Common use of Exploration Performance Guarantee Clause in Contracts

Exploration Performance Guarantee. (a) To guarantee the due, proper and full performance by the Contractor of the Minimum Work Program during the Initial Exploration Period, the Contractor shall submit to CNH, simultaneously with the execution of this Contract, an unconditional and irrevocable letter of credit issued for the benefit of the Fund by an authorized Mexican banking institution or issued by a foreign bank and confirmed by an authorized Mexican banking institution, in the amount of , using the form of letter of credit attached hereto as Annex 9 (the “Initial Exploration Performance Guarantee”). The Initial Exploration Performance Guarantee shall remain in effect until sixty (60) Days following the end of the Exploration Period. The Fund, at the request of CNH, shall be entitled to draw on the Initial Exploration Performance Guarantee to collect any liquidated damages specified in Article 4.5 for failure to perform the Minimum Work Program. (b) To guarantee the due, proper and full performance by the Contractor of its additional work commitment during the First Additional Exploration Period (if any), the Contractor shall submit to CNH, no later than ten (10) Days after CNH approves the granting of the First Additional Exploration Period to the Contractor, but in any case before the beginning of the First Additional Exploration Period, an unconditional and irrevocable letter of credit issued for the benefit of the Fund by an authorized Mexican banking institution or by a foreign bank and confirmed by an authorized Mexican banking institution, in the amount of (c) To guarantee the due, proper and full performance by the Contractor of its additional work commitment during the Second Additional Exploration Period (if any), the Contractor shall submit to CNH, no later than ten (10) Days after CNH approves the granting of the Second Additional Exploration Period to the Contractor, but in any case before the beginning of the Second Additional Exploration Period, an unconditional and irrevocable letter of credit issued for the benefit of the Fund by an authorized Mexican banking institution or by a foreign bank and confirmed by an authorized Mexican banking institution, in the amount of

Exploration Performance Guarantee. (a) To guarantee the due, proper and full performance of the commitments made by the Contractor of the Minimum Work Program during the Initial Exploration Period, the Contractor shall submit to CNH, simultaneously with the execution of this Contract, an unconditional and irrevocable letter of credit issued for the benefit of the Fund CNH by an authorized Mexican banking institution or issued by a foreign bank and confirmed by an authorized Mexican banking institution, in the amount of (b) At previous request from the Contractor and after two (2) Contractual Years following the beginning of the Initial Exploration Period, the amount of the Initial Performance Guarantee may be proportionally reduced considering progress towards the guaranteed obligations prior verification and authorization of CNH. Upon the termination of the Initial Exploration Period, the contractor may request the return of the Initial Performance Guarantee once CNH has issued a report of full compliance to the obligations set forth in the Initial Exploration Period. (c) To guarantee the due, proper and full performance by the Contractor of the Minimum Program Increase not completed during the Initial Exploration Period and its additional work commitment for the Additional Exploration Period (if any), the Contractor shall submit to CNH, no later than ten (10) Days after CNH approves the granting of the Additional Exploration Period to the Contractor, but in any case before the beginning of the Additional Exploration Period, an unconditional and irrevocable letter of credit issued for the benefit of CNH by an authorized Mexican banking institution or by a foreign bank and confirmed by an authorized Mexican banking institution, in the amount of , using the form of letter of credit attached hereto as Annex 9 (the “Initial Exploration Performance Guarantee”Additional Period Guarantee ). The Initial Exploration Performance Guarantee of the Additional Period shall remain in effect until sixty (60) Days following the end of the Additional Exploration Period after the corresponding verification of CNH of full compliance with the obligations set forth in the Initial Exploration Period. The Fund, at the request of CNH, CNH shall be entitled to draw on the Initial Additional Exploration Performance Guarantee to collect any liquidated unliquidated damages specified in Article 4.5 for 4.4 due to the failure to perform comply with the Minimum Work ProgramProgram Increase and the additional commitments for the Additional Exploration Period. (bd) To guarantee the due, proper and full performance by the Contractor of its additional work commitment during the First Additional Exploration Period (if any), the Contractor shall submit to CNH, no later than ten (10) Days after CNH approves the granting Upon termination of the First Additional Exploration Period to the Contractor, but in any case before the beginning of the First Additional Exploration Period, an unconditional and irrevocable letter of credit issued the Contractor may file for the benefit return of the Fund by an authorized Mexican banking institution or by Additional Period Guarantee once CNH issues a foreign bank and confirmed by an authorized Mexican banking institution, in report of full compliance with the amount of (c) To guarantee the due, proper and full performance by the Contractor of its additional work commitment during the Second Additional Exploration Period (if any), the Contractor shall submit to CNH, no later than ten (10) Days after CNH approves the granting of the Second Additional Exploration Period obligations related to the Contractor, but in any case before the beginning of the Second Additional Exploration Period. In the event the Performance Guarantee becomes effective, an unconditional and irrevocable letter of credit issued the guarantee resources allocated for the benefit of latter shall be transferred to the Fund by an authorized Mexican banking institution or by a foreign bank and confirmed by an authorized Mexican banking institution, in the amount ofFund.

Exploration Performance Guarantee. (a) To guarantee the due, proper and full performance of the commitments made by the Contractor of the Minimum Work Program during the Initial Exploration Period, the Contractor shall submit to CNH, simultaneously with the execution of this Contract, an unconditional and irrevocable letter of credit issued for the benefit of the Fund CNH by an authorized Mexican banking institution or issued by a foreign bank and confirmed by an authorized Mexican banking institution, in the amount of USD$77,649,000.00 (seventy seven millions six hundred forty-nine thousand Dollars 00/100 CY), using the form of letter of credit attached hereto as Annex 9 (the “Initial Exploration Performance Guarantee”). The Initial Exploration Performance Guarantee shall cover the Minimum Work Program and the Minimum Program Increase. Such guarantee shall remain in effect until sixty (60) Days following the end of the Initial Exploration PeriodPeriod prior verification of full compliance with the obligations related to this period. The Fund, at the request of CNH, CNH shall be entitled to draw on the Initial Exploration Performance Guarantee to collect any liquidated damages specified in Article 4.5 4.4 for failure to perform the Minimum Work ProgramProgram and Minimum Program Increase. (b) At previous request from the Contractor and after two (2) Contractual Years following the beginning of the Initial Exploration Period, the amount of the Initial Performance Guarantee may be reduced in proportion to the compliance of the guaranteed obligations prior verification and authorization of CNH. Upon the termination of the Initial Exploration Period, the Contractor may request the return of the Initial Performance Guarantee once CNH has issued a report of full compliance to the obligations of the Initial Exploration Period. (c) To guarantee the due, proper and full performance by the Contractor of the Minimum Program Increase not completed during the Initial Exploration Period and its additional work commitment during for the First Additional Exploration Period (if any), the Contractor shall submit to CNH, no later than ten (10) Days after CNH approves the granting of the First Additional Exploration Period to the Contractor, but in any case before the beginning of the First Additional Exploration Period, an unconditional and irrevocable letter of credit issued for the benefit in favor of the Fund CNH by an authorized Mexican banking institution or by a foreign bank and confirmed by an authorized Mexican banking institution, in the amount of in terms of Clause 4.3, using the form of letter of credit attached hereto as Annex 9 (cthe “Additional Period Guarantee). The Additional Period Guarantee shall remain in effect until sixty (60) To guarantee Days following the due, proper and full performance by end of the Contractor of its additional work commitment during the Second Additional Exploration Period after the corresponding verification of CNH of full compliance with the obligations set forth therein. CNH shall be entitled to draw on the Additional Period Guarantee to collect any liquidated damages specified in Article 4.4 due to the failure to comply with the Minimum Program Increase and the additional commitments for the Additional Exploration Period. (if any), the Contractor shall submit to CNH, no later than ten (10d) Days after CNH approves the granting Upon termination of the Second Additional Exploration Period to the Contractor, but in any case before the beginning of the Second Additional Exploration Period, an unconditional and irrevocable letter of credit issued the Contractor may file for the benefit return of the Fund by an authorized Mexican banking institution or by Additional Period Guarantee once CNH issues a foreign bank and confirmed by an authorized Mexican banking institutioncertificate of full compliance of the obligations related to the Additional Exploration Period. In the event the Performance Guarantee becomes effective, in the amount ofguarantee resources allocated for the latter shall be transferred to the Fund.

Exploration Performance Guarantee. (a) To guarantee the due, proper and full performance of the commitments made by the Contractor of the Minimum Work Program during the Initial Exploration Period, the Contractor shall submit to CNH, simultaneously with the execution of this Contract, an unconditional and irrevocable letter of credit issued for the benefit of the Fund CNH by an authorized Mexican banking institution or issued by a foreign bank and confirmed by an authorized Mexican banking institution, in the amount of , using the form of letter of credit attached hereto as Annex 9 (the “Initial Exploration Performance Guarantee”). The Initial Exploration Performance Guarantee shall cover the Minimum Work Program and the Minimum Program Increase. Such guarantee shall remain in effect until sixty (60) Days following the end of the Exploration PeriodPeriod prior verification of full compliance with the obligations related to this period. The Fund, at the request of CNH, CNH shall be entitled to draw on the Initial Exploration Performance Guarantee to collect any liquidated unliquidated damages specified in Article 4.5 for failure to perform the Minimum Work ProgramProgram and Minimum Program Increase during the Initial Exploration Period. (b) Upon termination of the Initial Exploration Period, the Contractor may file for the return of the Initial Performance Guarantee once CNH issues a report of full compliance with the obligations related to the Initial Exploration Period. (c) To guarantee the due, proper and full performance of the commitments made by the Contractor of its additional work commitment during the First Additional Exploration Period (if any)Period, the Contractor shall submit to CNH, no later than ten (10) Days after CNH approves the granting of the First Additional Exploration Period to the Contractor, but in any case before the beginning of the First Additional Exploration Period, an unconditional and irrevocable letter of credit issued for the benefit in favor of the Fund by an authorized Mexican banking institution or by a foreign bank and confirmed CNH by an authorized Mexican banking institution, in the amount ofcalculated in terms of Article 4.3 and Annex 5, using the form of letter of credit attached hereto as Annex 9 (the “First Additional Performance Guarantee”). The First Additional Performance Guarantee shall remain in effect until sixty (60) Days following the end of the First Additional Exploration Period after the corresponding verification of CNH of full compliance with the obligations set forth in this period. CNH shall be entitled to draw on the First Additional Performance Guarantee to collect any unliquidated damages due to the failure to comply with any work commitment for the First Additional Exploration Period. (cd) Upon termination of the First Additional Exploration Period, the Contractor may file for the return of the First Additional Performance Guarantee once CNH issues a report of full compliance with the obligations related to the First Additional Exploration Period. (e) To guarantee the due, proper and full performance of the commitments made by the Contractor of its additional work commitment contractor during the Second Additional Exploration Period (if any)Period, the Contractor shall submit to CNH, no later than ten (10) Days after CNH approves the granting of the Second Additional Exploration Period to the Contractor, but in any case before the beginning of the Second Additional Exploration Period, an unconditional and irrevocable letter of credit issued for the benefit in favor of the Fund by an authorized Mexican banking institution or by a foreign bank and confirmed CNH by an authorized Mexican banking institution, in the amount ofcalculated in terms of Article 4.3 and Annex 5, using the form of letter of credit attached hereto as Annex 9 (the “Second Additional Performance Guarantee”). The Second Additional Performance Guarantee shall remain in effect until sixty (60) Days following the end of the Second Additional Exploration Period after the corresponding verification of CNH of full compliance with the obligations set forth in this period. CNH shall be entitled to draw on the Second Additional Performance Guarantee to collect any unliquidated damages due to the failure to comply with any work commitment for the Second Additional Exploration Period. (f) Upon termination of the Second Additional Exploration Period, the Contractor may file for the return of the Second Additional Performance Guarantee once CNH issues a report of full compliance with the obligations related to the Second Additional Exploration Period. (g) Upon request from the Contractor, the amounts of the Exploration Performance Guarantees may be reduced on an annual basis in terms of compliance with the obligations guaranteed, prior verification and authorization by CNH. In case the corresponding Exploration Performance Guarantee is drawn on, the guaranteed funds will be transferred to the Fund.

Exploration Performance Guarantee. (a) To guarantee the due, proper and full performance of the commitments made by the Contractor of the Minimum Work Program during the Initial Exploration Period, the Contractor shall submit to CNH, simultaneously with the execution of this Contract, an unconditional and irrevocable letter of credit issued for the benefit of the Fund CNH by an authorized Mexican banking institution or issued by a foreign bank and confirmed by an authorized Mexican banking institution, in the amount of USD$77,649,000.00 (seventy seven millions six hundred forty-nine thousand Dollars 00/100 CY), using the form of letter of credit attached hereto as Annex 9 (the “Initial Exploration Performance Guarantee”). The Initial Exploration Performance Guarantee shall cover the Minimum Work Program and the Minimum Program Increase. Such guarantee shall remain in effect until sixty (60) Days following the end of the Initial Exploration PeriodPeriod prior verification of full compliance with the obligations related to this period. The Fund, at the request of CNH, CNH shall be entitled to draw on the Initial Exploration Performance Guarantee to collect any liquidated damages specified in Article 4.5 4.4 for failure to perform the Minimum Work ProgramProgram and Minimum Program Increase. (b) At previous request from the Contractor and after two (2) Contractual Years following the beginning of the Initial Exploration Period, the amount of the Initial Performance Guarantee may be reduced in proportion to the compliance of the guaranteed obligations, prior verification and authorization of CNH. Upon the termination of the Initial Exploration Period, the Contractor may request the return of the Initial Performance Guarantee once CNH has issued a report of full compliance to the obligations of the Initial Exploration Period. (c) To guarantee the due, proper and full performance by the Contractor of the Minimum Program Increase not completed during the Initial Exploration Period and its additional work commitment during for the First Additional Exploration Period (if any), the Contractor shall submit to CNH, no later than ten (10) Days after CNH approves the granting of the First Additional Exploration Period to the Contractor, but in any case before the beginning of the First Additional Exploration Period, an unconditional and irrevocable letter of credit issued for the benefit in favor of the Fund CNH by an authorized Mexican banking institution or by a foreign bank and confirmed by an authorized Mexican banking institution, in the amount of in terms of Clause 4.3, using the form of letter of credit attached hereto as Annex 9 (cthe “Additional Period Guarantee ). The Additional Period Guarantee shall remain in effect until sixty (60) To guarantee Days following the due, proper and full performance by end of the Contractor of its additional work commitment during the Second Additional Exploration Period after the corresponding verification of CNH of full compliance with the obligations set forth therein. CNH shall be entitled to draw on the Additional Period Guarantee to collect any liquidated damages specified in Article 4.4 due to the failure to comply with the Minimum Program Increase and the additional commitments for the Additional Exploration Period. (if any), the Contractor shall submit to CNH, no later than ten (10d) Days after CNH approves the granting Upon termination of the Second Additional Exploration Period to the Contractor, but in any case before the beginning of the Second Additional Exploration Period, an unconditional and irrevocable letter of credit issued the Contractor may file for the benefit return of the Fund by an authorized Mexican banking institution or by Additional Period Guarantee once CNH issues a foreign bank and confirmed by an authorized Mexican banking institutioncertificate of full compliance of the obligations related to the Additional Exploration Period. In the event the Performance Guarantee becomes effective, in the amount ofguarantee resources allocated for the latter shall be transferred to the Fund.

Exploration Performance Guarantee. (a) To guarantee the due, proper and full performance of the commitments made by the Contractor of the Minimum Work Program during the Initial Exploration Period, the Contractor shall submit to CNH, simultaneously with the execution of this Contract, an unconditional and irrevocable letter of credit issued for the benefit of the Fund CNH by an authorized Mexican banking institution or issued by a foreign bank and confirmed by an authorized Mexican banking institution, in the amount of USD$65,703,000.00 (sixty-five million seven hundred three thousand Dollars 00/100 CY), using the form of letter of credit attached hereto as Annex 9 (the “Initial Exploration Performance Guarantee”). The Initial Exploration Performance Guarantee shall cover the Minimum Work Program and the Minimum Program Increase. Such guarantee shall remain in effect until sixty (60) Days following the end of the Initial Exploration PeriodPeriod prior verification of full compliance with the obligations related to this period. The Fund, at the request of CNH, CNH shall be entitled to draw on the Initial Exploration Performance Guarantee to collect any liquidated damages specified in Article 4.5 4.4 for failure to perform the Minimum Work ProgramProgram and Minimum Program Increase. (b) At previous request from the Contractor and after two (2) Contractual Years following the beginning of the Initial Exploration Period, the amount of the Initial Performance Guarantee may be reduced in proportion to the compliance of the guaranteed obligations prior verification and authorization of CNH. Upon the termination of the Initial Exploration Period, the Contractor may request the return of the Initial Performance Guarantee once CNH has issued a report of full compliance to the obligations of the Initial Exploration Period. (c) To guarantee the due, proper and full performance by the Contractor of the Minimum Program Increase not completed during the Initial Exploration Period and its additional work commitment during for the First Additional Exploration Period (if any), the Contractor shall submit to CNH, no later than ten (10) Days after CNH approves the granting of the First Additional Exploration Period to the Contractor, but in any case before the beginning of the First Additional Exploration Period, an unconditional and irrevocable letter of credit issued for the benefit in favor of the Fund CNH by an authorized Mexican banking institution or by a foreign bank and confirmed by an authorized Mexican banking institution, in the amount of in terms of Clause 4.3, using the form of letter of credit attached hereto as Annex 9 (cthe “Additional Period Guarantee). The Additional Period Guarantee shall remain in effect until sixty (60) To guarantee Days following the due, proper and full performance by end of the Contractor of its additional work commitment during the Second Additional Exploration Period after the corresponding verification of CNH of full compliance with the obligations set forth therein. CNH shall be entitled to draw on the Additional Period Guarantee to collect any liquidated damages specified in Article 4.4 due to the failure to comply with the Minimum Program Increase and the additional commitments for the Additional Exploration Period. (if any), the Contractor shall submit to CNH, no later than ten (10d) Days after CNH approves the granting Upon termination of the Second Additional Exploration Period to the Contractor, but in any case before the beginning of the Second Additional Exploration Period, an unconditional and irrevocable letter of credit issued the Contractor may file for the benefit return of the Fund by an authorized Mexican banking institution or by Additional Period Guarantee once CNH issues a foreign bank and confirmed by an authorized Mexican banking institutioncertificate of full compliance of the obligations related to the Additional Exploration Period. In the event the Performance Guarantee becomes effective, in the amount ofguarantee resources allocated for the latter shall be transferred to the Fund.