Document:

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                                                                     Exhibit 4.5

                     GRUPO INDUSTRIAL DURANGO, S.A. DE C.V.

               AMENDED AND RESTATED UNSUBORDINATED PROMISSORY NOTE

U.S.$____________                                           Dated:______________

          THIS AMENDED AND  RESTATED  UNSUBORDINATED  PROMISSORY  NOTE
          (this "Unsubordinated  Promissory Note") amends and restates
          the  Unsubordinated  Promissory Note dated as of February 5,
          2001 issued by the Borrower (as defined  below) to the order
          of the Creditor (as defined below).

          FOR VALUE RECEIVED, the undersigned, GRUPO INDUSTRIAL DURANGO, S.A. de
C.V.,  a  variable  capital  company  (sociedad  anonima  de  capital  variable)
organized  under the laws of the United  Mexican States (the  "Borrower",  which
term  includes any  successor  person),  HEREBY  PROMISES TO PAY to the order of
CORPORACION DURANGO,  S.A. de C.V., a variable capital company (sociedad anonima
de capital variable)  organized under the laws of the United Mexican States (the
"Creditor",  which term includes any successor person or assignee) the principal
amount of  $____________,  or, if less, the unpaid principal of the indebtedness
evidenced hereby,  on _______,  ______ and to pay interest thereon from the date
hereof or the most recent interest payment date to which interest has been paid,
semiannually  on ________ and __________ in each year,  commencing on __________
at the rate of ___% per  annum,  until the  principal  amount  hereof is paid in
full.  Interest  will be paid on the  interest  payment date or, if the interest
payment  date is not a  Business  Day,  on the  next  preceeding  Business  Day.
Interest is computed on the basis of a 360-day year of twelve 30-day months. The
term  "Business  Day"  means any day except a  Saturday,  Sunday or other day on
which commercial banks in The City of New York are authorized by law to close.

          Both  principal and interest are payable in lawful money of the United
States of America to the Creditor at its principal office or such other location
or account as the Creditor may designate, in same day funds.

          Additional Amounts

          (a) Any and all payments by the Borrower  hereunder shall be made free
and clear of and  without  deduction  for any and all  present or future  taxes,
levies, imposts, deductions or charges or withholdings, and all liabilities with
respect thereto imposed by Mexico or any political  subdivision  thereof,  or by
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any  other  jurisdiction  from  which  any  amounts  hereunder  are  paid by the
Borrower,  excluding,  taxes imposed on the Creditor's  overall net income,  and
franchise taxes imposed on it in lieu of net income taxes,  by the  jurisdiction
under the laws of which such Creditor is organized or any political  subdivision
thereof (all such non-excluded  taxes,  levies,  imposts,  deductions,  charges,
withholdings and liabilities in respect of payments  hereunder being hereinafter
referred to as "Taxes").  If the Borrower shall be required by law to deduct any
Taxes from or in respect of any sum payable hereunder, (i) the sum payable shall
be increased  as may be  necessary so that after making all required  deductions
(including   deductions   applicable  to  additional  sums  payable  under  this
paragraph)  such  Creditor  receives  an amount  equal to the sum it would  have
received had no such  deductions  been made,  (ii) the Borrower  shall make such
deductions  and (iii) the  Borrower  shall pay the full  amount  deducted to the
relevant  taxation  authority or other  authority in accordance  with applicable
law.

          (b) In addition,  the  Borrower  shall pay any  applicable  present or
future stamp or  documentary  taxes or any other  applicable  excise or property
taxes,  charges or similar  levies that arise from any payment made hereunder or
from the execution,  delivery or registration of, performing under, or otherwise
with respect to, this Unsubordinated Promissory Note.

          Representations and Warranties

          The Borrower represents and warrants as of the date hereof as follows:

          (a) The Borrower is a variable  capital company  (sociedad  anonima de
     capital variable) duly organized and existing under the laws of Mexico.

          (b) The  execution,  delivery and  performance by the Borrower of this
     Unsubordinated  Promissory Note are within the Borrower's corporate powers,
     have been duly  authorized by all necessary  corporate  action,  and do not
     contravene (i) the Borrower's charter or by-laws or (ii) applicable  law or
     any material contractual restriction binding on or affecting the Borrower.

          (c) No  authorization or approval or other action by, and no notice to
     or filing with, any  governmental  authority or regulatory body is required
     for the due  execution,  delivery and  performance  by the Borrower of this
     Note.

          (d)  This  Unsubordinated  Promissory  Note is the  legal,  valid  and
     binding  obligation  of the  Borrower  enforceable  against the Borrower in
     accordance  with its terms  except  as the  enforceability  thereof  may be
     limited by  bankruptcy,  insolvency,  reorganiztion,  or other similar laws
     affecting the  enforcement  of creditors'  rights  generally and to general
     equitable principles  (regardless of whether the issue of enforceability is
     considered in a proceeding in equity or at law).

          Events of Default

          If any of the following  events  ("Events of Default") shall occur and
     be continuing:

          (a) the Borrower  shall fail to pay any  principal of, or interest on,
     this Unsubordinated  Promissory Note when the same becomes due and payable;
     or

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          (b) any event of default shall exist under any agreement or instrument
     relating  to  any  indebtedness  of  the  Borrower  having  an  outstanding
     principal  amount of US$25 million or more and such  indebtedness  shall be
     declared to be  immediately  due and payable,  or required to be prepaid in
     full (other than by a regularly scheduled required  prepayment),  redeemed,
     purchased or defeased, or an offer to prepay,  redeem,  purchase or defease
     such  indebtedness in full shall be required to be made, in each case prior
     to the stated maturity  thereof and such  acceleration  shall not have been
     waived or extended within 30 consecutive days of the acceleration; or

          (c) the  Borrower  fails  to make a  principal  payment  at the  final
     maturity  of any loan  having  an  outstanding  principal  amount  of US$25
     million or more and such defaulted payment is not waived or extended within
     30 consecutive days of the payment default; or

          (d) an event of default  specified in clauses (a),  (b), (g) or (h) of
     Section  501  of  the  Indenture  dated  as  of  the  date  hereof  between
     Corporacion Durango, S.A. de C.V., as issuer, and The Chase Manhattan Bank,
     as trustee (the "Trustee"),  under which Corporacion Durango,  S.A. de C.V.
     issued its 13?% Senior Notes due 2006 (the "Senior  Notes") occurs and such
     notes are either automatically accelerated or accelerated by the holders of
     such notes;

then,  and in any such  event,  the  Creditor  may,  by notice to the  Borrower,
declare this Note, all interest thereon and all other amounts payable under this
Note to be forthwith due and payable, whereupon this Note, all such interest and
all  such  amounts  shall  become  and be  forthwith  due and  payable,  without
presentment,  demand,  protest or further  notice of any kind,  all of which are
hereby expressly waived by the Borrower; provided, however, that in the event of
an entry of an order for relief  with  respect  to the  Borrower  under  Mexican
bankruptcy  law,  this  Note,  all  such  interest  and all such  amounts  shall
automatically  become  and be due  and  payable,  without  presentment,  demand,
protest or any notice of any kind, all of which are hereby  expressly  waived by
the Borrower.

          Miscellaneous

          Consideration.  This Unsubordinated Promissory Note has been issued to
the Creditor in  consideration  for (i) the  cancellation  or discharge,  by the
Creditor, of $_______________ of the Borrower's 12 5/8% Notes due 2003 (the "GID
Notes")  tendered in an exchange offer launched by the Creditor on _____________
(the  "Exchange  Offer")  and the payment by the  Creditor of premium,  fees and
expenses  related to the Exchange  Offer,  (ii) the  cancelation or discharge of
$150  million  of the  Borrower's  12%  Notes in  February  2001,  and (iii) the
repayment  by the  Creditor,  on  behalf  of the  Borrower,  of $30  million  of
short-term  indebtedness owed by the Borrower to Banamex and The Chase Manhattan
Bank in February 2001.

          Amendments,  Etc. (a) Prior to the date (the "Pledge Release Date") on
which  the  Trustee   terminates   the   security   interest   created  in  this
Unsubordinated  Promissory  Note by the  Pledge  Agreement  dated as of the date
hereof between the Trustee and Corporacion  Durango,  S.A. de C.V., no amendment

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or waiver of any  provision  of this Note,  nor consent to any  departure by the
Borrower  herefrom,  shall in any event be effective unless the same shall be in
writing  and signed by the  Trustee  and then such  waiver or  consent  shall be
effective only in the specific  instance and for the specific  purpose for which
given.

          (b)  Subsequent  to the  Pledge Release Date and until the maturity of
the exchange notes,  this Unsubordinated Promissory Note may be modified so long
as  the interest rate of this Unsubordinated Promissory Note is no less than the
interest rate of the Senior Notes.

          Prepayments.  Prepayments  of principal  hereunder may be made so long
as, after giving effect to such  prepayment,  the outstanding  principal  amount
under the  Unsubordinated  Promissory Note would be no less than the outstanding
principal amount of the Senior Notes.

          Notices,  Etc.  All  notices  and other  communications  provided  for
hereunder shall be in writing (including telecopier, telegraphic, telex or cable
communication)   and  sent  via  reputable   commercial   courier,   telecopied,
telegraphed, telexed, cabled or delivered, if to the Borrower, at its address at
Grupo Industrial Durango, S.A. de C.V., Torre Corporacion Durango,  Potasio 150,
Ciudad Industrial,  Durango,  Durango, United Mexican States,  Attention:  Legal
Counsel,  or at such other  address as shall be  designated  by the  Borrower in
writing to the Creditor;  and if to the Creditor, as shall be designated by such
Creditor in a written  notice to Borrower.  All such notices and  communications
shall, when couriered, telecopied,  telegraphed, telexed or cabled, be effective
when picked up by  courier,  telecopied,  delivered  to the  telegraph  company,
confirmed by telex answerback or delivered to the cable company, respectively.

          No  Waiver;  Remedies.  No  failure  on the  part of the  Creditor  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.

          Costs and Expenses.  The Borrower  agrees to pay on demand all losses,
costs and expenses, if any (including reasonable counsel fees and expenses),  in
connection with the enforcement (whether through negotiations, legal proceedings
or otherwise) of this Unsubordinated Promissory Note.

          Binding  Effect.  This  Note  shall be  binding  upon and inure to the
benefit of the Borrower and the Creditor  and their  respective  successors  and
assigns,  except that the Borrower shall not have the right to assign its rights
hereunder.

          Jurisdiction.  Each party  hereto  irrevocably  agrees  that any legal
suit,  action or  proceeding  arising out of or relating to this  Unsubordinated
Promissory  Note may be  instituted in any federal or state court in the Borough
of Manhattan,  The City of New York,  waives any  objection  which it may now or
hereafter  have to the  laying of the venue of any such  legal  suit,  action or
proceeding,  waives any immunity from  jurisdiction  or to service of process in
respect of any such suit, action or proceeding, waives any right to which it may
be entitled on account of place of residence or domicile and irrevocably submits
to the  jurisdiction  of any such court in any such suit,  action or proceeding.
The Borrower agrees that a final judgment in any such suit, action or proceeding
shall be conclusive  and may be enforced in other  jurisdictions  by suit on the
judgment or in any other manner  provided by law in accordance  with  applicable

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law. The Borrower  hereby appoints  Durango Paper Company,  1000 Osborne Street,
St. Marys, Georgia 31558, Attention: Prudencio Calderon, as its authorized agent
upon which process may be served in any legal suit, action or proceeding arising
out  of or  relating  to  this  Unsubordinated  Promissory  Note  which  may  be
instituted in any federal or state court in the Borough of  Manhattan,  The City
of New York,  and agrees that  service of process  upon such agent,  and written
notice of said service to the Borrower by the person serving the same,  shall be
deemed in every  respect  effective  service of process upon the Borrower in any
such suit,  action or  proceeding  and  further  designates  its  domicile,  the
domicile of Durango Paper Company specified above and any domicile Durango Paper
Company may have in the future as its  domicile to receive any notice  hereunder
(including service of process).  If for any reason Durango Paper Company (or any
successor  agent for this  purpose)  shall  cease to act as agent for service of
process as provided above,  the Borrower will promptly appoint a successor agent
for this purpose reasonably  acceptable to the Creditor.  The Borrower agrees to
take any and all actions as may be necessary to maintain  such  designation  and
appointment of such agent in full force and effect.

          Judgment  Currency.  If for the purpose of  obtaining  judgment in any
court it is  necessary  to  convert  an  amount  due under  this  Unsubordinated
Promissory Note into any currency other than United States dollars,  the parties
hereto agree,  to the fullest extent  permitted  under  applicable law, that the
rate of  exchange  used shall be the rate at which,  in  accordance  with normal
banking procedures,  the Creditor could purchase United States dollars with such
other  currency in The City of New York on the  Business Day  preceding  that on
which final judgment is given. To the fullest extent  permitted under applicable
law,  the  obligation  of the  Borrower  with  respect to any sum due under this
Unsubordinated Promissory Note, notwithstanding any judgment in a currency other
than United States dollars,  shall not be discharged,  following  receipt by the
Creditor of such amount adjudged to be so due in such other currency,  until the
first  Business  Day on which (and only to the extent  that) the Creditor may in
accordance  with normal banking  procedures  purchase United States dollars with
such other currency,  and if the amount of United States dollars so purchased is
less than the amount  originally  due to the  Creditor  hereunder,  the Borrower
agrees,  as a separate  obligation and  notwithstanding  any such  judgment,  to
indemnify  the  Creditor  against  such loss.  If the United  States  dollars so
purchased are greater than the amount originally due to the Creditor  hereunder,
the  Creditor  agrees to pay the  Borrower an amount  equal to the excess of the
United States  dollars so purchased  over the sum originally due to the Creditor
hereunder.

          Governing  Law.  This Note  shall be  governed  by, and  construed  in
accordance with, the laws of the State of New York, United States.

          WAIVER OF JURY TRIAL.  THE BORROWER AND THE CREDITOR EACH  IRREVOCABLY
WAIVES  ALL RIGHT TO TRIAL BY JURY IN ANY  ACTION,  PROCEEDING  OR  COUNTERCLAIM
(WHETHER  BASED ON CONTRACT,  TORT OR  OTHERWISE)  ARISING OUT OF OR RELATING TO
THIS  UNSUBORDINATED  PROMISSORY  NOTE OR THE  ACTIONS  OF THE  CREDITOR  IN THE
NEGOTIATION, ADMINISTRATION, PERFORMANCE OR ENFORCEMENT THEREOF.

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          IN  WITNESS  WHEREOF,  the  Borrower  has caused  this  Unsubordinated
Promissory Note to be executed by its officer  thereunto duly authorized,  as of
the date first above written.

                                          GRUPO INDUSTRIAL DURANGO, S.A. de C.V.

                                          By___________________________________
                                            Title:

This  Unsubordinated  Promissory  Note has been endorsed to The Chase  Manhattan
Bank, as trustee, by Corporacion Durango,  S.A. de C.V. pursuant to the terms of
the Amended and Restated  Pledge  Agreement  dated as of the date hereof between
The Chase Manhattan Bank and Corporacion Durango,  S.A. de C.V. on this ____ day
of __________ in ___________________, ______________________.

CORPORACION DURANGO, S.A. de C.V.

By_______________________________
  Title:<PAGE>

                                                                     Exhibit 4.6

                                                          DRAFT:  June 26, 2001

                                PLEDGE AGREEMENT

                         Dated as of ____________, 2001

                                     Between

                  CORPORACION DURANGO, S.A. DE C.V., as Pledgor

                                       and

                      THE CHASE MANHATTAN BANK, as Trustee
<PAGE>

                                PLEDGE AGREEMENT

          This PLEDGE  AGREEMENT  (this "Pledge  Agreement") is made and entered
into as of ____________ by CORPORACION DURANGO, S.A. DE C.V., a variable capital
company (sociedad  anonima de capital variable)  organized under the laws of the
United  Mexican  States (the  "Pledgor"),  having its principal  office at Torre
Corporativa Durango,  Potasio 150, Ciudad Industrial,  Durango,  Durango, United
Mexican  States  34220,  in  favor  of  THE  CHASE  MANHATTAN  BANK,  a  banking
corporation  duly organized and existing  under the laws of New York,  having an
office at 450 West 33rd Street, 10th Floor, New York, NY 10001-2697,  as trustee
(the  "Trustee")  for the  holders  (the  "Holders")  of the Notes  (as  defined
herein).  Capitalized  terms used herein and not otherwise  defined herein shall
have the meanings given to such terms in the Indenture.

                               W I T N E S S E T H

          WHEREAS,  the Pledgor and the Trustee  have  entered into that certain
indenture  dated as of the date hereof (as amended,  restated,  supplemented  or
otherwise  modified from time to time, the  "Indenture"),  pursuant to which the
Pledgor  is  issuing  on the date  hereof  its __%  Senior  Notes  due 2008 (the
"Notes") in an aggregate principal amount of US$___ million; and

          WHEREAS,  to secure the obligations of the Pledgor under the Indenture
and the Notes  (collectively,  the  "Obligations"),  the  Pledgor has agreed (i)
to pledge to the Trustee for its benefit and the ratable  benefit of the Holders
of the Notes,  a security  interest in the  Collateral  (as defined  herein) and
(ii) to execute and deliver this Pledge Agreement in order to secure the payment
and performance by the Pledgor of the Obligations; and

          WHEREAS,  it is a condition  precedent to the initial  purchase of the
Notes by the initial  Holders  thereof  that the Pledgor  shall have granted the
security interest and made the pledge contemplated by this Pledge Agreement;

          NOW,  THEREFORE,  in  consideration  of  the  mutual  promises  herein
contained,  and in order to induce  the  Holders  of the Notes to  purchase  the
Notes,  the  Pledgor  hereby  agrees  with the  Trustee,  for the benefit of the
Trustee and for the ratable benefit of the Holders of the Notes, as follows:
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          SECTION 1. Pledge and Grant of Security  Interest.  The Pledgor hereby
assigns and  pledges to the Trustee for its benefit and for the ratable  benefit
of the  Holders of the Notes,  and hereby  grants to the Trustee for its benefit
and for the ratable benefit of the Holders of the Notes, a security  interest in
the following (the "Collateral"):

          (a) the unsubordinated promissory note dated the date hereof issued by
     Grupo Industrial Durango,  S.A. de C.V. ("GID"), a variable capital company
     (sociedad  anonima de  capital  variable)  organized  under the laws of the
     United  Mexican States (as amended or  supplemented  from time to time, the
     "Promissory  Note"), to the Pledgor,  a copy of which is attached hereto as
     Exhibit  A, in an  aggregate  principal  amount of US$___  million  and all
     interest,  cash, instruments and other property from time to time received,
     receivable  or otherwise  distributed  in respect of or in exchange for the
     Promissory Note, and

          (b) all proceeds of any or all of the foregoing.

          SECTION 2.  Security for  Obligation.  This Pledge  Agreement  and the
grant of a security interest in the Collateral  hereunder secures the prompt and
complete  payment  and  performance  when due  (whether at stated  maturity,  by
acceleration  or  otherwise)  of all the  Obligations,  whether  for  principal,
interest,  fees or  otherwise,  now or  hereafter  existing,  under this  Pledge
Agreement,  the Notes or the Indenture (all such Obligations  being the "Secured
Obligations").  Without  limiting the generality of the  foregoing,  this Pledge
Agreement  and the grant of a  security  interest  in the  Collateral  hereunder
secures  the  payment  of all  amounts  that  constitute  part  of  the  Secured
Obligations and would be owed by the Pledgor to the Trustee or the Holders under
the Notes or the Indenture but for the fact that they are  unenforceable  or not
allowable  due to the  existence  of a  bankruptcy,  reorganization  or  similar
proceeding involving the Pledgor.

          SECTION 3.  Delivery  of  Collateral.  The  Promissory  Note is hereby
endorsed and  delivered by the Pledgor to the Trustee and is  accompanied  by an
Acknowledgement  and  Consent  Agreement  (the   "Acknowledgement   and  Consent
Agreement"),  substantially  in the form of Exhibit B hereto,  executed  by GID,
whereby GID, among other things,  acknowledges and consents to the pledge of the
Promissory Note by the Pledgor.

          SECTION  4.   Representations  and  Warranties.   The  Pledgor  hereby
represents and warrants as of the date hereof that:

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          (a) The execution and delivery by the Pledgor of, and the  performance
     by the Pledgor of its obligations  under,  this Pledge Agreement do not and
     will not  contravene  any  provision  of  applicable  law or the  estatutos
     sociales  of the  Pledgor  or any  material  agreement  or  other  material
     instrument  binding  upon the  Pledgor  or any of its  subsidiaries  or any
     judgment, order, decree, license or permit of any governmental body, agency
     or court  having  jurisdiction  over the  Pledgor or any of its  Restricted
     Subsidiaries,  or result in the creation or  imposition  of any Lien on any
     assets of the Pledgor, except for the security interests granted under this
     Pledge Agreement.

          (b) No consent of any other  person  and no  approval,  authorization,
     order of, action by or  qualification  with,  any  governmental  authority,
     regulatory  body,  agency or other  third  party is  required  (i)for  the
     execution,  delivery or performance by the Pledgor of its obligations under
     this Pledge  Agreement,  (ii)for  the grant by the Pledgor of the security
     interest  created  hereby,  for the pledge by the Pledgor of the Collateral
     pursuant to this Pledge  Agreement or (iii) for the exercise by the Trustee
     of the rights  provided  for in this Pledge  Agreement  or the  remedies in
     respect of the Collateral pursuant to this Pledge Agreement.

          (c) The Pledgor is the owner of the Collateral,  free and clear of any
     Lien or claims of any person or entity  (except for the security  interests
     created by this Pledge Agreement).

          (d)  This  Pledge  Agreement  has been  duly  authorized  and  validly
     executed and  delivered by the Pledgor and  constitutes a valid and binding
     agreement of the  Pledgor,  enforceable  against the Pledgor in  accordance
     with its terms  except as the  enforceability  thereof  may be  limited  by
     bankruptcy, insolvency, reorganization, or other similar laws affecting the
     enforcement  of  creditors'  rights  generally  and  to  general  equitable
     principles (regardless of whether the issue of enforceability is considered
     in a proceeding in equity or at law).

          (e) Upon the delivery of the Promissory Note to the Trustee the pledge
     and grant of a security interest in the Collateral  pursuant to this Pledge
     Agreement  for the benefit of the Trustee and the Holders of the Notes will
     constitute a valid and perfected  first priority  security  interest in the
     Collateral, securing the payment of the Secured Obligations.

          (f) There are no legal or governmental  proceedings pending or, to the
     best of the Pledgor's knowledge,  threatened to which the Pledgor or any of
     its  Restricted  Subsidiaries  is a party  that  would  affect the power or
     ability of the  Pledgor  to  perform  its  obligations  under  this  Pledge
     Agreement or to consummate the transactions contemplated hereby.

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          (g)  Neither  the Pledgor nor the  Collateral  has any  immunity  from
     jurisdiction  of any court or from  set-off or any legal  process  (whether
     through service of notice, attachment prior to judgment,  attachment in aid
     of execution, execution or otherwise).

          (h) There is no tax, levy,  impost,  deduction,  charge or withholding
     imposed by the Pledgor's  jurisdiction of incorporation or any organization
     or any  political  subdivision  thereof on or by virtue of the execution or
     delivery of this Agreement.

          (i) To ensure the legality, validity,  enforceability or admissibility
     in  evidence  of  this   Agreement  in  the   Pledgor's   jurisdiction   of
     incorporation,  it is not necessary that this Pledge Agreement or any other
     document be filed or  recorded  with any court or other  authority  in such
     jurisdiction  or that any stamp or similar  tax be paid on or in respect of
     this Pledge Agreement.

          (j) GID has  duly  executed  and  delivered  the  Acknowledgement  and
     Consent Agreement.

          SECTION 5. Further Assurances. The Pledgor agrees that at any time and
from time to time, at the expense of the Pledgor,  it will promptly  execute and
deliver all further  instruments and documents,  and take all reasonable further
action,  that may be necessary,  or that the Trustee may reasonably  request, in
order to perfect and protect any  security  interest  granted or purported to be
granted  hereby or to enable the Trustee to exercise  and enforce its rights and
remedies hereunder with respect to the Collateral.

          SECTION 6.  Covenants.  The  Pledgor  covenants  and  agrees  with the
Trustee and the Holders of the Notes that from and after the date of this Pledge
Agreement  until the date that this Pledge  Agreement is terminated  pursuant to
Section 20 hereof:

          (a) that (i) it will not (and will not purport  to) sell or  otherwise
     dispose of the Collateral or its beneficial  interest therein,  and (ii) it
     will not create or permit to exist any Lien or other adverse interest in or
     with respect to its beneficial  interest in the Collateral  (except for the
     security interests granted under this Pledge Agreement);

          (b) that it will not (i) enter  into any  agreement  or  understanding
     that restricts or inhibits or purports to restrict or inhibit the Trustee's
     rights or remedies  hereunder,  or (ii) fail to pay or  discharge  any tax,
     assessment or levy of any nature with respect to its beneficial interest in
     the  Collateral  not later than five days prior to the date of any proposed
     sale under any judgment, writ or warrant of attachment with respect to such
     beneficial interest; and

          (c) that it will not amend,  waive or otherwise modify any term of the
     Promissory Note except as permitted thereunder.

                                       4
<PAGE>

          SECTION  7.  Power  of  Attorney.  The  Pledgor  hereby  appoints  and
constitutes  the Trustee as the Pledgor's  attorney-in-fact  (with full power of
substitution),  with full authority in the place and stead of the Pledgor and in
the  name of the  Pledgor  or  otherwise,  from  time  to time in the  Trustee's
discretion  following the occurrence and during the  continuation of an Event of
Default to take any action and to execute  any  instrument  that the Trustee may
deem necessary or advisable to accomplish the purposes of this Pledge Agreement;
provided,  however,  that the Trustee shall have no obligation to perform any of
the foregoing actions. The Pledgor agrees that if the power-of-attorney  granted
hereunder  shall  require any  formalities  under Mexican law, the pledgor shall
take any and all action  reasonably  requested  by the Trustee to complete  such
formalities.

          SECTION 8. No Assumption of Duties;  Reasonable  Care.  The rights and
powers conferred on the Trustee hereunder are solely to preserve and protect the
security  interest  of the  Trustee  and the  Holders of the Notes in and to the
Collateral  granted hereby and shall not be interpreted to, and shall not impose
any duties on the Trustee in  connection  therewith  other than those  expressly
provided  herein  or  imposed  under  applicable  law.  Except  as  provided  by
applicable  law or by the  Indenture,  the  Trustee  shall  be  deemed  to  have
exercised  reasonable care in the custody and  preservation of the Collateral in
its possession if the Collateral is accorded  treatment  substantially  equal to
that which the Trustee accords similar  property held by the Trustee for its own
account,  it being understood that the Trustee in its capacity as such shall not
have any  responsibility  for (a)  ascertaining or taking action with respect to
calls,  conversions,  exchanges,  maturities  or other  matters  relative to any
Collateral,  whether or not the  Trustee has or is deemed to have  knowledge  of
such matters,  (b) taking any  necessary  steps to preserve  rights  against any
parties with respect to any  Collateral or (c) investing or  reinvesting  any of
the Collateral or any loss on any investment.

          SECTION 9.  Indemnity;  Trustee's  Limitation of Liability to Pledgor.
(a) The Pledgor shall indemnify, reimburse, hold harmless and defend the Trustee
and its directors,  officers, agents and employees, from and against any and all
claims,  actions,  obligations,  liabilities and expenses,  including reasonable
defense costs,  reasonable  investigative  fees and costs,  and reasonable legal
fees and damages  arising from the Trustee's  performance or lack of performance
as Trustee  under this Pledge  Agreement,  except to the extent that such claim,
action,  obligation,  liability or expense is directly  attributable  to the bad
faith, gross negligence or willful misconduct of such indemnified  person.  This
indemnity  shall be a  continuing  obligation  of the  Pledgor,  its  respective
successors  and  assigns,   notwithstanding   the  termination  of  this  Pledge
Agreement.

          (b) If at any  time  the  Trustee  is  served  with  any  judicial  or
administrative  order,  judgment,  decree,  writ or other  form of  judicial  or
administrative process which in any way affects Collateral  (including,  but not
limited to,  orders of  attachment  or  garnishment  or other forms of levies or
injunctions  or stays  relating to the transfer of  Collateral),  the Trustee is
authorized  to comply  therewith in any manner as it or its legal counsel of its

                                       5
<PAGE>

own  choosing  deems  appropriate  and if the  Trustee  complies  with  any such
judicial  or  administrative  order,  judgment,  decree,  writ or other  form of
judicial  or  administrative  process,  the  Trustee  shall not be liable to the
Pledgor  even  though  such  order,  judgment,  decree,  writ or process  may be
subsequently  modified or vacated or otherwise  determined  to have been without
legal force or effect.

          (c) The Trustee  shall not incur any  liability to the Pledgor for not
performing  any  act  or  fulfilling  any  duty,  obligation  or  responsibility
hereunder  by  reason  of any  occurrence  beyond  the  control  of the  Trustee
(including,  but not limited to, any act or  provision  or any present or future
law or  regulation  or  governmental  authority,  any act of God or war,  or the
unavailability  of the  Federal  Reserve  Bank  wire or telex  or other  wire or
communication facility).

          (d) The Trustee shall not be  responsible in any respect for the form,
execution,  validity,  value or genuineness of documents or securities deposited
hereunder,  or for any description  therein,  or for the identity,  authority or
rights of persons  executing or  delivering  or purporting to execute or deliver
any such document, security or endorsement.

          SECTION 10.  Remedies  Upon Event of Default.  If any Event of Default
under the Indenture  (any such Event of Default being referred to in this Pledge
Agreement as an "Event of Default") shall have occurred and be continuing:

          (a) The Trustee may exercise in respect of the Collateral, in addition
     to other rights and remedies provided for herein or otherwise  available to
     it, all the rights and remedies of a secured  party upon default  under the
     Uniform  Commercial  Code in  effect  in the State of New York at such time
     (the "N.Y.  Uniform  Commercial  Code")  (whether  or not the N.Y.  Uniform
     Commercial  Code applies to the affected  Collateral)  and also may without
     notice except as specified  below,  sell the Collateral or any part thereof
     in one or more parcels at public or private  sale,  at any of the Trustee's
     offices or elsewhere,  for cash, on credit or for future delivery, and upon
     such other terms as the Trustee may deem  commercially  reasonable.  To the
     extent notice of sale shall be required by law, at least 10 Business  Days'
     notice to the  Pledgor of the time and place of any public sale or the time
     after  which any  private  sale is to be made shall  constitute  reasonable
     notification.  The  Trustee  shall  not be  obligated  to make  any sale of
     Collateral  regardless of notice of sale having been given. The Trustee may
     adjourn any public or private sale from time to time by announcement at the
     time and place fixed therefor,  and such sale may,  without further notice,
     be made at the time and place to which it was so adjourned.

          (b) All cash  proceeds  received by the Trustee in respect of any sale
     of,  collection  from,  or  other  realization  upon all or any part of the
     Collateral may, in the discretion of the Trustee, be held by the Trustee as
     collateral for,  and/or then or at any time thereafter  applied in whole or
     in part by the Trustee for the ratable  benefit of the Holders of the Notes
     against,  all or any part of the Secured  Obligations  in such order as the
     Trustee shall elect.  Any surplus of such cash or cash proceeds held by the

                                       6
<PAGE>

     Trustee and remaining after payment in full of all the Secured  Obligations
     shall be paid over to the Pledgor or to whomsoever may be lawfully entitled
     to receive such surplus.

          SECTION 11. Security Interest Absolute. The obligations of the Pledgor
under this Agreement are independent of the Secured Obligations,  and a separate
action or actions may be brought and  prosecuted  against the Pledgor to enforce
this Pledge Agreement, irrespective of whether any action is brought against the
Pledgor or whether  the  Pledgor is joined in any such  action or  actions.  All
rights of the Trustee  and the  Holders of the Notes and the pledge,  assignment
and security interest  hereunder,  and all obligations of the Pledgor hereunder,
shall be absolute and unconditional, irrespective of:

          (a) any lack of validity or  enforceability  of the Indenture or Notes
     or any other agreement or instrument relating thereto;

          (b) any change in the time,  manner or place of payment  of, or in any
     other  term  of,  all  or  any of the  Secured  Obligations,  or any  other
     amendment or waiver of or any consent to any departure from the Indenture;

          (c) any taking, exchange,  surrender, release or non-perfection of any
     Liens on any other collateral for all or any of the Secured Obligations;

          (d) any manner of application of collateral,  or proceeds thereof,  to
     all or any of the  Secured  Obligations,  or any  manner  of sale or  other
     disposition of any collateral for all or any of the Secured  Obligations or
     any other assets of the Pledgor;

          (e)  any  change,   restructuring  or  termination  of  the  corporate
     structure or existence of the Pledgor; or

          (f) any other circumstance which might otherwise  constitute a defense
     available  to, or a  discharge  of, the  Pledgor in respect of the  Secured
     Obligations or of this Pledge Agreement.

          SECTION 12. Notices. Any notice or communication given hereunder shall
be  sufficiently  given if in  writing  and  delivered  in  person  or mailed by
reputable commercial courier service or telecopier  communication,  addressed as
follows:

          if to the Pledgor:

                  Corporacion Durango, S.A. de C.V.
                  Torre Corporacion Durango
                  Potasio 150
                  Ciudad Industrial
                  Durango, Durango
                  United Mexican States
                  Attention: Legal Counsel

                                       7
<PAGE>

           if to the Trustee:

                    The Chase Manhattan Bank
                    450 West 33rd Street
                    15th Floor
                    New York, NY 10001-2697
                    Attention: Catherine Donohue

All  such  notices  and  other  communications  shall,  when  sent by  reputable
commercial  courier,  telecopied  or telexed,  respectively,  be effective  when
couriered,   transmitted  by  telecopier  or  confirmed  by  telex   answerback,
respectively, addressed as aforesaid.

          Section 13. Severability.  The provisions of this Pledge Agreement are
severable,  and if any clause or  provision  shall be held  invalid,  illegal or
unenforceable in whole or in part in any  jurisdiction,  then such invalidity or
unenforceability   shall  affect  in  that  jurisdiction  only  such  clause  or
provision,  or part  thereof,  and shall not in any manner affect such clause or
provision  in any other  jurisdiction  or any other  clause or provision of this
Pledge Agreement in any jurisdiction.

          Section 14. Headings.  The headings in this Pledge Agreement have been
inserted for  convenience  of reference  only,  are not to be  considered a part
hereof and shall in no way  modify or  restrict  any of the terms or  provisions
hereof.

          Section 15. Counterpart Originals. This Pledge Agreement may be signed
in two or more counterparts,  each of which shall be deemed an original, but all
of which shall together constitute one and the same agreement.

          Section  16.  Benefits  of Pledge  Agreement.  Nothing in this  Pledge
Agreement,  express or implied, shall give to any person, other than the parties
hereto and their successors hereunder, and the Holders of the Notes, any benefit
or any legal or equitable right, remedy or claim under this Pledge Agreement.

          Section 17. Amendments,  Waivers and Consents. Any amendment or waiver
of any  provision of this Pledge  Agreement  and any consent to any departure by
the Pledgor from any provision of this Pledge  Agreement shall be effective only
if made or duly given in compliance  with all of the terms and provisions of the
Indenture,  and then  such  waiver or  consent  shall be  effective  only in the
specific  instance  and for the specific  purpose for which  given.  Neither the
Trustee nor any Holder of Notes shall be deemed, by any act, delay,  indulgence,

                                       8
<PAGE>

omission or otherwise,  to have waived any right or remedy  hereunder or to have
acquiesced  in any  Default  or Event of  Default or in any breach of any of the
terms and  conditions  hereof.  Failure of the Trustee or any Holder of Notes to
exercise, or delay in exercising,  any right, power or privilege hereunder shall
not preclude any other or further  exercise thereof or the exercise of any other
right, power or privilege. A waiver by the Trustee or any Holder of Notes of any
right or remedy hereunder on any one occasion shall not be construed as a bar to
any right or remedy that the  Trustee or such  Holder of Notes  would  otherwise
have on any future  occasion.  The  rights  and  remedies  herein  provided  are
cumulative, may be exercised singly or concurrently and are not exclusive of any
rights or remedies provided by law.

          Section 18.  Interpretation of Agreement.  As long as the Trustee acts
in good  faith  to the  extent  a term or  provision  of this  Pledge  Agreement
conflicts  with the Indenture,  the Indenture  shall control with respect to the
subject matter of such term or provision.  Notwithstanding the foregoing and any
other  provision of this Pledge  Agreement or the  Indenture,  the Trustee shall
have no fiduciary responsibility under this Pledge Agreement.

          Section 19. Continuing Security Interest.  This Pledge Agreement shall
create a continuing security interest in and to the Collateral and shall, unless
otherwise  provided  in this Pledge  Agreement,  remain in full force and effect
until  the  payment  in full in cash of the  Secured  Obligations.  This  Pledge
Agreement  shall be binding upon the Pledgor,  its  transferees,  successors and
assigns,  and shall inure,  together with the rights and remedies of the Trustee
hereunder,  to the  benefit of the  Trustee,  the Holders of the Notes and their
respective successors, transferees and assigns.

          Section  20.  Termination.  So long as no Event of Default  shall have
occurred and be  continuing,  this Pledge  Agreement  shall  terminate  upon the
earlier of (i) the payment in full in cash of the Secured  Obligations  and (ii)
the  Pledge  Release  Date  (as  defined  in  the  Indenture).   Upon  any  such
termination,  the Trustee will, at the Pledgor's expense, execute and deliver to
the Pledgor such documents as the Pledgor shall  reasonably  request to evidence
such termination.

          Section  21.   Survival  of   Representations   and   Covenants.   All
representations,  warranties and covenants of the Pledgor contained herein shall
survive the execution and delivery of this Pledge Agreement, and shall terminate
only upon the termination of this Pledge Agreement.

          Section 22.  Authority of the Trustee.  (a) The Trustee shall have and
be entitled to exercise all powers  hereunder that are  specifically  granted to
the Trustee by the terms  hereof,  together  with such powers as are  reasonably
incident  thereto.  The Trustee may  perform any of its duties  hereunder  or in
connection  with the  Collateral by or through  agents or employees and shall be
entitled to retain  counsel  and to act in  reliance  upon the advice of counsel
concerning  all such  matters.  Except as otherwise  expressly  provided in this
Pledge  Agreement  or the  Indenture,  neither  the  Trustee  nor any  director,

                                       9
<PAGE>

officer,  employee,  attorney  or agent of the  Trustee  shall be  liable to the
Pledgor  for any  action  taken or omitted  to be taken by the  Trustee,  in its
capacity as Trustee,  hereunder,  except for its own bad faith, gross negligence
or  willful  misconduct,  and  the  Trustee  shall  not be  responsible  for the
validity,  effectiveness  or  sufficiency  hereof or of any document or security
furnished pursuant hereto. The Trustee and its directors,  officers,  employees,
attorneys and agents shall be entitled to rely on any communication,  instrument
or  document  believed  by it or them to be genuine and correct and to have been
signed or sent by the proper person or persons.

          (b) The Pledgor  acknowledges that the rights and  responsibilities of
the Trustee under this Pledge  Agreement with respect to any action taken by the
Trustee or the  exercise or  non-exercise  by the Trustee of any option,  right,
request,  judgment or other right or remedy  provided for herein or resulting or
arising  out of this  Pledge  Agreement  shall,  as between  the Trustee and the
Holders of the Notes, be governed by the Indenture and by such other  agreements
with respect  thereto as may exist from time to time among them, but, as between
the Trustee and the Pledgor,  the Trustee shall be  conclusively  presumed to be
acting as agent for the Holders of the Notes with full and valid authority so to
act or refrain from acting,  and the Pledgor  shall not be obligated or entitled
to make any inquiry respecting such authority.

          Section 23.  Rights of Holders of the Notes.  No Holder of Notes shall
have any  independent  rights  hereunder  other  than  those  rights  granted to
individual Holders of the Notes pursuant to the Indenture; provided that nothing
in this subsection shall limit any rights granted to the Trustee under the Notes
or the Indenture.

          Section 24. Governing Law; Submission to Jurisdiction; Terms. (a) This
Pledge  Agreement  shall be governed by, and construed in accordance  with,  the
laws of the State of New York. Unless otherwise defined herein, terms defined in
Article  9 of the  Uniform  Commercial  Code of the  State  of New York are used
herein as therein defined.

          (b) The Pledgor hereby irrevocably  submits to the jurisdiction of any
New York State or Federal  court (to the extent  such court has  subject  matter
jurisdiction)  sitting in New York City and to the  courts of its own  corporate
domicile in respect of any  actions  brought  against it as a defendant  and any
appellate  court from any thereof in any action or proceeding  arising out of or
relating to this Pledge  Agreement,  and the Pledgor hereby  irrevocably  agrees
that all  claims  in  respect  of such  action  or  proceeding  may be heard and
determined in any such court.  The Pledgor  hereby  irrevocably  waives,  to the
fullest extent it may effectively do so, the defense of an inconvenient forum to
the  maintenance  of such  action or  proceeding  and any right  which it may be
entitled on account of place of residence  or domicile.  Solely for the purposes
of this Pledge Agreement, to the full extent permitted by law the Pledgor hereby
irrevocably  appoints  Durango Paper Company,  1000 Osborne  Street,  St. Marys,
Georgia 31558, Attention:  Prudencio Calderon, as its agent to receive on behalf
of the Pledgor 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

                                       10
<PAGE>

Pledgor in care of the Durango Paper  Company at such its address  stated above,
and the Pledgor hereby irrevocably  authorizes and directs Durango Paper Company
to accept such service on its behalf.  The Pledgor  agrees that a final judgment
in any such  action or  proceeding  shall be  conclusive  and may be enforced in
other  jurisdictions  by suit on the judgment or in any other manner provided by
applicable law.

          (c) Nothing in this  Section 24 shall  affect the right of the Trustee
to serve legal process in any other manner permitted by applicable law or affect
any  right  which  the  Trustee  would  otherwise  have to bring  any  action or
proceeding  against  the  Pledgor  or  its  property  in  the  courts  of  other
jurisdictions.

          (d) To the extent that the Pledgor  has or  hereafter  may acquire any
immunity  from  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) with respect to itself or its property,  the
Pledgor to the extent permitted by law hereby  irrevocably  waives such immunity
in respect of its obligations  under this Pledge Agreement and, without limiting
the  generality  of the  foregoing,  agrees  that the  waivers set forth in this
subsection  (d) shall have the fullest scope  permitted  under the United States
Foreign  Sovereign  Immunities  Act of 1976, as amended,  and are intended to be
irrevocable for purposes of such Act.

          Section 25. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY IRREVOCABLY
WAIVES  ALL RIGHT TO TRIAL BY JURY IN ANY  ACTION,  PROCEEDING  OR  COUNTERCLAIM
(WHETHER  BASED ON CONTRACT,  TORT OR  OTHERWISE)  ARISING OUT OF OR RELATING TO
THIS PLEDGE AGREEMENT,  THE TRANSACTIONS  CONTEMPLATED THEREBY OR THE ACTIONS OF
THE  PLEDGOR  OR THE  TRUSTEE  OR ANY  HOLDER  OF NOTES  IN THE  ADMINISTRATION,
PERFORMANCE OR ENFORCEMENT THEREOF.

                                       11
<PAGE>

          Section 26. Waiver of Liability.  The Pledgor  agrees that neither the
Holder of Notes nor the  Trustee  in its  capacity  as  Trustee  shall  have any
liability to the Pledgor  (whether  arising in tort,  contract or otherwise) for
losses suffered by the Pledgor in connection with, arising out of, or in any way
related to, the transactions  contemplated by this Pledge Agreement, or any act,
omission or event occurring in connection therewith,  unless it is determined by
a final nonappealable judgment of a court that is binding on the Trustee or such
Holder of Notes, as the case may be, that such losses were the result of acts or
omissions on the part of the Trustee or such  Holders of Notes,  as the case may
be, constituting bad faith, gross negligence, or willful misconduct.

                                       12
<PAGE>

          IN WITNESS WHEREOF,  the Pledgor and the Trustee have each caused this
Pledge  Agreement to be duly  executed and  delivered as of the date first above
written.

                                              Pledgor:

                                              CORPORACION DURANGO, S.A. DE C.V.

                                              By:_______________________________
                                                 Name:
                                                 Title:

                                              Trustee:

                                              THE CHASE MANHATTAN BANK

                                              By:_______________________________
                                                 Name:
                                                 Title:
<PAGE>

                                                                       EXHIBIT A

                   Form of GID Unsubordinated Promissory Note
<PAGE>

                                                                       EXHIBIT B

                  Form of Acknowledgment and Consent Agreement

          The  undersigned  hereby  acknowledges  notice of, and consents to the
terms and  provisions of, the Pledge  Agreement  dated  ____________,  2001 (the
"Pledge  Agreement",  the terms  defined  therein  being used  herein as therein
defined) from  Corporacion  Durango,  S.A. de C.V. (the  "Pledgor") to The Chase
Manhattan  Bank, as Trustee (the  "Trustee")  for the holders of the ___% Senior
Notes due 2008 (the  "Senior  Notes")  issued  under the  Indenture  dated as of
________________,  2001 between the Pledgor and the Trustee,  and hereby  agrees
with the Trustee that:

     (a)  The  Trustee  shall be  entitled  to  exercise  any and all rights and
          remedies  of the  Pledgor  under the  unsubordinated  promissory  note
          issued by the undersigned to the Pledgor on ___________ (as amended or
          supplemented  from time to time, the "GID Note"),  in accordance  with
          the terms of the Pledge Agreement, and the undersigned shall comply in
          all respects with such exercise.

     (b)  The  undersigned  will not make any prepayment of principal  under the
          GID Note, except as expressly provided therein.

          This  Acknowledgement  and Consent Agreement shall be binding upon the
undersigned and its successors and assigns,  and shall inure,  together with the
rights and remedies of the Trustee hereunder, to the benefit of the Trustee, the
holders of the Senior  Notes and their  permitted  successors,  transferees  and
assigns.  This  Acknowledgement  and Consent  Agreement shall be governed by and
construed in accordance with the laws of the State of New York.

         [The remainder of this page has been left intentionally blank]
<PAGE>

          IN  WITNESS   WHEREOF,   the   undersigned   has  duly  executed  this
Acknowledgement  and  Consent  Agreement  as of the date set  opposite  its name
below.

Dated:________________________            GRUPO INDUSTRIAL DURANGO, S.A. DE C.V.

                                         By_____________________________________
                                           Name:
                                           Title:

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