Document:

exv10w1

Exhibit 10.1

RETENTION AND CONSULTING AGREEMENT

     This Retention and Consulting Agreement (this “Agreement”) is made and entered into as of
January 22, 2010 (the “Effective Date”), by and between Harbinger Group Inc. (the “Company”) and
Leonard DiSalvo (“Employee”).

Recitals

	 	A.	 	Employee is currently employed by the Company.
	 
	 	B.	 	Over the next several months, the Company will be making certain changes with
respect to its business operations which ultimately will result in the termination of
Employee’s employment with the Company.
	 
	 	C.	 	The Company wishes to continue to employ Employee and to obtain Employee’s
assistance in connection with implementing its business changes.

Agreement

     NOW, THEREFORE, in consideration of the premises and of the mutual promises and covenants
contained herein, and of other good and valuable consideration, the receipt, adequacy and
sufficiency of which are hereby acknowledged, Company and Employee agree as follows:

     1. Employment; Consulting Services.

     (a) Employment. Subject to the terms of this Agreement, Employee shall
continue to be employed by the Company from the Effective Date through May 31, 2010 (the
“Employment Period”) at the same annual salary rate and subject to the same benefit plans as
in effect on the Effective Date. In addition, for 2010, Employee shall receive a four
percent (4%) increase in the rate of his annual base salary, such increase to become
effective as of Employee’s normal salary review date. If Employee’s normal annual salary
review date has already occurred for 2010, but his salary has not yet been adjusted,
Employee’s annual salary shall be increased retroactively to the date of such annual review.
During the Employment Period, Employee shall continue to perform the same duties he
performed prior to the Effective Date, together with such other duties reasonably requested
by the Company in connection with the transition of the Company’s business. The Company
agrees that it will not terminate Employee’s employment prior to May 31, 2010, other than
for Cause. For purposes of this Agreement, the term “Cause” shall mean that Employee has
(A) engaged in conduct amounting to fraud or dishonesty against the Company; (B) engaged in
unethical conduct related to his work under this Agreement; (C) committed a violation of the
Company’s compliance policies and procedures; (D) acted in a negligent manner or committed
willful misconduct in the performance of his duties hereunder; (E) been under the influence
of illegal drugs or alcohol while on the premises of the Company or at any time while
providing the employment or Consulting Services (as hereinafter defined); or (F) committed a
breach or violation of the terms of this Agreement or otherwise failed to perform the
employment or Consulting Services in accordance with the terms of this Agreement.

     Any options previously granted to Employee by the Company under the 1996 Long-Term
Incentive Plan or under the Zap.Com 1999 Long-Term Incentive Plan and which are outstanding
on the date Employee’s employment terminates shall continue to be exercisable for the
periods and subject to the terms set forth in such plans and the applicable option
agreements. With respect to the foregoing, Employee’s termination of employment shall,
solely with respect to his options, be deemed to be effective August 31, 2010, unless
Employee voluntarily resigns or is

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terminated by the Company for Cause prior to May 31, 2010. A termination of employment
by the Company as of the end of the Employment Period shall be a termination without Cause
with respect to any outstanding options, and such termination shall, solely with respect to
Employee’s options, be deemed to be effective August 31, 2010. In addition, Employee shall
be entitled to receive his bonus earned for 2009, but not yet paid, under the Company’s
annual bonus plan, in an amount equal to $66,150 (the “2009 Bonus”). The 2009 Bonus shall
be paid on or before March 15, 2010; provided, however, that the 2009 Bonus shall be
forfeited if Employee voluntarily resigns or is terminated by the Company for Cause prior to
the date the 2009 Bonus is actually paid.

     (b) Consulting Services.

     (i) Beginning on June 1, 2010 and for a period of twelve (12) months thereafter
(the “Consulting Period”), the Company shall engage Employee to provide certain
consulting services in connection with the transition of the Company’s business (the
“Consulting Services”). Employee agrees that he shall be available to provide up to
40 hours per week of time towards providing the Consulting Services to the Company
during the Consulting Period and shall travel to New York City, New York as
reasonably deemed necessary by the Company to assist in the transition of the
Company’s business. The Company agrees that it shall not terminate this Agreement
prior to the expiration of the Consulting Period, other than for Cause. The
Employee may terminate the Consulting Period at anytime upon thirty (30) days prior
written notice. If Employee voluntarily resigns or is terminated by the Company for
Cause prior to the expiration of the Employment Period, there shall be no obligation
to engage Employee during the Consulting Period and he shall not be entitled to any
Consulting Fees or COBRA Payments (as hereinafter defined) nor to the extended
option period as described in Section 1(a) above.

     (ii) Employee represents and warrants that he will be performing his
obligations during the Consulting Period as an independent contractor and not an
employee of the Company. During the Consulting Period, Employee shall not be
considered by reason of any of the provisions of this Agreement as having an
employee status or being entitled to participate in any employee benefits or benefit
plans provided to the regular employees of the Company. Employee shall control the
manner and means of his work. Employee acknowledges, understands and agrees that,
with respect to the Consulting Services, the Company shall not be required (A) to
withhold federal or state income taxes from any compensation paid to Employee,
hereunder, or to otherwise comply with any state or federal law concerning the
collection of income taxes at the source of the payment of wages; (B) under the
Federal Unemployment Tax Act and the Federal Insurance Contribution Act to withhold
payment for unemployment compensation or for social security on behalf of Employee;
or (C) under the laws of any state to obtain worker’s compensation insurance or to
make state unemployment compensation contributions on Employee’s behalf. Employee
expressly releases the Company from, and covenants not to sue the Company for, any
liability arising from the Company not withholding such taxes or payments or not
providing such unemployment compensation, social security benefits and worker’s
compensation insurance. Employee assumes full responsibility for payment of all
federal, state and local taxes for contributions imposed or required under
unemployment insurance, social security and income tax laws with respect to his
performance of this Agreement during the Consulting Period agrees to timely file all
returns and make all payments associated with any such obligations and agrees to
indemnify the Company from all claims, costs, expenses or other liabilities arising
from Employee’s failure to comply with the terms of this Section 1(b)(ii).

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     (iii) Provided Employee obtains advance, written approval for travel related to
the Consulting Services or is directed by the Company to travel to New York City,
New York, the Company will reimburse Employee for all actual, reasonable and direct
travel expenses which he incurs in the performance of his duties hereunder.
Employee shall provide the Company with written documentation of such expenses in a
form complying with the requirements of the Internal Revenue Service for tax
deductibility purposes, and reimbursement for each item of expense shall be made
within a reasonable time after receipt by the Company of the written documentation
thereof.

     (iv) Employee recognizes and acknowledges that the Company and its affiliates
need to protect their legitimate business interests and, therefore, covenants and
agrees that Employee shall not, directly or indirectly, use or otherwise exploit for
his own benefit or for the benefit of any other person or entity, any Confidential
Information (defined below) disclosed to Employee or of which he became aware by
reason of Employee’s position as an employee or consultant to the Company. For
purposes of this Agreement, “Confidential Information” shall mean any and all data
and information, in whatever form or medium, relating to the Company or its
investment or portfolio companies, investors, prospective investors, shareholders,
members, employees, family members or partners (including but not limited to,
financial information, technical, commercial or intellectual property-related
information, data relating to legal analyses, policies and procedures, systems,
business methods, operations, techniques, business plans, accounts, employees and
advisors, and investment strategies and identities of actual and prospective
investors). Employee agrees that the terms of this Agreement constitute
“Confidential Information” and may not, except as may otherwise be required by law,
be disclosed by Employee to any third party other than Employee’s spouse, attorney
and/or accountant, without the express written consent of the Company. Employee
agrees that, upon termination of this Agreement, he shall immediately destroy or
return to the Company all records containing any Confidential Information
(including, without limitation, all electronic records containing any Confidential
Information).

     (v) Employee may provide the Company with certain information or documents
regarding the services performed hereunder in writing or by electronic mail. The
Company may use such information as it deems desirable, and Employee hereby grants,
assigns and transfers all of Employee’s rights, title or interest in such
information and documents (both in printed and electronic form) to the Company and
agrees that such documents (both in printed and electronic form) are “work made for
hire” as that phrase is used in United States copyright laws.

     (vi) Employee acknowledges that all equipment (including computers, PDAs,
mobile telephones and software), originals and copies of materials, records,
documents, files and memoranda (including materials maintained electronically),
generated by Employee or coming into Employee’s possession or under Employee’s
control in the course of his employment or providing the Consulting Services,
including but not limited to Confidential Information, are the sole property of the
Company (“Company Property”). Upon the termination of this Agreement for any
reason, or upon the request of the Company at any time, Employee will promptly
deliver all Company Property to the Company. At no time will Employee remove or
cause to be removed from the premises of the Company any Company Property, including
but not limited to any computer data related to the foregoing, except in furtherance
of Employee’s duties to the Company.

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     2. Compensation.

     (a) Retention Payments. So long as Employee continues to be actively employed
by the Company for the duration of the Employment Period, and expressly contingent thereon,
the Company shall provide Employee with the following one-time retention payments
(collectively, such retention payments shall be referred to herein as the “Retention
Payments”):

     (i) An amount equal to $150,000 (One Hundred Fifty Thousand Dollars);

     (ii) An amount equal to $34,453, which reflects one hundred twenty-five percent
(125%) of the 2009 Bonus multiplied by 5/12; and

     (iii) Outplacement services at an outplacement firm selected by the Company for
a period of three (3) months beginning at the end of the Employment Period. It is
agreed that the Company’s sole obligation in this respect is to pay, directly to the
outplacement agency, for such outplacement services, as contracted with the
outplacement agency. Any dispute between Employee and the outplacement agency
shall be deemed a dispute solely between Employee and the outplacement agency and
shall not in any way be construed as a breach of this Agreement by the Company.

The Retention Payments shall be subject to any payroll or other deductions as may be
required to be made pursuant to law. Subject to the terms of Section 2(b)(ii), the
Retention Payments (excluding the outplacement services, which shall be payable to the
outplacement agency pursuant to its agreement with the Company) shall be paid to Employee no
later than thirty (30) days following the last day of the Employee’s employment or as soon
thereafter as the Release (defined below) becomes effective.

     (b) Consulting Payments. For each full month of the Consulting Period, the
Company shall compensate Employee at the rate of one-twelfth (1/12) of Employee’s annual
base salary at the salary rate in effect as of the date his employment terminates (the
“Consulting Fee”). For any partial months worked (as determined in the Company’s sole
discretion), the Company shall pay Employee $1,000 (One Thousand Dollars) for each complete
day worked in such partial months; provided, however, that the total
Consulting Fee paid in any partial month worked shall not exceed one-twelfth (1/12) of
Employee’s annual base salary at the salary rate in effect as of the date his employment
terminates. The Consulting Fees shall be paid monthly in arrears during each month of the
Consulting Period.

     (i) In addition to the Consulting Fee, during the Consulting Period, the
Company shall, if Employee elects health care continuation coverage under COBRA or
applicable state law, pay for such coverage (the “COBRA Payments”) through the
Consulting Period at the same rate it pays for health insurance coverage for its
active employees (with Employee required to pay for any employee paid portion of
such coverage). After termination of the Consulting Period, Employee shall be
responsible for the payment of all health care continuation premiums. Nothing
herein provided, however, shall be construed to extend the period of time over which
such continuation coverage otherwise may be provided to Employee and/or his
dependents. For the avoidance of doubt, the engagement of Employee as a consultant
of the Company during the Consulting Period does not (except as otherwise provided
above with respect to Employee’s options, for which employment shall be deemed to
continue until August 31, 2010) constitute continuation of employment for any
purpose, including, without limitation, bonuses or any other benefit plans of the
Company.

     (ii) The Retention Payments and Consulting Fee shall be in consideration of
Employee’s continued employment with the Company through the duration of the
Employment Period and his execution of an agreement (the “Release”) reasonably
acceptable to the Company that (A) waives any rights Employee may otherwise have
against the Company (including each of their respective successors and assigns), (B)

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releases the Company from actions, suits, claims, proceedings and demands
related to the period of employment (including the Employment Period) and/or the
termination of employment, and (C) contains certain other reasonable obligations
which shall be set forth at the time of the termination. Employee must sign and
tender the Release not later than thirty (30) days following his last day of
employment, or such earlier date as required by the Company, and if Employee fails
to do so, he shall forfeit the right to the Retention Payments and the right to any
Consulting Fees.

     (c) Section 409A Compliance. It is intended that any amount payable under this
Agreement will be exempt from Section 409A of the Internal Revenue Code of 1986, as amended
and regulations and guidance relating thereto (the “Code”), so as not to subject the
Employee to the payment of any interest or tax penalty which may be imposed under Section
409A of the Code, provided, however, that the Company shall not be
responsible for any such interest and tax penalties. If any provision of this Agreement
shall be invalid or unenforceable, in whole or in part, or as applied to any circumstance,
under the laws of any jurisdiction that may govern for such purpose, or any provision of
this Agreement needs to be interpreted to comply with the requirements of a short-term
deferral which is exempt from Section 409A of the Code, then such provision shall be deemed
to be modified or restricted, or so interpreted, to the extent and in the manner necessary
to render the same valid and enforceable, or to the extent and in the manner necessary to be
interpreted in compliance with such requirements of the Code, either generally or as applied
to such circumstance, or shall be deemed excised from this Agreement, as the case may
require, and this Agreement shall be construed and enforced to the maximum extent permitted
by law as if such provision had been originally incorporated herein as so modified or
restricted, or as if such provision had not been originally incorporated herein, as the case
may be.

     3. Non-Disparagement; Non-Solicitation.

     (a) Non-Disparagement. During the Employment Period and Consulting Period and
thereafter, Employee agrees not to make, publish or communicate at any time to any person or
entity, including, but not limited to, customers, clients and investors of the Company or
its subsidiaries, any Disparaging (defined below) remarks, comments or statements concerning
the Company, its subsidiaries, or any of their respective present and former stockholders
(including Harbinger Capital Partners and its affiliates), members, partners, directors or
officers. For purposes of this Agreement, “Disparaging” remarks, comments or
statements are those that impugn the character, honesty, integrity, morality, business
acumen or abilities of the individual or entity being disparaged.

     (b) Non-Solicitation. During the Employment Period and the Consulting Period
and for a period of six (6) months after the end of the Consulting Period (the “Non-Solicit
Period”), Employee shall not, either directly or indirectly, solicit for employment or cause
to be solicited for employment any officer, employee or consultant of the Company.
Furthermore, during the Non-Solicit Period, Employee shall not either directly or
indirectly, solicit or cause to be solicited any investor, potential investor or business
partner of the Company.

     4. Remedy for Breach. Employee hereby acknowledges that the provisions of Sections
1(b)(iv) and 3 are reasonable and valid in geographical and temporal scope and in all other
respects and necessary for the protection of the Company. Employee further acknowledges that the
Company will be irreparably harmed if such covenants are not specifically enforced. Accordingly,
Employee agrees that, in addition to any other relief to which the Company may be entitled,
including claims for damages, the Company shall be entitled to seek injunctive relief (without the
requirement of any bond) from a court of competent jurisdiction for the purpose of restraining an
actual or threatened breach of such covenants.

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     5. Assignment. Employee acknowledges that the services to be rendered by him
hereunder are based upon his specialized and personal skills and may not be delegated or assigned
by him without the prior written consent of the Company, and that his right to any monies due or to
become due as a consequence of the terms hereof is not assignable without the prior written consent
of the Company. The rights and obligations of the Company under this Agreement shall inure to the
benefit of and shall be binding upon the successors and assigns of the Company.

     6. Notice. Any notification required or permitted to be given by this Agreement shall
be properly given if in writing and sent by certified or registered mail addressed to the parties
as follows:

     If to Employee:

Leonard DiSalvo

19 Neuchatel Lane

Fairport, New York 14450

     If to the Company:

Harbinger Group Inc.

100 Meridian Center

Suite 350

Rochester, NY 14618

Attention:     Francis T. McCarron

Voice:            (285) 242-2000

E-mail:           fmccarron@harbingergroupinc.com

     With a copy to:

Harbinger Capital Partners LLC

450 Park Avenue

30th Floor

New York, NY 1022

Attention:      Robin Roger

Voice:             (212) 339-5141

E-mail:             rroger@harbingercapital.com

Either party by notice in writing given to the other as hereinabove provided may change the address
to which future notices to such party shall be given.

     7. Arbitration. The parties hereto agree that any dispute, controversy or claim
between the parties arising out of, relating to or concerning this Agreement shall be finally
settled by arbitration in New York, New York before and in accordance with the Commercial
Arbitration Rules and Mediation Procedures of the American Arbitration Association (the “AAA”)
before a single arbitrator. The arbitrator’s award shall be final and binding upon all parties and
judgment upon the award may be entered in any court of competent jurisdiction in any state of the
United States. Each party shall bear its own costs and expenses incurred in connection with any
such arbitration proceeding. For purposes of any actions or proceedings ancillary to the
arbitration referenced above, the parties agree to submit to the exclusive jurisdiction of the
state courts of New York, New York County.

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     8. Miscellaneous.

     (a) Headings. Section headings are inserted for convenience only, are not part
of this Agreement and are not to be considered in the construction or interpretation of this
Agreement.

     (b) Entire Agreement. This Agreement embodies the entire agreement of the
parties hereto relating to the subject matter hereof. This Agreement supersedes all prior
agreements and understandings, and all rights and obligations thereunder are hereby canceled
and terminated. In executing this Agreement, Employee represents that Employee has not
relied on any representation or statement not set forth herein, and Employee expressly
disavows any such representations or statements.

     (c) Amendment. No amendment or modification of this Agreement shall be valid
or binding unless it is in writing and signed by the parties hereto.

     (d) Enforceability. If any provision of this Agreement is determined to be
unenforceable, the remainder of this agreement shall not be adversely affected thereby.

     (e) No Waiver. No failure or delay by the Company in exercising any right,
power or privilege hereunder shall operate as a waiver thereof, nor shall any single or
partial exercise thereof preclude any other or further exercise thereof or the exercise of
any right, power or privilege.

     (f) Waiver of Jury Trial. The parties hereto knowingly and voluntarily waive
any right which either or both of them shall have to receive a trial by jury with respect to
any claims, controversies or disputes which shall arise out of or relate to this Agreement
or the subject matter hereof.

     (g) Survival of Terms. Sections 1(b)(ii), (iv), 3, 4 and 7 of this Agreement
shall survive the termination of this Agreement.

     (h) Governing Law. This Agreement will be governed by and construed in
accordance with the laws of the State of New York applicable to agreements made and/or to be
performed in that State, without regard to any choice of law provisions thereof.

     (i) Counterparts. This Agreement may be signed in counterparts, which together
shall constitute one agreement. PDF or electronic signatures to this Agreement shall be of
the same force and effect as original signatures.

[Remainder of page intentionally left blank.]

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     IN WITNESS WHEREOF, the Company and Employee have caused this Agreement to be executed as of
the Effective Date.

	 	 	 	 	 	 	 
	 	 	Harbinger Group Inc.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Francis T. McCarron	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Francis T. McCarron	 	 
	 

	 	Its:
	 	Executive Vice President &

Chief Financial Officer	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Leonard DiSalvo	 	 
	 	 	 	 	 
	 	 	Leonard DiSalvo	 	 

8exv4w1

Exhibit 4.1

EXECUTION VERSION

 

 

Kansas City Southern de México, S.A. de C.V.,

as Issuer

and

U.S. Bank National Association,

as Trustee

and

as Paying Agent

 

Indenture

Dated as of January 22, 2010

 

8% Senior Notes due 2018

 

 

 

 

CROSS-REFERENCE TABLE

	 	 	 
	TIA Sections	 	Indenture Sections
	§ 310(a)(1)
	 	7.10
	     (a)(2)
	 	7.10
	     (b)
	 	7.03; 7.08
	§ 311
	 	7.03
	§ 313(a)
	 	7.06
	(c)
	 	7.05; 7.06
	§ 314(a)
	 	4.18; 13.02
	(a)(4)
	 	1.01 “Officers’ Certificate”
	(c)(1)
	 	13.03
	(c)(2)
	 	13.03
	(e)
	 	1.01 “Officers’ Certificate,”

	 
	 	         “Opinion of Counsel”
	§ 315(a)-(d)
	 	7.02
	§ 316(a)
	 	6.06
	(b)
	 	6.07
	§ 317(a)(1)
	 	6.08
	(a)(2)
	 	6.09
	§ 318(a)
	 	13.01
	(c)
	 	13.01

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

 

 

TABLE OF CONTENTS

Page

ARTICLE ONE

DEFINITIONS AND INCORPORATION BY REFERENCE

	 	 	 	 	 	 	 
	SECTION 1.01
	 	Definitions	 	 	1	 
	SECTION 1.02
	 	Incorporation by Reference of Trust Indenture Act	 	 	21	 
	SECTION 1.03
	 	Rules of Construction	 	 	21	 

ARTICLE TWO

THE NOTES

	 	 	 	 	 	 	 
	SECTION 2.01
	 	Form and Dating	 	 	22	 
	SECTION 2.02
	 	Restrictive Legends	 	 	23	 
	SECTION 2.03
	 	Execution, Authentication and Denominations	 	 	25	 
	SECTION 2.04
	 	Registrar and Paying Agent	 	 	26	 
	SECTION 2.05
	 	Paying Agent to Hold Money in Trust	 	 	26	 
	SECTION 2.06
	 	Transfer and Exchange	 	 	27	 
	SECTION 2.07
	 	Book-Entry Provisions for Global Notes	 	 	28	 
	SECTION 2.08
	 	Special Transfer Provisions	 	 	29	 
	SECTION 2.09
	 	Replacement Notes	 	 	32	 
	SECTION 2.10
	 	Outstanding Notes	 	 	32	 
	SECTION 2.11
	 	Temporary Notes	 	 	33	 
	SECTION 2.12
	 	Cancellation	 	 	33	 
	SECTION 2.13
	 	CUSIP Numbers	 	 	33	 
	SECTION 2.14
	 	Defaulted Interest	 	 	33	 
	SECTION 2.15
	 	Issuance of Additional Notes	 	 	34	 

ARTICLE THREE

REDEMPTION

	 	 	 	 	 	 	 
	SECTION 3.01
	 	Optional Redemption	 	 	34	 
	SECTION 3.02
	 	Redemption for Changes in Withholding Taxes	 	 	35	 
	SECTION 3.03
	 	Notices to Trustee	 	 	35	 
	SECTION 3.04
	 	Selection of Notes to Be Redeemed	 	 	35	 
	SECTION 3.05
	 	Add On Notes	 	 	36	 
	SECTION 3.06
	 	Notice of Redemption	 	 	36	 
	SECTION 3.07
	 	Effect of Notice of Redemption	 	 	37	 
	SECTION 3.08
	 	Deposit of Redemption Price	 	 	37	 
	SECTION 3.09
	 	Payment of Notes Called for Redemption	 	 	37	 
	SECTION 3.10
	 	Notes Redeemed in Part	 	 	37	 

ARTICLE FOUR

COVENANTS

	 	 	 	 	 	 	 
	SECTION 4.01
	 	Payment of Notes	 	 	38	 
	SECTION 4.02
	 	Maintenance of Office or Agency	 	 	38	 

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	SECTION 4.03
	 	Limitation on Indebtedness	 	 	38	 
	SECTION 4.04
	 	Limitation on Restricted Payments	 	 	41	 
	SECTION 4.05
	 	Limitation on Dividend and Other Payment Restrictions Affecting Restricted Subsidiaries	 	 	44	 
	SECTION 4.06
	 	Limitation on the Issuance and Sale of Capital Stock of Restricted Subsidiaries	 	 	45	 
	SECTION 4.07
	 	Limitation on Issuances of Guarantees by Restricted Subsidiaries	 	 	45	 
	SECTION 4.08
	 	Limitation on Transactions with Stockholders and Affiliates	 	 	46	 
	SECTION 4.09
	 	Limitation on Liens	 	 	46	 
	SECTION 4.10
	 	Limitation on Sale-Leaseback Transactions	 	 	47	 
	SECTION 4.11
	 	Limitation on Asset Sales	 	 	47	 
	SECTION 4.12
	 	Repurchase of Notes upon a Change of Control	 	 	48	 
	SECTION 4.13
	 	Existence	 	 	49	 
	SECTION 4.14
	 	Payment of Taxes and Other Claims	 	 	49	 
	SECTION 4.15
	 	Maintenance of Properties and Insurance	 	 	49	 
	SECTION 4.16
	 	Notice of Defaults	 	 	50	 
	SECTION 4.17
	 	Compliance Certificates	 	 	50	 
	SECTION 4.18
	 	Commission Reports and Reports to Holders	 	 	51	 
	SECTION 4.19
	 	Waiver of Stay, Extension or Usury Laws	 	 	51	 
	SECTION 4.20
	 	Additional Amounts	 	 	51	 
	SECTION 4.21
	 	Comisión Nacional Bancaria y de Valores	 	 	54	 
	SECTION 4.22
	 	Covenant Termination	 	 	54	 

ARTICLE FIVE

SUCCESSOR CORPORATION

	 	 	 	 	 	 	 
	SECTION 5.01
	 	When Company May Merge, Etc.	 	 	54	 
	SECTION 5.02
	 	Successor Substituted	 	 	55	 

ARTICLE SIX

DEFAULT AND REMEDIES

	 	 	 	 	 	 	 
	SECTION 6.01
	 	Events of Default	 	 	55	 
	SECTION 6.02
	 	Acceleration	 	 	57	 
	SECTION 6.03
	 	Other Remedies	 	 	57	 
	SECTION 6.04
	 	Waiver of Past Defaults	 	 	58	 
	SECTION 6.05
	 	Control by Majority	 	 	58	 
	SECTION 6.06
	 	Limitation on Suits	 	 	58	 
	SECTION 6.07
	 	Rights of Holders to Receive Payment	 	 	59	 
	SECTION 6.08
	 	Collection Suit by Trustee	 	 	59	 
	SECTION 6.09
	 	Trustee May File Proofs of Claim	 	 	59	 
	SECTION 6.10
	 	Priorities	 	 	59	 
	SECTION 6.11
	 	Undertaking for Costs	 	 	60	 
	SECTION 6.12
	 	Restoration of Rights and Remedies	 	 	60	 
	SECTION 6.13
	 	Rights and Remedies Cumulative	 	 	60	 
	SECTION 6.14
	 	Delay or Omission Not Waiver	 	 	60	 

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ARTICLE SEVEN

TRUSTEE

	 	 	 	 	 	 	 
	SECTION 7.01
	 	General	 	 	60	 
	SECTION 7.02
	 	Certain Rights of Trustee	 	 	61	 
	SECTION 7.03
	 	Individual Rights of Trustee	 	 	62	 
	SECTION 7.04
	 	Trustee’s Disclaimer	 	 	62	 
	SECTION 7.05
	 	Notice of Default	 	 	62	 
	SECTION 7.06
	 	Reports by Trustee to Holders	 	 	62	 
	SECTION 7.07
	 	Compensation and Indemnity	 	 	63	 
	SECTION 7.08
	 	Replacement of Trustee	 	 	64	 
	SECTION 7.09
	 	Successor Trustee by Merger, Etc.	 	 	64	 
	SECTION 7.10
	 	Eligibility	 	 	65	 
	SECTION 7.11
	 	Money Held in Trust	 	 	65	 
	SECTION 7.12
	 	Withholding Taxes	 	 	65	 
	SECTION 7.13
	 	Appointment of Co-Trustee	 	 	65	 

ARTICLE EIGHT

DISCHARGE OF INDENTURE, DEFEASANCE

	 	 	 	 	 	 	 
	SECTION 8.01
	 	Termination of Company’s Obligations	 	 	66	 
	SECTION 8.02
	 	Defeasance and Discharge of Indenture	 	 	67	 
	SECTION 8.03
	 	Defeasance of Certain Obligations	 	 	69	 
	SECTION 8.04
	 	Application of Trust Money	 	 	70	 
	SECTION 8.05
	 	Repayment to Company	 	 	70	 
	SECTION 8.06
	 	Reinstatement	 	 	70	 

ARTICLE NINE

AMENDMENTS, SUPPLEMENTS AND WAIVERS

	 	 	 	 	 	 	 
	SECTION 9.01
	 	Without Consent of Holders	 	 	71	 
	SECTION 9.02
	 	With Consent of Holders	 	 	71	 
	SECTION 9.03
	 	Revocation and Effect of Consent	 	 	72	 
	SECTION 9.04
	 	Notation on or Exchange of Notes	 	 	73	 
	SECTION 9.05
	 	Trustee to Sign Amendments, Etc.	 	 	73	 
	SECTION 9.06
	 	Conformity with Trust Indenture Act	 	 	73	 

ARTICLE TEN

[INTENTIONALLY OMITTED]

ARTICLE ELEVEN

[INTENTIONALLY OMITTED]

ARTICLE TWELVE

[INTENTIONALLY OMITTED]

ARTICLE THIRTEEN

MISCELLANEOUS

iii

 

	 	 	 	 	 	 	 
	SECTION 13.01
	 	Trust Indenture Act of 1939	 	 	73	 
	SECTION 13.02
	 	Notices	 	 	74	 
	SECTION 13.03
	 	Certificate and Opinion as to Conditions Precedent	 	 	75	 
	SECTION 13.04
	 	Statements Required in Certificate or Opinion	 	 	75	 
	SECTION 13.05
	 	Meetings of Noteholders	 	 	75	 
	SECTION 13.06
	 	Rules by Trustee, Paying Agent or Registrar	 	 	75	 
	SECTION 13.07
	 	Payment Date Other Than a Business Day	 	 	76	 
	SECTION 13.08
	 	Governing Law; Submission to Jurisdiction; Agent for Service	 	 	76	 
	SECTION 13.09
	 	Currency Indemnity	 	 	76	 
	SECTION 13.10
	 	No Adverse Interpretation of Other Agreements	 	 	77	 
	SECTION 13.11
	 	No Recourse Against Others	 	 	77	 
	SECTION 13.12
	 	Successors	 	 	77	 
	SECTION 13.13
	 	Duplicate Originals	 	 	77	 
	SECTION 13.14
	 	Separability	 	 	77	 
	SECTION 13.15
	 	Table of Contents, Headings, Etc.	 	 	77	 
	SECTION 13.16
	 	Waiver of Immunity	 	 	77	 

iv

 

          INDENTURE, dated as of January 22, 2010, between Kansas City Southern de México, S.A. de
C.V., a variable capital company (sociedad anónima de capital variable) organized under the laws of
Mexico, as Issuer (the “Company”) and U.S. Bank National Association, as Trustee (in such
capacity, the “Trustee”), and as Paying Agent (in such capacity, the “Paying
Agent”).

RECITALS OF THE COMPANY

          The Company has duly authorized the execution and delivery of this Indenture to provide for
the issuance of the Company’s 8% Senior Notes due 2018 (the “Notes”) issuable as provided
in this Indenture of which U.S.$300,000,000 in aggregate principal amount will be initially issued
on the Closing Date. Subject to the conditions set forth in the Indenture and without the consent
of the Holders, the Company may issue Add On Notes as provided for herein. Pursuant to the
Registration Rights Agreement (as defined herein), the Notes may become freely transferable upon
the consummation of an exchange offer for the Notes or upon the effectiveness of a shelf
registration statement with respect to the Notes. All things necessary to make this Indenture a
valid agreement of the Company, in accordance with its terms, have been done, and the Company has
done all things necessary to make the Notes, when executed by the Company and authenticated and
delivered by the Trustee hereunder and duly issued by the Company, the valid and legally binding
obligations of the Company as hereinafter provided.

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

AND THIS INDENTURE FURTHER WITNESSETH

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

ARTICLE ONE

DEFINITIONS AND INCORPORATION BY REFERENCE

          SECTION 1.01 Definitions.

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

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

 

 

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

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

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

          “Adjusted Consolidated Net Income” means, for any period, the aggregate net income (or
loss) of the Company and its Restricted Subsidiaries for such period determined in conformity with
GAAP; provided that the following items shall be excluded in computing Adjusted Consolidated Net
Income (without duplication): (i) the net income (or loss) of any Person (other than net income
attributable to a Restricted Subsidiary) in which any Person (other than the Company or any of its
Restricted Subsidiaries) has a joint interest and the net income of any Unrestricted Subsidiary,
except to the extent of the amount of dividends or other distributions actually paid to the Company
or any of its Restricted Subsidiaries by such other Person or such Unrestricted Subsidiary during
such period; (ii) solely for the purposes of calculating the amount of Restricted Payments that may
be made pursuant to clause (C) of the first paragraph of Section 4.04 (and in such case, except to
the extent includible pursuant to clause (i) above), the net income (or loss) of any Person accrued
prior to the date it becomes a Restricted Subsidiary or is merged into or consolidated with the
Company or any of its Restricted Subsidiaries or all or substantially all of the property and
assets of such Person are acquired by the Company or any of its Restricted Subsidiaries; (iii) the
net income of any Restricted Subsidiary to the extent that the declaration or payment of dividends
or similar distributions by such Restricted Subsidiary of such net income is not at the time
permitted by the operation of the terms of its charter or any agreement, instrument, judgment,
decree, order, statute, rule or governmental regulation applicable to such Restricted Subsidiary;
(iv) any gains or losses (on an after-tax basis) attributable to Asset Sales; and (v) all
extraordinary gains and extraordinary losses.

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

2

 

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

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

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

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

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

          “Asset Sale” means any sale, transfer or other disposition (including by way of
merger, consolidation or sale-leaseback transaction) in one transaction or a series of related
transactions by the Company or any of its Restricted Subsidiaries to any Person other than the
Company or any of its Restricted Subsidiaries of (i) all or any of the Capital Stock of any
Restricted Subsidiary, (ii) all or substantially all of the property and assets of an operating
unit or business of the Company or any of its Restricted Subsidiaries or (iii) any other property
and assets of the Company or any of its Restricted Subsidiaries (other than the Capital Stock,
property or assets of an Unrestricted Subsidiary) outside the ordinary course of business of the
Company or such Restricted Subsidiary, and, in each case, that is not governed by the provisions of
the Indenture applicable to mergers, consolidations and sales of all or substantially all of the
assets of the Company; provided that “Asset Sale” shall not include (a) sales or other dispositions
of inventory, receivables and other current assets, (b) sales or other dispositions of assets for
consideration at least equal to the Fair Market Value of the assets sold or disposed of, provided
that the consideration received would satisfy clause (ii)(A)(2) of the first paragraph of Section
4.11, (c) swaps of locomotives or rolling stock with any Affiliate in cases where the Fair Market
Value of the locomotives or rolling stock received is at least equal to the Fair Market Value of
the locomotives or rolling stock transferred, (d) any sale, transfer or other disposition of

3

 

property to a Person who leases such property back to the Company or any of its Restricted
Subsidiaries within 180 days following the date of the acquisition of such property by the Company
or any of its Restricted Subsidiaries, or (e) sales or other dispositions of property or assets, in
a single transaction or in a related series of transactions, having a fair market value of less
than U.S.$5.0 million.

          “Attributable Debt” in respect of a Sale/Leaseback Transaction means, as at the time
of determination, the present value (discounted at the interest rate borne by the Notes, compounded
annually) of the total obligations of the lessee for rental payments during the remaining term of
the lease included in such Sale/Leaseback Transaction (including any period for which such lease
has been extended).

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

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

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

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

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

          “Capitalized Lease Obligation” means an obligation that is required to be classified
and accounted for as a capitalized lease for financial reporting purposes in accordance with GAAP,
and the amount of Indebtedness represented by such obligation shall be the capitalized amount of
such obligation determined in accordance with GAAP.

          “Change of Control” means such time as (i) KCS ceases to be the ultimate “beneficial
owner” (defined in Rule 13d-3 under the Exchange Act) of Voting Stock representing more than 50.0%
of the total voting power of the total Voting Stock of the Company; or (ii) individuals who on the
Closing Date constitute the Board of Directors of the Company (together with any new directors
whose election by the Board of Directors or by the Company’s stockholders was approved by a vote of
at least two-thirds of the members of such Board of Directors then in office who either were
members of such Board of Directors on the Closing Date or whose election or nomination for election
was previously so approved or who were

4

 

appointed by KCS) cease for any reason to constitute a majority of the members of such Board
of Directors then in office. For the avoidance of doubt, for the purpose of clarifying clause (i)
above, if any Person becomes the “beneficial owner” (defined in Rule 13d-3 under the Exchange Act)
of more than 50.0% of the Voting Stock of the Company held by KCS, other than a Person for which
KCS is the beneficial owner of more than 50.0% of such Person’s Voting Stock, KCS will no longer be
deemed to be the ultimate “beneficial owner” (defined in Rule 13d-3 under the Exchange Act) of
Voting Stock representing more than 50.0% of the total voting power of the total Voting Stock of
the Company.

          “Change of Control Payment Date” has the meaning set forth in Section 4.12.

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

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

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

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

          “Company Order” means a written request or order signed in the name of the Company by
any two Officers.

          “Concession Title” means the right of the Company for a period of 30 years to be the
exclusive provider (subject to certain trackage rights) of freight transportation services over the
Northeast Rail Lines and for an additional 20 years to be a non-exclusive provider of such services
granted by the Mexican government pursuant to the Concession Title, subject in all cases to the
terms and conditions of the Concession Title, as in effect on June 23, 1997.

          “Consolidated EBITDA” means, for any period, the sum of the amounts for such period of
(i) Adjusted Consolidated Net Income, (ii) consolidated interest expense, to the extent such amount
was deducted in calculating Adjusted Consolidated Net Income, (iii) income and asset taxes, to the
extent such amounts were deducted in calculating Adjusted Consolidated Net Income (other than
income taxes (either positive or negative) attributable to extraordinary and non-recurring gains or
losses or Asset Sales), (iv) depreciation expense, to the extent such amount was deducted in
calculating Adjusted Consolidated Net Income, (v) amortization expense, to the extent such amounts
were deducted in calculating Adjusted Consolidated Net

5

 

Income, (vi) non-cash expenses related to statutory employee profit-sharing, to the extent
such amount was deducted in calculating Adjusted Consolidated Net Income, and (vii) all other
non-cash items reducing Adjusted Consolidated Net Income (other than items that will require cash
payments and for which an accrual or reserve is, or is required by GAAP to be, made), all as
determined on a consolidated basis for the Company and its Restricted Subsidiaries in conformity
with GAAP; provided that, if any Restricted Subsidiary is not a Wholly Owned Restricted Subsidiary,
Consolidated EBITDA shall be reduced (to the extent not otherwise reduced in accordance with GAAP)
by an amount equal to (A) the amount of the Adjusted Consolidated Net Income attributable to such
Restricted Subsidiary multiplied by (B) the quotient of (1) the number of shares of outstanding
Common Stock of such Restricted Subsidiary not owned on the last day of such period by the Company
or any of its Restricted Subsidiaries divided by (2) the total number of shares of outstanding
Common Stock of such Restricted Subsidiary on the last day of such period.

          “Consolidated Interest Expense” means, for any period, the aggregate amount of
interest in respect of Indebtedness (including amortization of original issue discount on any
Indebtedness and the interest portion of any deferred payment obligation, calculated in accordance
with GAAP; all commissions, discounts and other fees and charges owed with respect to letters of
credit and bankers’ acceptance financing; the net costs (net of benefits) associated with Interest
Rate Agreements; and interest paid (by any Person) with respect to Indebtedness that is Guaranteed
or secured by the Company or any of its Restricted Subsidiaries) and all but the principal
component of rentals in respect of Capitalized Lease Obligations paid, accrued or scheduled to be
paid or to be accrued by the Company and its Restricted Subsidiaries during such period; excluding,
however, (i) (a) any amount of such interest of any Restricted Subsidiary if the net income of such
Restricted Subsidiary is excluded in the calculation of Adjusted Consolidated Net Income pursuant
to clause (iii) of the definition thereof (but only in the same proportion as the net income of
such Restricted Subsidiary is excluded from the calculation of Adjusted Consolidated Net Income
pursuant to clause (iii) of the definition thereof) and (b) any amount of such interest of any
Restricted Subsidiary that is not a Wholly Owned Restricted Subsidiary, if the Adjusted
Consolidated Net Income of such Restricted Subsidiary is excluded in the calculation of
Consolidated EBITDA pursuant to the definition thereof (but only in the same proportion as the
Adjusted Consolidated Net Income of such Restricted Subsidiary is excluded from the calculation of
Consolidated EBITDA pursuant to the definition) and (ii) any premiums, fees and expenses (and any
amortization or write-off thereof) payable in connection with the offer of the Existing Securities
and the Notes, the Exchange Offer or the Shelf Registration Statement with respect to the Existing
Securities and the Notes, all as determined on a consolidated basis (without taking into account
Unrestricted Subsidiaries) in conformity with GAAP.

          “Corporate Trust Office” means the office of the Trustee at which the corporate trust
business of the Trustee shall, at any particular time, be principally administered, which office
is, at the date of this Indenture, located at Goodwin Square, 225 Asylum Street, Hartford
Connecticut 06103 - 1919.

          “Credit Facilities” means one or more debt facilities, commercial paper facilities or
indentures, in each case with banks or other institutional lenders or a trustee, providing for
revolving credit loans, term loans, receivables financing (including through the sale of

6

 

receivables to such lenders or to special purpose entities formed to borrow from such lenders
against such receivables), letters of credit or issuance of notes, in each case, as amended,
restated, modified, renewed, refunded, replaced or refinanced in whole or in part from time to
time.

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

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

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

          “Designated Non-cash Consideration” means the Fair Market Value of non-cash
consideration received by the Company or a Restricted Subsidiary in connection with an Asset Sale
that is so designated as Designated Non-cash Consideration pursuant to a certificate signed by two
officers of the Company or such Restricted Subsidiary, as applicable (one of whom must be the
principal executive officer, the principal financial officer, treasurer or the principal accounting
officer of the Company or such Restricted Subsidiary, as applicable), setting forth the basis of
such valuation. The Fair Market Value of each item of Designated Non-cash Consideration shall be
determined at the time received and without giving effect to subsequent changes in value.

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

          “Equity Offering” means any public or private offer and sale of Capital Stock (other
than Disqualified Stock).

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

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

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

7

 

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

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

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

          “Existing Indentures” means (i) the indenture dated as of April 19, 2005 between the
Company, as issuer, and the Bank of Nova Scotia, as Trustee and Paying Agent, (ii) the Indenture,
dated as of November 21, 2006, between the Company, as issuer, and U.S. Bank National Association,
as Trustee and Paying Agent, (iii) the indenture, dated as of May 16, 2007, among the Company, as
Issuer, and U.S. Bank National Association, as Trustee and Paying Agent, and (iv) the indenture,
dated as of March 30, 2009, among the Company, as Issuer, and U.S. Bank National Association, as
Trustee and Paying Agent.

          “Existing Securities” means the outstanding 9.375% Senior Notes due 2012 of the
Company, the outstanding 7.625% Senior Notes due 2013 of the Company, the outstanding 7.375% Senior
Notes due 2014 of the Company and the outstanding 12.50% Senior Notes due 2016 of the Company.

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

          “Four Quarter Period” means, with respect to any specified Transaction Date, the then
most recent four fiscal quarters immediately prior to the Transaction Date for which reports have
been filed with the Commission or provided to the Trustee pursuant to Section 4.18.

          “GAAP” means generally accepted accounting principles in the United States of America
as in effect as of the Closing Date, including those set forth in:

     (1) the opinions and pronouncements of the Accounting Principles Board of the American
Institute of Certified Public Accountants;

     (2) the opinions and pronouncements of the Public Company Accounting Oversight Board;

     (3) statements and pronouncements of the Financial Accounting Standards Board;

8

 

     (4) such other statements by such other entities as approved by a significant segment
of the accounting profession; and

     (5) the rules and regulations of the Commission governing the inclusion of financial
statements (including pro forma financial statements) in periodic reports required to be
filed pursuant to Section 13 of the Exchange Act, including opinions and pronouncements in
staff accounting bulletins and similar written statements from the accounting staff of the
Commission.

All calculations and determinations based on GAAP contained in the Indenture shall be computed in
conformity with GAAP.

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

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

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

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

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

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

          “Indebtedness” means, with respect to any Person at any date of determination (without
duplication), (i) all indebtedness of such Person for borrowed money, (ii) all obligations

9

 

of such Person evidenced by bonds, debentures, notes or other similar instruments, (iii) all
obligations of such Person in respect of letters of credit or other similar instruments (including
reimbursement obligations with respect thereto, but excluding obligations with respect to letters
of credit (including trade letters of credit) securing obligations (other than obligations
described in (i) or (ii) above or (v), (vi) or (vii) below) entered into in the ordinary course of
business of such Person to the extent such letters of credit are not drawn upon or, if drawn upon,
to the extent such drawing is reimbursed no later than the third Business Day following receipt by
such Person of a demand for reimbursement), (iv) all obligations of such Person to pay the deferred
and unpaid purchase price of property or services, which purchase price is due more than twelve
months after the date of placing such property in service or taking delivery and title thereto or
the completion of such services, except Trade Payables, (v) all obligations of such Person as
lessee under Capitalized Lease Obligations (but not operating leases), (vi) all Indebtedness of
other Persons secured by a Lien on any asset of such Person, whether or not such Indebtedness is
assumed by such Person; provided that the amount of such Indebtedness shall be the lesser of (A)
the Fair Market Value of such asset at such date of determination and (B) the amount of such
Indebtedness, (vii) all Indebtedness of other Persons Guaranteed by such Person to the extent such
Indebtedness is Guaranteed by such Person and (viii) to the extent not otherwise included in this
definition, obligations under Currency Agreements and Interest Rate Agreements. The amount of
Indebtedness of any Person at any date shall be the outstanding balance at such date of all
unconditional obligations as described above and, with respect to contingent obligations, the
maximum liability upon the occurrence of the contingency giving rise to the obligation, provided
(A) that the amount outstanding at any time of any Indebtedness issued with original issue discount
is the face amount of such Indebtedness less the unamortized portion of the original issue discount
of such Indebtedness at the time of its issuance as determined in conformity with GAAP, (B) that
money borrowed and set aside at the time of the Incurrence of any Indebtedness in order to prefund
the payment of interest on such Indebtedness shall be deemed not to be “Indebtedness” and (C) that
Indebtedness shall not include any liability for federal, state, local or other taxes of any
jurisdiction.

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

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

          “Interest Coverage Ratio” means, on any Transaction Date, the ratio of (i) the
aggregate amount of Consolidated EBITDA for the Four Quarter Period to (ii) the aggregate
Consolidated Interest Expense during such Four Quarter Period. In making the foregoing
calculation, (A) pro forma effect shall be given to any Indebtedness Incurred or repaid during the
Reference Period (other than Indebtedness Incurred or repaid under a revolving credit or similar
arrangement to the extent of the commitment thereunder (or under any predecessor revolving credit
or similar arrangement) in effect on the last day of such Four Quarter Period unless any portion of
such Indebtedness is projected, in the reasonable judgment of the senior management of the Company,
to remain outstanding for a period in excess of 12 months from the date of the Incurrence thereof),
in each case as if such Indebtedness had been Incurred or repaid on the first

10

 

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

          “Interest Payment Date” means each semiannual interest payment date on February 1 and
August 1 of each year, commencing August 1, 2010.

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

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

11

 

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

          “Investment Grade Rating” means a rating equal to or higher than Baa3 (or the
equivalent) by Moody’s or BBB- (or the equivalent) by S&P, as more particularly set forth in the
definition of “Rating Agency.”

          “KCS” means Kansas City Southern, a Delaware corporation, and its successors and
assigns.

          “KCSM” means Kansas City Southern de México, S.A. de C.V., a sociedad anónima de
capital variable organized under the laws of Mexico, and its successors and assigns.

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

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

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

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

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

12

 

determined in conformity with GAAP and (b) with respect to any issuance or sale of Capital
Stock, including, without limitation, a Public Equity Offering, the proceeds of such issuance or
sale in the form of cash or cash equivalents, including payments in respect of deferred payment
obligations (to the extent corresponding to the principal, but not interest, component
thereof) when received in the form of cash or cash equivalents (except to the extent such
obligations are financed or sold with recourse to the Company or any of its Restricted
Subsidiaries) and proceeds from the conversion of other property received when converted to cash or
cash equivalents, net of attorneys’ fees, accountants’ fees, underwriters’ or placement agents’
fees, discounts or commissions and brokerage, consultant and other fees Incurred in connection with
such issuance or sale and net of taxes paid or payable as a result thereof.

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

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

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

          “Notes” has the meaning specified in the Recitals. For all purposes of this
Indenture, the term “Notes” shall include any Exchange Notes to be issued and exchanged for any
Notes pursuant to the Registration Rights Agreement and this Indenture and, for purposes of this
Indenture, all Notes and related Exchange Notes shall vote together as one series of Notes under
this Indenture.

          “Offer to Purchase” means an offer to purchase Notes by the Company from the Holders
commenced by mailing a notice to the Trustee and each Holder that, unless otherwise required by
applicable law, shall state: (i) the covenant pursuant to which the offer is being made and that
all Notes validly tendered will be accepted for payment on a pro rata basis; (ii) the purchase
price and the date of purchase (which shall be a Business Day no earlier than 30 days nor later
than 60 days from the date such notice is mailed) (the “Payment Date”); (iii) that any Note
not tendered will continue to accrue interest pursuant to its terms; (iv) that, unless the Company
defaults in the payment of the purchase price, any Note accepted for payment pursuant to the Offer
to Purchase shall cease to accrue interest on and after the Payment Date; (v) that Holders electing
to have a Note purchased pursuant to the Offer to Purchase will be required to surrender the Note,
together with the form entitled “Option of the Holder to Elect Purchase” on the reverse side
thereof completed, to the Paying Agent at the address specified in the notice prior to the close of
business on the Business Day immediately preceding the Payment Date; (vi) that Holders will be
entitled to withdraw their election if the Paying Agent receives, not later than the close of
business on the third Business Day immediately preceding the Payment Date, a telegram, facsimile
transmission or letter setting forth the name of such Holder, the principal amount at maturity of
Notes delivered for purchase and a statement that such Holder is withdrawing his election to have
such Notes purchased; and (vii) that Holders whose Notes are being purchased only in part will be
issued Notes equal in principal amount at maturity to the unpurchased portion thereof surrendered;
provided that each Note purchased and each Note issued shall be in a minimum principal amount of
U.S.$2,000 or integral multiples of U.S.$1,000 in excess thereof. On the Payment Date, the Company
shall (i) accept for payment on a pro rata

13

 

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

          “Officer” means, with respect to the Company, (i) the President and Executive
Representative, the Chief Operating Officer, or any Vice President, (ii) the Chief Financial
Officer, the Treasurer or any Assistant Treasurer, or the Secretary, Pro-Secretary or any Assistant
or Alternate Secretary or any Director or Alternate Director, and (iii) any Person certified by the
General Counsel of the Company as being an attorney-in-fact elected by the shareholders of the
Company.

          “Officers’ Certificate” means a certificate signed by any two Officers of the Company.

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

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

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

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

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

          “Permitted Investment” means (i) an Investment in the Company or one of its Restricted
Subsidiaries or a Person which will, upon the making of such Investment, become a Restricted
Subsidiary or be merged or consolidated with or into or transfer or convey all or substantially all
of its assets to the Company or a Restricted Subsidiary; provided that such Person’s primary
business is related, ancillary or complementary to the businesses of the Company and its Restricted
Subsidiaries on the date of such Investment; (ii) Temporary Cash Investments; (iii) payroll, travel
and similar advances to cover matters that are expected at the time of such advances ultimately to
be treated as expenses in accordance with GAAP; (iv) stock, obligations or securities received in
satisfaction of judgments; and (v) Investments in any Person

14

 

having an aggregate Fair Market Value (measured on the date such Investment was made and
without giving effect to subsequent changes in value), taken together with all other Investments
made pursuant to this clause (v) that are at the time outstanding, of up to U.S.$75.0 million.

          “Permitted Liens” means (i) Liens for taxes, assessments, governmental charges or
claims that are being contested in good faith by appropriate legal proceedings promptly instituted
and diligently conducted and for which a reserve or other appropriate provision, if any, as shall
be required in conformity with GAAP shall have been made; (ii) statutory and common law Liens of
landlords and carriers, warehousemen, mechanics, suppliers, materialmen, repairmen or other similar
Liens arising in the ordinary course of business and with respect to amounts not yet delinquent or
being contested in good faith by appropriate legal proceedings promptly instituted and diligently
conducted and for which a reserve or other appropriate provision, if any, as shall be required in
conformity with GAAP shall have been made; (iii) Liens Incurred or deposits made in the ordinary
course of business in connection with workers’ compensation, unemployment insurance and other types
of social security; (iv) Liens Incurred or deposits made to secure the performance of tenders,
bids, leases, statutory or regulatory obligations, bankers’ acceptances, surety and appeal bonds,
government contracts, performance and return-of-money bonds and other obligations of a similar
nature Incurred in the ordinary course of business (exclusive of obligations for the payment of
borrowed money); (v) easements, rights-of-way, municipal and zoning ordinances and similar charges,
encumbrances, title defects or other irregularities that do not materially interfere with the
ordinary course of business of the Company or any of its Restricted Subsidiaries; (vi) Liens
(including extensions and renewals thereof) upon real or personal property acquired after the
Closing Date; provided that (a) such Lien is created solely for the purpose of securing
Indebtedness Incurred, in accordance with Section 4.03, to finance the cost (including the cost of
improvement, lease or construction) of the item of property or assets subject thereto and such Lien
is created prior to, at the time of or within six months after the later of the acquisition, the
completion of construction or the commencement of full operation or the lease of such property,
(b) the principal amount of the Indebtedness secured by such Lien does not exceed 100.0% of such
cost and (c) any such Lien shall not extend to or cover any property or assets other than such item
of property or assets and any improvements on such item; (vii) licenses, leases or subleases
granted to others that do not materially interfere with the ordinary course of business of the
Company and its Restricted Subsidiaries, taken as a whole; (viii) Liens encumbering property or
assets under construction arising from progress or partial payments by one of the customers of the
Company or its Restricted Subsidiaries relating to such property or assets; (ix) any interest or
title of a lessor or licensor in the property subject to any Capitalized Lease Obligation,
Sale/Leaseback Transaction, operating lease or license agreement; (x) Liens arising from filing
Uniform Commercial Code or similar financing statements regarding leases; (xi) Liens on property
of, or on shares of stock or Indebtedness of, any Person existing at the time such Person becomes,
or becomes a part of, any Restricted Subsidiary; provided that such Liens do not extend to or cover
any property or assets of the Company or any Restricted Subsidiary other than the property or
assets acquired; (xii) Liens in favor of the Company or any of its Restricted Subsidiaries;
(xiii) Liens arising from the rendering of a final judgment or order against the Company or any
Restricted Subsidiary of the Company that does not give rise to an Event of Default; (xiv) Liens
securing reimbursement obligations with respect to letters of credit that encumber documents and
other property relating to such letters of credit and the products and proceeds thereof; (xv) Liens
in favor of customs and revenue authorities arising as a matter of law to secure payment of customs
duties in connection

15

 

with the importation of goods; (xvi) Liens encumbering customary initial deposits and margin
deposits, and other Liens, in each case, securing Indebtedness under Interest Rate Agreements and
Currency Agreements and forward contracts, options, futures contracts, futures options or similar
agreements or arrangements designed solely to protect the Company or any of its Restricted
Subsidiaries from fluctuations in interest rates, currencies or the price of commodities;
(xvii) Liens arising out of conditional sale, title retention, consignment or similar arrangements
for the sale of goods entered into by the Company or any of its Restricted Subsidiaries in the
ordinary course of business; (xviii) Liens on or sales of receivables; (xix) Liens on any assets
acquired by the Company or any Restricted Subsidiary after the Closing Date, which Liens were in
existence prior to the acquisition of such assets (to the extent that such Liens were not created
in contemplation of or in connection with such acquisition), provided that such Liens are limited
to the assets so acquired and the proceeds thereof; (xx) Liens existing or arising under the
Concession Title; (xxi) Liens Incurred in accordance with this Indenture in favor of the Trustee
under this Indenture; and (xxii) Liens securing Indebtedness permitted under this Indenture in an
aggregate principal amount not in excess of U.S.$25.0 million.

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

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

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

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

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

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

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

          “Rating Agency” means S&P and Moody’s or if S&P or Moody’s or both shall not make a
rating on the Notes publicly available, a nationally recognized statistical rating agency or
agencies, as the case may be, selected by the Company (as certified by the Board of Directors)
which shall be substituted for S&P or Moody’s or both, as the case may be.

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

16

 

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

          “Reference Period” means, with respect to any specified Transaction Date, the period
beginning on the first day of the Four Quarter Period and ending on such Transaction Date.

          “Registrar” has the meaning provided in Section 2.04.

          “Registration Rights Agreement” means the Registration Rights Agreement, dated as of
the Closing Date, between the Company and Banc of America Securities LLC as representative of the
placement agents.

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

          “Regular Record Date” for the interest payable on any interest Payment Date means
January 15 or July 15 (whether or not a Business Day), as the case may be, next preceding such
Interest Payment Date.

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

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

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

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

          “Restricted Period” means the 40-day restricted period as defined in Regulation S.

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

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

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

17

 

          “Sale/Leaseback Transaction” means an arrangement entered into after the Closing Date
relating to property now owned or hereafter acquired by the Company or any Restricted Subsidiary
whereby the Company or such Restricted Subsidiary transfers such property to a Person and leases it
back from such Person; provided, however, that any such arrangement that is concluded within 180
days following the date of the acquisition of such property being transferred shall not be
considered a Sale/Leaseback Transaction.

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

          “Secured Debt Cap” means, on any Transaction Date, an amount equal to the aggregate
amount of the Consolidated EBITDA of the Company for the Four Quarter Period times 0.75. In making
the foregoing calculation, (A) pro forma effect shall be given to Asset Dispositions and Asset
Acquisitions (including giving pro forma effect to the application of proceeds of any Asset
Disposition) that occur during such Reference Period as if they had occurred and such proceeds had
been applied on the first day of such Reference Period, and (B) pro forma effect shall be given to
asset dispositions and asset acquisitions (including giving pro forma effect to the application of
proceeds of any asset disposition) that have been made by any Person that has become a Restricted
Subsidiary or has been merged with or into us or any Restricted Subsidiary during such Reference
Period and that would have constituted Asset Dispositions or Asset Acquisitions had such
transactions occurred when such Person was a Restricted Subsidiary as if such asset dispositions or
asset acquisitions were Asset Dispositions or Asset Acquisitions that occurred on the first day of
such Reference Period; provided that, to the extent that clause (A) or (B) of this sentence
requires that pro forma effect be given to an Asset Acquisition or Asset Disposition, such pro
forma calculation shall be based upon the four full fiscal quarters immediately preceding the
Transaction Date of the Person, or division or line of business of the Person, that is acquired or
disposed for which financial information is available.

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

          “Significant Subsidiary” means, at any date of determination, any of the Restricted
Subsidiaries of the Company that, together with its Subsidiaries, (i) for the most recent fiscal
year of the Company, accounted for more than 10.0% of the consolidated revenues of the Company and
its Restricted Subsidiaries or (ii) as of the end of such fiscal year, was the owner of more than
10.0% of the consolidated assets of the Company and those of its Restricted Subsidiaries, all as
set forth on the most recently available consolidated financial statements of the Company for such
fiscal year.

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

          “Subsidiary” means, with respect to any Person, any corporation, association or other
business entity of which more than 50.0% of the voting power of the outstanding Voting

18

 

Stock is owned, directly or indirectly, by such Person and one or more other Subsidiaries of
such Person.

          “Temporary Cash Investment” means any of the following: (i) direct obligations of the
United States of America or any agency thereof or obligations fully and unconditionally guaranteed
by the United States of America or any agency thereof, (ii) time deposit accounts, certificates of
deposit and money market deposits denominated and payable in U.S. dollars maturing within 180 days
of the date of acquisition thereof issued by a bank or trust company which is organized under the
laws of the United States of America, any state thereof or any foreign country recognized by the
United States of America, and which bank or trust company has capital, surplus and undivided
profits aggregating in excess of U.S.$200.0 million (or the foreign currency equivalent
thereof) and has outstanding debt which is rated “A” (or such similar equivalent rating) or higher
by S&P or Moody’s or any money-market fund denominated and payable in U.S. dollars sponsored by a
registered broker dealer or mutual fund distributor, (iii) repurchase obligations with a term of
not more than 30 days for underlying securities of the types described in clause (i) above entered
into with a bank meeting the qualifications described in clause (ii) above, (iv) commercial paper
denominated and payable in U.S. dollars, maturing not more than 90 days after the date of
acquisition, issued by a corporation (other than an Affiliate of the Company) organized and in
existence under the laws of the United States of America or any state thereof with a rating at the
time as of which any investment therein is made of “P-1” (or higher) according to Moody’s or “A-1”
(or higher) according to S&P, (v) securities with maturities of six months or less from the date of
acquisition issued or fully and unconditionally guaranteed by any state, commonwealth or territory
of the United States of America, or by any political subdivision or taxing authority thereof, and
rated at least “A” by S&P or Moody’s, (vi) Certificados de la Tesorería de la Federación (Cetes) or
Bonos de Desarrollo del Gobierno Federal (Bondes) issued by the Mexican government and maturing not
more than 180 days after the acquisition thereof, (vii) Investments in money market funds
substantially all of whose assets are comprised of securities of the types described in clauses
(i) through (vi) above, (viii) demand deposit accounts with U.S. banks (or Mexican banks specified
in clause (ix) of this definition) maintained in the ordinary course of business, and
(ix) certificates of deposit, bank promissory notes and bankers’ acceptances denominated in pesos,
maturing not more than 180 days after the acquisition thereof and issued or guaranteed by any one
of the five largest banks (based on assets as of the immediately preceding December 31) organized
under the laws of Mexico and which are not under intervention or controlled by the Instituto para
la Protección del Ahorro Bancario or any successor thereto.

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

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

19

 

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

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

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

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

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

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

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

          “Voting Stock” means with respect to any Person, Capital Stock of any class or kind
ordinarily having the power to vote for the election of directors, managers or other voting members
of the governing body of such Person, excluding any class or kind of Capital Stock which has
limited or restricted voting rights (i.e., having the power to vote for the election of a

20

 

minority of the directors, managers or other voting members of the governing body of such
Person) under the By-laws of each class or under Mexican law.

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

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

          “indenture securities” means the Notes;

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

          “indenture to be qualified” means this Indenture;

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

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

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

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

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

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

     (iii) “or” is not exclusive;

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

     (v) provisions apply to successive events and transactions;

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

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

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ARTICLE TWO

THE NOTES

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

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

          Notes offered and sold in reliance on Rule 144A shall be issued in the form of one or more
permanent global Notes in registered form, substantially in the form set forth in Exhibit A (the
“U.S. Global Notes”), deposited with the Trustee, as custodian for the Depositary, duly
executed by the Company and authenticated by the Trustee as hereinafter provided. The aggregate
principal amount of the U.S. Global Notes may from time to time be increased or decreased by
adjustments made on the records of the Trustee, as custodian for the Depositary or its nominee, as
hereinafter provided.

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

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

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

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

          SECTION 2.02 Restrictive Legends. (a) Unless and until a Note is exchanged for an
Exchange Note in connection with an effective Registration Statement pursuant to the Registration
Rights Agreement (i) the U.S. Global Notes and each U.S. Physical Note shall bear the legend set
forth below on the face thereof and (ii) each Offshore Global Note and each Offshore Physical Note
shall bear the legend set forth below on the face thereof until at least the 41st day
after the Closing Date and receipt by the Company and the Trustee of a certificate substantially in
the Form of Exhibit B hereto:

THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), AND MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT IN ACCORDANCE WITH THE
FOLLOWING SENTENCE. BY ITS ACQUISITION HEREOF OR OF A BENEFICIAL INTEREST HEREIN, THE ACQUIRER

     (1) REPRESENTS THAT

     (A) IT AND ANY ACCOUNT FOR WHICH IT IS ACTING IS A “QUALIFIED INSTITUTIONAL BUYER”
(WITHIN THE MEANING OF RULE 144A UNDER THE SECURITIES ACT) AND THAT IT EXERCISES SOLE
INVESTMENT DISCRETION WITH RESPECT TO EACH SUCH ACCOUNT,

     (B) IT IS AN INSTITUTIONAL “ACCREDITED INVESTOR” (WITHIN THE MEANING OF RULE 501(a)
(1), (2), (3) OR (7) UNDER THE SECURITIES ACT) (AN “INSTITUTIONAL ACCREDITED INVESTOR”), OR

     (C) IT IS NOT A U.S. PERSON (WITHIN THE MEANING OF REGULATION S UNDER THE SECURITIES
ACT) AND

     (2) AGREES FOR THE BENEFIT OF THE COMPANY THAT IT WILL NOT OFFER, SELL, PLEDGE OR OTHERWISE
TRANSFER THIS NOTE OR ANY BENEFICIAL INTEREST HEREIN, EXCEPT IN ACCORDANCE WITH THE SECURITIES ACT
AND ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES AND ONLY

     (A) TO THE COMPANY,

     (B) PURSUANT TO A REGISTRATION STATEMENT WHICH HAS BECOME EFFECTIVE UNDER THE
SECURITIES ACT,

     (C) TO A QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE 144A UNDER THE
SECURITIES ACT,

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     (D) IN AN OFFSHORE TRANSACTION IN COMPLIANCE WITH RULE 904 OF REGULATION S UNDER THE
SECURITIES ACT, OR

     (E) PURSUANT TO AN EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE
SECURITIES ACT OR ANY OTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT.

     PRIOR TO THE REGISTRATION OF ANY TRANSFER IN ACCORDANCE WITH (2)(C) ABOVE OR (2)(D) ABOVE, A
DULY COMPLETED AND SIGNED CERTIFICATE (THE FORM OF WHICH MAY BE OBTAINED FROM THE TRUSTEE) MUST BE
DELIVERED TO THE TRUSTEE. PRIOR TO THE REGISTRATION OF ANY TRANSFER IN ACCORDANCE WITH (2)(E)
ABOVE, THE COMPANY RESERVES THE RIGHT TO REQUIRE THE DELIVERY OF SUCH LEGAL OPINIONS,
CERTIFICATIONS OR OTHER EVIDENCE AS MAY REASONABLY BE REQUIRED IN ORDER TO DETERMINE THAT THE
PROPOSED TRANSFER IS BEING MADE IN COMPLIANCE WITH THE SECURITIES ACT AND APPLICABLE STATE
SECURITIES LAWS. NO REPRESENTATION IS MADE AS TO THE AVAILABILITY OF ANY RULE 144 EXEMPTION FROM
THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.

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

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

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

24

 

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

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

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

          The Trustee or an authenticating agent shall upon receipt of a Company Order authenticate for
original issue Notes in the aggregate principal amount of up to U.S.$300,000,000 of Notes, plus any
Exchange Notes that may be issued pursuant to the Registration Rights Agreement or Add On Note
issued hereunder; provided that the Trustee shall receive an Officers’ Certificate as required by
Section 13.03 and an Opinion of Counsel of the Company in connection with each such authentication
of Notes. The Opinion of Counsel shall be to the effect that:

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

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

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

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

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

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

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          The Notes (including any Exchange Notes) shall be issuable only in registered form without
coupons and only in minimum denominations of U.S.$2,000 in principal amount and any integral
multiple of U.S.$1,000 in excess thereof.

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

          The Company shall enter into an appropriate agency agreement with any Agent not a party to
this Indenture. The agreement shall implement the provisions of this Indenture that relate to such
Agent. The Company shall give prompt written notice to the Trustee of the name and address of any
such Agent and any change in the address of such Agent. If the Company fails to maintain a
Registrar, Paying Agent and/or agent for service of notices and demands, the Trustee shall act as
such Registrar, Paying Agent and/or agent for service of notices and demands for so long as such
failure shall continue. The Company may remove any Agent upon written notice to such Agent and the
Trustee; provided that no such removal shall become effective until (i) the acceptance of an
appointment by a successor Agent to such Agent as evidenced by an appropriate agency agreement
entered into by the Company and such successor Agent and delivered to the Trustee or (ii)
notification to the Trustee that the Trustee shall serve as such Agent until the appointment of a
successor Agent in accordance with clause (i) of this proviso. The Company, any Subsidiary of the
Company, or any Affiliate of any of them may act as Paying Agent, Registrar or co-Registrar, and/or
agent for service of notices and demands; provided, however, that neither the Company, a Subsidiary
of the Company nor an Affiliate of any of them shall act as Paying Agent in connection with the
defeasance of the Notes or the discharge of this Indenture under Article Eight.

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

          SECTION 2.05 Paying Agent to Hold Money in Trust. Not later than 12:00 p.m., New York
City time, on each due date of the principal, premium, if any, and interest on any Notes, the
Company shall deposit with each Paying Agent money in immediately available funds sufficient to pay
such principal, premium, if any, and interest so becoming due. The Company shall require each
Paying Agent, if any, other than a Paying Agent that is a party to this Indenture to agree in
writing that such Paying Agent shall hold in trust for the benefit of the Holders or the Trustee
all money held by the Paying Agent for the payment of principal of, premium, if any, and interest
on the Notes (whether such money has been paid to it by the

26

 

Company or any other obligor on the Notes), and that such Paying Agent shall promptly notify
the Trustee of any default by the Company (or any other obligor on the Notes) in making any such
payment. The Company at any time may require a Paying Agent to pay all money held by it to the
Trustee and account for any funds disbursed, and the Trustee may at any time during the continuance
of any payment default, upon written request to a Paying Agent, require such Paying Agent to pay
all money held by it to the Trustee and to account for any funds disbursed. Upon doing so, the
Paying Agent shall have no further liability for the money so paid over to the Trustee. If the
Company or any Subsidiary of the Company or any Affiliate of any of them acts as Paying Agent, it
will, on or before each due date of any principal of, premium, if any, or interest on the Notes,
segregate and hold in a separate trust fund for the benefit of the Holders a sum of money
sufficient to pay such principal, premium, if any, or interest so becoming due until such sum of
money shall be paid to such Holders or otherwise disposed of as provided in this Indenture, and
will promptly notify the Trustee of its action or failure to act as required by this Section 2.05.

          SECTION 2.06 Transfer and Exchange. The Notes are issuable only in registered form.
A Holder may transfer a Note by written application to the Registrar stating the name of the
proposed transferee and otherwise complying with the terms of this Indenture. No such transfer
shall be effected until, and such transferee shall succeed to the rights of a Holder only upon,
registration of the transfer by the Registrar in the Note Register. Prior to the registration of
any transfer by a Holder as provided herein, the Company, the Trustee and any agent of the Company
shall treat the person in whose name the Note is registered as the owner thereof for all purposes
whether or not the Note shall be overdue, and neither the Company, the Trustee nor any such agent
shall be affected by notice to the contrary. Furthermore, any Holder of a Global Note shall, by
acceptance of such Global Note, agree that transfers of beneficial interests in such Global Note
may be effected only through a book-entry system maintained by the Depositary (or its agent), and
that ownership of a beneficial interest in the Note shall be required to be reflected in a book
entry. When Notes are presented to the Registrar or a co-Registrar with a request to register the
transfer or to exchange them for an equal principal amount of Notes of other authorized
denominations (including an exchange of Notes for Exchange Notes), the Registrar shall register the
transfer or make the exchange as requested if its requirements for such transactions are met;
provided that no exchanges of Notes for Exchange Notes shall occur until a Registration Statement
shall have been declared effective by the Commission and that any Notes that are exchanged for
Exchange Notes shall be cancelled by the Trustee. To permit registrations of transfers and
exchanges in accordance with the terms, conditions and restrictions hereof, the Company shall
execute and the Trustee shall authenticate Notes at the Registrar’s request. No service charge
shall be made to any Holder for any registration of transfer or exchange or redemption of the
Notes, but the Company may require payment of a sum sufficient to cover any transfer tax or similar
governmental charge payable in connection therewith (other than any such transfer taxes or other
similar governmental charge payable upon transfers, exchanges or redemptions pursuant to Section
2.11, 3.08. 4.11, 4.12 or 9.04).

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

27

 

transfer of or exchange any Note so selected for redemption in whole or in part, except the unredeemed
portion of any Note being redeemed in part.

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

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

          (b) Transfers of a Global Note shall be limited to transfers of such Global Note in whole, but
not in part, to the Depositary, its successors or their respective nominees. Interests of
beneficial owners in a Global Note may be transferred in accordance with the applicable rules and
procedures of the Depositary and the provisions of Section 2.08. In addition, U.S. Physical Notes
and Offshore Physical Notes shall be transferred to all beneficial owners in exchange for their
beneficial interests in the U.S. Global Notes or the Offshore Global Notes, respectively, if (i)
the Depositary notifies the Company that it is unwilling or unable to continue as Depositary for
the U.S. Global Notes or the Offshore Global Notes, as the case may be, and a successor depositary
is not appointed by the Company within 90 days of such notice or (ii) an Event of Default has
occurred and is continuing and the Registrar has received a request to the foregoing effect from
the Depositary.

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

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

          (e) In connection with the transfer of the entire U.S. Global Notes or Offshore Global Notes
to beneficial owners pursuant to paragraph (b) of this Section, the U.S. Global

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Notes or Offshore Global Notes, as the case may be, shall be deemed to be surrendered to the
Trustee for cancellation, and the Company shall execute, and the Trustee shall authenticate and
deliver, to each beneficial owner identified by the Depositary in exchange for its beneficial
interest in the U.S. Global Notes or Offshore Global Notes, as the case may be, an equal aggregate
principal amount of U.S. Physical Notes or Offshore Physical Notes, as the case may be, of
authorized denominations.

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

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

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

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

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

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

     (i) If the Note to be transferred consists of (x) U.S. Physical Notes, the
Registrar shall register the transfer if such transfer is being made by a proposed
transferor who has checked the box provided for on the form of Note stating, or has
otherwise advised the Company and the Registrar in writing, that the sale has been
made in compliance with the provisions of Rule 144A to a transferee who has signed
the certification provided for on the form of Note stating, or has otherwise advised
the Company and the Registrar in writing, that it is purchasing the Note for its own
account or an account with respect to which it

29

 

exercises sole investment discretion and that it and any such account is a QIB
within the meaning of Rule 144A, and is aware that the sale to it is being made in
reliance on Rule 144A and acknowledges that it has received such information
regarding the Company as it has requested pursuant to Rule 144A or has determined
not to request such information and that it is aware that the transferor is relying
upon its foregoing representations in order to claim the exemption from registration
provided by Rule 144A or (y) an interest in the U.S. Global Notes, the transfer of
such interest may be effected only through the book-entry system maintained by the
Depositary.

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

     (b) Transfers of Interests in the Offshore Global Notes or Offshore Physical
Notes. The following provisions shall apply with respect to any transfer of interests
in the Offshore Global Notes or Offshore Physical Notes:

     (i) Prior to the expiration of the Restricted Period, the Registrar shall
refuse to register such transfer unless such transfer complies with Section 2.08(a)
or Section 2.08(c), as the case may be; and

     (ii) After the expiration of the Restricted Period, the Registrar shall
register the transfer of any such Note without any requirement to comply with
Section 2.08(a) or Section 2.08(c) or for any additional certification.

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

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

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

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Agent Member, upon receipt by the Registrar of instructions given in accordance
with the Depositary’s and the Registrar’s procedures, the Registrar shall reflect on
its books and records the date and an increase in the principal amount of the
Offshore Global Notes in an amount equal to the principal amount of the U.S.
Physical Notes or the U.S. Global Notes, as the case may be, to be transferred, and
the Trustee shall cancel the Physical Note, if any, so transferred or decrease the
amount of the U.S. Global Notes.

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

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

     (ii) If the proposed transferor is an Agent Member holding a beneficial
interest in the U.S. Global Notes, upon receipt by the Registrar of (x) the
documents, if any, required by paragraph (i) and (y) instructions given in
accordance with the Depositary’s and the Registrar’s procedures, the Registrar shall
reflect on its books and records the date and a decrease in the principal amount of
the U.S. Global Notes in an amount equal to the principal amount of the beneficial
interest in the U.S. Global Notes to be transferred, and the Company shall execute,
and the Trustee shall authenticate and deliver, one or more U.S. Physical Notes of
like tenor and amount.

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

     (f) General. By its acceptance of any Note bearing the Private Placement
Legend, each Holder of such a Note acknowledges the restrictions on transfer of such Note
set forth in this Indenture and in the Private Placement Legend and agrees that it

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

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

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

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

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

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

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

          A Note does not cease to be outstanding because the Company or one of its Affiliates holds
such Note, provided, however, that, in determining whether the Holders of the requisite principal
amount of the outstanding Notes have given any request, demand,

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

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

          SECTION 2.12 Cancellation. The Company at any time may deliver to the Trustee for
cancellation any Notes previously authenticated and delivered hereunder which the Company may have
acquired in any manner whatsoever, and may deliver to the Trustee for cancellation any Notes
previously authenticated hereunder which the Company has not issued and sold. The Registrar and
the Paying Agent shall forward to the Trustee any Notes surrendered to them for transfer, exchange
or payment. The Trustee shall cancel all Notes surrendered for transfer, exchange, payment or
cancellation and shall dispose of them in accordance with its normal procedure. The Company shall
not issue new Notes to replace Notes it has paid in full or delivered to the Trustee for
cancellation.

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

          SECTION 2.14 Defaulted Interest. If the Company defaults in a payment of interest on
the Notes, it shall pay, or shall deposit with the Paying Agent money in immediately available
funds sufficient to pay, the defaulted interest, plus (to the extent lawful) interest on the
defaulted interest, to the Persons who are Holders on a subsequent special

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record date. A special record date, as used in this Section 2.14 with respect to the payment of any
defaulted interest, shall mean the 15th day next preceding the date fixed by the Company for the
payment of defaulted interest, whether or not such day is a Business Day. At least 15 days before
the subsequent special record date, the Company shall mail to each Holder and to the Trustee a
notice that states the subsequent special record date, the payment date and the amount of defaulted
interest to be paid.

          SECTION 2.15 Issuance of Additional Notes. The Company may, subject to Article Four
of this Indenture, issue additional Notes under this Indenture, including without limitation, Add
On Notes. Each of the Notes issued on the Closing Date and any additional Notes subsequently
issued shall each be treated as a single class for all purposes under this Indenture, unless
otherwise provided in this Indenture.

ARTICLE THREE

REDEMPTION

          SECTION 3.01 Optional Redemption. The Notes will be redeemable, at the Company’s
option, in whole at any time or in part from time to time, on or after February 1, 2014 and prior
to maturity, upon not less than 30 nor more than 60 days’ prior notice mailed by first class mail
to each Holder’s last address as it appears in the Note Register, at the following Redemption
Prices (expressed in percentages of principal amount), plus accrued and unpaid interest, liquidated
damages, if any, and any Additional Amounts (as defined in Section 4.20) to the Redemption Date
(subject to the right of Holders of record on the relevant Regular Record Date that is on or prior
to the Redemption Date to receive interest due on an Interest Payment Date), if redeemed during the
12-month period commencing February 1 of the years set forth below:

	 	 	 	 
	Year	 	Redemption Price	
	2014
	 	104.000	%
	2015
	 	102.000	%
	2016
	 	100.000	%

          In addition, at any time prior to February 1, 2013, the Company may redeem up to 35.0% of the
principal amount of the Notes with the Net Cash Proceeds of one or more Equity Offerings by the
Company or KCS, to the extent the Net Cash Proceeds thereof are contributed to the Company or used
to purchase Capital Stock (other than Disqualified Stock) of the Company from the Company, at a
Redemption Price equal to 108.000% of the principal amount thereof, plus accrued interest,
liquidated damages, if any, and any Additional Amounts to the Redemption Date; provided, however,
that after giving effect to any such redemption:

     (1) at least 65.0% of the original aggregate principal amount of the Notes remains
outstanding; and

     (2) any such redemption must be made within 60 days of such Equity Offering and must be
made in accordance with the provisions of this Article Three.

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          Upon completion of the Exchange Offer, the Company may also redeem any Notes which were not
exchanged in the Exchange Offer in an amount up to 2.0% of the original aggregate principal amount
of the Notes issued at a redemption price of 100.0% of their principal amount plus accrued and
unpaid interest thereon, if any, and any Additional Amounts to the Redemption Date.

          SECTION 3.02 Redemption for Changes in Withholding Taxes. The Notes will be subject
to redemption, in whole but not in part, at the option of the Company at any time at 100.0% of
their principal amount together with accrued interest, liquidated damages, if any, and any
Additional Amounts thereon, if any, to the Redemption Date, in the event the Company has become or
would become obligated to pay, on the next date on which any amount would be payable with respect
to the Notes, any Additional Amounts in excess of those attributable to a withholding tax rate of
4.9% as a result of a change in or amendment to the laws (including any regulations or general
rules promulgated thereunder) of Mexico (or any political subdivision or taxing authority thereof
or therein), or any change in or amendment to any official position regarding the application,
administration or interpretation of such laws, regulations or general rules, including a holding of
a court of competent jurisdiction, which change or amendment is announced or becomes effective on
or after January 7, 2010. The Company shall not, however, have the right to redeem Notes from a
Holder pursuant to this Section except to the extent that it is obligated to pay Additional Amounts
to such Holder that are greater than the Additional Amounts that would be payable based on a
Mexican withholding tax rate of 4.9%.

          SECTION 3.03 Notices to Trustee. If the Company elects to redeem Notes pursuant to
Section 3.01 or 3.02, it shall notify the Trustee in writing of the Redemption Date.

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

          SECTION 3.04 Selection of Notes to Be Redeemed. If less than all of the Notes are to
be redeemed at any time, the Trustee shall select the Notes to be redeemed in compliance with the
requirements, as certified to it by the Company, of the principal national securities exchange, if
any, on which the Notes are listed or, if the Notes are not listed on a national securities
exchange, by lot or such other method as the Trustee in its sole discretion shall deem to be
appropriate; provided that no Notes of U.S.$2,000 in principal amount or less shall be redeemed in
part.

          The Trustee shall make the selection from the Notes outstanding and not previously called for
redemption. The Trustee may select for redemption portions (equal to integral multiples of
U.S.$1,000) of Notes that have denominations larger than U.S.$2,000 in principal amount, provided
that the unredeemed portion of any Note shall be a minimum of U.S. $2,000 in principal amount.
Provisions of this Indenture that apply to Notes called for redemption also apply to portions of
Notes called for redemption. The Trustee shall notify the Company and the Registrar promptly in
writing of the Notes or portions of Notes to be called for redemption.

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          SECTION 3.05 Add On Notes. The Company may, from time to time, subject to
compliance with any other applicable provisions of this Indenture (including Article Four), without
the consent of the Holders, create and issue pursuant to this Indenture additional notes (“Add
On Notes”) having terms and conditions identical to those of the other outstanding Notes,
except that Add On Notes:

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

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

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

          SECTION 3.06 Notice of Redemption. With respect to any redemption of Notes pursuant
to Section 3.01, at least 30 days but not more than 60 days before a Redemption Date, and with
respect to any redemption of Notes pursuant to Section 3.02, at least six days before the
Redemption Date, the Company shall mail a notice of redemption by first class mail to each Holder
whose Notes are to be redeemed.

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

          (i) the Redemption Date;

          (ii) the Redemption Price;

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

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

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

     (vi) that, if any Note is being redeemed in part, the portion of the principal amount
(equal to integral multiples of U.S.$1,000) of such Note to be redeemed and that, on and
after the Redemption Date, upon surrender of such Note, a new Note or Notes in principal
amount equal to the unredeemed portion thereof will be reissued; and

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     (vii) that, if any Note contains a CUSIP, CINS or ISIN number as provided in Section
2.13, no representation is being made as to the correctness of the CUSIP, CINS or ISIN
number either as printed on the Notes or as contained in the notice of redemption and that
reliance may be placed only on the other identification numbers printed on the Notes.

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

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

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

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

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

          SECTION 3.10 Notes Redeemed in Part. Upon surrender of any Note that is redeemed in
part, the Company shall execute and the Trustee shall authenticate and deliver to

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the Holder a new Note equal in principal amount to the unredeemed portion of such surrendered
Note.

ARTICLE FOUR

COVENANTS

          SECTION 4.01 Payment of Notes. The Company shall pay the principal of, premium, if
any, and interest on the Notes on the dates and in the manner provided in the Notes and this
Indenture. An installment of principal, premium, if any, or interest shall be considered paid on
the date due if the Trustee or Paying Agent (other than the Company, a Subsidiary of the Company,
or any Affiliate of any of them) holds at 12:00 p.m. New York City time on that date money
designated for and sufficient to pay the installment. If the Company or any Subsidiary of the
Company or any Affiliate of any of them acts as Paying Agent, an installment of principal, premium,
if any, or interest shall be considered paid on the due date if the entity acting as Paying Agent
complies with the last sentence of Section 2.05. As provided in Section 6.09, upon any bankruptcy
or reorganization procedure relative to the Company, the Trustee shall serve as the Paying Agent in
New York for the Notes.

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

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

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

          The Company hereby initially designates the office of the Trustee at c/o U.S. Bank Trust,
N.A., 100 Wall Street, New York, New York, 10005 as such office of the Company in accordance with
Section 2.04.

          SECTION 4.03 Limitation on Indebtedness. The Company will not, and will not permit
any of its Restricted Subsidiaries to, Incur any Indebtedness (other than the Notes and
Indebtedness existing on the Closing Date); provided that the Company may Incur

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Indebtedness if, after giving effect to the Incurrence of such Indebtedness and the receipt
and application of the proceeds therefrom, the Interest Coverage Ratio would be greater than 2.0:1.

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

     (i) Indebtedness owed:

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

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

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

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

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

     (C) such new Indebtedness, determined as of the date of Incurrence of such new
Indebtedness, does not mature prior to the Stated Maturity of the Indebtedness to be
refinanced or refunded, and the Average Life of such new Indebtedness is at least
equal to the remaining Average Life of the Indebtedness to be refinanced or
refunded; and provided further that in no event may Indebtedness of the Company be
refinanced by means of any Indebtedness of any Restricted Subsidiary pursuant to
this clause (ii);

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(iii) Indebtedness:

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

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

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

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

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

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

     (vii) (x) Indebtedness of the Company Incurred for the purpose of financing all or any
part of the purchase price or cost of construction or improvement of property or assets used
in the Company’s business (including Indebtedness represented by Capitalized Lease
Obligations, mortgage financings or purchase money obligations) in an aggregate amount not
to exceed at any one time outstanding the greater of U.S.$150.0 million or 15.0% of the
Adjusted Consolidated Net Tangible Assets of the Company; and (y) Attributable Debt of the
Company or a Restricted Subsidiary of the Company in respect of Sale/Leaseback Transactions
in an aggregate principal amount not to exceed U.S.$150.0 million; and

     (viii) Indebtedness of the Company not to exceed U.S.$300.0 million at any one time
outstanding, U.S.$150.0 million of which must be Incurred under Credit Facilities or
accounts receivable securitizations.

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     (b) Notwithstanding any other provision of this Section 4.03, the maximum amount of
Indebtedness that the Company or a Restricted Subsidiary may Incur pursuant to this Section 4.03
shall not be deemed to be exceeded, with respect to any outstanding Indebtedness due solely to the
result of fluctuations in the exchange rates of currencies or interest rates.

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

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

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

          For purposes of determining compliance with this Section 4.03, in the event that an item of
Indebtedness meets the criteria of more than one of the types of Indebtedness described in the
above clauses or is entitled to be Incurred pursuant to the first paragraph of this Section 4.03,
the Company, in its sole discretion, shall be permitted to classify such item of Indebtedness at
the time of its incurrence (or later reclassify) in any manner that complies with this Section
4.03.

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

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

     (ii) purchase, redeem, retire or otherwise acquire for value any shares of Capital
Stock of (A) the Company or an Unrestricted Subsidiary (including options, warrants or other
rights to acquire such shares of Capital Stock) held by any Person or (B) a Restricted
Subsidiary (including options, warrants or other rights to acquire such shares of Capital
Stock) held by any Affiliate of the Company (other than a Wholly Owned Restricted
Subsidiary) or any holder (or any Affiliate of such holder) of 5.0% or more of the Capital
Stock of the Company;

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

41

 

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

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

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

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

     (C) the aggregate amount of all Restricted Payments (the amount, if other than in cash,
to be determined in good faith by the Board of Directors of the Company, whose determination
shall be conclusive and evidenced by a Board Resolution) made after January 1, 2005 shall
exceed the sum of

     (1) 50.0% of the aggregate amount of the Adjusted Consolidated Net Income (or,
if the Adjusted Consolidated Net Income is a loss, minus 100.0% of the amount of
such loss) (determined by excluding income resulting from transfers of assets by the
Company or a Restricted Subsidiary to an Unrestricted Subsidiary) accrued on a
cumulative basis during the period (taken as one accounting period) beginning on
January 1, 2005 and ending on the last day of the last fiscal quarter preceding the
Transaction Date for which reports have been filed or provided to the Trustee
pursuant to Section 4.18 plus

     (2) the aggregate Net Cash Proceeds received by the Company on or after January
1, 2005 from a capital contribution or the issuance and sale permitted by this
Indenture of Capital Stock of the Company (other than Disqualified Stock) to a
Person who is not a Subsidiary of the Company, including an issuance or sale
permitted by this Indenture of Indebtedness of the Company for cash subsequent to
the Closing Date upon the conversion of such Indebtedness into Capital Stock of the
Company (other than Disqualified Stock), or from the issuance to a Person who is not
a Subsidiary of the Company of any options, warrants or other rights to acquire
Capital Stock of the Company (in each case, exclusive of any Disqualified Stock or
any options, warrants or other rights that are redeemable at the option of the
holder, or are required to be redeemed, prior to the Stated Maturity of the
Notes) plus

     (3) an amount equal to the net reduction in Investments (other than reductions
in Permitted Investments) in any Person on or after January 1, 2005 resulting from
payments of interest on Indebtedness, dividends, repayments of loans or advances, or
other transfers of assets, in each case to the Company or any of its Restricted
Subsidiaries or from the Net Cash Proceeds from the sale of any such Investment
(except, in each case, to the extent any such payment or proceeds are included in
the calculation of Adjusted Consolidated Net Income), or from redesignations of
Unrestricted Subsidiaries as Restricted Subsidiaries (valued in each case as
provided in the definition of “Investment”), not to exceed, in each

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case, the amount of Investments previously made by the Company or any
Restricted Subsidiary in such Person or Unrestricted Subsidiary.

The foregoing provision shall not be violated by reason of:

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

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

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

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

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

     (vi) the declaration or payment of dividends on the Common Stock of the Company
following a Public Equity Offering of such Common Stock, of up to 6.0% per annum of the Net
Cash Proceeds received by the Company in such Public Equity Offering;

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

     (viii) the reorganization of our Capital Stock into equity quotes or equity interests
in the event of our conversion (transformación) into a sociedad de responsibilidad limitada
or other form of internal corporate transformation or reorganization; and

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     (ix) the making of other Restricted Payments in an aggregate amount, taken together
with all other Restricted Payments made pursuant to this clause (ix), of up to U.S.$100.0
million.

provided that, except in the cases of clauses (i) and (iii), no Default or Event of Default shall
have occurred and be continuing or occur as a consequence of the actions or payments set forth
herein.

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

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

          The foregoing provisions shall not restrict any encumbrances or restrictions: (i) existing on
the Closing Date, (ii) existing under or by reason of applicable law, (iii) existing with respect
to any Person or the property or assets of such Person acquired by the Company or any Restricted
Subsidiary, existing at the time of such acquisition and not Incurred in contemplation thereof,
which encumbrances or restrictions are not applicable to any Person or the property or assets of
any Person other than such Person or the property or assets of such Person so acquired, (iv) in the
case of transfers of any property or assets of a Restricted Subsidiary to the Company or any other
Restricted Subsidiary (A) that restrict in a customary manner the subletting, assignment or
transfer of any property or asset that is a lease, license, conveyance or contract or similar
property or asset, (B) existing by virtue of any transfer of, agreement to transfer, option or
right with respect to, or Lien on, any property or assets of the Company or any Restricted
Subsidiary not otherwise prohibited by this Indenture or (C) arising or agreed to in the ordinary
course of business, not relating to any Indebtedness, and that do not, individually or in the
aggregate, detract from the value of property or assets of the Company or any Restricted Subsidiary
in any manner material to the Company or any Restricted Subsidiary, (v) with respect to a
Restricted Subsidiary and imposed pursuant to an agreement that has been entered into for the sale
or disposition of all or substantially all of the Capital Stock of or

44

 

property and assets of, such Restricted Subsidiary, or (vi) for the benefit of any holder of a
Lien permitted under Section 4.09.

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

          SECTION 4.06 Limitation on the Issuance and Sale of Capital Stock of Restricted
Subsidiaries. The Company will not permit any Restricted Subsidiary, directly or indirectly,
to issue or sell, any shares of Capital Stock of a Restricted Subsidiary (including options,
warrants or other rights to purchase shares of such Capital Stock) except (i) to the Company or a
Wholly Owned Restricted Subsidiary; (ii) issuances of director’s qualifying shares or sales to
foreign nationals of shares of Capital Stock of foreign Restricted Subsidiaries, to the extent
required by applicable law; (iii) if, immediately after giving effect to such issuance or sale,
such Restricted Subsidiary would no longer constitute a Restricted Subsidiary and any Investment in
such Person remaining after giving effect to such issuance or sale would have been permitted to be
made under Section 4.04 if made on the date of such issuance or sale; or (iv) issuances of Common
Stock that has no preference with respect to dividends or upon liquidation, the Net Cash Proceeds
of which are promptly applied as provided in clause (ii) of Section 4.11.

          SECTION 4.07 Limitation on Issuances of Guarantees by Restricted Subsidiaries. The
Company will not permit any Restricted Subsidiary, directly or indirectly, to Guarantee any
Indebtedness of the Company which is pari passu with or subordinate in right of payment to the
Notes (“Guaranteed Indebtedness”), unless (i) such Restricted Subsidiary simultaneously
executes and delivers a supplemental indenture to this Indenture providing for Guarantees (a
“Subsidiary Guarantee”) of payment of the Notes by such Restricted Subsidiary and (ii) such
Restricted Subsidiary waives and will not in any manner whatsoever claim or take the benefit or
advantage of, any rights of reimbursement, indemnity or subrogation or any other rights against the
Company or any other Restricted Subsidiary as a result of any payment by such Restricted Subsidiary
under its Subsidiary Guarantee until the Notes have been paid in full, in U.S. Dollars; provided
that this paragraph shall not be applicable to any Guarantee of any Restricted Subsidiary (x) that
existed at the time such Person became a Restricted Subsidiary and was not Incurred in connection
with, or in contemplation of, such Person becoming a Restricted Subsidiary or (y) of Indebtedness
in an aggregate principal amount not to exceed the greater of (a) U.S.$150 million and (b) an
amount equal to the Secured Debt Cap on the date on which such Guarantee is to be Incurred. If the
Guaranteed Indebtedness is (A) pari passu with the Notes, then the Guarantee of such Guaranteed
Indebtedness shall be pari passu with, or subordinated to, the Subsidiary Guarantee or
(B) subordinated to the Notes, then the Guarantee of such Guaranteed Indebtedness shall be
subordinated to the Subsidiary Guarantees at least to the extent that the Guaranteed Indebtedness
is subordinated to the Notes.

          Notwithstanding the foregoing, any Subsidiary Guarantee by a Restricted Subsidiary shall
provide by its terms that it shall be automatically and unconditionally released and discharged
upon: (i) any sale, exchange or transfer, to any Person not an Affiliate of the

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Company, of all of the Company’s and each Restricted Subsidiary’s Capital Stock in, or all or
substantially all the assets of, such Restricted Subsidiary (which sale, exchange or transfer is
not prohibited by this Indenture) or (ii) the release or discharge of the Guarantee which resulted
in the creation of such Subsidiary Guarantee, except a discharge or release by or as a result of
payment under such Guarantee.

          SECTION 4.08 Limitation on Transactions with Stockholders and Affiliates. The Company
will not, and will not permit any Restricted Subsidiary to, directly or indirectly, enter into,
renew or extend any transaction (including, without limitation, the purchase, sale, lease or
exchange of property or assets, or the rendering of any service) with any holder (or any Affiliate
of such holder) of 5.0% or more of any class of Capital Stock of the Company, with any Affiliate of
the Company or any Restricted Subsidiary, except upon fair and reasonable terms no less favorable
to the Company or such Restricted Subsidiary than could be obtained, at the time of such
transaction or, if such transaction is pursuant to a written agreement, at the time of the
execution of the agreement providing therefor, in a comparable arm’s-length transaction with a
Person that is not such a holder or an Affiliate.

          The foregoing limitation does not limit, and shall not apply to (i) transactions (A) approved
by a majority of the disinterested members of the Board of Directors, (B) for which the Company or
a Restricted Subsidiary delivers to the Trustee a written opinion of a United States nationally
recognized investment banking firm (or their Mexican affiliate) stating that the transaction is
fair to the Company or such Restricted Subsidiary from a financial point of view or (C) involving
consideration of U.S.$5.0 million or less; (ii) the payment of reasonable and customary regular
fees to the directors and officers of the Company; (iii) any payments or other transactions
pursuant to any tax-sharing agreement between the Company and any Subsidiary of the Company with
which the Company files a consolidated tax return or with which the Company is part of a
consolidated group for tax purposes; (iv) contributions in cash to the common equity capital of the
Company by KCS or any of its Subsidiaries; (v) any Restricted Payments not prohibited by Section
4.04; (vi) any transaction between the Company or any of its Subsidiaries on the one hand and KCS
or any of its Affiliates on the other hand, relating to the provision of transportation or
transportation-related services approved in the manner provided in clause (i)(A) above; and
(vii) swaps of locomotives or rolling stock not constituting Asset Sales by virtue of paragraph (c)
of the definition thereof in Section 1.01 of this Indenture. Notwithstanding the foregoing, any
transaction covered by the first paragraph of this Section 4.08 and not covered by clauses
(ii) through (vii) of this paragraph, (a) the aggregate amount of which exceeds U.S.$20.0 million
in value, must be approved or determined to be fair in the manner provided for in clause (i)(A) or
(B) above, and (b) the aggregate amount of which exceeds U.S.$35.0 million in value, must be
determined to be fair in the manner provided for in clause (i)(B) above; provided that such
approval or determination of fairness shall not be required with respect to any equipment lease
with an Affiliate, provided that an Officer’s Certificate is furnished to the Trustee certifying
that the terms of the equipment lease are no less favorable to the Company than the terms offered
by an unrelated party.

          SECTION 4.09 Limitation on Liens. The Company will not, and will not permit any
Restricted Subsidiary to create, Incur, assume or suffer to exist any Lien on any of its or any
Restricted Subsidiary’s assets or properties of any character, or on any shares of Capital Stock or
Indebtedness of any Restricted Subsidiary, without making effective provision for all of

46

 

the Notes and all other amounts due under this Indenture to be directly secured equally and
ratably with (or, if the obligation or liability to be secured by such Lien is subordinated in
right of payment to the Notes, prior to) the obligation or liability secured by such Lien.

          The foregoing limitation does not apply to (i) Liens existing on the Closing Date; (ii) Liens
securing Indebtedness in an aggregate principal amount not to exceed the greater of (x) U.S.$150
million and (y) an amount equal to the Secured Debt Cap on the date on which such Lien is to be
Incurred; (iii) Liens granted after the Closing Date on any of the assets or Capital Stock of the
Company or its Restricted Subsidiaries created in favor of the Holders; (iv) Liens with respect to
the assets of a Restricted Subsidiary granted by such Restricted Subsidiary to the Company or a
Wholly Owned Restricted Subsidiary to secure Indebtedness owing to the Company or such other
Restricted Subsidiary; (v) Liens securing Indebtedness which is Incurred to refinance secured
Indebtedness which is permitted to be Incurred under clause (a)(ii) of the second paragraph of
Section 4.03; provided that such Liens do not extend to or cover any property or assets of the
Company or any of its Restricted Subsidiary other than the property or assets securing the
Indebtedness being refinanced; (vi) Liens on any property or assets of a Restricted Subsidiary
securing Indebtedness of such Restricted Subsidiary permitted under Section 4.03; or
(vii) Permitted Liens.

          SECTION 4.10 Limitation on Sale-Leaseback Transactions. The Company will not, and
will not permit any Restricted Subsidiary to enter into any Sale/Leaseback Transaction with respect
to any property, except that the Company or any Restricted Subsidiary may enter into a
Sale/Leaseback transaction if:

     (i) it would be entitled to Incur Indebtedness in an amount equal to the Attributable
Debt with respect to such Sale/Leaseback Transaction pursuant to Section 4.03(a)(vii) of
this Indenture;

     (ii) the net proceeds received by the Company or any Restricted Subsidiary in
connection with such Sale/Leaseback Transaction are at least equal to the Fair Market Value
of such property; and

     (iii) the transfer of such property is permitted by, and the Company or any Restricted
Subsidiary applies the proceeds of such transaction in compliance with, Section 4.11 of this
Indenture.

          SECTION 4.11 Limitation on Asset Sales. The Company will not, and will not permit any
Restricted Subsidiary to, consummate any Asset Sale, unless:

     (i) the consideration received by the Company or such Restricted Subsidiary is at least
equal to the Fair Market Value of the assets sold or disposed of, and

     (ii) at least 75.0% of the consideration received (excluding any amount of Released
Indebtedness) consists of (i) cash, (ii) Temporary Cash Investments or (iii) Designated
Non-cash Consideration, provided that the aggregate Fair Market Value of all Designated
Non-cash Consideration that has been received by the Company and its Restricted Subsidiaries
pursuant to this clause (ii) in respect of such and all prior Asset Sales shall not exceed
$25.0 million. Any cash or cash equivalents received in connection

47

 

with a subsequent sale of or collection on such Designated Non-cash Consideration in
accordance with this Indenture relating to the Notes shall have the effect of reducing the
aggregate amount of Designated Non-cash Consideration received by the Company under this
provision by the amount of cash or cash equivalents so received.

          In the event and to the extent that the Net Cash Proceeds received by the Company or any of
its Restricted Subsidiaries from one or more Asset Sales occurring on or after the Closing Date in
any period of 12 consecutive months exceed 10.0% of Adjusted Consolidated Net Tangible Assets
(determined as of the date closest to the commencement of such 12-month period for which a
consolidated balance sheet of the Company and its subsidiaries has been filed or provided to the
Trustee pursuant to Section 4.18), then the Company shall or shall cause a Restricted Subsidiary to
(A) within 12 months after the date Net Cash Proceeds so received exceeds 10.0% of Adjusted
Consolidated Net Tangible Assets (1) apply an amount equal to such excess Net Cash Proceeds to
permanently repay unsubordinated Indebtedness of the Company, or Indebtedness of any Restricted
Subsidiary of the Company, in each case owing to a Person other than the Company or any of its
Restricted Subsidiaries or (2) invest an equal amount, or the amount not so applied pursuant to
clause (1) (or enter into a definitive agreement committing to so invest within 12 months after the
date of such agreement), in property or assets (other than current assets) of a nature or type or
that are used in a business (or in a company having property and assets of a nature or type, or
engaged in a business) similar or related to the nature or type of the property and assets of, or
the business of, the Company and its Restricted Subsidiaries existing on the date of such
investment, and (B) apply (no later than the end of the 12-month period referred to in clause
(A)) such excess Net Cash Proceeds (to the extent not applied pursuant to clause (A)) as provided
in the following paragraph of this Section 4.11. The amount of such excess Net Cash Proceeds
required to be applied (or to be committed to be applied) during such 12-month period as set forth
in clause (A) of the preceding sentence and not applied as so required by the end of such period
shall constitute “Excess Proceeds;” and (C) to the extent of the balance of any Net Cash
Proceeds after application thereof in accordance with clauses (A) and (B), use such Net Cash
Proceeds for any general corporate purposes permitted by the terms of this Indenture.

          If, as of the first day of any calendar month, the aggregate amount of Excess Proceeds not
theretofore subject to an Offer to Purchase pursuant to this Section 4.11 totals at least U.S.$25.0
million, the Company must commence, not later than the fifteenth Business Day of such month, and
consummate an Offer to Purchase from the Holders (and if required by the terms of any Indebtedness
that is pari passu with the Notes (“Pari Passu Indebtedness”), from the holders of such
Pari Passu Indebtedness) on a pro rata basis an aggregate principal amount of Notes (and Pari Passu
Indebtedness) equal to the Excess Proceeds on such date, at a purchase price equal to 100.0% of the
principal amount of the Notes (and Pari Passu Indebtedness) plus, in each case, accrued interest
(if any) to the date of purchase (the “Excess Proceeds Payment Date”).

          SECTION 4.12 Repurchase of Notes upon a Change of Control. The Company must commence,
within 30 days of the occurrence of a Change of Control, and consummate an Offer to Purchase for
all Notes then outstanding, at a purchase price equal to 101.0% of the principal amount plus
interest (if any) to the date of purchase (the “Change of Control Payment Date”).

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          SECTION 4.13 Existence. Subject to Articles Four and Five of this Indenture, the
Company will do or cause to be done all things necessary to preserve and keep in full force and
effect its existence and the existence of each of its Restricted Subsidiaries in accordance with
the respective organizational documents of the Company and each such Subsidiary and the rights
(whether pursuant to charter, partnership certificate, agreement, statute or otherwise), material
licenses and franchises of the Company and each such Subsidiary; provided that the Company shall
not be required to preserve any such right, license or franchise, or the existence of any
Restricted Subsidiary, if (a) the maintenance or preservation thereof is no longer desirable in the
conduct of the business of the Company and its Restricted Subsidiaries taken as a whole or (b) the
failure to maintain or preserve any such right, license or franchise does not have a material
adverse effect on the Company and its Restricted Subsidiaries, taken as a whole. In addition, the
Company agrees to take such actions, within a reasonable time after the Closing Date (and in any
event prior to any proceeding initiated regarding the dissolution of the Company), as may be
necessary to ensure that it shall be in good standing under the laws of the jurisdiction of its
incorporation, provided that the Company will not be required to take such actions if the failure
to be in good standing would not have a material adverse effect on the Company and its Restricted
Subsidiaries, taken as a whole. For the avoidance of doubt, nothing in this Section 4.13 shall
prohibit the Company from transforming or converting from a sociedad anónima de capital variable
organized under the laws of Mexico to a sociedad de responsabilidad limitada organized under the
laws of Mexico.

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

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

49

 

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

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

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

          (b) The Company shall deliver to the Trustee, within 90 days after the end of its fiscal year,
a certificate signed by the Company’s independent certified public accountants stating (i) that
their audit examination has included a review of the terms of this Indenture and the Notes as they
relate to accounting matters, (ii) that they have read the most recent Officers’ Certificate
delivered to the Trustee pursuant to paragraph (a) of this Section 4.17 and (iii) whether, in
connection with their audit examination, anything came to their attention that caused them to
believe that the Company was not in compliance with any of the terms, covenants, provisions or
conditions of Article Four and Section 5.01 of this Indenture as they pertain to accounting matters
and, if any Default or Event of Default has come to their attention, specifying the nature and
period of existence thereof; provided that such independent certified public accountants shall not
be liable in respect of such statement by reason of any failure to obtain knowledge of any such
Default or Event of Default that would not be disclosed in the course of an audit examination
conducted in accordance with generally accepted auditing standards in effect at the date of such
examination.

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

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

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

          SECTION 4.20 Additional Amounts. Any and all payments made by the Company to the
Holders, under or with respect to the Notes, will be made free and clear of and without withholding
or deduction for or on account of any present or future tax, duty, levy, impost, assessment or
other governmental charge (including any interest or penalties with respect thereto) imposed or
levied by or on behalf of Mexico or any political subdivision thereof or by any authority or agency
therein or thereof having power to tax (hereinafter “Mexican Withholding Taxes”), unless
the withholding or deduction of such Mexican Withholding Taxes is required by law or by the
administration thereof. In the event any Mexican Withholding Taxes are required to be so withheld
or deducted, the Company will (i) pay such additional amounts (“Additional Amounts”) as
will result in receipt by the Holders of such amounts as would have been received by them had no
such withholding or deduction been required, (ii) deduct or withhold such Mexican Withholding Taxes
and (iii) remit the full amount so deducted or withheld to the relevant taxing or other authority.
Any payment of Additional Amounts will be

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treated, for Mexican tax purposes, as additional interest. Notwithstanding the foregoing, no
such Additional Amounts shall be payable for or on account of:

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

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

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

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

     (e) the presentation of such Note (where presentation is required) for payment on a
date more than 30 days after the date on which such payment became due and payable or the
date on which payment thereof is duly provided for, whichever occurs

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later, except to the extent that the Holder or the beneficial owner of such Note would
have been entitled to Additional Amounts in respect of such Mexican Withholding Taxes on
presenting such Note for payment on any date during such 30-day period;

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

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

Notwithstanding the foregoing, the limitations on the Company’s obligation to pay Additional
Amounts set forth in clauses (c) and (d) above shall not apply if the provision of the
certification, identification, information, documentation, declaration or other evidence described
in such clauses (c) and (d) would be materially more onerous, in form, in procedure or in the
substance of information disclosed, to a Holder or beneficial owner of a Note (taking into account
any relevant differences between United States and Mexican law, regulation or administrative
practice) than comparable information or other applicable reporting requirements imposed or
provided for under United States federal income tax law (including the United States-Mexico Income
Tax Treaty), Treasury Regulations (including proposed Treasury Regulations) and administrative
practice. In addition, the limitations on the Company’s obligation to pay Additional Amounts set
forth in clauses (c) and (d) above shall not apply if Rule 1.3.22.8 of the Miscellaneous Tax
Resolution currently in force or a substantially similar successor of such rule is in effect,
unless (i) the provision of the certification, identification, information, documentation,
declaration or other evidence described in clauses (c) and (d) is expressly required by statute,
regulation, ruling or general rules or administrative practice in order to apply Rule 1.3.22.8, as
amended (or a substantially similar successor of such rule), the Company cannot obtain such
certification, identification, information, documentation, declaration or other evidence or satisfy
any other reporting requirements, on its own through reasonable diligence and the Company otherwise
would meet the requirements for application of Rule 1.3.22.8, as amended (or such successor of such
rule) or (ii) in the case of a Holder or beneficial owner of a Note that is a pension fund or other
tax-exempt organization, such Holder or beneficial owner would be subject to Mexican Withholding
Taxes at a rate less than that provided by Article 195, Section II, paragraph (a) of the Mexican
Income Tax Law in connection with Rule 1.3.22.8, as amended, if the information, documentation or
other evidence required under clause (d) above were provided. In addition, clause (c) above shall
not be construed to require that a non-Mexican pension or retirement fund, a non-Mexican tax-exempt
organization, a non-Mexican financial institution or any other Holder or beneficial owner of a Note
register with the Ministry of Finance and Public Credit for the purpose of establishing eligibility
for an exemption from or reduction of Mexican Withholding Taxes.

          The Company will, upon written request, provide the Trustee, the Holders and the Paying Agent
with a duly certified or authenticated copy of an original receipt of the payment of Mexican
Withholding Taxes which the Company has withheld or deducted in respect of any payments made under
or with respect to the Notes.

          In the event that Additional Amounts actually paid with respect to any Notes are based on
Mexican Withholding Taxes in excess of the appropriate Mexican Withholding Taxes applicable to the
Holder or beneficial owner of such Notes and, as a result thereof, such Holder

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

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

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

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

          SECTION 4.22 Covenant Termination. From and after any time that:

     (a) any Notes have an Investment Grade Rating from both the Rating Agencies; and

     (b) no Default or Event of Default has occurred and is continuing under the Indenture,

the Company and its Restricted Subsidiaries shall not be subject to Sections 4.03, 4.04, 4.05,
4.06, 4.07, 4.08, 4.10 and 4.11.

ARTICLE FIVE

SUCCESSOR CORPORATION

          SECTION 5.01 When Company May Merge, Etc. The Company will not consolidate with,
merge with or into, or sell, convey, transfer, lease or otherwise dispose of all or substantially
all of its property and assets (as an entirety or substantially an entirety in one

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transaction or a series of related transactions) to, any Person or permit any Person to merge
with or into the Company unless: (i) the Company shall be the continuing Person, or the Person (if
other than the Company) formed by such consolidation or into which the Company is merged or that
acquired or leased such property and assets of the Company shall be a corporation organized and
validly existing under the laws of Mexico (including, without limitation, a sociedad
responsabilidad limitada), the United States of America or any jurisdiction of either such country
and shall expressly assume, by a supplemental indenture, executed and delivered to the Trustee, all
of the obligations of the Company on all of the Notes and under this Indenture; (ii) immediately
after giving effect to such transaction, no Default or Event of Default shall have occurred and be
continuing; (iii) immediately after giving effect to such transaction on a pro forma basis, the
Company, or any Person becoming the successor obligor of the Notes, could incur at least U.S.$1.00
of Indebtedness under the first paragraph of Section 4.03; provided that this clause (iii) shall
not apply to a consolidation or merger of the Company with or into a Wholly Owned Restricted
Subsidiary with a positive net worth; provided that, in connection with any such consolidation or
merger, no consideration (other than Common Stock in the surviving Person or the Company) shall be
issued or distributed to the stockholders of the Company; and (iv) the Company delivers to the
Trustee an Officers’ Certificate (attaching the arithmetic computations to demonstrate compliance
with clause (iii)) and an Opinion of Counsel, in each case stating that such consolidation, merger
or transfer and such supplemental indenture complies with this provision and that all conditions
precedent provided for herein relating to such transaction have been complied with; provided,
however, that clause (iii) above does not apply if, in the good faith determination of the Board of
Directors of the Company, whose determination shall be evidenced by a Board Resolution, the
principal purpose of such transaction is to change the jurisdiction of incorporation of the Company
or to incorporate the Company under the laws of a state of the United States; and provided further
that any such transaction shall not have as one of its purposes the evasion of the foregoing
limitations.

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

ARTICLE SIX

DEFAULT AND REMEDIES

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

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

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

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

     (d) the Company defaults in the performance of or breaches any other covenant or
agreement of the Company in this Indenture or under the Notes (other than a default
specified in clause (a), (b) or (c) above), and such default or breach continues for a
period of 60 consecutive days after written notice by the Trustee or the Holders of 25.0% or
more in aggregate principal amount of the Notes;

     (e) there occurs with respect to any issue or issues of Indebtedness of the Company or
any of its Significant Subsidiaries having an outstanding principal amount of U.S.$25.0
million or more in the aggregate for all such issues of all such Persons, whether such
Indebtedness now exists or shall hereafter be created, (i) an event of default that has
caused the holder thereof to declare such Indebtedness to be due and payable prior to its
Stated Maturity and such Indebtedness has not been discharged in full or such acceleration
has not been rescinded or annulled within 30 days of such acceleration and/or (ii) the
failure to make a principal payment at the final (but not any interim) fixed maturity and
such defaulted payment shall not have been made, waived or extended within 30 days of such
payment default;

     (f) [intentionally omitted];

     (g) any final judgment or order (not covered by insurance) for the payment of money in
excess of U.S.$35.0 million in the aggregate for all such final judgments or orders against
all such Persons (treating any deductibles, self-insurance or retention as not so covered)
shall be rendered against the Company or any of its Significant Subsidiaries and shall not
be paid or discharged, and there shall be any period of 30 consecutive days following entry
of the final judgment or order that causes the aggregate amount for all such final judgments
or orders outstanding and not paid or discharged against all such Persons to exceed
U.S.$35.0 million during which a stay of enforcement of such final judgment or order, by
reason of a pending appeal or otherwise, shall not be in effect;

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

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

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under any such law, (B) consents to the appointment of or taking possession by a
receiver, liquidator, assignee, síndico, custodian, trustee, sequestrator or similar
official of the Company or any of its Significant Subsidiaries or for all or substantially
all of the property and assets of the Company or any of its Significant Subsidiaries or (C)
effects any general assignment for the benefit of creditors; or

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

          SECTION 6.02 Acceleration. If an Event of Default (other than an Event of Default
specified in clause (h), (i) or (j)(B)(x) above that occurs with respect to the Company) occurs and
is continuing under this Indenture, the Trustee or the Holders of at least 25.0% in aggregate
principal amount of the Notes then outstanding, by written notice to the Company (and to the
Trustee if such notice is given by the Holders), may, and the Trustee at the request of such
Holders shall, declare the principal of, premium, if any, and accrued interest on the Notes to be
immediately due and payable. Upon a declaration of acceleration, such principal of, premium, if
any, and accrued interest shall be immediately due and payable. In the event of a declaration of
acceleration because an Event of Default set forth in clause (e) above has occurred and is
continuing, such declaration of acceleration shall be automatically rescinded and annulled if the
event of default triggering such Event of Default pursuant to clause (e) shall be remedied or cured
by the Company or its Significant Subsidiary or waived by the holders of the Indebtedness within 60
days after the declaration of acceleration with respect thereto. If an Event of Default specified
in clause (h), (i) or (j)(B)(x) above occurs with respect to the Company and is continuing, the
principal of, premium, if any, and accrued interest on the Notes then outstanding shall ipso facto
become and be immediately due and payable without any declaration or other act on the part of the
Trustee or any Holder. The Holders of at least a majority in principal amount of the outstanding
Notes, by written notice to the Company and to the Trustee, may waive all past defaults and rescind
and annul a declaration of acceleration and its consequences if (i) all existing Events of Default,
other than the nonpayment of the principal of, premium, if any, and interest on the Notes that have
become due solely by such declaration of acceleration, have been cured or waived and (ii) the
rescission would not conflict with any judgment or decree of a court of competent jurisdiction.

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

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

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

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

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

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

     (ii) the Holders of at least 25.0% in aggregate principal amount of outstanding Notes
shall have made a written request to the Trustee to pursue the remedy;

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

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

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

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

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

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

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

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

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

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

     Second: to Holders for amounts then due and unpaid for principal of, premium,
if any, and interest on the Notes in respect of which or for the benefit of which such money
has been collected, ratably, without preference or priority of any kind, according to the

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amounts due and payable on such Notes for principal, premium, if any, and interest,
respectively; and

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

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

          SECTION 6.11 Undertaking for Costs. In any suit for the enforcement of any right or
remedy under this Indenture or in any suit against the Trustee for any action taken or omitted by
it as Trustee, a court may require any party litigant in such suit to file an undertaking to pay
the costs of the suit, and the court may assess reasonable costs, including reasonable attorneys’
fees and expenses, against any party litigant in the suit having due regard to the merits and good
faith of the claims or defenses made by the party litigant. This Section 6.11 does not apply to a
suit by the Trustee, a suit by a Holder pursuant to Section 6.07 of this Indenture, or a suit by
Holders of more than 10.0% in principal amount of the outstanding Notes.

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

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

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

ARTICLE SEVEN

TRUSTEE

          SECTION 7.01 General. The duties and responsibilities of the Trustee shall be as
provided by the TIA and as set forth herein. If an Event of Default has occurred and is
continuing, the Trustee shall exercise such of the rights and powers vested in it by this

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Indenture and shall use the same degree of care and skill in their exercise as a prudent
person would exercise or use under the circumstances in the conduct of its own affairs. Except
during the continuance of an Event of Default, the Trustee need only perform those duties as are
specifically set forth in this Indenture and the Notes. Notwithstanding the foregoing, no
provision of this Indenture shall require the Trustee to expend or risk its own funds or otherwise
incur any financial liability in the performance of any of its duties hereunder, or in the exercise
of any of its rights or powers, if it shall have reasonable grounds for believing that repayment of
such funds or adequate indemnity against such risk or liability is not reasonably assured to it.
Whether or not herein expressly so provided, every provision of this Indenture relating to the
conduct or affecting the liability of or affording protection to the Trustee shall be subject to
the provisions of this Article Seven.

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

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

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

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

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

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

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

     (vii) the Trustee shall not be bound to make any investigation into the facts or
matters stated in any resolution, certificate, statement, instrument, opinion, report,
notice,

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request, direction, consent, order, bond, debenture, note, other evidence of
indebtedness or other paper or document, but the Trustee, in its discretion, may make such
further inquiry or investigation into such facts or matters as it may see fit and, if the
Trustee shall determine to make such further inquiry or investigation, it shall be entitled
to examine the books, records and premises of the Company personally or by agent or attorney
at the expense of the Company and shall incur no liability of any kind by reason of such
inquiry or investigation;

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

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

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

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

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

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

          SECTION 7.06 Reports by Trustee to Holders. Within 60 days after each January 15,
beginning with January 15, 2011, the Trustee shall mail to each Holder as provided

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in TIA Section 313(c) a brief report dated as of such January 15, if required by TIA Section
313(a).

          SECTION 7.07 Compensation and Indemnity. The Company shall pay to the Trustee and
each Paying Agent such compensation as shall be agreed upon in writing for its services. The
compensation of the Trustee and any Paying Agent shall not be limited by any law on compensation of
a trustee of an express trust. The Company shall reimburse the Trustee and each Paying Agent upon
request for all reasonable out-of-pocket expenses and advances incurred or made by the Trustee and
each Paying Agent. Such expenses shall include the reasonable compensation and expenses of the
Trustee’s or such Paying Agent’s agents and counsel.

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

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

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

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

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

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

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

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

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

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

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

          SECTION 7.09 Successor Trustee by Merger, Etc. If the Trustee consolidates with,
merges or converts into, or transfers all or substantially all of its corporate trust business to,
another corporation, trust company or national banking association, the resulting, surviving or
transferee corporation or national banking association without any further

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act shall be the successor Trustee with the same effect as if the successor Trustee had been
named as the Trustee herein.

          SECTION 7.10 Eligibility. This Indenture shall always have a Trustee who satisfies
the requirements of TIA Section 310(a)(1). The Trustee (together with its parent) shall have a
combined capital and surplus of at least U.S.$25.0 million as set forth in its most recent
published annual report of condition.

          SECTION 7.11 Money Held in Trust. The Trustee shall not be liable for interest on any
money received by it except as the Trustee may agree with the Company. Money held in trust by the
Trustee need not be segregated from other funds except to the extent required by law and except for
money held in trust under Article Eight and Article Twelve of this Indenture.

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

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

          In the event that the Trustee appoints an additional individual or institution as a separate
or co-trustee, each and every remedy, power, right, claim, demand, cause of action, immunity,
estate, title, interest and lien expressed or intended by this Indenture to be exercised by or
vested in or conveyed to the Trustee with respect thereto shall be exercisable by and vest in such
separate or co-trustee but only to the extent necessary to enable such separate or co-trustee to
exercise such powers, rights and remedies, and only to the extent that the Trustee by the laws of
any jurisdiction (including particularly the relevant state) is incapable of exercising such
powers, rights and remedies and every covenant and obligation necessary to the exercise thereof by
such separate or co-trustee shall run to and be enforceable by either of them. No Trustee

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hereunder shall be personally liable by reason of any act or omission of any other Trustee
hereunder, nor will the act or omission of any Trustee hereunder be imputed to any other Trustee.

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

ARTICLE EIGHT

DISCHARGE OF INDENTURE, DEFEASANCE

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

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

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

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

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

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

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

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

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     (D) the Company shall have delivered to the Trustee (1) either (x) a ruling directed to
the Trustee received from the Internal Revenue Service to the effect that the Holders will
not recognize income, gain or loss for U.S. federal income tax purposes as a result of the
Company’s exercise of its option under this Section 8.02 and will be subject to United
States federal income tax on the same amount and in the same manner and at the same times as
would have been the case if such option had not been exercised or (y) an Opinion of Counsel
to the same effect as the ruling described in clause (1)(x) above accompanied by a ruling to
that effect published by the Internal Revenue Service, unless such Opinion of Counsel states
that there has been a change in the applicable United States federal income tax law since
the date of this Indenture such that a ruling from the Internal Revenue Service is no longer
required, (2) either (x) an Opinion of Counsel to the effect that, based upon Mexican tax
law then in effect, Holders will not recognize income, gain or loss for Mexican federal
income tax (including withholding tax) purposes as a result of the Company’s exercise of its
option under this Section 8.02 and will be subject to Mexican federal income tax (including
withholding tax) on the same amount and in the same manner and at the same times as would
have been the case if such deposit, defeasance and discharge had not occurred, or (y) a
ruling directed to the Trustee received from the Mexican taxing authorities to the same
effect as the Opinion of Counsel described in clause (2)(x) above, and (3) an Opinion of
Counsel to the effect that (x) the creation of the defeasance trust does not violate the
Investment Company Act of 1940 and (y) after the passage of 123 days following the deposit,
the trust funds will not be subject to the effect of Section 547 of the United States
Bankruptcy Code or Section 15 of the New York Debtor and Creditor Law in a case commenced by
or against the Company under either such statute;

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

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

          Notwithstanding the foregoing, prior to the end of the 123-day period referred to in this
Section 8.02, none of the Company’s obligations under this Indenture shall be discharged.
Subsequent to the end of such 123-day period with respect to this Section 8.02, the Company’s
obligations in Sections 2.02, 2.03, 2.04, 2.05, 2.06, 2.07, 2.08, 2.09, 4.02, 7.07, 7.08 and 8.05
shall survive until the Notes are no longer outstanding. Thereafter, only the Company’s
obligations in Sections 7.07, 8.04 and 8.05 shall survive. If and when a ruling or an Opinion of
Counsel referred to in clauses (D)(1) and (D)(2) of this Section 8.02 may be provided specifically
without regard to, and not in reliance upon, the continuance of the Company’s obligations under
Section 4.01, then the Company’s obligations under such Section 4.01 shall cease upon delivery to
the Trustee of such ruling or Opinion of Counsel and compliance with the other conditions precedent
provided for herein relating to the defeasance contemplated by this Section 8.02.

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

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

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

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

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

     (iv) the Company has delivered to the Trustee an Opinion of Counsel to the effect that
(A) (x) the creation of the defeasance trust does not violate the Investment Company Act of
1940 and (y) after the passage of 123 days following the deposit, the trust funds will not
be subject to the effect of Section 547 of the United States Bankruptcy Code or Section 15
of the New York Debtor and Creditor Law in a case commenced by or against the Company under
either such statute, (B) the Holders will not

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recognize income, gain or loss for United States federal income tax purposes as a
result of such deposit and the defeasance of the obligations referred to in the first
paragraph of this Section 8.03 and will be subject to United States federal income tax on
the same amount and in the same manner and at the same times as would have been the case if
such deposit and defeasance had not occurred and (C) the Holders will not recognize income,
gain or loss for Mexican federal income tax (including withholding tax) purposes as a result
of such deposit and the defeasance of the obligations referred to in the first paragraph of
this Section 8.03 and will be subject to Mexican federal income tax (including withholding
tax) on the same amount and in the same manner and at the same times as would have been the
case if such deposit and defeasance had not occurred;

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

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

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

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

          SECTION 8.06 Reinstatement. If the Trustee or Paying Agent is unable to apply any
money or Government Securities in accordance with Section 8.03, as the case may be, by reason of
any legal proceeding or by reason of any order or judgment of any court or governmental authority
enjoining, restraining or otherwise prohibiting such application, the

70

 

Company’s obligations under this Indenture and the Notes shall be revived and reinstated as
though no deposit had occurred pursuant to Section 8.03, as the case may be, until such time as the
Trustee or Paying Agent is permitted to apply all such money or Government Securities in accordance
with Section 8.03, as the case may be; provided that, if the Company has made any payment of
principal of, premium, if any, or interest on any Notes because of the reinstatement of its
obligations, the Company shall be subrogated to the rights of the Holders of such Notes to receive
such payment from the money or Government Securities held by the Trustee or Paying Agent.

ARTICLE NINE

AMENDMENTS, SUPPLEMENTS AND WAIVERS

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

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

     (2) to comply with Article Five;

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

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

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

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

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

     (i) change the Stated Maturity of the principal of, or any installment of interest on,
any Note, or reduce the principal amount thereof or the rate of interest thereon or any
premium payable upon the redemption thereof, or adversely affect any right of repayment at
the option of any Holder of any Note, or change any place of

71

 

payment where, or the currency in which, any Note or any premium or the interest
thereon is payable, or impair the right to institute suit for the enforcement of any such
payment on or after the Stated Maturity thereof (or, in the case of redemption, on or after
the Redemption Date);

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

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

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

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

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

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

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

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

72

 

          After an amendment, supplement or waiver becomes effective, it shall bind every Holder unless
it is of the type described in any of clauses (i) through (iv) of Section 9.02. In case of an
amendment or waiver of the type described in clauses (i) through (iv) of Section 9.02, the
amendment or waiver shall bind each Holder who has consented to it and every subsequent Holder of a
Note that evidences the same indebtedness as the Note of the consenting Holder.

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

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

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

ARTICLE TEN

[INTENTIONALLY OMITTED]

ARTICLE ELEVEN

[INTENTIONALLY OMITTED]

ARTICLE TWELVE

[INTENTIONALLY OMITTED]

ARTICLE THIRTEEN

MISCELLANEOUS

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

73

 

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

	 	 	 	 	 
	 

	 	if to the Company:	 	 
	 
	 	 	 	 
	 

	 	Kansas City Southern de México, S.A. de C.V.	 	 
	 

	 	c/o Kansas City Southern	 	 
	 
	 	 	 	 
	 

	 	Overnight Courier Address:
	 	U.S. Mail Address:
	 
	 	 	 	 
	 

	 	427 West 12th Street
	 	P.O. Box 219335
	 

	 	Kansas City, MO 64105
	 	Kansas City, MO 64121-9335
	 

	 	Attention: Chief Financial Officer
	 	Attention: Chief Financial Officer
	 
	 	 	 	 
	 

	 	if to the Trustee:	 	 
	 
	 	 	 	 
	 

	 	U.S. Bank National Association	 	 
	 

	 	Corporate Trust Services	 	 
	 

	 	225 Asylum Street, 23rd Floor	 	 
	 

	 	Hartford, CT 06103-1919	 	 
	 

	 	Attention: Michael M. Hopkins	 	 

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

          All notices or communications to a Holder shall be deemed to have been given upon the mailing
by first class mail, postage prepaid, of such notices to Noteholders at their registered addresses
as recorded in the Note Register, not later than the latest date, and not earlier than the earliest
date, prescribed in the Notes for the giving of such notice. Copies of any such communication or
notice to a Holder shall also be mailed to the Trustee and each Agent at the same time.

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

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

          In case by reason of the suspension of regular mail service or by reason of any other cause it
shall be impracticable to give such notice by mail, then such notification as shall be

74

 

made with the approval of the Trustee shall constitute a sufficient notification for every
purpose hereunder. All communication delivered to the Trustee shall be deemed effective when
actually received by the Trustee.

          Neither the failure to give any notice to a particular Holder, nor any defect in any notice
given to any particular Holder, shall affect the sufficiency of any notice given to another Holder.

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

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

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

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

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

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

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

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

          SECTION 13.05 Meetings of Noteholders. A meeting of the Noteholders to consider
matters affecting their interests may be called by the Trustee or the holders of at least 10.0% in
aggregate principal amount of the outstanding Notes.

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

75

 

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

          SECTION 13.08 Governing Law; Submission to Jurisdiction; Agent for Service. Each of
the parties hereto agrees that the Notes and this Indenture will be governed by the laws of the
State of New York. Each of the parties hereto hereby submits to the jurisdiction of the U.S.
federal and New York state courts located in the Borough of Manhattan, City and State of New York
for purposes of all legal actions and proceedings instituted in connection with the Notes and this
Indenture, and waives any objection which it may now have or hereafter have to the laying of venue
of any such action or proceeding and any right to which it may be entitled on account of place of
residence or domicile. The Company has appointed C T Corporation System, 111 Eighth Avenue, New
York, NY 10011, as the Company’s authorized agent upon which process may be served in any such
action.

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

76

 

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

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

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

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

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

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

          SECTION 13.16 Waiver of Immunity. To the extent that the Company has or hereafter may
acquire any immunity (sovereign or otherwise) from any legal action, suit or proceeding, from
jurisdiction of any court or from set-off or any legal process (whether service or notice,
attachment in aid or otherwise) with respect to itself or any of its property, the Company hereby
irrevocably waives and agrees not to plead or claim such immunity in respect of its obligations
under this Indenture.

77

 

SIGNATURES

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

	 	 	 	 	 
	 	Kansas City Southern de México, S.A. de C.V.

 	 
	 
	 	By:  	/s/ Michael W. Upchurch
 	 
	 	 	Name:  	Michael W. Upchurch 	 
	 	 	Title:  	Attorney-in-fact and Chief Financial Officer 	 
	 
	 	 	 
	 	By:  	                                             /s/ Paul J. Weyandt
 	 
	 	 	Name:  	Paul J. Weyandt 	 
	 	 	Title:  	Attorney-in-fact and Treasurer 	 
	 
	 
	 	U.S. Bank National Association, as Trustee and 

Paying Agent

 	 
	 
	 	By:  	/s/ Susan C. Merker
 	 
	 	 	Name:  	Susan C. Merker 	 
	 	 	Title:  	Vice President 	 
	 

 

 

EXHIBIT A

[FACE OF NOTE]

Kansas City Southern de México, S.A. de C.V.

8% Senior Notes due 2018

[CUSIP] [                  ]

[                  ]

[CINS] [_________]

[ISIN] [_________]

No. U.S.$________

          Kansas City Southern de México, S.A. de C.V., a corporation (sociedad anónima de capital
variable) organized under the laws of Mexico (the “Company,” which term includes any successor
under the Indenture hereinafter referred to), for value received, promises to pay to Cede & Co., or
its registered assigns, the principal sum of U.S.$______ on February 1, 2018.

          Interest Payment Dates: February 1 and August 1, commencing August 1, 2010.

          Regular Record Dates: January 15 and July 15.

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

A-1

 

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

	 	 	 	 	 
	 Date: January 22, 2010 	Kansas City Southern de México, S.A. de C.V.

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

A-2

 

	 	 	 	 	 

Trustee’s Certificate of Authentication

          This is one of the 8% Senior Notes described in the within-mentioned Indenture.

	 	 	 	 	 
	 	U.S. Bank National Association, as Trustee

 	 
	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

A-3

 

	 	 	 	 	 

[REVERSE SIDE OF NOTE]

Kansas City Southern de México, S.A. de C.V.

8% Senior Notes

1. Principal and Interest.

          The Company will pay the principal of this Note on February 1, 2018.

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

          Interest will be payable semiannually (to the holders of record of the Notes at the close of
business on January 15 or July 15 immediately preceding the Interest Payment Date) on each Interest
Payment Date, commencing August 1, 2010.

          Interest on the Notes will accrue from the most recent date to which interest has been paid
or, if no interest has been paid, from January 22, 2010; provided that, if there is no existing
default in the payment of interest and this Note is authenticated between a Regular Record Date
referred to on the face hereof and the next succeeding Interest Payment Date, interest shall accrue
from such Interest Payment Date. Interest will be computed on the basis of a 360-day year of
twelve 30-day months.

          The Company shall pay interest on overdue principal and premium, if any, and interest on
overdue installments of interest, to the extent lawful, at a rate per annum that is 2.0% in excess
of the rate otherwise payable.

2. Method of Payment.

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

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

A-4

 

3. Paying Agent and Registrar.

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

4. Indenture; Limitations.

          The Company issued the Notes under an Indenture dated as of January 22, 2010 (the
“Indenture”), between the Company and the U.S. Bank National Association, as trustee (the
“Trustee”) and as paying agent (“Paying Agent”). Capitalized terms herein are used as defined in
the Indenture unless otherwise indicated. The terms of the Notes include those stated in the
Indenture and those made part of the Indenture by reference to the Trust Indenture Act. The Notes
are subject to all such terms, and Holders are referred to the Indenture and the Trust Indenture
Act for a statement of all such terms. To the extent permitted by applicable law, in the event of
any inconsistency between the terms of this Note and the terms of the Indenture, the terms of the
Indenture shall control.

          The Notes are general unsecured obligations of the Company. The Indenture limits the
aggregate principal amount of the Notes to U.S.$300,000,000 plus any Add On Notes or Exchange Notes
that may be issued in exchange for Notes pursuant to the Registration Rights Agreement.

5. Optional Redemption.

          The Notes will be redeemable, at the Company’s option, in whole at any time or in part from
time to time, on or after February 1, 2014 and prior to maturity, upon not less than 30 nor more
than 60 days’ prior notice mailed by first class mail to each Holders’ last address as it appears
in the Note Register, at the following Redemption Prices (expressed in percentages of principal
amount), plus accrued and unpaid interest, liquidated damages, if any, and any Additional Amounts
(as defined in Section 4.20 of the Indenture) to the Redemption Date (subject to the right of
Holders of record on the relevant Regular Record Date that is on or prior to the Redemption Date to
receive interest due on an Interest Payment Date), if redeemed during the 12-month period
commencing February 1, of the years set forth below:

	 	 	 	 	 
	Year	 	Redemption Price
	2014

	 	 	104.000	%
	2015

	 	 	102.000	%
	2016

	 	 	100.000	%

          In addition, at any time prior to February 1, 2013, the Company may redeem up to 35.0% of the
principal amount of the Notes with the Net Cash Proceeds of one or more Equity Offerings by the
Company or KCS, to the extent the Net Cash Proceeds thereof are contributed to the Company or used
to purchase Capital Stock (other than Disqualified Stock) of the Company from the Company, at a
Redemption Price equal to 108.000% of the principal amount thereof, plus accrued interest,
liquidated damages, if any, and any Additional Amounts to the Redemption Date; provided, however,
that after giving effect to any such redemption:

A-5

 

	 	(1)	 	at least 65.0% of the original aggregate principal amount of
the Notes remains outstanding; and
	 
	 	(2)	 	any such redemption must be made within 60 days of such Equity
Offering and must be made in accordance with certain procedures set forth in
the Indenture.

          Upon completion of the Exchange Offer, the Company may also redeem any Notes which were not
surrendered in the Exchange Offer in an amount up to 2.0% of the original aggregate principal
amount of the Notes issued at a redemption price of 100.0% of their principal amount plus accrued
interest, if any, and any Additional Amounts to the Redemption Date.

6. Redemption for Changes in Withholding Taxes.

          The Notes will be subject to redemption, in whole but not in part, at the option of the
Company at any time at 100.0% of their principal amount together with accrued interest, liquidated
damages, if any, and any Additional Amounts thereon, if any, to the Redemption Date, in the event
the Company has become or would become obligated to pay, on the next date on which any amount would
be payable with respect to the Notes, any Additional Amounts in excess of those attributable to a
withholding tax rate of 4.9% as a result of a change in or amendment to the laws (including any
regulations or general rules promulgated thereunder) of Mexico (or any political subdivision or
taxing authority thereof or therein), or any change in or amendment to any official position
regarding the application, administration or interpretation of such laws, regulations or general
rules, including a holding of a court of competent jurisdiction, which change or amendment is
announced or becomes effective on or after January 7, 2010. The Company shall not, however, have
the right to redeem Notes from a Holder pursuant to this Section except to the extent that it is
obligated to pay Additional Amounts to such Holder that are greater than the Additional Amounts
that would be payable based on a Mexican Withholding Tax rate of 4.9%.

7. Partial Redemption.

          In the case of any partial redemption, selection of the Notes for redemption will be made by
the Trustee in compliance with the requirements, as certified to it by the Company, of the
principal national securities exchange, if any, on which such Notes are listed or, if such Notes
are not listed on a national securities exchange, by lot or by such other method as such Trustee in
its sole discretion shall deem to be fair and appropriate; provided that no Note of U.S.$2,000 in
principal amount or less shall be redeemed in part. If any Note is to be redeemed in part only,
the notice of redemption relating to such Note shall state the portion of the principal amount
thereof to be redeemed. A Note in principal amount equal to the unredeemed portion thereof will be
issued in the name of the Holder thereof upon cancellation of the original Note.

8. Notice of Redemption.

          Notice of any redemption pursuant to Section 5 hereof will be mailed at least 30 days but not
more than 60 days before the Redemption Date to each Holder of Notes to be redeemed at his or her
last address as it appears in the Note Register. Notice of any redemption pursuant to Section 6
hereof will be mailed at least six days before the Redemption Date to each

A-6

 

Holder of Notes to be redeemed at his or her last address as it appears in the Note Register.
Notes in original denominations larger than U.S.$2,000 may be redeemed in part. On and after the
Redemption Date, interest ceases to accrue and the principal amount shall remain constant (using
the principal amount as of the Redemption Date) on Notes or portions of Notes called for
redemption, unless the Company defaults in the payment of the Redemption Price.

9. Repurchase upon Change of Control.

          Upon the occurrence of any Change of Control, each Holder shall have the right to require the
repurchase of its Notes by the Company in cash pursuant to the offer described in the Indenture at
a purchase price equal to 101.0% of the principal amount thereof on the date of repurchase plus
accrued and unpaid interest, if any, to the date of purchase (the “Change of Control Payment”).

          A notice of such Change of Control will be mailed within 30 days after any Change of Control
occurs to each Holder at his last address as it appears in the Note Register. Notes in original
denominations larger than U.S.$2,000 may be sold to the Company in part. On and after the Change
of Control Payment Date, interest ceases to accrue on Notes or portions of Notes surrendered for
purchase by the Company, unless the Company defaults in the payment of the Change of Control
Payment.

10. Denominations; Transfer; Exchange.

          The Notes are in registered form without coupons in minimum denominations of U.S.$2,000 of
principal amount and multiples of U.S.$1,000 in excess thereof. A Holder may register the transfer
or exchange of Notes in accordance with the Indenture. The Registrar may require a Holder, among
other things, to furnish appropriate endorsements and transfer documents and to pay any taxes and
fees required by law or permitted by the Indenture. The Registrar need not register the transfer
or exchange of any Notes selected for redemption. Also, it need not register the transfer or
exchange of any Notes for a period of 15 days before a selection of Notes to be redeemed is made.

11. Persons Deemed Owners.

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

12. Unclaimed Money.

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

13. Discharge Prior to Redemption or Maturity.

          The Company’s obligations pursuant to the Indenture will be discharged, except for obligations
pursuant to certain sections thereof, subject to the terms of the Indenture, upon

A-7

 

the payment of all the Notes or upon the irrevocable deposit with the Trustee of U.S. Dollars
or Government Securities sufficient to pay when due principal of and interest on the Notes to
maturity or redemption, as the case may be.

14. Amendment; Supplement; Waiver.

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

15. Restrictive Covenants.

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

16. Successor Persons.

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

17. Defaults and Remedies.

          The following events constitute “Events of Default” under the Indenture: (a) default in the
payment of principal of (or premium, if any, on) any Note when the same becomes due and payable at
maturity, upon acceleration, redemption or otherwise; (b) default in the payment of interest on any
Note when the same becomes due and payable, and such default continues for a period of 30 days; (c)
the Company defaults in the performance of or breaches the provisions of Article Five of the
Indenture or fails to make or consummate an Offer to Purchase in accordance with Section 4.11 or
Section 4.12 of the Indenture; (d) the Company defaults in the performance of or breaches any other
covenant or agreement of the Company in the Indenture or under this Note (other than a default
specified in clause (a), (b) or (c) above), and such default or breach continues for a period of 60
consecutive days after written notice by the Trustee or the Holders of 25.0% or more in aggregate
principal amount of the Notes; (e) there occurs with respect to any issue or issues of Indebtedness
of the Company or any of its Significant Subsidiaries having an outstanding principal amount of
U.S.$25.0 million or more in the aggregate for all such issues of all such Persons, whether such
Indebtedness now exists or shall hereafter be created, (I) an event of default that has caused the
holder thereof to declare such Indebtedness to be due and payable prior to its Stated Maturity and
such Indebtedness has

A-8

 

not been discharged in full or such acceleration has not been rescinded or annulled within 30
days of such acceleration and/or (II) the failure to make a principal payment at the final (but not
any interim) fixed maturity and such defaulted payment shall not have been made, waived or extended
within 30 days of such payment default; (f) [intentionally omitted]; (g) any final judgment or
order (not covered by insurance) for the payment of money in excess of U.S.$35.0 million in the
aggregate for all such final judgments or orders against all such Persons (treating any
deductibles, self-insurance or retention as not so covered) shall be rendered against the Company
or any of its Significant Subsidiaries and shall not be paid or discharged, and there shall be any
period of 30 consecutive days following entry of the final judgment or order that causes the
aggregate amount for all such final judgments or orders outstanding and not paid or discharged
against all such Persons to exceed U.S.$35.0 million during which a stay of enforcement of such
final judgment or order, by reason of a pending appeal or otherwise, shall not be in effect; (h) a
court having jurisdiction in the premises enters a decree or order for (A) relief in respect of the
Company or any of its Significant Subsidiaries in an involuntary case under any applicable
bankruptcy, insolvency or other similar law now or hereafter in effect, (B) appointment of a
receiver, liquidator, assignee, síndico, custodian, trustee, sequestrator or similar official of
the Company or any of its Significant Subsidiaries or for all or substantially all of the property
and assets of the Company or any of its Significant Subsidiaries or (C) the winding up or
liquidation of the affairs of the Company or any of its Significant Subsidiaries and, in each case,
such decree or order shall remain unstayed and in effect for a period of 30 consecutive days; (i)
the Company or any of its Significant Subsidiaries (A) commences a voluntary case under any
applicable bankruptcy, insolvency or other similar law now or hereafter in effect, or consents to
the entry of an order for relief in an involuntary case under any such law, (B) consents to the
appointment of or taking possession by a receiver, liquidator, assignee, custodian, trustee,
sequestrator or similar official of the Company or any of its Significant Subsidiaries or for all
or substantially all of the property and assets of the Company or any of its Significant
Subsidiaries or (C) effects any general assignment for the benefit of creditors; or (j) (A) the
Concession Title shall cease to grant to the Company the rights (including exclusive rights)
provided therein on the date of the Indenture and such cessation has had a material adverse effect
on its Restricted Subsidiaries taken as a whole; (B) (x) the Concession Title shall for any reason
be terminated and not reinstated within 30 days or (y) rights provided therein which were
originally exclusive to the Company shall become nonexclusive and the cessation of such exclusivity
has had a material adverse effect on the Company and its Restricted Subsidiaries, taken as a whole;
or (C) the operations of the Northeast Rail Lines shall be commandeered or repossessed (a requisa)
for a period of 90 days or more. If an Event of Default (other than an Event of Default specified
in clause (h), (i) or (j)(B)(x) above that occurs with respect to the Company) occurs and is
continuing under the Indenture, the Trustee or the Holders of at least 25.0% in aggregate principal
amount of the Notes then outstanding, by written notice to the Company (and to the Trustee if such
notice is given by the Holders), may, and the Trustee at the request of such Holders shall, declare
the principal of, premium, if any, and accrued interest on the Notes to be immediately due and
payable.

          If an Event of Default specified in clause (h), (i) or (j)(B)(x) above occurs with respect to
the Company and is continuing, the Notes automatically become due and payable. Holders may not
enforce the Indenture or the Notes except as provided in the Indenture. The Trustee may require
indemnity satisfactory to it before it enforces the Indenture or the Notes.

A-9

 

Subject to certain limitations, Holders of at least a majority in principal amount of the
Notes then outstanding may direct the Trustee in its exercise of any trust or power.

18. Additional Amounts.

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

19. Trustee Dealings with Company.

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

20. No Recourse Against Others.

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

21. Authentication.

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

22. Abbreviations.

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

          The Company will furnish to any Holder upon written request and without charge a copy of the
Indenture. Requests may be made to Kansas City Southern de México, S.A. de C.V., Montes Urales No.
625, Col. Lomas de Chapultepec, Delegación Miguel Hidalgo, 11000, México D.F., Attention: Chief
Financial Officer.

A-10

 

[FORM OF TRANSFER NOTICE]

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

Insert Taxpayer Identification No.

 

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

 

the within Note and all rights thereunder, hereby irrevocably constituting and appointing

           
                     
                     
                   
                    
         attorney to transfer said Note on the books of the Company with full power
of substitution in the premises.

[THE FOLLOWING PROVISION TO BE INCLUDED

ON ALL NOTES OTHER THAN EXCHANGE NOTES,

OFFSHORE GLOBAL NOTES AND

OFFSHORE PHYSICAL NOTES]

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

[Check One]

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

or

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

A-11

 

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

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

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

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

	 	 	 
	Date: ___________
	 	                 
                      
                     
                
                     
                     
                                
	 
	 	NOTICE:   To be executed by an executive officer

A-12

 

OPTION OF HOLDER TO ELECT PURCHASE

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

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

Date:

Your Signature:           
                     
                     
              
                     
   
                     
                     
                          

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

Signature Guarantee:         
                     
                     
                     
        

A-13

 

EXHIBIT B

Form of Certificate

                                        ,                     

U.S. Bank National Association

Corporate Trust Services

225 Asylum Street, 23rd Floor

Hartford, CT 06103-1919

Attention: Michael M. Hopkins

          Re: Kansas City Southern de México, S.A. de C.V. (the “Company”)

8% Senior Notes due 2018

(the “Notes”)

Ladies and Gentlemen:

     This letter relates to U.S.$                     principal amount of Notes represented by a Note (the
“Legended Note”) which bears a legend outlining restrictions upon transfer of such Legended
Note. Pursuant to Section 2.02 of the Indenture dated as of January 22, 2010 (the
“Indenture”) relating to the Notes, we hereby certify that we are (or we will hold such
securities on behalf of) a person outside the United States to whom the Notes could be transferred
in accordance with Rule 904 of Regulation S promulgated under the U.S. Securities Act of 1933.
Accordingly, you are hereby requested to exchange the legended certificate for an unlegended
certificate representing an identical principal amount of Notes, all in the manner provided for in
the Indenture.

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

	 	 	 	 	 
	 	Very truly yours,

[Name of Holder]

 	 
	 
	 	By:  	 	 
	 	 	Authorized Signature 	 
	 	 	 	 
	 

B-1

 

EXHIBIT C

Form of Certificate to Be Delivered

in Connection with Transfers

Pursuant to Regulation S

                                        ,                     

U.S. Bank National Association

Corporate Trust Services

225 Asylum Street, 23rd Floor

Hartford, CT 06103-1919

Attention: Michael M. Hopkins

Re: Kansas City Southern de México, S.A. de C.V. (the “Company”)

8% Senior Notes due 2018

(the “Notes”)

Ladies and Gentlemen:

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

     (1) if the offer of the Notes was made prior to the expiration of the Distribution
compliance period, the offer of the Notes was not made to a U.S. person or for the account
or benefit of a U.S. person;

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

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

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

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

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

 C-1

 

Very truly yours,

[Name of Transferor]

	 	 	 	 	 
	 	 	 
	By:  	 	 
	 	Authorized Signature 	 
	 	 	 	 

 C-2

 

	 	 	 	 	 

EXHIBIT D

Form of Certificate to Be

Delivered in Connection with

Transfers to Non-QIB Accredited Investors

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

                                        ,                     

U.S. Bank National Association

Corporate Trust Services

225 Asylum Street, 23rd Floor

Hartford, CT 06103-1919

Attention: Michael M. Hopkins

Re: Kansas City Southern de México, S.A. de C.V. (the “Company”)

8% Senior Notes due 2018

(the “Notes”)

Dear Sirs:

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

     1. We understand that any subsequent transfer of the Notes is subject to
certain restrictions and conditions set forth in the Indenture dated as of January
22, 2010 relating to the Notes (the “Indenture”) and the undersigned agrees to be
bound by, and not to resell, pledge or otherwise transfer the Notes except in
compliance with, such restrictions and conditions and the Securities Act of 1933, as
amended (the “Securities Act”).

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

 D-1

 

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

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

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

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

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

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

	 	 	 	 	 
	 	

Very truly yours,

[Name of Transferee]

 	 
	 
	 	By:  	 	 
	 	 	Authorized Signature 	 
	 	 	 	 
	 

 D-2

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