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Unassociated Document

    EXHIBIT
      4.26 
       

      VITRO
        GUARANTY

       

      THIS
        GUARANTY (this “Guaranty”)
        dated
        as of March 31, 2005, is made by VITRO, S.A. DE C.V., a corporation
        (“sociedad
        anónima de capital variable”)
        organized under the laws of the United Mexican States (the “Guarantor”),
        in
        favor of the holders of the Certificados
        Subordinados.

       

      W I T N E S S E T H:

       

      WHEREAS,
        pursuant to the Contrato
        de Fideicomiso Irrevocable de Emisión, Administración y
        Pago,
        dated
        as of March 23, 2005, by and between Compañía Vidriera,
        S.A.
        de C.V., a corporation organized under the laws of Mexico, Industria del
Álcali,
        S.A. de C.V., a corporation organized under the laws of Mexico, Comercializadora
        Álcali, S. de R.L. de C.V., a limited liability company organized under the
        laws
        of Mexico, as
        Fideicomitentes y Fideicomisarios en Tercer Lugar, ABN Amro Bank (Mexico),
        S.A.,
        Institución de Banca Múltiple Division Fiduciara, Banco Invex, S.A.,
        Institución de Banca Múltiple, Invex Grupo Financiero, as Representante Común,
as
        the
        same may be amended or modified from time to time (the “Trust
        Agreement”),
        the
        holders of Certificados
        Subordinados have
        certain rights and obligations, including the right to receive payments in
        respect of the Certificados
        Subordinados
        (as
        defined in the Trust Agreement) under the terms and conditions set forth
        in the
        Trust Agreement (the holders of such Certificados
        Subordinados are
        referred to herein as the “Subordinate
        Certificate Holders”);
        

       

      WHEREAS,
        the Guarantor has duly authorized the execution, delivery and performance
        of
        this Guaranty; and

       

      WHEREAS,
        it is in the best interests of the Guarantor to execute this Guaranty and
        the
        execution and delivery of this Guaranty is a material inducement for the
        Subordinate Certificate Holders to execute and deliver the purchase agreement
        relating to the Certificados
        Subordinados (the
        “Purchase
        Agreement”);

       

      NOW
        THEREFORE, for good and valuable consideration, the receipt and sufficiency
        of
        which are hereby acknowledged, the Guarantor agrees, for the benefit of the
        Subordinate Certificate Holders, as follows:

       

      ARTICLE
        I

       

      DEFINITIONS

       

      SECTION
        1.1  Certain
        Terms.
        The
        following terms when used in this Guaranty, including its preamble and recitals,
        shall have the following meanings (such definitions to be equally applicable
        to
        the singular and plural forms thereof):

       

      “Additional
        Costs”
        is
        defined in Section 6.11
        hereof.

       

      “Capital
        Stock”
        shall
        mean, with respect to any Person, any and all shares, interests, participation
        or other equivalents (however designated, whether voting or non-

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      voting)
        of such Person’s capital stock or other ownership interests, whether now
        outstanding or issued after the date hereof, including, without limitation,
        all
        common stock and Preferred Stock.

       

      “Capitalized
        Lease”
        shall
        mean, 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 Mexican GAAP, is
        required to be capitalized on the balance sheet of such Person; and “Capitalized
        Lease Obligation” is defined to mean the rental obligations, as aforesaid, under
        such lease.

       

      “Consolidated
        Subsidiaries”
        shall
        mean, as to any Person, all Subsidiaries of such Person which are consolidated
        with such Person for financial reporting purposes in accordance with
        GAAP.

       

      “Currency
        Agreement”
        shall
        mean any foreign exchange contract, currency swap agreement or other similar
        agreement or arrangement designed to protect the Guarantor, any Settlor or
        any
        Restricted Subsidiary against fluctuations in currency values.

       

      “GAAP”
        means,
        Mexican generally accepted accounting principles as in effect from time to
        time
        applied on a basis consistent with those applied in the preparation of then-most
        recent audited consolidated financial statements of the relevant Person and
        its
        Consolidated Subsidiaries delivered to the Trustee (except for changes concurred
        in by such Person’s independent auditors).

       

      “Government
        Agency”
        shall
        mean any ministry, administrative department, agency, commission, bureau,
        board,
        regulatory authority, registry, instrumentality, governmental body, entity,
        judicial or administrative body, central bank or court (including, without
        limitation, banking and taxing authorities) of, or controlled by, as the
        case
        may be, Mexico or the United States of America or any political subdivision
        thereof.

       

      “Governmental
        Approval”
        shall
        mean any authorization, approval, consent, license, concession, ruling, permit,
        certification, order, validation, exemption, waiver, variance, opinion of,
        or
        registration, filing or recording with, any applicable Government
        Agency.

       

      “Guaranteed
        Obligations”
        is
        defined in Section 2.1
        hereof.

       

      “Guarantor”
        is
        defined in the preamble
        hereof.

       

      “Guarantor
        Default”
        means
        any Guarantor Event of Default or any event, act or condition which, with
        notice
        or lapse of time, or both, would constitute a Guarantor Event of
        Default.

       

      “Guarantor
        Event of Default”
        is
        defined in Article V
        hereof.

       

      “Guaranty”
        is
        defined in the preamble.

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      “Indebtedness”
        shall
        mean, with respect to any Person at any date of determination (without
        duplication), (i) all indebtedness of such Person for borrowed money,
        or
        with respect to deposits or advances of any kind, and all obligations of
        such
        Person upon which interest charges are customarily paid, (ii) all
        obligations of such Person evidenced by bonds, debentures, notes or other
        similar instruments, (iii) all obligations of such Person in respect
        of
        bankers’ acceptances, letters of credit or other similar instruments (including
        reimbursement obligations with respect thereto), (iv) all obligations
        of
        such Person to pay the deferred and unpaid purchase price of property or
        services and all obligations of such Person under conditional sale or other
        title retention agreements relating to property acquired by such Person,
        (v) all obligations of such Person as lessee under Capitalized Leases,
        (vi) all Indebtedness of other Persons guarantied by such Person or
        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, and any liquidation preference and any mandatory redemption
        payment obligations in respect of, Preferred Stock issued by, other Persons
        guaranteed by such Person to the extent such Indebtedness is guaranteed by
        such
        Person, (viii) to the extent not otherwise included in this definition,
        obligations under Currency Agreements and Interest Rate Agreements net of
        all
        benefits under any Currency Agreements and Interest Rate Agreements to the
        extent able to be setoff against such obligations, (ix) the maximum
        fixed
        redemption or repurchase price of any redeemable stock issued by such Person.
        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 that
        the
        amount outstanding at any time of any Indebtedness issued with original issue
        discount is the face amount of such Indebtedness less the remaining unamortized
        portion of the original issue discount of such Indebtedness at such time
        as
        determined in conformity with GAAP. Notwithstanding the foregoing, “Indebtedness”
        shall
        not include (i) any liability to the Pension Benefit Guaranty Corporation
        under the term sheet dated January 29, 1997 and entered into in connection
        with the sale of assets of Anchor Glass Container Corporation (or any definitive
        agreement in respect thereof or instrument relating thereto) or (ii) Trade
        Payables.

       

      “Interest
        Rate Agreement”
        shall
        mean any interest rate swap agreement, interest rate collar agreement or
        other
        similar agreement or arrangement designed to protect the Guarantor or any
        of its
        Restricted Subsidiaries against fluctuations in interest rates.

       

      “Material
        Adverse Effect”
        means a
        material adverse effect on (a) the business, assets, operations, prospects
        or
        condition, financial or otherwise, of the Guarantor and its Subsidiaries
        on a
        consolidated basis, (b) the ability of the Guarantor or such Subsidiaries
        to
        perform any of its obligations hereunder, or under any of the Transaction
        Documents, or (c) the rights of or benefits available to the Subordinate
        Certificate Holders hereunder or under the Transaction Documents.

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      “Person”
        shall
        mean any individual, partnership, limited partnership, joint venture, firm,
        corporation, association, trust, estate or other enterprise or any government
        or
        political subdivision or any agency, department or instrumentality
        thereof.

       

      “Preferred
        Stock”
        shall
        mean, 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 stock, whether now outstanding or hereafter
        issued, including, without limitation, all series and classes of such preferred
        or preference stock.

       

      “Settlors”
        shall
        have the meaning ascribed to the terms Fideicomitentes
        and Fideicomisarios en Tercer Lugar
        under
        the Trust Agreement.

       

      “SHCP”
        is
        defined in Section 6.11
        hereof.

       

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

       

      “Subordinate
        Certificate Holders”
        is
        defined in the first recital
        hereof.

       

      “Subsidiary”
        shall
        mean, with respect to any Person, (i) any corporation, association
        or other
        business entity of which more than 50% of the outstanding Voting Stock is
        owned,
        directly or indirectly, by such Person and one or more other Subsidiaries
        of
        such Person or (ii) any other corporation, association or other business
        entity that is required by Mexican GAAP to be combined or consolidated with
        such
        Person for purposes of general financial reporting.

       

      “Trade
        Payables”
        shall
        mean, with respect to any Person, any accounts payable, Indebtedness or monetary
        obligation to trade creditors (or bankers’ acceptances, letters of credit or
        other similar instruments (including reimbursement obligations with respect
        thereto) issued to assure payment of any such accounts payable, Indebtedness
        or
        monetary obligation) Incurred by such Person arising in the ordinary course
        of
        business in connection with the acquisition of goods or services and required
        to
        be paid within one year from the date of Incurrence thereof.

       

      “Transaction
        Documents”
        shall
        mean the Trust
        Agreement, the Acta
        de Emisión,
        the
Certificados
        Subordinados,
        the
        Purchase Agreement and any other document related to, or in connection with,
        the
Emisión.

       

      “Trust”
        shall
        mean the trust established pursuant to the Trust Agreement.

       

      “Trust
        Agreement”
        is
        defined in the first recital
        hereof.

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

      “Trustee”
        shall
        have the meaning ascribed to the term Fiduciario in the Trust
        Agreement.

       

      “Voting
        Stock”
        shall
        mean 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.

       

      ARTICLE
        II

        

      GUARANTY
        PROVISIONS

       

      SECTION
        2.1  Guaranty.
        (a)
        The
        Guarantor hereby absolutely, unconditionally and irrevocably guarantees the
        full
        and prompt payment when due, whether at stated maturity, by acceleration
        or
        otherwise, and at all times thereafter, all principal, interest, fees and
        all
        other monetary obligations of the Trust owed to each of the Subordinate
        Certificate Holders relating to the Certificados
        Subordinados,
        howsoever created, arising or evidenced, whether direct or indirect, absolute
        or
        contingent, now or hereafter existing, or due or to become due, which arise
        out
        of or in connection with the Trust Agreement (all such obligations being
        herein
        collectively called the “Guaranteed
        Obligations”).

       

      This
        Guaranty constitutes a guaranty by the Guarantor of payment when due and
        not of
        collection, and the Guarantor specifically agrees that it shall not be necessary
        or required that the Trustee or any Subordinate Certificate Holder or any
        other
        Person exercise any right, assert any claim or demand or enforce any remedy
        whatsoever against the Trustee (or any other Person) before or as a condition
        to
        the obligations of the Guarantor hereunder. In the event that any of the
        Guaranteed Obligations shall not be paid when due within any period provided
        for
        in the Certificados
        Subordinados,
        the
        Guarantor agrees to pay such Guaranteed Obligations to the corresponding
        Subordinate Certificate Holder within 30 (thirty) calendar days after delivery
        of a written demand by any such Subordinate Certificate Holder to the Guarantor.
        Without limiting the generality of the foregoing, upon any default on the
        payment of any of the Guaranteed Obligations, the Subordinate Certificate
        Holders may demand payment directly to the Guarantor, either prior to or
        concurrently with any requirement or lawsuit against, or without bringing
        requirement or suit against, the Trust.

       

      (b)
          Any
        term
        or provision of this Guaranty or any other transaction document executed
        in
        connection with the Trust Agreement to the contrary notwithstanding, the
        aggregate maximum amount of the Guaranteed Obligations for which the Guarantor
        shall be liable shall not exceed the maximum amount for which the Guarantor
        can
        be liable without rendering this Guaranty or any other transaction document
        executed in connection with the Trust Agreement as it relates to the Guarantor,
        voidable under applicable law relating to fraudulent conveyance or fraudulent
        transfer.

       

      (c)
  Any
        term or provision of
        this Guaranty or the Trust Agreement or any other transaction document executed
        in connection therewith to the contrary notwithstanding, the aggregate maximum
        amount of the Guaranteed Obligations for which the Guarantor shall be liable
        with respect to the principal amount of the Certifcados
        Subordinados
        shall

       

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

    

     

    

      
        not
          exceed (x) USD$19,000,000 (nineteen million Dollars) minus (y) any
          principal amounts of the Certificados
          Subordinados
          indefeasibly paid in cash to the extent the Certifcados
          Subordinados
          have
          been permanently reduced with respect to such payment, or such higher amount
          as
          the Guarantor shall have agreed to in writing, provided,
          that
          the foregoing shall only limit Guarantor’s obligations for principal of the
Certifcados
          Subordinados
          but
          shall not limit or impair the Guarantor’s obligation with respect to any other
          Guaranteed Obligation.

         

        SECTION
          2.2  Acceleration
          of Guaranty.
          The
          Guarantor agrees that, if any Evento
          de Amortización Anticipada or Causa de Incumplimiento (as
          such
          terms are defined in the Trust Agreement) relating to the
          Certificados Subordinados under
          Cláusula 11 of the Trust Agreement or under the Acta
          de Emisión
          (as such
          term is defined in the Trust Agreement) shall occur at a time when any
          of the
          Guaranteed Obligations are not then due and payable, the Guarantor shall
          pay to
          the Trustee for the account of the Subordinate Certificate Holders forthwith
          the
          full amount which would be payable hereunder by the Guarantor if all Guaranteed
          Obligations were then due and payable, unless such Subordinate Certificate
          Holder is Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A. “Rabobank
          International”, New York Branch (“Rabobank”), a financial institution organized
          under the laws of the Kingdom of the Netherlands, acting through its branch
          office licensed by the State of New York, in which case the Guarantor will
          pay
          such amount directly to Rabobank.

         

        SECTION
          2.3  Guaranty
          Absolute, etc.
          This
          Guaranty shall in all respects be a continuing, absolute, unconditional
          and
          irrevocable guaranty of payment by the Guarantor, and shall remain in full
          force
          and effect until all Guaranteed Obligations have been paid in full, finally
          and
          indefeasibly. The Guarantor irrevocably guarantees that the Guaranteed
          Obligations shall be paid strictly in accordance with the terms of the
          Trust
          Agreement and any other transaction document executed in connection therewith
          under which they arise, regardless of any law, regulation or order now
          or
          hereafter in effect in any jurisdiction affecting any of such terms or
          the
          rights of any Subordinate Certificate Holder or any other Person with respect
          thereto. The liability of the Guarantor under this Guaranty shall be absolute,
          unconditional and irrevocable irrespective of, and shall not be released,
          discharged or in any way affected by any circumstance, condition or matter,
          including, without limitation:

         

        (a)
            any
          lack
          of validity, legality or enforceability of any of the Transaction Documents
          or
          any other transaction document executed in connection with the Trust
          Agreement;

         

        (b)
            the
          failure of the Trustee, any Subordinate Certificate Holder or any other
          Person:

         

        (i)
            to
          assert
          any claim or demand or to enforce any right or remedy against the Trust
          or any
          other Person (including any other guarantor) under the provisions of the
          Trust
          Agreement or any other transaction document executed in connection therewith
          or
          otherwise, or

         

         

         

        
          
            
            

          

          
            6

            
              

            

          

          
            
            

          

        

         

         

        (ii)
            to
          exercise any right or remedy against any other guarantor or against any
          collateral of any Guaranteed Obligations;

         

        (c)
            any
          change in the time, manner or place of payment of, or in any other term
          of, all
          or any of the Guaranteed Obligations, or any other amendment, waiver, extension,
          compromise or renewal of any Guaranteed Obligation;

         

        (d)
            any
          change, release or non-perfection of any collateral, or any release or
          amendment
          or waiver of any other guaranty or security agreement, for all or any of
          the
          Guaranteed Obligations;

         

        (e)
            any
          reduction, limitation, impairment or termination of any Guaranteed Obligations
          for any reason (other than payment), including any claim of waiver, release,
          surrender, alteration or compromise, and shall not be subject to (and the
          Guarantor hereby waives any right to or claim of) any defense or setoff,
          counterclaim, recoupment or termination whatsoever by reason of the invalidity,
          illegality, nongenuineness, irregularity, compromise, unenforceability
          of, or
          any other event or occurrence (other than indefeasible payment in full
          in cash
          of the Guaranteed Obligations) affecting, any Guaranteed
          Obligations;

         

        (f)
            any
          inability, lack of authority or legal disability of any party to execute,
          deliver and perform any of the Transaction Documents, or any other document
          under, derived from, or in connection with the Emisión
          (as
          such
          term is defined in the Trust Agreement;

         

        (g)
            any
          amendment to, rescission, nullification, waiver, or other modification
          of, or
          any consent to departure from, any of the terms of the Trust Agreement
          or any
          other transaction document executed in connection therewith, including
          without
          limitation any amendment, rescission, waiver or other modification or consent
          which results in an increase in the amount of the Guaranteed
          Obligations;

         

        (h)
            (i)
          any
          addition, exchange, release, surrender or non-perfection of any collateral
          or
          (ii) any amendment to or waiver or release or addition of, or consent
          to
          departure from, any other guaranty held by the Trustee, or any Subordinate
          Certificate Holder, securing or supporting any of the Guaranteed
          Obligations;

         

        (i)
            the
          voluntary or involuntary liquidation, dissolution, sale of assets, marshalling
          of assets and liabilities, receivership, conservatorship, custodianship,
          insolvency, bankruptcy, concurso
          mercantil,
          assignment for the benefit of creditors, reorganization, arrangement,
          composition or readjustment of or similar proceeding affecting (i) any
          Fideicomitente
          (as
          such
          term is defined in the Trust Agreement); (ii) any Subordinate Certificate
          Holder; or (iii) any estate of the Trust (Fideicomiso);

         

         

        
          
            
            

          

          
            7

            
              

            

          

          
            
            

          

        

         

         

        (j)
            any
          other
          circumstance (other than payment) which might otherwise constitute a defense
          available to, or a legal or equitable discharge of, the Trust, any surety
          or any
          other guarantor.

         

        SECTION
          2.4  Marshaling,
          Reinstatement.
          The
          Guarantor agrees that none of the Subordinate Certificate Holders nor any
          Person
          acting for or on behalf of the Subordinate Certificate Holders shall have
          any
          obligation to marshal any assets in favor of the Guarantor or against or
          in
          payment of any or all of the Guaranteed Obligations. If the Guarantor or
          any
          other guarantor of all or any part of the Guaranteed Obligations makes
          a payment
          to any Subordinate Certificate Holder, or if any Subordinate Certificate
          Holder
          receives any other payment in respect of the Guaranteed Obligations, which
          payment or any part thereof is subsequently invalidated, declared to be
          fraudulent or preferential, set aside and/or required to be repaid to the
          Guarantor, such other guarantor or any other Person, or their respective
          estates, trustees, receivers or any other party, under any bankruptcy law,
          “concurso
          mercantil”,
          state
          or federal law, common law or equitable cause, then, to the extent of such
          payment or repayment, the part of the Guaranteed Obligations which has
          been
          paid, reduced or satisfied by such amount shall be reinstated and continued
          in
          full force and effect as of the time immediately preceding such initial
          payment,
          reduction or satisfaction.

         

        SECTION
          2.5  The
          Guarantor agrees that its guaranty hereunder shall continue to be effective
          or
          be reinstated, as the case may be, if at any time payment, or any part
          thereof,
          of any monetary obligation of the Trust to a Subordinate Certificate Holder
          is
          rescinded or must otherwise be restored upon the bankruptcy, concurso
          mercantil
          or
          reorganization of the Fidecomitentes/Fideicomisarios (as defined in the
          Trust
          Agreement).

         

        SECTION
          2.6  Waiver,
          etc.
          The
          Guarantor hereby waives, to the greatest extent permitted by applicable
          law:

         

        (i) any
          and
          all notice of the creation, renewal, extension or accrual of any of the
          Guaranteed Obligations;

         

        (ii)
          promptness, diligence or notice of acceptance and any other notice with
          respect
          to any of the Guaranteed Obligations and this Guaranty and any requirement
          that
          the Trustee, or any Subordinate Certificate Holder protect, secure, perfect
          or
          insure any security interest or lien, or any property subject thereto,
          or
          exhaust any right or take any action against the Trustee or any other Person
          (including any other guarantor) or entity or any collateral securing any
          Guaranteed Obligations or any of the other Obligations;

         

        (iii) any
          and
          all rights which the Guarantor may have under, or which at any time hereafter
          may be conferred upon it by, any law or any other regulation limiting its
          liabilities under this Guaranty;

         

        (iv) any
          right, beneficio
          de orden, división
          and
excusión
          and any
          of the rights provided for in Articles 2813, 2814, 2815, 2816, 2817,
          2818,
          2820, 2821, 2822, 2823, 2836, 2842, 2845, 2846, 2847, 2848, 2849 et
          al
          of the
          Federal Civil Code and the corresponding provisions of the Civil Code for
          the
          Federal District of Mexico and of the 

         

        
          
            
            

          

          
            8

            
              

            

          

          
            
            

          

        

         

        civil
          codes for all the states of Mexico, which are not reproduced herein inasmuch
          as
          the Guarantor hereby represents to be familiar with the contents thereof,
          as
          well as all other rights and defenses the assertion or exercise of which
          would
          in any way diminish the liability of the undersigned hereunder.

         

        Without
          limiting the generality of the foregoing, the Guarantor hereby acknowledges
          and
          agrees that it shall not be a third party beneficiary to the Trust Agreement
          or
          any other transaction document executed in connection therewith.

         

        SECTION
          2.7  Waiver
          of Subrogation and Contribution.
          Until
          the Guaranteed Obligations have been paid in cash indefeasibly in full,
          the
          Guarantor hereby irrevocably waives any claim or other rights which it
          may now
          or hereafter acquire against the Trustee or any other Person that arise
          from the
          existence, payment, performance or enforcement of the Guarantor’s obligations
          under this Guaranty or any other transaction document executed in connection
          therewith, including any right of subrogation, reimbursement, contribution,
          exoneration, or indemnification, any right to participate in any claim
          or remedy
          of the Trustee or any Subordinate Certificate Holder against any Person
          or any
          collateral which the Trustee or any Subordinate Certificate Holder now
          has or
          hereafter acquires, whether or not such claim, remedy or right arises in
          equity,
          or under contract, statute or common law, including the right to take or
          receive
          from the Trustee or any other Person, directly or indirectly, in cash or
          other
          property or by set-off or in any manner, payment or security on account
          of such
          claim or other rights. If any amount shall be paid to the Guarantor in
          violation
          of the preceding sentence and the Guaranteed Obligations shall not have
          been
          paid in cash indefeasibly in full, such amount shall be deemed to have
          been paid
          to the Guarantor for the benefit of, and held in trust for, the Trustee
          and the
          Subordinate Certificate Holders, and shall forthwith be paid to the Trustee
          for
          the account of the Trustee and the Subordinate Certificate Holders to be
          credited and applied upon the Guaranteed Obligations, whether matured or
          unmatured. The Guarantor acknowledges that it will receive direct and indirect
          benefits from the financing arrangements contemplated by the Trust Agreement
          and
          that the waiver set forth in this Section is knowingly made in contemplation
          of
          such benefits. If the Guarantor has made payment to the Trustee and the
          Subordinate Certificate Holders of all or any part of the Guaranteed
          Obligations, the Trustee and the Subordinate Certificate Holders agree
          to
          execute and deliver to the Guarantor appropriate documents (without recourse
          and
          without representation and warranty) necessary to evidence the transfer
          by
          subrogation to the Guarantor of an interest in the Guaranteed Obligations
          resulting from such payment by the Guarantor.

         

        ARTICLE
          III

         

        REPRESENTATIONS
          AND WARRANTIES

         

        The
          Guarantor represents and warrants to the Subordinate Certificate Holders
          that:

         

        SECTION
          3.1  Organization,
          etc.
          The
          Guarantor is duly organized and validly existing under the laws of its
          jurisdiction of formation; and the Guarantor has full corporate power and
          authority to own its property and conduct its business as presently conducted
          by
          it
          and,
          except where the failure to do so, individually or in the aggregate, could
          not
          reasonably be expected to result in a Material Adverse Effect, is qualified
          to
          do business in, and is in good standing in, every jurisdiction where such
          qualification is required. The
          Guarantor’s legal representatives have full power and authority to execute this
          Guaranty on its behalf, which authority has not been revoked, limited or
          modified in any manner whatsoever.

         

        SECTION
          3.2  Authorization;
          No Conflict.
          The
          execution and delivery by the Guarantor of this Guaranty, and the performance
          by
          the Guarantor of its obligations under this Guaranty, are within the corporate
          powers of the Guarantor, have been duly authorized by all necessary corporate
          action on the part of the Guarantor (including any necessary shareholder
          or
          Board action), and do not and will not (a) violate any provision
          of law
          which is binding on the Guarantor, (b) contravene or conflict with,
          or
          result in a breach of, any provision of the organizational documents of
          the
          Guarantor or of any material agreement, indenture, instrument or other
          document,
          or any judgment, order or decree, which is binding on the Guarantor or
          (c) result in, or require, the creation or imposition of any lien
          on any
          property of the Guarantor.

         

        SECTION
          3.3  Validity
          and Binding Nature.
          This
          Guaranty is the legal, valid and binding obligation of the Guarantor,
          enforceable against the Guarantor in accordance with its terms, except
          that
          enforceability may be limited by bankruptcy, insolvency, concurso
          mercantil,
          fraudulent conveyance, fraudulent transfer, reorganization, moratorium
          or other
          similar laws now or hereafter in effect relating to creditors’ rights generally
          and by general principles of equity (regardless of whether enforcement
          is sought
          in equity or at law).

         

        SECTION
          3.4  Benefit
          to Guarantor.
          The
          Guarantor’s guarantee pursuant to this Guaranty reasonably may be expected to
          benefit, directly or indirectly, the Guarantor and that such guarantee
          and other
          obligations are necessary and convenient to the conduct, promotion and
          attainment of the business of the Guarantor.

         

        SECTION
          3.5  Governmental
          Approvals.
          No
          Governmental Approval or consent or approval of any other Person is required
          to
          authorize, or is required in connection with (i) the execution,
          delivery
          and performance by the Guarantor of this Guaranty, or (ii) the legality,
          validity, binding effect or enforceability against the Guarantor of this
          Guaranty.

         

        SECTION
          3.6  Litigation.
          There
          is no litigation, action, suit, investigation, claim or proceeding pending
          or,
          to the knowledge of the Guarantor, threatened with respect to this Guaranty
          or
          the transactions contemplated hereby.

         

        SECTION
          3.7  Notwithstanding
          the fact that the Certificados Subordinados are subordinated to the Certificados
          Bursátiles Preferentes,
          no
          payment under this Guaranty is subject to redistribution to the holders
          of the
Certificados
          Bursátiles Preferentes.

         

         

        
          
            
            

          

          
            9

            
              

            

          

          
            
            

          

        

         

         

        

          

          ARTICLE
            IV

           

          AFFIRMATIVE
            AND NEGATIVE COVENANTS

           

          The
            Guarantor covenants and agrees that on and after the date hereof and
            until the
            Guaranteed Obligations are paid in full:

           

          

            SECTION
              4.1  Information
              Covenants.

             

            Guarantor
              will furnish or cause to be furnished to the Trustee for distribution
              to each
              Subordinate Certificate Holder:

             

            (a)
                Annual
              Financial Statements.
              As soon
              as available, but, in any event, within 120 days after the close
              of each
              fiscal year of Guarantor, the consolidated balance sheet of the Guarantor
              and
              its Consolidated Subsidiaries for such fiscal year, together with the
              related
              consolidated statements of income and retained earnings and statements
              of
              changes in financial position for such fiscal year certified by independent
              public accountants of recognized international standing selected by
              the
              Guarantor, and in each case pursuant to an unqualified opinion of such
              independent public accountants, which audit was conducted in accordance
              with
              GAAP consistently applied. 

             

            (b)
                Quarterly
              Financial Statements.
              As soon
              as available, but, in any event, within 60 days after the close
              of each
              quarterly accounting period in each fiscal year of the Guarantor, a
              copy of the
              unaudited balance sheet of the Guarantor and its Consolidated Subsidiaries
              for
              such period, together with the related statements of income and retained
              earnings and statements of changes in financial position for such quarterly
              period, certified by the principal executive officer, the principal
              financial
              officer or another authorized executive officer of the Guarantor, who
              in such
              capacity has actual knowledge of the matters to which he or she is
              certifying,
              as prepared in accordance with GAAP consistently applied, subject to
              normal
              recurring year-end adjustments and the absence of certain footnotes
              to such
              financial statements.

            

              (c)
                  Officer’s
                Certificates.
                As soon
                as available, but in any event, within 45 days after the close
                of each
                quarterly accounting period in each fiscal year of the Guarantor,
                a certificate
                signed by an executive officer of the Guarantor to the effect that,
                to the best
                of such officer’s knowledge, there has not occurred any of the events described
                in the Acuerdo
                Tercero (Y) Cuenta de la Garantía
                of the
Sesión
                del Comité Técnico Inicial
                dated
                March 29, 2005.

               

              

                SECTION
                  4.1  Books,
                  Records and Inspections; Accounting Matters; Provision of Certain
                  Financial
                  Statements.
                  The
                  Guarantor shall, and shall cause each of its Subsidiaries to, keep
                  proper books
                  of record and account adequate to reflect truly and fairly the
                  financial
                  condition and results of operations of the Guarantor and its Subsidiaries
                  and in
                  which full, true and correct entries in conformity with GAAP consistently
                  applied and all requirements of law shall be made of all dealings
                  and

                 

                 

                
                  
                    
                    

                  

                  
                    10

                    
                      

                    

                  

                  
                    
                    

                  

                

                 

                transactions
                  in relation to its business and activities. At any time when securities
                  of the
                  Guarantor or any of its Subsidiaries are held by the public, promptly
                  upon the
                  delivery or filing thereof, the Guarantor shall deliver to the
                  Trustee a copy of
                  all reports and registration statements that such Guarantor or
                  such Subsidiary
                  files with the Securities and Exchange Commission of the United
                  States of
                  America or the Comision Nacional Bancaria y de Valores or any Mexican
                  or other
                  securities authority or exchange.

                 

                SECTION
                  4.3  Modification
                  of Certain Agreements.
                  The
                  Guarantor will not amend or modify, or permit the amendment or
                  modification of
                  this Guaranty without the prior written consent of the majority
                  of the
                  Subordinate Certificate Holders.

                 

                ARTICLE
                  II  

                 

                MISCELLANEOUS
                  PROVISIONS

                 

                SECTION
                  5.1  Binding
                  on Successors, Transferees and Assigns; Assignment of Guaranty.
                  This
                  Guaranty shall be binding upon the Guarantor and its successors,
                  transferees and
                  assigns, and all references herein to the Guarantor, shall be deemed
                  to include
                  any of its successor or successors, whether intermediate or remote;
provided,
                  however,
                  that
                  the Guarantor shall not have the right to assign any of its obligations
                  hereunder without the prior written consent of the Trustee and
                  a majority of the
                  Subordinate Certificate Holders. Any Subordinate Certificate Holders
                  may from
                  time to time, without notice to the Guarantor, assign or transfer
                  any or all of
                  the Guaranteed Obligations or any interest therein; and, notwithstanding
                  any
                  such assignment or transfer or any subsequent assignment or transfer
                  thereof,
                  such Guaranteed Obligations shall be and remain Guaranteed Obligations
                  for the
                  purpose of this Guaranty, and each and every immediate and successive
                  assignee
                  or transferee of any of the Guaranteed Obligations or of any interest
                  therein
                  shall, to the extent of the interest of such assignee or transferee
                  in the
                  Guaranteed Obligations, be entitled to the benefits of this Guaranty
                  and shall
                  be protected to the same extent as if such assignee or transferee
                  were a
                  Subordinate Certificate Holder as of the date hereof.

                 

                SECTION
                  5.2  Amendments,
                  etc.
                  All
                  amendments to or waivers of any provision of this Guaranty, and
                  all consents to
                  any departure by the Guarantor herefrom, shall comply in all respects
                  with
                  Cláusula 21 of the Trust Agreement, which is incorporated herein
                  by
                  reference, mutatis mutandis,
                  as if
                  such terms were set forth in this Guaranty in full.

                 

                SECTION
                  5.3  Addresses
                  for Notices to the Guarantors.
                  All
                  notices hereunder to the Guarantor shall be in writing (including
                  via facsimile)
                  and shall be sent to it at the address or facsimile number set
                  forth below its
                  signature hereto or at such other address or facsimile number as
                  may be
                  designated by the Guarantor in a written notice received by the
                  Trustee and the
                  Subordinate Certificate Holders. Notices sent by facsimile transmission
                  shall be
                  effective when received; notices sent by mail (including by
                  courier)

                 

                 

                
                  
                    
                    

                  

                  
                    11

                    
                      

                    

                  

                  
                    
                    

                  

                

                 

                shall
                  be
                  deemed to have been given or made when delivered; and notices sent
                  by hand
                  delivery shall be deemed to have been received when received.

                 

                SECTION
                  5.4  No
                  Waiver; Remedies.
                  In
                  addition to, and not in limitation of, Section 2.3,
                  Section 2.5,
                  and
Section 2.7,
                  no
                  failure on the part of the Trustee or any Subordinate Certificate
                  Holder to
                  exercise, and no delay in exercising, any right hereunder shall
                  operate as a
                  waiver thereof; nor shall any single or partial exercise of any
                  right hereunder
                  preclude any other or further exercise thereof or the exercise
                  of any other
                  right. The remedies herein provided are cumulative and not exclusive
                  of any
                  remedies provided by law. Pursuant to the Trust Agreement, this
                  Guaranty
                  has been delivered to the Trustee and (b) the Trustee has
                  been authorized
                  to enforce this Guaranty on behalf itself and of each of the Subordinate
                  Certificate Holders. All payments by the Guarantor pursuant to
                  this Guaranty
                  shall be made to the Subordinate Certificate Holder and applied
                  according to the
                  terms of the Certificados
                  Subordinados.

                 

                SECTION
                  5.5  Section
                  Captions.
                  Section
                  captions used in this Guaranty are for convenience of reference
                  only, and shall
                  not affect the construction of this Guaranty.

                 

                SECTION
                  5.6  Fees
                  and Expenses.
                  The
                  Guarantor further agrees to pay all reasonable expenses (including
                  reasonable
                  attorneys’ fees and legal expenses from time to time invoiced) paid or incurred
                  by the Trustee or any Subordinate Certificate Holder in endeavoring
                  to collect
                  the Guaranteed Obligations pursuant to this Guaranty, or any part
                  thereof, and
                  in enforcing this Guaranty against the Guarantor or its successors
                  or
                  assigns.

                 

                SECTION
                  5.7  Severability.
                  Wherever possible each provision of this Guaranty shall be interpreted
                  in such
                  manner as to be effective and valid under applicable law, but if
                  any provision
                  of this Guaranty shall be prohibited by or invalid under such law,
                  such
                  provision shall be ineffective to the extent of such prohibition
                  or invalidity,
                  without invalidating the remainder of such provision or the remaining
                  provisions
                  of this Guaranty.

                 

                SECTION
                  5.8  Governing
                  Law, Entire Agreement, Counterparts, etc.
                  THIS
                  GUARANTY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
                  THE LAWS OF THE
                  STATE OF NEW YORK WITHOUT REGARD TO ITS CONFLICTS OF LAW PRINCIPLES
                  (OTHER THAN
                  SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW),
                  unless
                  proceedings are brought in Mexico, in which case the law of Mexico
                  shall
                  govern.
                  This
                  Guaranty and the other Transaction Documents constitute the entire
                  understanding
                  among the parties hereto with respect to the subject matter hereof
                  and thereof
                  and supersede any prior agreements, written or oral, with respect
                  thereto. This
                  Guaranty may be executed in any number of counterparts and by the
                  different
                  parties hereto on separate counterparts, and each such counterpart
                  shall be
                  deemed to be an original, but all such counterparts shall together
                  constitute
                  one and the same Guaranty. At any time after the date of this Guaranty,
                  one or
                  more additional persons or entities may become parties hereto by
                  executing and
                  delivering to the Subordinate Certificate Holders a counterpart
                  of this
                  Guaranty. Immediately upon such execution and delivery (and without
                  any further
                  action), each such additional person or entity will become a party
                  to, and will
                  be bound by all the terms of, this Guaranty.

                 

              

               

              
                
                  
                  

                

                
                  12

                  
                    

                  

                

                
                  
                  

                

              

            

          

           

           

          

            SECTION
              5.9  Forum
              Selection And Consent To Jurisdiction.
              ANY
              LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION
              WITH, THIS
              GUARANTY MAY BE BROUGHT AND MAINTAINED ONLY IN THE
              SUPREME COURT OF THE STATE OF NEW YORK SITTING IN NEW YORK
              COUNTY,
              OF THE UNITED STATES DISTRICT COURT OF THE SOUTHERN DISTRICT OF NEW
              YORK
              OR IN ANY COMPETENT FEDERAL OR LOCAL COURT LOCATED IN THE FEDERAL DISTRICT,
              UNITED MEXICAN STATES, OR IN ANY COMPETENT COURTS OF THE CORPORATE
              DOMICILE OF
              THE GUARANTOR, AND
              ANY APPELLATE COURT FROM ANY THEREOF..
              THE GUARANTOR AND, BY ACCEPTING THE BENEFITS OF THIS GUARANTY, EACH
              OF THE
              SUBORDINATE CERTIFICATE HOLDERS HEREBY EXPRESSLY AND IRREVOCABLY SUBMITS
              TO THE
              JURISDICTION OF SUCH COURTS FOR THE PURPOSE OF ANY SUCH LITIGATION
              AS SET FORTH
              ABOVE. THE GUARANTOR AND, BY ACCEPTING THE BENEFITS OF THIS GUARANTY,
              EACH OF
              THE SUBORDINATE CERTIFICATE HOLDERS HEREBY EXPRESSLY AND IRREVOCABLY
              WAIVES, TO
              THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH IT MAY NOW
              OR HEREAFTER
              HAVE TO THE LAYING OF VENUE OF ANY SUCH LITIGATION BROUGHT IN ANY SUCH
              COURT
              REFERRED TO ABOVE AND ANY CLAIM THAT ANY SUCH LITIGATION HAS BEEN BROUGHT
              IN AN
              INCONVENIENT FORUM.
              The
              Guarantor hereby irrevocably appoints CT Corporation System (the “Process
              Agent”),
              with
              offices at the date hereof at 111 Eighth Avenue, New York, New
              York 10011,
              United States, as its agent to receive on behalf of the Guarantor and
              its
              property service of copies of the summons and complaint and any other
              process
              which may be served in any such action or proceeding. Such service
              may be made
              by mailing or delivering a copy of such process to the Guarantor in
              care of the
              Process Agent at the Process Agent’s address, and the Guarantor hereby
              irrevocably authorizes and directs the Process Agent to accept such
              service on
              its behalf. As an alternative method of service, the Guarantor irrevocably
              consents to the service of any and all process in any such action or
              proceeding
              by the mailing of copies of such process to the Guarantor in the manner
              set
              forth in Section 6.3 hereof. For purposes of the foregoing,
              the Guarantor
              shall grant a general power of attorney for lawsuits and collections
              to the
              Process Agent in accordance with the first paragraph of section 2,554
              of the
              Civil Code for the Federal District of Mexico (Código
              Civil para el Distrito Federal)
              and its
              correlative sections of the Federal Civil Code of Mexico (Código
              Civil Federal)
              and the
              Civil Codes of the States of Mexico before a Mexican Notary Public
              to the
              satisfaction of the Subordinate Certificate Holders.

             

            SECTION
              5.10  Waiver
              of Jury Trial.
              THE
              GUARANTOR AND, BY ACCEPTING THE BENEFITS HEREOF, EACH SUBORDINATE CERTIFICATE
              HOLDER HEREBY KNOWINGLY, VOLUNTARILY, AND INTENTIONALLY WAIVES ANY
              RIGHTS IT MAY
              HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON,
              OR ARISING
              OUT OF, UNDER, OR IN CONNECTION WITH, THIS GUARANTY AND ANY AMENDMENT,
              INSTRUMENT, DOCUMENT OR AGREEMENT DELIVERED OR WHICH MAY IN THE FUTURE
              BE
              DELIVERED IN CONNECTION 

             

             

            
              
                
                

              

              
                13

                
                  

                

              

              
                
                

              

            

             

            HEREWITH,
              AND AGREES THAT ANY SUCH ACTION OR PROCEEDING SHALL BE TRIED BEFORE
              A COURT AND
              NOT A JURY.

             

            

              SECTION
                5.11  Payments
                Free and Clear of Taxes.
                All
                payments to be made by the Guarantor hereunder shall be made free
                and clear of,
                and without deduction for or on account of, any present or future
                taxes,
                value-added taxes, levies, imposts, duties, fees, assessments or
                other charges
                of whatever nature now or hereafter imposed (in all cases excluding
                income
                taxes) and all interest, penalties or similar liabilities with respect
                thereto
                (collectively, “Additional
                Costs”);
                provided,
                however,
                that
                anything herein contained to the contrary notwithstanding, the Guarantor
                shall
                not be required to pay withholding taxes in excess of the amount
                of withholding
                taxes that would be payable by a financial institution that is both
                (i) a
                resident of a country with which Mexico has entered into a treaty
                for the
                avoidance of double taxation which is in effect in such country and
                (ii) registered with the Ministry of Finance and Public Credit
                of Mexico
                (the “SHCP”)
                for
                purposes of Article 195(I) of the Mexican Income Tax Law (or
                any successor
                provision). If any Additional Costs are required by Law to be deducted
                or
                withheld from, or in respect of, any sum payable hereunder, the Guarantor
                agrees
                to pay, subject to the proviso in the immediately foregoing sentence,
                the full
                amount of such Additional Costs and such other additional amounts
                as may be
                necessary so that every payment of all amounts due hereunder, after
                withholding
                or deduction for or on account of any Additional Costs, will not
                be less than
                the amount provided for herein. Subject to the proviso in the first
                sentence of
                this Section 6.11,
                the
                Guarantor will furnish to the Subordinate Certificate Holders, within
                sixty
                (60) days after the date the payment of any Additional Costs
                is due
                pursuant to applicable law, copies of tax forms evidencing such payment
                by the
                Guarantor, duly stamped by or on behalf of the SHCP or any other
                applicable
                Government Agency. Subject to the proviso in the first sentence of
                this
Section 6.11,
                the
                Guarantor will indemnify and hold harmless any Subordinate Certificate
                Holder
                and reimburse such Subordinate Certificate Holder promptly upon its
                written
                request, for the amount of any Additional Costs or other taxes described
                above
                which are levied or imposed on and paid by any Subordinate Certificate
                Holder.

               

              SECTION
                1.2  Judgment.
                The
                obligations of the Guarantor, in respect of any sum due to any Subordinate
                Certificate Holder hereunder shall, notwithstanding any judgment
                in a currency
                (the “Judgment
                Currency”)
                other
                than the currency in which such sum was originally denominated (the
                “Original
                Currency”),
                be
                discharged only to the extent that following receipt by such Subordinate
                Certificate Holder of any sum adjudged to be so due in the Judgment
                Currency,
                such Subordinate Certificate Holder, in accordance with normal banking
                procedures, could purchase the Original Currency with the Judgment
                Currency. If
                the amount of Original Currency so purchased is less than the sum
                originally due
                to such Subordinate Certificate Holder, the Guarantor agrees, as
                a separate
                obligation and notwithstanding any such judgment, to indemnify such
                Subordinate
                Certificate Holder against such loss, and if the amount of Original
                Currency so
                purchased exceeds the sum originally due to the Subordinate Certificate
                Holders,
                such Subordinate Certificate Holder agrees to remit such excess to
                the
                Guarantor.

               

              [SIGNATURE
                PAGE FOLLOWS]

               

               

              
                
                  
                  

                

                
                  14

                  
                    

                  

                

                
                  
                  

                

              

            

          

        

      

    

     

    

      IN
        WITNESS WHEREOF, the Guarantor has caused this Guaranty to be duly executed
        and
        delivered by its officer thereunto duly authorized as of the date first above
        written.

       

      

      
        	
                VITRO,
                  S.A. DE C.V.,

                 

              
	
                By

              	
                By

              
	 	 	 	 
	 	
                Name: Claudio
                  del Valle

              	 	
                Name: Álvaro
                  Rodríguez

              
	 	
                Title: Attorney-in-Fact

              	 	
                Title: Attorney-in-Fact

              
	
                
                   

                

                Address
                  and Fax Number for Notices:

                Ricardo
                  Margain No. 400

                Colonia
                  Valle del Campestre

                San
                  Pedro Garza García, NL 66265, México

                Fax:
                  +52 81 8863 1290

              

      

    

     

     

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    Agreed
      and Accepted:

     

    COOPERATIEVE
      CENTRALE

    RAIFFEISEN-BOERENLEENBANK
      B.A.,

    "RABOBANK
      INTERNATIONAL",

    NEW
      YORK BRANCH

     

    
      
        
          	
                  By:

                	
                  ______________________________

                
	 	
                  Name:

                
	 	
                  Title:

                

        

      

    

     

    

      
        	
                By:

              	
                ______________________________

              
	 	
                Name:

              
	 	
                Title:

              

      

    

     

     

    
      
        
        

      

      
        16Unassociated Document

    
      EXHIBIT
        4.27

       

      PURCHASE
        AGREEMENT dated as of March 31, 2005, (the “Agreement”),
        among
        ABN
        AMRO
        BANK (MEXICO), S.A., Institución de Banca Múltiple,
        Division Fiduciara, not in its individual capacity but solely as trustee
        (the
“Trustee”)
        of,
        and in satisfaction of the purposes of, the irrevocable administration, issuance
        and payment trust (the “Trust”
        or the
“Issuer”)
        created pursuant to the Trust Agreement referred to below, COMPAÑÍA VIDRIERA,
        S.A.
        DE C.V., a corporation organized under the laws of the United Mexican States
        (“Covisa”),
        INDUSTRIA DEL ÁLCALI, S.A. DE C.V., a corporation organized under the laws of
        the United Mexican States (“Álcali”),
        COMERCIALIZADORA ÁLCALI, S. DE R.L. DE C.V., a limited liability company
        organized under the laws of the United Mexican States (“Comercializadora”), and
        Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A. “Rabobank International”,
        New York Branch, a financial institution organized under the laws of the
        Kingdom
        of the Netherlands, acting through its branch office licensed by the State
        of
        New York (the “Purchaser”).

       

      WHEREAS,
        Covisa, Álcali and Comercializadora, as settlors (individually, a “Settlor”
        and
        collectively, the “Settlors”),
        the
        Trustee and
        Banco
        Invex, S.A., Institución de Banca Múltiple, Invex Grupo Financiero, as
common
        representative (the “Common
        Representative”),
        have
        entered into an Irrevocable Administration, Issuance and Payment Trust Agreement
        (Contrato
        de Fideicomiso Irrevocable de Emisión, Administración y
        Pago)
        dated
        as of March 23,
        2005
        (the
“Trust
        Agreement”),
        providing for the establishment of the Trust;

       

      WHEREAS,
        the
        assets of the
        Trust
        will include, among other things, a pool of receivables
        (the “Receivables”)
        generated from time to time
        by
        the
        Settlors and sold to the Trust pursuant
        to the Assignment Agreement (Contrato
        de Cesion de Derechos al Cobro)
        dated
        as of March
        23,
        2005 (the “Assignment
        Agreement”),
        among
        the Settlors and the Trustee;

       

      WHEREAS,
        pursuant to the Trust Agreement, the Trust will issue $19,000,000.00 Dollars
        (nineteen million Dollars 00/100, currency of the United States of America)
        principal
        amount of its ten point seventy five per cent (10.75%)
        Subordinated Certificates (Certificados
        Subordinados)
        (the
“Certificates”),
        each
        of which Certificates will constitute a Trust payment obligation, backed
        by the
        Trust's
        ownership interest in the Receivables and the other assets of the Trust (the
        Receivables and such other assets, the “Trust
        Assets”);
        and

       

      WHEREAS,
        the Issuer wishes to sell to the Purchaser, and the Purchaser wishes to buy
        from
        the Issuer, the Certificates on the terms and subject to the conditions
        hereinafter set forth:

       

      NOW,
        THEREFORE, in consideration of the premises and the mutual covenants herein
        contained, the parties hereby agree as follows:

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      

      ARTICLE
        1

       

      Definitions

       

      SECTION
        1.1   Certain
        Terms. The
        following terms when used in this Agreement, including its preamble and
        recitals, shall have the following meanings (such definitions to be equally
        applicable to the singular and plural forms thereof):

       

      “Basic
        Documents”
        shall
        mean the Trust Agreement, the Assignment Agreement, this Agreement, the
Acta
        de Emisión
        (as such
        term is defined in the Trust Agreement) and the Guaranty Agreement,
        collectively.

       

      SECTION
        1.2   The
        Trustee.
        All
        references herein to the Trustee shall mean the Trustee acting to satisfy
        the
        purposes of the Trust.

       

      ARTICLE
        2

       

      The
        Certificates

       

      SECTION
        2.1   Sale
        and Delivery of the Certificates. (a)
        On
        the
        basis of the representations and warranties and subject to the terms and
        conditions set forth herein and in the Trust Agreement, the Issuer agrees
        that
        it will sell to the Purchaser, and the Purchaser agrees that it will purchase
        from the Issuer, on the Closing Date (as defined in Section 2.2), the
        Certificates, which on the Closing Date shall represent an aggregate principal
        amount of $19,000,000.00 Dollars (nineteen million Dollars 00/100, currency
        of
        the United States of America). On the Closing Date, the Issuer shall deliver
        to
        the Purchaser the Certificates, duly executed by one or more officers of
        the
        Trustee authorized to act on behalf of the Trust (delegados
        fiduciarios),
        and
        registered in the name of the Purchaser or its nominee.

       

      (b)
          As
        payment in full for the Certificates, on the Closing Date, the Purchaser
        shall
        deliver to or upon the order of the Trustee, by wire transfer of immediately
        available funds, $19,000,000.00 Dollars (nineteen million Dollars 00/100,
        currency of the United States of America) (the “Purchase
        Price”).
        It is
        understood and agreed that the Trustee shall deliver the Certificates to
        the
        Purchaser simultaneously with the delivery to the Trustee of the Purchase
        Price.

       

      SECTION
        2.2   Closing
        Date.
        The
        purchase and sale of the Securities will take place at a closing to be held
        at
        the offices of Cravath, Swaine & Moore, LLP, 825 Eighth Avenue, New York,
        New York 10019; at 11:00am on March 31, 2005 (the “Closing
        Date”).

       

       

      ARTICLE
        3  

       

      Representations
        and Warranties of the
        Issuer

       

      The
        Trustee, acting to satisfy the purposes of the Trust, hereby affirms each
        of its
        representations, warranties and covenants set forth in the other
        Basic

       

       

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      Documents
        for the benefit of the Purchaser, as though each such representation, warranty
        and covenant were set forth herein; provided
        that,
        the
        remedy for breach of any such representation, warranty or covenant shall
        be the
        remedy set forth in the relevant Basic Document, but shall be enforceable
        directly by the Purchaser against the Trustee, acting to satisfy the purposes
        of
        the Trust. The Trustee, acting to satisfy the purposes of the Trust, further
        represents and warrants to, and agrees with, the Purchaser as
        follows:

       

      (a)
          The
        Issuer is an irrevocable administration, issuance and payment trust (fideicomiso)
        that
        has
        been duly established under the laws of the United Mexican States. The Trustee
        is a banking institution that has been duly established and is validly existing
        under the laws of the United Mexican States, has all requisite power and
        authority to enter into the Trust Agreement, to act as trustee thereunder
        and to
        perform and observe the provisions of the Trust Agreement to be performed
        and
        observed by it as trustee thereunder. The Trust Agreement has been duly
        authorized, executed and delivered by the Trustee, and, assuming due
        authorization, execution and delivery by the Settlors and the Common
        Representative, constitutes a valid and legally binding obligation of the
        Trustee, enforceable against the Trustee in accordance with its terms, subject
        to applicable bankruptcy, insolvency, reorganization, moratorium and other
        similar laws relating to or affecting creditors’ rights generally, and the
        Trustee, acting to satisfy the purposes of the Trust, has all requisite power
        and authority and all necessary consents, approvals, authorizations, orders,
        registrations, qualifications, licenses and permits of and from all public,
        regulatory or governmental agencies and bodies to establish the Trust and
        to
        own, lease and operate the Trust’s properties and conduct the Trust’s business
        as now being conducted, is duly qualified to hold the Trust Assets and to
        enter
        into and deliver each of the Basic Documents and this Agreement, and to perform
        its obligations hereunder and thereunder.

       

      (b)
          On
        the
        Closing Date, the Issuer will have duly authorized by all necessary action
        the
        execution, delivery and performance of each Basic Document to which it is
        a
        party, each other document required to be delivered pursuant hereto and thereto
        and the consummation of the transactions provided for herein and therein.
        The
        Issuer has duly executed and delivered each Basic Document to which it is
        a
        party. Each such Basic Document constitutes a legal, valid, and binding
        obligation of the Issuer, enforceable against the Issuer in accordance with
        its
        terms, except as such enforceability may be limited by applicable bankruptcy,
        insolvency, reorganization, moratorium and other similar laws now or hereafter
        in effect affecting the enforcement of creditors’ rights generally.

       

    

    
      (c)
          The
        Trustee (i) is not in violation of the Trust Agreement, (ii) in its
        capacity as Trustee is not a party to nor bound by, nor are the Trust Assets
        subject to, any agreement, indenture, mortgage, deed of trust, loan agreement
        or
        instrument other than the Trust Agreement, the Assignment Agreement and any
        other agreement contemplated under the Trust Agreement to be entered into
        by the
        Trustee in furtherance of the purpose of the Trust and the Basic Documents
        and
        is not in default, and no event has occurred which, with notice or lapse
        of time
        or both, would constitute such a default, in the due performance or observance
        of any term, covenant or condition contained in the Trust Agreement or in
        any
        Basic Document and (iii) is not in violation of any law,
        ordinance,

       

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      governmental
        rule, regulation or court decree to which the Trust or the Trust Assets is
        subject.

       

      (d)
          All
        material approvals, authorizations, consents, orders and other actions of
        any
        Person, any governmental body or official and any third party required in
        connection with the execution and delivery by the Issuer of the Basic Documents
        and the Trust Agreement, the performance by the Issuer of the transactions
        contemplated hereby and thereby and the fulfillment by the Issuer of the
        terms
        hereof and thereof have been obtained, including, without limitation, the
        approval of Banco de México., except for (i) the registration of the
        Certificates with the Special Section of the National Registry of Securities
        maintained by the Mexican National Banking and Securities Commission (the
        “CNBV”)
        (which
        approval has been obtained, subject to filing any necessary documents) and
        (ii) the delivery by the Issuer to the Secretaría de Hacienda y Crédito
        Público (the Ministry of Finance and Public Credit; the “Ministry”)
        of
        certain information so that withholding taxes in respect of the Certificates
        may
        be reduced to 4.9% for the period prescribed by applicable Mexican law.

       

      (e)
          The
        Certificates have been duly authorized by the Issuer and, when duly executed,
        authenticated, issued and delivered in accordance with the Trust Agreement
        and
        paid for in accordance with the terms hereof, will constitute legal, valid
        and
        binding obligations of the Issuer, enforceable against the Issuer in accordance
        with their terms.

       

      (f)
          The
        execution, delivery and performance of the Basic Documents, the issue, sale
        and
        delivery of the Certificates and the consummation of the other transactions
        contemplated by the Basic Documents (and compliance with the terms thereof)
        do
        not and will not conflict with or result in a breach of any of the terms
        or
        provisions of any law applicable to the Issuer or any of the terms or provisions
        of any law applicable to the Issuer or any of the terms or provisions of,
        or
        constitute (with or without notice or lapse of time or both) a default under,
        any governing documents of the Issuer.

       

      (g)
          Except
        for withholding taxes payable in connection with interest payments in respect
        of
        the Certificates, there is no tax, duty, levy, impost, deduction, charge
        or
        withholding imposed by Mexico or any political subdivision or taxing authority
        thereof or therein by virtue of the issuance, execution, delivery, performance
        or enforcement of any of the Basic Documents or of any other document to
        be
        furnished thereunder, other than fees for registration of the Trust Agreement
        and the Assignment Agreement in the Public Registry of Commerce.

       

      (h)
          Each
        of
        the Basic Documents to which the Issuer is a party is in proper legal form
        for
        the enforcement thereof against the Trustee, as trustee under the Trust,
        in the
        United Mexican States; provided
        that,
        any legal proceedings in Mexican courts would be based upon a Spanish
        translation of any Basic Documents executed in English, which translation
        would
        be prepared by a court-approved translator and approved by the court after
        the
        defendant had been given an opportunity to be heard with respect to the accuracy
        of the translation.

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

       

      (i)
          It
        is not
        necessary under the laws of Mexico that any of the holders of the Certificates
        be licensed, qualified or entitled to carry on business in Mexico by reason
        of
        execution, delivery, performance or enforcement of any of the Basic
        Documents.

       

      (j)
          The
        Issuer is not required to be registered under the U.S. Investment Company
        Act of
        1940, as amended.

       

      (k)
          The
        Trust
        Assets as of the Closing Date will be held by the Trustee (on behalf of the
        Trust) free and clear of all liens, security interests, charges, encumbrances,
        defects and claims, except as expressly permitted by the Basic
        Documents.

       

      (l)
          Neither
        the Issuer nor the Trustee nor any of its properties or assets has any immunity
        from the jurisdiction of any court or from any legal process (whether through
        service or notice, attachment prior to judgment, attachment in aid of execution,
        execution or otherwise).

       

      (m)
          
        The
        Issuer shall obtain, make and keep in full force and effect all authorizations
        from and registrations with governmental authorities that may be required
        for
        the issuance, validity or enforceability against the Issuer of the Basic
        Documents.

       

      (n)
          The
        Trust
        is not subject to tax (including without limitation, income and asset tax
        and
        except for value-added taxes imposed on the relevant obligor under the
        Receivables) imposed by Mexico or any political subdivision or taxing
        jurisdiction thereof.

       

      (o)
          The
        Issuer shall, as soon as practicable, complete registration of the Securities
        with the Special Section of the National Registry of Securities maintained
        by
        CNBV. 

       

      ARTICLE
        4

       

      Representations
        and Warranties of the Settlors

       

      Each
        of
        the Settlors hereby affirms each of its representations, warranties and
        covenants set forth in the other Basic Documents for the benefit of the
        Purchaser, as though each such representation, warranty and covenant were
        set
        forth herein; provided
        that,
        the
        remedy for breach of any such representation, warranty or covenant shall
        be the
        remedy set forth in the relevant Basic Document, but shall be enforceable
        directly by the Purchaser against the Settlors. Each of the Settlors further
        represents and warrants to, and agrees with, the Purchaser as
        follows:

       

      (a)
          On
        the
        Closing Date, each of the Settlors will have duly authorized by all necessary
        action the execution, delivery, and performance of each Basic Document to
        which
        it is a party, each other document required to be delivered by it pursuant
        thereto and the consummation of the transactions provided for herein and
        therein.

       

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

       

      (b)
          Each
        of
        the Settlors has the power and authority to enter into each of the Basic
        Documents to which it is a party.

       

      (c)
          Each
        of
        the Settlors has duly executed and delivered each Basic Document to which
        it is
        a party. Each such Basic Document constitutes a legal, valid, and binding
        obligation of such party, enforceability against such party in accordance
        with
        its terms, except as such enforceability may be limited by applicable
        bankruptcy, insolvency, reorganization, moratorium and other similar laws
        now or
        hereafter in effect affecting the enforcement of creditors’ rights
        generally.

       

      (d)
          There
        are
        no proceedings or investigations pending or, to the best knowledge of the
        Settlors, threatened against the Issuer or the Settlors, before any court,
        regulatory body, administrative agency, or other tribunal or governmental
        instrumentality (A) asserting the invalidity of any of the Basic Documents,
        (B) seeking to prevent the issuance of the Certificates or the consummation
        of any of the transactions contemplated hereby, (C) seeking any
        determination or ruling that, in the reasonable judgment of the Settlors,
        would
        materially and adversely affect the performance by the Issuer or any of the
        Settlors of its obligations under the Basic Documents, (D) seeking
        any
        determination or ruling that would materially and adversely affect the validity
        or enforceability of any of the Basic Documents or the Certificates or
        (E) seeking to affect adversely the income tax or franchise tax attributes
        of the Trust under Mexican federal or state income or franchise tax
        systems.

       

      (e)
          The
        Trust
        Assets are not subject to, any agreement, indenture, mortgage, deed of trust,
        loan agreement or instrument other than the Trust Agreement and any other
        agreement contemplated under the Trust Agreement to be entered into by the
        Trustee in furtherance of the purposes of the Trust and the Basic Documents
        and
        is not in default, and no event has occurred which, with notice or lapse
        of time
        or both, would constitute such a default, in the due performance or observance
        of any term, covenant or condition contained in the Trust Agreement or in
        any
        Basic Document.

       

      (f)
          All
        material approvals, authorizations, consents, orders or other actions of
        any
        person or of any governmental body or official required in connection with
        the
        execution and delivery by the Settlors of this Agreement and the other Basic
        Documents, the performance by the Settlors of this Agreement and the other
        Basic
        Documents, the performance by the Issuer and the Settlors of the transactions
        contemplated hereby and thereby, the fulfillment by the Settlors of the terms
        hereof and thereof have been obtained, including, without limitation, the
        approval of Banco de México., except for (i) the Registration of the
        Certificates with the Special Section of the National Registry of Securities
        maintained by the CNBV (which approval has been obtained, subject to filing
        any
        necessary documents) and (ii) the delivery by the Issuer to the Ministry
        of
        certain information so that withholding taxes in respect of the Securities
        may
        be reduced to 4.9% for the period prescribed by applicable Mexican
        law.

       

      (g)
          Each
        of
        the Settlors has been duly organized and is validly existing under the laws
        of
        Mexico, with all requisite power and authority to own its properties, to
        conduct
        its business and to perform its obligations under the Basic
        Documents.

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

       

       

      (h)
          The
        Certificates have been duly authorized by the Issuer and, when duly executed,
        authenticated, issued and delivered in accordance with the Trust Agreement
        and
        paid for in accordance with the terms hereof, will constitute legal, valid
        and
        binding obligations of the Issuer; enforceable against the Issuer in accordance
        with their terms.

       

      (i)
          None
        of
        the Settlors is in violation of its governing documents or in default in
        any
        material respect in the performance or observance of any obligation, agreement,
        covenant or condition contained in any contract, indenture, mortgage, loan
        agreement, note or any other agreement or instrument to which it is a party
        or
        by which it may be bound or to which any of its material properties or assets
        may be subject.

       

      (j)
          The
        execution, delivery and performance of the Basic Documents, the issue, sale
        and
        delivery of the Certificates and the consummation of other transactions
        contemplated by the Basic Documents (and compliance with the terms thereof)
        do
        not and will not conflict with or result in a breach of any of the terms
        or
        provisions of any law applicable the Settlors or any of the terms or provisions
        of, or constitute (with or without notice or lapse of time or both) a default
        under, the governing documents the Settlors, or any indenture, trust deed,
        mortgage or other agreement or instrument to which any of the Settlors is
        a
        party or by which any of them may be bound or to which any of them or any
        of
        their respective material properties or assets may be subject or contravene
        any
        applicable law, rule, regulation, judgment, order or decree of any government,
        governmental body or agency or court, domestic or foreign, having jurisdiction
        over any of the Settlors or any of their respective material properties or
        assets, except for such conflicts or breaches which, individually or in the
        aggregate, would not have a material adverse affect on the business, operations,
        properties, financial condition, results of operations or prospects of the
        Settlors, taken as a whole.

       

      (k)
          Neither
        the Settlors nor any of their respective properties or assets has any immunity
        from the jurisdiction of any court or from any legal process (whether through
        service or notice, attachment prior to judgment, attachment in aid of execution,
        execution or otherwise).

       

      (l)
          Except
        for withholding taxes payable in connection with interest payments in respect
        of
        the Certificates and for payment of fees hereunder, there is no tax, duty,
        levy,
        impost, deduction, charge or withholding imposed by Mexico or any political
        subdivision or taxing authority thereof or therein by virtue of the issuance,
        execution, delivery, performance or enforcement or any of the Basic Documents
        or
        of any other document to be furnished thereunder, other than fees for
        registration of the Trust Agreement and the Assignment Agreement in the Public
        Registry of Commerce.

       

      (m)
          Each
        of
        the Basic Documents to which any of the Settlors is a party is in proper
        legal
        form for the enforcement thereof against the Settlors in the United Mexican
        States; provided
        that,
        any legal proceedings in Mexican courts would be based upon a Spanish
        translation of any Basic Documents executed in English, which translation
        would
        be prepared by a court-approved translator and approved by the
        court

       

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

       

       

      after
        the
        defendant had been given an opportunity to be heard with respect to the accuracy
        of the translation.

       

      (n)
          It
        is not
        necessary under the laws of Mexico for any of the holders of the Certificates
        to
        be licensed, qualified or entitled to carry on business in Mexico by reason
        of
        the execution, delivery, performance or enforcement of any of the Basic
        Documents.

       

      (o)
          Neither
        the holders of the Certificates nor any paying agent in respect of the
        Certificates will be deemed resident, domiciled, carrying on business or
        subject
        to taxation in Mexico solely by reason of the execution, delivery, performance
        or enforcement of any of the Basic Documents.

       

      (p)
          The
        Trust
        Assets as of the Closing Date will be held by the Trustee (on behalf of the
        Trust) free and clear of all liens, security interests, charges, encumbrances,
        defects and claims, except as expressly permitted by the Basic
        Documents.

       

      (q)
          None
        of
        the Trust Assets is subject to tax (including, without limitation, income
        and
        asset tax and except for value-added taxes imposed on the relevant obligor
        under
        the Receivables) imposed by Mexico or any political subdivision or taxing
        jurisdiction thereof.

       

      (r)
          No
        event
        has occurred which may affect the validity or enforceability of any of the
        Basic
        Documents;

       

      (s)
          Each
        of
        the Settlors acknowledges and agrees that the terms of this Agreement and
        the
        Trust Agreement are the basis for the execution by the Purchaser of this
        Agreement and for the purchase of the Certificates.

       

      (t)
          None
        of
        the Settlors is in violation of any statute, regulation, directive, resolution,
        decree or judgment, which violation could have a material adverse effect
        on such
        Settlor or its financial condition.

       

      (u)
          None
        of
        the Settlors has knowledge of any materially adverse circumstance that may
        affect its financial condition, or the validity, effectiveness or enforceability
        of this Agreement or any other Basic Document.

       

      ARTICLE
        5  

       

      Representations
        and
        Warranties of the Purchaser

       

      In
        order
        to induce the Issuer to sell the Certificates to the Purchaser, the Purchaser
        hereby agrees, acknowledges, represents, warrants and covenants with and
        to the
        Issuer and the Settlors that:

       

      (a)
          The
        Securities have not been and will not be registered under the U.S. Securities
        Act of 1933 (the “Securities
        Act”)
        or any
        other applicable securities law and 

       

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

       

       

      may
        not
        be offered, sold, reoffered or resold except in accordance with Rule 144A
        under
        the Securities Act or pursuant to any other exemption from, or in a transaction
        not subject to, the registration requirements of the Securities Act and,
        accordingly, that the Certificates may not be offered, sold, transferred,
        pledged, hypothecated or otherwise disposed of except as permitted herein
        and in
        the Trust Agreement.

       

      (b)
          It
        has
        such acknowledge and experience in financial and business matters that it
        is
        capable of evaluating the merits and risks of an investment in the Certificates.
        It is aware that it may be required to, and it is able to, bear the economic
        risk of an investment in the Certificates for an indefinite period.

       

      (c)
          It
        is
        purchasing the Certificates for its own account and not with a view to, or
        for
        offer or sale in connection with, any resale, distribution or other disposition
        thereof, subject to the disposition of its property being at all times within
        its control, and subject to paragraph (d) below.

       

      (d)
          It
        will
        not offer, sell, transfer, pledge, hypothecate or otherwise dispose of the
        Certificates except in accordance with the provisions of the Trust
        Agreement.

       

      (e)
          The
        Purchaser represents and warrants (i) it is duly authorized and empowered
        to execute, deliver and perform this Agreement and to purchase the Certificates,
        and as duly taken all requisite action in connection therewith; (ii) the
        person signing this Agreement on behalf of the Purchaser has been duly
        authorized by the Purchaser to do so; (iii) this Agreement is a valid
        and
        binding legal obligation of the Purchaser, enforceable against the Purchaser
        in
        accordance with its terms except as such enforceability maybe limited by
        applicable bankruptcy, insolvency, reorganization, moratorium and other similar
        laws relating to or affecting creditors’ rights generally, and subject as to
        enforceability to general equitable principles (regardless of whether such
        enforceability is considered in a proceeding in equity or at law); and
        (iv) the execution, delivery and performance of this Agreement and
        the
        purchase of the Certificates do not and will not conflict with, violate or
        constitute a default under any applicable law or regulation, the Purchaser’s
        constitutive documents or any agreement or arrangement to which the Purchaser
        is
        a party or by which it may be bound.

       

      (f)
          The
        Purchaser is not acting in a fiduciary capacity in purchasing the
        Certificates.

       

      (g)
          The
        Purchaser acknowledges that the Issuer will rely upon the truth and accuracy
        of
        the foregoing acknowledgements, agreements, representations and warranties
        and
        agrees that, if any of the acknowledgements, agreements, representations
        or
        warranties made or deemed to have been made by it or by its purchase of the
        Certificates are no longer accurate, it shall promptly notify the Issuer
        and the
        Settlors.

       

      (h)
          The
        Purchaser is not an employee benefit plan. No part of the funds to be used
        by
        the Purchaser to pay the purchase price of the Certificates purchased hereunder,
        directly or indirectly, constitutes “plan assets” of any employee benefit plan
        or

       

       

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

       

       

      its
        related trust. The term “employee benefit plan” shall have the meaning assigned
        to such term in Section 3 of ERISA; and the term “plan assets” shall have
        the meaning specified in Department of Labor Regulation Section
        2510.3-101.

       

      ARTICLE
        6

       

      Conditions

       

      Section
        6.1  Conditions to Purchase.
        The
        obligations of the Purchaser to purchase and pay for the Certificates being
        purchased by it hereunder are, at its option, subject to the satisfaction,
        on or
        before the Closing Date, of the following conditions:

       

      (a)  the
        representations and warranties of the Trustee and the Settlors contained
        in the
        Basic Documents shall be true and correct in all material respects on and
        as of
        the Closing Date as if made on and as of such date, except to the extent
        such
        representations and warranties expressly relate to a particular date, in
        which
        case such representations and warranties shall be true and correct on and
        as of
        such date, and the Purchaser shall received a certificate dated the closing
        date
        from an officer of each of the Issuer and the Settlors to such
        effect;

       

      (b)  on
        or
        prior to the Closing Date, there shall have been delivered to the Purchaser
        in
        form and substance satisfactory to the Purchaser copies of (i) the approval
        given by Banco de México to the Trustee for the creation of the Trust and the
        issuance of the Certificates thereby and (ii) the approval given by the CNBV
        for
        the registration of the Securities with the Special Section of the National
        Registry of Securities and Intermediaries maintained by the CNBV; 

       

      (c)  each
        Basic Document and any other agreements necessary for the consummation of
        the
        transactions contemplated hereby and thereby shall have been executed and
        delivered on or prior to the Closing Date in a form satisfactory to the
        Purchaser;

       

      (d)  at
        the
        Closing Date, (i) there shall have been no material adverse change,
        or any
        development involving a prospective material adverse change, in the condition
        (financial or otherwise), business prospects, results of operations or business
        affairs of the Settlors taken as a whole since December 31, 2004,
        and
        (ii) there shall have been delivered to the Purchaser a certificate
        of each
        of the Settlors, dated the closing Date, signed by a duly authorized officer
        thereof to such effect;

       

      (e)  the
        Certificates shall have been executed, authenticated and delivered on or
        prior
        to the Closing Date;

       

      (f)  on
        or
        prior to the Closing Date, there shall have been delivered to the Purchaser,
        in
        form and substance satisfactory to the Purchaser, opinions of counsel with
        respect to such matters as the Purchaser may reasonably request from: (i)
        Forastieri Abogados, S.C., Mexican counsel to the Purchaser; and (ii)
        

       

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

       

       

      Kuri
        Breña, Sánchez Ugarte, Corcuera y Aznar, S.C., Mexican counsel to the Issuer and
        the Settlors; 

       

      (g)  on
        or
        prior to the Closing Date, there shall have been delivered to the Purchaser,
        in
        form and substance satisfactory to the Purchaser, a copy of a notarized
        power-of-attorney relating to the authority of each Settlor;

       

      (h)  on
        or
        prior to the Closing Date, the Trust Assets shall be free and clear of all
        liens, security interests, charges, encumbrances, defects and claims, except
        as
        expressly permitted by the Basic Documents;

       

      (i)  on
        or
        prior to the Closing Date, there shall have been delivered to the Purchaser,
        in
        form and substance satisfactory to the Purchaser, a certificate of a duly
        authorized officer of each of the Issuer and the Settlors as to the authority,
        incumbency and specimen signatures of the persons who have executed or will
        execute each of the Basic Documents and the other instruments and documents
        to
        be executed and delivered hereunder and thereunder by the Issuer and the
        Settlors, and such other documents, opinions and certificates as the Purchaser
        or its counsel may reasonably require;

       

      (j)  there
        shall have been delivered to the Purchaser a certificate, dated the Closing
        Date, signed by a duly authorized officer of each of the Issuer and the Settlors
        to the effect that (x) the representations and warranties of such party herein
        are true, accurate and correct in all material respects at, and as if made
        on,
        the Closing date and (y) such party has performed in all material
        respects
        all of its obligations hereunder to be performed on or before the Closing
        Date;

       

      (k)  there
        shall have been delivered to the Purchaser a copy of any notarized
        power-of-attorney of the Trustee whereby officers of the Trustee are appointed
        attorneys-in-fact of the Trustee will power to execute the Certificates,
        the
        Basic Documents and any other documents necessary or advisable in connection
        with the issuance of the Certificates;

       

      (l)  on
        the
        Closing Date, the Purchaser shall have received from CT Corporation System
        (i) a
        letter, dated on or prior to the Closing Date to the effect that is accepts
        the
        appointment to receive on behalf of the Issuer and the Settlors, respectively,
        service of process which may be served in any legal action or proceeding
        arising
        out of or in connection with the Basic Documents, and (ii) a copy of the
        public
        deed or public deeds granted by the Trustee, in its capacity as Trustee,
        and by
        the Settlors whereby the granting of general powers of attorney for lawsuits
        and
        collections in accordance with the first paragraph of section 2,554 of the
        Civil
        Code for the Federal District of Mexico (Código
        Civil para el Distrito Federal)
        and its
        correlative sections of the Federal Civil Code of Mexico (Código
        Civil Federal)
        and the
        Civil Codes of the States of Mexico in favor of such agent for service of
        process are notarized; and

       

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

       

       

      (m)  Vitro,
        S.A. de C.V., shall have duly executed and delivered the Guaranty dated as
        of
        the Closing Date in favor of the holders of the Certificates.

       

      The
        Purchaser may, at its discretion and upon such terms as it deems fit, waive
        compliance with the whole or any part of this Section.

       

      ARTICLE 7  

       

      Miscellaneous

       

      SECTION
        7.1   Survival
        of Agreements.
        All
        covenants, agreements, representations, warranties and indemnities made herein
        shall survive the execution and delivery of this Agreement and the sale of
        the
        Certificates pursuant hereto and notwithstanding any investigation made by
        or on
        behalf of the Purchaser or its agents, representatives or
        affiliates.

       

      SECTION
        7.2   Expenses.
        The
        Settlors shall pay (i) the reasonable and documented costs incident
        to the
        authorization, issuance, sale and delivery of the Certificates and any stamp,
        value added or transfer taxes payable in Mexico in connection therewith;
        (ii) the reasonable and documented costs incident to negotiating,
        preparing
        and executing the Basic Documents and all other documents required in connection
        therewith; (iii) any fees payable to the CNBV in connection with the
        registration of the Securities with the Special Section of the National Registry
        of Securities maintained by the CNBV; (iv) the fees and expenses of
        Mexican
        counsel to the Trust and the Settlors, and of Cravath, Swaine & Moore, U.S.
        counsel to the Trust and the Settlors; (v) the reasonable and documented
        out-of-pocket expenses of the Purchaser, including the reasonable fees and
        expenses of U.S. counsel to the Purchaser, and Forastieri Abogados, S.C.,
        Mexican counsel to the Purchaser, incurred in connection with the Basic
        Documents and the transactions contemplated thereby; and (vi) all
        other
        reasonable and documented costs and expenses incident to the performance
        of the
        obligations of the Issuer and the Settlors under the Basic
        Documents.

       

      SECTION
        7.3   Indemnification.
        (a)
        Each
        of
        the Settlors, jointly and severally, agrees that it will indemnify and hold
        harmless the Purchaser and its directors, officers, employees and controlling
        persons from and against any and all losses, liabilities, costs, claims,
        damages
        and expenses (including reasonable attorney’s fees) which any of them may incur
        (as incurred) or which may be made against any of them, insofar as such losses,
        liabilities, costs, claims, damages or expenses arise out of or are in relation
        to or are in connection with any breach or alleged failure to perform the
        representations, warranties, covenants and agreements given or made by the
        Issuer or the Trustee, acting to satisfy the purposes of the Trust, or the
        Settlors in any of the Basic Documents or any other agreement executed pursuant
        thereto and will reimburse each such indemnified party for all reasonable
        and
        documented costs, charges and expenses (as incurred) incurred by it in
        connection with investigating, disputing or defending any such action or
        claim.
        This indemnity will be in addition to any liability that the Settlors and
        the
        Issuer may otherwise have hereunder and under the other Basic
        Documents.

       

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

       

       

      (b)
          If
        any
        action, claim or demand shall be brought or alleged against an indemnified
        party
        in respect of which indemnity is to be sought against the indemnifying party
        under this Section 7.3, the indemnified party shall promptly notify
        the
        indemnifying party in writing, but the failure so to notify an indemnifying
        party shall not relieve such indemnifying party from any obligation or liability
        it may otherwise have. The indemnified party shall have the right to retain
        counsel of its own choice to represent it in connection with such action,
        claim
        or demand, and the indemnifying party will reimburse the indemnified party
        for
        the reasonable fees and expenses of such counsel as incurred.

       

      (c)
          An
        indemnifying party will not, without the prior written consent of the
        indemnified parties, settle or compromise or consent to the entry of any
        judgment with respect to any pending or threatened action, claim or demand
        in
        respect of which indemnification may be sought hereunder (whether or nor
        the
        indemnified parties are actual or potential parties to such claim or action)
        unless such settlement, compromise or judgment includes an unconditional
        release
        of each indemnified party from all liability arising out of such action,
        claim
        or demand.

       

      (d)
          To
        the
        fullest extent permitted by law, each of the Settlors agrees to indemnify
        the
        Purchaser and its directors, officers, employees and controlling persons
        for any
        loss arising out of any judgment in respect of which indemnification is provided
        pursuant to this Section 7.3 being paid in a currency (the “Judgment
        Currency”)
        other
        than United States dollars and resulting from any variation between (i) the
        rate of exchange at which United States dollars are converted into the Judgment
        Currency for the purpose of such judgment or order and (ii) the rate
        of
        exchange at which the indemnified party is able to purchase United States
        dollars with the amount of the Judgment Currency actually received by the
        indemnified party. The foregoing indemnity shall constitute a separate and
        independent obligation of the Settlors and shall continue in full force and
        effect notwithstanding any such judgment or order as aforesaid. The term
“rate
        of exchange” shall include any premiums and costs of exchange payable in
        connection with the purchase of, or conversion into, the relevant currency.
        The
        Purchaser agrees that, to the extent that the amount of United States dollars
        that it may purchase exceeds the amount originally due to the Purchaser,
        it will
        return such excess amount to the Settlors.

       

      SECTION
        7.4   Additional
        Amounts.
        If any
        amounts to be received by the Purchaser under this Agreement solely as a
        result
        of entering into, or performing under, this Agreement are subject to any
        present
        or future taxes, assessments, deductions, withholdings or charges of any
        nature
        enacted by Mexico or any political subdivision thereof or taxing authority
        therein (“Mexican
        Taxes”),
        then
        the Issuer agrees to pay to the Purchaser an additional amount so that the
        Purchaser shall retain or receive, after taking into consideration all such
        Mexican Taxes, an amount equal to the amounts owed to it under this Agreement
        as
        if such amounts had not been subject to Mexican Taxes. If any Mexican Taxes
        are
        collected by deduction or withholding, the party making the payment required
        by
        the preceding sentence shall provide to the Purchaser copies of documents
        evidencing the transmittal to the proper authorities of the amount of Mexican
        Taxes deducted or withheld.

       

       

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

       

    

    
      SECTION
        7.5   Parties
        in Interest.
        All
        covenants and agreements contained in this Agreement by or on behalf of any
        of
        the parties hereto shall bind and inure to the benefit of the respective
        successors and assigns of the parties hereto whether so expressed or
        not.

       

      SECTION
        7.6   Notices.
        All
        notices, requests, consents and other communications hereunder to any party
        shall be in writing and shall be delivered in person, or sent by fax or
        recognized international courier service to such party at the address or
        fax
        number set forth below its signature to this Agreement, or, in any case,
        at such
        other address or fax number as shall have been furnished in writing to the
        other
        parties hereto.

       

      SECTION
        7.7   Submission
        to Jurisdiction; Waivers. (a)
        Any
        suit,
        action or proceeding relating in any way to this Agreement may be brought
        and
        enforced in any United States Federal or New York State court sitting in
        the
        City and County of New York, and each party to this Agreement irrevocably
        submits to the jurisdiction of each such court in respect of any such suit,
        action or proceeding; provided
        that, if
        for whatever reason any United States Federal court sitting in the City and
        County of New York will not or cannot hear such suit, action or proceeding,
        it
        may be brought and enforced in the courts of the State of New York in the
        City
        and County of New York, and each party to this Agreement hereby irrevocably
        submits to the jurisdiction of each such court in respect of any such suit,
        action or proceeding and, to the extent permitted by law, waives any defense
        or
        objection to such jurisdiction. Each party hereto irrevocably waives, to
        the
        fullest extent permissible under applicable law, any objection that it may
        now
        or hereafter have to the venue of any such suit, action or proceeding in
        any
        such court, or the defense of an inconvenient forum to the maintenance of
        such
        suit, action or proceeding. Until the payment in full of the Certificates,
        each
        of the Issuer and the Settlors agrees to maintain an office or appoint an
        agent
        in New York City where or upon whom process may be served in any such suit,
        action or proceeding. Each of the Issuer and the Settlors hereby irrevocably
        appoints CT Corporation System, with offices at the date hereof at
        111 Eighth Avenue, New York, New York 10011, United States, , as its
        agent
        to receive service or process or other legal summons for purposes of any
        such
        suit, action or proceeding. For purposes of the foregoing, the Issuer and
        the
        Settlor shall grant general powers of attorney for lawsuits and collections
        to
        such agent for service of process in accordance with the first paragraph
        of
        section 2,554 of the Civil Code for the Federal District of Mexico (Código
        Civil para el Distrito Federal)
        and its
        correlative sections of the Federal Civil Code of Mexico (Código
        Civil Federal)
        and the
        Civil Codes of the States of Mexico before a Mexican Notary Public to the
        satisfaction of the Purchaser.

       

      (b)
          Each
        of
        the Issuer and the Settlors has irrevocably agreed, to the extent permitted
        by
        applicable law, that, in any legal action or proceeding arising out of or
        in
        connection with the Basic Documents (the “Proceedings”)
        anywhere (whether for an injunction, specific performance, damages or
        otherwise), no immunity (to the extent that it may at any time exist, whether
        on
        the grounds of sovereignty or otherwise) from those Proceedings, from attachment
        (whether in aid of execution, before judgment or otherwise) or from judgment
        shall be claimed by it or on its behalf or with respect to its

       

       

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

       

       

      assets,
        any such immunity being irrevocably waived. Each of the Issuer and the Settlors
        has irrevocably waived any right to which it may be entitled under the laws
        of,
        or on account of, its place of residence or domicile. Each of the Issuer
        and the
        Settlors has irrevocably agreed, to the extent permitted by applicable law,
        that
        it is and its assets are, and shall be, subject to such Proceedings, attachment
        or execution in respect of its obligations under the Basic
        Documents.

       

      (c)
          EACH
        OF THE PURCHASER, THE ISSUER AND THE SETTLORS IRREVOCABLY WAIVES ANY RIGHT
        IT
        MAY NOW OR HEREAFTER HAVE TO A TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING
        ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT.

       

      (d)  The
        parties hereto hereby irrevocably consent to the service of any and all process
        in any suit, action or proceeding in any manner permitted by law except by
        mail,
        and agree that nothing contained herein shall limit the parties right to
        sue in
        any jurisdiction. The parties agree that a final judgment in such suit, action
        or proceeding shall be conclusive and may be enforced in other jurisdictions
        by
        suit on the judgment or in any manner provided by law.

       

      SECTION
        7.8   GOVERNING
        LAW.
        THIS
        AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAW OF
        THE
        STATE OF NEW YORK (WITHOUT GIVING EFFECT TO THE CONFLICTS OF LAW PRINCIPLES
        THEREOF).

       

      SECTION
        7.9   Entire
        Agreement; Modifications.
        This
        Agreement and the agreements referred to herein constitute the entire agreement
        of the parties with respect to the subject matter hereof, and this Agreement
        may
        not be modified or amended except in writing.

       

      SECTION
        7.10   Counterparts.
        This
        Agreement may be executed in one or more counterparts, which shall together
        constitute one and the same instrument.

       

      SECTION
        7.11   Limitation
        of Liabilities.
        It is
        expressly understood and agreed by the parties hereto that (a) this
        Agreement is executed and delivered by ABN AMRO Bank (México) S.A. not
        individually or personally but solely as Trustee acting to satisfy the purposes
        of the Trust, in the exercise of the power and authority conferred and vested
        in
        it, (b) each of the representations, undertakings and agreements herein
        made on the part of the Trustee is made and intended not as a personal
        representation, undertaking or agreement by ABN AMRO Bank (México) S.A. but
        is made in satisfaction of the purposes of the Trust and intended for the
        purpose of binding only the Trust and (c) under no circumstances shall
        ABN
        AMRO Bank (México) S.A. be personally liable for the payment of any
        indebtedness or expenses of the Trust.

       

      

        [SIGNATURE
          PAGE FOLLOWS]

         

         

        
          
            
            

          

          
            15

            
              

            

          

          
            
            

          

        

         

      

    

    

    IN
      WITNESS WHEREOF, the Issuer, the Settlors and the Purchaser have executed this
      Agreement as of the day and year first above written.

     

    

    
      	
              ABN
                AMRO BANK (MEXICO) S.A., AS TRUSTEE, ACTING TO SATISFY THE PURPOSES
                OF THE
                TRUST,

               

            
	
              By

            
	 	 
	 	
              Name: 

            
	 	
              Title: 

            
	
               

              Address
                and Fax Number for Notices:

              ABN
                AMRO Bank (México), S.A.

              Institución
                de Banca Múltiple,

              División
                Fiduciaria

              Avenida
                Paseo de la Reforma No. 600-320

              México,
                D.F. 01210

              Phone:
                5257-7810

              Facsimile:
                5257-7829

              Attention:
                División Fiduciaria

            

    

     

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    
 

    
      
        
          
            	
                    COMPAÑÍA
                      VIDRIERA, S.A. DE C.V.,

                  
	
                    By

                  	
                    By

                  
	 	 	 	 
	 	
                    Name: Claudio
                      del Valle

                    Title: Attorney-in-Fact

                  	 	
                    Name: Álvaro
                      Rodríguez

                    
                      Title: Attorney-in-Fact

                    

                  
	 	 	 	 
	
                    
                      Address
                        and Fax Number for Notices:

                    

                    Ricardo
                      Margain No. 440

                    Colonia
                      Valle del Campestre

                    San
                      Pedro Garza García, NL 66265, México

                    Fax:
                      +52 81 8863 1290

                  

          

          

          

          

          
            	
                    INDUSTRIA
                      DEL ÁLCALI, S.A. DE C.V.,

                  
	
                    By

                  	
                    By

                  
	 	 	 	 
	 	
                    Name: Claudio
                      del Valle

                    
                      Title: Attorney-in-Fact

                    

                  	 	
                    Name: Álvaro
                      Rodríguez

                    
                      Title: Attorney-in-Fact

                    

                  
	 	
                     

                  	 	
                     

                  
	
                    Address
                      and Fax Number for Notices:

                    Ricardo
                      Margain No. 440

                    Colonia
                      Valle del Campestre

                    San
                      Pedro Garza García, NL 66265, México

                    Fax:
                      +52 81 8863 1290

                  

          

          

          

          
            	
                    COMERCIALIZADORA
                      ÁLCALI, S. DE R.L. DE C.V.,

                  
	
                    By

                  	
                    By

                  
	 	 	 	 
	 	
                    Name: Claudio
                      del Valle

                    
                      Title: Attorney-in-Fact

                    

                  	 	
                    Name: Álvaro
                      Rodríguez

                    
                      Title: Attorney-in-Fact

                    

                  
	 	 	 	 
	
                    Address
                      and Fax Number for Notices:

                    Ricardo
                      Margain No. 440

                    Colonia
                      Valle del Campestre

                    San
                      Pedro Garza García, NL 66265, México

                    Fax:
                      +52 81 8863 1290

                  

          

        

         

         

         

        
          
            
            

          

          
            17

            
              

            

          

          
            
            

          

        

         

         

        

          
            	
                    RABOBANK
                      INTERNATIONAL,

                  
	
                    By

                  
	 	 
	 	
                    Name: 

                  
	 	
                    Title: 

                  
	
                    Address
                      and Fax Number for
                      Notices:

                  

          

        

      

    

     

     

    
      
        
        

      

      
        18

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