|Exhibit 2.6
|-----------



|
|



|TERM LOAN AGREEMENT
|-------------------



|dated as of
|-----------



|April 23, 2003
|--------------



|among
|-----



|COCA-COLA FEMSA, S.A. DE C.V.
|-----------------------------



|THE LENDERS PARTY HERETO
|------------------------



|JPMORGAN CHASE BANK 
      as Administrative Agent
|--------------------------------------------------



|and
|---



|BANCO J.P. MORGAN, S.A., 
      INSTITUCIÓN DE BANCA MÚLTIPLE, J.P. MORGAN GRUPO FINANCIERO,
      
      DIVISIÓN FIDUCIARIA 
      as Mexican Administrative Agent
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------

|
|



|MORGAN STANLEY SENIOR FUNDING, INC. 
      Syndication Agent
|------------------------------------------------------------



|J.P. MORGAN SECURITIES INC. 
      and 
      MORGAN STANLEY SENIOR FUNDING, INC., Co-Lead Arrangers and Joint Bookrunners
|--------------------------------------------------------------------------------------------------------------------------



|BANCO NACIONAL DE MÉXICO, S.A., 
      BBVA BANCOMER, 
      ING BANK, N.V., 
      Senior Arrangers
|----------------------------------------------------------------------------------------------------

|
|



| |  | 
| |  | 



---





|TABLE OF CONTENTS
|-----------------

|PAGE                                                                           
|-------------------------------------------------------------------------------
|                                                                               
|ARTICLE 1 DEFINITIONS                                                          
|                                                                               
|Section 1.01. Defined Terms                                                    
|Section 1.02. Terms Generally                                                  
|Section 1.03. Accounting Terms                                                 
|                                                                               
|ARTICLE 2 THE CREDITS                                                          
|                                                                               
|Section 2.01. Commitments                                                      
|Section 2.02. Loans, Notes and other Evidence of Loans                         
|Section 2.03. Borrowing Request; Notice of Initial
      Peso Exchange Rate    
|Section 2.04. Funding of Loans                                                 
|Section 2.05.Interest Period Elections                                         
|Section 2.06. Termination or Reduction of Commitments                          
|Section 2.07. Payment at Maturity; Scheduled Amortization                      
|Section 2.08. Prepayments                                                      
|Section 2.09. Fees                                                             
|Section 2.10. Interest                                                         
|Section 2.11. Alternate Rate of Interest                                       
|Section 2.12. Increased Costs                                                  
|Section 2.13. Break-Funding Payments                                           
|Section 2.14. Taxes                                                            
|Section 2.15. Payments Generally; Pro Rata Treatment;
      Sharing of Set-offs
|Section 2.16. Lenders Obligation to Mitigate; Replacement
      of Lenders    
|Section 2.17.Judgment Currency                                                 
|                                                                               
|ARTICLE 3 REPRESENTATIONS AND WARRANTIES                                       
|                                                                               
|Section 3.01. Organization; Powers                                             
|Section 3.02. Authorization; Enforceability                                    
|Section 3.03. Governmental Approvals; No Conflicts                             
|Section 3.04. Financial Statements; No Material Adverse
      Change           
|Section 3.05. Properties                                                       
|Section 3.06.Litigation and Environmental Matters                              
|Section 3.07. Compliance with Laws and Agreements                              
|Section 3.08. Investment and Holding Company Status                            
|Section 3.09. Taxes                                                            
|Section 3.10. Disclosure                                                       
|Section 3.11. Pari Passu Status                                                
|Section 3.12. Subsidiaries                                                     
|Section 3.13. Insurance                                                        
|Section 3.14.Labor Matters                                                     





| |  | 
| |  | 



---





|Section 3.15. Solvency                                                           | 38
|-------------------------------------------------------------------------------- | --
|Section 3.16.Legal Form                                                          | 38
|                                                                                
|ARTICLE 4 CONDITIONS                                                            
|                                                                                 |   
|Section 4.01.Effective Date                                                      | 39
|Section 4.02. Conditions To Borrowing                                            | 39
|                                                                                
|ARTICLE 5 AFFIRMATIVE COVENANTS                                                 
|                                                                                 |   
|Section 5.01. Financial Statements and Other Information                         | 42
|Section 5.02. Notice of Material Events                                          | 43
|Section 5.03. Existence; Conduct of Business                                     | 44
|Section 5.04. Payment of Obligations                                             | 44
|Section 5.05. Maintenance of Properties                                          | 44
|Section 5.06. Insurance                                                          | 44
|Section 5.07.Proper Records; Rights to Inspect and
      Appraise                | 44
|Section 5.08. Compliance with Laws                                               | 45
|Section 5.09. Use of Proceeds                                                    | 45
|Section 5.10. Further Assurances                                                 | 45
|Section 5.11. Covenants During Bridge Period                                     | 45
|                                                                                
|ARTICLE 6 NEGATIVE COVENANTS                                                    
|                                                                                 |   
|Section 6.01. Liens                                                              | 45
|Section 6.02. Fundamental Changes                                                | 46
|Section 6.03. Transactions with Affiliates                                       | 47
|Section 6.04. Restrictive Agreements                                             | 47
|Section 6.05. Interest Expense Coverage Ratio                                    | 48
|Section 6.06.Leverage Ratio                                                      | 49
|Section 6.07. Subsidiary Debt                                                    | 49
|                                                                                
|ARTICLE 7 EVENTS OF DEFAULT                                                     
|                                                                                 |   
|Section 7.01. Events Of Default                                                  | 49
|                                                                                
|ARTICLE 8 THE AGENTS                                                            
|                                                                                 |   
|Section 8.01. Appointment and Authorization                                      | 52
|Section 8.02.Rights and Powers as a Lender                                       | 52
|Section 8.03. Limited Duties and Responsibilities                                | 52
|Section 8.04. Authority to Rely on Certain Writings,
      Statements and Advice | 53
|Section 8.05.Sub-Agents and Related Parties                                      | 53
|Section 8.06. Resignation; Successor Administrative
      Agents                 | 53
|Section 8.07. Credit Decisions by Lenders                                        | 54



| | ii | 
| | -- | 



---





|ARTICLE 9 MISCELLANEOUS                                                       
|------------------------------------------------------------------------------
|                                                                              
|Section 9.01. Notices                                                         
|Section 9.02. Waivers; Amendments                                             
|Section 9.03.Expenses; Indemnity; Damage Waiver                               
|Section 9.04. Successors and Assigns                                          
|Section 9.05. Survival                                                        
|Section 9.06. Counterparts; Integration; Effectiveness                        
|Section 9.07. Severability                                                    
|Section 9.08. Right of Set-off                                                
|Section 9.09. Governing Law; Jurisdiction; Consent
      to Service of Process
|Section 9.10. WAIVER OF JURY TRIAL                                            
|Section 9.11. Headings                                                        
|Section 9.12. Confidentiality                                                 



| | iii | 
| | --- | 



---





|SCHEDULES AND EXHIBITS:
|-----------------------

|Schedule 1.01A | - | Acquisition Documents                              
|-------------- | - | ---------------------------------------------------
|Schedule 1.01B | - | Initial Material Subsidiaries                      
|Schedule 2.01  | - | Commitments                                        
|Schedule 2.04  | - | Deferred Funding Lenders                           
|Schedule 3.03  | - | Governmental Approvals                             
|Schedule 3.06  | - | Disclosed Matters                                  
|Schedule 3.12  | - | Subsidiaries                                       
|Schedule 6.01  | - | Existing Liens                                     
|Schedule 6.04  | - | Existing Restrictions                              
|               |   |                                                    
|Exhibit A      | - | Form of Assignment                                 
|Exhibit B-1    | - | Form of Dollar Tranche A Note                      
|Exhibit B-2    | - | Form of Dollar Tranche B Note                      
|Exhibit B-3    | - | Form of Peso Note                                  
|Exhibit C-1    | - | Form of Opinion of New York Counsel to the Borrower
|Exhibit C-2    | - | Form of Opinion of Mexican Counsel to the Borrower 
|Exhibit D-1    | - | Form of Opinion of New York Counsel to the Agents  
|Exhibit D-2    | - | Form of Opinion of Mexican Counsel to the Agents   
|Exhibit E-1    | - | Form of Borrowing Request                          
|Exhibit E-2    | - | Form of Interest Period Election Notice            



| | iv | 
| | -- | 



---





|TERM LOAN
AGREEMENT dated as of April 23, 2003 among COCA-COLA FEMSA, S.A. DE C.V.,  the LENDERS
party hereto, BANCO J.P. MORGAN, S.A., INSTITUCIÓN DE BANCA MÚLTIPLE,  J.P.
MORGAN GRUPO FINANCIERO, DIVISIÓN FIDUCIARIA, as Mexican Administrative Agent, and
JPMORGAN CHASE BANK, as Administrative Agent.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|RECITALS
|--------



|The
Borrower proposes to acquire all of the outstanding capital stock of Panamco (as
defined below) pursuant to a merger of a wholly-owned Subsidiary of the Borrower
with and into Panamco, and desires to borrow funds under this Agreement to
finance such acquisition and for the other purposes set forth herein. The
Lenders are willing to make loans hereunder on the terms and subject to the
conditions set forth herein. The parties hereto therefore agree as follows:
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|ARTICLE 1 
      DEFINITIONS
|----------------------------





|Section 1.01. Defined Terms.
      As used in this Agreement, the following terms have the meanings specified
      below:
|--------------------------------------------------------------------------------------------------------------------------



|Acquisition
      means the merger between Panamco and a wholly-owned Subsidiary of the Borrower,
      all pursuant to the Acquisition Documents.
|----------------------------------------------------------------------------------------------------------------------------------------------------



|Acquisition Date
      has the meaning set forth in Section 2.04(c).
|----------------------------------------------------------------------



|Acquisition Documents
      means the Merger Agreement and other documents specified in Schedule 1.01A.
|---------------------------------------------------------------------------------------------------------



|Adjusted LIBO Rate
      means, for any Interest Period, an interest rate per annum (rounded upwards,
      if necessary, to the next 0.01%) equal to (a) the LIBO Rate for such Interest
      Period multiplied by (b) the Statutory Reserve Adjustment in effect on the
      date of the determination.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Administrative
      Agent means JPMorgan Chase Bank, in its capacity as administrative
      agent under the Loan Documents, and its successors in such capacity.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Administrative Questionnaire
      means an Administrative Questionnaire in a form supplied by the Administrative
      Agent.
|--------------------------------------------------------------------------------------------------------------------------------



|Affected Facility
      has the meaning set forth in Section 2.04(b).
|-----------------------------------------------------------------------



|Affiliate
      means, with respect to a specified Person, another Person that directly,
      or indirectly through one or more intermediaries, Controls or is Controlled
      by or is under common Control with such specified Person. Control
      means possession, directly or indirectly, of the power to direct or cause
      the direction of the management or policies of a Person, whether through
      the ability to exercise voting power, by contract or otherwise. Controlling
      and Controlled have meanings correlative thereto.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | 
| |  | 



---





|Agents means
      the Administrative Agent, the Mexican Administrative Agent and the Syndication
      Agent.
|----------------------------------------------------------------------------------------------------------------



|Alternate Rate
      has the meaning set forth in Section 2.11(b).
|--------------------------------------------------------------------



|Alternate Rate Loan
      means, at any time, any Loan that is bearing interest at a rate based upon
      the Alternate Rate at such time.
|---------------------------------------------------------------------------------------------------------------------------------------------



|Attributable Debt
      in respect of a Sale and Leaseback Transaction means, at any date, the present
      value of the obligation of the lessee for net rental payments during the
      remaining term of the lease included in such Sale and Leaseback Transaction
      including any period for which such lease has been extended or may, at the
      option of the lessor, be extended. Such present value shall be calculated
      using a discount rate equal to the rate of interest implicit in such transaction,
      determined in accordance with GAAP.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Applicable GAAP
      has the meaning set forth in Section 1.03.
|------------------------------------------------------------------



|Applicable Margin
      means (as used below, the Third Anniversary and Fourth
      Anniversary means the third or fourth anniversary, respectively, of
      the relevant Borrowing Date for Loans of such Tranche) (a) with respect
      to any Dollar Loan for any day, the rate per annum set forth below under
      the caption LIBO Rate Margin opposite the period in which such
      day occurs and (b) with respect to any Peso Loan for any day, the rate per
      annum set forth below under the caption TIIE Rate Margin opposite
      the period in which such day occurs:
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Period                                                  |  | LIBO Rate 
      Margin |  | TIIE Rate 
      Margin
|------------------------------------------------------- |  | ----------------------- |  | -----------------------
|                                                        |  |                         |  |                        
|Relevant Borrowing Date through
      Third Anniversary |  | 0.85%                   |  | 0.45%                  
|Third Anniversary through
      Fourth Anniversary      |  | 0.95%                   |  | 0.50%                  
|Fourth Anniversary
      and thereafter                 |  | 1.05%                   |  | 0.55%                  

|Asset Amount
      has the meaning set forth in Section 6.04.
|---------------------------------------------------------------



|Asset Swap
      means any sale, transfer, lease or other disposition by the Borrower or
      any of its Subsidiaries of any asset or assets, including any Equity Interest
      owned by the Borrower or any of its Subsidiaries, in which the consideration
      received for such asset or assets are in the form of Distribution Assets.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Assignment
      means an assignment and assumption agreement entered into by a Lender and
      an assignee (with the consent of any party whose consent is required by
      Section 9.04), and accepted by the Administrative Agent, in the form of
      Exhibit A or any other form approved by the Administrative Agent.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Borrower
      means Coca-Cola Femsa, S.A. de C.V., a sociedad anónima de capital
      variable organized under the laws of Mexico.
|--------------------------------------------------------------------------------------------------------------------------------------



|Borrowing
      means Loans of the same Tranche made on the same day and as to which the
      same Interest Period is in effect.
|-----------------------------------------------------------------------------------------------------------------------------------



| | 2 | 
| | - | 



---





|Borrowing Dates
      means the Dollar Borrowing Date and the Peso Borrowing Date; and the relevant
      Borrowing Date means, for the Dollar Loans, the Dollar Borrowing Date
      and, for the Peso Loans, the Peso Borrowing Date.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Borrowing Request
      has the meaning set forth in Section 2.03.
|--------------------------------------------------------------------



|Bridge Loans
      means the loans made pursuant to the Other Loan Agreement.
|-------------------------------------------------------------------------------



|Bridge Period
      means the period from and including the date of the Other Loan Agreement
      to and including the first date on which the Bridge Loans and all interest
      due with respect to such Bridge Loans shall have been repaid in full and
      the commitments under the Other Loan Agreement shall have expired or been
      terminated.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Business Day
      means any day that is not a Saturday, Sunday, or other day on which commercial
      banks in New York City or Mexico City are authorized or required by law
      to remain closed.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Capital Lease Obligations
      of any Person means obligations of such Person to pay rent or other amounts
      under any lease of (or other arrangement conveying the right to use) real
      or personal property, or a combination thereof, which obligations are required
      under Applicable GAAP to be classified and accounted for as capital leases
      on a balance sheet of such Person (including without limitation any such
      obligation arising under a Sale and Leaseback Transaction). The amount of
      such obligations will be the capitalized amount thereof determined in accordance
      with Applicable GAAP.
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Change in Control
      means the occurrence of either of the following:
|--------------------------------------------------------------------------



| | (i)
during the Bridge Period, any Change of Control as defined in the  Other Loan
Agreement on the date hereof (without giving effect to any amendment  or modification
thereof not consented to in writing by the Required Lenders  under this Agreement
pursuant to Section 9.02(b)); or
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (ii)
the  failure by The Coca-Cola Company at any time after the end of the Bridge Period  to
own, directly or indirectly, beneficially and of record, ordinary shares of  capital
stock of the Borrower representing at least 25% of the voting power of  all issued and
outstanding capital stock of all classes of capital stock of the  Borrower (exclusive of
any matters as to which (x) class voting rights exist and  (y) holders of a class of
shares of the Borrower may exercise limited voting  rights).
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Change in Law
      means (a) the adoption of any law, rule or regulation after the date of
      this Agreement (including circulars or other rules issued by any Governmental
      Authority of Mexico), (b) any change in any law, rule or regulation or in
      the interpretation or application thereof by any relevant Governmental Authority
      after such date or (c) compliance by any Lender (or, for purposes of Section
      2.12(b), by any lending office of such Lender or by such Lenders holding
      company, if any) with any request, guideline or directive (whether or not
      having the force of law) of any Governmental Authority made or issued after
      such date.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 3 | 
| | - | 



---





|CNBV means
      the National Banking and Securities Commission (Comisión Nacional
      Bancaria y de Valores) of Mexico or any entity succeeding to any or
      all of its functions.
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Coca-Cola Facility
      means a liquidity facility extended by The Coca-Cola Company and/or any
      of its Subsidiaries to the Borrower and/or one or more of its Subsidiaries
      the proceeds of which shall be used for ongoing working capital, general
      corporate and related purposes, and the aggregate principal amount of which
      shall not exceed US$250,000,000.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Commitment
      means a Tranche A Commitment, Tranche B Commitment or Peso Loan Commitment,
      or any combination thereof (as the context requires).
|----------------------------------------------------------------------------------------------------------------------------------------------------------



|Consolidated EBITDA
      means, for any period, EBITDA of the Borrower and its Subsidiaries for such
      period; provided that Consolidated EBITDA (i)
      for the fiscal quarters ended June 30, 2002, September 30, 2002 and December
      31, 2002 shall be deemed to be US$249,657,504, US$199,780,002 and US$220,686,730,
      respectively, (ii) for the fiscal quarter ended March 31, 2003 shall be
      deemed to be the sum of (A) EBITDA of the Borrower and its consolidated
      Subsidiaries plus (B) EBITDA of Panamco and its consolidated Subsidiaries,
      each determined for such financial quarter in accordance with Applicable
      GAAP and (iii) for the fiscal quarter ended June 30, 2003 shall be deemed
      to be the sum of (A) EBITDA of the Borrower and its consolidated Subsidiaries
      plus (B) EBITDA of Panamco and its consolidated Subsidiaries from April
      1, 2003 through the Acquisition Date, each determined for such financial
      quarter in accordance with Applicable GAAP.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Consolidated Interest
      Expense means, for any period, Interest Expense of the Borrower
      and its Subsidiaries for such period; provided that Consolidated
      Interest Expense (i) for the fiscal quarters ended June 30, 2002,
      September 30, 2002 and December 31, 2002 shall be deemed to be US$30,729,849,
      US$27,921,840 and US$28,968,628, respectively, (ii) for the fiscal quarter
      ended March 31, 2003 shall be deemed to be the sum of (A) the Interest Expense
      of the Borrower and its consolidated Subsidiaries for such fiscal quarter
      plus (B) the Interest Expense of Panamco and its consolidated Subsidiaries
      for such fiscal quarter, and (iii) for the fiscal quarter ended June 30,
      2003 shall be deemed to be the sum of (A) the Interest Expense of the Borrower
      and its consolidated Subsidiaries for such fiscal quarter plus (B)
      the Interest Expense of Panamco and its consolidated Subsidiaries from April
      1, 2003 through the Acquisition Date.
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Consolidated Tangible
      Assets means at any time the total assets appearing on a consolidated
      balance sheet of the Borrower and its Subsidiaries less intangible assets
      appearing on such balance sheet, all determined on a consolidated basis
      at such time in accordance with Mexican GAAP.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Debt of
      any Person means, without duplication, (a) all obligations of such Person
      for borrowed money or with respect to advances of any kind, (b) all obligations
      of such Person evidenced by bonds, debentures, notes or similar instruments,
      (c) all obligations of such Person in respect of the deferred purchase price
      of property or services (excluding current trade payables or accounts payable
      incurred in the ordinary course of business), (d) all Debt of other Persons
      secured by any Lien on property owned or acquired by such Person, whether
      or not the Debt secured thereby has been assumed,
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 4 | 
| | - | 



---





|(e) all Guarantees including an aval by such Person
      of Debt of other Persons, (f) all Capital Lease Obligations of such Person,
      (g) all Derivatives Obligations of such Person (determined, where applicable,
      at the net termination value thereof and giving effect to contractually
      permitted netting with the relevant counterparty), (h) all non-contingent
      obligations of such Person as an account party in respect of letters of
      credit and letters of guaranty and (i) all obligations, contingent or otherwise,
      of such Person in respect of bankers acceptances.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Default
      means any event or condition which constitutes an Event of Default or which
      upon notice, lapse of time or both would, unless cured or waived, become
      an Event of Default.
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Deferred Funding Amount
      and Deferred Funding Lender each have the respective
      meaning set forth in Section 2.04(b).
|----------------------------------------------------------------------------------------------------------------------------------



|Derivatives Obligations
      of any Person means all obligations of such Person in respect of any rate
      swap transaction, basis swap, forward rate transaction, commodity swap,
      commodity option, equity or equity index swap, equity or equity index option,
      bond option, interest rate option, derivatives transactions with respect
      to foreign currency exchange, cap transaction, floor transaction, collar
      transaction, currency swap transaction, cross-currency rate swap transaction,
      currency option or any other similar transaction (including any option with
      respect to any of the foregoing transactions) or any combination of the
      foregoing transactions, including without limitation obligations under any
      Synthetic Purchase Agreement; provided that in no event shall the
      term Derivative Obligations include any swap, option or similar
      transaction relating to the price of aluminum or other commodities used
      in the business of the Borrower and its Subsidiaries entered into in the
      ordinary course of business of such Person or Persons and not for speculative
      purposes.
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Disclosed Matters
      means the matters disclosed in Schedule 3.06.
|-----------------------------------------------------------------------



|Distribution Assets
      means the assets consisting of brands, routes, territories or distribution
      rights with respect to the distribution or sale of soft drinks, beer, juices,
      water and other beverages, together with related assets for production and
      distribution in such routes or territories, including Equity Interests in
      any Person all or substantially all of whose assets consist of the foregoing,
      provided that immediately after giving effect to any such acquisition
      of Equity Interests, such Person is a Subsidiary of the Borrower.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Dollar Amount
      means, at any time, for any Lender and with respect to any determination
      required hereunder:
|------------------------------------------------------------------------------------------------------------------------



| | (i)
with  respect to any Dollar Commitment or Peso Commitment of such Lender, the  respective
Dollar amount thereof as set forth on Schedule 2.01 or in the  Assignment pursuant to
which such Dollar Commitment or Peso Commitment (or  portion thereof) has been assigned
under Section 9.04
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (ii)
with respect to any Dollar Loan, the principal amount of such Dollar Loan  then
outstanding; and
| | -----------------------------------------------------------------------------------------------------



| | 5 | 
| | - | 



---





| | (iii)
with respect to any Peso Loan, the Dollar equivalent of the principal amount  thereof
then outstanding, determined using the Peso Spot Rate at the time of  such determination.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Dollar Borrowing Date
      has the meaning set forth in Section 4.02.
|------------------------------------------------------------------------



|Dollar Loan
      means any Tranche A Loan or Tranche B Loan.
|---------------------------------------------------------------



|Dollar Loan Commitments
      means any Tranche A Commitment or Tranche B Commitment.
|---------------------------------------------------------------------------------------



|Dollars,
      $ or US$ means the lawful money of
      the United States.
|--------------------------------------------------------------------------------



|EBITDA means,
      for any period and for any Person, the sum of: (a) operating income of such
      Person and its Subsidiaries for such period plus (b) only to the
      extent deducted in determining such operating income for such period, (x)
      depreciation and amortization of such Person and its Subsidiaries for such
      period, all as determined in accordance with Applicable GAAP, and (y) all
      other non-cash items of such Person and its Subsidiaries reducing such operating
      income for such period (not including any such non-cash charges in such
      period that reflect cash expenses paid or to be paid in any other period).
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|EDC means
      Export Development Canada.
|--------------------------------------------



|Effective Date
      means the date on which each of the conditions specified in Section 4.01
      is satisfied (or waived in accordance with Section 9.02).
|---------------------------------------------------------------------------------------------------------------------------------------------------------------



|Environmental Laws
      means all laws, rules, regulations, codes, ordinances, technical standards
      (normas técnicas), orders, decrees, judgments, injunctions,
      notices or binding agreements issued, promulgated or entered into by any
      Governmental Authority, relating in any way to the environment, the preservation
      or reclamation of natural resources, the management, release or threatened
      release of any Hazardous Material or health and safety matters.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Environmental Liability
      means any liability, contingent or otherwise (including any liability for
      damages, costs of remediation, fines, penalties or indemnities), of the
      Borrower or any of its Subsidiaries directly or indirectly resulting from
      or based on (a) violation of any Environmental Law, (b) the generation,
      use, handling, transportation, storage, treatment or disposal of any Hazardous
      Material, (c) exposure to any Hazardous Material, (d) the release or threatened
      release of any Hazardous Material into the environment or (e) any contract,
      agreement or other consensual arrangement pursuant to which liability is
      assumed or imposed with respect to any of the foregoing.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Equity Interests
      means (i) shares of capital stock, partnership interests, membership interests
      in a limited liability company, beneficial interests in a trust or other
      equity ownership interests in a Person or (ii) any warrants, options, convertible
      bonds or other rights to acquire such shares or interests.
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Events of Default
      has the meaning specified in Article 7.
|-----------------------------------------------------------------



| | 6 | 
| | - | 



---





|Excluded Taxes
      means, with respect to any Lender Party or other recipient of a payment
      made by or on account of any obligation of the Borrower under any Loan Document
      (a) Taxes imposed on (or measured by) its net income or net profits by the
      jurisdiction (or any subdivision thereof or therein) under the laws of which
      such recipient is organized or in which its principal office is located
      or, in the case of any Lender, in which its applicable lending office is
      located, (b) Taxes imposed as a result of the failure of such Lender Partys
      representation in Section 2.14(e) (or in the case of EDC, Section 2.14(h))
      to be accurate as of the date as of which it is made and (c) Taxes imposed
      as a result of a failure of such Lender Party (other than a Lender Party
      that is a Mexican Bank) to comply with its obligations set forth in Section
      2.14(f), subject to the exceptions and limitations provided therein;
      provided that (i) in the case of clauses (b) and (c) above, Excluded
      Taxes shall only be deemed to include withholdings or deductions payable
      by the Borrower in respect of payments hereunder, in excess of a rate equal
      to the rate applicable if there had been no such failure by such Lender
      Party under Section 2.14(e) or Section 2.14(f), as applicable, and (ii)
      in the case of EDC, Excluded Taxes shall include any amounts in excess of
      what would be payable to EDC if it were a Foreign Financial Institution.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Federal Funds Effective
      Rate means, for any day, the weighted average (rounded upwards,
      if necessary, to the next 0.01%) of the rates on overnight Federal funds
      transactions with members of the Federal Reserve System arranged by Federal
      funds brokers, as published on the next succeeding Business Day by the Federal
      Reserve Bank of New York, or, if such rate is not so published on such Business
      Day, the average (rounded upwards, if necessary, to the next 0.01%) of the
      quotations for such day for such transactions received by the Administrative
      Agent from three Federal funds brokers of recognized standing selected by
      it.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Federal Reserve Board
      means the Board of Governors of the Federal Reserve System of the United
      States.
|--------------------------------------------------------------------------------------------------------------------



|FEMSA means
      Fomento Económico Mexicano, S.A. de C.V., a sociedad anónima
      de capital variable organized under the laws of Mexico.
|----------------------------------------------------------------------------------------------------------------------------------------------



|Financial Officer
      means the chief financial officer, principal accounting officer, treasurer
      or controller of the Borrower.
|-----------------------------------------------------------------------------------------------------------------------------------------



|Financing Transactions
      means (a) the Loan Transactions and (b) the Other Debt Refinancings.
|---------------------------------------------------------------------------------------------------



|Fiscal Quarter
      means a fiscal quarter of the Borrower.
|--------------------------------------------------------------



|Fiscal Year
      means a fiscal year of the Borrower.
|--------------------------------------------------------



|Foreign Financial
      Institution means an institution registered as a foreign financial
      institution with the Ministry of Finance in the registry referred to in
      Article 197 of Mexicos Income Tax Law and any successor provision
      thereof, for purposes of fracción I, inciso a), subinciso 1,
      of Article 195 of Mexicos Income Tax Law.
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Foreign Joint Venture
      has the meaning set forth in Section 6.04.
|------------------------------------------------------------------------



| | 7 | 
| | - | 



---





|Governmental Authority
      means the executive, legislative and judicial branches of power of Mexico
      or any political subdivision thereof, the government of Mexico or any political
      subdivision thereof, or the government of any other nation or any political
      subdivision thereof, whether state or local, and any agency, authority,
      instrumentality, regulatory body, court, central bank or other entity exercising
      executive, legislative, judicial, taxing, regulatory or administrative powers
      or functions of or pertaining to government (including, without limitation,
      the United States Federal Reserve Board, Banco de México,
      the CNBV and IPAB).
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Guarantee
      by any Person (the Guaranteeing Person) means any obligation,
      contingent or otherwise, of the Guaranteeing Person guaranteeing any Debt
      of any other Person (the Primary Obligor) in any manner,
      whether directly or indirectly, and including an aval and any obligation
      of the Guaranteeing Person, direct or indirect, (a) to purchase or pay (or
      advance or supply funds for the purchase or payment of) such Debt or to
      purchase (or advance or supply funds for the purchase of) any security for
      the payment thereof, (b) to purchase or lease property, securities or services
      for the purpose of assuring the owner of such Debt of the payment thereof,
      (c) pursuant to a contract of such Guaranteeing Person, to maintain working
      capital, equity capital or any other financial statement condition or liquidity
      of the Primary Obligor so as to enable the Primary Obligor to pay such Debt
      or (d) as an account party in respect of any letter of credit or letter
      of guaranty issued to support such Debt; provided that the term Guarantee
      shall not include endorsements for collection or deposit in the ordinary
      course of business.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Hazardous Materials
      means all explosive or radioactive substances or wastes and all hazardous
      or toxic substances, wastes or other pollutants, including petroleum or
      petroleum distillates, asbestos or asbestos-containing materials, polychlorinated
      biphenyls, radon gas, infectious or medical wastes and all other substances
      or wastes of any nature regulated pursuant to any Environmental Law.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|IMSS means
      theInstituto Mexicano del Seguro Social.
|-----------------------------------------------------------



|Indemnified Taxes
      means all Taxes imposed by Mexico or any other jurisdiction (or any subdivision
      thereof or therein) from which or through which any payment is made or deemed
      made (for tax purposes) by the Borrower under the Loan Documents, except
      Excluded Taxes.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|INFONAVIT
      means theInstituto del Fondo Nacional de la Vivienda para los Trabajadores
      of Mexico.
|-------------------------------------------------------------------------------------------------------------



|Information Memorandum
      means the Confidential Information Memorandum dated January, 2003 relating
      to the Borrower and the Transactions.
|-----------------------------------------------------------------------------------------------------------------------------------------------------



|Initial Peso Exchange
      Rate has the meaning set forth in Section 2.03(b).
|--------------------------------------------------------------------------------



|Interest and Currency
      Hedges means agreements, however documented, entered into with
      the purpose of hedging interest rate or currency risk with respect to Debt
      for borrowed money of the Borrower and its Subsidiaries, and not for speculative
      purposes.
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 8 | 
| | - | 



---





|Interest Expense
      means, for any period and for any Person, an amount equal to the interest
      expense (including deemed interest expense in respect of Capital Lease Obligations)
      of such Person and its Subsidiaries for such period, including fees or other
      similar amounts paid in connection with or in addition to interest and interest
      paid in respect of factoring or equivalent arrangements even if not reflected
      on a Persons balance sheet or financial statements, determined on
      a consolidated basis in accordance with Applicable GAAP.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Interest Period
      means:
|------------------------------



|(a) with respect to any Borrowing
      of Dollar Loans, (I) in the case of the first such Interest Period, the
      period beginning on the Dollar Borrowing Date and ending on the numerically
      corresponding date in the first, third or sixth calendar month thereafter
      and (II) in the case of each succeeding such Interest Period, the period
      beginning on the last day of the preceding Interest Period and ending on
      the numerically corresponding date in the first, third or sixth calendar
      month thereafter (or such other period, not longer than six months, as the
      Borrower and Administrative Agent may agree in order to facilitate orderly
      prepayment of the Loans), in each case as specified by the Borrower in the
      applicable Borrowing Request or Interest Period Election with respect to
      such Borrowing of Dollar Loans; provided that prior to the 90th
      day after the Dollar Borrowing Date, the Borrower shall select Interest
      Periods for Dollar Loans of one or two weeks or one month as agreed with
      the Administrative Agent, and provided further that:
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (i) if any Interest Period
      would end on a day other than a LIBO Business Day, such Interest Period
      shall (subject to clause (iii) below) be extended to the next succeeding
      LIBO Business Day unless (in the case of an Interest Period for Dollar Loans
      of one, three or six months (a monthly Interest Period))
      such next succeeding LIBO Business Day would fall in the next calendar month,
      in which case such monthly Interest Period shall end on the next preceding
      LIBO Business Day;
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (ii)
any  monthly Interest Period that commences on the last LIBO Business Day of a  calendar
month (or on a day for which there is no numerically corresponding day  in the last
calendar month of such monthly Interest Period) shall (subject to  clause (iv) below) end
on the last LIBO Business Day of the last calendar month  of such Interest Period;
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (iii)
if  any Interest Period with respect to a Tranche B Loan includes a date on which a
scheduled payment of principal of Tranche B Loans is required to be made under  Section
2.07(b) but does not end on such date, then (x) the principal amount of  each Loan or
portion thereof required to be repaid on such date shall have an  Interest Period ending
on such date and (y) the remainder (if any) of each such  Loan shall have an Interest
Period determined as set forth above; and
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (iv)
any  Interest Period for Tranche A Loans or Tranche B Loans that would otherwise end
after the Tranche A Maturity Date or Tranche B Maturity Date, as applicable,  shall end
on the Tranche A Maturity Date or Tranche B Maturity Date, as  applicable.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 9 | 
| | - | 



---





|(b) with respect to any Borrowing
      of Peso Loans, (I) in the case of the first such Interest Period, the period
      beginning on the Peso Borrowing Date and ending on the 28th day thereafter
      and (II) in the case of each succeeding such Interest Period, the period
      beginning on the last day of the preceding Interest Period and ending on
      the 28th day thereafter (or such other period as the Borrower and Administrative
      Agent (in consultation with the Mexican Administrative Agent) may agree
      in order to facilitate orderly prepayment of the Loans), as specified by
      the Borrower in the applicable Borrowing Request or Interest Period Election
      with respect to such Borrowing of Peso Loans; provided that:
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (i)
if  any such Interest Period would end on a day other than a Peso Business Day, such
Interest Period shall (subject to clause (ii) below) be extended to the next  succeeding
Peso Business Day;
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (ii)
any  such Interest Period that commences on the last Peso Business Day of a calendar
month (or on a day for which there is no numerically corresponding day in the  last
calendar month of such Interest Period) shall (subject to clause (iv)  below) end on the
last Peso Business Day of the last calendar month of such  Interest Period;
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (iii)
if  any such Interest Period includes a date on which a scheduled payment of  principal
of Peso Loans is required to be made under Section 2.07(c) but does  not end on such
date, then (x) the principal amount of each Loan or portion  thereof required to be
repaid on such date shall have an Interest Period ending  on such date and (y) the
remainder (if any) of each such Loan shall have an  Interest Period determined as set
forth above; and
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (iv)
any  Interest Period for Peso Loans that would otherwise end after the Peso Loan
Maturity Date shall end on the Peso Loan Maturity Date.
| | ---------------------------------------------------------------------------------------------------------------------------------------------



|Interest Period Election
      has the meaning set forth in Section 2.05(b).
|------------------------------------------------------------------------------



|Investment
      by any Person (the Investor) in or with respect to any
      other Person means any investment by the Investor in such other Person,
      including without limitation through the acquisition or holding of any Equity
      Interest in or evidence of indebtedness or other security (including any
      option, warrant or other right to acquire any of the foregoing) of such
      other Person, or the making or holding of any loan or advance to or the
      Guarantee of any obligations of, such other Person.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|IPAB means
      theInstituto para la Protección al Ahorro Bancario of Mexico.
|--------------------------------------------------------------------------------



|Joint Venture Investment
      Event has the meaning set forth in Section 6.04.
|---------------------------------------------------------------------------------



|KOF Companies
      means the Borrower and its Subsidiaries.
|--------------------------------------------------------------



|Lender Parties
      means the Lenders, the Administrative Agent and the Mexican Administrative
      Agent.
|--------------------------------------------------------------------------------------------------------------



|Lenders
      means the Persons listed on Schedule 2.01 and any other Person that shall
      have become a party hereto pursuant to an Assignment, other than any such
      Person that ceases to be a party hereto pursuant to an Assignment.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 10 | 
| | -- | 



---





|Leverage Ratio
      means, on any day, the ratio of (a) Total Debt as of such day to (b) Consolidated
      EBITDA for the period of four consecutive Fiscal Quarters ended on such
      day (or, if such day is not the last day of a Fiscal Quarter, ended on the
      last day of the Fiscal Quarter most recently ended before such day).
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|LIBO Adjusted Business
      Day means any day (i) that is not a Saturday, Sunday, or other
      day on which commercial banks in New York City are authorized or required
      by law to remain closed and (ii) on which banks are open for dealings in
      Dollar deposits in the London interbank market.
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|LIBO Business Day
      means any Business Day on which banks are open for dealings in Dollar deposits
      in the London interbank market.
|----------------------------------------------------------------------------------------------------------------------------------------------



|LIBO Rate
      means, with respect to any Borrowing for any Interest Period, (i) the rate
      appearing on Page 3750 of the Dow Jones Market Service (or on any successor
      or substitute page of such Service, or any successor to or substitute for
      such Service, providing rate quotations comparable to those currently provided
      on such page of such Service, as determined by the Administrative Agent
      from time to time for purposes of providing quotations of interest rates
      applicable to Dollar deposits in the London interbank market) (Page
      3750) at approximately 11:00 a.m., London time, two LIBO Adjusted
      Business Days before the beginning of such Interest Period, as the rate
      for Dollar deposits with a maturity most nearly comparable to such Interest
      Period or (ii) if such rate does not appear on Page 3750 for any relevant
      Interest Period, the LIBO Rate shall be the interest rate per annumdetermined
      by the Administrative Agent to be equal to the arithmetic mean (rounded
      upward, if necessary, to the nearest 0.01%) of the rates per annum
      for Dollar deposits which appear on the Reuters Screen LIBO Page at or about
      11:00 a.m., London time, on the second LIBO Adjusted Business Day prior
      to the first day of such Interest Period for a period equal to (or, if there
      is no equal, then most nearly equal to) such Interest Period. If no such
      rate appears on Page 3750 or on the Reuters Screen LIBO Page for any relevant
      Interest Period, the LIBO Rate for such Interest Period shall be the average
      (rounded upward, if necessary, to the next higher 0.01%) of the rates per
      annum at which deposits in Dollars in a principal amount of US$5,000,000
      are offered by four major banks in the London interbank market (selected
      by the Administrative Agent after consultation with the Borrower) to JPMorgan
      Chase Bank in the London interbank market at approximately 11:00 a.m., London
      time, two LIBO Adjusted Business Days before the first day of such Interest
      Period and for a period of time most nearly comparable to such Interest
      Period.
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Lien means,
      with respect to any asset, (a) any mortgage, deed of trust, lien, pledge,
      hypothecation, encumbrance, charge or security interest in, on or of such
      asset, (b) the interest of a vendor or a lessor under any conditional sale
      agreement, capital lease or title retention agreement (or any financing
      lease having substantially the same economic effect as any of the foregoing)
      relating to such asset and (c) in the case of securities, any purchase option,
      call or similar right of a third party with respect to such securities.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Loans means
      the loans made by the Lenders to the Borrower pursuant to Section 2.01.
|-------------------------------------------------------------------------------------------



|Loan Documents
      means this Agreement and the Notes.
|----------------------------------------------------------



| | 11 | 
| | -- | 



---





|Loan Transactions
      means the execution, delivery and performance by the Borrower of the Loan
      Documents, the borrowing of Loans and the use of the proceeds thereof.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Long-Term Debt Rating
      means the foreign currency rating assigned by S&P or Moodys (as
      applicable) of the Borrowers long-term senior unsecured debt.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Material Adverse Change
      means any event, change, circumstance or effect that has or could reasonably
      be expected to have a material adverse effect on (a) the business, results
      of operations or financial condition of the KOF Companies taken as a whole,
      since September 30, 2002, (b) the ability of the Borrower to perform its
      obligations under the Loan Documents, since September 30, 2002, or (c) the
      rights of Lenders under the Loan Documents, provided, however,
      that any event, change, circumstance or effect, to the extent (i) resulting
      from any change in U.S. or Mexican generally accepted accounting principles
      or official interpretations thereof after December 22, 2002 that apply to
      the KOF Companies, (ii) resulting from a downturn in the economy or business
      conditions in general in any country in which the Borrower or Panamco or
      any of their subsidiaries do business and not specifically relating to the
      KOF Companies or (iii) resulting from the public announcement of the Acquisition,
      shall be excluded in determining whether a Material Adverse Change has occurred;
      and provided further that in the case of Panamcos business,
      financial condition and results of operations in Venezuela, all of the foregoing
      shall be determined in accordance with the provisions of Schedule 3.07A
      of the Merger Agreement (other than (b)(ii) to the extent it relates to
      exchange controls or (b)(iii)).
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Material Adverse Effect
      means a material adverse effect on (a) the business, results of operations,
      or financial condition of the KOF Companies taken as a whole, (b) the ability
      of the Borrower to perform its obligations under the Loan Documents or (c)
      the rights and remedies available to any Lender Party under the Loan Documents.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Material Debt
      means Debt (other than obligations in respect of the Loans) of any one or
      more KOF Companies in an aggregate principal amount exceeding US$30,000,000
      (or its equivalent in any other currency).
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Material Subsidiary
      means (i) prior to the first date on which financial statements are delivered
      pursuant to clause (a) or (b) under Section 5.01, the Persons listed on
      Schedule 1.01B hereto and (ii) at any time from and after such first date,
      any Subsidiary of the Borrower the total assets or total EBITDA of which
      (determined, in the case of any such Subsidiary that has Subsidiaries, on
      a consolidated basis for such Subsidiary and its Subsidiaries) are at least
      10% of the consolidated total assets of the Borrower and its consolidated
      Subsidiaries or 10% of Consolidated EBITDA, respectively, in each case as
      reflected in the financial statements of the Borrower then most recently
      delivered to the Lenders pursuant to clause (a) or (b) under Section 5.01;
      provided that solely for purposes of clauses (h) and (i) of Section
      7.01, Material Subsidiary shall include any group of Subsidiaries
      of the Borrower with respect to which any relevant event or condition of
      the type specified in such clause shall have occurred and be continuing,
      if such Subsidiaries taken together would constitute a Material Subsidiary
      as defined above.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Merger Agreement
      means the merger agreement between the Borrower and Panamco dated December
      22, 2002.
|-------------------------------------------------------------------------------------------------------------------



| | 12 | 
| | -- | 



---





|Mexican Administrative
      Agent means Banco J.P. Morgan, S.A., Institución de Banca
      Múltiple, J.P. Morgan Grupo Financiero, División Fiduciaria,
      in its capacity as administrative agent for the Lenders with respect to
      Peso Loans and its successors in such capacity.
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Mexican Bank
      shall be a bank organized pursuant to the laws of Mexico and authorized
      to conduct banking activities in Mexico by the Ministry of Finance.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Mexican GAAP
      has the meaning set forth in Section 1.03.
|---------------------------------------------------------------



|Mexico means
      the United Mexican States.
|-----------------------------------------------



|Ministry of Finance
      means the Secretaría de Hacienda y Crédito Público
      of Mexico.
|-----------------------------------------------------------------------------------------------



|Moodys
      means Moodys Investors Service, Inc.
|-----------------------------------------------------



|Note has
      the meaning set forth in Section 2.02(a).
|----------------------------------------------------------



|Other Debt Refinancings
      means the refinancing of (i) approximately US$270,500,000 outstanding amount
      of loans under Panamcos existing bank term loans and (ii) all or a
      portion of US$156,500,000 of Debt of certain Subsidiaries of Panamco.
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Other Debt Refinancings
      Loan means, for any Lender, the loan or loans owing to such Lender
      with respect to one or more issues of debt included in the Other Debt Refinancings
      and identified as an Other Debt Refinancings Loan on Schedule
      2.04.
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Other Loan Agreement
      means the Bridge Loan Agreement dated as of the date hereof among the Borrower,
      the lenders party thereto, and the Agents party thereto, including
      JPMorgan Chase Bank, as administrative agent.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Other Loan Documents
      means the Other Loan Agreement and the Notes (as defined in the Other Loan
      Agreement).
|-------------------------------------------------------------------------------------------------------------------------



|Other Taxes
      means any and all present or future recording, stamp, documentary, excise,
      transfer, sales, property or similar taxes, charges or levies not based
      on net income or profit arising from any payment made under any Loan Document
      or from the execution, delivery or enforcement of, or otherwise with respect
      to, any Loan Document.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Panama means
      the Republic of Panama.
|--------------------------------------------



|Panamco
      means Panamerican Beverages, Inc., a corporation organized under the laws
      of Panama.
|----------------------------------------------------------------------------------------------------------



|Participants
      has the meaning specified in Section 9.04(e).
|------------------------------------------------------------------



|Person means
      any natural person, corporation, limited liability company, trust, joint
      venture, association, company, partnership, Governmental Authority or other
      entity.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Peso Borrowing Date
      has the meaning set forth in Section 4.02.
|----------------------------------------------------------------------



| | 13 | 
| | -- | 



---





|Peso Business Day
      means any day that is not a Saturday, Sunday, or other day on which commercial
      banks in Mexico City are authorized or required by law to remain closed.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Peso Lender
      means a Lender with a Peso Loan Commitment or an outstanding Peso Loan.
|-------------------------------------------------------------------------------------------



|Peso Loan
      means a loan, funded and payable in Pesos, made pursuant to Section 2.01(c).
|----------------------------------------------------------------------------------------------



|Peso Loan Commitment
      means, with respect to each Lender, the commitment, if any, of such Lender
      to make a Peso Loan on the Peso Borrowing Date, expressed as an amount in
      Dollars representing the maximum principal amount of such Peso Loan, as
      such commitment may be (a) reduced from time to time pursuant to Section
      2.06 and (b) reduced or increased from time to time pursuant to assignments
      by or to such Lender pursuant to Section 9.04. The initial amount in Dollars
      of each Lenders Peso Loan Commitment is set forth on Schedule 2.01,
      or in the Assignment pursuant to which such Lender shall have assumed its
      initial Peso Loan Commitment, as applicable.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Peso Loan Maturity
      Date means the fifth anniversary of the Dollar Borrowing Date;
      provided that if such day is not both a LIBO Business Day and a Peso
      Business Day, the Peso Loan Maturity Date shall be extended to the next
      succeeding LIBO Business Day that is also a Peso Business Day unless such
      next succeeding day would fall in the next calendar month, in which case
      the Peso Loan Maturity Date shall be the next preceding LIBO Business Day
      that is also a Peso Business Day.
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Peso Spot Rate
      means, on any day, the rate at which Pesos may be exchanged into Dollars,
      at (i) the spot (same day) rate announced by Banco de México
      and (A) quoted at 12:15 p.m. (Mexico City time) on Reuters Monitor Screen
      (Page MEX01, or any successor page for quoting such rate) on such day (or,
      if such day is not a Peso Business Day, on the immediately preceding Peso
      Business Day) or (B) if such rate is not so quoted on Reuters Monitor Screen
      for the relevant date of determination, then such spot rate as may be published
      in the Diario Oficial de la Federación to be in effect on
      such day (or, if such day is not a Peso Business Day, on the immediately
      preceding Peso Business Day) or (ii) if such rate is not so published or
      quoted as described in clause (i) for the relevant date of determination,
      the Peso Spot Rate shall be the rate of exchange at which in
      accordance with normal banking procedures the Administrative Agent could
      purchase Dollars for Pesos on a customary basis in the Administrative Agents
      New York City office at 11:00 a.m. (New York City time) on the date of such
      determination (or, if such day is not a Peso Business Day, on the immediately
      preceding Peso Business Day), and such determination shall be conclusive
      absent manifest error.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Pesos or
      Ps. means the lawful money of Mexico.
|--------------------------------------------------------



|Process Agent
      has the meaning specified in Section 9.09(d).
|-------------------------------------------------------------------



|Register
      has the meaning specified in Section 9.04(c).
|--------------------------------------------------------------



| | 14 | 
| | -- | 



---





|Related Parties
      means, with respect to any specified Person, such Persons Affiliates
      and the respective directors, officers, employees and agents of such Person
      and its Affiliates.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Required Lenders
      means, at any time, Lenders having outstanding Loans and/or unused Commitments
      representing more than 50% of the total Dollar Amount (determined, in the
      case of any Peso Loan, at the Peso Spot Rate in effect on the Peso Borrowing
      Date) of all outstanding Loans and/or unused Commitments at such time.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Restricted Payment
      means any dividend or other distribution (whether in cash, securities or
      other property) with respect to any Equity Interest in any KOF Company,
      or any payment (whether in cash, securities or other property), including
      any sinking fund or similar deposit, on account of the purchase, redemption,
      retirement, acquisition, cancellation or termination of any Equity Interest
      in any KOF Company (including, for this purpose, any payment under a Synthetic
      Purchase Agreement with respect to an Equity Interest).
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Sale and Leaseback
      Transaction means any arrangement under which a Person shall sell
      or transfer any property and thereafter rent or lease such property or other
      property that such Person intends to use for substantially the same purpose
      or purposes as the property sold or transferred.
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|SAR means
      Sistema de Ahorro para el Retiro.
|---------------------------------------------------



|SEC means
      the Securities and Exchange Commission.
|---------------------------------------------------------



|S&P
      means Standard & Poors Ratings Services, a division of The McGraw-Hill
      Companies, Inc.
|---------------------------------------------------------------------------------------------------------



|Specified Priority
      Debt Amount means at any time the sum, without duplication, of
      (A) the aggregate outstanding principal amount of all Debt of the Borrower
      and other obligations secured by Liens in reliance on clause (i) or (x)
      of Section 6.01 (or, in the case of any Interest and Currency Hedge secured
      in reliance on such clause (x), the amount of assets subject to a Lien in
      support of such obligation) plus (B) the aggregate outstanding principal
      amount of all Debt of Subsidiaries of the Borrower at such time, other than
      Debt owed to the Borrower or another Subsidiary of the Borrower, plus
      (C) during the Bridge Period, the aggregate amount of Attributable Debt
      in respect of all Sale and Leaseback Transactions at such time (other than
      Transportation Sale and Leaseback Transactions permitted pursuant to clause
      (i) of Section 6.03 of the Other Loan Agreement), all determined on a consolidated
      basis and without duplication in accordance with Applicable GAAP at such
      time.
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Statutory Reserve
      Adjustment means a fraction (expressed as a decimal), the numerator
      of which is the number one and the denominator of which is the number one
      minus the aggregate of the maximum reserve percentages (including any marginal,
      special, emergency or supplemental reserves) expressed as a decimal established
      by the Federal Reserve Board to which the Administrative Agent is subject
      with respect to eurocurrency funding (currently referred to as Eurocurrency
      Liabilities in Regulation D of the Federal Reserve Board). Such reserve
      percentages will include those imposed pursuant to such Regulation D. Loans
      will be deemed to constitute eurocurrency funding and to be subject to such
      reserve requirements without benefit of or credit for proration,
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 15 | 
| | -- | 



---





|exemptions or offsets that may be available from
time to time to any Lender  under such Regulation D or any comparable regulation.
|----------------------------------------------------------------------------------------------------------------------------------



|Subsidiary
      means, with respect to any Person (the parent) at any
      date, (a) any corporation, limited liability company, partnership or other
      entity the accounts of which would be consolidated with those of the parent
      in the parents consolidated financial statements if such financial
      statements were prepared in accordance with Mexican GAAP as of such date
      and (b) any other corporation, limited liability company, partnership or
      other entity (i) of which securities or other ownership interests representing
      more than 50% of the equity or more than 50% of the ordinary voting power
      or, in the case of a partnership, more than 50% of the general partnership
      interests are, as of such date, owned, controlled or held, or (ii) that
      is otherwise Controlled as of such date, by the parent and/or one or more
      of its Subsidiaries. For purposes of the representations and warranties
      made herein on the Borrowing Dates (except with respect representations
      and warranties made pursuant to Section 3.04(a)), the term Subsidiary,
      when used with respect to the Borrower, includes Panamco and its Subsidiaries.
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Syndication Agent
      means Morgan Stanley Senior Funding, Inc., in its capacity as syndication
      agent for the Lenders.
|--------------------------------------------------------------------------------------------------------------------------------



|Synthetic Purchase
      Agreement means any total return swap or sale and
      repurchase agreement with respect to any Equity Interest or debt obligation,
      or any other swap, derivative or other agreement or combination of agreements
      pursuant to which such Person is or may become obligated to make (i) any
      payment in connection with the purchase by any third party, from a Person
      other than a KOF Company, of any Equity Interest or debt obligation or (ii)
      any payment (other than on account of a permitted purchase by it of any
      Equity Interest or debt obligation) the amount of which is determined by
      reference to the price or value at any time of any Equity Interest or debt
      obligation.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Taxes means
      any and all present or future taxes, levies, imposts, duties, deductions,
      charges or withholdings imposed by any Governmental Authority.
|------------------------------------------------------------------------------------------------------------------------------------------------------------------



|TIIE Rate
      means, for each Interest Period with respect to Peso Loans, the Equilibrium
      Interbank Interest Rate (Tasa de Interes Interbancaria de Equilibrio)
      for a period of 28 days or such other period so published as is most nearly
      equal to the relevant Interest Period, as determined by the Mexican Administrative
      Agent, all as published by Banco de México in the Diario
      Oficial de la Federación on the first Peso Business Day, or of
      most recent publication, prior to the commencement of the relevant Interest
      Period, or if such day is not a Peso Business Day, on the next preceding
      Peso Business Day on which there was such a quote; provided that
      in the event the TIIE Rate shall cease to be published, TIIE Rate
      shall mean any rate specified by the Banco de México as the
      substitute rate therefor.
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Total Debt
      means, as of any date, the aggregate amount for the KOF Companies at such
      date of Debt of the type referred to in clauses (a), (b), (e) and (f) of
      the definition thereof, and all obligations of such Persons with respect
      to any Synthetic Purchase Agreements, all determined without duplication
      on a consolidated basis at such date in accordance with Mexican GAAP.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 16 | 
| | -- | 



---





|Tranche,
      when used with respect to Loans or Commitments, refers to whether such Loans
      or Commitments are Tranche A Loans, Tranche B Loans or Peso Loans, or Tranche
      A Commitments, Tranche B Commitments or Peso Loan Commitments, as applicable.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Tranche A Commitment
      means, with respect to each Lender, the commitment, if any, of such Lender
      to make a Tranche A Loan on the Dollar Borrowing Date, expressed as an amount
      representing the maximum principal amount of such Tranche A Loan, as such
      commitment may be (a) reduced from time to time pursuant to Section 2.06
      and (b) reduced or increased from time to time pursuant to assignments by
      or to such Lender pursuant to Section 9.04. The initial amount of each Lenders
      Tranche A Commitment is set forth on Schedule 2.01, or in the Assignment
      pursuant to which such Lender shall have assumed its initial Tranche A Commitment,
      as applicable.
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Tranche A Loan
      means a Loan, denominated and payable in Dollars, made pursuant to Section
      2.01(a).
|----------------------------------------------------------------------------------------------------------------



|Tranche A Maturity
      Date means the third anniversary of the Dollar Borrowing Date;
      provided that if such day is not a LIBO Business Day, the Tranche
      A Maturity Date shall be extended to the next succeeding LIBO Business Day
      unless such next succeeding LIBO Business Day would fall in the next calendar
      month, in which case the Tranche A Maturity Date shall be the next preceding
      LIBO Business Day.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Tranche B Commitment
      means, with respect to each Lender, the commitment, if any, of such Lender
      to make a Tranche B Loan on the Dollar Borrowing Date, expressed as an amount
      representing the maximum principal amount of such Tranche B Loan, as such
      commitment may be (a) reduced from time to time pursuant to Section 2.06
      and (b) reduced or increased from time to time pursuant to assignments by
      or to such Lender pursuant to Section 9.04. The initial amount of each Lenders
      Tranche B Commitment is set forth on Schedule 2.01, or in the Assignment
      pursuant to which such Lender shall have assumed its initial Tranche B Commitment,
      as applicable.
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Tranche B Loan
      means a Loan, denominated and payable in Dollars, made pursuant to Section
      2.01(b).
|----------------------------------------------------------------------------------------------------------------



|Tranche B Maturity
      Date means the fifth anniversary of the Dollar Borrowing Date;
      provided that if such day is not both a LIBO Business Day and a Peso
      Business Day, the Tranche B Maturity Date shall be extended to the next
      succeeding LIBO Business Day that is also a Peso Business Day unless such
      next succeeding day would fall in the next calendar month, in which case
      the Tranche B Maturity Date shall be the next preceding LIBO Business Day
      that is also a Peso Business Day.
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Transactions
      means the Acquisition and the Financing Transactions.
|--------------------------------------------------------------------------



|Transportation Sale
      and Leaseback Transactions means Sale and Leaseback Transactions
      in respect of trucks, forklifts and other transportation equipment.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------



|United States
      means the United States of America.
|---------------------------------------------------------



|Section 1.02. Terms
      Generally. The definitions of terms herein (including those incorporated
      by reference to another document) apply equally to the singular and plural
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 17 | 
| | -- | 



---





|forms of the terms defined. Whenever the context may require,
      any pronoun includes the corresponding masculine, feminine and neuter forms.
      The words include, includes and including
      shall be deemed to be followed by the phrase without limitation.
      The word will shall be construed to have the same meaning
      and effect as the word shall. Unless the context requires
      otherwise, (a) any definition of or reference to any agreement, instrument
      or other document herein shall be construed as referring to such agreement,
      instrument or other document as from time to time amended, supplemented
      or otherwise modified (subject to any restrictions on such amendments, supplements
      or modifications set forth herein), (b) any reference herein to any Person
      shall be construed to include such Persons successors and assigns,
      (c) the words herein, hereof and hereunder,
      and words of similar import, shall be construed to refer to this Agreement
      in its entirety and not to any particular provision hereof, (d) all references
      herein to Articles, Sections, Exhibits and Schedules shall be construed
      to refer to Articles and Sections of, and Exhibits and Schedules to, this
      Agreement and (e) the word property shall be construed
      to refer to any and all tangible and intangible assets and properties, including
      cash, securities, accounts and contract rights.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Section 1.03. Accounting
      Terms. Except as otherwise expressly provided herein, all terms of an
      accounting or financial nature shall be construed in accordance with generally
      accepted accounting principles as in effect from time to time in Mexico,
      applied on a basis consistent (except for changes concurred in by the Borrowers
      independent public accountants) with the most recent audited consolidated
      financial statements of the Borrower and its consolidated Subsidiaries delivered
      to the Lenders (Mexican GAAP); provided that,
      if the Borrower notifies the Administrative Agent that the Borrower requests
      an amendment of any provision hereof to eliminate the effect of any change
      occurring after the date hereof in Mexican GAAP or in the application thereof
      (or if the Administrative Agent notifies the Borrower that the Required
      Lenders request an amendment of any provision hereof for such purpose),
      regardless of whether such notice is given before or after such change in
      Mexican GAAP or in the application thereof, then such provision shall be
      applied on the basis of Mexican GAAP as in effect and applied immediately
      before such change shall have become effective until such notice shall have
      been withdrawn or such provision amended in accordance herewith. Any terms
      of an accounting or financial nature with respect to Panamco and its Subsidiaries
      for periods prior to the Acquisition Date shall be construed in accordance
      with generally accepted accounting principles pursuant to which the audited
      consolidated financial statements for Panamco and its Subsidiaries referred
      to in Section 3.04(a) have been prepared (such generally accepted accounting
      principles for such Persons and periods, together with Mexican GAAP applied
      as provided above with respect to the Persons and periods provided therein,
      Applicable GAAP).
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|ARTICLE 2THE
        CREDITS
|----------------------------





|Section 2.01. Commitments.
      (a) Subject to the terms and conditions set forth herein, each Lender with
      a Tranche A Commitment agrees to make a Tranche A Loan in Dollars to the
      Borrower on the Dollar Borrowing Date in a principal amount equal to its
      pro rata portion (in accordance with its respective Tranche A Commitment)
      of the Dollar amount set forth in the Borrowing Request as the aggregate
      amount of the Borrowing of
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 18 | 
| | -- | 



---





|Tranche A Loans; provided that the principal amount
      of such Tranche A Loan does not exceed the amount of its Tranche A Commitment.
|----------------------------------------------------------------------------------------------------------------------------------------



|(b) Subject to the terms and
      conditions set forth herein, each Lender with a Tranche B Commitment agrees
      to make a Tranche B Loan in Dollars to the Borrower on the Dollar Borrowing
      Date in a principal amount equal to its pro rata portion (in accordance
      with its respective Tranche B Commitment) of the amount set forth in the
      Borrowing Request as the aggregate amount of the Borrowing of Tranche B
      Loans; provided that the principal amount of such Tranche B Loan
      does not exceed the amount of its Tranche B Commitment.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(c) Subject to the terms and
      conditions set forth herein, each Lender with a Peso Loan Commitment agrees
      to make a Peso Loan in Pesos to the Borrower on the Peso Borrowing Date
      in a principal amount equal to its pro rata portion (in accordance with
      its respective Peso Loan Commitment) of the Dollar amount set forth in the
      Borrowing Request; provided that the principal amount of such Peso
      Loan does not exceed the amount of its Peso Loan Commitment multiplied by
      the Initial Peso Exchange Rate.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(d) Amounts repaid in respect
      of Loans may not be reborrowed. All Dollar Loans shall be funded in Dollars,
      and all Peso Loans shall be funded in Pesos, as more fully set forth in
      Section 2.04. The Commitments of the Lenders are several, i.e., the
      failure of any Lender to make any Loan required to be made by it shall not
      relieve any other Lender of its obligations hereunder, and no Lender shall
      be responsible for any other Lenders failure to make Loans as and
      when required hereunder.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Section 2.02.
Loans, Notes and other Evidence of Loans.
|-------------------------------------------------------



|(a) Each Lenders Tranche
      A Loan (if any) shall be represented by a promissory note payable in Dollars
      to the order of such Lender in substantially the form of Exhibit B-1 hereto
      and in a principal amount equal to such Lenders Tranche A Loan. Each
      Lenders Tranche B Loan (if any) shall be represented by a promissory
      note payable in Dollars to the order of such Lender in substantially the
      form of Exhibit B-2 hereto and in a principal amount equal to such Lenders
      Tranche B Loan. Each Lenders Peso Loan (if any) shall be represented
      by a promissory note payable in Pesos to the order of such Lender in substantially
      the form of Exhibit B-3 hereto and in a principal amount equal to such Lenders
      Peso Loan. Each such promissory note referred to in this clause (a) (each,
      a Note) shall be executed by the Borrower, shall qualify
      as a pagaré under Mexican law and shall include the legend
      no negociable.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(b) Upon
any assignment made pursuant to Section 9.04 of Commitments or Loans of any
Tranche, the Borrower shall prepare, execute and deliver, against simultaneous
delivery of the existing Note or Notes, (i) a new Note with respect to the
Commitment or Loan of each relevant Tranche so assigned, payable to the order of
the assignee Lender and (ii) if required, a new Note with respect to the
Commitment or Loan of each relevant Tranche so assigned, payable to the order of
the assignor Lender, each dated the date of such Note being exchanged, in a
principal amount equal to the principal amount of the Commitment or Loan so
assigned (or, in the case of the assignor Lender, retained after such
assignment) and otherwise duly completed.
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 19 | 
| | -- | 



---





|(c) Each
Loan shall be made as part of a Borrowing consisting of Loans of the same
Tranche made by the Lenders ratably in accordance with their respective
Commitments of the applicable Tranche. Each Lender at its option may make any
Loan by causing any domestic or foreign branch of such Lender to make such Loan.
Any exercise of such option shall not affect the Borrowers obligation to
repay such Loan as provided herein. Each Lender shall maintain in accordance
with its usual practice an account or accounts evidencing the indebtedness of
the Borrower to such Lender resulting from each Loan made by such Lender,
including the amounts of principal and interest payable and paid to such Lender
from time to time.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(d) The entries made in good
      faith in the accounts maintained pursuant to subsection (c) of this Section
      shall be prima facie evidence of the existence and amounts of the
      obligations recorded therein; provided that any failure by any Lender
      to maintain such accounts or any error therein shall not affect the Borrowers
      obligation to repay the Loans in accordance with the terms of this Agreement.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Section 2.03.
Borrowing Request; Notice of Initial Peso Exchange Rate.
|----------------------------------------------------------------------



|(a) To request the Borrowings
      on the Borrowing Dates, the Borrower shall notify the Administrative Agent
      and the Mexican Administrative Agent of such request not later than (I)
      in the case of the Dollar Loans, 11:00 a.m., New York City time, on the
      latest day that is at least three LIBO Business Days before the proposed
      Dollar Borrowing Date and (II) in the case of the Peso Loans, 3:00 p.m.,
      Mexico City time, two Peso Business Days before the proposed Peso Borrowing
      Date. Any such notice (a Borrowing Request) shall be
      irrevocable, shall specify the following information in compliance with
      Section 2.02 and shall be substantially in the form of Exhibit E-1:
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (i)
the aggregate amount of the Borrowing of each Tranche of Loans, which in  each case shall
be expressed in Dollars;
| | ----------------------------------------------------------------------------------------------------------------------



| | (ii)
the  Peso Borrowing Date, which shall be a Peso Business Day, and the Dollar  Borrowing
Date, which shall be not later than the second LIBO Business Day after  the Peso
Borrowing Date;
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (iii)
the  initial Interest Period to be applicable to Loans of each Tranche or, if more  than
one Interest Period is elected with respect to different portions of  Tranche A, Tranche
B or Peso Loans, the initial Interest Periods for each  portion of such Borrowing, each
of which shall be a period or periods  contemplated by the definition of Interest
Period; and
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (iv)
the  location and number of the Borrowers accounts to which funds are to be
disbursed, which shall comply with the requirements of Section 2.04.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------



|If no  Interest
Period with respect to a requested Borrowing is specified, the Borrower  will be deemed
to have selected an Interest Period of one month, in the case of  a Borrowing of Dollar
Loans, or 28 days, in the case of a Borrowing of Peso  Loans (subject to the definition
of Interest Period). Promptly after it receives  a Borrowing Request in accordance with
this Section, the Administrative Agent  shall advise each Lender with a Dollar Loan
Commitment and the Mexican  Administrative Agent shall advise each
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 20 | 
| | -- | 



---





|Lender with a Peso Loan Commitment of the
details of such Borrowing Request and the amount of such Lenders Loan or  Loans to
be made pursuant thereto.
|-------------------------------------------------------------------------------------------------------------------------------------------------------



|(b) Simultaneously with the
      delivery of the Borrowing Request, the Borrower shall deliver to each Peso
      Lender a certificate executed by a Financial Officer setting forth the amount
      in Pesos of the Peso Loan to be funded on the Peso Borrowing Date by each
      such Peso Lender in respect of its Peso Loan Commitment and the basis for
      such calculation in reasonable detail, including the exchange rate (the
      Initial Peso Exchange Rate) of Pesos per Dollar that
      reflects the Borrowers reasonable, good faith calculation of the observable
      exchange rate.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Section
2.04. Funding of Loans. (a) Each Lender shall wire the principal amount of its
Dollar Loan or Loans (if any), in Dollars in immediately available funds, by
12:00 noon, New York City time, on the Dollar Borrowing Date, to the account of
the Administrative Agent designated by it for such purpose by notice to the
Lenders. Each Lender shall wire the principal amount of its Peso Loan (if any),
in Pesos in immediately available funds, by 12:00 noon, Mexico City time, on the
Peso Borrowing Date, to the account of the Mexican Administrative Agent
designated by it for such purpose by notice to the Lenders.
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(b) Notwithstanding the foregoing,
      any Lender listed on Schedule 2.04 as a Deferred Funding Lender (each, a
      Deferred Funding Lender) may defer its obligation to
      fund all or a portion of its Dollar Loan Commitment or Peso Commitment in
      such amount and for such Commitment or Commitments as may be described on
      such Schedule (for each Deferred Funding Lender, its Deferred Funding
      Amount) from the relevant Borrowing Date to the date of payment
      of the relevant Affected Facility (as defined below) as further provided
      in this clause (b). To defer such funding obligation, each Deferred Funding
      Lender shall notify the Administrative Agent and Mexican Administrative
      Agent by the relevant time provided for funding in clause (a) above that
      it will apply the Deferred Funding Amount of funds to which it will be entitled
      upon repayment of its Other Debt Refinancings Loan described on such Schedule
      2.04 (but only in respect of the principal portion thereof) to satisfy its
      funding obligation with respect to a portion of its Loan or Loans hereunder
      in the Deferred Funding Amount. Such notice shall be deemed to be a representation
      and warranty by such Deferred Funding Lender that it has full right, title
      and interest in and to the relevant Other Debt Refinancings Loan in aggregate
      in the Deferred Funding Amount on and as of the relevant Borrowing Date
      and a covenant by the Deferred Funding Lender that it will not transfer
      or otherwise encumber any right, title and interest in and to the relevant
      Other Debt Refinancing Loans prior to the refinancing thereof (which covenant
      shall terminate if the Loans are repaid pursuant to clause (c) of this Section
      2.04 and such refinancing does not occur as contemplated hereby). Upon the
      refinancing in full of the issue in which such Other Debt Refinancings Loan
      is included (the Affected Facility), such Deferred Funding
      Lender shall notify (i) the administrative or paying agent with respect
      to the Affected Facility that an amount of the principal of such Other Debt
      Refinancings Loan to which the Deferred Funding Lender is entitled, in an
      amount equal to the Deferred Funding Amount, shall be applied to discharge
      in an equal amount the funding obligation of such Deferred Funding Lender
      with respect to its relevant Loan or Loans, and paid as directed by the
      Borrower and (ii) the Administrative Agent and/or Mexican Administrative
      Agent (as relevant) that such refinancing has occurred on such date and
      its affected Loan or Loans shall be deemed funded simultaneously therewith
      for purposes of the calculation of interest accrued thereon. Such Deferred
      Funding Lender hereby
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 21 | 
| | -- | 



---





|irrevocably  agrees that its right to receive
payment with respect to the principal of such  Other Refinancing Debt Loan shall, to the
extent of the Deferred Funding Amount  (but not with respect to any interest, fees or
similar amounts calculated on the  basis of the outstanding amount thereof, except to the
extent otherwise  expressly provided in such notice), be applied to satisfy such Lenders
funding obligation with respect to its Loan or Loans hereunder in the Deferred  Funding
Amount. Each Deferred Funding Lender further agrees that, solely for the  period from and
including the relevant Borrowing Date and to but excluding the  date of repayment of the
Affected Facility, it shall not be entitled to receive  interest hereunder with respect
to the Deferred Funding Amount of its affected  Loan or Loans, and that interest on such
portion thereof shall commence accruing  from and including the date of such repayment.
The Administrative Agent and/or  Mexican Administrative Agent, as relevant, shall make
appropriate adjustments to  payments of interest for the first Interest Period with
respect to each affected  Loan of a Deferred Funding Lender to reflect the foregoing. In
addition, the  Borrower shall prepare, execute and deliver to each Deferred Funding
Lender a  Note or Notes representing the Deferred Funding Amount of such Lenders
Loans (or, if requested by such Lender, and against simultaneous delivery of its
existing Note or Notes, a new Note or Notes reflecting the aggregate principal  amount of
such Loan or Loans) and otherwise duly completed.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(c) The Administrative Agent
      shall transfer the funds received by it pursuant to clause (a) above to
      a separate and segregated account of the Borrower maintained at JPMorgan
      Chase Bank in New York City and identified by the Borrower and the Administrative
      Agent prior to the Peso Borrowing Date (the New York Funding Account),
      and such funds shall be maintained therein until the Borrower notifies the
      Administrative Agent that the Acquisition is being consummated and that
      such funds shall be applied forthwith upon release in accordance with Section
      5.09 hereof (the Acquisition Date). During the period
      between the Dollar Borrowing Date and the Acquisition Date, the Borrower
      shall invest such funds in overnight or other short-term liquid investments
      consistent with liquidation on or prior to the Acquisition Date, and any
      interest or other amounts earned thereon shall be added to and considered
      part of the funds held in the New York Funding Account. The Mexican Administrative
      Agent shall (I) hold the funds received by it pursuant to clause (a) above
      in a separate and segregated account, identified by the Mexican Administrative
      Agent to the Borrower on the Peso Borrowing Date, at Banco J.P. Morgan,
      S.A., Institución de Banca Múltiple, J.P. Morgan Grupo
      Financiero in Mexico City and (II) on any Peso Business Day prior to the
      Acquisition Date, upon written notice and instruction from the Borrower,
      release such funds in Pesos to the Borrower to permit the Borrower to acquire
      Dollars in foreign exchange transactions arranged by the Borrower, provided
      that the Dollars so acquired are forthwith deposited into the New York Funding
      Account for withdrawal on the Acquisition Date. During the period between
      the Peso Borrowing Date and the date on which it releases such funds, the
      Borrower shall invest the funds held in such account in such overnight or
      other short-term liquid investments, and any interest or other amounts earned
      thereon shall be added to and considered part of the funds held with the
      Mexican Administrative Agent. Notwithstanding the foregoing, if the Acquisition
      Date shall not have occurred by the close of business in New York City on
      the 10th Business Day after the Peso Borrowing Date,
      the Loans shall be prepaid in full on the third LIBO Business Day thereafter,
      together with interest thereon to the date of payment.
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(d)  Unless the
Administrative Agent or the Mexican Administrative Agent, as  applicable, receives notice
from a Lender before the relevant Borrowing Date  that such Lender will not make its
share of the Dollar Loans or Peso Loans  available as provided in
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 22 | 
| | -- | 



---





|this Section 2.04, then the Administrative Agent or Mexican
      Administrative Agent (as applicable) may assume that such Lender has made
      such share available on such date in accordance with this Section 2.04 and
      may, in reliance on such assumption, make a corresponding share of the Dollar
      Loans or Peso Loans (as applicable) available to the Borrower. In such event,
      if a Lender has not in fact made its share of such Borrowing available to
      the Administrative Agent or Mexican Administrative Agent, as applicable,
      such Lender and the Borrower severally agree to pay to the Administrative
      Agent or Mexican Administrative Agent, as applicable, forthwith on demand
      such corresponding amount with interest thereon, for each day from and including
      the day such amount is made available to the Borrower to but excluding the
      date of payment to such Agent, at (i) in the case of such Lender, the greater
      of the Federal Funds Effective Rate and a rate determined by such Agent
      in accordance with banking industry rules on interbank compensation or (ii)
      in the case of the Borrower, the greater of the Federal Funds Effective
      Rate and the rate of interest otherwise applicable to such Loan (including,
      after the date of any demand, pursuant to Section 2.10(c)); provided
      that any such payment by the Borrower shall be subject to Section 2.13.
      If such Lender pays such amount to the Administrative Agent or Mexican Administrative
      Agent, as applicable, such amount shall constitute such Lenders Loan
      included in such Borrowing.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Section 2.05. Interest Period
      Elections. (a) Each Borrowing shall have an initial Interest Period
      as specified in the Borrowing Request. Thereafter, the Borrower may continue
      such Borrowing for subsequent Interest Periods, all as provided in this
      Section. The Borrower may elect different options with respect to different
      portions of the affected Borrowing, in which case each such portion shall
      be allocated ratably among the Lenders holding the Loans comprising such
      Borrowing, and the Loans comprising each such portion shall be considered
      a separate Borrowing.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(b) To make an election pursuant
      to this Section, the Borrower shall notify (i) in the case of Dollar Loans,
      the Administrative Agent thereof by telephone or through a notice in writing
      not later than 11:00 a.m., New York City time, three LIBO Adjusted Business
      Days before the effective date of the proposed election and (ii) in the
      case of Peso Loans, the Mexican Administrative Agent thereof by telephone
      or through a notice in writing not later than 11:00 a.m., Mexico City time,
      three Peso Business Days before the effective date of the proposed election
      (an Interest Period Election). Each such Interest Period
      Election shall be irrevocable and shall be confirmed promptly by hand delivery
      or telecopy to the Administrative Agent or the Mexican Administrative Agent,
      as applicable, of a written Interest Period Election in the form attached
      hereto as Exhibit E-2.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(c) Each
telephonic and written Interest Period Election shall specify the following
information in compliance with Section 2.02 and subsection (e) of this Section:
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (i)
the  Borrowing to which such Interest Period Election applies and, if different  options
are being elected with respect to different portions thereof, the  portions thereof to be
allocated to each resulting Borrowing (in which case the  information to be specified
pursuant to clause (iii) below shall be specified  for each resulting Borrowing);
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (ii)
the  effective date of the election made pursuant to such Interest Period Election,
which shall be, in the case of a Dollar Loan, a LIBO Business Day or, in the  case of a
Peso Loan, a Peso Business Day; and
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 23 | 
| | -- | 



---





| | (iii)
the Interest Period to be applicable thereto after giving effect to such  election, which
shall be a period contemplated by the definition of Interest  Period.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------



|If an
Interest Period Election does not specify an Interest Period, the Borrower will
be deemed to have selected an Interest Period of the same duration as for the
prior Interest Period with respect to such Borrowing.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(d)
Promptly after it receives an Interest Period Election, the Administrative Agent
(or, in the case of any Interest Period Election for Peso Loans, the Mexican
Administrative Agent) shall advise each Lender with a Loan subject to such
Interest Period Election as to the details thereof and such Lenders
portion of each resulting Borrowing.
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(e) If
the Borrower fails to deliver a timely Interest Period Election before the end
of an Interest Period applicable to a Borrowing, the Borrower will be deemed to
have selected an Interest Period of the same duration as for the prior Interest
Period with respect to such Borrowing.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Section
2.06. Termination or Reduction of Commitments. (a) Unless previously terminated,
the Commitments of each Tranche will terminate on the Borrowing Date with
respect to such Tranche immediately after the relevant Borrowing hereunder.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(b) The Borrower may at any
      time between the Effective Date and the Peso Borrowing Date terminate or
      reduce the Commitments of any Tranche; provided that the amount of
      each reduction of the Commitments of any Tranche shall be at least US$10,000,000
      or an integral multiple of US$5,000,000 in excess thereof. The Borrower
      shall notify the Administrative Agent (and in the case of any reduction
      of the Peso Loan Commitments, the Mexican Administrative Agent) of any election
      to terminate or reduce the Commitments under this clause (b) at least three
      LIBO Adjusted Business Days before the effective date of such termination
      or reduction, specifying such election and the effective date thereof. Promptly
      after it receives any such notice, the Administrative Agent or Mexican Administrative
      Agent (as applicable) shall advise the affected Lenders of the contents
      thereof. Each notice delivered by the Borrower pursuant to this Section
      will be irrevocable. Any termination or reduction of the Commitments of
      any Tranche will be permanent and will be made ratably among the Lenders
      in accordance with their respective Commitments of such Tranche prior to
      such termination or reduction.
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Section
2.07. Payment at Maturity; Scheduled Amortization. (a) Maturity. Without
limitation of clauses (b) and (c) of this Section 2.07, the Borrower
unconditionally promises to pay (i) on the Tranche A Maturity Date, to the
Administrative Agent for the account of each Lender with a Tranche A Loan, the
then unpaid principal amount of such Lenders Tranche A Loan, (ii) on the
Tranche B Maturity Date, to the Administrative Agent for the account of each
Lender with a Tranche B Loan, the then unpaid principal amount of such
Lenders Tranche B Loan and (iii) on the Peso Loan Maturity Date, to the
Mexican Administrative Agent for the account of each Lender with a Peso Loan,
the then unpaid principal amount of such Lenders Peso Loan, payable in
Pesos.
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(b)Scheduled Amortization
      of Tranche B Loans. Subject to adjustment pursuant to Section 2.07(d),
      the Borrower shall repay the Tranche B Loans on the date
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 24 | 
| | -- | 



---





|numerically corresponding to the Dollar Borrowing Date in
      each of the month after the Dollar Borrowing Date set forth below (provided
      that if such day is not a LIBO Business Day, then on the next succeeding
      LIBO Business Day unless such next succeeding LIBO Business Day would fall
      in the next calendar month, in which case on the next preceding LIBO Business
      Day), in an aggregate principal amount equal to the percentage of the initial
      aggregate principal amount of the Tranche B Loans set forth opposite such
      month:
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|TRANCHE B LOANS
|---------------

| | Month after the Dollar
      
      Borrowing Date |  | Percentage of Initial
      
      Amount | 
| | -------------------------------------------------- |  | ----------------------------------------- | 
| | 30th month                                         |  | 16.67%                                    | 
| | 36th
      month                                   |  | 16.67%                                    | 
| | 42nd
      month                                   |  | 16.67%                                    | 
| | 48th
      month                                   |  | 16.67%                                    | 
| | 54th
      month                                   |  | 16.67%                                    | 
| | Tranche B Maturity Date                            |  | 16.65%                                    | 

|(c) Scheduled Amortization
      of Peso Loans. Subject to adjustment pursuant to Section 2.07(d), the
      Borrower shall repay the Peso Loans, in Pesos, on the date numerically corresponding
      to the Dollar Borrowing Date in each of the months after the Dollar Borrowing
      Date set forth below (provided that if such day is not a Peso Business
      Day, then on the next succeeding Peso Business Day unless such next succeeding
      Peso Business Day would fall in the next calendar month, in which case on
      the next preceding Peso Business Day), in an aggregate principal amount
      equal to the percentage of the initial aggregate principal amount of the
      Peso Loans set forth opposite such month:
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|PESO LOANS
|----------

| | Month after the Dollar
      
      Borrowing Date |  | Percentage of Initial
      
      Amount | 
| | -------------------------------------------------- |  | ----------------------------------------- | 
| | 30th
      month                                   |  | 16.67%                                    | 
| | 36th
      month                                   |  | 16.67%                                    | 
| | 42nd
      month                                   |  | 16.67%                                    | 
| | 48th
      month                                   |  | 16.67%                                    | 
| | 54th
      month                                   |  | 16.67%                                    | 
| | Peso Loan Maturity Date                            |  | 16.65%                                    | 

|(d) Application of Prepayments.
      Any prepayment of Tranche B Loans or Peso Loans pursuant to Section 2.08
      will be applied to reduce the subsequent scheduled repayments of such Loans
      to be made pursuant to this Section ratably.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Section 2.08. Prepayments.
      (a) Optional Prepayments. The Borrower will have the right at any
      time to prepay any Borrowing in whole or in part, subject to the provisions
      of this Section, in each case in an aggregate principal amount of not less
      than US$5,000,000 (calculated with respect to Peso Loans using the Dollar
      Amount thereof at such time) or, if less, the then outstanding aggregate
      principal amount of such Borrowing. Each such prepayment shall be accompanied
      by accrued interest on the amount so repaid to the date of such prepayment.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 25 | 
| | -- | 



---





|(b) Notice of Prepayments.
      The Borrower shall notify the Administrative Agent (and, in the case of
      any Peso Loans, the Mexican Administrative Agent) by telephone (confirmed
      by telecopy) of any prepayment of Loans, which notice shall be (i) if such
      Loans are Dollar Loans, not later than 11:00 a.m., New York City time, three
      LIBO Adjusted Business Days before the date of prepayment and (ii) if such
      Loans are Peso Loans, not later than 11:00 a.m., Mexico City time, three
      Peso Business Days before the date of prepayment. Each such notice shall
      be irrevocable and shall specify the prepayment date and the principal amount
      of each Borrowing or portion thereof to be prepaid. Promptly after it receives
      any such notice, the Administrative Agent (or, in the case of Peso Loans,
      the Mexican Administrative Agent) shall advise the affected Lenders of the
      contents thereof. Before any prepayment of Borrowings under this Section
      2.08, the Borrower shall select the Borrowing or Borrowings to be prepaid
      and shall specify such selection in the notice of such prepayment pursuant
      to this Section 2.08(b).
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Section 2.09. Fees.
      The Borrower shall pay to the Administrative Agent and the Mexican Administrative
      Agent, each for its own account, fees payable in the amounts and at the
      times separately agreed upon by the Borrower and the Administrative Agent
      or the Borrower and the Mexican Administrative Agent, as applicable.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Section 2.10. Interest.
      (a) The Dollar Loans comprising each Borrowing of each Tranche shall bear
      interest for each Interest Period in effect for such Borrowing at the Adjusted
      LIBO Rate for such Interest Period plus the Applicable Margin for Dollar
      Loans for such day (subject to the provisions of Section 2.11).
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(b) The
Peso Loans comprising each Borrowing shall bear interest for each Interest
Period in effect for such Borrowing at the TIIE Rate plus the Applicable Margin
for the Peso Loans for such day, payable in Pesos.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(c) Notwithstanding the foregoing,
      if any principal of or interest on any Loan or any fee or other amount payable
      by the Borrower hereunder is not paid when due, whether at stated maturity,
      upon acceleration or otherwise, such overdue amount (or, if at such time
      the Bridge Period is still in effect, all outstanding Loans and any overdue
      interest) shall bear interest, after as well as before judgment, to the
      extent permitted under applicable law, at a rate per annum equal to (i)
      in the case of overdue principal of or interest on any Loan, 2% plus the
      rate otherwise applicable to such Loan as provided in the preceding subsections
      of this Section (provided that, after the end of the final Interest
      Period with respect to such Loan, the LIBO Rate (in the case of Dollar Loans)
      or the TIIE Rate (in the case of Peso Loans) for such Loan shall be determined
      by the Administrative Agent on the basis of such period, not longer than
      one month or 28 days, respectively, as the Administrative Agent may determine
      in its sole discretion) or (ii) in the case of any other amount, the rate
      that is then applicable to overdue principal pursuant to clause (i) above
      (A) in respect of a Dollar Loan, if such amount is owing in Dollars or (B)
      in respect of a Peso Loan, if such amount is owing in Pesos (or, if no such
      Dollar Loan or Peso Loan, as applicable, is outstanding at such time, as
      would be applicable if such Loan were outstanding).
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(d) Interest accrued on each
      Loan shall be payable in arrears on the last day of the Interest Period
      applicable to the Borrowing of which such Loan is a part and, in the case
      of Dollar Loans, if such Interest Period is longer than three months, each
      day during such Interest Period that occurs at intervals of three months
      duration after the first day of such Interest Period; provided that
      (i) interest accrued pursuant to Section 2.10(c) shall be
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 26 | 
| | -- | 



---





|payable on demand and  (ii) upon any repayment
of any Loan, interest accrued on the principal amount  repaid shall be payable on the
date of such repayment.
|------------------------------------------------------------------------------------------------------------------------------------------------------------



|(e) All
interest hereunder will be computed on the basis of a year of 360 days, and will
be payable for the actual number of days elapsed (including the first day but
excluding the last day). Each applicable Adjusted LIBO Rate and (except as
provided in the definition thereof) Alternate Rate shall be determined by the
Administrative Agent, and each applicable TIIE Rate shall be determined by the
Mexican Administrative Agent, and each such determination thereof will be
conclusive absent manifest error.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Section 2.11.Alternate
      Rate of Interest. (a) If before the beginning of any Interest Period
      for a Borrowing of Dollar Loans:
|----------------------------------------------------------------------------------------------------------------------------------------



| | (i)
the  Administrative Agent determines (which determination will be conclusive absent
manifest error) that, by reason of circumstances affecting the London interbank  market,
adequate and reasonable means do not exist for ascertaining the Adjusted  LIBO Rate for
such Interest Period; or
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (ii)
Lenders whose Loans aggregate more than 50% of such Borrowing provide notice to  the
Administrative Agent, with a copy to the Borrower, that the Adjusted LIBO  Rate for such
Interest Period will not adequately and fairly reflect the cost to  such Lenders of
making or maintaining such Loans for such Interest Period;
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|then the Administrative Agent shall give notice thereof to
      the Borrower and the Lenders by telephone or telecopy as promptly as practicable
      thereafter and, from such date (the Alternate Rate Date)
      until the Administrative Agent notifies the Borrower and the Lenders that
      the circumstances giving rise to such notice no longer exist, (i) any Interest
      Period Election that requests the continuation of any Borrowing of Dollar
      Loans will be ineffective and (ii) all Dollar Loans will bear interest at
      the Alternate Rate for such period.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(b) As used herein, Alternate
      Rate means for any Lender and for any day a rate per annum equal
      to the sum of (i) the Base Funding Rate for such Lender for such day plus
      (ii) the Applicable Margin for Dollar Loans for such date; and Base
      Funding Rate means for any Lender and for any day a rate per annum
      equal to the Federal Funds Effective Rate for such day; provided
      that if any Lender that is required to make or maintain Alternate Rate Loans
      pursuant to this Section 2.11 determines in good faith that the Base Funding
      Rate as so determined does not accurately reflect the cost to such Lender
      of obtaining funds to fund its Loans, then (A) such Lender shall notify
      the Borrower and the Administrative Agent of such fact promptly (but in
      any event within 10 Business Days) after the Alternate Rate Date and (B)
      during the 20 Business Days after the date on which such notice is given
      (the Negotiation Period), the Borrower and such Lender
      shall negotiate in good faith to determine the rate necessary to compensate
      such Lender for its cost of obtaining as of the commencement of the then
      current Interest Period (and thereafter as of the commencement of each subsequent
      Interest Period), funds for such Interest Period in an amount equal to the
      applicable principal amount of such Lenders Dollar Loan or Loans (which
      may be established with reference to a fluctuating benchmark or otherwise).
      If the Borrower and such Lender agree to any such rate pursuant to the preceding
      sentence, the rate so agreed shall be the Base Funding Rate for such Lender
      for each such day or Interest Period, as applicable. Such Lender shall notify
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 27 | 
| | -- | 



---





|the Administrative Agent of such Base Funding
Rate promptly  upon such determination and on the first day of each Interest Period
thereafter,  and, if requested by the Administrative Agent from time to time, shall
provide  the Administrative Agent sufficient information to allow it to determine such
Base Funding Rate from time to time. If the Borrower and such Lender do not  agree to
such rate, then the Borrower shall, within 10 days after the end of the  Negotiation
Period (and on three LIBO Business Days notice to such Lender  and the
Administrative Agent), either (and notwithstanding anything to the  contrary in Section
2.16) (x) require such Lender to sell its Dollar Loans in  accordance with Section 2.16
or (y) prepay all Loans of such Lender, with  interest accrued thereon to the date of
such prepayment calculated at the  Alternate Rate applicable from time to time during
such period calculated using  the Base Funding Rate determined solely for this purpose
without regard to the  proviso thereof, from and after the date on which such Alternate
Rate otherwise  first so applies to but excluding the date of such prepayment.
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Section 2.12.Increased Costs. (a) If any Change in Law shall:
|-------------------------------------------------------------



| | (i)
impose, modify or deem applicable any reserve, assessment (contribution),  special
deposit or similar requirement against assets of, deposits with or for  the account of,
or credit extended by, any Lender (except any such reserve  requirement reflected in the
Adjusted LIBO Rate in the case of Dollar Loans); or
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (ii)
impose on any Lender, the London interbank market or the Mexican interbank  market, as
may be appropriate, any other condition affecting this Agreement or  Loans made by such
Lender;
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|and the  result of any of the foregoing shall be
to increase the cost to such Lender of  making or maintaining any Loan (or of maintaining
its obligation to make Loans)  or to reduce any amount received or receivable by such
Lender hereunder (whether  of principal, interest or otherwise) (excluding, for purposes
of this Section  2.12, any such increased costs resulting from Taxes and Other Taxes
(which shall  be exclusively governed by Section 2.14)), then the Borrower shall pay to
such  Lender such additional amount or amounts as will compensate it for such  additional
cost incurred or reduction suffered in accordance with subsection (c)  of this Section.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(b) If
any Lender determines in good faith that any Change in Law (other than a Change
in Law with respect to Taxes or Other Taxes, which shall be governed by the
provisions of Section 2.14) regarding capital requirements has or would have the
effect of reducing the rate of return on such Lenders capital or on the
capital of such Lenders holding company, if any, as a consequence of this
Agreement or the Loans made by such Lender, to a level below that which such
Lender or such Lenders holding company could have achieved but for such
Change in Law (taking into consideration such Lenders policies and the
policies of such Lenders holding company with respect to capital
adequacy), then from time to time the Borrower shall pay to such Lender such
additional amount or amounts as will compensate it or its holding company for
any such reduction suffered in accordance with subsection (c) of this Section.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(c) A  certificate
of a Lender setting forth the amount or amounts necessary to  compensate it or its
holding company, as the case may be, as specified in  subsection (a) or (b) of this
Section (and setting forth in reasonable detail  the basis for calculating such
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 28 | 
| | -- | 



---





|increased costs owed to such Lender) shall be delivered to
      the Borrower and shall constitute prima facie evidence of any such
      amounts payable. The Borrower shall pay such Lender the amount shown as
      due on any such certificate within 10 Business Days after receipt thereof.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(d) Failure or delay by any
      Lender to demand compensation pursuant to this Section will not constitute
      a waiver of its right to demand such compensation; provided that
      the Borrower will not be required to compensate a Lender pursuant to this
      Section for any increased cost or reduction incurred more than 180 days
      before it notifies the Borrower of the Change in Law giving rise to such
      increased cost or reduction and of its intention to claim compensation therefor.
      However, if the Change in Law giving rise to such increased cost or reduction
      is retroactive, then the 180-day period referred to above will be extended
      to include the period of retroactive effect thereof.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Section 2.13. Break-Funding
      Payments. If (a) any principal of any Loan is repaid on a day other
      than the last day of an Interest Period applicable thereto (including as
      a result of an Event of Default or pursuant to Section 2.11 or Section 2.16),
      (b) the Borrower fails to borrow, continue or prepay any Loan on the date
      specified in any notice delivered pursuant hereto, or (c) any Loan is assigned
      on a day other than the last day of an Interest Period applicable thereto
      as a result of a request by the Borrower pursuant to Section 2.16, then
      the Borrower shall compensate each Lender for its loss, cost and expense
      attributable to such event, which shall be deemed to include an amount determined
      by such Lender to be the excess, if any, of (i) the amount of interest that
      would have accrued on the principal amount of such Loan had such event not
      occurred, at the Adjusted LIBO Rate (or, in the case of any Peso Loan, the
      TIIE Rate) that would have been applicable to such Loan, for the period
      from the date of such event to the end of the then current Interest Period
      therefor (or, in the case of a failure to borrow or continue, the Interest
      Period that would have begun on the date of such failure), over (ii) the
      amount of interest that would accrue on such principal amount for such period
      at the interest rate which such Lender would bid were it to bid, at the
      beginning of such period, for Dollar deposits of a comparable amount and
      period from other banks in the eurodollar market (or, in the case of any
      Peso Loan, for Peso deposits of a comparable amount and period from appropriate
      sources in the markets or from the sources through which such Lender funds
      its Peso Loan). A certificate of any Lender setting forth in reasonable
      detail the basis for calculating such increased costs owed to such Lender
      that such Lender is entitled to receive pursuant to this Section shall be
      delivered to the Borrower and shall constitute prima facie evidence
      of such amounts payable. The Borrower shall pay such Lender the amount shown
      as due on any such certificate within 10 Business Days after receipt thereof.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Section 2.14. Taxes.
      (a) All payments by the Borrower under the Loan Documents shall be made
      free and clear of and without deduction or withholding for any Indemnified
      Taxes or Other Taxes; provided that, if the Borrower shall be required,
      by law or otherwise, to deduct any Indemnified Taxes or Other Taxes from
      such payments, then (i) the Borrower shall make such deduction or withholding
      and pay the full amount deducted to the relevant Governmental Authority
      in accordance with applicable law and (ii) the sum payable by the Borrower
      to the relevant Lender Party under the Loan Documents shall be increased
      as necessary so that, after all required deductions or withholdings (including
      deductions applicable to additional sums payable under this Section) are
      made, each such Lender Party receives an amount equal to the sum it would
      have received had no such deductions or withholdings been made.
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 29 | 
| | -- | 



---





|(b) In
addition, the Borrower shall pay any Other Taxes to the relevant Governmental
Authority in accordance with applicable law.
|---------------------------------------------------------------------------------------------------------------------------------



|(c) The
Borrower shall indemnify each Lender Party, within 30 days after written demand
therefor, for the full amount of any Indemnified Taxes or Other Taxes paid by,
or claimed from, or assessed in respect of, such Lender Party with respect to
any payment by or obligation of the Borrower under the Loan Documents (including
Indemnified Taxes or Other Taxes imposed or asserted on or attributable to
amounts payable under this Section) and any penalties, surcharges, interest and
reasonable costs and expenses arising therefrom or related thereto, whether or
not such Indemnified Taxes or Other Taxes were correctly or legally imposed or
asserted by the relevant Governmental Authority. A certificate as to the amount
of any such payment delivered to the Borrower by a Lender Party, or by the
Administrative Agent on behalf of any Lender Party, shall be conclusive and
binding absent manifest error. As soon as practicable after such Lender Party
pays any Indemnified Taxes or Other Taxes to a Governmental Authority, the
Lender Party shall deliver to the Borrower a copy of a receipt issued by such
Governmental Authority evidencing such payment, a copy of the return reporting
such payment, or other evidence of such payment reasonably satisfactory to the
Borrower.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(d) As
soon as practicable after the Borrower pays any Indemnified Taxes or Other Taxes
to a Governmental Authority, the Borrower shall deliver to the Administrative
Agent the original or a certified copy of a receipt issued by such Governmental
Authority evidencing such payment, a copy of the return reporting such payment,
duly stamped or acknowledged by the relevant Governmental Authority, or other
evidence of such payment, reasonably satisfactory to the Administrative Agent.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(e) Each
Lender Party (other than EDC) hereby represents as of the relevant Borrowing
Date (or in the case of any Lender that is an assignee pursuant to Section
9.04(b), other than any such assignee Lender that has notified the Borrower and
the Administrative Agent that it is electing to be subject to the proviso in
clause (b)(v) of Section 9.04, as of each date the assignment of any Commitment
or Loans becomes effective) that it is either (i) a Mexican Bank or (ii) a
Foreign Financial Institution that is resident (or, if applicable, the main
office of which is a resident) in a country that has entered into a treaty for
the avoidance of double taxation with Mexico.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(f) Each  Lender
Party (other than EDC and a Lender Party that is a Mexican Bank) shall,  at the request
of the Borrower, made pursuant to a written notice given at least  10 days prior to the
relevant filing date, use reasonable commercial efforts to  file with the Ministry of
Finance or, where applicable, in accordance with the  laws of any jurisdiction outside
Mexico from or through which payments hereunder  or under any Notes are made, a form,
certificate or other similar document  requested by the Borrower (including without
limitation any such form,  certificate or other similar document that may be required to
maintain such  Lender Partys status as a Foreign Financial Institution) if (i) such
filing is required under applicable law or a treaty for the avoidance of double  taxation
then in effect, (ii) such filing would avoid the need for making any  tax withholding or
deduction, or reduce the amount of any such withholding or  deduction which may
thereafter accrue to or for the account of such Lender Party  pursuant to this Section
and (iii) such filing would not, in the good faith  judgment of such Lender Party,
require such Lender Party to disclose any  confidential or proprietary information or be
otherwise materially  disadvantageous to such Lender Party. Notwithstanding the
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 30 | 
| | -- | 



---





|foregoing, it is  understood and agreed that
nothing in this Section shall interfere with the  rights of any Lender Party to conduct
its fiscal or tax affairs in such manner  as it deems appropriate.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(g) If after the Borrower has
      paid any Indemnified Taxes for the account of any Lender Party under this
      Section 2.14, such Lender Party thereafter receives a cash rebate of such
      payment (but not a credit with respect to such payment) from the applicable
      authority expressly identified by such authority as being in respect of
      such Indemnified Taxes for which the Borrower has made such payment, such
      Lender Party shall pay to the Borrower, within 60 days after receipt of
      such rebate, the amount of such rebate. Any Lender Party shall use reasonable
      efforts to cooperate, at the request and sole expense of the Borrower, with
      the Borrowers efforts to submit a claim for such rebate, provided
      that such cooperation shall not, in the good faith judgment of such Lender
      Party, require such Lender Party to disclose any confidential or proprietary
      information or be otherwise materially disadvantageous to such Lender Party.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(h) EDC
represents and warrants to the Borrower that, as of the relevant Borrowing Date,
the head office of EDC is in Ottawa, Canada, and EDC was previously named an
Export Development Corporation as referred to in Article 11 of the
Convention Between the Government of Canada and the Government of the
United Mexican States for the Avoidance of Double Taxation and the Prevention of
Fiscal Evasion with Respect to Taxes on Income.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Section
2.15. Payments Generally; Pro Rata Treatment; Sharing of Set-offs. (a) The
Borrower shall make each payment required to be made by it under the Loan
Documents (whether of principal, interest or fees or amounts payable under
Section 2.12, 2.13, or 2.14 or otherwise) on or before the time expressly
required under the relevant Loan Document for such payment (or, if no such time
is expressly required, before 3:00 P.M., New York City time), on the date when
due, in immediately available funds, without set-off or counterclaim. Any amount
received after such time on any day may, in the discretion of the Administrative
Agent, be deemed to have been received on the next succeeding Business Day for
purposes of calculating interest thereon. All such payments shall be made to the
Administrative Agent at its offices at 270 Park Avenue, New York, New York
10017, except that (i) payments in respect of Peso Loans shall be made to the
Mexican Administrative Agent at its offices in Mexico City and (ii) payments
pursuant to Sections 2.12, 2.13, 2.14 and 9.03 shall be made directly to the
Persons entitled thereto. The Administrative Agent and the Mexican
Administrative Agent shall distribute any such payment received by it for the
account of any other Person to the appropriate recipient promptly after receipt
thereof. If any payment under any Loan Document shall be due on a day that is
not (i) in the case of any payment of principal on or interest with respect to
any Dollar Loan, a LIBO Business Day, the date for payment will be extended to
the next succeeding LIBO Business Day, (ii) in the case of any payment of
principal on or interest with respect to any Peso Loan, a Peso Business Day, the
date for payment will be extended to the next succeeding Peso Business Day and
(iii) in the case of any other payment hereunder, a Business Day, the date for
payment will be extended to the next succeeding Business Day, and, in each case,
if such payment accrues interest, interest thereon will be payable for the
period of such extension. All payments with respect to Dollar Loans under each
Loan Document shall be made in Dollars and all payments with respect to Peso
Loans under each Loan Document shall be made in Pesos.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 31 | 
| | -- | 



---





|(b) If at
any time insufficient funds are received by and available to the Administrative
Agent or Mexican Administrative Agent to pay fully all amounts of principal,
interest and fees then due hereunder and payable through the Administrative
Agent or Mexican Administrative Agent, as relevant, the Agent with insufficient
funds shall promptly notify the other such Agent thereof, and the Administrative
Agent and the Mexican Administrative Agent shall jointly apply such funds (i)
first, to pay fees then due hereunder, ratably among the parties entitled
thereto in accordance with the amounts of fees then due to such parties, (ii)
second, to pay interest then due hereunder, ratably among the parties entitled
thereto in accordance with the amounts of interest then due to such parties,
(iii) third, to pay principal then due hereunder, ratably among the parties
entitled thereto in accordance with the amounts of principal then due to such
parties and (iv) fourth, to pay any other amounts then due hereunder, ratably
among the parties entitled thereto in accordance with the amounts then due to
such parties.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(c) If any Lender shall, by
      exercising any right of set-off or counterclaim or otherwise, obtain payment
      in respect of any principal of or interest on any of its Loans resulting
      in such Lender receiving payment of a greater proportion of the aggregate
      amount of its Loans and accrued interest thereon than the proportion received
      by any other Lender, then the Lender receiving such greater proportion shall
      purchase (for cash at face value) participations in the Loans of other Lenders
      to the extent necessary so that the benefit of all such payments shall be
      shared by the Lenders ratably in accordance with the aggregate amount of
      principal of and accrued interest on their respective Loans; provided
      that (i) if any such participations are purchased and all or any portion
      of the payment giving rise thereto is recovered, such participations shall
      be rescinded and the purchase price restored to the extent of such recovery,
      without interest, and (ii) the provisions of this subsection shall not apply
      to any payment made by the Borrower pursuant to and in accordance with the
      express terms of this Agreement or any payment obtained by a Lender as consideration
      for the assignment of or sale of a participation in any of its Loans to
      any assignee or participant, other than to the Borrower or any Subsidiary
      or Affiliate thereof (as to which the provisions of this subsection shall
      apply). The Borrower consents to the foregoing and agrees, to the extent
      it may effectively do so under applicable law, that any Lender acquiring
      a participation pursuant to the foregoing arrangements may exercise against
      the Borrower rights of set-off and counterclaim with respect to such participation
      as fully as if such Lender were a direct creditor of the Borrower in the
      amount of such participation.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(d)
Unless, before the date on which any payment is due to the Administrative Agent
or Mexican Administrative Agent (herein, the Relevant Administrative
Agent) for the account of one or more Lender Parties hereunder, the
Relevant Administrative Agent receives from the Borrower notice that the
Borrower will not make such payment, the Relevant Administrative Agent may
assume that the Borrower has made such payment on such date in accordance
herewith and may, in reliance on such assumption, distribute to each relevant
Lender Party the amount due to it. In such event, if the Borrower has not in
fact made such payment, each Lender Party severally agrees to repay to the
Relevant Administrative Agent forthwith on demand the amount so distributed to
such Lender Party with interest thereon, for each day from and including the day
such amount is distributed to it to but excluding the day it repays the Relevant
Administrative Agent, at the greater of the Federal Funds Effective Rate and a
rate determined by the Relevant Administrative Agent in accordance with banking
industry rules on interbank compensation.
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 32 | 
| | -- | 



---





|(e) If
any Lender fails to make any payment required to be made by it pursuant to
Section 2.04(a), 2.15(d) or 9.03(c), the Relevant Administrative Agent may, in
its discretion (notwithstanding any contrary provision hereof), apply any
amounts thereafter received by the Relevant Administrative Agent for the account
of such Lender to satisfy such Lenders obligations under such Sections
until all such unsatisfied obligations are fully paid.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(f) All
calculations of ratable amounts required for sharing of payments or otherwise
under this Section 2.15 shall be determined on the basis of the Dollar Amount of
outstanding Loans determined on the date on which any such payment is first
received.
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Section
2.16. Lenders Obligation to Mitigate; Replacement of Lenders. (a) If (x)
any Lender requests compensation under Section 2.12, or (y) the Borrower is
required to pay any additional amount to any Lender or any Governmental
Authority for the account of any Lender pursuant to Section 2.14 in excess of
the amount that the Borrower would be required to pay if such Lender were a
Foreign Financial Institution resident (or, if applicable, the main office of
which is a resident) in a country that has entered into a treaty for the
avoidance of double taxation with Mexico, then such Lender (except in the case
of (y) if the Lender makes the election set forth in the proviso to clause
(b)(v) of Section 9.04) shall use reasonable efforts to designate a different
lending office for funding or booking its Loans hereunder or to assign its
rights and obligations hereunder to another of its offices, branches or
affiliates, if, in the reasonable judgment of such Lender, such designation or
assignment (i) would eliminate or reduce amounts payable pursuant to Section
2.12 or Section 2.14, as the case may be, in the future, (ii) would not subject
such Lender to any unreimbursed cost or expense and (iii) would not otherwise be
materially disadvantageous to such Lender. The Borrower shall pay all reasonable
and documented costs and expenses incurred by any Lender in connection with any
such designation or assignment.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(b) If (x) any
Lender requests compensation under Section 2.12 or (y) the Borrower is required to pay
any additional amount to any Lender or any Governmental Authority for the account of any
Lender pursuant to Section 2.14 in excess of the amount that the Borrower would be
required to pay if such Lender were a Foreign Financial Institution resident (or, if
applicable, the main office of which is a resident) in a country that has entered into a
treaty for the avoidance of double taxation with Mexico, unless such Lender has made the
election set forth in the proviso to clause (b)(v) of Section 9.04, or (z) any Lender
defaults in its obligation to fund Loans hereunder, then the Borrower may, at its sole
expense, upon notice to such Lender and the Administrative Agent, require such Lender to
assign, without recourse (in accordance with and subject to the restrictions contained
in Section 9.04), all its interests, rights and obligations under this Agreement to an
assignee that shall assume such obligations (which assignee may be another Lender, if a
Lender accepts such assignment); provided that (i) the Borrower shall have received the
prior written consent of the Administrative Agent, which consent shall not unreasonably
be withheld, (ii) such Lender shall have received payment of an amount equal to the
outstanding principal of its Loans, accrued interest thereon, accrued fees and all other
amounts payable to it hereunder, from the assignee (to the extent of such outstanding
principal and accrued interest and fees) or the Borrower (in the case of all other
amounts) and (iii) in the case of any such assignment resulting from a claim for
compensation under Section 2.12 or payments required to be made pursuant to Section
2.14, such assignment will result in a reduction in such compensation or payments that
is material to the Borrower in its reasonable judgment. A Lender shall not be required
to
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 33 | 
| | -- | 



---





|make  any such assignment if, prior thereto, as
a result of a waiver by such Lender or  otherwise, the circumstances entitling the
Borrower to require such assignment  cease to apply.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(c) If the Borrower becomes
      obligated to pay additional amounts to any Lender pursuant to Section 2.12
      or Section 2.14 of this Agreement (in this last case, in excess of additional
      amounts that would be paid to such Lender if it were a Foreign Financial
      Institution resident (or, if applicable, the main office of which is a resident)
      in a country that has entered into a treaty for the avoidance of double
      taxation with Mexico), the Borrower shall be entitled to prepay the Loans
      of any Lender affected by such conditions by providing five LIBO Business
      Days prior written notice to the Administrative Agent of such prepayment
      (which prepayment shall occur not more than 20 days after the date of such
      notice); provided that the Borrower has endeavored in good faith
      to find an assignee to purchase the Loans of such Lender pursuant to Section
      2.16(b) and has been unable to find any such assignee for thirty days from
      the commencement of such efforts; and provided further, that
      Lenders claiming equivalent additional amounts shall be treated equally.
      On the date of any such prepayment, the Lenders shall be paid the principal
      amount of the Loans to be prepaid, together with interest accrued thereon
      through the date of prepayment and all other amounts due, with respect to
      such Loans, hereunder. Payments pursuant to this Section 2.16(c) shall not
      be subject to Section 2.15.
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Section
2.17. Judgment Currency. If for the purpose of obtaining judgment in any court
it is necessary to convert a sum due from the Borrower under any Loan Document
in the currency expressed to be payable in such Loan Document (the
specified currency) into another currency, the parties hereto agree,
to the fullest extent that they may effectively do so, that the rate of exchange
used shall be that at which in accordance with normal banking procedures the
Administrative Agent (or, in the case of any Peso Loan, the Mexican
Administrative Agent) could purchase the specified currency with such other
currency at (i) where the specified currency is Dollars, the Administrative
Agents New York City office and (ii) where the specified currency is
Pesos, the Mexican Administrative Agents Mexico City office, in each case
at 11:00 a.m. (New York City or Mexico City time, as applicable) on the Peso
Business Day preceding that on which final judgment is given. The obligations of
the Borrower in respect of any sum due to any Lender or any Agent under any Loan
Document shall, notwithstanding any judgment in a currency other than the
specified currency, be discharged only to the extent that on the Business Day
(or Peso Business Day, in the case of any sum where the specified currency is
Pesos) following receipt by such Lender or such Agent (as the case may be) of
any sum adjudged to be so due in such other currency such Lender or Agent (as
the case may be) may in accordance with normal banking procedures purchase the
specified currency with such other currency. If the amount of the specified
currency so purchased is less than the sum originally due to such Lender or such
Agent, as the case may be, in the specified currency, the Borrower agrees, to
the fullest extent that it may effectively do so, as a separate obligation and
notwithstanding any such judgment, to indemnify such Lender or such Agent, as
applicable, against such loss, and if the amount of the specified currency so
purchased exceeds (i) the sum originally due to such Lender or Agent, as
applicable, and (ii) any amounts shared with other Lenders as a result of
allocations of such excess as a disproportionate payment to such Lender under
Section 2.15, such Lender or Agent, as applicable, agrees to remit such excess
to the Borrower.
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 34 | 
| | -- | 



---





|ARTICLE 3 
      REPRESENTATIONS AND WARRANTIES
|-----------------------------------------------



|The Borrower
        represents and warrants to the Lender Parties that:
|------------------------------------------------------------------------





|Section
3.01. Organization; Powers. The Borrower has been duly incorporated, is validly
existing under the laws of Mexico, has all requisite power and authority to
carry on its business as now conducted and, except where failures to do so, in
the aggregate, could not reasonably be expected to result in a Material Adverse
Effect, is qualified to do business and is in good standing in every
jurisdiction where such qualification is required. Each Subsidiary of the
Borrower has been duly incorporated, is validly existing and, where applicable,
in good standing under the laws of the jurisdiction of its organization, has all
requisite power and authority to carry on its business as now conducted and is
qualified to do business in, and is in good standing in, every jurisdiction
where such qualification is required, except where failures to do so, in the
aggregate, could not reasonably be expected to result in a Material Adverse
Effect.
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Section 3.02. Authorization;
      Enforceability. The Transactions to be entered into by each KOF Company
      are within its corporate powers and have been duly authorized by all necessary
      corporate and, if required, stockholder action. This Agreement has been
      duly executed and delivered by the Borrower and constitutes, and each other
      Loan Document to which the Borrower is to be a party, when executed and
      delivered by the Borrower, will constitute, a legal, valid and binding obligation
      of the Borrower, in each case enforceable in accordance with its terms,
      subject to applicable bankruptcy, concurso mercantil, insolvency,
      reorganization, moratorium and other laws affecting creditors rights
      generally and subject to general principles of equity, regardless of whether
      considered in a proceeding in equity or at law.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Section 3.03. Governmental
      Approvals; No Conflicts. Except as provided in Schedule 3.03, the Transactions
      (a) do not require any consent or approval of, registration or filing with,
      or other action by, any Governmental Authority, except such as have been
      obtained or made and are in full force and effect on the date of this Agreement
      or (to the extent not necessary until the relevant Borrowing Date) shall
      be obtained or made on or prior to, and be in full force and effect on,
      the relevant Borrowing Date, (b) will not violate any applicable law or
      regulation or the charter, by-laws, estatutos sociales or other organizational
      documents of any KOF Company or any order of any Governmental Authority,
      (c) will not violate or result in a default under (x) any indenture, instrument
      or other agreement with respect to Debt of the type included in the calculation
      of Total Debt, in excess of US$1,000,000, or (y) any other material
      agreement, in each case binding upon any KOF Company or any of its material
      properties, or give rise to a right thereunder to require any KOF Company
      to make any material payment and (d) will not result in the creation or
      imposition of any Lien on any property of any KOF Company.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Section 3.04.
Financial Statements; No Material Adverse Change. (a) The Borrower has heretofore
furnished to the Lenders:
|-------------------------------------------------------------------------------------------------------------------------



| | (i)
the consolidated balance sheet of the Borrower and its consolidated  Subsidiaries as of
December 31, 2001 and the related consolidated statements of  income, changes in
stockholders equity and changes in financial position for  the Fiscal Year then ended,
reported on by Ruiz, Urquiza y Cia., S.C.,  independent public accountants;
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 35 | 
| | -- | 



---





| | (ii)
the  consolidated balance sheet of the Borrower and its consolidated Subsidiaries as  of
September 30, 2002 and the related consolidated statements of income, changes  in
stockholders equity and changes in financial position for the Fiscal  Quarter then
ended and for the portion of the Fiscal Year then ended;
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (iii)
the  consolidated balance sheet of Panamco and its consolidated Subsidiaries as of
December 31, 2001 and the related consolidated statements of income,  stockholders equity
and cash flows for the Fiscal Year then ended,  reported on by Arthur Andersen LLP,
independent public accountants; and
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (iv)
the  consolidated balance sheet of Panamco and its consolidated Subsidiaries as of
September 30, 2002 and the related consolidated statements of income,  stockholders equity
and cash flows for the Fiscal Quarter then ended and  for the portion of the Fiscal Year
then ended.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|The  financial statements referred to in clauses
(i) and (ii) above present fairly,  in all material respects, the financial position of
the Borrower and its  consolidated Subsidiaries, as of such dates and their results of
operations and  changes of financial position for such periods in accordance with Mexican
GAAP,  subject to normal year-end adjustments and the absence of footnotes in the case
of the statements referred to in clause (ii) above. The financial statements  referred to
in clauses (iii) and (iv) above present fairly, in all material  respects, the financial
position of Panamco and its consolidated Subsidiaries as  of such dates and their results
of operations and cash flows for such periods in  accordance with generally accepted
accounting principles in the United States at  the date hereof, subject to normal
year-end adjustments.
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(b) The
pro forma consolidated balance sheet as of September 30, 2002 included in the
Information Memorandum has been prepared giving effect (as if such event has
occurred on such date) to (i) the consummation of the Acquisition, (ii) the
maximum borrowings that could be made hereunder and under the Other Loan
Agreement in connection with the Acquisition and the use of proceeds thereof and
(iii) the payment of fees and expenses in connection with the foregoing. Such
pro forma consolidated balance sheet (i) has been prepared in good faith based
on assumptions believed by the Borrower to be reasonable and (ii) is based on
the best information available to the Borrower after due inquiry.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(c) After
giving effect to the Transactions, none of the KOF Companies will have or has,
as of either Borrowing Date, any material contingent liabilities, unusual
long-term commitments or unrealized losses, except as disclosed in the financial
statements referred to above or the notes thereto or in the Information
Memorandum and except for the Disclosed Matters.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(d) There has not
occurred after December 22, 2002 any Material Adverse Change.
|-------------------------------------------------------------------------------



|Section 3.05.Properties.
      Each KOF Company has good title to, or valid leasehold interests in, all
      real and personal property material to its business, except for minor defects
      in title that do not interfere with its ability to conduct its business
      as currently conducted or to utilize such properties for their intended
      purposes and except
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 36 | 
| | -- | 



---





|where failures to have such title or interests
could not  reasonably be expected to result in a Material Adverse Effect.
|------------------------------------------------------------------------------------------------------------------------



|Section
3.06. Litigation and Environmental Matters. (a) Except for the Disclosed
Matters, there are no actions, suits or proceedings by or before any arbitrator
or Governmental Authority pending against or, to the knowledge of the Borrower,
threatened in writing against or affecting any KOF Company which if decided
adversely to any KOF Company, could reasonably be expected to have a material
adverse effect on (i) the business, condition (financial or otherwise),
operations, results of operations, performance, properties, assets, liabilities
(contingent or otherwise) or prospects of the Borrower or Panamco, in each case
together with its respective Subsidiaries, taken as a whole, whether before or
after giving effect to the Transactions, (ii) the Acquisition, (iii) the rights
of the Lenders or (iv) the ability of the Borrower to perform its financial
obligations under the Loan Documents (excluding in all cases the matters
disclosed on Schedules 3.06, 3.12, 3.13, 3.15 and 3.17 of the Merger Agreement).
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(b)
Except for the Disclosed Matters and except for other matters that, in the
aggregate, could not reasonably be expected to result in a Material Adverse
Effect, no KOF Company (i) has failed to comply with any Environmental Law or to
obtain, maintain or comply with any permit, license or other approval required
under any Environmental Law, (ii) is subject to any Environmental Liability,
(iii) has received notice of any claim with respect to any Environmental
Liability or (iv) knows of any basis for any Environmental Liability.
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(c) Since
the date of this Agreement, there has been no change in the status of the
Disclosed Matters that, individually or in the aggregate, has resulted in, or
materially increased the likelihood of, a Material Adverse Change.
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Section
3.07. Compliance with Laws and Agreements. Each KOF Company is in compliance
with all laws, regulations and orders of any Governmental Authority applicable
to it or its property (including, without limitation, Environmental Laws, IMSS,
INFONAVIT and SAR rules) and all indentures, agreements and other instruments
binding on it or its property, except where failures to do so, in the aggregate,
could not reasonably be expected to result in a Material Adverse Effect. No
Default has occurred and is continuing.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Section
3.08. Investment and Holding Company Status. The Borrower is not (a) an
investment company as defined in, or subject to regulation under,
the Investment Company Act of 1940 or (b) a holding company or
subsidiary company of a holding company as defined in, or subject to
regulation under, the Public Utility Holding Company Act of 1935.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Section
3.09. Taxes. Each KOF Company has timely filed or caused to be filed all Tax
returns and reports required to have been filed by it and has paid or caused to
be paid all Taxes required to have been paid by it, except (a) any Taxes that
are being contested in good faith by appropriate proceedings and for which the
relevant KOF Company has set aside on its books reserves (to the extent required
by Applicable GAAP) or (b) to the extent that failures to do so, in the
aggregate, could not reasonably be expected to result in a Material Adverse
Effect.
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 37 | 
| | -- | 



---





|Section 3.10. Disclosure.
      The Information Memorandum and all other reports, financial statements,
      certificates or other information furnished by or on behalf of the Borrower
      or any of its Subsidiaries to the Administrative Agent or any Lender in
      connection with the negotiation of this Agreement or any other Loan Document
      or delivered hereunder or thereunder (as modified or supplemented by other
      information so furnished), taken as a whole, are true and correct in all
      material respects and do not omit to state a material fact necessary to
      make the statements contained therein not misleading, in light of the circumstances
      under which such statements were made, in each case on the date on which
      such information was furnished; provided that, with respect to projected
      financial information, the Borrower represents only that such information
      was prepared in good faith based on assumptions believed to be reasonable
      at the time.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Section 3.11. Pari Passu
      Status. The obligations of the Borrower under the Loan Documents constitute
      direct and unconditional obligations of the Borrower and rank at all times
      at least pari passu in right of payment and in all other respects
      with all other unsecured, unsubordinated Debt of the Borrower at any time
      outstanding.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Section
3.12. Subsidiaries. Schedule 3.12 sets forth the name of, and the ownership
interest of the Borrower in, each of its Subsidiaries as of each Borrowing Date.
Upon the consummation of the Acquisition, all the Borrowers Subsidiaries,
including Panamco and its Subsidiaries, will be fully consolidated in the
Borrowers consolidated financial statements.
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Section
3.13. Insurance. The Borrower and its Subsidiaries maintain all insurance as
required by law or as usually carried by companies of established repute engaged
in the same or similar business, owning similar properties, and located in the
same general areas as the Borrower and its Subsidiaries, except for any such
failure that could not reasonably be expected to have a Material Adverse Effect.
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Section
3.14. Labor Matters. As of each Borrowing Date, there are no strikes, lockouts
or slowdowns against any KOF Company pending or, to the knowledge of the
Borrower, threatened, except such strikes, lockouts or slowdowns which in the
aggregate would not reasonably be expected to have a Material Adverse Effect.
All payments due from any KOF Company, or for which any claim may be made
against any KOF Company, on account of wages and employee health and welfare
insurance and other benefits (including IMSS, INFONAVIT and SAR), have been paid
or accrued as a liability on the books of such KOF Company , except such
payments which in the aggregate would not reasonably be expected to have a
Material Adverse Effect.
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Section
3.15. Solvency. Immediately after the Transactions to occur on the Borrowing
Dates and Acquisition Date are consummated and after giving effect to the
application of the proceeds of each Loan to be made hereunder, (a) the fair
value of the assets of the Borrower, at a fair valuation, will exceed its debts
and liabilities, subordinated, contingent or otherwise and (b) the Borrower will
be able to pay its debts and liabilities, subordinated, contingent or otherwise,
as such debts and liabilities become absolute and matured.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Section 3.16.Legal Form. (a) Each of the Loan Documents is in proper legal form under all applicable
laws for the enforcement thereof in accordance with their respective terms against the
parties thereto under such laws. To ensure the legality, validity, enforceability or
admissibility into evidence of the Loan Documents, it is not
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 38 | 
| | -- | 



---





|necessary that any of such Loan Documents or any
other  document be filed or recorded with any applicable Governmental Authority or that
any stamp or similar tax be paid on or in respect of this Agreement or any Note,  or any
other such document, except that in the event that any legal proceedings  with respect to
any Loan Document are brought in the courts of Mexico, a Spanish  translation of the
documents required in such proceedings prepared by a Mexican  court-approved translator
would have to be approved by the court after the  defendant had been given an opportunity
to be heard with respect to the accuracy  of such translation, and the proceedings would
thereafter be based upon the  translated documents. Any judgment against the Borrower
obtained in a  non-Mexican state or federal court to which the Borrower is submitting
pursuant  to Section 9.09(b) hereof is capable of being enforced in the courts of Mexico,
subject to the satisfaction of all applicable procedural requirements.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(b)
Neither the Borrower nor any of its property has any immunity on the ground of
sovereignty or otherwise, from the jurisdiction of any court or from any legal
process (whether through service or notice, attachment prior to judgment,
attachment in aid of execution, execution or otherwise) under any applicable
laws in respect of the obligations of the Borrower under the Loan Documents or
from the execution or enforcement of any judgment resulting therefrom, and if
the Borrower or any of its revenues, assets or properties should become entitled
to any such right of immunity, the Borrower has effectively waived such right
pursuant to Section 9.09(e).
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(c) It is
not necessary in order for any Lender Party to enforce any of its rights or
remedies under the Loan Documents or solely by reason of the execution, delivery
and performance by the Borrower of the Loan Documents, that any Lender Party be
licensed or qualified with any Mexican Governmental Authority or be entitled to
carry on business in any jurisdiction.
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|ARTICLE 4 
      CONDITIONS
|---------------------------





|Section
4.01. Effective Date. This Agreement shall become effective on the date (the
Effective Date) on which the Administrative Agent (or its counsel)
shall have received from each party hereto either (a) a counterpart of this
Agreement signed on behalf of such party or (b) written evidence satisfactory to
the Administrative Agent (which may include telecopy transmission of a signed
signature page) that such party has signed a counterpart of this Agreement.
Promptly upon the occurrence of the Effective Date, the Administrative Agent
shall notify the Borrower and the Lenders thereof, and such notice shall be
conclusive and binding.
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Section
4.02. Conditions To Borrowing. The obligations of the Lenders to make Loans
hereunder shall not become effective until the date, if any (in the case of
Lenders with Peso Loan Commitments, the Peso Borrowing Date; and in
the case of Lenders with Dollar Loan Commitments, the Dollar Borrowing
Date) on which each of the following additional conditions is first
satisfied (or waived by the Required Lenders and otherwise in accordance with
Section 9.02):
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(a) The
Administrative Agent shall have received each of the following, in each  case dated on or
as of the Peso Borrowing Date unless expressly provided  otherwise below:
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 39 | 
| | -- | 



---





| | (i)
for each Lender a Note of each relevant Tranche duly executed by the  Borrower and dated
the relevant Borrowing Date;
| | -------------------------------------------------------------------------------------------------------------------------



| | (ii)
an  opinion of each of (A) Cleary, Gottlieb, Steen & Hamilton, special New York
counsel for the Borrower and (B) Lic. Carlos Aldrete Ancira, corporate counsel  for the
Borrower, substantially in the form of Exhibits C-1 and C-2,  respectively;
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (iii)
an  opinion of each of (A) Davis Polk & Wardwell, special New York counsel for  the
Agents and (B) Ritch, Heather y Mueller, S.C., special Mexican counsel for  the Agents,
substantially in the form of Exhibits D-1 and D-2, respectively, and  each covering such
additional matters relating to the Loan Documents or the  Transactions as the Required
Lenders may reasonably request;
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (iv)
the  following documents and certificates, all in form and substance satisfactory to  the
Administrative Agent and its counsel:
| | ------------------------------------------------------------------------------------------------------------------------------------



| | (A) theestatutos
      sociales of the Borrower, certified by a Mexican notary public as to
      its authenticity and certified by an appropriate officer of the Borrower
      as true and correct and in full force and effect in its delivered form on
      the Peso Borrowing Date;
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (B) a power of attorney,
      certified by a Mexican notary public, authorizing the relevant officers
      of the Borrower to execute and deliver the Notes (withpoder para suscribir
      títulose crédito) and this Agreement and any other document
      or certificate to be delivered by the Borrower on or prior to the Peso Borrowing
      Date in connection with this Agreement, including authority for acts of
      administration (poder para actos de administración); and
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (C)
powers of attorney, certified by a Mexican notary public, in form reasonably
satisfactory to the Administrative Agent, appointing the Process Agent to act as  such on
behalf of the Borrower, together with a letter to such effect and  written evidence of
acceptance by the Process Agent of such appointment;
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (v)
confirmation that the Borrower shall have received final Long-Term Debt Ratings  (giving
pro forma effect to the Transactions) of BBB- and Baa3, or higher, from  S&P and Moodys,
respectively, with stable outlook in each case; and
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (vi)
payment of all reasonable and documented fees and other amounts due and payable  to the
Lender Parties on or before the Peso Borrowing Date for which invoices  have been
received by the Borrower not less than five Business Days before the  Peso Borrowing
Date, including, to the extent invoiced, all out-of-pocket  expenses of the Agents
(including fees, charges and disbursements of their  counsel) required to be reimbursed
or paid by the Borrower under the Loan  Documents.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(b) All  consents
and approvals required to be obtained from any Governmental Authority  or other Person
prior to the Borrowing Dates in connection with
|--------------------------------------------------------------------------------------------------------------------------------------------------------



| | 40 | 
| | -- | 



---





|the Transactions  shall have been obtained, and
all applicable waiting periods and appeal periods  shall have expired, in each case
without the imposition of any burdensome  condition; and no law or regulation shall be
applicable, in the reasonable  judgment of the Administrative Agent, and no action, suit,
investigation,  litigation or proceeding shall be pending or threatened in writing, in
each case  that restrains, prevents or imposes materially adverse conditions upon the
Transactions.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(c) The
Administrative Agent shall have received confirmation satisfactory to it that
the Acquisition is expected to be consummated promptly (and in any event within
10 Business Days) after the Peso Borrowing Date in accordance with the
Acquisition Documents and applicable law, without any amendment to or waiver of
any material term or condition of the Acquisition Documents not approved by the
Required Lenders, and that the proceeds of the Loans are to be applied as
provided in Section 5.09. Copies of the Acquisition Documents and all
certificates, opinions and other documents delivered thereunder shall be made
available to the Administrative Agent for inspection.
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(d) There
shall exist no action, suit, investigation, litigation or proceeding pending or
threatened in any court or before any arbitrator or governmental or regulatory
agency or authority that could reasonably be expected, in the determination of
the Required Lenders, to have a material adverse effect on (i) the business,
condition (financial or otherwise), operations, results of operations,
performance, properties, assets, liabilities (contingent or otherwise) or
prospects of the Borrower or Panamco, in each case together with its respective
Subsidiaries, taken as a whole, whether before or after giving effect to the
Transactions, (ii) the Acquisition, (iii) the rights of the Lenders under the
Loan Documents or (iv) the ability of the Borrower to perform its financial
obligations under the Loan Documents (excluding in all cases the matters
disclosed on Schedules 3.06, 3.12, 3.13, 3.15 and 3.17 of the Merger Agreement).
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(e) There
shall not have occurred after December 22, 2002, in the sole good faith judgment
of the Required Lenders, any Material Adverse Change.
|------------------------------------------------------------------------------------------------------------------------------------------------



|(f) The
representations and warranties of the Borrower set forth in the Loan Documents
shall be true on and as of each Borrowing Date.
|--------------------------------------------------------------------------------------------------------------------------------------



|(g) Immediately
after giving effect to the Borrowings, no Default shall have  occurred and be continuing.
|---------------------------------------------------------------------------------------------------------



|(h) In
the case of the Lenders holding Dollar Loan Commitments, the Dollar Borrowing
Date shall occur not later than the second LIBO Business after the Peso
Borrowing Date.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Each  Borrowing shall be deemed to constitute a
representation and warranty by the  Borrower on the date thereof as to the matters
specified in clauses (c), (f) and  (g) of this Section. Notwithstanding the foregoing,
the obligations of the  Lenders to make Loans shall not become effective unless each of
the foregoing  conditions is satisfied (or waived pursuant to Section 9.02) and the
Borrowing  Dates occur before 5:00 p.m., New York City time, on September 18, 2003.
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 41 | 
| | -- | 



---





|ARTICLE 5 
      AFFIRMATIVE COVENANTS
|--------------------------------------





|Until all
the Commitments have expired or terminated and the principal of and interest on
each Loan and all fees payable hereunder have been paid in full, the Borrower
covenants and agrees with the Lenders that:
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Section 5.01.
Financial Statements and Other Information. The Borrower will furnish to the
Administrative Agent (for delivery to the Lenders):
|----------------------------------------------------------------------------------------------------------------------------------------------



|(a) within 120
days after the end of each Fiscal Year:
|------------------------------------------------------



| | (i)
in  the case of the Fiscal Year ended December 31, 2002, (A) the audited  consolidated
balance sheet of the Borrower and its consolidated Subsidiaries as  of the end of such
Fiscal Year and the related statements of income,  stockholders equity and change
of financial position for such Fiscal Year  and (B) the audited consolidated balance
sheet of Panamco and its consolidated  Subsidiaries as at December 31, 2002 and the
related statements of income,  stockholders equity and cash flows for the Fiscal
Year then ended, setting  forth in each case in comparative form the corresponding
figures for the  previous Fiscal Year, all reported on by Deloitte Touche Tohmatsu or
other  independent public accountants of recognized national standing (without a  going
concern or like qualification or exception and without any  qualification or
exception as to the scope of such audit) as presenting fairly  in all material respects
the financial position, results of operations and  change of financial position (or cash
flows, as applicable) of the Borrower and  its consolidated Subsidiaries or Panamco and
its consolidated Subsidiaries, as  applicable, on a consolidated basis in accordance with
Applicable GAAP;
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (ii)
in  the case of each Fiscal Year from and including the Fiscal Year ending December  31,
2003, the audited consolidated balance sheet of the Borrower and its  consolidated
Subsidiaries as of the end of such Fiscal Year and the related  statements of income,
stockholders equity and change of financial position  for such Fiscal Year setting
forth in each case in comparative form the figures  for the previous Fiscal Year, all
reported on by Deloitte Touche Tohmatsu or  other independent public accountants of
recognized national standing (without a  going concern or like qualification
or exception and without any  qualification or exception as to the scope of such audit)
as presenting fairly  in all material respects the financial position, results of
operations and  change of financial position of the Borrower and its consolidated
Subsidiaries  on a consolidated basis in accordance with Mexican GAAP;
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(b)  within 60
days after the end of each of the first three Fiscal Quarters of each Fiscal  Year:
|--------------------------------------------------------------------------------------------------



| | (i) in  the
case  of the Fiscal Quarter ended March 31, 2003, (A) the consolidated  balance sheet of
the  Borrower and its consolidated Subsidiaries as of the end of  such Fiscal Quarter and
the  related statements of income, stockholders equity and change of financial
position  for such Fiscal Quarter and (B) the  consolidated balance sheet of Panamco and
its  consolidated Subsidiaries as at  March 31, 2003 and the related statements of
income,  stockholders equity
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 42 | 
| | -- | 



---





| | and cash flows
for the Fiscal Quarter then ended, setting forth in each case in  comparative form the
figures for the corresponding period of (or, in the case of  the balance sheet, as of the
end of) the previous Fiscal Year, all certified by  a Financial Officer as presenting
fairly in all material respects the financial  position, results of operations and change
of financial position (or cash flows,  as applicable) of the Borrower and its
consolidated Subsidiaries or Panamco and  its consolidated Subsidiaries, as applicable,
on a consolidated basis in  accordance with Applicable GAAP, subject to normal year-end
adjustments and the  absence of footnotes;
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (ii)
in  the case of each Fiscal Quarter ending after March 31, 2003, the consolidated
balance sheet of the Borrower and its consolidated Subsidiaries as of the end of  such
Fiscal Quarter and the related statements of income, stockholders equity and change
of financial position for such Fiscal Quarter and for the then  elapsed portion of such
Fiscal Year setting forth in each case in comparative  form the figures for the
corresponding period or periods of (or, in the case of  the balance sheet, as of the end
of) the previous Fiscal Year, all certified by  a Financial Officer as presenting fairly
in all material respects the financial  position, results of operations and change of
financial position of the Borrower  and its consolidated Subsidiaries on a consolidated
basis in accordance with  Mexican GAAP, subject to normal year-end adjustments and the
absence of  footnotes;
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(c)
concurrently with each delivery of financial statements under clause (a) or (b)
above, a certificate of a Financial Officer (i) certifying as to whether a
Default has occurred and, if a Default has occurred, specifying the details
thereof and any action taken or proposed to be taken with respect thereto, (ii)
setting forth reasonably detailed calculations demonstrating compliance with
Section 6.05 and Section 6.06, (iii) listing each Material Subsidiary as of the
date of such financial statements and (iv) listing any Joint Venture Investment
Events that have occurred during such period, and setting forth a reasonably
detailed calculation demonstrating compliance with Section 6.04 with respect
thereto;
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(d) promptly after the same
      become publicly available, copies of all periodic and other reports, proxy
      statements or any other materials filed by the Borrower or Panamco with
      the SEC, the CNBV or similar Governmental Authority; provided that
      the Borrower may comply with this subsection by delivering a notice, by
      email or otherwise, to the Administrative Agent (which shall be promptly
      forwarded to the Lenders by the Administrative Agent) that any documents
      described herein have been posted on a website identified in such notice
      and accessible by the Lenders without charge;
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(e)
promptly following any request therefor, such other information regarding the
operations, business affairs and financial condition of any KOF Company, or
compliance with the terms of any Loan Document, as the Administrative Agent or
any Lender may reasonably request.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Section 5.02.Notice of
      Material Events. The Borrower will furnish to the Administrative Agent
      and each Lender prompt written notice of the following:
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------



|(a) the occurrence
of any Default; and
|--------------------------------------



| | 43 | 
| | -- | 



---





|(b) the
filing or commencement of any action, suit or proceeding by or before any
arbitrator or Governmental Authority against or affecting any KOF Company that
in the opinion of the Borrower has a reasonable likelihood of being adversely
determined and that, if adversely determined, could reasonably be expected to
result in a Material Adverse Effect.
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Each
notice delivered under this Section shall be accompanied by a statement of a
Financial Officer or other executive officer of the Borrower setting forth the
details of the event or development requiring such notice and any action taken
or proposed to be taken with respect thereto.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Section 5.03. Existence;
      Conduct of Business. Each of the Borrower and the Material Subsidiaries
      will preserve and maintain its legal existence and all of its material rights,
      licenses, privileges and franchises, except where failures to do so could
      not reasonably be expected in the aggregate to result in a Material Adverse
      Effect; provided that the foregoing shall not prohibit any merger,
      consolidation, liquidation or dissolution permitted under Section 6.02.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Section
5.04. Payment of Obligations. Each of the Borrower and the Material Subsidiaries
will pay its Debt and other obligations, including Tax liabilities, before the
same shall become delinquent or in default, except where (a) the validity or
amount thereof is being contested in good faith by appropriate proceedings, (b)
the relevant KOF Company has set aside on its books adequate reserves with
respect thereto as required by Applicable GAAP, and (c) the failure to make
payment pending such contest could not reasonably be expected to result in a
Material Adverse Effect.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Section
5.05. Maintenance of Properties. Each of the Borrower and the Material
Subsidiaries will maintain all property material to the conduct of its business
in good working order and condition, ordinary wear and tear excepted, except
where failures to do so could not reasonably be expected in the aggregate to
result in a Material Adverse Effect.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Section
5.06. Insurance. The Borrower and the Material Subsidiaries will maintain with
insurance companies (believed in good faith by the Borrower to be financially
sound and reputable) that customarily write insurance for the risks covered
thereby such insurance as may be required by law or as is usually carried by
companies of established repute engaged in the same or similar business, owning
similar properties, and located in the same general areas as the Borrower and
the Material Subsidiaries, except where failures to do so could not reasonably
be expected to result in a Material Adverse Effect.
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Section 5.07.Proper Records;
      Rights to Inspect and Appraise. Each of the Borrower and the Material
      Subsidiaries will keep proper books of record and account in which complete
      and correct entries are made of all transactions relating to its business
      and activities in accordance with Applicable GAAP, except where failures
      to do so could not reasonably be expected in the aggregate to result in
      a Material Adverse Effect. Each KOF Company will permit any representatives
      of the Administrative Agent and Lenders designated by the Administrative
      Agent, upon reasonable prior notice, to examine its books and records, and
      to discuss its affairs, finances and condition with its financial officers,
      all at such reasonable times and as often as reasonably requested but, unless
      an
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 44 | 
| | -- | 



---





|Event of  Default has occurred and is continuing
at the time of such proposed visit or  inspection, no more than twice in any calendar
year.
|--------------------------------------------------------------------------------------------------------------------------------------------



|Section
5.08. Compliance with Laws. Each KOF Company will comply with all laws, rules,
regulations and orders of any Governmental Authority applicable to it or its
property, except where failures to do so, in the aggregate, could not reasonably
be expected to result in a Material Adverse Effect.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Section 5.09. Use of Proceeds.
      The proceeds of the Loans will be used only (a) to pay amounts payable under
      the Acquisition Documents as consideration for the Acquisition, (b) to consummate
      the Other Debt Refinancings (provided that any proceeds that will
      be so applied on a date other than the Acquisition Date shall be held on
      Borrowers balance sheet until so applied) and (c) to pay fees, expenses
      and taxes, if any, payable in connection with the Transactions. No part
      of the proceeds of any Loan will be used, directly or indirectly, for any
      purpose that entails a violation of any of the Regulations of the Federal
      Reserve Board, including Regulations U and X.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Section
5.10. Further Assurances. From time to time, the Borrower and its Subsidiaries
shall do and perform any and all acts and execute any and all documents as may
be reasonably necessary pursuant to applicable law in order to effect the
purposes of this Agreement or to protect the rights or remedies of the Lenders
under the Loan Documents.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Section
5.11. Covenants During Bridge Period. During the Bridge Period, the Borrower
shall comply with the covenants set forth in Sections 5.02(c), 6.03, 6.09 (other
than items (ii) through (v) of clause (f) thereof), 6.10, 6.11, 6.12 (other than
the proviso of clause (iii) thereof) and 6.13 of the Other Loan Agreement as if
such covenants and any related definitions were set forth in full herein. No
waiver, amendment or modification of any such covenant or any defined term used
therein shall be effective, for purposes of this Agreement, unless consented to
in writing by the Required Lenders under this Agreement pursuant to Section
9.02(b).
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|ARTICLE 6 
      NEGATIVE COVENANTS
|-----------------------------------





|Until all
the Commitments have expired or terminated and the principal of and interest on
each Loan and all fees payable hereunder have been paid in full, the Borrower
covenants and agrees with the Lenders that:
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Section
6.01. Liens. Neither the Borrower nor any of its Subsidiaries will create or
permit to exist any Lien on any property now owned or hereafter acquired by it,
or assign or sell any income or revenues (including accounts receivable) or
rights in respect of any thereof, except:
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (i)
any Lien on any property of the Borrower or any of its Subsidiaries existing  on date
hereof and listed in Schedule 6.01;
| | -----------------------------------------------------------------------------------------------------------------------------



| | (ii)
Liens imposed by law for taxes that are not yet due or are being contested in  good faith
by appropriate proceedings and for which appropriate
| | ---------------------------------------------------------------------------------------------------------------------------------------------------



| | 45 | 
| | -- | 



---





| | reserves (if
any) required in accordance with Applicable GAAP have been made in the financial
statements of the Borrower and its Subsidiaries;
| | ----------------------------------------------------------------------------------------------------------------------------------------------



| | (iii)
Liens arising in the ordinary course of the business of the Borrower or any of  its
Subsidiaries that (A) do not secure Debt, (B) do not secure any obligation  in an amount
exceeding US$10,000,000 and (C) do not materially detract from the  value of the affected
property, or interfere with the ordinary conduct of  business, of the Borrower or any of
its Subsidiaries;
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (iv)
deposits to secure the performance of bids, trade contracts, leases, statutory
obligations, performance bonds and other obligations of a like nature (excluding  items
described in clause (vi) below), in each case in the ordinary course of  business;
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (v)
carriers, warehousemens, mechanics, materialmens,  repairmens
and other like Liens imposed by law, arising in the ordinary  course of business and
securing obligations that are not overdue by more than 60  days or are being contested in
good faith by appropriate proceedings and for  which appropriate reserves (if any) have
been made in the financial statements  of the Borrower and its Subsidiaries;
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (vi)
judgment liens in respect of judgments that do not constitute an Event of  Default under
clause (k) of Article 7 and any deposits to secure surety and  appeal bonds with respect
to judgments or orders, in the ordinary course of  business and not representing
obligations of the relevant Person exceeding  US$50,000,000 (or its equivalent in any
other currency);
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (vii)
easements, zoning restrictions, rights-of-way and similar encumbrances on real  property
imposed by law or arising in the ordinary course of business that do  not secure any
monetary obligation and do not materially detract from the value  of the affected
property or interfere with the ordinary conduct of business of  the Borrower or any of
its Subsidiaries;
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (viii) Liens on cash
      and cash equivalents securing obligations of the Borrower under Interest
      and Currency Hedges of the Borrower; provided that the aggregate
      amount of cash and cash equivalents subject to such Liens may at no time
      exceed US$75,000,000 (or the equivalent thereof in any other currency);
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (ix)
Liens incurred or deposits made in the ordinary course of business in connection  with
workers compensation, unemployment insurance and other types of  social security;
and
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (x) Liens not otherwise
      permitted by the foregoing clauses of this Section 6.01 securing Debt or
      other obligations, provided that the Specified Priority Debt Amount
      shall at no time exceed the greater of (A) 20% of Consolidated Tangible
      Assets determined at such time and (B) US$570,000,000.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Section 6.02.Fundamental Changes. (a) The Borrower will not merge into or consolidate with any other
Person, or liquidate or dissolve, permit any other Person to merge into or consolidate
with it or permit any of its Subsidiaries to liquidate or dissolve, except that, if at
the time thereof and immediately after giving effect thereto no Default
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 46 | 
| | -- | 



---





|shall have occurred and be continuing, (i) any
Person  may merge into the Borrower in a transaction in which the Borrower is the
surviving Person and (ii) any Subsidiary of the Borrower may liquidate or  dissolve if
the Borrower determines in good faith that such liquidation or  dissolution is in the
best interests of the Borrower and is not materially  disadvantageous to the Lenders.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(b)
Without limitation of any provision of Section 6.10 of the Other Loan Agreement
as such Section is incorporated by reference into this Agreement through Section
5.11 hereof, the Borrower will not, and will not permit any of its Subsidiaries
to, sell, transfer, lease or otherwise dispose of (i) all or substantially all
of the property (including Equity Interests) of the Borrower and its
Subsidiaries, taken as a whole, pursuant to any transaction or series of related
transactions or (ii) all or any substantial portion of, the property (including
Equity Interests) owned by the Borrower and its Subsidiaries, taken as a whole,
pursuant to any transaction or series of related transactions, except in the
case of this clause (ii) for any such sale, transfer, lease or disposition (A)
from a Subsidiary of the Borrower to the Borrower or another of its
Subsidiaries, (B) pursuant to any Asset Swap or (C) the net proceeds of which
are applied within 180 days thereafter to (x) the acquisition of long-term
assets to be used in the existing lines of business of the Borrower or any
Subsidiary (including through the acquisition of Equity Interests of any Person
owning such long-term assets) or (y) the permanent repayment of Loans or any
other Debt of the Borrower or its Subsidiaries (other than Debt of the Borrower
or any of its Subsidiaries owed to the Borrower or one or more of its
Subsidiaries).
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(c)
Neither the Borrower nor any Material Subsidiary will engage to any material
extent in any business except businesses of the types conducted by the Borrower
and its Material Subsidiaries on the Borrowing Dates (including the production,
distribution or sale of soft drinks, beer, juices, water and other beverages)
and businesses reasonably related thereto.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Section
6.03. Transactions with Affiliates. No KOF Company will sell, lease or otherwise
transfer any property to, or purchase, lease or otherwise acquire any property
from, or otherwise engage in any other transaction with, any of its Affiliates,
except (a) transactions that are at prices and on terms and conditions not less
favorable to such KOF Company than could be obtained on an arms-length
basis from unrelated third parties, (b) any Restricted Payments, (c)
transactions (including Debt Transactions) between or among any KOF Company and
The Coca Cola Company or any of its Subsidiaries and (d) any issuance of any
Equity Interest by any KOF Company to, or the receipt directly or indirectly by
any KOF Company of any capital contribution from, FEMSA.
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Section 6.04.Restrictive
      Agreements. Neither the Borrower nor any of its Subsidiaries will, directly
      or indirectly, enter into or permit to exist any agreement or other arrangement
      that prohibits, restricts or imposes any condition on the ability of any
      Subsidiary of the Borrower to pay dividends or other distributions with
      respect to any shares of its capital stock or to make or repay loans or
      advances to the Borrower or any of its Subsidiaries or to Guarantee the
      Loans or other obligations under the Loan Documents; provided that
      (i) the foregoing shall not apply to restrictions and conditions imposed
      by law or by any Loan Document, (ii) the foregoing shall not apply to restrictions
      and conditions existing on the date hereof and identified on Schedule 6.04
      (but shall apply to any amendment or modification expanding the scope of
      any such restriction or condition), (iii) the foregoing shall not apply
      to customary restrictions and
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 47 | 
| | -- | 



---





|conditions contained in agreements relating to the sale
      of a Subsidiary of the Borrower pending such sale, provided that
      such restrictions and conditions apply only to such Subsidiary that is to
      be sold and such sale is permitted hereunder and (iv) the foregoing shall
      not apply to shareholder agreements and similar restrictions with respect
      to any non-wholly-owned Subsidiary of the Borrower that is not organized
      under the laws of, and does not have a substantial portion of its assets
      (directly or indirectly, through any of its Subsidiaries) located in, Mexico
      (a Foreign Joint Venture), provided that (A) any
      such restrictions on dividends and distributions shall in any event permit
      the Borrower or its other Subsidiaries to declare annual dividends or distributions
      in an amount of at least 30% of such Foreign Joint Ventures annual
      consolidated net income, determined in accordance with generally accepted
      accounting principles then in effect in the jurisdiction in which such Foreign
      Joint Venture is organized, and (B) immediately after giving effect to any
      Joint Venture Investment Event with respect to any Foreign Joint Venture,
      the aggregate Asset Amount of all Joint Venture Investment Events does not
      exceed 15% of the consolidated total assets of the Borrower and its consolidated
      Subsidiaries at such time, determined for this purpose exclusive of minority
      interests in consolidated Subsidiaries of the Borrower held by Persons other
      than the Borrower and its consolidated Subsidiaries, and otherwise in accordance
      with Mexican GAAP.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|As used in this
Section 6.04:
|-----------------------------



| | Joint
Venture Investment Event means (i) the transaction pursuant to which any Person
becomes a Foreign Joint Venture, including without limitation by acquisition by any KOF
Company of a portion of such Persons capital stock or the issuance by any
Subsidiary of the Borrower of a portion of its capital stock to a Person other than
another KOF Company, and (ii) (after any event described in clause (i)) the making of
any Investment in a Foreign Joint Venture or any of its Subsidiaries by any KOF Company
other than such Foreign Joint Venture or any of its Subsidiaries.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | Asset
Amount means with respect to any Joint Venture Investment Event, (A) in the case
of any Joint Venture Investment Event under clause (i) of the definition thereof, the
consolidated total assets of such Foreign Joint Venture and its consolidated
Subsidiaries (adjusted to reflect minority ownership by Persons other than a KOF
Company) immediately after giving effect to such transaction, and (B) in the case of any
Joint Venture Investment Event under clause (ii) of the definition thereof, the
aggregate amount of the assets comprising such Investment (including without limitation
the amount of any cash advanced or contributed as a capital contribution), determined,
in the case of each of (A) and (B), at the book value thereof at the time of such Joint
Venture Investment Event in accordance with Mexican GAAP, and, in the case of any Joint
Venture Investment Event in a currency other than Pesos, stated in Pesos at the spot
rate for the conversion of such other currency into Pesos at the time of such Joint
Venture Investment Event.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Section
6.05. Interest Expense Coverage Ratio. The Borrower will not permit the ratio of
(a) Consolidated EBITDA to (b) Consolidated Interest Expense, in each case for
any period of four consecutive Fiscal Quarters ending during any Fiscal Year set
forth below, to be less than the ratio set forth below opposite such period:
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 48 | 
| | -- | 



---



| | Fiscal Year |  | Ratio | 
| | ----------- |  | ----- | 
| | 2003        |  | 3.00  | 
| | 2004        |  | 3.00  | 
| | 2005        |  | 3.25  | 
| | 2006        |  | 3.50  | 
| | 2007        |  | 3.50  | 
| | 2008        |  | 3.75  | 



|Section 6.06.Leverage
      Ratio. The Borrower will not permit the Leverage Ratio at any time during
      any period set forth below to exceed the ratio set forth opposite such period:
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Fiscal Year |  | Ratio | 
| | ----------- |  | ----- | 
| | 2003        |  | 3.50  | 
| | 2004        |  | 3.25  | 
| | 2005        |  | 3.00  | 
| | 2006        |  | 3.00  | 
| | 2007        |  | 2.75  | 
| | 2008        |  | 2.50  | 



|Section 6.07.Subsidiary
      Debt. The Borrower will not permit any of its Subsidiaries to create,
      incur, assume or permit to exist any Debt, except:
|------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (i)
Debt of any Subsidiary of the Borrower to the Borrower or any of its other  Subsidiaries;
and
| | -------------------------------------------------------------------------------------------------



| | (ii)
Debt of any Subsidiary of the Borrower not otherwise permitted by the foregoing
provision of this Section 6.07, provided that (i) the Specified Priority Debt Amount at
no time exceeds the greater of (A) 20% of Consolidated Tangible Assets determined at
such time and (B) US$570,000,000 and (ii) no Debt of any Subsidiary under the Coca-Cola
Facility shall by its terms mature prior to the Bridge Maturity Date (as defined in the
Other Loan Agreement).
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|ARTICLE 7 
      EVENTS OF DEFAULT
|----------------------------------





|Section 7.01. Events Of
      Default. If any of the following events (Events of Default)
      shall occur:
|--------------------------------------------------------------------------------------------------------------



|(a) the
Borrower shall fail to pay any principal of any Loan when the same shall become
due, whether at the due date thereof or at a date fixed for prepayment thereof
or otherwise;
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(b) the
Borrower shall fail to pay when due any interest on any Loan or any fee or other
amount (except an amount referred to in clause (a) above) payable under any Loan
Document, and such failure shall continue unremedied for a period of three
Business Days;
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(c) any
representation or warranty made or deemed made by or on behalf of the Borrower  in any
Loan Document or any amendment or modification thereof or waiver  thereunder, or in any
report, certificate, financial statement or other document
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 49 | 
| | -- | 



---





|furnished pursuant to any Loan Document or any
amendment or modification thereof  or waiver thereunder, shall prove to have been
incorrect in any material respect  when made or deemed made;
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(d) the
Borrower shall fail to observe or perform any covenant or agreement contained in
Section 5.02, 5.03 (with respect to the existence of the Borrower), 5.09 or 5.11
or in Article 6;
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(e) the
Borrower or any of its Subsidiaries shall fail to observe or perform any
covenant or agreement contained in any Loan Document (other than those specified
in clause (a), (b) or (d) above), and such failure shall continue unremedied for
a period of 30 days after notice thereof from the Administrative Agent to the
Borrower (which notice will be given at the request of any Lender);
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(f) any
KOF Company shall fail to make a payment or payments (whether of principal or
interest and regardless of amount) in respect of Material Debt when the same
shall become due, whether at the due date thereof or at a date fixed for
prepayment thereof or otherwise and such failure shall have continued after any
grace period applicable pursuant to the relevant agreement;
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(g) (i) any event or condition
      occurs or continues (after the passage of any grace period applicable pursuant
      to the relevant agreement) that results in Material Debt becoming due before
      its scheduled maturity, or requires the prepayment, repurchase, redemption
      or defeasance thereof, before its scheduled maturity or (ii) any event or
      condition occurs and continues for the lesser of (x) 45 days after the passage
      of any grace period applicable pursuant to the relevant agreement and (y)
      60 days in the case of any credit agreements, loan agreements or other facilities
      placed with banks or similar lenders in the syndicated loan market or otherwise,
      and 90 days in the case of any other Material Debt, and in either case that
      enables or permits the holder or holders of Material Debt or any trustee
      or agent on its or their behalf to cause such Material Debt to become due,
      or to require the prepayment, repurchase, redemption or defeasance thereof,
      before its scheduled maturity; provided that clauses (i) and (ii)
      above shall not apply to secured Debt that becomes due as a result of a
      voluntary sale or transfer of the property securing such Debt;
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(h) an involuntary proceeding
      shall be commenced or an involuntary petition shall be filed seeking (i)
      liquidation, reorganization or other relief in respect of the Borrower or
      any Material Subsidiary or its debts, or of a substantial part of its assets,
      under any Federal, state or foreign bankruptcy, concurso mercantil,
      insolvency, receivership or similar law now or hereafter in effect or (ii)
      the appointment of a receiver, trustee, síndico, conciliador,
      custodian, sequestrator, conservator or similar official for the Borrower
      or any Material Subsidiary or for a substantial part of its respective assets,
      and, in any such case, such proceeding or petition shall continue undismissed
      for 60 days or an order or decree approving or ordering any of the foregoing
      shall be entered; or an order for relief shall be entered against the Borrower
      or any Material Subsidiary under any applicable bankruptcy laws as now or
      hereafter in effect (including the Ley de Concursos Mercantiles);
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(i) the Borrower
or any Material Subsidiary shall (i) voluntarily commence any proceeding or file any
petition seeking liquidation, reorganization or other relief under any Federal, state or
foreign bankruptcy, concurso mercantil, insolvency,
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 50 | 
| | -- | 



---





|receivership or similar law now or hereafter in effect,
      (ii) consent to the institution of, or fail to contest in a timely and appropriate
      manner, any proceeding or petition described in clause (h) above, (iii)
      apply for or consent to the appointment of a receiver, trustee, síndico,
      conciliador, custodian, sequestrator, conservator or similar official
      for the Borrower or any Material Subsidiary or for a substantial part of
      its respective assets, (iv) file an answer admitting the material allegations
      of a petition filed against it in any such proceeding, (v) make a general
      assignment for the benefit of creditors or (vi) take any action for the
      purpose of effecting any of the foregoing;
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(j) the
      Borrower shall become unable, admit in writing its inability or fail generally
      to pay its debts as they become due;
|---------------------------------------------------------------------------------------------------------------------------------------

|(k)
either (i) one or more judgments for the payment of money in an aggregate amount
exceeding US$25,000,000 (or its equivalent in any other currency) shall be
rendered against one or more KOF Companies and shall remain undischarged for a
period of 60 consecutive days during which execution shall not be effectively
stayed, or (ii) a judgment shall have attached or been levied upon any asset
with a value exceeding US$25,000,000;
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(l) (i)
any Governmental Authority shall declare a moratorium or other type of order
that affects payments or obligations under the Loan Documents, (ii) any
Governmental Authority shall take any action that restricts or has the effect of
restricting (A) the exchange of Pesos for Dollars, (B) the transfer of funds
outside of Mexico or (C) the transfer of Pesos within or outside of Mexico, or
affects the schedule of payments of Loans, or limits the foregoing to impair the
practical ability of the Borrower to pay its obligations under the Loan
Documents in US Dollars or Pesos, as required, or (iii) the Borrower shall
voluntarily or involuntarily seek the rescheduling of its debts or the
restructuring or restatement of the currency in which it may pay its obligations
by participating in, or by being required to participate in, any facility or
exercise that is sponsored or mandated, or in which participation is effectively
required, by any Governmental Authority in Mexico;
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(m) the
Borrower or any of its Subsidiaries shall fail to pay when due any and all
amounts payable as required under IMSS, INFONAVIT, or SAR, except to the extent
that such payments are disputed in good faith through appropriate proceedings
and proper reserves therefor are maintained by the relevant Person or Persons,
or the outstanding amount of such due but unpaid payments does not in the
aggregate exceed at any time US$10,000,000;
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(n) a Change in
Control shall occur; or
|---------------------------------------



|(o) the
Dollar Borrowing Date shall not occur on or prior to the second LIBO Business
Day after the Peso Borrowing Date;
|------------------------------------------------------------------------------------------------------------------------



|then, and  in every such event (except an event
with respect to the Borrower described in  clause (h) or (i) above), and at any time
thereafter during the continuance of  such event, the Administrative Agent may, and at
the request of the Required  Lenders shall, by notice to the Borrower, take either or
both of the following  actions, at the same or different times: (i) terminate the
Commitments, and  thereupon the Commitments shall terminate immediately, and (ii) declare
the  Loans then outstanding to be due and payable in whole (or in part, in which case
any principal not so declared to be due and payable may
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 51 | 
| | -- | 



---





|thereafter be declared  to be due and payable),
and thereupon the principal of the Loans so declared to  be due and payable, together
with accrued interest thereon and all fees and  other obligations of the Borrower accrued
hereunder, shall become due and  payable immediately, without presentment, demand,
protest or other notice of any  kind, all of which are waived by the Borrower; and in the
case of any event with  respect to the Borrower described in clause (h) or (i) above, the
Commitments  shall automatically terminate and the principal of the Loans then
outstanding,  together with accrued interest thereon and all fees and other obligations
of the  Borrower accrued hereunder, shall automatically become due and payable, without
presentment, demand, protest or other notice of any kind, all of which are  waived by the
Borrower.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|ARTICLE 8 
      THE AGENTS
|---------------------------





|Section
8.01. Appointment and Authorization. Each Lender Party irrevocably appoints the
Administrative Agent and, in the case of each Peso Lender, the Mexican
Administrative Agent, as its agent and authorizes the Administrative Agent and,
if applicable, the Mexican Administrative Agent to take such actions on its
behalf and to exercise such powers as are delegated to the Administrative Agent
or the Mexican Administrative Agent, as applicable, by the terms of the Loan
Documents, together with such actions and powers as are reasonably incidental
thereto.
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Section
8.02. Rights and Powers as a Lender. A bank serving as an Agent shall, in its
capacity as a Lender, have the same rights and powers as any other Lender and
may exercise the same as though it were not an Agent. Such bank and its
Affiliates may accept deposits from, lend money to and generally engage in any
kind of business with any KOF Company or Affiliate thereof as if it were not an
Agent.
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Section 8.03.Limited
      Duties and Responsibilities. No Agent shall have any duties or obligations
      except those expressly set forth with respect to such Agent in the Loan
      Documents. Without limiting the generality of the foregoing, (a) no Agent
      shall be subject to any fiduciary or other implied duties, regardless of
      whether a Default has occurred and is continuing, (b) no Agent shall have
      any duty to take any discretionary action or exercise any discretionary
      powers, except discretionary rights and powers expressly contemplated by
      the Loan Documents that the Administrative Agent or the Mexican Administrative
      Agent is required in writing to exercise by the Required Lenders (or such
      other number or group of the Lenders as shall be necessary under the circumstances
      as provided in Section 9.02) and (c) except as expressly set forth in the
      Loan Documents, no Agent shall have any duty to disclose, and shall not
      be liable for any failure to disclose, any information relating to any KOF
      Company that is communicated to or obtained by the bank serving as an Agent
      or any of its Affiliates in any capacity. No Agent shall be liable for any
      action taken or not taken by it with the consent or at the request of the
      Required Lenders (or such other number or group of the Lenders as shall
      be necessary under the circumstances as provided in Section 9.02) or in
      the absence of its own gross negligence or willful misconduct. The Administrative
      Agent shall be deemed not to have knowledge of any Default unless and until
      written notice thereof is given to the Administrative Agent by the Borrower
      or a Lender, and no Agent shall be responsible for or have any duty to ascertain
      or inquire into (i) any statement, warranty or representation made in or
      in connection with any Loan Document, (ii) the contents of any certificate,
      report or other document delivered thereunder or in connection therewith,
      (iii)
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 52 | 
| | -- | 



---





|the performance or observance of any of the
covenants, agreements or other terms or conditions set forth in any Loan  Document, (iv)
the validity, enforceability, effectiveness or genuineness of any  Loan Document or any
other agreement, instrument or document or (v) the  satisfaction of any condition set
forth in Article 4 or elsewhere in any Loan  Document, other than, in the case of the
Administrative Agent, to confirm  receipt of items expressly required to be delivered to
the Administrative Agent.  Without limitation of the foregoing, the Syndication Agent
shall have no  obligations, duties or responsibilities whatsoever under the Loan
Documents.
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Section
8.04. Authority to Rely on Certain Writings, Statements and Advice. Each Agent
shall be entitled to rely on, and shall not incur any liability for relying on,
any notice, request, certificate, consent, statement, instrument, document or
other writing believed by it to be genuine and to have been signed or sent by
the proper Person. Each Agent also may rely on any statement made to it orally
or by telephone and believed by it to be made by the proper Person, and shall
not incur any liability for relying thereon. Each Agent may consult with legal
counsel (who may be counsel for any KOF Company), independent accountants and
other experts selected by it, and shall not be liable for any action taken or
not taken by it in accordance with the advice of any such counsel, accountants
or experts.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Section
8.05. Sub-Agents and Related Parties. The Administrative Agent or Mexican
Administrative Agent may perform any and all of its duties and exercise its
rights and powers by or through one or more sub-agents appointed by it. The
Administrative Agent or Mexican Administrative Agent, as applicable, and any
such sub-agent may perform any and all of the duties of the Administrative Agent
or Mexican Administrative Agent, as applicable, and exercise the rights and
powers of the Administrative Agent or Mexican Administrative Agent, as
applicable, through their respective Related Parties. The exculpatory provisions
of the preceding Sections of this Article shall apply to any such sub-agent and
to the Related Parties of the Agents and any such sub-agent, and shall apply to
activities in connection with the syndication of the credit facilities provided
for herein as well as activities as Agent.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Section 8.06.Resignation;
      Successor Administrative Agents. Subject to the appointment and acceptance
      of a successor Administrative Agent or Mexican Administrative Agent, as
      applicable, as provided in this Section, the Administrative Agent or Mexican
      Administrative Agent may resign at any time by giving at least 15 Business
      Days advance notice to the Borrower and the Administrative Agent or
      Mexican Administrative Agent, as applicable, and 10 Business Days
      advance notice to the Lenders. Upon any such resignation by the Administrative
      Agent, Lenders holding more than 50% of the aggregate outstanding principal
      amount of the Dollar Loans shall have the right, acting jointly and with
      the consent of the Borrower, to appoint a successor Administrative Agent.
      Upon any such resignation by the Mexican Administrative Agent, Lenders holding
      more than 50% of the aggregate outstanding principal amount of the Peso
      Loans shall have the right, with the consent of the Borrower, to appoint
      a successor Mexican Administrative Agent. If no successor Administrative
      Agent or Mexican Administrative Agent (as applicable) shall have been so
      appointed and shall have accepted such appointment within 30 days after
      the retiring Administrative Agent or Mexican Administrative Agent (as applicable)
      gives notice of its resignation, then the retiring Administrative Agent
      or Mexican Administrative Agent (as applicable) may, on behalf of the Lenders,
      appoint a successor Administrative Agent or Mexican Administrative Agent
      (as applicable), which shall be (i) in the case of the Administrative
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 53 | 
| | -- | 



---





|Agent, a bank with an office in New York, New
York,  or an Affiliate of any such bank and (ii) in the case of the Mexican
Administrative Agent, a Mexican Bank with an office in Mexico City, or an  Affiliate of
any such Person. Upon acceptance of its appointment as  Administrative Agent or Mexican
Administrative Agent, as applicable, by a  successor, such successor shall succeed to and
become vested with all the  rights, powers, privileges and duties of the retiring Agent,
and the retiring  Agent shall be discharged from its duties and obligations hereunder.
The fees  payable by the Borrower to any such successor Administrative Agent or Mexican
Administrative Agent (as applicable) shall be the same as those payable to its
predecessor unless otherwise agreed by the Borrower and such successor. After  any
Administrative Agents or Mexican Administrative Agents  resignation
hereunder, the provisions of this Article and Section 9.03 shall  continue in effect for
the benefit of such retiring Agent, its sub-agents and  their respective Related Parties
in respect of any actions taken or omitted to  be taken by any of them while the retiring
Agent was acting as Administrative  Agent or Mexican Administrative Agent, as applicable.
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Section
8.07. Credit Decisions by Lenders. Each Lender acknowledges that it has,
independently and without reliance on any Agent or any other Lender and based on
such documents and information as it has deemed appropriate, made its own credit
analysis and decision to enter into this Agreement. Each Lender also
acknowledges that it will, independently and without reliance on any Agent or
any other Lender and based on such documents and information as it shall from
time to time deem appropriate, continue to make its own decisions in taking or
not taking action under or based on this Agreement, any other Loan Document or
related agreement or any document furnished hereunder or thereunder.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|ARTICLE 9 
      MISCELLANEOUS
|------------------------------





|Section
9.01. Notices. Except in the case of notices and other communications expressly
permitted to be given by telephone, all notices and other communications
provided for herein shall be in writing and shall be delivered by hand or
overnight courier service, mailed by certified or registered mail or sent by
telecopy, as follows:
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(a) if to the
Borrower, to it at Guillermo González Camarena No. 600,  Colonia Centro de Ciudad
de Santa Fe, México, D.F, Mexico 01210,  Attention: Héctor Treviño
Gutiérrez, Chief Financial  Officer, (Telecopy No. 52-55-5292-3475) and Carlos
Aldrete Ancira, Secretary of  the Board of Directors, (Telecopy No. 528-18-328-6181);
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(b) if to the Administrative
      Agent, to JPMorgan Chase Bank, 1111 Fannin, 10th Floor,
      Houston, Texas 77002, Attention of Leah E. Hughes (Telecopy No. 713-750-2452)
      (or, in the case of any notice by email for purposes of Section 5.01(d)
      only, Leah.E.Hughes@jpmorgan.com);
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(c) if to the
Mexican Administrative Agent, to Banco J.P. Morgan, S.A.,  Institución de Banca Múltiple,
J.P. Morgan Grupo Financiero,  División Fiduciaria, Paseo de las Palmas 405, 15th
Floor, C.P. 11000,  Mexico City, Mexico, Attention of David R. Jaime (Telecopy No.
52-55-5283-1620);  and
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 54 | 
| | -- | 



---





|(d) if to any
other Lender, to it at its address (or telecopy number) set forth  in its Administrative
Questionnaire.
|---------------------------------------------------------------------------------------------------------------------



|Any party
hereto may change its address or telecopy number for notices and other
communications hereunder by notice to the Administrative Agent, the Mexican
Administrative Agent and the Borrower. All notices and other communications
given to any party hereto in accordance with the provisions of this Agreement
will be deemed to have been given on the date of receipt.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Section
9.02. Waivers; Amendments. (a) No failure or delay by any Lender Party in
exercising any right or power hereunder or under any other Loan Document shall
operate as a waiver thereof, nor shall any single or partial exercise of any
such right or power, or any abandonment or discontinuance of steps to enforce
such a right or power, preclude any other or further exercise thereof or the
exercise of any other right or power. The rights and remedies of the Lender
Parties under the Loan Documents are cumulative and are not exclusive of any
rights or remedies that they would otherwise have. No waiver of any provision of
any Loan Document or consent to any departure by the Borrower therefrom shall in
any event be effective unless the same shall be permitted by subsection (b) of
this Section, and then such waiver or consent shall be effective only in the
specific instance and for the purpose for which given. Without limiting the
generality of the foregoing, the making of a Loan shall not be construed as a
waiver of any Default, regardless of whether any Lender Party had notice or
knowledge of such Default at the time.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(b) This Agreement and any
      provision hereof may not be waived, amended or modified except by an agreement
      or agreements in writing entered into by the Borrower and the Required Lenders;
      provided that no such agreement shall:
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (i)
increase the Commitment of any Lender without its written consent;
| | ----------------------------------------------------------------------



| | (ii)
reduce the principal amount of any Loan or reduce the rate of interest thereon,  or
reduce any fee payable hereunder, without the written consent of each Lender  holding
Loans of such Tranche (and such agreement shall not otherwise require  the consent of the
Required Lenders);
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (iii)
postpone the maturity of any Loan, or any scheduled date of payment of the  principal
amount of any Tranche B Loan or Peso Loan under Section 2.07, or any  date for the
payment of any interest or fee payable hereunder, or reduce the  amount of, waive or
excuse any such payment, or postpone the scheduled date of  expiration of any Commitment,
without the written consent of each Lender holding  the Loan or Loans the terms of which
are affected thereby;
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (iv)
change Section 2.15(b) or Section 2.15(c) in a manner that would alter the pro  rata
sharing of payments required thereby, or change Section 2.17 without the  written consent
of each Lender;
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (v)
change any provision of Section 2.03(b) or the definition of Initial Peso  Exchange
Rate without the consent of each Peso Lender (and such agreement  shall not
otherwise require the consent of the Required Lenders); or
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 55 | 
| | -- | 



---





| | (vi)
change any provision of this Section or the percentage set forth in the  definition of
Required Lenders or any other provision of this  Agreement specifying the
number or percentage of Lenders (or Lenders of any  Tranche or Tranches) required to take
any action thereunder, without the written  consent of each Lender, or each Lender of
such Tranche or Tranches, as the case  may be;
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|provided further that (A) no such agreement
shall amend, modify or otherwise affect the rights or duties of any Agent without its
prior written consent and (B) any waiver, amendment or modification of this Agreement
that by its terms affects the rights or duties under this Agreement of the Lenders of
any Tranche of Loans (but not all Tranches) may be effected by an agreement or
agreements in writing entered into by the Borrower and the requisite percentage in
interest of the affected Lenders that would be required to consent thereto under this
Section if such Lenders were the only Lenders hereunder at the time.
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(c)
Notwithstanding the foregoing, if the Required Lenders enter into or consent to
any waiver, amendment or modification pursuant to subsection (b) of this
Section, no consent of any other Lender will be required if, when such waiver,
amendment or modification becomes effective, (i) the Commitment of each Lender
not consenting thereto terminates and (ii) all amounts owing to it or accrued
for its account hereunder are paid in full.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(d) If,
within 90 days after the effectiveness of any Required Lender Amendment (as
defined below), (i) the Borrower optionally prepays a principal amount of the
Loans of any Tranche by more than 75% of the aggregate principal amount thereof
outstanding at the time such Required Lender Amendment became effective (other
than pursuant to a prepayment of all Loans of all Tranches pro rata in
accordance with their respective outstanding principal amounts) and (ii) such
Required Lender Amendment was not approved by the Required Lenders determined,
solely for purposes of this clause (ii), after giving effect to the optional
prepayment under clause (i) above, then such Required Lender Amendment shall
have no further force or effect from and after the 30th day after the date of
the prepayment under clause (i) above unless within such 30-day period the
Required Lenders as so determined after giving effect to such prepayment shall
have consented in writing to such amendment or waiver pursuant to Section
9.02(a). As used herein, a Required Lender Amendment means a waiver,
amendment or modification of this Agreement effected by an agreement in writing
entered into by the Borrower and the Required Lenders pursuant to clause (b)
above, but excluding any such waiver, amendment or modification described in the
provisos thereto.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Section 9.03. Expenses;
      Indemnity; Damage Waiver. (a) The Borrower shall pay (i) all reasonable
      and documented out-of-pocket expenses incurred by the Administrative Agent,
      the Mexican Administrative Agent and their respective Affiliates, including
      the reasonable and documented fees, charges and disbursements of special
      New York and Mexican counsel for the Agents, in connection with the syndication
      of the credit facilities provided for herein, the preparation and administration
      of the Loan Documents and any amendments, modifications or waivers of the
      provisions thereof (whether or not the transactions contemplated hereby
      or thereby shall be consummated) and (ii) all reasonable and documented
      out-of-pocket expenses incurred by any Lender Party, including the fees,
      charges and disbursements of any counsel for any Lender Party, in connection
      with the enforcement or protection of its rights in connection with the
      Loan Documents (including its rights under this Section) or the Loans, including
      all such out-
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 56 | 
| | -- | 



---





|of-pocket expenses incurred during any workout,
restructuring or  negotiations in respect of the Loans.
|-------------------------------------------------------------------------------------------------------



|(b) The Borrower shall indemnify
      each of the Lender Parties and their respective Related Parties (each such
      Person being called an Indemnitee) against, and hold
      each Indemnitee harmless from, any and all losses, claims, damages, liabilities
      and related expenses, including the reasonable and documented fees, charges
      and disbursements of counsel for any Indemnitee, incurred by or asserted
      against any Indemnitee arising out of, in connection with, or as a result
      of (i) the execution or delivery of any Loan Document or any other agreement
      or instrument contemplated hereby, the performance by the parties to the
      Loan Documents of their respective obligations thereunder or the consummation
      of the Transactions or any other transactions contemplated hereby, (ii)
      any Loan or the use of the proceeds therefrom, or (iii) any actual or prospective
      claim, litigation, investigation or proceeding relating to any of the foregoing,
      whether based on contract, tort or any other theory and regardless of whether
      any Indemnitee is a party thereto; provided that such indemnity shall
      not be available to any Indemnitee to the extent that such losses, claims,
      damages, liabilities or related expenses resulted (x) from such Indemnitees
      gross negligence or willful misconduct, (y) pursuant to a dispute between
      Indemnitees and not predicated in any substantial manner on actions or failures
      to act by the Borrower or (z) solely in the case of any Affiliate of JPMorgan
      Chase Bank or Morgan Stanley Senior Funding Inc. (but not JPMorgan Chase
      Bank or Morgan Stanley Senior Funding Inc.), pursuant to a dispute involving
      such Affiliate arising solely in such Affiliates Related Transaction
      Capacity and not predicated in any substantial manner on the Loan Documents,
      the Other Loan Documents or any commitment letter or other agreement preliminary
      or incidental to the Loan Documents and Other Loan Documents. As used above,
      a matter is within the Related Transaction Capacity of
      an Affiliate of JPMorgan Chase Bank or Morgan Stanley Senior Funding Inc.
      if, in taking or failing to take any action, such Affiliate was acting pursuant
      to its engagement by one of the parties to the Acquisition as financial
      advisor, and not pursuant to or related to the role of JPMorgan Chase Bank
      or Morgan Stanley Senior Funding Inc. or any of their respective Affiliates
      as an Agent, Co-Lead Arranger and Joint Bookrunner, Lender or similar capacity
      with respect to the Loan Documents, the Other Loan Documents or any commitment
      letter or other agreement preliminary or incidental to the Loan Documents
      and Other Loan Documents.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(c) To the extent that the
      Borrower fails to pay any amount required to be paid by it to the Administrative
      Agent or Mexican Administrative Agent under subsection (a) or (b) of this
      Section, each Lender severally agrees to pay to the Administrative Agent
      and/or Mexican Administrative Agent, as applicable, such Lenders pro
      rata share (determined as of the time that the applicable unreimbursed expense
      or indemnity payment is sought) of such unpaid amount; provided that
      the unreimbursed expense or indemnified loss, claim, damage, liability or
      related expense, as the case may be, was incurred by or asserted against
      the Administrative Agent and/or the Mexican Administrative Agent, as the
      case may be, in their capacity as such. For purposes hereof, a Lenders
      pro rata share shall be determined based on the proportion
      of the aggregate Dollar Amount of all Loans represented by the aggregate
      Dollar Amount of such Lenders Loan or Loans at such time (or, if the
      Borrowing Dates have not occurred, of the aggregate Commitments represented
      by its Commitment or Commitments), all determined on the date on which such
      claim arose, as determined in the sole good faith discretion of such Agent.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 57 | 
| | -- | 



---





|(d) To
the extent permitted by applicable law, the Borrower shall not assert, and
hereby waives, any claim against any Indemnitee, on any theory of liability, for
special, indirect, consequential or punitive damages (as opposed to direct or
actual damages) arising out of any failure of such Indemnitee to perform its
obligations or undertakings in connection with, or as a result of, this
Agreement or any agreement or instrument contemplated hereby, the Transactions,
any Loan or the use of the proceeds thereof.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(e) All
amounts due under this Section shall be payable within ten Business Days after
written demand therefor setting forth a reasonably detailed explanation as to
the reason for any amounts.
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Section
9.04. Successors and Assigns. (a) The provisions of this Agreement shall be
binding on and inure to the benefit of the parties hereto and their respective
successors and assigns permitted hereby, except that the Borrower may not assign
or otherwise transfer any of its rights or obligations hereunder without the
prior written consent of each Lender (and any attempted assignment or transfer
by the Borrower without such consent shall be null and void). Nothing in this
Agreement, expressed or implied, shall be construed to confer upon any Person
(except the parties hereto, their respective successors and assigns permitted
hereby and, to the extent expressly provided herein, the directors, officers,
employees, agents or advisors of the Lender Parties) any legal or equitable
right, remedy or claim under or by reason of this Agreement.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(b) Any Lender may assign to
      one or more assignees all or a portion of its rights and obligations under
      this Agreement (including all or a portion of any Commitment it has at the
      time and any Loans at the time owing to it); provided that:
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (i)
except in the case of an assignment to a Lender or an Affiliate of a Lender, each of the
Borrower and the Administrative Agent must give their prior written consent to such
assignment (which consent shall not be unreasonably withheld or delayed), provided that
solely for purposes of this clause (b)(i), no collateralized loan obligation fund or
similar Person that purchases or invests in bank loans or similar extensions of credit
and that is managed by a Lender or any of such Lenders other Affiliates shall be
deemed to be an Affiliate of such Lender by virtue of such management;
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (ii)
each  partial assignment shall be made as an assignment of a proportionate part of all
the assigning Lenders rights and obligations under this Agreement, except  that
this clause (ii) shall not prohibit the assignment of a proportionate part  of all the
assigning Lenders rights and obligations in respect of one  Tranche of Commitments
or Loans;
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (iii)
unless each of the Borrower and the Administrative Agent otherwise consent, the amount
of the Commitment or Loans of the assigning Lender subject to each such assignment
(determined as of the date on which the relevant Assignment is delivered to the
Administrative Agent) shall not be less than US$5,000,000 (or, in the case of Peso
Loans, Ps. 50,000,000); provided that this clause (iii) shall not apply to an assignment
to a Lender or an Affiliate of a Lender or an assignment of the entire remaining amount
of the assigning Lenders Commitment or Loans;
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 58 | 
| | -- | 



---





| | (iv)
the parties to each assignment shall execute and deliver to the Administrative Agent an
Assignment, together with a processing and recordation fee of US$2,500 which shall be
paid by the parties to such assignment; provided that only one such fee shall be due in
respect of a simultaneous assignment to more than one Affiliate of a Lender;
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (v)
each such assignee will be either a Mexican Bank or registered as a Foreign Financial
Institution that is resident (or, if applicable, the main office of which is resident)
in a country that has entered into a treaty for the avoidance of double taxation with
Mexico, provided that such registration is required to avoid the imposition of
Indemnified Taxes and Other Taxes covered by Section 2.14 in excess of the rate
applicable to such a registered Foreign Financial Institution or it is otherwise agreed
by such assignee that any amount payable by the Borrower under Section 2.14 to such
assignee shall not be higher than the amount payable to an institution so registered.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (vi)
the assignee, if it shall not be a Lender, shall deliver to the  Administrative Agent a
completed Administrative Questionnaire;
| | ------------------------------------------------------------------------------------------------------------------------------------



|provided that no consent of the Borrower
otherwise required under this clause shall be required if an Event of Default is
continuing at the time of such assignment. Subject to acceptance and recording thereof
pursuant to subsection (d) of this Section, from and after the effective date specified
in each Assignment the assignee thereunder shall be a party hereto and, to the extent of
the interest assigned by such Assignment, have the rights and obligations of a Lender
under this Agreement, and the assigning Lender thereunder shall, to the extent of the
interest assigned by such Assignment, be released from its obligations under this
Agreement (and, in the case of an Assignment covering all of the assigning Lenders
rights and obligations under this Agreement, such Lender shall cease to be a party
hereto but shall continue to be entitled to the benefits of Sections 2.12, 2.13, 2.14
and 9.03). Any assignment or transfer by a Lender of rights or obligations under this
Agreement that does not comply with this subsection shall be treated for purposes of
this Agreement as a sale by such Lender of a participation in such rights and
obligations in accordance with subsection (e) of this Section.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(c) The
Administrative Agent, acting for this purpose as an agent of the Borrower, shall
maintain at one of its offices in New York City a copy of each Assignment
delivered to it and a register for the recordation of the names and addresses of
the Lenders, their respective Commitments and the principal amounts of the Loans
owing to each Lender pursuant to the terms hereof from time to time (the
Register). The entries in the Register shall be conclusive, absent
manifest error, and the parties hereto may treat each Person whose name is
recorded in the Register pursuant to the terms hereof as a Lender for all
purposes of this Agreement, notwithstanding notice to the contrary. The Register
shall be available for inspection by any party hereto at any reasonable time and
from time to time upon reasonable prior notice.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(d) Upon  its
receipt of a duly completed Assignment executed by an assigning Lender and  an assignee,
the assignees completed Administrative Questionnaire (unless  the assignee shall
already be a Lender hereunder), the processing and  recordation fee referred to in
subsection (b) of this Section and any written  consent to such assignment required by
subsection (b) of this Section, the  Administrative Agent shall accept such Assignment
and record the information  contained therein in the Register. No assignment
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 59 | 
| | -- | 



---





|shall be effective for purposes  of this
Agreement unless it has been recorded in the Register as provided in  this subsection.
|-------------------------------------------------------------------------------------------------------------------------------



|(e) Any Lender may, without
      the consent of the Borrower or any other Lender Party, sell participations
      to one or more banks or other entities (Participants)
      in all or a portion of such Lenders rights and obligations under this
      Agreement (including all or a portion of its Commitments and the Loans owing
      to it); provided that (i) such Lenders obligations under this
      Agreement shall remain unchanged, (ii) such Lender shall remain solely responsible
      to the other parties hereto for the performance of such obligations and
      (iii) the Borrower and the other Lender Parties shall continue to deal solely
      and directly with such Lender in connection with such Lenders rights
      and obligations under this Agreement. Any agreement or instrument pursuant
      to which a Lender sells such a participation shall provide that such Lender
      shall retain the sole right to enforce the Loan Documents and to approve
      any amendment, modification or waiver of any provision of the Loan Documents;
      provided that such agreement or instrument may provide that such
      Lender will not, without the consent of the Participant, agree to any amendment,
      modification or waiver described in the first proviso to Section 9.02(b)
      that affects such Participant. Subject to subsection (f) of this Section,
      each Participant shall be entitled to the benefits of Sections 2.12, 2.13,
      and 2.14 to the same extent as if it were a Lender and had acquired its
      interest by assignment pursuant to subsection (b) of this Section. To the
      extent permitted by law, each Participant also shall be entitled to the
      benefits of Section 9.08 as though it were a Lender, provided that
      such Participant agrees to be subject to Section 2.15(c) as though it were
      a Lender.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(f) A
Participant shall not be entitled to receive any greater payment under Section
2.12 or 2.14 than the applicable Lender would have been entitled to receive with
respect to the participation sold to such Participant, unless the sale of the
participation to such Participant is made with the Borrowers prior written
consent.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(g) Any
Lender may at any time pledge or assign a security interest in all or any
portion of its rights under this Agreement to secure obligations of such Lender
to a Federal Reserve Bank, any central bank, or any similar institution and this
Section shall not apply to any such pledge or assignment of a security interest.
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Section
9.05. Survival. All covenants, agreements, representations and warranties made
by the Borrower in the Loan Documents and in certificates or other instruments
delivered in connection with or pursuant to the Loan Documents shall be
considered to have been relied upon by the other parties hereto and shall, from
the date made or entered, survive the execution and delivery of the Loan
Documents and the making of any Loans and shall continue in full force and
effect as long as any principal of or accrued interest on any Loan or any fee or
other amount payable hereunder is outstanding and unpaid or any Commitment has
not expired or terminated. The provisions of Sections 2.12, 2.13, 2.14, 9.03 and
Article 8 shall survive and remain in full force and effect for two years from
the date on which the Commitments have expired or terminated and the principal
of and interest on each Loan have been paid in full.
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Section 9.06.Counterparts; Integration; Effectiveness. This Agreement may be executed in counterparts
(and by different parties hereto on different counterparts), each of which shall
constitute an original, but all of which when taken together shall constitute a single
contract. From and after the Borrowing Dates, this Agreement, the other Loan Documents
and any separate letter agreements with respect to fees payable to the
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 60 | 
| | -- | 



---





|Administrative Agent shall constitute the entire
contract among the parties relating to the subject matter hereof and shall  supersede any
and all previous agreements and understandings, oral or written,  relating to the subject
matter hereof (except, in the case of commitment letters  and similar agreements between
the Borrower and one or more of the Agents and  their affiliates executed solely for the
accounts of the parties thereto).  Except as provided in Section 4.01, this Agreement (i)
will become effective  when the Administrative Agent shall have signed this Agreement and
received  counterparts hereof that, when taken together, bear the signatures of each of
the other parties hereto and (ii) thereafter will be binding upon and inure to  the
benefit of the parties hereto and their respective successors and assigns.  Delivery of
an executed counterpart of a signature page of this Agreement by  telecopy will be
effective as delivery of a manually executed counterpart of  this Agreement.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Section
9.07. Severability. If any provision of any Loan Document is invalid, illegal or
unenforceable in any jurisdiction then, to the fullest extent permitted by law,
(i) such provision shall, as to such jurisdiction, be ineffective to the extent
(but only to the extent) of such invalidity, illegality or unenforceability,
(ii) the other provisions of the Loan Documents shall remain in full force and
effect in such jurisdiction and shall be liberally construed in favor of the
Lender Parties in order to carry out the intentions of the parties thereto as
nearly as may be possible and (iii) the invalidity, illegality or
unenforceability of any such provision in any jurisdiction shall not affect the
validity, legality or enforceability of such provision in any other
jurisdiction.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Section
9.08. Right of Set-off. If an Event of Default shall have occurred and be
continuing, each Lender is authorized at any time and from time to time, to the
fullest extent permitted by law, to set off and apply any and all deposits
(general or special, time or demand, provisional or final) at any time held and
other obligations at any time owing by such Lender to or for the credit or the
account of the Borrower against any obligations of the Borrower due hereunder
and held by such Lender, irrespective of whether or not such Lender shall have
made any demand hereunder and although such obligations may be unmatured. The
rights of each Lender under this Section are in addition to other rights and
remedies (including other rights of setoff) that such Lender may have.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Section 9.09.Governing
      Law; Jurisdiction; Consent to Service of Process. (a) This Agreement
      shall be construed in accordance with and governed by the law of the State
      of New York.
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(b) Each
of the parties hereto hereby irrevocably and unconditionally submits, for
itself, to the jurisdiction of the Supreme Court of the State of New York
sitting in New York County and of the United States District Court of the
Southern District of New York, and any relevant appellate court (each, a
New York Court) and to the courts of its own corporate domicile in
respect of actions brought against it as a defendant, in any action or
proceeding arising out of or relating to any Loan Document, or for recognition
or enforcement of any judgment, and each party hereto irrevocably and
unconditionally agrees that all claims in respect of any such action or
proceeding may be heard and determined in such courts. Each party hereto agrees
that a final judgment in any such action or proceeding shall be conclusive and
may be enforced in other jurisdictions by suit on the judgment or in any other
manner provided by law.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(c) The  Borrower
irrevocably and unconditionally waives, to the fullest extent it may  legally and
effectively do so, any objection that it may now or hereafter have  to
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 61 | 
| | -- | 



---





|the laying of venue of any suit, action or
proceeding arising out of or  relating to any Loan Document in any court referred to in
subsection (b) of this  Section and any right to which it may be entitled on account of
place of  residence or domicile. Each party hereto irrevocably waives, to the fullest
extent permitted by law, the defense of an inconvenient forum to the maintenance  of any
such suit, action or proceeding in any such court.
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(d) The
Borrower hereby irrevocably designates, appoints, authorizes and empowers as its
agent for service of process, CT Corporation System, at its offices currently
located at 111 Eighth Avenue, 13th Floor, New York, NY 10011 (the Process
Agent), to receive and forward on its behalf service of any and all
process, notices or other documents that may be served in any suit, action or
proceeding relating hereto in any New York Court (as defined in subsection (b)
of this Section). The Borrower consents to process being served in any suit,
action or proceeding of the nature referred to in this Section 9.09 by serving a
copy thereof upon the Process Agent. Without prejudice to the foregoing, the
Lenders agree that to the extent lawful and possible, written notice of said
service upon the Process Agent shall also be mailed by registered or certified
airmail, postage prepaid, return receipt requested, to the Borrower at the
address provided pursuant to Section 9.01. If said service upon the Process
Agent shall not be possible or shall otherwise be impractical after reasonable
efforts to effect the same, the Borrower consents to process being served in any
suit, action or proceeding of the nature referred to in Section 9.09 by the
mailing of a copy thereof by registered or certified airmail, postage prepaid,
return receipt requested, to the address of the Borrower provided pursuant to
Section 9.01, which service shall be effective 14 days after deposit in the
United States Postal Service. The Borrower agrees that such service (1) shall be
deemed in every respect effective service of process upon it in any such suit,
action or proceeding and (2) shall, to the fullest extent permitted by law, be
taken and held to be valid personal service upon and personal delivery to it.
Without limitation of the foregoing, each party hereto irrevocably consents to
service of process in the manner provided for notices in Section 9.01. Nothing
in any Loan Document will affect the right of any party hereto to serve process
in any other manner permitted by law.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(e) To
the extent that the Borrower has or hereafter may be entitled to claim or may
acquire, for itself or any of its assets, any immunity from suit, jurisdiction
of any court or from any legal process (whether through service or notice,
attachment prior to judgment, attachment in aid of execution, or otherwise) with
respect to itself or its property, it hereby irrevocably waives such immunity in
respect of its obligations under the Loan Documents to the extent permitted by
applicable law and, without limiting the generality of the foregoing, agrees
that the waivers set forth in this Section shall be effective to the fullest
extent now or hereafter permitted under the Foreign Sovereign Immunities Act of
1976 of the United States and are intended to be irrevocable for purposes of
such Act.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Section 9.10.WAIVER OF JURY TRIAL. EACH PARTY HERETO WAIVES, TO THE FULLEST EXTENT PERMITTED BY
APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING
DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO ANY LOAN DOCUMENT OR ANY
TRANSACTION CONTEMPLATED THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).
EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER
PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE
EVENT OF LITIGATION, SEEK TO
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 62 | 
| | -- | 



---





|ENFORCE THE FOREGOING WAIVER AND (B)
ACKNOWLEDGES THAT IT AND THE OTHER  PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS
AGREEMENT BY, AMONG OTHER  THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Section
9.11. Headings. Article and Section headings and the Table of Contents herein
are for convenience of reference only, are not part of this Agreement and shall
not affect the construction of, or be taken into consideration in interpreting,
this Agreement.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Section
9.12. Confidentiality. Each Lender Party agrees to maintain the confidentiality
of the Information (as defined below), except that Information may be disclosed
(a) to its and its Affiliates directors, officers, employees and agents,
including accountants, legal counsel and other advisors strictly on a need to
know basis (it being understood that the Persons to whom such disclosure is made
will be informed of the confidential nature of such Information and will be
instructed on and will agree to keep such Information confidential), (b) to the
extent requested by any regulatory authority, including the regulatory authority
having jurisdiction over any Affiliate, (c) to the extent required by applicable
laws or regulations, or by any subpoena or similar legal process, (d) to any
other party to this Agreement, (e) in connection with the exercise of any remedy
hereunder or any suit, action or proceeding relating to any Loan Document or the
enforcement of any right thereunder, (f) subject to an agreement containing
provisions substantially the same as those of this Section to any actual or
prospective assignee of or Participant in any of its rights or obligations under
this Agreement, (g) with the consent of the Borrower or (h) to the extent such
Information either (i) becomes publicly available other than as a result of a
breach of this Section or (ii) becomes available to any Lender Party on a
nonconfidential basis from a source other than the Borrower. For the purposes of
this Section, Information means all information received from the
Borrower relating to the Borrower or its business, other than any such
information that is available to any Lender Party on a nonconfidential basis
before disclosure by the Borrower.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 63 | 
| | -- | 



---





|IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed by their respective authorized officers as of the day and year first
above written.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | BORROWER                          
| | ----------------------------------
| |                                   
| | COCA-COLA FEMSA, S.A.
      DE C.V
| |                                   
| | By:                               
| |                                   



| | 64 | 
| | -- | 



---





| | ADMINISTRATIVE
      AGENT                                  
| | ------------------------------------------------------------
| |                                                             
| | JPMORGAN CHASE BANK,
      
         as Administrative Agent
| |                                                             
| | By:                                                         
| |                                                             



| | 65 | 
| | -- | 



---





| | MEXICAN ADMINISTRATIVE AGENT                                                                                                                                         
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |                                                                                                                                                                      
| | BANCO J.P. MORGAN, S.A., INSTITUCIÓN 
      DE BANCA MÚLTIPLE, J.P. MORGAN 
      GRUPO FINANCIERO, DIVISIÓN 
      FIDUCIARIA as Mexican Administrative 
      Agent
| |                                                                                                                                                                      
| | By:                                                                                                                                                                  
| |                                                                                                                                                                      



| | 66 | 
| | -- | 



---





| | LENDERS            
| | -------------------
| |                    
| | JPMORGAN CHASE BANK
| |                    
| | By:                
| |                    



| | 67 | 
| | -- | 



---





| | MORGAN STANLEY SENIOR FUNDING, 
      INC.
| | ------------------------------------------
| |                                           
| | By:                                       
| |                                           



| | 68 | 
| | -- | 



---





| | BANCO NACIONAL DE MÉXICO, S.A., 
      INTEGRANTE DEL GRUPO FINANCIERO 
      BANAMEX
| | -------------------------------------------------------------------------------------
| |                                                                                      
| | By:                                                                                  
| |                                                                                      
| |                                                                                      
| | By:                                                                                  
| |                                                                                      



| | 69 | 
| | -- | 



---





| | BBVA BANCOMER, S.A. 
      INSTITUCION DE BANCA MULTIPLE 
      GRUPO FINANCIERO BANCOMER
| | -----------------------------------------------------------------------------------------
| |                                                                                          
| | By:                                                                                      
| |                                                                                          
| |                                                                                          
| | By:                                                                                      
| |                                                                                          
| |                                                                                          
| |                                                                                          



| | 70 | 
| | -- | 



---





| | ING BANK, N.V. ACTING THROUGH ITS 
      CURACAO BRANCH
| | -------------------------------------------------------
| |                                                        
| | By:                                                    
| |                                                        
| |                                                        
| | By:                                                    
| |                                                        



| | 71 | 
| | -- | 



---





| | ING BANK (MÉXICO) S.A. INSTITUCIÓN
      
      DE BANCA MÚLTIPLE, ING GRUPO 
      FINANCIERO
| | ----------------------------------------------------------------------------------------------
| |                                                                                               
| | By:                                                                                           
| |                                                                                               



| | 72 | 
| | -- | 



---





| | THE BANK OF NOVA SCOTIA
| | -----------------------
| |                        
| | By:                    
| |                        



| | 73 | 
| | -- | 



---





| | SCOTIABANK INVERLAT, S.A., 
      INSTITUCIÓN DE BANCA MÚLTIPLE, 
      GRUPO FINANCIERO SCOTIABANK 
      INVERLAT
| | -------------------------------------------------------------------------------------------------------------------
| |                                                                                                                    
| | By:                                                                                                                
| |                                                                                                                    



| | 74 | 
| | -- | 



---





| | BNP PARIBAS PANAMA BRANCH
| | -------------------------
| |                          
| | By:                      
| |                          
| |                          
| | By:                      
| |                          



| | 75 | 
| | -- | 



---





| | COMERICA BANK
| | -------------
| |              
| | By:          
| |              



| | 76 | 
| | -- | 



---





| | STANDARD CHARTERED BANK
| | -----------------------
| |                        
| | By:                    
| |                        
| |                        
| | By:                    
| |                        



| | 77 | 
| | -- | 



---





| | WACHOVIA BANK, NATIONAL 
      ASSOCIATION
| | ------------------------------------------
| |                                           
| | By:                                       
| |                                           



| | 78 | 
| | -- | 



---





| | COÖPERATIEVE CENTRALE 
      RAIFFEISEN-BOERENLEENBANK B.A. 
      RABOBANKINTERNATIONAL 
      NEW YORK BRANCH
| | -----------------------------------------------------------------------------------------------------------------
| |                                                                                                                  
| | By:                                                                                                              
| |                                                                                                                  
| |                                                                                                                  
| | By:                                                                                                              
| |                                                                                                                  



| | 79 | 
| | -- | 



---





| | EXPORT DEVELOPMENT CANADA
| | -------------------------
| |                          
| | By:                      
| |                          
| |                          
| | By:                      
| |                          



| | 80 | 
| | -- | 



---





| | ABN AMRO BANK N.V.
| | ------------------
| |                   
| | By:               
| |                   
| |                   
| | By:               
| |                   



| | 81 | 
| | -- | 



---





| | THE BANK OF TOKYO-MITSUBISHI, LTD.
| | ----------------------------------
| |                                   
| | By:                               
| |                                   



| | 82 | 
| | -- | 



---





| | LANDESBANK BADEN-WUERTTEMBERG 
      INTERNATIONAL BANKING FACILITY
| | -------------------------------------------------------------------
| |                                                                    
| | By:                                                                
| |                                                                    
| |                                                                    
| | By:                                                                
| |                                                                    



| | 83 | 
| | -- | 



---





| | HUA NAN COMMERCIAL BANK, LTD., 
      NEW YORK AGENCY
| | -----------------------------------------------------
| |                                                      
| | By:                                                  
| |                                                      



| | 84 | 
| | -- | 



---





| | ISRAEL DISCOUNT BANK OF NEW YORK
| | --------------------------------
| |                                 
| | By:                             
| |                                 
| |                                 
| | By:                             
| |                                 



| | 85 | 
| | -- | 



---