract will apply, providing that in the Confirmation of Coverage there is no different date set. This Adjustment
per Coverage will be mandatory and will be invoiced independently of the invoices of the Purchase /Sale Contract. The payments referred to in this Clause will apply in the first place to the Past Due Interest (should there be any) and secondly to
the Adjustments per Coverage. 
  
 5.5 Non Compliance in the Payment of the
Adjustments per Coverage 
  
 In the event that any of the
Parties does not comply with the payment of invoices in which Adjustments per Coverage are applied, the non complying Party will be subject to the same consequence stipulated in the Purchase/Sale Contract as it refers to the provisions for non
compliance in the payment of invoices. 
  
 6. NON COMPLIANCE IN THE RECEPTION
OR NOMINATION OF 
 VOLUMES SUBJECT TO AN OPERATION OF COVERAGE 
  
 Notwithstanding the obligations of the Parties under the Purchase/Sale Contract, any non-compliance by the Parties under the
respective Purchase/Sale Contract will not release the obligations of the Parties with respect to the Operations of Coverage executed under this Contract. 
  

 -22- 

 In the event that the Client does not consume the firm volume under the respective Purchase/Sale Contract
without justified cause for more than one (1) Consumption Period and there are Operations of Coverage on said volume, PGPB will be able to notify the Client about such situation and the Client must inform PGPB of said situation no later than
five (5) Working Days after receipt of said notification by PGPB. 
  
 If the notification of justification on behalf of the Client referred to in the preceding paragraph, is not received within the five (5) Working Days following the notification from PGPB requiring the justification, PGPB will have the
right without responsibility and without judicial declaration, to liquidate totally or partially any Operation of Coverage before the Valuation Date specified in the corresponding Confirmation, through the execution of a Liquidation Operation, as
stipulated in Clause 3, without this Contract being rescinded. 
  
 If the Client does not document the situation in a manner satisfactory for PGPB, in the understanding that PGPB will not be able to refuse such documentation in an unjustified manner, the Parties may resort to the procedure for resolution
of controversies under the mode of independent expert in accordance with Clause 11.11, section (b) of this Contract. 
  
 In the event that the controversy is resolved in favor of PGPB, PGPB will have the right without responsibility and without judicial resolution, to
liquidate in whole or in part any Operation of Coverage before the Valuation Date specified in the corresponding Confirmation, through the execution of an Operation of Liquidation, as stipulated in Clause 3, without rescission of this Contract.

  
 7. NOTIFICATION OF ADJUSTMENTS PER COVERAGE 
  
 7.1 Notification on behalf of PGPB 
  
 Two (2) Working Days after the Valuation Date with respect to each
Coverage Operation at the latest, PGPB will notify the Client in writing of the following: 
  
 (a) The amount of any Adjustment per Coverage; and 
  
 (b) The calculation of said Adjustment per Coverage, with all the relevant data for said calculation as they
were previously agreed to by the Parties and documented in the Confirmation, including without limitation the Quantity per Consumption Period, the Fixed Price, Floor Price or Ceiling Price, or any other type of Coverage Operation as the case may be,
the Annotated Index as well as any Premium, etcetera, in accordance with Attachment 4 – “Notification of Valuation Instruments”. 
  
 In the event that PGPB does not forward the notification within the term established in this Clause 7.1, the Client will have the right to send PGPB a
notification using the format of Attachment 4 ‘ Notification of Valuation of Instruments”, of this Contract. 
  
 In the event that the notification referred to in the preceding paragraph is not prepared by any of the Parties, these agree that the terms and conditions
that will govern the valuation of the Coverage 
  

 -23- 

 Operations whose Valuation Date has passed, will be those registered in the Confirmation referred to in Clause 3.4 of
this Contract. 
  
 7.2 Acceptance of the Notification 
  
 The notification referred to in Clause 7.1 will become definitive when it is
received in accordance with Clause 11.1 of this Contract, except for evident error in the calculation or unless the receiver presents to the other Party, in writing, his unconformity with respect to the calculations contained in such notification,
no later than three (3) Working Days after receipt of same, showing in detail the nature of such unconformity. Once this unconformity is received, PGPB and the Client will negotiate within the three (3) Working Days following the solution
of the discrepancies in the calculation contained in the notification mentioned. If the Parties can not resolve the controversy by mutual agreement they will abide by the provision s of Clause 11.11 of this Contract. 
  
 8. VALUATION OF OPEN OPERATIONS 
  
 8.1 Valuation of Open Operations 
  
 For each Working Day, PGPB will perform a Valuation of Open Operations, in
accordance with the provisions of Clause 8.3 of this Contract. PGPB will provide the Client by telephone or through any other means agreed upon by the Parties, the Valuation of Open Operations each time that the Client so requires, at the latest on
the following Working Day after the request is received. In the understanding that PGPB can only provide the calculation memory of the Valuation of Open Operations of the Day the request is made. 
  
 Likewise, PGPB will be able to provide the Client one memory of calculation
of the Valuation of Open Operations each time that the Client so requires, no later than the Working Day following receipt of such request. In the understanding that PGPB will only be able to provide the memory of calculation of the Valuation of
Open Operations of the Day in which the request is made. 
  

	8.2	Calculation of Market Values for the Establishment of Collateral Warranties 

  
 For the effects of this Clause 8, the Market Values will be obtained from quotations obtained in the Stock Market and in the
Extra Stock Market of the United Sates of America. 
  
 The Client
has the right to object to the calculation of the Market Values or of the Valuation of Open Operations in accordance with this Clause, however, this right does not exempt the Client from the establishment of Collateral Warranties in the event that
they are required, except in the case of evident error. For such effects, PGPB will deliver or receive the amount corresponding to such calculations and will make the corresponding correction once an agreement is reached. 
  
 If the Client objects to the determination of the Market Values established
in this Clause 8.2, he will so notify PGPB in writing within the Working Day following the receipt of such calculation. If the Parties can not resolve the controversy by common agreement within one (1) Working Day following the notification,
the Parties will abide by the procedure established in Clause 11.11 section (a). 
  

 -24- 

 8.3 Calculation methodology for the determination of the amount of the Valuation of Open Operations 
  
 The amount of the Valuation of Open Operations will be the amount resulting
at the date of calculation of adding algebraically the product of the Quantity per Consumption Period of the Consumption Periods that remain to be valued and the difference between the Market Value and the Original Price of the Coverage Operation,
for all Open Operations. 
  
 8.4 Calculation methodology for the determination
of the client’s Daily Balance 
  
 The Client’s
Daily Balance will be calculated on Working Days and will be the result of the algebraic sum of: 
  
 (a) The Valuation of the Open Operations 
  
 (b) The value of the Coverage Operation or Operations whose Valuation Date had already occurred and the Adjustment per Coverage had not
been invoiced and paid for; and 
  
 (c) The value
of the interest past due for Coverage Adjustments, should there be any. 
  
 For the purposes of realizing the calculation of Client’s Daily Balance, all the amounts calculated in Dollars will be converted into Pesos in accordance with the following: 
  
 (i) For the value of the Operations of Coverage whose
Valuation Date had already occurred and the Adjustment per Coverage had not been invoiced, the stipulations in Clause 11.15 will be used; 
  
 (ii) For the case of the calculation of the Valuation of Open Operations, the rate of exchange that the Banco de Mexico publishes in the
Official Daily of the Federation the day prior to the one when the calculation is made as rate of exchange of commercial operations in foreign currency (Peso/Dollar) will be used. 
  
 9. CREDIT CONDITIONS AND ESTABLISHMENT OF WARRANTIES 
  
 9.1 Credit Conditions to realize Coverage Operations 
  
 PGPB will require from the Client the presentation of Coverage Warranties for the amount that will be defined prior to the
realization of said Coverage Operation(s), which will depend on the Quantity per Consumption Period, type of operation and term of same. These Coverage Warranties must be established before PGPB prior to contracting the Coverage Operations and will
conform the Operative Limit for Coverage. 
  
 9.2 Exemption of the deposit of
Coverage Warranties 
  
 The Client will not be required to
deposit Coverage Warranties, when the Credit Committee, based on the financial rating and credit history of the Client, so authorizes it. In the event that the Client loose 
  

 -25- 

 the exemption referred to in this Clause, his Operative Limit will be Zero, and will therefore have to deposit the
necessary Coverage Warranties. 
  
 9.3 Establishment and Liberation of
Collateral Warranties 
  
 The Parties agree that the Client
will be obligated to establish Collateral Warranties when the Daily Balance is higher than his Operative Limit for Coverage and that he should maintain them in effect during the time that such situation persists. 
  
 The Collateral Warranties must be established no later than two
(2) Working Days following the date of notification by PGPB to the Client. In case that the Client does not establish the corresponding Warranty within the established term, PGPB may proceed to the liquidation of the Client’s Open
Operations, in the understanding that the Date of Liquidation may be equal to the date in which PGPB notifies the Non Compliance to the Client and without the need of acknowledgement of receipt of the Non Compliance notification from the Client. For
these effects, the Client is in agreement that PGPB execute any Operation of Liquidation to proceed to the total or partial cancellation of the corresponding Coverage Operation(s) without the need of any instruction with respect to the latter.

  
 When the Daily Balance is lower than his Operative Limit for
Coverage, PGPB, at the Client’s request, will make the liberation of the Collateral Warranties no later than two (2) Working Days following the date of receipt of the request that the Client presents to PGPB in writing. 
  
 The placement of the Collateral Warranties in the form of cash deposits, must
be made through bank transference in the account that PGPB will designate for such purposes and notify the Client in writing. To this effect, the Client will deliver or send via e-mail or fax, no later than at 14.00 hours of the last day of the
stipulated term, a copy of the deposit slip or of the confirmation of the electronic transaction containing at least: (i) number of the account of origin, (ii) number of the destination account, (iii) amount of the transaction and
(iv) number of confirmation or reference of the bank transference. 
  
 The liberation of the Collateral Warranties in the form of cash deposits, must be made through bank transfer on the account that the Client designates in writing, fulfilling the requirements established in the preceding paragraph for the
Client. 
  
 9.4 Exemption of the Deposit of Collateral Warranties.

  
 No Collateral Warranties will be required for those
Coverage Operations that are contracted within the Coverage 2004 – 2006 program. 
  
 10. CAUSES AND EFFECTS OF RESCISION AND TERMINATION 
  
 10.1 Causes for Rescission 
  
 Subject to the
dispositions of clause 10.2 and 3.6, and without prejudice of any other legal right or recourse derived from this Contract or of any other source, the Complied Party may rescind this Contract or liquidate the corresponding Coverage Operation in the
occurrence of any of the following events (henceforth, jointly as the “Non Compliance” and individually the “Non Compliance”): 
  

 -26- 

 10.1.1 Non Compliance by either of the Parties: 
  
 (a) Any declaration made by one Party under this Contract
that turns out to be false or incorrect and/or puts at risk or in doubt the compliance of the obligations under his responsibility derived from this Contract or from the Coverage Operation(s) executed under same. 
  
 10.1.2 Non Compliance of the Client: 
  
 (a) The lack of payment of the amounts due in accordance
with this Contract. 
  
 10.1.3 Non Compliance of
PGPB: 
  
 (a) The lack of return of the
warranties granted by the Client to PGPB, when such return is legally warranted in accordance with this Contract, or 
  
 (b) The lack of issuance of notes of credit or the lack of payment in cash in favor of the Client when said notes of credit are legally
warranted in accordance with this Contract. 
  
 10.2 Notification and period of
remedy 
  
 In the event that the Complied Party has the
intention of rescinding this Contract under clause 10.1, it will so notify the Non Complied Party indicating the Non Compliance imputed. Then, the Non Complied Party will have a term of (a) 30 (thirty) Days; plus (b) the additional term
that, in the case, the Complied Party may grant, to remedy at its satisfaction the Non Compliance in question. Such term will start counting as of the Day following the notification; and this is in the understanding that during this term, as long as
the Non Compliance event subsists, the Non Complied Party will not be able to realize other Coverage Operations except the Operations of Liquidation and those that in its case, the Complied Party may accept. Likewise, it is assumed that the Complied
Party will not be able to Liquidate the Coverage Operations that are in effect during such term except as stipulated in the last paragraph of Clause 3.6. 
  
 10.3 Causes for Termination 
  
 Through the notification in writing made to the other party and the occurrence of any of the events listed in this Clause, any of the Parties may, without
the need of judicial declaration, terminate this Contract and/or liquidate the Operation(s) of Coverage that are in effect on such moment. 
  
 10.3.1 Causes for termination common to the Parties: 
  
 (a) The termination of the Purchase/Sale Contract(s) 
  
 (b) The lack of payment of the amounts due under any
Purchase/Sale Contract 
  

 -27- 

 (c) For written notification of one Party to the other to terminate this Contract,
providing that there is no Coverage Operation in effect and/or there is some obligation pending fulfillment; 
  
 (d) Any change in the Applicable Laws that prevent any of the Parties from continuing the purpose of this Contract. 
  
 10.3.2 Causes for termination imputable to the Client

  
 (a) The lack of granting of the Coverage
Warranty or of the Collateral Warranties in accordance to this Contract 
  
 (b) The lack of granting of the warranty(ies) under the Purchase/Sale Contract; 
  
 (c) When the Client initiates procedures to be declared in insolvency, bankruptcy, promotes or is subject of some reorganization decreed
under judicial order, seeks the benefit of any law to free debtors, makes any cession in favor of creditors due to incapacity to fulfill his obligations before them, admits in writing his impossibility to pay debts in general upon their due date, or
carries out any other act generally recognized as of insolvency; 
  
 (d) The issuance of any resolution or judicial order declaring the Client to be in insolvency, that he approve a petition requesting his reorganization, that he approve a petition requesting the enforcement of some
law to free his debtors, or decrees or orders the dissolution or liquidation of the Client. 
  
 10.4 Effects of the Rescission and Termination 
  
 The Complied Party will include in the writ of notification of the Non Compliance or of Termination, the Date of Liquidation and the Quantity per Consumption Period and any information that is necessary for the
calculation of Amounts Due with respect to the corresponding Operation of Liquidation. 
  
 All the Open Operations to the Date of Liquidation will be cancelled by PGPB on the Working Day following the date indicated as term for the rescission or termination, as the case may be, through the execution of an
Operation of Liquidation that will effectively terminate the Coverage Operations(s) originally executed. However, this is without prejudice of the provisions of Clause 3.6 of this Contract. 
  
 10.5 Amounts due with Respect to Operations of Liquidation 
  
 In the event that any notification of Operations of Liquidation is forwarded
in accordance with the preceding Clause 10.4, PGPB will calculate the net interest due from all the Operations of Liquidation. For such calculation, PGPB will calculate and notify the Client of such amounts within a term no longer than five
(5) Working Days after the Date of Liquidation as may correspond. 
  

 -28- 

 Such amounts will be determined as describe below: 
  
 (i) The amount to the Date of Liquidation that results by
adding algebraically the product of the Quantity per Consumption Period of the Consumption Periods remaining to be vaulted and the difference between the price of the Operations of Liquidation and the Original Price of the Coverage Operation, for
all Open Operations that have to be cancelled in which the Client is the seller; the amount to the Date of Liquidation that result by adding algebraically the product of the Quantity per Consumption Period of the Consumption Periods remaining to be
vaulted and the difference between the Original Price and the price of the Operations of Liquidation, for all the Open Operations that have to be cancelled in which the Client is the purchaser; 
  
 (ii) The amount that results by adding algebraically the
product of the Quantity per Consumption Period of the Consumption Periods remaining to be vaulted and the Premiums owed by the Client; 
  
 (iii) The amount that results by adding algebraically the product of the Quantity per Consumption Period of the Consumption Periods
remaining to be vaulted and the Premiums owed to the Client; 
  
 (iv) In its case, all the expenses and costs duly documented and related only with respect to the rescission or termination of the Contract, as the case may be, including fees and attorney’s expenses, in which
the Complied Party may have incurred; and 
  
 (v)
Any unpaid amount owed to the Complied Party in accordance with this Contract. 
  
 The amount to be invoiced will be the result of the algebraic sum of the amounts in the preceeding sub-sections (i), (ii), (iv) and (v) 
  
 This amount will be invoiced in accordance with Clause 5.3 of this Contract. 
  
 If PGPB does not forward said notification within the term established in
this Clause 10.5, the Client will have the right to forward said notification to PGPB. 
  
 If the Non Complied Party objects to the determination of the Prices of the Operations of Liquidation, it will so notify in writing to the Complied Party within the two (2) Working Days after receipt of said
calculation. If the Parties can not resolve the controversy by mutual agreement within the two (2) Working Days following the notification, in view of such controversy, the parties will abide by the procedure established on Clause 11.11,
section (a). Notwithstanding the above, and except for evident error, the Non Complied Party will not have the right to object to the Prices of the Operations of Liquidation realized by the Complied Party, if said Price is reasonably consistent with
the Market Value of at least three (3) of the Leading Dealers. 
  

 -29- 

 10.6 Payment of the Amounts Owed 
  
 Once the amount described in Clause 10.5 of this Contract has been determined, the following will apply: 
  
 (a) If the sum is an amount in favor of PGPB, the latter
will invoice said amount and the Client will be obligated to pay it within the five (5) Working Days after the date of the corresponding notification made by PGPB; 
  
 (b) If the sum is an amount in favor of the Client, PGPB will make the payment of such amounts through an
Adjustment per Coverage just as described in Clause 5.3 of this Contract. 
  
 10.7 Reference for the Determination of the Market Values 
  
 For the purposes of this Contract, the Parties may agree that the Market Value may be determined for any Operation of Liquidation for Non Compliance, through the arithmetical average of at least two (2) estimates
of the value of the Operations to the date notified as Date of Liquidation provided by the companies that could be classified as Leading Dealers, chosen by the Parties making the calculation with said estimates that will represent:

  
 (a) The amount that said companies would pay
to the party requesting said estimate with respect to said Liquidated Operation for non compliance, and 
  
 (b) The amount that the party requesting said estimate would have to pay to said companies on the Date of Liquidation, taking into
consideration an agreement between said party and said companies to execute an Operation of Coverage which would have the effect of maintaining for said party the economic equivalent of the remaining rights and obligations of payment under said
Liquidated Operation for non compliance. 
  
 10.8 Taxes 
  
 Each one of the Parties will comply with the payment of the contributions,
taxes and other taxations that in accordance with the Applicable Laws they have the obligation of covering, during the effectiveness, execution and compliance of this Contract and its Attachments. 
  
 11. GENERAL PROVISIONS 
  
 11.1 Notifications 
  
 Any notification, communication or request between the Parties will be made on Working Days, between 9.00 and 18.00 hours,
in writing, with acknowledge of receipt, or any other electronic means agreed to by the Parties where there is a record of the issuance and reception of the communication. When the notifications, communications or requests are sent and received via
fax, in addition to the corresponding proof of receipt, the sender should verify via telephone the reception of the document by the addressee. 
  
 Except for any provision to the contrary in this Contract, the Parties agree that all notifications, communications or requests made under it, will become
effective the Working Day following its receipt by the Party to which addressed, according to the date of the acknowledgment of receipt or proof of receipt. 
  

 -30- 

 For these effects and except for any provision to the contrary in this Contract, the Parties agree that
the notifications, communications or requests should be made to one of the persons designated as contacts in this Clause to the domicile, telephone number, fax and/or electronic mail: 
  
 Of the Client: 
  
 Domicile: Insurgentes Sur, NR. 1971, Torre 3, 6TH. Floor, Colonia Guadalupe Inn, C.P. 01020, Mexico, Federal District 
  
 Contacts: 
  
 Name: Pablo Gerardo Lopez Sanches 
 Telephone: 5322-4870 
 Fax: 5322-4896 
 e-mail: pablo.lopezs@rhodia.com.mx 
  
 Name: Lilian Diaz Gonzalez Gallardo 
 Telephone: 5322-4823 
 Fax: 5322-4898 
 e-mail: lilian.diaz@rhodia.com.mx 
  
 For PGPB: 
  
 Domicile: Av. Marina Nacional # 329, Edificio B1, Piso 9, Col. Huasteca, Mexico, D.F. 11311 
  
 Contacts: 
  
 Name: Javier R. Lopez Ramos 
 Telephone: 52- 32 –59- 52 to 55. 
 Fax: 52-32-60-10 and 52-32-60-13. 
 Electronic mail: jvlopez@gas.pemex.com 
  
 Name: Griselda Cervantes Padilla. 
 Telephone: 52- 32 –59- 52 to 55. 
 Fax: 52-32-60-10 and 52-32-60-13. 
 Electronic mail: gcervantes@gas.pemex.com 
  
 11.2 Domicile for Payment of Coverage Operations 
  
 The Parties agree and establish that for payment of the amounts owed for the concept of valuation of Coverage Operations and of valuation of the
Operations of Liquidation, the domicile to fulfill said obligation will be the one established in the Purchase/Sale Contract. 
  

 -31- 

 11.3 Electronic Recording of Telephone Conversations 
  
 The Parties accept in this Contract: 
  
 (a) That Electronic Recordings be made of any telephone
conversation of the Authorized Persons in accordance with Attachment 1 – “Authorized Persons” of this Contract or any Coverage Operation exclusively in relation to the closing of Coverage Operations; 
  
 (b) That any one of said Electronic Recordings can be used
as proof in any suit, action or other procedure related to this Contract, for this effect a copy of said Electronic Recordings must be provided by PGPB to the Client in a term no longer than ten (10) Working Days after it is requested by the
Client. 
  
 11.4 Change of Circumstances 
  
 The terms and conditions of this Contract have been agreed upon, taking into
account the general and legal circumstances existing at the moment of its execution. In the event that a substantial change occur in said circumstances, beyond the control of the parties, that will affect economically, in a negative and substantial
manner, to any of the contracting Parties in the fulfillment of its obligations in accordance to this Contract, the affected Party may solicit the re-negotiation of one or more clauses of this Contract, accrediting the change occurred as well as the
manner of the affectation in which its request for re-negotiation is based. Upon receipt of such request, in case that it effectively is a change of circumstances, the Parties will gather and will negotiate in good faith during a term that will not
exceed sixty (60) Days. If at the end of the sixty (60) Days counted as of the date of receipt of the request by the other Party, the Parties have not reached an agreement over such modifications, any one of them may terminate this
Contract through notification given in writing to the other Party and the Open Operations of Coverage will be liquidated in accordance to this Contract. 
  
 11.5 Limitation of Responsibility; Maximum Amount of Indemnity. 
  
 The maximum responsibility of each one of the Parties under this Contract will be limited only and exclusively to the valuation that at each moment may
have each one of the Parties with respect to the other in each Open Operation and in each Operation invoiced and not paid for. 
  
 In case of anticipated termination of this Contract, the maximum responsibility of each one of the Parties under this Contract will be limited only and
exclusively to the value of the Adjustment per Coverage and other concepts stipulated in Clause 10.5. 
  
 The Parties expressly renounce to demand damages and lost profits to which they may be entitled, except in the case of deceit, in which case the Affected
Party may demand to the other the payment of damages and lost profits in the terms of article 2110 of the Federal Civil Code. 
  
 11.6 Cession 
  
 None of the Parties may cede the rights and obligations of this Contract without prior authorization from the other Party, same which will not be unduly
or unjustifiably denied. 
  

 -32- 

 11.7 No Stipulation in Favor of Third Parties 
  
 No provision in this Contract has been designed, nor should be construed in such manner that it confers to any person or
entity any right under this Contract in the manner of stipulation to third parties. In the event of non-compliance to this provision, the Parties agree to abide by the procedure foreseen in Clause 10 of this Contract. 
  
 11.8 Autonomy of the Provisions 
  
 The invalidity, illegality or lack of coerciveness of any of the provisions
of this Contract will in no way affect or impede the validity and obligatoriety of the other provisions of same. 
  
 11.9 Amendments 
  
 No amendment or modification to any of the terms and conditions established in this contract will take effect, except that it be done in writing and is
signed by the Parties to this Contract, except as mentioned in Clause 3.7. – Authorized Personnel. 
  
 11.10 Applicable Legislation 
  
 This Contract will be governed and interpreted in accordance with the Applicable Laws. 
  
 11.11 Solution of Controversies 
  
 In the event of controversies between the Parties under this Contract, the Parties will abide by the following: 
  
 (a) Independent Experts for Market Values: In the event that the controversy is related to Market Values, each one of the Parties
agrees to designate a third independent party that qualifies as Leading Dealer. These independent third parties designated by each one of parties will jointly determine said Market Values, within the five (5) Days following their
designation. In such a case, the Parties will be jointly responsible for the fees and expenses of the third independent parties. The decision of the third independent parties will be final and obligatory for the parties, except for manifest error.
In the event that the third independent parties do not reach a final decision, the Parties agree to designate by mutual agreement a new company from the companies listed in Attachment 5 – “List of Leading Dealers” to be
designated as third independent party in discord who will determine said Market Values, within the five (5) Days following his designation and will emit a final resolution with an obligatory character for the Parties. 
  
 In this last event, the Parties will be jointly responsible
for the fees and expenses of the third independent party in discord. 
  

 -33- 

 (b) Independent Experts for the effects of Clause 6: When there is a controversy
for low consumption of gas by the Client in terms of the provision in Clause 6 of this Contract and that the Parties can not resolve it between them, the Parties agree to abide by the decision of an Independent Expert in accordance with the
following rules: 
  
 i) For each controversy, the
Independent Expert should be appointed by the Parties within three (3) Working Days as of the date in which the Party notifies the other of its intention to initiate an expert procedure (the “Notification of Expert Procedure”);

  
 ii) The opinion of the Independent Expert
will be linking between the Parties and must be emitted within no more that seven (7) Working Days as of the date in which the Parties receive the Notification of the Expert Procedure. 
  
 iii) In accordance with the opinion of the Independent
Expert, the Party who is in the wrong will pay both for the costs incurred by the other Party that are related to the Expert Procedure, and for the services of the Independent Expert; and 
  
 iv) The Parties must provide to the Independent Expert all
of the information they posses in relation to the matter of the controversy. The Independent Expert may convene meetings with Parties, jointly or separately, to establish the specific points in controversy and will be able to require the
complementary information that may be necessary. 
  
 (c) Arbitrage: In the event of controversy or claim of any kind derived from or related to the validity, invalidity, interpretation, execution, meaning, operation, effect, compliance or non compliance of this Contract that the
Parties can not resolve in an amicable manner in a term of thirty (30) Days (henceforth the “Controversy”), the Parties agree that such Controversy will be definitely resolved through arbitrage of right that will be carried out
in accordance with the rules of arbitrage of the International Chamber of Commerce (Cámara Internacional de Comercio). The arbitral panel will be composed of three arbiters. Each one of the Parties will select one arbiter and the third, who
will be the president, will be selected by agreement of the two arbiters selected by the Parties. In the event that the two arbiters do not reach an agreement over the selection of the third arbiter within a term of thirty (30) Days, the
president will be elected in accordance with the rules of arbitrage of the International Chamber of Commerce. The arbitral procedure will take place in the City of Mexico, D.F. and will be conducted in the Spanish language. The arbitral decision
will be definitive and obligatory for the Parties, who renounce to any mechanism to appeal the decision. The Party disfavored by the decision must answer for all the expenses and costs of both Parties incurred in relation to the arbitral procedure;
in the event that the arbitral decision does not favor any of the Parties, such expenses and costs will be shared by both Parties in an equitable manner, in the proportion determined by the arbiters, under the principle that the less favored Party
should cover a larger part of these. 
  
 That
Controversy for which its resolution is expressly foreseen in the Contract to be resolved through an Independent Expert is exempted from arbitrage, except those derived from the fact that one Party does not appoint the independent third party that
should be designated in terms of section (a) of Clause 11.11, in which the Parties do not reach an agreement with respect to the designation of the third independent party in discord or of the Independent Expert referred to in sections
(a) and (b) of Clause 11.11, or else, that one of the Parties does not provide the information requested or required by the Independent Expert to resolve the controversy in question. 
  

 -34- 

 11.12 Integrity of the Contract 
  
 This Contract constitutes the complete and exclusive agreement of all the terms and conditions governing its purpose and it
substitutes all prior contracts and agreements, written or oral, between PGPB and the Client in relation to it. No contract or negotiations of the Parties prior to the execution of this Contract, as well as any declaration of any employee, empowered
person or representative of any of the Parties, realized prior to the execution of this Contract, will be admissible for the interpretation of the terms and conditions of this Contract. 
  
 11.13 Duration 
  
 This Contract will become effective as of the date of its signature and will be in effect as long as the Purchase/Sale Contract remains in effect.
However, it can be terminated in advance in accordance with Clause 10. The Parties agree that once this Contract comes to term, all rights and obligations derived from it will also terminate, with the exception of the right to demand the delivery of
the amounts owed and not paid for by either of the Parties and that established in Clause 11.14. 
  
 11.14 Confidentiality of the Contract 
  
 The Parties agree that this Contract as well as all the information related to it obtained from the other Party through any of its executives, including directors, employees or other representatives (the Contract and
said information referred to as “Information” for the effects of this Clause 11.14) must be treated as confidential property and can not be revealed without the express consent of the other Party. Notwithstanding the above, this obligation
of confidentiality, will not apply to Information that: 
  
 (a) Is or becomes of public domain through a third party; 
  
 (b) Must be revealed by one of the Parties in accordance with legal, administrative or judicial requirements to which such Party is
subjected, if and when the revelation of such information is obligatory in such manner that by not doing it, it would incur in civil or penal responsibility. Any one of the Parties may reveal the Information in accordance with legal, administrative
or judicial requirements to which such Party is subjected, if and when the revelation is mandatory for such Party and that by not doing so it would incur in legal, civil or penal responsibility. 
  
 (c) The Parties may reveal the Information to their
advisors, possible investors and lawyers, if and when they are subjected to an obligation of confidentiality; 
  
 (d) When one of the Parties suffers a disaster in one of its properties and must reveal Information to the insurance companies and their
reinsurers. 
  
 In the supposition that any of the Parties
revealed any Information in violation of the dispositions of this Clause 11.14, the other Party will have the right, without prejudice of any other legal right or recourse derived from this Contract, or of any other source, to terminate this
Contract with immediate effects without need of a judicial declaration, through written notification to the other Party. This obligation of confidentiality will remain in effect for a period of up to five (5) years after the termination of the
duration of this Contract. 
  

 -35- 

 11.15 Exchange parity 
  
 The Parties agree that for the calculation of the amounts in dollars to pesos, the rate of exchange established in the Purchase/Sale Contract will be used, except for
that stipulated in Clause 5 section 5.2 and Clause 8 section 8.4 (ii). 
  
 12.
FORCE MAJEURE 
  
 No event that constitutes an act of
nature or force majeure will be reason to prevent the parties from fulfilling their obligations and exercise their rights derived from this Contract. 
  
 Having read this Contract, and informed the parties of their legal scope this Contract is signed on November 11, 2003. 
  

	
	Pemex-Gas y Petroquímica Básica
	
	 
	 By: Javier Ramón López Ramos
 Empowered

	
	 Rhodia Fosfatados de Mexico, S.A. de C.V.
  
  

	 By: Jose Roberto Flores Athie

  

 -36- 

 Attachment 1 – Authorized Persons 
  
 Designation of persons authorized to request and answer quotations, as well as of persons authorized by the Parties to execute Coverage
Operations. 
  
 On behalf of the Client:

  
 Persons authorized to execute Coverage
Operations 
  

									
	 Name

	  	 Telephone

	  	 Fax

	  	 Electronic Mail

	  	 Signature

	 Lilian Diaz Gonzalez Gallardo
	  	5322-4823	  	5322-4898	  	Lilian.Diaz@rhodia.com.mx	  	 
	 Iris Magdalena Alvarado Vergara
	  	01-921-9212115545	  	01-9212115592	  	Iris.alvarado@rhodia.com.mx	  	 

  
 On
behalf of PGPB: 
  
 Persons authorized to answer
Quotations 
  

							
	 Name

	  	 Departament

	  	Telephone

	  	Fax

				
	 Griselda Cervantes Padilla
	  	 Business Dev.
	  	5232-5955	  	5232-6010
				
	 Ilsa Ballesteros Martínez
	  	 Business Dev.
	  	5232-5954	  	5232-6013
				
	 José Pablo López Calva
	  	 Business Dev.
	  	5232-5953	  	5232-6013
				
	 Gabriela Caraveo Sánchez
	  	 Business Dev.
	  	5232-5957	  	5232-6010
				
	 Javier R. López Ramos
	  	 Business Dev.
	  	5232-5952	  	5232-6010
				
	 Jorge Rojas Zepeda
	  	 Business Dev.
	  	5232-5959	  	5232-6010

  
 Persons authorized to execute operations de Coverage 
  

							
	 Name

	  	 Departament

	  	Telephone

	  	Fax

				
	 Griselda Cervantes Padilla
	  	 Business Dev.
	  	5232-5955	  	5232-6010
				
	 Ilsa Ballesteros Martínez
	  	 Business Dev.
	  	5232-5954	  	5232-6013
				
	 José Pablo López Calva
	  	 Business Dev.
	  	5232-5953	  	5232-6013
				
	 Gabriela Caraveo Sánchez
	  	 Business Dev.
	  	5232-5957	  	5232-6010
				
	 Javier R. López Ramos
	  	 Business Dev.
	  	5232-5952	  	5232-6010
				
	 Jorge Rojas Zepeda
	  	 Busines Dev.
	  	5232-5959	  	5232-6010

  

	
	 
	
	 Rhodia Fosfatados de Mexico, S.A. de C.V.
  
  

	 Sr.    Jose Roberto Flores Athie

  
 Pemex Gas y
Petroquímica Básica 
  

 -37- 

 Attachment 2 – Confirmation Format 
  
 Attachment 3 – Alternative Sources of Price 
  
 Primary Alternative Sources of Price (FAPP) 
  

			
	 Price of Reference

	  	 FAPP

	 (****)
	  	Gas Daily
	 (****)
	  	Gas Daily
	 (****)
	  	Gas Daily

  
 Secondary Alternative Sources of
Price (FASP) 
  

			
	 Price of Reference

	  	 FASP

	 (****)
	  	Natural Gas Intelligence
	 (****)
	  	Natural Gas Intelligence
	 (****)
	  	Natural Gas Intelligence

  
 Attachment 4 –
Notificación of Valuation of Instruments 
  
 Calculation Memory for invoicing 
  

 -38- 

 Attachment 5 – List of Leading Leaders to be designated as independent Third pary in discord

  
 BNP Paribas 
 Coral Energy Resources 
 JP Morgan 
 Chase 
 Sempra Energy Trading 
 Morgan Stanley Capital Group Inc. 
 Credit Suisse Financial Products 
 Citi Bank N. A. 
 Deutsche Bank Alex Brown 
  

 -39-Purchase and Sale Agreement of Anhydrous Ammonia, dated as of April 1, 2001

 Exhibit 10.18 
  
  
 CONFIDENTIAL TREATMENT REQUESTED UNDER 
 C.F.R. SECTIONS 200.80(b)(4), 200.83 AND 230.406. 
  
 **** INDICATES OMITTED MATERIAL THAT IS THE 
 SUBJECT OF A CONFIDENTIAL
TREATMENT REQUEST 
 FILED SEPARATELY WITH THE COMMISSION. 
  
 THE OMITTED MATERIAL HAS BEEN FILED 
 SEPARATELY WITH THE COMMISSION.

  
 FOURTH MODIFYING AGREEMENT TO THE PURCHASE AND SALE AGREEMENT OF ANHYDOROUS
AMMONIA, dated as of March 14th, 2005 between PETROQUIMICA COSOLEACAQUE, S.A. DE C.V., hereinafter referred as to the
“Seller”, represented by its legal representative, Mr. Ricardo Hernandez Albín and RHODIA FOSFATADOS DE MEXICO, S.A. DE C.V, now INNOPHOS FOSFATADOS DE MEXICO, S. DE R.L. DE C.V., hereinafter referred as the “Buyer”,
represented by its legal representative, Mr. Jose Roberto Flores Athié, according to the following Provisions and Clauses. 
  
 PROVISIONS 
  
 The Seller declares: 
  
 SOLE.- That the legal capacity of its special legal representative to sign this Agreement is proved according to the Notarial Power number 8,746 dated as of
May 26th, 2003, granted before Notary Public No. 14 of the City of Coatzacoalcos, Ver., Attorney Enrique
de Jesús Aguilar Urcelay, same that has not been modified or revoked. 
  
 The Buyer declares: 
  
 FIRST.- That the
legal capacity of its general legal representative to sign this Agreement is proved according to the Notarial Power number 70,939 dated as of January 30th, 2002, granted before Notary Public No. 137 of the Mexico City, Attorney Carlos de Pablo Sena, registered at the Public Registry of Commerce under mercantile folio number 103384 in Mexico, D.F.,
on February 14th, 2002 and ratified through public deed number 15232 described in the following provision, same
that has not been modified or revoked. 
  
 SECOND.- That they changed its
corporate name and adopted other kind of legal corporation by virtue that the company was incorporated as an Anonymous Corporation of Variable Capital and by agreement among the shareholders they adopted the kind of Limited Liability Company of
Variable Capital, reason why it is named actually INNOPHOS FOSFATADOS DE MÉXICO, S. DE R.L. DE C.V., the aforementioned was done through Public Deed number 15,232 dated as of August 17th, 2004, granted before Notary Public No. 122 of the Mexico City, Attorney Arturo Talavera Autrique, registered before the Public Registry of commerce
under mercantile folio number 103384 in Mexico, D.F. on November 15th, 2004, by means of which it stated the
change of the corporate name and the adoption of another kind or mercantile corporation. 
  
 Both parties agree that: 
  
 FIRST.- That on April 23rd they execute a Purchase and Sale Agreement of Anhydorous Ammonia, hereinafter referred to as the Agreement, by which the Seller binds itself to sell the Buyer Anhydorous Ammonia, hereinafter referred to as the Product, and this last
binds itself to buy it and receive it. 
  
 SECOND.- That on
June 1st, 2002, October 31st, 2002 and August 1st, 2004 they subscribe the First, Second and Third Modifying Agreement, respectively. 
  
 THIRD.- That according to Clause 23 “Modifications and Resignations” of the “Agreement”, they are willing to do the following modifications, under the terms and conditions of this Modifying
Agreement herein according to the following: 
  
 CLAUSES

  
 FIRST.- By virtue of the change of corporate name and the
adoption of other kind of legal corporation, the company INNOPHOS FOSFATADOS DE MEXICO, S. DE R.L. DE C.V., takes under its responsibility the rights and obligations and therefore will be the responsible to cover the 

 
debts or passives with PETROQUIMICA COSOLEACAQUE, S.A. DE C.V., same that RHODIA FOSFATADOS DE MEXICO, S.A. DE C.V. has engaged. 
  
 SECOND.- Both parties agree that with exception of the expressly agreed in this
Modifying Agreement, all the terms and conditions of the Agreement and Exhibits will continue in force without any change in full effect, ratifying the parties through this act the content of the same. 
  
 AS WITNESS WHEREOF, the parties subscribe this Modifying Agreement through their Legal
Representatives in the City of Coatzacoalcos, Ver., dated as of March 14th, 2005. 
  

	
	SELLER
	PETROQUIMICA COSOLEACAQUE, S.A. DE C.V.
	
	  
	 Mr. Ricardo Hernández Albin

	 Special Legal Representative

  

	
	BUYER
	RHODIA FOSFATADOS DE MEXICO, S.A. DE C.V. NOW INNOPHOS FOSFATADOS DE MEXICO, S. DE R.L. DE C.V.
	
	  
	 Mr. José Roberto Flores Athié

	 Legal Representative

  

	
	JUDICIAL REVISION
	
	  
	 Mr. Jorge González Cervantes

	 Sub coordinator Consultant and of Prevention

  
 THIRD MODIFYING AGREEMENT TO THE PURCHASE
AND SALE AGREEMENT OF ANHYDOROUS AMMONIA, executed on March 14th, 2005 between PETROQUIMICA COSOLEACAQUE, S.A. DE
C.V., hereinafter referred as to the “Seller”, represented by its legal representative, Mr. Ricardo Hernandez Albín and RHODIA FOSFATADOS DE MEXICO, S.A. DE C.V, hereinafter referred as the “Buyer”, represented by its
legal representative, Mr. Jose Roberto Flores Athié, according to the following Provisions and Clauses. 
  
 BACKGROUNDS 
  
 On April 23rd, 2001, the parties
executed a PURCHASE AND SALE AGREEMENT OF ANHYDOROUS AMMONIA, hereinafter referred to as the “Agreement”, by means of which the Seller binds it self to provide the Buyer Anhydorous Ammonia, and this last binds itself to buy it and receive
it. 
  
 PROVISIONS 
  
 The Seller declares: 
  
 SOLE.- That the legal capacity of its special legal representative to sign this
Agreement is proved according to the Notarial Power number 8,746 dated as of May 26th, 2003, granted before
Notary Public No. 14 of the City of Coatzacoalcos, Ver., Attorney Enrique de Jesús Aguilar Urcelay, same that has not been modified or revoked. 
  
 The Buyer declares: 
  
 FIRST.- That the legal capacity of its general legal representative to sign this Agreement is proved according to the Notarial Power number 70,939 dated as of
January 30th, 2002, granted before Notary Public No. 137 of the Mexico City, Attorney Carlos de Pablo
Sena, registered at the Public Registry of Commerce under mercantile folio number 103384 in Mexico, D.F., on February 14th, 2002 and ratified through public deed number 15232 described in the following provision, same that has not been modified or revoked. 
  
 SECOND.- That they changed its corporate name and adopted other kind of legal corporation by virtue that the company was incorporated as an Anonymous Corporation
of Variable Capital and by agreement among the shareholders they adopted the kind of Limited Liability Company of Variable Capital, reason why it is named actually INNOPHOS FOSFATADOS DE MÉXICO, S. DE R.L. DE C.V., the aforementioned was done
through Public Deed number 15,232 dated as of August 17th, 2004, granted before Notary Public No. 122 of
the Mexico City, Attorney Arturo Talavera Autrique, registered before the Public Registry of commerce under mercantile folio number 103384 in Mexico, D.F. on November 15th, 2004, by means of which it stated the change of the corporate name and the adoption of another kind or mercantile corporation. 
  
 Both parties agree that: 
  
 FIRST.- That on April 23rd they execute a Purchase and Sale Agreement of Anhydorous Ammonia, hereinafter referred to as the Agreement, by which the Seller binds itself to sell the Buyer
Anhydorous Ammonia, hereinafter referred to as the Product, and this last binds itself to buy it and receive it. 
  
 SECOND.- That on June 1st, 2002, October 31st, 2002 and August 1st, 2004 they subscribe the First, Second and Third Modifying Agreement, respectively. 

 THIRD.- That according to Clause 23 “Modifications and Resignations” of the “Agreement”, they
are willing to do the following modifications, under the terms and conditions of this Modifying Agreement herein according to the following: 
  
 CLAUSES 
  
 FIRST.- The Annex 3 referenced is modified in Clause 8. PRICE, of the Agreement to be as stated in Annex 3 of this Modifying Agreement. 
  
 SECOND.- 9.1 “Currency, Time and Payment
Place” to be as follows: 
  
 9.1 Currency, Time and Payment
Place: The Buyer shall perform all the payments agreed herein in this Agreement in Mexican Currency, without any discount or deduction, through an electronic transference of a deposit of a referenced check or in cash in the account and bank
appointed opportunely by the Seller. Every payment in regards to the Product sales, delivered and invoiced shall be done no more than 45 (forty five) days later after the date of issuance of the correspondent invoice, without the need to submit a
written payment requirement by the Seller in which it is specified the subject of the debt, the amount and/or the nature of such obligation. All the other payments shall be done within the 7 (seven) days following to the submission of the written
payment requirement by the Seller in which it is specified the subject of the debt, the amount and/or the nature of such obligation. Any payment in regards to this Agreement that shall be paid on a day in which the banks are not open, then it shall
be performed as follows: If the payment date is a Saturday or a Holiday different form Monday, it will be valid the prior day. If the payment date is that correspondent to those of the Holly week Thursday or Friday, the payment day will be the prior
Wednesday, if it is Saturday or Sunday of said Holly Week, the payment date will be on Monday. 
  
 THIRD.- Clause 9.1.1. “Modality of Payment with Credit” is modified to be as follows: 
  
 Clause 9.1.1. Modality of Payment with Credit.- All the payments regarding the
provided and invoiced Product shall be performed within the next 45 (Forty five) days to the invoice issuance date, without the need to deliver any kind of document or of collation, payment reminder o account statement. Notwithstanding the Buyer
pays habitually his debts to the Seller through the modality of Payment with Credit, the Seller reserves its right to supply the Product to the Buyer through the modality of payment in advance. 
  
 FOURTH.- Clause 9.3, “Delay in Payment” is modified to be as follows: 

  
 9.3 Delay in the Payment.- Supposing that the Buyer incurs delay
with anyone of its obligations of payment, these will daily produce interests as of the date in which this payment had to be performed until the date of its total liquidation, applying an equivalent rate T.I.I.E. of 2.5%, same which will be
indispensable and payable immediately, in the understanding of which the previous mentioned will be without damage of the application of any other provision or any other legal resource that has the Seller, or derived from the present Contract or any
other source, giving up specifically the Buyer to the established within the article 380 of the Code of Commerce, in the referring part to the payment of yields to the legal currency over the owed amount. The Seller will have the right to
substitute, according to the institutional regulations, the mechanism o any of the indicatives or the financial instruments mentioned herein in Clause 9.3, in such case the calculation of the delay interests will be applied, from the moment of the
substitution, with the new mechanism or indicative or financial instrument. The base of the calculation of the delay interests, will be the commercial one, this is, that the annual rate is divided into 360 days, considering months of thirty days,
and it’s multiplied by the number of days gone by. 
  
 The Buyer accepts that its payments are applied in first term to the delay interests and the to the capital. 
  
 When the checks submitted in time by the Buyer are returned and not paid for any cause imputable to the Buyer, will pay the Seller twenty per cent (20%) of the total
amount, by means of indemnification, according to Article 193 of the General Law of Titles and Credit Operations, in 

 
addition to the connected expenses according to Article 195 of the mentioned Law, as well as the delay interests and taxes caused according to this Clause
9.3. 
  
 FIFTH.- This Modifying Agreement will be in force on
August 1st, 2004 and except for the expressly agreed herein, all the terms and conditions of the Agreement and
Exhibits will continue in force without any change in full effect, ratifying the parties through this act the content of the same. 
  
 AS WITNESS WHEREOF, the parties subscribe this Modifying Agreement through their Legal Representatives in the City of Coatzacoalcos, Ver., dated as of
August 1st, 2004. 
  
 SELLER 
 PETROQUIMICA COSOLEACAQUE, S.A. DE C.V. 

	
	
	  
	 Mr. Ricardo Hernández Albin

	 Special Legal Representative

  
 BUYER 
 RHODIA FOSFATADOS DE MEXICO, S.A. DE C.V. 

	
	
	  
	 Mr. José Roberto Flores Athié

	 Legal Representative

  
 JUDICIAL REVISION 

	
	
	  
	 Mr. José Alejandro García Hernández

	Attorney of the Coordination for the Southern Zone Office of the General Attorney

  
 EXHIBIT 3

  
 PRICE OF THE PRODUCT 
  
 From July 1st, 2004, the Price of the Product in Mexican Pesos, same that will be supplied to the Buyer meanwhile this Agreement is in force, will be determined according
the following formula: 
  

	Price	of Ammonia = (****) 

  
 Where: 
  

	R=	The arithmetic average of the ammonia prices of the publications (****), registered in the last publication prior to the date of the Price issuance, that applies to every center
according to the Model of Logistics (ML). (****) 

  

	L=	Charge for logistics in force in every Producer Center and Distribution Center that will be periodically reviewed in accordance to the Model of Logistics (ML).

  

	K=	It is an authorized factor by the Ministry of Treasury and Public Credit, in the (****), which its value will be determined by the commercial circumstances of the ammonia market
(****) 

  

	(****)=	It is a factor of the (****) list that currently is (****), authorized by Ministry of Treasury and Public Credit, in the (****). 

  

	DV=	It is a discount per volume reviewed periodically and authorized by Ministry of Treasury and Public Credit, in the (****), defined in Table A. 

  

	Note:	ML.- It is the Model of Logistics of ammonia designed by the Management Office of Prices of the Corporate Direction of Finances from Petróleos Mexicanos, and authorized by
Ministry of Treasury and Public Credit, in the (****), that determines the points of reference of price and calculates the logistics costs in each center. 

  
 The discounts per volume applicable to the price of Ammonia of formula (1) will apply according to the volume of annual consume
described in table A: 
  
 Table A 
  

							
	 CLASSIFICATION

	  	VOLUME OF RETIREMENT (TONS/YEAR)

	  	DV

	  	FROM

	  	TO

	  
	 List
	  	 	  	(****)	  	(****)
	 Retailer
	  	(****)	  	(****)	  	(****)
	 Wholesaler
	  	(****)	  	 	  	(****)

  
 1.1. Alternate Price of
Reference 
  
 If during the force of this agreement, any of the prices of
reference used to determine the price of ammonia is suspended or interrupted by any cause, the respective price will be determined 

 
applying only the price of reference that has not been interrupted or suspended. In the event that both prices of reference are suspended or interrupted by
any cause, it will be used the price of ammonia of (****). 
  

	1.2	Currency Trade 

  
 The currency trade used, will be the average of the equivalents published in the (****), correspondent to the (****) prior to the date of price issuance. 
  
 The mechanism of prices described herein will be in force until the Ministry of Treasury and Public Credit does not authorize any
modification to the national policy of prices of ammonia. 

  
 SECOND MODIFYING AGREEMENT TO THE
PURCHASE AND SALE AGREEMENT OF ANHYDOROUS AMMONIA, executed on April 23rd, 2001 between PETROQUIMICA COSOLEACAQUE,
S.A. DE C.V., hereinafter referred as to the “Seller”, represented by its commercial sub director, Mr. Jose Guillermo Chapa Rivera and RHODIA FOSFATADOS DE MEXICO, S.A. DE C.V, hereinafter referred as the “Buyer”,
represented by its legal representative, Mr. Silvio Fagundes Lucinda, according to the following Provisions and Clauses. 
  
 BACKGROUNDS 
  
 On April 23rd, 2001, the parties
executed a PURCHASE AND SALE AGREEMENT OF ANHYDOROUS AMMONIA, hereinafter referred to as the “Agreement”, by means of which the Seller binds it self to provide the Buyer Anhydorous Ammonia, and this last binds itself to buy it and receive
it. 
  
 PROVISIONS 
  
 FIRST.- Both parties declare through their legal representatives that recognize each
other its legal capacity, same that has not been revoked in any way. 
  
 SECOND.- That according to Clause 23 of the “Agreement” they are willing to perform the following modifications, under the terms and conditions of this Modifying Agreement. 
  
 CLAUSES 
  
 FIRST.- The Annex 3 referred in Clause 8 of the Agreement, subjected “Price of
Product”, will be substituted by Annex 3 “Price of Product” included in this Second Modifying Agreement. 
  
 SECOND.- This Modifying Agreement will be in force on August 1st, 2004 and except for the expressly agreed herein, all the terms and conditions of the Agreement and Exhibits will continue in force without any change in full effect, ratifying the parties through
this act the content of the same. 
  
 AS WITNESS WHEREOF, the parties subscribe
this Modifying Agreement through their Legal Representatives in the City of Coatzacoalcos, Ver., dated as of August 1st, 2004. 
  

	
	SELLER
	PETROQUIMICA COSOLEACAQUE, S.A. DE C.V.
	
	  
	 Mr. J. Guillermo Chapa Rivera

	 Commercial Subdirector

  

	
	BUYER
	RHODIA FOSFATADOS DE MEXICO, S.A. DE C.V.
	
	  
	 Mr. Silvio Fagundes Lucinda

	 Legal Representative

  

	
	JUDICIAL REVISION
	
	  
	 Mrs. Silvia Yazmina Valencia Mendoza

	 Attorney of the Judicial Services Unit

  
 EXHIBIT 3

  
 PRICE OF THE PRODUCT 
  
 From November 1st, 2002, the Price of the Product that will be supplied to the Buyer during the term of this contract, shall be determined according the following formula:

  

	Price	of Ammonia = (****) 

  
 Where: 
  

	R=	The arithmetic average of the ammonia prices in Dollars per metric tone lade of the publications (****), registered in the last publication of the price issue date, that applies to
every center according to the Logistics Model. (****) 

  

	L=	It is the logistics cost in Dollars per tone lade that is in force in every Producer Center and Distribution Center that will be reviewed periodically in accordance to the Logistics
Model, and authorized by the Ministry of Treasury and Public Credit, within the (****). 

  

	K=	It is an authorized factor determined by the commercial circumstances that will be reviewed periodically and authorized by the Ministry of Treasury and Public Credit, within the
(****) 

  

	(****)=	It is an (****) list factor that will be reviewed periodically and authorized by the Ministry of Treasury and Public Credit, within the (****). 

  

	DV=	It is a volume discount in Dollars per tone lade defined in Table A, which will be reviewed periodically and authorized by the Ministry of Treasury and Public Credit, within the
(****). 

  

	Note:	It is the Logistics Model that determines the price of ammonia authorized by the Ministry of Treasury and Public Credit, within the (****). 

  
 Table A 
  
 (****) 
  

	1.1	Alternate of Reference Price 

  
 If during the term of this Contract, any of the reference prices used to determine the price of ammonia are suspended or interrupted by any motive, the
product price will be set applying only the reference price that was not interrupted nor suspended. In the event that both reference prices are suspended or interrupted by any motive, the product price will be of the (****) 

	1.2	Currency Rate 

  
 The currency rate used to convert US Dollars into Mexican Pesos of the Formula (1) will be the average of the parity published in the (****),
corresponding to the (****) prior to the price issue date. 
  
 The mechanism of
prices described herein will be in force until the Ministry of Treasury and Public Credit does not authorize any modification to the national policy of prices of ammonia. 

 FIRST AMENDMENT AGREEMENT TO THE PURCHASE AND SALE CONTRACT OF ANHYDROUS AMMONIA, dated as of April 23rd, 2001 entered into by and between PETROQUIMICA COSOLEACAQUE, S.A. DE C.V. hereinafter referred as the “Seller”,
represented by its Commercial Sub-Director, Ing. José Guillermo Chapa Rivera and RHODIA FOSTATADOS DE MEXICO, S.A. DE C.V. hereinafter referred as the “Buyer”, represented by its legal representative Mr. Silvio Fagundes
Lucinda, according to the following Statements and Clauses: 
  
 B A C K G R O U N D 
  
 On April 23rd, 2001 they entered into a PURCHASE CONTRACT OF ANHYDROUS AMMONIA, hereinafter referred as the “Contract”, by which
the Seller binds itself to sell the Buyer Anhydrous Ammonia, hereinafter referred to as the Product, and this last binds itself to buy it and receive it. 
  
 S T A T E M E N T S 
  
 FIRST: Parties state trough their legal representatives that they recognize each other the personality they hold, and that such has not been revoked in any way.

  
 SECOND: That according to Clause 23 of the “Contract” they
are willing to formulate the following amendments under the terms and provisions of this Amendment Contract. 
  
 C L A U S E S 
  
 FIRST.- Clause 8 “Price” is amended regarding point 8.2, to read as follows: 
  
 8.2 Reference Prices Suspension. If during the term of this Contract, any of the reference prices used in Exhibit 3 is suspended or interrupted by any motive, the Product price will be set applying only
the reference price that was not interrupted or suspended. In the event that both reference prices used in Exhibit 3 are suspended or interrupted buy any motive, the “Green markets” ammonia price shall be used as a temporary reference
publication. 
  
 SECOND. Clause 9 “Payment Terms” is amended
regarding point 9.1.2, to read as follows: 
  
 9.1.2 Advance Payment
Method. In the event that the Buyer does not meet the requirements to obtain credit from the Seller, all payments of the product shall be made before such is delivered, carrying out such payments according to the provisions of the first
paragraph of Clause 9.1, in the understanding that the applied price for Product invoicing, shall be the one that corresponds to the Product delivery date. 
  
 THIRD.- Exhibit 3 referred in Clause 8 of the Contract, named “Product Price”, will be replaced with Exhibit 3 “Price”
attached hereto. 
  
 FOURTH.- This Amendment Agreement will be in force as
of June 1st, 2002 and with the exception of what is expressly agreed, all other terms and provisions of the
Contract and its Exhibits will not change and will still be in force and effect and the parties hereby ratify the content of the same. 

 IN WITNESS WHEREOF, the parties subscribe this Amendment Agreement through their Legal Representatives in the City
of Coatzacoalcos, Ver, with effects as of the aforementioned date. 
  

	
	SELLER
	PETROQUIMICA COSOLEACAQUE, S.A. DE C.V.
	
	  
	 Ing. J. Guillermo Chapa Rivera
 Commercial Sub-Director

	
	BUYER
	RHODIA FOSFATADOS DE MEXICO, S.A. DE C.V.
	
	  
	 Mr. Silvio Fagundos Lucinda
 Legal Representative

	
	JUDICIAL REVISION
	
	  
	 Lic. Luis Samuel Morales Hernández
 Consultant Matter Coordinator

 EXHIBIT 3 
  
 PRICE OF THE PRODUCT 
  
 As of June 1st, 2002, the Price
of the Product that will be supplied to the Buyer during the term of this contract, shall be determined according the following formula: 
  
 Price of Ammonia = (****) 
  
 Where: 
  

	R=	The arithmetic average of ammonia prices in publications (****) registered in the last publication of the immediate later month, that applies to every center according to the
Logistics Model (ML). (****) 

  

	L=	It is the logistics charge that is in force in every Producer Center and Distribution Center that will be periodically be reviewed in accordance to the Logistics Model (ML).

  

	K=	It is an authorized factor by the Ministry of Treasury and Public Credit, within the (****) 

  

	(****)=	It is an (****) list factor that today is of (****), authorized by the Ministry of Treasury and Public Credit, within the (****) 

  

	DV=	It is a volume discount reviewed periodically and authorized by the Ministry of Treasury and Public Credit, within the (****) defined in Table A. 

  

	Note:	ML.- It is the Logistics Model of ammonia designed by the Prices Management Office of the Corporate Finance Department of Petróleos Mexicanos, and authorized by the Ministry
of Treasury and Public Credit, within the (****) that determines reference points of the price and calculates logistics costs in each center. 

 Discounts per volume applicable to the Ammonia price of formula (1) will apply according to the annual consumption
volumes described in table A: 
  
 Table A 
  

													
	 	  	(****)

	 	  	(****)

	 	(****)

	 	(****)

	 	(****)

	 	(****)

	 	(****)

	 FROM
	  	 	 	(****)	 	(****)	 	(****)	 	(****)	 	(****)
	 TO
	  	(****)	 	(****)	 	(****)	 	(****)	 	(****)	 	 
	 Dollars/Ton
	  	(****)	 	(****)	 	(****)	 	(****)	 	(****)	 	(****)

  
 1.1 Alternate Reference Price

  
 If during the term of this Contract, any of the reference prices used to
determine the price of ammonia are suspended or interrupted by any motive, the Product price will be set applying only the reference price that was not interrupted or suspended. In the event that both reference prices are suspended or interrupted
buy any motive, the (****) 
  
 1.2 Currency Rate 
  
 The currency rate used, will be the average of the parity published in the (****)
corresponding to the (****) 
  
 The pricing mechanism described herein shall
remain in force until the Ministry of Treasury and Public Credit authorize modifications to the national ammonia price policy. 

  
 Table of Contents

  

			
	 PROVISIONS
	  	1
		
	 CLAUSES
	  	2
		
	 CLAUSE 1. DEFINITIONS, TITLES AND REFERENCES
	  	2
	 1.1 Definitions
	  	2
	 1.2 Titles and References
	  	2
		
	 CLAUSE 2. PURCHASE AND SALE
	  	2
		
	 CLAUSE 3. VOLUME AND OF DELIVERY SCHEDULES
	  	3
	 3.1 Contractual Volume
	  	3
	 3.2 Schedules proposed by the Buyer
	  	3
	 3.3 Determination of the Contractual Volume
	  	3
	 3.4 Weekly confirmation, definite Delivery Schedule
	  	3
	 3.5 Reschedule of confirmed and not performed deliveries
	  	3
	 3.6 Coordination of the schedules
	  	4
		
	 CLAUSE 4. MEASURE OF VOLUME
	  	4
	 4.1 Volume
	  	4
	 4.2 Determination of the Measures
	  	4
		
	 CLAUSE 5. QUALITY
	  	4
	 5.1 Specifications
	  	4
	 5.2 Not stipulation of guarantees
	  	4
		
	 CLAUSE 6. DELIVERY
	  	4
	 6.1 Forms of delivery
	  	4
	 6.2 Deliveries by auto-tank; special procedures, property transmission
	  	4
	 6.3 Statement of the Buyer that he knows the Center of the Shipper; general procedures
	  	4
		
	 CLAUSE 7. NOTIFICATION OF CLAIMS
	  	5
	 7.1 Volume or quality
	  	5
	 7.2 Other claims
	  	5
	 7.3 Free of responsibilities
	  	5
		
	 CLAUSE 8. PRICE
	  	5
	 8.1 Price Fix
	  	5
	 8.2 Price suspension of Reference Prices
	  	5
		
	 CLAUSE 9. TERMS OF PAYMENT
	  	5
	 9.1 Currency, Time and Place of payment
	  	5
	 9.1.1 Modality of Payment with Credit
	  	5
	 9.1.2 Modality of Payment in advance
	  	5
	 9.1.3 Other payments
	  	6
	 9.2 Payment guarantees
	  	6
	 9.3 Delay in the payment
	  	6
	 9.4 Payment of expenses
	  	6
	 9.5 Payment breach
	  	6
		
	 CLAUSE 10. PROHIBITION TO COMPENSATE
	  	6
		
	 CLAUSE 11. OTHER PROVISIONS AND GUARANTEES OF THE BUYER
	  	7

			
	 CLAUSE 12. CAUSES AND EFFECTS OF TERMINATION
	  	8
	 12.1 Causes of Termination
	  	8
	 12.2 Effects of Termination
	  	8
		
	 CLAUSE 13. NON DISCLOSURE
	  	8
		
	 CLAUSE 14. NON STIPULATION FOR THIRD PARTIES: CESSION
	  	8
	 14.1 Non-stipulation for third parties
	  	8
	 14.2 Cessions by the Buyer
	  	9
	 14.3 Cessions by the Seller
	  	9
		
	 CLAUSE 15. FORTUITOUS CASE AND FORCE MAJURE
	  	9
	 15.1 Free of liability
	  	9
	 15.2 Notification
	  	9
	 15.3 Payment of the sold and delivered Ammonia
	  	9
	 15.4 Proportion reduction
	  	9
	 15.5 Non-prorogation of the Agreement: Right of termination for Fortuitous Case and Force Majure
	  	9
		
	 CLAUSE 16. SALE OR CLOSURE OF THE PLANTS
	  	10
		
	 CLAUSE 17. APPLICABLE LEGISLATION AND JURISDICTION
	  	10
		
	 CLAUSE 18. SATISFACTORY DOCUMENTATION
	  	10
		
	 CLAUSE 19. LIMITED LIABILITY
	  	10
		
	 CLAUSE 20. COMPILATION
	  	10
		
	 CLAUSE 21. PROVISIONS AUTONOMY
	  	10
		
	 CLAUSE 22. NOTICES
	  	10
		
	 CLAUSE 23. MODIFICATIONS AND RESIGNATIONS
	  	11
		
	 CLAUSE 24. IN FORCE
	  	11

  
 EXHIBITS 

 

			
		
	EXHIBIT 1	  	PRODUCT SPECIFICATIONS
		
	EXHIBIT 2	  	PROCEDURES FOR DELIVERY OF THE PRODUCT
		
	EXHIBIT 3	  	PRICE

  
 PURCHASE AND SALE AGREEMENT OF ANHYDOROUS
AMMONIA, executed on April 23rd, 2001 between PETROQUIMICA COSOLEACAQUE, S.A. DE C.V., hereinafter referred as to the
“Seller”, represented by its Commercial Sub director, Jose Guillermo Chapa Rivera and RHODIA FOSFATADOS DE MEXICO, S.A. DE C.V, hereinafter referred as the “Buyer”, represented by its legal representative, Mr. Silvio
Fagundes Lucinda, according to the following Provisions and Clauses. 
  
 PROVISIONS 
  
 The Seller
declares: 
  
 I. That is a mercantile corporation, company of majority state
participation, legally incorporated in accordance with the Incorporation Act number 36,611 dated as of January 30th, 1997, before Notary Public 111 of the Federal District, Attorney Francisco de Icaza Dufour. 
  
 II. That among others, has as corporate object to promote, develop and perform the elaboration, production, storage, distribution, commercialization and other activities related to petrochemical non-basic products.

  
 III. That it is arranged to sell and deliver Anhydorous Ammonia to the Buyer
in the terms and conditions set forth herein. 
  
 IV. That has the organization,
elements and technical, financial, commercial and legal abilities to accomplish the obligations referred in this Agreement. 
  
 V. That the legal capacity of its Commercial Sub director to sign this Agreement is proved according to the Notarial Power number 6037 dated as of
April 4th, 2001, granted before Notary Public No. 9 of the City of Minatitlán, Ver., Attorney
Flavino Ríos Alvarado; same that has not been modified or revoked. 
  
 The Buyer declares: 
  
 I. That is an Anonymous Company of
Variable Capital, incorporated according to the laws of the United Mexican States, in accordance to the Incorporation Act No. 65,786 granted before the Notaries Publics No. 137 and 125, Carlos de Pablo Serna and Javier I. Pérez
Almaraz, dated as of July 6th, 2000, registered before the Public Registry of Commerce under number 103,384 on
July 26th, 2000, same that has not been revoked nor modified, and that has the legal capacity to execute this
Agreement according its Incorporation Deed and Bylaws. 
  
 II. That is willing to
buy and receive from the Seller Anhydorous Ammonia, in the terms and conditions set forth herein. 
  
 III. That has the organization, elements and technical, financial, commercial and legal abilities to accomplish the obligations referred in this Agreement, including the experience and ability to handle, transport and
storage Anhydorous Ammonia, and that is conscious of the risks resulting from the handle, transport and storage Anhydorous Ammonia and that has the capacity to accomplish all the obligations derived from accidents in such handling, transportation
and storage. 
  
 IV. That the legal capacity of its Legal Representative to sign
this Agreement is proved according to the Notarial Power number 65,788 dated as of July 6th, 2000, granted
before Associated Notaries Publics No. 137 and 125 of the Mexico City, D.F. and registered before the Public Registry of Commerce under mercantile folio number 103384 on July 28th, 2000, being its legal capacity not been revoked as of today, neither modified in any way. 
  

 1 

 According to the preceding provisions, both parties agree in the following: 

 
 CLAUSES 
  
 Clause 1. Definitions, Titles and References 
  

	1.1	Definitions. For effects to the present Agreement, the following terms will have the following meanings: 

  
 a) “Affiliate”: related to any of the parties; any other person or entity
that controls it or that is under its control or that is under a common control with it. 
  
 b) “Year”: Calendar year. 
  
 c) “Shipper Center”: the Seller’s facilities of fulfillment of ammonia located in the Complejo Petroquímico Cosoleacaque, Veracruz, where the
Seller will deliver the Anhydorous Ammonia into the tankers provided by the Buyer. 
  
 d) “Producer Center”: The Complejo Petroquímico Cosoleacaque, Veracruz, where the Seller will produce the Anhydorous Ammonia to be delivered into the tankers provided by the Buyer. 
  
 e) “Agreement”: this purchase and sale of Anhydorous Ammonia Agreement,
including all the EXHIBITS herein, as well as all the modifications, amendments, supplements or exhibits agreed or added to the Agreement while it is in force. 
  

f) “Day”: natural day. 
  
 g) “Month”: calendar month. 
  
 h) “Plant”: the Buyer’s plant located in the Complejo Industrial Pajaritos, Veracruz, where the Buyer uses the Anhydorous Ammonia received from the
Seller under this Agreement. 
  
 i) “Product”: Anhydorous Ammonia
with the specifications set forth in the Annex 1. 
  
 j) “Definite
Delivery Schedule”: related to any Operative Week, it is the final delivery schedule of Ammonia determined according to Clause 3.3. 
  
 k) “Operative Week”: any period running between 1 to 7, 8 to 15, 16 to 23 or 24 to the final Day of each month. 
  
 l) “T.I.I.E.”: Average Rate of Inter-bank Interests. 
  
 m) “Contractual Volume”: the volume of Product that any Month the Seller is
obliged to sell and the Buyer is obliged to buy under the terms of this Agreement in accordance with the established in Clause 3. 
  
 n) “Minimum Contractual Volume”: a volume equals or greater than (****), that the Buyer commits to obtain in a period of twelve (12) consecutive
months to obtain a discount per volume defined in the Annex 3 of Price. 
  
 1.2
Titles and References. The titles mentioned in the Agreement herein will not affect its interpretation. Except for an opposite provision, all the references to clauses and exhibits will be regarding to the Clauses and Exhibits of this
Agreement. 
  
 Clause 2. Purchase and Sale 
  
 Subject to the terms and conditions herein in this Agreement, the Buyer commits to buy the
Product to the Seller and the Seller commits sell the Product to the Buyer. 
  

 2 

 Clause 3. Volume and Delivery Schedule 
  
 3.1 Contractual Volume. Subject to availability of Ammonia by the Seller and to the stipulations of this Clause 3, the
volume of Ammonia to be sold by the Seller and bought by the Buyer under this Agreement in any month, will be the asked volume by the Buyer in the last month, in the understanding that the Buyer and the Seller have the obligation to buy and sell a
(****) any period of twelve (12) consecutive months during the effect of this Agreement. 
  
 3.2 Schedules proposed by the Buyer. No later than the fifth day of each month, the Buyer will send the Seller:

  
 (i) a schedule of deliveries proposed related to the following Month in the
terms set forth in the number 1 of the Annex 2, by means of which the Buyer will notify the Seller the volume of the Product that he desires to receive during such Month, as well as the approximate number of tankers to be provided by the Buyer, and;

  
 (ii) an estimation of the volume that anticipates to ask in regards to the two
(2) subsequent months. 
  
 3.3 Determination of the Contractual
Volume. The Seller will respond to the schedule proposed by the Buyer regarding to the following Month within the fifteen (15) days following to the reception of the same through the aforementioned document in the Num. II of the
Annex 2, in the understanding that the Seller, due to the availability conditions, will have the right to provide an inferior volume of Ammonia to the asked volume, being mandatory the minimum value to provide by the Seller (****). The Ammonia
volume determined by the Buyer, will constitute the Contractual Volume for such month. Besides to establish a Contractual Volume for the Month of the event, the document delivered to the Buyer by the Seller in accordance to this Clause 3.3, will
constitute the delivery schedule, and such as, it will specify the volume of the Product to be delivered during each Operative Week of such Month (same which will be a different volume asked for each Operative Week in the Schedule proposed by the
Buyer), in the understanding that, unless otherwise or due to reasons of routine maintenance or repair of the facilities, the deliveries will be performed in a relatively uniform way during the month in case. 
  
 3.4 Weekly confirmation; Definite Delivery Schedule. The Seller will send the
asked confirmation by the Buyer no later that ten (10) days before the beginning of the first Operative Week in the terms established under number II of the Annex 2. In such confirmation the Seller will modify the proposed schedule by the Buyer
regarding the volume of the Product to be delivered. The delivery schedule thus confirmed by the Seller regarding any Operative Week will constitute the “Definite Delivery Schedule”. 
  
 3.5 Reschedule of confirmed and not performed deliveries. In the event that the
Buyer does not retire any delivery in any Operative week in accordance with the aforementioned established, the Seller could or could not reschedule such delivery at its own considerations and any reduction of the retired volume by the Buyer during
any Month as a result of such reschedules (or absence of rescheduling) will be in prejudice of the Buyer under the terms of Clause 3.1. On the other hand, in the event that the Seller could not perform any delivery in any Operative Week, the Seller
will reschedule such deliver for the next Operative Week. 
  
 In the event that
the Buyer does not accomplish with the Minimum Contractual Volume in the period of twelve (12) consecutive months from, for the case of the first period, the beginning date of the life of this Agreement, the seller will make a debit note no
longer that 30 days after terminated the period of twelve (12) consecutive Months to recover the difference on the price applied in this period and the price that corresponds to the retired volume in accordance to the table of discount per
volume o the Annex 3 of Price and that shall be paid according to Clause 9.1.3 

  

 3 

 
of this Agreement. Also, in the event that the Buyer exceeds the superior rank of the established volume in the table of discount per volume of the Annex 3
of Price in the period of twelve (12) consecutive Months, to obtain the price correspondent to that rank. 
  
 3.6 Coordination of the Schedules. With the purpose to coordinate the delivery schedules, each of the parties will assign a representative who will have as main liability the coordination of the details
related to the deliver of the Product under this Agreement. 
  
 Clause 4. Measure of Volume 
  
 4.1 Volume. The volume of each deliver will be determined by the personnel of the Seller in the scales of the Shipper Center whichever weighing the tanker before and after the charge operation. The Buyer will have the
right to assign a representative to verify the weigh of the charged Product as well as to verify the precision of the scales. 
  
 4.2 Determination of the Measures. The volume measure performed within the aforementioned procedure will be definite and mandatory for both parties,
except in the event of a manifest mistake. In any way, without prejudice of the subsequent right of the parties to demonstrate manifest mistake in such measures, the determination of the volume already done will rule for the invoice purposes and in
regards to the obligation of the Buyer to make the correspondent payment in accordance to the established in Clause 9. 
  
 Clause 5. Quality 
  
 5.1 Specifications. The Product to be sold under the terms of this Agreement shall have the specifications appointed in Annex 1. 
  
 5.2 Non-stipulations of guarantees. The Buyer by this means liberates the
Seller of any kind of guarantee, including as a declarative but not limitative way, any implicit guarantee of commercialization or suitable for any particular purpose, in regards to the sale of the Product under this Agreement. 
  
 Clause 6. Delivery 
  
 6.1 Delivery Forms. All deliveries of the Product will be performed in
the tankers provided by the Buyer in the Shipper Center as the case may be (in the understanding that the Buyer will be responsible of all the expenses of the transportation of the Product), in accordance to the following terms of this Clause 6.

  
 6.2 Deliveries by auto-tank; special procedures, property
transmission. In the event of deliveries through tankers, the transmission of property from the Seller to the Buyer will be considered as performed at the moment in which the Product passes the connection of the bridle between the
supply hose and the bridle of charge of the tanker. The responsibility of the Seller regarding the Product will stop in that moment and the Buyer will assume all the risks for loss, prejudices, reduction or evaporation as well as all the risks
inherent to the handling, transportation and storage of the Product. Any loss or damage caused to the Product o any property of the Seller o of any third party during the charge operation that may be attributable to the tanker or to its operators
will be in account of the Buyer. Besides the aforementioned, the Buyer will accept the responsibility and will accomplish with the terms and conditions regarding the transportation and reception of the Product in the facilities of the Buyer set
forth in number VI and VII of Annex 2. 
  
 6.3 Statement of the Buyer that
he knows the Center of the Shipper; general procedures. The Buyer states that plentiful knows the facilities of the Shipper Center, including the conditions, procedure and facilities for the delivery of the Product. The conditions,
procedures and facilities of the Shipper Center may be change at any moment, in such case the Seller will notify the Buyer 

  

 4 

 
as soon as possible. The Buyer also recognize in this act that the general procedures in force in the Shipper Center related at any time, among other
aspects, with the determination of the volume and security measures in the charge operations, will be complementary (without being opposite) to the specified procedures in the Agreement herein. Independently of the aforementioned, it is expressly
agreed that all the deliveries to be performed by tanker will be done according to the established in number II and IV of the Annex 2. 
  
 Clause 7. Notifications of Claims 
  

7.1 Volume or quality. Any claim that the Buyer could have in regards to this Agreement related to the volume or quality of the Product shall be
notified to the Seller within the next ten (10) days following to the delivery date, but in such case prior to the discharge of the same by the Buyer in its Plant. 
  
 7.2 Other claims. Any other claim that the Buyer could have in regards of this Agreement shall be notified to the
Seller within the next thirty (30) days following to date of the event of the facts that origin the claim.  
  
 7.3 Free of responsibilities. The Seller will not have any liability before the Buyer (and it will be considered that the Buyer has resign to the
same) regarding any claim that is not notified by the buyer under the terms established in Clauses 7.1 and 7.2. 
  
 Clause 8. Price 
  
 8.1 Price Fixing. The price of the Product that is sold and bought under this Agreement will be fixed in accordance to the provisions established in Annex 3.  
  
 8.2 Price suspension of Reference Prices. If during the life of this Agreement,
some of the reference prices used in the Annex 3 is suspended or interrupted by any reason, the price of the Product will be fixed applying only the reference price that has been not interrupted or suspended. In the event that both reference prices
used in Annex 3, are suspended or interrupted by any reason, it will be used the (****). 
  
 Clause 9. Terms of Payment  
  
 9.1 Currency, Time and Place of payment. The Buyer shall do all the reviewed payments established in this Agreement in Pesos Mexican currency, without any discount or deduction, through an electronic transference of a
deposit of a referenced check or in cash in the account and bank appointed opportunely by the Seller. Any payment in regards to this Agreement that shall be paid on a day in which the banks are not open, then it shall be done in the day before in
which banks are opened. 
  
 9.1.1 Modality of Payment with Credit.
All the payments regarding the provided and invoiced Product shall be performed on the expiration date indicated in the invoice, debit note or promissory note, without the need to deliver any kind of document or of collation, payment reminder or
account statement. Notwithstanding the Buyer pays habitually his debts to the Seller through the modality of Payment with Credit, the Seller reserves its right to supply the Product to the Buyer through the modality of payment in advance.

  
 9.1.2 Modality of Payment in advance. In the event that
the Buyer does not gather the requirement to obtain credit from the Seller, he shall perform all the payments of the Product to be delivered before receive the Product, performing such payments according to the established in the first paragraph of
Clause 9.1. 
  

 5 

 9.1.3 Other payments. Any other payment to the Seller, different from the supplied and invoiced
Product , that as declarative way but not limitative may be assistance in transportation equipment, services, raking, adjustment for differences in the invoices, penalizations, etc., shall be performed within the seven (7) natural days
following to the submission of a written payment requirement by the Seller in which it is stated the concept of the debt and the amount of the obligation. 
  
 9.2 Payment guarantees. In the event that the Seller grants Credit to the Buyer, he shall demand to the Buyer, before beginning the operations, to guarantee
the payment of the Product at the supply moment through a bond or a promissory letter or any other kind of guarantee, in the form, amount and life that the Seller determines. The bond shall be issued by any institution that has executed any prior
bond agreement with the Seller. If the guarantee is a promissory letter, it shall be issued under the terms fixed by the Seller and it could be obtained by the Buyer’s bank of preference. 
  
 9.3 Delay in the payment. Supposing that the Buyer incurs delay with anyone of
its obligations of payment, these will daily produce interests as of the date in which this payment had to be performed until the date of its total liquidation, applying an equivalent rate of 2.5 times the T.I.I.E., same which will be immediately
indispensable and payable, in the understanding of which the aforementioned will be without damage of the application of any other provision or any other legal resource that has the Seller, or derived from the present Agreement or any other source,
including, without any limitation, the Clause 9.4. To determine and pay the delay interests in account of the Buyer the following procedure will be applied: (a) the interest rate for delay applicable to the non paid and matured balance, will be
that resulting of applying the monthly average of the T.I.I.E. determined by the Bank of Mexico and published on the Official Gazette of the Federation correspondent to twenty eight (28) days. For the effect of the calculation of the monthly
average rate T.I.I.E., the arithmetic sum of the T.I.I.E. rates know and in force from the first natural Day, until the third labor Day prior to the termination of the previous Month to the application for the rate, divided between the number of
natural Days considered in the arithmetic sum and the result will be also divided between twelve (12) and will be multiplied by factor 2.5, (b) the amount of the delay interests will be that resulting from multiply the non paid balance of
the matured debt by the coefficient resulting from divide the monthly delay rate between thirty (30) and multiplied by the number of Days of delay in the Month, including the date of payment. 
  
 The Buyer accepts that its payments are applied in first
term to the delay interests and the to the capital. 
  
 9.4 Payment of
expenses. The Buyer shall pay all the bank charges and commissions related to the payment that shall do to the Seller according to this Agreement, including a list but not limiting, any expense related to the establishment of
the promissory letter and guarantees referred in Clause 9.2. 
  
 9.5 Payment
breach. In the event that the Buyer breaches any payment that shall be done according this Agreement, the Seller (without any prejudice of any other right or legal resource derived from this Agreement or any other source) will
have the right at its sole discretion (i) to suspend any further delivery of the Product until the Buyer pays the matured amounts and the interests derived on those amounts and (ii) to terminate the present Agreement with immediate effects
(without the need of any judicial declaration) through notice to the Buyer given in any moment prior to the complete payment of all the owed amounts and the correspondent interests by the Buyer. 
  
 Clause 10. Prohibition to Compensate 
  
 Without any prejudice of the Buyer’s right to submit further claims that may have in
regards to this Agreement in a judicial procedure filed according to the established in Clause 17, all the payments that the Buyer may perform in accordance to this agreement will be done punctually and without any compensation or deduction of any
nature, this for any claim that the Buyer or any other persona may actually have or obtain in the future against the Seller o any other of its 

  

 6 

 
Affiliates. The Buyer by this means liberates the Seller and quit every single right related to the claims originated against the Seller or any other of its
Affiliates regarding the purchase and sale of the Product prior to the execution date of this Agreement that the Buyer had not notified by written to the Seller prior to the execution of this Agreement. 
  
 Clause 11. Other Provisions and Guarantees of the Buyer 
  
 The Buyer declares and guarantees that: 
  
 (a) has the capacity to storage Anhydorous Ammonia in its own facilities equivalent at least
the five per cent (5%) of its annual requirements of Ammonia; 
  
 (b) has the
capacity to transport Anhydorous Ammonia, or by means of carriers or its tankers of its own, during any Operative Week equivalent at least the five per cent (5%) of its annual requirements of Ammonia; 
  
 (c) has the adequate equipment and personnel to handle, transport and storage Anhydorous
Ammonia as well as to attend emergencies resulting of such handling, transportation or storage; 
  
 (d) the present Agreement has been duly authorized and all the corporate acts and of any other nature needed have been carried out to this effect; 
  
 (e) the present Agreement constitutes a valid obligation to the Buyer, that binds him legally and it is requirable to him under its terms;

  
 (f) has obtained all the required authorizations to handle, transport and
storage Anhydorous Ammonia including those requirement from the Ministry of Environment and Natural Resources and such authorizations are in force (in the understanding that the Buyer will notify immediately the Seller if any of them are canceled,
revoked, annulled or terminated): 
  
 (g) the Product obtained according this
Agreement is to be resold to its Clients; 
  
 (h) as industrialist and employer of
the personnel he employs by reason of this Agreement, he is the only responsible of the obligations derived of the legal provision and other regulations in the labor and social security subjects and therefore, he will respond to any claim that any
of his employees file against him or against the Seller in relation to the reception of the Product and he will reimburse the seller any amount expended by this concepts; 
  
 (i) will respond to all the tax obligations derived by the present Agreement, according to the correspondent laws; 
  
 (j) any Buyer’s functionary, director, counselor, employee or representative has give or
will give any kind of commission, fee, gift or compensation of any nature whatsoever that has a cost or meaningful value in relation to the present Agreement; 
  

(k) the Buyer has not been in contact neither negotiated with any intermediary, commission agent or third party the acquisition of the Product and none of such persons
have the right to receive any compensation regarding the present Agreement or the supply of the Product; 
  
 (l) each one of the aforementioned provisions and guarantees is true and valid in the date that gets in force this Agreement and will continue being true and valid in the dates of each delivery of Ammonia under the
same, as if such provisions and guarantees had been done in each of such dates. 
  

 7 

 Clause 12. Cause and Termination Effect  
  
 12.1 Causes of Termination. Notwithstanding any stipulation against in the present Agreement, the Seller (without prejudice of
any other right or legar resource derived from this Agreement or any other source) will terminate this Agreement with immediate effects (without the need of any judicial declaration), through written notice given to the Buyer, in the event that;

  
 (a) the financial situation of the Buyer is affected or reduced in such way
that under the reasonable judgment of the Seller, that can seriously affect the capacity of the Buyer to accomplish the obligations contracted under this Agreement, or that any arrangement to guarantee the payment of the sold Product also could be
affected or reduced. 
  
 (b) the Buyer initiates procedures to be declared broke
or under insolvency state, promote or be subject of any reorganization mandated under judicial order, procures the benefit of any law to liberate debtors, perform any cession on behalf of creditors, admit by written his impossibility to pay in
general, debts at its maturity or perform any other act generally recognized ad insolvency or broke, or that the Buyer declares a payment suspension; 
  
 (c) an issuance of any resolution or judicial order that declares that the Buyer is broke or under insolvency state, that approves an application asking its
reorganization, that approves an application to be protected under any law to be liberated from its debtors, that designate any trustee o interviewer, or that it declares or orders the dissolution or liquidation of the Buyer; 
  
 (d) any of the Buyer’s authorizations to handle, transport or storage Anhydorous Ammonia
including those requirement from the Ministry of Environment and Natural Resources and such authorizations to be canceled, revoked, annulled or terminated; 
  
 (e) any provision done by the Buyer under this Agreement finds to be false or incorrect in any substantial matter or on the date of any Ammonia deliver under the same,
and; 
  
 (f) the buyer does not accomplish any substantial obligation under this
Agreement. 
  
 12.2 Termination Effects. The rescission or
termination of this Agreement, according to the established in Clause 12.1, Clause 24 or any other motive, does not liberates the Buyer to perform any payment that he is bind in accordance to this Agreement.  
  
 Clause 13. Non-Disclosure 
  
 The parties agree that in all the information in regards obtained from the other party
through any of its functionaries, including directors, employees or other representatives (the Agreement and such information referred to as “Information” for the effect of this Clause 13), shall be treated as confidential property and can
not be disclosed, without the written consent of the other party. Notwithstanding the aforementioned, any of the parties may reveal the information in accordance to governmental, administrative or judicial requirements to which such party is
subject, anytime the information disclosure is mandatory for such party and if it does not do it will incur in civil or penal liability, as well as in the event that such information is from the public dominium. In the event that any of the parties
disclose any information in prejudice of this Clause 13, the other party will have the right, without prejudice of any other right or legal resource derived from this Agreement or any other source, to terminate this Agreement with immediate effects
(without the need of judicial declaration) through written notice to the other party. This non-disclosure obligation will be permanent and will not cease with the expiration, suspension or termination of this Agreement. 
  
 Clause 14. Non-Stipulation for Third Parties: Cession  
  
 14.1 Non-stipulation for third parties. None provision of this
Agreement is designed and can not be interpreted in such way that concedes on behalf of any person or entity a right under this Agreement as a stipulation on behalf of third parties. 
  

 8 

 14.2 Cessions by the Buyer. The Buyer can not cede to any third party any right or interest in this
Agreement nor delegate any obligation without the written consent by the Seller, except that such cession or delegation is performed to any company that belongs to the same corporate group of the Buyer. In the event that the Buyer does not
accomplish with the established in this Clause, the Seller will have the right, without prejudice of any other right or legal resource derived from the present Agreement or any other source, to terminate this Agreement with immediate effects
(without the need of any judicial declaration) through written notice to the Buyer. 
  
 14.3 Cessions by the Seller. The Seller may, with entire freedom, cede its rights and obligations derived from this Agreement to any of its Affiliates or any other buyer or any acquirer entity of all or a part of the Producer
Center under the terms of Clause 16, in such event the Seller will be liberated from any responsibility under this Agreement, being the acquiring party of the cession, in its moment, engaged with the Buyer under the same terms and conditions
established in the Agreement herein. 
  
 Clause 15. Fortuitous Case and
Force Majure 
  
 15.1 Free of liability. None of the
parties will be responsible for damages, prejudice, claims or demands or any nature coming from any delay or breach of the obligations in accordance to this Agreement attributable to fortuitous case and force majure, including, as a list but not
limitative: natural phenomenon or acts from public enemies, floods or fire, hostilities or war (declared or not declared), blocking, labor disturbs, strikes, tumults, insurrections or civil seditions, restrictions for quarantine, storms or
meteorological inclemencies in the Shipper Center, or in any of the plants used by the seller for the Production of the Anhydorous Ammonia, accidents, close, breakdown or damages to any Shipper Center, or the Exchange Ways, or any plant used by the
Seller for the Production of the Anhydorous Ammonia, interruption or reduction in the production of the Product by the Seller, or shortage of the same for its sale, by any reason, or laws, decrees, regulations, orders or other directives or acts of
general or particular appliance from the Government of the Mexican United States or any other of its dependent offices, or requirements of any of such authorities. 
  
 15.2 Notification. Any party of this Agreement that claims fortuitous case or force majure will notify as soon
as possible to the other party the fortuitous case or force majure in question, the effects on the accomplishment of its obligations described in the Agreement herein, the estimated duration and the moment of termination of this fortuitous case or
force majure. 
  
 15.3 Payment of the sold and delivered
Ammonia. No provision described in this Clause 15 herein will liberate the Buyer of its obligation to fully pay the price of the sold and delivered Product and to pay any other amount owed to the Seller in accordance to this
Agreement. 
  
 15.4 Proportional reduction. In the event of a
reduction in the production of the Product as consequence of fortuitous case or force majure, the Seller will only reduce the volume of the supplied Product to the Buyer proportionally in relation to the volume corresponding to each one of the
clients. If there is a fortuitous case or force majure, the Seller will no have the obligation, under any concept, to buy the Product of any third party to can sell the Buyer. This Clause does not apply for exports that the Seller may do, it only
will apply to clients that maintain a long time contractual relationship with the Seller. 
  
 15.5 Non-prorogation of the Agreement: Right of termination due to a Fortuitous Case and Force Majure. The event of any fact that constitute a fortuitous case or force majure will not have as
effect the prorogation of the life of this Agreement. In the event that this fact interrupts or suspends the accomplishment of the obligations of any of the parties according this Agreement for a longer period of thirty (30) Days, the other
party will have the right to terminate this 

  

 9 

 
Agreement (without the need of any judicial declaration) through the given notice to the party that claims such fortuitous case or force majure. 

 
 Clause 16. Sale or Closure of the Plants.

  
 If during the life of this Agreement any of the used plants by the Seller to
produce Ammonia is sold or in any other form transferred, as whole or in part, or closed by any reason, the Seller may, to its own choice: (i) terminate this Agreement in the date of the sale, transfer or closure of the plant in question or in
a further date (same which will be within the next ninety (90) Days to the date of sale, transfer or closure) through given notice to the Buyer within no more than the next fifteen (15) prior to the termination date; or (ii) cede all
the rights and delegate all the obligations derived from this Agreement to the Buyer or any other acquiring entity, in the event of sale or any other transfer in whole or in part of any of the plants used by the Seller to produce the Ammonia from
the Producer Center in question. 
  
 Clause
17. Applicable Jurisdiction and Legislation. 
  
 This Agreement will
be ruled and interpreted according the federal laws of the Mexican United States. The parties expressly submit themselves to the exclusive jurisdiction of the Federal Court of the City of Coatzacoalcos, Veracruz, and expressly resign to any other
law that may correspond in regards to any conflict that may arise or is related to this Agreement, and that is strictly related to the operations derived from this Agreement. 
  
 Clause 18. Satisfactory documentation. 
  
 The Buyer will opportunely provide the Seller a list of the authorized persons to represent
the Buyer in his deals with the Seller, which will have the power and authorization that the Buyer appoints under his responsibility, as well as the proxy or power that proves it. The Buyer will provide the Seller any other information or
documentation that the Seller may reasonable asks in regards to the financial or corporate condition of the Buyer during the life of this Agreement. 
  
 Clause 19. Limited Liability. 
  
 None of the parties will be responsible for secondary, indirect or special losses, damages or prejudices, of any nature derived or in any way related to the
accomplishment or breach of this Agreement, including as a list but not limiting, losses or damages or prejudices resulting from the closure of Plants or impossibility to comply purchase and sale agreements or other agreement whatsoever its nature
that may happen or be related to the accomplish or breach under the terms of this Agreement. 
  
 Clause 20. Compilation. 
  
 This Agreement includes all the provisions that will rule the purchase and sale of Ammonia and substitutes all other prior contracts and agreements, written or by word,
between the Buyer and the Seller, or any of its Affiliates, in regards to such purchase and sale. Any executed agreement before nor any negotiation between the parties in the course of its transactions, as well as any other prior declaration of any
Seller’s functionary, employee or legal representative to this Agreement, will be admitted under the interpretation of its terms and conditions. The Buyer confirms that there are no implicit declarations done by the seller that have been
motivated or induced the execution of this Agreement. 
  
 Clause 21.
Provisions Autonomy. 
  
 The invalidity, illegality or lack of
credibility of any of the provisions of this Agreement will not affect the validity and coercibility of its other provisions. 
  
 Clause 22. Notices. 
  
 All notices and communications between the parties shall be done by written and will have effects when received by the addressee indistinctly in the addresses or faxes
written below: 
  

			
	To the Seller:	 	PETROQUIMICA COSOLEACAQUE, S.A. DE C.V.
	 	 	 Jacarandas 100 Lefel A2

	 	 	 Col. Rancho Alegre 1

	 	 	 Coatzacoalcos, Veracruz C.P. 96558

	Fax:	 	 01 921 112-44

	Attention:	 	 Mr. José Gerardo Pérez Contreras

  

 10 

			
	To the Buyer:	 	RHOFIA FOSFATADOS DE MÉXICO, S.A. DE C.V.
	 	 	 Complejo Industrial Pajaritos

	 	 	 Postal Number No. 2481

	 	 	 Coatzacoalcos, Veracruz

	Fax:	 	 (019) 218-00-84 218-01-38

	Attention:	 	 Mr. Argeo Vázquez Velázquez (operation)

	 	 	 Mr. Gerardo Molina Carmona (commercial)

	Phone:	 	 (019) 211-55-50

  
 It is responsibility of each of the
parties to notify by written any change of functionary, domicile, fax or phone number. In the contrary, it will be enough that the receiver retransmits the communication with receipt requested to perfect the notice and spurt legal effects.

  
 Clause 23. Modifications and Ressignations. 

 
 Any modification to the Agreement shall be through written agreement between the parties.
The resignation by any party to any provision of this Agreement shall be in written. 
  
 Clause 24. In Force. 
  
 This Agreement will be in
force on Day 23 of April, 2001 and, subject to the terminations provisions established in other Clauses of this Agreement, will continue in force for and indefinite term until it is terminated by any of the parties at the end of any Month through
given notice to the other party at least three (3) Months in advance, in the understanding that the obligations of the parties under this Agreement will continue in force during the period comprised between the termination date notice and the
Day in which such termination takes effects. 
  
 IN WITNESS WHEREOF, the
parties herein subscribe this Agreement through its legal representative in the City of Coatzacoalcos, Veracruz, with effects on the date aforementioned. 
  

	
	SELLER
	PETROQUIMICA COSOLEACAQUE, S.A. DE C.V.
	
	  
	 Mr. Guillermo Chapa Rivera

	 Commercial Sub-director

  

	
	BUYER
	RHODIA FOSFATADOS DE MÉXICO, S.A. DE C.V.
	
	  
	 Mr. Silvio Fagundes Lucinda

	 Legal Representative

  
 JUDICIAL REVISON 

	
	
	  
	 Mr. Rogelio Martínez Hernández

	 Judicial Counselor

  

 11 

  
 EXHIBIT 1 

 
 PRODUCT SPECIFICATIONS 
 (ANHYDOROUS AMMONIA) 
  

							
	 PROVES

	 	 METHOD

	 	 UNITS

	 	 SPECIFICATIONS

	 Purity
	 	Difference	 	% Weigh	 	99.5 Minimum
	 Water
	 	Lummus 1452	 	% Weigh	 	0.50 Maximum
	 Greases and Oils
	 	Fluor Method 5-2	 	PPM Weigh	 	10 Maximum

  
 EXHIBIT 2 

 
 PROCEDURE FOR THE PRODUCT DELIVERIES 
 Directions for the Buyer 
  

	I.	DELIVERY OF ORDERS 

  
 No longer than the fifth Day of each Month, the Buyer will send the Seller a delivery schedule proposed in regards to the following Month through the document named
“Request Form” attached to this Exhibit 2. The Buyer shall send such delivery schedule proposed through the Fax Number (91-921) 1-12-44 or by ordinary mail to the Commercialization Coordination, located in Jacarandas 100 Level A2, Col.
Rancho Alegre 1, Coatzacoalcos, Veracruz. 
  

	II.	CONFIRAMTION OF THE PRODUCT RETIREMENT 

  
 The Seller will confirm by written its monthly schedule to the Buyer in the document named “Monthly Confirmation Form” attached to this Exhibit 2, such schedule
will be named for the effects of this Agreement the “Definite Delivery Schedule”, in the understanding that, the Seller will reserves the right of freely modify the Delivery Schedule Proposed, in relation to the amounts of the Product to
be delivered of each Operative Week of the Month in question by reasons of availability of the Product in the Shipper Center, and will give it to the Buyer with ten (10) Days in advance to the beginning of the 1st Operative Week. 
  
 In the event that the Buyer does not agree with the Definite Delivery Schedule, including any adjustment done by the Seller, the Buyer shall notify by written, asking the
changes considered to be necessary and its reasons, to the Commercialization Coordination; this Commercialization Coordination will analyze the factors that allow or reject the requested and will proceed in consequence, sending, in case, the
reschedule application to the Logistic of Supply Coordination. 
  

	III.	PRESENTATION OF THE TANKERS AND DOCUMENT AT THE ASSIGNED SHIPPER CENTER  

  
 To may give the scheduled Product to the tankers provide by the Buyer, this will formally assign to the Seller the name of each
transportation company authorized to retire the Product of our Shipper Centers. This letter shall be signed by the company’s legal representative and with a certified copy of its Notarial power enclosed and by a letter, also granted before
Notary Public, expressing that those faculties are still in force. 
  
 The Buyer shall notify the Seller if there is a change in the transportation company. 
  
 The Buyer accepts that is his responsibility to prove that the transportation company accomplishes all the laws and regulations applicable for the transportation of the
Product. The Seller may verify the state of the transportation unit as well as any document derived from the requirements of such regulations, if considered convenient, but in any moment will be responsible for the damage that eventually may produce
to the unit or the Product contained in it. 
  
 The Buyer will formally notify the
Seller the name and charge of each of the authorized functionaries to issue the “Retirement Applications”. Also it shall be signed by the legal representative and shall have the signature of the assigned persons. 
  
 DOCUMENTS 
  
 Retirement Application 
  
 Each time the Buyer retires Product, shall submit to the correspondent Shipper Center a “Retirement Application”, that shall accomplish the following
requirements: 
  

	 	•	 	To be issued in letter-head paper, with folio number, and always signed in original by one of the authorized persons in the letter mentioned in point 2. 

	 	•	 	To specify that a specific transportation company is “Authorized” to pick up the material. 

  

	 	•	 	To provide the following information: transportation line, the units’ numbers, number of the SECOFI verifying certification, operator’s name, signature and copy of an
identification (voter’s credential, driver’s license), the transported Product in the prior trip, the Product to be transported and the estimated amount of the shipment and lifetime of the Application, which is determined by the Client.

  

	 	•	 	To express that the driver of the unit is authorized to sign the promissory note registered in the body of the invoice, in name of the company that subscribes it.

  

	 	•	 	The “Retirement Application” may be a form, but all the information mentioned before shall be written in original. 

  
 Letter of Portage 
  
 Each time the Buyer retires Product, shall submit to the correspondent Shipper Center a
“Letter of Portage”, that shall accomplish the following requirements: 
  

	 	•	 	To be issued in letter-head paper, including the name or corporate name of the transportation company, fiscal domicile, Federal Tax Payment Registration, fiscal certificate and
folio number. 

  

	 	•	 	Driver’s full name and signature. This information shall agree with the driver’s name and signature specified in the “Retirement Application”.

  

	 	•	 	Seller’s name and address. 

  

	 	•	 	Name, last name and address of the person to whom the transportation company shall deliver the Product. 

  

	 	•	 	Specification of the Product and estimated volume the driver’s will charge. 

  

	 	•	 	Place and date of issuance of the “Letter of Portage”. 

  

	 	•	 	Identification number and plate’s numbers of the truck and tanker(s). 

  
 It shall be observed that the tankers that go to charge have only one tank with a capacity at least the more possibly closer to the scheduled modules to each product
(+/-15%). 
  
 TANKERS 
  
 Before being charged, the tanker may be visually inspected, with the purpose of detecting
mechanic and maintenance problems in the valves, and that may not allow is fulfillment, or that may cause any problem during the transportation. It is a Buyer’s liability the cleaning of the tanker showed to pick up the Product. 
  
 Before allow the entrance of the truck to the fulfillment facilities, it shall comply the
security regulations of the Seller in the related to the transportation (for example, extinguisher, land connection, etc.). 
  

	IV.	DELIVERY OF THE PRODUCT 

  
 Once the aforementioned documents have been satisfactory reviewed, the tanker will be authorized to enter the facilities of the Seller to charge the scheduled Product
following the steps described below: 
  

	 	•	 	The tanker will be inspected for Seller’s personnel, to verify that it accomplish all the security and cleaning requirements needed to transport the Product. If this inspection
is satisfactory, it can enter the facilities. 

  

	 	•	 	In the door the pass will be reviewed. 

  

	 	•	 	Then the empty tanker will be weighed and the weigh will be registered. 

  

	 	•	 	Then it will go to the fulfillment area to charge the Product, taking care of respecting all the internal regulations of the assigned Shipper Center related to the transit and
security within the facilities. 

  

	 	•	 	When the tanker arrives to the fulfillment area, the Seller’s personnel will supervise the fulfillment operation. 

	 	•	 	The charge of the tanker will be invariably at the 85% of the tanker’s capacity to guarantee the security during the transportation of the Product. 

  

	 	•	 	Once the tanker is full, will be sealed exclusively by the Seller’s personnel, writing down the number of seals, which need to be included in the invoice and the Product exit
documents. 

  

	 	•	 	Once the tanker is sealed, will be weighed again to determine the amount of Product by difference. 

  

	 	•	 	With the tare, gross and net weigh, the invoice will be issued for the delivery of the Product, obtaining the received signature of the operator and giving him the copy of the
invoice, with which the Seller’s liability will end in regards to the given amount. 

  

	 	•	 	With the exit authorization the trio to the Buyer’s plant will be allowed. 

  

	V.	FAILURES IN THE RECEPTION OR DELIVERY OF THE PRODUCT IN THE SHIPPER CENTER 

  

	 	•	 	When the Buyer does not ask for the confirmation regarding the date or the assigned Shipper Center (s), and nevertheless, send his tankers to the Shipper Center or to the Exchange
Ways, the Seller is not engaged to do the delivery of the Product. 

  

	 	•	 	When the Buyer sends his tanker in a different week to that confirmed in the Definite Delivery Schedule, the Seller is not engaged to deliver the Product, resulting then that the
Buyer will absorb the delays and other expenses originated to the transportation for untimely presentation. 

  

	 	•	 	The Seller will not be responsible for the delays and false freight that may origin the fires, earthquakes, hailstorms or natural disasters as well as any delay that does not allow
the normal supply to the Buyer. 

  

	VI.	TRANSPORTATION OF THE PRODUCT 

  
 The Seller will not be responsible of any problem that may arise during the transportation of the Product. 
  
 Due to the dangerousness in the handling of the Product sold by the Seller, the Buyer shall
have all the respective insurances during its transportation. 
  
 It will be a
Buyer’s liability to check and control the tankers in transit, to take care they arrive on time to its destination. Nevertheless and with the purpose to avoid that the tankers go to different Buyer’s clients, the deviations found shall be
reported to the Seller with the objective to correct them when it is possible, or to apply the correspondent sanctions to the involved parties. 
  
 In the event that the tanker has an accident in its way, independently of the assistance supplied by the Product responsible company, in that moment, and independently of
the assistance that may receive from other aid entities, the Buyer will ask the Seller the corresponding assistance. 
  

	VII.	RECEPTION OF THE PRODUCT IN THE BUYER’S PLANT: INTERVENTION OF THE COMMERCIALIZATION COORDINATION 

  
 When the tankers arrive to the Buyer’s plant, he shall
verify: 
  

	 	•	 	That the Product is destined to him. 

  

	 	•	 	That the documents are complete. 

  

	 	•	 	That it is the required Product. 

  

	 	•	 	That the tanker is duly sealed and that the number of seals correspond to the mentioned in the documents. 

  

	 	•	 	That the amount of the received Product is the same written in the document. This verification shall be performed without breaking the seals. 

  

	 	•	 	That the quality of the Product accomplishes all the specifications agreed with the Seller. 

	 	•	 	Any anomaly related to the aforementioned, will be report immediately to the corresponding department of the Commercialization Coordination (the “Coordination”).

  

	 	•	 	When the Buyer receives a Product not assigned to him, the Seller reserves the right to apply the correspondent commercial sanctions, since the actions of this nature seriously
affect the performance of the schedules, the adequate recovery of the product’s value and the operation of the Buyer’s plant originally scheduled. 

  

	 	•	 	When the Buyer reports to the Coordination that has received a tanker destined to other Client, the Coordination shall agree with the original client the recovery of the shipment,
since for any reason the product assigned to other client will be accepted by other, and by any reason it shall be discharged. 

  

	 	•	 	When the documentation is not complete and the Buyer has a doubt, will call the Coordination, which shall provide him the information required. 

  

	 	•	 	When the product that the Buyer receives is not the requested, the Coordination will technically assist to identify it and to define the destination of such product.

  

	 	•	 	As a service to the Buyer, the Coordination may intervene when the seals are broken or are not the same as the written numbers, with the purpose of verifying any missing amount and
to contribute to define responsibilities. 

  

	 	•	 	As a service to the Buyer, when a missing amount is found, without breaking the seals, the Coordination will, at a Buyer’s request, verify it and will help to define
responsibilities. 

  

	 	•	 	When the Product does not accomplish the agreed quality, the Coordination will intervene in the verification and determination of the possible cause of the problem.

  

	 	•	 	The buyer shall submit to the Coordination, during the first week of each Month, a receipt requested-relation of the received shipments in the last Month, that shall include the
following information: 

  

	 	a)	Destination in which it was received. 

  

	 	b)	Product. 

  

	 	c)	Number of the tanker. 

  

	 	d)	Received amount. 

  

	 	e)	Reception date. 

  

	 	f)	Reception number. 

  

	 	g)	Comments. 

  
 REQUEST FORM

  
 Date of the request location
                                        
                     
  
 Exclusive use for Petroquímica Cosoleacaque 
  

									
	 Request for the Month
	  	 	  	 	  	 
				
	 Client
	  	 	  	 	  	 
				
	 Telephone number
	  	 	  	 	  	 
				
	 Destination
	  	 	  	 	  	 
				
	Product	  	 	  	 	  	 
				
	 Total amount required
	  	 	  	 	  	 
				
	 Payment form
	  	 	  	 	  	 
				
	 Periods

	  	 Amount

	  	 	  	 Shipper Center

	 First Operative Week
 (From day 1 to 7)
	  	 	  	 	  	 
				
	 Second Operative Week
 (From day 8 to 15)
	  	 	  	 	  	 
				
	 Third Operative Week
 (From day 16 to 23)
	  	 	  	 	  	 
				
	 Fourth Operative Week
 (From day 24 to the last day)
	  	 	  	 	  	 
		
	 Transportation to be used
	  	 
		
	Name of the person who made the request	  	 
				
	Comments:	  	 	  	 	  	 
	
	 
	
	 

  
 MONTHLY CONFIRMATION FORM

  
 Department of:
                                        
                                        
     
  
 RECEPTION OF THE REQUESTS

  
 Place:
                                        
                                        
    Consecutive Number                              
  
 Date:
                                        
                                        

  
 Required Product:
                                        
                     
  
 Monthly scheduled amount:
                                        
     
  
 Definite Schedule: 
  

									
				
	 Periods

	  	 Amount

	  	 	  	 Shipper Center

	 First Operative Week
 (From day 1 to 7)
	  	 	  	 	  	 
				
	 Second Operative Week
 (From day 8 to 15)
	  	 	  	 	  	 
				
	 Third Operative Week
 (From day 16 to 23)
	  	 	  	 	  	 
				
	 Fourth Operative Week
 (From day 24 to the last day)
	  	 	  	 	  	 

  

					
	 Employee who received
	 	 	 	 
			
	  	 	 	 	  
	 Name
	 	 	 	 Signature

  
 EXHIBIT 3

  
 PRICE OF THE PRODUCT 
  
 From April 23rd, 2001, the Price of the Product in Mexican Pesos, same that will be supplied to the Buyer meanwhile this Agreement is in force, will be determined according
the following formula: 
  
 Price of Ammonia = (****) 
  
 Where: 
  

	R=	The arithmetic average of the (****). 

  

	L=	The algebraic sum of a factor of the list (****), the actual charge for logistics (CL) in each distribution center, and a commercial discount (DC), (****) that will be periodically
reviewed and authorized by the Ministry of Treasury and Public Credit (****). 

  

	DV=	It is a discount per volume reviewed periodically and authorized by Ministry of Treasury and Public Credit (****) 

  
 The applicable discounts per volume for the Ammonia price from the formula (1) will
apply in each distribution center and will be determined according to the annual consume volumes described in Table A: 
  
 Table A 
  
 (****) 
  

	1.1	Alternate Price of Reference 

  
 If during the force of this agreement, any of the prices of reference used to determine the price of ammonia is suspended or interrupted by any cause, the
respective price will be determined applying only the price of reference that has not been interrupted or suspended. In the event that both prices of reference are suspended or interrupted by any cause, it will be used the price of ammonia (****).

  

	1.2	Currency Trade 

  
 The currency trade used, will be the average of the equivalents published in the (****). 
  
 The mechanism of prices described herein will be in force until the Ministry of Treasury and Public Credit does not authorize any
modification to the national policy of prices of ammonia.

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