Document:

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                                                                    EXHIBIT 10.3
                                                                  EXECUTION COPY

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                              AMENDED AND RESTATED
                                 LOAN AGREEMENT

                                     BETWEEN

                           GW SERVICIOS, S.A. DE C.V.

                                       AND

              COMPANIA DE FERROCARRILES CHIAPAS-MAYAB, S.A. DE C.V.

                                       AND

                   NEDERLANDSE FINANCIERINGS-MAATSCHAPPIJ VOOR
                            ONTWIKKELINGSLANDEN N.V.

                             DATED DECEMBER 5, 2000

                    AMENDED AND RESTATED AS OF MARCH 15, 2005

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                                      - i -

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
Article or
 Section                     Item                     Page No.
---------                    ----                     --------
<S>                                                   <C>
ARTICLE I..........................................       1

DEFINITIONS AND INTERPRETATION.....................       1

   Section 1.01. General Definitions...............       1
   Section 1.02. Financial Definitions.............      14
   Section 1.03. Financial Calculations............      19
   Section 1.04. Interpretation....................      19
   Section 1.05. Business Day Adjustment...........      20

ARTICLE II.........................................      20

THE PROJECT, PROJECT COST AND FINANCIAL PLAN.......      20

   Section 2.01. The Project.......................      20
   Section 2.02. Project Cost and Financial Plan...      20

ARTICLE III........................................      21

THE FMO LOAN.......................................      21

   Section 3.01. The FMO Loan......................      21
   Section 3.02. [reserved]........................      21
   Section 3.03. Interest..........................      22
   Section 3.04. Change in Interest Period.........      23
   Section 3.05. Default Rate Interest.............      23
   Section 3.06. Repayment.........................      24
   Section 3.07. Prepayment........................      24
   Section 3.08. Fees..............................      25
   Section 3.09. Currency and Place of Payments....      26
   Section 3.10. Allocation of Partial Payments....      26
   Section 3.11. Increased Costs...................      27
   Section 3.12. Unwinding Costs...................      27
   Section 3.13. [reserved]........................      27
   Section 3.14. Taxes.............................      27
   Section 3.15. Expenses..........................      28
   Section 3.16. Notes.............................      29

ARTICLE IV.........................................      29
</TABLE>

                     Amended and Restated FMO Loan Agreement

<PAGE>

                                      - ii -

<TABLE>
<S>                                                                                       <C>
REPRESENTATIONS AND WARRANTIES.........................................................   29

   Section 4.01. Representations and Warranties........................................   29
   Section 4.02. FMO Reliance..........................................................   32

ARTICLE V..............................................................................   32

CONDITIONS OF DISBURSEMENT.............................................................   32

   Section 5.01. Conditions of Effectiveness...........................................   32
   Section 5.02  FMO Notice; Amendment and Restatement; Conditions for FMO's Benefit...   34

ARTICLE VI.............................................................................   34

PARTICULAR COVENANTS...................................................................   34

   Section 6.01. Affirmative Covenants.................................................   34
   Section 6.02. Negative Covenants Relating to the Borrower...........................   37
   Section 6.03. Negative Covenants Relating to the Project Company....................   41
   Section 6.04. Reporting Requirements................................................   45
   Section 6.05. Insurance.............................................................   49

ARTICLE VII............................................................................   52

EVENTS OF DEFAULT......................................................................   52

   Section 7.01. Acceleration after Default............................................   52
   Section 7.02. Events of Default.....................................................   52
   Section 7.03. Bankruptcy............................................................   55

ARTICLE VIII...........................................................................   55

MISCELLANEOUS..........................................................................   55

   Section 8.01. Saving of Rights......................................................   56
   Section 8.02. Notices...............................................................   56
   Section 8.03. English Language......................................................   57
   Section 8.04. Term of Agreement.....................................................   58
   Section 8.05. Applicable Law and Jurisdiction.......................................   58
   Section 8.06. Disclosure of Information.............................................   59
   Section 8.07. Successors and Assigns................................................   60
   Section 8.08. Amendments, Waivers and Consents......................................   60
   Section 8.09. Counterparts..........................................................   60

ARTICLE IX.............................................................................   60

THE MERGER.............................................................................   60
</TABLE>

                     Amended and Restated FMO Loan Agreement

<PAGE>

                                     - iii -

<TABLE>
<S>                                                                <C>
   Section 9.01. Conditions Precedent of the Merger.............   60
   Section 9.02. Acknowledgment of the Borrower.................   61

ANNEX A.........................................................   63

[RESERVED]......................................................   63

ANNEX B.........................................................   64

MINIMUM INSURANCE REQUIREMENTS..................................   64

ANNEX C.........................................................   65

[RESERVED]......................................................   65

SCHEDULE 1......................................................   66

FORM OF CERTIFICATE OF INCUMBENCY AND AUTHORITY.................   66

SCHEDULE 2......................................................   68

FORM OF CERTIFICATION OF REPRESENTATIONS AND WARRANTIES.........   68

SCHEDULE 3......................................................   70

FORM OF NOTICE OF EFFECTIVENESS.................................   70

SCHEDULE 4......................................................   71

FORM OF SERVICE OF PROCESS LETTER...............................   71

SCHEDULE 5......................................................   73

[RESERVED]......................................................   73

SCHEDULE 6......................................................   74

FORM OF LETTER TO BORROWER'S AUDITORS...........................   74

SCHEDULE 7......................................................   76

FORM OF BORROWER'S CERTIFICATION ON DISTRIBUTION OF DIVIDENDS...   76
</TABLE>

                     Amended and Restated FMO Loan Agreement

<PAGE>

                                     - iv -

<TABLE>
<S>                                                            <C>
SCHEDULE 8..................................................   78

[RESERVED]..................................................   78

SCHEDULE 9..................................................   79

INFORMATION TO BE INCLUDED IN ANNUAL REVIEW OF OPERATIONS...   79

SCHEDULE 10.................................................   81

FORM OF ANNUAL MONITORING REPORT............................   81

SCHEDULE 11.................................................   85

FORM OF NOTES...............................................   85
</TABLE>

                     Amended and Restated FMO Loan Agreement

<PAGE>

                       AMENDED AND RESTATED LOAN AGREEMENT

      AMENDED AND RESTATED LOAN AGREEMENT, dated December 5, 2000, as amended
and restated as of March 15, 2005, between:

      (1)   GW SERVICIOS, S.A. DE C.V., a sociedad anonima de capital variable
            organized and existing under the laws of the United Mexican States
            (the "Borrower," provided, however, that after the Merger (as
            defined below) the "Borrower" shall mean the surviving entity);

      (2)   COMPANIA DE FERROCARRILES CHIAPAS-MAYAB, S.A. DE C.V., a sociedad
            anonima de capital variable organized and existing under the laws of
            the United Mexican States (the "Project Company"); and

      (3)   NEDERLANDSE FINANCIERINGS-MAATSCHAPPIJ VOOR ONTWIKKELINGSLANDEN
            N.V., a limited liability company organized and existing under the
            laws of The Netherlands ("FMO").

      (A) Under the terms of a loan agreement dated December 5, 2000 between the
Borrower, the Project Company and FMO (the "Original FMO Loan Agreement"), FMO
made a loan to the Borrower in the principal amount of seven million Dollars
($7,000,000), of which the principal amount of four million six hundred sixty
four thousand Dollars ($4,664,000) is currently outstanding (which amount shall
be reduced to four million five hundred seventeen thousand eight hundred ninety
and 91/100th Dollars ($4,517,890.91) after prepayment of the amount set forth in
Section 5.01(b)).

      (B) The Borrower, the Project Company and FMO desire to modify the
Original FMO Loan Agreement in order to, among other things, extend the
repayment term of the FMO Loan (as defined below) and make other changes as more
fully set forth herein.

      (C) In order to accomplish the foregoing, the Borrower, the Project
Company and FMO are amending and restating in its entirety the Original FMO Loan
Agreement as set forth herein.

                                    ARTICLE I

                         DEFINITIONS AND INTERPRETATION

      Section 1.01. General Definitions. Wherever used in this Agreement, the
following terms have the meanings opposite them:

                     Amended and Restated FMO Loan Agreement

<PAGE>
                                     - 2 -

"A Loan"                         the loan specified in Section 3.01(a) of the
                                 IFC Loan Agreement or, as the context requires,
                                 its principal amount from time to time
                                 outstanding;

"Accounting Principles"          United States Generally Accepted Accounting
                                 Principles (US-GAAP) promulgated by the
                                 Financial and Accounting Standards Board,
                                 together with its pronouncements thereon from
                                 time to time, and applied on a consistent
                                 basis;

"Affiliate"                      any Person directly or indirectly controlling,
                                 controlled by or under common control with, the
                                 Borrower or the Project Company (for purposes
                                 of this definition, "control" means the power
                                 to direct the management or policies of a
                                 Person, directly or indirectly, whether through
                                 the ownership of shares or other securities, by
                                 contract or otherwise, provided that the direct
                                 or indirect ownership of ten per cent (10%) or
                                 more of the voting share capital of a Person is
                                 deemed to constitute control of that Person,
                                 and "controlling" and "controlled" have
                                 corresponding meanings);

"Asset Purchase
Agreement"                       the Asset Purchase Agreement dated as of June
                                 18, 1999 between the Project Company and GoM;

"Auditors"                       PricewaterhouseCoopers L.L.P, or such other
                                 firm that each of the Borrower and the Project
                                 Company appoints from time to time as its
                                 auditors pursuant to Section 6.01 (d)
                                 (Affirmative Covenants);

"Authority"                      any national, supranational, regional or local
                                 government or governmental, administrative,
                                 fiscal, judicial, or government-owned body,
                                 department, commission, authority, tribunal,
                                 agency or entity, or central bank (or any
                                 Person, whether or not government owned and
                                 howsoever constituted or called, that exercises
                                 the functions of a central bank);

"Authorization"                  any consent, registration, filing, agreement,
                                 notarization, certificate, license, approval,
                                 permit, authority or exemption from, by or with
                                 any Authority, whether given by express action
                                 or deemed given by failure to act within any
                                 specified time period and all corporate,
                                 creditors' and shareholders' approvals or
                                 consents;

"Authorized

                     Amended and Restated FMO Loan Agreement

<PAGE>

                                      - 3 -

Representative"                  any natural person who is duly authorized by
                                 the Borrower or the Project Company to act on
                                 its behalf for the purposes specified in, and
                                 whose name and a specimen of whose signature
                                 appear on, the Certificate of Incumbency and
                                 Authority most recently delivered by the
                                 Borrower and the Project Company to FMO;

"B Loan"                         the loan specified in Section 3.01(b) of the
                                 IFC Loan Agreement or, as the context requires,
                                 its principal amount from time to time
                                 outstanding;

"Business Day"                   a day when banks are open for business in
                                 New York, New York or, solely for the purpose
                                 of determining the FMO Interest Rate other than
                                 pursuant to Section 3.03 (d)(ii)(Interest),
                                 London, England;

"CAP"                            the Corrective Action Plan dated August 4,
                                 2000, prepared by the Sponsor on behalf of the
                                 Project Company;

"Certificate of Incumbency
and Authority"                   a certificate provided FMO by each of the
                                 Borrower and the Project Company in the form of
                                 Schedule 1;

"Charter"                        with respect to any Person, the estatutos
                                 sociales and any other constitutive document of
                                 such Person;

"Concession Agreement"           the Concession Agreement dated August 26, 1999
                                 between the Project Company and GoM;

"Concession Termination
Compensation Assignment
Notice"                          a notice to be filed with the GoM by the
                                 Project Company, pursuant to which the Project
                                 Company shall assign to the Senior Lenders any
                                 concession termination compensation payments
                                 payable to the Project Company by the GoM;

"Credit Line Agreement"          the Credit Line Agreement dated the date
                                 hereof, between the Borrower and the Project
                                 Company;

"Derivative Transaction"         any swap agreement, cap agreement, collar
                                 agreement, futures contract, forward contract
                                 or similar arrangement with respect to interest
                                 rates, currencies or commodity prices;

                     Amended and Restated FMO Loan Agreement

<PAGE>

                                      - 4 -

"Disbursement"                   any disbursement of the A Loan, the B Loan or
                                 the FMO Loan or all of the above, as the
                                 context requires;

"Dollars" and "$"                the lawful currency of the United States of
                                 America;

"Environmental
Assessment Report"               the Baseline Environmental Assessment report
                                 dated January 12, 1999, relating to the Project
                                 Company, prepared by TRC Environmental
                                 Corporation;

"Environmental, Health
and Safety Guidelines"           the IFC Environmental, Health and Safety
                                 Guidelines for Railway Systems, dated November
                                 20, 1995, a copy of which has been delivered
                                 to, and receipt of which has been acknowledged
                                 by letter dated February 10, 2000 by, each of
                                 the Borrower and the Project Company and which
                                 is incorporated herein by reference;

"Environmental
and Social Policies"             the IFC Policy on Environmental Assessment (OP
                                 4.01), dated October 1998, the IFC Policy on
                                 Pest Management (OP 4.09), dated June 1990, the
                                 World Bank Policy on Involuntary Resettlement
                                 (OD 4.30), dated June 1990, the World Bank
                                 Policy Note on Management of Cultural Property
                                 (OPN 11.03), dated September 1986, and the IFC
                                 Policy Statement on Forced Labor and Harmful
                                 Child Labor, dated March 1998, copies of which
                                 have been delivered to, and receipt of which
                                 has been acknowledged by letter dated February
                                 10, 2000 by, each of the Borrower and the
                                 Project Company and which are incorporated
                                 herein by reference;

"Event of Default"               any one of the events specified in Section 7.02
                                 (Events of Default);

"Existing Deficiency
Loan Agreements"                 collectively, the Deficiency Loan Agreement
                                 entered into among the Borrower, the Project
                                 Company and the Sponsor on December 17, 2004
                                 and the Deficiency Loan Agreement entered into
                                 among the same parties on September 21, 2004;

"Financial Plan"                 the proposed sources of financing for the
                                 Project set out in Section 2.02 (b) (Project
                                 Cost and Financial Plan);

                     Amended and Restated FMO Loan Agreement

<PAGE>

                                      - 5 -

"Financial Support
Agreement"                       the agreement entitled "Financial Support
                                 Agreement" dated December 5, 2000, as amended
                                 and restated as of the date hereof, among the
                                 Borrower, the Project Company, the Sponsor and
                                 the Senior Lenders;

"Financial Year"                 the accounting year of each of the
                                 Borrower and the Project Company commencing
                                 each year on January 1 and ending on the
                                 following December 31, or such other period as
                                 the Borrower and the Project Company, with
                                 FMO's consent, from time to time designate as
                                 their accounting year;

"FMO Disbursement"               any Disbursement of the FMO Loan;

"FMO Guarantee"                  the Guarantee Agreement dated December 5, 2000
                                 between the Project Company and FMO;

"FMO
Interest Rate"                   for any Interest Period, the rate at which
                                 interest is payable on the FMO Loan during
                                 that Interest Period, determined in accordance
                                 with Section 3.03 (Interest) and, if
                                 applicable, Section 3.04 (Change in Interest
                                 Period);

"FMO Loan"                       the loan specified in Section 3.01 (The FMO
                                 Loan) or, as the context requires, its
                                 principal amount from time to time outstanding;

"GoM"                            the Government of Mexico;

"GoM Letter"                     a letter from the GoM to the Project Company,
                                 inter alia, (i) consenting to the creation of
                                 the Security, (ii) approving the new ownership
                                 structure of the Project, (iii) confirming the
                                 right of the Senior Lenders to appoint a new
                                 operator upon the occurrence of an Event of
                                 Default pursuant to Article 18 of the Railroad
                                 Law, and (iv) agreeing to notify the Senior
                                 Lenders in the event the a notification, fine,
                                 warning or other action or communication from
                                 the GoM is taken with respect to, or delivered
                                 to the Project Company with respect to the
                                 actual or alleged noncompliance by the Project
                                 Company with the terms of the Concession
                                 Agreement;

"GoM Lien"                       the lien granted by the Project Company to the
                                 GoM pursuant to the Asset Purchase Agreement;

                     Amended and Restated FMO Loan Agreement

<PAGE>

                                      - 6 -

"IFC"                            International Finance Corporation, an
                                 international organization established by
                                 Articles of Agreement among its member
                                 countries including the United Mexican States;

"IFC Guarantee"                  the Guarantee Agreement dated December 5, 2000
                                 between the Project Company and IFC;

"IFC Loan"                       collectively, the A Loan and the B Loan or, as
                                 the context requires, the principal amount of
                                 the A Loan and the B Loan outstanding from time
                                 to time;

"IFC Shares"                     the aggregate of:

                                       (A)   all the shares in the share capital
                                             of the Borrower subscribed for and
                                             acquired by IFC pursuant to the
                                             Subscription Agreement;

                                       (B)   all shares of the Borrower to be
                                             subscribed or acquired by IFC after
                                             the execution of this agreement
                                             pursuant to the exercise of
                                             preemptive rights, options or
                                             warrants accruing to IFC in
                                             relation of any IFC Shares;

                                       (C)   all shares of the Borrower received
                                             by IFC after the execution of this
                                             agreement as a result of stock
                                             splits or stock dividends on any
                                             IFC Shares; and

                                       (D)   all shares (of any company)
                                             received by IFC in exchange,
                                             replacement or substitution of the
                                             IFC Shares;

"Increased Costs"                the amount certified in an Increased Costs
                                 Certificate to be the net incremental costs of,
                                 or reduction in return to, FMO in connection
                                 with the making or maintaining of the FMO Loan
                                 that result from:

                                 (i)   any change in any applicable law or
                                       regulation or directive (whether or not
                                       having force of law) or in its
                                       interpretation or application by any
                                       Authority charged with its
                                       administration; or

                     Amended and Restated FMO Loan Agreement

<PAGE>

                                      - 7 -

                                 (ii)  compliance with any request from, or
                                       requirement of, any central bank or other
                                       monetary or other Authority;

                                 which, in either case, after the date of this
                                 Agreement:

                                       (A)   imposes, modifies or makes
                                             applicable any reserve, special
                                             deposit or similar requirements
                                             against assets held by, or deposits
                                             with or for the account of, or
                                             loans made by, FMO;

                                       (B)   imposes a cost on FMO as a result
                                             of FMO having made the FMO Loan or
                                             reduces the rate of return on the
                                             overall capital of FMO that it
                                             would have achieved, had FMO not
                                             made the FMO Loan;

                                       (C)   changes the basis of taxation on
                                             payments received by FMO in respect
                                             of the FMO Loan (otherwise than by
                                             a change imposed by the
                                             jurisdiction of its incorporation
                                             or in any political subdivision of
                                             any such jurisdiction); or

                                       (D)   imposes on FMO any other condition
                                             regarding the making or maintaining
                                             of the FMO Loan;

"Increased Costs Certificate" a certificate provided from time to time by FMO
certifying:

                                 (i)   the circumstances giving rise to the
                                       Increased Costs;

                                 (ii)  that the costs of FMO have increased or
                                       the rate of return of either of them has
                                       been reduced as a result of the Increased
                                       Costs;

                                 (iii) that, FMO has, in its opinion, exercised
                                       reasonable efforts to minimize or
                                       eliminate the relevant increase or
                                       reduction, as the case may be; and

                                 (iv)  the amount of Increased Costs;

"Interest Determination

                     Amended and Restated FMO Loan Agreement

<PAGE>

                                      - 8 -

Date"                            except as otherwise provided in Section 3.03
                                 (d) (ii) (Interest) the second Business Day
                                 before the beginning of each Interest Period;

"Interest Payment Date"          March 15 and September 15 in any year or, in
                                 the case of any Interest Period of less than
                                 six (6) months, any day which is the 15th day
                                 of the month in which the relevant Interest
                                 Period ends;

"Interest Period"                each period of six (6) months or, in the
                                 circumstances referred to in Section 3.04
                                 (Change in Interest Period), each period of
                                 three (3) months or one (1) month determined
                                 pursuant to that Section, in each case
                                 beginning on an Interest Payment Date and
                                 ending on the day immediately before the next
                                 following Interest Payment Date, except in the
                                 case of the first period applicable to an FMO
                                 Disbursement when it means the period beginning
                                 on the date on which such FMO Disbursement is
                                 made and ending on the day immediately before
                                 the next following Interest Payment Date;

"ITISA"                          Impulsora Tlaxcalteca de Industrias, S.A. de
                                 C.V., a sociedad anonima de capital variable
                                 organized and existing under the laws of
                                 Mexico;

"Letter of Information"          the Letter of Information, dated March 8, 2000,
                                 provided to IFC by the Project Company with
                                 respect to the Project, as amended by the
                                 Letter of Information, dated November 14, 2000,
                                 provided to the Senior Lenders by the Borrower;

"LIBOR"                          the British Bankers' Association ("BBA")
                                 interbank offered rates for deposits in Dollars
                                 which appear on the relevant page of the
                                 Telerate Service (currently page 3750) or, if
                                 not available, on the relevant pages of any
                                 other service (such as Reuters Service or
                                 Bloomberg Financial Markets Service) that
                                 displays such BBA rates; provided that if BBA
                                 for any reason ceases (whether permanently or
                                 temporarily) to publish interbank offered rates
                                 for deposits in Dollars, "LIBOR" shall mean the
                                 rate determined pursuant to Section 3.03 (d)
                                 (Interest);

"Lien"                           any mortgage, pledge, charge, assignment,
                                 hypothecation, security interest, title
                                 retention, preferential right, trust
                                 arrangement, right of set-off, counterclaim or
                                 banker's lien, privilege or priority of any
                                 kind having the effect of security, any
                                 designation of loss payees or beneficiaries or

                     Amended and Restated FMO Loan Agreement

<PAGE>

                                      - 9 -

                                 any similar arrangement under or with respect
                                 to any insurance policy or any preference of
                                 one creditor over another arising by operation
                                 of law;

"Loans"                          collectively, the A Loan, the B Loan and the
                                 FMO Loan or, as the context requires, the
                                 principal amount of the A Loan, the B Loan and
                                 the FMO Loan outstanding from time to time;

"Long-term Contract"             any contract between the Borrower and the
                                 Project Company or between the Borrower and/or
                                 the Project Company and any third party, in
                                 each case with a term that is longer than one
                                 year and generating proceeds to the Borrower
                                 and/or the Project Company of at least
                                 $1,000,000 annually;

"Material Adverse Effect"

                                 a material adverse effect on:

                                 (i)   the Borrower or the Project Company, its
                                       assets or properties;

                                 (ii)  the Borrower's or the Project Company's
                                       business prospects (as reflected in the
                                       Project Company's base case projections)
                                       or financial condition;

                                 (iii) the implementation of the Project, the
                                       Financial Plan or the carrying on of the
                                       Borrower's or the Project Company's
                                       business or operations;

                                 (iv)  the ability of the Borrower or the
                                       Project Company to comply with its
                                       obligations under this Agreement or any
                                       other Transaction Document or Project
                                       Document; or

                                 (v)   the Sponsor, if any of the events
                                       specified in clauses (i) through (iv)
                                       above occurs with respect to the Sponsor;

"Mercantile Pledge
Agreements"                      collectively, the Mercantile Pledge Agreement,
                                 dated as of December 5, 2000 by and among the
                                 Sponsor, the Project Company, the Borrower and
                                 the Senior Lenders; and the Mercantile Pledge
                                 Agreement, dated as of December 5, 2000, by and
                                 among the Borrower, the Sponsor and the Senior
                                 Lenders;

                     Amended and Restated FMO Loan Agreement

<PAGE>

                                     - 10 -

"Merger"                         the proposed merger of the Project Company with
                                 and into the Borrower, with the Borrower as the
                                 surviving entity;

"Merger Deadline Date"           the later of (i) January 1, 2010 and (ii) the
                                 date that is six (6) months after the date of
                                 filing of the Project Company's tax return that
                                 demonstrates that the Project Company's net
                                 operating losses for tax purposes have been
                                 fully utilized;

"Merger Effective Date"          the date on which the Merger shall have been
                                 consummated and all of the conditions precedent
                                 to the Merger listed in Section 9.01 shall have
                                 been fully satisfied or waived;

"Mexico"                         the United Mexican States;

"Note" or "Notes"                the promissory notes referred to in Section
                                 3.16, or any of them;

"Official"                       any officer of a political party or candidate
                                 for political office in Mexico or any officer
                                 or employee (i) of the GoM (including any
                                 legislative, judicial, executive or
                                 administrative department, agency or
                                 instrumentality thereof) or (ii) of a public
                                 international organization;

"Person"                         any natural person, corporation, company,
                                 partnership, firm, voluntary association, joint
                                 venture, trust, unincorporated organization,
                                 Authority or any other entity whether acting in
                                 an individual, fiduciary or other capacity;

"Potential Event of Default"     any event or circumstance which would, with
                                 notice, lapse of time, the making of a
                                 determination or any combination thereof,
                                 become an Event of Default;

"Prohibited Payments"            any offer, gift, payment, promise to pay or
                                 authorization of the payment of any money or
                                 anything of value, directly or indirectly, to
                                 or for the use or benefit of any Official
                                 (including to or for the use or benefit of any
                                 other Person if the Borrower, the Project
                                 Company or the Sponsor knows, or has reasonable
                                 grounds for believing, that the other Person
                                 would use such offer, gift, payment, promise or
                                 authorization of payment for the benefit of any
                                 such Official), for the purpose of influencing
                                 any act or decision or omission of any Official
                                 in order to obtain, retain or direct business
                                 to, or to secure any improper benefit or
                                 advantage for, the Borrower, the Project
                                 Company, the Sponsor, their respective
                                 Affiliates or any other Person;

                     Amended and Restated FMO Loan Agreement

<PAGE>

                                     - 11 -

                                 provided that any such offer, gift, payment,
                                 promise or authorization of payment shall not
                                 be considered a Prohibited Payment if, in FMO's
                                 reasonable opinion, it (i) is lawful under
                                 applicable written laws and regulations or (ii)
                                 is made for the purpose of expediting or
                                 securing the performance of a routine
                                 governmental action (as such term is construed
                                 under applicable law);

"Project"                        the project described in Section 2.01 (The
                                 Project);

"Project Documents"              (i)   the Concession Agreement;

                                 (ii)  the Asset Purchase Agreement;

                                 (iii) the Technical Assistance Agreement;

                                 (iv)  the Security Trust Indenture;

                                 (v)   the Urgent Repairs Agreement;

                                 (vi)  the Credit Line Agreement;

"Put Option Agreement"           the agreement entitled "Put Option Agreement"
                                 dated December 5, 2000, as amended as of the
                                 date hereof, between the Sponsor, the Borrower
                                 and IFC;

"Railroad Law"                   Mexico's Law Regulating Railroad Services (Ley
                                 Reglamentaria del Servicio Ferroviario) and the
                                 applicable rules and regulations thereunder, as
                                 amended from time to time;

"Relevant Spread"                three and one-half per cent (3.5%) per annum;
                                 provided, that the "Relevant Spread" shall
                                 equal four per cent (4%) per annum for each
                                 Interest Period beginning on or after September
                                 15, 2008;

"SCT"                            the Secretaria de Comunicaciones y Transportes
                                 of Mexico;

"SCT Letter"                     a letter from SCT to the effect that the
                                 Project Company shall be entitled to
                                 indemnification pursuant to the applicable
                                 provisions of the Railroad Law, including
                                 Section 23 thereof, in the event of a
                                 unilateral modification of the Concession
                                 Agreement;

                     Amended and Restated FMO Loan Agreement

<PAGE>

                                     - 12 -

"Security"                       the security created by or pursuant to the
                                 Security Documents to secure all amounts owing
                                 by the Borrower to FMO and IFC under the
                                 Transaction Documents;

"Security Documents"             the documents providing for the Security
                                 consisting of:

                                 (i)   a first ranking pledge over all the
                                       present and future movable assets of the
                                       Project Company and the Borrower;

                                 (ii)  a first ranking mortgage over all the
                                       present and future immovable assets of
                                       each of the Project Company and the
                                       Borrower, if any;

                                 (iii) a first ranking pledge over all the
                                       present and future accounts receivable of
                                       each of the Project Company and the
                                       Borrower;

                                 (iv)  a first ranking pledge over all of the
                                       Project Company's title to, rights and
                                       interest in the Project Documents other
                                       than the Urgent Repairs Agreement;

                                 (v)   a first ranking pledge over all of the
                                       Project Company's or the Borrower's title
                                       to, rights and interest in all Long-term
                                       Contracts;

                                 (vi)  a first ranking pledge over all of the
                                       Project Company's and the Borrower's
                                       title to, rights and interest in their
                                       respective present and future bank
                                       accounts;

                                 (vii) a first ranking pledge over the Sponsor's
                                       shares in the Borrower;

                                 (viii)a first ranking pledge over the Sponsor's
                                       and the Borrower's shares in the Project
                                       Company; and

                                 (ix)  nomination of FMO as a loss
                                       payee/beneficiary in respect of the
                                       insurance obtained in connection with the
                                       assets subject to the Security Documents
                                       and a first ranking pledge over such
                                       insurance policies and proceeds;

                                 provided, that for all purposes of the Security
                                 Sharing Agreement dated December 5, 2000
                                 between FMO and

                     Amended and Restated FMO Loan Agreement

<PAGE>

                                     - 13 -

                                 IFC, the Sponsor Guarantee Agreement shall also
                                 be considered a Security Document;

"Security Trust
Indenture"                       the Security Trust Indenture dated August 17,
                                 1999 between the Project Company and the GoM;

"Senior Lenders"                 collectively, IFC and FMO;

"Sponsor"                        Genesee & Wyoming, Inc., a corporation
                                 organized and existing under the laws of the
                                 State of Delaware, United States of America;

"Sponsor Guarantee
Agreement"                       the agreement entitled "Sponsor Guarantee
                                 Agreement" dated as of the date hereof between
                                 the Sponsor and the Senior Lenders;

"Subscription Agreement"         the agreement entitled "Subscription Agreement"
                                 dated December 5, 2000 between the Borrower and
                                 IFC;

"Subsidiary"                     with respect to any Person, any entity:

                                 (i)   over 50% of whose capital is owned,
                                       directly or indirectly, by that Person;

                                 (ii)  for which that Person may nominate or
                                       appoint a majority of the members of the
                                       board of directors or such other body
                                       performing similar functions; or

                                 (iii) which is otherwise effectively controlled
                                       by that Person;

"Taxes"                          any present or future taxes, withholding
                                 obligations, duties and other charges of
                                 whatever nature levied by any Authority;

"Technical Assistance
Agreement"                       the Assistance Agreement dated June 16, 1999
                                 between the Project Company and the Sponsor, as
                                 amended by the Amended and Restated Assistance
                                 Agreement dated December 6, 2000, between the
                                 Project Company and the Sponsor;

"Transaction Documents"          (i)    this Agreement;

                     Amended and Restated FMO Loan Agreement

<PAGE>

                                     - 14 -

                                 (ii)   the IFC Loan Agreement;

                                 (iii)  the Financial Support Agreement;

                                 (iv)   the Security Documents;

                                 (v)    the Subscription Agreement;

                                 (vi)   the Put Option Agreement;

                                 (vii)  the Sponsor Guarantee Agreement;

                                 (viii) the IFC Guarantee;

                                 (ix)   the FMO Guarantee;

                                 (x)    the Concession Termination Compensation
                                        Assignment Notice; and

                                 (xi)   the Notes;

"Urgent Repairs
Agreement"                       the Set Price and Fixed Term Construction
                                 Agreement dated February 18, 2000 between the
                                 Project Company and ITISA; and

"World Bank"                     the International Bank for Reconstruction and
                                 Development, an international organization
                                 established by Articles of Agreement among its
                                 member countries.

      Section 1.02. Financial Definitions. (a) Wherever used in this Agreement,
unless the context otherwise requires, the following terms have the meanings
opposite them:

"Consolidated" or
"Consolidated Basis"             (with respect to any financial statements to be
                                 provided, or any financial calculation
                                 (including financial ratios) to be made, under
                                 or for the purposes of this Agreement and any
                                 other Transaction Document) the method referred
                                 to in Section 1.03 (d) (Financial
                                 Calculations);

"Current Assets"                 the aggregate of the Person's cash, marketable
                                 securities, trade and other receivables
                                 realizable within one year, prepaid expenses
                                 which are to be charged to income within one
                                 year and inventories, but excluding funds
                                 temporarily

                     Amended and Restated FMO Loan Agreement

<PAGE>
                                     - 15 -

                                 on hand pending application to property and
                                 equipment included in the Project;

"Current Liabilities"            the aggregate of all liabilities of the Person
                                 falling due on demand or within one year
                                 (including the portion of Long-term Debt
                                 falling due within one year), but excluding
                                 liabilities for property, plant and equipment
                                 to the extent that the amount of funds
                                 therefrom are excluded from the calculation of
                                 Current Assets;

"Current Ratio"                  the result obtained by dividing Current Assets
                                 by Current Liabilities;

"Debt"                           the aggregate of all obligations (whether
                                 actual or contingent) of the Person to pay or
                                 repay money including, without limitation:

                                 (i)   all Indebtedness for Borrowed Money;

                                 (ii)  the aggregate amount then outstanding of
                                       all liabilities of any party to the
                                       extent the Person guarantees them or
                                       otherwise directly or indirectly
                                       obligates itself to pay them;

                                 (iii) all liabilities of the Person (actual or
                                       contingent) under any conditional sale or
                                       a transfer with recourse or obligation to
                                       repurchase, including, without
                                       limitation, by way of discount or
                                       factoring of book debts or receivables;
                                       and

                                 (iv)  all liabilities of the Person (actual or
                                       contingent) under its Charter, any
                                       resolution of its shareholders, or any
                                       agreement or other document binding on
                                       the Person to redeem any of its shares;

"Debt Service
Coverage Ratio"                  the ratio obtained by dividing:

                                 (i)   the aggregate, for the four (4) financial
                                       quarter period most recently ended prior
                                       to the relevant date of calculation for
                                       which audited Consolidated financial
                                       statements of the Person are available,
                                       of (A) net income after deduction of
                                       taxes payable on that net income (whether
                                       or not actually paid), (B) Non-Cash Items
                                       and (C) the amount of all payments that
                                       were due during such four (4) financial
                                       quarter

                     Amended and Restated FMO Loan Agreement

<PAGE>

                                     - 16 -

                                       period (whether or not actually paid) on
                                       account of interest and other charges on
                                       Debt; less amounts actually paid during
                                       such period in respect of any capital
                                       expenditure, other than capital
                                       expenditures required for carrying out
                                       the Project as described in Section
                                       2.02(a) or essential to the Project
                                       Company's business and operations;

                                       by

                                 (ii)  the aggregate of (A) all scheduled
                                       payments that fall due during the four
                                       (4) financial quarter period beginning
                                       with the financial quarter in which the
                                       relevant date of calculation falls
                                       (whether or not actually paid) on account
                                       of principal of Long-term Debt, and
                                       interest and other charges on Debt and
                                       (B) without double counting with respect
                                       to any payment already counted in the
                                       preceding sub-paragraph (A), any payment
                                       made or required to be made to any debt
                                       service account during such four (4)
                                       quarter period under the terms of any
                                       agreement providing for the Debt;

"EBITDA"                         the earnings of the Person before interest,
                                 taxes, depreciation and amortization,
                                 extraordinary increases or losses, gain or loss
                                 on discontinued operations, and currency gains
                                 or losses;

"Free Cash Flow"                 in respect of any financial year of any Person
                                 and as reflected in such Person's financial
                                 statements for such financial year:

                                 (i)   the sum of such Person's (A) net income
                                       plus (B) Non-Cash Items (excluding
                                       accrued but unpaid interest on the FMO
                                       Loan and the IFC Loan);

                                 minus

                                 (ii)  the sum of (A) capital expenditures made
                                 by such Person plus (B) repayments on the
                                 principal component of Debt made by such
                                 Person;

"Indebtedness for
Borrowed Money"                  all obligations of the Person to repay money
                                 including, without limitation, with respect to:

                     Amended and Restated FMO Loan Agreement

<PAGE>

                                     - 17 -

                                 (i)   borrowed money;

                                 (ii)  the outstanding principal amount of any
                                       bonds, debentures, notes, loan stock,
                                       commercial paper, acceptance credits,
                                       bills or promissory notes drawn,
                                       accepted, endorsed or issued by the
                                       Person;

                                 (iii) any credit to the Person from a supplier
                                       of goods or services under any
                                       installment purchase or other similar
                                       arrangement with respect to goods or
                                       services (except trade accounts that are
                                       payable in the ordinary course of
                                       business and included in Current
                                       Liabilities);

                                 (iv)  non-contingent obligations of the Person
                                       to reimburse any other Person with
                                       respect to amounts paid by that Person
                                       under a letter of credit or similar
                                       instrument (excluding any letter of
                                       credit or similar instrument issued for
                                       the benefit of the Person with respect to
                                       trade accounts that are payable in the
                                       ordinary course of business and included
                                       in Current Liabilities);

                                 (v)   amounts raised under any other
                                       transaction having the financial effect
                                       of a borrowing and which would be
                                       classified as a borrowing (and not as an
                                       off-balance sheet financing) under the
                                       Accounting Principles including, without
                                       limitation, under leases or similar
                                       arrangements entered into primarily as a
                                       means of financing the acquisition of the
                                       asset leased;

                                 (vi)  the amount of the Person's obligations
                                       pursuant to Derivative Transactions which
                                       consist of swap, collar and cap
                                       agreements entered into in connection
                                       with other Debt of the Person, provided
                                       that for the avoidance of double counting
                                       and for so long as any such swap, collar
                                       or cap agreement is in effect, that Debt
                                       will be included in Indebtedness for
                                       Borrowed Money pursuant to the terms of
                                       the relevant Derivative Transaction and
                                       not the terms of the agreement providing
                                       for that Debt when it was incurred; and

                                 (vii) any premium payable on a mandatory
                                       redemption or replacement of any of the
                                       foregoing obligations;

                     Amended and Restated FMO Loan Agreement

<PAGE>

                                     - 18 -

"Long-term Debt"                 that part of the Debt the final maturity of
                                 which, by its terms or the terms of any
                                 agreement relating to it, falls due more than
                                 one year after the date of its incurrence;

"Long-term Debt to
Tangible Net Worth Ratio"        the result obtained by dividing Long-term Debt
                                 by Tangible Net Worth;

"Non-Cash Items"                 for any period, the net aggregate amount (which
                                 may be a positive or negative number) of all
                                 non-cash expenses and non-cash credits which
                                 have been subtracted or, as the case may be,
                                 added in calculating net income during that
                                 period, including, without limitation,
                                 depreciation, amortization, deferred taxes,
                                 provisions for severance pay of staff and
                                 workers, and credits resulting from revaluation
                                 of the assets' book value;

"Short-term Debt"                all Debt other than Long-term Debt.

"Tangible Net Worth"             on any date means (i) the sum of the Person's
                                 total assets, minus (ii) the sum of:

                                 (A)   the Person's total liabilities, plus

                                 (B)   (to the extent not already included in
                                       the Person's total liabilities) an amount
                                       equal to the sum of the maximum liability
                                       of the Person under any guarantee or
                                       other obligation for the financial or
                                       other obligation of any third party, the
                                       amount of any taxes and any other
                                       commitments which, in each case in
                                       accordance with the Accounting
                                       Principles, should be recorded in the
                                       notes of the financial statements as a
                                       liability, plus

                                 (C)   intangible assets of the Person (for
                                       purposes of this Agreement, the
                                       Concession Agreement (having a value of
                                       $7.5 million) shall be considered a
                                       tangible asset), plus

                     Amended and Restated FMO Loan Agreement

<PAGE>
                                     - 19 -

                                 (D)   (to the extent not already included in
                                       the Person's total liabilities) any
                                       obligations of the Person under any
                                       capital lease (including any lease which
                                       should be capitalized in accordance with
                                       the Accounting Principles and any other
                                       lease which is in substance a financial
                                       lease).

      Section 1.03. Financial Calculations. (a) All financial calculations to be
made under, or for the purposes of, this Agreement and any other Transaction
Document shall be determined in accordance with the Accounting Principles and,
except as otherwise required to conform to any provisions of this Agreement,
shall be calculated from the then most recently issued Consolidated quarterly
financial statements which the Borrower is obligated to furnish to FMO under
Section 6.04 (a) (Reporting Requirements). Except as otherwise is indicated, all
financial calculations with respect to the definitions in Section 1.02 shall be
done on a Consolidated Basis.

      (b) Where quarterly financial statements are used for the purpose of
making certain financial calculations and those statements are with respect to
the last quarter of a Financial Year then, at FMO's option, those calculations
may instead be made from the Consolidated audited financial statements for the
relevant Financial Year.

      (c) For purposes of the payment of dividends, the payment of subordinated
debt and the payment of technical assistance fees under the Technical Assistance
Agreement, if any material adverse change in the financial condition of the
Borrower has occurred after the end of the period covered by the financial
statements used to make the relevant financial calculations, that material
adverse change shall also be taken into account in calculating the relevant
figures.

      (d) If a financial calculation is to be made under or for the purposes of
this Agreement or any other Transaction Document on a Consolidated Basis, that
calculation shall be made by reference to the sum of all amounts of similar
nature reported in the relevant financial statements of each of the entities
whose accounts are to be consolidated with the accounts of the Borrower plus or
minus the consolidation adjustments customarily applied to avoid double counting
of transactions among any of those entities, including the Borrower.

      Section 1.04. Interpretation. In this Agreement, unless the context
otherwise requires:

      (a) headings are for convenience only and do not affect the interpretation
of this Agreement;

      (b) words importing the singular include the plural and vice versa;

      (c) a reference to an Annex, Article, party, Schedule or Section is a
reference to that Article or Section of, or that Annex, party or Schedule to,
this Agreement;

                     Amended and Restated FMO Loan Agreement
<PAGE>

                                     - 20 -

      (d)   a reference to a document includes an amendment or supplement to, or
replacement or novation of, that document but disregarding any amendment,
supplement, replacement or novation made in breach of this Agreement; and

      (e)   a reference to a party to any document includes that party's
successors and permitted assigns.

      Section 1.05. Business Day Adjustment When the day on or by which a
payment is due to be made is not a Business Day, that payment shall be made on
or by the next succeeding Business Day. Interest, fees and charges (if any)
shall continue to accrue for the period from the due date that is not a Business
Day to that next succeeding Business Day.

                                   ARTICLE II

                  THE PROJECT, PROJECT COST AND FINANCIAL PLAN

      Section 2.01. The Project. The project to be financed consists of the
rehabilitation, modernization, and operation of the Chiapas and Mayab lines by
the Project Company pursuant to the Concession Agreement in the States of Oaxaca
and Chiapas (for the Chiapas line) and Campeche, Yucatan, Veracruz and Tabasco
(for the Mayab line), including repayment of all amounts outstanding under a
certain loan from Fleet National Bank, N.A., as further described in the Letter
of Information.

      Section 2.02. Project Cost and Financial Plan.(1) (a) The total estimated
cost of the Project is the equivalent of $49,150,000, as follows:

<TABLE>
<CAPTION>
                        $ million
                        equivalent    %
                        ----------   ----
<S>                     <C>          <C>
Concession investment       7.5      15.0
Rolling Stock              12.3      25.0
Urgent repair works         9.7      20.0
Intermodal                  1.4       3.0
Track rehabilitation        4.9      10.0
Locomotive repair           1.7       3.5
Locomotive purchase         2.2       4.5
Other                       1.0       2.0
                           ----      ----
         SUB-TOTAL         40.7      83.0
                           ====      ====
</TABLE>

---------------------
(1)   For purposes of this Section, an exchange rate of 9.4 Mexican Pesos = $1
      has been assumed.

                     Amended and Restated FMO Loan Agreement

<PAGE>
                                      -21-

<TABLE>
<S>                       <C>        <C>
Contingency                 1.0        2.0
Pre-opening expenses       1.35        3.0
Working capital             6.1       12.0
         SUB-TOTAL         8.45       17.0
                          -----      -----
TOTAL PROJECT COST        49.15      100.0
                          =====      =====
</TABLE>

(b)   The proposed sources of financing for the Project are as follows:

<TABLE>
<CAPTION>
                                 $ million
                                equivalent      %
                                ----------     ----
<S>                             <C>            <C>
Equity
Sponsor                            13.10       26.7
IFC                                 1.90        3.9
                                   -----       ----
         TOTAL EQUITY              15.00       30.5
                                   -----       ----
Long-term Debt
IFC "A" Loan                       10.50       21.4
FMO Loan                            7.00       14.2
IFC "B" Loan                       10.00       20.4
                                   -----       ----
         TOTAL LONG-TERM DEBT      27.50       56.0
                                   -----       ----
Cash generation                     6.65       13.5

TOTAL FINANCING                    49.15        100
                                   =====       ====
</TABLE>

                                   ARTICLE III

                                  THE FMO LOAN

      Section 3.01. The FMO Loan. Subject to the provisions of this Agreement,
FMO agrees to lend to the Borrower, and the Borrower agrees to borrow from FMO,
the FMO Loan in the aggregate amount of seven million US Dollars ($7,000,000).

      Section 3.02. [reserved].

                     Amended and Restated FMO Loan Agreement

<PAGE>
                                      -22-

      Section 3.03. Interest. Subject to the provisions of Section 3.05 (Default
Rate Interest), the Borrower shall pay interest on the FMO Loan in accordance
with this Section 3.03:

      (a)   During each Interest Period, the FMO Loan (or, with respect to the
first Interest Period for the FMO Disbursement, the amount of the Disbursement)
shall bear interest at the applicable FMO Interest Rate for that Interest
Period.

      (b)   Interest on the FMO Loan shall accrue from day to day, be prorated
on the basis of a 360-day year for the actual number of days in the relevant
Interest Period and be payable in arrears on the Interest Payment Date
immediately following the end of that Interest Period; provided that if the FMO
Disbursement is made less than fifteen (15) days before an Interest Payment
Date, interest on the FMO Disbursement shall be payable commencing on the second
Interest Payment Date following the date of the FMO Disbursement.

      (c)   Subject to Section 3.04 (Change in Interest Period), the FMO
Interest Rate for any Interest Period shall be the rate which is the sum of:

            (i)   the Relevant Spread; and

            (ii)  LIBOR on the Interest Determination Date for that Interest
                  Period for six (6) months (or, in the case of the first
                  Interest Period for any Disbursement, for one (1) month, two
                  (2) months, three (3) months or six (6) months, whichever
                  period is closest to the duration of the relevant Interest
                  Period (or, if two periods are equally close, the longer one))
                  rounded upward to the nearest three decimal places.

      (d)   If, for any Interest Period, FMO cannot determine LIBOR by reference
to the Telerate Service or any other service that displays BBA rates, FMO shall
notify the Borrower and shall instead determine LIBOR:

            (i)   on the second Business Day before the beginning of the
                  relevant Interest Period by calculating the arithmetic mean
                  (rounded upward to the nearest three decimal places) of the
                  offered rates advised to FMO on or around 11:00 a.m., London
                  time, for deposits in Dollars and otherwise in accordance with
                  Section 3.03 (c) (ii), by any four (4) major banks active in
                  Dollars in the London interbank market, selected by FMO;
                  provided that if less than four quotations are received, FMO
                  may rely on the quotations so received if not less than two
                  (2); or

            (ii)  if less than two (2) quotations are received from the banks in
                  London in accordance with subsection (i) above, on the first
                  day of the relevant Interest Period, by calculating the
                  arithmetic mean (rounded upward to the nearest three decimal
                  places) of the offered

                     Amended and Restated FMO Loan Agreement

<PAGE>
                                      -23-

                  rates advised to FMO on or around 11:00 a.m., New York time,
                  for loans in Dollars and otherwise in accordance with Section
                  3.03 (c) (ii), by a major bank or banks in New York, New York
                  selected by FMO.

      (e)   On each Interest Determination Date for any Interest Period, FMO
shall determine the FMO Interest Rate applicable to that Interest Period and
promptly notify the Borrower of that rate.

      (f)   The determination by FMO, from time to time, of the FMO Interest
Rate shall be final and conclusive and bind the Borrower (unless the Borrower
shows to FMO's satisfaction that the determination involves manifest error).

      Section 3.04. Change in Interest Period. Without prejudice to the
provisions of Section 3.05 (Default Rate Interest), if at any time the Borrower
fails to pay any amount of principal of, or interest on, the FMO Loan when due
(whether at stated maturity or upon acceleration), and any part of that amount
remains unpaid on the third Business Day immediately preceding any Interest
Payment Date falling after that amount became due, then:

      (a)   FMO may elect that the duration of the Interest Period commencing on
that Interest Payment Date and, subject to Section 3.04 (c), any subsequent
Interest Period shall be either three (3) months or one (1) month and shall
notify the Borrower of that election in the notice referred to in Section 3.03
(e) (Interest);

      (b)   the FMO Interest Rate applicable to any Interest Period which is
three (3) months or one (1) month shall be determined in accordance with Section
3.03 (Interest) in all respects, except that any reference in Section 3.03 (c)
(ii) to six (6) months shall be deemed to be a reference to three (3) months or,
as the case may be, one (1) month; and

      (c)   unless an Event of Default or Potential Event of Default has
occurred and is continuing, FMO shall reinstate Interest Periods of six (6)
months as of the first Interest Payment Date which is March 15 or September 15
falling at least three (3) Business Days after the payment default is remedied
in full and shall inform the Borrower of that reinstatement in the notice
referred to in Section 3.03 (e) (Interest).

      Section 3.05. Default Rate Interest. (a) Without limiting the remedies
available to FMO under this Agreement or otherwise (and to the maximum extent
permitted by applicable law), if the Borrower fails to make any payment of
principal or interest (including interest payable pursuant to this Section) or
any other payment provided for in Section 3.08 (Fees) when due as specified in
this Agreement (whether at stated maturity or upon acceleration), the Borrower
shall pay interest on the amount of that payment due and unpaid at the default
rate which shall be the sum of two per cent (2%) per annum and the FMO Interest
Rate in effect from time to time;

                     Amended and Restated FMO Loan Agreement

<PAGE>
                                      -24-

      (b)   Interest at the rate referred to in Section 3.05 (a) shall accrue
from the date on which payment of the relevant overdue amount became due until
the date of actual payment of that amount (as well after as before judgment),
and shall be payable on demand or, if not demanded, on each Interest Payment
Date falling after any such overdue amount became due.

      Section 3.06. Repayment. (a) The Borrower shall repay the FMO Loan on the
following dates and in the following amounts:

<TABLE>
<CAPTION>
        Date Payment Due               Principal Amount Due
       ------------------              --------------------
<S>    <C>                             <C>
 1.    March 15, 2005                     $      322,700
 2.    September 15, 2005                 $      322,700
 3.    March 15, 2006                     $      322,700
 4.    September 15, 2006                 $      322,700
 5.    March 15, 2007                     $      322,700
 6.    September 15, 2007                 $      322,700
 7.    March 15, 2008                     $      322,700
 8.    September 15, 2008                 $      322,700
 9.    March 15, 2009                     $      322,700
 10.   September 15, 2009                 $      322,700
 11.   March 15, 2010                     $      322,700
 12.   September 15, 2010                 $      322,700
 13.   March 15, 2011                     $      322,700
 14.   September 15, 2011                 $   322,790.91
                                          --------------
                   TOTAL                  $ 4,517,890.91
</TABLE>

      Section 3.07. Prepayment. Subject to Section 3.14 (Taxes) and Section 6.05
(c):

      (a)   the Borrower may prepay on any Interest Payment Date all or any part
of the FMO Loan, on not less than thirty (30) days' prior notice to FMO, but
only if:

            (i)   the Borrower simultaneously pays all accrued interest and
                  Increased Costs (if any) on the amount of the FMO Loan to be
                  prepaid, together with all other amounts then due and payable
                  under this Agreement, including the amount payable under
                  Section 3.12 (Unwinding Costs), if the prepayment is not made
                  on an Interest Payment Date;

            (ii)  the Borrower simultaneously prepays a pro rata portion of the
                  IFC Loan;

            (iii) [reserved]; and

                     Amended and Restated FMO Loan Agreement

<PAGE>
                                      -25-

            (iv)  if requested by FMO, the Borrower delivers to FMO, prior to
                  the date of prepayment, evidence satisfactory to FMO that all
                  necessary Authorizations with respect to the prepayment of the
                  IFC Loan and FMO Loan have been obtained.

      (b)   Not later than the first Interest Payment Date following the
Borrower's delivery of annual financial statements (as required under Section
6.04 (Reporting Requirements)) after the end of each Financial Year of the
Borrower ending on or after December 31, 2005, the Borrower shall make mandatory
prepayments of the FMO Loan and the IFC Loan in an aggregate amount equal to the
Borrower's Consolidated Free Cash Flow for such Financial Year minus one million
Dollars ($1,000,000). Such aggregate amount shall be allocated between the FMO
Loan and the IFC Loan in proportion to the respective principal amounts
outstanding of each Loan. At least ten (10) Business Days prior to any
prepayment required under this Section 3.07(b), the Borrower shall deliver a
notice to FMO, certified by its Chief Financial Officer, specifying the amount
of the prepayment required under this Section 3.07(b). Other than Section
3.07(a)(ii), the terms of this Section 3.07 shall apply to any prepayment made
under this Section 3.07(b).

      (c)   Amounts of principal prepaid under this Section shall be applied by
FMO to the outstanding installments of principal of the FMO Loan in inverse
order of maturity.

      (d)   Upon delivery of a notice in accordance with Section 3.07 (a) or
(b), the Borrower shall make the prepayment in accordance with the terms of that
notice.

      (e)   Any principal amount of the FMO Loan prepaid under this Agreement
may not be re-borrowed.

      Section 3.08. Fees. (a) The Borrower shall pay to FMO a commitment fee at
the rate of one-half of one per cent ( 1/2%) per annum on that part of the FMO
Loan which from time to time has not been disbursed or cancelled. The commitment
fee shall:

            (i)   begin to accrue on the date of this Agreement;

            (ii)  be pro rated on the basis of a 360-day year for the actual
                  number of days elapsed; and

            (iii) be payable semi-annually, in arrears, on the Interest Payment
                  Dates in each year, the first such payment to be due on 15
                  March 2001.

      (b)   The Borrower shall also pay to FMO:

            (i)   a front-end fee on the FMO Loan of seventy thousand Dollars
                  ($70,000), to be paid upon the earlier of (x) the date which
                  is thirty (30) days after the date of this Agreement and (y)
                  the date immediately preceding the date of the FMO
                  Disbursement;

                     Amended and Restated FMO Loan Agreement

<PAGE>
                                      -26-

            (ii)  an appraisal fee of fifty thousand Dollars ($50,000), this fee
                  has been received already by FMO;

            (iii) an annual monitoring fee of ten thousand Dollars ($10,000) to
                  be paid each year on March 15, the first such payment to be
                  due on March 15, 2001; and

            (iv)  such other fees as agreed to by FMO and the Borrower in
                  connection with the amendment and restatement of the Original
                  FMO Loan Agreement and the other transactions contemplated
                  hereby, to be paid prior to the effectiveness of this
                  Agreement.

      Section 3.09. Currency and Place of Payments. (a) The Borrower shall make
all payments of principal, interest, fees, and any other amount due to FMO under
this Agreement in Dollars, in same day funds, to the account of FMO, account
number 456.060.893.941, at ABN AMRO Bank N.V., New York Branch, 335 Madison
Avenue, New York, NY 10017, S.W.I.F.T. code: ABNAUS33, ABA number 026009580,
reference number MX A0.002, or at such other account in New York as FMO from
time to time designates. Payments must be received in FMO's designated account
no later than 1:00 p.m. New York time.

      (b)   The tender or payment of any amount payable under this Agreement
(whether or not by recovery under a judgment) in any currency other than Dollars
shall not novate, discharge or satisfy the obligation of the Borrower to pay in
Dollars all amounts payable under this Agreement except to the extent that (and
as of the date when) FMO actually receives funds in Dollars in the account
pursuant to Section 3.09 (a).

      (c)   The Borrower shall indemnify FMO against any losses resulting from a
payment being received or an order or judgment being given under this Agreement
in any currency other than Dollars or in any place other than the account
specified pursuant to Section 3.09 (a). The Borrower shall, as a separate
obligation, pay such additional amount as is necessary to enable FMO to receive,
after conversion to Dollars at a market rate and transfer to that account, the
full amount due to FMO under this Agreement in Dollars and in the account
pursuant to Section 3.09 (a).

      (d)   Notwithstanding the provisions of Section 3.09 (a) and Section 3.09
(b), FMO may require the Borrower to pay (or reimburse FMO) for any Taxes, fees,
costs, expenses and other amounts payable under Section 3.14 (a) (Taxes) and
Section 3.15 (Expenses) in the currency in which they are payable, if other than
Dollars.

      Section 3.10. Allocation of Partial Payments. If at any time FMO receives
less than the full amount then due and payable to it under this Agreement, FMO
may allocate and apply the amount received in any way or manner and for such
purpose or purposes under this Agreement as FMO in its sole discretion
determines, notwithstanding any instruction that the Borrower may give to the
contrary.

                     Amended and Restated FMO Loan Agreement

<PAGE>
                                      -27-

      Section 3.11. Increased Costs. On each Interest Payment Date, the Borrower
shall pay, in addition to interest, the amount which FMO from time to time
notifies to the Borrower in an Increased Costs Certificate as being the
aggregate Increased Costs of FMO accrued and unpaid prior to that Interest
Payment Date.

      Section 3.12. Unwinding Costs. (a) If FMO incurs any cost, expense or loss
as a result of the Borrower

            (i)   failing to borrow in accordance with a request for
                  Disbursement made pursuant to Section 3.02 (Disbursement
                  Procedure), or to prepay in accordance with a notice of
                  prepayment; or

            (ii)  prepaying all or any portion of the FMO Loan on a date other
                  than an Interest Payment Date;

then the Borrower shall immediately pay to FMO the amount which FMO from time to
time notifies to the Borrower as being the amount of those costs, expenses and
losses incurred.

      (b)   For the purposes of this Section, "costs, expenses or losses"
include any premium, penalty or expense incurred to liquidate or obtain third
party deposits or borrowings in order to make, maintain or fund all or any part
of the FMO Loan.

      Section 3.13. [reserved].

      Section 3.14. Taxes. (a) The Borrower shall pay or cause to be paid all
Taxes, other than taxes, if any, payable on the overall income of FMO, on or in
connection with the payment of any and all amounts due under this Agreement that
are now or in the future levied or imposed by any Authority of Mexico or any
jurisdiction through or out of which a payment is made.

      (b)   All payments of principal, interest, fees and other amounts due
under this Agreement shall be made without deduction for or on account of any
Taxes.

      (c)   If the Borrower is prevented by operation of law or otherwise from
making or causing to be made those payments without deduction, the principal or
(as the case may be) interest, fees or other amounts due under this Agreement
shall be increased to such amount as may be necessary so that FMO receives the
full amount it would have received (taking into account any Taxes payable on
amounts payable by the Borrower under this subsection) had those payments been
made without that deduction.

      (d)   If Section 3.14 (c) applies and FMO so requests, the Borrower shall
deliver to FMO official tax receipts evidencing payment (or certified copies of
them) within thirty (30) days of the date of that request.

                     Amended and Restated FMO Loan Agreement

<PAGE>
                                      -28-

      Section 3.15. Expenses. (a) The Borrower shall pay or, as the case may be,
reimburse FMO or its assignees any amount paid by them on account of, all taxes
(including stamp taxes), duties, fees or other charges payable on or in
connection with the execution, issue, delivery, registration or notarization of
the Transaction Documents and any other documents related to this Agreement or
any other Transaction Document.

      (b)   The Borrower shall pay to FMO or as FMO may direct:

            (i)   the fees and expenses of FMO's counsel in Mexico and New York
                  incurred in connection with:

                  (A)   the preparation of the investment by FMO provided for
                        under this Agreement and any other Transaction Document;

                  (B)   the preparation and/or review, execution and, where
                        appropriate, translation and registration of the
                        Transaction Documents and any other documents related to
                        them;

                  (C)   the giving of any legal opinions required by FMO under
                        this Agreement and any other Transaction Document;

                  (D)   the administration by FMO of the investment provided for
                        in this Agreement or otherwise in connection with any
                        amendment, supplement or modification to, or waiver
                        under, any of the Transaction Documents;

                  (E)   the registration (where appropriate) and the delivery of
                        the evidences of indebtedness relating to the FMO Loan
                        and its disbursement;

                  (F)   the occurrence of any Event of Default or Potential
                        Event of Default; and

                  (G)   for the avoidance of doubt, the preparation of the
                        amendment and restatement of the Original FMO Loan
                        Agreement contemplated by this Agreement, the
                        preparation of the other Transaction Documents listed in
                        Section 5.01(a) (Conditions of Effectiveness) and the
                        giving of any legal opinions in connection herewith and
                        therewith; and

            (ii)  the costs and expenses incurred by FMO in relation to efforts
                  to enforce or protect its rights under any Transaction
                  Document, or the exercise of its rights or powers consequent
                  upon or arising out of the occurrence of any Event of Default
                  or Potential Event of

                     Amended and Restated FMO Loan Agreement

<PAGE>
                                      -29-

                        Default, including legal and other professional
                        consultants' fees as well as reasonable traveling and
                        hotel expenses.

      Section 3.16. Notes. (a) The Borrower shall issue non-negotiable Notes to
FMO in the form of Schedule 11 and otherwise in form and substance satisfactory
to FMO in connection with and at the time of the FMO Disbursement.

      (b)   The issuance of Notes pursuant to this Agreement shall not entail a
novation with respect to this Agreement or the FMO Loan. Notwithstanding the
foregoing, payment of the principal of any Note shall pro tanto discharge the
obligation of the Borrower to repay the portion of the FMO Loan to which such
Note relates; and the payment of interest on the Note shall pro tanto discharge
the obligation of the Borrower to pay interest on that portion of the FMO Loan
to which such Note relates.

      (c)   The Borrower represents that, after the delivery thereof, each Note
shall constitute in Mexico a valid binding and enforceable obligation of the
Borrower in accordance with its terms and, if FMO so requests, the Borrower
shall furnish FMO evidence satisfactory to FMO that all formalities required for
that purpose have been satisfied.

                                   ARTICLE IV

                         REPRESENTATIONS AND WARRANTIES

      Section 4.01. Representations and Warranties. Each of the Borrower and the
Project Company represents and warrants that the following are true and correct
in all material respects:

      (a)   each of the Borrower and the Project Company is a company duly
incorporated and validly existing under the laws of Mexico and has the corporate
power to own its assets, conduct its business as presently conducted and to
enter into, and comply with its obligations under, the Transaction Documents to
which it is a party or will, in the case of any Transaction Document not
executed as at the date of this Agreement, when that Transaction Document is
executed, have the corporate power to enter into, and comply with its
obligations under, that Transaction Document;

      (b)   each Transaction Document to which the Borrower or the Project
Company is a party has been, or will be, duly authorized and executed by the
Borrower or the Project Company, as the case may be, and constitutes, or will
when executed constitute, a valid and legally binding obligation of the Borrower
or the Project Company or both, as applicable;

      (c)   neither the making of any Transaction Document or Project Document
to which either of the Borrower or the Project Company is a party nor the
compliance with

                     Amended and Restated FMO Loan Agreement

<PAGE>
                                      -30-

its terms will conflict with or result in a breach of any of the terms,
conditions or provisions of, or constitute a default or require any consent
under, any indenture, mortgage, agreement or other instrument or arrangement to
which the Borrower or the Project Company is a party or by which it is bound, or
violate any of the terms or provisions of the Borrower's or the Project
Company's Charter or any Authorization, judgment, decree or order or any
statute, rule or regulation applicable to the Borrower or the Project Company;

      (d)   to the best of their knowledge, after due inquiry, all
Authorizations (other than Authorizations that are of a routine nature and are
obtained in the ordinary course of business) needed by either of the Borrower or
the Project Company to conduct its business, carry out the Project and execute,
and comply with its obligations under, this Agreement and each of the other
Transaction Documents to which it or the Project Company is a party have been
obtained and are in full force and effect;

      (e)   neither the Borrower's Charter nor the Project Company's Charter has
been amended since December 7, 2000 and October 5, 1999, respectively;

      (f)   neither the Borrower nor the Project Company nor any of their
respective properties enjoys any right of immunity from set-off, suit or
execution with respect to its assets or its obligations under any Transaction
Document to which the Borrower or the Project Company is a party;

      (g)   [reserved];

      (h)   since September 30, 2004 neither the Borrower nor the Project
Company:

            (i)   has suffered any change that has a Material Adverse Effect or
                  incurred any substantial loss or liability;

            (ii)  has undertaken or agreed to undertake any substantial
                  obligation other than pursuant to the Transaction Documents;

      (i)   the Consolidated financial statements of the Borrower for the period
ending on September 30, 2004:

            (i)   have been prepared in accordance with the Accounting
                  Principles, and present fairly the financial condition of the
                  Borrower as of the date as of which they were prepared and the
                  results of the Borrower's operations during the period then
                  ended;

            (ii)  disclose all liabilities (contingent or otherwise) of the
                  Borrower, and the reserves, if any, for such liabilities and
                  all unrealized or anticipated liabilities and losses arising
                  from commitments entered into by the Borrower (whether or not
                  such commitments have been disclosed in such financial
                  statements);

                     Amended and Restated FMO Loan Agreement

<PAGE>
                                      -31-

      (j)   neither the Borrower nor the Project Company is a party to, or
committed to enter into, any contract which would or might affect the judgment
of a prospective investor;

      (k)   neither the Borrower nor the Project Company has outstanding Liens
on any of its assets other than Liens arising by operation of law, and no
contracts or arrangements, conditional or unconditional, exist for the creation
by the Borrower or the Project Company of any Lien, except for the Security and
the GoM Lien;

      (l)   all tax returns and reports of each of the Borrower and the Project
Company required by law to be filed have been duly filed and all Taxes,
obligations, fees and other governmental charges upon the Borrower or the
Project Company, or their respective properties, or their respective income or
assets, which are due and payable or to be withheld, have been paid or withheld,
other than those presently payable without penalty or interest, and those being
contested in good faith by appropriate proceedings so long as:

            (A)   those proceedings do not involve any substantial danger of the
                  sale, forfeiture or loss of any part of the Project, title
                  thereto or any interest therein, nor interfere in any material
                  respect with the use or disposition thereof or the
                  implementation of the Project or the carrying on of the
                  business of the Borrower or the Project Company; and

            (B)   each of the Borrower and the Project Company has set aside
                  adequate reserves sufficient to promptly pay in full any
                  amounts that it may be ordered to pay on final determination
                  of any such proceedings;

      (m)   neither the Borrower nor the Project Company is engaged in nor, to
the best of its knowledge, threatened by, any litigation, arbitration or
administrative proceedings, the outcome of which could reasonably be expected to
have a Material Adverse Effect;

      (n)   to the best of its knowledge and belief, after due inquiry, neither
the Borrower nor the Project Company is in violation of any statute or
regulation of any Authority;

      (o)   no judgment or order has been issued which has or may reasonably be
expected to have a Material Adverse Effect;

      (p)   except as identified in the Environmental Assessment Report:

            (i)   to the best of its knowledge and belief, after due inquiry,
                  neither the Borrower nor the Project Company is in violation
                  of any of the

                     Amended and Restated FMO Loan Agreement

<PAGE>
                                      -32-

                  Environmental, Health and Safety Guidelines or of the
                  Environmental and Social Policies; and

            (ii)  neither the Borrower nor the Project Company has received or
                  is aware of any complaint, order, directive, claim, citation
                  or notice from any Authority with respect to any matter of the
                  Borrower's or the Project Company's compliance with the
                  relevant environmental, health and safety laws and regulations
                  in effect in Mexico such as, without limitation, air
                  emissions, discharges to surface water or ground water, noise
                  emissions, solid or liquid waste disposal, or the use,
                  generation, storage, transportation or disposal of toxic or
                  hazardous substances or wastes;

      (q)   none of the Borrower, the Project Company, the Sponsor or any
Affiliate, nor any Person acting on the Borrower's, the Project Company's, the
Sponsor's or any Affiliate's behalf, has made, with respect to the Project or
any transaction contemplated by this Agreement, any Prohibited Payment;

      (r)   neither the Borrower nor the Project Company has entered into any
agreement to amend or otherwise modify the terms of the Concession Agreement;
and

      (s)   none of the representations and warranties in this Section 4.01
omits any matter the omission of which makes any of such representations and
warranties misleading.

      Section 4.02. FMO Reliance. Each of the Borrower and the Project Company
acknowledges that it makes the representations and warranties in Section 4.01
with the intention of inducing FMO to enter into this Agreement and that FMO
enters into this Agreement on the basis of, and in full reliance on, each of
such representations and warranties.

                                    ARTICLE V

                           CONDITIONS OF EFFECTIVENESS

          Section 5.01. Conditions of Effectiveness. The amendment and
restatement of the Original FMO Loan Agreement set forth in this Agreement shall
become effective only upon the fulfillment of the following conditions (and
prior to the fulfillment thereof, the Original FMO Loan Agreement as in
existence prior to the amendment and restatement contemplated hereby shall
remain in full force and effect):

      (a)   the following agreements, each in form and substance satisfactory to
FMO, have been entered into by all parties to them and have become (or, as the
case may be, remain) unconditional and fully effective in accordance with their
respective terms (except for this Agreement or any one of such documents having
become unconditional

                     Amended and Restated FMO Loan Agreement

<PAGE>
                                      -33-

and fully effective, if that is a condition of any of such documents, it being
the intention of the parties that all of such documents shall become effective
simultaneously), and FMO has received a copy of each of those agreements to
which it is not a party:

            (i)   the Financial Support Agreement;

            (ii)  the IFC Loan Agreement; and

            (iii) the Sponsor Guarantee Agreement;

      (b)   FMO has received from the Borrower a prepayment of the FMO Loan in
the amount of one hundred forty-six thousand one hundred nine and 9/100th
Dollars ($146,109.09);

      (c)   FMO has received a legal opinion from the Borrower's counsel in
Mexico, in form and substance satisfactory to FMO, with regard to Mexican tax
law as it relates to (i) the Merger and (ii) the railroad diesel tax credit;

      (d)   FMO has received a legal opinion from its special counsel in New
York, New York, in form and substance satisfactory to FMO, with regard to the
New York law aspects of this Agreement and the other Transaction Documents
referred to in subsection (a) above;

      (e)   FMO has received a legal opinion from the Borrower's counsel in
Mexico, in form and substance satisfactory to FMO, with regard to the due
organization, power and authority of the Borrower and the Project Company to
enter into this Agreement and the other Transaction Documents referred to in
subsection (a) above to which it is a party and covering such other matters
relating to the transactions contemplated hereby and thereby as FMO may
reasonably request;

      (f)   FMO has received a legal opinion from the Sponsor's general counsel,
in form and substance satisfactory to FMO, with regard to the Sponsor's due
organization, power and authority to enter into the Financial Support Agreement
and the Sponsor Guarantee Agreement and covering such other matters relating to
the transactions contemplated hereby and thereby as FMO may reasonably request;

      (g)   FMO has received the reimbursement of all invoiced fees and expenses
of FMO's counsel incurred in connection with the execution of this Agreement and
the transactions contemplated hereby (as provided in Section
3.15(b)(i)(G)(Expenses)), or confirmation that those fees and expenses have been
paid directly to that counsel;

      (h)   each Existing Deficiency Loan Agreement has been amended to provide
for repayment of the relevant deficiency loan on the later of (i) the repayment
in full of both the FMO Loan and the IFC Loan and (ii) (in equal installments)
on March 15, 2013 and September 15, 2013;

                     Amended and Restated FMO Loan Agreement

<PAGE>
                                      -34-

      (i)   the Borrower and the Project Company have certified to FMO, in the
form of Schedule 2, that the representations and warranties made in Article IV
hereof are true and correct in all material respects as of the date upon which
all of the foregoing conditions have been satisfied; and

      (j)   FMO has received any fees under Section 3.08(b)(iv) (Fees) required
to be paid in connection with the execution of this Agreement and the
transactions contemplated hereby.

      Section 5.02. FMO Notice; Amendment and Restatement; Conditions for FMO's
Benefit. (a) Upon the fulfillment of the conditions listed in Section 5.01, FMO
shall send notice to the Borrower, the Project Company, the Sponsor and IFC, in
the form of Schedule 3, stating that this Agreement has become effective.

      (b)   The Borrower, the Project Company and FMO have agreed to remove the
conditions to disbursement that had been included in Article V of the Original
FMO Loan Agreement prior to the amendment and restatement contemplated by this
Agreement. For the avoidance of doubt, such removal is without prejudice to any
claims that FMO may have under Section 7.02(f).

      (c)   The conditions in Section 5.01 are for the benefit of FMO and may be
waived only by FMO at its sole discretion.

                                   ARTICLE VI

                              PARTICULAR COVENANTS

      Section 6.01. Affirmative Covenants. Unless FMO otherwise agrees, the
Borrower shall, and shall cause the Project Company to, and the Project Company
shall:

      (a)   carry out the Project and cause the Project to be carried out, and
conduct its business with due diligence and efficiency and in accordance with
sound engineering, financial and business practices;

      (b)   cause the financing specified in the Financial Plan to be applied
exclusively to the Project;

      (c)   promptly install and maintain an accounting and control system,
management information system and books of account and other records, which
together adequately reflect truly and fairly the financial condition of each of
the Borrower and the Project Company and the results of each of the Borrower's
and the Project Company's operations in conformity with the Accounting
Principles;

      (d)   maintain the Auditors, or appoint and maintain, or cause to be
appointed and maintained at all times a firm of internationally recognized
independent public

                     Amended and Restated FMO Loan Agreement

<PAGE>
                                      -35-

accountants acceptable to FMO as auditors of each of the
Borrower and the Project Company;

      (e)   irrevocably authorize, in the form of Schedule 6, the Auditors
(whose fees and expenses shall be for the account of the Borrower) to
communicate directly with FMO at any time regarding the Borrower's Consolidated
accounts and operations, and provide to FMO a copy of that authorization, and,
no later than thirty (30) days after any change in Auditors, issue a similar
authorization to the new Auditors and provide a copy thereof to FMO;

      (f)   upon FMO's request, such request to be made with reasonable prior
notice to the Borrower, except if an Event of Default or Potential Event of
Default has occurred and is continuing or if special circumstances so require,
permit representatives of FMO, during normal office hours, to:

            (i)   visit the Project site and any of the premises where the
                  business of the Borrower or the Project Company is conducted;

            (ii)  inspect all facilities, plant and equipment comprised in the
                  Project;

            (iii) have access to the Borrower's or the Project Company's books
                  of account and records; and

            (iv)  have access to those employees and agents of the Borrower or
                  the Project Company who have or may have knowledge of matters
                  with respect to which FMO seeks information;

      (g)   (i)   design, construct, operate, maintain and monitor all of its
                  equipment and facilities:

                  (A)   in accordance with the Environmental and Social Policies
                        and the Environmental, Health and Safety Guidelines; and

                  (B)   in compliance with the CAP, as well as applicable
                        environmental occupational health and safety
                        requirements, and any child labor and forced labor laws,
                        rules and regulations (including any international
                        treaty obligations, if any) of the GoM and the local
                        authorities; and

            (ii)  not to effect any relocation of businesses and people residing
                  on the right-of-way granted to the Project Company under the
                  Concession Agreement without prior notification to FMO;

      (h)   no later than thirty (30) days after the date of this Agreement but
in any event prior to the date of the FMO Disbursement:

                     Amended and Restated FMO Loan Agreement

<PAGE>
                                      -36-

            (i)   provide FMO with all information necessary to enable FMO to
                  update the document dated February 8, 2000, (specify reference
                  number) entitled Environmental Review Summary ("ERS") by
                  incorporating any modification or addition to that document
                  relating to the Project; and

            (ii)  display the updated ERS in appropriate public places in the
                  United Mexican States acceptable to FMO for public access;

            and FMO shall be entitled to place a copy of that updated ERS in the
            World Bank public information center known as InfoShop for public
            access;

      (i)   (A)   obtain and maintain, or cause to be obtained and maintained in
                  force (and where appropriate, renew, or cause to be renewed in
                  a timely manner) all Authorizations, including without
                  limitation the Authorizations specified in Annex A, which are
                  necessary for the implementation of the Project, the carrying
                  out of the Borrower's or the Project Company's business and
                  operations generally and the compliance by each of the
                  Borrower and the Project Company with all its obligations
                  under the Transaction Documents; and

            (B)   comply, or cause compliance, with all the conditions and
                  restrictions contained in, or imposed on the Borrower or the
                  Project Company by, those Authorizations;

      (j)   from time to time, execute, acknowledge and deliver or cause to be
executed, acknowledged and delivered such further instruments as may reasonably
be requested by FMO for perfecting or maintaining in full force and effect the
Security or for re-registering the Security (including updating Exhibit A to
each of the Mercantile Pledge Agreements and pledging for the benefit of FMO,
after the date hereof, any Long-term Contracts) or otherwise to enable the
Borrower or the Project Company to comply with its obligations under the
Transaction Documents;

      (k)   [reserved];

      (l)   comply with all its obligations under the Transaction Documents and
the Project Documents;

      (m)   control the vegetation on the rights-of-way granted to the Project
Company under the Concession Agreement, consistent with the herbicide management
plan approved by FMO;

      (n)   procure and purchase crossties only from suppliers approved by the
GoM so long as such approval is required;

                     Amended and Restated FMO Loan Agreement

<PAGE>
                                      -37-

      (o)   [reserved];

      (p)   implement the Project Company's internal guidelines relating to
illegal immigrants;

      (q)   [reserved];

      (r)   [reserved];

      (s)   [reserved];

      (t)   [reserved];

      (u)   [reserved];

      (v)   [reserved]; and

      (w)   maintain on at least a yearly rolling basis financial instruments
structured to match the debt payment amounts (principal and interest) related to
the Loans for each subsequent year, in order to protect the Borrower against the
effect from depreciation of the Mexican Peso. This may be done either through
the maintenance of forwards, the maintenance of currency options, or the
maintenance of other commonly used derivatives for managing currency risk. In
each year the strike price of the financial instrument as used shall be such
that the sum of the premium paid and the maximum loss resulting from a
devaluation of the Mexican Peso shall not exceed $750,000. For purposes of this
covenant, maximum loss will be calculated using the forward exchange rates as of
the close of business on the day in which the currency hedges are established.
If the Borrower enters into forward contracts, the portion of exposure covered
by the forward contract shall be considered to have zero loss for purposes of
the loss limit established by the hedging requirement. If the Borrower, in its
reasonable judgment and with the consent of FMO (such consent not to be
unreasonably withheld) believes that the available derivatives and derivatives
pricing have been significantly negatively impacted by conditions external to
the Borrower, then the Borrower may choose to delay the maintenance of
derivatives until the negative impact of the external conditions is no longer
evident.

      Section 6.02. Negative Covenants Relating to the Borrower. Unless FMO
otherwise agrees, (I) before the Merger Effective Date, the Borrower shall not
take any of the actions set forth in subsections (a) through (w) below and (II)
after the Merger Effective Date, the Borrower shall not take any of the actions
set forth in subsections (s), (t) and (u) below (it being understood that
Section 6.03 (Negative Covenants Relating to the Project Company) shall also
apply to the Borrower after the Merger Effective Date, as set forth therein,
with references to the "Project Company" therein being deemed to be references
to the "Borrower"):

                     Amended and Restated FMO Loan Agreement

<PAGE>
                                      -38-

      (a)   declare or pay any dividend or make any distribution on its share
capital (other than dividends or distributions payable in shares of the
Borrower), or purchase, redeem or otherwise acquire any shares of the Borrower
or any option over them, unless the proposed payment or distribution is out of
retained earnings and the Borrower, no earlier than sixty (60) days nor later
than thirty (30) days prior to doing so, certifies to FMO in writing, in the
form attached as Schedule 7, the sufficiency of such retained earnings and that:

            (i)   no Event of Default or Potential Event of Default has occurred
                  and is continuing;

            (ii)  prior to the taking of any such action, the Borrower has made
                  prepayments under Section 3.07 (Prepayment) in a sufficient
                  amount, and such prepayments have been applied against the
                  remaining installments of the FMO Loan in inverse order of
                  maturity (as required under Section 3.07(c)), such that the
                  final installment of the FMO Loan under Section 3.06
                  (Repayment) is due no later than September 15, 2008; and

            (iii) after giving effect to any such action:

                  (A)   the Borrower's Current Ratio will be at least 1.0;

                  (B)   the Borrower's Long-term Debt to Tangible Net Worth
                        Ratio will be equal to or less than 2.0; and

                  (C)   the Borrower's Debt Service Coverage Ratio will not be
                        less than 1.4;

            provided always that:

                  (A)   the retained earnings out of which any of the payments
                        or distributions referred to in this subsection may be
                        made should in no event include any amount resulting
                        from the revaluation of any of the Borrower's assets;
                        and

                  (B)   the Borrower shall not make any payments or
                        distributions of the type referred to in this subsection
                        if, after giving effect to it, the Borrower could not
                        certify the matters referred to in Section 6.02(a)(i)
                        and (iii);

      (b)   incur expenditures or commitments for expenditures for fixed or
other non-current assets;

      (c)   incur, assume or permit to exist any Debt of the Borrower except:

                     Amended and Restated FMO Loan Agreement

<PAGE>
                                      -39-

            (i)   the Loans;

            (ii)  any subordinated Debt of the Borrower required or permitted
                  pursuant to this Agreement or the Financial Support Agreement;
                  and

            (iii) the credit line under the Credit Line Agreement but only until
                  the Merger occurs;

      (d)   enter into any agreement or arrangement to lease any property or
equipment of any kind;

      (e)   enter into any Derivative Transaction or assume the obligations of
any party to any Derivative Transaction, except as contemplated in this
Agreement;

      (f)   enter into any agreement or arrangement to guarantee or, in any way
or under any condition, assume or become obligated for all or any part of any
financial or other obligation of another Person;

      (g)   create or permit to exist any Lien on any property, revenues or
other assets, present or future, of the Borrower, except for:

            (i)   the Security;

            (ii)  the naming of each of the Senior Lenders as a loss
                  payee/beneficiary under the Borrower's insurance policies; and

            (iii) any Lien arising from any tax, assessment or other
                  governmental charge or other Lien arising by operation of law,
                  in each case if the obligation underlying any such Lien is not
                  yet due or, if due, is being contested in good faith by
                  appropriate proceedings so long as:

                  (A)   those proceedings do not involve any substantial danger
                        of the sale, forfeiture or loss of any part of the
                        Project, title thereto or any interest therein, nor
                        interfere in any material respect with the use or
                        disposition thereof or the implementation of the Project
                        or the carrying on of the business of the Borrower; and

                  (B)   the Borrower has set aside adequate reserves sufficient
                        to promptly pay in full any amounts that the Borrower
                        may be ordered to pay on final determination of any such
                        proceedings;

                     Amended and Restated FMO Loan Agreement

<PAGE>
                                      -40-

      (h)   enter into any transaction except in the ordinary course of business
on the basis of arm's-length arrangements (including, without limitation,
transactions whereby the Borrower might pay more than the ordinary commercial
price for any purchase or might receive less than the full ex-works commercial
price (subject to normal trade discounts) for its products);

      (i)   establish any sole and exclusive purchasing or sales agency;

      (j)   enter into any partnership, profit-sharing or royalty agreement or
other similar arrangement whereby the Borrower's income or profits are, or might
be, shared with any other Person;

      (k)   enter into any management contract or similar arrangement whereby
its business or operations are managed by any other Person;

      (l)   form or have any Subsidiary other than the Project Company;

      (m)   make or permit to exist loans or advances to, or deposits (except
the Borrower's equity investment in the Project Company as of the date hereof
and commercial bank deposits in the ordinary course of business) with, other
Persons or investments in any Person or enterprise (other than pursuant to the
Financial Support Agreement) other than short-term marketable securities
acquired solely to give temporary employment to its idle funds;

      (n)   reduce its share capital or otherwise change its Charter in any
manner which would be inconsistent with the provisions of any Transaction
Document;

      (o)   change its Financial Year;

      (p)   change the nature or scope of the Project or change the nature of
its present business or operations;

      (q)   sell, transfer, lease or otherwise dispose of all or a substantial
part of its assets, whether in a single transaction or in a series of
transactions, related or otherwise;

      (r)   undertake or permit any merger, spin-off, consolidation or
reorganization other than the Merger permitted under Article IX;

      (s)   terminate, amend, grant any waiver or assignment with respect to any
provision of any of the Transaction Documents or Project Documents or any
agreements evidencing any loans provided under the Financial Support Agreement
(other than the amendment of the Existing Deficiency Loan Agreements described
in Section 5.01(h) (Conditions of Effectiveness));

                     Amended and Restated FMO Loan Agreement

<PAGE>
                                      -41-

      (t)   prepay (whether voluntarily or involuntarily) or repurchase any
Long-term Debt of the Borrower (other than the Loans) pursuant to any provision
of any agreement or note with respect to that Long-term Debt unless:

            (i)   that Long-term Debt is refinanced using new Long-term Debt on
                  terms and conditions (as to interest rate, other costs and
                  tenor) at least as favorable to the Borrower as those of the
                  Long-term Debt being refinanced; or

            (ii)  the Borrower gives FMO at least thirty (30) days' advance
                  notice of its intention to make the proposed prepayment and,
                  if FMO so requires, the Borrower contemporaneously prepays a
                  proportion of the FMO Loan equivalent to the proportion of the
                  part of the Long-term Debt being prepaid, such prepayment to
                  be made in accordance with the provisions of Section 3.07
                  (Prepayment) except that there shall be no minimum amount or
                  advance notice period for that prepayment;

      (u)   use the proceeds of any FMO Disbursement in the territories of any
country which is not a member of the World Bank or for reimbursements of
expenditures in those territories or for goods produced in or services supplied
from any such country;

      (v)   make (or authorize or permit any Affiliate or any other Person
acting on its behalf to make) with respect to the Project or any transaction
contemplated by this Agreement, any Prohibited Payment. The Borrower further
covenants that should FMO notify the Borrower of its concerns that there has
been a violation of the provisions of this Section or of Section 4.01(q) of this
Agreement, it shall cooperate in good faith with FMO and its representatives in
determining whether such a violation has occurred, and shall respond promptly
and in reasonable detail to any notice from FMO, and shall furnish documentary
support for such response upon FMO's request; or

      (w)   make any payments to its Affiliates except as permitted under any
Transaction Document or Project Document.

      Section 6.03. Negative Covenants Relating to the Project Company. Unless
FMO otherwise agrees, (I) before the Merger Effective Date, the Borrower shall
cause the Project Company not to, and the Project Company shall not take any of
the actions set forth in subsections (a) through (w) below and (II) after the
Merger Effective Date, the Borrower shall not take any of the actions set forth
in subsections (a) through (w) below, other than the actions set forth in
subsection (s) below (it being understood that the Borrower shall continue to be
subject instead to the comparable restrictions set forth in Section 6.02(s)
(Negative Covenants Relating to the Borrower)):

      (a)   declare or pay any dividend or make any distribution on its share
capital (other than dividends or distributions payable in shares of the Project
Company), or purchase, redeem or otherwise acquire any shares of the Project
Company or any option

                     Amended and Restated FMO Loan Agreement

<PAGE>
                                      -42-

over them, unless the proposed payment or distribution is out of retained
earnings and the Project Company, no earlier than sixty (60) days nor later than
thirty (30) days prior to doing so, certifies to FMO in writing, in the form
attached as Schedule 7, the sufficiency of such retained earnings and that:

            (i)   no Event of Default or Potential Event of Default has occurred
                  and is continuing; and

            (ii)  prior to the taking of any such action, prepayments have been
                  made under Section 3.07 (Prepayment) in a sufficient amount,
                  and such prepayments have been applied against the remaining
                  installments of the FMO Loan in inverse order of maturity (as
                  required under Section 3.07(c)), such that the final
                  installment of the FMO Loan under Section 3.06 (Repayment) is
                  due no later than September 15, 2008; and

            (iii) after giving effect to any such action:

                  (A)   the Project Company's Current Ratio will be at least
                        1.0;

                  (B)   the Project Company's Long-term Debt to Tangible Net
                        Worth Ratio will be equal to or less than 2.0; and

                  (C)   the Project Company's Debt Service Coverage Ratio will
                        not be less than 1.4;

            provided always that:

                  (A)   the retained earnings out of which any of the payments
                        or distributions referred to in this subsection may be
                        made should in no event include any amount resulting
                        from the revaluation of any of the Project Company's
                        assets; and

                  (B)   the Project Company shall not make any payments or
                        distributions of the type referred to in this subsection
                        if, after giving effect to it, the Project Company could
                        not certify the matters referred to in Section
                        6.03(a)(i) and (iii);

      (b)   subject to the provisions of the Financial Support Agreement and
Section 6.03(w) below, incur expenditures or commitments for expenditures for
fixed or other non-current assets, other than those required for carrying out
the Project or necessary for repairs, replacements and maintenance of
satisfactory operating conditions that are essential to the Project Company's
business or operations;

      (c)   incur, assume or permit to exist any Debt of the Project Company
except:

                     Amended and Restated FMO Loan Agreement

<PAGE>
                                      -43-

            (i)   any subordinated Debt of the Project Company required or
                  permitted pursuant to this Agreement or the Financial Support
                  Agreement;

            (ii)  trade accounts incurred in the normal course of business and
                  not overdue by more than 90 days;

            (iii) Short-term Debt of the Project Company incurred in the
                  ordinary course of business which, when aggregated with
                  contingent liabilities arising from the discounting of trade
                  receivables, would not exceed at any one time outstanding the
                  aggregate of the Project Company's receivables, inventories,
                  cash and short-term deposits;

            (iv)  loans to the Borrower pursuant to the Credit Line Agreement;
                  and

            (v)   after the Merger, the Loans;

      (d)   enter into any agreement or arrangement to lease any property or
equipment of any kind, except leases with respect to which the aggregate lease
payments do not exceed the equivalent of one million Dollars ($1,000,000.00) in
any Financial Year;

      (e)   enter into any Derivative Transaction or assume the obligations of
any party to any Derivative Transaction, except as contemplated in this
Agreement;

      (f)   enter into any agreement or arrangement to guarantee or, in any way
or under any condition, assume or become obligated for all or any part of any
financial or other obligation of another Person other than the IFC Guarantee and
the FMO Guarantee;

      (g)   create or permit to exist any Lien on any property, revenues or
other assets, present or future, of the Project Company, except for:

            (i)   the Security;

            (ii)  the GoM Lien;

            (iii) the naming of each of the Senior Lenders as a loss
                  payee/beneficiary under the Project Company's insurance
                  policies; and

            (iv)  any Lien arising from any tax, assessment or other
                  governmental charge or other Lien arising by operation of law,
                  in each case if the obligation underlying any such Lien is not
                  yet due or, if due, is being contested in good faith by
                  appropriate proceedings so long as:

                     Amended and Restated FMO Loan Agreement

<PAGE>
                                      -44-

                  (A)   those proceedings do not involve any substantial danger
                        of the sale, forfeiture or loss of any part of the
                        Project, title thereto or any interest therein, nor
                        interfere in any material respect with the use or
                        disposition thereof or the implementation of the Project
                        or the carrying on of the business of the Project
                        Company; and

                  (B)   the Project Company has set aside adequate reserves
                        sufficient to promptly pay in full any amounts that the
                        Project Company may be ordered to pay on final
                        determination of any such proceedings;

      (h)   enter into any transaction with its Affiliates or any other Person
except in the ordinary course of business on the basis of arm's-length
arrangements (including, without limitation, transactions whereby the Project
Company might pay more than the ordinary commercial price for any purchase or
might receive less than the full ex-works commercial price (subject to normal
trade discounts) for its products) except as otherwise permitted under the
Project Documents;

      (i)   establish any sole and exclusive purchasing or sales agency;

      (j)   enter into any partnership, profit-sharing or royalty agreement or
other similar arrangement whereby the Project Company's income or profits are,
or might be, shared with any other Person;

      (k)   enter into any management contract or similar arrangement (except
for the Technical Assistance Agreement) whereby its business or operations are
managed by any other Person;

      (l)   form or have any Subsidiary;

      (m)   make or permit to exist loans or advances to, or deposits (except
commercial bank deposits in the ordinary course of business) with, other Persons
or investments in any Person or enterprise (except for loans to the Borrower
pursuant to the Credit Line Agreement) other than short-term marketable
securities acquired solely to give temporary employment to its idle funds;

      (n)   change its Charter in any manner which would be inconsistent with
the provisions of any Transaction Document;

      (o)   change its Financial Year;

      (p)   change the nature or scope of the Project or change the nature of
its present or contemplated business or operations;

                     Amended and Restated FMO Loan Agreement

<PAGE>
                                      -45-

      (q)   sell, transfer, lease or otherwise dispose of all or a substantial
part of its assets, whether in a single transaction or in a series of
transactions, related or otherwise;

      (r)   undertake or permit any merger, spin-off, consolidation or
reorganization, other than the Merger permitted under Article IX;

      (s)   withdraw from, terminate, amend or grant any waiver with respect to
any provision of any Project Document or Transaction Document or consent to an
assignment of any part thereof;

      (t)   transfer or assign all or any part of the Concession Agreement or
any permit and/or license relating to the Project;

      (u)   make any payment to its Affiliates except as permitted under any
Transaction Document or Project Document;

      (v)   make (or authorize or permit any Affiliate or any other Person
acting on its behalf to make) with respect to the Project or any transaction
contemplated by this Agreement, any Prohibited Payment. The Project Company
further covenants that should FMO notify the Project Company of its concerns
that there has been a violation of the provisions of this Section or of Section
4.01(q) of this Agreement, it shall cooperate in good faith with FMO and its
representatives in determining whether such a violation has occurred, and shall
respond promptly and in reasonable detail to any notice from FMO, and shall
furnish documentary support for such response upon FMO's request; or

      (w)   beginning in the Financial Year during which the Sponsor's
obligation to make Investment Overrun Loans (as such term is defined in the
Financial Support Agreement) terminates in accordance with Section 2.04(b) of
the Financial Support Agreement, if such obligation terminates, incur
expenditures for Capital Investments (as such term is defined in the Financial
Support Agreement) unless those expenditures do not exceed an aggregate amount
in any Financial Year equivalent to sixty percent (60%) of the Project Company's
EBITDA for such Financial Year.

      Section 6.04. Reporting Requirements. Unless FMO otherwise agrees, the
Borrower shall:

      (a)   as soon as available but in any event within sixty (60) days after
the end of each quarter of each Financial Year, deliver to FMO:

            (i)   two (2) copies of the Borrower's complete financial statements
                  for such quarter prepared, on an unconsolidated basis and on a
                  Consolidated Basis, in accordance with the Accounting
                  Principles;

            (ii)  [reserved];

                     Amended and Restated FMO Loan Agreement

<PAGE>
                                      -46-

            (iii) a report on any factors that have or could reasonably be
                  expected to have a Material Adverse Effect;

            (iv)  a management report, including revenue by main client,
                  tariffs, the Project Company's intermodal and maintenance
                  activities, operating cost; and

            (v)   a statement of all transactions during that quarter between
                  each of the Borrower and the Project Company and their
                  respective Affiliates, if any, and a certification by an
                  Authorized Representative that those transactions were on the
                  basis of arm's-length arrangements;

      (b)   as soon as available but in any event within one hundred and twenty
(120) days after the end of each Financial Year, deliver to FMO:

            (i)   two (2) copies of its complete and audited financial
                  statements for that Financial Year (which are in agreement
                  with its books of account and prepared, on an unconsolidated
                  basis and Consolidated Basis, in accordance with the
                  Accounting Principles), together with the Auditors' audit
                  report on them, all in form satisfactory to FMO;

            (ii)  a management letter and such other communication from the
                  Auditors commenting, with respect to that Financial Year, on,
                  among other things, the adequacy of the Borrower's and the
                  Project Company's financial control procedures, accounting
                  systems and management information system;

            (iii) a report by the Auditors certifying that, on the basis of its
                  financial statements, each of the Borrower and the Project
                  Company was in compliance with the covenants contained in
                  Section 6.02 (Negative Covenants Relating to the Borrower) and
                  Section 6.03 (Negative Covenants Relating to the Project
                  Company), respectively, as of the end of that Financial Year
                  or, as the case may be, detailing any non-compliance;

            (iv)  a report by each of the Borrower and the Project Company on
                  its operations during that Financial Year, in the form of, and
                  addressing the topics listed in, Schedule 9;

            (v)   a statement by each of the Borrower and the Project Company of
                  all transactions between each of them and their respective
                  Affiliates, if any, during that Financial Year, and a
                  certification by an Authorized Representative that those
                  transactions were on the basis of arm's-length arrangements;
                  and

                     Amended and Restated FMO Loan Agreement

<PAGE>
                                      -47-

            (vi)  starting with the Financial Year ending on December 31, 2005,
                  a report by the Borrower setting forth the calculations for
                  such Financial Year of: (A) the railroad diesel taxes paid;
                  (B) the amount of the railroad diesel tax credit actually
                  credited to other tax obligations; and (C) the amount of the
                  railroad diesel tax credit that cannot be credited to other
                  tax obligations because of an insufficient amount of
                  applicable taxes against which it could be credited, together
                  with the Auditors' verification of such calculations;

      (c)   deliver to FMO, promptly following receipt, a copy of any management
letter or other communication sent by the Auditors (or any other accountants
retained by the Borrower) to either of the Borrower or the Project Company or
their management in relation to the Borrower's and the Project Company's
financial, accounting and other systems, management or accounts, if not provided
pursuant to Section 6.04(b)(ii);

      (d)   within ninety (90) days after the end of each Financial Year, cause
the Project Company to deliver to FMO an annual monitoring report in the form of
Schedule 10, confirming compliance with the applicable national or local
requirements, the Environmental and Social Policies, the Environmental, Health
and Safety Guidelines, and the CAP and Sections 6.01(g) and 6.01(h) or, as the
case may be, detailing any non-compliance together with (A) the action being
taken to ensure compliance and (B) a written report verifying the contents of
that annual monitoring report, prepared by an independent third party consultant
of the Project Company, acceptable to FMO;

      (e)   as soon as possible but no later than three (3) days after its
occurrence, notify FMO of any incident or accident which has or may reasonably
be expected to have an adverse effect on the environment, health or safety,
including, without limitation, explosions, spills or workplace accidents which
result in death, serious or multiple injury or major pollution, specifying, in
each case, the nature of the incident or accident, the on-site and off-site
impacts arising or likely to arise therefrom and the measures the Project
Company is taking or plans to take to address those impacts; and keep FMO
informed of the on-going implementation of those measures;

      (f)   give notice to FMO, concurrently with the Borrower's or the Project
Company's notification to its shareholders, of any meeting of the Borrower's or
the Project Company's shareholders, such notice to include the agenda of the
meeting; and, as soon as available, deliver to FMO two (2) copies of:

            (i)   all notices, reports and other communications of the Borrower
                  or the Project Company, as the case may be, to its
                  shareholders, whether any such communication has been made on
                  an individual basis or by way of publication in a newspaper or
                  other communication medium; and

                     Amended and Restated FMO Loan Agreement

<PAGE>
                                      -48-

            (ii)  the minutes of all such shareholders' meetings;

      (g)   promptly notify FMO of any proposed change in the nature or
scope of the Project or the business or operations of the Borrower or the
Project Company and of any event or condition which has or may reasonably be
expected to have a Material Adverse Effect;

      (h)   promptly upon becoming aware of any litigation or administrative
proceedings before any Authority or arbitral body which has or may reasonably be
expected to have a Material Adverse Effect, notify FMO by facsimile of that
event specifying the nature of that litigation or those proceedings and the
steps the Borrower or the Project Company, as the case may be, is taking or
proposes to take with respect thereto;

      (i)   promptly upon the occurrence of an Event of Default or Potential
Event of Default, notify FMO by facsimile specifying the nature of that Event of
Default or Potential Event of Default and any steps the Borrower or the Project
Company, as the case may be, is taking to remedy it;

      (j)   promptly notify FMO (x) in the event the Borrower or the Project
Company receives a notification, fine, warning or other communication from the
GoM with respect to noncompliance by the Project Company with the terms of the
Concession Agreement, (y) in the event the Project Company fails to exercise any
of its rights under the Concession Agreement for a period of thirty (30) days,
or (z) of any other action which, pursuant to the terms of the Concession
Agreement, if left unresolved or with the passage of time, could result in the
termination, suspension or revocation of the Concession Agreement;

      (k)   cause the Project Company to provide to FMO, in a timely manner, the
insurance certificates and other information referred to in Section 6.05 (d)
(Insurance);

      (l)   promptly provide to FMO such other information as FMO may from time
to time reasonably request about the Borrower and the Project Company, their
respective assets and the Project; and

      (m)   as soon as available but in any event within one hundred and twenty
(120) days after June 30 and December 31 in each Financial Year, deliver to FMO:

            (i)   two (2) copies of the Sponsor's complete financial statements
                  for such period prepared on a Consolidated Basis in accordance
                  with the Accounting Principles, which (A) in the case of the
                  financial statements delivered in respect of June 30, shall be
                  unaudited and cover the six-month period ending on June 30 and
                  (B) in the case of the financial statements delivered in
                  respect of December 31,

                     Amended and Restated FMO Loan Agreement

<PAGE>
                                      -49-

                  shall be audited and cover the Financial Year ending on such
                  date; and

            (ii)  a statement of the outstanding amount (measured as of the
                  relevant June 30 or December 31) of all liabilities of any
                  Person (other than itself) which the Sponsor has guaranteed or
                  otherwise directly or indirectly obligated itself to pay;

provided, that such financial or other statements need not be delivered if and
to the extent that corresponding financial statements have been filed with the
United States Securities and Exchange Commission and are publicly available.

      Section 6.05. Insurance.

      (a)   Insurance Requirements and Borrower's and the Project Company's
Undertakings. Unless FMO otherwise agrees, the Borrower shall cause the Project
Company to, and the Project Company (and, after the Merger Effective Date, the
Borrower) shall:

            (i)   insure and keep insured, with financially sound and reputable
                  insurers, all its assets and business against all insurable
                  losses to include the insurances specified in Annex B and any
                  insurance required by law;

            (ii)  punctually pay any premium, commission and any other amounts
                  necessary for effecting and maintaining in force each
                  insurance policy;

            (iii) promptly notify the relevant insurer of any claim by the
                  Project Company (or, after the Merger Effective Date, the
                  Borrower) under any policy written by that insurer and
                  diligently pursue that claim;

            (iv)  comply with all warranties under each policy of insurance;

            (v)   not do or omit to do, or permit to be done or not done,
                  anything which might prejudice its, or, where FMO is loss
                  payee or an additional named insured, FMO's right to claim or
                  recover under any insurance policy; and

            (vi)  not vary, rescind, terminate, cancel or cause a material
                  change to any insurance policy;

            provided always that if at any time and for any reason any insurance
            required to be maintained under this Agreement shall not be in full
            force and effect, then FMO shall thereupon or at any time while the
            same is

                     Amended and Restated FMO Loan Agreement

<PAGE>
                                      -50-

            continuing be entitled (but have no such obligation) on its own
            behalf to procure that insurance at the expense of the Project
            Company (and, after the Merger Effective Date, at the expense of the
            Borrower) and to take all such steps to minimize hazard as FMO may
            consider expedient or necessary.

      (b)   Policy Provisions. Each insurance policy required to be obtained
pursuant to this Section shall be on terms and conditions acceptable to FMO, and
shall contain provisions to the effect that:

            (i)   no policy can expire nor can it be canceled or suspended by
                  the Project Company (or, after the Merger Effective Date, the
                  Borrower) or the insurer for any reason (including failure to
                  renew the policy or to pay the premium or any other amount)
                  unless FMO and, in the case of expiration or if cancellation
                  or suspension is initiated by the insurer, the Project Company
                  (and, after the Merger Effective Date, the Borrower) receive
                  at least forty-five (45) days' notice (or such lesser period
                  as FMO may agree with respect to cancellation, suspension or
                  termination in the event of war and kindred peril) prior to
                  the effective date of termination, cancellation or suspension;

            (ii)  FMO and all contractors working at the Project site are named
                  as additional named insured on all liability policies;

            (iii) where relevant, all its provisions (except those relating to
                  limits of liability) shall operate as if they were a separate
                  policy covering each insured party; and

            (iv)  on every insurance policy on the Project Company's (and, after
                  the Merger Effective Date, the Borrower's) assets which are
                  the subject of the Security and for business interruption or
                  delayed start-up, FMO is named as a loss payee for any claim
                  of, or any series of claims arising with respect to the same
                  event whose aggregate amount is, the equivalent of five
                  hundred thousand Dollars ($500,000) or more;

      (c)   Application of Proceeds.

            (i)   At its discretion, FMO may remit the proceeds of any insurance
                  paid to it to the Project Company (or, after the Merger
                  Effective Date, the Borrower) to repair or replace the
                  relevant damaged assets or may apply those proceeds towards
                  any amount payable to FMO under this Agreement, including to
                  repay or prepay all or any part of the FMO Loan in accordance
                  with Section 3.07

                     Amended and Restated FMO Loan Agreement

<PAGE>
                                      -51-

                  (Prepayment); provided that there shall be no minimum amount
                  or notice period for any such prepayment.

            (ii)  The Project Company (and, after the Merger Effective Date, the
                  Borrower) shall use any insurance proceeds it receives
                  (whether from FMO or directly from the insurers) for loss of
                  or damage to any asset solely to replace or repair that asset.

      (d)   Reporting Requirements. Unless FMO otherwise agrees, the Borrower
shall cause the Project Company to, and the Project Company (and, after the
Merger Effective Date, the Borrower) shall provide to FMO the following:

            (i)   as soon as possible after its occurrence, notice of any event
                  which entitles the Project Company (and, after the Merger
                  Effective Date, the Borrower) to claim for an aggregate amount
                  exceeding the equivalent of five hundred thousand Dollars
                  ($500,000) under any one or more insurance policies;

            (ii)  within forty-five (45) days after the main insurance policy is
                  issued to the Project Company (and, after the Merger Effective
                  Date, the Borrower), a copy of that policy incorporating any
                  loss payee provisions required under Section 6.05 (b) (iv)
                  (unless that policy has already been provided to FMO);

            (iii) not less than ten (10) days prior to the expiry date of any
                  insurance policy (or, for insurance with multiple renewal
                  dates, not less than ten (10) days prior to the expiry date of
                  the policy on the principal asset), a certificate of renewal
                  from the insurer, insurance broker or agent confirming the
                  renewal of that policy and the renewal period, the premium,
                  the amounts insured for each asset or item and any changes in
                  terms or conditions from the policy's issue date or last
                  renewal, and confirmation from the insurer that provisions
                  naming FMO as a loss payee or additional named insured, as
                  applicable, remain in effect;

            (iv)  such evidence of premium payment as FMO may from time to time
                  request; and

            (v)   any other information or documents on each insurance policy as
                  FMO request from time to time.

                     Amended and Restated FMO Loan Agreement

<PAGE>
                                      -52-

                                   ARTICLE VII

                                EVENTS OF DEFAULT

      Section 7.01. Acceleration after Default. If any Event of Default occurs
and is continuing (whether it is voluntary or involuntary, or results from
operation of law or otherwise), FMO may, by notice to the Borrower, require the
Borrower to repay the FMO Loan or such part of the FMO Loan as is specified in
that notice. On receipt of any such notice, the Borrower shall immediately repay
the FMO Loan (or that part of the FMO Loan specified in that notice) and pay all
interest accrued on it and any other amounts then payable under this Agreement.
The Borrower waives any right it might have to further notice, presentment,
demand or protest with respect to that demand for immediate payment.

      Section 7.02. Events of Default. It shall be an Event of Default if:

      (a)   the Borrower fails to pay when due any part of the principal of, or
interest on, the FMO Loan and such failure continues for a period of five (5)
days;

      (b)   the Borrower fails to pay when due any part of the principal of, or
interest on, the IFC Loan and such failure continues for a period of five (5)
days;

      (c)   the Borrower fails to pay when due any part of the principal of, or
interest on, any loan from FMO to the Borrower other than the FMO Loan and any
such failure continues for the relevant period of grace provided for in the
agreement providing for that loan;

      (d)   the Borrower or the Project Company fails to comply with any of its
obligations under this Agreement or any other Transaction Document or any other
agreement between the Borrower and/or the Project Company and FMO (other than
for the payment of the principal of, or interest on, the FMO Loan or any other
loan from FMO to the Borrower), and any such failure continues for a period of
thirty (30) days after the earlier of the date on which (i) FMO notifies the
Borrower or the project Company of that failure, or (ii) the Borrower or the
Project Company becomes aware of such failure;

      (e)   any party to a Transaction Document (other than FMO or the Borrower)
or a Project Document fails to observe or perform any of its obligations under
that Transaction Document or Project Document, and any such failure continues
for a period of thirty (30) days after the earlier of the date on which (i) FMO
notifies the Borrower or the Project Company of that failure, or (ii) the
Borrower or the Project Company becomes aware of such failure;

      (f)   any representation or warranty made in Article IV or in connection
with the execution of, or any request (including a request for Disbursement)
under, this

                     Amended and Restated FMO Loan Agreement

<PAGE>
                                      -53-

Agreement or any other Transaction Document is found to be incorrect in any
material respect;

      (g)   any Authority condemns, nationalizes, seizes, or otherwise
expropriates all or any substantial part of the property or other assets of the
Borrower or of its share capital, or assumes custody or control of that property
or other assets or of the business or operations of the Borrower or of its share
capital, or takes any action for the dissolution or disestablishment of the
Borrower or any action that would prevent the Borrower or its officers from
carrying on all or a substantial part of its business or operations;

      (h)   a decree or order by a court is entered against the Borrower:

            (i)   adjudging the Borrower bankrupt or insolvent;

            (ii)  approving as properly filed a petition seeking reorganization,
                  arrangement, adjustment or composition of, or with respect to,
                  the Borrower under any applicable law;

            (iii) appointing a receiver, liquidator, assignee, trustee,
                  sequestrator (or other similar official) of the Borrower or of
                  any substantial part of its property or other assets; or

            (iv)  ordering the winding up or liquidation of its affairs;

or any petition is filed seeking any of the above and is not dismissed within
thirty (30) days;

      (i)   the Borrower:

            (i)   requests a moratorium or suspension of payment of debts from
                  any court;

            (ii)  institutes proceedings or takes any form of corporate action
                  to be liquidated, adjudicated bankrupt or insolvent;

            (iii) consents to the institution of bankruptcy or insolvency
                  proceedings against it;

            (iv)  files a petition or answer or consent seeking reorganization
                  or relief under any applicable law, or consents to the filing
                  of any such petition or to the appointment of a receiver,
                  liquidator, assignee, trustee, sequestrator (or other similar
                  official) of the Borrower or of any substantial part of its
                  property;

            (v)   makes a general assignment for the benefit of creditors; or

                     Amended and Restated FMO Loan Agreement

<PAGE>
                                      -54-

            (vi)  admits in writing its inability to pay its debts generally as
                  they become due or otherwise becomes insolvent;

      (j)   an attachment or analogous process is levied or enforced upon or
issued against any of the assets of the Borrower for an amount in excess of the
equivalent of one million Dollars ($1,000,000) and is not discharged within
thirty (30) days;

      (k)   any other event occurs which under any applicable law would have an
effect analogous to any of those events listed in Section 7.02 (g) through
Section 7.02 (i);

      (l)   the Borrower or the Project Company fails to pay any of its Debt due
and payable in excess of five hundred thousand Dollars ($500,000) (other than
the FMO Loan or any other loan from FMO to the Borrower) or to perform any of
its obligations under any agreement pursuant to which there is outstanding any
Debt, and any such failure continues for more than any applicable period of
grace or any such Debt becomes prematurely due and payable or is placed on
demand;

      (m)   any Authorization necessary for the Borrower or the Project Company
to perform and observe its obligations under any Transaction Document is not
obtained when required or is rescinded, terminated, lapses or otherwise ceases
to be in full force and effect, including with respect to the remittance to FMO
or its assignees, in Dollars, of any amounts payable under any Transaction
Document, and is not restored or reinstated within thirty (30) days of notice by
FMO to the Borrower requiring that restoration or reinstatement;

      (n)   any Security Document or any of its provisions:

            (i)   is revoked, terminated or ceases to be in full force and
                  effect or ceases to provide the security intended, without, in
                  each case, the prior consent of FMO;

            (ii)  becomes unlawful or is declared void; or

            (iii) is repudiated or its validity or enforceability is challenged
                  by any Person and any such repudiation or challenge continues
                  for a period of thirty (30) days during which period such
                  repudiation or challenge has no effect;

      (o)   any Transaction Document (other than a Security Document) or any of
its provisions:

            (i)   is revoked, terminated or ceases to be in full force and
                  effect without, in each case, the prior consent of FMO, and
                  that event, if capable of being remedied, is not remedied to
                  the satisfaction of FMO within thirty (30) days of FMO's
                  notice to the Borrower; or

                     Amended and Restated FMO Loan Agreement

<PAGE>
                                      -55-

            (ii)  becomes unlawful or is declared void;

      (p)   any Transaction Document (other than a Security Document) is
repudiated or the validity or enforceability of any of its provisions at any
time is challenged by any Person and such repudiation or challenge is not
withdrawn within thirty (30) days of FMO's notice to the Borrower requiring that
withdrawal; provided that no such notice shall be required or, as the case may
be, the notice period shall terminate if and when such repudiation or challenge
becomes effective;

      (q)   any Project Document:

            (i)   is breached by any party to it and such breach has or could
                  reasonably be expected to have a Material Adverse Effect; or

            (ii)  is revoked, amended, terminated or ceases to be in full force
                  and effect without the prior consent of FMO, or performance of
                  any of the material obligations under any such agreement
                  becomes unlawful or any such agreement is declared to be void
                  or is repudiated or its validity or enforceability at any time
                  is challenged by any party to it;

      (r)   any of the events specified in Section 7.02 (g) through 7.02 (l)
occurs to the Sponsor or its properties, assets, or capital; provided, that, the
threshold under Section 7.02 (j) and Section 7.02 (l) shall be $2,000,000;

      (s)   any of the events specified in Section 7.02(g) through 7.02(k)
occurs with respect to the Project Company or its properties, assets, or
capital;

      (t)   the Project Company fails to exercise any of its rights under the
Concession Agreement;

      (u)   the Merger shall not have occurred by the Merger Deadline Date; or

      (v)   GoM notifies the Project Company or FMO of its intention to
terminate the Concession Agreement.

      Section 7.03. Bankruptcy. If the Borrower or the Project Company is
liquidated or declared bankrupt, the FMO Loan, all interest accrued on it and
any other amounts payable under this Agreement will become immediately due and
payable without any presentment, demand, protest or notice of any kind, all of
which the Borrower waives.

                                  ARTICLE VIII

                                  MISCELLANEOUS

                     Amended and Restated FMO Loan Agreement
<PAGE>

                                      -56-

      Section 8.01. Saving of Rights. (a) The rights and remedies of FMO in
relation to any misrepresentation or breach of warranty on the part of the
Borrower and/or the Project Company shall not be prejudiced by any investigation
by or on behalf of FMO into the affairs of the Borrower and/or the Project
Company, by the execution or the performance of this Agreement or by any other
act or thing which may be done by or on behalf of FMO in connection with this
Agreement and which might, apart from this Section, prejudice such rights or
remedies.

      (b) No course of dealing or waiver by FMO in connection with any condition
of effectiveness of this Agreement shall impair any right, power or remedy of
FMO with respect to any other condition of effectiveness, or be construed to be
a waiver thereof.

      (c) No course of dealing and no failure or delay by FMO in exercising, in
whole or in part, any power, remedy, discretion, authority or other right under
this Agreement or any other agreement shall waive or impair, or be construed to
be a waiver of or an acquiescence in, such or any other power, remedy,
discretion, authority or right under this Agreement, or in any manner preclude
its additional or future exercise; nor shall the action of FMO with respect to
any default, or any acquiescence by it therein, affect or impair any right,
power or remedy of FMO with respect to any other default.

      (d) The Borrower, the Project Company and FMO have agreed to remove
certain provisions that had been included in the Original FMO Loan Agreement.
For the avoidance of doubt, such removal is without prejudice to any rights or
remedies arising from such provisions (i) which may have accrued to FMO prior to
the effectiveness of this Agreement and (ii) which may accrue to FMO on or after
the effectiveness of this Agreement with respect to the period prior thereto.

      Section 8.02. Notices. Any notice, request or other communication to be
given or made under this Agreement shall be in writing. Subject to Section 6.04
(i) and Section 6.04 (h) (Reporting Requirements) and Section 8.05 (c), any such
communication may be delivered by hand, airmail, facsimile or established
courier service to the party's address specified below or at such other address
as such party notifies to the other party from time to time, and will be
effective upon receipt. A notice, request or other communication (other than
under Article III) which is made by facsimile shall be confirmed by mail but
without prejudice to it being effective on receipt of the facsimile.

      For the Borrower:

            GW Servicios, S.A. de C.V.
            Calle 43 429-C
            Col. Industrial
            Merida, Yucatan
            97000 Mexico

            Attention: Chief Financial Officer

                    Amended and Restated FMO Loan Agreement

<PAGE>

                                      -57-

            Alternative address for communications by facsimile:

            +52-9-930-2543

      For the Project Company:

            Compania de Ferrocarriles Chiapas-Mayab, S.A. de C.V.
            Calle 43 429-C
            Col. Industrial
            Merida, Yucatan
            97000
            Mexico

            Attention: Chief Financial Officer

            Alternative address for communications by facsimile:

                  +52-9-930-2543

      For FMO:

            Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V.
            Anna van Saksenlaan 71
            2593 HW The Hague
            The Netherlands

            Facsimile: +31-70-314-9757

            Attention: Latin America and Caribbean Department

      Section 8.03. English Language. (a) All documents to be provided or
communications to be given or made under this Agreement shall be in the English
language.

      (b) To the extent that the original version of any document to be
provided, or communication to be given or made, to FMO under this Agreement or
any other Transaction Document is in a language other than English, that
document or communication shall be accompanied by an English translation
certified by an Authorized Representative to be a true and correct translation
of the original. FMO may, if it so requires, obtain an English translation of
any document or communication received in a language other than English at the
cost and expense of the Borrower. FMO may deem any such English translation to
be the governing version between the Borrower and FMO.

                     Amended and Restated FMO Loan Agreement

<PAGE>

                                      -58-

      Section 8.04. Term of Agreement. This Agreement shall continue in force
until all monies payable under it have been fully paid in accordance with its
provisions.

      Section 8.05. Applicable Law and Jurisdiction. (a) This Agreement is
governed by, and shall be construed in accordance with, the laws of the State of
New York, United States of America.

      (b) Each of the parties hereby irrevocably submits to the jurisdiction of
any court of the United States of America located in the Southern District of
New York in any action or proceeding arising out of or relating to this
Agreement. By the execution and delivery of this Agreement each of the parties
hereby irrevocably submits to the jurisdiction of any such court and, except as
otherwise provided in Section 8.05 (e), hereby irrevocably waives the benefit of
jurisdiction derived from present or future domicile or otherwise in any such
action or proceeding.

      (c) Each of the Borrower and the Project Company hereby irrevocably
designates, appoints and empowers CT Corporation System, 111 Eighth Avenue, 13th
Floor, New York, New York 10011, United States of America, as its authorized
agent to receive for and on its behalf service of summons or other legal process
in any such action or proceeding in New York, New York, United States of
America. Each of the Borrower and Project Company agrees that the failure of
such agent to give notice to the Borrower or the Project Company of any such
service shall not impair or affect the validity of such service or of any
judgment rendered in any action or proceeding based thereon. Each of the
Borrower and the Project Company further irrevocably consents to the service of
process out of any such court by mailing copies thereof by registered United
States air mail postage prepaid to the Borrower or the Project Company at its
address specified herein. Final judgment against the Borrower or the Project
Company in any such action, suit or proceeding shall be conclusive and may be
enforced in any other jurisdiction, including Mexico, by suit on the judgment, a
certified or exemplified copy of which shall be conclusive evidence of the fact.
Nothing herein shall affect the right of FMO to serve process upon the Borrower
or the Project Company in any manner authorized by the laws of any such other
jurisdiction.

      (d) Each of the parties hereby irrevocably waives, to the fullest extent
permitted by law, any objection which it may now or hereafter have to the laying
of venue of any suit, action or proceeding arising out of or relating to this
Agreement brought in the courts of the United States of America located in the
Southern District of New York and hereby further irrevocably waives, to the
fullest extent permitted by law, any claim that any such suit, action or
proceeding brought in any such court has been brought in any inconvenient forum.
Each of the Borrower and the Project Company further covenants and agrees that,
until all monies actually or contingently payable hereunder shall have been
fully paid in accordance with the terms of this Agreement, it shall maintain
duly appointed agents for the service of summons and other legal process in New
York, New York, United States of America, for purposes of any legal action or
proceeding brought by FMO in respect of this Agreement and shall keep FMO
advised of the identity and location of such agents.

                     Amended and Restated FMO Loan Agreement

<PAGE>

                                      -59-

      (e) Each of the Borrower and the Project Company hereby irrevocably agrees
that any legal action, suit or proceeding arising out of or relating to this
Agreement may be brought in the courts of the Federal District of Mexico at the
election of FMO without any requirement that FMO submits, to the jurisdiction of
such courts in connection with any legal action, suit or proceeding arising out
of or relating to this Agreement that may be brought at the election of the
Borrower or the Project Company. By the execution and delivery of this
Agreement, each of the Borrower and the Project Company hereby irrevocably
submits to the jurisdiction of any such court and hereby irrevocably waives the
benefit of jurisdiction derived otherwise in any such action, suit or
proceeding. Nothing in this Agreement constitutes a waiver by FMO of any
immunity to which FMO may be entitled under applicable law.

      (f) Each of the Borrower and the Project Company irrevocably waives to the
fullest extent permitted by applicable law any and all rights to demand a trial
by jury in any action, suit or proceeding brought against the Borrower or the
Project Company by FMO.

      (g) To the extent that either the Borrower or the Project Company may be
entitled in any jurisdiction to claim for itself or its assets immunity in
respect of its obligations under this Agreement from any suit, execution,
attachment (whether provisional or final, in aid of execution, before judgment
or otherwise) or other legal process or to the extent that in any jurisdiction
such immunity (whether or not claimed) may be attributed to it or its assets, it
irrevocably agrees not to claim and irrevocably waives such immunity to the
fullest extent permitted by the laws of such jurisdiction.

      (h) Each of the Borrower and the Project Company hereby irrevocably waives
any and all rights to demand a trial by jury in any action, suit or proceeding
arising out of or relating to this Agreement or the transactions contemplated by
this Agreement, brought against FMO in any forum in which FMO is not entitled to
immunity from a trial by jury.

      (i) To the extent that either the Borrower or the Project Company may, in
any suit, action or proceeding brought in any of the courts referred to in
subsection (b) above or elsewhere (other than a court in Mexico) arising out of
or in connection with this Agreement be entitled to the benefit of any provision
of law requiring FMO in such suit, action or proceeding to post security for the
costs of the Borrower or the Project Company (cautio judicatum solvi), or to
post a bond or to take similar action, each of the Borrower and the Project
Company hereby irrevocably waives such benefit, in each case to the fullest
extent now or in the future permitted under the laws of the jurisdiction in
which such court is located.

      Section 8.06. Disclosure of Information. (a) FMO may disclose any
documents or records of, or information about, this Agreement or any other
Transaction Document, or the assets, business or affairs of the Borrower to:

                     Amended and Restated FMO Loan Agreement

<PAGE>

                                      -60-

            (i)   its outside counsel, auditors and rating agencies,

            (ii)  any Person with a participation in or who intends to purchase
                  a participation in a portion of the FMO Loan, and

            (iii) any other Person as FMO may deem appropriate in connection
                  with any proposed sale, transfer, assignment or other
                  disposition of FMO's rights under this Agreement or any other
                  Transaction Document or otherwise for the purpose of
                  exercising any power, remedy, right, authority, or discretion
                  relevant to this Agreement or any other Transaction Document.

      (b) The Borrower acknowledges and agrees that, notwithstanding the terms
of any other agreement between the Borrower and FMO, a disclosure of information
by FMO in the circumstances contemplated by Section 8.06 (a) does not violate
any duty owed to the Borrower under this Agreement or under any such other
agreement.

      Section 8.07. Successors and Assignees. This Agreement binds and benefits
the respective successors and permitted assignees of the parties. However,
neither the Borrower nor the Project Company may, subject to Article IX, assign
or delegate any of its rights or obligations under this Agreement without the
prior consent of FMO. Any purported assignment or delegation in violation of
this Section shall be void.

      Section 8.08. Amendments, Waivers and Consents. Any amendment or waiver
of, or any consent given under, any provision of this Agreement shall be in
writing and, in the case of an amendment, signed by the parties.

      Section 8.09 Counterparts. This Agreement may be executed in several
counterparts, each of which is an original, but all of which together constitute
one and the same agreement.

                                   ARTICLE IX

                                   THE MERGER

      Section 9.01. Conditions Precedent of the Merger. The Merger shall be
subject to the following conditions precedent:

      (a)   the Borrower and the Project Company shall provide to FMO no less
            than six (6) months' prior notice in writing of the Merger;

      (b)   [reserved];

                     Amended and Restated FMO Loan Agreement

<PAGE>

                                      -61-

      (c)   the Borrower and the Project Company shall provide to FMO such other
            documents as FMO may reasonably request in connection with the
            Merger;

      (d)   the Borrower, the Project Company, and the Sponsor shall execute,
            acknowledge, deliver or cause to be executed, acknowledged and
            delivered such further instruments as FMO may reasonably request for
            perfecting the Security or otherwise to enable the Borrower, the
            Project Company or the Sponsor to comply with its obligations under
            the Transaction Documents; and

      (e)   FMO shall receive, at the expense of the Project Company, a legal
            opinion, satisfactory to FMO, from FMO's counsel in Mexico:

            (i)   confirming that the Merger is tax-free under the laws of
                  Mexico; all formalities have been fulfilled to ensure that the
                  Borrower shall assume all the obligations of the Project
                  Company under this Agreement, the Security Documents and other
                  Transaction Documents; all formalities have been fulfilled to
                  ensure that the Security is perfected; and

            (ii)  covering such other matters as FMO may reasonably request.

      Section 9.02. Acknowledgment of the Borrower. Without in any way limiting
the effect of the Merger under law, the Borrower acknowledges and agrees that,
on the Merger Effective Date, each and every obligation and liability of the
Project Company under this Agreement shall become the obligation and liability
of the Borrower, without any further action by any party hereto or any other
Person.

                            -signature page follows-

                     Amended and Restated FMO Loan Agreement

<PAGE>

                                      -62-

      IN WITNESS WHEREOF, the parties have caused this Agreement to be signed in
their respective names as of the date first above written.

GW SERVICIOS, S.A. DE C.V.

By: _________________________

Name: _______________________

Title: ______________________

COMPANIA DE FERROCARRILES CHIAPAS-MAYAB, S.A. DE C.V.

By: _________________________

Name: _______________________

Title: ______________________

NEDERLANDSE FINANCIERINGS-MAATSCHAPPIJ
VOOR ONTWIKKELINGSLANDEN N.V.

By: _________________________    By: ____________________________

Name: _______________________    Name: __________________________

Title: ______________________    Title: _________________________

                     Amended and Restated FMO Loan Agreement

<PAGE>

                                      -63-

                                                                       ANNEX A
                                                                     Page 1 of 1

                                   [reserved]

                     Amended and Restated FMO Loan Agreement

<PAGE>

                                      -64-

                                                                       ANNEX B
                                                                     Page 1 of 1

                         MINIMUM INSURANCE REQUIREMENTS

                  (See Section 6.05 (a) of the Loan Agreement)

                         MINIMUM INSURANCE REQUIREMENTS

The company shall have the following insurances in place at all times as
applicable:

1.    CONSTRUCTION/REHABILITATION WORK

      a)    Construction All Risks, based on full contract value and including:

            i)    Riot and Strike

            ii)   Debris Removal

            iii)  Extra Expenses

            iv)   Maintenance

            v)    Third Party Liability for not less than $75 million

      b)    Marine all Risks (including war) in respect of all critical imports.

2.    OPERATIONAL PHASE

      a) Fire and named perils or All Risks Insurance based on replacement value
      of all fixed assets

      b)    All Risks Insurance for full replacement value, or for 125% of PML
            as calculated by an experienced Insurance surveyor, on all movable
            assets including rolling stocks.

      c)    Business Interruption or Extra Expenses with an indemnity period of
            not less than 12 months

      d)    Third Party Liability, including Passenger and Goods Liability for
            not less than $ 75 million

3.    AT ALL TIMES

      Such insurances as required by local legislation or by contract

      Directors' and Officers' Liability insurance

                     Amended and Restated FMO Loan Agreement

<PAGE>

                                      -65-

                                                                       ANNEX C
                                                                     Page 1 of 1

                                   [reserved]

                     Amended and Restated FMO Loan Agreement

<PAGE>

                                      -66-

                                                                     SCHEDULE 1
                                                                     Page 1 of 2

                 FORM OF CERTIFICATE OF INCUMBENCY AND AUTHORITY

                    (See Section 1.01 of the Loan Agreement)

                             [Borrower's Letterhead]

                                                                          [Date]

Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V.
Anna van Saksenlaan 71
2593 HW The Hague
The Netherlands

Attention: Latin America and Caribbean Department

Ladies and Gentlemen:

                     Certificate of Incumbency and Authority

      With reference to the Loan Agreement among GW Servicios, S.A. de C.V. (the
"Borrower"), Compania de Ferrocarriles Chiapas-Mayab, S.A. de C.V. (the "Project
Company") and Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden
N.V. ("FMO"), dated December 5, 2000, as amended and restated as of March 15,
2005 (the "Loan Agreement"), I, the undersigned [Chairman/Director] of [GW
Servicios, S.A. de C.V., (the "Borrower")][Compania de Ferrocarriles
Chiapas-Mayab, S.A. de C.V. (the "Project Company")], duly authorized to do so,
hereby certify that the following are the names, offices and true specimen
signatures of the persons [each] [any two] of whom are, and will continue to be,
authorized:

      (a) to sign the certifications provided for in Section 5.01(i) of the Loan
Agreement; and

                     Amended and Restated FMO Loan Agreement

<PAGE>

                                      -67-

                                                                     SCHEDULE 1
                                                                     Page 2 of 2

      (b) to take any other action required or permitted to be taken, done,
signed or executed under the Loan Agreement or any other agreement to which FMO
and the Borrower may be parties.

*Name                           Office                     Specimen Signature
____________________________    _______________________    _____________________

____________________________    _______________________    _____________________

____________________________    _______________________    _____________________

      You may assume that any such person continues to be so authorized until
you receive authorized written notice from the Borrower that they, or any of
them, is no longer so authorized.

                                             Yours truly,

                                             [GW SERVICIOS, S.A. DE C.V.]
                                             [COMPANIA DE FERROCARRILES
                                             CHIAPAS-MAYAB, S.A. DE C.V.]

                                             By ________________________
                                                   [Chairman/Director]

---------------------
*     Designations may be changed by the Borrower or the Project Company at any
      time by issuing a new Certificate of Incumbency and Authority authorized
      by the Board of Directors of the Borrower where applicable.

                     Amended and Restated FMO Loan Agreement

<PAGE>

                                      -68-

                                                                     SCHEDULE 2
                                                                     Page 1 of 2

             FORM OF CERTIFICATION OF REPRESENTATIONS AND WARRANTIES

                   (See Section 5.01(i) of the Loan Agreement)

                             [Borrower's Letterhead]

                                                                 March ___, 2005

Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V.
Anna van Saksenlaan 71
2593 HW The Hague
The Netherlands

Attention: Latin America and Caribbean Department

Ladies and Gentlemen:

1. Please refer to the Loan Agreement (the "Loan Agreement") dated December 5,
2000, as amended and restated as of March 15, 2005, among GW Servicios, S.A. de
C.V. (the "Borrower"), Compania de Ferrocarriles Chiapas-Mayab, S.A. de C.V.
(the "Project Company") and Nederlandse Financierings-Maatschappij voor
Ontwikkelingslanden N.V. ("FMO"). Terms defined in the Loan Agreement have their
defined meanings whenever used in this request.

2. For the purpose of Section 5.01(i) of the Loan Agreement, the Borrower and
the Project Company certify that the representations and warranties made in
Article IV of the Loan Agreement are true and correct in all material respects
on the date of this certificate with the same effect as if such representations
and warranties had been made on and as of the date hereof.

                     Amended and Restated FMO Loan Agreement

<PAGE>

                                      -69-

                                                                     SCHEDULE 2
                                                                     Page 2 of 2

      The above certification is effective as of the date of this Certificate.
If this certification is no longer valid as of or prior to the date of receipt
of the notice described in Section 5.02(a) from FMO, the Borrower and the
Project Company undertake to immediately notify the Senior Lenders.

                                             Yours truly,

                                             GW SERVICIOS, S.A. DE C.V.

                                             By ____________________________
                                                  Authorized Representative

                                             COMPANIA DE FERROCARRILES
                                             CHIAPAS MAYAB, S.A. DE C.V.

                                             By ____________________________
                                                  Authorized Representative

                     Amended and Restated FMO Loan Agreement

<PAGE>

                                      -70-

                                                                     SCHEDULE 3
                                                                     Page 1 of 1

                         FORM OF NOTICE OF EFFECTIVENESS

                   (See Section 5.02(a) of the Loan Agreement)

                                [FMO Letterhead]

                                                                 March ___, 2005

GW Servicios, S.A. de C.V.
Calle 43 429-C
Col. Industrial
Merida, Yucatan
97000
Mexico

Attention: Chief Financial Officer

Dear _____________:

                   Effectiveness of Amendment and Restatement
                      of Loan Agreement and Other Documents

      Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V.
("FMO") hereby notifies G.W. Servicios, S.A. de C.V. (the "Borrower") that the
conditions of effectiveness described in Section 5.01 of the Amended and
Restated Loan Agreement dated as of March 15, 2005, among the Borrower, Compania
de Ferrocarriles Chiapas-Mayab, S.A. de C.V. and FMO (the "Loan Agreement") have
been met. Consequently, the Loan Agreement and the other documents described in
Section 5.01(a) of the Loan Agreement shall be effective as of the date thereof
(subject, in the case of any document to which International Finance Corporation
("IFC") is a party, to receipt by the Borrower and FMO of a comparable notice of
effectiveness from IFC).

                                     Yours truly,

                                     NEDERLANDSE FINANCIERINGS-MAATSCHAPPIJ VOOR
                                     ONTWIKKELINGSLANDEN N.V.

                                     By _____________________

cc:  IFC

                     Amended and Restated FMO Loan Agreement

<PAGE>

                                      -71-
                                                                     SCHEDULE 4
                                                                     Page 1 of 2

                        FORM OF SERVICE OF PROCESS LETTER

                  [Letterhead of Agent for Service of Process]
                      (See Section 8.05 (c) Loan Agreement)

                                                                          [Date]

Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V.
Anna van Saksenlaan 71
2593 HW The Hague
The Netherlands

Attention: Latin America and Caribbean Department

Dear Sirs:

      Reference is made to Section 8.05 of the Loan Agreement dated December 5,
2000, as amended and restated as of March 15, 2005 (the "Loan Agreement"), among
GW Servicios, S.A. de C.V. (the "Borrower"), Compania de Ferrocarriles
Chiapas-Mayab, S.A. de C.V. (the "Project Company") and Nederlandse
Financierings-Maatschappij voor Ontwikkelingslanden N.V. ("FMO"). Unless
otherwise defined herein, capitalized terms used herein shall have the meaning
specified in the Loan Agreement.

      Pursuant to Section 8.05 (c) of the Loan Agreement, each of the Borrower
and the Project Company has irrevocably designated and appointed the
undersigned, CT Corporation System, with offices currently located at 111 Eighth
Avenue, 13th Floor, New York, New York 10011, as its authorized agent to receive
for and on its behalf service of process in any legal action or proceeding with
respect to the Loan Agreement in the courts of the United States of America for
the Southern District of New York.

      The undersigned hereby informs you that it has irrevocably accepted that
appointment as process agent as set forth in Section 8.05(c) of the Loan
Agreement from _______(2) until ___________ (3) and agrees with you that the
undersigned (i) shall inform FMO promptly in writing of any change of its
address in New York, (ii) shall perform its

----------------------
(2)   Insert date of effectiveness of appointment.

(3)   Insert date which is [three] months after the last repayment of the Loan.

                     Amended and Restated FMO Loan Agreement

<PAGE>

                                      -72-

                                                                     SCHEDULE 4
                                                                     Page 2 of 2

obligations as such process agent in accordance with the relevant provisions of
Section 8.05(c) of the Loan Agreement, and (iii) shall forward promptly to the
Borrower and the Project Company any legal process received by the undersigned
in its capacity as process agent.

      As process agent, the undersigned and its successor or successors agree to
discharge the above-mentioned obligations and will not refuse fulfillment of
such obligations as provided under Section 8.05 (c) of the Loan Agreement.

                                                   Very truly yours,

                                                   CT Corporation System

                                                   By ____________________
                                                      Title:

cc: [Borrower]
    [Project Company]

                     Amended and Restated FMO Loan Agreement

<PAGE>

                                      -73-

                                                                     SCHEDULE 5
                                                                     Page 1 of 1

                                   [reserved]

                     Amended and Restated FMO Loan Agreement

<PAGE>

                                      -74-

                                                                     SCHEDULE 6
                                                                     Page 1 of 2

                      FORM OF LETTER TO BORROWER'S AUDITORS

                             (See Section 6.01(e) of
                               the Loan Agreement)

                             [Borrower's Letterhead]

                                                                          [Date]

[NAME OF AUDITORS]
[ADDRESS]

Ladies and Gentlemen:

      We hereby authorize and request you to give to Nederlandse
Financierings-Maatschappij voor Ontwikkelingslanden N.V. ("FMO"), Anna van
Saksenlaan 71 2593 HW, The Hague, The Netherlands, all such information as FMO
may reasonably request with regard to the financial statements of the
undersigned company, both audited and unaudited. We have agreed to supply that
information and those statements under the terms of a Loan Agreement between the
undersigned company, Compania de Ferrocarriles Chiapas-Mayab, S.A. de C.V., and
FMO dated December 5, 2000, as amended and restated as of March 15, 2005 (the
"Loan Agreement"). For your information we enclose a copy of the Loan Agreement.

      We authorize and request you to send two copies of the audited accounts of
the undersigned company to FMO to enable us to satisfy our obligation to FMO
under Section 6.04(b)(i) of the Loan Agreement. When submitting the same to FMO,
please also send, at the same time, a copy of your full report on such accounts
in a form reasonably acceptable to FMO.

      Please note that under Section 6.04(b)(ii) and (iii) and Section 6.04(c)
of the Loan Agreement, we are obliged to provide FMO with:

      (a) a copy of the annual and any other management letter or other
communication from you to the undersigned company or its management commenting
on, among other things, the adequacy of the undersigned company's financial
control procedures and accounting and management information system; and

                     Amended and Restated FMO Loan Agreement

<PAGE>

                                      -75-

                                                                     SCHEDULE 6
                                                                     Page 2 of 2

      (b) a report by you certifying that, based upon its audited financial
statements, the undersigned company and the Project Company (as defined in the
Loan Agreement) were in compliance with the financial covenants contained in
Section 6.02 and Section 6.03, respectively, of the Loan Agreement as at the end
of the relevant Financial Year or, as the case may be, detailing any
non-compliance.

      Please also submit each such communication and report to FMO with the
audited accounts.

      For our records, please ensure that you send to us a copy of every letter
which you receive from FMO, immediately upon receipt and a copy of each reply
made by you immediately upon the issue of that reply.

                                             Yours truly,

                                             GW SERVICIOS, S.A. DE C.V.

                                             By _____________________________
                                                  Authorized Representative

Enclosure

cc:
Latin America and Caribbean Department
Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V.
Anna van Saksenlaan 71
2593 HW The Hague
The Netherlands

                     Amended and Restated FMO Loan Agreement

<PAGE>

                                      -76-

                                                                     SCHEDULE 7
                                                                     Page 1 of 2

          FORM OF BORROWER'S CERTIFICATION ON DISTRIBUTION OF DIVIDENDS

                   (See Section 6.02(a) of the Loan Agreement)

                             [Borrower's Letterhead]

                                                                          [Date]
Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V.
Anna van Saksenlaan 71
2593 HW The Hague
The Netherlands

Attention: Latin America and Caribbean Department

Dear Sirs:

1. Please refer to the Loan Agreement (the "Loan Agreement") dated December 5,
2000, as amended and restated as of March 15, 2005 among GW Servicios, S.A. de
C.V. (the "Borrower"), Compania de Ferrocarriles Chiapas-Mayab, S.A. de C.V.
(the "Project Company") and Nederlandse Financierings-Maatschappij voor
Ontwikkelingslanden N.V. ("FMO"). Terms defined in the Loan Agreement have their
defined meanings whenever used in this request.

2. This is to inform you that the Borrower plans a distribution of dividends to
its shareholders in the aggregate amount of ______________ (______), such
distribution to commence on or about _________, ___. Pursuant to Section 6.02(a)
of the Loan Agreement, the Borrower hereby certifies that, as at the date
hereof:

      (a)   the proposed distribution will be entirely out of retained earnings
            and such retained earnings do not include any amount resulting from
            the revaluation of any of the Borrower's assets;

      (b)   no Event of Default or Potential Event of Default has occurred and
            is continuing;

      (c)   prior to the date hereof, the Borrower has made prepayments under
            Section 3.07 of the Loan Agreement in a sufficient amount, and such
            prepayments have been applied against the remaining installments of
            the FMO Loan in inverse order of maturity (as required under Section
            3.07(c) of the Loan Agreement), such that the final installment of
            the FMO Loan under Section 3.06 of the Loan Agreement is due no
            later than September 15, 2008; and

                     Amended and Restated FMO Loan Agreement

<PAGE>

                                      -77-

                                                                     SCHEDULE 7
                                                                     Page 2 of 2

      (d)   after giving effect to the proposed distribution:

            (i)   the Borrower's Current Ratio would be at least 1.0;

            (ii)  the Borrower's Long-term Debt to Tangible Net Worth Ratio
                  would be less than 2.0; and

            (iii) the Borrower's Debt Service Coverage Ratio would not be less
                  than 1.4.

3. The Borrower undertakes not give effect to the proposed distribution or any
part thereof if, at the time of so doing or after giving effect to it, the
Borrower could not certify the matters referred to in section 2 of this
certification.

                                             Yours truly,

                                             GW SERVICIOS, S.A. DE C.V.

                                             By _____________________________
                                                  Authorized Representative

                     Amended and Restated FMO Loan Agreement

<PAGE>

                                      -78-

                                                                     SCHEDULE 8
                                                                     Page 1 of 1

                                   [reserved]

                     Amended and Restated FMO Loan Agreement

<PAGE>

                                      -79-

                                                                     SCHEDULE 9
                                                                     Page 1 of 2

            INFORMATION TO BE INCLUDED IN ANNUAL REVIEW OF OPERATIONS

                (See Section 6.04(b) (iv) of the Loan Agreement)

      [(1)  Sponsors and Shareholdings. Information on significant changes in
            share ownership of Borrower, the reasons for such changes, and the
            identity of major new shareholders.

      (2)   Country Conditions and Government Policy. Report on any material
            changes in local conditions, including government policy changes,
            that directly affect the Borrower (e.g. changes in government
            economic strategy, taxation, foreign exchange availability, price
            controls, and other areas of regulations.)

      (3)   Management and Technology. Information on significant changes in (i)
            the Borrower's senior management or organizational structure, and
            (ii) technology used by the Borrower, including technical assistance
            arrangements.

      (4)   Corporate Strategy. Description of any changes to the Borrower's
            corporate or operational strategy, including changes in products,
            degree of integration, and business emphasis.

      (5)   Markets. Brief analysis of changes in Borrower's market conditions
            (both domestic and export), with emphasis on changes in market share
            and degree of competition.

                     Amended and Restated FMO Loan Agreement

<PAGE>

                                      -80-

                                                                     SCHEDULE 9
                                                                     Page 2 of 2

      (6)   Operating Performance. Discussion of major factors affecting the
            year's financial results (sales by value and volume, operating and
            financial costs, profit margins, capacity utilization, capital
            expenditure, etc.).

      (7)   Financial Condition. Key financial ratios for previous year,
            compared with ratios covenanted in the Loan Agreement.]

                     Amended and Restated FMO Loan Agreement

<PAGE>

                                      -81-

                                                                     SCHEDULE 10
                                                                     Page 1 of 4

                        FORM OF ANNUAL MONITORING REPORT

                  (See Section 6.04 (d) of the Loan Agreement)

GENERAL INSTRUCTIONS: provide information in sufficient detail for evaluation of
environmental performance in relation to:

-     National and local laws and regulations in Mexico;

      -     World Bank/IFC environmental and social policies and guidelines:

            -     IFC Environmental, Health and Safety Guidelines for Railroad
                  Systems, November 20, 1995;

            -     IFC Policy on Environmental Assessment (OP 4.01), October
                  1998;

            -     IFC Policy on Pest Management (OP 4.09), November 1998;

            -     World Bank Policy on Involuntary Resettlement (OD 4.30), June
                  1990;

            -     World Bank Policy Note on Management of Cultural Property (OPN
                  11.03), September 1986; and

            -     IFC Policy Statement on Forced Labor and Harmful Child Labor,
                  March 1998.

-     Loan Agreement, (DATE);

-     Environmental Review Summary, February 8, 2000;

-     Herbicide Management Plan (Criterio Para El Uso De Herbicidas En La:
      Compania De Ferrocarriles Chiapas-Mayab, S. A. de C. V.), May 25, 2000;

-     Environmental Corrective Action Plan, Compania De Ferrocarriles
      Chiapas-Mayab, August 4, 2000;

Provide information in summary form and enclose environmental reports if
applicable. For any areas that do not meet agreed-upon performance levels,
describe actions and timetable for bringing the project into compliance.

Information reported previously need only be referenced.

Return the completed report to FMO by the date specified in the Loan Agreement
(April 1).

Please note that the term "environment" includes workplace and community health
and safety as well as social and cultural issues.

                     Amended and Restated FMO Loan Agreement

<PAGE>

                                      -82-

                                                                     SCHEDULE 10
                                                                     Page 2 of 4

PROJECT INFORMATION
Contact Person:
Telephone:
Fax:
E-mail:

Report period: from _______________ to ______________

SUMMARY OF CURRENT OPERATIONS - Describe company operations, level of business
activity, etc.

STATUS OF MODERNIZATION/EXPANSION OR NEW PROJECT IMPLEMENTATION - Provide a
description, status, and completion timetable for all environment-related items
in any modernization/ expansions or new projects.

CHANGES TO COMPANY - Describe significant changes in the company, such as
changes in capacity, product lines, business activities, customers served, or
acquisitions that may affect environmental performance.

CHANGES IN OPERATIONS - Describe any changes in day-to day operations, such as
use of different cleaning solvents or thinners, any changes in chemicals used or
storage methods, changes in solid/hazardous waste disposal, use of difference
service providers.

COMPLIANCE WITH ENVIRONMENTAL REQUIREMENTS - Is the company currently in
compliance with national and local laws and regulations and applicable World
Bank guidelines? (If no, please explain.)

ENVIRONMENTAL ISSUES - Highlight any new or emerging environmental issues, such
as pending regulations. Describe any changes affecting the environmental impacts
of the company's operations.

NEW INITIATIVES AIMED AT IMPROVING ENVIRONMENTAL PERFORMANCE - Describe any
planned initiatives. Examples are implementation of a formal environmental
management system (EMS), recycling initiatives, waste minimization and energy
efficiency measures.

                             CORRECTIVE ACTION PLAN

Provide a status report on each item in the CAP, including any difficulties
encountered or revised completion dates.

                     Amended and Restated FMO Loan Agreement

<PAGE>

                                      -83-

                                                                     SCHEDULE 10
                                                                     Page 3 of 4

HERBICIDE MANAGEMENT PLAN

Provide an update on the company's vegetation control system, including
procedures used (e.g., mechanical, chemical), herbicides used, changes in the
program.

WOOD CROSSTIE SOURCING

Provide a summary of crosstie purchases, including supplier, number of ties,
wood source.

Provide confirmation that FCCM has purchased crossties only from suppliers
approved by the Mexican government.

RELOCATION OF BUSINESSES OR PEOPLE

Provide a summary of right-of-way management activities, including encroachment
incidents. If new encroachments have occurred, explain how they were addressed
in compliance with Government of Mexico requirements. (Except for new
encroachments, any relocation of businesses or people residing on the
right-of-way must be conducted with the prior notification of FMO and in
accordance with World Bank policy 4.30 on Involuntary Resettlement.)

UNAUTHORIZED USE OF COMPANY FACILITIES

Provide an update of FCCM's programs to curb use of company facilities by
illegal immigrants.

COMPLIANCE TESTING

                                  AIR EMISSIONS

Provide summary of any testing by local authorities.

Provide summary of any testing by the company, including ambient air quality and
fugitive dust monitoring (include maps, figures, etc. as necessary for FMO's
review).

            LIQUID EFFLUENTS (INCLUDING SANITARY AND STORM EFFLUENTS)

Describe day-to-day operations of effluent handling and treatment facilities,
difficulties encountered, remedies, etc.

Provide summary of any testing by local authorities.

Provide summary of any testing by the company, including process effluent, storm
water, and sewage (include maps, figures, etc. as necessary for FMO's review).

                                      NOISE

Provide summary of any testing by local authorities.

                     Amended and Restated FMO Loan Agreement

<PAGE>

                                      -84-

                                                                     SCHEDULE 10
                                                                     Page 4 of 4

Provide summary of any testing by the company, including noise levels
experienced by outside receptors and occupational noise (include maps, figures,
etc. as necessary for FMO's review).

                     ACCIDENTS, FIRES, AND OTHER EMERGENCIES

Provide a summary of any accidents, derailments, fires, or explosions, or
significant accidental releases to the environment. Include response measures
taken and any improvements made to equipment or procedures as a result.

                      WORKER HEALTH AND OCCUPATIONAL SAFETY

Provide a summary of work-related accidents, discussion of trends, response
measures taken, and other actions taken to reduce accidents.

Provide a summary of training activities, including any new programs that have
been implemented.

Describe status of implementation of equipment safeguarding and provision of
personal protective equipment (PPE). Evaluate usage rate of PPE and identify any
needed improvements.

                               COMMUNITY RELATIONS

Describe any outreach or cooperative programs with the community.

Report any significant accidental releases, failure to meet permit limits,
lawsuits, community complaints, adverse media coverage, etc.

                     Amended and Restated FMO Loan Agreement

<PAGE>

                                      -85-

                                                                     SCHEDULE 11
                                                                     Page 1 of 1

                                  FORM OF NOTES

                    (See Section 3.16 of the Loan Agreement)

                                   [reserved]

                     Amended and Restated FMO Loan Agreement<PAGE>

                                                                    EXHIBIT 10.4

                                                                  EXECUTION COPY

================================================================================

                                                          INVESTMENT NUMBER 9902

                           SPONSOR GUARANTEE AGREEMENT

                                      AMONG

                             GENESEE & WYOMING, INC.

                                       AND

                   NEDERLANDSE FINANCIERINGS-MAATSCHAPPIJ VOOR
                            ONTWIKKELINGSLANDEN N.V.

                                       AND

                        INTERNATIONAL FINANCE CORPORATION

                           DATED AS OF MARCH 15, 2005

================================================================================

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
Article or
 Section                                    Item                                     Page No.
 -------                                    ----                                     --------
<S>                 <C>                                                              <C>
ARTICLE I.....................................................................           2

DEFINITIONS...................................................................           2

     Section 1.01.  Definitions...............................................           2
     Section 1.02.  Interpretation............................................           3

ARTICLE II....................................................................           3

GUARANTEE.....................................................................           3

     Section 2.01.  Guarantee.................................................           3
     Section 2.02.  Guarantee Continuing and Absolute.........................           4
     Section 2.03.  Waiver of Defenses........................................           4
     Section 2.04.  Application of Payments...................................           6
     Section 2.05.  Non-Competition; Bankruptcy...............................           6
     Section 2.06.  Proof as to Amounts Owing.................................           7
     Section 2.07.  Rights of the Senior Lenders..............................           7
     Section 2.08.  Indemnification...........................................           8
     Section 2.09.  Avoidance or Reduction....................................           8
     Section 2.10.  Taxes.....................................................           8
     Section 2.11.  Modification of Guarantee Obligations.....................           9

ARTICLE III...................................................................           9

REPRESENTATIONS, WARRANTIES AND COVENANTS.....................................           9

     Section 3.01.  Representations and Warranties............................           9
     Section 3.02.  Covenants.................................................          10
     Section 3.03.  Full Reliance.............................................          11
     Section 3.04.  Rights Not Prejudiced.....................................          11

ARTICLE IV....................................................................          12

MISCELLANEOUS.................................................................          12

     Section 4.01.  Taxes.....................................................          12
     Section 4.02.  Notices...................................................          12
     Section 4.03.  Applicable Law and Jurisdiction...........................          13
     Section 4.04.  Successors and Assigns....................................          16
     Section 4.05.  No Waiver; Remedies.......................................          16
     Section 4.06.  Amendments................................................          16
</TABLE>

<PAGE>

<TABLE>
<S>            <C>                                                                   <C>
Section 4.07.  English Language..............................................        16
Section 4.08.  Severability..................................................        16
Section 4.09.  Further Assurances............................................        17
Section 4.10.  Counterparts..................................................        17
</TABLE>

<PAGE>

                           SPONSOR GUARANTEE AGREEMENT

      SPONSOR GUARANTEE AGREEMENT dated as of March 15, 2005, by and among
GENESEE & WYOMING, INC., a corporation organized and existing under the laws of
Delaware, United States of America (the "Guarantor"), NEDERLANSE
FINANCIERINGS-MAATSCHAPPIJ   VOOR ONTWIKKELINGSLANDEN N.V., a limited liability
company organized under the laws of The Netherlands ("FMO") and INTERNATIONAL
FINANCE CORPORATION, an international organization established by its Articles
of Agreement among its member countries ("IFC" and, together with FMO, the
"Senior Lenders").

      WHEREAS:

      (A) Under the terms of a loan agreement (the "Original IFC Loan
Agreement"), dated December 5, 2000, by and among GW SERVICIOS, S.A. DE C.V., a
sociedad anonima de capital variable organized and existing under the laws of
the United Mexican States (the "Borrower"), COMPANIA DE FERROCARRILES
CHIAPAS-MAYAB, S.A. DE C.V., a sociedad anonima de capital variable organized
and existing under the laws of the United Mexican States (the "Project Company")
and IFC, IFC made (i) an A loan to the Borrower in the principal amount of ten
million five hundred thousand Dollars ($10,500,000), of which the principal
amount of seven million five hundred thousand Dollars ($7,500,000) is presently
outstanding (which amount shall be reduced to seven million two hundred eighty
thousand eight hundred thirty-six Dollars ($7,280,836) after prepayment of the
amount set forth in Section 5.01(b) of the IFC Loan Agreement (as defined
below)) and (ii) a B Loan to the Borrower in the principal amount of ten million
Dollars ($10,000,000), of which the principal amount of six million six hundred
sixty-six thousand six hundred sixty-eight Dollars ($6,666,668) is presently
outstanding (which amount shall be reduced to six million four hundred
fifty-seven thousand nine hundred forty-one Dollars ($6,457,941) after
prepayment of the amount set forth in Section 5.01(c) of the IFC Loan Agreement
(as defined below)) (collectively, the "IFC Loan"). The Borrower, the Project
Company and IFC are amending and restating the Original IFC Loan Agreement as of
the date hereof to, among other things, extend the term of the IFC Loan (as so
amended and restated, the "IFC Loan Agreement").

      (B) Under the terms of a loan agreement (the "Original FMO Loan Agreement"
and, together with the Original IFC Loan Agreement, the "Original Loan
Agreements"), dated December 5, 2000, by and among the Borrower, the Project
Company and FMO, FMO made a loan to the Borrower in the principal amount of
seven million Dollars ($7,000,000), of which the principal amount of four
million six hundred sixty-four thousand Dollars ($4,664,000) is currently

<PAGE>

                                       -1-

outstanding (which amount shall be reduced to four million five hundred
seventeen thousand eight hundred ninety and 91/100th Dollars ($4,517,890.91)
after prepayment of the amount set forth in Section 5.01(b) of the FMO Loan
Agreement (as defined below)) (the "FMO Loan"). The Borrower, the Project
Company and FMO are amending and restating the Original FMO Loan Agreement as of
the date hereof to, among other things, extend the term of the FMO Loan (as so
amended and restated, the "FMO Loan Agreement" and, together with the IFC Loan
Agreement, the "Loan Agreements").

      (C) The Guarantor is the majority shareholder of the Borrower and the
Project Company is owned ninety-six point five percent (96.5%) by the Borrower
and three point five percent (3.5%) by the Guarantor.

      (D) Under the terms of each of the Loan Agreements, the conditions to
effectiveness of the amendment and restatement of each of the Original Loan
Agreements contemplated thereby require the Guarantor to guarantee the
obligations of the Borrower and the Project Company thereunder.

      (E) The Guarantor, in consideration of the Senior Lenders entering into
the Loan Agreements, has agreed to guarantee the obligations of the Borrower and
the Project Company thereunder as more fully set forth herein.

      NOW, THEREFORE, the parties hereto hereby agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

      Section 1.01. Definitions. Wherever used in this Agreement, unless the
context otherwise requires, terms defined in the Loan Agreements shall have the
same meanings when used herein as given therein and the following terms shall
have the following meanings:

"Guaranteed Obligations"    all debts and liabilities of the Borrower and the
                            Project Company to IFC and FMO under the Loan
                            Agreements and the other Transaction Documents,
                            irrespective of whether such liabilities are present
                            or future, actual or contingent or owed
                            as principal, interest, fees, taxes, duties,
                            damages, indemnities, losses, costs, expenses or
                            otherwise; and

"Maximum Amount"            the meaning given in Section 2.01(e).

<PAGE>
                                      -2-

      Section 1.02. Interpretation. In this Agreement, unless the context
otherwise requires:

      (a) headings and underlinings are for convenience only and do not affect
the interpretation of this Agreement;

      (b) words importing the singular include the plural and vice versa;

      (c) an expression importing a natural person includes any company,
partnership, trust, joint venture, association, corporation or other body
corporate and any Authority;

      (d) a reference to a Section, Article, party, Exhibit, Annex or Schedule
is a reference to that Section or Article of, or that party, Exhibit, Annex or
Schedule to, this Agreement;

      (e) a reference to a document includes an amendment or supplement to, or
replacement or novation of, that document but disregarding any amendment,
supplement, replacement or novation made in breach of this Agreement; and

      (f) a reference to a party to any document includes that party's
successors and permitted assigns.

                                   ARTICLE II

                                    GUARANTEE

      Section 2.01. Guarantee; Limit. (a) The Guarantor hereby irrevocably,
absolutely and unconditionally guarantees, as primary obligor and not merely as
surety, the due and punctual payment of the outstanding Guaranteed Obligations,
whether at stated maturity, upon acceleration or otherwise, all as set forth in
the Loan Agreements and the other Transaction Documents.

      (b) If and whenever the Borrower or the Project Company shall default in
the payment of the Guaranteed Obligations or any part thereof, whether at stated
maturity, upon acceleration or otherwise, the Guarantor shall forthwith upon
first demand by either Senior Lender pay to such Senior Lender in Dollars the
outstanding Guaranteed Obligations.

<PAGE>
                                      -3-

      (c) The tender or payment of any currency other than Dollars (whether or
not by recovery under a judgment), shall not novate, discharge or satisfy the
obligation of the Guarantor to pay in Dollars except to the extent that the
relevant Senior Lender actually receives Dollars at the place or places
designated pursuant to its Loan Agreement. If a currency other than Dollars is
tendered or paid (or recovered under any judgment) and the amount such Senior
Lender receives falls short of the full amount of Dollars owed to it, then the
Guarantor shall continue to owe such Senior Lender, as a separate obligation,
the amount of the shortfall (regardless of any judgment for any other amounts
due under this Agreement).

      (d) This is a guarantee of payment and not of collection. The Guarantor
waives notice of acceptance of this Guarantee and notice of any liability to
which it may apply, and waives presentment, demand of payment, protest, notice
of dishonor or nonpayment of any such liability, suit or taking of other action
by IFC or FMO against, and any other notice to, any party liable thereon
(including the Borrower, the Project Company or any other guarantor).

      (e) Any other provision of this Agreement to the contrary notwithstanding,
the maximum aggregate amount payable by the Guarantor under this Agreement shall
be eight million nine hundred thousand Dollars ($8,900,000) (the "Maximum
Amount").

      Section 2.02. Guarantee Continuing and Absolute. (a) This Agreement shall
be a continuing guarantee and shall remain in full force and effect until,
subject to Section 2.09, the date on which the Guaranteed Obligations shall have
been fully paid in accordance with the provisions of the Loan Agreements and the
other Transaction Documents.

      (b) Subject to the provisions of subsection (a) of this Section 2.02, the
obligations of the Guarantor hereunder shall not be discharged except by
performance and then only to the extent of such performance.

      (c) This Agreement shall be an additional, separate and independent
obligation of the Guarantor. For the avoidance of doubt, the Guarantor
acknowledges that its obligations hereunder (i) are separate from its
obligations under the Financial Support Agreement (including under Article V
thereof) and (ii) shall not be affected by any provisions of the Financial
Support Agreement or any amounts paid by the Guarantor thereunder.

      Section 2.03. Waiver of Defenses. (a) The obligations of the Guarantor
under this guarantee shall not be subject to any prior notice to, demand upon or
action against, the Borrower, the Project Company or to any prior notice to the
Guarantor with regard to any default by the Borrower or the Project Company, and

<PAGE>
                                      -4-

shall not be discharged, released, affected or impaired by any act, omission,
circumstance (other than complete payment of the Guaranteed Obligations by the
Project Company or the Borrower or of the Maximum Amount by the Guarantor),
matter or thing which, but for this provision, would reduce, release or
prejudice any of the obligations of the Guarantor under this Agreement or which
might otherwise constitute a legal or equitable discharge or defense of a surety
or a guarantor, including the following:

            (i)   any extension of time, forbearance or concession given to the
                  Borrower, the Project Company or any other party, or any
                  increase, decrease, change in the manner, time or place of
                  payment or calculation or other alteration of the Guaranteed
                  Obligations or any part thereof;

            (ii)  any assertion of, or failure to assert, or delay in asserting,
                  or lack of diligence regarding, any right, power or remedy
                  against the Borrower, the Project Company or any other party
                  or in respect of any security for the IFC Loan or the FMO
                  Loan;

            (iii) any taking, holding, reviewing, exchanging, varying,
                  releasing, waiving or omitting to take, perfect or enforce any
                  rights, remedies or securities against or granted by the
                  Borrower, the Project Company or any other person;

            (iv)  any amendment, change, acceleration, renewal, modification,
                  waiver, surrender, compromise, settlement, release,
                  termination or amplification of the provisions of the Loan
                  Agreements, any other Transaction Document, or any other
                  agreement between or among any of the Borrower, the Project
                  Company, the Guarantor, FMO, IFC or any other party in
                  relation to the IFC Loan or the FMO Loan;

            (v)   any failure of the Borrower, the Project Company or the
                  Guarantor to comply with any requirement of any law,
                  regulation or order;

            (vi)  the dissolution, liquidation, winding-up, amalgamation,
                  merger, reorganization or other alteration of the legal status
                  or structure of the Borrower, the Project Company, the
                  Guarantor or any other person;

<PAGE>
                                      -5-

            (vii) any purported or actual assignment of the IFC Loan or the FMO
                  Loan by IFC or FMO, respectively, to any other party;

            (viii) any invalidity or unenforceability of, or any defect in or
                  omission from, the Loan Agreements, any other Transaction
                  Document or any other agreement relating to the IFC Loan or
                  the FMO Loan, or any of their respective provisions; or

            (ix)  any other circumstance howsoever caused or arising and whether
                  or not similar to any of the foregoing (other than payment in
                  full of the Guaranteed Obligations by the Borrower or the
                  Project Company or of the Maximum Amount by the Guarantor)
                  which might otherwise constitute a legal or equitable
                  discharge or defense of a surety or a guarantor.

      (b) The Guarantor further waives irrevocably and unconditionally any right
to which it may be entitled to have the assets of the Borrower, the Project
Company or any other guarantor first be used as payment of the Guaranteed
Obligations, prior to any amount being claimed from or paid by the Guarantor
hereunder.

      Section 2.04. Application of Payments. If the Guarantor shall at any time
make payment to a Senior Lender of an amount less than the full amount then due
and payable to such Senior Lender under this Agreement, such Senior Lender shall
have the right to allocate and apply such payment in any way or manner and for
such purpose or purposes as it in its sole discretion shall determine
notwithstanding any instruction that the Guarantor may give to the contrary.

      Section 2.05. Non-Competition; Bankruptcy. (a) If any monies shall have
become payable or shall have been paid by the Guarantor under this Agreement,
the Guarantor shall not, in respect of such monies, seek to enforce repayment or
to exercise any other rights or legal remedies of any kind which may accrue to
the Guarantor against the Borrower or the Project Company, whether by way of
subrogation or otherwise, in respect of the amount so payable or so paid or in
respect of any other monies for the time being due to the Guarantor from either
of them so long as any monies remain owing under the Loan Agreements or the
other Transaction Documents.

      (b) In the event of the liquidation or winding-up of the Borrower or the
Project Company, at any time after any monies shall have become payable or shall

<PAGE>
                                      -6-

have been paid under this Agreement, the Guarantor shall not prove in
competition with either Senior Lender in respect of any monies owing to the
Guarantor by the Borrower or the Project Company on any account whatsoever but
shall give the Senior Lenders the benefit of any such proof and of all monies to
be received in respect thereof until all monies now or hereafter owing under the
Loan Agreements and the other Transaction Documents shall have been fully paid.
If, notwithstanding the foregoing, the Guarantor shall (a) prior to a
liquidation or winding-up of the Borrower, at any time after any monies shall
have become payable or shall have been paid by the Guarantor under this
Agreement or (b) in a liquidation or winding-up of the Borrower or the Project
Company, at any time after monies shall have become payable or shall have been
paid by the Guarantor under this Agreement, receive any amounts in respect of
any such monies as aforesaid before all of the Guaranteed Obligations have been
fully paid, the Guarantor shall hold the same in trust for the Senior Lenders
and promptly remit the same as instructed by the Senior Lenders.

      Section 2.06. Proof as to Amounts Owing. A certificate by an officer of a
Senior Lender as to any amounts due and payable at any time by the Borrower
under such Senior Lender's Loan Agreement or any other Transaction Document
shall be binding upon the Guarantor and shall be conclusive evidence in any
legal proceedings with respect to this Agreement. The Guarantor hereby waives
all requirements as to diligence, presentment, demand of payment, protest or
notice of any kind with respect to the Loan Agreements and the other Transaction
Documents.

      Section 2.07. Rights of the Senior Lenders. (a) The rights and powers of
each Senior Lender hereunder are not contingent upon the pursuit by such Senior
Lender of any right or remedy against the Guarantor or against any other person
which may be or become liable in respect of any of the Guaranteed Obligations or
any guarantee therefor or right of offset with respect thereto or against any
security held in respect of the IFC Loan, the FMO Loan or any Transaction
Document.

      (b) Neither Senior Lender shall be liable for any failure to demand,
collect or realize upon all or any part of any security held by either Senior
Lender in respect of the IFC Loan, the FMO Loan or any Transaction Document or
for any delay in doing so and either Senior Lender may enforce this guarantee
prior to taking or without taking any action whatsoever under any of such
security or any Transaction Document.

      Section 2.08. Indemnification. As a separate, continuing and independent
obligation by way of indemnity, the Guarantor hereby agrees that if any of the
monies or liabilities which are intended to be the subject of the preceding

<PAGE>
                                      -7-

provisions of this Agreement shall not be recovered or recoverable from the
Guarantor for any reason whatsoever (including, without limitation, any
incapacity of the Borrower, the Project Company or the Guarantor or invalidity
or unenforceability of any provision of the Loan Agreements and the other
Transaction Documents and whether or not now existing or known to IFC, FMO, the
Borrower, the Project Company or the Guarantor) then the Guarantor shall be
liable, on demand by each Senior Lender, to indemnify such Senior Lender against
all losses, claims or costs directly suffered or incurred by it as a consequence
of such non-recovery from the Guarantor, provided that the maximum amount
recoverable by the Senior Lenders from the Guarantor under the indemnity given
in this Section 2.08 shall not exceed the amount which would have been
recoverable by the Senior Lenders from the Guarantor had this Agreement been
enforceable as a guarantee against the Guarantor. The right to make such a
demand shall not be subject to any requirement of prior notice to, demand upon
or action against the Borrower or the Guarantor.

      Section 2.09. Avoidance or Reduction. Any release or discharge of this
Agreement shall be conditional upon no security or payment to either Senior
Lender by the Guarantor or any other person being avoided or reduced by virtue
of any provisions or enactments relating to bankruptcy, insolvency or
liquidation and, in the event of such security or payment being so avoided or
reduced, such Senior Lender shall be entitled to recover from the Guarantor the
value or amount of such security or payment as if such release or discharge had
not occurred.

      Section 2.10. Taxes. (a) The Guarantor shall pay or cause to be paid all
present and future taxes, duties, fees and other charges of whatsoever nature,
if any, now or in the future levied or imposed by the United States of America,
the United Mexican States, or by any Authority of the foregoing, or by any
organization of which either of the foregoing is a member or any jurisdictions
through or out of which a payment is made, on or in connection with the payment
of any and all amounts due under this Guarantee Agreement.

      (b) All payments due under this Guarantee Agreement shall be made without
deduction for or on account of any such taxes, duties, fees or other charges.

      (c) If the Guarantor is prevented by operation of law or otherwise from
making or causing to be made such payments without deduction, the amounts due
under this Guarantee Agreement shall be increased, and the Guarantor shall pay
such amount as may be necessary so that each Senior Lender receives the full
amount it would have received (taking into account any such taxes, duties, fees
or other charges payable on amounts payable by the Guarantor under this
subsection) had such payments been made without such deduction.

<PAGE>
                                      -8-

      (d) If subsection (c) above applies and either Senior Lender so requires,
the Guarantor shall deliver to such Senior Lender official tax receipts
evidencing payment (or certified copies of them) within thirty (30) days of the
date of payment.

      Section 2.11. Modification of Guaranteed Obligations. The obligations of
the Guarantor under this Agreement shall extend to any change in the Guaranteed
Obligations as a result of:

      (i) any alteration, variation, amendment, supplement, renewal or
replacement of either of the Loan Agreements or any other Transaction Document;
or

      (ii) the occurrence of any other act or event which would have the effect
of changing the Guaranteed Obligations;

regardless of whether the Guarantor is aware of, consented to or is given notice
of any such alteration, variation, amendment, supplement, renewal or replacement
or of any such other act or event.

                                   ARTICLE III

                    REPRESENTATIONS, WARRANTIES AND COVENANTS

      Section 3.01. Representations and Warranties. The Guarantor hereby
represents and warrants to FMO and IFC that:

      (a) it is a corporation duly incorporated, validly existing and in good
standing under the laws of the State of Delaware, and it has the corporate
power, and all necessary corporate and other (including governmental) action has
been taken and all consents, licenses, approvals and authorizations have been
obtained to authorize it, to conduct its business as presently conducted and to
execute and deliver this Agreement and to perform fully and completely all of
its obligations and liabilities hereunder;

      (b) the execution, delivery and performance by it of this Agreement will
not violate or conflict with, or constitute a default or require any consent
under, any provision of any existing law or regulation or order or decree of any
court or authority or the certificate of incorporation, by-laws, or other
organizational documents of the Guarantor or any material contract, undertaking

<PAGE>
                                      -9-

or agreement to which the Guarantor is a party or which purports to be binding
upon the Guarantor or any of its property or assets and will not result in the
imposition or creation of any security interest in, or lien, charge or
encumbrance on or with respect to, all or any part thereof pursuant to the
provisions of any such contract, undertaking or agreement; and

      (c) this Agreement has been duly authorized, executed and delivered by it
and constitutes its valid and legally binding obligation, enforceable in
accordance with its terms, subject to bankruptcy, insolvency, reorganization,
moratorium or similar laws affecting the enforcement of creditors' rights
generally and by general equitable principles.

      Section 3.02. Covenants. Unless each Senior Lender otherwise agrees, the
Guarantor shall:

      (a) maintain its corporate existence in good standing under the
jurisdiction of its incorporation;

      (b) maintain all assets and properties material to its business in good
working order;

      (c) not make (and shall not authorize or permit any Affiliate or any other
Person acting on its behalf to make) any Prohibited Payment. The Guarantor
further covenants that should any of the Senior Lenders notify the Guarantor of
its concerns that there has been a Prohibited Payment, it shall cooperate in
good faith with such Senior Lender and its representatives in determining
whether such a violation has occurred, and shall respond promptly and in
reasonable detail to any notice from such Senior Lender, and shall furnish
documentary support for such response upon such Senior Lender's reasonable
request;

      (d) as soon as available but in any event within one hundred and twenty
(120) days after June 30 and December 31 in each Financial Year, deliver to each
Senior Lender:

            (i)   two (2) copies of its complete financial statements for such
                  period prepared on a Consolidated Basis in accordance with the
                  Accounting Principles, which (A) in the case of the financial
                  statements delivered in respect of June 30, shall be unaudited
                  and cover the six-month period ending on June 30 and (B) in
                  the case of the financial statements delivered in respect of
                  December 31, shall be audited and cover the Financial Year
                  ending on such date; and

<PAGE>
                                      -10-

            (ii)  a statement of the outstanding amount (measured as of the
                  relevant June 30 or December 31) of all liabilities of any
                  Person (other than itself) which the Guarantor has guaranteed
                  or otherwise directly or indirectly obligated itself to pay;

provided, that such financial or other statements need not be delivered if and
to the extent that corresponding financial statements have been filed with the
United States Securities and Exchange Commission and are publicly available; and

      (e) notify each Senior Lender if it becomes aware of any fact or
circumstance which constitutes or might constitute an Event of Default or
Potential Event of Default or which might cause a Material Adverse Effect.

      Section 3.03. Full Reliance. The Guarantor acknowledges that it has made
the representations referred to in Section 3.01 with the intention of persuading
each Senior Lender to enter into this Agreement and its respective Loan
Agreement and that each Senior Lender has entered into this Agreement and its
respective Loan Agreement on the basis of, and in full reliance on, each of such
representations. The Guarantor further represents and warrants to each Senior
Lender that each of such representations is true and correct in all material
respects as of the date of this Agreement and that none of them omits any fact,
the omission of which makes any of such representations materially misleading.

      Section 3.04. Rights Not Prejudiced. The rights and remedies of each
Senior Lender in relation to any misrepresentation or breach of warranty on the
part of the Guarantor shall not be prejudiced by any investigation by or on
behalf of either Senior Lender into the affairs of the Borrower, the Project
Company or the Guarantor, by the execution of this Agreement or by any act or
thing which may be done by or on behalf of either Senior Lender in connection
with this Agreement and which might, apart from this Section, prejudice such
rights or remedies.

<PAGE>
                                      -11-

                                   ARTICLE IV

                                  MISCELLANEOUS

      Section 4.01. Taxes. The Guarantor shall, upon notice from either Senior
Lender, pay all taxes (including stamp taxes), duties, fees or other charges
payable on or in connection with the execution, issue, delivery, registration or
notarization of this Agreement and shall reimburse each Senior Lender or its
assigns for any such taxes, duties, fees or other charges paid by such Senior
Lender or its assigns thereon.

      Section 4.02. Notices. Any notice or request required or permitted to be
given hereunder shall be in writing. Subject to Section 4.03(f) (Applicable Law
and Jurisdiction), such notice or request shall be deemed to have been duly
given or made when it shall be delivered by hand, airmail, facsimile or telex
(with a hard copy to follow in the case of notices delivered by facsimile or
telex) to the party to which it is required or permitted to be given or made at
such party's address specified below or at such other address as such party
shall have designated by notice to the party giving such notice or making such
request.

      For the Guarantor:

            Genesee & Wyoming, Inc.
            66 Field Point Road
            Greenwich, CT 06830

            Attention:

            Alternative address for communications by facsimile:

                  (203) 661-4106

<PAGE>
                                      -12-

      For IFC:

            International Finance Corporation
            2121 Pennsylvania Avenue, N.W.
            Washington, D.C. 20433
            United States of America

            Attention: Director, Infrastructure Department

            Alternative address for communications by facsimile:

                  (202) 974-4310

      For FMO:

            Nederlandse Financierings-Maatschappij voor
            Ontwikkelingslanden N.V.
            Anna van Saksenlaan 71
            2593 HW The Hague
            The Netherlands

            Attention:  Latin America and Caribbean Department

            Alternative address for communications by facsimile:

            Facsimile:  (31) 70 314-9757

      Section 4.03. Applicable Law and Jurisdiction. (a) This Agreement is
governed by, and shall be construed in accordance with, the laws of the State of
New York, United States of America.

      (b) For the exclusive benefit of the Senior Lenders, the Guarantor
irrevocably agrees that any legal action, suit or proceeding arising out of or
relating to this Agreement may be brought in any court of the United States of
America located in the Southern District of New York or in the courts of the
State of New York located in the Borough of Manhattan. By the execution of this
Agreement, the Guarantor irrevocably submits to the jurisdiction of any such
court in any such action, suit or proceeding. Final judgment against the
Guarantor in any such action, suit or proceeding shall be conclusive and may be
enforced in any other jurisdiction, including Mexico, by suit on the judgment, a
certified or exemplified copy of which shall be conclusive evidence of the
judgment, or in any other manner provided by law.

<PAGE>
                                      -13-

      (c) Nothing in this Agreement shall affect the right of either Senior
Lender to commence legal proceedings or otherwise sue the Guarantor in Mexico or
any other appropriate jurisdiction, or concurrently in more than one
jurisdiction, or to serve process, pleadings and other legal papers upon the
Guarantor in any manner authorized by the laws of any such jurisdiction.

      (d) The Guarantor hereby irrevocably designates, appoints and empowers CT
Corporation System, located at 111 Eighth Avenue, 13th Floor, New York, New York
10011, United States of America as its authorized agent solely to receive for
and on its behalf service of any summons, complaint or other legal process in
any action, suit or proceeding either Senior Lender may bring in the State of
New York in respect of this Agreement.

      (e) As long as this Agreement remains in force, the Guarantor shall
maintain a duly appointed and authorized agent to receive for and on its behalf
service of any summons, complaint or other legal process in any action, suit or
proceeding either Senior Lender may bring in New York, New York, United States
of America, with respect to this Agreement. The Guarantor shall keep each Senior
Lender advised of the identity and location of such agent.

      (f) The Guarantor also irrevocably consents, if for any reason its
authorized agent for service of process of summons, complaint and other legal
process in any action, suit or proceeding is not present in New York, New York,
to the service of such papers being made out of the courts of the United States
of America located in the Southern District of New York and the courts of the
State of New York located in the Borough of Manhattan by mailing copies of the
papers by registered United States air mail, postage prepaid, to the Guarantor,
at its address specified pursuant to Section 4.02. In such a case, the relevant
Senior Lender shall also send by facsimile, or have sent by facsimile, a copy of
the papers to the Guarantor.

      (g) Service in the manner provided in subsections (d), (e) and (f) of this
Section 4.03 in any action, suit or proceeding will be deemed personal service,
will be accepted by the Guarantor as such and will be valid and binding upon the
Guarantor for all purposes of any such action, suit or proceeding.

      (h) The Guarantor irrevocably waives to the fullest extent permitted by
applicable law:

            (i)   any objection which it may have now or in the future to the
                  laying of the venue of any action, suit or proceeding in any
                  court referred to in this Section;

<PAGE>
                                      -14-

            (ii)  any claim that any such action, suit or proceeding has been
                  brought in an inconvenient forum;

            (iii) its right of removal of any matter commenced by a Senior
                  Lender in the courts of the State of New York to any court of
                  the United States of America; and

            (iv)  any and all rights to demand a trial by jury in any such
                  action, suit or proceeding brought against such party by a
                  Senior Lender.

      (i) To the extent that the Guarantor may be entitled in any jurisdiction
to claim for itself or its assets immunity in respect of its obligations under
this Agreement from any suit, execution, attachment (whether provisional or
final, in aid of execution, before judgment or otherwise) or other legal process
or to the extent that in any jurisdiction that immunity (whether or not claimed)
may be attributed to it or its assets, the Guarantor irrevocably agrees not to
claim and irrevocably waives such immunity to the fullest extent permitted now
or in the future by the laws of such jurisdiction.

      (j) The Guarantor hereby acknowledges that IFC shall be entitled under
applicable law, including the provisions of the International Organizations
Immunities Act, to immunity from a trial by jury in any action, suit or
proceeding arising out of or relating to this Agreement or the transactions
contemplated hereby brought against IFC in any court of the United States of
America. The Guarantor hereby waives any and all rights to demand a trial by
jury in any action, suit or proceeding arising out of or relating to this
Agreement or the transactions contemplated by this Agreement, brought against
either Senior Lender in any forum in which it is not entitled to immunity from a
trial by jury.

      (k) To the extent that the Guarantor may, in any action, suit or
proceeding brought in any of the courts referred to in subsection (b) of this
Section 4.03 or elsewhere arising out of or in connection with this Agreement,
be entitled to the benefit of any provision of law requiring either Senior
Lender in such action, suit or proceeding to post security for the costs of the
Guarantor, or to post a bond or to take similar action, the Guarantor hereby
irrevocably waives such benefit, in each case to the fullest extent now or in
the future permitted under the laws of the jurisdiction in which such court is
located.

      Section 4.04. Successors and Assigns. This Agreement shall bind and inure
to the benefit of the respective successors and assigns of the parties hereto,
provided, however, that the Guarantor may not assign or otherwise transfer all
or

<PAGE>
                                      -15-

any part of its rights or obligations under this Agreement without the prior
written consent of each Senior Lender. The benefit of this Agreement may be
freely and unconditionally assigned, transferred or otherwise disposed of, in
whole or in part, by either Senior Lender to any other person, corporate or
otherwise; provided, that any such assignment by a Senior Lender shall be made
in conjunction with an assignment by such Senior Lender of its rights under the
Loan Agreement. Any purported assignment or delegation in violation of this
Section shall be void.

      Section 4.05. No Waiver; Remedies. No failure on the part of either Senior
Lender to exercise, and no delay in exercising, any right hereunder shall
operate as a waiver thereof, nor shall any single or partial exercise of any
right hereunder (including, without limitation, any investigation by or on
behalf of either Senior Lender into the affairs of the Guarantor, the Borrower,
the Project Company or any other person), or the execution or the performance of
this Agreement or any other document or agreement relating to this Agreement, or
any other act or thing which may be done by or on behalf of either Senior Lender
in connection therewith, preclude any other or further exercise thereof or the
exercise of any other right. The remedies herein provided are cumulative and not
exclusive of any remedies provided by law.

      Section 4.06. Amendments. No amendment or waiver of any provision of this
Agreement, nor any consent to departure by the Guarantor therefrom, shall in any
event be effective unless the same shall be in writing and signed by the
parties, and then such waiver or consent shall be effective only in the specific
instance and for the specific purpose for which given.

      Section 4.07. English Language. All documents to be furnished or
communications to be given or made under this Agreement shall be in the English
language or, if in another language, shall be accompanied by a translation into
English certified by a representative of the Guarantor, which translation shall
be the governing version among the parties hereto.

      Section 4.08. Severability. Any obligation of the Guarantor under this
Agreement which is void, illegal or unenforceable in any jurisdiction is
ineffective only in that jurisdiction and does not affect in any way the
validity, legality or enforceability of that obligation in any other
jurisdiction or of the remaining obligations of the Guarantor hereunder.

      Section 4.09. Further Assurances. The Guarantor agrees that it shall do
all such further acts, deeds and things, and execute and deliver to each Senior
Lender such additional agreements and instruments, in each case as may be
necessary or advisable in order to give effect to the purposes of this
Agreement.

<PAGE>
                                      -16-

      Section 4.10. Counterparts. This Agreement may be executed in several
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same agreement.

                            -signature page follows-

<PAGE>
                                      -17-

      IN WITNESS WHEREOF, the parties hereto, acting through their duly
authorized representatives, have caused this Agreement to be signed in their
respective names and to be delivered as of the day and year first above written.

                                                GENESEE & WYOMING, INC

                                                By:    ___________________
                                                Title: ___________________

                                                NEDERLANSE FINANCIERINGS-
                                                MAATSCHAPPIJ VOOR
                                                ONTWIKKELINGSLANDEN N.V.

                                                By:    ___________________
                                                Title: ___________________

                                               INTERNATIONAL FINANCE CORPORATION

                                                By:    ___________________
                                                Title: ___________________

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