Document:

EX-10.43.3

EXHIBIT 10.43.3

 

AMENDMENT No. 3 AND WAIVER NO. 2

to CREDIT AGREEMENT

dated
as of February 11, 2009

among

KANSAS
CITY SOUTHERN DE MÉXICO, S.A. DE C.V.,

as Borrower,

ARRENDADORA KCSM, S. DE R.L. DE C.V.,

as Guarantor,

CERTAIN LENDERS,

and

BANK OF AMERICA, N.A.,

as Administrative Agent

 

 

 

     THIS
AMENDMENT NO. 3 AND WAIVER NO. 2 TO CREDIT AGREEMENT, dated as of February 11, 2009 (this
“Amendment”), is entered into among KANSAS CITY
SOUTHERN DE MÉXICO, S.A. DE C.V., a corporation
with variable capital (sociedad anónima de capital variable) organized under the laws of México
(the “Borrower”), ARRENDADORA KCSM, S. DE R.L. DE C.V., a corporation with variable capital
(sociedad de responsabilidad limitada de capital variable) organized under the laws of Mexico (the
“Guarantor”), each of the lenders that is a signatory hereto under the caption “LENDERS” on the
signature pages hereto and each other Person that becomes a “Lender” pursuant to Section 11.8(b) of
the Existing Credit Agreement, and BANK OF AMERICA, N.A., as the administrative agent for the
Lenders (in such capacity, together with its successors in such capacity, the “Administrative
Agent”).

RECITALS

     WHEREAS, the Borrower, the Guarantor, the Lenders and the Administrative Agent have entered
into the Credit Agreement, dated as of June 14, 2007 (as amended through the date hereof, the
“Existing Credit Agreement” and as amended and modified by this Amendment, the “Amended Credit
Agreement”);

     WHEREAS, the Majority Lenders desire to amend the Existing Credit Agreement as set forth
below, in accordance with Section 11.3 of the Existing Credit Agreement, subject to the conditions
set forth herein;

     WHEREAS, the Majority Lenders desire to waive certain obligations of the Borrower under the
Existing Credit Agreement, subject to the conditions set forth herein,

     NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto agree as follows:

     SECTION 1. Certain Defined Terms; Other Interpretive Provisions. (a) Capitalized
terms used but not otherwise defined herein shall have the meanings ascribed to them in the
Existing Credit Agreement.

     (b) The rules of interpretation set forth in Section 1.2 of the Existing Credit Agreement
shall apply to this Amendment.

     SECTION 2. Amendments. Effective on (and subject to the occurrence of) the
Effectiveness Date, the provisions of the Existing Credit Agreement referred to below are hereby
amended in accordance with this Section 2.

     (a) Sections 7.4(a) through (d) of the Existing Credit Agreement are hereby amended by
deleting the existing Sections 7.4(a) through (d) in their entirety and substituting the following
therefor:

     (a) Investments existing on the Effective Date and set forth on Schedule 7.4;

Amendment No. 3 and Waiver No. 2

to Credit Agreement

2

 

     (b) Temporary Cash Investments;

     (c) stock, obligations or securities received in satisfaction of judgments;

     (d) Investments in any Loan Party; and

     (e) Investments of $4,207,500 in Panama Canal Railway Company made on December 28,
2007.

     (b) The Existing Credit Agreement is hereby amended by adding to Schedule 7.4 thereto the
following as new clause (3) to such Schedule:

     3. $138,670,761.00 Mexican pesos ($10.3 Million US Dollars) loan from Borrower to NAFTA
Rail, S.A. de C.V. made on December 19, 2005

     SECTION 3. Waiver. (a) The Majority Lenders hereby waive any Default or Event of
Default under Sections 8.1(b) and (c) of the Existing Credit Agreement to the extent, and only to
the extent, of the Borrower’s noncompliance with Section 7.4 of the Existing Credit Agreement as a
result of the Investment by Borrower in Panama Canal Railway Company (“PCRC”) on December 28, 2007.

     (b) Each of the Borrower and the Guarantor hereby agrees that the waivers specifically
described in clause (a) above shall not constitute and shall not be deemed a waiver of any other
Default or Event of Default, whether arising as a result of further violations of Section 7.4 of
the Existing Credit Agreement or otherwise, or a waiver of any rights or remedies arising as a
result of such other Defaults or Events of Default. The failure of Borrower to comply with Section
7.4 of the Existing Credit Agreement other than as described above shall constitute an Event of
Default.

     SECTION 4. Representations and Warranties. Each of the Borrower and the Guarantor
represents and warrants to the Administrative Agent and the Lenders that:

     (a) The representations and warranties made in the Existing Credit Agreement, after giving
effect hereto, are true and correct as if made on the date hereof.

     (b) The execution and delivery by each of the Borrower and the Guarantor of this Amendment and
the performance by it of its obligations under the Amended Credit Agreement: (i) are within its
corporate powers, (ii) have been duly authorized by all necessary corporate action and (iii) do not
and will not contravene or conflict with any provision of: (A) its organizational documents, (B)
any Applicable Law, decree, judgment, award, injunction or similar legal restriction in effect,
except to the extent that any contravention thereof is not reasonably likely to have a Material
Adverse Effect or (C) any document or other contractual restriction binding upon or affecting it or
any of its Properties, except to the extent that any contravention thereof is not reasonably likely
to have a Material Adverse Effect.

     (c) Each of this Amendment and the Amended Credit Agreement, is a legal, valid and binding
obligation of the Borrower and the Guarantor, as applicable, enforceable against each such Person
in accordance with its terms, in each case except as may be limited by bankruptcy,

Amendment No. 3 and Waiver No. 2

to Credit Agreement

3

 

insolvency, reorganization, moratorium or similar laws affecting the enforceability of the
rights of creditors generally.

     SECTION 5. Effect of Amendment. All provisions of the Existing Credit Agreement,
except as expressly amended and modified by this Amendment, shall remain in full force and effect.
After this Amendment becomes effective, all references in any Loan Document (or any other document)
referring to the “Credit Agreement” shall be deemed to be references to the Amended Credit
Agreement. This Amendment shall not be deemed to expressly or impliedly waive, amend or supplement
any provision of the Existing Credit Agreement other than as expressly set forth herein.

     SECTION 6. Effectiveness of Amendment. This Amendment shall become effective on the
date (the “Effectiveness Date”) when, and only when the following conditions have been satisfied:

     (a) The Administrative Agent shall have received the following documents, each in form and
substance satisfactory to the Administrative Agent:

     (i) Executed Amendment. This Amendment, duly executed and delivered by the
parties hereto;

     (ii) Organizational Documents. Copies of the Organizational Documents of each
of the Borrower and the Guarantor, as certified by an authorized officer of each of the
Borrower and the Guarantor, as applicable; and

     (iii) Authorizations. Documents (including appropriate resolutions of its
shareholders or the Board of Directors or similar body) evidencing the due authorization of
the execution, delivery and performance by the Borrower and the Guarantor of this Amendment,
or a certification from an authorized officer of the Borrower and the Guarantor if such
documents are not required by Applicable Law; and

     (b) The Administrative Agent shall have received evidence of payment of: (i) the fees and
expenses then due and payable under Section 11.2(a) of the Existing Credit Agreement, including
reasonable legal fees of special U.S. and Mexican counsel to the Administrative Agent and (ii) the
fees payable pursuant to Section 7.

     SECTION 7. Amendment Fee. The Borrower agrees to pay to the Administrative Agent for
the account of each Lender that executes this Amendment a fee in an amount equal to: (a) 0.25%
multiplied by (b) the sum of: (i) such Lender’s undrawn Commitments as of the Effectiveness Date
plus (ii) such Lender’s Loans as of the Effectiveness Date. Such fee shall be payable in full for
those Lenders who have submitted their signatures before or on the Effectiveness Date.

     SECTION 8. Ratification and Confirmation of Guarantee. The Guarantor hereby ratifies
and reaffirms the execution and delivery of the Guarantee set forth in Article IX of the Existing
Credit Agreement and confirms that such Guarantee remains in full force and effect after giving
effect to this Amendment and reaffirms the Guaranteed Obligations after giving effect to this
Amendment.

Amendment No. 3 and Waiver No. 2

to Credit Agreement

4

 

     SECTION 9. Governing Law. THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE
PARTIES HEREUNDER SHALL BE CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY THE LAW OF THE STATE OF
NEW YORK (NOT INCLUDING SUCH STATE’S CONFLICT OF LAWS PROVISIONS OTHER THAN SECTION 5-1401 OF THE
NEW YORK GENERAL OBLIGATIONS LAW).

     SECTION 10. Counterparts. This Amendment may be executed on any number of separate
counterparts (including by fax or electronic delivery), and all of such counterparts taken together
shall be deemed to constitute one and the same instrument.

     SECTION 11. Section Headings. The various headings of this Amendment are inserted for
convenience only and shall not affect the meaning or interpretation of this Amendment.

     SECTION 12. Loan Document. The parties hereto hereby acknowledge and agree that this
Amendment shall constitute a Loan Document for all purposes of the Existing Credit Agreement and
the other Loan Documents.

Amendment No. 3 and Waiver No. 2

to Credit Agreement

5

 

          IN WITNESS WHEREOF, the parties hereto have duly executed this Amendment as of the day and
year first above written.

	 	 	 	 	 
	 	KANSAS CITY SOUTHERN DE MÉXICO, S.A. 

DE C.V., as the Borrower

 	 
	 	By:  	/s/ Paul J. Weyandt
 	 
	 	 	Name:  	Paul J. Weyandt 	 
	 	 	Title:  	Treasurer 	 
	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	ARRENDADORA KCSM, S. DE R.L. DE C.V.,

   as the Guarantor

 	 
	 	By:  	/s/ Paul J. Weyandt
 	 
	 	 	Name:  	Paul J. Weyandt 	 
	 	 	Title:  	Treasurer 	 
	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Amendment No. 3 and Waiver No. 2

to Credit Agreement

S-1

 

	 	 	 	 	 
	 	BANK OF AMERICA, N.A.,

   as the Administrative Agent

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Amendment No. 3 and Waiver No. 2

to Credit Agreement

S-2

 

	 	 	 	 	 
	 	LENDERS:

BBVA BANCOMER, S.A., INSTITUCIÓN DE

BANCA MÚLTIPLE, GRUPO FINANCIERO 

BBVA BANCOMER, GRAND CAYMAN 

BRANCH

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Amendment No. 3 and Waiver No. 2

to Credit Agreement

S-3

 

	 	 	 	 	 
	 	BANK OF AMERICA, N.A.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Amendment No. 3 and Waiver No. 2

to Credit Agreement

S-4

 

	 	 	 	 	 
	 	EXPORT DEVELOPMENT CANADA

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Amendment No. 3 and Waiver No. 2

to Credit Agreement

S-5

 

	 	 	 	 	 
	 	KFW

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Amendment No. 3 and Waiver No. 2

to Credit Agreement

S-6

 

	 	 	 	 	 
	 	BANK OF MONTREAL

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Amendment No. 3 and Waiver No. 2

to Credit Agreement

S-7

 

	 	 	 	 	 
	 	THE BANK OF NOVA SCOTIA

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Amendment No. 3 and Waiver No. 2

to Credit Agreement

S-8

 

	 	 	 	 	 
	 	COMERICA BANK

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Amendment No. 3 and Waiver No. 2

to Credit Agreement

S-9EX-10.47.1

EXHIBIT 10.47.1

KANSAS CITY SOUTHERN INDUSTRIES, INC.

2008 STOCK OPTION

AND PERFORMANCE AWARD PLAN

NON-QUALIFIED STOCK OPTION AWARD AGREEMENT

     By this Agreement, Kansas City Southern, a Delaware corporation (the “Company”), grants to
you, [Name], an employee of the Company or an Affiliate, (the “Grantee”), (i) a non-qualified stock
option (the “Option”) to purchase that number of shares (“Shares”) of the Company’s Common Stock,
$.01 par value, set forth below and (ii) an equal number of limited stock appreciation rights
(“LSARs”), all subject to the terms and conditions set forth below and in the attached Exhibit A
hereto and in the Kansas City Southern 2008 Stock Option and Performance Award Plan (including
Committee rules, regulations, policies and procedures established thereunder) as may from time to
time be amended (the “Plan”), all of which are an integral part of this Agreement.

	 	 	 	 	 
	 

	 	Grant Date:
	 	[Date]
	 

	 	Number of Shares:
	 	[Options]
	 

	 	Option Price:
	 	[Price]

     This Option shall become exercisable on [Exercisable Date], provided you remain continuously
employed by the Company or an Affiliate from the Grant Date to such date the Option becomes
exercisable. The term of the Option shall be ten (10) years from the Grant Date unless terminated
earlier as provided in Exhibit A or in the Plan.

     The Award evidenced by this Agreement shall not be effective until you have indicated your
acceptance of this Agreement by signing one copy of this Agreement in the space provided below and
returning it to the Corporate Secretary’s Office, in the envelope provided, within ten (10) days
after your receipt of this Agreement from the Company. You should retain one copy of this
Agreement for your records.

	 	 	 	 	 
	 	Kansas City Southern

 	 
	 	By:  	
 	 
	 	 	Name and Title: 	 
	 	 	 	 
	 

	 	 	 
	ACCEPTED AND AGREED:
	 	 
	
	 	 
	 
	 	 
	 

[Name of Grantee]

	 	 
	[Address]
	 	 
	[City, State, Zip]
	 	 
	 
	Dated:                    , 200  
	 	 

 

 

EXHIBIT A

TO

STOCK OPTION AGREEMENT

     1. Plan Governs. The Award and this Agreement are subject to the terms and conditions
of the Plan. The Plan is incorporated in this Agreement by this reference. All capitalized terms
used in this Agreement have the meaning set forth in the Plan unless otherwise defined in this
Agreement. By executing this Agreement, you acknowledge receipt of a copy of the Plan and the
prospectus covering the Plan and you acknowledge that the Award is subject to all the terms and
provisions of the Plan. You further agree to accept as binding, conclusive and final all decisions
and interpretations by the Plan Committee with respect to any questions arising under the Plan. By
signing this Agreement you are not obligated to exercise all or any part of this Option or any
other Option.

     2. Manner of Exercise. This Option shall be exercised by delivering to the Company
(or its authorized agent), during the period in which such Option is exercisable, (i) a written
notice of your intent to purchase a specific number of Shares pursuant to this Option (a “Notice of
Exercise”), and (ii) full payment of the Option Price for such specific number of Shares. Payment
may be made by any one or more of the following means:

     (a) Cash, personal check, or wire transfer;

     (b) if approved and permitted by the Committee, Shares owned by you with a Fair Market
Value on the last complete stock trading day preceding such exercise equal to the Option
Price, which such Shares must be fully paid, non-assessable, and free and clear from all
liens and encumbrances, or

     (c) if approved and permitted by the Committee, through the sale of the Shares acquired
on exercise of this Option through a broker to whom you have submitted irrevocable
instructions to deliver promptly to the Company the amount of sale or loan proceeds
sufficient to pay for such Shares, together with, if required by the Company, the minimum
statutory amount of federal, state, local or foreign withholding taxes payable by reason of
such exercise. A Copy of such delivery instructions must also be delivered to the Company by
the Grantee with the Notice of Exercise; or

     (d) if approved and permitted by the Committee, with Restricted Shares owned by you
with a Fair Market Value on the last completed stock trading day preceding such exercise
equal to the Option Price.

The exercise of the Option shall become effective at the time such a Notice of Exercise has been
received by the Company, which must be before the tenth anniversary of the Grant Date (the
“Expiration Date”). The exercise of this Option as to a number of Shares will result in the
cancellation of an equal number of LSARs. You shall not have any rights as a stockholder of the
Company with respect to the Shares deliverable upon exercise of this Option until a certificate for
such Shares is delivered to you.

     If the Option is exercised as permitted herein by any person or persons other than Grantee,
such Notice of Exercise shall be accompanied by such documentation as Company may reasonably
require,

 

 

including without limitation, evidence of the authority of such person or persons to
exercise the Option and evidence satisfactory to Company (if required by the Company) that any
death taxes payable with respect to such Shares have been paid or provided for.

     3. Exercisability. This Option shall become fully exercisable upon your Termination
of Affiliation on account of (a) Retirement, (b) death or (c) Disability. Retirement means
Retirement as defined in the Plan (Termination of Affiliation after having both attained age 55 and
completed 10 years of service) and as specified in Committee rules, regulations or policies
(currently Termination of Affiliation after having attained age 65).

     4. Change of Control. This Option shall become fully exercisable upon your
Termination of Affiliation on account of a Change of Control. Upon your Termination of Affiliation
on account of a Change of Control, all LSARs then outstanding shall automatically be exercised and
this Option shall be canceled.

     5. Exercise After Termination of Affiliation. This Option may be exercised only while
you are employed by the Company or an Affiliate, except that this Option may also be exercised
after the date on which you have a Termination of Affiliation (“Termination Date”) as follows:

     (i) if you have a Termination of Affiliation by reason of your Retirement, you may also
exercise this Option at any time during the first five years after your Termination Date;

     (ii) if you have a Termination of Affiliation by reason of your Disability, you may
also exercise this Option at any time during the first 12 months after your Termination
Date;

     (iii) if you have a Termination of Affiliation by reason of your death, the executor or
administrator of your estate, your heirs or legatees, or beneficiary designated in
accordance with the Plan, as applicable, may also exercise this Option at any time during
the first 12 months after your Termination Date; and

     (iv) if you have a Termination of Affiliation on account of any other reason (other
than a dismissal for Cause), you may also exercise this Option at any time during the first
three months after your Termination Date;

provided, however, that (x) except as otherwise provided in Section 3 or 4 of this Exhibit A, this
Option may be exercised after your Termination Date only to the extent it is exercisable on the
Termination Date, (y) under no circumstances may this Option be exercised on or after the
Expiration Date, and (z) the expiration of your Option will automatically result in the expiration
of all associated LSARs. For purposes of this Section 5, if you are employed by an Affiliate of
the Company, you will be deemed to have had a Termination of Affiliation as of the first day on
which such corporation ceases to be an Affiliate of the Company.

     6. Affiliation with Competitor. Notwithstanding anything to the contrary contained
herein, if Grantee, without Company’s consent, becomes associated with, employed by, renders
service to, or owns any interest in (other than any non-substantial interest, as the Committee from
time to time determines) any business that is in competition with Company or any Related Company
(as defined below), this Option shall terminate and cease to be exercisable immediately upon such
event. For

2

 

purposes of this paragraph, Related Company means (i) any individual or entity that
directly, or through one or more intermediaries, controls, or is controlled by, or is under common
control with, the
Company, and (ii) any entity in which the Company owns, directly or indirectly, 20% or more of
the combined value of all equity interests.

     7. No Waiver. The failure of Company in any instance to exercise any of its rights
granted under this Agreement or the Plan shall not constitute a waiver of any other rights that may
arise under this Agreement.

     8. Limited Transferability of Option. Except as provided in the immediately following
sentence, this Option is exercisable during your lifetime only by you or your guardian or legal
representative, and this Option and the associated LSARs are not transferable except by will or the
laws of descent and distribution. To the extent and in the manner permitted by the Committee, and
subject to such terms, conditions, restrictions or limitations that may be prescribed by the
Committee, you may transfer this Option and the associated LSARs to (i) your spouse, sibling,
parent, child (including an adopted child) or grandchild (any of which an “Immediate Family
Member”); (ii) a trust, the primary beneficiaries of which consist exclusively of you or your
Immediate Family Members; or (iii) a corporation, partnership or similar entity, the owners of
which consist exclusively of you or your Immediate Family Members.

     9. Fractional or De Minimis Shares. Neither the Option nor the LSARs shall be
exercisable with respect to a fractional share or with respect to fewer that ten (10) Shares,
unless the remaining Shares, are fewer than ten (10)).

     10. Nonstatutory Option. This Option has been designated by the Committee as a
Nonstatutory Option; it does not qualify as an Incentive Stock Option.

     11. Taxes. The Company is not required to issue Shares upon the exercise of this
Option unless you first pay to the Company such amount, if any, as may be required by the Company
to satisfy any liability it may have to withhold federal, state, local or foreign income or other
taxes relating to such exercise. You may elect to satisfy such tax withholding obligation by
delivering to the Company a written irrevocable election to have the Company withhold a portion of
the Shares purchased upon exercise of the Option having a Fair Market Value not in excess of the
minimum statutory amount of taxes required to be withheld; provided, however, that the Committee
may, at any time before you file such an election with the Company, revoke your right to make such
an election. The Company retains the discretion to require a specific method of withholding and
may exercise such discretion at any time with respect to this Option grant.

     12. No Right to Employment. Nothing in this Agreement shall interfere with or limit
in any way the right of the Company or an Affiliate to terminate your employment or service at any
time, nor confer upon you the right to continue in the employ of the Company or an Affiliate.

     13. Notices. Any notice to be given under the terms of this Agreement to the Company
shall be addressed to the Company in care of its Corporate Secretary. Any notice to be given to
you shall be addressed to you at the address listed in the Company’s records. By written notice
referencing this paragraph of this Agreement, either party may designate a different address for
notices. Any notice under this Agreement to the Company shall become effective upon receipt by the
Company.

3

 

Any notice under this Agreement to you will be deemed to have been delivered to you when
delivered in person or when deposited in the United States mail, addressed to you at your address
on the
shareholder records of the Company, or such other address as you have designated under this
paragraph.

     14. Amendment. The Company reserves the right to amend the Plan at any time. The
Committee reserves the right to amend this Agreement at any time.

     15. Severability. If any part of this Agreement is declared by any court or
governmental authority to be unlawful or invalid, such unlawfulness or invalidity shall not serve
to invalidate any part of this Agreement not declared to be unlawful or invalid. Any part so
declared unlawful or invalid shall, if possible, be construed in a manner which gives effect to the
terms of such part to the fullest extent possible while remaining lawful and valid.

     16. Applicable Law. This Agreement shall be governed by the laws of the State of
Delaware other than its laws respecting choice of law.

     17. Headings. Headings are provided herein for convenience only and are not to serve
as a basis for interpretation or construction of this Agreement.

4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00153-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00153-of-00352.parquet"}]]