Document:

exv4w11

 

EXHIBIT 4.11

EXECUTION COPY

FIRST SUPPLEMENTAL INDENTURE

          This First Supplemental Indenture (this “Supplemental Indenture”),
dated as of May 21, 2002, among TFM, S.A. de C.V., a sociedad anonima de capital
variable, organized under the laws of the United Mexican States, as Issuer (the
“Company”), Grupo Transportacion Ferroviaria Mexicana, S.A. de C.V., a sociedad
anonima de capital variable, organized under the laws of the United Mexican
States, as Guarantor (the “Guarantor”), The Bank of New York, a New York banking
corporation, as trustee under the indenture referred to below (in such capacity,
the “Trustee”), and Deutsche Bank Luxembourg S.A., as the Paying Agent (the
“Paying Agent”).

W I T N E S S E T H:

          WHEREAS, the Company and the Guarantor have heretofore executed and
delivered to the Trustee an indenture dated as of June 16, 1997 (the
“Indenture”), providing for the issuance by the Company and the guarantee by the
Guarantor of an aggregate principal amount of up to $150,000,000 of 10.25%
Senior Notes due 2007 (the “Notes”);

          WHEREAS, the Company is contemplating the acquisition (the
“Acquisition”) of the equity interest held by the government of Mexico in the
Guarantor (the “Call Option Shares”) through Ferrocarriles Nacionales de Mexico
(“FNM”) and Nacional Financiera, S.N.C., as trustee (“Nafin”);

          WHEREAS, Section 9.02 of the Indenture provides that, with the written
consent of the Holders of a majority in aggregate principal amount of the
outstanding Notes (the “Requisite Consents”), the Company and the Guarantor,
when authorized by their respective Boards of Directors (as evidenced by a Board
Resolution), and the Trustee may amend the Indenture, and the Holders of a
majority in aggregate principal amount of the outstanding Notes (the “Requisite
Holders”) by written notice to the Trustee may waive future compliance by the
Company with certain provisions of the Indenture;

          WHEREAS, in order to permit the Company to consummate the Acquisition,
the Company has completed a consent solicitation (the “Consent Solicitation”)
whereby the Company has obtained the Requisite Consents to amend, and a waiver
by the Requisite Holders (the “Waiver”) of, Section 4.04 of the Indenture,
entitled “Limitation on Restricted Payments” (this amendment, together with the
Waiver and certain additional amendments to Sections 4.03, 4.04 and 4.09 of the
Indenture which are being made hereby, the “Amendments”), which limits the
amounts of restricted payments the Company is permitted to make based on the
Company’s cumulative adjusted consolidated net income beginning on July 1, 1997;

          WHEREAS, in connection with the Consent Solicitation, Holders that
delivered a valid consent on a timely basis (the “Consenting Holders”) are
entitled to receive a cash fee (the “Cash Fee”) with respect to the Notes in
respect of which they have consented if the conditions to the Consent
Solicitation are met;

          WHEREAS, the Company, the Guarantor, the Trustee and the Paying Agent
are entering into this Supplemental Indenture in order to set forth the
Amendments;

1

 

          WHEREAS, this Supplemental Indenture has been duly authorized by all
necessary corporate action on the part of the Company and the Guarantor; and

          NOW, THEREFORE, the Company, the Guarantor, the Trustee and the Paying
Agent mutually covenant and agree for the equal and ratable benefit
of all the Holders of the Notes as follows:

ARTICLE I.

AMENDMENT AND WAIVER OF THE INDENTURE

          SECTION 1.1 Addition to Section 4.04 of the Indenture. The Company, the
Guarantor, the Trustee and the Paying Agent hereby agree to amend Section 4.04
of the Indenture, and Section 4.04 of the Indenture is hereby amended by adding
the following paragraph to the end of such section:

     Notwithstanding anything to the contrary in the foregoing provisions of
this Section 4.04, (i) the foregoing provisions shall not apply to and
shall not prohibit the purchase by the Company of Capital Stock of the
Guarantor from the government of Mexico, through FNM and Nafin, or their
successors or assigns, and any subsequent transactions between the Company
and the Guarantor in respect of the cancellation, conversion or exchange of
the Capital Stock of the Guarantor thereby purchased by the Company and
(ii) neither such purchase by the Company of Capital Stock of the Guarantor
or any such subsequent transactions, nor the consideration paid by the
Company in connection with such purchase or such subsequent transactions
(such purchase and any subsequent transactions, the “Acquisition
Transactions”), shall be included in calculating whether the conditions of
clause (C) of the first paragraph of this Section 4.04 have been met with
respect to any subsequent Restricted Payments, provided that the Company
shall not be entitled to consummate any Acquisition Transactions under the
provisions of this paragraph prior to having paid the Cash Fee to
consenting Holders, all no later than July 31, 2002 in accordance with the
terms and conditions of the Consent Solicitation.

          SECTION 1.2 Waiver of Compliance with Section 4.04 of the Indenture.
Compliance by the Company with Section 4.04 of the Indenture is hereby waived
with respect to any Acquisition Transactions, subject to satisfaction of the
provisions of Section 1.1 of this Supplemental Indenture.

          SECTION 1.3 Amendment of Section 4.03(a) of the Indenture. The Company,
the Guarantor, the Trustee and the Paying Agent hereby agree to amend Section
4.03(a) of the Indenture, and Section 4.03(a) of the Indenture is hereby
amended, by:

          (A) replacing the first paragraph of such section in its entirety with
the following paragraph:

(a) The Guarantor will not, and will not permit any of its
Restricted Subsidiaries to, Incur any Indebtedness (other than
the Securities, the Securities Guarantees, the Senior Notes
(and the guarantee thereof) and Indebtedness existing on the
Closing Date and any Indebtedness incurred before the
effectiveness of the First

2

 

Supplemental Indenture hereto (including, without limitation,
under our U.S. Commercial Paper Program) in accordance with
the provisions of this Indenture as of the time of
Incurrence); provided that the Guarantor and the Company may
Incur Indebtedness if, after giving effect to the Incurrence
of such Indebtedness and the receipt and application of the
proceeds therefrom, the Interest Coverage Ratio would be
greater than (i) if the Indebtedness is Incurred during the
period beginning on the Closing Date and ending on the third
anniversary thereof, 2.25:1; (ii) if the Indebtedness is
Incurred during the period beginning after the third
anniversary of the Closing Date and the Cash Fee has not been
paid, 2.5:1; (iii) if the Indebtedness is Incurred during the
period beginning after the third anniversary of the Closing
Date and ending on the date upon which the Cash Fee is paid,
2.5:1; (iv) if the Indebtedness is Incurred during the period
beginning after the date upon which the Cash Fee is paid and
ending on October 31, 2003, 3.0:1; and (v) if the Indebtedness
is Incurred thereafter, 2.5:1.

          (B) replacing clause (i) thereof in its entirety with the following
text:

(i) Indebtedness outstanding at any time in an aggregate
principal amount not to exceed $50.0 million that is Incurred
solely for the purpose of financing the cost of improvements
or construction related to the properties of Mexrail, Inc. and
the Texas-Mexican Railway Company, the net proceeds of which
are applied to finance the cost of such improvements or
construction; and

          (c) eliminating the cross-reference to clause (i) found in clause (iii)
of Section 4.03(a).

          SECTION 1.4 Amendment of Section 4.04(C) of the Indenture. The Company,
the Guarantor, the Trustee and the Paying Agent hereby agree to amend Section
4.04 of the Indenture, and Section 4.04 of the Indenture is hereby amended, with
effect retroactive to April 1, 2002, by replacing clause C thereof in its
entirety with the following text:

          (C) the aggregate amount of all Restricted Payments (the amount, if
other than in cash, to be determined in good faith by the Board of Directors of
the Guarantor, whose determination shall be conclusive and evidenced by a Board
Resolution) made on or after April 1, 2002 shall exceed the sum of (1) 50% of
the aggregate amount of the Adjusted Consolidated Net Income (or, if the
Adjusted Consolidated Net Income is a loss, minus 100% of the amount of such
loss) (determined by excluding income resulting from transfers of assets by the
Guarantor or a Restricted Subsidiary to an Unrestricted Subsidiary) accrued on a
cumulative basis during the period (taken as one accounting period) beginning on
April 1, 2002 and ending on the last day of the last fiscal quarter preceding
the Transaction Date for which reports have been filed or provided to the
Trustee pursuant to Section 4.18 plus (2) the aggregate Net Cash Proceeds
received by the Company or the Guarantor on or after April 1, 2002 from a
capital contribution or the issuance and sale (other than pursuant to the
Capital Contribution Agreement) permitted by this Indenture of Capital Stock of
the Company or the Guarantor (other than Disqualified Stock) to a Person who is
not a Subsidiary of the Company or the Guarantor, including an issuance or sale
permitted by this Indenture of Indebtedness of the Company or the Guarantor for
cash subsequent to the Threshold Conversion Date upon the conversion of such
Indebtedness into Capital Stock (other than Disqualified Stock) of the Company
or the Guarantor, or from the issuance to a Person who is not a Subsidiary of
the Company or the Guarantor of any options,

3

 

warrants or other rights to acquire Capital Stock of the Company or the
Guarantor (in each case, exclusive of any Disqualified Stock or any options,
warrants or other rights that are redeemable at the option of the holder, or are
required to be redeemed, prior to the Stated Maturity of the Securities) plus
(3) an amount equal to the net reduction in Investments (other than reductions
in Permitted Investments) in any Person on or after April 1, 2002 resulting from
payments of interest on Indebtedness, dividends, repayments of loans or
advances, or other transfers of assets, in each case to the Guarantor or any
Restricted Subsidiary or from the Net Cash Proceeds from the sale of any such
Investment (except, in each case, to the extent any such payment or proceeds are
included in the calculation of Adjusted Consolidated Net Income), or from
redesignations of Unrestricted Subsidiaries as Restricted Subsidiaries (valued
in each case as provided in the definition of “Investments”), not to exceed, in
each case, the amount of Investments previously made by the Company or any
Restricted Subsidiary in such Person or Unrestricted Subsidiary.

          SECTION 1.5 Amendment of Section 1.01 of the Indenture. The Company,
the Guarantor, the Trustee and the Paying Agent hereby agree to amend Section
1.01 of the Indenture by adding the following definitions to Section 1.01 in the
appropriate alphabetical order.

          “Acquisition Transactions” has the meaning provided in Section 4.04.

          “Cash Fee” means the cash fee offered in connection with the Consent
Solicitation of $30.00 for each $1,000 principal amount of Notes in
respect of which Holders delivered a valid and unrevoked consent.

          “U.S. Commercial Paper Program” means the Company’s $290.0 million
Letter of Credit Backed U.S. Commercial Paper Program, established pursuant to a
Credit Agreement, dated as of September 19, 2000, among the Company, Chase
Securities Inc. as lead arranger and book manager, Bank of America Securities
LLC and Westdeutsche Landesbank Girozentrale, S.A., New York Branch, as
co-documentation agents, co-syndication agents and arrangers, The Chase
Manhattan Bank as administrative agent and the several banks parties thereto, as
amended by the Amendment and Joinder Agreement dated as of December 5, 2000,
increasing the amount from $290.0 million to $310.0 million, and the Second
Amendment dated as of September 25, 2001, together with all other agreements,
instruments and documents executed or delivered pursuant thereto, in each case
as such agreements may be amended (including any amendment and restatement
thereof), supplemented, replaced or otherwise modified from time to time,
including any agreement extending the maturity of, refinancing, replacing or
otherwise restructuring all or any portion of the Indebtedness under such
agreement or any successor or replacement agreement and whether by the same or
any other agent, lender or group of lenders.

          SECTION 1.6 Amendment of Section 4.09 of the Indenture. The Company,
the Guarantor, the Trustee and the Paying Agent hereby agree to amend Section
4.09 of the Indenture, and Section 4.09 of the Indenture is hereby amended by
replacing the text after the last semicolon at the end of such section with the
following text:

4

 

     “(vii) Liens securing Indebtedness which is permitted to be incurred under
clause (i) of the second paragraph of Section 4.03; or (viii) Permitted Liens.”

ARTICLE II.

MISCELLANEOUS

          SECTION 2.1 Effect of Supplemental Indenture. Upon the execution and
delivery of this Supplemental Indenture by the Company, the Guarantor, the
Trustee and the Paying Agent, the Indenture shall be supplemented in accordance
herewith, and this Supplemental Indenture shall form a part of the Indenture for
all purposes, and every Holder of Notes heretofore or hereafter authenticated
and delivered under the Indenture shall be bound thereby.

          Notwithstanding the foregoing, the Amendments set forth herein will
have no effect, and this First Supplemental Indenture shall be null and void, if
the Cash Fee is not paid to consenting Holders on or before July 31, 2002 in
accordance with the terms and conditions of the Consent Solicitation.

          SECTION 2.2 Indenture Remains in Full Force and Effect. Except as
expressly provided herein, all provisions in the Indenture shall remain in full
force and effect. The amendments and waiver provided for herein are limited to
the specific sections of the Indenture specified herein and shall not constitute
an amendment of any other provisions of the Indenture.

          SECTION 2.3 Indenture and Supplemental Indenture Construed Together.
This Supplemental Indenture is an indenture supplemental to and in
implementation of the Indenture, and the Indenture and Supplemental Indenture
shall henceforth be read and construed together.

          SECTION 2.4 Conflict with Trust Indenture Act. If any provision of this
Supplemental Indenture limits, qualifies or conflicts with any provision of the
Trust Indenture Act that is required under such Act to be part of and govern any
provision of this Supplemental Indenture, the provision of such Act shall
control. If any provision of this Supplemental Indenture modifies or excludes a
provision of the Trust Indenture Act that may be so modified or excluded, the
provision of such Act shall be deemed to apply to the Indenture as so modified
or to be excluded by this Supplemental Indenture, as the case may be.

          SECTION 2.5 Severability Clause. In case any provision of this
Supplemental Indenture shall be invalid, illegal or unenforceable, the validity,
legality and enforceability of the remaining provisions shall not in any way be
affected or impaired thereby.

          SECTION 2.6 Terms Defined in the Indenture. All capitalized terms not
otherwise defined herein shall have the meanings ascribed to them in
the Indenture.

          SECTION 2.7 Benefits of Supplemental Indenture. Nothing in this
Supplemental Indenture, the Indenture or the Notes, express or implied, shall
give to any Person, other than the parties hereto and thereto and their
successors hereunder or thereunder and the Holders of Notes, any benefit of any
legal or equitable right, remedy or claim under the Indenture, this Supplemental
Indenture or the Notes.

5

 

          SECTION 2.8 Successors and Assigns. All covenants and agreements in
this Supplemental lndenture by the Company and the Guarantor shall bind their
successors and assigns, whether so expressed or not.

          SECTION 2.9 Governing Law. This Supplemental Indenture shall be
governed by and construed in accordance with the laws of the State of
New York,
without giving effect to the conflicts of law principles thereof.

          SECTION 2.10 Effect of Headings. The Article and Section headings
herein are for convenience only and shall not affect the construction hereof.

          SECTION 2.11 Counterparts. This Supplemental Indenture may be executed
in counterparts, each of which, when so executed, shall be deemed to be an
original, but all such counterparts shall together constitute but one and the
same instrument.

          SECTION 2.12 Trustee Not Responsible for Recitals. The Trustee shall
not be responsible in any manner whatsoever for or in respect of the validity or
sufficiency of this Supplemental Indenture or for or in respect of the recitals
of fact contained herein, all of which recitals are made solely by the Company.

***

[SIGNATURE PAGE TO IMMEDIATELY FOLLOW]

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          IN WITNESS WHEREOF, the parties hereto have caused this First
Supplemental Indenture to be duly executed as of the date first stated above.

	 	 	 	 	 
	 	 	TFM, S.A. DE C.V.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Leon Ortiz / Jacinto Marina
	 

	 	Name:
	 	Leon Ortiz / Jacinto Marina
	 

	 	Title:
	 	Finance Director / Acting CFO
	 
	 	 	 	 
	 	 	GRUPO TRANSPORTACION

FERROVIARIA MEXICANA, S.A. DE C.V.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Leon Ortiz / Jacinto Marina
	 

	 	Name:
	 	Leon Ortiz / Jacinto Marina
	 

	 	Title:
	 	Finance Director / Acting CFO
	 
	 	 	 	 
	 	 	THE BANK OF NEW YORK, AS TRUSTEE
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Miguel Barrios
	 

	 	Name:
	 	Miguel Barrios
	 

	 	Title:
	 	Assistant Vice President
	 
	 	 	 	 
	 	 	DEUTSCHE BANK LUXEMBOURG S.A.,

AS PAYING AGENT
	 
	 	 	 	 
	 

	 	By:
	 	/s/ C.A. Morris / K. Warwicker
	 

	 	Name:
	 	C.A. Morris / K. Warwicker
	 

	 	Title:
	 	Attorney / Attorney

7exv4w12

 

EXHIBIT 4.12

EXECUTION COPY

 

TFM, S.A. de C.V.,

AS ISSUER

AND

THE BANK OF NEW YORK,

AS TRUSTEE,

 

INDENTURE

DATED AS OF JUNE 13, 2002

 

12.50% SENIOR NOTES DUE 2012

 

 

 

CROSS-REFERENCE TABLE

	 	 	 	 	 	 	 
	TIA Sections	 	Indenture Sections
	 	 	 	 	 
	Section 310
	 	(a)(1)	 	7.10	 	 
	 
	 	(a)(2)	 	7.10	 	 
	 
	 	(b)	 	7.03;	 	7.08
	Section 311
	 	 	 	7.03	 	 
	Section 313
	 	(a)	 	7.06	 	 
	 
	 	(c)	 	7.05;	 	7.06
	Section 314
	 	(a)	 	4.18;	 	13.02
	 
	 	(a)(4)	 	1.01	 	“Officers’
Certificate”
	 
	 	(c)(1)	 	13.03	 	 
	 
	 	(c)(2)	 	13.03	 	 
	 
	 	(e)	 	1.01	 	“Officers’
Certificate,”
	 
	 	 	 	 	 	“Opinion of Counsel”
	Section 315
	 	(a)-(d)	 	7.02	 	 
	Section 316
	 	(a)	 	6.06	 	 
	 
	 	(b)	 	6.07	 	 
	Section 317
	 	(a)(1)	 	6.08	 	 
	 
	 	(a)(2)	 	6.09	 	 
	Section 318
	 	(a)	 	13.01	 	 
	 
	 	(c)	 	13.01	 	 

 

			
	Note: 	 	The Cross-Reference Table shall not for any purpose be deemed to be a
part of the Indenture.

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE ONE DEFINITIONS AND INCORPORATION BY REFERENCE
	 	 	2	 
	 
	 	 	 	 
	SECTION 1.01. Definitions
	 	 	2	 
	SECTION 1.02. Incorporation by Reference of Trust Indenture Act
	 	 	20	 
	SECTION 1.03. Rules of Construction
	 	 	21	 
	 
	 	 	 	 
	ARTICLE TWO THE NOTES
	 	 	21	 
	 
	 	 	 	 
	SECTION 2.01. Form and Dating
	 	 	21	 
	SECTION 2.02. Restrictive Legends
	 	 	22	 
	SECTION 2.03. Execution, Authentication and Denominations
	 	 	23	 
	SECTION 2.04. Registrar and Paying Agent
	 	 	24	 
	SECTION 2.05. Paying Agent to Hold Money in Trust
	 	 	25	 
	SECTION 2.06. Transfer and Exchange
	 	 	25	 
	SECTION 2.07. Book-Entry Provisions for Global Notes
	 	 	26	 
	SECTION 2.08. Special Transfer Provisions
	 	 	28	 
	SECTION 2.09. Replacement Notes
	 	 	30	 
	SECTION 2.10. Outstanding Notes
	 	 	31	 
	SECTION 2.11. Temporary Notes
	 	 	31	 
	SECTION 2.12. Cancellation
	 	 	31	 
	SECTION 2.13. CUSIP Numbers
	 	 	32	 
	SECTION 2.14. Defaulted Interest
	 	 	32	 
	SECTION 2.15. Issuance of Additional Notes
	 	 	32	 
	 
	 	 	 	 
	ARTICLE THREE REDEMPTION
	 	 	32	 
	 
	 	 	 	 
	SECTION 3.01. Optional Redemption
	 	 	32	 
	SECTION 3.02. Redemption for Changes in Withholding Taxes
	 	 	33	 
	SECTION 3.03. Notices to Trustee
	 	 	33	 
	SECTION 3.04. Selection of Notes to Be Redeemed
	 	 	33	 
	SECTION 3.05. Add On Notes
	 	 	33	 
	SECTION 3.06. Notice of Redemption
	 	 	34	 
	SECTION 3.07. Effect of Notice of Redemption
	 	 	35	 
	SECTION 3.08. Deposit of Redemption Price
	 	 	35	 
	SECTION 3.09. Payment of Notes Called for Redemption
	 	 	35	 
	SECTION 3.10. Notes Redeemed in Part
	 	 	35	 
	 
	 	 	 	 
	ARTICLE FOUR COVENANTS
	 	 	36	 
	 
	 	 	 	 
	SECTION 4.01. Payment of Notes
	 	 	36	 
	SECTION 4.02. Maintenance of Office or Agency
	 	 	36	 
	SECTION 4.03. Limitation on Indebtedness
	 	 	36	 
	SECTION 4.04. Limitation on Restricted Payments
	 	 	39	 
	SECTION 4.05. Limitation on Dividend and Other Payment Restrictions Affecting
Restricted Subsidiaries
	 	 	42	 
	SECTION 4.06. Limitation on the Issuance and Sale of Capital Stock of Restricted
Subsidiaries
	 	 	43	 
	SECTION 4.07. Limitation on Issuances of Guarantees by Restricted Subsidiaries
	 	 	44	 
	SECTION 4.08. Limitation on Transactions with Stockholders and Affiliates
	 	 	44	 
	SECTION 4.09. Limitation on Liens
	 	 	45	 
	SECTION 4.10. Limitation on Sale-Leaseback Transactions
	 	 	46	 
	SECTION 4.11. Limitation on Asset Sales
	 	 	46	 

 

 

	 	 	 	 	 
	 	 	Page	 
	SECTION 4.12. Repurchase of Notes upon a Change of Control
	 	 	47	 
	SECTION 4.13. Existence
	 	 	47	 
	SECTION 4.14. Payment of Taxes and Other Claims
	 	 	47	 
	SECTION 4.15. Maintenance of Properties and Insurance
	 	 	48	 
	SECTION 4.16. Notice of Defaults
	 	 	48	 
	SECTION 4.17. Compliance Certificates
	 	 	48	 
	SECTION 4.18. Commission Reports and Reports to Holders
	 	 	49	 
	SECTION 4.19. Waiver of Stay, Extension or Usury Laws
	 	 	49	 
	SECTION 4.20. Additional Amounts
	 	 	49	 
	SECTION 4.21. Comision Nacional Bancaria y de Valores
	 	 	52	 
	 
	 	 	 	 
	ARTICLE FIVE SUCCESSOR CORPORATION
	 	 	52	 
	 
	 	 	 	 
	SECTION 5.01. When Company May Merge, Etc.
	 	 	52	 
	SECTION 5.02. Successor Substituted
	 	 	53	 
	 
	 	 	 	 
	ARTICLE SIX DEFAULT AND REMEDIES
	 	 	53	 
	 
	 	 	 	 
	SECTION 6.01. Events of Default
	 	 	53	 
	SECTION 6.02. Acceleration
	 	 	55	 
	SECTION 6.03. Other Remedies
	 	 	55	 
	SECTION 6.04. Waiver of Past Defaults
	 	 	56	 
	SECTION 6.05. Control by Majority
	 	 	56	 
	SECTION 6.06. Limitation on Suits
	 	 	56	 
	SECTION 6.07. Rights of Holders to Receive Payment
	 	 	57	 
	SECTION 6.08. Collection Suit by Trustee
	 	 	57	 
	SECTION 6.09. Trustee May File Proofs of Claim
	 	 	57	 
	SECTION 6.10. Priorities
	 	 	57	 
	SECTION 6.11. Undertaking for Costs
	 	 	58	 
	SECTION 6.12. Restoration of Rights and Remedies
	 	 	58	 
	SECTION 6.13. Rights and Remedies Cumulative
	 	 	58	 
	SECTION 6.14. Delay or Omission Not Waiver
	 	 	58	 
	 
	 	 	 	 
	ARTICLE SEVEN TRUSTEE
	 	 	58	 
	 
	 	 	 	 
	SECTION 7.01. General
	 	 	58	 
	SECTION 7.02. Certain Rights of Trustee
	 	 	59	 
	SECTION 7.03. Individual Rights of Trustee
	 	 	60	 
	SECTION 7.04. Trustee’s Disclaimer
	 	 	60	 
	SECTION 7.05. Notice of Default
	 	 	60	 
	SECTION 7.06. Reports by Trustee to Holders
	 	 	60	 
	SECTION 7.07. Compensation and Indemnity
	 	 	60	 
	SECTION 7.08. Replacement of Trustee
	 	 	61	 
	SECTION 7.09. Successor Trustee by Merger, Etc.
	 	 	62	 
	SECTION 7.10. Eligibility
	 	 	62	 
	SECTION 7.11. Money Held in Trust
	 	 	62	 
	SECTION 7.12. Withholding Taxes
	 	 	63	 
	SECTION 7.13. Appointment of Co-Trustee
	 	 	63	 
	 
	 	 	 	 
	ARTICLE EIGHT DISCHARGE OF INDENTURE, DEFEASANCE
	 	 	64	 
	 
	 	 	 	 
	SECTION 8.01. Termination of Company’s Obligations
	 	 	64	 
	SECTION 8.02. Defeasance and Discharge of Indenture
	 	 	65	 
	SECTION 8.03. Defeasance of Certain Obligations
	 	 	66	 
	SECTION 8.04. Application of Trust Money
	 	 	68	 
	SECTION 8.05. Repayment to Company
	 	 	68	 

 

 

	 	 	 	 	 
	 	 	Page	 
	SECTION 8.06. Reinstatement
	 	 	68	 
	 
	 	 	 	 
	ARTICLE NINE AMENDMENTS, SUPPLEMENTS AND WAIVERS
	 	 	69	 
	 
	 	 	 	 
	SECTION 9.01. Without Consent of Holders
	 	 	69	 
	SECTION 9.02. With Consent of Holders
	 	 	69	 
	SECTION 9.03. Revocation and Effect of Consent
	 	 	70	 
	SECTION 9.04. Notation on or Exchange of Notes
	 	 	71	 
	SECTION 9.05. Trustee to Sign Amendments, Etc.
	 	 	71	 
	SECTION 9.06. Conformity with Trust Indenture Act
	 	 	71	 
	 
	 	 	 	 
	ARTICLE TEN [INTENTIONALLY OMITTED]
	 	 	71	 
	 
	 	 	 	 
	ARTICLE ELEVEN [INTENTIONALLY OMITTED]
	 	 	71	 
	 
	 	 	 	 
	ARTICLE TWELVE [INTENTIONALLY OMITTED]
	 	 	71	 
	 
	 	 	 	 
	ARTICLE THIRTEEN MISCELLANEOUS
	 	 	71	 
	 
	 	 	 	 
	SECTION 13.01. Trust Indenture Act of 1939
	 	 	71	 
	SECTION 13.02. Notices
	 	 	71	 
	SECTION 13.03. Certificate and Opinion as to Conditions Precedent
	 	 	73	 
	SECTION 13.04. Statements Required in Certificate or Opinion
	 	 	74	 
	SECTION 13.05. Meetings of Noteholders
	 	 	74	 
	SECTION 13.06. Rules by Trustee, Paying Agent or Registrar
	 	 	74	 
	SECTION 13.07. Payment Date Other Than a Business Day
	 	 	74	 
	SECTION 13.08. Governing Law; Submission to Jurisdiction; Agent for Service
	 	 	74	 
	SECTION 13.09. Currency Indemnity
	 	 	75	 
	SECTION 13.10. No Adverse Interpretation of Other Agreements
	 	 	75	 
	SECTION 13.11. No Recourse Against Others
	 	 	75	 
	SECTION 13.12. Successors
	 	 	75	 
	SECTION 13.13. Duplicate Originals
	 	 	76	 
	SECTION 13.14. Separability
	 	 	76	 
	SECTION 13.15. Table of Contents, Headings, Etc.
	 	 	76	 

 

 

     INDENTURE,
dated as of June 13, 2002, between TFM, S.A. de C.V., a variable capital company (sociedad anonima
de capital variable) organized under the laws of Mexico, as Issuer (the “Company”), The Bank of New
York, a New York banking corporation, as Trustee (in such capacity, the “Trustee”).

RECITALS OF THE COMPANY

     The Company has duly authorized the execution and delivery of this Indenture to provide for
the issuance of the Company’s 12.50% Senior Notes due 2012 (the “Notes”) issuable as provided in
this Indenture of which $180,000,000 in aggregate principal amount will be initially issued on the
Closing Date. Subject to the conditions set forth in the Indenture and without the consent of the
Holders, the Company may issue Add On Notes as provided for herein. Pursuant to the Registration
Rights Agreement (as defined herein), the Notes may become freely transferable upon the
consummation of an exchange offer for the Notes or upon the effectiveness of a shelf registration
statement with respect to the Notes. All things necessary to make this Indenture a valid agreement
of the Company, in accordance with its terms, have been done, and the Company has done all things
necessary to make the Notes, when executed by the Company and authenticated and delivered by the
Trustee hereunder and duly issued by the Company, the valid and legally binding obligations of the
Company as hereinafter provided.

     This Indenture will be subject to, and shall be governed by, the provisions of the Trust
Indenture Act of 1939, as amended, that are required to be a part of and to govern indentures
qualified under the Trust Indenture Act of 1939, as amended.

AND THIS INDENTURE FURTHER WITNESSETH

     For and in consideration of the premises and the purchase of the Notes by the Holders (as
defined herein) thereof, it is mutually covenanted and agreed, for the equal and proportionate
benefit of all Holders, as follows.

 

 

ARTICLE ONE

DEFINITIONS AND INCORPORATION BY REFERENCE

     SECTION 1.01. Definitions.

     “Acquired Indebtedness” means Indebtedness of a Person existing at the time such Person
becomes a Restricted Subsidiary or assumed in connection with an Asset Acquisition by the Company
or a Restricted Subsidiary and not Incurred in connection with, or in anticipation of, such Person
becoming a Restricted Subsidiary or such Asset Acquisition; provided that Indebtedness of such
Person which is redeemed, defeased,
retired or otherwise repaid at the time of or immediately upon consummation of the transactions by
which such Person becomes a Restricted Subsidiary or such Asset Acquisition shall not be Acquired
Indebtedness.

     “Acquisition” means the acquisition of 80% of the outstanding share capital of the Company by
Grupo TFM.

     “Acquisition Date” means the date on which the Acquisition was consummated, or June 23, 1997.

     “Acquisition Transactions” has the meaning provided in Section 4.04.

     “Additional Amounts” has the meaning set forth in Section 4.20.

     “Add On Note Board Resolutions” means resolutions duly adopted by the Board of Directors of
the Company and delivered to the Trustee in an Officers’ Certificate providing for the issuance of
Add On Notes.

     “Add On Note Supplemental Indenture” means a supplement to this Indenture duly executed and
delivered by the Company and the Trustee pursuant to Article 9 providing for the issuance of Add On
Notes.

     “Add On Notes” means the Company’s 12.50% Senior Notes Due 2012 originally issued after the
Closing Date pursuant to Section 3.05, including any replacement Notes and any Exchange Notes as
specified in the relevant Add On Note Board Resolutions or Add On Note Supplemental Indenture
issued therefor in accordance with this Indenture.

     “Adjusted Consolidated Net Income” means, for any period, the aggregate net income (or loss)
of the Company and its Restricted Subsidiaries for such period determined in conformity with IAS;
provided that the following items shall be excluded in computing Adjusted Consolidated Net Income
(without duplication): (i) the net income of any Person (other than net income attributable to a
Restricted Subsidiary) in which any Person (other than the Company or any of its Restricted
Subsidiaries) has a joint interest and the net income of any Unrestricted Subsidiary, except to the
extent of the amount of dividends or other distributions actually paid to the Company or any of its
Restricted Subsidiaries by such other Person or such Unrestricted Subsidiary during such period;
(ii) solely for the purposes of calculating the amount of Restricted Payments that may be made
pursuant to clause (C) of the first paragraph of Section 4.04 (and in

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such case, except to the extent includible pursuant to clause (i) above, the net income
(or loss) of any Person accrued prior to the date it becomes a Restricted Subsidiary or is merged
into or consolidated with the Company or any of its Restricted Subsidiaries or all or substantially
all of the property and assets of such Person are acquired by the Company or any of its Restricted
Subsidiaries; (iii) the net income of any Restricted Subsidiary to the extent that the declaration
or payment of dividends or similar distributions by such Restricted Subsidiary of such net income
is not at the time
permitted by the operation of the terms of its charter or any agreement, instrument, judgment,
decree, order, statute, rule or governmental regulation applicable to such Restricted Subsidiary;
(iv) any gains or losses (on an after-tax basis) attributable to Asset Sales; (v) except for
purposes of calculating the amount of Restricted Payments that may be made pursuant to clause (C)
of the first paragraph of Section 4.04, any amount paid or accrued as dividends on Preferred Stock
of the Company or any Restricted Subsidiary owned by Persons other than the Company and any of its
Restricted Subsidiaries; and (vi) all extraordinary gains and extraordinary losses.

     “Adjusted Consolidated Net Tangible Assets” means the total amount of assets of the Company
and its Restricted Subsidiaries (less applicable depreciation, amortization and other valuation
reserves), except to the extent resulting from write-ups of capital assets following the Closing
Date (but including write-ups in connection with accounting for acquisitions in conformity with
IAS), after deducting therefrom (i) all current liabilities of the Company and those of its
Restricted Subsidiaries (excluding intercompany items) and (ii) all goodwill, trade names,
trademarks, patents, unamortized debt discount and expense and other like intangibles, all as set
forth on the most recent quarterly or annual consolidated balance sheet of the Company and that of
its Restricted Subsidiaries, prepared in conformity with IAS and filed with the Commission or
provided to the Trustee pursuant to Section 4.18.

     “Affiliate” means, as applied to any Person, any other Person directly or indirectly
controlling, controlled by, or under direct or indirect common control with, such Person. For
purposes of this definition, “control” (including, with correlative meanings, the terms
“controlling,” “controlled by” and “under common control with”), as applied to any Person, means
the possession, directly or indirectly, of the power to direct or cause the direction of the
management and policies of such Person, whether through the ownership of voting securities, by
contract or otherwise.

     “Agent” means any Registrar, Paying Agent, authenticating agent or co-Registrar.

     “Agent Members” has the meaning provided in Section 2.07(a).

     “Asset Acquisition” means (i) an investment by the Company or any of its Restricted
Subsidiaries in any other Person pursuant to which such Person shall become a Restricted Subsidiary
of the Company or shall be merged into or consolidated with the Company or any of its Restricted
Subsidiaries; provided that such Person’s primary business is related, ancillary or complementary
to the businesses of the Company and those of its Restricted Subsidiaries on the date of such
investment or (ii) an acquisition by the Company or any of its Restricted Subsidiaries of the
property and assets of any Person other than the Company or any of its Restricted Subsidiaries that
constitute substantially all of a division or line of business of such Person; provided that the
property and assets acquired are related, ancillary or

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complementary to the businesses of the Company and those of its Restricted Subsidiaries
on the date of such acquisition.

     “Asset Disposition” means the sale or other disposition by the Company or any of its
Restricted Subsidiaries (other than to the Company or a Restricted Subsidiary) of (i) all or
substantially all of the Capital Stock of any Restricted Subsidiary of the Company or (ii) all or
substantially all of the assets that constitute a division or line of business of the Company or
any of its Restricted Subsidiaries.

     “Asset Sale” means any sale, transfer or other disposition (including by way of merger,
consolidation or sale-leaseback transaction) in one transaction or a series of related transactions
by the Company or any of its Restricted Subsidiaries to any Person other than the Company or any of
its Restricted Subsidiaries of (i) all or any of the Capital Stock of any Restricted Subsidiary,
(ii) all or substantially all of the property and assets of an operating unit or business of the
Company or any of its Restricted Subsidiaries or (iii) any other property and assets of the Company
or any of its Restricted Subsidiaries (other than the Capital Stock, property or assets of an
Unrestricted Subsidiary) outside the ordinary course of business of the Company or such Restricted
Subsidiary and, in each case, that is not governed by the provisions of the Indenture applicable to
mergers, consolidations and sales of all or substantially all of the assets of the Company;
provided that “Asset Sale” shall not include (a) sales or other dispositions of inventory,
receivables and other current assets (which shall not include locomotives or rolling stock) or (b)
sales or other dispositions of assets for consideration at least equal to the fair market value of
the assets sold or disposed of, provided that the consideration received would satisfy clause (B)
of the first paragraph of Section 4.11.

     “Average Life” means, at any date of determination with respect to any debt security, the
quotient obtained by dividing (i) the sum of the products of (a) the number of years from such date
of determination to the dates of each successive scheduled principal payment of such debt security
and (b) the amount of such principal payment by (ii) the sum of all such principal payments.

     “Board of Directors” means the Board of Directors of the Company or the Executive Committee
thereof, if duly authorized to act with respect to this Indenture.

     “Board Resolution” means a copy of a resolution, certified by the Secretary, Pro-Secretary or
any Assistant Secretary of the Company, as required by the context to have been duly adopted by the
Board of Directors and to be in full force and effect on the date of such certification, and
delivered to the Trustee.

     “Business Day” means any day except a Saturday, Sunday or other day on which commercial banks
in The City of New York, or in the city of the Corporate Trust Office of the Trustee, are
authorized by law to close.

     “Capital Stock” means, with respect to any Person, any and all shares, interests,
participations or other equivalents (however designated, whether voting or non-voting) in equity of
such Person, whether now outstanding or issued after the Closing Date, including, without
limitation, all Common Stock and Preferred Stock.

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     “Capitalized Lease” means, as applied to any Person, any lease of any property
(whether real, personal or mixed) of which the discounted present value of the rental obligations
of such Person as lessee, in conformity with IAS, is required to be capitalized on the balance
sheet of such Person.

     “Capitalized Lease Obligations” means the discounted present value of the rental obligations
under a Capitalized Lease.

     “Change of Control” means such time as (i) the Existing Holders cease to be the ultimate
“beneficial owners” (defined in Rule 13d-3 under the Exchange Act and including by reason of any
change in the ultimate “beneficial ownership” of the Capital Stock of Grupo TFM) of Voting Stock
representing more than 50% of the total voting power of the total Voting Stock of Grupo TFM on a
fully diluted basis; (ii) individuals who on the Closing Date constitute the Board of Directors of
the Company or Grupo TFM (together with any new directors whose election by the Board of Directors
or by the Company’s stockholders or Grupo TFM’s stockholders, as the case may be, was approved by a
vote of at least two-thirds of the members of such Board of Directors then in office who either
were members of such Board of Directors on the Closing Date or whose election or nomination for
election was previously so approved or who were appointed by one or more of its Existing Holders)
cease for any reason to constitute a majority of the members of such Board of Directors then in
office; or (iii) Grupo TFM does not own all of the outstanding Voting Stock of the Company other
than as a result of (A) one or more primary offerings of the Common Stock of the Company having, in
the aggregate, voting power equal to or less than 35% of the total voting power of the Voting Stock
of the Company or (B) a merger, consolidation, sale, transfer or lease solely between Grupo TFM and
the Company.

     “Closing Date” means the date on which the Notes are originally issued under this Indenture.

     “Commission” means the Securities and Exchange Commission, as from time to time constituted,
created under the Exchange Act or, if at any time after the execution of this instrument such
Commission is not existing and performing the duties now assigned to it under the TIA, then the
body performing such duties at such time.

     “Common Stock” means, with respect to any Person, any and all shares, interests,
participations or other equivalents (however designated, whether voting or nonvoting) of such
Person’s equity, other than Disqualified Stock of such Person, whether now outstanding or issued
after the Closing Date, including all Common Stock or Preferred Stock (other than Disqualified
Stock). For purposes of this definition, “Common Stock” shall include all shares, interests,
participations and equivalents corresponding to common stock (other than Disqualified Stock) under
the laws of the jurisdiction in which such Person is organized.

     “Company” means the party named as such in the first paragraph of this Indenture until a
successor replaces it pursuant to Article Five of this Indenture and thereafter means the
successor.

-5-

 

     “Company Order” means a written request or order signed in the name of the
Company (i) by its Chief Executive Officer and (ii) by one of its Directors and delivered to the
Trustee.

     “Concession Title” means the right of the Company for a period of 30 years to be the exclusive
provider (subject to certain trackage rights) of freight transportation services over the Northeast
Rail Lines and for an additional 20 years to be a non-exclusive provider of such services granted
by the Mexican government pursuant to the Concession Title, subject in all cases to the terms and
conditions of the Concession Title, as in effect on the Acquisition Date.

     “Consolidated EBITDA” means, for any period, the sum of the amounts for such period of (i)
Adjusted Consolidated Net Income, (ii) Consolidated Interest Expense, to the extent such amount was
deducted in calculating Adjusted Consolidated Net Income, (iii) income and asset taxes, to the
extent such amount was deducted in calculating Adjusted Consolidated Net Income (other than income
taxes (either positive or negative) attributable to extraordinary and non-recurring gains or losses
or sales of assets), (iv) depreciation expense, to the extent such amount was deducted in
calculating Adjusted Consolidated Net Income, (v) amortization expense, to the extent such amount
was deducted in calculating Adjusted Consolidated Net Income, and (vi) all other non-cash items
reducing Adjusted Consolidated Net Income (other than items that will require cash payments and for
which an accrual or reserve is, or is required by IAS to be, made, but including fees payable by
the Company under the Management Services Agreements which are unpaid and for which an accrual is
made), less all non-cash items increasing Adjusted Consolidated Net Income, all as determined on a
consolidated basis for the Company and its Restricted Subsidiaries in conformity with IAS; provided
that, if any Restricted Subsidiary is not a Wholly Owned Restricted Subsidiary, Consolidated EBITDA
shall be reduced (to the extent not otherwise reduced in accordance with IAS) by an amount equal to
(A) the amount of the Adjusted Consolidated Net Income attributable to such Restricted Subsidiary
multiplied by (B) the quotient of (1) the number of shares of outstanding Common Stock of such
Restricted Subsidiary not owned on the last day of such period by the Company or any of its
Restricted Subsidiaries divided by (2) the total number of shares of outstanding Common Stock of
such Restricted Subsidiary on the last day of such period.

     “Consolidated Interest Expense” means, for any period, the aggregate amount of interest in
respect of Indebtedness (including amortization of original issue discount on any Indebtedness and
the interest portion of any deferred payment obligation, calculated in accordance with the
effective interest method of accounting; all commissions, discounts and other fees and charges owed
with respect to letters of credit and bankers’ acceptance financing; the net costs associated with
Interest Rate Agreements; and interest paid (by any Person) with respect to Indebtedness that is
Guaranteed or secured by the
Company or any of its Restricted Subsidiaries) and all but the principal component of rentals in
respect of Capitalized Lease Obligations paid, accrued or scheduled to be paid or to be accrued by
the Company and its Restricted Subsidiaries during such period; excluding, however, (i) any amount
of such interest of any Restricted Subsidiary if the net income of such Restricted Subsidiary is
excluded in the calculation of Adjusted Consolidated Net Income pursuant to clause (iii) of the
definition thereof (but only in the same proportion as the net income of such Restricted Subsidiary
is excluded from the calculation of Adjusted Consolidated Net Income pursuant to clause (iii) of
the definition thereof) and (ii) any premiums, fees and expenses (and any amortization

-6-

 

thereof) payable in connection with the offer of the Existing Securities and the Notes,
the Exchange Offer or the Shelf Registration Statement with respect to the Notes, all as determined
on a consolidated basis (without taking into account Unrestricted Subsidiaries) in conformity with
IAS.

     “Consolidated Net Worth” means, at any date of determination, stockholders’ equity as set
forth on the most recently available quarterly or annual consolidated balance sheet of the Company
and its Restricted Subsidiaries (which shall be as of a date not more than 90 days prior to the
date of such computation, and which shall not take into account Unrestricted Subsidiaries), less
any amounts attributable to Disqualified Stock or any equity security convertible into or
exchangeable for Indebtedness, the cost of treasury stock and the principal amount of any
promissory notes receivable from the sale of the Capital Stock of the Company or any of its
Restricted Subsidiaries, each item to be determined in conformity with IAS.

     “Corporate Trust Office” means the office of the Trustee at which the corporate trust business
of the Trustee shall, at any particular time, be principally administered, which office is, at the
date of this Indenture, located at The Bank of New York, 15 Broad Street, 26th floor, New York, NY
10005, Attention: Global Finance Unit.

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

     “Default” means any event that is, or after notice or passage of time or both would be, an
Event of Default.

     “Depositary” means The Depository Trust Company, its nominees, and their respective
successors.

     “Disqualified Stock” means any class or series of Capital Stock of any Person that by its
terms or otherwise is (i) required to be redeemed prior to the Stated Maturity of the Notes; (ii)
redeemable at the option of the holder of such class or series of Capital Stock at any time prior
to the Stated Maturity of the Notes; or (iii) convertible into or exchangeable for Capital Stock
referred to in clause (i) or (ii) above or Indebtedness having a scheduled maturity prior to the
Stated Maturity of the Notes; provided that any Capital Stock that would not constitute
Disqualified Stock but for provisions thereof
giving holders thereof the right to require such Person to repurchase or redeem such Capital Stock
upon the occurrence of an “asset sale” or “change of control” occurring prior to the Stated
Maturity of the Notes shall not constitute Disqualified Stock if the “asset sale” or “change of
control” provisions applicable to such Capital Stock are no more favorable to the holders of such
Capital Stock than the provisions contained in Section 4.11 and Section 4.12 and such Capital Stock
specifically provides that such Person will not repurchase or redeem any such stock pursuant to
such provision prior to the Company’s repurchase of such Notes as are required to be repurchased
pursuant to Section 4.11 and Section 4.12. Notwithstanding the foregoing, Series L shares of Grupo
TFM and the Class III Series A shares and Class III Series B shares of the Company owned by Mexico
shall be deemed not to be Disqualified Stock.

     “Event of Default” has the meaning set forth in Section 6.01.

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     “Excess Proceeds” has the meaning set forth in Section 4.11.

     “Exchange Act” means the United States Securities Exchange Act of 1934, as amended.

     “Exchange Notes” means any securities of the Company containing terms identical to the Notes
(except that such Exchange Notes (i) shall be registered under the Securities Act, (ii) will not
provide for an increase in the rate of interest (other than with respect to overdue amounts) and
(iii) will not contain terms with respect to transfer restrictions) that are issued and exchanged
for the Notes pursuant to the Registration Rights Agreement and this Indenture.

     “Exchange Offer” means the exchange offer by the Company of Exchange Notes for the Notes.

     “Existing Holders” means KCSI and Grupo TMM.

     “Existing Indentures” means the indentures, each dated as of June 16, 1997, as amended or
supplemented, among the Company, as issuer, Grupo TFM, as Guarantor, The Bank of New York, as
Trustee and Deutsche Bank Luxembourg S.A., as Paying Agent, under which the Existing Securities
were issued.

     “Existing Securities” means the outstanding 10.25% Senior Notes due 2007 and 11.75% Senior
Discount Debentures due 2009 of TFM, which are guaranteed by Grupo TFM.

     “fair market value” means the price that would be paid in an arm’s-length transaction between
an informed and willing seller under no compulsion to sell and an informed and willing buyer under
no compulsion to buy, as determined in good faith by the Board of Directors, whose determination
shall be conclusive if evidenced by a Board Resolution.

     “FNM” means Ferrocarriles Nacionales de Mexico, and its successors and assigns.

     “Global Notes” has the meaning provided in Section 2.01.

     “Government Securities” means direct obligations of, obligations fully and unconditionally
guaranteed by, or participation in pools consisting solely of (or repurchase transactions relating
to) obligations of or obligations fully and unconditionally guaranteed by the United States of
America for the payment of which guarantee or obligations the full faith and credit of the United
States of America is pledged and which are not callable or redeemable at the option of the issuer
thereof.

     “Grupo TFM” means Grupo Transportacion Ferroviaria Mexicana, S.A. de C.V., a sociedad anonima
de capital variable organized under the laws of Mexico, and its successors and assigns.

-8-

 

     “Grupo TMM” means Grupo TMM, S.A. de C.V. (formerly Grupo Servia, S.A. de
C.V.), a sociedad anonima de capital variable organized under the laws of Mexico, and its
successors and assigns.

     “Guarantee” means any obligation, contingent or otherwise, of any Person directly or
indirectly guaranteeing (whether pursuant to a guaranty, a fianza, an aval or otherwise) any
Indebtedness of any other Person and, without limiting the generality of the foregoing, any
obligation, direct or indirect, contingent or otherwise, of such Person (i) to purchase or pay (or
advance or supply funds for the purchase or payment of) such Indebtedness of such other Person
(whether arising by virtue of partnership arrangements, or by agreements to keep-well, to purchase
assets, goods, securities or services (unless such purchase arrangements are on arm’s-length terms
and are entered into in the ordinary course of business), to take-or-pay, or to maintain financial
statement conditions or otherwise) or (ii) entered into for purposes of assuring in any other
manner the obligee of such Indebtedness of the payment thereof or to protect such obligee against
loss in respect thereof (in whole or in part); provided that the term “Guarantee” shall not include
endorsements for collection or deposit in the ordinary course of business or obligations arising,
in the ordinary course of business, from contracting for interline railroad services. The term
“Guarantee” used as a verb has a corresponding meaning.

     “Guaranteed Indebtedness” has the meaning set forth in Section 4.07.

     “Holder” or “Noteholder” means the registered holder of any Note.

     “IAS” means accounting principles issued by the International Accounting Standards Committee
as in effect on the Closing Date and the accounting principles and policies of the Company and its
Restricted Subsidiaries, as in effect on the Closing Date. All ratios and computations shall be
computed in conformity with IAS applied on a consistent basis in U.S. dollars, except that
calculations made for purposes of determining compliance with the terms of the covenants and with
other provisions of this Indenture
shall be made without giving effect to the matters referred to in clause (ii) of the last sentence
of the definition of “Consolidated Interest Expense.”

     “Incur” means, with respect to any Indebtedness, to incur, create, issue, assume, Guarantee or
otherwise become liable for or with respect to, or become responsible for, the payment of,
contingently or otherwise, such Indebtedness, including an “Incurrence” of Acquired Indebtedness;
provided that neither the accrual of interest nor the accretion of original issue discount shall be
considered an Incurrence of Indebtedness.

     “Indebtedness” means, with respect to any Person at any date of determination (without
duplication), (i) all indebtedness of such Person for borrowed money, (ii) all obligations of such
Person evidenced by bonds, debentures, notes or other similar instruments, (iii) all obligations of
such Person in respect of letters of credit or other similar instruments (including reimbursement
obligations with respect thereto, but excluding obligations with respect to letters of credit
(including trade letters of credit) securing obligations (other than obligations described in (i)
or (ii) above or (v), (vi) or (vii) below) entered into in the ordinary course of business of such
Person to the extent such letters of credit are not drawn upon or, if drawn upon, to the extent
such drawing is reimbursed no later than the third Business Day following receipt by such

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Person of a demand for reimbursement), (iv) all obligations of such Person to pay the
deferred and unpaid purchase price of property or services, which purchase price is due more than
six months after the date of placing such property in service or taking delivery and title thereto
or the completion of such services, except Trade Payables, (v) all obligations of such Person as
lessee under Capitalized Leases (but not operating leases), (vi) all Indebtedness of other Persons
secured by a Lien on any asset of such Person, whether or not such Indebtedness is assumed by such
Person; provided that the amount of such Indebtedness shall be the lesser of (A) the fair market
value of such asset at such date of determination and (B) the amount of such Indebtedness, (vii)
all Indebtedness of other Persons Guaranteed by such Person to the extent such Indebtedness is
Guaranteed by such Person and (viii) to the extent not otherwise included in this definition,
obligations under Currency Agreements and Interest Rate Agreements. The amount of Indebtedness of
any Person at any date shall be the outstanding balance at such date of all unconditional
obligations as described above and, with respect to contingent obligations, the maximum liability
upon the occurrence of the contingency giving rise to the obligation, provided (A) that the amount
outstanding at any time of any Indebtedness issued with original issue discount is the face amount
of such Indebtedness less the unamortized portion of the original issue discount of such
Indebtedness at the time of its issuance as determined in conformity with IAS, (B) that money
borrowed and set aside at the time of the Incurrence of any Indebtedness in order to prefund the
payment of interest on such Indebtedness shall be deemed not to be “Indebtedness” and (C) that
Indebtedness shall not include any liability for federal, state, local or other taxes of any
jurisdiction. For the purposes of computing the amount of Indebtedness of any Person outstanding at
any time, all such items shall be excluded to the extent that they would be eliminated as
intercompany items for purposes of such Person’s consolidated financial statements.

     “Indenture” means this Indenture as originally executed or as it may be amended or
supplemented from time to time by one or more indentures supplemental to this Indenture entered
into pursuant to the applicable provisions of this Indenture.

     “Institutional Accredited Investor” means an institution that is an “accredited investor” as
that term is defined in Rule 501(a)(1), (2), (3) or (7) of Regulation D under the Securities Act.

     “Interest Coverage Ratio” means, on any Transaction Date, the ratio of (i) the aggregate
amount of Consolidated EBITDA for the then most recent four fiscal quarters prior to such
Transaction Date for which reports have been filed with the Commission or provided to the Trustee
pursuant to Section 4.18 (the “Four Quarter Period”) to (ii) the aggregate Consolidated Interest
Expense during such Four Quarter Period. In making the foregoing calculation, (A) pro forma effect
shall be given to any Indebtedness Incurred or repaid during the period (the “Reference Period”)
commencing on the first day of the Four Quarter Period and ending on the Transaction Date (other
than Indebtedness Incurred or repaid under a revolving credit or similar arrangement to the extent
of the commitment thereunder (or under any predecessor revolving credit or similar arrangement) in
effect on the last day of such Four Quarter Period unless any portion of such Indebtedness is
projected, in the reasonable judgment of the senior management of the Company, to remain
outstanding for a period in excess of 12 months from the date of the Incurrence thereof), in each
case as if such Indebtedness had been Incurred or repaid on the first day of such Reference Period,
(B) Consolidated Interest Expense attributable to interest on any

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Indebtedness (whether existing or being Incurred) computed on a pro forma basis and
bearing a floating interest rate shall be computed as if the rate in effect on the Transaction Date
(taking into account any Interest Rate Agreement applicable to such Indebtedness if such Interest
Rate Agreement has a remaining term in excess of 12 months or, if shorter, at least equal to the
remaining term of such Indebtedness) had been the applicable rate for the entire period; (C) pro
forma effect shall be given to Asset Dispositions and Asset Acquisitions (including giving pro
forma effect to the application of proceeds of any Asset Disposition) that occur during such
Reference Period as if they had occurred and such proceeds had been applied on the first day of
such Reference Period; and (D) pro forma effect shall be given to asset dispositions and asset
acquisitions (including giving pro forma effect to the application of proceeds of any asset
disposition) that have been made by any Person that has become a Restricted Subsidiary or has been
merged with or into the Company or any Restricted Subsidiary during such Reference Period and that
would have constituted Asset Dispositions or Asset Acquisitions had such transactions occurred when
such Person was a Restricted Subsidiary as if such asset dispositions or asset acquisitions were
Asset Dispositions or Asset Acquisitions that occurred on the first day of such Reference Period;
provided that, to the extent that clause (C) or (D) of this sentence requires that pro forma effect
be given to an Asset Acquisition or Asset Disposition, such pro forma calculation shall be based
upon the four full fiscal quarters immediately preceding the
Transaction Date of the Person, or division or line of business of the Person, that is acquired or
disposed for which financial information is available.

     “Interest Payment Date” means each semiannual interest payment date on June 15 and December 15
of each year, commencing December 15, 2002.

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

     “Investment” in any Person means any direct or indirect advance, loan or other extension of
credit (including, without limitation, by way of Guarantee or similar arrangement; but excluding
advances to customers in the ordinary course of business that are, in conformity with IAS, recorded
as accounts receivable on the balance sheet of the Company or its Restricted Subsidiaries) or
capital contribution to (by means of any transfer of cash or other property to others or any
payment for property or services for the account or use of others), or any purchase or acquisition
of Capital Stock, bonds, notes, debentures or other similar instruments issued by, such Person and
shall include (i) the designation of a Restricted Subsidiary as an Unrestricted Subsidiary and (ii)
the fair market value of the Capital Stock (or any other Investment), held by the Company or any of
its Restricted Subsidiaries, of (or in) any Person that has ceased to be a Restricted Subsidiary,
including, without limitation, by reason of any transaction permitted by clause (iii) of Section
4.06; provided that the value of any investment outstanding at any time shall be deemed to be equal
to the amount of such Investment on the date made, less the return of capital to the Company and
its Restricted Subsidiaries with respect to such Investment (up to the amount of such Investment on
the date made). For purposes of the definition of “Unrestricted Subsidiary” and Section 4.04, (i)
“Investment” shall include the fair market value of the assets (net of liabilities (other than
liabilities to the Company or any of its Restricted Subsidiaries)) of any Restricted Subsidiary at
the time that such Restricted Subsidiary is designated an

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Unrestricted Subsidiary, (ii) the fair market value of the assets (net of liabilities
(other than liabilities to the Company or any of its Restricted Subsidiaries)) of any Unrestricted
Subsidiary at the time that such Unrestricted Subsidiary is designated a Restricted Subsidiary
shall be considered a reduction in outstanding Investments, and (iii) any property transferred to
or from an Unrestricted Subsidiary shall be valued at its fair market value at the time of such
transfer.

     “KCSI” means Kansas City Southern Industries, Inc., a Delaware corporation, and its successors
and assigns.

     “Lien” means any mortgage, pledge, security interest, encumbrance, lien or charge of any kind
(including, without limitation, any conditional sale or other title retention agreement or lease in
the nature thereof or any agreement to give any security interest).

     “Management Services Agreements” means, collectively, the Management Services Agreement
between the Company and TMM dated May 9, 1997 and the Management Services Agreement between the
Company and KCS Transportation Company dated May 9, 1997.

     “Mexican Withholding Taxes” has the meaning set forth in Section 4.20.

     “Mexico” means the Estados Unidos Mexicanos (the United Mexican States) and any branch of
power, ministry, department, authority or statutory corporation or other entity (including a
trust), owned or controlled directly or indirectly by the Estados Unidos Mexicanos or any of the
foregoing or created by law as a public entity.

     “Moody’s” means Moody’s Investors Service, Inc. and its successors.

     “Nafin” means Nacional Financiera, S.N.C., a Mexican national credit institution and
development bank, and its successors and assigns.

     “Net Cash Proceeds” means (a) with respect to any Asset Sale, the proceeds of such Asset Sale
in the form of cash or cash equivalents, including payments in respect of deferred payment
obligations (to the extent corresponding to the principal, but not interest, component thereof)
when received in the form of cash or cash equivalents (except to the extent such obligations are
financed or sold with recourse to the Company or any Restricted Subsidiary) and proceeds from the
conversion of other property received when converted to cash or cash equivalents, net of (i)
brokerage commissions and other fees and expenses (including fees and expenses of counsel and
investment bankers) related to such Asset Sale, (ii) provisions for all taxes (whether or not such
taxes will actually be paid or are payable) as a result of such Asset Sale without regard to the
consolidated results of operations of the Company and its Restricted Subsidiaries, taken as a
whole, (iii) payments made to repay Indebtedness or any other obligation outstanding at the time of
such Asset Sale that either (A) is secured by a Lien on the property or assets sold or (B) is
required to be paid as a result of such sale and (iv) appropriate amounts to be provided by the
Company or any Restricted Subsidiary of the Company as a reserve against any liabilities associated
with such Asset Sale, including, without limitation, pension and other post-employment benefit
liabilities, liabilities related to environmental matters and liabilities under any indemnification
obligations associated with such Asset Sale, all as determined in conformity with IAS and (b) with
respect to any issuance or sale of Capital Stock,

-12-

 

the proceeds of such issuance or sale in the form of cash or cash equivalents,
including payments in respect of deferred payment obligations (to the extent corresponding to the
principal, but not interest, component thereof) when received in the form of cash or cash
equivalents (except to the extent such obligations are financed or sold with recourse to the
Company or any Restricted Subsidiary) and proceeds from the conversion of other property received
when converted to cash or cash equivalents, net of attorneys’ fees, accountants’ fees,
underwriters’ or placement agents’ fees, discounts or
commissions and brokerage, consultant and other fees incurred in connection with such issuance or
sale and net of taxes paid or payable as a result thereof.

     “Non-U.S. Person” means a person who is not a U.S. person, as defined in Regulation S.

     “Northeast Rail Lines” means that portion of the Mexican railroad system that is the subject
of the Concession Title.

     “Note Register” has the meaning provided in Section 2.04.

     “Notes” means any of the notes, as defined in the first paragraph of the recitals hereof, that
are authenticated and delivered under this Indenture. For all purposes of this indenture, the term
“Notes” shall include any Exchange Notes to be issued and exchanged for any Notes pursuant to the
Registration Rights Agreement and this Indenture and, for purposes of this Indenture, all Notes and
Exchange Notes shall vote together as one series of Notes under this Indenture.

     “Offer to Purchase” means an offer to purchase Notes by the Company from the Holders commenced
by mailing a notice to the Trustee and each Holder that, unless otherwise required by applicable
law, shall state: (i) the covenant pursuant to which the offer is being made and that all Notes
validly tendered will be accepted for payment on a pro rata basis; (ii) the purchase price and the
date of purchase (which shall be a Business Day no earlier than 30 days nor later than 60 days from
the date such notice is mailed) (the “Payment Date”); (iii) that any Note not tendered will
continue to accrue interest pursuant to its terms; (iv) that, unless the Company defaults in the
payment of the purchase price, any Note accepted for payment pursuant to the Offer to Purchase
shall cease to accrue interest on and after the Payment Date; (v) that Holders electing to have a
Note purchased pursuant to the Offer to Purchase will be required to surrender the Note, together
with the form entitled “Option of the Holder to Elect Purchase” on the reverse side thereof
completed, to the Paying Agent at the address specified in the notice prior to the close of
business on the Business Day immediately preceding the Payment Date; (vi) that Holders will be
entitled to withdraw their election if the Paying Agent receives, not later than the close of
business on the third Business Day immediately preceding the Payment Date, a telegram, facsimile
transmission or letter setting forth the name of such Holder, the principal amount at maturity of
Notes delivered for purchase and a statement that such Holder is withdrawing his election to have
such Notes purchased; and (vii) that Holders whose Notes are being purchased only in part will be
issued Notes equal in principal amount at maturity to the unpurchased portion thereof surrendered;
provided that each Note purchased and each Note issued shall be in a principal amount at maturity
of $100 or integral multiples thereof. On the Payment Date, the Company shall (i) accept for
payment on a pro rata basis Notes or portions thereof tendered pursuant to an Offer to Purchase;
(ii) deposit with the Paying Agent money

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sufficient to pay the purchase price of all Notes or portions thereof so accepted; and
(iii) deliver, or cause to be delivered, to the Trustee all Notes or
portions thereof so accepted together with an Officers’ Certificate specifying the relevant Notes
or portions thereof accepted for payment by the Company. The Paying Agent shall promptly mail to
the Holders of the Notes so accepted, payment in an amount equal to the purchase price, and the
Trustee shall promptly authenticate and mail to such Holders a Note, equal in principal amount at
maturity to any unpurchased portion of the Note surrendered. The Company will publicly announce the
results of an Offer to Purchase as soon as practicable after the Payment Date. The Trustee shall
act as the Paying Agent for an Offer to Purchase. The Company will comply with Rule 14e-1 under the
Exchange Act and any other securities laws and regulations thereunder to the extent such laws and
regulations are applicable, in the event that the Company is required to repurchase the Notes
pursuant to an Offer to Purchase.

     “Officer” means, with respect to the Company, (i) the Chief Executive Officer, the Chief
Operating Officer, or any Vice President, and (ii) the Chief Financial Officer, the Treasurer or
any Assistant Treasurer, or the Secretary, Pro-Secretary or any Assistant Secretary or any Director
or Alternate Director.

     “Officers’ Certificate” means a certificate signed by one Officer listed in clause (i) of the
definition thereof and one Officer listed in clause (ii) of the definition thereof; provided,
however, that any such certificate may be signed by any two of the Officers listed in clause (i) of
the definition thereof in lieu of being signed by one Officer listed in clause (i) of the
definition thereof and one Officer listed in clause (ii) of the definition thereof. Each Officers’
Certificate (other than certificates provided pursuant to TIA Section 314(a)(4)) shall include the
statements provided for in TIA Section 314(e).

     “Offshore Global Notes” has the meaning set forth in Section 2.01.

     “Offshore Physical Notes” has the meaning set forth in Section 2.01.

     “Offshore Securities Exchange Date” has the meaning set forth in Section 2.01.

     “Opinion of Counsel” means a written opinion signed by legal counsel who may be an employee of
or counsel to the Company. Each such Opinion of Counsel shall include the statements provided for
in TIA Section 314(e).

     “Pari Passu Indebtedness” has the meaning set forth in Section 4.11.

     “Paying Agent” has the meaning provided in Section 2.04, except that, for the purposes of
Article Eight, the Paying Agent shall not be the Company or a Subsidiary of the Company or an
Affiliate of any of them. The term “Paying Agent” includes any additional Paying Agent.

     “Permanent Offshore Global Notes” has the meaning provided in Section 2.01.

     “Permitted Investment” means (i) an Investment in the Company or a Restricted Subsidiary or a
Person which will, upon the making of such Investment, become a
Restricted Subsidiary or be merged or consolidated with or into or transfer or convey all or
substantially all

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of its assets to the Company or a Restricted Subsidiary; provided that such person’s
primary business is related, ancillary or complementary to the businesses of the Company and its
Restricted Subsidiaries on the date of such investment; (ii) Temporary Cash Investments; (iii)
payroll, travel and similar advances to cover matters that are expected at the time of such
advances ultimately to be treated as expenses in accordance with IAS; and (iv) stock, obligations
or securities received in satisfaction of judgments.

     “Permitted Liens” means (i) Liens for taxes, assessments, governmental charges or claims that
are being contested in good faith by appropriate legal proceedings promptly instituted and
diligently conducted and for which a reserve or other appropriate provision, if any, as shall be
required in conformity with IAS shall have been made; (ii) statutory and common law Liens of
landlords and carriers, warehousemen, mechanics, suppliers, materialmen, repairmen or other similar
Liens arising in the ordinary course of business and with respect to amounts not yet delinquent or
being contested in good faith by appropriate legal proceedings promptly instituted and diligently
conducted and for which a reserve or other appropriate provision, if any, as shall be required in
conformity with IAS shall have been made; (iii) Liens incurred or deposits made in the ordinary
course of business in connection with workers’ compensation, unemployment insurance and other types
of social security; (iv) Liens incurred or deposits made to secure the performance of tenders,
bids, leases, statutory or regulatory obligations, bankers’ acceptances, surety and appeal bonds,
government contracts, performance and return-of-money bonds and other obligations of a similar
nature incurred in the ordinary course of business (exclusive of obligations for the payment of
borrowed money); (v) easements, rights-of-way, municipal and zoning ordinances and similar charges,
encumbrances, title defects or other irregularities that do not materially interfere with the
ordinary course of business of the Company or any of its Restricted Subsidiaries; (vi) Liens
(including extensions and renewals thereof) upon real or personal property acquired after the
Closing Date; provided that (a) such Lien is created solely for the purpose of securing
Indebtedness Incurred, in accordance with Section 4.03, to finance the cost (including the cost of
improvement, lease or construction) of the item of property or assets subject thereto and such Lien
is created prior to, at the time of or within six months after the later of the acquisition, the
completion of construction or the commencement of full operation or the lease of such property, (b)
the principal amount of the Indebtedness secured by such Lien does not exceed 100% of such cost and
(c) any such Lien shall not extend to or cover any property or assets other than such item of
property or assets and any improvements on such item; (vii) licenses, leases or subleases granted
to others that do not materially interfere with the ordinary course of business of the Company and
its Restricted Subsidiaries, taken as a whole; (viii) Liens encumbering property or assets under
construction arising from progress or partial payments by one of the customers of the Company or
its Restricted Subsidiaries relating to such property or assets; (ix) any interest or title of a
lessor or licensor in the property subject to any Capitalized Lease, operating lease or license
agreement; (x) Liens arising from filing Uniform Commercial
Code or similar financing statements regarding leases; (xi) Liens on property of, or on shares of
stock or Indebtedness of, any Person existing at the time such Person becomes, or becomes a part
of, any Restricted Subsidiary; provided that such Liens do not extend to or cover any property or
assets of the Company or any Restricted Subsidiary other than the property or assets acquired;
(xii) Liens in favor of the Company or any Restricted Subsidiary; (xiii) Liens arising from the
rendering of a final judgment or order against the Company or any Restricted Subsidiary of the
Company that does not give rise to an Event of Default; (xiv) Liens securing reimbursement
obligations with respect to letters of credit that encumber documents and other

-15-

 

property relating to such letters of credit and the products and proceeds thereof; (xv)
Liens in favor of customs and revenue authorities arising as a matter of law to secure payment of
customs duties in connection with the importation of goods; (xvi) Liens encumbering customary
initial deposits and margin deposits, and other Liens, in each case, securing Indebtedness under
Interest Rate Agreements and Currency Agreements and forward contracts, options, futures contracts,
futures options or similar agreements or arrangements designed solely to protect the Company or any
of its Restricted Subsidiaries from fluctuations in interest rates, currencies or the price of
commodities; (xvii) Liens arising out of conditional sale, title retention, consignment or similar
arrangements for the sale of goods entered into by the Company or any of its Restricted
Subsidiaries in the ordinary course of business; (xviii) Liens on or sales of receivables; (xix)
Liens on any assets acquired by the Company or any Restricted Subsidiary after the Closing Date,
which Liens were in existence prior to the acquisition of such assets (to the extent that such
Liens were not created in contemplation of or in connection with such acquisition), provided that
such Liens are limited to the assets so acquired and the proceeds thereof; (xx) Liens existing or
arising under the Concession Title; (xxi) Liens Incurred in accordance with the terms of this
Indenture in favor of the Trustee under this Indenture; and (xxii) Liens permitted under the
Existing Indentures.

     “Person” means any individual, corporation, partnership, limited liability company, joint
venture, association, joint stock company, trust, unincorporated organization, government or agency
or political subdivision thereof or any other entity.

     “Physical Note” has the meaning provided in Section 2.01.

     “Preferred Stock” means, with respect to any Person, any and all shares, interests,
participations or other equivalents (however designated, whether voting or non-voting) of such
Person’s preferred or preference equity, whether now outstanding or issued after the Closing Date,
including, without limitation, all series and classes of such preferred stock or preference stock.

     “principal” of a debt security, including the Notes, means the principal amount due on the
Stated Maturity as shown on such debt security.

     “Private Placement Legend” means the legend initially set forth on the Notes in the form set
forth in Section 2.02.

     “Public Equity Offering” means an underwritten primary public offering of Common Stock of the
Company or Grupo TFM pursuant to an effective registration statement under the Securities Act.

     “QIB” means a “qualified institutional buyer” as defined in Rule 144A.

     “Redemption Date,” when used with respect to any Note to be redeemed, means the date fixed for
such redemption by or pursuant to this indenture.

     “Redemption Price,” when used with respect to any Note to be redeemed, means the price at
which such Note is to be redeemed pursuant to this Indenture.

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     “Registrar” has the meaning provided in Section 2.04.

     “Registration Rights Agreement” means the Registration Rights Agreement, dated as of the
Closing Date, between the Company, Salomon Smith Barney Inc. and J.P. Morgan Securities Inc.

     “Registration Statement” means the Registration Statement as defined and described in the
Registration Rights Agreement.

     “Regular Record Date” for the interest payable on any interest Payment Date means the June 1
or December 1 (whether or not a Business Day), as the case may be, next preceding such Interest
Payment Date.

     “Regulation S” means Regulation S under the Securities Act.

     “Released Indebtedness” means, with respect to any Asset Sale, Indebtedness (i) which is owed
by the Company or any Restricted Subsidiary (the “Obligors”) prior to such Asset Sale, (ii) which
is assumed by the purchaser or any affiliate thereof in connection with such Asset Sale and (iii)
with respect to which the Obligors receive written unconditional releases from each creditor no
later than the closing date of such Asset Sale.

     “Responsible Officer,” when used with respect to the Trustee, means any vice president, any
assistant treasurer, any trust officer or assistant trust officer, or any other officer of the
Trustee in its Corporate Trust Department having direct responsibility for the administration of
this Indenture and also means, with respect to a particular corporate trust matter, any other
officer to whom such matter is referred because of his or her knowledge of and familiarity with the
particular subject and who shall have direct responsibility for the administration of this
Indenture.

     “Restricted Payments” has the meaning set forth in Section 4.04.

     “Restricted Subsidiary” means any Subsidiary of the Company other than an Unrestricted
Subsidiary.

     “Rule 144A” means Rule 144A under the Securities Act.

     “S&P” means Standard & Poor’s Ratings Group and its successors.

     “Securities Act” means the United States Securities Act of 1933, as amended.

     “Senior Secured Credit Facilities” means the credit agreement, dated as of June 23, 1997,
among the Company, Grupo TFM, the banks party thereto, Morgan Stanley Senior Funding, Inc., as
syndication agent and as arranger, The Chase Manhattan Bank, as administrative agent, and Merrill
Lynch Capital Corporation, as documentation agent, together with all other agreements, instruments
and documents executed or delivered pursuant thereto (including, without limitation, any guarantee
agreements and security documents), in each case as such agreements may be amended (including any
amendment and restatement thereof), supplemented, replaced or otherwise modified from time to time,
including any agreement

-17-

 

extending the maturity of, refinancing, replacing or otherwise restructuring (including
by way of adding Subsidiaries of the Company as additional borrowers or guarantors thereunder) all
or any portion of the Indebtedness under such agreement or any successor or replacement agreement
and whether by the same or any other agent, lender or group of lenders.

     “Shelf Registration Statement” has the meaning set forth in the Registration Rights Agreement.

     “Significant Subsidiary” means, at any date of determination, any Restricted Subsidiary of the
Company that, together with its Subsidiaries, (i) for the most recent fiscal year of the Company,
accounted for more than 10% of the consolidated revenues of the Company and its Restricted
Subsidiaries or (ii) as of the end of such fiscal year, was the owner of more than 10% of the
consolidated assets of the Company and those of its Restricted Subsidiaries, all as set forth on
the most recently available consolidated financial statements of the Company for such fiscal year.

     “Stated Maturity” means (i) with respect to any debt security, the date specified in such debt
security as the fixed date on which the final installment of principal of such debt security is due
and payable and (ii) with respect to any scheduled installment of principal of or interest on any
debt security, the date specified in such debt security as the fixed date on which such installment
is due and payable.

     “Subsidiary” means, with respect to any Person, any corporation, association or other business
entity of which more than 50% of the voting power of the outstanding Voting Stock is owned,
directly or indirectly, by such Person and one or more other Subsidiaries of such Person.

     “Temporary Cash Investment” means any of the following: (i) direct obligations of the United
States of America or any agency thereof or obligations fully and unconditionally guaranteed by the
United States of America or any agency thereof, (ii) time deposit accounts, certificates of deposit
and money market deposits denominated and payable in U.S. dollars maturing within 180 days of the
date of acquisition thereof issued by a bank or trust company which is organized under the laws of
the United States of America, any state thereof or any foreign country recognized by the United
States of America, and which bank or trust company has capital, surplus and undivided profits
aggregating in excess of $200 million (or the foreign currency equivalent thereof) and has
outstanding debt which is rated “A” (or such similar equivalent rating) or higher by S&P or Moody’s
or any money-market fund denominated and payable in U.S. dollars sponsored by a registered broker
dealer or mutual fund distributor, (iii) repurchase obligations with a term of not more than 30
days for underlying securities of the types described in clause (i) above entered into with a bank
meeting the qualifications described in clause (ii) above, (iv) commercial paper denominated and
payable in U.S. dollars, maturing not more than 90 days after the date of acquisition, issued by a
corporation (other than an Affiliate of the Company) organized and in existence under the laws of
the United States of America or any state thereof with a rating at the time as of which any
investment therein is made of “P-1” (or higher) according to Moody’s or “A-1” (or higher) according
to S&P, (v) securities with maturities of six months or less from the date of acquisition issued or
fully and unconditionally guaranteed by any state, commonwealth or territory of the United States
of

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America, or by any political subdivision or taxing authority thereof, and rated at
least “A” by S&P or Moody’s, (vi) Certificados de la Tesoreria de la Federacion (Cetes) or Bonos de
Desarrollo del Gobierno Federal (Bondes) issued by the Mexican government and maturing not more
than 180 days after the acquisition thereof, (vii) Investments in money market funds substantially
all of whose assets are comprised of securities of the types described in clauses (i) through (vi)
above, (viii) demand deposit accounts with U.S. banks (or Mexican banks specified in clause (ix) of
this definition) maintained in the ordinary course of business; and (ix) certificates of deposit,
bank promissory notes and bankers’ acceptances denominated in pesos, maturing not more than 180
days after the acquisition thereof and issued or guaranteed by any one of the five largest banks
(based on assets as of the immediately preceding December 31) organized under the laws of Mexico
and which are not under intervention or controlled by the Instituto para la Proteccion al Ahorro
Bancario or any successor thereto.

     “Tex-Mex Railway” means the Texas Mexican Railway Company, a Texas corporation, and its
successors.

     “TIA” or “Trust Indenture Act” means the Trust Indenture Act of 1939, as amended (15 U.S. Code
Sections 77aaa-77bbb), as in effect on the date this Indenture was executed, except as provided in
Section 9.06.

     “TMM” means Transportacion Maritima Mexicana, S.A. de C.V., a sociedad anonima de capital
variable organized under the laws of Mexico, and its successors and assigns.

     “Trade Payables” means, with respect to any Person, any accounts payable or any other
indebtedness or monetary obligation to trade creditors created, assumed or Guaranteed by such
Person or any of its Subsidiaries arising in the ordinary course of business in connection with the
acquisition of goods or services.

     “Transaction Date” means, with respect to the Incurrence of any Indebtedness by the Company or
any of its Restricted Subsidiaries, the date such Indebtedness is to be Incurred and, with respect
to any Restricted Payment, the date such Restricted Payment is to be made.

     “Trustee” means the party named as such in the first paragraph of this Indenture until a
successor replaces it in accordance with the provisions of Article Seven of this Indenture and
thereafter means such successor.

     “United States Bankruptcy Code” means the Bankruptcy Reform Act of 1978, as amended and as
codified in Title 11 of the United States Code, as amended from time to time hereafter, or any
successor federal bankruptcy law.

     “Unrestricted Subsidiary” means (i) any Subsidiary of the Company that at the time of
determination shall be designated an Unrestricted Subsidiary by the Board of Directors in the
manner provided below and (ii) any Subsidiary of an Unrestricted Subsidiary. The Board of Directors
of the Company may designate any Restricted Subsidiary (including any newly acquired or newly
formed Subsidiary of the Company) to be an Unrestricted Subsidiary unless such Subsidiary owns any
Capital Stock of, or owns or holds any Lien on any property of, the Company or any Restricted
Subsidiary; provided that (A) any Guarantee by the Company or any Restricted Subsidiary of any
Indebtedness of the Subsidiary being so designated shall be deemed

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an “Incurrence” of such Indebtedness and an “Investment” by the Company or such
Restricted Subsidiary (or both, if applicable) at the time of such designation; (B) either (I) the
Subsidiary to be so designated has total assets of $1,000 or less or (II) if such Subsidiary has
assets greater than $1,000, such designation would be permitted under Section 4.04; and (C) if
applicable, the Incurrence of Indebtedness and the Investment referred to in clause (A) of this
proviso would be permitted under Section 4.03 and Section 4.04. The Board of Directors may
designate any Unrestricted Subsidiary to be a Restricted Subsidiary; provided that (x) all Liens
and Indebtedness of such Unrestricted Subsidiary outstanding immediately after such designation
would, if Incurred at such time, have been permitted to be Incurred for all purposes of this
Indenture and (y) no Default or Event of Default shall have occurred and be continuing at the time
of or immediately after giving effect to such designation. Any such designation by the Board of
Directors shall be evidenced to the Trustee by promptly filing with such
Trustee a copy of the Board Resolution giving effect to such designation and an Officers’
Certificate certifying that such designation complied with the foregoing provisions.

     “U.S. Global Notes” has the meaning provided in Section 2.01.

     “U.S. Person” has the meaning ascribed thereto in Rule 902 under the Securities Act.

     “U.S. Physical Notes” has the meaning provided in Section 2.01.

     “Voting Stock” means with respect to any Person, Capital Stock of any class or kind ordinarily
having the power to vote for the election of directors, managers or other voting members of the
governing body of such Person, excluding, however, Series L shares of Grupo TFM and Class III
Series A shares and Class III Series B shares of the Company owned by Mexico as of the Acquisition
Date and any class or kind of Capital Stock which has limited or restricted voting rights (i.e.,
having the power to vote for the election of a minority of the directors, managers or other voting
members of the governing body of such Person) under the by-laws of such Person or under Mexican
law.

     “Wholly Owned” means, with respect to any Subsidiary of any Person, the ownership of all of
the outstanding Capital Stock of such Subsidiary (other than any director’s qualifying shares or
Investments by foreign nationals mandated by applicable law) by such Person or one or more Wholly
Owned Subsidiaries of such Person.

     SECTION 1.02. Incorporation by Reference of Trust Indenture Act. Whenever this Indenture
refers to a provision of the TIA, the provision is incorporated by reference in and made a part of
this Indenture.The following TIA terms used in this Indenture have the following meanings:

     “indenture securities” means the Notes;

     “indenture security holder” means a Holder or a Noteholder;

     “indenture to be qualified” means this Indenture;

     “indenture trustee” or “institutional trustee” means the Trustee; and

-20-

 

“obligor” on the indenture securities means the Company or any other
obligor on the Notes.

     All other TIA terms used in this Indenture that are defined by the TIA, defined by TIA
reference to another statute or defined by a rule of the Commission and not otherwise defined
herein have the meanings assigned to them therein.

     SECTION 1.03. Rules of Construction. Unless the context otherwise requires:

     (i) a term has the meaning assigned to it:

     (ii) an accounting term not otherwise defined has the meaning assigned to it in
accordance with IAS;

     (iii) “or” is not exclusive;

     (iv) words in the singular include the plural, and words in the plural include the
singular;

     (v) provisions apply to successive events and transactions;

     (vi) “herein,” “hereof” and other words of similar import refer to this Indenture as
a whole and not to any particular Article, Section or other subdivision; and

     (vii) all references to Sections or Articles refer to Sections or Articles of this
Indenture unless otherwise indicated.

ARTICLE TWO

THE NOTES

     SECTION 2.01. Form and Dating. The Notes and the Trustee’s certificate of authentication
shall be substantially in the form annexed hereto as Exhibit A. The Notes may have such
appropriate insertions, omissions, substitutions and other variations as are required or permitted
by this Indenture and may have letters, notations, legends or endorsements required by law, stock
exchange agreements to which the Company is subject or usage. Any portion of the text of any Note
may be set forth on the reverse thereof, with an appropriate reference thereto on the face of the
Note. The Company shall approve the form of the Notes and any notation, legend or endorsement on
the Notes. Each Note shall be dated the date of its authentication.

     The terms and provisions contained in the form of the Notes annexed hereto as Exhibit A shall
constitute, and are hereby expressly made, a part of this Indenture. Each of the Company, the
Trustee and the Paying Agent, by its execution and delivery of this Indenture, expressly agrees to
the terms and provisions of the Notes applicable to it and to be bound thereby.

     Notes offered and sold in reliance on Rule 144A shall be issued in the form of one or more
permanent global Notes in registered form, substantially in the form set forth in Exhibit

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A (the “U.S. Global Notes”), deposited with the Trustee, as custodian for the
Depositary, duly executed by the Company and authenticated by the Trustee as hereinafter provided.
The aggregate principal amount of the U.S. Global Notes may from time to time be increased or
decreased by adjustments made on the records of the Trustee, as custodian for the Depositary or its
nominee, as hereinafter provided.

     Notes offered and sold in offshore transactions in reliance on Regulation S shall be issued
initially in the form of one or more global Notes in registered form substantially in the form set
forth in Exhibit A (the “Offshore Global Notes”), registered in the name of the nominee of the
Depositary, deposited with the Trustee, as custodian for the Depositary, duly executed by the
Company and authenticated by the Trustee as hereinafter provided. The aggregate principal amount of
the Offshore Global Notes may from time to time be increased or decreased by adjustments made in
the records of the Trustee, as custodian for the Depositary or its nominee, as herein provided.

     Notes which are offered and sold to Institutional Accredited Investors which are not QIBs
(other than in offshore transactions in reliance on Regulation S) shall be issued in the form of
permanent certificated Notes in registered form in substantially the form set forth in Exhibit A
(the “U.S. Physical Notes”). Notes issued pursuant to Section 2.07 in exchange for interests in the
U.S. Global Notes or the Offshore Global Notes shall be in the form of U.S. Physical Notes or in
the form of permanent certificated Notes in registered form substantially in the form set forth in
Exhibit A (the “Offshore Physical Notes”), respectively.

     The Offshore Physical Notes and U.S. Physical Notes are sometimes collectively herein referred
to as the “Physical Notes.” The U.S. Global Notes and the Offshore Global Notes are sometimes
referred to as the “Global Notes.”

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

     SECTION 2.02. Restrictive Legends. (a) Unless and until a Note is exchanged for an
Exchange Note in connection with an effective Registration Statement pursuant to the Registration
Rights Agreement, the U.S. Global Notes and each U.S. Physical Note shall bear the legend set
forth below on the face thereof:

THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933,
AS AMENDED (THE “SECURITIES ACT”), AND THESE SECURITIES MAY NOT BE OFFERED, SOLD, PLEDGED OR
OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF
THE SECURITIES ACT OR OUTSIDE THE UNITED STATES IN COMPLIANCE WITH REGULATIONS S UNDER THE
SECURITIES ACT AND, IN EACH CASE, IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY
STATE OF THE UNITED STATES OR ANY OTHER JURISDICTION.

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          (b) Each Global Note, whether or not an Exchange Note, shall also bear the
following legend on the face thereof:

UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY
NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY
AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY OR SUCH OTHER REPRESENTATIVE
OF THE DEPOSITORY TRUST COMPANY OR SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (AND ANY PAYMENT HEREON IS MADE TO CEDE & CO.
OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY
PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

TRANSFERS OF THIS GLOBAL NOTE SHALL BE LIMITED TO TRANSFERS IN WHOLE,BUT NOT IN PART, TO
NOMINEES OF CEDE & CO. OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF
PORTIONS OF THIS GLOBAL NOTE SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE
RESTRICTIONS SET FORTH IN SECTION 2.08 OF THE INDENTURE.

          SECTION 2.03. Execution, Authentication and Denominations. Two Officers shall execute the
Notes for the Company by facsimile or manual signature in the name and on behalf of the Company.

          If an Officer whose signature is on a Note no longer holds that office at the time the Trustee
or authenticating agent authenticates the Note, the Note shall be valid nevertheless.

          A Note shall not be valid until the Trustee or authenticating agent manually signs the
certificate of authentication on the Note. The signature shall be conclusive evidence that the Note
has been authenticated under this Indenture.

          The Trustee or an authenticating agent shall upon receipt of a Company Order authenticate for
original issue Notes in the aggregate principal amount of up to U.S. $180,000,000, plus any
Exchange Notes that may be issued pursuant to the Registration Rights Agreement or Add On Note
issued hereunder; provided that the Trustee shall receive an Officers’ Certificate and an Opinion
of Counsel of the Company in connection with such authentication of Notes. The Opinion of Counsel
shall be to the effect that:

     (a) the form and terms of such Notes have been established by or pursuant to a Board
Resolution or an indenture supplemental hereto in conformity with the provisions of this
Indenture;

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     (b) such supplemental indenture, if any, when executed and delivered
by the Company, the Trustee and the Paying Agent, will constitute a valid and binding
obligation of the Company;

     (c) such Notes, when authenticated and delivered by the Trustee and issued by the
Company in the manner and subject to any conditions specified in such Opinion of Counsel, will
constitute valid and binding obligations of the Company in accordance with their terms and
will be entitled to the benefits of this Indenture, subject to bankruptcy, insolvency,
fraudulent transfer, reorganization, moratorium and similar laws of general applicability
relating to or affecting creditors’ rights and to general equity principles; and

     (d) the Company has been duly incorporated in, and is a validly existing corporation
under the laws of Mexico or the United States.

          Such Company Order shall specify the amount of Notes to be authenticated and the date on which
the original issue of Notes is to be authenticated. The aggregate principal amount of Notes
outstanding at any time may not exceed the amount set forth above except for Notes authenticated
and delivered upon registration of transfer of, or in exchange for, or in lieu of, other Notes
pursuant to Section 2.06, 2.09, 2.10 or 2.11.

          The Trustee may appoint an authenticating agent to authenticate Notes. An authenticating agent
may authenticate Notes whenever the Trustee may do so. Each reference in this Indenture to
authentication by the Trustee includes authentication by such authenticating agent. An
authenticating agent has the same rights as an Agent to deal with the Company or an Affiliate of
the Company.

          The Notes shall be issuable only in registered form without coupons and only in denominations
of U.S.$100 in principal amount and any integral multiple of U.S.$100 in excess thereof.

          SECTION 2.04. Registrar and Paying Agent. The Company shall maintain an office or agency
where Notes may be presented for registration of transfer or for exchange (the “Registrar”), an
office or agency where Notes may be presented for payment (the “Paying Agents”) and an office or
agency where notices and demands to or upon the Company in respect of the Notes and this Indenture
may be served, which shall be in the Borough of Manhattan, the City of New York and any other
jurisdiction where the Company deems necessary or appropriate. The Company shall cause the
Registrar acting as agent of the Company to keep a register of the Notes and of their transfer and
exchange (the “Note Register”). The Company may have one or more co-Registrars and one or more
additional Paying Agents.

          The Company shall enter into an appropriate agency agreement with any Agent not a party to
this Indenture. The agreement shall implement the provisions of this Indenture that relate to such
Agent. The Company shall give prompt written notice to the Trustee of
the name and address of any such Agent and any change in the address of such Agent. If the Company
fails to maintain a Registrar, Paying Agent and/or agent for service of notices and demands, the
Trustee shall act as such Registrar, Paying Agent and/or agent for service of notices and demands
for so long as such failure shall continue. The Company may remove any Agent upon written

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notice to such Agent and the Trustee; provided that no such removal shall become
effective until (i) the acceptance of an appointment by a successor Agent to such Agent as
evidenced by an appropriate agency agreement entered into by the Company and such successor Agent
and delivered to the Trustee or (ii) notification to the Trustee that the Trustee shall serve as
such Agent until the appointment of a successor Agent in accordance with clause (i) of this
proviso. The Company, any Subsidiary of the Company, or any Affiliate of any of them may act as
Paying Agent, Registrar or co-Registrar, and/or agent for service of notices and demands; provided,
however, that neither the Company, a Subsidiary of the Company nor an Affiliate of any of them
shall act as Paying Agent in connection with the defeasance of the Notes or the discharge of this
Indenture under Article Eight.

     The Company initially appoints the Trustee as Registrar, Paying Agent, authenticating agent
and agent for service of notices and demands. If, at any time, the Trustee is not the Registrar,
the Registrar shall make available to the Trustee on or before each Interest Payment Date and at
such other times as the Trustee may reasonably request, the names and addresses of the Holders as
they appear in the Note Register.

     SECTION 2.05. Paying Agent to Hold Money in Trust. Not later than 12:00 noon, New York
City time, on each due date of the principal, premium, if any, and interest on any Notes, the
Company shall deposit with the Paying Agent money in immediately available funds sufficient to pay
such principal, premium, if any, and interest so becoming due. The Company shall require each
Paying Agent, if any, other than the Trustee to agree in writing that such Paying Agent shall hold
in trust for the benefit of the Holders or the Trustee all money held by the Paying Agent for the
payment of principal of, premium, if any, and interest on the Notes (whether such money has been
paid to it by the Company or any other obligor on the Notes), and that such Paying Agent shall
promptly notify the Trustee of any default by the Company (or any other obligor on the Notes) in
making any such payment. The Company at any time may require a Paying Agent to pay all money held
by it to the Trustee and account for any funds disbursed, and the Trustee may at any time during
the continuance of any payment default, upon written request to a Paying Agent, require such Paying
Agent to pay all money held by it to the Trustee and to account for any funds disbursed. Upon doing
so, the Paying Agent shall have no further liability for the money so paid over to the Trustee. If
the Company or any Subsidiary of the Company or any Affiliate of any of them acts as Paying Agent,
it will, on or before each due date of any principal of, premium, if any, or interest on the Notes,
segregate and hold in a separate trust fund for the benefit of the Holders a sum of money
sufficient to pay such principal, premium, if any, or interest so becoming due until such sum of
money shall be paid to such Holders or otherwise disposed of as provided in this
Indenture, and will promptly notify the Trustee of its action or failure to act as required by this
Section 2.05.

     SECTION 2.06. Transfer and Exchange. The Notes are issuable only in registered form. A
Holder may transfer a Note by written application to the Registrar stating the name of the proposed
transferee and otherwise complying with the terms of this Indenture. No such transfer shall be
effected until, and such transferee shall succeed to the rights of a Holder only upon, registration
of the transfer by the Registrar in the Note Register. Prior to the registration of any transfer by
a Holder as provided herein, the Company, the Trustee and any agent of the Company shall treat the
person in whose name the Note is registered as the owner thereof for all purposes whether or not
the Note shall be overdue, and neither the Company, the

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Trustee nor any such agent shall be affected by notice to the contrary. Furthermore,
any Holder of a Global Note shall, by acceptance of such Global Note, agree that transfers of
beneficial interests in such Global Note may be effected only through a book-entry system
maintained by the Depositary (or its agent), and that ownership of a beneficial interest in the
Note shall be required to be reflected in a book entry. When Notes are presented to the Registrar
or a co-Registrar with a request to register the transfer or to exchange them for an equal
principal amount of Notes of other authorized denominations (including an exchange of Notes for
Exchange Notes), the Registrar shall register the transfer or make the exchange as requested if its
requirements for such transactions are met; provided that no exchanges of Notes for Exchange Notes
shall occur until a Registration Statement shall have been declared effective by the Commission and
that any Notes that are exchanged for Exchange Notes shall be cancelled by the Trustee. To permit
registrations of transfers and exchanges in accordance with the terms, conditions and restrictions
hereof, the Company shall execute and the Trustee shall authenticate Notes at the Registrar’s
request. No service charge shall be made to any Holder for any registration of transfer or exchange
or redemption of the Notes, but the Company may require payment of a sum sufficient to cover any
transfer tax or similar governmental charge payable in connection therewith (other than any such
transfer taxes or other similar governmental charge payable upon transfers, exchanges or
redemptions pursuant to Section 2.11, 3.08. 4.11, 4.12 or 9.04).

     The Registrar shall not be required (i) to issue, register the transfer of or exchange any
Note during a period beginning at the opening of business 15 days before the day of the mailing of
a notice of redemption of Notes selected for redemption under Section 3.03 or Section 3.09 and
ending at the close of business on the day of such mailing or (ii) to register the transfer of or
exchange any Note so selected for redemption in whole or in part, except the unredeemed portion of
any Note being redeemed in part.

     SECTION 2.07. Book-Entry Provisions for Global Notes. (a) The U.S. Global Notes and
Offshore Global Notes initially shall (i) be registered in the name of the Depositary for such
Global Notes or the nominee of such Depositary, (ii) be delivered to the Trustee as custodian for
such Depositary and (iii) bear legends as set forth in Section 2.02.

     Members of, or participants in, the Depositary (“Agent Members”) shall have no rights under
this Indenture with respect to any Global Note held on their behalf by the Depositary, or the
Trustee as its custodian, or under any Global Note, and the Depositary may be treated by the
Company, the Trustee and any agent of the Company or the Trustee as the absolute owner of such
Global Note for all purposes whatsoever. Notwithstanding the foregoing, nothing herein shall
prevent the Company, the Trustee or any agent of the Company or the Trustee from giving effect to
any written certification, proxy or other authorization furnished by the Depositary or impair, as
between the Depositary and its Agent Members, the operation of customary practices governing the
exercise of the rights of a beneficial owner of any Note.

     (b) Transfers of a Global Note shall be limited to transfers of such Global Note in whole,
but not in part, to the Depositary, its successors or their respective nominees. Interests of
beneficial owners in a Global Note may be transferred in accordance with the applicable rules and
procedures of the Depositary and the provisions of Section 2.08. In addition, U.S. Physical Notes
and Offshore Physical Notes shall be transferred to all beneficial

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owners in exchange for their beneficial interests in the U.S. Global Notes or the
Offshore Global Notes, respectively, if (i) the Depositary notifies the Company that it is
unwilling or unable to continue as Depositary for the U.S. Global Notes or the Offshore Global
Notes, as the case may be, and a successor depositary is not appointed by the Company within 90
days of such notice or (ii) an Event of Default has occurred and is continuing and the Registrar
has received a request to the foregoing effect from the Depositary.

     (c) Any beneficial interest in one of the Global Notes that is transferred to a person who
takes delivery in the form of an interest in the other Global Note will, upon transfer, cease to be
an interest in such Global Note and become an interest in the other Global Note and, accordingly,
will thereafter be subject to all transfer restrictions, if any, and other procedures applicable to
beneficial interests in such other Global Note for as long as it remains such an interest.

     (d) In connection with any transfer pursuant to paragraph (b) of this Section of a portion
of the beneficial interests in the U.S. Global Notes to beneficial owners who are required to hold
U.S. Physical Notes, the Registrar shall reflect on its books and records the date and a decrease
in the principal amount of the U.S. Global Notes in an amount equal to the principal amount of the
beneficial interest in the U.S. Global Notes to be transferred, and the Company shall execute, and
the Trustee shall authenticate and deliver, one or more U.S. Physical Notes of like tenor and
amount.

     (e) In connection with the transfer of the entire U.S. Global Notes or Offshore Global
Notes to beneficial owners pursuant to paragraph (b) of this Section, the U.S. Global Notes or
Offshore Global Notes, as the case may be, shall be deemed to be surrendered to the Trustee for
cancellation, and the Company shall execute, and the
Trustee shall authenticate and deliver, to each beneficial owner identified by the Depositary in
exchange for its beneficial interest in the U.S. Global Notes or Offshore Global Notes, as the case
may be, an equal aggregate principal amount of U.S. Physical Notes or Offshore Physical Notes, as
the case may be, of authorized denominations.

     (f) Any U.S. Physical Note delivered in exchange for an interest in the U.S. Global Notes
pursuant to paragraph (b) or (d) of this Section shall, except as otherwise provided by paragraph
(f)(i)(x) and paragraph (f) of Section 2.08, bear the legend regarding transfer restrictions
applicable to the U.S. Physical Note set forth in Section 2.02.

     (g) Any Offshore Physical Note delivered in exchange for an interest in the Offshore
Global Notes pursuant to paragraph (b) of this Section shall, except as otherwise provided by
paragraph (e) of Section 2.08, bear the legend regarding transfer restrictions applicable to the
Offshore Physical Note set forth in Section 2.02.

     (h) The registered holder of a Global Note may grant proxies and otherwise authorize any
person, including Agent Members and persons that may hold interests through Agent Members, to take
any action which a Holder is entitled to take under this Indenture or the Notes.

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          (i) QIBs that are beneficial owners of interests in a Global Note may
receive Physical Notes (which shall bear the Private Placement Legend if required by Section 2.02)
in accordance with the procedures of the Depositary; in connection with the execution,
authentication and delivery of such Physical Notes, the Registrar shall reflect on its books and
records a decrease in the principal amount of the relevant Global Note equal to the principal
amount of such Physical Notes and the Company shall execute and the Trustee shall authenticate and
deliver one or more Physical Notes having an equal aggregate principal amount.

          SECTION 2.08. Special Transfer Provisions. Unless and until a Note is exchanged for an
Exchange Note in connection with an effective Registration Statement pursuant to the Registration
Rights Agreement, the following provisions shall apply:

     (a) Transfers to QIBs. The following provisions shall apply with respect to the
registration of any proposed transfer of a U.S. Physical Note or an interest in the U.S.
Global Notes to a QIB (excluding transfers outside the United States in compliance with
Regulation S):

          (i) If the Note to be transferred consists of (x) U.S. Physical Notes, the
Registrar shall register the transfer if such transfer is being made by a proposed
transferor who has checked the box provided for on the form of Note stating, or has
otherwise advised the Company and the Registrar in writing, that the sale has
been made in compliance with the provisions of Rule 144A to a transferee who has signed
the certification provided for on the form of Note stating, or has otherwise advised the
Company and the Registrar in writing, that it is purchasing the Note for
its own account or an account with respect to which it exercises sole investment
discretion and that it and any such account is a QIB within the meaning of Rule 144A, and
is aware that the sale to it is being made in reliance on Rule 144A and acknowledges that
it has received such information regarding the Company as it has requested
pursuant to Rule 144A or has determined not to request such information and that it is
aware that the transferor is relying upon its foregoing representations in order to claim
the exemption from registration provided by Rule 144A or (y) an interest in the U.S.
Global Notes, the transfer of such interest may be effected only through the book-entry
system maintained by the Depositary.

          (ii) If the proposed transferor is an Agent Member, and the Note to be
transferred consists of U.S. Physical Notes, upon receipt by the Registrar of the
documents referred to in clause (i) and instructions given in accordance with the
Depositary’s and the Registrar’s procedures, the Registrar shall reflect on its books and
records the date and an increase in the principal amount of the U.S. Global Notes
in an amount equal to the principal amount of the U.S. Physical Notes to be transferred,
and the Trustee shall cancel the Physical Note so transferred.

     (b) Transfers of Interests in the Permanent Offshore Global Notes or Offshore
Physical Notes. With respect to any transfer of interests in the Offshore Global Notes or

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Offshore Physical Notes to U.S. Persons, the Registrar shall register the transfer of
any such Note without requiring any additional certification.

     (c) Transfers Outside the United States in Compliance With Regulation S at Any Time.
The following provisions shall apply with respect to any transfer of a U.S. Physical Note or
an interest in the U.S. Global Notes outside the United States in compliance with Regulation
S:

          (i) The Registrar shall register any proposed transfer of a Note outside the
United States in compliance with Regulation S only upon receipt of a certificate
substantially in the form of Exhibit C from the proposed transferor.

          (ii) (A) If the proposed transferor is an Agent Member holding a beneficial
interest in the U.S. Global Notes, upon receipt by the Registrar of (x) the documents
required by paragraph (i) and (y) instructions in accordance with the Depositary’s and the
Registrar’s procedures, the Registrar shall reflect on its books and records the
date and a decrease in the principal amount of the U.S. Global Notes in an amount equal to
the principal amount of the beneficial interest in the U.S. Global Notes to be
transferred, and (B) if the proposed transferee is an Agent Member, upon receipt by
the Registrar of instructions given in accordance with the Depositary’s and the
Registrar’s procedures, the Registrar shall reflect on its books and records the date and
an increase in the principal amount of the Offshore Global Notes in an amount equal to
the principal amount of the U.S. Physical Notes or the
U.S. Global Notes, as the case may be, to be transferred, and the Trustee shall
cancel the Physical Note, if any, so transferred or decrease the amount of the U.S. Global
Notes.

     (d) Transfers to Non-QIB Institutional Accredited Investors. The following provisions
shall apply with respect to the registration of any proposed transfer of a U.S. Physical Note
or an interest in the U.S. Global Notes to any Institutional Accredited Investor which is not
a QIB (excluding transfers outside the United States in reliance on Regulation S):

          (i) The Registrar shall register the transfer of any Note, whether or not such
Note bears the Private Placement Legend, if (x) the requested transfer is after the time
period referred to in Rule 144(k) under the Securities Act as in effect with respect to
such transfer or (y) the proposed transferee has delivered to the Registrar (A) a
certificate substantially in the form of Exhibit D hereto and (B) if the aggregate
principal amount of the Notes being transferred is less than U.S.$250,000 at the time of
such transfer, an Opinion of Counsel acceptable to the Company that such transfer is
in compliance with the Securities Act.

          (ii) If the proposed transferor is an Agent Member holding a beneficial interest
in the U.S. Global Notes, upon receipt by the Registrar of (x) the documents, if any,
required by paragraph (i) and (y) instructions given in accordance with the Depositary’s
and the Registrar’s procedures, the Registrar shall reflect on its books and
records the date and a decrease in the principal

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amount of the U.S. Global Notes in an amount equal to the principal
amount of the beneficial interest in the U.S. Global Notes to be transferred, and the
Company shall execute, and the Trustee shall authenticate and deliver, one or more U.S.
Physical Notes of like tenor and amount.

     (e) Private Placement Legend. Upon the transfer, exchange or replacement of Notes not
bearing the Private Placement Legend, the Registrar shall deliver Notes that do not bear the
Private Placement Legend. Upon the transfer, exchange or replacement of Notes bearing the
Private Placement Legend, the Registrar shall deliver only Notes that bear the Private
Placement Legend unless either (i) the circumstances contemplated by the fourth paragraph of
Section 2.01 or paragraph (d)(7) or (e)(i)(x) of this Section 2.08 exist or (ii) there is
delivered to the Registrar an Opinion of Counsel reasonably satisfactory to the Company and
the Trustee to the effect that neither such legend nor the related restrictions on transfer
are required in order to maintain compliance with the provisions of the Securities Act.

     (f) General. By its acceptance of any Note bearing the Private Placement Legend, each
Holder of such a Note acknowledges the restrictions on transfer of such Note set forth in this
Indenture and in the Private Placement Legend and agrees that it will transfer such Note only
as provided in this Indenture. The Registrar shall not register a transfer of any Note
unless such transfer complies with the restrictions on
transfer of such Note set forth in this Indenture. In connection with any transfer of Notes
to a Person that is not a QIB, each Holder agrees by its acceptance of the Notes to furnish
the Registrar or the Company such certifications, legal opinions or other information as
either of them may reasonably require to confirm that such transfer is being made pursuant to
an exemption from, or a transaction not subject to, the registration requirements of the
Securities Act; provided that the Registrar shall not be required to determine (but may rely
on a determination made by the Company with respect to) the sufficiency of any such
certifications, legal opinions or other information.

          The Registrar shall retain copies of all letters, notices and other written communications
received pursuant to Section 2.07 or this Section 2.08. The Company shall have the right to inspect
and make copies of all such letters, notices or other written communications at any reasonable time
upon the giving of reasonable written notice to the Registrar.

          SECTION 2.09. Replacement Notes. If a mutilated Note is surrendered to the Trustee or if
the Holder claims that the Note has been lost, destroyed or wrongfully taken, the Company shall
issue and the Trustee shall authenticate a replacement Note of like tenor and principal amount and
bearing a number not contemporaneously outstanding; provided that the requirements of the second
paragraph of Section 2.10 are met. If required by the Trustee or the Company, an indemnity bond
must be furnished that is sufficient in the judgment of both the Trustee and the Company to protect
the Company, the Trustee or any Agent from any loss that any of them may suffer if a Note is
replaced. The Company may charge such Holder for its expenses and the expenses of the Trustee in
replacing a Note. In case any such mutilated, lost, destroyed or wrongfully taken Note has become
or is about to become due and payable, the Company in its discretion may pay such Note instead of
issuing a new Note in replacement thereof.

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     Every replacement Note is an additional obligation of the Company and shall be
entitled to the benefits of this Indenture.

     SECTION 2.10. Outstanding Notes. Notes outstanding at any time are all Notes that have
been authenticated by the Trustee except for those cancelled by it, those delivered to it for
cancellation and those described in this Section 2.10 as not outstanding.

     If a Note is replaced pursuant to Section 2.09, it ceases to be outstanding unless and until
the Trustee and the Company receive proof reasonably satisfactory to them that the replaced Note is
held by a bona fide purchaser.

     If the Paying Agent (other than the Company or an Affiliate of the Company) holds on the
maturity date money sufficient to pay Notes payable on that date, then on and after that date such
Notes cease to be outstanding and interest on them shall cease to accrue.

     A Note does not cease to be outstanding because the Company or one of its Affiliates holds
such Note, provided, however, that, in determining whether the Holders
of the requisite principal amount of the outstanding Notes have given any request, demand,
authorization, direction, notice, consent or waiver hereunder, Notes owned by the Company or any
other obligor upon the Notes or any Affiliate of the Company or of such other obligor shall be
disregarded and deemed not to be outstanding, except that, in determining whether the Trustee shall
be protected in relying upon any such request, demand, authorization, direction, notice, consent or
waiver, only Notes which the Responsible Officer Trustee actually knows to be so owned shall be so
disregarded. Notes so owned which have been pledged in good faith may be regarded as outstanding if
the pledgee establishes to the satisfaction of the Trustee the pledgee’s right so to act with
respect to such Notes and that the pledgee is not the Company or any other obligor upon the Notes
or any Affiliate of the Company or of such other obligor.

     SECTION 2.11. Temporary Notes. Until definitive Notes are ready for delivery, the Company
may prepare and the Trustee shall authenticate temporary Notes. Temporary Notes shall be
substantially in the form of definitive Notes but may have insertions, substitutions, omissions and
other variations determined to be appropriate by the Officers executing the temporary Notes, as
evidenced by their execution of such temporary Notes. If temporary Notes are issued, the Company
will cause definitive Notes to be prepared without unreasonable delay. After the preparation of
definitive Notes, the temporary Notes shall be exchangeable for definitive Notes upon surrender of
the temporary Notes at the office or agency of the Company designated for such purpose pursuant to
Section 4.02, without charge to the Holder. Upon surrender for cancellation of any one or more
temporary Notes the Company shall execute and the Trustee shall authenticate and deliver in
exchange therefor a like principal amount of definitive Notes of authorized denominations. Until so
exchanged, the temporary Notes shall be entitled to the same benefits under this Indenture as
definitive Notes.

     SECTION 2.12. Cancellation. The Company at any time may deliver to the Trustee for
cancellation any Notes previously authenticated and delivered hereunder which the Company may have
acquired in any manner whatsoever, and may deliver to the Trustee for cancellation any Notes
previously authenticated hereunder which the Company has not issued and sold. The Registrar and the
Paying Agent shall forward to the Trustee any Notes

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surrendered to them for transfer, exchange or payment. The Trustee shall cancel all
Notes surrendered for transfer, exchange, payment or cancellation and shall dispose of them in
accordance with its normal procedure. The Company shall not issue new Notes to replace Notes it has
paid in full or delivered to the Trustee for cancellation.

     SECTION 2.13. CUSIP Numbers. The Company in issuing the Notes may use “CUSIP,” “CINS” or
“ISIN” numbers (if then generally in use), and the Trustee shall use “CUSIP” numbers, “CINS” or
“ISIN” numbers, as the case may be, in notices of redemption or exchange as a convenience to
Holders; provided that any such notice shall state that no representation is made as to the
correctness of such numbers either as printed on the Notes or as contained in any notice of
redemption or exchange and that reliance
may be placed only on the other identification numbers printed on the Notes. The Company will
promptly notify the Trustee of any change in “CUSIP,” “CINS” or “ISIN” numbers for the Notes.

     SECTION 2.14. Defaulted Interest. If the Company defaults in a payment of interest on the
Notes, it shall pay, or shall deposit with the Paying Agent money in immediately available funds
sufficient to pay, the defaulted interest, plus (to the extent lawful) interest on the defaulted
interest, to the Persons who are Holders on a subsequent special record date. A special record
date, as used in this Section 2.14 with respect to the payment of any defaulted interest, shall
mean the 15th day next preceding the date fixed by the Company for the payment of defaulted
interest, whether or not such day is a Business Day. At least 15 days before the subsequent special
record date, the Company shall mail to each Holder and to the Trustee a notice that states the
subsequent special record date, the payment date and the amount of defaulted interest to be paid.

     SECTION 2.15. Issuance of Additional Notes.The Company may, subject to Article Four of
this Indenture, issue additional Notes under this Indenture. The Notes issued on the Closing Date
and any additional Notes subsequently issued shall be treated as a single class for all purposes
under this Indenture.

ARTICLE THREE

SECTION

     SECTION 3.01. Optional Redemption. The Notes will be redeemable, at the Company’s option,
in whole at any time or in whole or in part from time to time, on or after June 15, 2007 and prior
to maturity, upon not less than 30 nor more than 60 days’ prior notice mailed by first class mail
to each Holders’ last address as it appears in the Note Register, at the following Redemption
Prices (expressed in percentages of principal amount), plus accrued and unpaid interest, if any, to
the Redemption Date (subject to the right of Holders of record on the relevant Regular Record Date
that is on or prior to the Redemption Date to receive interest due on an Interest Payment Date), if
redeemed during the 12-month period commencing June 15, of the years set forth below:

	 	 	 	 	 
	Year	 	Redemption Price
	2007
	 	 	106.250	%
	2008
	 	 	104.167	%
	2009
	 	 	102.083	%
	2010
	 	 	100.000	%
	2011
	 	 	100.000	%
	2012
	 	 	100.000	%

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     SECTION 3.02. Redemption for Changes in Withholding Taxes. The Notes will
be subject to redemption, in whole but not in part, at the option of the Company at any time at
100% of their principal amount together with accrued interest thereon, if any, to the Redemption
Date, in the event the Company has become or would become obligated to pay, on the next date on
which any amount would be payable with respect to the Notes, any Additional Amounts in excess of
those attributable to a withholding tax rate of 4.9% as a result of a change in or amendment to the
laws (including any regulations or general rules promulgated thereunder) of Mexico (or any
political subdivision or taxing authority thereof or therein), or any change in or
amendment to any official position regarding the application, administration or interpretation of
such laws, regulations or general rules, including a holding of a court of competent jurisdiction,
which change or amendment is announced or becomes effective on or after June 6, 2002. The Company
shall not, however, have the right to redeem Notes from a Holder pursuant to this Section except to
the extent that it is obligated to pay Additional Amounts to such Holder that are greater than the
Additional Amounts that would be payable based on a Mexican withholding tax rate of 4.9%.

     SECTION 3.03. Notices to Trustee. If the Company elects to redeem Notes pursuant to
Section 3.02, it shall notify the Trustee in writing of the Redemption Date and the principal
amount of Notes to be redeemed.

     The Company shall give each notice provided for in this Section 3.03 in an Officers’
Certificate at least 60 days before the Redemption Date (unless a shorter period shall be
satisfactory to the Trustee).

     SECTION 3.04. Selection of Notes to Be Redeemed. If less than all of the Notes are to be
redeemed at any time, the Trustee shall select the Notes to be redeemed in compliance with the
requirements, as certified to it by the Company, of the principal national securities exchange, if
any, on which the Notes are listed or, if the Notes are not listed on a national securities
exchange, by lot or such other method as the Trustee in its sole discretion shall deem to be
appropriate; provided that no Notes of U.S.$100 in principal amount or less shall be redeemed in
part.

     The Trustee shall make the selection from the Notes outstanding and not previously called for
redemption. Notes in denominations of U.S.$100 in principal amount may only be redeemed in whole.
The Trustee may select for redemption portions (equal to U.S.$100 in principal amount or any
integral multiple thereof) of Notes that have denominations larger than U.S.$100 in principal
amount. Provisions of this Indenture that apply to Notes called for redemption also apply to
portions of Notes called for redemption. The Trustee shall notify the Company and the Registrar
promptly in writing of the Notes or portions of Notes to be called for redemption.

     SECTION 3.05. Add On Notes. The Company may, from time to time, subject to compliance with
any other applicable provisions of this Indenture, without the consent

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of the Holders, create and issue pursuant to this Indenture additional Notes (“Add On
Notes”) having terms and conditions identical to those of the other outstanding Notes, except that
Add On Notes:

     (i) may have a different issue date from other outstanding Notes;

     (ii) may have a different amount of interest payable on the first Interest
Payment Date after issuance than is payable on other outstanding Notes; and

     (iii) may have terms specified in the Add On Note Board Resolution or Add On Note
Supplemental Indenture for such Add On Notes making appropriate adjustments to this
Article 3 and Exhibit A (and related definitions) applicable to such Add On Notes in order
to conform to and ensure compliance with the Securities Act (or other applicable
securities laws) and any registration rights or similar agreement applicable to such Add
On Notes, which are not adverse in any material respect to the Holder of any outstanding
Notes (other than such Add On Notes).

     SECTION 3.06. Notice of Redemption. With respect to any redemption of Notes pursuant to
Section 3.02, at least 30 days but not more than 60 days before a Redemption Date, the Company
shall mail a notice of redemption by first class mail to each Holder whose Notes are to be
redeemed.

The notice shall identify the Notes to be redeemed and shall state:

     (i) the Redemption Date;

     (ii) the Redemption Price;

     (iii) the name and address of the Paying Agent;

     (iv) that Notes called for redemption must be surrendered to the Paying Agent in
order to collect the Redemption Price;

     (v) that, unless the Company defaults in making the redemption payment, interest
on Notes called for redemption ceases to accrue on and after the Redemption Date and the
only remaining right of the Holders is to receive payment of the Redemption Price plus
accrued interest to the Redemption Date upon surrender of the Notes to the Paying
Agent;

     (vi) that, if any Note is being redeemed in part, the portion of the principal
amount (equal to U.S.$100 in principal amount or any integral multiple thereof) of such
Note to be redeemed and that, on and after the Redemption Date, upon surrender of such
Note, a new Note or Notes in principal amount equal to the unredeemed portion
thereof will be reissued; and

     (vii) that, if any Note contains a CUSIP, CINS or ISIN number as provided in
Section 2.13, no representation is being made as to the correctness of the CUSIP, CINS or
ISIN number either as printed on the Notes or as contained in the notice of redemption

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and that reliance may be placed only on the other identification
numbers printed on the Notes.

     At the Company’s request (which request may be revoked by the Company at any time prior to the
time at which the Trustee shall have given such notice to the Holders), made in writing to the
Trustee at least 60 days (or such shorter period as shall be satisfactory to the Trustee) before a
Redemption Date, the Trustee shall give the notice of redemption in the name and at the expense of
the Company. If, however, the Company gives such notice to the Holders, the Company shall
concurrently deliver to the Trustee an Officers’ Certificate stating that such notice has been
given.

     SECTION 3.07. Effect of Notice of Redemption. Once notice of redemption is mailed, Notes
called for redemption become due and payable on the Redemption Date and at the Redemption Price.
Upon surrender of any Notes to the Paying Agent, such Notes shall be paid at the Redemption Price,
plus accrued interest, if any, to the Redemption Date.

     Notice of redemption shall be deemed to be given when mailed, whether or not the Holder
receives the notice, in any event, failure to give such notice, or any defect therein, shall not
affect the validity of the proceedings for the redemption of Notes held by Holders to whom such
notice was properly given.

     SECTION 3.08. Deposit of Redemption Price. Prior to 12:00 noon on any Redemption Date, the
Company shall deposit with the Paying Agent (or, if the Company is acting as its own Paying Agent,
shall segregate and hold in trust as provided in Section 2.05) money sufficient to pay the
Redemption Price of and accrued interest on all Notes to be redeemed on that date other than Notes
or portions thereof called for redemption on that date that have been delivered by the Company to
the Trustee for cancellation.

     SECTION 3.09. Payment of Notes Called for Redemption. If notice of redemption has been
given in the manner provided above, the Notes or portion of Notes specified in such notice to be
redeemed shall become due and payable on the Redemption Date at the Redemption Price stated
therein, together with accrued interest to such Redemption Date, and on and after such date (unless
the Company shall default in the payment of such Notes at the Redemption Price and accrued interest
to the Redemption Date, in which case the principal, until paid, shall bear interest from the
Redemption Date at the rate prescribed in the Notes), such Notes shall cease to accrue interest.
Upon surrender of any Note for redemption in accordance with a notice of redemption, such Note
shall be paid and redeemed by the Company at the Redemption Price, together with accrued interest,
if any, to the Redemption Date; provided that installments of interest whose Stated Maturity is on
or prior to the Redemption Date shall be payable to the Holders registered as such at the close of
business on the relevant Regular Record Date.

     SECTION 3.10. Notes Redeemed in Part. Upon surrender of any Note that is redeemed in part,
the Company shall execute and the Trustee shall authenticate and deliver to the Holder a new Note
equal in principal amount to the unredeemed portion of such surrendered Note.

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ARTICLE FOUR

COVENANTS

     SECTION 4.01. Payment of Notes. The Company shall pay the principal of, premium, if any,
and interest on the Notes on the dates and in the manner provided in the Notes and this indenture.
An installment of principal, premium, if any, or interest shall be considered paid on the date due
if the Trustee or Paying Agent (other than the Company, a Subsidiary of the Company, or any
Affiliate of any of them) holds on that date money designated for and sufficient to pay the
installment. If the Company or any Subsidiary of the Company or any Affiliate of any of them acts
as Paying Agent, an installment of principal, premium, if any, or interest shall be considered paid
on the due date if the entity acting as Paying Agent complies with the last sentence of Section
2.05. As provided in Section 6.09, upon any bankruptcy or reorganization procedure relative to the
Company, the Trustee shall serve as the Paying Agent and conversion agent, if any, for the Notes.

     The Company shall pay interest on overdue principal, premium, if any, and interest on overdue
installments of interest, to the extent lawful, at the rate per annum specified in the Notes.

     SECTION 4.02. Maintenance of Office or Agency. The Company will maintain an office or
agency where Notes may be surrendered for registration of transfer or exchange or for presentation
for payment and where notices and demands to or upon the Company in respect of the Notes and this
indenture may be served. The Company will give prompt written notice to the Trustee of the
location, and any change in the location, of such office or agency. If at any time the Company
shall fail to maintain any such required office or agency or shall fail to furnish the Trustee with
the address thereof, such presentations, surrenders, notices and demands may be made or served at
the address of the Trustee set forth in Section 13.02.

     The Company may also from time to time designate one or more other offices or agencies where
the Notes may be presented or surrendered for any or all such purposes and may from time to time
rescind such designations; provided that no such designation or rescission shall in any manner
relieve the Company of its obligation to maintain an office or agency in the Borough of Manhattan,
the City of New York for such purposes. The Company will give prompt written notice to the Trustee
of any such designation or rescission and of any change in the location of any such other office or
agency.

     The Company hereby initially designates the Corporate Trust Office of the Trustee, as such
office of the Company in accordance with Section 2.04.

     SECTION 4.03. Limitation on Indebtedness. The Company will not, and will not permit any of
its Restricted Subsidiaries to, Incur any Indebtedness (other than the Notes and Indebtedness
existing on the Closing Date); provided that the Company may Incur Indebtedness if, after giving
effect to the Incurrence of such Indebtedness and the receipt and application of the proceeds
therefrom, the Interest Coverage Ratio would be greater
than (i) if the Indebtedness is Incurred during the period beginning after the date upon which this
Indenture is

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executed and ending on October 31, 2003, 3.0:1 and (ii) if the Indebtedness is Incurred
thereafter, 2.5:1.

     Notwithstanding the foregoing, the Company and any of its Restricted Subsidiaries (except as
specified below) may Incur each and all of the following:

     (a) (i) Indebtedness outstanding at any time in an aggregate principal amount not to
exceed $50 million that is Incurred solely for the purpose of financing the cost of improvements or
construction related to the properties of Mexrail and the Texas Mexican Railway Company, the net
proceeds of which are applied to finance the cost of such improvements or construction; and

     (ii) Indebtedness owed:

     (A) to the Company evidenced by an unsubordinated promissory note or

     (B) to any of its Restricted Subsidiaries, provided that any event which results in
any such Restricted Subsidiary ceasing to be a Restricted Subsidiary or any subsequent
transfer of such Indebtedness (other than to the Company or another Restricted Subsidiary)
shall be deemed, in each case, to constitute an Incurrence of such indebtedness not permitted
by this clause (ii);

     (iii) Indebtedness issued in exchange for, or the net proceeds of which are used
to refinance or refund, then outstanding Indebtedness (other than Indebtedness Incurred
under clause (ii), (iv), (viii) or (ix) of this paragraph), and any refinancings thereof
in an amount not to exceed the amount so refinanced or refunded (plus premiums,
accrued interest, fees and expenses); provided that Indebtedness the proceeds of which are
used to refinance or refund the Notes or Indebtedness that is pari passu with, or
subordinated in right of payment to, the Notes shall only be permitted under this
clause (iii) if:

     (A) in case the Notes are refinanced in part or the Indebtedness to be refinanced is
pari passu with the Notes, such new Indebtedness, by its terms or by the terms of any
agreement or instrument pursuant to which such new Indebtedness is outstanding, is expressly
made pari passu with, or subordinate in right of payment to, the remaining Notes;

     (B) in case the Indebtedness to be refinanced is subordinated in right of payment to
the Notes, such new Indebtedness, by its terms or by the terms of any agreement or instrument
pursuant to which such new Indebtedness is issued or remains outstanding, is expressly made
subordinate in right of payment to the Notes, at least to the extent that the Indebtedness
to be refinanced is subordinated to the Notes; and

     (C) such new Indebtedness, determined as of the date of Incurrence of such new
Indebtedness, does not mature prior to the Stated Maturity of the Indebtedness to be
refinanced or refunded, and the Average Life of such new Indebtedness is at least equal to the
remaining Average Life of the Indebtedness to be refinanced or refunded; and

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provided further that in no event may Indebtedness of the Company be
refinanced by means of any Indebtedness of any Restricted Subsidiary pursuant to this clause
(iii);

     (iv) Indebtedness:

     (A) in respect of performance, surety or appeal bonds provided in the ordinary course
of business;

     (B) under Currency Agreements and Interest Rate Agreements; provided that such
agreements (a) are designed solely to protect the Company or its Restricted Subsidiaries
against fluctuations in foreign currency exchange rates or interest rates and (b) do not
increase the Indebtedness of the obligor outstanding at any time other than as a result
of fluctuations in foreign currency exchange rates or interest rates or by reason of fees,
indemnities and compensation payable thereunder; and

     (C) arising from agreements providing for indemnification, adjustment of purchase
price or similar obligations, or from Guarantees or letters of credit, surety bonds or
performance bonds securing any obligations of the Company or any of its Restricted
Subsidiaries pursuant to such agreements, in any case Incurred in connection with the
disposition of any business, assets or Restricted Subsidiary of the Company (other than
Guarantees of Indebtedness Incurred by any Person acquiring all or any portion of such
business, assets or Restricted Subsidiary of the Company for the purpose of financing such
acquisition), in a principal amount not to exceed the gross proceeds actually received by
the Company or any Restricted Subsidiary in connection with such disposition;

     (v) Indebtedness of the Company, to the extent the net proceeds thereof are
promptly used to purchase Notes tendered in an Offer to Purchase made as a result of a
Change of Control;

     (vi) Indebtedness of the Company to the extent the net proceeds thereof are
promptly deposited to defease the Notes in accordance with Article Eight;

     (vii) Guarantees of Indebtedness of the Company by any Restricted Subsidiary
provided the Guarantee of such Indebtedness is permitted by and made in accordance with
Section 4.07;

     (viii) Indebtedness of the Company under Capitalized Leases in an amount not to
exceed at any one time outstanding the greater of $75 million or 15% of the Adjusted
Consolidated Net Tangible Assets of the Company; and

     (ix) Indebtedness of the Company not to exceed $50 million at any one time
outstanding which may, but need not be, Incurred under the Senior Secured Credit
Facilities.

     (b) Notwithstanding any other provision of this Section 4.03, the maximum amount of
Indebtedness that the Company or a Restricted Subsidiary may Incur pursuant to this

-38-

 

Section 4.03 shall not be deemed to be exceeded, with respect to any outstanding
Indebtedness due solely to the result of fluctuations in the exchange rates of currencies.

     (c) For purposes of determining any particular amount of Indebtedness under this Section
4.03,

     (i) Guarantees, Liens or obligations with respect to letters of credit supporting
Indebtedness otherwise included in the determination of such particular amount shall not
be included and

     (ii) any Liens granted pursuant to the equal and ratable provisions referred to in
Section 4.09 shall not be treated as Indebtedness.

     For purposes of determining compliance with this Section 4.03, in the event that an item of
Indebtedness meets the criteria of more than one of the types of Indebtedness described in the
above clauses, the Company, in its sole discretion, shall classify such item of Indebtedness and
only be required to include the amount and type of such Indebtedness in one of such clauses.

     SECTION 4.04. Limitation on Restricted Payments. The Company will not, and will not permit
any Restricted Subsidiary to, directly or indirectly,

     (i) declare or pay any dividend or make any distribution on or with respect to its
Capital Stock or that of such Restricted Subsidiary (other than (x) dividends or distributions
payable solely in shares of its Capital Stock or that of such Restricted Subsidiary (other
than Disqualified Stock) or in options, warrants or other rights to acquire shares of
such Capital Stock and (y) pro rata dividends or distributions on Common Stock of Restricted
Subsidiaries held by minority stockholders (provided that such dividends do not in the
aggregate exceed the minority stockholders’ pro rata share of such Restricted Subsidiaries’
net income from the first day of the fiscal quarter beginning immediately following the
Closing Date) held by Persons other than the Company or any of its Restricted Subsidiaries;

     (ii) purchase, redeem, retire or otherwise acquire for value any shares of Capital
Stock of (A) the Company or an Unrestricted Subsidiary (including options, warrants or other
rights to acquire such shares of Capital Stock) held by any Person or (B) a Restricted
Subsidiary (including options, warrants or other rights to acquire such shares of Capital
Stock) held by any Affiliate of the Company (other than a Wholly Owned Restricted Subsidiary)
or any holder (or any Affiliate of such holder) of 5% or more of the Capital Stock of the
Company;

     (iii) make any voluntary or optional principal payment, or voluntary or optional
redemption, repurchase, defeasance, or other acquisition or retirement for value, of
Indebtedness of the Company that is subordinated in right of payment to the Notes; or

     (iv) make any Investment, other than a Permitted Investment, in any Person

-39-

 

(such payments or any other actions described in clauses (i) through (iv)
above being collectively “Restricted Payments”) if, at the time of, and after giving effect
to, the proposed Restricted Payment:

     (A) a Default or Event of Default shall have occurred and be continuing;

     (B) the Company could not Incur at least $1.00 of Indebtedness under the first
paragraph of Section 4.03; or

     (C) the aggregate amount of all Restricted Payments (the amount, if other than in
cash,to be determined in good faith by the Board of Directors of the Company, whose
determination shall be conclusive and evidenced by a Board Resolution) made after April 1,
2002 shall exceed the sum of

     (1) 50% of the aggregate amount of the Adjusted Consolidated Net Income (or, if the
Adjusted Consolidated Net Income is a loss, minus 100% of the amount of such loss) (determined
by excluding income resulting from transfers of assets by the Company or a Restricted
Subsidiary to an Unrestricted Subsidiary) accrued on a cumulative basis during the period
(taken as one accounting period) beginning on April 1, 2002 and ending on the last day of the
last fiscal quarter preceding the Transaction Date for which reports have been filed or
provided to the Trustee pursuant to Section 4.18 plus

     (2) the aggregate Net Cash Proceeds received by the Company on or after April 1, 2002
from a capital contribution or the issuance and sale permitted by this Indenture of Capital
Stock of the Company (other than Disqualified Stock) to a Person who is not a Subsidiary of
the Company, including an issuance or sale permitted by this Indenture of Indebtedness of
the Company for cash subsequent to the Closing Date upon the conversion of such Indebtedness
into Capital Stock (other than Disqualified Stock) of the Company, or from the issuance to a
Person who is not a Subsidiary of the Company of any options, warrants or other rights to
acquire Capital
Stock of the Company (in each case, exclusive of any Disqualified Stock or any options,
warrants or other rights that are redeemable at the option of the holder, or are required to
be redeemed, prior to the Stated Maturity of the Notes) plus

     (3) an amount equal to the net reduction in Investments (other than reductions in
Permitted Investments) in any Person on or after April 1, 2002 resulting from payments of
interest on Indebtedness, dividends, repayments of loans or advances, or other transfers of
assets, in each case to the Company or any of its Restricted Subsidiaries or from the Net
Cash Proceeds from the sale of any such Investment (except, in each case, to the extent any
such payment or proceeds are included in the calculation of Adjusted Consolidated Net Income),
or from redesignations of Unrestricted Subsidiaries as Restricted Subsidiaries (valued in each
case as provided in the definition of “Investment”), not to exceed, in each case, the
amount of Investments previously made by the Company or any Restricted Subsidiary in such
Person or Unrestricted Subsidiary.

     The foregoing provision shall not be violated by reason of:

-40-

 

     (i) the payment of any dividend within 60 days after the date of
declaration thereof if, at said date of declaration, such payment would comply with the
foregoing paragraph;

     (ii) the redemption, repurchase, retirement, defeasance or other acquisition for value
of Indebtedness of the Company that is subordinated in right of payment to the Notes,
including premium, if any, and accrued and unpaid interest, with the proceeds of, or in
exchange for, Indebtedness Incurred under clause (iii) of the second paragraph of part
(a) of Section 4.03;

     (iii) the repurchase, redemption or other acquisition of Capital Stock of the Company
(or options, warrants or other rights to acquire such Capital Stock) in exchange for, or out
of the proceeds of a substantially concurrent offering of, shares of Capital Stock (or
options, warrants or other rights to acquire such Capital Stock) (other than Disqualified
Stock) of the Company;

     (iv) the making of any principal payment or the repurchase, redemption, retirement,
defeasance or other acquisition for value of Indebtedness of the Company which is subordinated
in right of payment to the Notes, in exchange for, or out of the proceeds of, a substantially
concurrent offering of, shares of the Capital Stock (other than Disqualified Stock) of the
Company (or options, warrants or other rights to acquire such Capital Stock);

     (v) payments or distributions to dissenting stockholders pursuant to applicable law,
pursuant to or in connection with a consolidation, merger or transfer of assets that complies
with the provisions of this Indenture applicable to mergers, consolidations and transfers
substantially all of the property and assets of the Company;

     (vi) the declaration or payment of dividends on the Common Stock of the Company
following a Public Equity Offering of such Common Stock, of up to 6% per annum of the Net Cash
Proceeds received by the Company in such Public Equity Offering;

     (vii) Investments acquired as a capital contribution or in exchange for Capital Stock
(other than Disqualified Stock) of the Company;

     (viii) (A) the repurchase by the Company of Capital Stock of the Company or that of
Grupo TFM from Mexico if after giving effect to such repurchase and any Indebtedness Incurred
to fund such repurchase the Interest Coverage Ratio would be greater than 4.0:1; and

     (B) the repurchase of Capital Stock of Grupo TFM or the Company from Mexico, to the
extent that the consideration paid to Mexico does not exceed the amount of value added taxes
refunded to the Company as a result of matters pending on June 16, 1997 with respect to such
value added taxes; and

     (C) the declaration and payment of dividends in order to effect subclauses (A) or (B) of
this clause (viii);

-41-

 

     (ix) the declaration and payment of dividends to Grupo TFM by the
Company in an amount not to exceed Grupo TFM’s operating expenses, corporate overhead costs
and expenses and taxes; provided that the amount so dividended is actually used for such
purpose; and the declaration and payment of pro rata dividends or distributions on Common
Stock of the Company held by minority stockholders paid in connection with dividends to
Grupo TFM permitted by this clause (ix), provided that such dividends do not in the aggregate
exceed the minority stockholders’ pro rata share of the Company’s net income from July 1,
1997, provided that, except in the case of clauses (i) and (iii), no Default or Event of
Default shall have occurred and be continuing or occur as a consequence of the actions or
payments set forth herein.

          Each Restricted Payment permitted pursuant to the preceding paragraph (other than the
Restricted Payment referred to in clause (ii) thereof, an exchange of Capital Stock for Capital
Stock or Indebtedness referred to in clause (iii) or (iv) thereof, an Investment referred to in
clause (vii) thereof, a repurchase of Capital Stock referred to in clause (viii) (B) thereof and
the dividends referred to in clauses (viii) and (ix) thereof), and the Net Cash Proceeds from any
issuance of Capital Stock referred to in clauses (iii) and (iv), shall be included in calculating
whether the conditions of clause (C) of the first paragraph of this Section 4.04 have been met with
respect to any subsequent Restricted Payments. In the event the proceeds of an issuance of Capital
Stock of the Company or Grupo TFM are used for the redemption, repurchase or other acquisition of
Notes or Indebtedness that is pari passu with the Notes, then the Net Cash Proceeds of such
issuance shall be included in clause (C) of the first paragraph of this Section 4.04 only to the
extent such
proceeds are not used for such redemption, repurchase or other acquisition of Indebtedness.

          Notwithstanding anything to the contrary in the foregoing provisions or herein, (i) the
foregoing provisions shall not apply to and shall not prohibit the repurchase by the Company of
Capital Stock of Grupo TFM from Mexico, through FNM and Nafin, as Trustee, or their successors and
assigns, and any subsequent transactions between the Company and Grupo TFM in respect of the
cancellation, conversion or exchange of the Capital Stock of Grupo TFM thereby purchased by the
Company and (ii) neither such purchase by the Company of Capital Stock of Grupo TFM or any such
subsequent transactions, nor the consideration paid by the Company in connection with such purchase
or such subsequent transactions (such purchase and any subsequent transactions, the “Acquisition
Transactions”), shall be included in calculating whether the conditions of clause (C) of the first
paragraph of this Section 4.04 have been met with respect to any subsequent Restricted Payments.

          SECTION 4.05. Limitation on Dividend and Other Payment Restrictions Affecting Restricted
Subsidiaries. The Company will not, and will not permit any Restricted Subsidiary to create or
otherwise cause or suffer to exist or become effective any consensual encumbrance or restriction of
any kind on the ability of any Restricted Subsidiary to (i) pay dividends or make any other
distributions permitted by applicable law on any Capital Stock of such Restricted Subsidiary owned
by the Company or any other Restricted Subsidiary, (ii) pay any Indebtedness owed to the Company or
any other Restricted Subsidiary, (iii) make loans or advances to the Company or any other
Restricted Subsidiary or (iv) transfer any of its property or assets to the Company or any other
Restricted Subsidiary.

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          The foregoing provisions shall not restrict any encumbrances or restrictions:
(i) existing on the Closing Date in this Indenture; (ii) existing on the Acquisition Date in the
Existing Indentures, the Senior Secured Credit Facilities or any other agreements (including the
Concession Title) in effect on the Closing Date or in effect on June 16, 1997 or on the Acquisition
Date, and any extensions, refinancings, renewals or replacements of such agreements; provided that
the encumbrances and restrictions in any such extensions, refinancings, renewals or replacements
are no less favorable in any material respect to the Holders than those encumbrances or
restrictions that are then in effect and that are being extended, refinanced, renewed or replaced,
(iii) existing under or by reason of applicable law, (iv) existing with respect to any Person or
the property or assets of such Person acquired by the Company or any Restricted Subsidiary,
existing at the time of such acquisition and not incurred in contemplation thereof, which
encumbrances or restrictions are not applicable to any Person or the property or assets of any
Person other than such Person or the property or assets of such Person so acquired, (v) in the case
of transfers of any property or assets of a Restricted Subsidiary to the Company or any other
Restricted Subsidiary (A) that restrict in a customary manner the subletting, assignment or
transfer of any property or asset that is a lease, license, conveyance or contract or similar
property or asset, (B) existing by virtue of any transfer of, agreement to transfer, option or
right
with respect to, or Lien on, any property or assets of the Company or any Restricted Subsidiary not
otherwise prohibited by this Indenture or (C) arising or agreed to in the ordinary course of
business, not relating to any Indebtedness, and that do not, individually or in the aggregate,
detract from the value of property or assets of the Company or any Restricted Subsidiary in any
manner material to the Company or any Restricted Subsidiary, (vi) with respect to a Restricted
Subsidiary and imposed pursuant to an agreement that has been entered into for the sale or
disposition of all or substantially all of the Capital Stock of or property and assets of, such
Restricted Subsidiary; or (vii) for the benefit of any holder of a Lien permitted under Section
4.09.

          Nothing contained in this Section 4.05 shall prevent the Company or any Restricted Subsidiary
from (i) creating, incurring, assuming or suffering to exist any Liens otherwise permitted in
Section 4.09 or (ii) restricting the sale or other disposition of property or assets of the Company
or any of its Restricted Subsidiaries that secure Indebtedness of the Company or any of its
Restricted Subsidiaries.

          SECTION 4.06. Limitation on the Issuance and Sale of Capital Stock of Restricted
Subsidiaries. The Company will not permit any Restricted Subsidiary, directly or indirectly, to
issue or sell, any shares of Capital Stock of a Restricted Subsidiary (including options, warrants
or other rights to purchase shares of such Capital Stock) except (i) to the Company or a Wholly
Owned Restricted Subsidiary; (ii) issuances of director’s qualifying shares or sales to foreign
nationals of shares of Capital Stock of foreign Restricted Subsidiaries, to the extent required by
applicable law; (iii) if, immediately after giving effect to such issuance or sale, such Restricted
Subsidiary would no longer constitute a Restricted Subsidiary and any Investment in such Person
remaining after giving effect to such issuance or sale would have been permitted to be made under
Section 4.04 if made on the date of such issuance or sale; or (iv) issuances of Common Stock that
has no preference with respect to dividends or upon liquidation, the Net Cash Proceeds of which are
promptly applied as provided in clause (i) or (ii) of the “Limitation on Asset Sales” covenant.

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          SECTION 4.07. Limitation on Issuances of Guarantees by Restricted
Subsidiaries. The Company will not permit any Restricted Subsidiary, directly or indirectly, to
Guarantee any Indebtedness of the Company which is pari passu with or subordinate in right of
payment to the Notes (“Guaranteed Indebtedness”), unless (i) such Restricted Subsidiary
simultaneously executes and delivers a supplemental indenture to this Indenture providing for
Guarantees (a “Subsidiary Guarantee”) of payment of the Notes by such Restricted Subsidiary and
(ii) such Restricted Subsidiary waives and will not in any manner whatsoever claim or take the
benefit or advantage of, any rights of reimbursement, indemnity or subrogation or any other rights
against the Company or any other Restricted Subsidiary as a result of any payment by such
Restricted Subsidiary under its Subsidiary Guarantee until the Notes have been paid in full, in
U.S. Dollars; provided that this paragraph shall not be applicable to any Guarantee of any
Restricted Subsidiary (x) that existed at the time such Person became a Restricted Subsidiary and
was not Incurred in connection with, or in contemplation of, such Person becoming a Restricted
Subsidiary or (y) of Indebtedness
Incurred under the Senior Secured Credit Facilities up to the amount permitted to be Incurred under
the second paragraph of clause (a) of Section 4.03. If the Guaranteed Indebtedness is (A) pari
passu with the Notes, then the Guarantee of such Guaranteed Indebtedness shall be pari passu with,
or subordinated to, the Subsidiary Guarantee or (B) subordinated to the Notes, then the Guarantee
of such Guaranteed Indebtedness shall be subordinated to the Subsidiary Guarantees at least to the
extent that the Guaranteed Indebtedness is subordinated to the Notes.

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

          SECTION 4.08. Limitation on Transactions with Stockholders and Affiliates. The Company
will not, and will not permit any Restricted Subsidiary to, directly or indirectly, enter into,
renew or extend any transaction (including, without limitation, the purchase, sale, lease or
exchange of property or assets, or the rendering of any service) with any holder (or any Affiliate
of such holder) of 5% or more of any class of Capital Stock of the Company, Grupo TFM or with any
Affiliate of the Company, Grupo TFM or any Restricted Subsidiary, except upon fair and reasonable
terms no less favorable to the Company or such Restricted Subsidiary than could be obtained, at the
time of such transaction or, if such transaction is pursuant to a written agreement, at the time of
the execution of the agreement providing therefor, in a comparable arm’s-length transaction with a
Person that is not such a holder or an Affiliate.

          The foregoing limitation does not limit, and shall not apply to (i) transactions (A) approved
by a majority of the disinterested members of the Board of Directors, (B) for which the Company or
a Restricted Subsidiary delivers to the Trustee a written opinion of a United States nationally
recognized investment banking firm (or their Mexican affiliate) stating that the transaction is
fair to the Company or such Restricted Subsidiary from a financial point of view or

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(C) involving consideration of $2 million or less; (ii) any transaction between Grupo
TFM and the Company, or between Grupo TFM or the Company and any of the Company’s Restricted
Subsidiaries or between Restricted Subsidiaries; (iii) the payment of reasonable and customary
regular fees to the directors and officers of the Company and Grupo TFM; (iv) any payments or other
transactions pursuant to any tax-sharing agreement between the Company and Grupo TFM or any
Subsidiary of the Company with which the Company files a consolidated tax return or with which the
Company is part of a consolidated group for tax purposes; (v) contributions in cash to the common
equity capital of the Company by Grupo TFM, KCSI, or Grupo TMM; (vi) any Restricted Payments not
prohibited by Section 4.04; and
(vii) any transaction between the Company or any of its Subsidiaries and (A) Grupo TMM or any of
its Affiliates or (B) KCSI or any of its Affiliates, in each case, relating to the provision of
transportation or transportation-related services approved in the manner provided in clause (i)(A)
above. Notwithstanding the foregoing, any transaction covered by the first paragraph of this
Section 4.08 and not covered by clauses (ii) through (vii) of this paragraph, (a) the aggregate
amount of which exceeds U.S.$5 million in value, must be approved or determined to be fair in the
manner provided for in clause (i) (A) or (B) above and (b) the aggregate amount of which exceeds
U.S.$15 million in value, must be determined to be fair in the manner provided for in clause (i)(B)
above; provided that such approval or determination of fairness shall not be required with respect
to (a) payments under the Management Services Agreements as in effect on the Closing Date; (b)
transactions with the Tex-Mex Railway; (c) transactions with Mexico and its Affiliates in the
ordinary course of business, provided that Mexico and its Affiliates do not beneficially own stock
of the Company having voting power in excess of 10% of the total voting power of the Voting Stock
of the Company; or (d) any equipment lease with an Affiliate, provided that an Officer’s
Certificate is furnished to the Trustee certifying that the terms of the equipment lease are no
less favorable to the Company than the terms offered by an unrelated party.

          SECTION 4.09. Limitation on Liens. The Company will not, and will not permit any
Restricted Subsidiary to create, incur, assume or suffer to exist any Lien on any of its or any
Restricted Subsidiary’s assets or properties of any character, or on any shares of Capital Stock or
Indebtedness of any Restricted Subsidiary, without making effective provision for all of the Notes
and all other amounts due under this Indenture to be directly secured equally and ratably with (or,
if the obligation or liability to be secured by such Lien is subordinated in right of payment to
the Notes, prior to) the obligation or liability secured by such Lien.

          The foregoing limitation does not apply to (i) Liens existing on the Closing Date; (ii) Liens
securing obligations under the Senior Secured Credit Facilities; (iii) Liens granted after the
Closing Date on any of the assets or Capital Stock of the Company or its Restricted Subsidiaries
created in favor of the Holders; (iv) Liens with respect to the assets of a Restricted Subsidiary
granted by such Restricted Subsidiary to the Company or a Wholly Owned Restricted Subsidiary to
secure Indebtedness owing to the Company or such other Restricted Subsidiary; (v) Liens securing
Indebtedness which is Incurred to refinance secured Indebtedness which is permitted to be Incurred
under clause (iii) of the second paragraph of Section 4.03; provided that such Liens do not extend
to or cover any property or assets of the Company or any of its Restricted Subsidiary other than
the property or assets securing the Indebtedness being refinanced; (vi) Liens on any property or
assets of a Restricted Subsidiary securing Indebtedness of such Restricted Subsidiary permitted
under Section 4.03; (vii) Liens securing Indebtedness

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which is permitted to be Incurred under clause (i) of paragraph (a) under Section 4.03;
(viii) Permitted Liens; or (ix) Liens permitted under the Existing Indentures.

          SECTION 4.10. Limitation on Sale-Leaseback Transactions. The Company will not, and will
not permit any Restricted Subsidiary to, enter into any sale-leaseback transaction involving any of
its assets or properties whether now owned or hereafter acquired, whereby the Company or a
Restricted Subsidiary sells or transfers such assets or properties and then or thereafter leases
such assets or properties or any part thereof or any other assets or properties which the Company
or such Restricted Subsidiary, as the case may be, intends to use for substantially the same
purpose or purposes as the assets or properties sold or transferred.

          The foregoing restriction does not apply to any sale-leaseback transaction if (i) the lease is
for a period, including renewal rights, of not in excess of three years, (ii) the lease secures or
relates to industrial revenue or pollution control bonds, (iii) the transaction is solely between
the Company and any Wholly Owned Restricted Subsidiary or solely between Wholly Owned Restricted
Subsidiaries or (iv) the Company or such Restricted Subsidiary, within 12 months after the sale or
transfer of any assets or properties is completed, applies an amount not less than the net proceeds
received from such sale in accordance with clause (A) or (B) of the first paragraph of Section
4.11.

          SECTION 4.11. Limitation on Asset Sales. The Company will not, and will not permit any
Restricted Subsidiary to, consummate any Asset Sale, unless (i) the consideration received by the
Company or such Restricted Subsidiary is at least equal to the fair market value of the assets sold
or disposed of and (ii) at least 80% of the consideration received (excluding any amount of
Released Indebtedness) consists of cash or Temporary Cash Investments. In the event and to the
extent that the Net Cash Proceeds received by the Company or any of its Restricted Subsidiaries
from one or more Asset Sales occurring on or after the Closing Date in any period of 12 consecutive
months exceed 10% of Adjusted Consolidated Net Tangible Assets (determined as of the date closest
to the commencement of such 12-month period for which a consolidated balance sheet of the Company
and its subsidiaries has been filed or provided to the Trustee pursuant to Section 4.18), then the
Company shall or shall cause the relevant Restricted Subsidiary to (i) within 12 months after the
date Net Cash Proceeds so received exceed 10% of Adjusted Consolidated Net Tangible Assets (A)
apply an amount equal to such excess Net Cash Proceeds to permanently repay unsubordinated
Indebtedness of the Company, or Indebtedness of any Restricted Subsidiary of the Company, in each
case owing to a Person other than the Company or any of its Restricted Subsidiaries or (B) invest
an equal amount, or the amount not so applied pursuant to clause (A) (or enter into a definitive
agreement committing to so invest within 12 months after the date of such agreement), in property
or assets (other than current assets) of a nature or type or that are used in a business (or in a
company having property and assets of a nature or type, or engaged in a business) similar or
related to the nature or type of the property and assets of, or the business of, the Company and
its Restricted Subsidiaries existing on the date of such investment and (ii) apply (no later than
the end of the 12-month period referred to in clause (i)) such excess Net Cash Proceeds (to the
extent not applied pursuant to clause (i)) as provided in the following paragraph of this Section
4.11. The amount of such excess Net Cash Proceeds required to be applied (or to be committed to be
applied)
during such 12-month period as set forth in clause (i) of the preceding sentence and not applied as
so required by the end of such period shall constitute “Excess Proceeds.”

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          If, as of the first day of any calendar month, the aggregate amount of Excess
Proceeds not theretofore subject to an Offer to Purchase pursuant to this Section 4.11 totals at
least $10 million, the Company must commence, not later than the fifteenth Business Day of such
month, and consummate an Offer to Purchase from the Holders (and if required by the terms of any
Indebtedness that is pari passu with the Notes (“Pari Passu Indebtedness”), from the holders of
such Pari Passu Indebtedness) on a pro rata basis an aggregate principal amount of Notes (and Pari
Passu Indebtedness) equal to the Excess Proceeds on such date, at a purchase price equal to 101% of
the principal amount of the Notes (and Pari Passu Indebtedness) plus, in each case, accrued
interest (if any) to the date of purchase.

          SECTION 4.12. Repurchase of Notes upon a Change of Control. The Company must commence,
within 30 days of the occurrence of a Change of Control, and consummate an Offer to Purchase for
all Notes then outstanding, at a purchase price equal to 101% of the principal amount plus interest
(if any) to the date of purchase.

          SECTION 4.13. Existence. Subject to Articles Four and Five of this Indenture, the Company
will do or cause to be done all things necessary to preserve and keep in full force and effect its
existence and the existence of each of its Restricted Subsidiaries in accordance with the
respective organizational documents of the Company and each such Subsidiary and the rights (whether
pursuant to charter, partnership certificate, agreement, statute or otherwise), material licenses
and franchises of the Company and each such Subsidiary; provided that the Company shall not be
required to preserve any such right, license or franchise, or the existence of any Restricted
Subsidiary, if (a) the maintenance or preservation thereof is no longer desirable in the conduct of
the business of the Company and its Restricted Subsidiaries taken as a whole or (b) the failure to
maintain or preserve any such right, license or franchise does not have a material adverse effect
on the Company and its Restricted Subsidiaries, taken as a whole. In addition, the Company agrees
to take such actions, within a reasonable time after the Closing Date (and in any event prior to
any proceeding initiated regarding the dissolution of the Company), as may be necessary to ensure
that it shall be in good standing under the laws of the jurisdiction of its incorporation, provided
that the Company will not be required to take such actions if the failure to be in good standing
would not have a material adverse effect on the Company and its Restricted Subsidiaries, taken as a
whole.

          SECTION 4.14. Payment of Taxes and Other Claims. The Company will pay or discharge and
shall cause each of its Subsidiaries to pay or discharge, or cause to be paid or discharged, before
the same shall become delinquent (i) all material taxes, assessments and governmental charges
levied or imposed upon (a) the Company or any such Subsidiary, (b) the income or profits of any
such Subsidiary which is a corporation or (c) the property of the Company or any such Subsidiary
and (ii) all material lawful claims for labor, materials and supplies that, if unpaid, might by law
become a lien upon the property of the Company or any such Subsidiary, provided that the Company
shall not be
required to pay or discharge, or cause to be paid or discharged, any such tax, assessment, charge
or claim the amount, applicability or validity of which is being contested in good faith by
appropriate proceedings and for which adequate reserves have been established and so long as the
non-payment of or failure to discharge any such tax, assessment, charge or claim would not have a
material adverse effect on the Company and its Restricted Subsidiaries, taken as a whole.

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          SECTION 4.15. Maintenance of Properties and Insurance. The Company will
cause all properties used or useful in the conduct of its business or the business of any of its
Restricted Subsidiaries to be maintained and kept in good condition, repair and working order
(reasonable wear and tear excepted) and supplied with all necessary equipment and will cause to be
made all necessary repairs, renewals, replacements, betterments and improvements thereof, all as in
the judgment of the Company may be necessary so that the business carried on in connection
therewith may be properly and advantageously conducted at all times; provided that nothing in this
Section 4.15 shall prevent the Company or any such Subsidiary from discontinuing the use, operation
or maintenance of any of such properties or disposing of any of them, if such discontinuance or
disposal is, in the judgment of the Company, desirable in the conduct of the business of the
Company or such Subsidiary or would not have a material adverse effect on the Company and its
Restricted Subsidiaries, taken as a whole.

          The Company will provide or cause to be provided, for itself and its Restricted Subsidiaries,
reasonably adequate insurance including appropriate self-insurance) with respect to its properties
and business against loss or damage of the kinds customarily insured against by corporations of
established reputation engaged in the same or similar businesses similarly situated and owning like
properties, of such types and in such amounts, with such deductibles and by such methods as shall
be customary for corporations similarly situated in the industry in which the Company or such
Restricted Subsidiary, as the case may be, is then conducting business, except to the extent that
failure to carry or maintain any such insurance would not, singly or in the aggregate, have a
material adverse effect on the condition, financial or otherwise, or the earnings, business or
operations of the Company and its subsidiaries, taken as a whole.

          SECTION 4.16. Notice of Defaults. In the event that the Company becomes aware of any
Default or Event of Default, the Company, promptly after it becomes aware thereof, will give
written notice thereof to the Trustee.

          SECTION 4.17. Compliance Certificates. (a) The Company shall deliver to the Trustee,
within 90 days after the end of the Company’s fiscal year, an Officers’ Certificate stating whether
or not the signers know of any Default or Event of Default that occurred during such fiscal year.
Such certificates shall contain a certification from the principal executive officer, principal
financial officer or principal accounting officer of the Company that a review has been conducted
of the activities of the Company and the Restricted Subsidiaries and the Company’s performance
under this Indenture and that, to their knowledge, the Company has complied with all conditions and
covenants under this Indenture. For purposes of this Section 4.17, such compliance shall be
determined
without regard to any period of grace or requirement of notice provided under this Indenture. If
the Officers of the Company signing such certificate do know of such a Default or Event of Default,
the certificate shall describe the nature of any such Default or Event of Default and its status.

          (b) The Company shall deliver to the Trustee, within 90 days after the end of its fiscal
year, a certificate signed by the Company’s independent certified public accountants stating (i)
that their audit examination has included a review of the terms of this Indenture and the Notes as
they relate to accounting matters, (ii) that they have read the most recent Officers’ Certificate
delivered to the Trustee pursuant to paragraph (a) of this Section 4.17 and (iii) whether, in
connection with their audit examination, anything came to their attention that

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caused them to believe that the Company was not in compliance with any of the terms,
covenants, provisions or conditions of Article Four and Section 5.01 of this Indenture as they
pertain to accounting matters and, if any Default or Event of Default has come to their attention,
specifying the nature and period of existence thereof; provided that such independent certified
public accountants shall not be liable in respect of such statement by reason of any failure to
obtain knowledge of any such Default or Event of Default that would not be disclosed in the course
of an audit examination conducted in accordance with generally accepted auditing standards in
effect at the date of such examination.

          (c) Within 90 days of the end of the Company’s fiscal year, the Company shall deliver to
the Trustee a list of all Significant Subsidiaries. The Trustee shall have no duty with respect to
any such list except to keep it on file and available for inspection by the Holders.

          SECTION 4.18. Commission Reports and Reports to Holders. At all times from and after the
Closing Date, whether or not the Company is then required to file reports with the Commission, for
so long as any Notes are outstanding, the Company shall file with the Commission all such reports
and other information as it would be required to file with the Commission by Sections 13 or 15(d)
under the Exchange Act if it was subject thereto, unless the Commission does not permit such
filings, in which case the Company shall provide such reports and other information to the Trustee
(within the same time periods that would be applicable if the Company were required and permitted
to file reports with the Commission) and instruct the Trustee to mail such reports and other
information to Holders at their addresses set forth on the Note Register. The Company shall supply
the Trustee and each Holder or shall supply to the Trustee for forwarding to each such Holder,
without cost to such Holder, copies of such reports and other information. Delivery of such
reports, information and documents to the Trustee is for informational purposes only and the
Trustee’s receipt of such reports, information and documents shall not constitute constructive
notice of any information contained therein or determinable from information contained therein,
including the Company’s compliance with any of its covenants hereunder (as to which the Trustee is
entitled to rely exclusively on Officer’s Certificates).

          SECTION 4.19. Waiver of Stay, Extension or Usury Laws. The Company covenants (to the
extent that it may lawfully do so) that it will not at any time insist upon, or plead, or in any
manner whatsoever claim or take the benefit or advantage of, any stay or extension law or any usury
law or other law that would prohibit or forgive the Company from paying all or any portion of the
principal of, premium, if any, or interest on the Notes as contemplated herein, wherever enacted,
now or at any time hereafter in force, or that may affect the covenants or the performance of this
Indenture; and (to the extent that it may lawfully do so) the Company expressly waives all benefit
or advantage of any such law and covenants that it will not hinder, delay or impede the execution
of any power herein granted to the Trustee, but will suffer and permit the execution of every such
power as though no such law had been enacted.

          SECTION 4.20. Additional Amounts. Any and all payments made by the Company to the Holders,
under or with respect to the Notes, will be made free and clear of and without withholding or
deduction for or on account of any present or future tax, duty, levy, impost, assessment or other
governmental charge (including any interest or penalties with respect thereto) imposed or levied by
or on behalf of Mexico or any political subdivision thereof or by

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any authority or agency therein or thereof having power to tax (hereinafter “Mexican
Withholding Taxes”), unless the withholding or deduction of such Mexican Withholding Taxes is
required by law or by the interpretation or administration thereof. In the event any Mexican
Withholding Taxes are required to be so withheld or deducted, the Company will (i) pay such
additional amounts (“Additional Amounts”) as will result in receipt by the Holders of such amounts
as would have been received by them had no such withholding or deduction been required, (ii) deduct
or withhold such Mexican Withholding Taxes and (iii) remit the full amount so deducted or withheld
to the relevant taxing or other authority. Notwithstanding the foregoing, no such Additional
Amounts shall be payable for or on account of:

     (a) any Mexican Withholding Taxes which would not have been imposed or levied on a
Holder but for the existence of any present or former connection between the Holder or
beneficial owner of the Notes and Mexico or any political subdivision or territory or
possession thereof or area subject to its jurisdiction, including, without limitation, such
Holder or beneficial owner (i) being or having been a citizen or resident thereof, (ii)
maintaining or having maintained an office, permanent establishment, fixed base or branch
therein, or (iii) being or having been present or engaged in trade or business therein, except
for a connection solely arising from the mere ownership of, or receipt of payment under,
such Note or the exercise of rights under this Indenture;

     (b) except as otherwise provided, any estate, inheritance, gift, sales, transfer, or
personal property or similar tax, assessment or other governmental charge;

     (c) any Mexican Withholding Taxes that are imposed or levied by reason of the failure
by the Holder or beneficial owner of such Note to comply with any certification,
identification, information, documentation, declaration or other reporting requirement which
is required or imposed by a statute, treaty, regulation, general rule or administrative
practice as a precondition to exemption from, or reduction in the rate of, the imposition,
withholding or deduction of any Mexican Withholding Taxes; provided that at least 60 days
prior to (i) the first payment date with respect to which the Company shall apply this clause
(c) and, (ii) in the event of a change in such certification, identification, information,
documentation, declaration or otherreporting requirement, the first payment date subsequent
to such change, the Company shall have notified the Trustee, in writing, that the Holders
or beneficial owners of the Notes will be required to provide such certification,
identification, information or documentation, declaration or other reporting;

     (d) any Mexican Withholding Taxes that are imposed or levied by reason of the failure
by the Holder or beneficial owner of such Note to timely comply (subject to the conditions set
forth below) with a written request by or on behalf of the Company to provide information,
documentation or other evidence concerning the nationality, residence, identity, or
registration with the Ministry of Finance and Public Credit of the Holder or beneficial owner
of such Note that is necessary from time to time to determine the appropriate rate of
deduction or withholding of Mexican Withholding Taxes applicable to such Holder or
beneficial owner; provided that at least 60 days prior to the first payment date with respect
to which the Company shall apply this clause (d), the Company shall have notified the Trustee,
in writing, that such Holders or beneficial

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owners of the Notes will be required to provide such information,
documentation or other evidence;

     (e) the presentation of such Note (where presentation is required) for payment on a
date more than 30 days after the date on which such payment became due and payable or the date
on which payment thereof is duly provided for, whichever occurs later, except to the extent
that the Holder or the beneficial owner of such Note would have been entitled to
Additional Amounts in respect of such Mexican Withholding Taxes on presenting such Note for
payment on any date during such 30-day period;

     (f) any Mexican Withholding Taxes that are payable only by other than withholding or
deduction; or

     (g) any combination of item (a), (b), (c), (d), (e), or (f) above.

          Notwithstanding the foregoing, the limitations on the Company’s obligation to pay Additional
Amounts set forth in clauses (c) and (d) above shall not apply if the provision of the
certification, identification, information, documentation, declaration or other evidence described
in such clauses (c) and (d) would be materially more onerous, in form, in procedure or in the
substance of information disclosed, to a Holder or beneficial
owner of a Note (taking into account any relevant differences between United States and Mexican
law, regulation or administrative practice) than comparable information or other applicable
reporting requirements imposed or provided for under United States federal income tax law
(including the United States-Mexico Income Tax Treaty), regulation (including proposed regulations)
and administrative practice. In addition, the limitations on the Company’s obligation to pay
Additional Amounts set forth in clauses (c) and (d) above shall not apply if Rule 3.25.15 published
in the Official Gazette of the Federation of Mexico (Diario Oficial de la Federacion) on May 30,
2002 or a substantially similar successor of such rule is in effect, unless (i) the provision of
the certification, identification, information, documentation, declaration or other evidence
described in clauses (c) and (d) is expressly required by statute, regulation, ruling or general
rules or administrative practice in order to apply Rule 3.25.15 (or a substantially similar
successor of such rule), the Company cannot obtain such certification, identification, information,
documentation, declaration or other evidence or satisfy any other reporting requirements, on its
own through reasonable diligence and the Company otherwise would meet the requirements for
application of Rule 3.25.15 (or such successor of such rule) or (ii) in the case of a Holder or
beneficial owner of a Note that is a pension fund or other tax-exempt organization, such Holder or
beneficial owner would be subject to Mexican Withholding Taxes at a rate less than that provided by
Article 195, Section II, paragraph (a) of the Mexican Income Tax Law in connection with Rule
3.25.15 if the information, documentation or other evidence required under clause (d) above were
provided. In addition, clause (c) above shall not be construed to require that a non-Mexican
pension or retirement fund, a non-Mexican tax-exempt organization, a non-Mexican financial
institution or any other Holder or beneficial owner of a Note register with the Ministry of Finance
and Public Credit for the purpose of establishing eligibility for an exemption from or reduction of
Mexican Withholding Taxes.

          The Company will, upon written request, provide the Trustee, the Holders and the Paying Agent
with a duly certified or authenticated copy of an original receipt of the payment of

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Mexican Withholding Taxes which the Company has withheld or deducted in respect of any
payments made under or with respect to the Notes.

          In the event that Additional Amounts actually paid with respect to any Notes are based on
Mexican Withholding Taxes in excess of the appropriate Mexican Withholding Taxes applicable to the
Holder or beneficial owner of such Notes and, as a result thereof, such Holder or beneficial owner
is entitled to make a claim for a refund of such excess, or credit such excess against Mexican
taxes, then, to the extent it is able to do so without jeopardizing its entitlement to such refund
or credit, such Holder or beneficial owner shall, by accepting the Notes, be deemed to have
assigned and transferred all right, title and interest to any claim for a refund or credit of such
excess to the Company. By making such assignment and transfer, the Holder or beneficial owner makes
no representation or warranty that the Company will be entitled to receive such claim for a refund
or credit and incurs no other obligation with respect thereto (including executing or delivering
any documents and paying any costs or expenses of the Company relating to obtaining such
refund). Nothing contained in this paragraph shall interfere with the right of each Holder or
beneficial owner of a Note to arrange its tax affairs in whatever manner it thinks fit nor oblige
any Holder or beneficial owner of a Note to claim any refund or credit or to disclose any
information relating to its tax affairs or any computations in respect thereof or to do anything
that would prejudice its ability to benefit from any other credits, reliefs, remissions or
repayments to which it may be entitled.

          If the Company is obligated to pay Additional Amounts with respect to any payment under or
with respect to the Notes (other than Additional Amounts payable on the date of this Indenture),
the Company will, upon written request, deliver to the Trustee an Officers’ Certificate stating the
fact that such Additional Amounts are payable and the amounts so payable.

          In addition, the Company will pay any stamp, issue, registration, documentary or other similar
taxes and other duties (including interest and penalties with respect thereto) imposed or levied by
Mexico (or any political subdivision or taxing authority thereof or therein) in respect of the
creation, issue and offering of the Notes.

          SECTION 4.21. Comision Nacional Bancaria y de Valores. Promptly after the date of this
Indenture, the Company will furnish to the Comision Nacional Bancaria y de Valores all information
necessary to complete the registration of the Notes in the Special Section of the National Registry
of Securities.

ARTICLE FIVE

SUCCESSOR CORPORATION

          SECTION 5.01. When Company May Merge, Etc. The Company will not consolidate with, merge
with or into, or sell, convey, transfer, lease or otherwise dispose of all or substantially all of
its property and assets (as an entirety or substantially an entirety in one transaction or a series
of related transactions) to, any Person or permit any Person to merge with or into the Company
unless: (i) the Company shall be the continuing Person, or the Person (if other than the Company)
formed by such consolidation or into which the Company is merged or that acquired or leased such
property and assets of the Company shall be a corporation organized

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and validly existing under the laws of Mexico, the United States of America or any
jurisdiction of either such country and shall expressly assume, by a supplemental indenture,
executed and delivered to the Trustee, all of the obligations of the Company on all of the Notes
and under this Indenture; (ii) immediately after giving effect to such transaction, no Default or
Event of Default shall have occurred and be continuing; (iii) immediately after giving effect to
such transaction on a pro forma basis, the Company, or any Person becoming the successor obligor of
the Notes, shall have a Consolidated Net Worth equal to or greater than the Consolidated Net Worth
of the Company immediately prior to such transaction; (iv) immediately after giving effect to such
transaction on a pro forma basis the Company, or any Person becoming the successor obligor of the
Notes, could incur at least $1.00 of Indebtedness under the first paragraph of Section 4.03;
provided that this clause (iv) shall not apply to a consolidation
or merger with or into a Wholly Owned Restricted Subsidiary with a positive net worth; provided
that, in connection with any such consolidation or merger, no consideration (other than Common
Stock in the surviving Person or the Company) shall be issued or distributed to the stockholders of
the Company; and (v) the Company delivers to the Trustee an Officers’ Certificate (attaching the
arithmetic computations to demonstrate compliance with clauses (iii) and (iv)) and Opinion of
Counsel, in each case stating that such consolidation, merger or transfer and such supplemental
indenture complies with this provision and that all conditions precedent provided for herein
relating to such transaction have been complied with; provided, however, that (A) clauses (iii) and
(iv) above do not apply if, in the good faith determination of the Board of Directors of the
Company, whose determination shall be evidenced by a Board Resolution, the principal purpose of
such transaction is to change the jurisdiction of incorporation of the Company or to incorporate
the Company under the laws of a state of the United States and (B) only clause (i) shall apply for
a merger of the Company and Grupo TFM; and provided further that any such transaction shall not
have as one of its purposes the evasion of the foregoing limitations.

          SECTION 5.02. Successor Substituted. Upon any consolidation or merger, or any sale,
conveyance, transfer or other disposition of all or substantially all of the property and assets of
the Company in accordance with Section 5.01 of this Indenture, the successor Person formed by such
consolidation or into which the Company is merged or to which such sale, conveyance, transfer or
other disposition is made shall succeed to, and be substituted for, and may exercise every right
and power of, the Company under this Indenture with the same effect as if such successor Person had
been named as the Company herein.

ARTICLE SIX

DEFAULT AND REMEDIES

          SECTION 6.01. Events of Default. An “Event of Default” shall occur with respect to the
Notes if:

     (a) the Company defaults in the payment of principal of (or premium, if any, on) any
Note when the same becomes due and payable at maturity, upon acceleration, redemption or
otherwise;

     (b) the Company defaults in the payment of interest on any Note when the same becomes
due and payable, and such default continues for a period of 30 days;

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     (c) the Company defaults in the performance of or breaches the
provisions of Article Five or fails to make or consummate an Offer to Purchase in accordance
with Section 4.11 or Section 4.12;

     (d) the Company defaults in the performance of or breaches any other covenant or
agreement of the Company in this Indenture or under the Notes (other than a default specified
in clause (a), (b) or (c) above), and such default or breach
continues for a period of 30 consecutive days after written notice by the Trustee or the
Holders of 25% or more in aggregate principal amount of the Notes;

     (e) there occurs with respect to any issue or issues of Indebtedness of the Company
or any of its Significant Subsidiaries having an outstanding principal amount of $10 million
or more in the aggregate for all such issues of all such Persons, whether such Indebtedness
now exists or shall hereafter be created, (I) an event of default that has caused the
holder thereof to declare such Indebtedness to be due and payable prior to its Stated Maturity
and such Indebtedness has not been discharged in full or such acceleration has not been
rescinded or annulled within 30 days of such acceleration and/or (II) the failure to make
a principal payment at the final (but not any interim) fixed maturity and such defaulted
payment shall not have been made, waived or extended within 30 days of such payment default;

     (f) [intentionally omitted];

     (g) any final judgment or order (not covered by insurance) for the payment of money
in excess of $10 million in the aggregate for all such final judgments or orders against all
such Persons (treating any deductibles, self-insurance or retention as not so covered) shall
be rendered against the Company or any of its Significant Subsidiaries and shall not be
paid or discharged, and there shall be any period of 30 consecutive days following entry of
the final judgment or order that causes the aggregate amount for all such final judgments or
orders outstanding and not paid or discharged against all such Persons to exceed $10
million during which a stay of enforcement of such final judgment or order, by reason of a
pending appeal or otherwise, shall not be in effect;

     (h) a court having jurisdiction in the premises enters a decree or order for (A)
relief in respect of the Company or any of its Significant Subsidiaries in an involuntary case
under any applicable bankruptcy, suspension of payments, insolvency or other similar law now
or hereafter in effect, (B) appointment of a receiver, liquidator, assignee, sindico,
custodian, trustee, sequestrator or similar official of the Company or any of its Significant
Subsidiaries or for all or substantially all of the property and assets of the Company or any
of its Significant Subsidiaries or (C) the winding up or liquidation of the affairs of
the Company or any of its Significant Subsidiaries and, in each case, such decree or order
shall remain unstayed and in effect for a period of 30 consecutive days;

     (i) the Company or any of its Significant Subsidiaries (A) commences a voluntary case
under any applicable bankruptcy, suspension of payments, insolvency or other similar law now
or hereafter in effect, or consents to the entry of an order for relief in an involuntary case
under any such law, (B) consents to the appointment of or taking

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possession by a receiver, liquidator, assignee, sindico, custodian, trustee,
sequestrator or similar official of the Company or any of its
Significant Subsidiaries or for all or substantially all of the property and assets of the
Company or any of its Significant Subsidiaries or (C) effects any general assignment for the
benefit of creditors; or

     (j) (A) the Concession Title shall cease to grant to the Company the rights
(including exclusive rights) originally provided therein and such cessation has had a material
adverse effect on the Company and its Restricted Subsidiaries taken as a whole; (B) (x) the
Concession Title shall for any reason be terminated and not reinstated within 30 days or
(y) rights provided therein which were originally exclusive to the Company shall become
non-exclusive and the cessation of such exclusivity has had a material adverse effect on the
Company and its Restricted Subsidiaries, taken as a whole; or (C) the operations of the
Northeast Rail Lines shall be commandeered or repossessed (a requisa) for a period of 90
days or more.

          SECTION 6.02. Acceleration. If an Event of Default (other than an Event of Default
specified in clause (h), (i) or (j)(B)(x) above that occurs with respect to the Company) occurs and
is continuing under this Indenture, the Trustee or the Holders of at least 25% in aggregate
principal amount of the Notes then outstanding, by written notice to the Company (and to the
Trustee if such notice is given by the Holders), may, and the Trustee at the request of such
Holders shall, declare the principal of, premium, if any, and accrued interest on the Notes to be
immediately due and payable. Upon a declaration of acceleration, such principal of, premium, if
any, and accrued interest shall be immediately due and payable. In the event of a declaration of
acceleration because an Event of Default set forth in clause (e) above has occurred and is
continuing, such declaration of acceleration shall be automatically rescinded and annulled if the
event of default triggering such Event of Default pursuant to clause (e) shall be remedied or cured
by the Company or its Significant Subsidiary or waived by the holders of the Indebtedness within 60
days after the declaration of acceleration with respect thereto. If an Event of Default specified
in clause (h), (i) or (j)(B)(x) above occurs with respect to the Company, the principal of,
premium, if any, and accrued interest on the Notes then outstanding shall ipso facto become and be
immediately due and payable without any declaration or other act on the part of the Trustee or any
Holder. The Holders of at least a majority in principal amount of the outstanding Notes, by written
notice to the Company and to the Trustee, may waive all past defaults and rescind and annul a
declaration of acceleration and its consequences if (i) all existing Events of Default, other than
the nonpayment of the principal of, premium, if any, and interest on the Notes that have become due
solely by such declaration of acceleration, have been cured or waived and (ii) the rescission would
not conflict with any judgment or decree of a court of competent jurisdiction.

          SECTION 6.03. Other Remedies. If an Event of Default occurs and is continuing, the Trustee
may pursue any available remedy by proceeding at law or in equity to collect the payment of
principal of, premium, if any, or interest on the Notes or to enforce the performance of any
provision of the Notes or this Indenture.

          The Trustee may maintain a proceeding even if it does not possess any of the Notes or does not
produce any of them in the proceeding.

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          SECTION 6.04. Waiver of Past Defaults. Subject to Sections 6.02, 6.07 and
9.02, the Holders of at least a majority in principal amount of the outstanding Notes, by notice to
the Trustee, may waive an existing Default or Event of Default and its consequences, except a
Default in the payment of principal of, premium, if any, or interest on any Note as specified in
clause (a) or (b) of Section 6.01 or in respect of a covenant or provision of this Indenture which
cannot be modified or amended without the consent of the holder of each outstanding Note affected.
Upon any such waiver, such Default shall cease to exist, and any Event of Default arising therefrom
shall be deemed to have been cured, for every purpose of this Indenture; but no such waiver shall
extend to any subsequent or other Default or Event of Default or impair any right consequent
thereto.

          SECTION 6.05. Control by Majority. The Holders of at least a majority in aggregate
principal amount of the outstanding Notes may direct the time, method and place of conducting any
proceeding for any remedy available to the Trustee or exercising any trust or power conferred on
the Trustee; provided that the Trustee may refuse to follow any direction that conflicts with law
or this Indenture, that may involve the Trustee in personal liability, or that the Trustee
determines in good faith may be unduly prejudicial to the rights of Holders not joining in the
giving of such direction; and provided further that the Trustee may take any other action it deems
proper that is not inconsistent with any directions received from Holders of Notes pursuant to this
Section 6.05.

          SECTION 6.06. Limitation on Suits. A Holder may not institute any proceeding, judicial or
otherwise, with respect to this Indenture or the Notes, or for the appointment of a receiver or
trustee, or for any other remedy hereunder, unless:

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

     (ii) the Holders of at least 25% in aggregate principal amount of outstanding Notes
shall have made a written request to the Trustee to institute proceedings in respect of such
Event of Default in its own name as Trustee hereunder;

     (iii) such Holder or Holders have offered to the Trustee indemnity reasonably
satisfactory to the Trustee against any costs, liabilities or expenses to be incurred in
compliance with such request;

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

     (v) during such 60-day period, the Holders of a majority in aggregate principal
amount of the outstanding Notes have not given the Trustee a direction that is inconsistent
with such written request.

          For purposes of Section 6.05 of this Indenture and this Section 6.06, the Trustee shall comply
with TIA Section 316(a) in making any determination of whether the Holders of the required
aggregate principal amount of outstanding Notes have concurred in any request or direction of the
Trustee to pursue any remedy available to the Trustee or the Holders with respect to this Indenture
or the Notes or otherwise under the law.

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          A Holder may not use this Indenture to prejudice the rights of another Holder
or to obtain a preference or priority over such other Holder.

          SECTION 6.07. Rights of Holders to Receive Payment. Notwithstanding any other provision of
this Indenture, the right of any Holder of a Note to receive payment of principal of, premium, if
any, or interest on such Holder’s Note on or after the respective due dates expressed on such Note,
or to bring suit for the enforcement of any such payment on or after such respective dates, shall
not be impaired or affected without the consent of such Holder.

          SECTION 6.08. Collection Suit by Trustee. If an Event of Default in payment of principal,
premium or interest specified in clause (a) or (b) of Section 6.01 occurs and is continuing, the
Trustee may recover judgment in its own name and as trustee of an express trust against the Company
or any other obligor of the Notes for the whole amount of principal, premium, if any, and accrued
interest remaining unpaid, together with interest on overdue principal, premium, if any, and, to
the extent that payment of such interest is lawful, interest on overdue installments of interest,
in each case at the rate specified in the Notes, and such further amount as shall be sufficient to
cover the costs and expenses of collection, including the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel.

          SECTION 6.09. Trustee May File Proofs of Claim. The Trustee may file such proofs of claim
and other papers or documents as may be necessary or advisable in order to have the claims of the
Trustee (including any claim for the reasonable compensation, expenses, disbursements and advances
of the Trustee, its agents and counsel, and any other amounts due the Trustee under Section 7.07)
and the Holders allowed in any judicial proceedings relative to the Company (or any other obligor
of the Notes), its creditors or its property and shall be entitled and empowered to collect and
receive any monies, securities or other property payable or deliverable upon conversion or exchange
of the Notes or upon any such claims and to distribute the same, and any custodian, receiver,
assignee, sindico, trustee, liquidator, sequestrator or other similar official in any such judicial
proceeding is hereby authorized by each Holder to make such payments to the Trustee and, in the
event that the Trustee shall consent to the making of such payments directly to the Holders, to pay
to the Trustee any amount due to it for the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agent and counsel, and any other amounts due the Trustee under Section
7.07. Nothing herein
contained shall be deemed to empower the Trustee to authorize or consent to, or accept or adopt on
behalf of any Holder, any plan of reorganization, arrangement, adjustment or composition affecting
the Notes or the rights of any Holder thereof, or to authorize the Trustee to vote in respect of
the claim of any Holder in any such proceeding.

          SECTION 6.10. Priorities. If the Trustee collects any money pursuant to this Article Six,
it shall pay out the money in the following order:

          First: to the Trustee for all amounts due under Section 7.07;

          Second: to Holders for amounts then due and unpaid for principal of, premium, if any, and
interest on the Notes in respect of which or for the benefit of which such money has

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been collected, ratably, without preference or priority of any kind, according to the
amounts due and payable on such Notes for principal, premium, if any, and interest, respectively;
and

          Third: to the Company, or as a court of competent jurisdiction may direct.

          The Trustee, upon prior written notice to the Company, may fix a record date and payment date
for any payment to Holders pursuant to this Section 6.10.

          SECTION 6.11. Undertaking for Costs. In any suit for the enforcement of any right or
remedy under this Indenture or in any suit against the Trustee for any action taken or omitted by
it as Trustee, a court may require any party litigant in such suit to file an undertaking to pay
the costs of the suit, and the court may assess reasonable costs, including reasonable attorneys’
fees and expenses, against any party litigant in the suit having due regard to the merits and good
faith of the claims or defenses made by the party litigant. This Section 6.11 does not apply to a
suit by the Trustee, a suit by a Holder pursuant to Section 6.07 of this Indenture, or a suit by
Holders of more than 10% in principal amount of the outstanding Notes.

          SECTION 6.12. Restoration of Rights and Remedies. If the Trustee or any Holder has
instituted any proceeding to enforce any right or remedy under this Indenture and such proceeding
has been discontinued or abandoned for any reason, or has been determined adversely to the Trustee
or to such Holder, then, and in every such case, subject to any determination in such proceeding,
the Company, the Trustee and the Holders shall be restored severally and respectively to their
former positions hereunder and thereafter all rights and remedies of the Company, the Trustee and
the Holders shall continue as though no such proceeding had been instituted.

          SECTION 6.13. Rights and Remedies Cumulative. Except as otherwise provided with respect to
the replacement or payment of mutilated, destroyed, lost or wrongfully taken Notes in Section 2.09,
no right or remedy herein conferred upon or reserved to the Trustee or to the Holders is intended
to be exclusive of any other right or remedy, and
every right and remedy shall, to the extent permitted by law, be cumulative and in addition to
every other right and remedy given hereunder or now or hereafter existing at law or in equity or
otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not
prevent the concurrent assertion or employment of any other appropriate right or remedy.

          SECTION 6.14. Delay or Omission Not Waiver. No delay or omission of the Trustee or of any
Holder to exercise any right or remedy accruing upon any Event of Default shall impair any such
right or remedy or constitute a waiver of any such Event of Default or an acquiescence therein.
Every right and remedy given by this Article Six or by law to the Trustee or to the Holders may be
exercised from time to time, and as often as may be deemed expedient, by the Trustee or by the
Holders, as the case may be.

ARTICLE SEVEN

TRUSTEE

          SECTION 7.01. General. The duties and responsibilities of the Trustee shall be as provided
by the TIA and as set forth herein. Notwithstanding the foregoing, no provision of this Indenture
shall require the Trustee to expend or risk its own funds or otherwise

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incur any financial liability in the performance of any of its duties hereunder, or in
the exercise of any of its rights or powers, if it shall have reasonable grounds for believing that
repayment of such funds or adequate indemnity against such risk or liability is not reasonably
assured to it. Whether or not herein expressly so provided, every provision of this Indenture
relating to the conduct or affecting the liability of or affording protection to the Trustee shall
be subject to the provisions of this Article Seven.

          SECTION 7.02. Certain Rights of Trustee. Subject to TIA Sections 315(a) through (d):

     (i) the Trustee may conclusively rely, and shall be protected in acting or refraining
from acting, upon any resolution, certificate, statement, instrument, opinion, report, notice,
request, direction, consent, order, bond, debenture, note, other evidence of indebtedness or
other paper or document believed by it to be genuine and to have been signed or presented
by the proper person. The Trustee need not investigate any fact or matter stated in any such
document;

     (ii) before the Trustee acts or refrains from acting, it may require an Officers’
Certificate or an Opinion of Counsel. The Trustee shall not be liable for any action it takes
or omits to take in good faith in reliance on such certificate or opinion;

     (iii) the Trustee may act through its attorneys and agents and shall not be responsible
for the misconduct or negligence of any attorney or agent appointed with due care;

     (iv) the Trustee shall be under no obligation to exercise any of the rights or powers
vested in it by this Indenture at the request or direction of any of the Holders, unless such
Holders shall have offered to the Trustee reasonable security or indemnity satisfactory to it
against the costs, expenses and liabilities that might be incurred by it in compliance
with such request or direction;

     (v) the Trustee shall not be liable for any action it takes or omits to take in good
faith that it believes to be authorized or within its rights or powers conferred upon the
Trustee, under this Indenture;

     (vi) whenever in the administration of this Indenture the Trustee shall deem it desirable
that a matter be proved or established prior to taking, suffering or omitting any action
hereunder, the Trustee (unless other evidence be herein specifically prescribed) may, in the
absence of bad faith on its part, conclusively rely upon an Officers’ Certificate;

     (vii) the Trustee shall not be bound to make any investigation into the facts or matters
stated in any resolution, certificate, statement, instrument, opinion, report, notice,
request, direction, consent, order, bond, debenture, note, other evidence of indebtedness or
other paper or document, but the Trustee, in its discretion, may make such further
inquiry or investigation into such facts or matters as it may see fit and, if the Trustee
shall determine to make such further inquiry or investigation, it shall be entitled to examine
the books, records and premises of the Company personally or by agent or attorney at the

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expense of the Company and shall incur no liability of any kind by reason of
such inquiry or investigation;

     (viii) the Trustee may consult with counsel of its selection and the advice of such
counsel or any Opinion of Counsel shall be full and complete authorization and protection in
respect of any action taken, suffered or omitted by it thereunder in good faith and in
reliance thereon;

     (ix) the Trustee shall not be deemed to have notice of any Default or Event of Default
unless a Responsible Officer of the Trustee has actual knowledge thereof or unless written
notice of any event which is in fact such a Default is received by the Trustee at the
Corporate Trust Office of the Trustee, and such notice references the Notes and this
Indenture; and

     (x) the rights, privileges, protections, immunities and benefits given to the Trustee,
including, without limitation, its right to be indemnified, are extended to, and shall be
enforceable by, the Trustee in each of its capacities hereunder, and to each agent,
co-trustee, custodian and other Person employed to act hereunder.

          SECTION 7.03. Individual Rights of Trustee. The Trustee, in its individual or any other
capacity, may become the owner or pledgee of Notes and may otherwise deal
with the Company or its Affiliates with the same rights it would have if it were not the Trustee.
Any Agent may do the same with like rights. However, the Trustee is subject to TIA Sections 310(b)
and 311.

          SECTION 7.04. Trustee’s Disclaimer. The Trustee (i) makes no representation as to the
validity or adequacy of this Indenture or the Notes, (ii) shall not he accountable for the
Company’s use or application of the proceeds from the Notes and (iii) shall not be responsible for
any statement in the Notes other than its certificate of authentication.

          SECTION 7.05. Notice of Default. If any Default or any Event of Default occurs and is
continuing and if such Default or Event of Default is known to a Responsible Officer of the
Trustee, the Trustee shall mail to each Holder in the manner and to the extent provided in TIA
Section 313(c) notice of the Default or Event of Default within 90 days after it occurs, unless
such Default or Event of Default has been cured; provided, however, that, except in the case of a
default in the payment of the principal of, premium, if any, or interest on any Note, the Trustee
shall be protected in withholding such notice if and so long as a trust committee of Responsible
Officers of the Trustee in good faith determines that the withholding of such notice is in the
interest of the Holders.

          SECTION 7.06. Reports by Trustee to Holders. Within 60 days after each May 15, beginning
with May 15, 2003, the Trustee shall mail to each Holder as provided in TIA Section 313(c) a brief
report dated as of such May 15, if required by TIA Section 313(a).

          SECTION 7.07. Compensation and Indemnity. The Company shall pay to the Trustee and any
Paying Agent such compensation as shall be agreed upon in writing for its services. The
compensation of the Trustee and any Paying Agent shall not be limited by any law on compensation of
a trustee of an express trust. The Company shall reimburse the Trustee and

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any Paying Agent upon request for all reasonable out-of-pocket expenses and advances
incurred or made by the Trustee and any Paying Agent. Such expenses shall include the reasonable
compensation and expenses of the Trustee’s or Paying Agent’s agents and counsel.

          The Company shall indemnify the Trustee, its agents and officers, and any Paying Agent against
any and all losses, liabilities, obligations, damages, penalties, judgments, actions, claims,
suits, proceedings, reasonable costs and expenses (including reasonable fees and disbursements of
counsel) of any kind whatsoever which may be incurred by the Trustee, its agents and officers, or
any Paying Agent arising out of or in connection with the acceptance or administration of its
duties under this Indenture; provided, however, that the Company need not reimburse any expense or
indemnify against any loss, obligation, damage, penalty, judgment, action, suit, proceeding,
reasonable cost or expense (including reasonable fees and disbursements of counsel) of any kind
whatsoever which may be incurred by the Trustee or any Paying Agent in connection with any
investigative, administrative or judicial proceeding (whether or not such indemnified
party is designated a party to such proceeding) in which and to the extent that it is determined
that the Trustee, its agents and officers, or any Paying Agent acted with negligence, bad faith or
willful misconduct. The Trustee or any Paying Agent shall notify the Company promptly of any claim
of which a Responsible Officer of the Trustee has received written notice for which it may seek
indemnity. Failure by the Trustee or any Paying Agent to so notify the Company shall not relieve
the Company of its obligations hereunder, unless the Company is materially prejudiced thereby. The
Company shall defend the claim and the Trustee or any Paying Agent shall cooperate in the defense.
Unless otherwise set forth herein, the Trustee or any Paying Agent may have separate counsel and
the Company shall pay the reasonable fees and expenses of such counsel. The Company need not pay
for any settlement made without its consent, which consent shall not be unreasonably withheld.

          To secure the Company’s payment obligations in this Section 7.07, the Trustee and any Paying
Agent shall have a lien prior to the Notes on all money or property held or collected by the
Trustee or any Paying Agent, in its capacity as Trustee or Paying Agent, except money or property
held in trust by the Trustee or any Paying Agent to pay principal of, premium, if any, and interest
on particular Notes.

          If the Trustee or Paying Agent incurs expenses or renders services after the occurrence of an
Event of Default specified in clause (h) or (i) of Section 6.01, the expenses and the compensation
for the services will be intended to constitute expenses of administration under Title 11 of the
United States Bankruptcy Code or any applicable federal or state law for the relief of debtors.

          The provisions of this Section 7.07 shall survive the termination of this Indenture and the
resignation or removal of the Trustee.

          SECTION 7.08. Replacement of Trustee. A resignation or removal of the Trustee and
appointment of a successor Trustee shall become effective only upon the successor Trustee’s
acceptance of appointment as provided in this Section 7.08.

          The Trustee may resign at any time by so notifying the Company in writing at least 30 days
prior to the date of the proposed resignation. The Holders of a majority in principal

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amount of the outstanding Notes may remove the Trustee by so notifying the Trustee in
writing and may appoint a successor Trustee with the consent of the Company. The Company may at any
time remove the Trustee by Company Order given at least 30 days prior to the date of the proposed
removal.

          If the Trustee resigns or is removed, or if a vacancy exists in the office of Trustee for any
reason, the Company shall promptly appoint a successor Trustee. Within one year after the successor
Trustee takes office, the Holders of a majority in principal amount of the outstanding Notes may
appoint a successor Trustee to replace the successor Trustee appointed by the Company. If the
successor Trustee does not deliver its written
acceptance required by the next succeeding paragraph of this Section 7.08 within 30 days after the
retiring Trustee resigns or is removed, the retiring Trustee at the expense of the Company, the
Company or the Holders of a majority in principal amount of the outstanding Notes may petition any
court of competent jurisdiction for the appointment of a successor Trustee.

          A successor Trustee shall deliver a written acceptance of its appointment to the retiring
Trustee and to the Company, immediately after the delivery of such written acceptance, subject to
the lien provided in Section 7.07, (i) the retiring Trustee shall transfer all property held by it
as Trustee to the successor Trustee, (ii) the resignation or removal of the retiring Trustee shall
become effective and (iii) the successor Trustee shall have all the rights, powers and duties of
the Trustee under this Indenture. A successor Trustee shall mail notice of its succession to each
Holder.

          If the Trustee is no longer eligible under Section 7.10, any Holder who satisfies the
requirements of TIA Section 310(b) may petition any court of competent jurisdiction for the removal
of the Trustee and the appointment of a successor Trustee.

          The Company shall give notice of any resignation and any removal of the Trustee and each
appointment of a successor Trustee to all Holders. Each notice shall include the name of the
successor Trustee and the address of its Corporate Trust Office.

          Notwithstanding replacement of the Trustee pursuant to this Section 7.08, the Company’s
obligation under Section 7.07 shall continue for the benefit of the retiring Trustee.

          SECTION 7.09. Successor Trustee by Merger, Etc. If the Trustee consolidates with, merges
or converts into, or transfers all or substantially all of its corporate trust business to, another
corporation or national banking association, the resulting, surviving or transferee corporation or
national banking association without any further act shall be the successor Trustee with the same
effect as if the successor Trustee had been named as the Trustee herein.

          SECTION 7.10. Eligibility. This Indenture shall always have a Trustee who satisfies the
requirements of TIA Section 310(a)(1). The Trustee shall have a combined capital and surplus of at
least $25 million as set forth in its most recent published annual report of condition.

          SECTION 7.11. Money Held in Trust. The Trustee shall not be liable for interest on any
money received by it except as the Trustee may agree with the Company. Money

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held in trust by the Trustee need not be segregated from other funds except to the
extent required by law and except for money held in trust under Article Eight and Article Twelve of
this Indenture.

          SECTION 7.12. Withholding Taxes. The Trustee, as agent for the Company, shall exclude and
withhold from each payment of principal and interest and other amounts due hereunder or under the
Notes any and all withholding taxes applicable thereto as required by law. The Trustee agrees to
act as such withholding agent and, in connection therewith, whenever any present or future taxes or
similar charges are required to be withheld with respect to any amounts payable in respect of the
Notes, to withhold such amounts and timely pay the same to the appropriate authority in the name of
and on behalf of the Holders of the Notes, that it will file any necessary withholding tax returns
or statements when due, and that, as promptly as possible after the payment thereof, it will
deliver to each Holder appropriate documentation showing the payment thereof, together with such
additional documentary evidence as such Holders may reasonably request from time to time.

          SECTION 7.13. Appointment of Co-Trustee. It is the purpose of this Indenture that there
shall be no violation of any law of any jurisdiction (including particularly the law of the
relevant state) denying or restricting the right of banking corporations or associations to
transact business as trustee in such jurisdiction, It is recognized that in case of litigation
under this Indenture, and in particular in case of the enforcement thereof on default, or in the
case the Trustee deems that by reason of any present or future law of any jurisdiction it may not
exercise any of the powers, rights or remedies herein granted to the Trustee or hold title to the
properties, in trust, as herein granted or take any action which may be desirable or necessary in
connection therewith, it may be necessary that the Trustee appoint an individual or institution as
a separate or co-trustee. The following provisions of this Section are adopted to these ends.

          In the event that the Trustee appoints an additional individual or institution as a separate
or co-trustee, each and every remedy, power, right, claim, demand, cause of action, immunity,
estate, title, interest and lien expressed or intended by this Indenture to be exercised by or
vested in or conveyed to the Trustee with respect thereto shall be exercisable by and vest in such
separate or co-trustee but only to the extent necessary to enable such separate or co-trustee to
exercise such powers, rights and remedies, and only to the extent that the Trustee by the laws of
any jurisdiction (including particularly the relevant state) is incapable of exercising such
powers, rights and remedies and every covenant and obligation necessary to the exercise thereof by
such separate or co-trustee shall run to and be enforceable by either of them.

          Should any instrument in writing from the Issuer be required by the separate or co-trustee so
appointed by the Trustee for more fully and certainly vesting in and confirming to such properties,
rights, powers, trusts, duties and obligations, any and all such instruments in writing shall, on
request, be executed, acknowledged and delivered by the Company at the expense of the Company;
provided, that if an Event of Default shall have occurred and be continuing, if the Company does
not execute any such instrument within 15 days after a request therefor, the Trustee shall be
empowered as an attorney-in-fact for the Company to execute any such instrument in the Company’s
name and stead. In case any separate or co-trustee or a successor to either shall die, become
incapable of acting,
resign or be removed, all the estates, properties, rights, powers, trusts, duties and obligations
of such separate or co-trustee, so far as

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permitted by law, shall vest in and be exercised by the Trustee until the appointment
of a new trustee or successor to such separate or co-trustee.

ARTICLE EIGHT

DISCHARGE OF INDENTURE, DEFEASANCE

          SECTION 8.01. Termination of Company’s Obligations. Except as otherwise provided in this
Section 8.01, the Company may terminate its obligations under the Notes and this Indenture if:

     (i) all Notes previously authenticated and delivered (other than destroyed, lost or
stolen Notes that have been replaced or Notes that are paid pursuant to Section 4.01 or Notes
for whose payment money or securities have theretofore been held in trust and thereafter
repaid to the Company, as provided in Section 8.05) have been delivered to the Trustee
for cancellation and the Company has paid all sums payable by it hereunder; or

     (ii) (A) all Notes not theretofore delivered to the Trustee have become due and
payable, mature within one year or all of them are to be called for redemption within one year
under arrangements satisfactory to the Trustee for giving the notice of redemption, (B) the
Company irrevocably deposits or causes to be deposited in trust with the Trustee during
such one-year period, under the terms of an irrevocable trust agreement in form and substance
satisfactory to the Trustee, as trust funds solely for the benefit of the Holders for that
purpose, money or Government Securities sufficient (in the opinion of a nationally
recognized firm of independent public accountants expressed in a written certification thereof
delivered to the Trustee), without consideration of any reinvestment of any interest thereon,
to pay principal, premium, if any, and interest on the Notes to maturity or redemption, as the
case may be, and to pay all other sums payable by it hereunder, (C) the Company has paid
all other sums payable by it hereunder, and (D) the Company has delivered to the Trustee an
Officers’ Certificate and an Opinion of Counsel each stating (and such statements shall be
true) that (1) all conditions precedent provided for herein relating to the satisfaction and
discharge of this Indenture have been complied with and (2) such satisfaction and discharge
will not result in a breach or violation of, or constitute a default under, this Indenture or
any other material agreement or instrument (which, in the case of the Opinion of Counsel,
would be any other material agreement or instrument known to such counsel after due inquiry)
to which the Company is a party or by which it is bound.

          With respect to the foregoing clause (i), the Company’s obligations under Section 7.07 shall
survive. With respect to the foregoing clause (ii), the Company’s obligations in Sections 2.02,
2.03, 2.04, 2.05, 2.06, 2.07, 2.08, 2.09, 2.14, 4.01, 4.02, 7.07, 7.08, 8.04, 8.05 and 8.06 shall
survive until the Notes are no longer outstanding. Thereafter, only
the Company’s obligations in Sections 7.07, 8.05 and 8.06 shall survive such satisfaction and
discharge. After any such irrevocable deposit, the Trustee upon request shall acknowledge in
writing the discharge of the Company’s obligations, as the case may be, under the Notes and this
Indenture, except for those surviving obligations specified above.

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          SECTION 8.02. Defeasance and Discharge of Indenture. The Company will be
deemed to have paid and will be discharged from any and all obligations in respect of the Notes on
the 123rd day after the date of the deposit referred to in clause (A) of this Section 8.02 if:

     (A) with reference to this Section 8.02, the Company has irrevocably deposited or
caused to be irrevocably deposited with the Trustee (or another trustee satisfying the
requirements of Section 7.10 of this Indenture) and conveyed all right, title and interest for
the benefit of the Holders, under the terms of an irrevocable trust agreement in form and
substance reasonably satisfactory to the Trustee as trust funds in trust, specifically pledged
to the Trustee for the benefit of the Holders as security for payment of the principal of,
premium, if any, and interest, if any, on the Notes, and dedicated solely to the benefit
of the Holders, in and to (1) money in an amount, (2) Government Securities that, through the
payment of interest, premium, if any, and principal in respect thereof in accordance with
their terms, will provide, not later than one day before the due date of any payment
referred to in this clause (A), money in an amount or (3) a combination thereof in an amount
sufficient, in the opinion of a nationally recognized firm of independent public accountants
expressed in a written certification thereof delivered to the Trustee, to pay and discharge,
without consideration of the reinvestment of such interest and after payment of all
federal, state and local taxes or other charges and assessments in respect thereof payable by
the Trustee, the principal of, premium, if any, and accrued interest on the outstanding Notes
at the Stated Maturity of such principal or interest; provided that the Trustee shall
have been irrevocably instructed by the Company to apply such money or the proceeds of such
Government Securities to the payment of such principal, premium, if any, and interest with
respect to the Notes;

     (B) such deposit will not result in a breach or violation of, or constitute a default
under, this Indenture or any other agreement or instrument to which the Company or any of its
Subsidiaries is a party or by which the Company or any of its Subsidiaries is bound;

     (C) immediately after giving effect to such deposit on a pro forma basis, no Default
or Event of Default shall have occurred and be continuing on the date of such deposit; and no
Default or Event of Default shall occur during the period ending on the 123rd day after such
date of deposit;

     (D) the Company shall have delivered to the Trustee (1) either (x) a ruling directed
to the Trustee received from the Internal Revenue Service to the effect that the Holders will
not recognize income, gain or loss for U.S. federal income tax
purposes as a result of the Company’s exercise of its option under this Section 8.02 and will
be subject to United States federal income tax on the same amount and in the same manner
and at the same times as would have been the case if such option had not been exercised or (y)
an Opinion of Counsel to the same effect as the ruling described in clause (1)(x) above
accompanied by a ruling to that effect published by the Internal Revenue Service, unless such
Opinion of Counsel states that there has been a change in the applicable United States
federal income tax law since the date of this Indenture such that

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a ruling from the Internal Revenue Service is no longer required, (2) either
(x) an Opinion of Counsel to the effect that, based upon Mexican tax law then in effect,
Holders will not recognize income, gain or loss for Mexican federal income tax (including
withholding tax) purposes as a result of the Company’s exercise of its option under this
Section 8.02 and will be subject to Mexican federal income tax (including withholding tax)
on the same amount and in the same manner and at the same times as would have been the case
if such deposit, defeasance and discharge had not occurred, or (y) a ruling directed to the
Trustee received from the Mexican taxing authorities to the same effect as the Opinion of
Counsel described in clause (2)(x) above, and (3) an Opinion of Counsel to the effect
that (x) the creation of the defeasance trust does not violate the Investment Company Act of
1940 and (y) after the passage of 123 days following the deposit, the trust funds will not be
subject to the effect of Section 547 of the United States Bankruptcy Code or Section 15 of the
New York Debtor and Creditor Law in a case commenced by or against the Company under
either such statute;

     (E) if the Notes are then listed on a national securities exchange, the Company shall
have delivered to the Trustee an Opinion of Counsel to the effect that such deposit defeasance
and discharge will not cause the Notes to be delisted; and

     (F) the Company has delivered to the Trustee an Officers’ Certificate and an Opinion
of Counsel, in each case stating that all conditions precedent provided for herein relating to
the defeasance contemplated by this Section 8.02 have been complied with.

          Notwithstanding the foregoing, prior to the end of the 123-day period referred to in this
Section 8.02, none of the Company’s obligations under this Indenture shall be discharged.
Subsequent to the end of such 123-day period with respect to this Section 8.02, the Company’s
obligations in Sections 2.02, 2.03, 2.04, 2.05, 2.06, 2.07, 2.08, 2.09, 2.14, 4.01, 4.02, 7.07,
7.08, 8.05 and 8.06 shall survive until the Notes are no longer outstanding. Thereafter, only the
Company’s obligations in Sections 7.07, 8.05 and 8.06 shall survive. If and when a ruling or an
Opinion of Counsel referred to in clauses (D)(1) and (D)(2) of this Section 8.02 may be provided
specifically without regard to, and not in reliance upon, the continuance of the Company’s
obligations under Section 4.01, then the Company’s obligations under such Section 4.01 shall cease
upon delivery to the Trustee of such ruling or Opinion of Counsel and compliance with the other
conditions precedent provided for herein relating to the defeasance contemplated by this Section
8.02.

          After any such irrevocable deposit, the Trustee upon request shall acknowledge in writing the
discharge of the Company’s obligations under the Notes and this Indenture except for those
surviving obligations in the immediately preceding paragraph.

          SECTION 8.03. Defeasance of Certain Obligations. The Company may omit to comply with any
term, provision or condition set forth in clauses (iii) and (iv) of Section 5.01 and Sections 4.03
through 4.18, and clause (c) of Section 6.01 with respect to clauses (iii) and (iv) of Section
5.01, and clauses (d), (e) and (g) of Section 6.01 shall be deemed not to be Events of Default, in
each case with respect to the outstanding Notes, if:

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     (i) with reference to this Section 8.03, the Company has irrevocably
deposited or caused to be irrevocably deposited with the Trustee (or another trustee
satisfying the requirements of Section 7.10) and conveyed all right, title and interest to the
Trustee for the benefit of the Holders, under the terms of an irrevocable trust agreement in
form and substance satisfactory to the Trustee as trust funds in trust, specifically
pledged to the Trustee for the benefit of the Holders as security for payment of the principal
of, premium, if any, and interest, if any, on the Notes, and dedicated solely to the benefit
of the Holders, in and to (A) money in an amount, (B) Government Securities that, through
the payment of interest and principal in respect thereof in accordance with their terms, will
provide, not later than one day before the due date of any payment referred to in this clause
(i), money in an amount or (C) a combination thereof in an amount sufficient, in the opinion
of a nationally recognized firm of independent public accountants expressed in a written
certification thereof delivered to the Trustee, to pay and discharge, without consideration of
the reinvestment of such interest and after payment of all federal, state, local and foreign
taxes or other charges and assessments in respect thereof payable by the Trustee, the
principal of, premium, if any, and interest on the outstanding Notes on the Stated Maturity of
such principal or interest; provided that the Trustee shall have been irrevocably instructed
to apply such money or the proceeds of such Government Securities to the payment of such
principal, premium, if any, and interest with respect to the Notes;

     (ii) such deposit will not result in a breach or violation of, or constitute a default
under, this Indenture or any other material agreement or instrument to which the Company or
any of its Subsidiaries is a party or by which the Company or any of its Subsidiaries is
bound;

     (iii) immediately after giving effect to such deposit on a pro forma basis, no Default
or Event of Default shall have occurred and be continuing on the date of such deposit; and no
Default or Event of Default shall occur during the period ending on the 123rd day after such
date of deposit;

     (iv) the Company has delivered to the Trustee an Opinion of Counsel to the effect that
(A)(x) the creation of the defeasance trust does not violate the Investment Company Act of
1940 and (y) after the passage of 123 days following the deposit, the
trust funds will not be subject to the effect of Section 547 of the United States Bankruptcy
Code or Section 15 of the New York Debtor and Creditor Law in a case commenced by or
against the Company under either such statute, (B) the Holders will not recognize income, gain
or loss for United States federal income tax purposes as a result of such deposit and the
defeasance of the obligations referred to in the first paragraph of this Section 8.03 and
will be subject to United States federal income tax on the same amount and in the same manner
and at the same times as would have been the case if such deposit and defeasance had not
occurred and (C) the Holders will not recognize income, gain or loss for Mexican federal
income tax (including withholding tax) purposes as a result of such deposit and the
defeasance of the obligations referred to in the first paragraph of this Section 8.03 and will
be subject to Mexican federal income tax (including withholding tax) on the same amount and in
the same manner and at the same times as would have been the case if such deposit and
defeasance had not occurred;

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     (v) if the Notes are then listed on a national securities exchange,
the Company shall have delivered to the Trustee an Opinion of Counsel to the effect that such
deposit defeasance and discharge will not cause the Notes to be delisted; and

     (vi) the Company has delivered to the Trustee an Officers’ Certificate and an Opinion
of Counsel, in each case stating that all conditions precedent provided for herein relating to
the defeasance contemplated by this Section 8.03 have been complied with.

          SECTION 8.04. Application of Trust Money. Subject to Section 8.06, the Trustee or Paying
Agent shall hold in trust money or Government Securities deposited with it pursuant to Section
8.01, 8.02 or 8.03, as the case may be. and shall apply the deposited money and the money from
Government Securities in accordance with the Notes and this Indenture to the payment of principal
of, premium, if any, and interest on the Notes; but such money need not be segregated from other
funds except to the extent required by law.

          SECTION 8.05. Repayment to Company. Subject to Sections 7.07, 8.01, 8.02 and 8.03, the
Trustee and the Paying Agent shall promptly pay to the Company upon request set forth in an
Officers’ Certificate any excess money held by them at any time and thereupon shall be relieved
from all liability with respect to such money. The Trustee and the Paying Agent shall pay to the
Company upon request any money held by them for the payment of principal, premium, if any, or
interest that remains unclaimed for two years; provided that the Trustee or such Paying Agent
before being required to make any payment may cause to be published at the expense of the Company
once in a newspaper of general circulation in the City of New York or mail to each Holder entitled
to such money at such Holder’s address (as set forth in the Note Register) notice that such money
remains unclaimed and that after a date specified therein (which shall be at least 30 days from the
date of such publication or mailing) any unclaimed balance of such money then remaining will be
repaid to the Company. After payment to the Company, Holders entitled to such money must look to
the Company for payment as general creditors unless
an applicable law designates another Person, and all liability of the Trustee and such Paying Agent
with respect to such money shall cease.

          SECTION 8.06. Reinstatement. If the Trustee or Paying Agent is unable to apply any money
or Government Securities in accordance with Section 8.01, 8.02 or 8.03, as the case may be, by
reason of any legal proceeding or by reason of any order or judgment of any court or governmental
authority enjoining, restraining or otherwise prohibiting such application, the Company’s
obligations under this Indenture and the Notes shall be revived and reinstated as though no deposit
had occurred pursuant to Section 8.01, 8.02 or 8.03, as the case may be, until such time as the
Trustee or Paying Agent is permitted to apply all such money or Government Securities in accordance
with Section 8.01, 8.02 or 8.03, as the case may be; provided that, if the Company has made any
payment of principal of, premium, if any, or interest on any Notes because of the reinstatement of
its obligations, the Company shall be subrogated to the rights of the Holders of such Notes to
receive such payment from the money or Government Securities held by the Trustee or Paying Agent.

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ARTICLE NINE

AMENDMENTS, SUPPLEMENTS AND WAIVERS

          SECTION 9.01. Without Consent of Holders. The Company, when authorized by resolutions of
its Board of Directors, and the Trustee may amend or supplement this Indenture or the Notes without
notice to or the consent of any Holder:

     (1) to cure any ambiguity, defect or inconsistency in this Indenture; provided that
such amendments or supplements shall not adversely affect the interests of the Holders in any
material respect;

     (2) to comply with Article Five;

     (3) to comply with any requirements of the Commission in connection with the
qualification of this Indenture under the TIA;

     (4) to evidence and provide for the acceptance of appointment hereunder by a
successor Trustee or any additional Paying Agent; or

     (5) to make any change to comply with any requirements in connection with the listing
of the Notes on either the Luxembourg Stock Exchange or the Irish Stock Exchange that does not
materially and adversely affect the rights of any Holder; or

     (6) to provide for the issuance of Add On Notes as permitted by Section 3.05, which
will have terms substantially identical to the other outstanding Notes except as specified in
Section 3.05, and which will be treated, together with any other outstanding Notes, as a
single issue of securities.

          SECTION 9.02. With Consent of Holders. Subject to Sections 6.04 and 6.07 and without prior
notice to the Holders, the Company, when authorized by its Board of Directors (as evidenced by a
Board Resolution), and the Trustee may amend this Indenture and the Notes with the written consent
of the Holders of a majority in principal amount of the Notes then outstanding, and the Holders of
a majority in principal amount of the Notes then outstanding by written notice to the Trustee may
waive future compliance by the Company with any provision of this Indenture and the Notes.

          Notwithstanding the provisions of this Section 9.02, without the consent of each Holder
affected, an amendment or waiver, including a waiver pursuant to Section 6.04, may not;

     (i) change the Stated Maturity of the principal of, or any installment of interest
on, any Note, or reduce the principal amount thereof or the rate of interest thereon or any
premium payable upon the redemption thereof, or adversely affect any right of repayment at the
option of any Holder of any Note, or change any place of payment where, or the currency
in which, any Note or any premium or the interest thereon is payable, or impair the right to
institute suit for the enforcement of any such payment on or after the Stated Maturity thereof
(or, in the case of redemption, on or after the Redemption Date);

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     (ii) reduce the percentage in principal amount of outstanding Notes
the consent of whose Holders is required for any such supplemental indenture, for any waiver
of compliance with certain provisions of this Indenture or certain Defaults and their
consequences provided for in this Indenture;

     (iii) waive a Default in the payment of principal of, premium, if any, or interest on,
any Note;

     (iv) modify Section 4.20 in a manner adverse to the Holders;

     (v) modify any of the provisions of this Section 9.02, except to increase any such
percentage or to provide that certain other provisions of this Indenture cannot be modified or
waived without the consent of the Holder of each outstanding Note affected thereby.

          It shall not be necessary for the consent of the Holders under this Section 9.02 to approve
the particular form of any proposed amendment, supplement or waiver, but it shall be sufficient if
such consent approves the substance thereof.

          After an amendment, supplement or waiver under this Section 9.02 becomes effective, the
Company shall mail to the Holders affected thereby a notice briefly describing the amendment,
supplement or waiver. The Company will mail supplemental indentures to Holders upon request. Any
failure of the Company to mail such notice, or any defect therein, shall not, however, in any way
impair or affect the validity of any such supplemental indenture or waiver.

          SECTION 9.03. Revocation and Effect of Consent. Until an amendment or waiver becomes
effective, a consent to it by a Holder is a continuing consent by the Holder and every subsequent
Holder of a Note or portion of a Note that evidences the same debt as the Note of the consenting
Holder, even if notation of the consent is not made on any Note. However, any such Holder or
subsequent Holder may revoke the consent as to its Note or portion of its Note. Such revocation
shall be effective only if the Trustee receives the notice of revocation before the date the
amendment, supplement or waiver becomes effective. An amendment, supplement or waiver shall become
effective on receipt by the Trustee of written consents from the Holders of the requisite
percentage in principal amount of the outstanding Notes.

          The Company may, but shall not be obligated to, fix a record date for the purpose of
determining the Holders entitled to consent to any amendment, supplement or waiver. If a record
date is fixed, then, notwithstanding the last two sentences of the immediately preceding paragraph,
those persons who were Holders at such record date (or their duly designated proxies) and only
those persons shall be entitled to consent to such amendment, supplement or waiver or to revoke any
consent previously given, whether or not such persons continue to be Holders after such record
date. No such consent shall be valid or effective for more than 90 days after such record date.

          After an amendment, supplement or waiver becomes effective, it shall bind every Holder unless
it is of the type described in any of clauses (i) through (iv) of Section 9.02. In case of an
amendment or waiver of the type described in clauses (i) through (iv) of Section 9.02, the

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amendment or waiver shall bind each Holder who has consented to it and every subsequent
Holder of a Note that evidences the same indebtedness as the Note of the consenting Holder.

          SECTION 9.04. Notation on or Exchange of Notes. If an amendment, supplement or waiver
changes the terms of a Note, the Trustee may require the Holder to deliver it to the Trustee. The
Trustee may place an appropriate notation on the Note about the changed terms and return it to the
Holder and the Trustee may place an appropriate notation on any Note thereafter authenticated.
Alternatively, if the Company or the Trustee so determines, the Company in exchange for the Note
shall issue and the Trustee shall authenticate a new Note that reflects the changed terms. Failure
to make the appropriate notation or issue a new Note shall not affect the validity and effect of
such amendment, supplement or waiver.

          SECTION 9.05. Trustee to Sign Amendments, Etc. The Trustee shall be entitled to receive,
and shall be fully protected in relying upon, an Opinion of Counsel stating that the execution of
any amendment, supplement or waiver authorized pursuant to this Article Nine is authorized or
permitted by this Indenture. Subject to the preceding sentence, the Trustee shall sign such
amendment, supplement or waiver if the same does not adversely affect the rights of the Trustee.
The Trustee may, but shall not be obligated
to, execute any such amendment, supplement or waiver that affects the Trustee’s own rights, duties
or immunities under this Indenture or otherwise.

          SECTION 9.06. Conformity with Trust Indenture Act. Every supplemental indenture executed
pursuant to this Article Nine shall conform to the requirements of the TIA as then in effect.

ARTICLE TEN

[Intentionally Omitted]

ARTICLE ELEVEN

[Intentionally Omitted]

ARTICLE TWELVE

[Intentionally Omitted]

ARTICLE THIRTEEN

MISCELLANEOUS

          SECTION 13.01. Trust Indenture Act of 1939. Prior to the effectiveness of the Registration
Statement, this Indenture shall incorporate and be governed by the provisions of the TIA that are
required to be part of and to govern indentures qualified under the TIA. After the effectiveness of
the Registration Statement, this Indenture shall be subject to the provisions of the TIA that are
required to be a part of this Indenture and shall, to the extent applicable, be governed by such
provisions.

          SECTION 13.02. Notices. Any notice or communication shall be sufficiently given if in
writing and delivered in person or mailed by first class mail, postage prepaid. addressed as
follows:

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if to the Company:

TFM, S.A. de C.V.

Av. Periferico Sur No. 4829, 4to Piso

Parques del Pedregal, C.P.

14010, Delegacion Tlalpan, Mexico, D.F., Mexico

Attention: Chief Financial Officer

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if to the Trustee:

The Bank of New York

15 Broad Street

26th floor New York, NY 10005

Attention: Global Finance Unit

          The Company or the Trustee by notice to the other may designate additional or different
addresses for subsequent notices or communications.

          All notices or communications to a Holder shall be deemed to have been given upon the mailing
by first class mail, postage prepaid, of such notices to Noteholders at their registered addresses
as recorded in the Note Register. Copies of any such communication or notice to a Holder shall also
be mailed to the Trustee and each Agent at the same time.

          Failure to mail a notice or communication to a Holder or any defect in it shall not affect its
sufficiency with respect to other Holders. Except for a notice to the Trustee, which is deemed
given only when received, and except as otherwise provided in this Indenture, if a notice or
communication is mailed in the manner provided in this Section 13.02, it is duly given, whether or
not the addressee receives it.

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

          In case by reason of the suspension of regular mail service or by reason of any other cause it
shall be impracticable to give such notice by mail, then such notification as shall be made with
the approval of the Trustee shall constitute a sufficient notification for every purpose hereunder.
All communication delivered to the Trustee shall be deemed effective when actually received by the
Trustee.

          SECTION 13.03. Certificate and Opinion as to Conditions Precedent. Upon any request or
application by the Company to the Trustee to take or refrain from taking any action under this
Indenture, the Company shall furnish to the Trustee, if the Trustee so requests:

     (i) an Officers’ Certificate stating that, in the opinion of the signers, all conditions
precedent, if any, provided for in this Indenture relating to the proposed action have been
complied with; and

     (ii) an Opinion of Counsel stating that, in the opinion of such Counsel, all such
conditions precedent have been complied with.

-73-

 

          SECTION 13.04. Statements Required in Certificate or Opinion. Each
certificate or opinion with respect to compliance with a condition or covenant provided for in this
Indenture shall include:

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

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

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

     (iv) a statement as to whether or not, in the opinion of each such person, such
condition or covenant has been complied with; provided, however, that, with respect to matters
of fact, an Opinion of Counsel may rely on an Officers’ Certificate or certificates of public
officials.

          SECTION 13.05. Meetings of Noteholders. A meeting of the Noteholders to consider matters
affecting their interests may be called by the Trustee or the holders of at least 10% in aggregate
principal amount of the applicable outstanding Notes.

          SECTION 13.06. Rules by Trustee, Paying Agent or Registrar. The Trustee may make reasonable
rules for action by or at a meeting of Holders. The Paying Agent or Registrar may make reasonable
rules for its functions.

          SECTION 13.07. Payment Date Other Than a Business Day. If an Interest Payment Date,
Redemption Date, Change of Control Payment Date, Excess Proceeds Payment Date, Stated Maturity or
date of maturity of any Note shall not be a Business Day, then payment of principal of, premium, if
any, or interest on such Note, as the case may be, need not be made on such date, but may be made
on the next succeeding Business Day with the same force and effect as if made on the Interest
Payment Date, Change of Control Payment Date, Excess Proceeds Payment Date, or Redemption Date, or
at the Stated Maturity or date of maturity of such Note; provided that no interest shall accrue for
the period from and after such Interest Payment Date, Change of Control Payment Date, Excess
Proceeds Payment Date, Redemption Date, Stated Maturity or date of maturity, as the case may be.

          SECTION 13.08. Governing Law; Submission to Jurisdiction; Agent for Service. Each of the
parties hereto agrees that the Notes and this Indenture will be governed by the laws of the State
of New York. Each of the parties hereto hereby submits to the jurisdiction of the U.S. federal and
New York state courts located in the Borough of Manhattan, City and State of New York for purposes
of all legal actions and proceedings instituted in connection with the Notes and this Indenture,
and waives any objection which it may now have or hereafter have to the laying of venue of any such
action or proceeding and any right to which it may be entitled on account of place of residence or
domicile. The Company has appointed CT Corporation

-74-

 

System, 111 Eighth Avenue, 13th Floor, New York, New York 10011 as the Company’s
authorized agent upon which process may be served in any such action.

          SECTION 13.09. Currency Indemnity. U.S. dollars are the sole currency of account and
payment for all sums payable by the Company under or in connection with the Notes, including
damages. Any amount received or recovered in a currency other than U.S. dollars (whether as a
result of, or of the enforcement of, a judgment or order of a court of any jurisdiction, in the
winding-up or dissolution of the Company or otherwise) by any Holder in respect of any sum
expressed to be due to it from the Company shall only constitute a discharge to the Company to the
extent of the dollar amount which the
recipient is able to purchase with the amount so received or recovered in that other currency on
the date of that receipt or recovery (or, if it is not practicable to make that purchase on that
date, on the first date on which it is practicable to do so). If that dollar amount is less than
the dollar amount expressed to be due to the recipient under any Note, the Company shall indemnify
the recipient against any loss sustained by it as a result. In any event, the Company shall
indemnify the recipient against the cost of making any such purchase. For the purposes of this
Section 13.09, it will be sufficient for the Holder to certify in a satisfactory manner (indicating
the sources of information used) that it would have suffered a loss had an actual purchase of U.S.
dollars been made with the amount so received in that other currency on the date of receipt or
recovery (or, if a purchase of U.S. dollars on such date had not been practicable, on the first
date on which it would have been practicable, it being required that the need for a change of date
be certified in the manner mentioned above). These indemnities constitute a separate and
independent obligation from the Company’s other obligations, shall give rise to a separate and
independent cause of action, shall apply irrespective of any indulgence granted by any Holder and
shall continue in full force and effect despite any other judgment, order, claim or proof for a
liquidated amount in respect of any sum due under any Note.

          SECTION 13.10. No Adverse Interpretation of Other Agreements. This Indenture may not be
used to interpret another indenture, loan or debt agreement of the Company. Any such indenture,
loan or debt agreement may not be used to interpret this Indenture.

          SECTION 13.11. No Recourse Against Others. No recourse for the payment of the principal of,
premium, if any, or interest on any of the Notes, or for any claim based thereon or otherwise in
respect thereof, and no recourse under or upon any obligation, covenant or agreement of the Company
contained in this Indenture, or in any of the Notes, or because of the creation of any Indebtedness
represented thereby, shall be had against any incorporator, stockholder, officer, director,
employee or controlling person of the Company, or of any successor Person thereof, either directly
or through the Company or any successor Person, whether by virtue of any constitution, statute or
rule of law, or by the enforcement of any assessment or penalty or otherwise; it being expressly
understood that all such liability is hereby expressly waived and released as a condition of, and
as a consideration for, the execution of this Indenture and the issue of the Notes.

          SECTION 13.12. Successors. All agreements of the Company in this Indenture and the Notes
shall bind their successors. All agreements of the Trustee in this Indenture shall bind its
successors.

-75-

 

          SECTION 13.13. Duplicate Originals. The parties may sign any number of
copies of this Indenture. Each signed copy shall be an original, but all of them together represent
the same agreement.

          SECTION 13.14. Separability. In case any provision in this Indenture or in the Notes shall
be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining
provisions shall not in any way be affected or impaired thereby

          SECTION 13.15. Table of Contents, Headings, Etc. The Table of Contents, Cross-Reference
Table and headings of the Articles and Sections of this Indenture have been inserted for
convenience of reference only, are not to be considered a part hereof and shall in no way modify or
restrict any of the terms and provisions hereof.

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SIGNATURES

          IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly executed, all as
of the date first written above.

	 	 	 	 	 
	 	TFM, S.A. de C.V.

 	 
	 	By:  	/s/ Mario Mohar Ponce
 	 
	 	 	Name:  	Mario Mohar Ponce     	 
	 	 	Title:  	Chief Executive Officer 	 

	 	 	 	 	 
	 	By:  	/s/ Jacinto Marina Cortes
 	 
	 	 	Name:  	Jacinto Marina Cortes 	 
	 	 	Title:  	Director and Acting Chief
Financial Officer 	 

	 	 	 	 	 
	 	THE BANK OF NEW YORK, Trustee

 	 
	 	By:  	/s/ Miguel Barrios
 	 
	 	 	Name:  	Miguel Barrios          	 
	 	 	Title:  	Assistant Vice President 	 

 

 

	 	 	 	 	 

EXHIBIT A

[FACE OF NOTE]

TFM, S.A. de C.V.

12.50% Senior Notes 2012

[CUSIP]     [872402AE2]

[P91415AD4]

[CINS]     [                    ]

[ISIN]     [                    ]

U.S.$______

No.

          TFM, S.A. de C.V., a corporation (sociedad anonima de capital variable) organized under the
laws of Mexico (the “Company”, which term includes any successor under the Indenture hereinafter
referred to), for value received, promises to pay to                     , or its registered assigns, the
principal sum of                      ($___) on June 15, 2012.

          Interest Payment Dates: June 15 and December 15, commencing December 15, 2002.

          Regular Record Dates: June 1 and December 1.

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

 

 

          IN WITNESS WHEREOF, the Company has caused this Note to be signed manually
or by facsimile by its duly authorized officers.

	 	 	 	 	 
	Date: June 13, 2002 	TFM, S.A. de C.V.

 	 
	 	By:  	 	 
	 	 	Name:  	Jacinto Marina    	 
	 	 	Title:  	Acting Chief Financial Officer 	 

	 	 	 	 	 
	 	By:  	
 	 
	 	 	Name:  	Leon Ortiz   	 
	 	 	Title:  	Treasurer 	 

A-2

 

	 	 	 	 	 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

This is one of the 12.50% Senior Notes due 2012 described in the within-mentioned Indenture.

	 	 	 	 	 
	 	THE BANK OF NEW YORK,

as Trustee

 	 
	 	By:  	 	 
	 	 	Authorized Signatory 	 
	 	 	 	 

A-3

 

	 	 	 	 	 

[REVERSE SIDE OF NOTE]

TFM, S.A. de C.V.

12.50% Senior Notes due 2012

1. Principal and Interest.

          The Company will pay the principal of this Note on June 15, 2012.

          The Company promises to pay interest on the principal amount of this Note on each Interest
Payment Date, as set forth below, at the rate per annum shown above.

          Interest will be payable semiannually (to the holders of record of the Notes at the close of
business on the June 1 or December 1 immediately preceding the Interest Payment Date) on each
Interest Payment Date, commencing December 15, 2002.

          Interest on the Notes will accrue from the most recent date to which interest has been paid
or, if no interest has been paid, from June 13, 2002; provided that, if there is no
existing default in the payment of interest and this Note is authenticated between a Regular Record
Date referred to on the face hereof and the next succeeding Interest Payment Date, interest shall
accrue from such Interest Payment Date. Interest will be computed on the basis of a 360-day year of
twelve 30-day months.

          The Company shall pay interest on overdue principal and premium, if any, and interest on
overdue installments of interest, to the extent lawful, at a rate per annum that is 2% in excess of
the rate otherwise payable.

2. Method of Payment.

          The Company will pay principal as provided above and interest (except defaulted interest) on
the principal amount of the Notes as provided above on each June 15 and December 15 to the persons
who are Holders (as reflected in the Note Register at the close of business on June 1 and December
1 immediately preceding the Interest Payment Date), in each case, even if the Note is cancelled on
registration of transfer or registration of exchange after such record date; provided that, with
respect to the payment of principal, the Company will not make payment to the Holder unless this
Note is surrendered to a Paying Agent.

          The Company will pay principal, premium, if any, and, as provided above, interest (and
Additional Amounts, if any) in money of the United States that at the time of payment is legal
tender for payment of public and private debts. However, the Company may pay principal, premium, if
any, and interest by its check payable in such money. It may mail an interest check to a Holder’s
registered address (as reflected in the Note Register). If a payment date is a date other than a
Business Day at a place of payment, payment may be made at that place on the next succeeding day
that is a Business Day and no interest shall accrue for the intervening period.

A-4

 

3. Paying Agent and Registrar.

          Initially, the Trustee will act as authenticating agent, Paying Agent and Registrar. The
Company may appoint or change any authenticating agent, Paying Agent or Registrar without notice.
The Company, any Subsidiary or any Affiliate of any of them may act as Paying Agent, Registrar or
co-Registrar.

4. Indenture; Limitations.

          The Company issued the Notes under an Indenture dated as of June 13, 2002 (the “Indenture”),
between the Company and The Bank of New York, a New York banking corporation, as trustee (the
“Trustee”). Capitalized terms herein are used as defined in the Indenture unless otherwise
indicated. The terms of the Notes include those stated in the Indenture and those made part of the
Indenture by reference to the Trust Indenture Act. The Notes are subject to all such terms, and
Holders are referred to the Indenture and the Trust Indenture Act for a statement of all such
terms. To the extent permitted by
applicable law, in the event of any inconsistency between the terms of this Note and the terms of
the Indenture, the terms of the Indenture shall control.

          The Notes are general unsecured obligations of the Company. The Indenture limits the aggregate
principal amount of the Notes to U.S.$180,000,000 plus any Add On Notes or Exchange Notes that may
be issued in exchange for Notes pursuant to the Registration Rights Agreement.

5. Optional Redemption.

          The Notes will be redeemable, at the Company’s option, in whole at any time or in whole or in
part from time to time, on or after June 15, 2007 and prior to maturity, upon not less than 30 nor
more than 60 days’ prior notice mailed by first class mail to each Holders’ last address as it
appears in the Note Register, at the following Redemption Prices (expressed in percentages of
principal amount), plus accrued and unpaid interest, if any, to the Redemption Date (subject to the
right of Holders of record on the relevant Regular Record Date that is on or prior to the
Redemption Date to receive interest due on an Interest Payment Date), if redeemed during the
12-month period commencing June 15, of the years set forth below:

	 	 	 	 	 
	Year	 	Redemption Price
	2007
	 	 	106.250	%
	2008
	 	 	104.167	%
	2009
	 	 	102.083	%
	2010
	 	 	100.000	%
	2011
	 	 	100.000	%
	2012
	 	 	100.000	%

6. Redemption for Changes in Withholding Taxes.

          The Notes will be subject to redemption, in whole but not in part, at the option of the
Company at any time at 100% of their principal amount together with accrued interest thereon, if
any, to the Redemption Date, in the event the Company has become or would become

A-5

 

obligated to pay, on the next date on which any amount would be payable with respect to
the Notes, any Additional Amounts in excess of those attributable to a withholding tax rate of 4.9%
as a result of a change in or amendment to the laws (including any regulations or general rules
promulgated thereunder) of Mexico (or any political subdivision or taxing authority thereof or
therein), or any change in or amendment to any official position regarding the application,
administration or interpretation of such laws, regulations or general rules, including a holding of
a court of competent jurisdiction, which change or amendment is announced or becomes effective on
or after June 6, 2002. The Company shall not, however, have the right to redeem Notes from a Holder
pursuant to this Section except to the extent that it is obligated to pay Additional Amounts to
such Holder that are greater than the Additional Amounts that would be payable based on a Mexican
Withholding Tax rate of 4.9%.

7. Partial Redemption.

          In the case of any partial redemption, selection of the Notes for redemption will be made by
the Trustee in compliance with the requirements of the principal national securities exchange, if
any, on which such Notes are listed or, if such Notes are not listed on a national securities
exchange, by lot or by such other method as such Trustee in its sole discretion shall deem to be
fair and appropriate; provided that no Note of U.S.$100 in principal amount or less shall be
redeemed in part. If any Note is to be redeemed in part only, the notice of redemption relating to
such Note shall state the portion of the principal amount thereof to be redeemed. A Note in
principal amount equal to the unredeemed portion thereof will be issued in the name of the Holder
thereof upon cancellation of the original Note.

8. Notice of Redemption.

          Notice of any redemption pursuant to Section 5 hereof will be mailed at least 30 days but not
more than 60 days before the Redemption Date to each Holder of Notes to be redeemed at his or her
last address as it appears in the Note Register. Notice of any redemption pursuant to Section 6
hereof will be mailed at least six days before the Redemption Date to each Holder of Notes to be
redeemed at his or her last address as it appears in the Note Register. Notes in original
denominations larger than U.S.$100 may be redeemed in part. On and after the Redemption Date,
interest ceases to accrue and the principal amount shall remain constant (using the principal
amount as of the Redemption Date) on Notes or portions of Notes called for redemption, unless the
Company defaults in the payment of the Redemption Price.

9. Repurchase upon Change of Control.

          Upon the occurrence of any Change of Control, each Holder shall have the right to require the
repurchase of its Notes by the Company in cash pursuant to the offer described in the Indenture at
a purchase price equal to 101% of the principal amount thereof on the date of repurchase plus
accrued and unpaid interest, if any, to the date of purchase (the “Change of Control Payment”).

          A notice of such Change of Control will be mailed within 30 days after any Change of Control
occurs to each Holder at his last address as it appears in the Note Register. Notes in original
denominations larger than U.S.$100 may be sold to the Company in part. On

A-6

 

and after the Change of Control Payment Date, interest ceases to accrue and the
principal amount shall remain constant (using the principal amount as of the Change of Control
Payment Date) on Notes or portions of Notes surrendered for purchase by the Company, unless the
Company defaults in the payment of the Change of Control Payment.

10. Denominations; Transfer; Exchange.

          The Notes are in registered form without coupons in denominations of U.S. $100 of principal
amount and multiples of U.S.$100 in excess thereof. A Holder may register the transfer or exchange
of Notes in accordance with the Indenture. The Registrar may require a Holder, among other things,
to furnish appropriate endorsements and transfer documents and to pay any taxes and fees required
by law or permitted by the Indenture. The Registrar need not register the transfer or exchange of
any Notes selected for redemption. Also, it need not register the transfer or exchange of any
Notes for a period of 15 days before a selection of Notes to be redeemed is made.

11. Persons Deemed Owners.

          A Holder shall be treated as the owner of a Note for all purposes.

12. Unclaimed Money.

          If money for the payment of principal, premium, if any, or interest remains unclaimed for two
years, the Trustee and the Paying Agent will pay the money back to the Company at its request.
After that, Holders entitled to the money must look to the Company for payment, unless an abandoned
property law designates another Person, and all liability of the Trustee and such Paying Agent with
respect to such money shall cease.

13. Discharge Prior to Redemption or Maturity.

          The Company’s obligations pursuant to the Indenture will be discharged, except for obligations
pursuant to certain sections thereof, subject to the terms of the Indenture, upon the payment of
all the Notes or upon the irrevocable deposit with the Trustee of U.S. Dollars or Government
Securities sufficient to pay when due principal of and interest on the Notes to maturity or
redemption, as the case may be.

14. Amendment; Supplement; Waiver.

          Subject to certain exceptions, the Indenture or the Notes may be amended or supplemented with
the consent of the Holders of at least a majority in principal amount of the Notes then
outstanding, and any existing default or compliance with any provision may be waived with the
consent of the Holders of at least a majority in principal amount of the Notes then outstanding.
Without notice to or the consent of any Holder, the parties thereto may amend or supplement the
Indenture or the Notes to, among other things, cure any ambiguity, defect or inconsistency and make
any change that does not materially and adversely affect the rights of any Holder.

A-7

 

15. Restrictive Covenants.

          The Indenture imposes certain limitations on the ability of the Company and its Restricted
Subsidiaries, among other things, to incur Additional Indebtedness, make Restricted Payments, use
the proceeds from Asset Sales, enter into sale-leaseback transactions, engage in transactions with
Affiliates or, with respect to the Company,
merge, consolidate or transfer substantially all of their assets. Within 90 days after the end of
each fiscal year, the Company must report to the Trustee on compliance with such limitations.

16. Successor Persons.

          When a successor person or other entity assumes all the obligations of its predecessor under
the Notes and the Indenture, the predecessor person will be released from those obligations.

17. Defaults and Remedies.

          The following events constitute “Events of Default” under the Indenture: (a) default in the
payment of principal of (or premium, if any, on) any Note when the same becomes due and payable at
maturity, upon acceleration, redemption or otherwise; (b) default in the payment of interest on any
Note when the same becomes due and payable, and such default continues for a period of 30 days; (c)
the Company defaults in the performance of or breaches the provisions of Article Five of the
Indenture or fails to make or consummate an Offer to Purchase in accordance with Section 4.11 or
Section 4.12 of the Indenture; (d) the Company defaults in the performance of or breaches any other
covenant or agreement of the Company in the Indenture or under this Note (other than a default
specified in clause (a), (b) or (c) above), and such default or breach continues for a period of 30
consecutive days after written notice by the Trustee or the Holders of 25% or more in aggregate
principal amount of the Notes; (e) there occurs with respect to any issue or issues of Indebtedness
of the Company or any of its Significant Subsidiaries having an outstanding principal amount of $10
million or more in the aggregate for all such issues of all such Persons, whether such Indebtedness
now exists or shall hereafter be created, (I) an event of default that has caused the holder
thereof to declare such Indebtedness to be due and payable prior to its Stated Maturity and such
Indebtedness has not been discharged in full or such acceleration has not been rescinded or
annulled within 30 days of such acceleration and/or (II) the failure to make a principal payment at
the final (but not any interim) fixed maturity and such defaulted payment shall not have been made,
waived or extended within 30 days of such payment default; (f) [intentionally omitted]; (g) any
final judgment or order (not covered by insurance) for the payment of money in excess of $10
million in the aggregate for all such final judgments or orders against all such Persons (treating
any deductibles, self-insurance or retention as not so covered) shall be rendered against the
Company or any of its Significant Subsidiaries and shall not be paid or discharged, and there shall
be any period of 30 consecutive days following entry of the final judgment or order that causes the
aggregate amount for all such final judgments or orders outstanding and not paid or discharged
against all such Persons to exceed $10 million during which a stay of enforcement of such final
judgment or order, by reason of a pending appeal or otherwise, shall not be in effect; (h) a court
having jurisdiction in the premises enters a decree or order for (A) relief in respect of the
Company or any of its Significant Subsidiaries in an involuntary case under any applicable

A-8

 

bankruptcy, insolvency or other similar law now or hereafter in effect, (B) appointment
of a receiver, liquidator, assignee, custodian, trustee, sequestrator or similar official of the
Company or any of its Significant Subsidiaries or for all or substantially all of the property and
assets of the Company or any of its Significant Subsidiaries or (C) the winding up or liquidation
of the affairs of the Company or any of its Significant Subsidiaries and, in each case, such decree
or order shall remain unstayed and in effect for a period of 30 consecutive days; (i) the Company
or any of its Significant Subsidiaries (A) commences a voluntary case under any applicable
bankruptcy, insolvency or other similar law now or hereafter in effect, or consents to the entry of
an order for relief in an involuntary case under any such law, (B) consents to the appointment of
or taking possession by a receiver, liquidator, assignee, custodian, trustee, sequestrator or
similar official of the Company or any of its Significant Subsidiaries or for all or substantially
all of the property and assets of the Company or any of its Significant Subsidiaries or (C) effects
any general assignment for the benefit of creditors; or (j) (A) the Concession Title shall cease to
grant to the Company the rights (including exclusive rights) originally provided therein and such
cessation has had a material adverse effect on its Restricted Subsidiaries taken as a whole; (B)
(x) the Concession Title shall for any reason be terminated and not reinstated within 30 days or
(y) rights provided therein which were originally exclusive to the Company shall become
non-exclusive and the cessation of such exclusivity has had a material adverse effect on its
Restricted Subsidiaries, taken as a whole; or (C) the operations of the Northeast Rail Lines shall
be commandeered or repossessed (a requisa) for a period of 90 days or more. If an Event of Default
(other than an Event of Default specified in clause (h), (i) or (j)(B)(x) above that occurs with
respect to the Company) occurs and is continuing under this Indenture, the Trustee or the Holders
of at least 25% in aggregate principal amount of the Notes then outstanding, by written notice to
the Company (and to the Trustee if such notice is given by the Holders), may, and the Trustee at
the request of such Holders shall, declare the principal of, premium, if any, and accrued interest
on the Notes to be immediately due and payable.

          If a bankruptcy or insolvency default with respect to the Company any of its Significant
Subsidiaries occurs and is continuing, the Notes automatically become due and payable. Holders may
not enforce the Indenture or the Notes except as provided in the Indenture. The Trustee may require
indemnity satisfactory to it before it enforces the Indenture or the Notes. Subject to certain
limitations, Holders of at least a majority in principal amount of the Notes then outstanding may
direct the Trustee in its exercise of any trust or power.

18. Additional Amounts.

          Any payments by the Company under or with respect to the Notes may require the payment of
Additional Amounts as may become payable under Section 4.20 of the Indenture.

	19. Trustee Dealings with Company.

          The Trustee under the Indenture, in its individual or any other capacity, may make loans to,
accept deposits from and perform services for the Company or its Affiliates and may otherwise deal
with the Company or its Affiliates as if it were not the Trustee.

A-9

 

20. No Recourse Against Others.

          No incorporator or any past, present or future partner, shareholder, other equity holder,
officer, director, employee or controlling person as such, of the Company or of any successor
Person shall have any liability for any obligations of the Company under the Notes or the Indenture
or for any claim based on, in respect of or by reason of, such obligations or their creation. Each
Holder by accepting a Note waives and releases all such liability. The waiver and release are part
of the consideration for the issuance of the Notes.

21. Authentication.

          This Note shall not be valid until the Trustee or authenticating agent signs the certificate
of authentication on the other side of this Note.

22. Abbreviations.

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

          The Company will furnish to any Holder upon written request and without charge a copy of the
Indenture. Requests may be made to TFM, S.A. de C.V., Av. Pereferico Sur No. 4829, 4to Piso,
Parques del Pedregal, C.P. 14010, Delegacion Tlalpan, Mexico, D.F., Mexico, Attention: Jacinto
Marina, Director and Acting Chief Financial Officer, and Leon Ortiz, Treasurer.

A-10

 

[FORM OF TRANSFER NOTICE]

          FOR VALUE RECEIVED the undersigned registered holder hereby sell(s), assign(s) and transfer(s)
unto

Insert Taxpayer Identification No.

                                                                     
                                                                              
                                 
Please print or typewrite
name and address including zip code of assignee

             
              
              
               
                             
                                  
                                   
                      

the within Note and all
rights thereunder, hereby irrevocably constituting and appointing
               
               
               
              
              
        attorney to transfer said Note on the books of the
Company with full power of substitution in the premises.

[THE FOLLOWING PROVISION TO BE INCLUDED

ON ALL NOTES OTHER THAN EXCHANGE NOTES,

PERMANENT OFFSHORE GLOBAL NOTES AND

OFFSHORE PHYSICAL NOTES]

          In connection with any transfer of this Note occurring prior to the date which is the earlier
of (i) the date of an effective registration statement or (ii) the end of the period referred to in
Rule 144(k) under the Securities Act, the undersigned confirms that without utilizing any general
solicitation or general advertising:

[Check One]

	o     (a)	 	this Note is being transferred in compliance with the exemption from registration
under the Securities Act of 1933, as amended, provided by Rule 144A thereunder.

or

	o      (b)	 	this Note is being transferred other than in accordance with (a) above and
documents are being furnished which comply with the conditions of transfer set forth in
this Note and the Indenture.

A-11

 

If none of the foregoing boxes is checked, the Trustee or other Registrar shall not be
obligated to register this Note in the name of any Person other than the Holder hereof unless and
until the conditions to any such transfer of registration set forth herein and in Section 2.08 of
the Indenture shall have been satisfied.

	 	 	 	 	 
	Date:
	 	 	 	 
	 

	 	 
	 	 
	 

	 	 	 	NOTICE: The signature to this assignment must correspond with the
name as written upon the face of the within-mentioned instrument in every
particular, without alteration or any change whatsoever.

TO BE COMPLETED BY PURCHASER IF (a) ABOVE IS CHECKED.

          The undersigned represents and warrants that it is purchasing this Note for its own account or
an account with respect to which it exercises sole investment discretion and that it and any such
account is a “qualified institutional buyer” within the meaning of Rule 144A under the Securities
Act of 1933, as amended, and is aware that the sale to it is being made in reliance on Rule 144A
and acknowledges that it has received such information regarding the Company as the undersigned has
requested pursuant to Rule 144A or has determined not to request such information and that it is
aware that the transferor is relying upon the undersigned’s foregoing representations in order to
claim the exemption from registration provided by Rule 144A.

	 	 	 	 	 	 	 
	Date:

	 	 	 	 	 	 
	 

	 	 
	 	 	 	 
	 

	 	 	 	 	 	NOTICE: To be executed by an executive officer

A-12

 

OPTION OF HOLDER TO ELECT PURCHASE

          If you wish to have this Note purchased by the Company pursuant to Section 4.11 or Section
4.12 of the Indenture, check the Box:[ ]

          If you wish to have a portion of this Note purchased by the Company pursuant to Section 4.11
or Section 4.12 of the Indenture, state the amount: $                                        

Date:

	 	 	 
	Your Signature:
	 	 
	 

	 	 
	 

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

Signature Guarantee:                                         

A-13

 

          EXHIBIT B

Form of Certificate to Be Delivered

in Connection with Transfers

Pursuant to Regulation S

                                        ,                     

The Bank of New York

15 Broad Street

26th floor

New York, NY 10005

Attention: Corporate Trust Department

	 	Re:	 	 TFM, S.A. de C.V. (the “Company”)

      12.50% Senior Notes

      due 2012 (the “Notes”)

Ladies and Gentlemen:

          In connection with our proposed sale of U.S.$ ___aggregate principal amount of
the Notes, we confirm that such sale has been effected pursuant to and in accordance with
Regulation S under the U.S. Securities Act of 1933, as amended, and, accordingly, we represent
that:

     (1) the offer of the Notes was not made to a person in the United States;

     (2) at the time the buy order was originated, the transferee was outside the United
States or we and any person acting on our behalf reasonably believed that the transferee was
outside the United States;

     (3) no directed selling efforts have been made by us in the United States in
contravention of the requirements of Rule 903(b) or Rule 904(b) of Regulation S, as
applicable; and

     (4) the transaction is not part of a plan or scheme to evade the registration
requirements of the U.S. Securities Act of 1933.

          You and the Company are entitled to rely upon this letter and are irrevocably authorized to
produce this letter or a copy hereof to any interested parry in any administrative or legal
proceedings or official inquiry with respect to the matters covered hereby. Terms used in this
certificate have the meanings set forth in Regulation S.

	 	 	 	 	 
	 	Very truly yours,

[Name of Transferor]

 	 
	 	By:  	 	 
	 	 	Authorized Signature  	 
	 	 	 	 

 

 

	 	 	 	 	 

EXHIBIT C

Form of Certificate to Be

Delivered in Connection with

Transfers to Non-QIB Accredited Investors

(Other Than Outside the United States in Reliance on Regulation S)

                                        ,                     

The Bank of New York

15 Broad Street

26th floor

New York, NY 10005

Attention: Corporate Trust Department

	 	Re:	 	TFM, S.A. de C.V. (the “Company”)

      12.50% Senior Notes 

      due 2012 (the “Notes”)

Dear Sirs:

          in connection with our proposed purchase of U.S.$                     aggregate principal amount of the
Notes, we confirm that:

     1. We understand that any subsequent transfer of the Notes is subject to certain
restrictions and conditions set forth in the Indenture dated as of June 13, 2002 relating to
the Notes (the “Indenture”) and the undersigned agrees to be bound by, and not to resell,
pledge or otherwise transfer the Notes except in compliance with, such restrictions and
conditions and the Securities Act of 1933, as amended (the “Securities Act”).

     2. We understand that the offer and sale of the Notes have not been registered under
the Securities Act, and that the Notes may not be offered or sold except as
permitted in the following sentence. We agree, on our own behalf and on behalf of any accounts
for which we are acting as hereinafter stated, that if we should sell any Notes, we will do so
only (A) to the Company or any subsidiary thereof, (B) in accordance with Rule 144A under
the Securities Act to a “qualified institutional buyer” (as defined therein), (C) to an
institutional “accredited investor” (as defined below) that, prior to such transfer, furnishes
(or has furnished on its behalf by a U.S. broker-dealer) to you and to the Company a signed
letter substantially in the form of this letter, (D) outside the United States in accordance
with Rule 904 of Regulation S under the Securities Act, (E) pursuant to the exemption from
registration provided by Rule 144 under the Securities Act, or (F) pursuant to an effective
registration statement under the Securities Act, and we further agree to provide to any
person purchasing any of the Notes from us a notice advising such purchaser that resales of
the Notes are restricted as stated herein.

 

 

     3. We understand that, on any proposed
resale of any Notes, we will be required to furnish to you and the Company such
certifications, legal opinions and other information as you and the Company may reasonably
require to confirm that the proposed sale complies with the foregoing restrictions. We
further understand that the Notes purchased by us will bear a legend to the foregoing effect.

     5. We are purchasing notes having a minimum purchase price of not less than
US$250,000 for our own account or for any separate account for which we are acting.

     6. We are an “accredited investor” within the meaning of Rule 501(a)(1), (2), (3) or
(7) under the Securities Act or an entity in which all of the equity owners are accredited
investors within the meaning of Rule 501(a)(1), (2) or (3) under the Securities Act (an
“institutional accredited investor”) able to bear the economic risk of an investment in
the notes.

     7. Any purchase of notes by us will be for our own account or for the account of one
or more other institutional accredited investors for each of which we exercise sole investment
discretion (and have authority to make, and do make, the statements contained in this letter)
or as fiduciary for the account of one or more trusts, each of which is an “accredited
investor” within the meaning of Rule 501(a)(7) under the Securities Act and for each of which
we exercise sole investment discretion; or we are a “bank” within the meaning of Section
3(a)(2) of the Securities Act, or a “savings and loan association” or other institution
described in Section 3(a)(5)(A) of the Securities Act, that is acquiring the notes as
fiduciary for the account of one or more institutions for which we exercise sole investment
discretion.

     8. We have such knowledge and experience in financial and business matters so as to
be capable of evaluating the merits and risks of purchasing the notes.

          You and the Company are entitled to rely upon this letter and are irrevocably authorized to
produce this letter or a copy hereof to any interested party in any administrative or legal
proceedings or official inquiry with respect to the matters covered hereby.

	 	 	 	 	 
	 	Very truly yours,

[Name of Transferee]

 	 
	 	By:  	 	 
	 	 	Authorized Signature 	 
	 	 	 	 
	 

C-2

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