Document:

QuickLinks
 -- Click here to rapidly navigate through this document

 
 

Exhibit 4.26    
    

 

Grupo TMM, S.A.,
 as Issuer 

The Guarantors Named Herein,
  as Guarantors 

and 

Wells Fargo Bank, N.A.
  as Trustee 

Indenture  

Dated as of January 13, 2004 

Senior
Secured Notes due 2007 

 

  

 
 

TABLE OF CONTENTS    
    

	 
	 	 
	 	 
	 	Page

	ARTICLE ONE DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION	 	1
	 	 	SECTION 1.01	 	DEFINITIONS	 	1
	 	 	SECTION 1.02	 	COMPLIANCE CERTIFICATES AND OPINIONS	 	18
	 	 	SECTION 1.03	 	FORM OF DOCUMENTS DELIVERED TO TRUSTEE	 	18
	 	 	SECTION 1.04	 	NOTICES, ETC. TO TRUSTEE AND COMPANY	 	19
	 	 	SECTION 1.05	 	NOTICE TO HOLDERS; WAIVER	 	19
	 	 	SECTION 1.06	 	CONFLICT WITH TRUST INDENTURE ACT	 	20
	 	 	SECTION 1.07	 	EFFECT OF HEADINGS AND TABLE OF CONTENTS	 	20
	 	 	SECTION 1.08	 	SUCCESSORS AND ASSIGNS	 	20
	 	 	SECTION 1.09	 	SEPARABILITY CLAUSE	 	20
	 	 	SECTION 1.10	 	BENEFITS OF INDENTURE	 	20
	 	 	SECTION 1.11	 	GOVERNING LAW	 	20
	 	 	SECTION 1.12	 	SUBMISSION TO JURISDICTION	 	20
	 	 	SECTION 1.13	 	LEGAL HOLIDAYS	 	21
	 	 	SECTION 1.14	 	APPOINTMENT OF AGENT FOR SERVICE	 	21
	 	 	SECTION 1.15	 	COUNTERPART ORIGINALS	 	21
	

ARTICLE TWO NOTE FORMS	
 	

21
	 	 	SECTION 2.01	 	FORMS GENERALLY	 	21
	 	 	SECTION 2.02	 	FORM OF FACE OF NOTE	 	22
	 	 	SECTION 2.03	 	FORM OF REVERSE OF NOTE	 	26
	 	 	SECTION 2.04	 	FORM OF GUARANTEE	 	31
	 	 	SECTION 2.05	 	FORM OF TRUSTEE'S CERTIFICATE OF AUTHENTICATION	 	32
	

ARTICLE THREE THE NOTES	
 	

33
	 	 	SECTION 3.01	 	TITLE AND TERMS	 	33
	 	 	SECTION 3.02	 	DENOMINATIONS; PAYMENT CURRENCY	 	35
	 	 	SECTION 3.03	 	EXECUTION, AUTHENTICATION, DELIVERY AND DATING	 	35
	 	 	SECTION 3.04	 	TEMPORARY NOTES	 	36
	 	 	SECTION 3.05	 	NOTE REGISTRAR AND PAYING AGENT	 	36
	 	 	SECTION 3.06	 	PAYING AGENT TO HOLD MONEY IN TRUST	 	37
	 	 	SECTION 3.07	 	HOLDER LISTS	 	37
	 	 	SECTION 3.08	 	TRANSFER AND EXCHANGE	 	37
	 	 	SECTION 3.09	 	MUTILATED, DESTROYED, LOST AND STOLEN NOTES	 	39
	 	 	SECTION 3.10	 	PAYMENT OF INTEREST; INTEREST RIGHTS PRESERVED	 	40
	 	 	SECTION 3.11	 	PERSONS DEEMED OWNERS	 	41
	 	 	SECTION 3.12	 	CANCELLATION	 	41
	 	 	SECTION 3.13	 	COMPUTATION OF INTEREST	 	41
	 	 	SECTION 3.14	 	RANKING; SUBORDINATION	 	41
	 	 	SECTION 3.15	 	CUSIP NUMBERS	 	41
	 	 	 	 	 	 	 

i

 

	

ARTICLE FOUR REDEMPTION OF NOTES	
 	

42
	 	 	SECTION 4.01	 	APPLICABILITY OF ARTICLE	 	42
	 	 	SECTION 4.02	 	RIGHT OF REDEMPTION	 	42
	 	 	SECTION 4.03	 	ELECTION TO REDEEM; NOTICE TO TRUSTEE	 	42
	 	 	SECTION 4.04	 	SELECTION BY TRUSTEE OF NOTES TO BE REDEEMED	 	42
	 	 	SECTION 4.05	 	NOTICE OF REDEMPTION	 	42
	 	 	SECTION 4.06	 	DEPOSIT OF REDEMPTION PRICE	 	43
	 	 	SECTION 4.07	 	NOTES PAYABLE ON REDEMPTION DATE	 	43
	 	 	SECTION 4.08	 	NOTES REDEEMED IN PART	 	43
	 	 	SECTION 4.09	 	OPTIONAL REDEMPTION DUE TO CHANGES IN TAX TREATMENT	 	43
	

ARTICLE FIVE COVENANTS	
 	

44
	 	 	SECTION 5.01	 	PAYMENTS OF PRINCIPAL, PREMIUM, IF ANY, AND INTEREST	 	44
	 	 	SECTION 5.02	 	MAINTENANCE OF OFFICE OR AGENCY	 	44
	 	 	SECTION 5.03	 	MONEY FOR NOTE PAYMENTS TO BE HELD IN TRUST	 	44
	 	 	SECTION 5.04	 	EXISTENCE	 	46
	 	 	SECTION 5.05	 	MAINTENANCE OF PROPERTIES; INSURANCE	 	46
	 	 	SECTION 5.06	 	PAYMENT OF TAXES	 	46
	 	 	SECTION 5.07	 	ANNUAL OFFICERS' CERTIFICATE TO TRUSTEE	 	46
	 	 	SECTION 5.08	 	REPORTS TO BE FURNISHED TO TRUSTEE AND HOLDERS	 	47
	 	 	SECTION 5.09	 	FURTHER ASSURANCES	 	48
	 	 	SECTION 5.10	 	COMPANY TO FURNISH TRUSTEE INFORMATION AS TO NAMES AND ADDRESSESOF HOLDERS	 	48
	 	 	SECTION 5.11	 	WAIVER OF STAY, EXTENSION OR USURY LAWS	 	48
	 	 	SECTION 5.12	 	CHANGE OF CONTROL	 	48
	 	 	SECTION 5.13	 	RESTRICTION ON ASSET DISPOSITIONS AND QUALIFYING DISPOSITIONS; APPLICATION OF VAT PROCEEDS	 	50
	 	 	SECTION 5.14	 	ADDITIONAL GUARANTEES; LIMITATION ON ISSUANCES OF GUARANTEES BY RESTRICTED SUBSIDIARIES	 	52
	

ARTICLE SIX REMEDIES	
 	

53
	 	 	SECTION 6.01	 	EVENTS OF DEFAULT	 	53
	 	 	SECTION 6.02	 	DEFAULT RATE OF INTEREST	 	56
	 	 	SECTION 6.03	 	ACCELERATION OF MATURITY; RESCISSION AND ANNULMENT	 	56
	 	 	SECTION 6.04	 	COLLECTION OF INDEBTEDNESS BY TRUSTEE; TRUSTEE MAY PROVE DEBT	 	57
	 	 	SECTION 6.05	 	TRUSTEE MAY FILE PROOFS OF CLAIM	 	58
	 	 	SECTION 6.06	 	TRUSTEE MAY ENFORCE CLAIMS WITHOUT POSSESSION OF NOTES	 	58
	 	 	SECTION 6.07	 	APPLICATION OF MONEY OR PROPERTY COLLECTED	 	58
	 	 	SECTION 6.08	 	LIMITATION ON SUITS	 	59
	 	 	SECTION 6.09	 	RIGHTS OF HOLDERS OF NOTES TO RECEIVE PAYMENT	 	59
	 	 	SECTION 6.10	 	RESTORATION OF RIGHTS AND REMEDIES	 	59
	 	 	SECTION 6.11	 	RIGHTS AND REMEDIES CUMULATIVE	 	60
	 	 	SECTION 6.12	 	DELAY OR OMISSION NOT WAIVER	 	60
	 	 	SECTION 6.13	 	CONTROL BY HOLDERS	 	60
	 	 	SECTION 6.14	 	WAIVER OF PAST DEFAULTS	 	60
	 	 	 	 	 	 	 

ii

 

	

ARTICLE SEVEN CONCERNING THE TRUSTEE	
 	

61
	 	 	SECTION 7.01	 	DUTIES OF TRUSTEE	 	61
	 	 	SECTION 7.02	 	CERTAIN RIGHTS OF TRUSTEE	 	62
	 	 	SECTION 7.03	 	TRUSTEE NOT RESPONSIBLE FOR RECITALS, ETC	 	63
	 	 	SECTION 7.04	 	TRUSTEE AND OTHERS MAY HOLD NOTES	 	63
	 	 	SECTION 7.05	 	MONEYS HELD BY TRUSTEE OR PAYING AGENT	 	63
	 	 	SECTION 7.06	 	COMPENSATION OF TRUSTEE AND ITS LIEN	 	63
	 	 	SECTION 7.07	 	RIGHT OF TRUSTEE TO RELY ON CERTIFICATE OF CERTAIN OFFICERS	 	64
	 	 	SECTION 7.08	 	PERSONS ELIGIBLE FOR APPOINTMENT AS TRUSTEE	 	64
	 	 	SECTION 7.09	 	RESIGNATION AND REMOVAL OF TRUSTEE; APPOINTMENT OF SUCCESSOR	 	65
	 	 	SECTION 7.10	 	ACCEPTANCE OF APPOINTMENT BY SUCCESSOR TRUSTEE	 	65
	 	 	SECTION 7.11	 	MERGER, CONVERSION OR CONSOLIDATION OF TRUSTEE	 	66
	 	 	SECTION 7.12	 	AUTHENTICATING AGENTS	 	66
	 	 	SECTION 7.13	 	REPORTS BY TRUSTEE	 	68
	 	 	SECTION 7.14	 	TRUSTEE RISK	 	68
	 	 	SECTION 7.15	 	NOTICE OF DEFAULT	 	68
	 	 	SECTION 7.16	 	PREFERENTIAL COLLECTION OF CLAIMS AGAINST THE COMPANY	 	68
	 	 	SECTION 7.17	 	TRUSTEE'S APPLICATION FOR INSTRUCTIONS FROM THE COMPANY	 	68
	 	 	SECTION 7.18	 	LIMITATION OF LIABILITY	 	69
	

ARTICLE EIGHT CONCERNING THE HOLDERS	
 	

69
	 	 	SECTION 8.01	 	EVIDENCE OF ACTION TAKEN BY HOLDERS	 	69
	 	 	SECTION 8.02	 	PROOF OF EXECUTION OF INSTRUMENTS AND OF HOLDING OF NOTES	 	69
	 	 	SECTION 8.03	 	RIGHT OF REVOCATION OF ACTION TAKEN	 	70
	 	 	ARTICLE NINE	 	HOLDERS' MEETINGS	 	70
	 	 	SECTION 9.01	 	PURPOSES FOR WHICH HOLDERS' MEETINGS MAY BE CALLED	 	70
	 	 	SECTION 9.02	 	CALL OF MEETINGS BY TRUSTEE	 	71
	 	 	SECTION 9.03	 	COMPANY AND HOLDERS MAY CALL MEETING	 	71
	 	 	SECTION 9.04	 	PERSONS ENTITLED TO VOTE AT MEETING	 	71
	 	 	SECTION 9.05	 	DETERMINATION OF VOTING RIGHTS; CONDUCT AND ADJOURNMENT OF MEETING	 	71
	 	 	SECTION 9.06	 	COUNTING VOTES AND RECORDING ACTION OF MEETING	 	72
	

ARTICLE TEN SUPPLEMENTAL INDENTURES AND AMENDMENT OF COLLATERAL DOCUMENTS	
 	

72
	 	 	SECTION 10.01	 	SUPPLEMENTAL INDENTURES WITHOUT CONSENT OF HOLDERS	 	72
	 	 	SECTION 10.02	 	SUPPLEMENTAL INDENTURES WITH CONSENT OF HOLDERS	 	73
	 	 	SECTION 10.03	 	EXECUTION OF SUPPLEMENTAL INDENTURES	 	74
	 	 	SECTION 10.04	 	EFFECT OF SUPPLEMENTAL INDENTURES	 	74
	 	 	SECTION 10.05	 	CONFORMITY WITH TRUST INDENTURE ACT	 	74
	 	 	SECTION 10.06	 	REFERENCE IN NOTES TO SUPPLEMENTAL INDENTURES	 	74
	 	 	 	 	 	 	 

iii

 

	

ARTICLE ELEVEN SUCCESSOR CORPORATION	
 	

74
	 	 	SECTION 11.01	 	WHEN COMPANY MAY MERGE, ETC	 	74
	 	 	SECTION 11.02	 	SUCCESSOR CORPORATION	 	75
	

ARTICLE TWELVE SATISFACTION AND DISCHARGE OF INDENTURE; UNCLAIMED MONEYS	
 	

76
	 	 	SECTION 12.01	 	TERMINATION OF COMPANY'S OBLIGATIONS	 	76
	 	 	SECTION 12.02	 	APPLICATION OF TRUST MONEY	 	77
	 	 	SECTION 12.03	 	REPAYMENT TO COMPANY	 	78
	 	 	SECTION 12.04	 	REINSTATEMENT	 	78
	

ARTICLE THIRTEEN IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS	
 	

78
	 	 	SECTION 13.01	 	PERSONAL IMMUNITY FROM LIABILITY OF INCORPORATORS, STOCKHOLDERS, ETC	 	78
	

ARTICLE FOURTEEN GUARANTEE	
 	

78
	 	 	SECTION 14.01	 	GUARANTEE	 	78
	 	 	SECTION 14.02	 	LIMITATION ON GUARANTOR LIABILITY	 	81
	 	 	SECTION 14.03	 	SUCCESSORS AND ASSIGNS	 	81
	 	 	SECTION 14.04	 	NO WAIVER	 	81
	 	 	SECTION 14.05	 	EXECUTION AND DELIVERY OF GUARANTEE	 	81
	 	 	SECTION 14.06	 	GUARANTORS MAY CONSOLIDATE, ETC., ON CERTAIN TERMS	 	82
	 	 	SECTION 14.07	 	RELEASES FOLLOWING SALE OF ASSETS OR CAPITAL STOCK	 	82
	 	 	SECTION 14.08	 	APPLICATION OF CERTAIN TERMS AND PROVISIONS TO THE GUARANTORS	 	82
	

ARTICLE FIFTEEN	
 	

83
	 	 	SECTION 15.01	 	COLLATERAL; COLLATERAL DOCUMENTS	 	83
	 	 	SECTION 15.02	 	VOTING RIGHTS AND PAYMENT OF DIVIDENDS AND DISTRIBUTIONS IN RESPECT OF COLLATERAL	 	84
	 	 	SECTION 15.03	 	RELEASE OF COLLATERAL	 	85
	 	 	SECTION 15.04	 	REMEDIES UPON ACCELERATION	 	87
	 	 	SECTION 15.05	 	FURTHER ASSURANCES AND SECURITY	 	87
	 	 	SECTION 15.06	 	OPINIONS AS TO RECORDING	 	87
	 	 	SECTION 15.07	 	LIMITATION ON DUTY OF TRUSTEE IN RESPECT OF THE COLLATERAL PLEDGE	 	87
	 	 	SECTION 15.08	 	AUTHORIZATION OF ACTIONS TO BE TAKEN BY COLLATERAL AGENT UNDER THE COLLATERAL DOCUMENTS	 	88
	 	 	SECTION 15.09	 	AUTHORIZATION OF RECEIPT OF FUNDS BY THE TRUSTEE UNDER THE COLLATERAL DOCUMENTS	 	88
	 	 	SECTION 15.10	 	ASSIGNMENT OF RIGHTS, NOT ASSUMPTION OF DUTIES	 	88

iv

   
CROSS-REFERENCE TABLE* 

	Trust Indenture Act Sections
 
	 	Indenture Section

	

310(a)(1)	
 	

7.08
	(a)(2)	 	7.08
	(a)(3)	 	N.A.
	(a)(4)	 	N.A.
	(a)(5)	 	7.08
	(b)	 	N.A.
	(c)	 	N.A.
	311(a)	 	N.A.
	(b)	 	N.A.
	(c)	 	N.A.
	312(a)	 	5.10
	(b)	 	N.A.
	(c)	 	N.A.
	313(a)	 	7.13
	(b)	 	N.A.
	(c)	 	7.13
	(d)	 	5.08
	314(a)	 	N.A.
	(b)	 	15.01
	(c)	 	1.02
	(d)	 	N.A.
	(e)	 	1.02
	(f)	 	N.A.
	315(a)	 	7.01, 7.02, 7.07
	(b)	 	N.A.
	(c)	 	7.01(a)
	(d)	 	7.01(c)
	(e)	 	N.A.
	316(a)	 	6.02, 6.11, 6.12
	(b)	 	N.A.
	(c)	 	8.02
	317(a)	 	6.04, 6.05
	(b)	 	7.05
	318(a)	 	1.06
	(b)	 	N.A.
	(c)	 	N.A.

N.A.
means not applicable

*This Cross-Reference table shall not, for any purpose, be deemed to be part of the Indenture 

v

  

        Indenture, dated as of January 13, 2004, by and among Grupo TMM, S.A., a
corporation duly organized and existing under the laws of the United Mexican States (herein called the "Company"), having its principal business office
at Avenida de la Cúspide, No. 4755, Colonia Parques del Pedregal, 14010 Mexico, D.F., TMM Holdings, S.A. de C.V., a corporation
duly organized and existing under the laws of the United Mexican States (herein called "TMM Holdings"), each of the other Wholly Owned Subsidiaries of
the Company that are listed on Schedule A hereto as being a guarantor (TMM Holdings and each such other Wholly Owned Subsidiary, together with any other Subsidiary of the Company that hereafter
becomes a Guarantor in accordance with the terms of this Indenture, are collectively referred to herein as the "Guarantors"), having their principal
business office at Avenida de la Cúspide, No. 4755, Colonia Parques del Pedregal, 14010 Mexico, D.F., and Wells Fargo Bank, N.A.,
a national banking corporation, as Trustee (herein called the "Trustee"), having its principal trust office at Sixth Street and Marquette Avenue,
N9303-120, Minneapolis, Minnesota 55479, Attention: Corporate Trust Services. 

        The
Company has duly authorized the creation of an issue of Senior Secured Notes due 2007 in an amount equal to $21,094,605 and, to provide therefor, the Company has duly authorized the
execution and delivery of this Indenture. All things necessary to make the Notes, when duly issued and executed by the Company, and authenticated and delivered hereunder, the valid obligations of the
Company and the Guarantors, and to make this Indenture a valid and binding agreement of the Company and the Guarantors, have been done. 

        Each
party agrees as follows for the benefit of each other and for the equal and ratable benefit of the Holders (as defined herein) of the Company's Senior Secured Notes due 2007 (the
"Notes"). The Notes will be issued pursuant to the Escrow Agreement. The provisions of this Indenture, the Notes, the Guarantees and the Collateral
Documents shall not become effective until the Release Date. 

 
 

ARTICLE ONE
  DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION    
    

        SECTION 1.01    DEFINITIONS.    For all purposes of this Indenture, except as otherwise expressly provided or unless
the context otherwise requires: 

        (1)   the
terms defined in this Article have the meanings assigned to them in this Article and include the plural as well as the singular; 

        (2)   all
other terms used herein which are defined in the Trust Indenture Act (as hereinafter defined), either directly or by reference therein, have the meanings assigned to
them therein; 

        (3)   all
accounting terms not otherwise defined herein have the meanings assigned to them in accordance with IAS (as hereinafter defined); 

        (4)   the
words "herein," "hereof" and "hereunder" and other words of similar import refer to this Indenture as a whole and not to any particular Article, Section or other
subdivision; 

        (5)   "or" is not exclusive; 

        (6)   provisions
apply to successive events and transactions; 

        (7)   unless
the context otherwise requires, any reference to a "clause," an "Article" or a "Section", or to an "Exhibit" or a "Schedule", refers to a clause, an Article or
Section of, or to an Exhibit or a Schedule attached to, this Indenture, as the case may be; 

        (9)   unless
the context otherwise requires, any reference to a statute, rule or regulation refers to the same (including any successor statute, rule or regulation thereto) as
it may be amended from time to time; 

1

 

        (10) the
principal amount of any non-interest bearing or other discount security at any date shall be the principal amount thereof that would be shown on a
balance sheet of the issuer dated such date prepared in accordance with IAS; and 

        (11) the
term "including" is not limiting and means "including, without limitation," and "including but not limited to." 

        "Additional Amounts" shall have the meaning assigned to such term in Section 2.03. 

        "Additional Notes" means any Notes issued by the Company in payment of any portion of the interest due on Outstanding Notes pursuant to
Section 3.01(c). 

        "Adjusted Net Assets" of a Guarantor at any date means the amount by which the fair value of the assets and properties of such Guarantor
exceeds the total amount of liabilities, including, without limitation, contingent liabilities (after giving effect to all other fixed and contingent liabilities incurred or assumed on such date), but
excluding liabilities under any Guarantee, of such Guarantor at such date. 

        "ADRs" means the American Depositary Receipts evidencing ADSs issued pursuant to the Deposit Agreement, dated December 26, 2001,
among the Company, Citibank, N.A., as depositary, and certain owners of ADSs. 

        "ADSs" means American depositary shares of the Company, each of which represents one CPO issued by the Company and held by the CPO
Trustee. 

        "Affiliate" of any specified Person means any other Person directly or indirectly controlling or controlled by or under direct or indirect
common control with such specified Person. For the purposes of this definition, "control" when used with respect to any specified Person means the power to direct the management and policies of such
Person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise; and the terms "controlling" and "controlled" have meanings correlative to the foregoing. 

        "Agent" means any Note Registrar, Paying Agent or co-registrar. 

        "Applicable Procedures" means, with respect to any transfer or exchange of or for beneficial interests in any Global Note, the rules and
procedures of the Depositary, Euroclear and Clearstream that apply to such transfer or exchange. 

        "Asset Disposition" means any sale, lease, conveyance, transfer or other disposition (or series of related sales, leases, conveyances,
transfers or dispositions) by the Company or any Restricted Subsidiary of (x) any Capital Stock of a Restricted Subsidiary of the Company (whether or not upon issuance), or (y) any other
property or assets (each referred to for the purposes of this Indenture as a "disposition") whether for cash or other consideration, other than
(i) a disposition by a Restricted Subsidiary of the Company to the Company or to a Wholly Owned Subsidiary of the Company, (ii) a disposition by the Company to a Wholly Owned Subsidiary
of the Company, (iii) a disposition by a Restricted Subsidiary to a Wholly Owned Subsidiary of such Restricted Subsidiary, (iv) the disposition in any single transaction or series of
transactions of any assets or Capital Stock or other ownership interest in the ordinary course of business by the Company or its Restricted Subsidiaries if the gross proceeds thereof do not exceed
$500,000 (such proceeds, to the extent not in cash, to be determined in good faith by the Board of Directors) in any 12-month period, (v) an exchange of assets,  provided the assets received are to
be used in the lines of business engaged in by the Company or any of its Restricted Subsidiaries on the Initial
Issuance Date or reasonably related extensions of such lines of business, (vi) a Qualifying Disposition or other disposition that is governed by Article Eleven, (vii) a disposition of
assets in one or a series of related transactions which are no longer used or, in the reasonable opinion of the Company (which, in the case of each disposition for gross proceeds in excess of $500,000
will be evidenced by a Board Resolution as set forth in an Officers' Certificate delivered to 

2

 

the
Trustee) useful in the business of the Company or any Restricted Subsidiary, provided the aggregate gross proceeds of all such dispositions of
assets pursuant to this clause (vii) do not exceed $10 million, or (viii) a disposition pursuant to a Qualifying PEMEX Securitization Transaction;  provided, in the case of any disposition
pursuant to clauses (i), (ii) or (iii) by the Company or by any Restricted Subsidiary that is a
Guarantor, that the Wholly Owned Subsidiary receiving such assets which was not previously a Guarantor executes and delivers a supplemental indenture providing for a Guarantee of the Notes as provided
in Section 5.14 or Article Fourteen. 

        "Associate" has the meaning assigned to such term in Rule 12b-2 of the rules and regulations of the Commission
promulgated under the Exchange Act. 

        "Attributable Debt" means, with respect to a sale and leaseback transaction, as at the time of determination, the greater of
(i) the fair market value of the property subject to such sale and leaseback transaction (as set forth in a Board Resolution) and (ii) the present value (discounted at the interest rate
borne by the Notes (assuming the Company pays the minimum cash required to be paid thereon), compounded annually) of the total obligations of the lessee for 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). 

        "Authenticating Agent" means any agent of the Trustee which at any time shall be appointed and acting pursuant to the provisions of
Section 7.12. 

        "Bankruptcy Law" shall have the meaning assigned to such term in Section 6.01(7). 

        "Benefited Party" shall have the meaning assigned to such term in Section 14.01. 

        "Board of Directors" means the Board of Directors of any Person, or any duly authorized committee of such Board or any officers of such
Person duly authorized so to act by such Board; provided, that if the transaction giving rise to the need for action by the Board of Directors of such
Person, together with any related transactions, involve aggregate value or consideration in excess of $10 million, "Board of Directors" means the entire Board of Directors of such Person and
not a committee of such Person or an officer of such Board; provided, further, that any action required
to be taken by the Board of Directors of the Company or any of its Restricted Subsidiaries with respect to the sale or sale and leaseback of any individual vessel may be taken by the Executive
Committee of such Board of Directors. 

        "Board Resolution" means a copy of a resolution or resolutions certified by the Secretary or an Assistant Secretary of any Person to have
been duly adopted by the Board of Directors, or by the Executive Committee of the Board of Directors or any other committee of such Person to the extent that such other committee has been authorized
by the Board of Directors to adopt a "Board Resolution" for purposes hereof, and to be in full force and effect on the date of such certification, or a certificate executed by officers of such Person
to the extent that such officers have been authorized to act for purposes hereof setting forth the action taken by such officers and stating that the officers are duly authorized to take such action,
in each case as filed with the corporate records of such Person. 

        "Business Day" means each Monday, Tuesday, Wednesday, Thursday and Friday which is not a day on which banking institutions in New York,
New York are authorized or obligated by or pursuant to law, regulation or executive order to close. 

        "Capitalized Lease Obligation" of any Person means any obligation of such Person to pay rent or other amounts under a lease of (or other
agreement conveying the right to use) real or personal property that is required to be classified and accounted for as a capital lease obligation on a balance sheet of such Person under IAS and, for
purposes of this Indenture, the amount of such obligation at any date shall be the capitalized amount thereof at such date, determined in accordance with IAS. For 

3

 

purposes
of this definition, with respect to the Company, "Person" shall mean the Company or any Restricted Subsidiary, as the case may be. 

        "Capital Stock" of any Person means any and all shares, interests, participations or other equivalents (however designated) of such
Person's capital stock and warrants, options and similar rights to acquire such capital stock (other than debt securities convertible or exchangeable for such capital stock). 

        "Cash Equivalents" means (i) any evidence of indebtedness, maturing not more than one year after the date of purchase, issued or
fully guaranteed or insured by the United Mexican States, the United States of America, or an instrumentality or agency thereof, (ii) any certificate of deposit, Eurodollar time deposit,
overnight bank deposit or bankers' acceptance maturing not more than one year after the date of purchase, issued by, or time deposit of, a commercial banking institution which has combined capital and
surplus and undivided profits of not less than $100,000,000, (iii) commercial paper, maturing not more than 180 days after the date of purchase, issued by a corporation (other than an
Affiliate of the Company) organized and existing under the laws of the United Mexican States or the United States of America or any State thereof or the District of Columbia which is rated, at the
time as of which any investment therein is made, "P-1" (or higher) by Moody's or "A-l" (or higher) by Standard & Poor's, (iv) money market funds and
(v) deposits with financial institutions available for withdrawal on demand. 

        "Cash Interest Rate" shall have the meaning assigned to such term in Section 3.01(c)(i). 

        "Change of Control" shall have the meaning assigned to such term in Section 5.12. 

        "Clearstream" means Clearstream Banking, société anonyme. 

        "CNBV" means the Comisión Nacional Bancaria y de Valores of the United Mexican States, or any successor Person under
applicable law. 

        "Collateral" has the meaning ascribed to such term in Section 15.01(a) hereof. 

        "Collateral Agent" means the beneficiary, depositary, pledgee, collateral agent or Person acting in a similar capacity, as the case may
be, under the Collateral Documents, until a successor beneficiary, depositary, collateral agent or Person acting in a similar capacity, as the case may be, shall have become such pursuant to the
Collateral Documents, and thereafter "Collateral Agent" shall mean such successor beneficiary, depositary, collateral agent or Person acting in a
similar capacity, as the case may be. Unless otherwise required by applicable law, the Collateral Agent shall be the Trustee. 

        "Collateral Documents" means, collectively, (i) the Mercantile Stock Pledge Agreement, dated as of the date hereof, by and among
the Company, the other pledgors party thereto, and Wells Fargo Bank, N.A., as pledgee, (ii) the Deposit Account Control Agreement by and among the Collateral Agent, the
bank party thereto and the Company and/or Guarantor(s) party thereto, and (iii) any other security agreements, trusts or other arrangements from time to time providing for the pledge of or
other grant of a Lien with respect to Collateral to secure the Notes, the Guarantees, this Indenture and the Collateral Documents, by and among the Company, the Guarantors, the Trustee and the
Collateral Agents, as applicable, in each case as same may be amended, modified and/or supplemented and in effect from time to time. 

        "Collateral Pledge" means the pledge of or other grant of a Lien with respect to Collateral pursuant to this Indenture and the Collateral
Documents to secure the obligations of the Company and the Guarantors under the Notes, the Guarantees, this Indenture and the Collateral Documents. 

        "Commission" means the Securities and Exchange Commission, as from time to time constituted, created under the Exchange Act or, if at any
time after the execution of this instrument such 

4

 

Commission
is not existing and performing the duties now assigned to it under the Trust Indenture Act, then the body performing such duties at such time. 

        "Company" means the Person named as the "Company" in the first paragraph of this Indenture until a successor Person or Persons shall have
become such pursuant to the applicable provisions of this Indenture and thereafter "Company" shall mean such successor Person. 

        "Company Request" or "Company Order" means a written request or order signed in the name
of the Company by its Chief Executive Officer, its Director General, its Chief Operating Officer, its Chief Financial Officer, its Director of Administration, its Treasurer or any other duly
authorized officer, and delivered to the Trustee. 

        "Consolidated Amortization Expense" of any Person means, for any period, the amortization expense of such Person and its Subsidiaries,
determined on a consolidated basis for such period in accordance with IAS. For purposes of this definition, with respect to the Company, "Person" shall
mean the Company, and "Subsidiaries" shall mean Restricted Subsidiaries. 

        "Consolidated Cash Flow Available for Interest Expense" of any Person means, for any period, the sum (without duplication) of the amounts
for such period of (i) Consolidated Net Income, (ii) Consolidated Interest Expense, (iii) Consolidated Income Tax Expense, (iv) Consolidated Depreciation Expense,
(v) Consolidated Amortization Expense and (vi) other non cash items reducing (which shall be added back) or increasing (which shall be subtracted) Consolidated Net Income, all as
determined on a consolidated basis for such Person and its Subsidiaries for such period in accordance with IAS. For
purposes of this definition, with respect to the Company, "Person" shall mean the Company, and
"Subsidiaries" shall mean Restricted Subsidiaries. 

        "Consolidated Depreciation Expense" of any Person means, for any period, the depreciation and depletion expense of such Person and its
Subsidiaries, determined on a consolidated basis for such period in accordance with IAS. For purposes of this definition, with respect to the Company,
"Person" shall mean the Company, and "Subsidiaries" shall mean Restricted Subsidiaries. 

        "Consolidated Income Tax Expense" of any Person means, for any period, the aggregate of the income tax expense of such Person and its
Subsidiaries, determined on a consolidated basis for such period in accordance with IAS. For purposes of this definition, with respect to the Company,
"Person" shall mean the Company, and "Subsidiaries" shall mean Restricted Subsidiaries. 

        "Consolidated Interest Expense" of any Person means, for any period, the aggregate of (a) the interest expense of such Person and
its Subsidiaries (including, without limitation, amortization of the issuance cost of any Indebtedness other than the Notes, original issue cost of any Indebtedness other than the Notes, original
issue discount on any Indebtedness, the interest portion of any deferred payment obligation in accordance with the effective interest method of accounting, all commissions, discounts and other fees
and charges owed with respect to letters of credit and bankers' acceptance financings and the net cost associated with Interest Rate Agreements to the extent attributed to such period), and
(b) the interest expense of such Person and its Subsidiaries with respect to guaranteed Indebtedness (to the extent not included in clause (a) above), all as determined on a consolidated
basis for such period in accordance with IAS. For purposes of this definition, with respect to the Company, "Person" shall mean the Company, and
"Subsidiaries" shall mean Restricted Subsidiaries. 

        "Consolidated Net Income" of a Person means, for any period, the aggregate of the net income or loss of such Person and its Subsidiaries
for such period, determined on a consolidated basis in accordance with IAS, provided that (i) the net income (or loss) of any person which is not
a Subsidiary of such Person (or is deemed not to be a Subsidiary of such Person) or which is accounted for by the equity method of accounting, shall be included only to the extent of the amount of
cash dividends or distributions paid by such person or its consolidated subsidiaries to such Person in such period, (ii) the net income (or loss) of any Subsidiary that is subject to any
restriction or limitation on the payment of 

5

 

dividends
and other distributions (including loans or advances) by operation of the terms of its charter or by agreement, instrument, judgment, decree, order or governmental regulation applicable to
the Subsidiary shall be excluded to the extent of such restriction or limitation in such period, (iii) the net income (or loss) of any Person acquired in a pooling of interests transaction for
any period prior to the date of such acquisition shall be excluded, (iv) any cash gains or losses attributable to dispositions of capital assets shall be included, including provisions for any
such dispositions, and any non-cash extraordinary items shall be excluded, and (v) the net income (or loss) from discontinued operations shall be excluded. For purposes of
calculating "Consolidated Net Income" of the Company for any period, each reference in the foregoing definition to a
"Subsidiary" or "Subsidiaries" shall be deemed a reference to a Restricted Subsidiary. 

        "Consolidated Net Worth" means, with respect to any Person, as at any date of determination, consolidated stockholders' equity of such
Person and its Subsidiaries determined on a consolidated basis in accordance with IAS, but excluding (to the extent included in computing such consolidated stockholders' equity) any amounts
attributable to Disqualified Stock of such Person. For purposes of this definition, with respect to the Company, "Person" shall mean the Company, and "Subsidiaries" shall mean Restricted Subsidiaries. 

        "Corporate Trust Office" means the principal office of the Trustee at which at any particular time its corporate trust business shall be
principally administered, which office as of the date of execution of this Indenture is Sixth Street and Marquette Avenue, N9303-120, Minneapolis, Minnesota 55479, Attention: Corporate
Trust Services. 

        "CPOs" means the Company's outstanding certificados de participaci?n ordinarios, or any
securities of the Company issued in replacement thereof. 

        "CPO Trustee" means the trustee with respect to the Company's outstanding CPOs issued pursuant to the Trust Agreement, dated as of
November 19, 1989, between Nacional Financiera, S.N.C. and the Company. 

        "Currency Agreement" means any foreign exchange contract, currency swap agreement or other similar agreement or arrangement. 

6

   
        "Custodian" means the Trustee, in its capacity as custodian with respect to the Notes in global form, or any successor entity thereto. 

        "Default" means any event which is, or after notice or passage of time or both would be, an Event of Default. 

        "Default Rate" shall have the meaning assigned to such term in Section 6.02. 

        "Defaulted Interest" shall have the meaning assigned to such term in Section 3.10. 

        "Definitive Note" means a certificated Note registered in the name of the Holder thereof and issued in accordance with Section 3.08
hereof. 

        "Depositary" means, with respect to the Notes issuable or issued in whole or in part in global form, the Person specified in
Section 3.05 hereof as the Depositary with respect to the Notes, and any and all successors thereto appointed as depositary hereunder and having become such pursuant to the applicable
provisions of this Indenture. 

        "Designated Investment Bank" means the United States-based branch of any of the following investment banks selected by the Company: Bear
Stearns & Co., Credit Suisse First Boston Corporation, Houlihan Lokey Howard & Zukin Capital, J.P. Morgan Securities, Lehman Brothers, Merrill Lynch & Co. or Morgan
Stanley & Co., or their respective successors, provided, that such investment bank has not been engaged to render investment banking services to
the Company or KCS or their respective subsidiaries in the six months preceding the date of delivery of such opinion and agrees not to render investment banking services to the Company or KCS or their
respective subsidiaries in the six month period following the date of delivery of such opinion; provided, however, that notwithstanding the limitation
of the foregoing proviso, J.P. Morgan Securities may render services to the Company with respect to the transactions covered by the engagement letter, dated as of October 1, 2001, between the
Company and J.P. Morgan Securities. 

        "Disqualified Stock" of any Person means any Capital Stock of such Person that, by its terms (or by the terms of any security into which
it is convertible or for which it is exercisable, redeemable or
exchangeable), matures, or is mandatorily redeemable, pursuant to a sinking fund obligation or otherwise, or is redeemable at the option of the holder thereof, in whole or in part, on or prior to
May 1, 2008, except to the extent that such Capital Stock is solely redeemable with or exchangeable for, either mandatorily or at the option of such Person, any Capital Stock of such Person
that is not Disqualified Stock. 

        "Dollars" or "$" means the currency of the United States of America. 

        "DTC" means The Depository Trust Company, a New York corporation, and any successors thereto. 

        "Euroclear" means Euroclear Bank S.A./N.V., as operator of the Euroclear System. 

        "Escrow Agent" shall mean Wells Fargo Bank, N.A., in its capacity as escrow agent under the Escrow Agreement. 

        "Escrow Agreement" shall mean that certain Escrow Agreement entered into by the Company and the Escrow Agent as of the date hereof. 

        "Event of Default" shall have the meaning assigned to such term in Section 6.01. 

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

        "Extension Election" shall have the meaning assigned to such term in Section 3.01(b). 

        "Extension Fee" shall have the meaning assigned to such term in Section 3.01(b). 

7

 

        "Global Note" has the meaning assigned to such term in Section 2.01. 

        "Global Note Legend" means the legend set forth in Section 2.02, which is required to be placed on all Global Notes issued under
this Indenture. 

        "GM Put" means the obligation of the Company and its Subsidiaries to repurchase shares of Capital Stock of TMM Multimodal pursuant to the
Stockholder Agreement dated as of June 30, 2000, between the Company, TMM Multimodal and EMD Holdings, Inc. 

        "Group" shall have the meaning assigned to such term in Section 5.12. 

        "Grupo TFM" means Grupo Transportación Ferroviaria Mexicana, S.A. de C.V., a corporation organized and existing under the
laws of the United Mexican States. 

        "GTFM Disposition" means any (i) sale, conveyance, transfer or other disposition (or series of related sales, conveyances,
transfers or other dispositions) of the Capital Stock or assets of TMM Holdings, TMM Multimodal, Grupo TFM, or TFM (or any successor of any of them), (ii) merger or consolidation (or approval
of any merger or consolidation) with or of TMM Holdings, TMM Multimodal, Grupo TFM or TFM (or any successor of any of them), or (iii) issuance of Capital Stock of (x) TMM Holdings or TMM
Multimodal (or any successor of either of them), or (y) Grupo TFM or TFM (or any successor of either of them). In the case of any issuance of Capital Stock under clause (iii)(y), the Net
Cash Proceeds of such GTFM Disposition shall mean the amount of any dividends or distributions received by the Company or any Restricted Subsidiary from Grupo TFM or TFM (or any successor of either of
them) on or after the date of such issuance of Capital Stock of Grupo TFM or TFM (or any successor of either of them), less the amount of all foreign, Federal, state and local taxes payable by the
Company or any Restricted Subsidiary as a direct consequence of such GTFM Disposition, including in connection with the payment of such dividends or distributions (including, without limitation, taxes
withheld in connection with repatriation of such proceeds), net of any tax benefits derived in respect of such GTFM Disposition or such dividends or distributions (referred to herein as
"group-level taxes"); provided that the amount of such Net Cash Proceeds shall be limited to
(A) the product of (1) the Company's and its Restricted Subsidiaries' percentage economic interest in Grupo TFM and TFM at the time of the issuance of such Capital Stock or at the time
such dividends or distributions are made, whichever is greater, and (2) the net proceeds received by Grupo TFM or TFM from the issuance of such Capital Stock (net of all foreign, Federal, state
and local taxes paid by Grupo TFM or TFM as a direct consequence of the receipt by Grupo TFM or TFM of proceeds from the issuance of Capital Stock, including in connection with the payment of such
dividends or distributions (including, without limitation, taxes withheld in connection with repatriation of such proceeds), net of any tax benefits derived in respect of such dividends or
distributions), less (B) the amount of any group-level taxes deducted from Net Cash Proceeds pursuant to this provision. There shall be no duplication of any taxes that are otherwise deducted
pursuant to the preceding sentence. Net Cash Proceeds as determined under clause (iii)(y) shall be in addition to, and not in lieu of or in substitution for, any VAT Proceeds that may be
calculated based on dividends or distributions by Grupo TFM or TFM to the Company or any Restricted Subsidiary. 

        "Guarantee" means, as applied to any Indebtedness of any other Person (the "Primary
Obligor"), (i) a guarantee (other than by endorsement of negotiable instruments for collection in the ordinary course of business), direct or indirect, in any manner, of
any part or all of such Indebtedness or (ii) an agreement, direct or indirect, contingent or otherwise, (A) providing assurance of the payment or performance (or payment of damages in
the event of non-performance) of any part or all of such Indebtedness, including, without limiting the foregoing, reimbursement obligations with respect to amounts drawn on letters of
credit, (B) to purchase property, securities or services for the purpose of assuring the holder of such Indebtedness of the payment of such Indebtedness, or (C) to maintain working
capital, equity capital or other financial statement condition or liquidity of the Primary Obligor so as to enable the Primary Obligor to pay such Indebtedness. Notwithstanding anything herein to the 

8

 

contrary,
a Guarantee shall not include any agreement providing for indemnification. The amount of a guarantee shall be deemed to be the maximum amount of the Indebtedness guaranteed for which the
guarantor could be held liable under such guarantee. When used with respect to the Notes, a "Guarantee" means the guarantee by the Guarantors of all or any part of the Notes, in accordance with
Article Fourteen. 

        "Guarantee Obligations" shall have the meaning assigned to such term in Section 14.01. 

        "Guarantors" means those Persons named as the "Guarantors" in the first paragraph of this Indenture and their respective successors and
assigns, and any other Person that pursuant to Section 5.14 or Article Fourteen is required to provide a Guarantee of the Company's obligations under the Notes, this Indenture and the
Collateral Documents. 

        "Holder" means a Person in whose name a Note is registered in the Note Register. 

        "IAS" means accounting principles issued by the International Accounting Standards Committee as in effect from time to time;  provided, that with respect to the
obligations of the Company under Articles Five and Eleven, "IAS" means accounting principles issued by the
International Accounting Standards Committee as in effect on the date of this Indenture, in each case, as consistently applied by the Company. 

        "Indebtedness" with respect to any Person means (without duplication) any liability, whether or not contingent, (i) in respect of
borrowed money (whether or not the recourse of the lender is to the whole of the assets of such Person or only to a portion thereof) or evidenced by bonds, notes, debentures or similar instruments, or
(ii) representing the balance deferred and unpaid of the purchase price of any property, conditional sales obligations and obligations under any title retention agreement (but excluding trade
account payables and other accrued current liabilities arising in the ordinary course of business), and shall also include (without duplication) (a) any Capitalized Lease Obligations,
(b) the maximum fixed repurchase price of any Disqualified Stock of such Person, (c) obligations of others secured by a Lien to which any property or asset, including leasehold interests
under Capitalized Lease Obligations and any other tangible or intangible property rights, owned or held by such Person is subject, whether or not the obligation secured thereby shall have been assumed
(provided, that, if the obligations have not been assumed, such obligations shall be deemed to be in an amount equal to the lesser of (x) the
amount of the obligation so secured and (y) the fair market value of the property or properties to which the Lien relates, as determined in good faith by the Board of Directors of such Person
and as evidenced by a Board Resolution), (d) reimbursement obligations in respect of letters of credit (other than letters of credit issued for the benefit of trade creditors in the ordinary
course of business of such Person in connection with obtaining goods, materials or services), (e) net obligations under Interest Rate Agreements or similar agreements or Currency Agreements of
such Person, (f) Attributable Debt, and (g) guarantees with respect to the foregoing items (regardless of whether the foregoing items would appear as a liability on a balance sheet of
such Person prepared on a consolidated basis in accordance with IAS); provided, that, for the purpose of computing the amount of Indebtedness of such
Person outstanding at any time, such items shall be excluded to the extent that they would be eliminated as intercompany items for purposes of such Person's consolidated financial statements. For
purposes of the preceding sentence, the "maximum fixed repurchase price" of any Disqualified Stock which does not have a fixed repurchase price shall be calculated in accordance with the terms of such
Disqualified Stock as if such Disqualified Stock were purchased on any date on which Indebtedness shall be required to be determined pursuant to this Indenture, and if such price is based upon, or
measured by, the fair market value of such Disqualified Stock (or any equity security for which it may be exchanged or converted), such fair market value shall be determined in good faith by the Board
of Directors of such Person and evidenced by a Board Resolution. The amount of Indebtedness of any Person at any date will be the outstanding balance at such date of all unconditional obligations of
such Person described above and the maximum liability, assuming the 

9

 

occurrence
of the contingencies giving rise to the obligation, of any contingent obligations of such Person described above. Notwithstanding anything in this definition to the contrary, "Indebtedness"
shall not include (i) customer advance payments and customer deposits received by the Company or any Restricted Subsidiary in the ordinary course of business or (ii) revenue and costs of
voyages in process. 

        "Indenture" means this instrument as originally executed or as it may from time to time be supplemented or amended by one or more
indentures supplemental hereto entered into pursuant to the applicable provisions hereof. 

        "Initial Issuance Date" means the date of this Indenture. 

        "Initial Notes" means the Senior Secured Notes due 2007 issued to the Escrow Agent under the terms of the Escrow Agreement on the Initial
Issuance Date. 

        "Interest Payment Date" means the Stated Maturity of an installment of interest on the Notes. 

        "Interest Rate Agreement" means any interest rate protection agreement, interest rate future agreement, interest rate option agreement,
interest rate swap agreement, interest rate cap agreement, interest rate collar agreement, interest rate hedge agreement, option or future contract or other similar agreement or arrangement. 

        "J.B. Hunt Agreement" means the Memorandum of Agreement, dated as of February 28, 2002, as amended by the Amendment to the
Memorandum of Agreement, dated as of December 20, 2002, and the Second Amendment to the Memorandum of Agreement, dated as of October 14, 2003, together with the Promissory Note, dated as
of February 28, 2002, as amended through the Initial Issuance Date. 

        "KCS" means Kansas City Southern, a Delaware corporation, and its subsidiaries. 

        "KCS Transaction" means the transactions contemplated by that certain Acquisition Agreement dated as of April 21, 2003, by and
among KCS, Kara Sub, Inc., the Company, TMM Holdings and TMM Multimodal. 

        "Lien" means any lien, mortgage, deed of trust, fideicomiso de garantía,
pledge, assignment (including any assignment of rights to receive payments of money), security interest, charge or encumbrance of any kind (including any conditional sale or other title retention
agreement or any lease in the nature thereof), including the creation of any interest in or option on or based on the value of any asset, and any agreement to give a lien, mortgage, deed of trust,  fideicomiso de
garantía, pledge, assignment (including any assignment of rights to receive payments of money), security interest, charge
or other encumbrance of any kind, or to create any interest in or option on or based on the value of any asset. The term "Lien" shall also include any
restriction on the disposition or pledge of any securities, interests or assets imposed by applicable law or by contract, including, without limitation, securities received in connection with any
Qualifying Disposition and interests arising in connection with any joint venture agreement, shareholders agreement, partnership agreement or similar agreement. 

        "Maturity," when used with respect to any Note, means the date on which the principal (or a portion thereof) of such Note becomes due and
payable as therein or herein provided, whether at Stated Maturity or by declaration of acceleration, call for redemption or otherwise, including any date to which the Maturity may be extended pursuant
to Section 3.01. 

        "Mexican Government" means the Federal government of the United Mexican States, including any agency, authority, instrumentality or
political subdivision thereof. 

        "Minimum Cash Rate" shall have the meaning assigned to such term in Section 3.01(c)(i). 

        "Moody's" means Moody's Investors Service, Inc. or any successor thereto. 

10

 

        "Net Cash Proceeds" means cash payments in U.S. dollars or a currency freely convertible into U.S. dollars received by the Company or any
of its Restricted Subsidiaries (including (x) any cash payments received by way of deferred payment of principal pursuant to a note or installment receivable or otherwise or amounts eliminated
from any reserve referred to in clause (v) below, but only as and when received or eliminated, (y) any cash dividends or other cash distributions received by the Company or any of its
Restricted Subsidiaries, and (z) any cash payments received upon the disposition of any non-cash proceeds of any Asset Disposition or Qualifying Disposition but only as and when
received) from any Asset Disposition or Qualifying Disposition after the Initial Issuance Date (after repayment of any Indebtedness owed to any Person that becomes due by reason of such Asset
Disposition or Qualifying Disposition other than (A) Indebtedness owed to an Affiliate or Associate of the Company (other than (x) obligations arising in the ordinary course of business
consistent with past practice owed to a Restricted Subsidiary that is not a Wholly Owned Subsidiary and (y) any payments required to be made on the Notes), (B) Indebtedness under the
Receivables Securitization Facility or the J.B. Hunt Note except to the extent permitted by Section 5.13 and (C) Indebtedness of the Company or any Guarantor that ranks junior to the
Notes or the Guarantees, respectively), in each case net of the amount of (i) brokers' and advisors' fees and commissions payable in connection with such Asset Disposition or Qualifying
Disposition, (ii) all foreign, Federal, state and local taxes payable as a direct consequence of such Asset Disposition or Qualifying Disposition, including in connection with the payment of a
dividend, or the making of a distribution, by a consolidated Subsidiary of the Company of such cash payments to the Company or any consolidated Subsidiary of the Company (including, without
limitation, taxes withheld in connection with repatriation of such proceeds), net of any tax benefits derived in respect of such dividend or distribution, (iii) the fees and expenses
attributable to such Asset Disposition or Qualifying Disposition to the extent not included in clause (i), except to the extent payable to any Affiliate or Associate of the Company,
(iv) any amount required to be paid to any Person (other than the Company or any of its Restricted Subsidiaries) owning a beneficial interest in the property or assets sold, and
(v) deduction of appropriate amounts to be provided by the Company or its Restricted Subsidiaries as a reserve, in accordance with IAS, against any liabilities retained or created by the
Company or any Restricted Subsidiary of the Company associated with such assets after such Asset Disposition or Qualifying Disposition, including, without limitation, any indemnification obligation or
purchase price adjustment associated with such Asset Disposition or Qualifying Disposition. For purposes of the foregoing, Net Cash Proceeds shall be deemed to include awards of compensation for any
asset or property or group thereof taken by condemnation or eminent domain and insurance proceeds for the loss of or damage to any asset or property;  provided that any such awards or proceeds that do
not exceed $10 million in the aggregate shall not be deemed to be Net Cash Proceeds unless
within 180 days after the receipt thereof such asset or property has not been replaced or repair or construction has not commenced, provided,
however, that if, at any time such repair or
construction is abandoned or otherwise discontinued prior to completion or is not diligently pursued, such remaining awards or proceeds, as the case may be, shall constitute Net Cash Proceeds at such
time. 

        "Note Register" and "Note Registrar" shall have the respective meanings specified in
Section 3.05. 

        "Notes" means, collectively, the Initial Notes and the Additional Notes treated as a single class of securities, as amended or
supplemented from time to time in accordance with the terms of this Indenture. 

        "Notice of Sale" means each of, or all of, as the context shall require, the notice of sale to be delivered pursuant to
Section 6.03 by the Trustee to the applicable Collateral Agent in accordance with the Collateral Documents in the form annexed to the applicable Collateral Document. 

        "Offer" shall have the meaning assigned to such term in Section 5.12. 

11

 

        "Officers' Certificate" means a certificate signed by the Chairman of the Board of Directors, a Vice Chairman of the Board of Directors,
the Director General, the President, or any Vice President, and the Director of Administration, the Treasurer, the Secretary or any Assistant Treasurer or Assistant Secretary, of the Company, and
delivered to the Trustee. Each such Officers' Certificate shall comply with Section 1.02. 

        "Offset Amount" means, in respect of, or in satisfaction of the obligations of Grupo TFM, the Company or any Restricted Subsidiary in
respect of, the Put, any amounts that (i) are paid or agreed to be paid by the Company, any Restricted Subsidiary, Grupo TFM, TFM or any Subsidiary of TFM to the Mexican Government, or
(ii) are offset by the Company, any Restricted Subsidiary, Grupo TFM, TFM or any Subsidiary of TFM, in each case in a single transaction or a series of related transactions, with respect to or
against any receipt of proceeds from, or settlement of, the VAT Claim; provided, that any such amounts paid, agreed to be paid or offset by the Company, any Restricted Subsidiary, Grupo TFM, TFM or
any Subsidiary of TFM prior to or within three (3) months following receipt of proceeds from, or settlement of, the VAT Claim shall be deemed to be part of a single transaction or series of
related transactions. 

        "Opinion of Counsel" means a written opinion of counsel, who may be counsel for or an employee of the Company, which is acceptable in form
and substance to the Trustee. Each Opinion of Counsel shall comply with Section 1.02. 

        "Outstanding" when used with reference to Notes means, as of the date of determination, all Notes authenticated and delivered by the
Trustee under this Indenture, except 

        (a)   Notes
theretofore canceled by the Trustee or delivered to the Trustee for cancellation; 

        (b)   Notes
or portions thereof for the payment or redemption of which moneys shall have been deposited in trust with the Trustee,  provided, that if such Notes are to be redeemed, notice of such redemption shall
have been given pursuant to this Indenture, or provision satisfactory
to the Trustee shall have been made for the giving of such notice; and 

        (c)   Notes
in lieu of or in substitution for which other Notes shall have been authenticated and delivered pursuant to Section 3.03; 

        provided, however, that in determining whether the Holders of the requisite principal amount of the Outstanding Notes have given any
request, demand, authorization, direction, notice, consent or waiver hereunder, Notes owned by the Company, any Guarantor or any other obligor of the Notes or any Person that, at such time, is an
Affiliate of the Company, of any Guarantor or of such other obligor, shall be disregarded and deemed not to be Outstanding, except that, in determining whether the Trustee shall be protected in
relying upon any such request, demand, authorization, direction, notice, consent or waiver, only Notes which the Trustee knows to be so owned shall be so disregarded. Notes so owned which have been
pledged in good faith may be regarded as Outstanding if the pledgee establishes to the satisfaction of the Trustee the pledgee's right so to act with respect to such Notes and that the pledgee is not
the Company, any Guarantor or any other obligor upon the Notes or any Affiliate of the Company, of any Guarantor or of such other obligor. 

        "Partial Qualifying Disposition" means a GTFM Disposition (other than a disposition to or merger or consolidation with the Company or
another Restricted Subsidiary) involving the Capital Stock of TMM Holdings or TMM Multimodal in which (i) after giving effect to such transaction, the Company and its Restricted Subsidiaries
control, directly or indirectly, more than 50% of the Capital Stock of TMM Multimodal which under ordinary circumstances (not dependent upon the happening of a contingency) has voting power to elect a
majority of the board of directors of TMM Multimodal, (ii) at least 80% of the consideration received from such transaction is in the form of cash, (iii) the Company and the Guarantors
receive the opinion described in clause (1) under the definition of a Qualifying Disposition (for the purposes of this definition, notwithstanding the amount of the consideration for 

12

 

such
transaction and fair market value shall be determined on an enterprise value basis), and (iv) such transaction is effected in accordance with any applicable release provisions in this
Indenture or in the Collateral Documents. 

        "Participant" means, with respect to the Depositary, Euroclear or Clearstream, a Person who has an account with the Depositary, Euroclear
or Clearstream, respectively (and, with respect to DTC, shall include Euroclear and Clearstream). 

        "Paying Agent" means any Person authorized by the Company to pay the principal of, premium, if any, and interest and Additional Amounts,
if any, on the Notes on behalf of the Company. 

        "Person" or "person" means any individual, corporation, partnership, joint venture, trust,
unincorporated organization or other entity or a government or any agency or political subdivision thereof. 

        "Place of Payment" means the principal office of the Trustee and such other place or places where the principal of, premium, if any, and
interest and Additional Amounts, if any, on the Notes are payable. 

        "Predecessor Note" of any particular Note means every previous Note evidencing all or a portion of the same debt as that evidenced by such
particular Note; and, for the purposes of this definition, any Note authenticated and delivered under Section 3.03 in exchange for or in lieu of a mutilated, destroyed, lost or stolen Note
shall be deemed to evidence the same debt as the mutilated, destroyed, lost or stolen Note. 

        "Principal Market" means the New York Stock Exchange, Inc. or, if the ADSs are not traded on the New York Stock
Exchange, Inc., then the principal securities exchange or trading market for the ADSs. 

        "Put" means the existing joint and several obligation of the Company and KCS to purchase the shares of TFM owned by the Mexican Government
pursuant to the Agreements, dated January 31, 1997 and June 9, 1997, among the Mexican Government, Grupo TFM, the Company and KCS. 

        "Qualifying Disposition" means any GTFM Disposition which (a) is an Exchange Transaction, (b) is a Partial Qualifying
Disposition, (c) is a Receivables Securitization Facility Foreclosure or (d) meets each of the following requirements: 

        (1)   if
the transaction involves more than $10 million, individually, or if all transactions entered into after the Initial Issuance Date involve more than
$25 million in the aggregate, the Company and the Guarantors receive an opinion from a Designated Investment Bank to the effect that the consideration to be received in connection with such
transaction is fair, from a financial point of view, to the Company and its Restricted Subsidiaries; 

        (2)   the
cash consideration to be received in such transaction is equal to or greater than 35% of the principal amount of the Outstanding Notes plus accrued and unpaid
interest thereon at the time of the consummation of such transaction, provided, that the amount of any notes or other obligations received by the
Company or any such Restricted Subsidiary from such transferee that are immediately converted by the Company or such Restricted Subsidiary into cash (to the extent of the cash received) shall be
deemed to be cash for this purpose; 

        (3)   any
consideration other than cash to be received in such transaction shall be in the form of securities (i) issued by a Person that is eligible to register
securities on Form F-3 or Form S-3 under the Securities Act and such securities so received are either (x) freely transferable under the Securities Act or
(y) entitled to the benefits of a registration rights agreement pursuant to which the issuer of such securities is required to effect a registration under the Securities Act of the securities
received in such transaction not later than six months after the closing of the transaction (subject to customary 

13

 

blackout,
hold-back and other similar provisions) and (ii) constituting no more than 40% of the outstanding fully-diluted Capital Stock of such Person; and 

        (4)   the
party to which such shares of Capital Stock are sold, issued, conveyed, transferred or otherwise disposed of or with or into which the Company or any Restricted
Subsidiary (or any successor of any of them) is merged is not, immediately prior to the transaction, an Affiliate or Associate of the Company. 

        "Qualifying PEMEX Securitization Transaction" means a transaction in which: 

        (1)   certain
assets of the Company or a Restricted Subsidiary used or intended to be used in connection with services to be rendered to, or contracts with, Petroleos
Mexicanos are transferred at fair market value to a Person formed for the sole purpose of participating in the Qualifying PEMEX Securitization Transaction; 

        (2)   the
Company receives an opinion as to the fairness of such transaction to the Company from a financial point of view issued by a Designated Investment Bank; 

        (3)   the
assets of such Person shall not consist of assets transferred to such Person by the Company or any Restricted Subsidiary except in connection with a Qualifying PEMEX
Securitization Transaction; and 

        (4)   such
Person incurs Indebtedness secured by such assets that is not guaranteed by, does not have recourse to, and does not constitute Indebtedness of, the Company or any
of its Restricted Subsidiaries. 

        "Qualifying Subordinated Indebtedness" means Indebtedness of the Company that (i) is subordinated in right of payment to the Notes,
(ii) does not require any principal payments prior to the Stated Maturity of the principal of the Notes (as such may be extended pursuant to Section 3.01(b)) and (iii) has
aggregate annual cash interest payments not in excess of the lesser of (a) the sum of (1) 2% of the principal amount of such Qualifying Subordinated Indebtedness plus (2) the
annual cash interest requirements on all Notes retired by the Company prior to the issuance date of such Qualifying Subordinated Indebtedness through the application of VAT Proceeds (less any cash
interest requirements in excess of 2% per annum on Qualifying Subordinated Indebtedness previously issued) and (b) 8% per annum of the principal amount of such Qualifying Subordinated
Indebtedness. 

        "Receivables Securitization Facility" means the receivables securitization facility established pursuant to the following documents (and
all other documents related to such facility), in each case as in effect from time to time, and any replacement, refinancing or extension thereof: (i) that certain Third Amended and Restated
Master Trust Agreement, dated as of August 19, 2003, by and among the Company, TMM Logistics, S.A. de C.V., Naviera Del Pacifico, S.A. de C.V. and The Bank of New York, as trustee, as amended
by Amendment Number One to Third Amended and Restated Master Trust Agreement, dated as of December 29, 2003; (ii) that certain Amended and Restated Option Agreement, dated as of
October 25, 2002, by and between TMM Multimodal and The Bank of New York, as amended by that certain Amendment Number Three to Amended and Restated Option Agreement, dated as of
August 19, 2003, and that certain Amendment Number Four to Amended and Restated Option Agreement, dated as of December 29, 2003, by and between TMM Multimodal and The Bank of New York;
(iii) that certain Amended and Restated Put Option Agreement, dated as of October 25, 2002, by and between TMM Multimodal and The Bank of New York, as amended by that certain Amendment
Number Three to Amended and Restated Put Option Agreement, dated as of August 19, 2003, and that certain Amendment Number Four to Amended and Restated Put Option Agreement, dated as of
December 29, 2003, by and between TMM Multimodal and The Bank of New York; (iv) that certain Series 2003-A Supplement, dated as of August 19, 2003, as amended
by Amendment Number One to Series 2003-A Supplement, dated as of December 29, 2003, by and among the Company, TMM Logistics, S.A. de C.V., Naviera Del Pacifico, S.A. de C.V.,
The Bank of New 

14

 

York,
and Maple Bank GmbH; (v) those certain Series 2003-A Investor Certificates issued by the Company in a principal amount equal to U.S. $54,000,000.00 and authorized by
the Series 2003-A Supplement; (vi) that certain Amended and Restated Account Control Agreement, dated as of October 25, 2002, by and among The Bank of New York, as
Trustee, the Company, Naviera del Pacifico, S.A. de C.V. and TMM Logistics, S.A. de C.V. and Citibank, N.A., as amended by that certain Amendment Number One to the Amended and Restated Account Control
Agreement, dated as of December 10, 2002 and as amended by that certain Amendment Number Two to the Amended and Restated Account Control Agreement, dated as of August 19, 2003;
(vii) that certain Amended and Restated Paying Agency and Conversion Agreement, dated as of October 25, 2002, by and among The Bank of New York, as Trustee, the Company and Naviera del
Pacifico, S.A. de C.V. and TMM Logistics, S.A. de C.V. and Citibank, N.A., as amended by that certain Amendment Number One to the Amended and Restated Paying Agency and Conversion Agreement, dated as
of December 10, 2002 and as amended by that certain Amendment Number One to the Amended and Restated Paying Agency and Conversion Agreement, dated as of August 19, 2003; and
(viii) that certain Amended and Restated Guaranty, dated as of October 25, 2002, made by the Company, The Bank of New York, as Trustee, and the other Beneficiaries as defined therein as
amended by that certain Amendment Number One to the Amended and Restated Guaranty, dated as of December 10, 2002 and as reaffirmed by that certain Reaffirmation of Guaranty dated as of
May 9, 2003. 

        "Receivables Securitization Facility Foreclosure" means any disposition of the Capital Stock of TMM Multimodal upon a foreclosure (or sale
in lieu of foreclosure) of such Capital Stock by the holders of the certificates under the Receivables Securitization Facility (or by any trustee or collateral agent acting thereunder) pursuant to the
Receivables Securitization Facility or any collateral document relating to the Capital Stock of TMM Multimodal. 

        "Redemption Date," when used with respect to any Note to be redeemed, in whole or in part, means the date fixed for such redemption by or
pursuant to this Indenture. 

        "Redemption Price," when used with respect to any Note to be redeemed, means the price (exclusive of accrued and unpaid interest and
Additional Amounts, if any) payable in cash at which it is to be redeemed pursuant to this Indenture. 

        "Regular Record Date" for the interest payable on any Interest Payment Date on the Notes means the April 15 or October 15
(whether or not a Business Day), as the case may be, next preceding such Interest Payment Date; provided, that if the Company exercises the Extension
Election, the Regular Record Dates for the Interest Payment Dates occurring during the extended term of the Notes shall be April 15, 2007, July 15, 2007, October 15, 2008, and
January 15, 2008. 

        "Release Date" means the date that the Notes are released from escrow by the Escrow Agent pursuant to the terms of the Escrow Agreement. 

        "Repurchase Date" shall have the meaning assigned to such term in Section 5.12. 

        "Repurchase Price," when used with respect to any Note to be repurchased, means the price payable in cash at which it is to be repurchased
pursuant to Section 5.12 or 5.13. 

        "Responsible Officer," when used with respect to the Trustee, means any officer within the Corporate Trust Office (or any successor
office) of the Trustee, including, without limitation, any Vice President, any Assistant Vice President, any Senior Trust Officer, any Trust Officer or any other officer of the Trustee customarily
performing functions similar to those performed by any of the above designated officers, who shall, in any case, be responsible for the administration of this Indenture or have familiarity with it,
and also means, with respect to particular corporate trust matters, any other officer to whom such matter is referred because of his knowledge of and familiarity with the particular subject. 

15

 

        "Restricted Subsidiary" means any consolidated Subsidiary of the Company other than (i) Grupo TFM and its consolidated Subsidiaries
and (ii) any Subsidiary of the Company formed solely for the purpose of, and whose operations consist solely of, participating in a Qualifying PEMEX Securitization Transaction. 

        "Securities Act" means the Securities Act of 1933, as amended from time to time, or any successor act. 

        "Special Record Date" for the payment of any Defaulted Interest on the Notes means a date fixed by the Company pursuant to
Section 3.10. 

        "Standard & Poor's" means Standard & Poor's Ratings Group, a division of McGraw-Hill Inc., or any
successor thereto. 

        "Stated Maturity," when used with respect to any Note or any installment of interest thereon, means the date specified in such Note as the
fixed date on which the principal of such Note or such installment of interest is due and payable. 

        "Subsidiary" means any Person of which any other Person directly or indirectly owns or controls stock (or other ownership interests) which
under ordinary circumstances (not dependent upon the happening of a contingency) has voting power to elect a majority of the board of directors (or equivalent governing body) of such Person. 

        "Surviving Entity" shall have the meaning assigned to such term in Section 11.01 (1). 

        "TFM" means TFM, S.A. de C.V., a corporation organized and existing under the laws of the United Mexican States. 

        "TMM Holdings" means TMM Holdings, S.A. de C.V., a corporation organized and existing under the laws of the United Mexican States. 

        "TMM Multimodal" means TMM Multimodal, S.A. de C.V., a corporation organized and existing under the laws of the United Mexican States. 

        "Transfer" shall have the meaning assigned to such term in Section 11.01. 

        "Trustee" means the Person named as the "Trustee" in the first paragraph of this instrument until a successor Trustee shall have become
such pursuant to the applicable provisions of this Indenture, and thereafter "Trustee" shall mean such successor Trustee. 

16

  

        "Trust Indenture Act" means the Trust Indenture Act of 1939, as amended, and as in force at the date on which this Indenture was executed,
except as provided in Section 10.05. 

        "U.S. Government Obligations" shall have the meaning assigned to such term in Section 12.01. 

        "VAT Cash Proceeds" means VAT Proceeds in U.S. Dollars or a currency freely convertible into U.S. Dollars (including any cash payments
received upon the disposition or conversion of non-cash VAT Proceeds but only as and when received). 

        "VAT Claim" means the claim of TFM against the Mexican Government for refund of a value added tax payment and a related value added tax
certificate in the original amount of 2,111,111,790 Mexico pesos, including amounts payable pursuant to the October 11, 2002 judgment, or any similar subsequent judgment, by the  Tribunal Colegiado en Materia
Administrativa del Primer Circuito in favor of TFM related to such claim. 

        "VAT Proceeds" means the amount (whether in cash or other property) of: 

        (a)   any
dividends or distributions received by the Company or any Restricted Subsidiary from Grupo TFM or TFM (or any successor of either of them) on or after the date on
which TFM (or its successor) receives any proceeds from the Mexican Government in connection with the VAT Claim, less the amount of all foreign, Federal, state and local taxes payable by the Company
or any Restricted Subsidiary as a direct consequence of the receipt of amounts in respect of the VAT Claim or the payment of any such dividend or distribution) (referred to herein as
"group-level taxes"); provided, that the amount of VAT Proceeds shall be limited to (A) the
product of (1) the Company's and its Restricted Subsidiaries' percentage economic interest in Grupo TFM and TFM at the time such proceeds are received by TFM or at the time such dividends or
distributions are made, whichever is greater, and (2) (x) such proceeds (net of the amount of legal, accounting, advisors' and other fees and expenses payable by the Company, Grupo TFM or TFM
in connection with the VAT Claim (provided that for such netting purposes the amount of legal, accounting, advisors' and other fees of the Company shall not exceed $1,250,000) and all foreign,
Federal, state and local taxes payable as a direct consequence of the receipt by TFM of amounts in respect of the VAT Claim, including in connection with the payment of such dividends or distributions
by Grupo TFM or TFM) less (B) the sum of (x) the amount of any group-level taxes deducted from VAT Proceeds pursuant to this clause, (y) the amount of any proceeds described in
clause (b) below and (z) any Offset Amount (such amount being referred to herein as the "Maximum VAT Amount"); and 

        (b)   any
proceeds otherwise received by the Company or any Restricted Subsidiary from the Mexican Government in respect of the VAT Claim, less the amount of all foreign,
Federal, state and local taxes payable by the Company or any Restricted Subsidiary as a direct consequence of the receipt of such proceeds. 

There
shall be no duplication of any taxes that are otherwise deducted pursuant to the preceding sentence. VAT Proceeds shall be in addition to, and not in lieu of or in substitution for, any Net Cash
Proceeds under clause (iii)(y) of the definition of "GTFM Disposition" that may be calculated based on dividends or distributions by Grupo TFM or TFM to the Company or any Restricted
Subsidiary. In the event that Grupo TFM or TFM has received proceeds with respect to the VAT Claim and a GTFM Disposition covered by clause (iii)(y) of the definition of "GTFM Disposition" has
also occurred, then dividends or distributions received by the Company or any Restricted Subsidiary from Grupo TFM or TFM shall be deemed to be VAT Proceeds until the Maximum VAT Amount has been
reached. 

        "Volume Weighted Average Price" means, for any security as of any date, the dollar volume-weighted average price in Dollars for such
security on the Principal Market during the period beginning at 9:30 a.m. New York time (or such other time as the Principal Market publicly announces is the official open of trading), and
ending at 4:00 p.m. New York time (or such other time as the Principal Market publicly announces is the official close of trading) as reported by Bloomberg Financial Markets 

17

 

("Bloomberg") through its "Volume at Price" functions, or, if the foregoing does not apply, the dollar volume-weighted average price in Dollars of such
security in the over-the-counter market on the electronic bulletin board for such security during the period beginning at 9:30 a.m. New York time (or such other time as
the over-the-counter market publicly announces is the official open of trading), and ending at 4:00 p.m. New York time (or such other time as the
over-the-counter market publicly announces is the official close of trading), as reported by Bloomberg, or, if no dollar volume-weighted average price is reported for such
security by Bloomberg for such hours, the average of the highest closing bid price and the lowest closing ask price, each in Dollars, of any of the market makers for such security as reported in the
"pink sheets" by the National Quotation Bureau, Inc. 

        "Voluntary Reduction" shall have the meaning assigned to such term in Section 3.01(c)(iv). 

        "Voting Agreement" means the Voting Agreement dated as of December 9, 2003, among the Company and certain holders of the Company's
91/2% Notes due 2003 and 101/4% Senior Notes due 2006. 

        "Wholly Owned Subsidiary" of any Person shall mean any Subsidiary of such Person of which all of the shares of Capital Stock (except
directors' qualifying shares) are at the time directly or indirectly owned
by such Person, by one or more Wholly Owned Subsidiaries of such Person or by such Person and one or more of its Wholly Owned Subsidiaries. 

        SECTION 1.02    COMPLIANCE CERTIFICATES AND OPINIONS.    Upon any application or request by the Company to the Trustee
to take any action under any provision of this Indenture, the Company shall furnish to the Trustee an Officers' Certificate stating that all conditions precedent, if any, provided for in this
Indenture relating to the proposed action have been complied with and an Opinion of Counsel stating that, in the opinion of such counsel, all such conditions precedent, if any, have been complied
with, except that in the case of any such application or request as to which the furnishing of such documents is specifically required by any provision of this Indenture relating to such particular
application or request, no additional certificate or opinion need be furnished. 

        Every
certificate or opinion with respect to compliance with a condition or covenant provided for in this Indenture shall include: 

        (1)   a
statement that each individual signing such certificate or opinion has read such covenant or condition and the definitions herein relating thereto; 

        (2)   a
brief statement as to the nature and scope of the examination or investigation upon which the statements or opinions contained in such certificate or opinion are
based; 

        (3)   a
statement that, in the opinion of each such individual, he has made such examination or investigation as is necessary to enable him to express an informed opinion as
to whether or not such covenant or condition has been complied with; and 

        (4)   a
statement as to whether, in the opinion of each such individual, such condition or covenant has been complied with. 

        SECTION 1.03    FORM OF DOCUMENTS DELIVERED TO TRUSTEE.    In any case
where several matters are required to be certified by, or covered by an opinion of, any specified Person, it is not necessary that all such matters be certified by, or covered by the opinion of, only
one such Person, or that they be so certified or covered by only one document, but one such Person may certify or give an opinion with respect to some matters and one or more other such Persons as to
other matters, and any such Person may certify or give an opinion as to such matters in one or several documents. 

        Any
certificate, statement or opinion of an officer of the Company may be based, insofar as it relates to legal matters, upon a certificate or opinion of or representations by counsel,
unless such officer knows, or in the exercise of reasonable care should know, that the certificate or opinion or 

18

 

representations
with respect to the matters upon which such officer's certificate, statement or opinion is based are erroneous. Any certificate, statement or Opinion of Counsel may be based, insofar
as it relates to factual matters, upon a certificate, statement or opinion of or representations by an officer or officers of the Company stating that the information with respect to such factual
matters is in the possession of the Company, unless such counsel knows, or in the exercise of reasonable care should know, that the certificate, statement or opinion or representations with respect to
such matters are erroneous. 

        Where
any Person is required to make, give or execute two or more applications, requests, consents, certificates, statements, opinions or other instruments under this Indenture, they
may, but need not, be consolidated and form one instrument. 

        SECTION 1.04    NOTICES, ETC. TO TRUSTEE AND COMPANY.    Any request,
demand, authorization, direction, notice, consent, waiver or act of Holders or other document provided or permitted by this Indenture to be made upon, given or furnished to, or filed with, 

        (1)   the
Trustee by any Holder or by the Company shall be made, given, furnished or filed in writing and hand delivered, mailed, first class, postage prepaid, or sent by
facsimile transmission to or with the Trustee at the principal office of the Trustee located at Sixth Street and Marquette Avenue, N9303-120, Minneapolis, MN, 55479, telephone number
(612) 316-1445, facsimile (612) 667-9825, or at any other address previously furnished in writing to any Holder or to the Company by the Trustee, and unless
otherwise herein expressly provided, any such document shall be deemed to be sufficiently made, given, furnished or filed upon its receipt by a Responsible Officer of the Trustee,  provided, that if
receipt of any facsimile transmission is not confirmed in writing or by facsimile by the Trustee, a copy of such transmission shall be
delivered by hand or mailed, first class, postage prepaid, to the Trustee, or 

        (2)   the
Company by the Trustee or by any Holder shall be made, given furnished or filed in writing and hand delivered, mailed, first class, postage prepaid, or sent by
facsimile transmission to or with the Company addressed to it at Avenida de la Cúspide, No. 4755, Colonia Parques del Pedregal, 14010 Mexico, D.F., Attention: Chief Financial
Officer, telephone number (011) 52-55-5629-8866, facsimile number (011) 52-55-5629-8899, at the office maintained
by the Company pursuant to Section 5.02 hereof or at any other address previously furnished in writing to the Trustee by the Company, provided,
that if receipt of any facsimile transmission is not confirmed in writing or by facsimile by the Company, a copy of such transmission shall be delivered by hand or mailed, first class, postage
prepaid, to the Company. 

        SECTION 1.05    NOTICE TO HOLDERS; WAIVER.    

        (a)   Where
this Indenture provides for notice to Holders of Notes of any event, such notice shall be sufficiently given (unless otherwise herein expressly provided) if in
writing and mailed, first class, postage prepaid, to each Holder of a Note affected by such event at the address of such Holder as it appears in the Note Register, not later than the latest date and
not earlier than the earliest date prescribed for the giving of such notice, and in the event of suspension of regular mail service or for any other reason it shall be impracticable to give such
notice to Holders of Notes by mail, then such notification to Holders of Notes shall be made in the manner specified in Section 1.05(b) and such notification shall constitute sufficient
notification for every purpose hereunder. In any case where notice to Holders of Notes is given by mail, neither the failure to mail such notice, nor any defect in any notice so mailed, to any
particular Holder of a Note shall affect the sufficiency of such notice with respect to other Holders of Notes or the sufficiency of any notice by publication to Holders of Notes given as provided in
Section 1.05(b). In computing any time period for the mailing or giving of notice of any event hereunder, the computation shall be made by counting back or forward, as appropriate, from the
date of the event in question, without counting the date of such event but counting as a full day the ending date of such period no matter when notice was mailed or given on such ending date. 

19

 

        (b)   In
case by reason of the suspension of regular mail service or by reason of any other cause it shall be impracticable to give such notice by mail, then such notification
as shall be made with the approval of the Trustee shall constitute a sufficient notification for every purpose hereunder. 

        (c)   Where
this Indenture provides for notice in any manner, such notice may be waived in writing by the Person entitled to receive such notice, either before or after the
event, and such waiver shall be the equivalent of such notice. Waivers of notice by Holders shall be filed with the Trustee, but such filing shall not be a condition precedent to the validity of any
action taken in reliance upon such waiver. 

        SECTION 1.06    CONFLICT WITH TRUST INDENTURE ACT.    If any provision
hereof limits, qualifies or conflicts with (i) another provision hereof which is required to be included in this Indenture by any provision of the Trust Indenture Act, or (ii) any
provision of the Trust Indenture Act, such required provision or such provision of the Trust Indenture Act, as the case may be, shall control. If any provision of this Indenture modifies or excludes
any provision of the Trust Indenture Act that may be so modified or excluded, the former provision shall be deemed to apply or be excluded, as the case may be, to or from this Indenture. Until such
time as this Indenture shall be qualified under the Trust Indenture Act, this Indenture, the Company, the Guarantors and the Trustee shall be deemed for all purposes hereof to be subject to and
governed by the Trust Indenture Act to the same extent as would be the case if this Indenture were so qualified on the date hereof. 

        SECTION 1.07    EFFECT OF HEADINGS AND TABLE OF CONTENTS.    The
Article and Section headings herein and the Table of Contents are for convenience only and shall not affect the construction hereof. 

        SECTION 1.08    SUCCESSORS AND ASSIGNS.    All covenants and
agreements in this Indenture by the Company shall bind its successors and assigns, whether so expressed or not. 

        SECTION 1.09    SEPARABILITY CLAUSE.    In case any provision in this
Indenture or in the Notes shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 

        SECTION 1.10    BENEFITS OF INDENTURE.    Nothing in this Indenture or
in the Notes, express or implied, shall give to any Person, other than the parties hereto and their successors hereunder and the Holders, any benefit or any legal or equitable right, remedy or claim
under this Indenture. 

        SECTION 1.11    GOVERNING LAW.    This Indenture, the Guarantees and
the Notes shall be governed by, construed and enforced in accordance with the laws of the State of New York, without regard to the conflict of laws principles thereof. 

        SECTION 1.12    SUBMISSION TO JURISDICTION.    Each of the parties to
this Indenture hereby irrevocably submits to the jurisdiction of any New York State or Federal court sitting in the Borough of Manhattan in The City of New York in any action or proceeding arising out
of or relating to the Notes, the Guarantees, this Indenture or the Collateral Documents, and all such parties hereby irrevocably agree that all claims in respect of such action or proceeding may be
heard and determined in such New York State or Federal court and hereby irrevocably waive, to the fullest extent that they may legally do so, the defense of an inconvenient forum to the maintenance of
such action or proceeding. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING
ARISING OUT OF OR RELATING TO THIS INDENTURE, THE NOTES, THE GUARANTEES, THE COLLATERAL DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY. 

20

 

        SECTION 1.13    LEGAL HOLIDAYS.    In any case where any Interest
Payment Date, Redemption Date or Stated Maturity of any Note shall not be a Business Day at any Place of Payment, then (notwithstanding any other provision of this Indenture or of the Notes) payment
of the principal of, premium, if any, interest, if any, or Additional Amounts, if any, on such Note need not be made at such Place of Payment on such date, but may be made on the next succeeding
Business Day at such
Place of Payment with the same force and effect as if made on the Interest Payment Date or Redemption Date, or at the Stated Maturity, provided, that no
additional interest shall accrue with respect to the payment due on such date for the period from and after such Interest Payment Date, Redemption Date or Stated Maturity, as the case may be. 

        SECTION 1.14    APPOINTMENT OF AGENT FOR SERVICE.    By the execution
and delivery of this Indenture, the Company hereby appoints CT Corporation System as its authorized agent upon which process may be served in any legal action or proceeding which may be instituted in
any Federal or State court in the Borough of Manhattan, The City of New York, arising out of or relating to the Notes or this Indenture, but for that purpose only. Service of process upon such agent
at the office of such agent at 1633 Broadway, New York, New York 10019, and written notice of said service to the Company by the Person serving the same addressed as provided by Section 1.04,
shall be deemed in every respect effective service of process upon the Company in any such legal action or proceeding. Such appointment shall be irrevocable so long as the Holders of Notes shall have
any rights pursuant to the terms thereof or of this Indenture until the appointment of a successor by the Company with the consent of the Trustee and such successor's acceptance of such appointment.
Each of the Company and the Guarantors further agree to take any and all actions, including the execution and filing of any and all such documents and instruments, as may be necessary to continue such
designation and appointment of such agent or successor. 

        SECTION 1.15    COUNTERPART ORIGINALS.    The parties may sign any
number of copies of this Indenture. Each signed copy shall be an original, but all of them together represent the same agreement. 

 
 

ARTICLE TWO
  NOTE FORMS    
    

        SECTION 2.01    FORMS GENERALLY.    The Notes and the Trustee's
certificate of authentication shall be in substantially the forms set forth in this Article, with such appropriate insertions, omissions, substitutions and other variations as are required or
permitted by this Indenture and may have such letters, numbers or other marks of identification and such legends or endorsements placed thereon as may be required to comply with the rules of any
securities exchange or as may, consistently herewith, be determined by the officers executing such Notes as evidenced by their execution of the Notes. Any such legend or endorsement shall be delivered
in writing to the Trustee by the Company. 

        The
Definitive Notes shall be printed, lithographed or engraved on steel engraved borders or may be produced in any other manner permitted by the rules of any securities exchange on
which the Notes may be listed, all as determined by the officers executing such Notes, as evidenced by their execution of such Notes. 

        The
terms and provisions contained in the Notes shall constitute, and are hereby expressly made, a part of this Indenture and the Company, the Guarantors and the Trustee, by their
execution and delivery of this Indenture, expressly agree to such terms and provisions and to be bound thereby. However, to the extent any provision of any Note conflicts with the express provisions
of this Indenture, the provisions of this Indenture shall govern and be controlling. 

        Upon
their original issuance, Notes shall be issued in the form of one or more Global Notes ("Global Notes") registered in the name of the Trustee, as Depositary, or its nominee, for
direct 

21

 

registration
by the Trustee, as Depositary, to the respective accounts of beneficial owners of the Notes represented thereby (or such other accounts as they may direct). Such accounts shall be
established based upon information provided to the Trustee by either the Company or the beneficial owners of the Notes. 

        SECTION 2.02    FORM OF FACE OF NOTE.    [IF THE NOTE IS A
GLOBAL NOTE, THEN INSERT: THIS NOTE IS A GLOBAL NOTE WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. THIS NOTE MAY NOT
BE EXCHANGED IN WHOLE OR IN PART FOR A NOTE REGISTERED, AND NO TRANSFER OF THIS NOTE IN WHOLE OR IN PART MAY BE REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITARY OR A NOMINEE THEREOF,
EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.] 

        [IF
THE NOTE IS A GLOBAL NOTE AND THE DEPOSITORY TRUST COMPANY IS TO BE THE DEPOSITARY THEREFOR, THEN INSERT: UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF
CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.] 

 
 

Grupo Tmm, S.A.
  Senior Secured Note due 2007    
    

	No.	
	 	 	 	$	

        Grupo
Tmm, S.A., a corporation duly organized and existing under the laws of the United Mexican States (herein called the "Company", which term includes any successor Person under the
Indenture hereinafter referred to), for value received, hereby promises to pay to                        , or its registered
assigns, the principal sum of                        Dollars [IF THIS NOTE IS
A GLOBAL NOTE, THEN INSERT:, or such other principal amount as may be set forth in the records of the Trustee in accordance with the Indenture,] on May 1, 2007 (subject to extension
to May 1, 2008 as provided in the Indenture), and to pay interest thereon in cash from the Release Date, or from the most recent Interest Payment Date for which interest has been paid or duly
provided for, or, if the date hereof is after a Regular Record Date and before the following Interest Payment Date, then from such following Interest Payment Date, semiannually on May 1 and
November 1 in each year, commencing November 1, 2004, at the rate of 101/2% per annum (subject to reduction or increase as provided in the Indenture), until the principal
hereof is paid or made available for payment. 

        On
each Interest Payment Date occurring on or prior to May 1, 2007, the Company may elect to pay interest due on such Interest Payment Date in cash and through the issuance of
(i) Additional Notes, in denominations of $1.00 and integral multiples thereof, or (ii) ADSs of the Company, having a value equal to the interest due (in excess of the portion of such
interest paid in cash at the Cash Interest Rate), which ADSs shall be issued at a 5% discount to the 20 trading day Volume Weighted Average Price per ADS, or any combination thereof, in each case as
more fully set forth in the Indenture; provided, that, in the event the Company elects to pay any portion of the interest in Additional Notes or ADSs on
any Interest Payment Date as provided herein, it shall pay cash interest 

22

 

on
such Interest Payment Date at the interest rate of 2% per annum or such higher rate as the Company may elect with respect to such Interest Payment Date. In the event the Company elects to pay any
portion of the interest due on any Interest Payment Date other than in cash, the annual interest rate applicable for such Interest Payment Date shall be as set forth below: 

	Interest Payment Date
 
	 	Applicable Interest Rate
	 
	

November 1, 2004	
 	

12.00	
%
	May 1, 2005	 	12.00	%
	November 1, 2005	 	12.00	%
	May 1, 2006	 	12.00	%
	November 1, 2006	 	12.50	%
	May 1, 2007	 	13.00	%

        In
the event the Company exercises its option to extend the maturity date of the Notes to May 1, 2008 as provided in the Indenture, the interest rate shall be 12% per annum during
such extended term (subject to reduction as described above), and such interest shall be payable quarterly on May 1, 2007,
August 1, 2007, November 1, 2007 and February 1, 2008, in advance, and only in cash, as provided in the Indenture. 

        The
interest payable pursuant to this Note, and punctually paid or duly provided for, on any Interest Payment Date will, as provided in such Indenture, be paid to the Person in whose
name this Note (or one or more Predecessor Notes) is registered at the close of business on the Regular Record Date for such interest, which shall be the April 15 or October 15 (whether
or not a Business Day), as the case may be, next preceding such Interest Payment Date. Any such interest not so punctually paid or duly provided for will forthwith cease to be payable to the Holder on
such Regular Record Date and may either be paid to the Person in whose name this Note (or one or more Predecessor Notes) is registered at the close of business on a Special Record Date for the payment
of such Defaulted Interest to be fixed by the Company, notice whereof shall be given to Holders of Notes not less than 10 days prior to such Special Record Date, or be paid at any time in any
other lawful manner not inconsistent with the requirements of any securities exchange on which the Notes may be listed and upon such notice as may be required by such exchange, all as more fully
provided in such Indenture. 

        Payment
of the principal of (and premium, if any), cash interest and Additional Amounts, if any, on this Note will be made at the office or agency of the Company maintained for that
purpose in New York, New York, in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts; or at the option of the
Company payment of cash interest and Additional Amounts, if any, may be made by check mailed to the address of the Person entitled thereto as such address shall appear in the Note Register;  provided
that any Holder of more than $2 million in aggregate principal amount of Notes that has so elected and given wire transfer instructions
to the Company shall be entitled to receive all payments of principal and interest and Additional Amounts with a Regular Record Date after the date the Company receives such notice with respect to
Notes held by such Holders by wire transfer of immediately available funds within the United States to the accounts specified by the Holders thereof. Until otherwise designated by the Company, the
Company's office or agency in New York will be the office of the Trustee or its agent maintained for such purpose. The Notes will be issued in denominations of $1.00 and integral multiples thereof.
Such payment shall be in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts. 

        Initially,
Wells Fargo Bank, N.A., the Trustee under the Indenture, will act as Paying Agent and Note Registrar. The Company may change any Paying Agent or Note Registrar without notice
to any Holder. The Company or any of its Subsidiaries may act in any such capacity. 

23

 

        [IF
THIS NOTE IS A GLOBAL NOTE, INSERT: Partial payment of interest in Additional Notes or ADRs shall be made by deposit of such Additional Notes or ADRs with the Custodian
for DTC.] [IF THIS NOTE IS A DEFINITIVE NOTE, INSERT: Partial payment of interest in Additional Notes or ADRs shall be made by delivering
certificates representing such Additional Notes or ADRs to the address of the Holder entitled to receive the same as shown on the Note Register.] 

        Reference
is hereby made to the further provisions of this Note set forth on the reverse hereof, which further provisions shall for all purposes have the same effect as if set forth at
this place. 

        Unless
the certificate of authentication hereon has been executed by the Trustee referred to on the reverse hereof by manual signature, this Note shall not be entitled to any benefit
under the Indenture or be valid or obligatory for any purpose. 

24

   
        In Witness Whereof, the Company has caused this instrument to be duly executed. 

	DATED:	 	 	 	 	 
	

 	
 	
GRUPO TMM, S.A.
	

 	
 	

By:	

    
	
 	

 
	

ATTEST:	
 	

 	

 	
 	

 
	
	 	 	 	 	 
	 	 	 	 	 	 

25

   
        SECTION 2.03    FORM OF REVERSE OF NOTE.    This Note is one of a duly
authorized issue of Notes of the Company designated as its Senior Secured Notes due 2007 (herein called the "Notes"), limited in aggregate principal
amount to $21,094,605, except for Additional Notes and Notes issued pursuant to Sections 3.04, 3.08, 3.09, 4.08, 5.12, 5.13 and 10.06 of the Indenture, issued under an Indenture, dated as of
January 13, 2004 (herein called the "Indenture"), by and among the Company, the Guarantors and Wells Fargo Bank, N.A., as trustee (herein called
the "Trustee," which term includes any successor trustee under the Indenture), to which Indenture and all indentures supplemental thereto reference is
hereby made for a statement of the respective rights, limitations of rights, duties and immunities thereunder of the Company, the Guarantors, the Trustee and the Holders of the Notes and of the terms
upon which the Notes are, and are to be, authenticated and delivered. 

        The
Company hereby further agrees, subject to the limitations and exceptions set forth below, that if any deduction or withholding for any present or future taxes, duties, levies,
imposts, assessments or other governmental charges of the United Mexican States (or any political subdivision or taxing authority thereof or therein) shall at any time be required by such jurisdiction
or any such political subdivision or taxing authority (or by the jurisdiction of incorporation, seat of management or residence for tax purposes of any successor to the Company (a
"Successor Jurisdiction")) in respect of any amounts to be paid by the Company under the Notes
("Taxes"), then, unless the Company pays the amount of such deduction or withholding directly to the Mexican Government, or is entitled to a credit
against such payment, the Company will pay in cash to the Holder of a Note such additional amounts ("Additional Amounts") as may be necessary in order
that the net amounts paid to the Holder of such Note who, with respect to any such Tax after such deduction or withholding (including any withholding or deduction imposed on Additional Amounts), shall
be not less than the amounts specified in such Note to which such Holder would have received if such Taxes had not been withheld or deducted; provided,
however, that the Company shall not be required to make any payment of Additional Amounts for or on account of: 

        (a)   any
Tax, which would not have been imposed but for (i) the existence of any present or former connection between such Holder (or between a fiduciary, settlor,
beneficiary, member or shareholder of, or possessor of a power over, such Holder, if such Holder is an estate, trust, partnership or corporation) and the taxing jurisdiction or any political
subdivision or territory or possession thereof or area subject to its jurisdiction, including, without limitation, such Holder (or such fiduciary, settlor, beneficiary, member, shareholder or
possessor) being or having been a citizen or resident thereof or being or having been present or engaged in trade or business therein or having or having had a permanent establishment therein or
(ii) the presentation of a Note (where presentation is required) for payment on a date more than 30 days after the date on which such payment became due and payable or the date on which
payment thereof is duly provided for, whichever occurs later; 

        (b)   any
estate, inheritance, gift, sale, transfer, personal property or similar tax, assessment or other governmental charge; 

        (c)   any
Tax, which is payable otherwise than by withholding from payments of (or in respect of) principal of or interest on the Notes; 

        (d)   any
Tax, that is imposed or withheld by reason of the failure to comply by the Holder or the beneficial owner of a Note with a written request of the Company addressed
to the Holder furnished at least 60 days prior to the first payment date with respect to which the Company applies this clause (d) (or in the event of any subsequent change in any such
requirement at least 60 days prior to the first payment date for which such change is effective) (i) to provide information, documents and other evidence concerning the nationality,
residence or identity of the Holder or such beneficial owner or (ii) to make and deliver any declaration or other similar claim (other than a claim for refund of a Tax, withheld by the Company)
or satisfy any information or reporting requirement, which, in the case of (i) or (ii), is required or imposed by a statute, treaty, regulation or administrative practice of the taxing 

26

 

jurisdiction
as a precondition to exemption from all or part of such tax, assessment or other governmental charge; or 

        (e)   any
combination of items (a), (b), (c) and (d); 

nor
shall Additional Amounts be paid with respect to any payment of the principal of or interest on any Note to any Holder who is a fiduciary or partnership or other than the sole beneficial owner of
such payment to the extent such payment would be required by the laws of the jurisdiction (or any political subdivision or taxing authority thereof or therein) to be included in the income for tax
purposes of a beneficiary or settlor with respect to such fiduciary or a member of such partnership or a beneficial owner who would not have been entitled to such Additional Amounts had it been the
Holder of the Note. 

        Notwithstanding
the foregoing, the limitations on the Company's obligation to pay Additional Amounts set forth in clause (d) above will not apply if: 

        (i)    the
provision of information, documentation or other evidence described in such clause (d) would be materially more onerous, in form, in procedure or in the
substance of information disclosed, to a Holder or beneficial owner of a Note than comparable information or other reporting requirements imposed under United States tax law (including the United
States—Mexico Income Tax Treaty), regulation and administrative practice (such as Internal Revenue Service Forms W-8 and W-9); or 

        (ii)   Rule 3.31.9
issued by the Secretaría de Hacienda y Crédito Público
(Ministry of Finance and Public Credit) on March 6, 2000 or a substantially similar successor of such rule is in effect, unless (a) the provision of the information, documentation or
other evidence described in clause (d) is expressly required by statute, regulation, ruling or administrative practice in order to apply Rule 3.31.9 (or successor rule), the Company
cannot obtain such information, documentation or other evidence on its own through reasonable diligence and the Company otherwise would meet the requirements for application of Rule 3.31.9 (or
successor rule) or (b) in the case of a Holder or beneficial owner of a Note that is a pension fund or other tax-exempt organization, payments to such Holder or beneficial owner
would be subject to Taxes at a rate less than that provided by Rule 3.31.9 (or successor rule) if the information, documentation or other evidence required under clause (d) above were
provided. 

        In
addition, clause (d) above shall be construed to require that a non-Mexican pension or retirement fund or other Holder or beneficial owner of a Note register with
the Ministry of Finance and Public Credit of Mexico for the purpose of establishing eligibility for an exemption from or reduction of Taxes. 

        The
Company shall make any required withholding or deduction and remit the full amount deducted or withheld to the appropriate taxing authority, as and when required by applicable law.
The Company shall furnish to the Trustee, within 30 days after the date the payment of any Taxes is due, evidence of such payment by the Company. The Company shall deliver copies of such
evidence to Holders of the Notes or the Paying Agent upon request. 

        The
Company shall pay any present or future stamp, court, documentary or other similar Taxes, charges or levies that arise in the United Mexican States or any of its political
subdivisions (or any Successor Jurisdiction) from the execution, delivery, registration of, or enforcement of rights under, the Notes, the Guarantees, this Indenture or the Collateral Documents. 

        The
Notes may be redeemed at the option of the Company in whole but not in part at any time, upon not less than 30 days' nor more than 60 days' notice by mail, at a
Redemption Price equal to the principal amount thereof plus accrued and unpaid interest and Additional Amounts, if any, to the date fixed for redemption if, as a result of any change in or amendment
to the laws or any regulations or 

27

 

rulings
promulgated thereunder of the Mexican Government (or of any political subdivision or taxing authority thereof or therein) or any change in the official application or interpretation of such
laws, regulations or rulings, or any change in the official application or interpretation of, or any execution of or amendment to, any treaty or treaties affecting taxation to which the Mexican
Government (or such political subdivision or taxing authority) is a party, which becomes effective on or after the Initial Issuance Date, the Company is or would be required on the next succeeding
Interest Payment Date to pay additional amounts with respect to the Notes at a rate in excess of that in effect at the Initial Issuance Date, and the payment of such Additional Amounts cannot be
avoided by the use of any reasonable measures available to the Company. The Company will also pay to the Holders on the Redemption Date any Additional Amounts which would otherwise be payable. 

        The
Notes are subject to redemption upon not less than 30 days' nor more than 60 days' notice by mail at any time, in whole or from time to time in part, at the election of
the Company, at a Redemption Price equal to 100% of the principal amount thereof, plus accrued and unpaid interest and Additional Amounts, if any, to the Redemption Date. In the case of any redemption
pursuant to this paragraph, interest installments whose Stated Maturity is on or prior to the applicable Redemption Date will be payable to the Holders of such Notes, or one or more Predecessor Notes,
of record at the close of business on the relevant Record Dates referred to on the face hereof, all as provided in the Indenture. 

        In
the event of redemption of this Note in part only, a new Note or Notes for the unredeemed portion hereof will be issued in the name of the Holder, or the Person designated by such
Holder, hereof upon the cancellation hereof. 

        The
Indenture provides that, in the event of a Change of Control (as defined in the Indenture), the Company will be obligated to offer to purchase all of the Notes then outstanding at a
Repurchase Price equal to 100% of the principal amount thereof plus accrued and unpaid interest and Additional Amounts, if any, thereon to the Repurchase Date. 

        The
Indenture provides that, subject to certain conditions, in the event of certain Asset Dispositions and Qualifying Dispositions and receipt by the Company of VAT Cash Proceeds, the
Company will be obligated to offer to purchase on a pro rata basis Notes at a Repurchase Price equal to 100% of the principal amount thereof plus accrued interest and Additional Amounts, if any,
thereon to the Repurchase Date, with the Net Cash Proceeds of such Asset Disposition or Qualifying Disposition or VAT Cash Proceeds. 

        If
an Event of Default shall occur and be continuing, the principal of all the Notes may be declared due and payable in the manner and with the effect provided in the Indenture. 

        As
provided in the Indenture and subject to the conditions set forth therein, the Company may terminate all of its obligations under the Notes, except certain specified obligations,
91 days following the deposit with the Trustee, in trust, of money and/or U.S. Government Obligations which, through the payment of interest and principal in respect thereof in compliance with
their terms, will provide money in an amount sufficient to pay the principal of, and premium, if any, and each installment of interest and Additional Amounts, if any, on the Outstanding Notes at
maturity or upon redemption. 

        The
Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Company and the rights of the Holders
of the Notes under the Indenture at any time by the Company and the Trustee with the consent of the Holders of a majority in aggregate principal amount of the Notes at the time Outstanding. The
Indenture also contains provisions permitting the Holders of specified percentages in aggregate principal amount of the Notes at the time Outstanding, on behalf of the Holders of all the Notes, to
waive compliance by the Company with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences. Any such consent or waiver by the Holder of this Note 

28

 

shall
be conclusive and binding upon such Holder and upon all future Holders of this Note and of any Note issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof,
whether or not notation of such consent or waiver is made upon this Note. 

        No
reference herein to the Indenture and no provision of this Note or of the Indenture shall alter or impair the obligations of the Company, which are absolute and unconditional, to pay
the principal of (and premium, if any) and interest and Additional Amounts, if any, on this Note at the times, place, and rate, and in the coin or currency, herein prescribed. 

        As
provided in the Indenture and subject to certain limitations therein set forth, the transfer of this Note is registrable in the Note Register, upon surrender of this Note for
registration of transfer at the office or agency of the Company in New York, New York, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company and the
Note Registrar duly executed by, the Holder hereof or his attorney duly authorized in writing, and thereupon one or more new Notes, of authorized denominations and for the same aggregate principal
amount, will be issued to the designated transferee or transferees. 

        The
Notes are issuable only in registered form without coupons in denominations of $1.00 and any integral multiple thereof. As provided in the Indenture and subject to certain
limitations therein set forth, Notes are exchangeable for a like aggregate principal amount of Notes of a different authorized denomination, as requested by the Holder surrendering the same. 

        No
service charge shall be made for any such registration of transfer or exchange, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge
payable in connection therewith. 

        The
Company, the Guarantors, the Trustee and any agent of the Company, the Guarantors, or the Trustee may treat the Person in whose name this Note is registered as the owner hereof for
all purposes (subject to the provisions on the face hereof), whether or not this Note be overdue, and neither the Company, the Guarantors, the Trustee nor any such agent shall be affected by notice to
the contrary. 

        No
past, present or future director, officer, employee, agent, attorney-in-fact, incorporator or stockholder (direct or indirect) of the Company (or any such
successor entity), as such, shall have any liability for any obligations of the Company under the Notes or the Indenture or for any claim based on, in respect of, or by reason of, such obligations or
their creation. 

        All
terms used in this Note which are defined in the Indenture shall have the meanings assigned to them in the Indenture. 

        Customary
abbreviations may be used in the name of a Holder of a Security or an assignee, such as: TEN COM (= tenants in common), TEN ENT (tenants by the entireties), JT TEN (=joint
tenants with right of survivorship and not as tenants in common), CUST (=Custodian), and U/G/M/A (=Uniform Gifts to Minors Act). 

        [IF
THIS NOTE BEARS A CUSIP NUMBER, INSERT: Pursuant to a recommendation promulgated by the Committee on Uniform Security Identification Procedures, the Company has caused
CUSIP numbers to be printed on the Notes as a convenience to the Holders of the Notes. No representation is made as to the accuracy of such numbers as printed on the Notes and reliance may be placed
only on the other identification numbers printed hereon.] 

29

 

[ASSIGNMENT
FORM]

If you the holder want to assign this Note, fill in the form below: 

I
or we assign and transfer this Note to 

	

	

	

	

(Print or type assignee's name, address and zip code and social security number or tax ID number) and irrevocably appoint
	

	

agent to transfer this Note on the books of the Company. The agent may substitute another to act for him.
	

	

Date:	
 	

Your signature:	

	

 	
 	

(Sign exactly as your name appears on the other side of this Note)
	

Signature Guarantee:	
 	

30

  

 
 

[FORM OF OPTION OF HOLDER TO ELECT PURCHASE]    
    

        If
you wish to elect to have this Note purchased by the Company pursuant to Section 5.12 (Repurchase Offer upon a Change of Control) or 5.13 (Excess Cash Proceeds Offer) of the
Indenture, check the box: 

	o	Section 5.12	 	 	 	o	Section 5.13

        If
you wish to elect to have only part of this Note purchased by the Company pursuant to Section 5.12 or 5.13 of the Indenture, state the amount:
$                        . 

	Date:	 	 	 	Your signature:	    
	 	 
	 	 	 	 	(Sign exactly as your name appears on the other side of this Note)
	Signature Guarantee:	 	 	 	

        SECTION 2.04    FORM OF GUARANTEE    

 
 

SENIOR SECURED GUARANTEE    
    

        For value received, the undersigned Guarantors (as defined in the Indenture referred to in the Note upon which this notation is endorsed) hereby unconditionally
guarantee on a senior secured basis (such Guarantee by the Guarantor being referred to herein as the "Guarantee") the due and punctual payment of the
principal of, premium, if any and interest and Additional Amounts, if any, on the Notes, whether at maturity, by acceleration, call for redemption, upon any Offer or Excess Cash Proceeds Offer or
otherwise, the due and punctual payment of interest on the overdue principal, premium and interest (including, to the extent lawful and as specified in the Notes, interest on any overdue interest) and
Additional Amounts, if any, on the Notes and the due and punctual performance of all other obligations of the Company to the Holders or the Trustee, all in accordance with the terms set forth in
Article Fourteen of the Indenture (as defined below). This Guarantee will become effective in accordance with Article Fourteen of the Indenture and its terms shall be evidenced therein. The validity
and enforceability of any Guarantee shall not be affected by the fact that it is not affixed to any particular Note. 

        Capitalized
terms used but not defined herein shall have the meanings ascribed to them in the Indenture dated as of January 13, 2004 among Grupo TMM, S.A., the Guarantors and
Wells Fargo Bank, N.A., as Trustee, as amended or supplemented (the "Indenture"). 

        The
Guarantee shall be governed by and construed in accordance with the laws of the State of New York without regard to principles of conflicts of laws to the extent that the application
of the laws of another jurisdiction would be required thereby. 

        The
obligations of the Guarantors to the Holders and to the Trustee pursuant to this Guarantee and the Indenture are expressly set forth in Article Fourteen of the Indenture and
reference is hereby made to such Indenture for the precise terms of this Guarantee. 

        No
past, present or future director, officer, employee, agent, attorney-in-fact, incorporator or stockholder (direct or indirect) of the
Guarantors (or any such successor entity), as such, shall have any liability for any obligations of the Guarantors under this Guarantee or the Indenture or for any claim based on, in respect of, or by
reason of, such obligations or their creation. 

        This
is a continuing Guarantee and shall remain in full force and effect and shall be binding upon the Guarantors and their successors and assigns until full and final payment of all of
the Company's obligations under the Notes and Indenture or until released or until the Notes are legally defeased in 

31

 

accordance
with the Indenture, and shall inure to the benefit of the successors and assigns of the Trustee and the Holders, and, in the event of any transfer or assignment of rights by any Holder or
the Trustee, the rights and privileges herein conferred upon that party shall automatically extend to and be vested in such transferee or assignee, all subject to the terms and conditions hereof. This
is a guarantee of payment and not of collectibility. 

        This
Guarantee shall not be valid or obligatory for any purpose until the certificate of authentication on the Note upon which this Guarantee is noted shall have been executed by the
Trustee under the Indenture by the manual signature of one of its authorized officers. 

        The
obligations of the Guarantors under this Guarantee shall be limited to the extent necessary to ensure that it does not constitute a fraudulent conveyance under applicable law. 

        THE
TERMS OF ARTICLE FOURTEEN OF THE INDENTURE ARE INCORPORATED HEREIN BY REFERENCE. 

        In
Witness Whereof, the Guarantors have caused this instrument to be duly executed. 

	DATED:	 	 	 	 	 
	

 	
 	
[GUARANTORS]
	

 	
 	

By:	

    
	
 	

 
	

ATTEST:	
 	

 	

 	
 	

 
	
	 	 	 	 	 

        SECTION 2.05    FORM OF TRUSTEE'S CERTIFICATE OF
AUTHENTICATION.    The Trustee's certificate of authentication on all Notes shall be in substantially the following form: 

        This
is one of the Notes referred to in the within-mentioned Indenture. 

	DATED:	 	 	 	 	 
	

 	
 	
WELLS FARGO BANK, N.A.,

as Trustee
	

 	
 	

By:	

    
 Authorized Signatory	
 	

 
	

ATTEST:	
 	

 	

 	
 	

 
	
	 	 	 	 	 

32

  

 
 

ARTICLE THREE
  THE NOTES    
    

        SECTION 3.01    TITLE AND TERMS.    

        (a)   The
Notes shall be known and designated as the "Senior Secured Notes Due 2007" of the Company. The aggregate principal amount of Notes which may be authenticated and
delivered from time to time under this Indenture is limited to $21,094,605, except for (i) Additional Notes issued in payment of interest on the Notes as provided in Section 3.01(c), and
(ii) Notes authenticated and delivered upon registration of transfer of, or in exchange for, or in lieu of, other Notes pursuant to Sections 3.04, 3.08, 3.09, 4.08, 5.12, 5.13 and 10.06. 

        (b)   The
Stated Maturity of the principal of the Notes shall be May 1, 2007, unless extended at the option of the Company as set forth below. At any time on or prior
to the 90th day prior to the then scheduled Stated Maturity, the Company may elect (the "Extension Election") to extend the Stated
Maturity of the principal of all of the Notes Outstanding from the then scheduled Stated Maturity to May 1, 2008. In order to validly make the Extension Election, (i) the Company must
provide written notice to the Trustee and the Holders of the Extension Election not later than 90 days prior to the then scheduled Stated Maturity of the principal of the Notes, (ii) the
Company must pay to the Holders of the Notes a cash fee (the "Extension Fee") equal to 4.00% of the principal amount of the Notes Outstanding on
May 1, 2007; (iii) the Company must deposit with the Trustee not later than May 1, 2007 an amount in cash sufficient to pay the interest and Additional Amounts, if any, that would
accrue on the Notes during the first quarterly interest period following such extension (based on the amount of Notes Outstanding on May 1, 2007); and (iv) no Default or Event of Default
shall have occurred and be continuing on May 1, 2007 or shall occur as a result of the Company making the Extension Election. The Company shall deliver to the Trustee at the time of such
Extension Election an Officers' Certificate stating that no Default or Event of Default shall have occurred and be continuing. The Extension Fee shall be paid together with the installment of interest
and Additional Amounts, if any, due on the Interest Payment Date that occurs on May 1, 2007 to the Holder of record on the Regular Record Date with respect to such Interest Payment Date. 

        (c)   The
Notes shall bear interest at the rate of 101/2% per annum, from the Release Date, or from the most recent Interest Payment Date to which interest has
been paid or duly provided for, as the case may be, payable semiannually in arrears on May 1 and November 1 of each year, commencing November 1, 2004, until the principal thereof
is paid or made available for payment; provided, however, that if the Company makes the Extension Election, (i) the interest rate payable during
the additional one year period of the extended term of the Notes shall be 12.00% per annum; (ii) the interest that would accrue for the period ending on July 31, 2007 shall be paid,
quarterly in advance, commencing on May 1, 2007, as set forth in Section 3.01(b); and (iii) the interest due for the remaining term of the Notes shall be paid quarterly in advance
on May 1, 2007, August 1, 2007, November 1, 2007 and February 1, 2008. The record dates for such quarterly interest payment dates shall be April 15, 2007,
July 15, 2007, October 15, 2007 and January 15, 2008 respectively. The interest due on any Interest Payment Date occurring on or prior to May 1, 2007 shall be paid as
follows: 

        (i)    The
Company may pay any portion of the interest due on such Interest Payment Date in cash at the rate of 101/2% per annum;  provided, that the Company shall be required to pay
interest at the rate of at least 2.00% per annum (the "Minimum Cash
Rate") in cash on each Interest Payment Date (the amount of interest that the Company pays in cash on any such Interest Payment Date, expressed as an annual percentage rate, is
referred to herein as the "Cash Interest Rate"). 

        (ii)   On
each Interest Payment Date occurring on or prior to May 1, 2007, the Company may elect to pay any interest due on such Interest Payment Date in excess of the
portion of such 

33

 

interest
paid in cash at the Minimum Cash Rate through the issuance to the Holders of (x) Additional Notes in a principal amount equal to the amount of interest due on such Interest Payment
Date in excess of the portion of such interest paid at the Cash Interest Rate, (y) a number of ADSs equal to the quotient of (A) the interest due on such Interest Payment Date in excess
of the portion of such interest paid at the Cash Interest Rate and (B) the product of (1) 0.95 and (2) the Volume Weighted Average Price per ADS for the 20 trading days
immediately preceding the Record Date for such Interest Payment Date, or (z) a combination of (x) and (y), in any such case in an amount equal to the aggregate amount of interest due on
such Interest Payment Date in excess of the portion of such interest paid at the Cash Interest Rate. In the event that the Company elects to pay any portion of the interest due on any Interest Payment
Date other than in cash as permitted above, the annual interest rate applicable to the interest due on such Interest Payment Date shall be the Applicable Rate set forth below minus the Cash Interest
Rate for such Interest Payment Date: 

	Interest Payment Date
 
	 	Applicable Interest Rate
	 
	

November 1, 2004	
 	

12.00	
%
	May 1, 2005	 	12.00	%
	November 1, 2005	 	12.00	%
	May 1, 2006	 	12.00	%
	November 1, 2006	 	12.50	%
	May 1, 2007	 	13.00	%

        The
Company shall be responsible for the computation of the principal amount of Additional Notes or the number of ADSs to be issued on any Interest Payment Date and shall certify such
amount or number to the Trustee. To the extent that the computation of the principal amount of Additional Notes or the number of ADSs to be issued on any Interest Payment Date would result in the
issuance to any Holder of a fractional Additional Note or a fractional ADS, the Company shall, at its option, either (i) pay cash in respect of such fraction in an amount equal to the principal
amount of such fractional Additional Note or the Volume Weighted Average Price of such fractional ADS, as applicable, or (ii) round such fractional Additional Note or ADS up to the nearest
whole Additional Note or ADS. In computing the fractional Additional Note or ADS applicable to any Holder, the interest due on all Notes owned beneficially or of record by such Holder shall be
aggregated. 

        The
Company shall deliver a notice to the Trustee and the Holders of any election to pay any portion of the interest as provided above in Additional Notes or ADSs on an Interest Payment
Date as provided above at least five Business Days prior to the related Regular Record Date. Such notice shall specify the types and percentage amounts of the non-cash interest to be paid
on such Interest Payment Date. Any Additional Notes issued in payment of interest shall be delivered to the Trustee not later than the close of business on the Business Day immediately preceding the
applicable Interest Payment Date and shall be registered in the name of the Holder entitled to receive such payment of interest. Each such Note shall be dated as of the applicable Interest Payment
Date in respect of which it is issued, shall accrue interest from the applicable Interest Payment Date in respect of which it is issued, shall be an additional obligation of the Company and the
Guarantors and shall be governed by, and entitled to the benefits of, this Indenture, the Guarantees and the Collateral Documents on the same terms as the Notes in respect of which such Additional
Notes were issued (except, as the case may be, with respect to the date of issuance and the principal amount thereof). Any ADSs issued in payment of interest shall be delivered to the Trustee not
later than the close of business on the Business Day immediately preceding the applicable Interest Payment Date and shall be registered in the name of the Holder entitled to receive such payment of
interest. As a condition to the ability of the Company to elect to issue ADSs in payment of any portion of the interest due on any Interest Payment Date, the Company shall have in effect as of such
Interest Payment Date a registration statement under the 

34

 

Securities
Act covering the ADSs to be issued or shall provide to the Trustee an Opinion of Counsel to the effect that no such registration is necessary and that the ADSs to be issued on such Interest
Payment Date will be freely transferable under the Securities Act by any Holder other than an "affiliate" of the Company. 

        Notwithstanding
the foregoing, in the event that the Company makes the Extension Election, (x) the applicable interest rate for each Interest Payment Date occurring during such
extended term shall be 12.00% per annum and (y) all payments of interest due on each Interest Payment Date occurring during such extended term (including May 1, 2007) shall be paid
quarterly in advance on May 1, 2007, August 1, 2007, November 1, 2007, and February 1, 2008, and only in cash. 

        (d)   The
principal of (and premium, if any), interest and Additional Amounts, if any, on the Notes shall be payable at the office or agency of the Company in New York, New
York maintained for such purpose and at any other office or agency maintained by the Company for such purpose; or, at the option of the Company, payment of interest and Additional Amounts, if any, may
be made by check mailed to the address of the Person entitled thereto as such address shall appear in the Note Register; provided that any Holder of
more than $2 million in aggregate principal amount of Notes that has so elected and given wire transfer instructions to the Company shall be entitled receive all payments of principal and
interest and Additional Amounts with a Regular Record Date after the date the Company receives such notice with respect to Notes held by such Holders by wire transfer of immediately available funds
within the United States to the accounts specified by the Holders thereof. Payment of any non-cash interest through the issuance of Additional Notes or the delivery of ADRs shall be
effected by delivery of the certificates representing such Additional Notes or ADRs, in the case of any Global Notes, to the Custodian and, in the case of any Definitive Notes, to the Holder entitled
thereto by mailing such certificates to the address shown on the Note Register. Until otherwise designated by the Company, the Company's office or agency in New York will be the office of the Trustee
or its agent maintained for such purpose. The Notes will be issued in denominations of $1.00 and integral multiples thereof. Such payment shall be in such coin or currency of the United States of
America as at the time of payment is legal tender for payment of public and private debts. 

        Initially,
Wells Fargo Bank, N.A., the Trustee under the Indenture, will act as Paying Agent and Note Registrar. The Company may change any Paying Agent or Note Registrar without notice
to any Holder. The Company or any of its Subsidiaries may act in any such capacity. Non-cash interest, if any, shall be paid by depositing the applicable Additional Notes and/or ADRs with
the Custodian in the case of Global Notes and by mailing the applicable Additional Notes and/or ADRs to the address of the Person entitled thereto as such address shall appear in the Note Register. 

        (e)   The
Notes shall be redeemable as provided in Article Four. 

        (f)    The
Initial Notes and the Additional Notes shall be treated as a single class for all purposes under this Indenture. 

        SECTION 3.02    DENOMINATIONS; PAYMENT CURRENCY.    The Notes shall be
issuable only in fully registered form without coupons and only in denominations of $1.00 and any integral multiple thereof. All cash payments in respect of principal of and premium, if any, and
interest and Additional Amounts on the Notes shall be in United States Dollars. 

        SECTION 3.03    EXECUTION, AUTHENTICATION, DELIVERY AND DATING.    The
Notes shall be signed on behalf of the Company by its Chief Executive Officer, its Director General, its Chief Operating Officer, its Chief Financial Officer, its Director of Administration, its
Treasurer or any other duly authorized officer. Such signatures may be manual or facsimile signatures of the present or any future such authorized officers and may be imprinted or otherwise reproduced
on the Notes. 

        Only
such Notes as shall bear a certificate of authentication substantially in the form hereinbefore recited, manually executed by the Trustee, shall be entitled to the benefits of this
Indenture or be valid 

35

 

or
obligatory for any purpose. Such certificate by the Trustee upon any Note executed by the Company shall be conclusive evidence that the Note so authenticated has been duly authenticated and
delivered hereunder. 

        Notes
bearing the manual or facsimile signatures of individuals who were at any time the proper officers of the Company and the Guarantors shall bind the Company and the Guarantors,
notwithstanding that such individuals or any of them have ceased to hold such offices prior to the authentication and delivery of such Notes or did not hold such offices at the date of such Notes. 

        At
any time and from time to time after the execution and delivery of this Indenture, the Company may deliver Notes executed by the Company and the Guarantors to the Trustee for
authentication. Upon receipt of a Company Order, the Trustee shall thereupon authenticate and deliver such Notes to the Company or as directed by such Company Order, without any further action by the
Company or the Guarantors. 

        Each
Note shall be dated the date of its authentication. 

        SECTION 3.04    TEMPORARY NOTES.    Pending the preparation of
definitive Notes, the Company may execute, and, upon compliance with Section 3.03, the Trustee shall authenticate and deliver, temporary Notes substantially of the tenor of the definitive Notes
in lieu of which they are issued, which are printed, lithographed, typewritten, mimeographed or otherwise produced, in any authorized denomination, and with such appropriate insertions, omissions,
substitutions and other variations as the officers executing such Notes may determine, as evidenced by their execution of such Notes. 

        If
temporary Notes are issued, the Company will cause definitive Notes to be prepared without unreasonable delay. After the preparation of definitive Notes, the temporary Notes shall be
exchangeable for definitive Notes upon surrender of the temporary Notes at the office or agency of the Company in a Place of Payment. Upon surrender for cancellation of any one or more temporary
Notes, the Company shall execute and the Trustee shall authenticate and deliver in exchange therefor a like principal amount of definitive Notes of authorized denominations and of like tenor. Until so
exchanged, the temporary Notes shall in all respects be entitled to the same benefits under this Indenture as definitive Notes. 

        SECTION 3.05    NOTE REGISTRAR AND PAYING AGENT.    The Company shall
maintain an office or agency where Notes may be presented for registration of transfer or for exchange ("Note Registrar") and an office or agency where
Notes may be presented for payment ("Paying Agent"). The Note Registrar shall keep a register of the Notes and of their transfer and exchange (the
"Note Register"). The Company may appoint one or more co-registrars and one or more additional paying agents. The term
"Note Registrar" includes any co-registrar and the term "Paying Agent" includes any
additional paying agent. The Company may change any Paying Agent or Note Registrar without notice to any Holder. The Company shall notify the Trustee in writing of the name and address of any agent
not a party to this Indenture. If the Company fails to appoint or maintain another entity as Note Registrar or Paying Agent, the Trustee shall act as such. The Company or any of its Subsidiaries may
act as Paying Agent or Note Registrar. 

        The
Company initially appoints the Trustee to act as Depositary with respect to the Global Notes, subject to the Company's obligation to appoint DTC as a successor Depositary pursuant to
Section 3.08(a). 

        The
Company initially appoints the Trustee to act as the Note Registrar and Paying Agent and to act as Custodian with respect to the Global Notes. 

        The
Company shall, prior to each Regular Record Date, notify the Paying Agent of any wire transfer instructions for payments that it receives from Holders. 

36

 

        SECTION 3.06    PAYING AGENT TO HOLD MONEY IN TRUST.    The Company
shall require each Paying Agent other than the Trustee to agree in writing that the Paying Agent will hold in trust for the benefit of Holders or the Trustee all money held by the Paying Agent for the
payment of principal of or interest or Additional Amounts on the Notes, and will notify the Trustee in writing of any default by the Company in making any such payment. While any such default
continues, the Trustee may require a Paying Agent to pay all money held by it to the Trustee. The Company at any time may require a Paying Agent to pay all money held by it to the Trustee. Upon
payment over to the Trustee, the Paying Agent (if other than the Company or a Subsidiary) shall have no further liability for the money. If the Company or a Subsidiary acts as Paying Agent, it shall
segregate and hold in a separate trust fund for the benefit of the Holders all money held by it as Paying Agent. Upon any bankruptcy or reorganization proceedings relating to the Company, the Trustee
shall serve as Paying Agent for the Notes. 

        SECTION 3.07    HOLDER LISTS.    The Trustee shall preserve in as
current a form as is reasonably practicable the most recent list available to it of the names and addresses of all Holders and shall otherwise comply with Section 312(a) of the Trust Indenture
Act. If the Trustee is not the Note Registrar, the Company shall furnish to the Trustee at least seven Business Days before each Interest
Payment Date and at such other times as the Trustee may request in writing, a list in such form and as of such date as the Trustee may reasonably require of the names and addresses of the Holders of
Notes and the Company shall otherwise comply with Section 312(a) of the Trust Indenture Act. 

        SECTION 3.08    TRANSFER AND EXCHANGE.    

        (a)   Transfer and Exchange of Global Notes. (i) Except as provided in this Section 3.08 and the sections of the
Indenture referenced herein, notwithstanding any other provision in this Indenture, no Global Note may be exchanged in whole or in part for Definitive Notes, and no transfer of a Global Note in whole
or in part may be registered, in the name of any Person other than the Depositary for such Global Notes or a nominee thereof unless (i) such Depositary or the Trustee has notified the Company
that the Depositary (A) is unwilling or unable to continue as Depositary for such Global Notes or (B) has ceased to be clearing agency registered as such under the Exchange Act, and in
either case the Company fails to appoint a successor Depositary acceptable to the Trustee within 120 days of such notice, (ii) the Company executes and delivers to the Trustee a Company
Order stating that it elects to cause the issuance of the Notes in definitive form and that all Global Notes shall be exchanged in whole for Definitive Notes (in which case such exchange shall be
effected by the Trustee) or (iii) there shall have occurred and be continuing an Event of Default with respect to the Notes. Notwithstanding the foregoing provisions of this
Section 3.08(a), Global Notes also may be exchanged or replaced, in whole or in part, as provided in Sections 3.04 and 3.09 hereof. A Global Note may not be exchanged for another Note other
than as provided in this Section 3.08(a); however,beneficial interests in a Global Note may be transferred and exchanged as provided in
Section 3.08(b) or (c) hereof. Notwithstanding the foregoing, on or before five (5) Business Days following the Release Date, the Company shall execute and deliver to the Trustee
a Company Order stating that it elects to appoint DTC as a successor Depositary. Upon such appointment, the Global Note or Notes issued on the Release Date shall be exchanged in whole for a Global
Note or Notes registered in the name of DTC. Prior to such appointment, the Company shall obtain a CUSIP number for the Notes and shall use its commercially reasonable efforts to make the Notes
eligible for book-entry transfers through the facilities of DTC. If for any reason the Company fails to appoint DTC as a successor Depositary or fails to make the Notes eligible for
book-entry transfers through the facilities of DTC as provided herein, Holders of a principal amount not less than 25% of the Outstanding Notes shall have the right, upon notice to the
Company and the Trustee, to elect to cause the issuance of the Notes in definitive form. As soon as practicable following such election, the Company shall cause all Global Notes to be exchanged in
whole for Definitive Notes (in which case such exchange shall be effected by the Trustee). 

37

 

        (b)   Transfer and Exchange of Beneficial Interests in the Global Notes. The transfer and exchange of beneficial interests in
the Global Notes shall be effected through the Depositary, in accordance with the provisions of this Indenture and the Applicable Procedures. 

        (i)    If
any Global Note is to be exchanged for other Notes or cancelled in whole, it shall be surrendered by or on behalf of the Depositary or its nominee to the Trustee, as
Note Registrar, for exchange or cancellation as provided in this Article Three. If any Global Note is to be exchanged for other Notes or cancelled in part, or if another Note is to be exchanged in
whole or in part for a beneficial interest in any Global Note, then either (i) such Global Note shall be so surrendered for exchange or cancellation as provided in this Article Three or
(ii) the principal amount thereof shall be reduced or increased by an amount equal to the portion thereof to be so exchanged or cancelled, or equal to the principal amount of such other Note to
be so exchanged for a beneficial interest therein, as the case may be, by means of an appropriate endorsement made on the Global Notes by the Trustee, as Custodian, whereupon the Trustee, in
accordance with the Applicable Procedures, shall instruct the Depositary or its authorized representative to make a corresponding adjustment to its records. Upon any such surrender or adjustment of a
Global Note, the Trustee shall, as provided in this Article Three, authenticate and deliver any Notes issuable in exchange for such Global Note (or any portion thereof) to or upon the order of, and
registered in such names as may be directed by, the Depositary or its authorized representative. Upon the request of the Trustee in connection with the occurrence of any of the events specified in
Section 3.08(a), the Company shall promptly make available to the Trustee a reasonable supply of Definitive Notes that are not in the form of Global Notes. The Trustee shall be entitled to rely
upon any order, direction or request of the Depositary or its authorized representative which is given or made pursuant to this Article Three if such order, direction or request is given or made in
accordance with the Applicable Procedures and in accordance with all applicable laws. Every Note authenticated and delivered upon registration of transfer of, or in exchange for or in lieu of, a
Global Note or any portion thereof, whether pursuant to this Article Three or otherwise, shall be authenticated and delivered in the form of, and shall be, a Global Note, unless such Note is
registered in the name of a Person other than the Depositary for such Global Note or a nominee thereof. 

        (ii)   The
Depositary or its nominee, as registered owner of a Global Note, shall be the Holder of such Global Note for all purposes under this Indenture and the Notes and
owners of beneficial interests in a Global Note shall hold such interests pursuant to the Applicable Procedures. Accordingly, any such owner's beneficial interest in a Global Note will be shown only
on, and the transfer of such interest shall be effected only through, records maintained by the Depositary or its nominee or its Participants. 

38

  

        (c)   Cancellation and/or Adjustment of Global Notes. At such time as all beneficial interests in a particular Global Note have
been exchanged for Definitive Notes or a particular Global Note has been redeemed, repurchased or cancelled in whole and not in part, each such Global Note shall be returned to or retained and
cancelled by the Trustee in accordance with Section 3.12 hereof. At any time prior to such cancellation, if any beneficial interest in a Global Note is exchanged for or transferred to a Person
who will take delivery thereof in the form of a beneficial interest in another Global Note or for Definitive Notes, the principal amount of Notes represented by such Global Note shall be reduced
accordingly and an endorsement shall be made on such Global Note by the Trustee or by the Depositary at the direction of the Trustee to reflect such reduction; and if the beneficial interest is being
exchanged for or transferred to a Person who will take delivery thereof in the form of a beneficial interest in another Global Note, such other Global Note shall be increased accordingly and an
endorsement shall be made on such Global Note by the Trustee or by the Depositary at the direction to reflect such increase. 

        (d)   General
Provisions Relating to Transfers and Exchanges. Subject to the other provisions of this Indenture regarding restrictions on transfer and authentication, upon
surrender for registration of transfer of any Note at any office or agency of the Company designated pursuant to Section 5.02 for such purpose, the Company shall execute, and the Trustee shall
authenticate and deliver, in the name of the designated transferee or transferees, one or more new Notes of any authorized denominations, of a like aggregate principal amount and bearing such
restrictive legends as may be required by this Indenture. 

        At
the option of the Holder, Notes may be exchanged for other Notes of any authorized denomination and of a like aggregate principal amount and Stated Maturity, upon surrender of the
Notes to be exchanged at such office or agency. Whenever any Notes are so surrendered for exchange, the Company and the Guarantors shall execute and the Trustee shall authenticate and deliver, the
Notes which the Holder making the exchange is entitled to receive. 

        All
Notes (including the accompanying Guarantees) issued upon any registration of transfer or exchange of Notes shall be the valid obligations of the Company and the Guarantors,
evidencing the same debt, and entitled to the same benefits under this Indenture, as the Notes (including the accompanying Guarantees) surrendered upon such registration of transfer or exchange. 

        Every
Note presented or surrendered for registration of transfer or for exchange shall (if so required by the Company or the Trustee) be duly endorsed, or be accompanied by a written
instrument of transfer in form satisfactory to the Company and the Note Registrar duly executed, by the Holder thereof or his attorney duly authorized in writing. 

        No
service charge shall be made for any registration of transfer or exchange of Notes, but the Company may require payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in connection with any registration of transfer or exchange of Notes (other than any such transfer taxes or similar governmental charge payable upon exchange or transfer
pursuant to Sections 3.04, 4.08, 5.12, 5.13 and 10.06 hereof). 

        Neither
the Company nor the Trustee nor any agent of either shall be required (i) to issue, authenticate, register the transfer of or exchange any Note during a period beginning
at the opening of business 15 days before the day of the mailing of a notice of redemption hereunder and ending at the close of business on the day of the mailing of a notice of redemption of
Notes selected for redemption, or (ii) to register the transfer of or exchange any Note so selected for redemption in whole or in part, except the unredeemed portion of any Note being redeemed
in part. 

        SECTION 3.09    MUTILATED, DESTROYED, LOST AND STOLEN NOTES.    If any
mutilated Note is surrendered to the Trustee, the Company and the Guarantors shall execute, and the Trustee shall authenticate and deliver in exchange therefor a new Note (including the accompanying 

39

 

Guarantees)
of like tenor, principal amount and Stated Maturity and bearing a number not contemporaneously outstanding. 

        If
there shall be delivered to the Company and the Trustee (i) evidence to their satisfaction of the destruction, loss or theft of any Note and (ii) such security or
indemnity as may be required by them to hold each of them and any agent of either of them harmless, then, in the absence of notice to the Company or the Trustee that such Note has been acquired by a
bona fide purchaser, the Company and the Guarantors shall execute and upon its request the Trustee shall authenticate and deliver, in lieu of any such destroyed, lost or stolen Note, a new Note of
like tenor, principal amount and Stated Maturity and bearing a number not contemporaneously outstanding. If after the delivery of such new Note, a bona fide purchaser of the original Note in lieu of
which such new Note was issued presents for payment such original Note, the Company and the Trustee shall be entitled to recover such new Note from the person to whom it was delivered or any
transferee thereof, except a bona fide purchaser of such new Note, and shall be entitled to recover upon the security or indemnity provided therefor to the extent of any loss, damage, cost or expense
incurred by the Company or the Trustee in connection therewith. 

        In
case any such mutilated, destroyed, lost or stolen Note has become or is about to become due and payable, the Company in its discretion may, instead of issuing a new Note, pay such
Note. 

        Upon
the issuance of any new Note under this Section, the Company may require the payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in
relation thereto and any other expenses (including the fees and expenses of the Trustee) connected therewith. 

        Except
as provided above, every new Note issued pursuant to this Section in lieu of any destroyed, lost or stolen Note shall constitute an original additional contractual obligation of
the Company and the Guarantors, whether or not the destroyed, lost or stolen Note shall be at any time enforceable by anyone, and shall be entitled to all the benefits of this Indenture equally and
proportionately with any and all other Notes duly issued hereunder. 

        The
provisions of this Section are exclusive and shall preclude (to the extent lawful) all other rights and remedies with respect to the replacement or payment of mutilated, destroyed,
lost or stolen Notes. 

        SECTION 3.10    PAYMENT OF INTEREST; INTEREST RIGHTS
PRESERVED.    Interest on any Note which is payable, and is punctually paid or duly provided for, on any Interest Payment Date shall be paid to the Person in whose
name that Note (or one or more Predecessor Notes) is registered at the close of business on the Regular Record Date for such interest. 

        Any
interest on any Note which is payable, but is not punctually paid or duly provided for, on any Interest Payment Date (which, together with interest on overdue installments of
interest, to the extent legally enforceable under applicable law, at the Default Rate is herein called "Defaulted Interest") shall forthwith cease to be
payable to the Holder on the relevant Regular Record Date by virtue of having been such Holder, and such Defaulted Interest may be paid by the Company, at its election in each case, as provided in
clause (1) or (2) below: 

        (1)   The
Company may elect to make payment of any Defaulted Interest to the Persons in whose names the Notes (or their respective Predecessor Notes) are registered at the
close of business on a Special Record Date for the payment of such Defaulted Interest, which shall be fixed in the following manner: The Company shall notify the Trustee in writing of the amount of
Defaulted Interest proposed to be paid on each Note and the date of the proposed payment, and at the same time the Company shall deposit with the Trustee an amount of money equal to the aggregate
amount proposed to be paid in respect of such Defaulted Interest or shall make arrangements satisfactory to the Trustee for such deposit prior to the date of the proposed payment, such money when
deposited to be held in trust for the benefit of the Persons entitled to such Defaulted Interest as provided in this clause (1). Thereupon 

40

 

the
Company shall fix a Special Record Date for the payment of such Defaulted Interest which shall be not more than 15 days and not less than 10 days prior to the date of the proposed
payment and not less than 10 days after the receipt by the Trustee of the notice of the proposed payment. The Company shall promptly notify the Trustee in writing of such Special Record Date
and the Trustee, in the name and at the expense of the Company, shall cause notice of the proposed payment of such Defaulted Interest and the Special Record Date therefor to be mailed, first class
postage prepaid, to each Holder at his address as it appears in the Note Register, not less than 10 days prior to such Special Record Date. Notice of the proposed payment of such Defaulted
Interest and the Special Record Date therefor having been so mailed, such Defaulted Interest shall be paid to the Persons in whose names the Notes (or their respective Predecessor Notes) are
registered at the close of business on such Special Record Date and shall no longer be payable pursuant to the following clause (2). 

        (2)   The
Company may make payment of any Defaulted Interest on the Notes in any other lawful manner not inconsistent with the requirements of any securities exchange on which
such Notes may be listed, and upon such notice as may be required by such exchange, if, after notice given by the Company to the Trustee of the proposed payment pursuant to this clause, such manner of
payment shall be deemed practicable by the Trustee. 

        Subject
to the foregoing provisions of this Section, each Note delivered under this Indenture upon registration of transfer of or in exchange for or in lieu of any other Note shall carry
the rights to interest accrued and unpaid, and to accrue, which were carried by such other Note. 

        SECTION 3.11    PERSONS DEEMED OWNERS.    Prior to due presentation of
a Note for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name any Note is registered as the owner of such Note for the
purpose of receiving payment of principal of, premium, if any, and (subject to Section 3.10) interest and Additional Amounts, if any, on such Note and for all other purposes whatsoever, whether
or not such Note be overdue, and neither the Company, the Trustee nor any agent of the Company, or the Trustee shall be affected by notice to the contrary. 

        SECTION 3.12    CANCELLATION.    All Notes surrendered for payment,
redemption, registration of transfer or exchange shall, if surrendered to any Person other than the Trustee, be delivered to the Trustee and shall be promptly canceled by it. The Company may at any
time deliver to the Trustee for cancellation any Notes previously authenticated and delivered hereunder which the Company may have acquired in any manner whatsoever, and all Notes so delivered shall
be promptly canceled by the Trustee. No Notes shall be authenticated in lieu of or in exchange for any Notes canceled as provided in this Section, except as expressly permitted by this Indenture. All
canceled Notes held by the Trustee shall be destroyed by the Trustee (subject to the record retention requirements of the Exchange Act) and, upon receipt of a Company Order, the Trustee shall deliver
to the Company a certificate of destruction in respect thereof. 

        SECTION 3.13    COMPUTATION OF INTEREST.    Interest on the Notes
shall be computed on the basis of a 360-day year of twelve 30-day months. 

        SECTION 3.14    RANKING; SUBORDINATION.    (a) The Notes rank  pari passu in right of payment to all
existing or future senior Indebtedness of the Company and rank senior to all of the Company's existing and future
subordinated Indebtedness. All Indebtedness, notes, claims and payments owed by the Company or any Guarantor to any Restricted Subsidiary of the Company shall be subordinated in right of payment to
the Notes. 

        SECTION 3.15    CUSIP NUMBERS.    The Company in issuing the Notes may
use "CUSIP" numbers (if then generally in use), and, if so, the Trustee shall use "CUSIP" numbers in notices as a convenience to Holders; provided that
any such notice may state that no representation is made as to the correctness of such numbers either as printed on the Notes or as contained in any notice and that 

41

 

reliance
may be placed only on the other identification numbers printed on the Notes and any such redemption shall not be affected by any defect in or omission of such numbers. The Company will
promptly notify the Trustee of any change in the "CUSIP" numbers. 

 
 

ARTICLE FOUR
  REDEMPTION OF NOTES    
    

        SECTION 4.01    APPLICABILITY OF ARTICLE.    Redemption of Notes at
the election of the Company as permitted by any provision of this Indenture, shall be made in accordance with such provision and this Article. 

        SECTION 4.02    RIGHT OF REDEMPTION(a).    The Notes may be redeemed
at the election of the Company, in whole or from time to time in part, at any time at a Redemption Price equal to 100% of the principal amount of the Notes to be redeemed, plus accrued and unpaid
interest and Additional Amounts, if any, to the Redemption Date. 

        SECTION 4.03    ELECTION TO REDEEM; NOTICE TO TRUSTEE.    The election
of the Company to redeem any Notes pursuant to Section 4.02 shall be evidenced by a Board Resolution. In case of any partial redemption at the election of the Company, the Company shall, at
least 60 days prior to the Redemption Date fixed by the Company, notify the Trustee by Company Order of such Redemption Date and of the principal amount of Notes to be redeemed. 

        SECTION 4.04    SELECTION BY TRUSTEE OF NOTES TO BE REDEEMED.    If
less than all the Notes are to be redeemed, the particular Notes to be redeemed shall be selected not more than 60 nor less than 30 days prior to the Redemption Date by the Trustee, from the
Outstanding Notes not previously called for redemption, by such method as the Trustee shall deem fair and appropriate and which may provide for the selection for redemption of portions (equal to $1.00
or any integral multiple thereof) of the principal amount of Notes of a denomination larger than $1.00. 

        The
Trustee shall promptly notify the Company and each Note Registrar in writing of the Notes selected for redemption and, in the case of any Notes selected for partial redemption, the
principal amount thereof to be redeemed. 

        For
all purposes of this Indenture, unless the context otherwise requires, all provisions relating to the redemption of Notes shall relate, in the case of any Notes redeemed or to be
redeemed only in part, to the portion of the principal amount of such Notes which has been or is to be redeemed. 

        SECTION 4.05    NOTICE OF REDEMPTION.    Notice of redemption shall be
given by the Company by first class mail, postage prepaid, mailed not less than 30 nor more than 60 days prior to the Redemption Date, to the Trustee and each Holder of Notes to be redeemed, at
his address appearing in the Note Register. 

        All
notices of redemption shall state: 

        (1)   the
Redemption Date; 

        (2)   the
Redemption Price and the amount of accrued and unpaid interest and Additional Amounts, if any, to the Redemption Date; 

        (3)   if
less than all of the Outstanding Notes are to be redeemed, the identification (and, in the case of partial redemption, the principal amounts to be redeemed) of the
particular Notes to be redeemed; 

        (4)   that
on the Redemption Date the Redemption Price and accrued and unpaid interest and Additional Amounts, if any, will become due and payable upon each such Note to be
redeemed and that interest thereon will cease to accrue on and after said date; 

42

 

        (5)   the
place or places where such Notes are to be surrendered for payment of the Redemption Price and accrued and unpaid interest and Additional Amounts, if any; 

        (6)   the
CUSIP number or numbers, if any, of the Notes called for redemption; and 

        (7)   that
no representation is made as to the correctness or accuracy of the CUSIP number, if any, listed in such notice or printed on the Notes. 

        Notice
of redemption of Notes to be redeemed at the election of the Company shall be given by the Company or, at the Company's request, by the Trustee in the name and at the expense of
the Company; provided, that the Company shall provide such notice to the Trustee at least 35 days prior to the Redemption Date. 

        SECTION 4.06    DEPOSIT OF REDEMPTION PRICE.    The Company shall
deposit with the Trustee or with a Paying Agent (or, if the Company is acting as its own Paying Agent, segregate and hold in trust as provided in Section 5.03) an amount of money in immediately
available funds by 10:00 a.m., New York City time, on such Redemption Date sufficient to pay the Redemption Price of, and (except if the Redemption Date shall be an Interest Payment Date)
accrued and unpaid interest and Additional Amounts on, all the Notes which are to be redeemed on that date. 

        SECTION 4.07    NOTES PAYABLE ON REDEMPTION DATE.    Notice of
redemption having been given as aforesaid, the Notes so to be redeemed shall on the Redemption Date become due and payable at the Redemption Price plus accrued and unpaid interest and Additional
Amounts, if any, therein
specified, and from and after such date (unless the Company shall default in the payment of the Redemption Price and accrued interest and Additional Amounts) such Notes shall cease to bear interest.
Upon surrender of any such Note for redemption in accordance with said notice, such Note shall be paid by the Company at the Redemption Price, together with accrued and unpaid interest, if any, and
Additional Amounts, if any, to the Redemption Date; provided, however, that installments of interest whose Stated Maturity is on or prior to the
Redemption Date shall be payable to the Holders of such Notes, or one or more Predecessor Notes, registered as such at the close of business on the relevant Record Dates according to the terms and the
provisions of Section 3.05. 

        Notwithstanding
the foregoing, the Trustee shall not redeem any Notes or mail any notice of optional redemption during the continuance of a default in payment of interest on the Notes or
of any Event of Default. 

        If
any Note called for redemption shall not be so paid upon surrender thereof for redemption, the principal (and premium, if any) shall, until paid, bear interest from the Redemption
Date at the Default Rate. 

        SECTION 4.08    NOTES REDEEMED IN PART.    Any Note which is to be
redeemed only in part shall be surrendered at an office or agency of the Company designated for that purpose pursuant to Section 5.02 (with, if the Company or the Trustee so requires, due
endorsement by, or a written instrument of transfer in form satisfactory to the Company and the Trustee duly executed by, the Holder thereof or his attorney duly authorized in writing), and the
Company shall execute, and the Trustee shall authenticate and deliver to the Holder of such Note without service charge, a new Note or Notes, of any authorized denomination as requested by such
Holder, in aggregate principal amount equal to and in exchange for the unredeemed portion of the principal of the Note so surrendered. 

        SECTION 4.09    OPTIONAL REDEMPTION DUE TO CHANGES IN TAX
TREATMENT.    The Notes may be redeemed at the option of the Company in whole but not in part at any time at a Redemption Price equal to 100% of the principal amount
thereof, plus accrued and unpaid interest and Additional Amounts, if any, to the date fixed for redemption if, as a result of any change in or amendment to the laws or any regulations or rulings
promulgated thereunder of the United Mexican States (or of any political subdivision or taxing authority thereof or therein) or any change in the 

43

 

official
application or interpretation of such laws, regulations or rulings, or any change in the official application or interpretation of, or any execution of or amendment to, any treaty or treaties
affecting taxation to which the United Mexican States (or such political subdivision or taxing authority) is a party, which change, execution or amendment becomes effective after the Initial Issuance
Date, the Company is or would be required to pay additional amounts with respect to the Notes in excess of the Additional Amounts payable on the Initial Issuance Date as described in
Section 2.03, and the payment of such additional amounts cannot be avoided by the use of any reasonable measures available to the Company. Prior to the giving of notice of redemption of such
Notes pursuant to this Indenture, the Company will deliver to the Trustee an Officers' Certificate, stating that the Company is entitled to effect such redemption based on an Opinion of Counsel that
the Company has or will become obligated to pay such additional amounts as a result of such change or amendment. Such notice, once delivered by the Company to the Trustee, will be irrevocable. 

 
 

ARTICLE FIVE
  COVENANTS    
    

        So long as any of the Notes shall remain Outstanding, each of the Company and, as applicable, the Guarantors, covenants as follows: 

        SECTION 5.01    PAYMENTS OF PRINCIPAL, PREMIUM, IF ANY, AND
INTEREST.    The Company will duly and punctually pay or cause to be paid the principal of, premium, if any, interest and Additional Amounts on the Notes in
accordance with the terms of the Notes and this Indenture. 

        SECTION 5.02    MAINTENANCE OF OFFICE OR AGENCY.    The Company and
the Guarantors shall maintain in New York, New York an office or agency where Notes may be presented or surrendered for payment, where Notes may be surrendered for registration of transfer or exchange
and where notices and demands to or upon the Company and the Guarantors in respect of the Notes and this Indenture may be served. The Company and the Guarantors shall give prompt written notice to the
Trustee of the location, and any change in the location, of any such office or agency. 

        The
Company and the Guarantors may also from time to time designate one or more other offices or agencies where the Notes may be presented or surrendered for any or all such purposes,
and may from
time to time rescind such designations; provided, however, that no such designation or rescission shall in any manner relieve the Company and the
Guarantors of their obligation to maintain an office or agency in accordance with the requirements set forth above. The Company and the Guarantors shall give prompt written notice to the Trustee of
any such designation or rescission and of any change in the location of any such other office or agency. 

        SECTION 5.03    MONEY FOR NOTE PAYMENTS TO BE HELD IN TRUST.    If the
Company shall at any time act as its own Paying Agent, it will, on or before each due date of the principal of (and premium, if any) or interest and Additional Amounts on any of the Notes, segregate
and hold in trust for the benefit of the Persons entitled thereto a sum sufficient to pay the principal (and premium, if any) or interest and Additional Amounts so becoming due until such sums shall
be paid to such Persons or otherwise disposed of as herein provided and will promptly notify the Trustee in writing of its action or failure so to act. 

        Whenever
the Company shall have one or more Paying Agents, it will, prior to each due date of the principal of (and premium, if any) or interest and Additional Amounts, if any, on any
Notes, deposit with a Paying Agent a sum (or in the case of interest payable in Additional Notes or ADSs, an aggregate amount of such securities) sufficient to pay the principal (and premium, if any),
or interest, and Additional Amounts, if any, so becoming due, such sum (or Additional Notes or ADSs) to be held in trust for the benefit of the Persons entitled to such principal, premium, interest
and Additional Amounts and (unless such Paying Agent is the Trustee) the Company will promptly notify the Trustee in writing of its action or failure so to act. 

44

 

        The
Company will cause each Paying Agent other than the Trustee to execute and deliver to the Trustee an instrument in which such Paying Agent shall agree with the Trustee, subject to
the provisions of this Section, that such Paying Agent will: 

        (1)   hold
all sums and securities held by it for the payment of the principal of (and premium, if any) or interest and Additional Amounts on Notes in trust for the benefit of
the Persons entitled thereto until such sums shall be paid to, and such securities distributed to, such Persons or otherwise disposed of as herein provided; 

        (2)   give
the Trustee written notice of any default by the Company (or any other obligor upon the Notes) in the making of any payment of principal (and premium, if any) or
interest and Additional Amounts; and 

        (3)   at
any time during the continuance of any such default, upon the written request of the Trustee, forthwith pay to the Trustee all sums and deliver all such securities so
held in trust by such Paying Agent. 

        The
Company may at any time, for the purpose of obtaining the satisfaction and discharge of this Indenture or for any other purpose, pay, or by Company Order direct any Paying Agent to
pay, to the Trustee all sums and securities held in trust by the Company or such Paying Agent, such sums to be held by the Trustee upon the same trusts as those upon which such sums were held by the
Company or such Paying Agent; and, upon such payment by any Paying Agent to the Trustee, such Paying Agent shall be released from all further liability with respect to such money. 

45

  

        Any money deposited with the Trustee or any Paying Agent, or then held by the Company, in trust for the payment of the principal of (and premium, if any) or interest and Additional
Amounts, if any, on any Note and remaining unclaimed for two years after such principal (and premium, if any) or interest and Additional Amounts, if any, has become due and payable shall be paid to
the Company on Company Request, or (if then held by the Company) shall be discharged from such trust; and (except to the extent such money is subject to the Collateral Documents) the Holder of such
Note shall thereafter, as an unsecured general creditor, look only to the Company for payment thereof, and all liability of the Trustee or such Paying Agent with respect to such trust money, and all
liability of the Company as trustee thereof, shall thereupon cease; provided, however, that the Trustee or such Paying Agent, before being required to
make any such repayment, may at the expense of the Company cause to be published once, in a newspaper published in the English language, customarily published on each Business Day and of general
circulation in New York, New York, notice that such money remains unclaimed and that, after a date specified therein, which shall not be less than 30 days from the date of such publication, any
unclaimed balance of such money then remaining will be repaid to the Company. The Company hereby appoints the Trustee as the initial Note Registrar and Paying Agent for the Notes. 

        SECTION 5.04    EXISTENCE.    Subject to Article Eleven, the Company
will do or cause to be done all things necessary to preserve and keep in full force and effect its existence, and the rights (charter and statutory) and franchises of the Company and each of its
Restricted Subsidiaries; provided, however, that the Company shall not be required to preserve the existence of any of its Restricted Subsidiaries
(subject to Article Eleven) or any such right or franchise if the Company shall determine that the preservation thereof is no longer desirable in the conduct of the business of the Company and that
the loss thereof is not disadvantageous in any material respect to the Holders. 

        SECTION 5.05    MAINTENANCE OF PROPERTIES; INSURANCE.    The Company
will cause all vessels and properties used or useful in the conduct of its business or the business of any of its Restricted Subsidiaries to be maintained and kept in good condition, repair and
working order and supplied with all necessary equipment and will cause to be made all necessary repairs, renewals, replacements, betterments and improvements thereof, all as in the reasonable judgment
of the Company may be necessary so that the business carried on in connection therewith may be conducted in the ordinary course consistent with the Company's custom and practice at all times;  provided, however, that nothing in this Section 5.05 shall prevent the Company from discontinuing the operation or maintenance of any of such
vessels or properties if such discontinuance is, in the reasonable judgment of the Company, desirable in the conduct of its business or the business of any Restricted Subsidiary;  provided, further, that
such discontinuance shall not be materially disadvantageous to the Holders. 

        For
so long as any vessel or property is deemed to be useful to the conduct of the business of the Company or any of its Restricted Subsidiaries, the Company will, or will cause its
Restricted
Subsidiaries to, maintain appropriate insurance, in accordance with industry practice, on such vessels and properties. 

        SECTION 5.06    PAYMENT OF TAXES.    The Company will pay or discharge
or cause to be paid or discharged, before the same shall become delinquent, all taxes, assessments and governmental charges levied or imposed upon the Company or any Subsidiary or upon the income,
profits or property of the Company or any Subsidiary; provided, however, that the Company shall not be required to pay or discharge or cause to be paid
or discharged any such tax, assessment or charge whose amount, applicability or validity is being contested in good faith by appropriate proceedings (including the making of any deposit or guaranty
required by law to pursue such proceedings). 

        SECTION 5.07    ANNUAL OFFICERS' CERTIFICATE TO TRUSTEE.    The
Company will deliver to the Trustee prior to April 30 in each year an Officers' Certificate, complying with Section 314(a)(4) 

46

 

of
the Trust Indenture Act, from the principal executive officer, principal financial officer or principal accounting officer as to his or her knowledge of the Company's compliance with all conditions
and covenants under this Indenture. For the purposes of such certificate, such compliance shall be determined without regard to any period of grace or requirement of notice provided under this
Indenture. 

        SECTION 5.08    REPORTS TO BE FURNISHED TO TRUSTEE AND HOLDERS.    For
so long as any of the Notes are outstanding, the Company will deliver to the Trustee and the Holders: 

        (1)   within
45 Business Days of the close of its fiscal year, or such later time as is then permitted under Mexican law, an English translation of the unaudited consolidated
financial statements of the Company, together with information sufficient to ascertain the financial condition and results of operations of the Company and its Restricted Subsidiaries, accounting for
Grupo TFM and its consolidated subsidiaries under the equity method of accounting; 

        (2)   within
120 days of the close of its fiscal year, or such later time as is then permitted under Mexican law, an English translation of the audited consolidated
financial statements of the Company, together with information sufficient to ascertain the financial condition and results of operations of the Company and its Restricted Subsidiaries, accounting for
Grupo TFM and its consolidated subsidiaries under the equity method of accounting; 

        (3)   within
180 days of the close of its fiscal year, an English translation of the audited consolidated financial statements of the Company, together with a
reconciliation (in the form required by the Commission) to U.S. generally accepted accounting principles, together with information sufficient to ascertain the financial condition and results of
operations of the Company and its Restricted Subsidiaries, accounting for Grupo TFM and its consolidated subsidiaries under the equity method of accounting; 

        (4)   within
30 Business Days of the close of the relevant quarter, an English translation of the unaudited quarterly consolidated financial statements of the Company, for
each of the first three fiscal quarters, together with information sufficient to ascertain the financial condition and results of operations of the Company and its Restricted Subsidiaries, accounting
for Grupo TFM and its consolidated subsidiaries under the equity method of accounting; 

        (5)   simultaneously
with the delivery of each set of consolidated financial statements referred to in clauses (2), (3) and (4) above, an Officers' Certificate
stating whether any Event of Default exists on the date of such certificate and, if any Event of Default then exists, setting forth the details thereof and the action which the Company is taking or
proposes to take with respect thereto; 

        (6)   without
duplication, copies of such other reports or notices as may be filed or required to be filed by the Company with the CNBV or the Commission; and 

        (7)   promptly
upon any officer of the Company becoming aware of the existence of an Event of Default, an Officers' Certificate setting forth the details thereof and the
action which the Company is taking or proposes to take with respect thereto. 

        The
Trustee shall be under no duty to make any investigation or inquiry as to any statements contained or matters referred to in any of the information supplied pursuant to this
Section 5.08. The Trustee shall be under no duty to review, analyze or verify the accuracy of any of the information supplied pursuant to this Section 5.08. 

        The
Company will transmit or cause to be transmitted to the Holders, as soon as practicable after the mailing of such material to its stockholders, English translations of copies of all
quarterly and annual financial reports distributed to its stockholders generally. Reports pursuant to this Section shall be transmitted by mail to all Holders of Notes, as the names and addresses of
such Holders appear upon the Note Register. 

47

 

        SECTION 5.09    FURTHER ASSURANCES.    From time to time whenever
reasonably demanded by the Trustee, the Company and the Guarantors will make, execute and deliver or cause to be made, executed and delivered any and all such further and other instruments and
assurances as may be reasonably necessary or proper to carry out the intention or facilitate the performance of the terms of this Indenture and the Collateral Documents. 

        SECTION 5.10    COMPANY TO FURNISH TRUSTEE INFORMATION AS TO NAMES AND ADDRESSES OF
HOLDERS.    The Company shall furnish or cause to be furnished to the Trustee (a) not more than 15 days before each Regular Record Date, but in any
event not less frequently than semiannually or quarterly if the Company has exercised the Extension Election, a list in such form as the Trustee may reasonably require, containing all the information
in the possession or control of the Company or any of its Paying Agents other than the Trustee, as to the names and addresses of the Holders of Notes to which such Regular Record Date applies as of
such Regular Record Date, and (b) at such other times as the Trustee may request in writing, within five days after receipt by the Company of any such request, a list of similar form and
content as of a date not more than 15 days prior to the time such list is furnished, excluding from any such list names and addresses received by the Trustee in its capacity as Note Registrar. 

        SECTION 5.11    WAIVER OF STAY, EXTENSION OR USURY LAWS.    The
Company and the Guarantors covenant (to the extent that they may lawfully do so) that they will not at any time insist upon, or plead, or in any manner whatsoever claim or take the benefit or
advantage of, any stay or extension law or any usury law or other law, which would prohibit or forgive the Company or any Guarantors from paying all or any portion of the principal of, premium, if
any, or interest and Additional Amounts, if any, on the Notes or the Guarantees as contemplated herein, wherever enacted now or at any time hereafter in force, or which may affect the covenants or the
performance of this Indenture or the Guarantees; and (to the extent that it may lawfully do so) the Company and each Guarantor hereby expressly waives all benefit or advantage of any such law, and
covenants that it will not hinder, delay or impede the execution of any power herein granted to the Trustee, but will suffer and permit the execution of every such power as though no such law had been
enacted. 

        SECTION 5.12    CHANGE OF CONTROL.    If (i) any person or
group within the meaning of Section 13(d)(3) of the Exchange Act (a "Group") together with any Affiliates and Associates of any thereof, other
than (A) the Serrano Segovia family, its Affiliates and Associates, and (B) the CPO Trustee and any successor to the CPO Trustee, shall beneficially own (within the meaning of
Rule 13d-3 under the Exchange Act) at least 35% of the total voting power of all classes of capital stock of the Company entitled to vote generally in the election of directors of
the Company; provided, that, in the event 100% of the total voting power of all classes of the Company's Capital Stock entitled to vote generally in the
election of directors of the Company is held by any other Person, a Change of Control shall be determined with respect to the Company as if the Company was such other Person; or (ii) the
Company is liquidated or dissolved or the stockholders of the Company adopt a plan for the liquidation or dissolution of the Company (each, a "Change of
Control"), then the Company shall make an offer (an "Offer") to purchase all of the Notes then outstanding on a date not less
than 30 nor more than 60 days after a Change of Control (the "Repurchase Date") at a Repurchase Price equal to 100% of their principal amount
plus accrued and unpaid interest and Additional Amounts, if any, to the Repurchase Date. 

        (a)   The
Company shall provide the Trustee with notice of an Offer and with all information required to accompany such notice, not more than ten days after the Change of
Control. 

        (b)   Notice
of an Offer shall be mailed by the Trustee (at the Company's expense) not more than ten Business Days after receipt by the Trustee of the notice in accordance
with 5.12(a) to all Holders of the Notes at their last registered addresses appearing in the Note Register. The Offer shall remain open from the time of the mailing until the Repurchase Date. The
notice shall be accompanied by the 

48

 

most
recently filed annual report (including audited consolidated financial statements) of the Company and the most recent subsequently filed quarterly report of the Company (or in the event the
Company is not required to prepare any of the foregoing reports, the comparable information required pursuant to Section 5.08). The Company shall provide the Trustee with copies of all
materials to be delivered with such notice. The notice shall contain all instructions and materials necessary to enable such Holders to tender Notes pursuant to the Offer. The notice shall state: 

        (1)   that
the Offer is being made pursuant to this Section 5.12, the reason for the Offer and that all Notes properly tendered pursuant to the Offer will be accepted
for payment; 

        (2)   the
material circumstances and relevant material facts regarding such Change of Control; 

        (3)   the
Repurchase Price and the Repurchase Date; 

        (4)   the
name and address of the Paying Agent and the Trustee and that Notes must be surrendered to the Paying Agent to collect the Repurchase Price; 

        (5)   that
any Note not tendered or accepted for payment will continue to accrue interest; 

        (6)   that
any Note accepted for payment pursuant to the Offer shall cease to accrue interest after the Repurchase Date; 

        (7)   that
each Holder electing to have a Note purchased pursuant to an Offer will be required to surrender the Note, with the form entitled "Option of Holder to Elect
Purchase" on the reverse of the Note completed, to the Paying Agent at the address specified in the notice prior to the close of business on the Repurchase Date; 

        (8)   that
Holders will be entitled to withdraw their election if the Paying Agent receives, not later than the close of business on the Business Day immediately preceding the
Repurchase Date, a telegram, telex, facsimile transmission or letter setting forth the name of the Holder, the principal amount of Notes the Holder delivered for purchase, the certificate number of
Notes the Holder delivered and a statement that such Holder is withdrawing its election to have such Notes purchased; 

        (9)   that
Holders will be issued new Notes equal in principal amount to the unpurchased portion of the Notes surrendered if such Holders only desire part of such Notes to be
purchased; and 

        (10) any
other information required by applicable law, rules and regulations. 

        To
the extent that any of the procedures relating to the making and accepting of an Offer conflict with the provisions of the Exchange Act, other applicable federal or state law, or the
regulations which may be promulgated thereunder, such provisions of the Exchange Act, other applicable federal or state law, or the regulations which may be promulgated thereunder shall govern such
Offer in lieu of, and only to the extent of, such conflicting procedures. 

        (c)   On
the Repurchase Date, the Company shall (i) accept for payment Notes or portions thereof properly tendered pursuant to the Offer, (ii) deposit with the
Paying Agent money sufficient to pay the Repurchase Price of all Notes or portions thereof so accepted, and to pay the expenses of the Paying Agent to promptly mail or deliver such payments in
accordance with the following sentence, and (iii) deliver to the Trustee Notes so accepted together with an Officers' Certificate stating the Notes or portions thereof accepted for payment by
the Company. The Paying Agent shall promptly mail or deliver to Holders of Notes so accepted payment in an amount equal to the Repurchase Price, and the Company shall execute and the Trustee shall
promptly authenticate and mail or deliver to such Holders a new Note equal in principal amount to any unpurchased portion of the Note properly tendered if such Holders only desire portions of their
Notes to be purchased. The Company will publicly announce the results of the Offer on or as soon as practicable after the Repurchase Date. For purposes of this Section 5.12, the Trustee shall
act as the Paying Agent. 

49

 

        SECTION 5.13    RESTRICTION ON ASSET DISPOSITIONS AND QUALIFYING DISPOSITIONS; APPLICATION OF VAT
PROCEEDS.    

        (a)   The
Company shall not, and shall not permit any of its Restricted Subsidiaries to, make (1) any Asset Disposition unless (i) the consideration received
from such Asset Disposition is equal to or greater than the fair market value of the assets or stock sold (as determined in good faith by the Board of Directors and evidenced by a Board Resolution)
and (ii) at least 80% of the consideration received from such Asset Disposition is in the form of cash; provided, that the amount of
(x) any liabilities (as shown on the Company's or such Restricted Subsidiary's most recent balance sheet or in the notes thereto) of the Company or such Restricted Subsidiary which are assumed
by the transferee of such assets, including any Indebtedness of a Restricted Subsidiary whose stock is purchased by the transferee, and (y) any notes or other obligations received by the
Company or any such Restricted Subsidiary from such transferee that are immediately converted by the Company or such Restricted Subsidiary into cash (to the extent of the cash received) shall be
deemed to be cash for purposes of this Section 5.13(a), or (2) any GTFM Disposition unless such transaction is a Qualifying Disposition. 

        (b)   The
Company shall apply, or cause its Restricted Subsidiaries to apply, any Net Cash Proceeds from any Asset Disposition or Qualifying Disposition and any VAT Cash
Proceeds to (x) redeem Notes pursuant to Section 4.01 on a date not less than 30 nor more than 60 days after the receipt by the Company or any of its Restricted Subsidiaries of
such Net Cash Proceeds or VAT Cash Proceeds or (y) repurchase Notes pursuant to Section 5.13(d); provided, that, such Net Cash Proceeds
and VAT Cash Proceeds may be applied, first, if required by the terms of the Receivables Securitization Facility, to retire or reduce outstanding obligations under the Receivables Securitization
Facility, and second, on a pro rata basis with the Notes, based upon their then respective outstanding principal amounts, to make required payments under the J.B. Hunt Note. Until such time as the Net
Cash Proceeds from any Asset Disposition or Qualifying Disposition or VAT Cash Proceeds are applied in accordance with this Section 5.13(b) or Section 5.13(d), such proceeds shall be
deposited in a collateral account subject to a first priority security interest to secure the Notes pursuant to the Collateral Documents and shall be invested in Cash Equivalents. 

        (c)   The
Company shall pledge, or cause its Restricted Subsidiaries to pledge, any non-cash proceeds of any Asset Disposition or Qualifying Disposition and any
non-cash VAT Proceeds received by the Company or any of its Restricted Subsidiaries to secure the Notes pursuant to the terms of the Collateral Documents. 

        (d)   In
the event that the Company or any Restricted Subsidiary has Net Cash Proceeds from an Asset Disposition or a Qualifying Disposition or has VAT Cash Proceeds that have
not been applied as set forth in Section 5.13(b) (in any such case, "Excess Proceeds"), then the Company shall make an offer (an
"Excess Proceeds Offer") to purchase on a date not less than 30 nor more than 60 days after the receipt by the Company or any of its Restricted
Subsidiaries of such Excess Proceeds (the "Proceeds Offer Repurchase Date") an amount of Notes (together with accrued and unpaid interest and Additional
Amounts, if any, on such Notes, to the Proceeds Offer Repurchase Date) equal to the amount of such Excess Proceeds, at a Repurchase Price equal to 100% of the principal amount of the Notes, plus
accrued and unpaid interest and Additional Amounts, if any, to the Proceeds Offer Repurchase Date. To the extent that the Excess Proceeds are insufficient to repurchase all of the outstanding Notes
properly tendered on the Proceeds Offer Repurchase Date, the Company shall purchase Notes tendered pursuant to the Excess Proceeds Offer on a pro rata basis. 

        (i)    The
Company shall provide the Trustee with notice of an Excess Proceeds Offer and with all information required to accompany such notice, not more than ten days after
the determination that the Company or any Restricted Subsidiary has Excess Proceeds. 

        (ii)   Notice
of an Excess Proceeds Offer shall be mailed by the Trustee (at the Company's expense) not more than ten Business Days after receipt by the Trustee of the notice
in accordance 

50

 

with
Section 5.13(d)(i) to all Holders of the Notes at their last registered addresses appearing in the Notes Register. The Excess Proceeds Offer shall remain open from the time of the
mailing until the Proceeds Offer Repurchase Date. The notice shall be accompanied by the most recently filed annual report (including audited consolidated financial statements) of the Company and the
most recent subsequently filed quarterly report of the Company (or in the event the Company is not required to prepare any of the foregoing reports, the comparable information required pursuant to
Section 5.08). The Company shall provide the Trustee with copies of all materials to be delivered with such notice. The notice shall contain all instructions and materials necessary to enable
such Holders to tender Notes pursuant to the Excess Proceeds Offer. The notice shall state: 

        (1)   that
the Excess Proceeds Offer is being made pursuant to this Section 5.13, the reason for the Excess Proceeds Offer, and that all Notes properly tendered
pursuant to the Excess Proceeds Offer will be accepted for payment, subject to proration, if applicable; 

        (2)   the
amount of the Excess Proceeds, the Repurchase Price and the Proceeds Offer Repurchase Date; 

        (3)   the
name and address of the Paying Agent and the Trustee and that Notes must be surrendered to the Paying Agent to collect the Repurchase Price; 

        (4)   that
any Note not tendered or accepted for payment will continue to accrue interest; 

        (5)   that
any Note accepted for payment pursuant to the Excess Proceeds Offer shall cease to accrue interest after the Proceeds Offer Repurchase Date; 

        (6)   that
each Holder electing to have a Note purchased pursuant to an Excess Proceeds Offer will be required to surrender the Note, with the form entitled "Option of Holder
to Elect Purchase" on the reverse of the Note completed, to the Paying Agent at the address specified in the notice prior to the close of business on the Proceeds Offer Repurchase Date; 

        (7)   that
Holders will be entitled to withdraw their election if the Paying Agent receives, not later than the close of business on the Business Day immediately preceding the
Proceeds Offer Repurchase Date, a telegram, telex, facsimile transmission or letter setting forth the name of the Holder, the principal amount of Notes the Holder delivered for purchase, the
certificate number of Notes the Holder delivered and a statement that such Holder is withdrawing its election to have such Notes purchased; 

        (8)   that
if Notes in a principal amount in excess of the amount of Excess Proceeds are surrendered pursuant to the Excess Proceeds Offer, the Company shall purchase Notes on
a pro rata basis; 

        (9)   that
Holders whose Notes are purchased only in part will be issued new Notes equal in principal amount to the unpurchased portion of the Notes surrendered; and 

        (10) any
other information required by applicable law, rules and regulations. 

        To
the extent that any of the procedures relating to the making and accepting of an Excess Proceeds Offer conflict with the provisions of the Exchange Act, other applicable federal or
state law, or the regulations which may be promulgated thereunder, such provisions of the Exchange Act, other applicable federal or state law, or the regulations which may be promulgated thereunder
shall govern such Excess Proceeds Offer in lieu of, and only to the extent of, such conflicting procedures. 

        On
the Proceeds Offer Repurchase Date, the Company shall (i) accept for payment Notes or portions thereof properly tendered pursuant to the Excess Proceeds Offer,
(ii) deposit with the Paying Agent money sufficient to pay the Repurchase Price of all Notes or portions thereof so accepted, and to pay the expense of the Paying Agent to promptly mail or
deliver such payments in accordance with the following sentence, and (iii) deliver to the Trustee Notes so accepted together with an Officers' 

51

 

Certificate
stating the Notes or portions thereof accepted for payment by the Company. The Paying Agent shall promptly mail or deliver to Holders of Notes so accepted payment in an amount equal to the
Repurchase Price, and the Company shall execute and the Trustee shall promptly authenticate and mail or deliver to such Holders a new Note equal in principal amount to any unpurchased portion of the
Note surrendered if such Holders only desire portions of their Notes to be purchased. The Company will publicly announce the results of the Excess Proceeds Offer on or as soon as practicable after the
Proceeds Offer Repurchase Date. For purposes of this Section 5.13, the Trustee shall act as the Paying Agent. 

        (e)   Subject
to the provisions of this Section 5.13(e) and Sections 5.13(b) and (c), the Company and its Restricted Subsidiaries shall be permitted to exchange shares
of Capital Stock (whether outstanding shares or newly issued shares of Capital Stock (other than Disqualified Stock)) of TMM Multimodal for outstanding Notes (an "Exchange
Transaction"); provided, that (A) after giving effect to such Exchange Transaction, the Company and its Restricted
Subsidiaries control, directly or indirectly, more than 50% of the Capital Stock of TMM Multimodal which under ordinary circumstances (not dependent upon the happening of a contingency) has voting
power to elect a majority of the board of directors of TMM Multimodal; (B) (i) such Exchange Transaction is effected pursuant to an exchange offer made to all Holders of the Notes and the
Company receives, at the time of the commencement of the exchange offer to effect such Exchange Transaction, an opinion from a Designated Investment Bank to the effect that the consideration to be
received in connection with such Exchange Transaction is fair, from a financial point of view, to the Company and its Restricted Subsidiaries; or (ii) the Company receives, at the time of the
commencement of the exchange offer to effect such Exchange Transaction, an opinion from any of Chanin & Co., Houlihan Lokey Howard & Zukin Capital or The Blackstone Group, or their
respective successors, to the effect that the Exchange Transaction is fair, from a financial point of view, to the non-exchanging Holders of Notes; or (iii) (1) the
consideration to be paid to the Company or its Restricted Subsidiaries in connection with the Exchange Transaction consists of both cash and Notes, (2) the cash consideration comprises at least
two-thirds (2/3) of the total consideration (based on the principal amount of the Notes exchanged in such Exchange Transaction), (3) the aggregate principal amount of
Notes exchanged in all such Exchange Transactions does not exceed $50,000,000, (4) unless such Exchange Transaction is effected pursuant to an exchange offer made to all Holders of the Notes,
no Holder participating in such Exchange Transaction shall be an Affiliate or Associate of the Company and (5) the Company receives an opinion from a Designated Investment Bank to the effect
that the consideration to be received in connection with such Exchange Transaction is fair, from a financial point of view, to the Company and its Restricted Subsidiaries; and (C) for purposes
of clause (B)(i) and (B)(iii)(5) above, the opinion shall be required notwithstanding the amount of the consideration for such transaction and fair market value shall be determined on an
enterprise value basis. 

        SECTION 5.14    ADDITIONAL GUARANTEES; LIMITATION ON ISSUANCES OF GUARANTEES BY RESTRICTED
SUBSIDIARIES.    

        (a)   The
Company shall cause each of (i) TMM Multimodal, upon the exercise in full of the GM Put (or the exercise in full by the Company or any Restricted Subsidiary
of the related call option) and the purchase by the Company or a Restricted Subsidiary of the Capital Stock of TMM Multimodal pursuant to such exercise, (ii) any Restricted Subsidiary that
becomes a Wholly Owned Subsidiary after the Initial Issuance Date (whether such Restricted Subsidiary became a Subsidiary or a Restricted Subsidiary of the Company before or after the Initial Issuance
Date), and (iii) any Restricted Subsidiary that receives any assets upon a disposition of assets by a Guarantor other than in connection with a Qualifying PEMEX Securitization Transaction,
within five Business Days thereafter, to execute and deliver a supplemental indenture to this Indenture providing for a Guarantee of the Company's obligations under the Notes, this Indenture and the
Collateral Documents. 

52

 

        (b)   The
Company will not permit any Restricted Subsidiary, directly or indirectly, to Guarantee any Indebtedness of the Company ("Guaranteed
Indebtedness") which is pari passu with or subordinate in right of payment to the Notes, unless (i) such Restricted
Subsidiary simultaneously executes and delivers a supplemental indenture to this Indenture providing for a Guarantee of the Company's obligations under the Notes, this Indenture and the Collateral
Documents by such Restricted Subsidiary in the form provided herein in an amount at least equal to the amount of Guaranteed Indebtedness that is Guaranteed by such Restricted Subsidiary and
(ii) such Restricted Subsidiary waives and will not in any manner whatsoever claim or take the benefit or advantage of any rights or reimbursements, indemnity or subrogation or any other rights
against the Company or any other Restricted Subsidiary as a result of any payment by such Restricted Subsidiary under its Guarantee; provided that this
paragraph shall not be applicable to (x) any Guarantee of any Restricted Subsidiary that existed at the time such Person became a Restricted Subsidiary and was not incurred in connection with,
or in contemplation of, such Person becoming a Restricted Subsidiary, or (y) any Guarantee by one Restricted Subsidiary of the Indebtedness of another Restricted Subsidiary if at the time such
Guarantee is provided the other Restricted Subsidiary could have incurred the Guaranteed Indebtedness pursuant to the covenants of any indenture by which such Restricted Subsidiary is then bound. If
the Guaranteed Indebtedness is (A) pari passu with the Notes, then the Guarantee of such Guaranteed Indebtedness shall be  pari passu with, or
subordinated to, the Guarantee or (B) subordinated to the Notes, then the Guarantee of such Guaranteed Indebtedness shall be
subordinated to the Guarantee at least to the extent that the Guaranteed Indebtedness is subordinated to the Notes. 

        Notwithstanding
the foregoing, any Guarantee by a Restricted Subsidiary may provide that it shall be automatically and unconditionally released and discharged upon (i) any sale,
exchange or transfer, to any Person not an Affiliate of the Company, of all the Company's and each Restricted Subsidiary's Capital Stock in, or all or substantially all the assets of, such Restricted
Subsidiary (which sale, exchange or transfer is not prohibited by this Indenture) or (ii) the release or discharge of the Guarantee which resulted in the creation of such Guarantee, except a
discharge or release by or as a result of payment under such Guarantee. 

        SECTION 5.15    RESTRICTION ON INVESTMENT ACTIVITY.    The Company
shall not, and shall not permit any Restricted Subsidiary to, become an investment company required to register as an investment company under the Investment Company Act of 1940, as amended,  provided, however, that the Company or any Restricted Subsidiary shall not be deemed to have violated this Section 5.15 so long as the Company or
such Restricted Subsidiary, as the case may be, shall have obtained exemptive relief or shall otherwise have qualified for any applicable exclusion from investment company status within
one-hundred-and-eighty (180) days after the Company or such Restricted Subsidiary shall have become such an investment company. 

 
 

ARTICLE SIX
  REMEDIES    
    

        SECTION 6.01    EVENTS OF DEFAULT.    "Event
of Default," wherever used herein, means any one of the following events: 

        (1)   default
in the payment of any interest or Additional Amount upon any Note when it becomes due and payable, and continuance of such default for a period of five Business
Days; or 

        (2)   default
in the payment of the principal of (or premium, if any, on) any Note when due or at its maturity; or 

        (3)   default
in the observance or performance by the Company of its obligations under Section 5.04, Section 5.08(7) or Article Eleven; or 

53

 

        (4)   default
in the performance, or breach, of any other covenant or warranty of the Company or the Guarantors in this Indenture (other than a covenant or warranty a default
in whose performance or whose breach is elsewhere in this Section specifically dealt with), and continuance of such default or breach for a period of 30 days after there has been given to the
Company by the Trustee or to the Company and the Trustee by the Holders of at least 25% in principal amount of the Outstanding Notes a written notice specifying such default or breach and requiring it
to be remedied and stating that such notice is a "Notice of Default" hereunder; or 

        (5)   a
default under any bond, debenture, note or other evidence of indebtedness for money borrowed by the Company or any Restricted Subsidiary or under any mortgage,
indenture or instrument under which there may be issued or by which there may be secured or evidenced indebtedness for money borrowed, individually or in the aggregate, in excess of $10,000,000,
whether such indebtedness now exists or shall hereafter be created, which default shall constitute a failure to pay any portion of the principal of such indebtedness when due and payable or shall have
resulted in such indebtedness becoming or being declared due and payable prior to the date on which it would otherwise have become due and payable; or 

        (6)   a
default in the performance, or breach, of any covenant or warranty under any of the Collateral Documents by the Company or any Restricted Subsidiary (including any
failure to pledge any assets acquired by the Company or any Restricted Subsidiary as required pursuant hereto or thereto), after giving effect to any notice and cure periods set forth herein or in
such Collateral Documents; or 

        (7)   the
entry by a court having jurisdiction in the premises of (A) a decree or order for relief in respect of the Company or any Restricted Subsidiary in an
involuntary case or proceeding under any applicable Federal, state or foreign bankruptcy, insolvency, reorganization or other similar law, including the Ley de Concursos
Mercantiles (each, a "Bankruptcy Law") or (B) a decree or order adjudging the Company or any Restricted Subsidiary a
bankrupt or insolvent, or approving as properly filed a petition seeking reorganization, suspension of payments, arrangement, adjustment or composition of or in respect of the Company or any
Restricted Subsidiary under any applicable law, or appointing a custodian, receiver, liquidator, assignee, sindico, trustee, sequestrator or other
similar official of the Company or any Restricted Subsidiary or of any substantial part of its property, or ordering the winding up or liquidation of its affairs, and the continuance of any such
decree or order for relief or any such other decree or order unstayed and in effect for a period of 90 consecutive days; provided, however, that this
clause (7) shall not apply to any proceedings initiated by the Company in order to commence or confirm a U.S. prepackaged plan or a prepackaged or prearranged concurso
mercantil pursuant to the terms of the Voting Agreement; or 

        (8)   the
commencement by the Company or any Restricted Subsidiary of a voluntary case or proceeding under any applicable Bankruptcy Law or of any other case or proceeding to
be adjudicated a bankrupt or insolvent, or the consent by the Company or any Restricted Subsidiary to the entry of a decree or order for relief in respect of the Company or such Restricted Subsidiary
in an involuntary case or proceeding under any Bankruptcy Law or to the commencement of any bankruptcy or insolvency case or proceeding against it, or the filing by it of a petition or answer or
consent seeking reorganization or relief under any applicable Bankruptcy Law, or the consent by it to the filing of such petition or to the appointment of or taking possession by a custodian,
receiver, liquidator, assignee, sindico, trustee, sequestrator or similar official of the Company or such Restricted Subsidiary or of any substantial
part of its property, or the making by it of an assignment for the benefit of creditors, or the admission by it in writing of its inability to pay its debts generally as they become due, or the taking
of corporate action by the Company or such Restricted Subsidiary in furtherance of any such action; provided, however, that this clause (8) shall
not apply to any proceedings initiated by the Company in order to commence 

54

 

or
confirm a U.S. prepackaged plan or a prepackaged or prearranged concurso mercantil pursuant to the terms of the Voting Agreement; or 

        (9)   a
final judgment or final judgments for the payment of money are entered by a court of competent jurisdiction against the Company or any Restricted Subsidiary and either
(A) an enforcement proceeding shall have been commenced by any creditor upon such judgment or (B) such judgment remains unsettled, undischarged or unstayed for a period (during which
execution shall not be effectively stayed) of 60 consecutive days after such judgment becomes final, and the aggregate amount of all such judgments exceeds $10,000,000;  provided, that the entry of any
judgment as a result of (A) a default in the payment of amounts due by the Company or any Restricted Subsidiary
in connection with the Put or due by the Company or any Restricted Subsidiary to KCS as a result of payments rendered by KCS in connection with the Put or (B) litigation or other proceedings in
connection with the Put or any disputes with KCS relating to or arising out of the KCS Transaction or other disputes with KCS existing at the Initial Issuance Date relating to Grupo TFM or TFM shall
not constitute an Event of Default under this clause (9); provided, further, that the issuance of
an order (whether pre-judgment or after the entry of such judgment) which order will, upon execution,
result in the attachment of assets of the Company or its Restricted Subsidiaries having a value in excess of (a) $10,000,000, which attachment represents a Lien on assets of the Company or such
Restricted Subsidiary in which the Collateral Agent has a security interest pursuant to the Collateral Documents and which has priority over the security interest on such assets pursuant to the
Collateral Documents or (b) $25,000,000, which attachment represents a Lien on assets of the Company or such Restricted Subsidiary in which the Collateral Agent does not have a security
interest pursuant to the Collateral Documents shall constitute an Event of Default, provided, that no Default or Event of Default shall occur under
clause (b) above until the 60th day following such order or if, within such 60 day period, the Company delivers to the Trustee an opinion from one of the Designated
Investment Banks to the effect that the net value of the equity of the Company (taking into account all Indebtedness of the Company and its Restricted Subsidiaries and the judgment that resulted in
such order) is equal to at least 5% of the principal amount of the Notes Outstanding at the date of such opinion; or 

55

  

        (10) the
issuance or reinstatement of any medida cautelar, suspension order or similar order issued at the request of, or
with the acquiescence of, the Company or any Affiliate or Associate by a court or other governmental body of competent jurisdiction that affects or could affect the Company's or its Restricted
Subsidiaries' obligations with respect to the Notes, the Guarantees, this Indenture or the Collateral Documents; or 

        (11) the
failure of the Company or any of its Restricted Subsidiaries to (i) apply any Net Cash Proceeds from any Asset Disposition or Qualifying Disposition or any
VAT Cash Proceeds as provided in Section 5.13(b) or (d), which failure continues for a period of five Business Days after the Company is required to apply such proceeds pursuant to
Section 5.13(b) or (d) or (ii) pledge (as a first priority Lien) any non-cash proceeds from any Asset Disposition or Qualifying Disposition or non-cash VAT
Proceeds as required by Section 5.13(c) and the Collateral Documents, which failure continues for a period of five Business Days after the receipt of such proceeds; or 

        (12) the
failure of the Company to cause any Restricted Subsidiary that is required to execute and deliver a Guarantee to execute and deliver such Guarantee and any
accompanying Collateral Document as required by Section 5.14 or Article Fourteen; or 

        (13) except
as permitted by this Indenture, any Guarantee is held in any judicial proceeding to be unenforceable or invalid in any material respect or shall cease for any
reason to be in full force and effect or any Guarantor, or any Person acting on behalf of any Guarantor, shall deny or disaffirm its obligations under its Guarantee. 

        For
the avoidance of doubt, the foregoing clause (9) of this Section 6.01 shall not be construed to preclude the occurrence of an Event of Default if any of the events set
forth in such clause results in an event that would be an Event of Default under clauses (7) or (8) of this Section 6.01. 

        SECTION 6.02    DEFAULT RATE OF INTEREST.    Following an Event of
Default, the rate at which the Notes accrue interest shall increase by 2.00% per annum (the "Default Rate"). In addition, following an Event of Default,
any unpaid interest and Additional Amounts, if any, will accrue interest at the Default Rate until such time as full payment is made thereon. 

        SECTION 6.03    ACCELERATION OF MATURITY; RESCISSION AND
ANNULMENT.    If an Event of Default (other than an Event of Default specified in clause (7) or (8) of Section 6.01) occurs and is
continuing, then and in every such case the Trustee or the Holders of not less than 25% in principal amount of the Outstanding Notes may declare the principal of all the Notes, together with all
accrued and unpaid interest and Additional Amounts, if any, to be due and payable immediately, by a notice in writing to the Company (and to the Trustee if given by Holders), and upon any such
declaration such amounts shall become immediately due and payable. Notwithstanding the foregoing, if an Event of Default specified in clause (7) or (8) of Section 6.01 occurs and
is continuing, the principal of the Notes, together with all accrued and unpaid interest and Additional Amounts, if any, shall automatically be accelerated and such amounts, as of the date of
acceleration, shall be and become due and payable immediately, without any notice or other act on the part of the Trustee or any Holder of the Notes. 

        Upon
any acceleration pursuant to this Section 6.03, the Trustee, by its agents (including any Collateral Agent) and attorneys, may proceed, and upon the request of Holders of not
less than a majority in principal amount of the Outstanding Notes shall proceed, to foreclose on the Collateral. To institute such foreclosure proceedings, the Trustee shall deliver a Notice of Sale
as prescribed by each applicable Collateral Document, in each case with a copy to the Company. 

        At
any time after such a declaration of acceleration has been made and before a judgment or decree for payment of the money due has been obtained by the Trustee as hereinafter in this
Article 

56

 

provided,
the Holders of a majority in principal amount of the Outstanding Notes, by written notice to the Company and the Trustee, may rescind and annul such declaration and its consequences if: 

        (1)   the
Company has paid or deposited with the Trustee a sum sufficient to pay: 

        (A)  all
overdue interest and Additional Amounts, if any, on all Notes, 

        (B)  the
principal of (and premium, if any, on) any Notes which have become due otherwise than by such declaration of acceleration and interest thereon at the rate borne by
the Notes, 

        (C)  to
the extent that payment of such interest is lawful, interest upon overdue interest and Additional Amounts, if any, at the rate borne by the Notes, and 

        (D)  all
sums paid or advanced by the Trustee hereunder and the expenses, disbursements, advances and reasonable compensation of the Trustee, its agents and counsel; and 

        (2)   all
Events of Default, other than the non-payment of the principal of Notes which have become due solely by such declaration of acceleration, have been cured
or waived as provided in Section 6.14. 

        No
such rescission shall affect any subsequent default or impair any right consequent thereon. 

        SECTION 6.04    COLLECTION OF INDEBTEDNESS BY TRUSTEE; TRUSTEE MAY PROVE DEBT.
    The Company covenants that: 

        (1)   in
case default shall be made in the payment of any installment of interest or Additional Amounts on any of the Notes, as and when the same shall become due and payable,
and such default shall have continued for a period of five Business Days, and 

        (2)   in
case default shall be made in the payment of the principal of or premium, if any, on any of the Notes when and as the same shall have become due and payable, whether
upon maturity of the Notes or upon redemption or upon declaration or otherwise, 

then,
upon demand of the Trustee, the Company will pay to the Trustee, for the benefit of the Holders of such Notes, the whole amount that then shall have become due and payable on such Notes for
principal and premium, if any, interest and Additional Amounts with interest upon the overdue principal and premium, if any, of each such Note and (to the extent legally enforceable under applicable
law) upon any installments of interest and Additional Amounts, at the rate borne by the Notes; and, in addition thereto, such further amount as shall be sufficient to cover the costs and expenses of
collection, including reasonable compensation to the Trustee, its agents, attorneys and counsel, and any expenses or liabilities incurred by the Trustee hereunder. 

        In
addition to the rights and powers set forth in Section 317(a) of the Trust Indenture Act, the Trustee shall be entitled to file such other papers or documents as may be
necessary or advisable in order to have the claims of the Trustee and of the Holders of the Notes allowed in any judicial proceeding relative to the Company, any Guarantor or other obligor upon the
Notes, its creditors, or its property, and to collect and receive any moneys or other property payable or deliverable on any such claims, and to distribute the same after the deduction of its charges
and expenses; and any receiver, assignee or trustee in bankruptcy or reorganization is hereby authorized by each of the Holders to make such payments to the Trustee, and, in the event that the Trustee
shall consent to the making of such payments directly to the Holders, to pay to the Trustee any amount due it for compensation and expenses, including counsel fees incurred by it up to the date of
such distribution. 

        If
an Event of Default occurs and is continuing, the Trustee may in its discretion proceed to protect and enforce its rights and the rights of the Holders by such appropriate judicial
proceedings as the Trustee shall deem most effectual to protect and enforce such rights, whether for the specific 

57

 

enforcement
of any covenant or agreement in this Indenture or in aid of the exercise of any power granted herein, or to enforce any other proper remedy. 

        SECTION 6.05    TRUSTEE MAY FILE PROOFS OF CLAIM.    In case of the
pendency of any receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or other judicial proceeding relative to the Company, any Guarantor or any other
obligor upon the Notes or the property of the Company, any Guarantor or of such other obligor or their creditors, the Trustee (irrespective of whether the principal of the Notes shall then be due and
payable as therein expressed or by declaration or otherwise and irrespective of whether the Trustee shall have made any demand on the Company for the payment of overdue principal or interest) shall be
entitled and empowered, by intervention in such proceeding or otherwise, 

        (i)    to
file and prove a claim for the whole amount of principal (and premium, if any) and interest and Additional Amounts, if any, owing and unpaid in respect of the Notes
and to file such other papers or documents as may be necessary or advisable in order to have the claims of the Trustee and any predecessor trustee (including any claim for reasonable compensation,
expenses, disbursements and advances of the Trustee and any predecessor trustee, their agents and counsel) and of the Holders allowed in such judicial proceeding, and 

        (ii)   to
collect and receive any moneys or other property payable or deliverable on any such claims and to distribute the same; and any custodian, receiver, assignee,
trustee, liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by each Holder to make such payments to the Trustee and, in the event that the Trustee
shall consent to the making of such payments directly to the Holders, to pay to the Trustee any amount due it for expenses, disbursements, advances and reasonable compensation of the Trustee and any
predecessor trustee, their agents and counsel, and any other amounts due the Trustee and any predecessor trustee under Section 7.06. 

        Nothing
herein contained shall be deemed to authorize the Trustee to authorize or consent to or accept or adopt on behalf of any Holder any plan of reorganization, arrangement,
adjustment or composition affecting the Notes or the rights of any Holder thereof or to authorize the Trustee to vote in respect of the claim of any Holder in any such proceeding. 

        SECTION 6.06    TRUSTEE MAY ENFORCE CLAIMS WITHOUT POSSESSION OF
NOTES.    All rights of action and claims under this Indenture, the Collateral Documents or the Notes (including the Guarantees) may be prosecuted and enforced by the
Trustee without the possession of any of the Notes or the production thereof in any proceeding relating thereto, and any such proceeding instituted by the
Trustee shall be brought in its own name as trustee of an express trust, and any recovery of judgment shall, after provision for the payment of expenses, disbursements, advances and reasonable
compensation of the Trustee, its agents and counsel, be for the ratable benefit of the Holders of the Notes in respect of which such judgment has been recovered. 

        SECTION 6.07    APPLICATION OF MONEY OR PROPERTY COLLECTED.    Subject
to Article Thirteen, any money or property collected by the Trustee pursuant to this Article shall be applied in the following order, at the date or dates fixed by the Trustee and, in case of the
distribution of such money or property on account of principal (or premium, if any), interest or Additional Amounts, upon presentation of the Notes and the notation thereon of the payment if only
partially paid and upon surrender thereof if fully paid: 

        FIRST:
To the payment of all amounts due the Trustee and any predecessor trustee under Section 7.06 or otherwise under this Indenture; and 

        SECOND:
To the payment of the amounts then due and unpaid for principal of (and premium, if any), interest and Additional Amounts on the Notes in respect of which or for the benefit of
which such money or property has been collected, ratably, without preference or priority 

58

 

of
any kind, according to the amounts due and payable on such Notes for principal (and premium, if any) and interest and Additional Amounts, respectively; and 

        THIRD:
to the Company or the Guarantors or to such party as a court of competent jurisdiction shall direct. 

        The
Trustee may fix a record date and payment date for any payment to Holders of Notes pursuant to this Section 6.07. 

        SECTION 6.08    LIMITATION ON SUITS.    No Holder of any Note shall
have any right to institute any proceeding, judicial or otherwise, with respect to this Indenture, the Guarantees or the Collateral Documents, or for the appointment of a receiver or trustee, or for
any other remedy hereunder, unless: 

        (1)   such
Holder has previously given written notice to the Trustee of a continuing Event of Default; 

        (2)   the
Holders of not less than 25% in aggregate principal amount of the Outstanding Notes shall have made written request to the Trustee to institute proceedings in
respect of such Event of Default in its own name as Trustee hereunder; 

        (3)   such
Holder or Holders have offered to the Trustee reasonable indemnity or security against the costs, expenses and liabilities to be incurred in compliance with such
request; 

        (4)   the
Trustee for 60 days after its receipt of such notice, request and offer of indemnity or security has failed to institute any such proceeding; and 

        (5)   no
direction inconsistent with such written request has been given to the Trustee during such 60-day period by the Holders of at least a majority in
aggregate principal amount of the Outstanding Notes; 

it
being understood and intended that no one or more Holders shall have any right in any manner whatever by virtue of, or by availing of, any provision of this Indenture, the Guarantees or the
Collateral Documents to affect, disturb or prejudice the rights of any other Holders, or to obtain or to seek to obtain priority or preference over any other Holders or to enforce any right under this
Indenture, the Guarantees or the Collateral Documents, except in the manner herein provided and for the equal and ratable benefit of all the Holders. 

        SECTION 6.09    RIGHTS OF HOLDERS OF NOTES TO RECEIVE
PAYMENT.    Notwithstanding any other provision of this Indenture, the right of any Holder of a Note to receive payment of principal and interest and Additional
Amounts, if any, on such Note, on or after the respective due dates expressed in such Note (including in connection with an offer to purchase), or to bring suit for the enforcement of any such payment
on or after such respective dates, shall not be impaired or affected without the consent of such Holder, except that no Holder shall have the right to institute any such suit, if and to the extent
that the institution or prosecution thereof or the entry of judgment therein would under applicable law result in the surrender, impairment, waiver, or loss of the Liens pursuant to the Collateral
Documents upon any property or assets subject to the Liens. 

        SECTION 6.10    RESTORATION OF RIGHTS AND REMEDIES.    If the Trustee
or any Holder has instituted any proceeding to enforce any right or remedy under this Indenture, the Guarantees or the Collateral Documents and such proceeding has been discontinued or abandoned for
any reason, or has been determined adversely to the Trustee or to such Holder, then and in every such case, subject to any determination in such proceeding, the Company, the Guarantors, the Trustee
and the Holders shall be restored severally and respectively to their former positions hereunder and thereafter all rights and remedies of the Trustee and the Holders shall continue as though no such
proceeding had been instituted. 

59

 

        SECTION 6.11    RIGHTS AND REMEDIES CUMULATIVE.    Except as otherwise
provided with respect to the replacement or payment of mutilated, destroyed, lost or stolen Notes in the last paragraph of Section 3.09, no right or remedy herein conferred upon or reserved to
the Trustee or to the Holders is intended to be exclusive of any other right or remedy, and every right and remedy shall, to the extent permitted by law, be cumulative and in addition to every other
right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the
concurrent assertion or employment of any other appropriate right or remedy. 

        SECTION 6.12    DELAY OR OMISSION NOT WAIVER.    No delay or omission
of the Trustee or of any Holder of any Note to exercise any right or remedy accruing upon any Event of Default shall impair any such right or remedy or constitute a waiver of any such Event of Default
or an acquiescence therein. Every right and remedy given by this Article or by law to the Trustee or to the Holders may be exercised from time to time, and as often as may be deemed expedient, by the
Trustee or by the Holders, as the case may be. 

        SECTION 6.13    CONTROL BY HOLDERS.    The Holders of at least a
majority in principal amount of the Outstanding Notes shall have the right to direct the time, method and place of conducting any proceeding for any remedy available to the Trustee or exercising any
trust or power conferred on the Trustee, provided that: 

        (1)   such
direction shall not be in conflict with any rule of law or with this Indenture, 

        (2)   the
Trustee may take any other action deemed proper by the Trustee which is not inconsistent with such direction, and 

        (3)   the
Trustee may decline to follow any such direction if the Trustee in good faith shall determine that the action or proceeding so directed would involve it in personal
liability, or if the Trustee in good faith
shall determine that the actions or forbearances specified in or pursuant to such direction would be unduly prejudicial to the interests of Holders not joining in the giving of such direction, it
being understood that the Trustee shall have no duty to ascertain whether or not such actions or forbearances are unduly prejudicial to such Holders. 

        SECTION 6.14    WAIVER OF PAST DEFAULTS.    The Holders of at least a
majority in aggregate principal amount of the Outstanding Notes may on behalf of the Holders of all the Notes waive any past default hereunder and its consequences, except a default 

        (1)   in
the payment of the principal of (or premium, if any), interest or Additional Amounts on any Note, or 

        (2)   in
respect of a covenant or provision hereof which under Article Ten cannot be modified or amended without the consent of the Holder of each Outstanding Note affected. 

60

  

        Upon any such waiver, such default shall cease to exist, and any Event of Default arising therefrom shall be deemed to have been cured, for every purpose of this Indenture; but no such
waiver shall extend to any subsequent or other default or impair any right consequent thereon. 

 
 

ARTICLE SEVEN
  CONCERNING THE TRUSTEE    
    

        SECTION 7.01    DUTIES OF TRUSTEE.    

        (a)   If
an Event of Default has occurred and is continuing, the Trustee shall exercise such of the rights and powers vested in it by this Indenture and use the same degree of
care and skill in their exercise as a prudent person would exercise or use under the circumstances in the conduct of its own affairs. 

        (b)   Notwithstanding
clause (a) above, during the continuance of an Event of Default: 

        (1)   The
Trustee need perform only those duties that are specifically set forth in this Indenture and no others. 

        (2)   In
the absence of bad faith on its part, the Trustee may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon
certificates or opinions furnished to the Trustee and conforming to the requirements of this Indenture, but in the case of any certificate or opinion which by any provision hereof is specifically
required to be furnished to the Trustee or which the Trustee relies on, the Trustee shall examine the certificates and opinions submitted to determine whether or not they conform to the requirements
of this Indenture. 

        (c)   Subject
to Section 7.02, the Trustee may not be relieved from liability for its negligent actions, its negligent failure to act or its willful misconduct, except
that: 

        (1)   This
paragraph does not limit the effect of paragraph (b) of this Section 7.01; 

        (2)   The
Trustee shall not be liable for any error of judgment made in good faith by a Responsible Officer, unless it is proved that the Trustee was negligent in ascertaining
the pertinent facts; 

        (3)   The
Trustee shall not be liable with respect to any action it takes or omits to take in good faith in accordance with a direction received by it pursuant to
Section 6.13; and 

        (4)   No
provision of this Indenture shall require the Trustee to expend or risk its own funds or otherwise incur any financial liability in the performance of any of its
duties hereunder or in the exercise of any of its rights or powers if it shall have reasonable grounds for believing that repayment of such funds or adequate indemnity against such risk or liability
is not reasonably assured to it. 

        (d)   Every
provision of this Indenture that in any way relates to the Trustee is subject to paragraphs (a), (b) and (c) of this Section 7.01. 

        (e)   The
Trustee may refuse to perform any duty or exercise any right or power unless it receives security or indemnity satisfactory to it against any loss, cost, liability
or expense. 

        (f)    The
Trustee shall not be liable for interest on any money received by it. 

        (g)   Money
held in trust by the Trustee need not be segregated from other funds except to the extent required by law. 

61

 

        (h)   The
Trustee shall make payments pursuant to Sections 5.01, 5.12 and 5.13 to the Holders as soon as practicable in accordance with the terms of this Indenture after
receipt from the Company or the Guarantors of the funds. 

        SECTION 7.02    CERTAIN RIGHTS OF TRUSTEE.    Except as otherwise
provided in Section 315 of the Trust Indenture Act: 

        (a)   The
Trustee may rely and shall be protected in acting, or refraining from acting, upon any resolution, certificate, statement, instrument, opinion, report, notice,
request, consent, order, bond, debenture or other paper or document believed by it to be genuine and to have been signed or presented by the proper party or parties; 

        (b)   Any
request, direction, order or demand of the Company mentioned herein shall be sufficiently evidenced by an instrument signed in the name of the Company by the
Chairman of the Board of Directors, a Vice Chairman of the Board of Directors, its Director General, its President, any Vice President, its Director of Administration, its Secretary or an Assistant
Secretary or its Treasurer or an Assistant Treasurer (unless other evidence in respect thereof be herein specifically prescribed); and any resolution of the Board of Directors may be evidenced to the
Trustee by a copy thereof certified by the Secretary or an Assistant Secretary of the Company; 

        (c)   Before
it acts or refrains from acting, the Trustee may consult with counsel and the advice of counsel or any Opinion of Counsel shall be full and complete authorization
and protection in respect of any action taken, suffered or omitted by it hereunder in good faith and in reliance thereon; 

        (d)   The
Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Indenture at the request, order or direction of any of the Holders,
pursuant to the provisions of this Indenture, unless such Holders shall have offered to the Trustee reasonable security or indemnity against the costs, expenses and liabilities which may be incurred
therein or thereby; 

        (e)   The
Trustee shall not be liable for any action taken, suffered or omitted by it in good faith and believed by it to be authorized or within the discretion or rights or
powers conferred upon it by this Indenture; 

        (f)    Prior
to the Trustee being notified of the occurrence of an Event of Default hereunder and after the curing or waiving of all Events of Default, the Trustee shall not be
bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, consent, order, approval, appraisal, bond,
debenture or other paper or document with respect to the Notes unless requested in writing to do so by the Holders of not less than a majority in aggregate principal amount of the Notes then
Outstanding; provided, however, that (i) if the Trustee shall determine to make such further inquiry or investigation, it shall be entitled to
examine, during normal business hours and upon reasonable notice, the books, records and premises relevant to such inquiry or investigation, either personally or by agent or attorney; and
(ii) if the payment within a reasonable time to the Trustee of the costs, expenses or liabilities likely to be incurred by it in the making of such investigation is, in the opinion of the
Trustee, not reasonably assured to the Trustee by the security afforded to it by the terms of this Indenture, the Trustee may require reasonable indemnity or security against such expenses or
liabilities as a condition to so proceeding. The reasonable expense of every such investigation shall be paid by the Company or, if paid by the Trustee, shall be repaid by the Company upon demand; 

        (g)   The
Trustee may execute any of the trusts or powers hereunder or perform any duties hereunder either directly or by or through agents or attorneys, and the Trustee shall
not be responsible for any misconduct or negligence on the part of any agent or attorney appointed with due care by it hereunder; 

62

 

        (h)   The
Trustee shall not be deemed to have knowledge of a Default or Event of Default until a Responsible Officer has received written notice thereof; and 

        (i)    The
Trustee shall not have any duty, express or implied, to monitor the financial condition of the Company. 

        SECTION 7.03    TRUSTEE NOT RESPONSIBLE FOR RECITALS, ETC.    The
recitals contained herein and in the Notes and the Guarantees, except the Trustee's certificate and the representation as to the power of the Trustee to enter into this Indenture and accept and
execute the trusts hereby created, shall be taken as the statements of the Company and the Guarantors, and the Trustee assumes no responsibility for the correctness of the same. The Trustee makes no
representations as to the validity or sufficiency of this Indenture or of the Notes other than its certificate of authentication. The Trustee shall not be (i) accountable for the use or
application by the Company of any of the Notes or of the proceeds of such Notes, (ii) accountable for any money paid to the Company, or upon the Company's direction, if made under and in
accordance with any provision of this Indenture, or (iii) responsible for the use or application of any money received by any Paying Agent other than itself. 

        SECTION 7.04    TRUSTEE AND OTHERS MAY HOLD NOTES.    The Trustee or
any Paying Agent or Note Registrar or any other agent of the Company or the Trustee, in its individual or any other capacity, may become the owner or pledgee of Notes and, subject to Sections 7.08 and
7.15, may otherwise deal with the Company, any Guarantor or any other obligor on the Notes with the same rights it would have if it were not Trustee, Paying Agent, Note Registrar or such other agent. 

        SECTION 7.05    MONEYS HELD BY TRUSTEE OR PAYING AGENT.    Subject to
Sections 12.02 and 12.03, all moneys received by the Trustee or any Paying Agent shall, until used or applied as herein provided, be held in trust for the purposes for which they were received, but
need not be segregated from other funds except to the extent required by law. Neither the Trustee nor any Paying Agent shall be under any liability for interest on any moneys received by it hereunder
except such as it may agree with the Company to pay thereon. So long as no Event of Default shall have occurred and be continuing, all interest earned on such moneys shall be paid to the Company from
time to time upon a Company Order. The provisions of this Section 7.05 shall not apply to the Company acting as its own Paying Agent pursuant to Section 5.03. 

        SECTION 7.06    COMPENSATION OF TRUSTEE AND ITS LIEN.    The Company
covenants and agrees to pay to the Trustee from time to time, and the Trustee shall be entitled to, reasonable compensation for all services rendered by it hereunder and under the Collateral Documents
(which shall be agreed to from time to time by the Company and the Trustee and which shall not be limited by any provision of law in regard to the compensation of a trustee of an express trust), and,
except as herein otherwise expressly provided, the Company will pay or reimburse the Trustee upon its request for all expenses, disbursements and advances incurred or made by the Trustee in accordance
with any of the provisions of this Indenture or any of the Collateral Documents (including reasonable compensation and the expenses and disbursements of its counsel and of all persons not regularly in
its employ) except any such expense, disbursement or advance as may arise from its negligence or bad faith. If any property other than cash shall at any time be subject to the lien of this Indenture,
the Trustee, if and to the extent authorized by a receivership or bankruptcy court of competent jurisdiction or by the supplemental instrument subjecting such property to such lien, shall be entitled
to make advances for the purpose of preserving such property or of discharging tax liens or other prior liens or encumbrances thereon. 

        Subject
to the further provisions of this paragraph, the Company and the Guarantors jointly and severally covenant and agree to indemnify the Trustee for, and to hold it harmless
against, any loss, liability, claim, damage or expense incurred without negligence or bad faith on the part of the Trustee, arising out of or in connection with the acceptance or administration of the
trust or trusts hereunder, including liability which the Trustee may incur as a result of failure to withhold, pay or report taxes 

63

 

arising
out of the transactions contemplated by this Indenture (other than taxes based on the Trustee's income) and including the costs and expenses of defending itself against any claim or liability
in the premises. The Trustee shall notify the Company promptly of any claim for which it may seek indemnity. The Company shall defend the claim, and the Trustee shall cooperate in the defense. The
Trustee may have separate counsel, and the Company shall pay the reasonable fees and expenses of such counsel. The Company shall have no obligation to pay for any settlement of any such claim made
without its consent. 

        The
obligations of the Company and the Guarantors under this Section 7.06 shall survive the resignation of the Trustee and/or the satisfaction and discharge or termination of this
Indenture. 

        The
obligations of the Company under this Section 7.06 shall constitute additional indebtedness hereunder. Such additional indebtedness shall be secured by a lien prior to that of
the Notes upon all property and funds held or collected by the Trustee as such, except funds held in trust for the benefit of the Holders of particular Notes. 

        When
the Trustee incurs expenses or renders services after an Event of Default specified in Section 6.01(7) or (8) occurs, the expenses and the compensation for the
services are intended to constitute expenses of administration under any Bankruptcy Law. 

        SECTION 7.07    RIGHT OF TRUSTEE TO RELY ON CERTIFICATE OF CERTAIN
OFFICERS.    Except as otherwise provided in Section 315 of the Trust Indenture Act, whenever in the administration of the provisions of this Indenture the
Trustee shall deem it necessary or desirable that a matter be proved or established prior to taking or suffering any action hereunder, such matter (unless other evidence in respect thereof be herein
specifically prescribed) may, in the absence of negligence or bad faith on the part of the Trustee, be deemed to be conclusively proved and established by an Officers' Certificate delivered to the
Trustee and such certificate, in the absence of negligence or bad faith on the part of the Trustee, shall be full warrant to the Trustee for any action taken, suffered or omitted by it under the
provisions of this Indenture upon the faith thereof. 

        SECTION 7.08    PERSONS ELIGIBLE FOR APPOINTMENT AS TRUSTEE.    The
Trustee hereunder shall at all times be a corporation which complies with the requirements of the Trust Indenture Act, and has (or in the case of a corporation included in a bank holding company, the
bank holding company and related entities have) a combined capital and surplus of at least $50,000,000. If such
corporation publishes reports of condition at least annually, pursuant to law or to the requirements of the supervising or examining authority to which it is subject, then for the purposes of this
Section, the combined capital and surplus of such corporation shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published. This Indenture
shall always have a Trustee which shall be eligible to act as Trustee under Section 310(a)(1) and Section 310(a)(2) of the Trust Indenture Act. If the Trustee has or shall acquire any
"conflicting interest" within the meaning of Section 310(b) of the Trust Indenture Act, the Trustee and the Company shall comply with the provisions of Section 310(b) of the Trust
Indenture Act; provided, however, that there shall be excluded from the operation of Section 310(b)(1) of the Trust Indenture Act any indenture
or indentures under which other securities or certificates of interest or participation in other securities of the Company are outstanding if the requirements for such exclusion set forth in
Section 310(b)(1) of the Trust Indenture Act are met. If at any time the Trustee shall cease to be eligible in accordance with the provisions of this Section 7.08, the Trustee shall
resign immediately in the manner and with the effect hereinbefore specified in this Article Seven. The provisions of Section 310 of the Trust Indenture Act shall apply to the Company, the
Guarantors and any other obligor of the Notes. 

64

 

        SECTION 7.09    RESIGNATION AND REMOVAL OF TRUSTEE; APPOINTMENT OF
SUCCESSOR.    

        (a)   The
Trustee, or any trustee or trustees hereafter appointed, may at any time resign by giving written notice to the Company and by giving notice of such resignation to
the Holders of Notes in the manner provided in Section 1.05. Upon receiving such notice of resignation, the Company shall promptly appoint a successor trustee by written instrument executed by
order of the Board of Directors, one copy of which instrument shall be delivered to the resigning trustee and one copy to the successor trustee. If no successor trustee shall have been so appointed
and have accepted appointment within 30 days after the delivery of such notice of resignation, the resigning trustee may petition any court of competent jurisdiction for the appointment of a
successor trustee, or any Holder who has been a bona fide Holder of a Note or Notes for at least six months may, subject to the requirements of Section 315(e) of the Trust Indenture Act, on
behalf of such Holder and all others similarly situated, petition any such court for the appointment of a successor trustee. Such court may thereupon after such notice, if any, as it may deem proper
and prescribe, appoint a successor trustee. 

        (b)   In
case at any time either of the following shall occur: 

        (1)   the
Trustee shall cease to be eligible under Section 7.08 and shall fail to resign after written request therefor by the Company or by any such Holder, or 

        (2)   the
Trustee shall become incapable of acting, or shall be adjudged bankrupt or insolvent, or a receiver of the Trustee or of its property shall be appointed, or any
public officer shall take charge or
control of the Trustee or of its property or affairs for the purpose of rehabilitation, conservation or liquidation; 

then,
in either such case, the Company may remove the Trustee, and appoint a successor trustee by written instrument, in duplicate, executed by order of the Board of Directors of the Company, one copy
of which instrument shall be delivered to the trustee so removed and one copy to the successor trustee, or, subject to the requirements of Section 315(e) of the Trust Indenture Act, any Holder
who has been a bona fide Holder of a Note or Notes for at least six months may, on behalf of such Holder and all others similarly situated, petition any court of competent jurisdiction for the removal
of the Trustee and the appointment of a successor trustee. Such court may thereupon after such notice, if any, as it may deem proper and prescribe, remove the Trustee and appoint a successor trustee. 

        (c)   The
Holders of at least a majority in aggregate principal amount of the Notes at the time Outstanding may at any time remove the Trustee and appoint a successor trustee
by delivering to the trustee so removed, to the successor trustee so appointed and to the Company, the evidence provided for in Section 8.01 of the action taken by the Holders. 

        (d)   Any
resignation or removal of the Trustee and any appointment of a successor trustee pursuant to this Section shall become effective only upon acceptance of appointment
by the successor trustee as provided in Section 7.10. 

        SECTION 7.10    ACCEPTANCE OF APPOINTMENT BY SUCCESSOR TRUSTEE.    Any
successor trustee appointed under Section 7.09 shall execute, acknowledge and deliver to the Company and to its predecessor trustee an instrument accepting such appointment hereunder, and
thereupon the resignation or removal of the predecessor trustee shall become effective and such successor trustee, without any further act, deed or conveyance, shall become vested with all the rights,
powers, trusts, duties and obligations of its predecessor hereunder, with like effect as if originally named as Trustee herein; but, nevertheless, on the written request of the Company or of the
successor trustee, the Trustee ceasing to act shall, upon payment of any such amounts then due it pursuant to the provisions of Section 7.06, execute and deliver an instrument transferring to
such successor trustee all the rights, powers and trusts of the Trustee so ceasing to act. Upon request of any such successor trustee, the Company shall execute any and all instruments in writing for
more fully and certainly vesting in and confirming to such successor trustee all such rights and powers. Any Trustee ceasing to act shall, 

65

 

nevertheless,
retain a lien upon all property or funds held or collected by such Trustee to secure any amounts then due it pursuant to Section 7.06. 

        No
successor trustee with respect to the Notes shall accept appointment as provided in this Section unless at the time of such acceptance such successor trustee shall with respect to the
Notes be qualified under the Trust Indenture Act and eligible under Section 7.08. 

        Upon
acceptance of appointment by a successor trustee, the Company shall give notice of the succession of such trustee hereunder to the Holders of Notes in the manner provided in
Section 1.05. If the Company fails to give such notice within 10 days after acceptance of appointment by the successor trustee, the successor trustee shall cause such notice to be given
at the expense of the Company. 

        SECTION 7.11    MERGER, CONVERSION OR CONSOLIDATION OF TRUSTEE.    Any
corporation into which the Trustee may be merged or converted or with which it may be consolidated, or any corporation resulting from any merger, conversion or consolidation to which the Trustee shall
be a party, or any corporation succeeding to all or substantially all the corporate trust business of the Trustee, shall be the successor of the Trustee hereunder without the execution or filing of
any paper or any further act on the part of any of the parties hereto, provided that such successor trustee shall be qualified under the Trust Indenture Act and eligible under the provisions of
Section 7.08 hereof and Section 310(a) of the Trust Indenture Act. 

        SECTION 7.12    AUTHENTICATING AGENTS.    There may be an
Authenticating Agent appointed by the Trustee from time to time with power to act on its behalf and subject to its direction in connection with the authentication and delivery of Notes issued upon
exchange, transfer or redemption thereof as fully to all intents and purposes as though such Authenticating Agent (the "Authenticating Agent") had been
expressly authorized to authenticate and deliver Notes, and Notes so authenticated shall be entitled to the benefits of this Indenture and shall be valid and obligatory for all purposes as though
authenticated by the Trustee hereunder. For all purposes of this Indenture (except in the case of original issuance of Notes and the issuance of Notes in replacement of lost, stolen, mutilated or
destroyed Notes), the authentication and delivery of Notes by an Authenticating Agent appointed pursuant to the provisions of this Section 7.12 shall be deemed to be the authentication and
delivery of such Notes "by the Trustee," and whenever this Indenture provides (except in the case of original issuance of the Notes and the issuance of Notes in replacement of lost, stolen, mutilated
or destroyed Notes) that "the Trustee shall authenticate and deliver" Notes, such authentication and delivery by any Authenticating Agent shall be deemed to be authentication and delivery by the
Trustee. Any such Authenticating Agent shall at all times be a corporation organized and doing business under the laws of the United States of America or any State or the District of Columbia, with a
combined capital and surplus of at least $25,000,000 and authorized under such laws to act as an authenticating agent, duly registered to act as such, if and to the extent required by applicable law
and subject to supervision or examination by Federal, State or District of Columbia authority. If such corporation publishes reports of its condition at least annually, pursuant to law or the
requirements of such authority, then for the purposes of this Section 7.12 the combined capital and surplus of such corporation shall be deemed to be its combined capital and surplus as set
forth in its most recent report of condition so published. If at any time an Authenticating Agent shall cease to be eligible to act as such in accordance with the provisions of this
Section 7.12, it shall resign immediately in the manner and with the effect herein specified in this Section 7.12. 

        Any
corporation into which any Authenticating Agent may be merged or converted or with which it may be consolidated, or any corporation resulting from any merger, conversion or
consolidation to which any Authenticating Agent shall be a party, or any corporation succeeding to the corporate agency business of any Authenticating Agent, shall be the successor of the
Authenticating Agent hereunder, if such successor corporation is otherwise eligible to act as such in accordance with the provisions of this 

66

 

Section 7.12,
without the execution or filing of any paper or any further act on the part of the Trustee or the Authenticating Agent or such successor corporation. 

        Any
Authenticating Agent may at any time resign by giving written notice of resignation to the Trustee and to the Company. The Trustee may at any time terminate the agency of any
Authenticating Agent by giving written notice of termination to such Authenticating Agent and to the Company. Upon receiving such a notice of resignation or upon a termination, or in case at any time
any Authenticating Agent shall cease to be eligible to act as such in accordance with the provisions of this Section 7.12, the Trustee may appoint a successor authenticating agent. Upon the
appointment, at any time after the original issuance of any of the Notes, of any successor, additional or new authenticating agent, the Trustee shall give written notice of such appointment to the
Company and shall at the expense of the Company give notice of such appointment to all Holders of Notes in the manner provided in Section 1.05. Any successor authenticating agent upon
acceptance of its appointment pursuant to the provisions of this Section 7.12 shall become vested with all the rights, powers, duties and obligations of its predecessor hereunder, with like
effect as if initially named as an Authenticating Agent herein. No successor authenticating agent shall be appointed unless eligible to act as such in accordance with the provisions of this
Section 7.12. 

        Any
Authenticating Agent by the acceptance of its appointment shall be deemed to have represented to the Trustee that it is eligible for appointment as Authenticating Agent under this
Section 7.12 and to have agreed with the Trustee that: it will perform and carry out the duties of an Authenticating Agent as herein set forth, including, among other things, the duties to
authenticate and deliver Notes when presented to it in connection with exchanges, registrations of transfer or redemptions thereof; it will keep and maintain, and furnish to the Trustee from time to
time as requested by the Trustee, appropriate records of all transactions carried out by it as Authenticating Agent and will furnish the Trustee such other information and reports as the Trustee may
reasonably require; and it will notify the Trustee promptly if it shall cease to be eligible to act as Authenticating Agent in accordance with the provisions of this Section 7.12. Any
Authenticating Agent by the acceptance of its appointment shall be deemed to have agreed with the Trustee to indemnify the Trustee against any loss, liability or expense incurred by the Trustee and to
defend any claim asserted against the Trustee by reason of any acts or failures to act of such Authenticating Agent, but such Authenticating Agent shall have no liability for any action taken by it in
accordance with the specific written direction of the Trustee. 

        The
Trustee agrees to pay to each Authenticating Agent from time to time reasonable compensation and expenses for its services (to the extent such compensation is not paid by the
Company), and the Trustee shall be entitled to be reimbursed for such payments subject to the provisions of Section 7.06. 

        The
provisions of Sections 7.03, 7.04 and 7.07 shall inure to the benefit of each Authenticating Agent to the same extent that they inure to the benefit of the Trustee. 

67

 

        If
an appointment is made pursuant to this Section 7.12, the Notes may have endorsed thereon, in addition to the Trustee's certificate of authentication, an alternate certificate
of authentication in substantially the following form: 

        This
is one of the Notes referred to in the within-mentioned Indenture. 

	 	 	WELLS FARGO BANK, N.A.,

As Trustee
	

 	
 	

By:	

    
 As Authenticating Agent	
 	

 
	

 	
 	

By:	

    
 Authorized Signatory	
 	

 

        SECTION 7.13    REPORTS BY TRUSTEE.    On or before April 15,
in every year, so long as any Notes are outstanding hereunder, the Trustee shall transmit to the Holders a brief report, dated as of the preceding March 15, and as otherwise required by
Section 313 of the Trust Indenture Act in accordance with the procedures set forth in said Section. 

        SECTION 7.14    TRUSTEE RISK.    None of the provisions contained in
this Indenture shall require the Trustee to expend or risk its own funds or otherwise incur personal financial liability in the performance of any of its duties or in the exercise of any of its rights
or powers, if there is reasonable ground for believing that the repayment of such funds or liability is not reasonably assured to it.
Whether or not therein expressly so provided, every provision of this Indenture relating to the conduct or affecting the liability of or affording protection to the Trustee shall be subject to the
requirements of the Trust Indenture Act. 

        SECTION 7.15    NOTICE OF DEFAULT.    If any Default or any Event of
Default occurs and is continuing and if such Default or Event of Default is actually known to a Responsible Officer of the Trustee, the Trustee shall mail to each Holder, in the manner and to the
extent provided in Section 313(c) of the Trust Indenture Act, notice of such Default or Event of Default within 90 days after it occurs, unless such Default or Event of Default has been
cured; provided, however, that, except in the case of a default in the payment of the principal of, premium, if any, or interest or Additional Amounts
on any Note, the Trustee shall be protected in withholding such notice if and so long as the board of directors, the executive committee or a trust committee of directors and/or Responsible Officers
of the Trustee in good faith determines that the withholding of such notice is in the interest of the Holders. 

        SECTION 7.16    PREFERENTIAL COLLECTION OF CLAIMS AGAINST THE
COMPANY.    The Trustee shall comply with Section 311(a) of the Trust Indenture Act, excluding any creditor relationship listed in Section 311(b) of the
Trust Indenture Act. A Trustee who has resigned or been removed shall be subject to Section 311(a) of the Trust Indenture Act to the extent indicated therein. 

        SECTION 7.17    TRUSTEE'S APPLICATION FOR INSTRUCTIONS FROM THE
COMPANY.    Any application by the Trustee for written instructions from the Company may, at the option of the Trustee, set forth in writing any action proposed to be
taken or omitted by the Trustee under this Indenture and the date on and/or after which such action shall be taken or such omission shall be effective. The Trustee shall not be liable for any action
taken by, or omission of, the Trustee in accordance with a proposal included in such application on or after the date specified in such application (which date shall not be less than three Business
Days after the date any officer of the Company actually receives such application, unless any such officer shall have consented in writing to any earlier date) unless prior to taking any such action
(or the effective date in the case of an omission), the Trustee shall have received written instructions in response to such application specifying the action to be taken or omitted. 

68

 

        SECTION 7.18    LIMITATION OF LIABILITY.    It is understood by the
parties hereto other than Wells Fargo Bank, N.A. (the "Bank") that the sole recourse of the parties hereto other than the Bank in respect of the
obligations of the trust hereunder and under the other documents contemplated hereby and related hereto to which it is a party shall be to the parties hereto other than the Bank. In addition, the Bank
is entering into this Indenture and the other documents contemplated hereby and related hereto to which it is a party solely in its capacity as Trustee under this Indenture and not in its individual
capacity (except as expressly stated herein) and in no case shall the Bank (or any Person acting as successor trustee under this Indenture) be personally liable for or on account of any of the
statements, representations, warranties, covenants or obligations stated to be those of the Company or the Guarantors hereunder or thereunder, all such liability, if any, being expressly waived by the
parties
hereto and any Person claiming by, through or under such party, provided, however, that the Bank (or any such successor trustee) shall be personally
liable hereunder and thereunder for its own negligence or willful misconduct or for its material breach of its covenants, representations and warranties contained herein or therein, to the extent
expressly covenanted or made in its individual capacity. In no event shall the Trustee, in its capacity as Paying Agent, Note Registrar, Depositary or in any other capacity hereunder, be liable under
or in connection with this Indenture for indirect, special, incidental, punitive or consequential losses or damages of any kind whatsoever, including but not limited to lost profits, whether or not
foreseeable, even if the Trustee has been advised of the possibility thereof and regardless of the form of action in which such damages are sought. The provisions of this Section shall survive the
termination of this Indenture and the resignation or removal of the Trustee. 

 
 

ARTICLE EIGHT
  CONCERNING THE HOLDERS    
    

        SECTION 8.01    EVIDENCE OF ACTION TAKEN BY HOLDERS.    Whenever in
this Indenture it is provided that the Holders of a specified percentage or a majority in aggregate principal amount of the Notes may take any action (including the making of any demand or request,
the giving of any notice, consent or waiver or the taking of any other action), such action may be taken by (i) any instrument or any number of instruments of similar tenor executed in person
or by agent or proxy appointed in writing, (ii) vote of the Holders of Notes at a meeting duly called and held in accordance with the provisions of Article Nine, or (iii) a combination
of such instrument or instruments and such vote, and the fact that at the time of taking any such action the Holders of such specified percentage or majority have joined therein may be evidenced by
(a) such instrument or instruments, (b) the record of such vote, or (c) a combination of such instrument or instruments and any such record, and except as herein otherwise
expressly provided, such action shall become effective when such instrument or instruments and/or such record are delivered to the Trustee, and where expressly required, to the Company. 

        SECTION 8.02    PROOF OF EXECUTION OF INSTRUMENTS AND OF HOLDING OF NOTES.
    Subject to the provisions of Sections 7.01, 7.02 and 9.05 hereof and Section 315 of the Trust Indenture Act, proof of the execution of any instrument by a Holder or his agent or
proxy and proof of the holding by any Person of any of the Notes shall be sufficient if made in the following manner: 

        The
fact and date of the execution by any such Person of any instrument may be proved by the certificate of any notary public or other officer authorized to take acknowledgments of deeds
to be recorded in any State within the United States, that the Person executing such instrument acknowledged to him the execution thereof, or by an affidavit of a witness to such execution sworn to
before any such notary or other such officer. Where such execution is by an officer of a corporation or association or a member of a partnership on behalf of such corporation, association or
partnership, such certificate or affidavit shall also constitute sufficient proof of his authority. The fact and date of the execution of any such instrument may also be proved in any other manner
which the Trustee may deem sufficient. 

69

 

        The
ownership of Notes may be proved by the Note Registrar or by a certificate of the Note Registrar. 

        If
the Company shall solicit from the Holders of Notes any request, demand, authorization, direction, notice, consent, waiver or other act, the Company may, at its option, by Board
Resolution, fix in advance a record date for the determination of Holders of Notes entitled to give such request, demand, authorization, direction, notice, consent, waiver or other act, but the
Company shall have no obligation to do so. Any such record date shall be fixed at the Company's discretion in accordance with Section 316(c) of the Trust Indenture Act. If such a record date is
fixed, such request, demand, authorization, direction, notice, consent, waiver or other act may be sought or given before or after the record date, but only the Holders of Notes of record at the close
of business on such record date shall be deemed to be the Holders of Notes for the purpose of determining whether Holders of the requisite proportion of Notes Outstanding have authorized or agreed or
consented to such request, demand, authorization, direction, notice, consent, waiver or other act, and for that purpose the Notes Outstanding shall be computed as of such record date;  provided that no
such authorization, agreement or consent by the Holders on such record date shall be deemed effective unless it shall become effective
pursuant to the provisions of this Indenture not later than 180 days after the record date. 

        The
Trustee may require such additional proof, if any, of any matter referred to in this Section 8.02 as it shall deem necessary. 

        The
record of any Holders' meeting shall be proved as provided in Section 9.06. 

        SECTION 8.03    RIGHT OF REVOCATION OF ACTION TAKEN.    At any time
prior to (but not after) the earlier of (a) the evidencing to the Trustee, as provided in Section 8.01, of the taking of any action by the Holders of the percentage in aggregate
principal amount of the Notes specified in this Indenture in connection with such action, and (b) such earlier date as shall be established by the Company and notice of which shall have been
provided to the Holders, any Holder of a Note the serial number of which is shown by the evidence to be included in the Notes the Holders of which have consented to such action may, by filing written
notice with the Trustee at its principal office and upon proof of
holding as provided in Section 8.02, revoke such action so far as concerns such Note. Except as aforesaid, any such action taken by the Holder of any Note shall be conclusive and binding upon
such Holder and upon all future holders and owners of such Note, and of any Note issued in exchange therefor or in place thereof, irrespective of whether or not any notation in regard thereto is made
upon such Note or any Note issued in exchange therefor or in place thereof. Any action taken by the Holders of the percentage in aggregate principal amount of the Notes specified in this Indenture in
connection with such action shall be conclusively binding upon the Company, the Trustee and the Holders of all the Notes. 

 
 

ARTICLE NINE
  HOLDERS' MEETINGS    
    

        SECTION 9.01    PURPOSES FOR WHICH HOLDERS' MEETINGS MAY BE
CALLED.    A meeting of Holders may be called at any time and from time to time pursuant to this Article Nine for any of the following purposes: 

        (a)   to
give any notice to the Company or to the Trustee, or to give any directions to the Trustee, or to waive or to consent to the waiving of any default hereunder and its
consequences, or to take any other action authorized to be taken by Holders pursuant to Article Six; 

        (b)   to
remove the Trustee and appoint a successor trustee pursuant to Article Seven; 

        (c)   to
consent to the execution of an indenture or indentures supplemental hereto or an amendment or amendments of the Collateral Documents pursuant to Section 10.02;
or 

70

  

        (d)   to take any other action authorized to be taken by or on behalf of the Holders of any specified aggregate principal amount of the Notes under any other provision of this
Indenture or under applicable law. 

        SECTION 9.02    CALL OF MEETINGS BY TRUSTEE.    The Trustee may at any
time call a meeting of Holders to be held at such time and at such place in The City of New York as the Trustee shall determine. Notice of every meeting of Holders, setting forth the time and the
place of such meeting and in general terms the action proposed to be taken at such meeting, shall be given by the Trustee, in the manner provided in Section 1.05, not less than 20 nor more than
180 days prior to the date fixed for the meeting, to the Holders of the Notes. 

        SECTION 9.03    COMPANY AND HOLDERS MAY CALL MEETING.    In case the
Company, pursuant to a resolution of its Board of Directors, or the Holders of at least 10% in aggregate principal amount of the Notes then Outstanding, shall have requested the Trustee to call a
meeting of Holders, by written request setting forth in general terms the action proposed to be taken at the meeting, and the Trustee shall not have made the mailing of the notice of such meeting
within 20 days after receipt of such request, then the Company or the Holders of such Notes in the amount above specified may determine the time and the place in The City of New York for such
meeting and may call such meeting to take any action authorized in Section 9.01, by giving notice thereof as provided in Section 9.02. 

        SECTION 9.04    PERSONS ENTITLED TO VOTE AT MEETING.    To be entitled
to vote at any meeting of Holders a Person shall, as of the opening of business on the date of such meeting, be (a) a Holder of one or more Notes or (b) a Person appointed by an
instrument in writing as proxy for the Holder or Holders of such Notes by a Holder of one or more such Notes. The only Persons who shall be entitled to be present or to speak at any meeting of Holders
shall be the Persons entitled to vote at such meeting and their counsel and any representatives of the Trustee and its counsel and any representatives of the Company and its counsel. 

        SECTION 9.05    DETERMINATION OF VOTING RIGHTS; CONDUCT AND ADJOURNMENT OF
MEETING.    Notwithstanding any other provisions of this Indenture, the Trustee may make such reasonable regulations as it may deem advisable for any meeting of
Holders, in regard to proof of the holding of Notes and of the appointment of proxies, and in regard to the appointment and duties of inspectors of votes, the submission and examination of proxies,
certificates and other evidence of the right to vote, and such other matters concerning the conduct of the meeting as it shall think fit. Such regulations may provide that written instruments
appointing proxies, regular on their face, may be presumed valid and genuine without the proof specified in Section 8.02 or other proof. Except as otherwise permitted or required by any such
regulations, the holding of Notes shall be proved in the manner specified in Section 8.02 and the appointment of any proxy shall be proved in the manner
specified in Section 8.02 or by having the signature of the Person executing the proxy witnessed or guaranteed by any bank, banker, trust company or firm satisfactory to the Trustee. 

        The
Trustee shall, by an instrument in writing, appoint a temporary chairman of the meeting, unless the meeting shall have been called by the Company or by Holders as provided in
Section 9.03, in which case the Company or the Holders calling the meeting, as the case may be, shall in like manner appoint a temporary chairman. A permanent chairman and a permanent secretary
of the meeting shall be elected by vote of the Holders of at least a majority in principal amount of the Notes represented at the meeting and entitled to vote. 

        At
any meeting each Holder of a Note or proxy shall be entitled to one vote for each $1 principal amount of Notes held or represented by such Holder; provided,
however, that no vote shall be cast or counted at any meeting in respect of any Note challenged as not Outstanding and ruled by the chairman of the meeting to be not
Outstanding. The chairman of the meeting shall have no right to vote other than by virtue of Notes held by such chairman or instruments in writing as aforesaid duly designating such chairman as the
Person to vote on behalf of other Holders. Any meeting of Holders 

71

 

duly
called pursuant to Section 9.02 or 9.03 may be adjourned from time to time, and the meeting may be held as so adjourned without further notice. 

        At
any meeting, the presence of Persons holding or representing Notes in an aggregate principal amount sufficient to take action upon the business for the transaction of which such
meeting was called shall be necessary to constitute a quorum; but, if less than a quorum be present, the Persons holding or representing at least a majority of the Notes represented at the meeting may
adjourn such meeting with the same effect, for all intents and purposes, as though a quorum had been present. 

        SECTION 9.06    COUNTING VOTES AND RECORDING ACTION OF MEETING.    The
vote upon any resolution submitted to any meeting of Holders shall be by written ballots on which shall be subscribed the signatures of the Holders of Notes or of their representatives by proxy and
the serial numbers and principal amounts of the Notes held or represented by them. The permanent chairman of the meeting shall appoint two inspectors of votes who shall count all votes cast at the
meeting for or against any resolution and who shall make and file with the secretary of the meeting their verified written reports in duplicate of all votes cast at the meeting. A record in duplicate
of the proceedings of each meeting of Holders shall be prepared by the secretary of the meeting and there shall be attached to said record the original reports of the inspectors of votes on any vote
by ballot taken thereat and affidavits by one or more persons having knowledge of the facts setting forth a copy of the notice of the meeting and showing that said notice was given as provided in
Section 9.02. The record shall show the serial numbers of the Notes voting in favor of or against each resolution. The record shall be signed and verified by the affidavits of the permanent
chairman and secretary of the meeting and one of the duplicates shall be delivered to the Company and the other to the Trustee to be preserved by the Trustee, the latter to have attached thereto the
ballots voted at the meeting. 

        Any
record so signed and verified shall, absent manifest error, be conclusive evidence of the matters therein stated. 

 
 

ARTICLE TEN
  SUPPLEMENTAL INDENTURES AND AMENDMENT OF
  COLLATERAL DOCUMENTS    
    

        SECTION 10.01    SUPPLEMENTAL INDENTURES WITHOUT CONSENT OF
HOLDERS.    Without the consent of any Holders, the Company, when authorized by a Board Resolution, the Guarantors and the Trustee, at any time and from time to time,
may enter into one or more indentures supplemental hereto or one or more amendments of the Collateral Documents, in form satisfactory to the Trustee, for any of the following purposes: 

        (1)   to
evidence the succession of another Person to the Company or the Guarantors, and the assumption by any such successor of the covenants of the Company or the Guarantors
herein and in the Notes and the Collateral Documents; or 

        (2)   to
add to the covenants of the Company or the Guarantors for the benefit of the Holders, or to surrender any right or power herein conferred upon the Company or the
Guarantors; or 

        (3)   to
cure any ambiguity, to correct or supplement any provision herein or in the Collateral Documents which may be inconsistent with any other provision herein, or to make
any other provisions with respect to matters or questions arising under this Indenture or the Collateral Documents, provided such action pursuant to
this clause (3) shall not adversely affect the interests of the Holders; or 

        (4)   to
comply with any requirements of the Commission in order to effect or maintain the qualification of this Indenture under the Trust Indenture Act; or 

        (5)   to
evidence and provide for the acceptance and appointment hereunder of a successor Trustee with respect to the Notes; or 

72

 

        (6)   to
mortgage, pledge, hypothecate or grant a Lien in favor of the Collateral Agent for the benefit of Trustee and the Holders of the Notes as additional security for the
payment of principal of and interest and Additional Amounts, if any, on the Notes by the Company or on the Guarantees by the Guarantors under this Indenture in any property or assets, including any
which are required to be mortgaged, pledged or hypothecated, or in which a Lien is required to be granted to the Collateral Agent, pursuant to this Indenture or the Collateral Documents; or 

        (7)   to
release, or to evidence the release of, Collateral as expressly permitted by Section 15.03 of this Indenture and by the Collateral Documents; or 

        (8)   to
add Guarantees with respect to the Notes, to secure the Notes or to release Guarantors from Guarantees as provided by the terms of this Indenture; or 

        (9)   to
add additional Events of Default. 

        Upon
the request of the Company accompanied by a Board Resolution authorizing the execution of any such amended or supplemental indenture or amendment of any of the Collateral Documents,
and upon receipt by the Trustee of the documents described in Sections 7.02 and 7.07 hereof, the Trustee shall join with the Company and the Guarantors in the execution of any amended or supplemental
indenture or amendment of any of the Collateral Documents authorized or permitted by the terms of this Indenture and to make any further appropriate agreements and stipulations that may be therein
contained, but the Trustee shall not be obligated to enter into such amended or supplemental indenture or amendment of any of the Collateral Documents that affects its own rights, duties or immunities
under this Indenture or otherwise. 

        SECTION 10.02    SUPPLEMENTAL INDENTURES WITH CONSENT OF HOLDERS.    

        (a)   With
the consent of the Holders of not less than a majority in aggregate principal amount of the Outstanding Notes, by act of said Holders delivered to the Company and
the Trustee, the Company, when authorized by a Board Resolution, the Guarantors and the Trustee may enter into an indenture or indentures supplemental hereto or one or more amendments or supplements
to the Collateral Documents for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Indenture or the Collateral Documents or of modifying in
any manner the rights of the Holders under this Indenture or the Collateral Documents; provided, however, that no such supplemental indenture or
amendment or supplement to the Collateral Documents shall, without the consent of the Holder of each Outstanding Note affected thereby, 

        (1)   change
the Stated Maturity of the principal of, or any installment of interest or Additional Amounts on, any Note, or reduce the principal amount thereof or the rate of
interest thereon or any premium payable upon the redemption thereof, or change the place of payment where, or the coin or currency in which, any Note or any premium or the interest or Additional
Amounts thereon is payable, impair the right to institute suit for the enforcement of any such payment on or after the Stated Maturity thereof (or, in the case of redemption, on or after the
Redemption Date or, in the case of an Offer or an Excess Proceeds Offer which has been made, on or after the applicable Repurchase Date or Proceeds Offer Repurchase Date), or 

        (2)   reduce
the percentage in principal amount of the Outstanding Notes, the consent of whose Holders is required for any such supplemental indenture or amendment to the
Collateral Documents, or the consent of whose Holders is required for any waiver (of compliance with certain provisions of this Indenture or the Collateral Documents or certain defaults hereunder or
thereunder and their consequences) provided for in this Indenture or the Collateral Documents, or 

        (3)   modify
any of the provisions of this Section, Section 6.09 or Section 6.14, except to increase any such percentage or to provide that certain other
provisions of this Indenture or the Collateral 

73

 

Documents
cannot be modified or waived without the consent of the Holder of each Outstanding Note affected thereby, or 

        (4)   make
any change in the ranking of the Notes or the Guarantors that would adversely affect the Holders of the Notes. 

        (b)   Notwithstanding
the foregoing, except as expressly set forth in the Collateral Documents, without the consent of the Holders of not less than 662/3% in
aggregate principal amount of the Outstanding Notes, the Company and the Guarantors may not enter into an indenture or indentures supplemental hereto or one or more amendments or supplements to the
Collateral Documents to: 

        (1)   release
(other than as expressly permitted by Section 15.03 and the Collateral Documents), or create any additional Lien in favor of any Person other than the
Collateral Agent, the Holders or the Trustee in, the Collateral, or 

        (2)   modify
any of the provisions of Section 5.13 or of this Section 10.02(b). 

        (c)   It
shall not be necessary for any act of Holders under this Section to approve the particular form of any proposed supplemental indenture, but it shall be sufficient if
such act shall approve the substance thereof. 

        SECTION 10.03    EXECUTION OF SUPPLEMENTAL INDENTURES.    In
executing, or accepting the additional trusts created by, any supplemental indenture permitted by this Article or the modifications thereby of the trusts created by this Indenture, the Trustee shall
be entitled to receive, and (subject to Section 7.01) shall be fully protected in relying upon, an Opinion of Counsel stating that the execution of such supplemental indenture is authorized or
permitted by this Indenture. The Trustee may, but shall not be obligated to, enter into any such supplemental indenture which affects the Trustee's own rights, duties or immunities under this
Indenture or otherwise. 

        SECTION 10.04    EFFECT OF SUPPLEMENTAL INDENTURES.    Upon the
execution of any supplemental indenture under this Article, this Indenture shall be modified in accordance therewith, and such supplemental indenture shall form a part of this Indenture for all
purposes, and every Holder of Notes theretofore or thereafter authenticated and delivered hereunder shall be bound thereby. 

        SECTION 10.05    CONFORMITY WITH TRUST INDENTURE ACT.    Every
supplemental indenture executed pursuant to this Article shall conform to the requirements of the Trust Indenture Act as then in effect. 

        SECTION 10.06    REFERENCE IN NOTES TO SUPPLEMENTAL
INDENTURES.    Notes authenticated and delivered after the execution of any supplemental indenture pursuant to this Article may, and shall if required by the Trustee,
bear a notation in form approved by the Trustee and the Company as to any matter provided for in such supplemental indenture. If the Company shall so determine, new Notes so modified as to conform, in
the opinion of the Trustee and the Company, to any such supplemental indenture may be prepared and executed by the Company and authenticated and delivered by the Trustee in exchange for Outstanding
Notes. 

        Failure
to make the appropriate notation or issue a new Note shall not affect the validity and effect of such amendment, supplement or waiver. 

 
 

ARTICLE ELEVEN
  SUCCESSOR CORPORATION    
    

        SECTION 11.01    WHEN COMPANY MAY MERGE, ETC.    The Company shall not
consolidate with, merge with or into, or transfer, directly or indirectly by lease, assignment, sale or otherwise, including, without limitation, as a result of the merger or consolidation of a
Restricted Subsidiary with any other Person (collectively, a "Transfer"), all or substantially all of its assets in one transaction or a 

74

 

series
of related transactions to, any Person or group of affiliated Persons or permit any of its Restricted Subsidiaries to enter into any such transaction or transactions if such transaction or
transactions in the aggregate would result in a transfer of all or substantially all of the assets of the Company and its Restricted Subsidiaries on a consolidated basis, unless: 

        (1)   either
the Company shall be the continuing Person, or the Person formed by such consolidation or into which the Company is merged or to which all or substantially all of
the assets of the Company are Transferred or to which all or substantially all of the assets of the Company and its Restricted Subsidiaries are Transferred (the "Surviving
Entity") shall be a Person organized and existing under the laws of the United States of America, any State thereof or the District of Columbia or the United Mexican States and
shall expressly assume, by an indenture supplemental hereto, executed and delivered to the Trustee, in form satisfactory to the Trustee, all the obligations of the Company under the Notes and this
Indenture and the Collateral Documents; provided, that a corporation at all times shall be a co-obligor together with the continuing Person
or transferee if the continuing Person or transferee is itself not a corporation; 

        (2)   immediately
before and immediately after giving effect to such transaction no Default or Event of Default exists; 

        (3)   immediately
after giving effect to such transaction, the Consolidated Net Worth of the Company and its Restricted Subsidiaries or the Surviving Entity is equal to or
greater than the Consolidated Net Worth of the Company and its Restricted Subsidiaries immediately prior to the transaction; and 

        (4)   the
Company has delivered to the Trustee an Officers' Certificate (attaching the arithmetic computations to demonstrate compliance with paragraph (3)) and an
Opinion of Counsel, each stating that such consolidation, merger, sale, assignment, transfer or lease and such supplemental indenture comply with this Section 11.01 and that all conditions
precedent herein provided for relating to such transactions have been complied with. 

        Notwithstanding
anything to the contrary contained in this Section 11.01, this Article Eleven shall not apply to any transfer that is a Qualifying Disposition. 

        SECTION 11.02    SUCCESSOR CORPORATION.    Upon any consolidation or
merger or any Transfer of all or substantially all of the assets of the Company in accordance with Section 11.01, except as otherwise provided herein, the successor corporation formed by such
consolidation or into which the Company is merged or to which such Transfer is made, shall succeed to, and be substituted for, and may exercise every right and power of, the Company under this
Indenture with the same effect as if such successor corporation had been named as the Company herein. 

75

  

 
 

ARTICLE TWELVE
  SATISFACTION AND DISCHARGE OF INDENTURE; UNCLAIMED MONEYS    
    

        SECTION 12.01    TERMINATION OF COMPANY'S OBLIGATIONS.    The Company
may terminate all of its and the Guarantors' obligations under the Notes, this Indenture and the Collateral Documents, except those obligations referred to below, if: 

        (a)   all
Notes previously authenticated and delivered (other than destroyed, lost or stolen Notes which have been replaced or paid) have been delivered to the Trustee for
cancellation and the Company has paid all sums payable by it hereunder; or 

        (b)   either
(i) the Notes mature within one year or all of them are to be called for redemption within one year under arrangements reasonably satisfactory to the
Trustee for giving the notice of redemption or (ii) if the Notes do not mature or are not to be called for redemption in accordance with clause (i) hereof, the Company shall have
delivered to the Trustee either (A) a ruling directed to the Trustee received from the Internal Revenue Service to the effect that the Holders of the Notes will not recognize income, gain or
loss for Federal income tax purposes as a result of the Company's exercise of its option under this Section 12.01(b)(ii) and will be subject to Federal income tax on the same amount and
in the same manner and at the same times as would have been the case if such option had not been exercised or (B) an Opinion of Counsel from nationally recognized United States counsel, to the
same effect as the ruling described in clause (A) above with no material qualifications and an Opinion of Counsel in the United Mexican States reasonably acceptable to the Trustee confirming
that Holders of the Notes will not recognize income, gain or loss for Mexican taxes purposes as a result of such legal defeasance and will be subject to Mexican taxes (including withholding taxes) on
the same amounts, in the same manner and at the same times as would have been the case if such legal defeasance had not occurred, in the case of either clause (i) or (ii); and 

        (1)   subject
to applicable stock exchange requirements, if any, the Company irrevocably deposits with the Trustee under the terms of an irrevocable trust agreement in form
and substance satisfactory to the Trustee, as trust funds in trust solely for the benefit of the Holders for that purpose, money or U.S. Government Obligations, maturing as to principal and interest
in such amounts and at such times as are sufficient (in the opinion of a nationally recognized firm of independent certified public accountants expressed in a written certification thereof delivered
to the Trustee), without consideration
of any reinvestment of such interest on such U.S. Government Obligations, to pay principal of and interest and Additional Amounts on the Outstanding Notes to maturity or redemption, as the case may
be, and to pay all other sums payable by it hereunder, including Additional Amounts, if any, provided that the Trustee shall have been irrevocably instructed to apply such trust funds to the payment
of principal and interest and Additional Amounts, if any, on the Outstanding Notes; 

        (2)   no
Default or Event of Default with respect to this Indenture, the Collateral Documents or the Notes shall have occurred and be continuing on the date of such deposit or
shall occur as a result of such deposit or shall occur on or before 91 days after the date of such deposit and such deposit will not result in a breach or violation of, or constitute a default
under, any other agreement or instrument to which the Company is a party or by which it is bound; 

        (3)   the
Company shall have paid or caused to be paid all sums then payable by the Company hereunder and under the Notes; 

        (4)   such
deposit shall not cause the Trustee to have a conflicting interest as defined in and for purposes of the Trust Indenture Act; 

76

 

        (5)   the
Company has delivered to the Trustee an Opinion of Counsel from nationally recognized United States counsel, with no material qualifications, stating that
(A) the deposit shall not result in the Company, the Trustee or the trust becoming or being deemed to be an "investment company" under the Investment Company Act of 1940, as amended, and
(B) upon making the deposit, a valid trust is created at the time of such deposit and the Holders of the Notes will have the sole beneficial ownership interest under applicable law in the money
or U.S. Government Obligations so deposited in such trust, except that the Opinion of Counsel referred to in this clause (B) may contain a qualification that in the event that a court of
competent jurisdiction were to determine that the trust funds remained property of the Company after such deposit, the Holders of the Notes will have a nonavoidable first priority perfected security
interest under applicable law in the money or U.S. Government Obligations so deposited, which security interest will not be subject to any prior rights of holders of any other Indebtedness; and 

        (6)   the
Company shall take any and all acts necessary to create and perfect, in favor of the Holders of the Notes, a first priority security interest in the money or U.S.
Government Obligations so deposited and shall take any other action and execute and deliver any other documents that may reasonably be requested by the Trustee to effectuate such security interest,
and shall do all of the above at such appropriate time so that such security interest shall attach to the deposit at the time such deposit is made; 

and
in either case of (a) or (b) the Company has delivered to the Trustee an Officers' Certificate and an Opinion of Counsel each stating that all conditions precedent provided for
herein relating to the satisfaction and discharge of this Indenture have been complied with. 

        It
is the intention of the parties hereto that a valid trust for the benefit of the Holders of the Notes be created at the time that the Company makes the deposit pursuant to
Section 12.01(b)(1). The security interest in such deposit that is granted herein to the Holders of the Notes is intended solely as protection for the Holders of the Notes in the event that a
court of competent jurisdiction were to determine either that (i) such trust had not been validly created or (ii) such trust is not enforceable. 

        Notwithstanding
the foregoing clause (b), prior to the end of the 91-day period referred to in clause (b)(2) above, none of the Company's obligations under this
Indenture shall be discharged, and subsequent to the end of such 91-day period the Company's obligations in Sections 3.01, 3.02, 3.03, 3.04, 3.05, 3.06, 3.07, 3.08, 3.09, 5.01, 5.02, 5.04,
5.11, 7.06, 7.09, 7.10, 12.02, 12.03 and 12.04 shall survive until the Notes are no longer Outstanding. Thereafter, only the Company's obligations in Sections 7.06, 12.03 and 12.04 shall survive. If
and when a ruling from the Internal Revenue Service or Opinion of Counsel referred to in clause (b)(ii) above is able to be provided specifically without regard to, and not in reliance
upon, the continuance of the Company's obligations under the Notes and Section 5.01, then the Company's obligations under the Notes and Sections 5.01 and 5.02 shall cease upon delivery to the
Trustee of such ruling or opinion and compliance with the other conditions precedent provided for herein relating to the satisfaction and discharge of this Indenture. 

        After
a deposit and delivery of an Officers' Certificate and an Opinion of Counsel and compliance with the other conditions precedent provided for herein relating to the satisfaction and
discharge of this Indenture, the Trustee upon request shall acknowledge in writing the satisfaction and discharge of the Company's obligations under this Indenture except for those surviving
obligations specified above. 

        "U.S. Government Obligations" means non-callable, direct obligations of the United States of America for the payment of which
the full faith and credit of the United States of America is pledged. 

        SECTION 12.02    APPLICATION OF TRUST MONEY.    The Trustee shall hold
in trust money or U.S. Government Obligations deposited with it pursuant to Section 12.01. It shall apply the deposited 

77

 

money
and the money from U.S. Government Obligations through the Paying Agent and in accordance with this Indenture to the payment of principal of and interest and Additional Amounts on the Notes. 

        SECTION 12.03    REPAYMENT TO COMPANY.    Subject to
Section 12.02 the Trustee and the Paying Agent shall promptly pay to the Company upon written request any excess money or Notes held by them at any time and they shall thereupon be relieved
from all liability with respect to such money. 

        The
Trustee and the Paying Agent shall pay to the Company upon written request any money held by them for the payment of principal or interest or Additional Amounts that remains
unclaimed for two years; provided that the Company shall have first caused notice of such payment to be mailed to each Holder entitled thereto no less
than 30 days prior to such repayment. After payment to the Company, Holders entitled to the money must look to the Company for payment as general creditors unless an applicable abandoned
property law designates another Person, and all liability of the Trustee and the Paying Agent with respect to such money shall cease. 

        SECTION 12.04    REINSTATEMENT.    If the Trustee or the Paying Agent
is unable to apply any money in accordance with Section 12.02 by reason of any legal proceeding or by reason of any order or judgment of any court or governmental authority enjoining,
restraining or otherwise prohibiting such application, the Company's obligations under this Indenture and the Notes shall be revived and reinstated as though no deposit had occurred pursuant to
Section 12.01 until such time as the Trustee or the Paying Agent is permitted to apply all such money in accordance with Section 12.02;  provided that if the Company has made any payment of
interest on or Additional Amounts or principal of any Note because of the reinstatement of its
obligations, the Company shall be subrogated to the rights of the Holders of such Notes to receive such payment from the money held by the Trustee or the Paying Agent. 

 
 

ARTICLE THIRTEEN
  IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS    
    

        SECTION 13.01    PERSONAL IMMUNITY FROM LIABILITY OF INCORPORATORS, STOCKHOLDERS,
ETC.    No recourse under or upon any obligation, covenant or agreement of this Indenture or any indenture supplemental hereto, or of any Note, or for any claim based
thereon or otherwise in respect thereof, shall be had against any incorporator or against any past, present or future stockholder, officer, director, employee or agent, as such, of the Company or the
Trustee or any Paying Agent or Authenticating Agent or of any successor thereto, either directly or through the Company or the Trustee or any Paying Agent or Authenticating Agent or any successor
thereto, whether by virtue of any constitution, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise, all such liability and any and all such claims being hereby
expressly waived and released as a condition of, and as a consideration for, the execution of this Indenture and issue of the Notes. 

 
 

ARTICLE FOURTEEN
  GUARANTEE    
    

        SECTION 14.01    GUARANTEE.    By its execution hereof, the Guarantors
acknowledge and agree that they receive substantial benefits from the Company and that they are providing their Guarantee for good and valuable consideration, including, without limitation, such
substantial benefits and services. Accordingly, subject to the provisions of this Article Fourteen, each of the Guarantors hereby jointly and severally unconditionally guarantees on a senior secured
basis to each Holder of a Note authenticated and delivered by the Trustee and its successors and assigns that: (i) the principal of, and premium, Additional Amounts and interest (including,
without limitation, any interest that accrued after, or would accrue but for, the commencement of a proceeding of the type described in 

78

 

Section 6.01(7)
or (8)) on the Notes shall be duly and punctually paid in full when due, whether at maturity, by acceleration, call for redemption, upon an Offer, upon an Excess Proceeds Offer
or otherwise, and interest on overdue principal, and premium, if any, Additional Amounts and (to the extent permitted by law) interest on any interest, if any, on the Notes, Additional Amounts, if
any, and all other obligations (including fees, expenses or other) of the Company to the Holders, or the Trustee or the Collateral Agent hereunder, under the Notes and the Collateral Documents and the
Guarantors under the Notes, this Indenture, the Collateral Documents and the Guarantees, whether now or hereafter existing, shall be promptly paid in full or performed, all in accordance with the
terms hereof and thereof; and (ii) in case of any extension of time of payment or renewal of any Notes or any of such other obligations, the same shall be promptly paid in full when due or
performed in accordance with the terms of the extension or renewal, whether at stated maturity, by acceleration, call for redemption, upon an Offer, upon an Excess Proceeds Offer or otherwise,
subject, however, in the case of clauses (i) and (ii) above, to the limitations set forth in Section 14.05 (collectively, the "Guarantee
Obligations"). An Event of Default under this Indenture or the Notes shall constitute an event of default under this Guarantee, and shall entitle the Trustee or the Holders of
Notes to accelerate the obligations of the Guarantors hereunder in the same manner and to the same extent as the Guarantee Obligations of the Company. Each Guarantee is intended to be superior to or  pari passu in right of payment with all Indebtedness of the respective Guarantor and each Guarantor's obligations under this Indenture, the Notes and
the Collateral Documents are independent of any obligation of the Company or any other Guarantor under this Indenture, the Notes and the Collateral Documents. Each Guarantor further agrees that the
obligations under this Indenture, the Notes and the Collateral Documents may be extended or renewed, in whole or in part, without notice or further assent from such Guarantor, and that each Guarantor
will remain bound under this Article Fourteen notwithstanding any extension or renewal of any obligation under this Indenture, the Notes and the Collateral Documents. 

        Subject
to the provisions of this Article Fourteen, the Guarantors hereby agree that their Guarantee hereunder shall be unconditional, irrespective of the validity, regularity or
enforceability of the Notes, this Indenture or the Collateral Documents, the absence of any action to enforce the same, any waiver or consent by any Holder of the Notes with respect to any thereof,
the entry of any judgment against the Company, any action to enforce the same or any other circumstance which might otherwise constitute a legal or equitable discharge or defense of the Guarantors.
The Guarantors hereby expressly waive and relinquish: (a) any right to require the Trustee, the Holders or the Company (each, a "Benefited
Party") to proceed against the Company or any other Person or to proceed against or exhaust any security held by a Benefited Party at any time or to pursue any other remedy in
any secured party's power before proceeding against the Guarantors; (b) any defense that may arise by reason of the incapacity, lack of authority, death or disability of any other Person or
Persons or the failure of a Benefited Party to file or enforce a claim against the estate (in administration, bankruptcy or any other proceeding) of any other Person or Persons; (c) demand,
protest and notice of any kind (except as expressly required by this Indenture), including but not limited to notice of the existence, creation or incurring of any new or additional Indebtedness or
obligation or of any action or non-action on the part of the Guarantors, the Company, any Benefited Party, any creditor of the Guarantors or the Company or on the part of any other Person
whomsoever in connection with any obligations the performance of which are hereby guaranteed; (d) any defense based upon an election of remedies by a Benefited Party, including but not limited
to an election to proceed against the Guarantors for reimbursement; (e) any defense based upon any statute or rule of law which provides that the obligation of a surety must be neither larger
in amount nor in other respects more burdensome than that of the principal; and (f) the benefits of orden excusion y division and of prior
judgment, levy, execution and other rights provided for in Articles 2814, 2815, 2817, 2818, 2820, 2821, 2823, 2827 and 2836 of the Civil Code of the Federal District of Mexico, and the corresponding
articles of the other states of Mexico, which articles are not reproduced herein as a result of the express acknowledgment 

79

 

that
the contents of said Articles are known to each Guarantor. Therefore, each Guarantor hereby irrevocably and expressly waives its rights under the benefits of, Articles 2846 and 2847 of the Civil
Code for the Federal District of Mexico. Each Guarantor also hereby irrevocably and expressly waives any requirement of judicial demand for payment, whether under Article 2848 or 2849 of the
Civil Code for the Federal District of Mexico or otherwise. All such Articles are not reproduced herein as a result of the express acknowledgment of each Guarantor that the contents of said Articles
are known to it. The Guarantee shall be discharged upon the payment in full of all Guarantee Obligations, including the principal, premium, if any, and interest and Additional Amounts, if any, on the
Notes and all other costs provided for under this Indenture or as provided in Article Fourteen, and after such termination is not reinstated except as set forth in the second succeeding paragraph.
Each Guarantor waives notice of any default under the Notes or the obligations under this Indenture, the Notes and the Collateral Documents. The obligations of each Guarantor hereunder shall not be
affected by (i) the failure of any Holder, Trustee or the Collateral Agent to assert any claim or demand or to enforce any right or remedy against the Company or any other Person under this
Indenture, the Notes, the Collateral Documents or any other agreement or otherwise; (ii) any extension or renewal of any thereof; (iii) any rescission, waiver, amendment or modification
of any of the terms or provisions of this Indenture, the Notes, the Collateral Documents or any other agreement; (iv) the release of any security held by any Holder, the Collateral Agent or the
Trustee for the obligations under this Indenture, the Notes and the Collateral Documents or any of them; (v) the failure of any Holder, the Trustee or the Collateral Agent to exercise any right
or remedy against any guarantor of the obligations under this Indenture, the Notes and the Collateral Documents; or (vi) any change in the ownership of such Guarantor. 

        Each
Guarantor further agrees that its Guarantee herein constitutes a guarantee of payment, performance and compliance when due (and not a guarantee of collection) and waives any right
to require that any resort be had by any Holder or the Trustee to any security held for payment of the obligations under this Indenture, the Notes and the Collateral Documents. 

        If
any Holder or the Trustee is required by any court or otherwise to return to either the Company or the Guarantors, or any trustee or similar official acting in relation to either the
Company or the Guarantors, any amount paid by the Company or the Guarantors to the Trustee or such Holder, the Guarantee, to the extent theretofore discharged, shall be reinstated in full force and
effect. The Guarantors agree that they shall not be entitled to any right of subrogation in relation to the Holders in respect of any Guarantee Obligations hereby until payment in full of all such
obligations guaranteed hereby. The Guarantors agree that, as between themselves, on the one hand, and the Holders of Notes and the Trustee, on the other hand, (x) the maturity of the
obligations guaranteed hereby may be accelerated as provided in Article Six hereof for the purposes hereof, notwithstanding any stay, injunction or other prohibition preventing such acceleration in
respect of the Guarantee Obligations, and (y) in the event of any acceleration of such obligations as provided in Article Six hereof, such Guarantee Obligations (whether or not due and payable)
shall forthwith become due and payable by the Guarantors for the purpose of the Guarantee. 

        Each
Guarantor agrees that it shall not be entitled to any right of subrogation, contribution, exoneration, indemnification or reimbursement in relation to the Holders in respect of any
Guarantee Obligations until payment in full of all Guarantee Obligations. If any amount shall be paid to such Guarantor in violation of the preceding sentence at any time prior to the later of the
payment in full of the Notes and all other amounts payable under this Indenture and under each Guarantee upon the Stated Maturity of the Notes, such amount shall be held in trust for the benefit of
the Holders and the Trustee and shall forthwith be paid to the Trustee to be credited and applied to the Notes and all other amounts payable under each Guarantee, whether matured or unmatured, in
accordance with the terms of this Indenture, or to be held as security for any obligations under this Indenture, the Notes and the Collateral Documents or other amounts payable under any Guarantee
thereafter arising. 

80

 

        Each
Guarantor further agrees that, as between it, on the one hand, and the Holders and the Trustee, on the other hand, (x) subject to this Article Fourteen, the maturity of the
Guarantee Obligations may be accelerated as provided in Article Six for the purposes of each Guarantee, notwithstanding any stay, injunction or other prohibition preventing such acceleration in
respect of the Guarantee Obligations, and (y) in the event of any acceleration of such Guarantee Obligations as provided in Article Six, such obligations (whether or not due and payable) shall,
forthwith become due and payable by the Guarantor for the purposes of each Guarantee. 

        A
Guarantor that makes a distribution or payment under its Guarantee shall be entitled to contribution from each other Guarantor in a pro rata amount based on the Adjusted Net Assets of
each such other
Guarantor for all payments, damages and expenses incurred by that Guarantor in discharging the Company's obligations with respect to the Notes and this Indenture or any other Guarantor with respect to
its Guarantee, so long as the exercise of such right does not impair the rights of the Holders of the Notes under the Guarantees. 

        Each
Guarantor also agrees to pay any and all costs and expenses (including reasonable attorneys' fees) incurred by the Trustee or any Holder in enforcing any rights under this
Section 14.01. 

        SECTION 14.02    LIMITATION ON GUARANTOR LIABILITY.    Each Guarantor,
and by its acceptance of Notes, each Holder, hereby confirms that it is the intention of all such parties that the Guarantee of such Guarantor not constitute a fraudulent transfer or conveyance for
purposes of Bankruptcy Law, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any similar federal, state or foreign law to the extent applicable to any Guarantee. To
effectuate the foregoing intention, the Trustee, the Holders and the Guarantors hereby irrevocably agree that the obligations of such Guarantor under its Guarantee and this Article Fourteen shall be
limited to the maximum amount as will, after giving effect to such maximum amount and all other contingent and fixed liabilities of such Guarantor that are relevant under such laws, and after giving
effect to any collections from, rights to receive contribution from or payments made by or on behalf of any other Guarantor in respect of the obligations of such other Guarantor under this Article
Fourteen, result in the obligations of such Guarantor under its Guarantee not constituting a fraudulent transfer or conveyance. Each Guarantor that makes a payment or distribution under its Guarantee
shall be entitled to a contribution from each other Guarantor in a pro rata amount based on the Adjusted Net Assets of each such other Guarantor. 

        SECTION 14.03    SUCCESSORS AND ASSIGNS.    This Article Fourteen
shall be binding upon each Guarantor and its successors and assigns and shall inure to the benefit of the successors and assigns of the Trustee and the Holders and, in the event of any transfer or
assignment of rights by any Holder or the Trustee, the rights and privileges conferred upon that party in this Indenture and in the Notes shall automatically extend to and be vested in such transferee
or assignee, all subject to the terms and conditions of this Indenture. 

        SECTION 14.04    NO WAIVER.    Neither a failure nor a delay on the
part of either the Trustee or the Holders in exercising any right, power or privilege under this Article Fourteen shall operate as a waiver thereof, nor shall a single or partial exercise thereof
preclude any other or further exercise of any right, power or privilege. The rights, remedies and benefits of the Trustee and the Holders herein expressly specified are cumulative and not exclusive of
any other rights, remedies or benefits which either may have under this Article Fourteen, at law, in equity, by statute or otherwise. 

        SECTION 14.05    EXECUTION AND DELIVERY OF GUARANTEE.    To evidence
the Guarantee set forth in Section 14.01 hereof, the Guarantors agree that a notation of the Guarantee substantially in the form included in Section 2.04 shall be endorsed on each Note
authenticated and delivered by the Trustee and that this Indenture shall be executed on behalf of the Guarantors by an officer of the Guarantors. 

81

 

        The
Guarantor agrees that the Guarantee set forth in this Article Fourteen shall remain in full force and effect and apply to all the Notes notwithstanding any failure to endorse on each
Note a notation of the Guarantees. 

        If
an officer whose facsimile signature is on a Note or a notation of Guarantee no longer holds that office at the time the Trustee authenticates the Note on which the Guarantee is
endorsed, the Guarantee shall be valid nevertheless. 

        The
delivery of any Note by the Trustee, after the authentication thereof hereunder, shall constitute due delivery of the Guarantee set forth in this Indenture on behalf of the
Guarantors. 

        In
the event that any Subsidiary subsequent to the date of this Indenture, is required to become a Guarantor by Section 5.14 hereof, the Company shall cause such Subsidiary to
execute supplemental indentures to this Indenture and Guarantees in accordance with Section 5.14 hereof and this Article Fourteen, to the extent applicable. 

        SECTION 14.06    GUARANTORS MAY CONSOLIDATE, ETC., ON CERTAIN
TERMS.    No Guarantor may consolidate with or merge with or into (whether or not such Guarantor is the surviving Person), another Person whether or not affiliated
with such Guarantor unless (i) subject to the provisions of the following Section, the Person formed by or surviving any such consolidation or merger (if other than such Guarantor) assumes all
the obligations of such Guarantor under the Notes, this Indenture and the Collateral Documents; and (ii) immediately after giving effect to such transaction, no Default or Event of Default
exists. 

        SECTION 14.07    RELEASES FOLLOWING SALE OF ASSETS OR CAPITAL
STOCK.    In the event of a sale or other disposition of all of the assets of any Guarantor (other than to the Company, another Guarantor or a Restricted Subsidiary),
by way of merger, consolidation or otherwise, or a sale or other disposition of all of the Capital Stock of any Guarantor (other than to, the Company, another Guarantor or a Restricted Subsidiary),
then such Guarantor (in the event of a sale or other disposition, by way of such a merger, consolidation or otherwise, of all of the Capital Stock of such Guarantor) or the entity acquiring the
property (in the event of a sale or other disposition of all of the assets of such Guarantor) will be released and relieved of any obligations under its Guarantee and any such acquiring
entity will not be required to assume any obligations of such Guarantor under the applicable Guarantee; provided that such sale or other disposition
complies with all applicable provisions of this Indenture including, without limitation, Section 5.13 and this Article Fourteen. 

        Any
Guarantor not released from its obligations under its Guarantee shall remain liable for the full amount of principal of and interest and Additional Amounts on the Notes and for the
other obligations of any Guarantor under this Indenture as provided in this Article Fourteen. 

        SECTION 14.08    APPLICATION OF CERTAIN TERMS AND PROVISIONS TO THE
GUARANTORS.    

        (a)   For
purposes of any provision of this Indenture that provides for the delivery by the Guarantors of an Officers' Certificate and/or an Opinion of Counsel, the
definitions of such terms in Section 1.01 shall apply to the Guarantors as if references therein to the Company were references to the Guarantors. 

        (b)   Any
request, direction, order or demand that by any provision of this Indenture is to be made by the Guarantors, shall be sufficient if evidenced as described in
Section 1.04 as if references therein to the Company were references to the Guarantors. 

        (c)   Any
notice or demand that by any provision of this Indenture is required or permitted to be given or served by the Trustee or by the holders of Notes to or on the
Guarantors may be given or served as described in Section 1.04 as if references therein to the Company were references to the Guarantors. 

82

 

        (d)   Upon
any demand, request or application by the Guarantors to the Trustee to take any action under this Indenture, the Guarantors shall furnish to the Trustee such
certificates and opinions as are required in Section 1.02 hereof as if all references therein to the Company were references to the Guarantors. 

 
 

ARTICLE FIFTEEN
  SECURITY    
    

        SECTION 15.01    COLLATERAL; COLLATERAL DOCUMENTS.    

        (a)   To
secure the due and punctual payment of principal of and interest, and Additional Amounts on the Notes by the Company when and as the same shall be due and payable
(whether on an Interest Payment Date, at Stated Maturity, by acceleration, call for redemption, upon an Offer or an Excess Proceeds Offer, or otherwise) and interest on the overdue principal of, and
premium, if any, Additional Amounts, if any, and (to the extent permitted by law) interest on unpaid interest, if any, on, the Notes and performance of all other obligations of the Company and the
Guarantors to the Holders of the Notes, the Trustee or the Collateral Agent under this Indenture, the Notes, the Guarantees and the Collateral Documents, according to the terms hereunder and
thereunder, on the Initial Issuance Date each of the Company and the Guarantors will pledge or cause to be pledged for the benefit of the Holders of the Notes, and will grant or cause to be granted to
the Collateral Agent for the benefit of the Trustee and equal and ratable benefit of the Holders of the Notes a first priority security interest in the assets and securities of the Company and the
Guarantors set forth in the Collateral Documents (all such assets and securities, together with (i) all other assets and securities acquired after the Initial Issuance Date, (ii) all
dividends or distributions paid or payable in respect of, or payments or rights to receive payment in respect of the purchase, redemption or other retirement or acquisition for value of, any
securities included therein, and (iii) all cash, instruments, securities and other property and proceeds thereof from time to time received, receivable or otherwise distributed or distributable
in respect of or in exchange for or in payment of any such assets or securities, but excluding, in any case, such of the foregoing that may be duly released pursuant to Section 15.03,
collectively, the "Collateral"). On the Initial Issuance Date, each of the Company and the Guarantors shall enter into the applicable Collateral
Documents to create the security interests with respect to the Collateral. The Trustee, the Guarantors and the Company hereby acknowledge and agree that the Collateral Agent holds the Collateral in
trust for the benefit of the Holders and the Trustee, among others, pursuant to the terms of the Collateral Documents. 

        (b)   Each
Holder, by its acceptance of a Note, consents and agrees to the terms of this Article Fifteen and of the Collateral Documents (including, without limitation, the
provisions providing for foreclosure and release of the Collateral) as the same may be in effect or may be amended from time to time in accordance with their terms and the terms of this Indenture, and
authorizes and directs the Trustee and the Collateral Agent to enter into the Collateral Documents and to perform their respective obligations and exercise their respective rights thereunder in
accordance therewith; provided, however, that if any provisions of this Article Fifteen or of the Collateral Documents limit, qualify or conflict with
the duties imposed by the provisions of the Trust Indenture Act, the Trust Indenture Act will control. 

        (c)   As
among the Holders, the Collateral shall be held for the equal and ratable benefit of the Holders without preference, priority or distinction of any thereof over any
other. 

        (d)   The
Company and the Guarantors will do or cause to be done all such acts and things as may be necessary or reasonably requested by the Trustee, or as may be required by
the provisions of this Article Fifteen or the Collateral Documents, to assure and confirm to the Trustee the security interests in the Collateral contemplated hereby, or by the Collateral Documents or
any part thereof, as from time to time constituted, so as to render the same available for the security and benefit of this 

83

 

Indenture
and of the Notes and each Guarantee, according to the intent and purposes herein and therein expressed. The Company and the Guarantors shall take, or shall cause to be taken, upon request of
the Trustee or the Collateral Agent, any and all actions reasonably required to cause the Collateral Documents to create and maintain, as security for the obligations of the Company and the Guarantors
under this Indenture, the Notes, the Guarantees and the Collateral Documents, valid and enforceable first priority and perfected Liens in and on the Collateral as provided in the Collateral Documents,
in favor of the Collateral Agent for the benefit of the Trustee and for the equal and ratable benefit of the Holders of the Notes. 

        (e)   The
Company and the Guarantors shall pledge any additional Collateral, and shall grant to the Collateral Agent for the benefit of the Trustee and for the equal and
ratable benefit of the Holders of the Notes a first priority security interest in, any non-cash proceeds of any Asset Disposition or Qualifying Disposition and any non-cash VAT
Proceeds, and in furtherance thereof the Company and the Guarantors, as applicable, the Trustee and, if applicable, the Collateral Agent shall, promptly upon receipt of such non-cash
proceeds, enter into either a new Collateral Document or a supplement or amendment of an existing Collateral Document (whichever Collateral Document to be determined based on the character and
location of the Collateral) in order to provide for the creation of such security interest. 

        (f)    Any
cash held from time to time as Collateral that (i) was received following the occurrence and during the continuance of any Default or Event of Default as a
dividend, distribution or payment in respect of the purchase, redemption, or other retirement or acquisition for value of, any securities constituting Collateral or (ii) constitutes Net Cash
Proceeds of an Asset Disposition or Qualifying Disposition or VAT Cash Proceeds, in each case, until applied in accordance with Section 5.13, shall be converted into Dollars and held in a cash
collateral account for the benefit of the Holders of the Notes as set forth in the Collateral Documents and shall be invested in Cash Equivalents. The Trustee shall give notice to the applicable
Collateral Agent directing such Collateral Agent to invest such cash in Cash Equivalents; provided that cash shall not be required to be converted into
Dollars unless such cash arising from (i) or (ii) above exceeds the Dollar equivalent of $10 million. 

        SECTION 15.02    VOTING RIGHTS AND PAYMENT OF DIVIDENDS AND DISTRIBUTIONS IN RESPECT OF
COLLATERAL.    So long as no Default or Event of Default shall have occurred and be continuing, each of the Company and the Guarantors shall be permitted to receive
directly all dividends or distributions paid in respect of, or payments in respect of the purchase, redemption, or other retirement or acquisition for value of, any securities constituting Collateral,
except for Net Cash Proceeds of Asset Dispositions or Qualifying Dispositions and VAT Cash Proceeds which shall be applied in accordance with Section 5.13. So long as no Default or Event of
Default shall have occurred and be continuing, each of the Company and the Guarantors shall have the right to vote, or to provide
a consent, waiver or ratification, as it sees fit in its sole discretion, any securities constituting Collateral, provided that no vote may be cast, and
no consent, waiver or ratification may be given or action taken, which would be inconsistent with or violate any provision of this Indenture, the Notes, the Guarantees or the Collateral Documents. The
Trustee shall notify the applicable Collateral Agent of a Default or an Event of Default upon obtaining knowledge thereof. 

84

   
        SECTION 15.03    RELEASE OF COLLATERAL.    

        (a)   So
long as no Default or Event of Default shall have occurred and be continuing, the Company will be entitled, from time to time, to request the Trustee to give notice
to the applicable Collateral Agent directing such Collateral Agent to cause the release of all or a portion of the Collateral from the Collateral Pledge in accordance with the following terms hereof;  provided, however, that (x) such request to the Trustee must be in writing and accompanied by an
Officers' Certificate and an Opinion of Counsel in English (which may be Mexican counsel to the Company) stating that such release is permitted by this Indenture and the applicable Collateral Document
and (y) the applicable conditions set forth in this Section 15.03 are met. The Company shall, as promptly as practicable after such release pursuant to this Section 15.03 give
notice thereof to Holders of the Notes in the manner provided under Section 1.05 hereof. Upon receipt of such Officers' Certificate and Opinion of Counsel, the Trustee will direct the
Collateral Agent to execute, deliver and acknowledge any necessary or proper instruments of release to evidence the release of any Collateral permitted to be released pursuant to this Indenture and
the Collateral Documents. 

        (i)    Releases in connection with Asset Dispositions and Qualifying Dispositions. In connection with an Asset Disposition or a
Qualifying Disposition with respect to assets or securities that constitute Collateral, the Company may request the Trustee to direct the applicable Collateral Agent to release from the Collateral
Pledge the assets or securities to be sold in such disposition; provided that (A) the Company shall have delivered to the Trustee, in form and substance satisfactory to it and its counsel, the
Officers' Certificate and Opinion of Counsel required by Section 15.03(a) and an Opinion of Counsel to the effect that the Notes, the Guarantees, this Indenture and the Collateral Documents
will be secured by a first priority security interest in the Net Cash Proceeds and the non-cash proceeds of such Asset Disposition or Qualifying Disposition, and (B) simultaneously
with such release, the Company shall cause such Net Cash Proceeds to be paid in U.S. Dollars directly into the cash collateral account as set forth in the Collateral Documents and the
non-cash proceeds are delivered to the applicable Collateral Agent under the Collateral Documents. 

        (ii)   Releases of Net Cash Proceeds and VAT Cash Proceeds. In connection with any application of Net Cash Proceeds or VAT Cash
Proceeds or any Excess Proceeds Offer pursuant to Section 5.13 following an Asset Disposition or a Qualifying Disposition, the Company may request the Trustee to direct the applicable
Collateral Agent to release from the Collateral Pledge the Net Cash Proceeds or VAT Cash Proceeds, as the case may be; provided that the Company shall have delivered to the Trustee, in form and
substance satisfactory to it and its counsel, the Officers' Certificate and Opinion of Counsel required by Section 15.03(a). 

        (iii)  Releases of Cash Held in Cash Collateral Account. Upon the cure of any Default or Event of Default as described in
clause (i) of Section 15.01(f) and provided that no other Default or Event of Default shall have occurred and be continuing, any cash deposited in a collateral account pursuant to such
clause (i) shall be delivered to the Company and the Lien thereon shall be released. In addition, to the extent that the Company makes an Excess Proceeds Offer pursuant to Section 5.13
and the amount required to be paid pursuant to such Excess Proceeds Offer is less than the amount of cash in the collateral account, and provided no Default or Event of Default shall have occurred and
be continuing, all cash not applied pursuant to such Excess Proceeds Offer shall, immediately following the settlement of such Excess Proceeds Offer, be delivered to the Company and the Lien thereon
shall be released. In connection with any release pursuant to this clause (iii), the Company shall have delivered to the Trustee, in form and substance satisfactory to it and its counsel, the
Officers' Certificate and Opinion of Counsel required by Section 15.03(a). 

        Notwithstanding
the foregoing, any Net Cash Proceeds resulting from a Qualifying Disposition shall be subject to any rights of the holders of the certificates under the Receivables
Securitization 

85

 

Facility
as provided in Section 5.13(b), provided the Net Cash Proceeds payable to such holders of certificates shall be the lesser of (x) the outstanding amount of such certificates and
(y) the Net Cash Proceeds attributable to the portion of the Capital Stock of TMM Multimodal that has been pledged to secure the obligations of the Company and the Restricted Subsidiaries under
the Receivables Securitization Facility. 

        (b)   The
release of any Collateral from the Collateral Pledge or the release of, in whole or in part, the Liens created by the Collateral Documents, or the termination of the
Collateral Documents, will not be deemed to impair the Liens on the Collateral in contravention of the provisions hereof if and to the extent that the Liens on Collateral are released, or the
Collateral Documents are terminated, pursuant to this Section 15.03 and the applicable Collateral Documents. The Trustee and each of the Holders acknowledge that a release of Collateral or a
Lien in accordance with the terms of this Section 15.03 and the Collateral Documents will not be deemed for any purpose to be an impairment of the Lien on the Collateral in contravention of the
terms of this Indenture. To the extent applicable, the Company, the Guarantors and each other obligor on the Notes shall cause Section 314(d) of the Trust Indenture Act relating to the release
of property or securities from the Lien hereof and of the Collateral Documents to be complied with. Any certificate or opinion required by Section 314(d) of the Trust Indenture Act may be made
by an officer of the Company, except in cases which Section 314(d) of the Trust Indenture Act requires that such certificate or opinion be made by an independent Person, in which case such
independent Person shall be selected by the Company. In releasing any Collateral pursuant to the terms of this Indenture, including the provisions of this Section 15.03, or any Collateral
Document, the Trustee shall be entitled to receive, and shall be fully protected in relying upon, in addition to the documents required by this Section 15.03, an Officers' Certificate
certifying that such release is authorized or permitted by this Indenture and the Collateral Documents and that all conditions precedent, if any, to such release have been satisfied. 

        SECTION 15.04    REMEDIES UPON ACCELERATION.    Upon the occurrence
and during the continuance of an Event of Default and after the acceleration of the principal amount of the Notes
pursuant to Section 6.03 (so long as such acceleration has not been rescinded), the Trustee shall deliver an appropriate Notice of Sale to the applicable Collateral Agent with a copy to the
Company, in accordance with Section 6.03 hereof. Thereafter, the Trustee shall take specific action in accordance with the directions of the Holders of not less than a majority in principal
amount of the Outstanding Notes, subject to the terms set forth herein and in accordance with applicable law. In the event that Holders of not less than a majority in principal amount of the
Outstanding Notes fail, within 30 days of a request for direction by the Trustee, to direct the Trustee to take specific action hereunder or under the applicable Collateral Documents, the
Trustee may retain an investment banker, broker/dealer, or other expert as the Trustee may determine, and subject to Sections 7.01 and 7.02, the advice of such investment banker, broker/dealer or
other expert shall be full and complete authorization and protection in respect of any action taken, suffered or omitted by the Trustee hereunder, or as agent of the applicable Collateral Agent under
the applicable Collateral Documents, in good faith and in reliance thereon; provided that such investment banker, broker/dealer or other expert was
selected by the Trustee with due care. Upon the receipt of any Notice of Sale, the Company shall within fifteen (15) Business Days inform the Trustee whether any of the Collateral is subject to
a right of first refusal or other similar restriction. 

        SECTION 15.05    FURTHER ASSURANCES AND SECURITY.    The Company and
the Guarantors will execute, acknowledge and deliver to the Trustee, at the Company's and/or such Guarantors' expense, at any time and from time to time such further assignments, transfers, assurances
or other instruments as may be reasonably required by the Trustee, to assure and confirm to the Trustee, in its capacity as Collateral Agent, the Liens in the Collateral contemplated hereby and by the
Collateral Documents, all to the extent contemplated hereby and by the Collateral Documents. 

86

 

        SECTION 15.06    OPINIONS AS TO RECORDING.    

        (a)   Each
of the Company and the Guarantors represents that it has caused or will promptly cause to be executed and delivered, filed and recorded and covenants that it will
promptly cause to be executed and delivered and filed and recorded, all instruments and documents, and represents that it has done and will do or will cause to be done all such acts and other things,
at the Company's or the Guarantors' expense, as applicable, as are necessary to subject the applicable Collateral to valid Liens and to perfect those Liens to the extent contemplated hereby and by the
Collateral Documents. 

        (b)   The
Company and the Guarantors shall furnish to the Trustee and the Collateral Agent promptly after the execution and delivery of this Indenture, Opinions of Counsel of
United States and Mexican counsel either (i) stating that in the opinions of such counsel all action has been taken with respect to the recording, registering and filing of this Indenture,
financing statements or other instruments or otherwise necessary to make effective the Liens intended to be created by the Collateral Documents and reciting the details of such action, or
(ii) stating that, in the opinions of such counsel, no such action is necessary to make such Lien effective. Such Opinion of Counsel may contain such qualifications, assumptions and limitations
as are customary for such opinions. 

        (c)   The
Company and the Guarantors shall furnish to the Trustee and the Collateral Agent within three months after each anniversary of the Initial Issuance Date, Opinions of
Counsel of United States and Mexican counsel, dated as of such date, stating either that (i) in the opinions of such counsel, all action has been taken with respect to the recording, filing,
re-recording, and refiling of this Indenture and related financing statements, continuation statements and other instruments and documents as is necessary to maintain the effectiveness of
the Liens intended to be created by the Collateral Documents and reciting the details of such action or (ii) in the opinions of such counsel, no such action is necessary to maintain the
effectiveness of such Liens. Such Opinions of Counsel may contain such qualifications, assumptions and limitations as are customary for such opinions. 

        (d)   The
Company and the Guarantors shall otherwise comply with the provisions of Section 314(b) and, as applicable Sections 314(c), (d) and (e) of the
Trust Indenture Act. 

        SECTION 15.07    LIMITATION ON DUTY OF TRUSTEE IN RESPECT OF THE COLLATERAL
PLEDGE.    

        (a)   Beyond
the exercise of reasonable care in the custody thereof, the Trustee shall have no duty as to any property in the Collateral Pledge under the Collateral Documents
in its possession or control or in the possession or control of any agent or bailee or any income thereon or as to preservation of rights against prior parties or any other rights pertaining thereto
and the Trustee shall not be responsible for filing any financing or continuation statements or recording any documents or instruments in any public office at any time or times or otherwise perfecting
or maintaining the perfection of any security interest in such property. The Trustee shall be deemed to have exercised reasonable care in the custody of such property in its possession if the property
is accorded treatment substantially equal to that which it accords its own property, and shall not be liable or responsible for any loss or diminution in the value of any of such property by reason of
the act or omission of any carrier, forwarding agency or other agent or bailee selected by the Trustee with due care and in good faith. 

        (b)   The
Trustee shall not be responsible for the existence, genuineness or value of any such property or for the validity, perfection, priority or enforceability of the
Liens in any of the property, whether impaired by operation of law or by reason of any action or omission to act on its part hereunder, except to the extent such action or omission constitutes gross
negligence, bad faith or willful misconduct on the part of the Trustee, for the validity or sufficiency of such property or any agreement or assignment contained therein, for the validity of the title
of the Company or any Guarantor to such property, for insuring such property or for the payment of taxes, charges, assessments or Liens upon 

87

 

such
property or otherwise as to the maintenance of such property. The Trustee shall have no duty to inquire as to the performance or observance of any of the terms of this Indenture or any of the
Collateral Documents by the Company, any Guarantor or the applicable Collateral Agent. 

        (c)   Except
as set forth in the Collateral Documents, the Trustee shall have no duty to exercise any voting rights with respect to the Collateral or otherwise manage,
monitor, supervise or insure the business to which the Collateral relate. 

        (d)   Other
than as contemplated hereunder, the Trustee shall have no duty to act outside of the United States in respect of any Collateral located in a jurisdiction other
than the United States. 

        SECTION 15.08    AUTHORIZATION OF ACTIONS TO BE TAKEN BY COLLATERAL AGENT UNDER THE COLLATERAL
DOCUMENTS.    The Trustee, in its capacity as Collateral Agent, may, in its sole discretion and without the consent of the Holders, on behalf of the Holders, take all
actions it deems necessary or appropriate in order to (i) enforce any of the terms of the Collateral Documents and (ii) collect and receive any and all amounts payable in respect of the
obligations of the Company and the Guarantors hereunder and under the Notes, the Guarantees and the Collateral Documents. The Trustee, in its capacity as Collateral Agent, shall have the power to
institute and to maintain such suits and proceedings as such Person may deem expedient to prevent any impairment of the Collateral by any acts that may be unlawful or in violation of the Collateral
Documents or this Indenture, and such suits and proceedings as the Trustee may deem expedient to preserve or protect its interests and the interests of the Holders in the Collateral (including power
to institute and maintain suits or proceedings to restrain the enforcement of or compliance with any legislative or other governmental enactment, rule or order that may be unconstitutional or
otherwise invalid if the enforcement of, or compliance with, such enactment, rule or order would impair the security interest hereunder or be prejudicial to the interests of the Holders or of the
Trustee). 

        SECTION 15.09    AUTHORIZATION OF RECEIPT OF FUNDS BY THE TRUSTEE UNDER THE COLLATERAL
DOCUMENTS.    The Trustee, in its capacity as Collateral Agent, is authorized to receive any funds for the benefit of the Holders distributed under the Collateral
Documents, and to make further distributions of such funds to the Holders according to the provisions of this Indenture and the Collateral Documents. 

        SECTION 15.10    ASSIGNMENT OF RIGHTS, NOT ASSUMPTION OF
DUTIES.    Anything herein contained to the contrary notwithstanding, (a) the Company and the Guarantors shall remain liable under each of the Collateral
Documents to the extent set forth therein to perform all of their duties and obligations thereunder to the same extent as if this Indenture had not been executed, (b) the exercise by the
Trustee or the Holders of any of their rights, remedies or powers hereunder shall not release the Company or the Guarantors from any of their duties or obligations under each of the Collateral
Documents and (c) neither the Holders nor the Trustee shall have any obligation or liability under any of the Collateral Documents by reason of or arising out of this Indenture, nor shall the
Holders or Trustee be obligated to perform any of the obligations or duties of the Company or the Guarantors thereunder or, except as expressly provided herein with respect to the Trustee, to take any
action to collect or enforce any claim for payment assigned hereunder or otherwise. 

88

        In Witness Whereof, the parties hereto have caused this Indenture to be duly executed as of the day and year first above written. 

	 	 	GRUPO TMM, S.A.,

as Issuer
	

 	
 	

By:	

    
 Name: Jacinto Marina

Title: Chief Financial Officer	
 	

 
	

 	
 	
OPERADORA DE APOYO LOGÍSTICO, S.A. DE C.V.,

as Guarantor
	

 	
 	

By:	

    
 Name:

Title:	
 	

 
	

 	
 	
COMPAÑIA ARRENDADORA TMM, S.A. DE C.V.,

as Guarantor
	

 	
 	

By:	

    
 Name:

Title:	
 	

 
	

 	
 	
TRANSPORTES MARÍTIMOS MÉXICO, S.A.,

as Guarantor
	

 	
 	

By:	

    
 Name:

Title:	
 	

 
	

 	
 	
DIVISIÓN DE NEGOCIOS ESPECIALIZADOS, S.A.,

as Guarantor
	

 	
 	

By:	

    
 Name:

Title:	
 	

 
	

 	
 	
INMOBILIARIA TMM, S.A. DE C.V.,

as Guarantor
	

 	
 	

By:	

    
 Name:

Title:	
 	

 

	

 	
 	
LACTO COMERCIAL ORGANIZADA, S.A. DE C.V.,

as Guarantor
	

 	
 	

By:	

    
 Name:

Title:	
 	

 
	

 	
 	
LÍNEA MEXICANA TMM, S.A. DE C.V.,

as Guarantor
	

 	
 	

By:	

    
 Name:

Title:	
 	

 
	

 	
 	
NAVIERA DEL PACIFICO, S.A. DE C.V.,

as Guarantor
	

 	
 	

By:	

    
 Name:

Title:	
 	

 
	

 	
 	
OPERADORA MARÍTIMA TMM, S.A. DE C.V.,

as Guarantor
	

 	
 	

By:	

    
 Name:

Title:	
 	

 
	

 	
 	
OPERADORA PORTUARIA DE TUXPAN, S.A. DE C.V.,

as Guarantor
	

 	
 	

By:	

    
 Name:

Title:	
 	

 
	

 	
 	
PERSONAL MARÍTIMO, S.A. DE C.V.,

as Guarantor
	

 	
 	

By:	

    
 Name:

Title:	
 	

 
	

 	
 	
SERVICIOS ADMINISTRATIVOS DE TRANSPORTACIÓN, S.A. DE C.V.,

as Guarantor
	

 	
 	

By:	

    
 Name:

Title:	
 	

 
	 	 	 	 	 	 

	

 	
 	
SERVICIOS DE LOGÍSTICA DE MÉXICO, S.A. DE C.V.,

as Guarantor
	

 	
 	

By:	

    
 Name:

Title:	
 	

 
	

 	
 	
SERVICIOS EN OPERACIONES LOGÍSTICAS, S.A. DE C.V.,

as Guarantor
	

 	
 	

By:	

    
 Name:

Title:	
 	

 
	

 	
 	
SERVICIOS EN PUERTOS Y TERMINALES, S.A. DE C.V.,

as Guarantor
	

 	
 	

By:	

    
 Name:

Title:	
 	

 
	

 	
 	
TERMINAL MARÍTIMA DE TUXPAN, S.A. DE C.V.,

as Guarantor
	

 	
 	

By:	

    
 Name:

Title:	
 	

 
	

 	
 	
TMM AGENCIAS, S.A. DE C.V.,

as Guarantor
	

 	
 	

By:	

    
 Name:

Title:	
 	

 
	

 	
 	
TMM LOGISTICS, S.A. DE C.V.,

as Guarantor
	

 	
 	

By:	

    
 Name:

Title:	
 	

 
	

 	
 	
TRANSPORTACIÓN PORTUARIA TERRESTRE, S.A. DE C.V.,

as Guarantor
	

 	
 	

By:	

    
 Name:

Title:	
 	

 
	 	 	 	 	 	 

	

 	
 	
TMG OVERSEAS, S.A.,

as Guarantor
	

 	
 	

By:	

    
 Name:

Title:	
 	

 
	

 	
 	
WELLS FARGO BANK, N.A., AS TRUSTEE
	

 	
 	

BY:	

    
 NAME:

TITLE:	
 	

 

QuickLinks

Exhibit 4.26

TABLE OF CONTENTS

ARTICLE ONE DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

ARTICLE TWO NOTE FORMS

Grupo Tmm, S.A. Senior Secured Note due 2007

[FORM OF OPTION OF HOLDER TO ELECT PURCHASE]

SENIOR SECURED GUARANTEE

ARTICLE THREE THE NOTES

ARTICLE FOUR REDEMPTION OF NOTES

ARTICLE FIVE COVENANTS

ARTICLE SIX REMEDIES

ARTICLE SEVEN CONCERNING THE TRUSTEE

ARTICLE EIGHT CONCERNING THE HOLDERS

ARTICLE NINE HOLDERS' MEETINGS

ARTICLE TEN SUPPLEMENTAL INDENTURES AND AMENDMENT OF COLLATERAL DOCUMENTS

ARTICLE ELEVEN SUCCESSOR CORPORATION

ARTICLE TWELVE SATISFACTION AND DISCHARGE OF INDENTURE; UNCLAIMED MONEYS

ARTICLE THIRTEEN IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS

ARTICLE FOURTEEN GUARANTEE

ARTICLE FIFTEEN SECURITYQuickLinks
 -- Click here to rapidly navigate through this document

 
 

Exhibit 10.25    
    

ACQUISITION AGREEMENT  

 by and among  

 KANSAS CITY SOUTHERN,

a Delaware corporation,  

 KARA Sub, Inc.,

a Delaware corporation,  

 GRUPO TMM, S.A.,

a sociedad anonima organized under

the laws of the United Mexican States,  

 TMM HOLDINGS, S.A. de C.V.,

a sociedad anonima de capital variable
  organized under the laws of the United Mexican States,  

 and

TMM MULTIMODAL, S.A. de C.V.,

a sociedad anonima de capital variable
  organized under the laws of the United Mexican States  

 DATED AS OF APRIL 21, 2003  

  

 
 

Table of Contents    
    

	ARTICLE 1 STOCK PURCHASE	 	1
	 	Section 1.1	Stock Purchase.	 	1
	 	Section 1.2	Stock Purchase Price.	 	1
	ARTICLE 2 SUBSIDIARY INVESTMENT	 	2
	 	Section 2.1	Subsidiary Investment.	 	2
	ARTICLE 3 THE MERGER	 	2
	 	Section 3.1	The Merger.	 	2
	 	Section 3.2	Name Change, Certificate of Incorporation and Bylaws.	 	2
	 	Section 3.3	Board and Officers.	 	2
	 	Section 3.4	Merger Integration Committee.	 	2
	ARTICLE 4 CLOSING	 	3
	 	Section 4.1	Closing.	 	3
	 	Section 4.2	Actions at Closing.	 	3
	 	Section 4.3	Conversion of Securities.	 	4
	ARTICLE 5 REPRESENTATIONS AND WARRANTIES OF SELLERS	 	4
	 	Section 5.1	Organization and Related Matters.	 	4
	 	Section 5.2	Authorized Capitalization.	 	5
	 	Section 5.3	GTFM and GTFM Subsidiaries.	 	6
	 	Section 5.4	Authority; No Violation.	 	6
	 	Section 5.5	Consents and Approvals.	 	7
	 	Section 5.6	Financial Statements; Undisclosed Liabilities.	 	8
	 	Section 5.7	Contracts.	 	8
	 	Section 5.8	Intellectual Property Rights.	 	9
	 	Section 5.9	Employee Benefit Matters.	 	9
	 	Section 5.10	Labor and Other Employment Matters.	 	10
	 	Section 5.11	Tax Matters.	 	11
	 	Section 5.12	Legal Proceedings.	 	12
	 	Section 5.13	Permits and Compliance.	 	12
	 	Section 5.14	Environmental Matters.	 	13
	 	Section 5.15	Properties.	 	13
	 	Section 5.16	Insurance.	 	14
	 	Section 5.17	No Other Broker.	 	14
	 	Section 5.18	No GTFM Material Adverse Effect.	 	14
	 	Section 5.19	Sufficiency of and Title to Assets.	 	14
	 	Section 5.20	Information in Filed Documents.	 	14
	 	Section 5.21	Transactions with Affiliates.	 	14
	 	Section 5.22	No Loss of Significant Customers.	 	15
	 	Section 5.23	Trading in and Ownership of KCS Common Stock.	 	15
	 	Section 5.24	Solvency.	 	15
	 	Section 5.25	Termination of Option Agreement.	 	15
	ARTICLE 6 REPRESENTATIONS AND WARRANTIES OF KCS	 	16
	 	Section 6.1	Organization and Related Matters.	 	16
	 	Section 6.2	Authority; No Violation.	 	16
	 	Section 6.3	Consents and Approvals.	 	17
	 	Section 6.4	Authorized Capitalization.	 	18
	 	Section 6.5	SEC Filings.	 	19
	 	Section 6.6	Financial Statements; Undisclosed Liabilities.	 	19
	 	Section 6.7	No Other Broker.	 	19
	 	Section 6.8	Information in Filed Documents.	 	19
	 	Section 6.9	No KCS Material Adverse Effect.	 	19
	 	Section 6.10	KARA Sub.	 	19
	 	Section 6.11	Legal Proceedings.	 	20
	 	Section 6.12	KCS Capital Resources.	 	20
	 	Section 6.13	Employee Benefit Matters.	 	20
	 	Section 6.14	Labor and Other Employment Matters.	 	20
	 	Section 6.15	Tax.	 	21
	 	Section 6.16	Permits and Compliance.	 	21
	 	Section 6.17	Environmental Matters.	 	21
	 	Section 6.18	Properties.	 	22
	 	 	 	 

i

 

	ARTICLE 7 COVENANTS AND ADDITIONAL AGREEMENTS	 	22
	 	Section 7.1	Conduct of Business by the GTFM Group.	 	22
	 	Section 7.2	Conduct of Business by KCS and its Subsidiaries.	 	24
	 	Section 7.3	Access to Information; Confidentiality.	 	24
	 	Section 7.4	Regulatory Matters; Governing Documents; Third-Party Consents.	 	24
	 	Section 7.5	Stockholder and Debtholder Approvals.	 	25
	 	Section 7.6	Tax Matters.	 	26
	 	Section 7.7	Insurance.	 	26
	 	Section 7.8	Notification of Certain Matters.	 	27
	 	Section 7.9	Further Assurances.	 	27
	 	Section 7.10	Third-Party Matters.	 	27
	 	Section 7.11	Efforts of Parties to Close.	 	28
	 	Section 7.12	Expenses.	 	28
	 	Section 7.13	VAT Contingency Payment.	 	29
	 	Section 7.14	Financing for the Acquisition.	 	29
	 	Section 7.15	Release.	 	29
	ARTICLE 8 CONDITIONS	 	29
	 	Section 8.1	Mutual Conditions.	 	29
	 	Section 8.2	Conditions to the Obligations of KCS.	 	30
	 	Section 8.3	Conditions to the Obligations of Sellers.	 	31
	ARTICLE 9 TERMINATION	 	32
	 	Section 9.1	Termination.	 	32
	 	Section 9.2	Survival after Termination.	 	32
	ARTICLE 10 INDEMNIFICATION	 	32
	 	Section 10.1	Survival of Representations, Warranties and Covenants; Exclusive Monetary Remedies.	 	32
	 	Section 10.2	Indemnification by Sellers.	 	33
	 	Section 10.3	Indemnification by KCS.	 	34
	 	Section 10.4	Procedures for Third-Party Claims.	 	34
	 	Section 10.5	Tax Indemnification.	 	35
	ARTICLE 11 DEFINITIONS	 	35
	 	Section 11.1	Certain Defined Terms.	 	35
	ARTICLE 12 MISCELLANEOUS	 	41
	 	Section 12.1	Amendments; Waiver.	 	41
	 	Section 12.2	Entire Agreement.	 	41
	 	Section 12.3	Interpretation.	 	41
	 	Section 12.4	Severability.	 	42
	 	Section 12.5	Notices.	 	42
	 	Section 12.6	Headings.	 	42
	 	Section 12.7	Binding Effect; Persons Benefiting; No Assignment.	 	43
	 	Section 12.8	No Third Party Beneficiaries.	 	43
	 	Section 12.9	Counterparts.	 	43
	 	Section 12.10	Specific Enforcement.	 	43
	 	Section 12.11	Governing Law; Dispute Resolution.	 	43
	 	Section 12.12	Announcements.	 	44
	 	Section 12.13	Termination Fee.	 	44

ii

  

 
 

TABLE OF DEFINED TERMS    
    

	Term
 
	 	Page
	 	Section

	2003 Notes	 	9	 	5.5
	2006 Notes	 	9	 	5.5
	Acquisition	 	1	 	Preamble
	Affiliate	 	40	 	11.1
	Agreement	 	1	 	Preamble
	Ancillary Agreements	 	1	 	Preamble
	Applicable Law	 	40	 	11.1
	Arbitration Costs	 	51	 	12.11(d)(iii)
	Arbitration Demand	 	50	 	12.11(d)
	Arbitrators	 	50	 	12.11(d)(i)
	Benefit Plan	 	10	 	5.9(a)
	Board of Directors	 	2	 	3.3
	Business Day	 	40	 	11.1
	Buyer Parties	 	31	 	7.10(c)
	Certificate of Merger	 	2	 	3.1
	Change of Control	 	40	 	11.1
	Closing	 	3	 	4.1
	Closing Date	 	3	 	4.1
	Code	 	22	 	6.13
	Concession	 	41	 	11.1
	Confidentiality Agreement	 	41	 	11.1
	Consulting Agreement	 	41	 	11.1
	Contracts	 	41	 	11.1
	Control	 	41	 	11.1
	Del. G.C.L.	 	2	 	3.1
	Disputes	 	49	 	12.11(a)
	Dispute Notice	 	50	 	12.11(c)
	Dispute Parties	 	49	 	12.11(a)
	Dispute Party	 	49	 	12.11(a)
	Effective Time	 	2	 	3.1
	Encumbrance	 	41	 	11.1
	Environmental Laws	 	41	 	11.1
	Environmental Permit	 	42	 	11.1
	ERISA	 	22	 	6.13
	ERISA Affiliate	 	42	 	11.1
	Exchange Act	 	42	 	11.1
	Expiration Date	 	37	 	10.1(a)
	Final Resolution of the VAT Claim	 	42	 	11.1
	GAAP	 	42	 	11.1
	Governmental Authority	 	42	 	11.1
	GTFM	 	1	 	Preamble
	GTFM Assets	 	16	 	5.19
	GTFM Benefit Plan	 	10	 	5.9(a)
	GTFM Business	 	42	 	11.1
	GTFM Financial Statements	 	9	 	5.6
	GTFM Form 20-F	 	43	 	11.1
	GTFM Group	 	43	 	11.1
	 	 	 	 	 

iii

 

	GTFM Insurance Policies	 	16	 	5.16
	GTFM Material Adverse Effect	 	43	 	11.1
	GTFM Shares	 	1	 	1.1
	GTFM Subsidiaries	 	7	 	5.3(a)
	GTFM Trademarks	 	43	 	11.1
	GTFM Voting Debt	 	6	 	5.2
	Hazardous Materials	 	43	 	11.1
	HSR Act	 	43	 	11.1
	Income Taxes	 	43	 	11.1
	Indemnified Party	 	39	 	10.4(a)
	Intellectual Property	 	43	 	11.1
	Investment Advisers Act	 	44	 	11.1
	Investment Company Act	 	44	 	11.1
	KARA Sub	 	1	 	Preamble
	KARA Sub Common Stock	 	2	 	2.1
	KCS	 	1	 	Preamble
	KCS Acquisition Proposal	 	31	 	7.10(c)
	KCS Assets	 	44	 	11.1
	KCS Business	 	44	 	11.1
	KCS Disclosure Schedule	 	17	 	Article 6 Introduction
	KCS Financial Statements	 	20	 	6.6
	KCS Indemnitees	 	37	 	10.2
	KCS Material Adverse Effect	 	44	 	11.1
	KCS SEC Documents	 	21	 	6.5
	KCS Stock Option Plan	 	44	 	11.1
	KCS Voting Debt	 	20	 	6.4
	Knowledge	 	44	 	11.1
	Law	 	44	 	11.1
	Losses	 	38	 	10.2
	Merger	 	1	 	Preamble
	Merger Integration Committee	 	3	 	3.4
	MM	 	1	 	Preamble
	MM Subsidiaries	 	44	 	11.1
	NAFTA Rail	 	2	 	3.2
	NYSE	 	44	 	11.1
	Parties	 	1	 	Preamble
	Permits	 	14	 	5.13(a)
	Permitted Encumbrance	 	45	 	11.1
	Person	 	45	 	11.1
	Proceedings	 	14	 	5.12
	Process Agent	 	52	 	12.11(f)
	Put Agreement	 	45	 	11.1
	Put Purchase Price	 	45	 	11.1
	Reconciliation	 	9	 	5.6
	Scheduled Contracts	 	9	 	5.7
	SEC	 	45	 	11.1
	Securities	 	45	 	11.1
	Securities Act	 	45	 	11.1
	Securities Laws	 	45	 	11.1
	Seller Disclosure Schedule	 	5	 	Article 5 Introduction
	 	 	 	 	 

iv

 

	Seller Indemnitees	 	38	 	10.3
	Seller Material Adverse Effect	 	45	 	11.1
	Seller Parties	 	30	 	7.10(a)
	Sellers	 	5	 	Article 5 Introduction
	Strategic Investor	 	45	 	11.1
	Stock Purchase	 	1	 	Preamble
	Stock Purchase Price	 	1	 	1.1
	Straddle Period	 	29	 	7.6(b)
	Subsidiary	 	46	 	11.1
	Subsidiary Investment	 	1	 	Preamble
	Surviving Company	 	2	 	3.1
	Tax	 	45	 	11.1
	Tax Return	 	46	 	11.1
	Taxing Authority	 	46	 	11.1
	Termination Date	 	36	 	9.1(a)(vi)
	TFM	 	46	 	11.1
	Third-Party Claim	 	39	 	10.4(a)
	TMM	 	1	 	Preamble
	TMM Account	 	1	 	1.2
	TMM Acquisition Proposal	 	30	 	7.10(a)
	TMMH	 	1	 	Preamble
	UMS	 	1	 	Preamble
	U.S.	 	46	 	11.1
	VAT	 	46	 	11.1
	VAT Claim	 	46	 	11.1
	VAT Contingency Payment	 	32	 	7.13
	VAT Payment	 	46	 	11.1

       

	Exhibit 1	 	KARA Sub Note
	Exhibit A	 	Amended and Restated Certificate of Incorporation of the Surviving Company
	Exhibit B	 	Bylaws of the Surviving Company
	Exhibit C	 	Agreement of Assignment and Assumption of Put Obligations
	Exhibit D	 	Boards of Directors, Committees and Officers of Surviving Company, GTFM and GTFM Subsidiaries and Merger Integration Committee
	Exhibit E	 	Seller Disclosure Schedule
	Exhibit F	 	KCS Disclosure Schedule
	Exhibit G-1	 	Form of Opinion Letter of Milbank, Tweed, Hadley & McCloy LLP
	Exhibit G-2	 	Form of Opinion Letter of Haynes & Boone, L.C.
	Exhibit H-1	 	Form of Opinion Letter of Sonnenschein Nath & Rosenthal
	Exhibit H-2	 	Form of Opinion Letter of Jay Nadlman, Esq.

v

   
        ACQUISITION AGREEMENT, dated as of April            , 2003 (this "Agreement"), by and among KANSAS CITY SOUTHERN, a Delaware corporation
("KCS"), KARA Sub, Inc., a Delaware
corporation ("KARA Sub"), GRUPO TMM, S.A., a sociedad anonima organized under the laws of the United Mexican States ("UMS") ("TMM"), TMM HOLDINGS, S.A.
de C.V., a sociedad anonima de capital variable organized under the laws of the UMS and a subsidiary of TMM ("TMMH") and TMM MULTIMODAL, S.A. de C.V., a  sociedad anonima de
capital variable organized under the laws of the UMS ("MM") and a subsidiary of TMMH (collectively, the "Parties"). 

        WHEREAS,
each of the Boards of Directors of KCS, TMM, TMMH and MM has approved and declared advisable the acquisition by KCS of all of MM's interest in GRUPO TRANSPORTACION FERROVIARIA
MEXICANA, S.A. de C.V., a sociedad anonima de capital variable organized under the laws of the UMS ("GTFM") through (i) the purchase by KARA Sub
from MM of all of the capital stock of GTFM held by MM (the "Stock Purchase"), (ii) the investment by MM in KARA Sub (the "Subsidiary Investment") and (iii) the merger of KARA Sub with
and into KCS (the "Merger") upon the terms and subject to the conditions of this Agreement (collectively, the Stock Purchase, Subsidiary Investment and the Merger comprise the "Acquisition"); and 

        WHEREAS,
certain of the Parties and other parties are entering into ancillary agreements (the "Ancillary Agreements," identified hereinafter) to carry out certain of the objectives of
this Agreement and of the Acquisition. 

        NOW,
THEREFORE, in consideration of the foregoing and the respective representations, warranties, covenants and agreements set forth in this Agreement and intending to be legally bound
hereby, the Parties agree as follows: 

ARTICLE 1

STOCK PURCHASE  

        Section 1.1 Stock Purchase.    Upon the terms and subject to satisfaction or waiver of the conditions set forth in
Article 8, at the Closing, KARA Sub shall purchase, acquire and receive from MM, and MM shall sell, assign, transfer, convey and deliver to KARA Sub, all GTFM Shares held by MM, consisting
of 25,500 shares of Series "A" fixed capital stock of GTFM and 3,842,901 shares of Series "A" variable capital stock of GTFM (collectively the "GTFM Shares"), for the consideration described in
Section 1.2 (the "Stock Purchase Price"). 

        Section 1.2 Stock Purchase Price.    The Stock Purchase Price to be paid by KARA Sub to MM at the Closing for the purchase of
the GTFM Shares shall be paid by the delivery of: (i) $200 million, in immediately available funds, by wire transfer to the account designated by TMM to KCS at least three business days
prior to the Closing Date (the "TMM Account"), provided, that KCS may, at its option, elect to pay up to $80 million of such amount by delivering to MM a number of shares of KCS Common Stock,
or of KCS Class A Common Stock determined by dividing the amount that KCS so elects to pay other than in cash by $12.50 (such election to be made by written notice to the Sellers not less than
30 days prior to the Closing specifying the amount which KCS elects to pay through the delivery of Common Stock or Class A Common Stock and the class of such stock, which notice shall be
irrevocable once given); and (ii) a subordinated promissory note evidencing an indebtedness of KARA Sub in the principal amount of $25,000,000, having the terms and conditions set forth in the
form of note attached hereto as Exhibit 1 (the "KARA Sub Note"). KCS covenants and agrees to provide KARA Sub with sufficient funds to make all payments required to be made by it under this
Agreement. 

1

 

ARTICLE 2

SUBSIDIARY INVESTMENT  

        Section 2.1 Subsidiary Investment.    At the Closing, immediately following the Stock Purchase, MM shall subscribe for and
purchase from KARA Sub 100 shares of KARA Sub common stock, $.01 par value ("KARA Sub Common Stock"), representing 10% of the issued and outstanding shares of KARA Sub Common Stock, and KARA Sub shall
issue, sell and transfer to MM the KARA Sub Common Stock in consideration for delivery by MM to KARA Sub of the KARA Sub Note. 

ARTICLE 3

THE MERGER  

        Section 3.1 The Merger.    Immediately following the Subsidiary Investment, KARA Sub shall be merged with and into KCS in
accordance with the General Corporation Law of the State of Delaware ("Del. G.C.L."). KCS and KARA Sub shall cause the Merger to be consummated by filing a certificate of merger (the "Certificate of
Merger") with the Secretary of State of the State of Delaware, in such form as required by, and executed in accordance with the relevant provisions of, the Del. G.C.L. (the date and time of the filing
of the Certificate of Merger being the "Effective Time"). At the Effective Time, the effects of the Merger shall be as provided in the Certificate of Merger and the applicable provisions of the Del.
G.C.L. As a result of the Merger, the separate corporate existence of KARA Sub shall cease and KCS shall continue as the surviving corporation of the Merger (the "Surviving Company"). 

        Section 3.2 Name Change, Certificate of Incorporation and Bylaws.    At the Effective Time, KCS shall change its name to "NAFTA
Rail Corporation" or such other name as shall be determined by KCS and its Restated Certificate of Incorporation and Bylaws shall be amended in their entirety to contain the provisions set forth,
respectively, in Exhibits A and B to this Agreement, which shall become, respectively, the Amended and Restated Certificate of Incorporation and Bylaws of the Surviving Company. At the Effective Time,
the Charter and Bylaws, or other organizational documents of GTFM and each GTFM Subsidiary shall be amended as determined by KCS. 

        Section 3.3 Board and Officers.    At the Effective Time, the Board of Directors of the Surviving Company (the "Board of
Directors") shall be comprised of eleven members (provided, that KCS may add a representative of a Strategic Investor in KCS as a twelfth director) divided into three classes, each class to be as
equal in number as practicable, to serve staggered three-year terms. At or promptly following the Effective Time, the Board of Directors shall establish, and appoint the members of, such
committees as the Board of Directors deems appropriate, which shall include the committees set forth in Exhibit D to this Agreement. Included in Exhibit D are the names of the members of
the respective initial Board of Directors (including those persons designated to be members of the committees of the Board of Directors), and the initial executive officers, of the Surviving Company,
and of GTFM and the GTFM Subsidiaries, each to hold office at the Effective Time. Each person identified in Exhibit D to this Agreement shall hold office in accordance with the applicable
charter documents and Ancillary Agreements and until the earlier of their resignations or removal as permitted under such charter documents and Ancillary Agreements, or until their respective
successors are duly elected and qualified, as the case may be. 

        Section 3.4 Merger Integration Committee.    The Board of Directors shall appoint, effective as of the Effective Time, a merger
integration committee ("Merger Integration Committee"), comprised initially of the persons identified as such in Exhibit D. The Merger Integration Committee shall assist the Board of Directors
for a period of one year in managing the transition of ownership and operation of GTFM contemplated by this Agreement and shall have such other duties and responsibilities as may be assigned by the
Board of Directors, consistent with the Ancillary Agreements. 

2

 

ARTICLE 4

CLOSING  

        Section 4.1 Closing.    Unless this Agreement shall have been earlier terminated in accordance with the terms hereof, the
consummation of the transactions contemplated by this Agreement (the "Closing") shall, subject to the satisfaction or waiver of the conditions set forth in Article 8, take place at the offices
of Sonnenschein Nath & Rosenthal, 1221 Avenue of the America, 24th Floor, New York, New York, on the second (2nd) Business Day after all of the conditions set forth in
Article 8 have been satisfied or waived (other than the conditions that relate to actions to be taken at the Closing) or at such other date, time and place as KCS and MM shall mutually agree in
writing (the date on which the Closing takes place, the "Closing Date"). The closing of the Acquisition is dependent upon the closing of each of the Stock Purchase, the Subsidiary Investment and the
Merger and if any one of the Stock Purchase, the Subsidiary Investment or the Merger shall not close, then the Acquisition shall not close and all consideration theretofore paid or exchanged shall be
promptly returned. 

        Section 4.2 Actions at Closing.    At the Closing: 

        (a)   KCS
shall cause KARA Sub to deliver to MM the Stock Purchase Price, including the KARA Sub Note, duly executed and in proper form to evidence the indebtedness of KCS Sub
represented thereby and MM shall, and TMM shall cause MM to, deliver to KARA Sub the stock certificates for the GTFM Shares duly endorsed in favor of KARA Sub in proper form to transfer ownership to
KARA Sub of such shares free and clear of any and all Encumbrances. 

        (b)   MM
shall, and TMM shall cause MM to, deliver to KARA Sub the KARA Sub Note, duly endorsed for transfer to KARA Sub free and clear of any and all Encumbrances, other than
Encumbrances arising solely by operation of law, and KCS shall cause KARA Sub to issue and deliver to MM the KARA Sub Common Stock. 

        (c)   KCS
and KARA Sub shall file the Certificate of Merger with the Secretary of State of Delaware to effect the Merger. 

        (d)   The
Parties shall deliver and receive, respectively, the opinions of counsel referred to in Section 8.2(f) and 8.3(e) and the officers' certificates referred to
in Section 8.2(c) and 8.3(c). 

        (e)   KCS
and Consultant shall execute and deliver the Consulting Agreement, which shall become effective on the first business day following the Closing Date. 

        (f)    KCS
and TMM shall execute and deliver the Marketing and Services Agreement. KCS, TMM and the other parties thereto shall execute and deliver the Stockholders' Agreement
and the Registration Rights Agreement. 

        (g)   TMM
and KCS shall execute and deliver an agreement by which TMM assigns its rights, and KCS assumes TMM's obligations, to purchase TFM stock pursuant to the Put
Agreement and indemnifying TMM from KCS's non-performance of such obligations, such agreement to be substantially in the form of Exhibit C hereto. 

        (h)   To
the extent in the possession of TMM or MM, TMM and MM shall, and TMM shall cause MM to, deliver to GTFM all files and books of account, including business, financial
and tax records, of GTFM, including, without limitation, minute books, stock record books, the Concession Agreement and supporting exhibits and records relating thereto and work papers. In addition,
TMM and MM shall, and TMM shall cause MM to, deliver to GTFM or KCS such other documents, resolutions, appointments, powers of attorney and instruments of transfer necessary or appropriate to
implement this Agreement and effect the transactions contemplated hereby and by the Ancillary Agreements, in each case as KCS may reasonably request and in form and substance reasonably acceptable to
KCS. 

3

 

        (i)    MM
shall cause the Secretary of GTFM to make the corresponding notation in the Stock Registry Book of GTFM evidencing KARA Sub as the record, legal and beneficial owner
of the GTFM Shares as of the Closing Date. 

        (j)    The
written resignations of all directors and officers (or, as to officers, evidence reasonably acceptable to KCS of corporate action sufficient to effect their removal
and replacement) of GTFM and GTFM Subsidiaries effective as of the Closing Date, except for those persons identified on Exhibit D as to continue in office, shall be delivered to KCS,
accompanied by evidence reasonably satisfactory to KCS that prior to such resignation, the election of the successors to directors resigning was approved by at least two-thirds of the
entire Board of Directors of such corporations. 

        (k)   All
actions taken at the Closing pursuant to this Agreement shall be deemed to have been taken simultaneously and no actions or transactions will be deemed to have taken
place, or documents delivered, or payments made, unless all actions and transactions have been completed and all documents have been executed and delivered. 

        Section 4.3 Conversion of Securities.    At the Effective Time, by virtue of the Merger and without any other action on the part
of any Party: 

        (a)   each
share of KARA Sub Common Stock issued and outstanding immediately prior to the Effective Time and held of record and beneficially by MM shall be converted into and
exchanged for 180,000 shares of Class A Common Stock of the Surviving Company, representing in the aggregate 18,000,000 shares of Class A Common Stock of the Surviving Company and having
the par value and the rights and limitations described in Article Fourth of Exhibit A to this Agreement; 

        (b)   each
share of KARA Sub Common Stock issued and outstanding immediately prior to the Effective Time and held of record and beneficially by KCS shall be cancelled; 

        (c)   each
share of KCS Common Stock, and each share of KCS Preferred Stock, issued and outstanding immediately prior to the Effective Time shall remain issued and outstanding
as one share of Common Stock, and one share of Preferred Stock, respectively, of the Surviving Company, having the par value and the rights and limitations described in Article Fourth of
Exhibit A to this Agreement; 

        (d)   each
share of KCS Common Stock and each share of KCS Preferred Stock that is owned by KCS immediately prior to the Effective Time as treasury stock shall remain as one
share of treasury stock of the Surviving Company having the par value and the rights and limitations described in Article Fourth of Exhibit A to this Agreement; and 

        (e)   each
option to acquire KCS Common Stock issued and outstanding immediately prior to the Effective Time shall be adjusted as necessary to provide that, at the Effective
Time, such option shall be deemed an option to acquire, on the same terms and conditions as were applicable under such option, the number of shares of Common Stock of the Surviving Company equal to
the number of shares of KCS Common Stock subject to such option. 

ARTICLE 5

REPRESENTATIONS AND WARRANTIES OF SELLERS  

        Except as set forth in the disclosure schedule attached as Exhibit E to this Agreement (the "Seller Disclosure Schedule"), TMM, TMMH and MM ("Sellers"),
jointly and severally, represent and warrant to KCS as follows: 

 Section 5.1 Organization and Related Matters.  

        (a)   TMM
is a sociedad anonima, duly formed, validly existing and in good standing under the laws of the UMS. TMM has the
corporate power and authority necessary to carry on its business in the manner as it is now being conducted and to own, lease and operate all of its properties and assets. The 

4

 

copy
of TMM's Corporate Charter and Bylaws previously provided to KCS is a complete and correct copy of such instrument as in effect on the date hereof. Sellers have provided KCS with an English
translation of such documents. 

        (b)   TMMH
is a S.A. de C.V., duly formed, validly existing and in good standing under the laws of the UMS. TMMH has the corporate power and authority necessary to carry on
its business in the manner it is now being conducted and to own, lease and operate all of its properties and assets. TMMH is a subsidiary of TMM, which owns all of the issued and outstanding capital
stock of TMMH, except as set forth in Section 5.1 of the Seller Disclosure Schedule. 

        (c)   MM
is a S.A. de C.V., duly formed, validly existing and in good standing under the laws of the UMS. MM has the corporate power and authority necessary to carry on its
respective business in the manner it is now being conducted and to own, lease and operate all of its properties and assets. MM is a subsidiary of TMMH, which owns all of the issued and outstanding
capital stock of MM, except as set forth in Section 5.1 of the Seller Disclosure Schedule. 

        (d)   GTFM
is a S.A. de C.V., duly formed, validly existing and in good standing under the laws of the UMS, and each of the GTFM Subsidiaries is a S.A. de C.V. or other
business entity duly formed, validly existing and in good standing under the laws of the UMS. GTFM has the corporate power and authority necessary to carry on its business in the manner it is now
being conducted and to own, lease and operate all of its properties and assets. 

        (e)   Each
of TMM, TMMH, MM, GTFM and the Subsidiaries of GTFM is duly licensed or qualified to do business in each jurisdiction in which the nature of the business conducted
by it or the character or location of the properties and assets owned, leased or operated by it makes such qualification or licensing necessary, except in jurisdictions where the failure of such
license or qualification would not individually or in the aggregate have a GTFM Material Adverse Effect. 

        (f)    The
copies of the Corporate Charter and Bylaws of each of TMMH, MM, GTFM, and of each of the GTFM Subsidiaries, delivered to KCS by TMM prior to the execution of this
Agreement are complete and correct copies of such instruments as in effect on the date hereof and Sellers have provided KCS with English translations of such documents. 

        Section 5.2 Authorized Capitalization.    The authorized capital stock of GTFM consists of (i) 25,500 shares of Series
"A" fixed capital, of which 25,500 shares are held by MM, (ii) 3,842,901 shares of Series "A" variable capital, of which 3,842,901 shares are held by MM, (iii) 24,500 shares of Series
"B" fixed capital, of which 24,500 shares are held by NAFTA Rail, S.A. de C.V., (iv) 3,692,199 shares of Series "B" variable capital, of which 3,692,199 shares are held by NAFTA Rail, S.A. de
C.V., and (v) 2,478,470 shares of Series "LII" variable capital, of which 2,478,470 are held by TFM. Except as set forth in Section 5.2 of the Seller Disclosure Schedule, there are no
other shares of capital stock of GTFM or other ownership interests in GTFM issued, reserved for issuance or outstanding. All of the shares of capital stock of GTFM outstanding are duly authorized,
validly issued, fully paid and nonassessable and free of any preemptive rights and are not subject to any voting trust agreement (or similar agreement), or other Contract restricting or otherwise
relating to the voting, dividend rights or disposition of such shares to which GTFM or any of the Sellers is a party or by which GTFM or any of the Sellers is bound. Except as set forth in this
Section 5.2, there is no outstanding option, warrant, convertible or exchangeable security, right, subscription, call, right of first refusal, legally binding commitment, preemptive right or
other agreement or right of any kind to which GTFM or the Sellers are a party or are otherwise bound entitling any Person to purchase or otherwise acquire (including by exchange or conversion) from
GTFM or any GTFM Subsidiary any shares of capital stock of GTFM. Except as set forth in the Put Agreement, there are no outstanding obligations of GTFM or any of its Subsidiaries to redeem, repurchase
or otherwise acquire any of the shares of capital stock of GTFM or any shares of capital stock (or other ownership interests) of any of its Subsidiaries. Neither GTFM nor any GTFM Subsidiary has
outstanding any bonds, debentures, notes or other indebtedness generally 

5

 

having
the right to vote (or convertible into, or exchangeable for, Securities having the right to vote) on any matters on which holders of shares of capital stock of GTFM may consent or vote ("GTFM
Voting Debt"). There are no options, warrants, rights, convertible or exchangeable Securities, "phantom" interests or other ownership interest appreciation rights, commitments, Contracts, arrangements
or undertakings of any kind to which GTFM or any of its Subsidiaries is a party or by which any of them is bound (i) obligating GTFM or any of its Subsidiaries or any other Person to issue,
deliver or sell, or cause to be issued, delivered or sold, existing or additional shares of capital stock of GTFM or capital stock (or other ownership interests) of any GTFM Subsidiary, or any
security convertible into or exercisable or exchangeable for any of the foregoing or for GTFM Voting Debt, (ii) obligating GTFM or any GTFM Subsidiary or any other Person to issue, grant,
extend or enter into any such option, warrant, call, right, security commitment, Contract, arrangement or undertaking, (iii) that give any Person the right to receive any economic benefit or
right similar to or derived from the economic benefits and rights accruing to holders of the shares of capital stock of GTFM or capital stock (or other ownership interests) of any GTFM Subsidiary or
(iv) that give rise to a right to receive any payment from GTFM or any GTFM Subsidiary upon the execution of this Agreement or the consummation of the Merger or any of the other transactions
contemplated hereby, except as set forth in this Section 5.2. Notwithstanding the disclosures set forth in Section 5.2 of the Seller Disclosure Schedule or otherwise, the shares of GTFM
to be purchased by KARA Sub from MM pursuant to this Agreement shall be acquired by KARA Sub free and clear of any and all Encumbrances, except for any Encumbrances created by KARA Sub or its
Affiliates or by operation of law. 

 Section 5.3 GTFM and GTFM Subsidiaries.  

        (a)   Section 5.3
of the Seller Disclosure Schedule lists each Subsidiary of GTFM (the "GTFM Subsidiaries") and their respective jurisdictions of incorporation or
organization and the outstanding shares of capital stock and other ownership interests, if any, of the GTFM Subsidiaries, and the record owner thereof. All of the outstanding shares of capital stock
of, or other equity interests in, each of the GTFM Subsidiaries have been validly issued and are fully paid and nonassessable and such shares or interests owned directly or indirectly by GTFM free and
clear of all Encumbrances and free of any restriction on the right to vote, sell or otherwise dispose of such capital stock or other ownership interests, except as set forth in Section 5.3 of
the Seller Disclosure Schedule. Except for the capital stock or other ownership interests of the GTFM Subsidiaries as set forth on Section 5.3 of the Seller Disclosure Schedule, GTFM does not
beneficially own directly or indirectly any capital stock, membership interest, partnership interest, joint venture interest or other equity interest in any Person. 

        (b)   Neither
GTFM nor any of the GTFM Subsidiaries engage in or conduct any business other than as set forth in the GTFM Form 20-F, or as set forth in
Section 5.3 of the Seller Disclosure Schedule. Neither GTFM nor any of the GTFM Subsidiaries has taken any action or commenced or threatened any legal proceeding for the administration,
winding-up or provisional winding-up or dissolution of GTFM or any of the GTFM Subsidiaries or seeking to enter into any arrangement or composition for the benefit of
creditors, or for the appointment of a receiver, administrator, administrative receiver, trustee or similar officer of any of the properties, revenues, undertakings or assets of GTFM or any of the
GTFM Subsidiaries, nor have any orders been made for any of the foregoing. 

 Section 5.4 Authority; No Violation.  

        (a)   TMM,
TMMH and MM each has full corporate power and authority to execute and deliver this Agreement and the Ancillary Agreements to which it is a party, to perform its
obligations hereunder and thereunder and to consummate the transactions contemplated hereby and thereby. The execution and delivery of this Agreement and the Ancillary Agreements to which it is a
party and the consummation of the transactions contemplated hereby and thereby have been duly and validly 

6

 

authorized
by all requisite action on their respective parts, and no other corporate action on the part of TMM, TMMH or MM is necessary to approve this Agreement or the Ancillary Agreements to which
it is a party or to authorize or consummate the transactions contemplated hereby or thereby, other than approvals from the shareholders of TMM and MM. TMM has received the opinion of JP Morgan
Securities, Inc. that the consideration to be received in the Acquisition is fair from a financial point of view to TMM. This Agreement and the Ancillary Agreements to which it is a party have
been duly and validly executed and delivered by TMM, TMMH and MM (except for those Ancillary Agreements that are not dated the date hereof, which Ancillary Agreements shall be duly and validly
executed and delivered prior to the Closing) and (assuming the due authorization, execution and delivery of this Agreement and the Ancillary Agreements by the other Parties hereto and thereto)
constitute valid and binding obligations of TMM, TMMH and MM (except for those Ancillary Agreements that are not dated the date hereof, which Ancillary Agreements shall constitute valid and binding
obligations of TMM, TMMH and MM at the Closing), enforceable against TMM, TMMH and MM in accordance with their terms, except as (i) the enforceability thereof may be subject to or limited by
bankruptcy, insolvency, reorganization, moratorium or similar laws relating to or affecting the rights of creditors generally and the availability of equitable relief (whether in proceedings at law or
in equity) and (ii) rights to indemnification may be limited by the Securities Laws and the policies underlying such laws. 

        (b)   Neither
the execution and delivery of this Agreement or the Ancillary Agreements to which it is a party by TMM, TMMH or MM nor the consummation by TMM, TMMH or MM of any
of the transactions contemplated hereby or thereby to be performed by them, nor compliance by TMM, TMMH or MM with any of the terms or provisions hereof or thereof, will (i) violate any
provision of the Charter or Bylaws of TMM, TMMH or MM or the charter or bylaws or comparable organizational documents of GTFM or any GTFM Subsidiary or (ii) assuming that the consents and
approvals referred to in Section 5.5 are duly obtained, (x) violate, conflict with or require any notice, filing, consent, waiver or approval under any Applicable Law to which TMM, TMMH,
MM, GTFM or the GTFM Subsidiaries or any of their respective properties, Contracts or assets are subject, or (y) violate, conflict with, result in a breach of any provision of or the loss of
any benefit under, constitute a default (or an event which, with or without notice or lapse of time, or both, would constitute a default) under, result in the termination of or a right of termination
or cancellation under, accelerate or result in a right of acceleration of the performance required by, result in the creation of any liability under, result in the creation of any Encumbrance other
than any Permitted Encumbrance upon the properties, Contracts or assets of TMM, TMMH, MM, GTFM or the GTFM Subsidiaries under, or require any notice, approval, waiver or consent under, any note, bond,
mortgage, indenture, deed of trust, license, lease, agreement or other instrument or obligation to which TMM, TMMH, MM, GTFM or any of the GTFM Subsidiaries is a party, or by which TMM, TMMH, MM, GTFM
or any of the GTFM Subsidiaries or any of their properties or assets may be bound or affected, except, in the case of this clause (ii), as set forth in Section 5.4 of the Seller
Disclosure Schedule or as would not have or be reasonably expected to have, individually or in the aggregate, a GTFM Material Adverse Effect or result in an Encumbrance on the GTFM Shares. 

        Section 5.5 Consents and Approvals.    Except (i) as set forth in Section 5.5 of the Seller Disclosure Schedule
and in the Ancillary Agreements, (ii) the prior approval of the Mexican Foreign Investments Commission, (iii) clearance by the Mexican Antitrust Commission, (iv) notice to the
Mexican Ministry of Communications and Transportation, (v) compliance with and filings under the Securities Laws as may be required in connection with this Agreement and the Ancillary
Agreements and the transactions contemplated hereby and thereby, (vi) any required filings with the NYSE, (vii) the filing of the Certificate of Merger, (viii) consents from the
holders of TMM's outstanding 91/2% Notes due 2003 (the "2003 Notes") and 101/4% Notes due 2006 (the "2006 Notes"), and (ix) the expiration or earlier termination
of the waiting period under the HSR Act, no consents or approvals of, or filings, declarations or registrations with any Governmental Authority, any third party or any other Person are 

7

 

necessary
on the part of the Sellers in connection with the execution and delivery by each Seller of this Agreement or the Ancillary Agreements to which it is a party and the consummation by the
Sellers of the Acquisition and the other transactions contemplated by this Agreement and the Ancillary Agreements other than such consents, approvals, filings, declarations or registrations which if
not obtained would not reasonably be expected to have a GTFM Material Adverse Effect. To the best of Sellers' Knowledge, no control share, anti-takeover or similar statute under the laws
of the UMS is applicable to the transactions contemplated hereby or by the Ancillary Agreements. 

        Section 5.6 Financial Statements; Undisclosed Liabilities.    The audited consolidated financial statements of GTFM and its
consolidated Subsidiaries for the period ended December 31, 2002, as approved by the shareholders of GTFM, previously provided to KCS (the "GTFM Financial Statements") present fairly, in all
material respects, in conformity with IAS applied on a consistent basis (except as may be indicated in the notes thereto), the consolidated financial position of GTFM and its consolidated Subsidiaries
as of the dates thereof and their consolidated results of operations and cash flows for the periods then ended (subject, in the case of the unaudited interim financial statements, to normal
year-end adjustments). The reconciliation ("Reconciliation") to U.S. GAAP from IAS of the GTFM Financial Statements, provided by GTFM to KCS, fairly presents in all material respects all
adjustments necessary to reflect the presentation of such financial statements on a U.S. GAAP basis. Except as set forth in the GTFM Financial Statements, neither GTFM nor any of its Subsidiaries has
any liabilities or obligations of any nature (whether accrued, absolute, contingent or otherwise) required by IAS, or the Reconciliation, to be set forth on a consolidated balance sheet of GTFM and
the consolidated GTFM Subsidiaries or in the notes thereto or which, individually or in the aggregate, could reasonably be expected to have a GTFM Material Adverse Effect. 

        Section 5.7 Contracts.    Section 5.7 of the Seller Disclosure Schedule sets forth a complete and accurate list or
description, as of the date of this Agreement, of all Contracts: (i) that are between GTFM or any of the GTFM Subsidiaries, on the one hand, and Sellers or any Affiliate of Seller (other than
GTFM and its Subsidiaries) on the other hand, (ii) which constitute nondisclosure agreements or confidentiality agreements which could reasonably be expected to have a significant effect on the
conduct of the GTFM Business or the business of the Surviving Company; (iii) pursuant to which GTFM or any of its Subsidiaries is either obligated to pay or entitled to receive in excess of
$10 million in any year (that is not otherwise required to be disclosed pursuant to this Section 5.7); (iv) that are employment, management, consulting or severance agreements
with any officer or director of GTFM or any of its Subsidiaries; (v) that include any noncompetition or nonsolicitation covenant or any exclusive dealing or similar arrangement that limits the
ability of GTFM or any of its Subsidiaries to compete (geographically or otherwise) in any line of business or which would so limit the Surviving Company or any of its Subsidiaries after the Effective
Time or (vi) trackage rights agreements, interline or interchange agreements with other railroads (collectively, the "Scheduled Contracts"). As of the date hereof, each of the Contracts is a
legal, valid and binding obligation of GTFM or its Subsidiaries (assuming the due authorization, execution and delivery by the other Parties thereto) and is in full force and effect and enforceable in
accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium and similar laws relating to or affecting creditors generally and by the
availability of equitable remedies (whether in proceedings at law or in equity). As of the date of this Agreement, neither GTFM nor any of its Subsidiaries has received notice of cancellation of or
default under or intent to cancel or call a default under any of the Scheduled Contracts. Assuming receipt of the consents and approvals set forth in Section 5.5, to the best of the Sellers'
Knowledge, nothing has occurred which with or without notice or lapse of time or both would constitute a material breach of or a material default under any of the Scheduled Contracts. 

8

 

 Section 5.8 Intellectual Property Rights.  

        (a)   With
respect to all Intellectual Property used in the conduct of the GTFM Business, GTFM or a Subsidiary of GTFM either has all right, title and interest in or valid and
binding rights under Contract to use such Intellectual Property, except where the failure to have such rights would not reasonably be expected to have a GTFM Material Adverse Effect. Except as
disclosed in Section 5.8 of the Seller Disclosure Schedule or as would not reasonably be expected to have a GTFM Material Adverse Effect, (i) all registrations with and applications to
Governmental Authorities in respect of Intellectual Property owned by GTFM or a Subsidiary of GTFM are valid and in full force and effect, (ii) there are no material restrictions on the direct
or indirect transfer of any Contract, or any interest therein, held by GTFM or any Subsidiary in respect of such Intellectual Property, (iii) to the Knowledge of the Sellers neither GTFM nor
any Subsidiary of GTFM is in default (or with the giving of notice or lapse of time or both, would be in default) in any material respect under any Contract to use such Intellectual Property and
(iv) to the Knowledge of the Sellers, such Intellectual Property is not being infringed by any other Person. Neither GTFM nor any Subsidiary of GTFM has received notice that GTFM or any
Subsidiary of GTFM is infringing in any material respect any Intellectual Property of any other Person, to the Knowledge of Sellers, no claim is pending or has been made to such effect that has not
been resolved and, to the Knowledge of the Sellers, neither GTFM nor any Subsidiary of GTFM is infringing any Intellectual Property of any other Person the effect of which, individually or in the
aggregate, could reasonably be expected to have a GTFM Material Adverse Effect. TMM shall transfer to GTFM or KCS, effective upon the closing, all right, title and interest in and to that certain
trademark of mixed type, owned by TMM, registered with the Mexican Institute of Industrial Property under number 53951, class 37, in connection with the name "TFM" and its design, and shall
execute and deliver all documents reasonably required by KCS to effect such transfer to the transferee and its successors and assigns. 

 Section 5.9 Employee Benefit Matters.  

        (a)   Section 5.9
of the Seller Disclosure Schedule sets forth a true and complete list of each material pension plan, deferred compensation plan, retirement income
plan, stock option or stock purchase plan, profit sharing plan, bonus plan or policy, employee group insurance plan, hospitalization plan, disability plan or other employee benefit plan, program,
policy or practice, formal or informal, funded or unfunded, to any current or former director, officer or employee (or to any dependent or beneficiary thereof) of GTFM or any Subsidiary of GTFM under
which GTFM or any Subsidiary of GTFM has any present or future material obligation or liability, whether actual or contingent. Each such plan, agreement, program, policy and arrangement shall be
referred to as a "Benefit Plan." Each Benefit Plan is further designated in Section 5.9 of the Seller Disclosure Schedule as either currently or formerly maintained, sponsored or contributed to
by GTFM (a "GTFM Benefit Plan") or by any other entity (in which case such entity is identified). Neither GTFM nor any GTFM Subsidiary, nor to the Knowledge of Sellers, any other Person, has any
express or implied commitment, whether legally enforceable or not, to modify, change or terminate any GTFM Benefit Plan, other than with respect to a modification, change or termination required by
Applicable Law. 

        (b)   With
respect to each Benefit Plan, GTFM has delivered or made available to KCS true, current, correct and complete copies of (i) each Benefit Plan (or, if not
written, a written summary of its material terms), including without limitation all plan documents, adoption agreements, trust agreements, insurance Contracts or other funding vehicles and all
amendments thereto, (ii) any summaries and summary plan descriptions, including any summary of material modifications, distributed to Benefit Plan participants, (iii) the most recent
actuarial report or other financial statement relating to such Benefit Plan, as applicable, and (iv) all filings made with any Governmental Authorities with respect to any Benefit Plan. 

9

 

        (c)   Each
Benefit Plan has been administered in material compliance with its terms and all Applicable Laws and material contributions required to be made under the terms of
any of the Benefit Plans as of the date of this Agreement have been timely made or, if not yet due, have been properly reflected in the GTFM Financial Statements. With respect to the Benefit Plans, no
event has occurred and there exists no condition or set of circumstances in connection with which GTFM could be subject to any material liability (other than for liabilities to pay benefits) under the
terms of, or with respect to, such Benefit Plans, or any Applicable Law. 

        (d)   Except
as disclosed in Section 5.9 of the Seller Disclosure Schedule: (i) there has been no prohibited transaction (within the meaning of Applicable Law)
with respect to any Benefit Plan that could result in material liability to GTFM or the Surviving Company, (ii) each Benefit Plan can be amended, terminated or otherwise discontinued after the
Effective Time in accordance with its terms, without material liability (other than liability for ordinary administrative expenses typically incurred in a termination event), (iii) no suit,
administrative proceeding, action or other litigation has been brought or, to the Knowledge of Sellers, is threatened, against or with respect to any such Benefit Plan, including any audit or inquiry
by any Governmental Authority, (iv) all tax, annual reporting and other governmental filings required have been timely filed with the appropriate Governmental Authority and all notices and
disclosures have been timely provided to participants and (v) each Benefit Plan meets the requirement for deductibility under the law and regulations of the UMS. 

        (e)   No
Benefit Plan exists, and no other payment shall be made that, as a result of the execution of this Agreement or the transactions contemplated by this Agreement
(whether alone or in connection with a subsequent event), could result in the payment to any employee of the GTFM Group of any money or other property or could result in the increase, acceleration or
provision of any payments, other rights or benefits to any such employee. 

 Section 5.10 Labor and Other Employment Matters.  

        (a)   Sellers
have made available to KCS a complete and accurate list (giving name, job title and current payroll compensation of each current employee of each company in the
GTFM Group. None of the members of the GTFM Group has any responsibility or liability to any of its employees for any delinquent payments of wages, salaries, commissions, bonuses or other direct
compensation for any services performed for it or amounts required to be reimbursed to such employee or paid to such employee for mandatory profit sharing, housing, mandatory retirement benefits,
vacation benefits or social security benefits required under Mexican law in an amount that would have a GTFM Material Adverse Effect. 

        (b)   Except
as would not reasonably be expected to have a GTFM Material Adverse Effect, each of the members of the GTFM Group (i) are in compliance in all material
respects with all Applicable Law respecting labor, employment, immigration, fair employment practices, terms and conditions of employment, workers' compensation, occupational safety, plant closings,
wages and hours and any other Law applicable to any of their employees, and (ii) has withheld all amounts required by Applicable Law or by agreement to be withheld from the wages, salaries, and
other payments to employees, and (iii) is not liable for any arrears of wages or any Taxes or any penalty for failure to comply with any of the foregoing. 

        (c)   No
current officer of any member of the GTFM Group has given notice of termination of employment to the GTFM Group, nor do Sellers otherwise have any Knowledge, that any
such officer intends to terminate his or her employment with the GTFM Group. 

        (d)   The
Mexican Railway Workers Union (El Sindicato deTrabajadores Ferrocarrileros de la Republica Mexicana) is the only
trade union or labor union representing any employees of GTFM or any of its Subsidiaries. Sellers have provided to KCS a true and complete copy of the collective bargaining agreement and any
amendments thereof. Neither GTFM nor any of its Subsidiaries is a 

10

 

party,
or is otherwise subject, to any other collective bargaining agreement or other labor union contract applicable to its employees. There are no material activities or proceedings by a labor union
or representative thereof to organize any employees of GTFM or any of its Subsidiaries. There are no pending negotiations between GTFM or any of its Subsidiaries and any labor union or representative
thereof regarding any proposed material changes to any existing collective bargaining agreement and no such collective bargaining agreement is subject to expiration or renewal within one year after
the date hereof or the extension or renewal of such an agreement or the entering of any such agreement. There are no pending, and none of GTFM or any of its Subsidiaries has experienced since
December 31, 2001 any, material labor disputes, lockouts, strikes, slowdowns, work stoppages, or threats thereof nor, to the knowledge of the Sellers, has any event occurred or does any
circumstance exist that would provide a reasonable basis for any such dispute, lockout, strike, slowdown, work stoppage or threat thereof. GTFM and its Subsidiaries are not in default and have not
breached in any material respect the terms of any applicable collective bargaining or other labor union contract, and there are no material claims or grievances outstanding against GTFM, any of its
Subsidiaries, or any of their respective employees under any such agreement or contract. 

        (e)   Except
as specified in Section 5.10 of the Seller Disclosure Schedule, (i) there are no claims, disputes or actions pending, or to the Knowledge of Sellers
threatened, between GTFM or any of its Subsidiaries, on the one hand, and any of their employees, on the other hand, and (ii) to the Knowledge of Sellers, there are no facts or circumstances
involving any employee that would form the basis of, or give rise to, any cause of action, including, without limitation, unlawful termination based on discrimination of any kind, except in case of
such clause (i) or (ii) as would not reasonably be expected to have, individually or in the aggregate, a GTFM Material Adverse Effect. 

 Section 5.11 Tax Matters.  

        (a)   Except
as set forth in Section 5.11 of the Seller Disclosure Schedule or as would not have a GTFM Material Adverse Effect, all Tax Returns and reports of GTFM and
the GTFM Subsidiaries required to be filed on or before the Closing Date have been duly and timely filed (taking into account all proper extensions) with the appropriate Taxing Authorities and all
such Tax Returns were complete, correct and accurate. All Taxes shown on such Tax Returns as owed by GTFM or the GTFM Subsidiaries have been paid. 

        (b)   Except
as set forth in Section 5.11 of the Seller Disclosure Schedule, neither GTFM nor any of the GTFM Subsidiaries has received any written notice of deficiency
or assessment from any Taxing Authority with respect to material liabilities for Taxes of GTFM or any of the GTFM Subsidiaries which have not been paid or finally settled. No claim has ever been made
in writing by an authority in a jurisdiction where GTFM or any of the GTFM Subsidiaries do not file Tax Returns that such entity is or may be subject to taxation by that jurisdiction. Except as set
forth in Section 5.11 of the Seller Disclosure Schedule, no audit of any Tax Return concerning GTFM or any of the GTFM Subsidiaries is pending, being conducted, or to the Knowledge of Sellers,
threatened to be instituted by a Taxing Authority. Except as set forth in Section 5.11 of the Seller Disclosure Schedule, neither GTFM nor any of the GTFM Subsidiaries has in effect a waiver of
any statute of limitation in respect of Taxes or agreed to any extension of time with respect to a Tax assessment or deficiency that will be in effect as of the Closing Date. 

        (c)   There
are no liens for Taxes on any assets of GTFM or any of the GTFM Subsidiaries other than liens for current Taxes (i) not yet due and payable or
(ii) that would not have a GTFM Material Adverse Effect. 

        (d)   Except
as set forth in Section 5.11 of the Seller Disclosure Schedule, neither GTFM nor any of the GTFM Subsidiaries has any liability for the Taxes of any other
Person as a transferee or successor, by Contract or otherwise. 

11

 

        (e)   There
are no Tax sharing or Tax indemnity agreements or similar arrangements with respect to or involving GTFM or any of the GTFM Subsidiaries, other than agreements
among GTFM and Subsidiaries in which GTFM owns directly or indirectly all equity interest. 

        (f)    Each
of GTFM and the GTFM Subsidiaries has complied in all material respects with all applicable governmental rules relating to the payment, collection and withholding
of Taxes. 

        (g)   Except
as set forth in Section 5.11 of the Seller Disclosure Schedule, there is no Tax Litigation pending or to the Knowledge of Sellers threatened against GTFM
and/or the GTFM Subsidiaries. 

        (h)   To
the Knowledge of the Sellers neither GTFM nor any of its Subsidiaries will suffer any adverse tax consequences in the UMS from ceasing, as a result of the
Acquisition, to be members of the TMM consolidated group. 

        (i)    During
the period from the date of the GTFM Financial Statements until the date of this Agreement, GTFM and each of the GTFM Subsidiaries (i) have made no change
in any accounting method used for Tax purposes or in depreciation or amortization policies, and have made no election for Tax purposes which is not consistent with the method, policies and elections
made prior to the date of the GTFM Financial Statements; and (ii) have not settled any pending Tax audits or settled any Tax liability. 

        Section 5.12 Legal Proceedings.    Except as set forth in Section 5.12 of the Seller Disclosure Schedule, there are no
legal, administrative, arbitral or other proceedings (including disciplinary proceedings), claims, suits, actions or governmental or regulatory investigations of any nature whether in the UMS or
elsewhere (collectively, "Proceedings") that are pending or, to the Knowledge of Sellers, threatened against GTFM or any of the GTFM Subsidiaries or any of their respective directors or officers (in
their capacity as such) or the GTFM Assets or the GTFM Business, which if determined adversely would have a GTFM Material Adverse Effect, or that challenge the validity or propriety of the
transactions contemplated by this Agreement or by any of the Ancillary Agreements. There is no injunction, order, judgment or decree imposed upon GTFM or any of the GTFM Subsidiaries, any material
portion of the GTFM Assets or the GTFM Business. 

 Section 5.13 Permits and Compliance.  

        (a)   Section 5.13
of the Seller Disclosure Schedule sets forth a true and complete list of all licenses, franchises, concessions, decrees, permits and authorizations
required under Applicable Law (collectively, "Permits") currently held by GTFM and each of its Subsidiaries and which are required to operate the GTFM Business as currently conducted where the failure
to hold such Permits would reasonably be expected to have a GTFM Material Adverse Effect. Each of GTFM and its Subsidiaries (i) holds, and at all times has held, and at Closing will hold, all
Permits for the lawful ownership, operation and use of the GTFM Assets and the conduct of the GTFM Business, (ii) has been and is in compliance with each such Permit, and (iii) has not
received notice asserting any violation of any such Permit, in each case, where the failure to hold or comply or such violation would reasonably be expected to have a GTFM Material Adverse Effect. 

        (b)   Except
for normal examinations conducted by any Governmental Authority in the regular course of the business of GTFM and its Subsidiaries or as would not reasonably be
expected to have a GTFM Material Adverse Effect, since December 31, 2001, no Governmental Authority has provided written notice to GTFM or any of its Subsidiaries of any threatened proceeding
or investigation into the business or operations of GTFM or any of its Subsidiaries or any of their members, officers, directors or employees in their capacity as such with GTFM or any of its
Subsidiaries and, to the Knowledge of the Sellers, no such proceedings or investigations are contemplated. There is no unresolved deficiency, violation or exception claimed or asserted by any
Governmental Authority with respect to any examination of any of GTFM or any of its Subsidiaries. 

12

 

        (c)   Neither
GTFM nor any of its Subsidiaries is in violation of any Applicable Laws or orders of any Governmental Authority except as would not reasonably be expected to
have a GTFM Material Adverse Effect. No event has occurred or exists that would (with or without notice or lapse of time) give rise to any obligation on the part of GTFM or any of its Subsidiaries to
undertake or to bear all or any portion of the cost of any remedial action of any nature which would reasonably be expected to have a GTFM Material Adverse Effect. 

        (d)   Without
limiting the generality of the foregoing, to the Knowledge of Sellers no basis exist for revocation, material modification or termination prior to the
expiration, of the concession held by TFM to operate rail freight transportation services in Mexico. 

        Section 5.14 Environmental Matters.    GTFM and each of its Subsidiaries (i) are in compliance with, and are not subject
to any liability under, in each case with respect to all, applicable Environmental Laws; (ii) hold all Environmental Permits necessary to conduct their current operations and (iii) are
in compliance with their respective Environmental Permits, except where the failure to hold or be in compliance with such Environmental Permits would not be expected to have a GTFM Material Adverse
Effect. Except as would not reasonably be expected to have a GTFM Material Adverse Effect, neither GTFM nor any of its Subsidiaries has received any written notice, demand, letter, claim or request
for information alleging that GTFM or any of its Subsidiaries may be in violation of, or liable under, any Environmental Law. Neither GTFM nor any of its Subsidiaries (x) has entered into or
agreed to any consent decree or order or is subject to any judgment, decree or judicial order relating to compliance with Environmental Laws, Environmental Permits or the investigation, sampling,
monitoring, treatment, remediation, removal or cleanup of Hazardous Materials and no investigation, litigation or other proceeding is pending or, to the Knowledge of the Sellers, threatened, with
respect thereto or (y) is an indemnitor or has assumed liability in connection with any pending demand, notice, claim, or other allegation, or to the Knowledge of the Sellers, any claim
threatened, by or against any third-party relating to any liability under any Environmental Law or relating to any Hazardous Materials. None of the real property owned or leased or operated by GTFM or
any of its Subsidiaries is listed or, to the Knowledge of the Sellers, proposed for listing on any list of sites maintained by Governmental Authority requiring investigation or cleanup. 

        Section 5.15 Properties.    Section 5.15 of the Seller Disclosure Schedule sets forth a true and complete list of all
real property and interests in real property owned or leased by GTFM or any of the GTFM Subsidiaries and a summary of the lease agreements with respect thereto (true and correct copies of which leases
have been provided to KCS) and a true and complete list of all personal property, equipment and fixtures (other than items having a book value of less than $1 million individually) owned by
GTFM or any of the GTFM Subsidiaries, all of which personal property, equipment and fixtures are in good condition and repair, normal wear and tear excepted. Each of GTFM and the GTFM Subsidiaries has
good and marketable title to, or valid and enforceable leasehold or concession interests in, all of its properties and tangible assets necessary to conduct the GTFM Business as currently conducted
except where the failure to have such title or interest would not reasonably be expected to have a GTFM Material Adverse Effect. All of such property and assets which constitute personal property,
equipment, and fixtures, are in good condition and repair, normal wear and tear excepted. Except as set forth in Section 5.15 of the Seller Disclosure, all of such assets and properties, other
than assets and properties in which GTFM or any of the GTFM Subsidiaries has a leasehold interest, are free and clear of all Encumbrances other than Permitted Encumbrances and Encumbrances which would
not individually or in the aggregate reasonably be expected to have a GTFM Material Adverse Effect. Each of GTFM and the GTFM Subsidiaries has complied in all material respects with the terms of all
leases and concessions (including the Concession) to which it is a party and under which it is in occupancy, and all such leases and concessions (including the Concession) are in full force and
effect. 

13

 

        Section 5.16 Insurance.    Section 5.16 of the Seller Disclosure Schedule includes a list of all policies of fire,
liability, product liability, workers' compensation, health and other forms of insurance presently in effect with respect to the GTFM Business (the "GTFM Insurance Policies"), including the named
insured(s) and all beneficiaries thereunder, and true and complete copies of the GTFM Insurance Policies have been delivered to KCS. Neither GTFM, nor any of the GTFM Subsidiaries has been refused any
insurance with respect to any aspect of the operations of its business, nor has its coverage been rescinded by any insurance carrier to which it has applied for insurance or with which it has carried
insurance. No notice of cancellation or termination has been received with respect to any such policy. The activities and operations of GTFM and each of the GTFM Subsidiaries have been conducted in a
manner so as to conform in all material respects to all material provisions of the GTFM Insurance Policies. 

        Section 5.17 No Other Broker.    Other than J.P. Morgan Chase, the fees and expenses of which have been or will be paid by TMM,
no broker, finder or similar intermediary is entitled to any broker's, finder's or similar fee or other remuneration from or as a result of engagement by, Sellers or any of their respective Affiliates
in connection with this Agreement, the Ancillary Agreements or the transactions contemplated hereby or thereby. 

        Section 5.18 No GTFM Material Adverse Effect.    Since December 31, 2002, (i) GTFM and the GTFM Subsidiaries have
conducted their respective businesses only in the ordinary course, consistent with past practice, and (ii) there has not been (x) any GTFM Material Adverse Effect or any event or
development that could, individually or in the aggregate, reasonably be expected to have a GTFM
Material Adverse Effect or (y) to the Knowledge of Sellers any event or development that would, individually or in the aggregate, reasonably be expected to materially delay or prevent the
consummation of, or the performance by Sellers or any of their respective Affiliates, of any of their obligations under, this Agreement or any of the Ancillary Agreements, to which any Seller is a
party. 

        Section 5.19 Sufficiency of and Title to Assets.    GTFM and each of the GTFM Subsidiaries owns or licenses, and upon the
consummation of the Merger, the Surviving Company and its Subsidiaries will own or license, all right, title and interest in and to all of the properties, assets, Contracts and rights of any kind,
whether tangible or intangible, real or personal (including, without limitation, the Concession), necessary to enable GTFM (prior to the Closing) and the Surviving Company (after the Closing) to
conduct the GTFM Business as presently conducted (the "GTFM Assets"), free and clear of any Encumbrances other than Permitted Encumbrances, except as set forth in Section 5.19 of the Seller
Disclosure Schedule. 

        Section 5.20 Information in Filed Documents.    None of the information regarding any of TMM, TMMH, MM, GTFM or any of the GTFM
Subsidiaries supplied or to be supplied by Sellers prior to the Closing expressly for inclusion or incorporation by reference in any documents to be filed with any Governmental Authority prior to the
Closing in connection with the transactions contemplated hereby, including, without limitation, the proxy materials to be filed with the SEC by KCS in connection with the Merger, will, at the
respective times such information is supplied, contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the
statements therein, in light of the circumstances under which they were made, not misleading. 

        Section 5.21 Transactions with Affiliates.    Except for this Agreement, the Ancillary Agreements and the other agreements
contemplated herein to be entered into in connection with the transactions contemplated hereby and thereby, no Contract, understanding or arrangement between GTFM or any of the GTFM Subsidiaries, on
the one hand, and TMM or any of its Affiliates (other than GTFM and its Subsidiaries), on the other hand, will continue in effect subsequent to the Closing Date, except as described in
Section 5.21 of the Seller Disclosure Schedule. Except as set forth in Section 5.21 of the Seller Disclosure Schedule, none of TMM or any of its Subsidiaries or Affiliates (other than
GTFM and its Subsidiaries) provides any material services to GTFM or any of the GTFM Subsidiaries, except 

14

 

pursuant
to the Management Services Agreement, originally dated as of May 9, 1997, between TMM and TFM, which agreement shall be terminated and of no further force and effect as of the
Effective Time other than with respect to amounts due or indemnification or other obligations relating to periods prior to Closing, none of which may reasonably be expected to be material individually
or in the aggregate. At the Closing Date, the Parties shall settle the net intercompany receivables as follows: (A) the parties shall calculate the amount, if any, of open accounts receivables
due over 30 days (i) from TMM Logistics, S.A. de C.V. or any other Subsidiary of TMM (other than GTFM, any of the GTFM Subsidiaries, Mexrail or any subsidiary of Mexrail), on the one
hand, to GTFM or any of the GTFM Subsidiaries or Mexrail or any Subsidiary of Mexrail, on the other hand, and (ii) from GTFM or any of the GTFM Subsidiaries or Mexrail or any Subsidiary of
Mexrail, on the one hand, to TMM Logistics, S.A. de C.V. or any other Subsidiary of TMM (other than GTFM, any of the GTFM Subsidiaries, Mexrail or any subsidiary of Mexrail), on the other hand;
(B) the Parties shall calculate the absolute value of the difference between the amount in clause (i), above, and the amount in clause (ii), above (the "Net Receivable Amount");
(C) if the amount in clause (i), above is greater than clause (ii), then TMM shall, or shall cause one or more of its Subsidiaries to, pay to KCS the Net Receivable Amount; and
(D) if the amount of clause (ii) is greater than clause (i), then KCS shall, or shall cause one or more its Subsidiaries to, pay to TMM the Net Receivable Amount. All calculations
required by this Section 5.21 shall be provided not later than five business days prior to the Closing. 

        Section 5.22 No Loss of Significant Customers.    From January 1, 2002 through the Business Day immediately preceding the
date of this Agreement, neither GTFM or any of the GTFM Subsidiaries has had any customer which has canceled, terminated or failed to renew any Contract with such entity which accounted for more than
$10 million in revenues to such entity in either of the last two fiscal years. 

        Section 5.23 Trading in and Ownership of KCS Common Stock.    None of Sellers or any of their respective Affiliates has, during
the sixty (60) Business Days prior to the date hereof, either directly or indirectly, bought or sold, or otherwise effected any trade in any shares of KCS Common Stock, or any Security
derivative of KCS Common Stock and none of Sellers or any of their respective Affiliates, own as of the or date of this Agreement any shares of KCS Common Stock or any security derivative of KCS
Common Stock. 

        Section 5.24 Solvency.    No insolvency or bankruptcy proceedings against TMM or any of its Subsidiaries are pending as of the
last business day preceding the date of this Agreement. 

        Section 5.25 Termination of Option Agreement.    Prior to the Closing Date, the Amended and Restated Option Agreement
between MM and The Bank of New York, as Trustee, dated October 25, 2002, as amended by Amendment Number One to the Amended and Restated Option Agreement, dated December 10, 2002 (the
"Option Agreement"), entered into in connection with the Logistics Trust 2000-A (the "Trust") formed pursuant to the Second Amended and Restated Master Trust Agreement, dated as of
December 10, 2002 (the "Master Trust Agreement"), between TMM and The Bank of New York, as Trustee, will have been terminated or amended, and the Master Trust Agreement and the Transaction
Documents (as defined in the Master Trust Agreement) shall have been terminated or amended so that as of the Closing Date (i) there shall be no outstanding option, warrant, right, subscription,
call, legally binding commitment or other agreement or right of any kind entitling any Person (including The Bank of New York, as Trustee of the Trust) to acquire, or any other Encumbrance arising
under such agreements on, any shares of capital stock of GTFM and (ii) the provision in Section 6.4 of the Option Agreement requiring a written agreement to be bound by the terms of the
Option Agreement and related agreements shall not apply to the purchase of the GTFM Shares under this Agreement and the purchase of the GTFM Shares by KARA Sub will be effective without KARA Sub or
KCS entering into any agreement to be bound by the terms of the Option Agreement and related agreements. Seller shall have provided to KARA Sub evidence reasonably 

15

 

satisfactory
to KARA Sub of such amendment or termination. Prior to the Closing Date, MM will cause each legend affixed to any stock certificates evidencing GTFM Shares pursuant to the Option
Agreement to be cancelled or removed, and MM will cause any annotation that was required by the Option Agreement to be placed in the Stockholders Registry Book of GTFM to be cancelled or removed.
Prior to the Closing Date, the Amended and Restated Put Option Agreement between MM and The Bank of New York, as Trustee, dated October 25, 2002, as amended by Amendment Number One to the
Amended and Restated Option Agreement, dated December 10, 2002, entered into in connection with the Trust shall have been terminated or amended, and the Master Trust Agreement and the
Transaction Documents (as defined in the Master Trust Agreement) shall have been terminated or amended so that as of the Closing Date there shall be no obligation of KCS, KARA Sub or any of their
Affiliates to purchase or otherwise acquire any certificate or other interest in or related to the Trust and Seller shall have provided to KARA Sub evidence reasonably satisfactory to KARA Sub of such
amendment or termination. Unless the Option Agreement is terminated or amended to make such requirement inapplicable MM shall have provided notice at or prior to the Closing date to the Trustee of the
sale of the GTFM Shares as required by Section 6.4 of the Option Agreement. 

ARTICLE 6

REPRESENTATIONS AND WARRANTIES OF KCS  

        Except as set forth in the disclosure schedule attached as Exhibit F to this Agreement (the "KCS Disclosure Schedule"), KCS hereby represents and warrants
to each of the Sellers as follows: 

 Section 6.1 Organization and Related Matters.  

        (a)   KCS
is a corporation, duly formed, validly existing and in good standing under the laws of the State of Delaware, and each of its Subsidiaries is a corporation or other
business entity duly organized, validly existing and in good standing under the laws of its jurisdiction of organization. KCS has the corporate power and authority and each of its Subsidiaries has the
corporate or other applicable power and authority necessary to carry on their respective businesses in the manner as they are now being conducted and to own, lease and operate all of their respective
properties and assets. 

        (b)   KCS
and each of its respective Subsidiaries is duly licensed or qualified to do business in each jurisdiction in which the nature of the business conducted by it or the
character or location of the properties and assets owned, leased or operated by it makes such qualification or licensing necessary except in jurisdictions where the failure of such license or
qualification would not individually or in the aggregate have a KCS Material Adverse Effect. 

 Section 6.2 Authority; No Violation.  

        (a)   Each
of KCS and KARA Sub has full corporate power and authority to execute and deliver this Agreement and the Ancillary Agreements to which it is a party, to perform its
obligations hereunder and thereunder and to consummate the transactions contemplated hereby and thereby. The execution and delivery of this Agreement and the Ancillary Agreements to which it is a
party and the consummation of the transactions contemplated hereby and thereby have been duly and validly authorized by all requisite corporate action on the part of KCS and KARA Sub and no other
corporate action on the part of KCS and KARA Sub is necessary to approve this Agreement or the Ancillary Agreements to which it is a party or authorize or consummate the transactions contemplated
hereby and thereby, except for obtaining the approval of its stockholders as described in Section 6.3. KCS has received the opinion of Deutsche Bank that the Acquisition is fair from a
financial point of view to KCS. This Agreement and the Ancillary Agreements to which it is a party have been duly and validly executed and delivered by KCS and KARA Sub (except for those Ancillary
Agreements that are not dated the date hereof, which Ancillary Agreements shall be duly and validly executed and delivered prior to the Closing) and (assuming the due authorization, execution and
delivery of this Agreement 

16

 

and
the Ancillary Agreements by the other Parties hereto and thereto) constitute valid and binding obligations of KCS and KARA Sub (except for those Ancillary Agreements that are not dated the date
hereof, which Ancillary Agreements shall constitute valid and binding obligations of KCS and KARA Sub at the Closing), enforceable against KCS and KARA Sub in accordance with their terms, except as
(i) the enforceability thereof may be subject to or limited by bankruptcy, insolvency, reorganization, moratorium or similar laws relating to or affecting the rights of creditors generally and
the availability of equitable relief (whether in proceedings at law or in equity) and (ii) rights to indemnification may be limited by the Securities Laws and the policies underlying such laws. 

        (b)   Neither
the execution and delivery of this Agreement or the Ancillary Agreements to which it is a party by KCS and KARA Sub nor the consummation by KCS and KARA Sub of
the transactions contemplated hereby or thereby to be performed by KCS and KARA Sub, nor compliance by KCS and KARA Sub with any of the terms or provisions hereof or thereof, will (i) violate
any provision of the Certificate of Incorporation or Bylaws of KCS or KARA Sub, (ii) assuming that the consents and approvals referred to in Section 6.3 are duly obtained,
(x) violate, conflict with or require any notice, filing, consent or approval under any Applicable Law to which KCS or any of its Subsidiaries or any of its properties, Contracts or assets are
subject, or (y) violate, conflict with, result in a breach of any provision of or the loss of any benefit under, constitute a default (or an event which, with or without notice or lapse of
time, or both, would constitute a default) under, result in the termination of or a right of termination or cancellation under, accelerate or result in a right of acceleration of the performance
required by, result in the creation of any liability under, result in the creation of any Encumbrance upon the properties, Contracts or assets of KCS or KARA Sub under, or require any notice, approval
or consent under, any note, bond, mortgage, indenture, deed of trust, license, lease, agreement or other instrument or obligation to which KCS or any of its Subsidiaries is a party, or by which KCS or
any of its Subsidiaries, or any of its properties or assets, may be bound or affected except in the case of this clause (ii) in each case as would not have or reasonably be expected to have a
KCS Material Adverse Effect. 

        (c)   The
shares of Class A Common Stock to be issued in the Merger, and, if KCS elects, in payment of a portion of the purchase price pursuant to Section 1.2,
have been duly authorized and, when issued as contemplated by this Agreement and the Merger Agreement as the case may be, will be duly and validly issued, fully paid and non-assessable and
free of any pre-emptive rights and entitled to the benefits and rights set forth in the Certificate of Incorporation of KCS, as in effect at the Effective Time. All shares of KCS Common
Stock issuable upon conversion of the Class A Common Stock issued in the Merger and, if KCS elects, in payment of a portion of the purchase price pursuant to Section 1.2, will be, upon
any such conversion in accordance with the terms of the Certificate of Incorporation as in effect at the Effective Time, validly issued, fully paid, and non-assessable and free of any
pre-emptive rights. 

 Section 6.3 Consents and Approvals.  

        (a)   The
affirmative vote of the holders of (i) a majority of the votes cast by all outstanding shares of KCS Common Stock and KCS Preferred Stock, voting together as
a single class, to approve (x) Amendment to KCS's Certificate of Incorporation in accordance with the Del. G.C.L. and (y) the issuance of the Class A Common Stock in accordance
with the Del. G.C.L. and the rules of the NYSE, is the only vote of the holders of any Security of KCS necessary to approve this Agreement and the other transactions contemplated by this Agreement and
the Ancillary Agreements. 

        (b)   Except
for (i) the prior approval of the Mexican Foreign Investments Commission, clearance by the Mexican Competition Commission and notice to the Mexican
Ministry of Communications and Transportation, (ii) compliance with and filings under the Securities Laws as may be required in connection with this Agreement and the Ancillary Agreements and
the transactions contemplated hereby and thereby, (iii) any required filings with the NYSE, (iv) the filing of the Certificate of Merger 

17

 

and
(v) Bank consents under Amended and Restated Credit Agreement dated June 12, 2002; no consents or approvals of, or filings, declarations or registrations with any Governmental
Authority, any third party or any other Person are necessary in connection with the execution and delivery by KCS of this Agreement and the Ancillary Agreements to which it is a party and the
consummation by KCS of the Acquisition or the other transactions contemplated by this Agreement and the Ancillary Agreements. 

        (c)   KCS
has taken or shall take prior to Closing all corporate action necessary to assure that the transactions contemplated hereby and by the Ancillary Agreements will
(i) not be prohibited by Section 203 of the Delaware General Corporation Law and (ii) not constitute a "trigger event" under the KCS Shareholder Rights Plan. To the best of KCS's
Knowledge, no other control share, anti-takeover or similar statute under the laws of any state is applicable to the transactions contemplated hereby or by the Ancillary Agreements. 

        Section 6.4 Authorized Capitalization.    The authorized capital stock of KCS consists of 400,000,000 shares of Common Stock,
$.01 par value per share, 840,000 shares of Preferred Stock, $25 par value per share and 2,000,000 shares of New Series Preferred Stock, $1.00 par value per share. As of March 31, 2003, there
were (i) 61,631,987 shares of KCS Common Stock and 242,170 shares of KCS Preferred Stock, issued and outstanding, (ii) 5,048,669 shares of KCS Common Stock reserved for issuance pursuant
to options granted pursuant to the KCS Stock Option Plan and (iii) no shares of New Series Preferred Stock outstanding. All of the shares of KCS Common Stock and KCS Preferred Stock outstanding
at the date of this Agreement are listed for trading on the NYSE. All of the shares of capital stock of KCS outstanding are duly authorized, validly issued, fully paid, nonassessable and free of any
preemptive rights and are not subject to any voting trust agreement (or similar agreement) or other Contract restricting or otherwise relating to the voting, dividend rights or disposition of such
shares to which KCS is a party, except for restricted share agreements between KCS and certain of its officers and limited stock appreciation rights. Except as set forth in this Section 6.4,
there is no outstanding option, warrant, convertible or exchangeable security, right, subscription, call, right of first refusal, legally binding commitment, preemptive right or other agreement or
right of any kind to purchase or otherwise acquire (including by exchange or conversion) from KCS or any KCS Subsidiary any shares of capital stock of KCS. There are no outstanding obligations of KCS
or any of its Subsidiaries to redeem, repurchase or otherwise acquire any of the shares of capital stock of KCS or any shares of capital stock (or other ownership interests) of any of its
Subsidiaries. Neither KCS nor any KCS Subsidiary has outstanding any bonds, debentures, notes or other indebtedness generally having the right to vote (or convertible into, or exchangeable for,
Securities having the right to vote) on any matters on which holders of shares of capital stock of KCS may consent or vote ("KCS Voting Debt"). There are no options, warrants, rights, convertible or
exchangeable Securities, "phantom" interests or other ownership interest appreciation rights, commitments, Contracts, arrangements or undertakings of any kind to which KCS or any of its Subsidiaries
is a party or by which any of them is bound (i) obligating KCS or any of its Subsidiaries or any other Person to issue, deliver or sell, or cause to be issued, delivered or sold, existing or
additional shares of capital stock of KCS or capital stock (or other ownership interests) of its Subsidiaries, or any security convertible into or exercisable or exchangeable for any of the foregoing
or for KCS Voting Debt, (ii) obligating KCS or any of its Subsidiaries or any other Person to issue, grant, extend or enter into any such option, warrant, call, right, security commitment,
Contract, arrangement or undertaking, (iii) that give any Person the right to receive any economic benefit or right similar to or derived from the economic benefits and rights accruing to
holders of the shares of capital stock of KCS or capital stock (or other ownership interests) of its Subsidiaries or (iv) that give rise to a right to receive any payment upon the execution of
this Agreement or the consummation of the Merger or any of the other transactions contemplated hereby, except as set forth in this Section 6.4. 

18

 

        Section 6.5 SEC Filings.    Since December 31, 1999, KCS has filed with the SEC all documents required to be filed by it
under the Exchange Act or the Securities Act and as of their requisite dates (or the dates of any amendments thereto) such documents (the "KCS SEC Documents") did not contain any untrue statement of a
material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein not misleading and complied in all material respects with the
applicable requirements of the Exchange Act and the Securities Act and the applicable rules of the SEC thereunder. 

        Section 6.6 Financial Statements; Undisclosed Liabilities.    The audited consolidated financial statements and unaudited
interim financial statements of KCS and its consolidated Subsidiaries included in the KCS SEC Documents (the "KCS Financial Statements") present fairly, in all material respects, in conformity with
GAAP applied on a consistent basis (except as may be indicated in the notes thereto), the consolidated financial position of KCS and its consolidated Subsidiaries as of the dates thereof and their
consolidated results of operations and cash flows for the periods then ended (subject, in the case of the unaudited interim financial statements, to normal year-end adjustments). Except as
set forth in the KCS Financial Statements or the KCS SEC Documents filed prior to the date of this Agreement, neither KCS nor any of its Subsidiaries has any liabilities or obligations of any nature
(whether accrued, absolute, contingent or otherwise) required by GAAP to be set forth on a consolidated balance sheet of KCS and the consolidated KCS Subsidiaries or in the notes thereto or which,
individually or in the aggregate, could reasonably be expected to have a KCS Material Adverse Effect. 

        Section 6.7 No Other Broker.    Other than Deutsche Bank, whose fees and expenses will be paid by KCS, no broker, finder or
similar intermediary is entitled to any broker's, finder's or similar fee or other commission from or as a result of engagement by KCS or any of its Subsidiaries in connection with this Agreement, the
Ancillary Agreements or the transactions contemplated hereby or thereby. 

        Section 6.8 Information in Filed Documents.    None of the information regarding KCS or any of its Subsidiaries supplied or to
be supplied by KCS for inclusion in any documents to be filed with any Governmental Authority prior to Closing in connection with the transactions contemplated hereby will, at the respective times
such information is supplied by KCS, contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements
therein, in light of the circumstances under which they were made, not misleading. 

        Section 6.9 No KCS Material Adverse Effect.    Since September 30, 2002, (i) KCS and its Subsidiaries have
conducted their respective businesses only in the ordinary course, consistent with past practice, (ii) there has not been any KCS Material Adverse Effect or any event or development that could,
individually or in the aggregate, reasonably be expected to have a KCS Material Adverse Effect, and (iii) to the Knowledge of KCS, there has not occurred any event or development that would,
individually or in the aggregate, reasonably be expected to prevent the consummation of the Acquisition or the performance by KCS of its obligations under this Agreement or any of the Ancillary
Agreements to which it is a party. 

        Section 6.10 KARA Sub.    The authorized capital stock of KARA Sub consists of 1,000 shares of common stock, $.01 par value per
share. There are 900 shares issued and outstanding, all of which are owned by KCS, free and clear of all Encumbrances. All of the shares of capital stock of KARA Sub outstanding are duly authorized,
validly issued, fully paid, nonassessable and free of any preemptive rights and are not subject to any voting trust agreement (or similar agreement) or other Contract restricting or otherwise relating
to the voting, dividend rights of disposition of such shares. KARA Sub is not a party to any Contract other than this Agreement. KARA Sub has not conducted any business other than in connection with
the transactions contemplated by this Agreement and the Ancillary Agreements and has incurred no material indebtedness and has no material assets. 

19

 

        Section 6.11 Legal Proceedings.    There are no Proceedings that are pending or, to the Knowledge of KCS, threatened against KCS
or any of its Subsidiaries or any of their respective directors or officers (in their capacity as such) or the KCS Assets or the KCS Business which (i) if adversely determined, would have a KCS
Material Adverse Effect or (ii) challenge the validity or propriety of the transactions contemplated by this Agreement or by any of the Ancillary Agreements. 

        Section 6.12 KCS Capital Resources.    The information set forth in the KCS Report on Form 10-K for the year
ended December 31, 2002 filed with the SEC accurately sets forth anticipated material capital expenditures required to maintain in good repair and working order the KCS Assets and to provide
for material additions to KCS property, plant and equipment necessary to conduct the business of KCS as described in such SEC Report. KCS has access to capital resources sufficient to fund such
capital expenditures in the amount and at the time required. 

        Section 6.13 Employee Benefit Matters.    Each employee benefit plan, within the meaning of Section 3(3) of the Employee
Retirement Income Security Act of 1974, as amended, ("ERISA") that is maintained, administered or contributed to by KCS or any of its Subsidiaries for employees or former employees of KCS and its
Subsidiaries has been maintained in compliance with its terms and the requirements of any applicable statutes, orders, rules and regulations, including, but not limited to, ERISA and the Internal
Revenue Code of 1986, as amended, ("Code"). No prohibited transaction, within the meaning of Section 406 of ERISA or Section 4975 of the Code, has occurred with respect to any such plan,
excluding transactions effected pursuant to a statutory or administrative exemption. For each such plan which is subject to the funding rules of Section 412 of the Code or Section 302 of
ERISA, no "accumulated funding deficiency," as defined in Section 412 of the Code, has been incurred, whether or not waived, and the fair market value of the assets of each such plan
(excluding, for these purposes, accrued but unpaid contributions) exceeds the present value of all benefits accrued under such plan as determined using reasonable actuarial assumptions. 

        Section 6.14 Labor and Other Employment Matters.    There are no existing or, to the Knowledge of KCS and its Subsidiaries,
threatened, labor disputes with employees of KCS and its Subsidiaries which would be reasonably expected to have a KCS Material Adverse Effect. 

20

           Section 6.15 Tax.    KCS and its Subsidiaries have filed all federal, state, local and foreign tax
returns which have been
required to be filed and have paid all taxes shown thereon and all assessments received by them or any of them to the extent that such taxes have become due and are not being contested in good faith,
except as would not, individually or in the aggregate, have a KCS Material Adverse Effect; and, except as disclosed in Section 6.15 of the KCS Disclosure Schedule, there is no tax deficiency
which has been or might reasonably be expected to be asserted or threatened against KCS or any of its Subsidiaries, except as would not, individually or in the aggregate, have a KCS Material Adverse
Effect. 

        Section 6.16 Permits and Compliance.    

        (a)   Except
as would not, individually or in the aggregate, have a KCS Material Adverse Effect, (i) each of KCS and its Subsidiaries owns, possesses or has obtained
all licenses, permits, certificates, consents, orders, approvals and other authorizations from, and has made all declarations and filings with, all federal, state, local and other governmental
authorities, all self-regulatory organizations and all courts and other tribunals necessary to own or lease, as the case may be, and to operate its properties and to carry on its business
as conducted as of the date hereof and (ii) neither KCS nor any of its Subsidiaries has received notice of any proceeding relating to revocation or modification of any such license, permit,
certificate, consent, order, approval or other authorization, except as described in Section 6.15 of the KCS Disclosure Schedule. 

        (b)   Except
for normal examinations conducted by any Governmental Authority in the regular course of the business of KCS and its Subsidiaries or as would not reasonably be
expected to have a KCS Material Adverse Effect, since December 31, 2001, no Governmental Authority has provided written notice to KCS or any of its Subsidiaries of any threatened proceeding or
investigation into the business or operations of KCS or any of its Subsidiaries or any of their members, officers, directors or employees in their capacity as such with KCS or any of its Subsidiaries. 

        (c)   Neither
KCS nor any of its Subsidiaries is in violation of any Applicable Laws or orders of any Governmental Authority, except as would not reasonably be expected to
have a KCS Material Adverse Effect. No event has occurred or exists that would (with or without notice or lapse of time) give rise to any obligation on the part of KCS or any of its Subsidiaries to
undertake or to bear all or any portion of the cost of any remedial action of any nature which would reasonably be expected to have a KCS Material Adverse Effect. 

        Section 6.17 Environmental Matters.    KCS and each of its Subsidiaries (i) are in compliance with, and are not subject
to any liability under, in each case, all applicable Environmental Laws; (ii) hold all Environmental Permits necessary to conduct their current operations and (iii) are in compliance
with their respective Environmental Permits, except where the failure to hold or be in compliance with such Environmental Permits would not reasonably be expected to have a KCS Material Adverse
Effect. Neither KCS nor any of its Subsidiaries has received any written notice, demand, letter, claim or request for information alleging that KCS or any of its Subsidiaries may be in violation of,
or liable under, any Environmental Law, except where the preceding would not reasonably be expected to have a KCS Material Adverse Effect. Neither KCS nor any of its Subsidiaries (x) has
entered into or agreed to any consent decree or order or is subject to any judgment, decree or judicial order relating to compliance with Environmental Laws, Environmental Permits or the
investigation, sampling, monitoring, treatment, remediation, removal or cleanup of Hazardous Materials and no investigation, litigation or other proceeding is pending or, to the Knowledge of KCS and
its Subsidiaries, threatened with respect thereto, except as would not reasonably be expected to have a KCS Material Adverse Effect or (y) is an indemnitor or has assumed liability in
connection with any pending demand, notice, claim, or other allegation, or to the Knowledge of KCS and its Subsidiaries, any claim threatened by or against any third-party relating to any liability
under any Environmental Law or relating to any Hazardous Materials, except as would not reasonably be expected to have a KCS Material Adverse Effect. None of the real property owned or leased or
operated by KCS or any of its Subsidiaries is 

21

 

listed
or, to the Knowledge of KCS and its Subsidiaries, proposed for listing on any list of sites maintained by any Governmental Authority requiring investigation or cleanup, except as would not
reasonably be expected to have a KCS Material Adverse Effect. 

        Section 6.18 Properties.    Each of KCS and its Subsidiaries has good and marketable title to, or valid and enforceable
leasehold, easement or concession interests in, all of its properties and tangible assets necessary to conduct the KCS Business as currently conducted, except where the failure to have such title or
interest would not reasonably be expected to have a KCS Material Adverse Effect. All of such property and assets which constitute personal property, equipment, and fixtures, are in good condition and
repair, normal wear and tear excepted. Each of KCS and its Subsidiaries has complied in all material respects with the terms of all leases and concessions to which it is a party and under which it is
in occupancy, and all such leases and concessions are in full force and effect, except in each case as would not reasonably be expected to have a KCS Material Adverse Effect. 

ARTICLE 7

COVENANTS AND ADDITIONAL AGREEMENTS  

        Section 7.1 Conduct of Business by the GTFM Group.    During the period from the date of this Agreement and continuing through
the Closing Date, except as expressly permitted or required by this Agreement or with the prior written consent of KCS, Sellers shall use commercially reasonable efforts to cause GTFM and each of its
Subsidiaries to (i) carry on its business in the ordinary course consistent
with past practice and (ii) use commercially reasonable efforts to preserve their present business organizations and relationships (including keeping available the present services of their
employees and preserving their rights, franchises, goodwill and relations with their customers and others with whom they conduct business). Without limiting the generality of the foregoing, except as
expressly permitted or required by this Agreement or consented to in writing by KCS, Sellers shall use commercially reasonable efforts to cause GTFM, and each of the GTFM Subsidiaries not to, directly
or indirectly: 

        (a)   amend
or agree to amend their charters or bylaws (or comparable organizational documents), or merge with or into or consolidate with, or agree to merge with or into or
consolidate with, any other Person, subdivide or in any way reclassify any of their membership interests, shares or any other ownership interests, or change or agree to change in any manner the rights
of their membership interests, shares or any other ownership interests or liquidate or dissolve; 

        (b)   (i) issue,
sell, redeem or acquire any share or any other ownership interest or any debt security in GTFM or any of the GTFM Subsidiaries; (ii) issue, sell
or grant any option, warrant, convertible or exchangeable Security, right, "phantom" or other ownership interest, subscription, call, unsatisfied preemptive right or other agreement or right of any
kind to purchase or otherwise acquire (including by exchange or conversion) any shares or any other ownership interests in GTFM or any of the GTFM Subsidiaries; or (iii) enter into any
Contracts, agreements or arrangements to issue, redeem, acquire or sell any shares or any other ownership interests in GTFM or any of the GTFM Subsidiaries; 

        (c)   incur
any indebtedness for borrowed money in excess of $30 million for the facility at Toluca, or $10 million in the aggregate (outstanding at any one
time) for other purposes, or guarantee any liability, obligation or indebtedness (whether or not currently due or payable) of any other Person or incur any GTFM Voting Debt; 

        (d)   except
as required by law or IAS, make any change in their accounting methods or practices for Tax or accounting purposes or make any change in depreciation or
amortization policies or rates adopted by them for Tax or accounting purposes or make any material, or change any existing, Tax election, settle any pending audits or make voluntary disclosure
agreements or settle or compromise any Tax liability, except in the case of any such liability to the extent reserved for on the GTFM Financial Statements or except to the extent such change would not
have a GTFM Material Adverse Effect; 

22

 

        (e)   make
any loan or advance or capital contribution to any of their Affiliates who are not members of the GTFM Group, or any of their officers, directors, employees,
consultants, agents or other representatives (other than reasonable and customary travel advances made in the ordinary course of business consistent with past practice); 

        (f)    sell,
transfer, lease, license, offer to sell, abandon or make any other disposition of any of their assets or rights or grant or suffer, or agree to grant or suffer,
any Encumbrance other than Permitted Encumbrances on any of their assets or rights, other than in the ordinary course of business consistent with past practice and not exceeding $5 million in
the aggregate; 

        (g)   except
as expressly permitted pursuant to subsection (o) below, settle any claim, action or proceeding involving any liability for money damages or any
restrictions upon any of their operations, any of the GTFM Assets or the GTFM Business, except to the extent such settlement would not have a GTFM Material Adverse Effect; 

        (h)   create,
renew, amend, terminate or cancel, any Contract other than in the ordinary course of business consistent with past practice and providing for consideration
payable by or to GTFM or any GTFM Subsidiaries equal to or less than $1 million individually; 

        (i)    enter
into, amend, or agree to enter into or amend any Contract, agreement or arrangement or any financial transaction with any of their officers, directors,
consultants, agents representatives, (in the case of agents and representatives, other than in the ordinary course of business consistent with past practice), or Affiliates who are not members of the
GTFM Group; provided, however, that this clause (i) shall not prohibit the performance of Contracts executed prior to the date of this Agreement, the terms of which have been disclosed to KCS
in the Seller Disclosure Schedule; 

        (j)    declare
or make any dividends or declare or make any other distributions of any kind payable to MM or any Affiliate of MM (other than any other member of the GTFM
Group); 

        (k)   acquire
or agree to acquire in any manner any equity interests in, or any business of, any Person or other business organization or division thereof, including by way of
merger, consolidation, or purchase of an equity interest or assets; 

        (l)    enter
into, amend, modify or renew any Benefit Plan or other written employment, consulting, severance or similar employment agreements or arrangements, or grant any
salary or wage increase or increase in severance or termination pay or increase any employee benefit or hire any new employee for a management position, except as may be required by Applicable Law;
and except in the ordinary course of business consistent with past practice. 

        (m)  take
any action to accelerate any material rights or benefits, or make any material determinations not in the ordinary course of business consistent with past practice,
under any collective bargaining agreement, Benefit Plan or employment, indemnification, severance or termination agreement; 

        (n)   make
or incur any capital expenditures in excess of those set forth in the GTFM 2003 Capital Budget, a copy of which has been provided to KCS, or cease to make capital
expenditures in the ordinary course of business consistent with past practice; 

        (o)   cancel
any indebtedness or waive any claims or rights in amounts, in each case, in excess of $500,000 in the aggregate; 

        (p)   accrue
or pay any bonuses to any employee of the GTFM Group other than in the ordinary course of business consistent with past practices, except as set forth in
Section 7.1 of the Seller Disclosure Schedule; or 

        (q)   authorize
or agree (by Contract or otherwise) to do any of the foregoing. 

23

 

        Section 7.2 Conduct of Business by KCS and its Subsidiaries.    

        (a)   During
the period from the date of this Agreement and continuing through the Closing Date, except as expressly permitted or required by this Agreement or with the prior
written consent of TMM, KCS and its Subsidiaries shall (i) carry on their business in the ordinary course consistent with past practice, (ii) use commercially reasonable efforts to
preserve their present business organizations and relationships (including keeping available the present services of their employees and preserving their rights, franchises, goodwill and relations
with their customers and others with whom they conduct business), (iii) take no action that would reasonably be expected to prevent completion of, or materially delay, the Acquisition, or
change materially the terms of the Acquisition to the detriment of Sellers, and (iv) take none of the following actions that would materially change the economic benefits of the Acquisition to
the detriment of the Sellers: 

        (u)   amend
their charters or bylaws (or comparable organizational documents), or merge or consolidate with, any other Person, subdivide or reclassify their common stock or
other ownership interests, or change the rights of their common stock or other ownership interests or liquidate or dissolve; 

        (v)   issue,
sell or acquire any common stock or other ownership interest of any of the KCS Subsidiaries; 

        (w)  make
any loan or advance or capital contribution to any of their Affiliates (other than any KCS Subsidiary), or any of their officers, directors, employees, consultants,
agents or other representatives (other in the ordinary course of business consistent with past practice; 

        (x)   declare
or make any dividends or declare or make any other distributions of any kind on or payable to the holders of its capital stock (other than regularly scheduled
dividends payable on KCS preferred stock); 

        (y)   acquire
any equity interests in, or assets of any business of, any Person; or 

        (z)   authorize
or agree to do any of the foregoing. 

        (b)   In
connection with obtaining the funds necessary for the Purchase Price, KCS shall keep apprised on a current basis regarding any negotiations, and consult on a
non-binding basis with, Javier Serrano Segovia concerning any KCS asset disposition and with Jacinto Marina Cortez concerning any Acquisition financing arrangements. 

        Section 7.3 Access to Information; Confidentiality.    

        (a)   Between
the date of this Agreement and the Closing Date, subject to Applicable Laws relating to the exchange and disclosure of information and to the Confidentiality
Agreements, the Parties and their respective Affiliates shall afford to each other and to their respective authorized agents and representatives access, upon reasonable notice and during normal
business hours, to all properties of, and all Contracts, documents and information of or relating to the assets, liabilities, business, customers, employees, operations, personnel and other aspects of
their respective businesses; provided, however, that such access shall be conducted in a manner which does not unreasonably interfere with a Party's normal operations. 

        (b)   The
Parties agree to continue to be bound by and comply with the provisions set forth in the Confidentiality Agreements, and all amendments thereto, the provisions of
which are hereby incorporated herein by reference, to the extent such provisions are not in conflict with the terms of this Agreement. 

        Section 7.4 Regulatory Matters; Governing Documents; Third-Party Consents.    

        (a)   The
Parties shall cooperate with each other and use their commercially reasonable efforts promptly to prepare and file all necessary documentation, to effect all
applications, notices, petitions and filings, and to obtain as promptly as practicable all permits, consents, approvals, waivers and 

24

 

authorizations
of all Governmental Authorities, third parties and other Persons which are necessary or advisable to consummate the transactions contemplated by this Agreement and the Ancillary
Agreements, and requests for required consents under the Contracts, including, without limitation, those referred to in Sections 5.5 and 6.3. KCS and Sellers agree to take all reasonable steps
necessary to satisfy any conditions or requirements imposed by any Governmental Authority in connection with the consummation of the transactions contemplated by this Agreement, other than those
conditions or requirements, in the aggregate, the satisfaction of which are reasonably likely to result in either a GTFM Material Adverse Effect, a KCS Material Adverse Effect or a Seller Material
Adverse Effect. The Parties agree that they will consult with each other with respect to the obtaining of all permits, consents, approvals and authorizations of all Governmental Authorities, third
parties and other Persons necessary or advisable to consummate the Merger and the other transactions contemplated by this Agreement and the Ancillary Agreements and each Party will keep the other
Parties apprised of the status of matters relating to completion of the transactions contemplated herein and therein. 

        (b)   The
Parties shall promptly advise each other party hereto upon receiving any communication from any Governmental Authority whose consent or approval is required for
consummation of the transactions contemplated by this Agreement or the Ancillary Agreements. 

        (c)   Each
Party will (i) take promptly all actions necessary to make the filings required of such Party or its Affiliates under the HSR Act (which filings shall
include a request for the early termination of the waiting period under the HSR Act), (ii) comply at the earliest practicable date with any request for additional information received by such
Party or its Affiliates from the Federal Trade Commission or the Antitrust Division of the Department of Justice pursuant to the HSR Act and (iii) cooperate with each other Party in connection
with such other Party's filing under the HSR Act and in connection with resolving any investigation or other inquiry concerning the transactions contemplated by this Agreement commenced by either the
Federal Trade Commission or the Antitrust Division of the Department of Justice or state attorneys general. 

        (d)   KCS
shall promptly after the date of this Agreement (i) file before the Mexican Antitrust Commission (Comision Federal de
Competencia) the notification required pursuant to Articles 20 and 21 of the Mexican Antitrust Law (Ley Federal de Competencia
Economica), using commercially reasonable efforts to assure that the notification is accurate and complete and contains all of the information required pursuant to the
regulations of the Mexican Antitrust Law (Reglamento de la Ley Federal de Competencia Economica) and other official forms therefor, and (ii) that
any request for any additional information that may be required or otherwise solicited by the Mexican Antitrust Commission from KCS or any of its Affiliates in connection with such notification is
complied with on a timely basis. Sellers shall promptly provide KCS with all information regarding Sellers, GTFM and GTFM Subsidiaries that may be necessary for KCS to satisfy its obligations under
this Section 7.4(d). The Parties shall cooperate with each other in connection with such Mexican antitrust notification and in connection with resolving any investigation or other inquiry
concerning the transactions contemplated by this Agreement, commenced by either the Antitrust Commission directly or as a result of any person filing any claim before such Antitrust Commission in
connection therewith. 

        (e)   TMM
shall cause to be taken all action necessary and appropriate to amend the Bylaws of GTFM and the GTFM Subsidiaries to contain the provisions set forth in
Exhibit C. 

        (f)    TMM
shall use its commercially reasonable efforts to obtain the consents of the Lessor and the Lenders required under the Sublease of Locomotives identified in
Section 5.5 of Sellers' Disclosure Schedule, to the change of control resulting from the Acquisition. 

        Section 7.5 Stockholder and Debtholder Approvals.    

        (a)   As
soon as practicable following the date of this Agreement, KCS shall prepare and file with the SEC a proxy statement for a special meeting of its stockholders to be
called to approve the matters referred to in Section 6.3(a) and to obtain clearance of such proxy statement from the SEC. As soon as 

25

 

practicable
after the definitive proxy statement has been cleared by the SEC, KCS will call and give notice of a special meeting of its stockholders, cause a proxy statement and any amendments thereto
to be mailed to its stockholders, convene the special meeting of its stockholders and seek to obtain the approval of its stockholders to the matters set forth therein as requiring such approval,
including recommending such approval to its Stockholders, provided that the KCS Board may withdraw its recommendation of the Acquisition if it is advised by counsel to the effect that because of a
third party proposal occurring after the date of the Board's initial approval of the Acquisition, for the Board to continue to recommend the Acquisition would be a breach of the Board's fiduciary
duties to the KCS Stockholders. 

        (b)   As
soon as practicable following the date of this Agreement, TMM shall use its commercially reasonable efforts to obtain the approval of its stockholders and of the
stockholders of MM referred to in Section 5.4. The Boards of Directors of TMM and of MM shall recommend such approval to their respective stockholders. 

        (c)   As
soon as practicable following the date of this Agreement, TMM shall use its commercially reasonable efforts to obtain the approvals of its debtholders referred to in
Section 5.5. 

        Section 7.6 Tax Matters.    

        (a)   TMM
shall prepare or cause to be prepared and shall timely file or cause to be timely filed all Tax Returns for GTFM and the GTFM Subsidiaries for all periods ending on
or prior to the Closing Date. To the extent permitted by law, all such Tax Returns shall be prepared in a manner consistent with past practices of GTFM and the GTFM Subsidiaries, respectively. 

        (b)   The
Surviving Company shall prepare or cause to be prepared and timely file or cause to be timely filed any Tax Returns of GTFM or the GTFM Subsidiaries for Tax periods
that begin before the Closing Date and end after the Closing Date (a "Straddle Period"). To the extent permitted by law, all such Tax Returns shall be prepared in a manner consistent with past
practices of GTFM and the GTFM Subsidiaries. 

        (c)   After
the Closing Date, the Surviving Company, TMM and their respective Subsidiaries shall provide each other with such cooperation and information relating to TMM,
GTFM, the Surviving Company or their respective Subsidiaries as the Parties reasonably may request in (i) filing any Tax Return, (ii) determining any liability for Taxes or a right to a
Tax refund or (iii) conducting or defending any proceeding in respect of Taxes. Such cooperation and information shall include provisions by the Surviving Company to provide powers of attorney
for the purpose of signing Tax Returns and defending any Tax Audits for Pre-Closing Periods. 

        (d)   At
the Closing, TMM and GTFM shall deliver to the Surviving Company and the Surviving Company shall, and shall cause GTFM and the GTFM Subsidiaries to, retain for a
period of six (6) years following the Closing Date, all Tax Returns, books and records (including computer files) of, or with respect to the activities of, GTFM and the GTFM Subsidiaries for
all taxable periods from date of incorporation to the Closing Date for GTFM and all GTFM Subsidiaries. 

        (e)   The
Surviving Company shall, in consultation with TMM, control, manage and be solely responsible for any audit, contest, claim, proceeding or inquiry with respect to
Taxes for any Taxable period ending on or before the Closing Date and for any Straddle Period and shall have the right, in consultation with TMM, to settle or contest any such audit, contest, claim,
proceeding or inquiry; provided, however, that the Surviving Company shall not settle any such issue that would adversely affect TMM or any of its respective Subsidiaries in a material way, without
the prior written consent of TMM, which consent shall not be unreasonably withheld or delayed. 

        Section 7.7 Insurance.    Each of the Sellers shall cause GTFM and the GTFM Subsidiaries shall maintain in effect and pay all
premiums due thereon for the period ending on the Closing Date with respect to any and all fidelity bonds maintained by them on the date hereof and all GTFM Insurance 

26

 

Policies
or procure comparable replacement policies and bonds (or such replacement coverage as is obtainable on a commercially reasonable basis) and maintain such policies and bonds in effect until
the Closing Date. 

        Section 7.8 Notification of Certain Matters.    Each party to this Agreement shall give prompt notice to the other Parties, to
the extent known by such party, of (i) the occurrence, or failure to occur, of any event or existence of any condition that has caused or could reasonably be expected to cause any of the
representations or warranties of such party contained in this Agreement to be untrue or inaccurate in any material respect at any time after the date of this Agreement, up to and including the Closing
Date; (ii) any failure on its part to comply with or satisfy, in any material respect, any covenant, condition or agreement to be complied with or satisfied by such party under this Agreement. 

        Section 7.9 Further Assurances.    Each party to this Agreement shall execute such documents and other papers and perform such
further acts as may be reasonably required to carry out the provisions of this Agreement, the Ancillary Agreements and the transactions contemplated hereby and thereby. Upon the request of KCS,
Sellers and their respective Affiliates shall promptly execute and deliver such further instruments of assignment, transfer, conveyance, endorsement, direction or authorization and other documents as
KCS may reasonably request to effectuate the purposes of this Agreement and the Ancillary Agreements. 

        Section 7.10 Third-Party Matters.    

        (a)   From
the date of this Agreement to the Effective Time, (i) neither Sellers, nor any of their respective Affiliates, officers, directors, employees, members,
shareholders, representatives or agents, including any investment banker, attorney or accountant engaged by any of them shall, directly or indirectly solicit, encourage or facilitate inquiries or
proposals, or enter into any agreement, with respect to, or initiate or participate in any negotiations or discussions with any Person concerning, any acquisition or purchase of all or a substantial
portion of the assets of, or of any equity interest in, or any merger or business combination with, TMMH, MM, GTFM or any of their respective Subsidiaries, and (ii) TMM shall not enter into any
agreement with any Person concerning any acquisition or purchase of a controlling equity interest in TMM by any Competitor (as defined in the Stockholders' Agreement which is part of the Ancillary
Agreements) (each acquisition, purchase, merger or business combination, a "TMM Acquisition Proposal"), or furnish any information regarding a TMM Acquisition Proposal to any such Person. Sellers
shall notify KCS, providing full information, within twenty-four (24) hours if any TMM Acquisition Proposal is received by, any such information is requested from, or any such
negotiations or discussions are sought to be initiated with, TMM, TMMH, MM, GTFM, any of their respective Affiliates, officers, directors, employees, members, or shareholders (for purposes of this
Section 7.10, collectively, the "Seller Parties"), or their representatives and agents, including any investment banker, attorney or accountant engaged by any of them. It is understood that any
breach of the restrictions set forth in this Section 7.10 by any Seller Party or any investment banker, attorney or other advisor or representative of the Seller Parties shall be deemed to be a
breach of this Section 7.10 by Sellers. 

        (b)   Sellers
shall, and shall cause their respective Affiliates, officers, directors, employees, members, shareholders, representatives and advisors to, immediately cease or
cause to be terminated any existing activities, including discussions or negotiations with any Parties, conducted prior to the date hereof with respect to any TMM Acquisition Proposal and, subject to
the terms of any existing confidentiality agreements, shall seek to have all materials distributed to Persons in connection therewith by Sellers or any of their respective Affiliates or advisors
returned to TMM promptly. Neither Sellers or any of their respective Affiliates, officers, directors, employees, members, shareholders, representatives or agents, including any investment banker,
attorney or accountant engaged by any of them, shall amend, modify, waive or terminate, or otherwise release any Person from, any standstill, confidentiality or similar agreement or arrangement
currently in effect relating to 

27

 

this
Agreement or the transactions contemplated hereby. Sellers shall cause their respective Affiliates, officers, directors, employees, members, shareholders, representatives and agents to comply
with the provisions of Sections 7.10(a) and 7.10(b). 

        (c)   From
the date of this Agreement to the Effective Time, neither KCS, nor any of its respective Affiliates, officers, directors, employees, representatives or agents,
including any investment banker, attorney or accountant engaged by any of them shall, directly or indirectly solicit, encourage or facilitate inquiries or proposals, or enter into any agreement, with
respect to, or initiate or participate in any negotiations or discussions with any Person concerning, any acquisition or purchase of all or substantially all of the assets of, or a controlling equity
interest in, KCS or KCSR or any merger or business combination with KCS or KCSR (each, a "KCS Acquisition Proposal"), or furnish any information regarding a KCS Acquisition Proposal to any such
Person. KCS shall notify TMM, providing full information, within twenty-four (24) hours if any KCS Acquisition Proposal is received by, any such information is requested from, or
any such negotiations or discussions are sought to be initiated with, KCS, any of its respective Affiliates, officers, directors, employees, (for purposes of this Section 7.10, collectively,
the "Buyer Parties"), or their representatives and agents, including any investment banker, attorney or accountant engaged by any of them. It is understood that any breach of the restrictions set
forth in this Section 7.10 by any Buyer Party or any investment banker, attorney or other advisor or representative of the Buyer Parties shall be deemed to be a breach of this
Section 7.10 by KCS. 

        (d)   KCS
shall, and shall cause its KCS Affiliates, officers, directors, employees, representatives and advisors to, immediately cease or cause to be terminated any existing
activities, including discussions or negotiations with any Parties, conducted prior to the date hereof with respect to any KCS Acquisition Proposal and, subject to the terms of any existing
confidentiality agreements, shall seek to have all materials distributed to Persons in connection therewith by KCS or its Affiliates or advisors returned to KCS promptly. Neither KCS or any of its
Affiliates, officers, directors, employees, representatives or agents, including any investment banker, attorney or accountant engaged by any of them, shall amend, modify, waive or terminate, or
otherwise release any Person from, any standstill, confidentiality or similar agreement or arrangement currently in effect relating to this Agreement or the transactions contemplated hereby. KCS shall
cause its Affiliates, officers, directors, employees, representatives and agents to comply with the provisions of Sections 7.10(c) and 7.10(d). 

        (e)   Nothing
set forth in this Section 7.10 shall preclude the Board of Directors of KCS or TMM from taking any action in good faith if it is advised by counsel that
failure to do so would be a breach of duty to its stockholders. 

        Section 7.11 Efforts of Parties to Close.    During the period from the date of this Agreement through the Closing Date, each
party hereto shall use its commercially reasonable efforts to fulfill or obtain the fulfillment of the conditions precedent to the consummation of the transactions contemplated hereby, including the
execution and delivery of any documents, certificates, instruments or other papers that are reasonably required for the consummation of the transactions contemplated hereby. During the period from the
date of this Agreement and continuing through the Closing, except as required by Applicable Law, no party to this Agreement shall knowingly take any action which, or knowingly fail to take any action
the failure of which to be taken, could reasonably be expected to: (i) result in any of the representations and warranties set forth in this Agreement on the part of the party taking or failing
to take such action being or becoming untrue in any material respect; (ii) result in any conditions to the Closing set forth in Article 8 not being satisfied; or (iii) result in a
violation of any provision of this Agreement or the Ancillary Agreements. 

        Section 7.12 Expenses.    Except as expressly provided otherwise in this Agreement, the Parties shall each bear their respective
direct and indirect expenses incurred in connection with the negotiation 

28

 

and
preparation of this Agreement and the consummation of the Merger and the other transactions contemplated hereby. 

        Section 7.13 VAT Contingency Payment.    Provided the Acquisition has occurred and that neither KCS nor any Subsidiary of KCS
has purchased the TFM "Class III" shares referred to in clause (i) of this Section 7.13 upon exercise of the Put, as compensation for TMM's services in obtaining Final Resolution
of the VAT Claim, KCS shall make or shall cause TFM to make a cash payment (the "VAT Contingency Payment") to TMM, as set forth below, following the date of Final Resolution of the VAT Claim, and the
receipt by TFM or its designee of the VAT Payment, so long as the VAT Payment consists of at least (i) all of the TFM "Class III" shares (representing 20% of the capital stock of TFM)
currently held by the Mexican Government or (ii) a cash payment or other property acceptable to the Parties which has a fair value equal to or greater than the Put Purchase Price as calculated
on the date the VAT Payment is received (or a combination thereof). In such event, KCS shall, at its option, pay or cause TFM to pay to TMM (iii) $100,000,000 within 90 days thereafter
or (iv) $50,000,000 within 90 days thereafter and an additional $55,000,000 within 365 days thereafter. If the VAT Payment exceeds the Put Purchase Price as calculated on the date
that the VAT Payment is received, KCS shall pay or cause TFM to pay to TMM within 90 days after the VAT Payment and Final Resolution of the VAT Claim the first $25,000,000 received above the
Put Purchase Price, and 15% of any additional amount received above the Put Purchase Price beyond the first $25,000,000 (but such 15% payment shall not exceed $50,000,000). The calculation of all cash
payments and property distributions received by TFM or its designee referred to in this Section 7.13 as a VAT Contingency Payment shall be made after reducing the value of such payments and
distributions by the amount of all expenses incurred by or on behalf of TFM in effecting Final Resolution of the VAT Claim and receipt of the VAT Payment, including without limitation legal fees and
net of Mexican corporate tax (paid or payable in cash assuming utilization of all available net operating loss carry forwards). As part of the services to be performed under the Consulting Agreement,
Consultant shall have the right to, and shall, manage the negotiation, prosecution and settlement of the VAT Claim and any extensions or other modifications of the obligations under the Put. 

        Section 7.14 Financing for the Acquisition.    In connection with the financing for the Acquisition (including any amounts due
under Section 7.13), KCS shall not, and shall cause its Subsidiaries and Affiliates not to, enter into any financing arrangements that materially (i) restrict the ability of KCS and its
subsidiaries and affiliates to make any payments required to be made by this Agreement or (ii) deny or restrict in any material way any rights granted to TMM, its Subsidiaries and Affiliates
under this Agreement or the Ancillary Agreements. 

        Section 7.15 Release.    At the Closing, KCS shall deliver to TMM a release, effective as of the Closing, of each Person, not
identified in Exhibit D as a continuing officer or director, who served at the request of any Seller as a director or officer of GTFM or any of its Subsidiaries at any time prior to Closing,
from any and all claims of KCS and its Subsidiaries for any actions taken or omitted by such Person in such capacity, except for any action or omission which was in violation of law or the bylaws of
GTFM or any
of its Subsidiaries, or constituted fraud, willful misconduct, gross negligence or a breach of this Agreement or any of the Ancillary Agreements. 

ARTICLE 8

CONDITIONS  

        Section 8.1 Mutual Conditions.    The obligations of each party to this Agreement to consummate the Acquisition shall be subject
to the satisfaction of each of the following conditions, unless any such condition is waived by KCS and TMM: 

        (a)   No
order, injunction or decree issued by any Governmental Authority of competent jurisdiction or other legal restraint or prohibition preventing the consummation of the
Acquisition shall 

29

 

be
in effect. No proceeding initiated by any Governmental Authority seeking an injunction to restrain or prohibit the consummation of the Acquisition shall be pending. No statute, rule, regulation,
order, injunction or decree shall have been enacted, entered, promulgated or enforced by any Governmental Authority which prohibits, restricts in any material manner or makes illegal consummation of
the Acquisition; 

        (b)   All
consents, waivers, authorizations and approvals required from all Governmental Authorities to consummate the Acquisition, without the imposition of conditions or
requirements, in the aggregate, the satisfaction of which by KCS or its Subsidiaries or TMM or its Subsidiaries is reasonably likely to result in either a KCS Material Adverse Effect, a GTFM Material
Adverse Effect or a Seller Material Adverse Effect, shall have been obtained and shall remain in full force and effect as of the Closing Date; 

        (c)   A
general moratorium on commercial banking activities in New York or Mexico shall not have been declared by either Federal or state authorities and be continuing nor
shall there occur and be continuing any calamity or crisis in the U.S. or Mexican financial markets; and 

        (d)   The
securities to be issued pursuant to the Merger and, if KCS so elects pursuant to Section 1.2, in payment of a portion of the cash consideration, shall have
been be approved for listing by the NYSE. 

        Section 8.2 Conditions to the Obligations of KCS.    The obligations of KCS to consummate the Acquisition shall be subject to
the satisfaction of each of the following conditions, any of which may be waived in writing by KCS: 

        (a)   For
purposes of this Section 8.2(a), the accuracy of the representations and warranties of Sellers set forth in this Agreement shall be assessed as of the date of
this Agreement and shall be assessed as of the Closing Date with the same effect as though all such representations and warranties had been made again on and as of the Closing Date (provided, however,
that the representations and warranties that speak as of a specific date other than the date of this Agreement shall speak only as of such date) and such representations and warranties shall be true
and correct in all material respects; 

        (b)   Sellers
shall have performed and complied in all material respects with all agreements, covenants, obligations and conditions required by this Agreement to be performed
or complied with by them at or prior to the Closing Date; 

        (c)   TMM,
TMMH and MM shall have delivered to KCS a certificate, dated as of the Closing Date, signed on their behalves by their respective Presidents and Chief Financial
Officers confirming their satisfaction of the conditions applicable to them contained in Sections 8.2(a) and 8.2(b); 

        (d)   Each
of the Ancillary Agreements shall have been duly executed and delivered by or on behalf of each of Sellers as the case may be; 

        (e)   KCS
shall have received an opinion dated the Closing Date of Milbank, Tweed, Hadley & McCloy LLP, U.S. counsel to Sellers and Haynes & Boone, S.C., Mexican
counsel to Sellers, in the form and as to the matters set forth on Exhibit G-1 and G-2, respectively, with such exceptions and qualifications as are reasonably
acceptable to KCS; 

        (f)    KCS
shall have received from the Holders of the requisite number of outstanding shares of KCS Common Stock and KCS Preferred Stock the affirmative vote referred to in
Section 6.3(a); 

        (g)   Since
December 31, 2002, there shall not have been any GTFM Material Adverse Effect or any development or combination of developments that, individually or in the
aggregate, has had or is reasonably likely to have a GTFM Material Adverse Effect, of which KCS did not have Knowledge prior to the date of this Agreement; 

30

 

        (h)   KCS
shall have received copies of all other consents, approvals, authorizations, qualifications and orders of all Governmental Authorities and all other Persons party to
Contracts with any member of the GTFM Group that are required in respect of the transactions to be consummated at the Closing, other than those that if not obtained would not individually or in the
aggregate reasonably be expected to have a GTFM Material Adverse Effect or a KCS Material Adverse Effect and such consents and other items shall remain in full force and effect as of the Closing Date;
and 

        (i)    KCS
shall have received the officers' and directors' resignations referred to in Section 4.2(j). 

        (j)    There
shall not be pending any insolvency or bankruptcy proceeding against MM, TMMH or TFM, provided that if any such proceeding is pending MM, TMMH or TFM shall have
had at least 60 days to obtain dismissal of any such proceeding. 

        Section 8.3 Conditions to the Obligations of Sellers.    The obligation of Sellers to consummate the Acquisition shall be
subject to satisfaction of each of the following conditions, which may be waived in writing by TMM: 

        (a)   For
purposes of this Section 8.3(a), the accuracy of the representations and warranties of KCS and KARA Sub set forth in this Agreement shall be assessed as of
the date of this Agreement and shall be assessed as of the Closing Date with the same effect as though all such representations and warranties had been made again on and as of the Closing Date
(provided, however, that the representations and warranties that speak as of a specific date other than the date of this Agreement shall speak only as of such date) and such representations and
warranties shall be true and correct in all material respects; 

        (b)   Each
of KCS and KARA Sub shall have performed and complied in all material respects with all agreements, covenants, obligations and conditions required by this Agreement
to be performed or complied with by it at or prior to the Closing Date; 

        (c)   Each
of KCS and KARA Sub shall have delivered to TMM a certificate, dated as of the Closing Date, signed on behalf of KCS or KARA Sub, as the case may be, by its Chief
Executive Officer and Chief Financial Officer confirming the satisfaction of the conditions contained in Sections 8.3(a) and 8.3(b); 

        (d)   Each
of the Ancillary Agreements shall have been duly executed and delivered by or on behalf of KCS, and Sellers shall have no reasonable basis for belief that any of
such agreements shall not become effective at the Effective Time; 

        (e)   TMM
shall have received an opinion dated the Closing Date of Sonnenschein Nath & Rosenthal, counsel to KCS, and Jay Nadlman, Associate General Counsel to KCS, in
the form and as to the matters set forth on Exhibit H-1 and H-2, respectively, with such exceptions and qualifications as are reasonably acceptable to TMM; 

        (f)    There
shall not exist any event or combination of events that, individually or in the aggregate, will (or would reasonably be expected to) prevent KCS from performing
any of its post-Closing obligations under this Agreement or any Ancillary Agreement at or after the Effective Time; 

        (g)   Since
December 31, 2002, there has not been any KCS Material Adverse Effect or any development or combination of developments that, individually or in the
aggregate, has had or is reasonably likely to have a KCS Material Adverse Effect of which TMM did not have knowledge prior to the date of this Agreement; 

        (h)   TMM
shall have received copies of all other consents, approvals, authorizations, qualifications and orders of all Governmental Authorities and all other Persons party to
contracts with KCS or any of its Subsidiaries that are required in respect of the transactions to be consummated at Closing, other than those that, if not obtained, would not, individually or in the
aggregate, reasonably be expected to 

31

 

have
a KCS Material Adverse Effect and such consents and other items shall remain in full force and effect as of the Closing Date; 

        (i)    TMM
shall have received the consents of the holders of the 2003 Notes and of the 2006 Notes referred to in Section 5.5, provided that TMM shall have used its
commercially reasonable efforts to obtain such consents; and. 

        (j)    TMM
shall have received the release referred to in Section 7.15. 

ARTICLE 9

TERMINATION  

        Section 9.1 Termination.    

        (a)   This
Agreement may be terminated prior to the Closing as follows: 

          (i)  by
written consent of KCS and TMM; 

         (ii)  by
KCS or TMM if any order of any Governmental Authority permanently restraining, enjoining or otherwise prohibiting the consummation of the Acquisition shall have
become final and non-appealable or if any of the approvals of any Governmental Authority to perform the transactions herein, imposes any condition or requirement, the satisfaction of which
is reasonably likely to result in either a KCS Material Adverse Effect or a GTFM Material Adverse Effect; 

        (iii)  by
KCS if any condition to the obligations of KCS hereunder becomes incapable of fulfillment through no fault of KCS and is not waived by KCS; 

        (iv)  by
TMM if any condition to the obligations of Sellers hereunder becomes incapable of fulfillment through no fault of Sellers and is not waived by TMM; 

         (v)  by
KCS if TMM shall have experienced a Change of Control, or by TMM if KCS shall have experienced a Change of Control; and 

        (vi)  by
KCS or TMM if the Closing does not occur by the close of business on or prior to December 31, 2004 (the "Termination Date"); provided, however, that the
Termination Date may be extended by KCS and TMM by written agreement. 

        (b)   The
termination of this Agreement shall be effectuated by the delivery by the party terminating this Agreement to the other Parties of a written notice of such
termination. If this Agreement so terminates, it shall become null and void and have no further force or effect, except as provided in Section 9.2. 

        Section 9.2 Survival after Termination.    If this Agreement is terminated in accordance with Section 9.1 hereof and the
transactions contemplated hereby are not consummated, this Agreement and each Ancillary Agreement shall become void and of no further force and effect, without any liability on the part of any party
hereto, except for the provisions of Sections 7.12, 12.5 and 12.11 and this Article 9. Notwithstanding the foregoing, nothing in this Section 9.2 shall relieve any party to this
Agreement of liability for a breach of any provision of this Agreement or any agreement made as of the date hereof or subsequent thereto pursuant to this Agreement. 

ARTICLE 10

INDEMNIFICATION  

        Section 10.1 Survival of Representations, Warranties and Covenants; Exclusive Monetary Remedies.    

        (a)   All
representations and warranties in this Agreement or in any instrument executed and delivered in fulfillment of the requirements of this Agreement shall survive the
Closing for the 

32

 

following
periods of time following the Closing Date (in each case, the "Expiration Date"). The representations and warranties of the Sellers set forth in Sections 5.1, 5.2, 5.3, 5.4, 5.5, and 5.17
shall survive until the fifth anniversary of the Closing. The representations and warranties of the Sellers set forth in Section 5.11 shall survive for the applicable statute of limitations.
All other representations and warranties of the Sellers shall survive until the third anniversary of the Closing, provided, if the Spin-off Merger referred to in the Stockholders'
Agreement that is part of the Ancillary Agreements shall have occurred, such representations and warranties shall survive only until the second anniversary of the Closing. The representations and
warranties of KCS set forth in Sections 6.1, 6.2, 6.3, 6.4 and 6.7 shall survive until the fifth anniversary of the Closing. The representations and warranties of KCS set forth in Section 6.15
shall survive for the applicable statute of limitations. All other representations and warranties of KCS shall survive until the second anniversary of the Closing. All covenants or other agreements in
this Agreement shall terminate at the Effective Time, except the covenants in Sections 7.6, 7.9 and 7.13 which shall survive the Closing indefinitely or for the period of the respective statutes of
limitation relating thereto. 

        (b)   Notwithstanding
anything in this Agreement to the Contrary, the sole and exclusive basis on which any party may recover monetary damages for any breach of this Agreement
by any other party, whether based upon breach of representations and warranties, breach of any covenant, or otherwise, shall be in accordance with the indemnification provisions set forth in this
Article 10, and subject to the limitations and exclusions set forth in this Article 10, provided however, that such exclusive remedies for monetary damages shall not preclude any party
from pursuing the remedies of specific performance, injunctive relief, declaratory judgment or any other non-monetary equitable remedies available to such party under Applicable Law. 

        (c)   All
Losses (as defined below) for which any party may seek indemnification hereunder shall be net of (i) any insurance recoveries received by such party or to
which such party is entitled and (ii) any amounts which such party has received or is entitled to receive from any third party under any indemnification or other similar agreement. 

        Section 10.2 Indemnification by Sellers.    Subject to the limitations contained in this Article 10,
Sellers, jointly and severally, shall indemnify and hold KCS, the Surviving Company and each of their Subsidiaries, and each of their respective
officers, directors, employees, members, stockholders, agents and representatives ("KCS Indemnitees") harmless from and against all losses, damages, liabilities, claims, demands, obligations,
deficiencies, payments, judgments, settlements, costs and expenses of any nature whatsoever (including the costs and expenses of any and all investigations, actions, suits, proceedings, demands,
assessments, judgments, orders, settlements and compromises relating thereto, and reasonable attorneys', accountants', experts' and other fees and expenses in connection therewith) ("Losses")
resulting from, arising out of, or due to, directly or indirectly, any of the following: 

        (a)   Any
inaccuracy or misrepresentation in, or breach of, any representation or warranty of Sellers contained in Article 5, in any schedule or exhibit delivered
hereunder by any of Sellers or in any certificates delivered by any of Sellers pursuant to this Agreement, or any breach or nonfulfillment of any covenant or agreement of any of Sellers contained in
this Agreement, in any schedule or exhibit delivered hereunder by any of Sellers or in any certificates delivered by any of Sellers pursuant to this Agreement, or any claims, causes of actions, rights
asserted or demands made by any third parties (including any Governmental Authority) arising from or relating to any of the foregoing (it being agreed that for purposes of such right to
indemnification, the representations and warranties made by Sellers shall be deemed not qualified by any references therein to materiality or whether or not any breach could result or could reasonably
be expected to result in a GTFM Material Adverse Effect); and 

        (b)   Sellers'
indemnification obligations under this Article 10 for any inaccuracy or misrepresentation in, or breach of any representation or warranty regarding Grupo
TFM or its Subsidiaries shall be limited to 51% of Losses and then only to the extent such 51% of Losses amount 

33

 

to,
in the aggregate, $5 million or more; provided, that for the purpose of computing this limitation on Sellers' indemnification obligations, Losses shall be calculated without regard to
whether such Losses involved a GTFM Material Adverse Effect. The limitation in this Section 10.2(b) shall not be applicable to any Losses arising out of or resulting from any action or omission
on the part of any Seller or its Affiliate that involved a crime, fraud, willful misconduct or gross negligence. 

        Section 10.3 Indemnification by KCS.    Subject to the limitations contained in this Article 10, KCS shall indemnify and
hold harmless Sellers, each of their Subsidiaries and each of their respective officers, directors, employees, members, stockholders, agents and representatives ("Seller Indemnitees") from and against
all Losses resulting from, arising out of, or due to, directly or indirectly, any inaccuracy or misrepresentation in, or breach of, any representation or warranty of KCS contained in Article 6,
in any schedule or exhibit delivered hereunder by KCS or in any certificates delivered by KCS pursuant to this Agreement, or any breach or nonfulfillment of any covenant of KCS contained in this
Agreement, in any schedule or exhibit delivered hereunder by KCS or in any certificates delivered by KCS pursuant to this Agreement, or any claims, causes of actions, rights asserted or demands made
by any third parties (including any Governmental Authority) arising from or relating to any of the foregoing. 

        (b)   KCS's
indemnification obligations under this Article 10 shall be limited to Losses which amount to, in the aggregate, $10 million or more, provided that
for the purpose of computing this limitation or KCS's indemnification obligations, Losses shall be calculated without regard to whether such Losses involved a KCS Material Adverse Effect. The
limitation in this Section 10.3(b) shall not be applicable to any Losses arising out of or resulting from any action or omission on the part of KCS or its Affiliate that involved a crime,
fraud, willful misconduct or gross negligence. 

        Section 10.4 Procedures for Third-Party Claims.    

        (a)   In
order for a Person (the "Indemnified Party") to be entitled to any indemnification provided for under Section 10.2 or 10.3 hereof in respect of, arising out of
or involving a claim made by any Person (other than another Party or its Affiliate) against the Indemnified Party (a "Third-Party Claim"), such Indemnified Party must notify the indemnifying party in
writing of the Third-Party Claim promptly following receipt by such Indemnified Party of written notice of the Third-Party Claim; provided, however, that failure to give such notification shall not
affect the indemnification provided hereunder except to the extent the indemnifying party shall have been actually materially prejudiced as a result of such failure. Thereafter, the Indemnified Party
shall deliver to the indemnifying party, as promptly as practicable following the Indemnified Party's receipt thereof, copies of all notices and documents (including court papers) received by the
Indemnified Party relating to the Third-Party Claim that are not separately addressed to the indemnifying party. 

        (b)   If
a Third-Party Claim is made against an Indemnified Party, the indemnifying party shall be entitled to participate in the defense thereof and, if it so chooses, to
assume the defense thereof with counsel selected by the indemnifying party; provided, however, that such counsel is not reasonably objected to by the Indemnified Party. Should the indemnifying party
so elect to assume the defense of a Third-Party Claim, the indemnifying party shall not be liable to the Indemnified Party for any reasonable legal expenses subsequently incurred by the Indemnified
Party in connection with the defense thereof. If the indemnifying party assumes such defense, the Indemnified Party shall have the right to participate in the defense thereof and to employ counsel, at
its own expense, separate from the counsel employed by the indemnifying party, it being understood that the indemnifying party shall control such defense; provided, however, that the indemnifying
party shall bear the reasonable fees and expenses of such separate counsel (i) if the Parties to any such action or proceeding (including impleaded parties) include other Parties and
representation of both Parties would, in the reasonable opinion of counsel for the Indemnified Party, be inappropriate due to a conflict of interest or (ii) if the indemnifying party shall not
have employed counsel (other than counsel that is reasonably objected to by the Indemnified Party) within a reasonable time after the Indemnified Party has given notice of the 

34

 

institution
of a Third-Party Claim in compliance with Section 10.4(a) hereof. The indemnifying party shall be liable for the reasonable fees and expenses of counsel employed by the Indemnified
Party for any period during which the indemnifying party has not assumed the defense thereof, provided, however, that such counsel is not reasonably objected to by the indemnifying party. If the
indemnifying party chooses to defend or prosecute a Third-Party Claim, all the Indemnified Parties shall cooperate in the defense or prosecution thereof at the indemnifying party's expense. Such
cooperation shall include the retention and (upon the indemnifying party's request) the provision to the indemnifying party of records and information that are reasonably relevant to such Third-Party
Claim, and making employees available on a mutually convenient basis to provide additional information and explanation of any material provided hereunder. If the indemnifying party assumes the defense
of a Third-Party Claim, the Indemnified Party shall not admit any liability with respect to, or settle, compromise or discharge, such Third-Party Claim without the indemnifying party's prior written
consent (which consent shall not be unreasonably withheld). If the indemnifying party assumes the defense of a Third-Party Claim, the Indemnified Party shall agree to any settlement, compromise or
discharge of a Third-Party Claim that the indemnifying party may recommend and that by its terms obligates the indemnifying party to pay the full amount of the liability in connection with such
Third-Party Claim, which releases the Indemnified Party completely in connection with such Third-Party Claim and that would not otherwise materially adversely affect the Indemnified Party. 

        Section 10.5 Tax Indemnification.    

        (a)   Sellers
shall indemnify and hold each of the KCS Indemnitees harmless from and against all Taxes of GTFM, and the GTFM Subsidiaries, the payment of which would result in
a breach of any representation or warranty set forth in Section 5.11 or an agreement set forth in Sections 7.1(e) or 7.6 (it being agreed that for purposes of such right to indemnification, the
representations and warranties set forth in Section 5.11 or a breach of any agreement set forth in Section 7.1(e) or 7.6 shall be deemed not qualified by any references therein to
materiality or whether or not any breach could result or could reasonably be expected to result in a GTFM Material Adverse Effect). 

        (b)   KCS
shall, and shall cause the Surviving Company and its Subsidiaries, to indemnify and hold Sellers harmless from and against all Taxes of the Surviving Company and its
Subsidiaries the payment of which would not result in a breach described in Section 10.5(a) 

ARTICLE 11

DEFINITIONS  

        Section 11.1 Certain Defined Terms.    As used in this Agreement, the following terms shall have the following meanings: 

        "Affiliate"
shall mean any Person that directly, or indirectly through one or more intermediaries, Controls, is Controlled by or is under common Control with the Person specified. 

        "Agreement"
shall have the meaning set forth in the preamble to this Agreement. 

        "Ancillary
Agreements" shall mean the following agreements entered into as of the date of this Acquisition Agreement or to be entered into as of the Closing: (i) Stockholders'
Agreement by and among KCS, TMM, TMMH and MM; (ii) Registration Rights Agreement among KCS, TMM, TMMH and MM; (iii) Stock Purchase Agreement among KCS, TMM, TMMH and MM; (iv) the
Consulting Agreement; (v) the Marketing and Services Agreement; and (vi) the Put Agreement. 

        "Applicable
Law" shall mean any Law applicable to KCS, TMM, TMMH, MM or any of their respective Affiliates, properties, assets, officers, directors, employees or agents, as the case may
be. 

        "Business
Day" shall mean any day that is not a Saturday, a Sunday or other day on which banks are required or authorized by law to be closed in the United States or Mexico. 

35

 

        "Certificate
of Merger" shall have the meaning set forth in Section 3.1 of this Agreement. 

        "Change
of Control" shall mean, with respect to such Person, the occurrence of any of the following prior to the Closing Date: (a) any Person or Group, other than a subsidiary or
any employee benefit plan (or any related trust) of such Person or a subsidiary of such Person, becomes the beneficial owner of Voting Securities representing 20.0% or more of the combined Total
Voting Power of all Voting Securities of such Person, or (b) the individuals who, as of the date of this Agreement, constitute the board of directors of such Person (the "Incumbent Directors")
cease for any reason to constitute at least 75.0% of the members of such board of directors unless, at least 75.0% of the individuals then constituting such board of directors were nominated upon the
recommendation of at least 75.0% of the Incumbent Directors or other directors so nominated; or (c) approval by the stockholders of such Person of any of the following: (1) a merger,
reorganization or consolidation ("Acquisition") with respect to which the individuals and entities who were the respective beneficial owners of the stock and Voting Securities of the Person
immediately before such Acquisition do not, after such Acquisition, beneficially own, directly or indirectly, more than 80.0% of the combined voting power of the Voting Securities of the Person
resulting from such Acquisition in substantially the same proportion as their ownership immediately before such Acquisition, (2) a liquidation or dissolution of such Person, or (3) the
sale or other disposition of all or substantially all of the assets of such Person. 

        "Code"
shall mean the Internal Revenue Code of 1986, as amended, and the rules and regulations promulgated thereunder. 

        "Concession"
shall mean the concession title from the Mexican government held by TFM to provide freight transportation services over its rail lines in Mexico. 

        "Confidentiality
Agreements" shall mean the Confidentiality Agreements dated as of November 9, 2002 by and between KCS and TMM and all amendments thereto. 

        "Consultant"
shall mean the Company owned by Jose Serrano Segovia that has entered into the Consulting Agreement with KCS. 

        "Consulting
Agreement" shall mean that agreement between Consultant and the Surviving Company dated as of the Effective Time. 

        "Contracts"
shall mean all written or oral contracts, agreements, evidences of indebtedness, guarantees, leases and executory commitments to which any member of the GTFM Group is a party
(jointly or severally, in whole or in part, with others or solely) or by which any of the GTFM Assets are bound, or otherwise related to the GTFM Business. 

        "Control"
shall mean the ability whether directly or indirectly to direct the affairs of another by means of ownership of assets or voting securities, or by contract. 

        "Encumbrance"
shall mean any lien, pledge, mortgage, security interest, claim, charge, easement, limitation, commitment, encroachment, restriction (other than a restriction on
transferability imposed by federal or state securities laws) or other encumbrance of any kind or nature whatsoever (whether absolute or contingent). 

        "Environmental
Laws" shall mean any and all U.S. and Mexican federal, state and local statutes, laws, regulations, ordinances or rules in existence on or prior to the Closing Date
relating to the protection of the environment or natural resources, occupational safety and health; the effect of the environment or Hazardous Materials on human health; or emissions, discharges or
releases of Hazardous Materials into the environment, including, without limitation, ambient air, surface water, groundwater or land; or otherwise relating to the handling of Hazardous Materials or
the investigation, clean-up or other remediation or analysis thereof. 

36

 

        "Environmental
Permit" shall mean any permit, approval, identification number, license and other authorization required under any applicable Environmental Law, including any
administratively complete application that is sufficient to serve as an authorization for an activity regulated under Environmental Law. 

        "ERISA
Affiliate" shall mean any Person who is in the same controlled group of corporations or who is under common control with KCS (within the meaning of Section 414 of the
Code). 

        "Exchange
Act" shall mean the Securities Exchange Act of 1934, as amended, and the rules and regulations of the SEC thereunder. 

        "Final
Resolution of the VAT Claim" shall mean the final settlement or resolution of the VAT Claim, whether by a voluntary settlement or judgment, that is not subject to any form or
manner of appeal, collateral claim under the January 31, 1997 Stock Purchase Agreement for the acquisition of Ferrocarril del Noreste, S.A. de C.V. or otherwise or offset or reclaim by any
Governmental entity or any other Person in any manner whatsoever, provided, that if KCS shall have received the TFM Class III shares referred to in 7.13(i) in settlement of all or a
portion of the VAT Claim or if KCS shall have received the payment referred to in 7.13(ii) along with the written agreement (in form reasonably satisfactory to KCS) of TMM to defend and
indemnify KCS against any claim, collateral claim, offset, reclaim, appeal or challenge of any kind whatsoever which seeks to rescind, set aside, revoke or diminish the amount of such payment or the
VAT Claim, then a "Final Resolution of the VAT Claim" shall be deemed to have occurred for the purpose of the VAT Payment. 

        "GAAP"
shall mean generally accepted accounting principles, consistently applied, as used in the United States of America as in effect at the time any applicable financial statements
were or are prepared or any act requiring the application of GAAP was or is performed. 

        "Governmental
Authority" shall mean any United States, Mexican or foreign government, any state or other political subdivision thereof, any entity exercising executive, legislative,
judicial, regulatory or administrative functions of or pertaining to government, including the SEC or any other United States, Mexican or foreign government authority, agency, department, board,
commission or instrumentality of the United States, any state of the United States or any political subdivision thereof or any foreign jurisdiction, and any court, tribunal or arbitrator(s) of
competent jurisdiction, and any United States, Mexican or foreign governmental or non-governmental self-regulatory organization, agency or authority (including the NYSE). 

        "GTFM
Assets" shall mean the properties, assets, Contracts and rights of any kind, whether tangible or intangible, real or personal, of the GTFM Group necessary to enable GTFM and the
GTFM Subsidiaries to conduct the GTFM Business as presently conducted. 

        "GTFM
Business" shall mean the business and operations of the GTFM Group in the manner in which the same have been conducted prior to the date hereof, are currently being conducted and
are currently proposed by the GTFM Group to be conducted, whether conducted by GTFM or any of its Subsidiaries. 

        "GTFM
Financial Statements" shall mean those financial statements referred to in Section 5.6. 

        "GTFM
Form 20-F" shall mean the Annual Report on Form 20-F for the year ended December 31, 2001 filed by GTFM with the SEC. 

        "GTFM
Group" shall mean GTFM and all of its Subsidiaries, collectively. 

        "GTFM
Material Adverse Effect" shall mean a change, event or occurrence that has had, or is reasonably likely to have, a material adverse effect on the business, assets, properties,
liabilities, financial condition or results of operations of the GTFM Group taken as a whole other than any change, event or occurrence resulting from (i) changes in the railroad industry in
Mexico or the United 

37

 

States
generally, (ii) changes in general economic conditions in the United States or Mexico or the securities markets in general, (iii) terrorist activities or the commencement or
escalation of any war or armed hostilities, which do not disproportionately affect the GTFM Group, or (iv) performance of this Agreement in accordance with its terms. 

        "GTFM
Subsidiaries" shall mean all of the Subsidiaries of GTFM except Mexrail, Inc. and its Subsidiaries. 

        "GTFM
Trademarks" shall mean all trademarks of GTFM and its Subsidiaries. 

        "Hazardous
Materials" shall mean (i) any petroleum, petroleum products, byproducts or breakdown products, radioactive materials, asbestos-containing materials or polychlorinated
biphenyls or (ii) any chemical, material or other substance defined or regulated as toxic or hazardous or as a pollutant or contaminant or waste under any applicable Environmental Law. 

        "HSR
Act" means Section 7A of the Clayton Act (Title II of the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended) and the rules and regulations
promulgated thereunder. 

        "IAS"
shall mean International Accounting Standards, consistently applied as used in the UMS as in effect at the time any applicable financial statements were or are prepared or any act
requiring compliance with IAS was or is performed. 

        "Income
Taxes" shall mean all Taxes, charges, fees, levies or other assessments imposed by any Taxing Authority and based on or measured solely with respect to income or profits
including any interest, penalties or additions attributable or imposed with respect thereto. 

        "Intellectual
Property" shall mean all patents and patent rights, trademarks and trademark rights, trade names and trade name rights, service marks and service mark rights, service names
and service name rights, brand names, inventions copyrights and copyright rights, processes, formulae, trade dress,
business and product names, logos, slogans, trade secrets, industrial models, processes, designs, methodologies, computer programs (including all source codes) and related documentation, technical
information, manufacturing, engineering and technical drawings, know-how and all pending applications for and registrations of patents, trademarks, service marks and copyrights. 

        "Investment
Advisers Act" shall mean the Investment Advisers Act of 1940, as amended, and the rules and regulations of the SEC thereunder. 

        "Investment
Company Act" shall mean the Investment Company Act of 1940, as amended, and the rules and regulations of the SEC thereunder. 

        "KCS
Assets" shall mean the properties, assets, Contracts and rights of any kind, whether tangible or intangible, real or personal, necessary to enable KCS (prior to the Closing) and the
Surviving Company (after the Closing) to conduct the KCS Business as presently conducted. 

        "KCS
Business" shall mean the consolidated business and operations of KCS and its Subsidiaries in the manner in which the same have been conducted prior to the date hereof, are currently
being conducted and are currently proposed by KCS and its Subsidiaries to be conducted, whether conducted by KCS or any of its Subsidiaries. 

        "KCS
Disclosure Schedule" shall have the meaning set forth in the introduction to Article 6 of this Agreement. 

        "KCS
Material Adverse Effect" shall mean a change, event or occurrence that has had, or is reasonably likely to have, a material adverse effect on the business, assets, properties,
liabilities, financial condition or results of operations of KCS and its Subsidiaries, taken as a whole other than any change, event or occurrence resulting from (i) changes in the railroad
industry in the United States generally, (ii) changes in general economic conditions in the United States or the securities markets in 

38

 

general,
(iii) terrorist activities or the commencement or escalation of any war or armed hostilities, which do not disproportionately affect KCS or its Subsidiaries, or (iv) performance
of this Agreement in accordance with its terms. 

        "KCS
Stock Option Plan" shall mean the 1991 Amended and Restated Stock Option and Performance Award Plan, as amended and restated effective November 7, 2002. 

        "Knowledge"
of (a) KCS shall mean actual knowledge after reasonable inquiry of any executive officer of KCS, (b) TMM, TMMH or MM shall mean actual knowledge after
reasonable inquiry by any executive officer of TMM, TMMH or MM, and (c) Sellers shall mean actual knowledge after reasonable inquiry by any executive officer of Sellers. 

        "Law"
shall mean any U.S., Mexican or foreign federal, state or local statute, law (whether statutory or common law), ordinance, rule, administrative interpretation, regulation, order,
writ, injunction, directive, judgment, decree, policy, guideline or other requirement or arbitration award or finding (including, without limitation, those of the NYSE or any other applicable
self-regulatory organization). 

        "Losses"
shall have the meaning set forth in Section 10.2 of this Agreement. 

        "MM
Subsidiaries" shall mean GTFM and GTFM Subsidiaries. 

        "NYSE"
shall mean the New York Stock Exchange, Inc. 

        "Permitted
Encumbrance" shall mean (i) liens reflected in the GTFM Financial Statements; (ii) liens imposed by operation of law and not for borrowed money, such as
materialmen's, mechanics', workers', repairmen's, employees', carriers', vendors' warehousemen's and other like liens that are insignificant, individually and in the aggregate, to the operation of the
GTFM Business and (iii) liens incurred in the ordinary course of business and not for borrowed money that are insignificant, individually and in the aggregate, to the operation of the GTFM
Business. 

        "Person"
shall mean any individual, firm, corporation, partnership (limited or general), limited liability company, joint venture, association, trust or other entity. 

        "Put
Agreement" shall mean the Agreement between the Federal Government of the United Mexican States, GTFM, TMM and KCS, dated June 9, 1997. 

        "Put"
shall mean the right of the Federal Government of the United Mexican States under the Put Agreement to compel purchase of the Shares of TFM held by it. 

        "Put
Purchase Price" shall mean the purchase price for the 20% of TFM stock held by the Federal Government of the United Mexican States, as defined in the Put Agreement and calculated
under the Twenty-Sixth Clause of the Stock Purchase Agreement. 

        "SEC"
shall mean the Securities and Exchange Commission, and any successor thereto. 

        "Securities"
shall mean any securities as defined in the Securities Act. 

        "Securities
Act" shall mean the Securities Act of 1933, as amended, and the rules and regulations of the SEC thereunder. 

        "Securities
Laws" shall mean the Securities Act, the Exchange Act, the Investment Company Act, the Investment Advisers Act, all applicable state "blue sky" laws, all applicable Mexican
and foreign securities laws, and the rules and regulations promulgated thereunder. 

        "Seller
Material Adverse Effect" shall mean a change, event or occurrence that has had, or is reasonably likely to have, a material adverse effect on the business, assets, properties,
liabilities, financial condition or results of operations of Sellers and their Subsidiaries, taken as a whole other than any change, event or occurrence resulting from (i) changes in the
railroad industry in the United 

39

 

States
generally, (ii) changes in general economic conditions in the United States or the securities markets in general, (iii) terrorist activities or the commencement or escalation of
any war or armed hostilities, which do not disproportionately affect a Seller or any of its Subsidiaries, or (iv) performance of this Agreement in accordance with its terms. 

        "Strategic
Investor" shall mean a U.S. Class 1 railroad, or its Affiliate, which purchases or commits to purchase from KCS equity or debt securities of KCS within one year from
the date of this Agreement. 

        "Subsidiary"
of a Person shall mean any other Person more than 50% of the voting stock (or of any other form of other voting or controlling equity interest in the case of a Person that
is not a corporation) of which is beneficially owned by the Person directly or indirectly through one or more other Persons. 

        "Tax"
shall mean all U.S. and Mexican federal, provincial, territorial, state, municipal, local, foreign or other taxes, imposts, rates, levies, assessments, contributions and other
similar charges (and all interest and penalties thereon and additions thereto imposed by any Governmental Authority), including, without limitation, all income, excise, franchise, gains, capital, real
property, goods and services, transfer, value added, gross receipts, windfall profits, severance, ad valorem, personal property, production, sales, use, license, stamp, documentary stamp, mortgage
recording, employment, payroll, social security (IMSS), housing, unemployment, disability, estimated or withholding taxes, housing fund (Infonavit), retirement fund contributions (SAR) and all customs
and import duties. 

        "Tax
Return" shall mean any and all returns, reports, declarations, information statements, schedules or other documents required to be provided by GTFM or any of its Subsidiaries with
respect to Taxes to any Governmental Authority or Tax authority or agency, whether U.S., Mexican or foreign. 

        "Taxing
Authority" shall mean any government authority, U.S., Mexican or other, having jurisdiction over the assessment, determination, collection, or other imposition of Taxes. 

        "TFM"
shall mean TFM, S.A. de C.V. 

        "U.S."
means the United States of America. 

        "VAT"
means the Mexican value added tax. 

        "VAT
Claim" means TFM's claim against the Mexican Treasury for the refund of a value added tax payment in the original principal amount of 2,111,111,790 pesos. 

        "VAT
Payment" means the shares or cash compensation received by TFM or its designee from the Mexican Government on the VAT Claim. 

40

   ARTICLE 12

MISCELLANEOUS  

        Section 12.1 Amendments; Waiver.    This Agreement may not be amended, altered or modified except by written instrument executed
by KCS and TMM. KCS and TMM may amend this Agreement without notice to or the consent of any other party and any third party. Any agreement on the part of KCS and TMM to waive (i) any
inaccuracies in any representation and warranty contained herein or in any document, certificate or writing delivered pursuant hereto, or (ii) compliance with any of the agreements, covenants
or conditions contained herein, shall be valid only if set forth in an instrument in writing signed on behalf of the party against whom the waiver is to be effective. No such waiver shall constitute a
waiver of, or estoppel with respect to, any subsequent or other inaccuracy, breach or failure to strictly comply with the provisions of this Agreement. Any delay or omission on the part of KCS or TMM
to exercise any right hereunder shall not in any manner impair the exercise of any right accruing to it hereafter. 

        Section 12.2 Entire Agreement.    This Agreement (including the Seller Disclosure Schedule, the KCS Disclosure Schedule, any
other exhibits, schedules, certificates, lists and documents referred to herein, and any documents executed by the Parties simultaneously herewith or pursuant thereto), the Ancillary Agreements, the
Consulting Agreement and the Confidentiality Agreements constitute the entire agreement of the Parties, except as provided herein, and supersede all prior agreements and understandings, written and
oral, among the Parties with respect to the subject matter hereof and thereof, including without limitation, the Letter of Intent, dated August 28, 1995, between TMM and KCS; the Joint Venture
Implementation Agreement, dated September 7, 1995, between TMM and KCS; the Joint Venture Agreement, dated December 1, 1995, between TMM and KCS; the undated Letter of Understanding
between TMM and KCS; the Shareholders Agreement dated as of May 1997, by and among KCS, Caymex Transportacion, Grupo Servia, S.A. de C.V., TMM and MM; Management Services Agreements between KCS
and TFM, dated May 9, 1997, and between TMM and TFM, dated May 9, 1997 (as such agreements have been amended and extended from time to time); the Stock Purchase Agreement dated as of
February 27, 2002, by and among MM, TMM, KCS, The Kansas City Southern Railway Company and TFM; and the Omnibus Agreement by and among TMM, MM, TFM, Mexrail, Inc., The Kansas City
Southern Railway Company, NAFTA Rail, S.A. de C.V. and KCS, dated March 8, 2002; provided that, if the Closing shall not have occurred prior to the Termination Date, or if this Agreement shall
have been terminated pursuant to the terms set forth in Article 9, then this Section 12.2 shall be null and void retroactively to the date first set forth above and the prior agreements
and understandings referred to herein shall be and remain effective as if this Agreement had never been effective. 

        Section 12.3 Interpretation.    

        (a)   The
Recitals, Exhibits and Schedules to this Agreement are incorporated by reference into, and are deemed to be part of, this Agreement. When a reference is made in this
Agreement to Sections, Exhibits or Schedules, such reference shall be to a Section of or an Exhibit or a Schedule to this Agreement unless otherwise indicated. The table of contents and headings
contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. Whenever the words "include," "includes" or "including" are
used in this Agreement, they shall be deemed to be followed by the words "without limitation." 

        (b)   Each
of the Seller Disclosure Schedule and the KCS Disclosure Schedule shall set forth items the disclosure of which is necessary or appropriate either in response to an
express disclosure requirement contained in a provision hereof or as an exception to one or more of such party's representations or warranties or one or more of its covenants contained in this
Agreement, in each case making reference to the particular subsection of this Agreement requiring such disclosure or to which such exception is being taken. 

41

 

        (c)   This
Agreement is in the English language. The Parties waive any rights they may have under Applicable Law to have this Agreement or any of the Ancillary Agreements made
in any language other than English; provided to the extent that any such waiver shall not be valid under Applicable Law, the Parties agree that in case of any ambiguity or contradiction between the
English language version of this Agreement and any translation into any other language, that the English language version shall control. 

        Section 12.4 Severability.    Any term or provision of this Agreement which is invalid or unenforceable in any jurisdiction
shall, as to that jurisdiction, be ineffective to the extent of such invalidity or unenforceability without rendering invalid or unenforceable the remaining terms and provisions of this Agreement or
affecting the validity or enforceability of any of the terms or provisions of this Agreement in any other jurisdiction. If any provision of this Agreement is so broad as to be unenforceable, the
provision shall be interpreted to be only so broad as is enforceable. 

        Section 12.5 Notices.    Unless otherwise provided herein, all notices and other communications hereunder shall be in writing
and shall be deemed given if (a) delivered in person, (b) transmitted by facsimile (with written confirmation), (c) mailed by certified or registered mail (return receipt
requested) (in which case such notice shall be deemed given on the third day after such mailing) or (d) delivered by an express courier (with written confirmation) to the Parties at the
following addresses (or at such other address for a party as shall be specified by like notice): 

If
to Sellers: 

Grupo
TMM, S.A.

Avenida de la Cuspide, No. 4755

Colonia Parques del Pedregal

14010 Mexico, D.F. 

CT
Corporation

1209 Orange Street

Wilmington, Delaware 19801 

With
a copy (which shall not constitute notice) to: 

Milbank,
Tweed, Hadley & McCloy LLP

601 South Figueroa Street, 30th Floor

Los Angeles, CA 90017

Attention: Thomas C. Janson, Esq. 

If
to KCS or the Surviving Company:

Kansas City Southernel P.O. Box 219335

427 West 12th Street

Kansas City, MO 64105 

With
a copy (which shall not constitute notice) to: 

Sonnenschein
Nath & Rosenthal

4520 Main Street, Suite 1100

Kansas City, MO 64111

Attention: John F. Marvin, Esq. 

Any
party hereto may from time to time change its address for notices under this Section 12.5 by giving at least 10 days' notice of such changed address to the other Parties hereto. 

        Section 12.6 Headings.    The headings herein are for convenience only, do not constitute a part of this Agreement and shall not
be deemed to limit or affect any of the provisions of this Agreement. 

42

 

        Section 12.7 Binding Effect; Persons Benefiting; No Assignment.    This Agreement shall inure to the benefit of and be binding
upon the Parties and their respective successors and assigns. No provision of this Agreement is intended or shall be construed to confer upon any entity or Person other than the Parties and their
respective successors and permitted assigns any right, remedy or claim under or by reason of this Agreement or any part hereof. This Agreement may not be assigned by any of the Parties without the
prior written consent of the other Parties. 

        Section 12.8 No Third Party Beneficiaries.    This Agreement is intended for the benefit of the Parties hereto and their
respective permitted successors and assigns and is not for the benefit of, nor may any provision of this Agreement be enforced by, any other Person. 

        Section 12.9 Counterparts.    This Agreement may be executed in two or more counterparts, each original or facsimile of which
shall be deemed an original, but all of which taken together shall constitute one and the same agreement, it being understood that all of the Parties need not sign the same counterpart. 

        Section 12.10 Specific Enforcement.    The Parties hereto acknowledge and agree that irreparable damage would occur in the event
that any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached. It is accordingly agreed that each of the Parties hereto shall be
entitled to an injunction or injunctions to prevent or cure breaches of the provisions of this Agreement by the other and to enforce specifically the terms and provisions of this Agreement, this being
in addition to any other remedy to which they may be entitled by law or equity. 

        Section 12.11 Governing Law; Dispute Resolution.    

        (a)   Resolution
of any and all disputes between KCS and one or more of Sellers (each of KCS, on the one hand, and one or more of the Sellers, on the other hand, a "Dispute
Party" and together, the "Dispute Parties') arising from or in connection with this Agreement, the Ancillary Agreements or any transactions contemplated by this Agreement or the Ancillary Agreements,
whether based on contract, tort, common law, equity, statute, regulation, order or otherwise, ("Disputes") including Disputes arising in connection with claims by third persons, shall be exclusively
governed by and settled in accordance with the provisions of this Section 12.11; provided, that the foregoing shall not preclude equitable or other judicial relief to enforce the provisions
hereof or to preserve the status quo pending resolution of Disputes hereunder. 

        (b)   THIS
AGREEMENT, THE LEGAL RELATIONS BETWEEN THE PARTIES HERETO AND THE ADJUDICATION AND ENFORCEMENT THEREOF, SHALL BE GOVERNED BY AND INTERPRETED AND CONSTRUED IN
ACCORDANCE WITH THE SUBSTANTIVE LAWS OF THE STATE OF DELAWARE AND THE FEDERAL LAWS OF THE UNITED STATES OF AMERICA, WITHOUT REGARD TO APPLICABLE CHOICE OF LAW PROVISIONS THEREOF. 

        (c)   As
to any Dispute which is not resolved in the ordinary course of business, the Dispute Parties shall first attempt in good faith to promptly resolve any Dispute by
negotiations between executives. Either of the Dispute Parties may initiate this procedure by delivery of written notice of the Dispute (the "Dispute Notice") to the other. Not later than
20 days after delivery of the Dispute Notice, one executive of one of the Dispute Parties with authority to settle the Dispute shall meet with the one executive of the other Dispute Party with
authority to settle the Dispute at a reasonably acceptable time and place, and thereafter as such executives shall deem reasonably necessary. The executives shall exchange relevant information and
endeavor to resolve the Dispute. Prior to any such meeting, each Dispute Party's executive shall advise the other as to any individuals who will attend such meeting with the executive. All
negotiations pursuant to this Section 12.11(c) shall be confidential and shall be treated as compromise negotiations for purposes of Rule 408 of the Federal Rules of Evidence and
similarly under other local or foreign rules of evidence. 

43

 

        (d)   Each
Dispute Party hereby agrees to submit all Disputes not resolved pursuant to Section 12.11(c) hereof to final and binding arbitration in New York, New York.
Either Dispute Party may initiate such arbitration by delivery of a demand therefor (the "Arbitration Demand") to the other Dispute Party not sooner than 60 days after the date of delivery of
the Dispute Notice but promptly thereafter; provided, that if a Dispute Party rejects participation in the procedures provided under Section 12.11(c), the other Dispute Party may initiate
arbitration at such earlier time as such rejection shall become reasonably apparent, and, whenever arbitration is initiated, may seek recovery of any damages or expenses arising from such rejection,
including attorney's fees and expenses, Arbitration Costs (as defined below) in connection with arbitration hereunder. 

          (i)  Three
Arbitrators shall be appointed (the "Arbitrators"), one of whom shall be appointed by KCS, one by TMM, and the third of whom, who shall act as the chairman of the
arbitral tribunal, shall be
appointed by the first two Arbitrators within 10 business days of the first two Arbitrators confirmation by the American Arbitration Association. Each Party agrees that Sellers shall be considered
jointly as one side for the purposes of constitution of the arbitration tribunal hereunder. If either Dispute Party fails to appoint an Arbitrator within 10 business days of a request in writing by
the other Dispute Party to do so or if the first two Arbitrators cannot agree on the appointment of the third Arbitrator within 10 business days of their confirmation by the American Arbitration
Association, then such Arbitrator shall be appointed by the American Arbitration Association in accordance with its Commercial Arbitration Rules. As soon as the arbitration tribunal has been convened,
a hearing date shall be set within 15 days thereafter; provided, that the Arbitrators may extend the date of the hearing upon request of any Dispute Party to the extent necessary to insure that
such Dispute Party is given a reasonable period of time to prepare for the hearing. Written submittals in the English language shall be presented and exchanged by both Dispute Parties five business
days before the hearing date. At such time the Dispute Parties shall also exchange copies of all documentary evidence upon which they will rely at the arbitration hearing and a list of the witnesses
whom they intend to call to testify at the hearing. The Arbitrators shall make their determination as promptly as practicable after conclusion of the hearing. 

         (ii)  The
arbitration shall be conducted in the English language pursuant to the Commercial Arbitration Rules of American Arbitration Association. Notwithstanding the
foregoing, (A) each Dispute Party shall have the right to audit the books and records of the other Dispute Party that are reasonably related to the Dispute; (B) each Dispute Party shall
provide to the other, reasonably in advance of any hearing, copies of all documents which a Dispute Party intends to present in such hearing; (C) all hearings shall be conducted on an expedited
schedule; and (D) all proceedings shall be confidential, except that either Dispute Party may at its expense make a stenographic record thereof. 

        (iii)  The
Arbitrators shall endeavor to complete all hearings not later than 120 days after their tribunal has been convened, and shall make a final award as promptly
as practicable thereafter. Such award shall be communicated, in writing, by the Arbitrators to the Dispute Parties, and shall contain specific findings of fact and conclusions of law in accordance
with the governing law set forth in Section 12.11(c) of this Agreement. Any award of such Arbitrators shall be final and binding upon the Parties to this Agreement and shall not be attacked by
any of the Parties to this Agreement in any court of law and may be enforced in any court having jurisdiction, including expressly the courts of the State of Delaware, United States of America, and
the courts of the Federal District of Mexico. The Arbitrators shall apportion all costs and expenses of the arbitration, including the Arbitrators' fees and expenses, fees and expenses of experts and
fees and expenses of translators ("Arbitration Costs") between the prevailing and non-prevailing Dispute Party as the Arbitrators shall deem fair and reasonable. In circumstances where
(A) a Dispute has been asserted or defended against on grounds that the Arbitrators deem manifestly unreasonable, 

44

 

or
(B) the non-prevailing Dispute Party has rejected participation in procedures under Section 12.11(c), the Arbitrators may assess all Arbitration Costs against the
non-prevailing Dispute Party and may include in the award the prevailing Dispute Party's attorney's fees and expenses in connection with any and all proceedings under this
Section 12.11. Notwithstanding the foregoing, in no event may the arbitrator award multiple or punitive damages. 

        (e)   Pursuant
to an agreement of the Parties hereto or a judicial determination that a Dispute is not subject to final and binding arbitration as set forth in
Section 12.11, KCS and each of Sellers irrevocably agrees that any legal action or proceeding against it with respect to this Agreement and any transaction contemplated by this Agreement shall
be brought only in the courts of the State of Delaware, or of Federal courts of the United States of America sitting in Delaware, and by execution and delivery of this Agreement, KCS and each of
Sellers irrevocably submits to the venue and jurisdiction of each such court and irrevocably waives any objection or defense such party may have to venue or personal jurisdiction in any such court for
the purpose of resolving any claim, dispute, cause of action arising out of or related to this Agreement (including any claim that the suit or action has been brought in an inconvenient forum and any
right to which it may become entitled on account of place of residence or domicile), the alleged breach of this Agreement, the enforcement of the terms of this Agreement, the Acquisition, the
Ancillary Agreements and the other terms contemplated hereby and thereby. A final judgment in any suit, action or proceeding shall be conclusive and may be enforced in any court where jurisdiction
over the Parties may be had or in which the Parties are subject to service of process. 

        (f)    Each
of the parties hereto irrevocably appoints CT Corporation (the "Process Agent"), at 1209 Orange Street, Wilmington, County of New Castle, Delaware 19801
(302-658-7581), respectively as its agent and true and lawful attorney-in-fact in its name, place and stead to accept on behalf of each of the parties
and their respective properties and revenues, service of copies of the summons and complaint and any other process which may be served in any such suit, action or proceeding brought in the State of
Delaware, and each of the parties hereto agrees that failure of the Process Agent to give any notice of any such service of process to any of the parties hereto shall not impair or affect the validity
of such service or the enforcement of any judgment based thereon. 

        Section 12.12 Announcements.    KCS and TMM shall consult with each other before issuing, and provide each other the opportunity
to review, comment on and concur with, any press release or other public statement with respect to this Agreement, the Acquisition, the Ancillary Agreements and the other transactions contemplated
hereby and thereby, except as either party may determine is otherwise required by Applicable Law, judicial or administrative action or any requirement of the NYSE or any other applicable
self-regulatory organization. 

        Section 12.13 Termination Fee.    In the event of (i) a termination pursuant to Section 9.1(a)(v), the Party
experiencing the Change of Control shall promptly after a demand therefor remit to the Party terminating in immediately available funds the sum of $18 million and (ii) a termination
pursuant to Section 9.1(a)(iii) or 9.1(a)(iv) as a result of the failure of the stockholders of KCS or of TMM to approve the Acquisition if at or prior to the meeting of such
stockholders to approve the Acquisition, the Board of Directors of KCS, in the case of the KCS Stockholders' meeting, or the Board of Directors of TMM, in the case of the TMM Stockholders' meeting,
shall have failed to recommend or shall have withdrawn and not reinstated its recommendation of, the Acquisition, then the Party whose stockholders shall not have approved the Acquisition shall remit
to the other Party, promptly after a demand therefor, in immediately available funds, the sum of $18 million. The receipt of any sums pursuant to this Section 12.13 shall not preclude or
diminish any other rights a Party may have under this Agreement. 

[Rest of page intentionally left blank]

45

 

        IN
WITNESS WHEREOF, the Parties have caused this Agreement to be executed as of the date first above written. 

	 	 	KANSAS CITY SOUTHERN
	 	 	 	 
	 	 	By:	 
	 	 	 	

	 	 	Name:

Title:
	 	 	 	 
	 	 	 	 
	 	 	KARA Sub, Inc.
	 	 	 	 
	 	 	By:	 
	 	 	 	

	 	 	Name:

Title:
	 	 	 	 
	 	 	 	 
	 	 	GRUPO TMM, S.A.
	 	 	 	 
	 	 	By:	 
	 	 	 	

	 	 	Name:

Title:
	 	 	 	 
	 	 	By:	 
	 	 	 	

	 	 	Name:

Title:
	 	 	 	 
	 	 	 	 
	 	 	TMM HOLDINGS, S.A. de C.V.
	 	 	 	 
	 	 	By:	 
	 	 	 	

	 	 	Name:

Title:
	 	 	 	 
	 	 	By:	 
	 	 	 	

	 	 	Name:

Title:
	 	 	 	 
	 	 	 	 
	 	 	TMM MULTIMODAL, S.A. de C.V.
	 	 	 	 
	 	 	By:	 
	 	 	 	

	 	 	Name:

Title:
	 	 	 	 
	 	 	By:	 
	 	 	 	

	 	 	Name:

Title:

46

QuickLinks

Exhibit 10.25

Table of Contents

TABLE OF DEFINED TERMS

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00063-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00063-of-00352.parquet"}]]