Common use of Commercial Activity Clause in Contracts

Commercial Activity. The Issuer and each of the Guarantors are subject to civil and commercial law with respect to their obligations, as applicable, under the Agreements and the Securities. Article 27 of the Political Constitution of Mexico, Articles 6 and 13 (and related articles) of the General Law on National Patrimony, Articles 1, 2, 3 and 4 (and related articles) of the Regulatory Law, Articles 15, 16 and 19 of the Regulations to the Regulatory Law, Articles 2, 3 and 5 (and related articles) of the Petróleos Mexicanos Law, and Article 4 of the Federal Code of Civil Procedure of Mexico, set forth, inter alia, that (a) all domestic petroleum and hydrocarbon resources (whether solid, liquid, gas or intermediate form) are permanently and inalienably vested in Mexico (and, therefore, entitled to immunity), (b) (i) the exploration, exploitation, refining, transportation, storage, distribution and first-hand sale of crude oil, (ii) the exploration, exploitation, production and first-hand sale of gas, as well as the transportation and storage inextricably linked with such exploitation and production, and (iii) the production, transportation, storage, distribution and first-hand sale of the derivatives of petroleum (including petroleum products) and of gas used as basic industrial raw materials that constitute “basic petrochemicals” (the “Petroleum Industry”) is reserved to Mexico (and, therefore, entitled to immunity), (c) the public entities created and appointed by the Federal Congress of Mexico exclusively to conduct, control, operate and develop the Petroleum Industry in and on behalf of Mexico are the Issuer and the Guarantors (such entities are, therefore, entitled to immunity with respect to exclusive right and power), and (e) attachment prior to judgment, attachment in aid of execution and execution of a final judgment may not be ordered by Mexican courts against property of the Issuer and the Guarantors.