Document:

Exhibit 10.2

 Exhibit 10.2 
 KANSAS CITY SOUTHERN DE MÉXICO, S.A. DE C.V. 
 $275,000,000

 2.350% Notes due 2020 
 and 
 $450,000,000 

3.000% Notes due 2023 
 PURCHASE AGREEMENT 
 April 24, 2013 

J.P. Morgan Securities LLC 
 Merrill Lynch, Pierce, Fenner & Smith Incorporated 
 Morgan
Stanley & Co. LLC 

 Purchase Agreement 
 April 24, 2013 
 J.P. MORGAN SECURITIES LLC 

383 Madison Avenue 
 New York, NY 10179

 MERRILL LYNCH, PIERCE, FENNER & SMITH 
                               INCORPORATED 

One Bryant Park 
 New York, NY 10036 

MORGAN STANLEY & CO. LLC 
 1585
Broadway 
 New York, NY 10036 

    as Representatives of the several Initial Purchasers 
 c/o MERRILL LYNCH, PIERCE, FENNER & SMITH 

                         
           INCORPORATED 
 One Bryant Park 

New York, NY 10036 
 Ladies and Gentlemen:

 Introductory. Kansas City Southern de México, S.A. de C.V., a sociedad anónima de capital variable
organized under the laws of the United Mexican States (“Mexico”) (the “Company”), proposes to issue and sell to the several initial purchasers named in Schedule A hereto (the “Initial Purchasers”), acting
severally and not jointly, the respective amounts set forth in such Schedule A of $275,000,000 aggregate principal amount of the Company’s 2.350% Notes due 2020 (the “2020 Notes”) and $450,000,000 aggregate principal amount of
the Company’s 3.000% Notes due 2023 (the “2023 Notes” and, together with the 2020 Notes, the “Notes”). J.P. Morgan Securities LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated and Morgan
Stanley & Co. LLC have agreed to act as representatives of the several Initial Purchasers (in such capacity, the “Representatives”) in connection with the offering and sale of the Notes. 

The 2020 Notes will be issued pursuant to an indenture, to be dated as of the Closing Date (as defined in Section 2 hereof) (the
“2020 Indenture”), between the Company and U.S. Bank National Association, as trustee (the “2020 Trustee”). The 2023 Notes will be issued pursuant to an indenture, to be dated as of the Closing Date (the “2023
Indenture” and, together with the 2020 Indenture, the “Indentures” and each, an “Indenture”), between the Company and U.S. Bank National Association, as trustee (the “2023 Trustee” and,
together with the 2020 Trustee, the “Trustee”). The Notes will be issued in book-entry form in the name of Cede & Co., as nominee of The Depository Trust Company (the “Depositary”). 

 The holders of the Notes will be entitled to the benefits of a registration rights
agreement, to be dated as of the Closing Date (the “Registration Rights Agreement”), among the Company and the Representatives, pursuant to which the Company will agree to file with the Securities and Exchange Commission (the
“Commission”), under the circumstances set forth therein, (i) a registration statement under the Securities Act of 1933, as amended, and the rules and regulations of the Commission promulgated thereunder (collectively, the
“Securities Act”) relating to two additional series of debt securities of the Company, one series with terms substantially identical to the 2020 Notes and one series with terms substantially identical to the 2023 Notes
(collectively, the “Exchange Notes”), to be offered in exchange for the applicable series of Notes (the “Exchange Offers”) and (ii) to the extent required by the Registration Rights Agreement, a shelf
registration statement pursuant to Rule 415 of the Securities Act relating to the resale by certain holders of the Notes, and in each case, to use its best efforts to cause such registration statements to be declared effective. 

The Company has prepared and delivered to each Initial Purchaser copies of a Preliminary Offering Memorandum, dated April 24, 2013
(the “Preliminary Offering Memorandum”), and has prepared and delivered to each Initial Purchaser copies of a Pricing Supplement, dated the date hereof (the “Pricing Supplement”) and attached as Exhibit B hereto,
describing the terms of the Notes, each for use by such Initial Purchaser in connection with its solicitation of offers to purchase the Notes. The Preliminary Offering Memorandum and the Pricing Supplement are herein referred to as the
“Pricing Disclosure Package.” Promptly after the time this purchase agreement (this “Agreement”) is executed by the parties hereto (the “Time of Execution”), the Company will prepare and deliver to
each Initial Purchaser a final offering memorandum dated the date hereof (the “Offering Memorandum”). 
 The
Company understands that the Initial Purchasers propose to make an offering of the Notes on the terms and in the manner set forth herein and in the Pricing Disclosure Package and agrees that the Initial Purchasers may resell, subject to the
conditions set forth herein, all or a portion of the Notes to purchasers (the “Subsequent Purchasers”) at any time after the Time of Execution. The Notes are to be offered and sold to or through the Initial Purchasers without being
registered with the Commission under the Securities Act, in reliance upon exemptions therefrom. Pursuant to the terms of the Notes and the Indentures, investors who acquire Notes shall be deemed to have agreed that Notes may only be resold or
otherwise transferred, after the date hereof, if such Notes are registered for sale under the Securities Act or if an exemption from the registration requirements of the Securities Act is available (including the exemptions afforded by Rule 144A
under the Securities Act (“Rule 144A”) or Regulation S under the Securities Act (“Regulation S”)). 
 All references in this Agreement to the Preliminary Offering Memorandum or the Offering Memorandum shall be deemed to mean and include any document that is filed with the Commission under the Securities
Exchange Act of 1934, as amended, and the rules and regulations of the Commission promulgated thereunder (collectively, the “Exchange Act”), prior to 4:30 p.m. New York City time on the date hereof (the “Initial Sale
Time”), and is or is deemed 

  
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to be incorporated by reference in the Preliminary Offering Memorandum or the Offering Memorandum, as the case may be; and all references in this Agreement to amendments and supplements to the
Preliminary Offering Memorandum or the Offering Memorandum shall be deemed to include the filing of any document under the Exchange Act after the Initial Sale Time and prior to the consummation of the offering of the Notes, which is or is deemed to
be incorporated by reference in the Preliminary Offering Memorandum or the Offering Memorandum, as the case may be. 
 The Company hereby
confirms its agreements with the Initial Purchasers as follows: 
 SECTION 1. Representations and Warranties
of the Company. 
 The Company hereby represents and warrants to each Initial Purchaser as of the date hereof and as of the
Closing Date (in each case, a “Representation Date”), as follows: 
 a) No Registration Required.
Subject to compliance by the Initial Purchasers with the representations and warranties set forth in Section 2 hereof and with the procedures set forth in Section 7 hereof, it is not necessary in connection with the offer, sale and
delivery of the Notes to the Initial Purchasers and to each Subsequent Purchaser in the manner contemplated by this Agreement and the Offering Memorandum to register the Notes under the Securities Act or, until such time as the Exchange Notes are
issued pursuant to an effective registration statement, to qualify the Indentures under the Trust Indenture Act of 1939, as amended, and the rules and regulations of the Commission promulgated thereunder (collectively, the “Trust Indenture
Act”). 
 b) No Integration of Offerings or General Solicitation. None of the Company, its affiliates (as such
term is defined in Rule 501 under the Securities Act and, for the avoidance of doubt, including Kansas City Southern (“KCS”)) (each, an “Affiliate”), or any person acting on its or any of their behalf (other than
the Initial Purchasers, as to whom the Company makes no representation or warranty) has, directly or indirectly, solicited any offer to buy or offered to sell, or will, directly or indirectly, solicit any offer to buy or offer to sell, in the United
States or to any United States citizen or resident, any security which is or would be integrated with the sale of the Notes in a manner that would require the Notes to be registered under the Securities Act. None of the Company, its Affiliates, or
any person acting on its or any of their behalf (other than the Initial Purchasers, as to whom the Company makes no representation or warranty) has engaged or will engage, in connection with the offering of the Notes, in any form of general
solicitation or general advertising within the meaning of Rule 502 under the Securities Act. With respect to those Notes sold in reliance upon Regulation S, (i) none of the Company, its Affiliates or any person acting on its or their behalf
(other than the Initial Purchasers, as to whom the Company makes no representation or warranty) has engaged or will engage in any directed selling efforts within the meaning of Regulation S and (ii) each of the Company and its Affiliates and
any person acting on its or their behalf (other than the Initial Purchasers, as to whom the Company makes no representation or warranty) has complied and will comply with the offering restrictions set forth in Regulation S. 

c) Eligibility for Resale under Rule 144A. The Notes are eligible for resale pursuant to Rule 144A and will not be, at the Closing
Date, of the same class as securities listed on a national securities exchange registered under Section 6 of the Exchange Act or quoted in a U.S. automated interdealer quotation system. 

  
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 d) Pricing Disclosure Package; Offering Memorandum; Company Additional Written
Communication. Neither the Pricing Disclosure Package, as of the Initial Sale Time, nor the Offering Memorandum, as of its date or (as amended or supplemented in accordance with Section 3(a), if applicable) as of the Closing Date, contains
or will contain an untrue statement of a material fact or omits or will omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; provided
that this representation shall not apply to statements in or omissions from the Pricing Disclosure Package, the Offering Memorandum or any amendment or supplement thereto made in reliance upon and in conformity with information furnished to the
Company in writing by any Initial Purchaser through the Representatives expressly for use in the Pricing Disclosure Package, the Offering Memorandum or amendment or supplement thereto, as the case may be, it being understood and agreed that the only
such information furnished by any Initial Purchaser through the Representatives consists of the information described as such in Section 8(b) hereof. The Pricing Disclosure Package contains, and the Offering Memorandum will contain, all the
information specified in, and meeting the requirements of, Rule 144A. The Company has not distributed and will not distribute, prior to the later of the Closing Date and the completion of the Initial Purchasers’ distribution of the Notes, any
offering material in connection with the offering and sale of the Notes other than (i) the Pricing Disclosure Package, (ii) the Offering Memorandum and (iii) any electronic road show or other written communications that, if the
offering of the Notes contemplated by this Agreement were conducted as a public offering pursuant to a registration statement filed under the Securities Act with the Commission, would constitute an “issuer free writing prospectus,” as
defined in Rule 433 under the Securities Act (collectively, “Company Additional Written Communication”) reviewed and consented to by the Representatives and listed on Annex I hereto. Each such Company Additional Written
Communication, when taken together with the Pricing Disclosure Package, did not as of the Initial Sale Time, and will not at the Closing Date, contain any untrue statement of a material fact or omit to state a material fact necessary in order to
make the statements therein, in the light of the circumstances under which they were made, not misleading; provided that this representation shall not apply to statements in or omissions from each such Company Additional Written Communication
made in reliance upon and in conformity with information furnished to the Company in writing by any Initial Purchaser through the Representatives expressly for use in any Company Additional Written Communication, it being understood and agreed that
the only such information furnished by any Initial Purchaser through the Representatives consists of the information described as such in Section 8(b) hereof. 
 e) Incorporated Documents. The documents incorporated or deemed to be incorporated by reference in the Pricing Disclosure Package or the Offering Memorandum at the time they were or hereafter are
filed with the Commission, complied or will comply in all material respects with the requirements of the Exchange Act. 
 f)
The Purchase Agreement. This Agreement has been duly authorized, executed and delivered by the Company. 

  
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 g) The Registration Rights Agreement. The Registration Rights Agreement has been duly
authorized and, on the Closing Date, will have been duly executed and delivered by, and will constitute a valid and binding agreement of, the Company, enforceable in accordance with its terms, except as the enforcement thereof may be limited by
applicable concurso mercantil, bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium or other similar laws now or hereafter in effect relating to or affecting the rights and remedies of creditors or by general equitable
principles (whether applied by a court of law or equity), including the principle that equitable remedies may be granted only at the discretion of the court before which any proceeding therefor may be brought (the “Enforceability
Exceptions”), and except as rights to indemnification under the Registration Rights Agreement may be limited by applicable law. 
 h) Authorization of the Indentures. Each of the Indentures has been duly authorized, and, on the Closing Date, will have been duly executed and delivered by the Company and will constitute a valid
and binding agreement of the Company, enforceable against the Company in accordance with its terms, except as the enforcement thereof may be limited by the Enforceability Exceptions. 

i) Authorization of the Notes and Exchange Notes. The Notes to be purchased by the Initial Purchasers from the Company will be, at
the Closing Date, in the form contemplated by the applicable Indenture, have been duly authorized for issuance and sale pursuant to this Agreement and the applicable Indenture and, at the Closing Date, will have been duly executed by the Company
and, when authenticated in the manner provided for in the applicable Indenture and delivered against payment of the purchase price therefor, will constitute valid and binding obligations of the Company, enforceable in accordance with their terms,
except as the enforcement thereof may be limited by the Enforceability Exceptions, and will be entitled to the benefits of the applicable Indenture. The Exchange Notes when duly and validly authorized for issuance by the Company, and issued and
authenticated in accordance with the terms of the applicable Indenture, the Registration Rights Agreement and the Exchange Offer, will constitute valid and binding obligations of the Company, enforceable against the Company in accordance with their
terms, except as the enforcement thereof may be limited by the Enforceability Exceptions and will be entitled to the benefits of the applicable Indenture. 
 j) Description of the Notes, the Indentures and the Registration Rights Agreement. The Notes, the Indentures and the Registration Rights Agreement conform in all material respects to the
descriptions thereof contained in the Pricing Disclosure Package and the Offering Memorandum. 
 k) Accuracy of
Statements. The statements in, or incorporated by reference in, each of the Pricing Disclosure Package and the Offering Memorandum under the captions “Description of Notes” and “Taxation—Material U.S. Federal Income
Taxation,” in each case insofar as such statements constitute a summary of the legal matters, documents or proceedings referred to therein, fairly present and summarize, in all material respects, the matters referred to therein. 

l) No Material Adverse Change. Except as otherwise disclosed in the Pricing Disclosure Package, subsequent to the respective dates
as of which information is given in the 

  
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Pricing Disclosure Package, there has been no material adverse change, or any development that could reasonably be expected to result in a material adverse change, in the condition, financial or
otherwise, or in the earnings, business, properties, results of operations or prospects, whether or not arising from transactions in the ordinary course of business, of the Company and its subsidiaries, considered as one entity (any such change is
called a “Material Adverse Change”). 
 m) Independent Accountants. KPMG LLP (“KPMG”),
who have audited the consolidated financial statements of the Company and its subsidiaries and delivered their report with respect to the consolidated financial statements of the Company and its subsidiaries for the fiscal years ended
December 31, 2010, December 31, 2011 and December 31, 2012, incorporated by reference in the Pricing Disclosure Package and the Offering Memorandum, are independent public accountants with respect to the Company within the
meaning and as required by the Securities Act, the Exchange Act and the applicable rules and regulations published thereunder and are an independent registered public accounting firm with the Public Company Accounting Oversight Board. 

n) Preparation of the Financial Statements. The financial statements together with the related notes thereto, incorporated by
reference in the Pricing Disclosure Package and the Offering Memorandum, present fairly the consolidated financial position of the Company and its subsidiaries as of and at the dates indicated and the results of their operations and cash flows for
the periods specified. Such financial statements have been prepared in conformity with generally accepted accounting principles (“GAAP”) as applied in the United States applied on a consistent basis throughout the periods involved,
except as may be expressly stated in the related notes thereto. The interactive data in eXtensible Business Reporting Language included or incorporated by reference in the Pricing Disclosure Package and the Offering Memorandum fairly presents the
information called for in all material respects and is prepared in accordance with the Commission’s rules and guidelines applicable thereto. 
 o) Incorporation and Good Standing of the Company and its Subsidiaries. Each of the Company and its significant subsidiaries (as defined in Rule 1-02(10) of Regulation S-X, the “Significant
Subsidiaries”) has been duly incorporated or formed, as applicable, and is validly existing as a corporation, limited liability company, sociedad anónima de capital variable or sociedad de responsabilidad limitada de
capital variable, as applicable, in good standing under the laws of the jurisdiction of its incorporation or formation, as applicable, and has corporate, limited liability company or other similar power and authority to own or lease, as the case
may be, and operate its properties and to conduct its business as described in the Pricing Disclosure Package and the Offering Memorandum and, in the case of the Company, to enter into and perform its obligations under this Agreement. Each of the
Company and each Significant Subsidiary is duly qualified as a foreign corporation or limited liability company, as applicable, to transact business and is in good standing in each jurisdiction in which such qualification is required, whether by
reason of the ownership or leasing of property or the conduct of business, except for such jurisdictions where the failure to so qualify or to be in good standing would not, individually or in the aggregate, have a material adverse effect
(i) on the condition, financial or otherwise, or in the earnings, business, properties, results of operations or prospects, whether or not arising from transactions in the ordinary course of business, of the Company and its subsidiaries,
considered as one entity or (ii) the ability of the Company to perform its obligations 

  
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under, and consummate the transactions contemplated by, this Agreement, the Registration Rights Agreement, the Indentures and the Notes (each, a “Material Adverse Effect”). All
of the issued and outstanding shares (acciones) of the Company have been duly authorized and validly issued, are fully paid and nonassessable and are owned by KCS, directly or through its subsidiaries, free and clear of any security interest,
mortgage, pledge, lien, encumbrance or claim. All of the issued and outstanding shares (acciones) or equity quotas (partes sociales) of each Significant Subsidiary have been duly authorized and validly issued, are fully paid and
nonassessable and are owned by the Company, directly or through subsidiaries, or by affiliates of the Company, free and clear of any security interest, mortgage, pledge, lien, encumbrance or claim, other than the shares (acciones) or equity
quotas (partes sociales) representing 100% of the stated capital (capital social) of the Company’s subsidiaries, Arrendadora KCSM, S. de R.L. de C.V., and Highstar Harbor Holdings México, S. de R.L. de C.V., and the Company’s
indirect subsidiaries MTC Puerta México, S. de R.L. de C.V. and Vamos a México, S.A. de C.V., which have been pledged by the Company, its subsidiaries and affiliates as collateral for the Second Amended and Restated Credit Agreement,
dated as of November 29, 2012, among the Company, the various financial institutions and other persons from time to time party thereto and JPMorgan Chase Bank, N.A., as administrative agent and collateral agent, J.P. Morgan Securities LLC
and Merrill Lynch, Pierce, Fenner & Smith, Incorporated, as joint lead arrangers and joint bookrunners and certain other financial institutions party thereto. The Company does not have any subsidiary not listed on Schedule B hereto.

 p) No Conflicts. The Company’s execution, delivery and performance of this Agreement, the Indentures, the
Registration Rights Agreement and the Notes (the “Transaction Documents”) and the consummation of the transactions contemplated hereby and thereby, by the Pricing Disclosure Package and by the Offering Memorandum, including, without
limitation, the application of the proceeds from the sale of the Notes as described in the Pricing Disclosure Package and the Offering Memorandum (i) have been duly authorized by all necessary corporate action and will not result in any
violation of the Charter Documents of the Company or any Significant Subsidiary, (ii) will not conflict with or constitute a breach of, or default or a Debt Repayment Triggering Event (as defined below) under, or result in the creation or
imposition of any lien, charge or encumbrance upon any property or assets of the Company or any of its Significant Subsidiaries pursuant to, or require the consent of any other party to, any indenture, mortgage, loan or credit agreement, deed of
trust, note, contract, franchise, lease or other agreement or instrument to which the Company or any of its Significant Subsidiaries is a party or by which it or any of them may be bound or to which any of the property or assets of the Company or
any of its Significant Subsidiaries is subject (each, an “Existing Instrument”), and (iii) will not result in any violation of the Concession or any statute, law, rule, regulation, judgment, order or decree applicable to the
Company or any of its Significant Subsidiaries, of any court, regulatory body, administrative agency or governmental body having jurisdiction over the Company or any of its Significant Subsidiaries or any of its or their properties, as applicable,
except, with respect to clauses (ii) and (iii) only, for such defaults or violations as would not, individually or in the aggregate, result in a Material Adverse Effect. As used herein, a “Debt Repayment Triggering Event”
means any event or condition which gives, or with the giving of notice or lapse of time or both would give, the holder of any note, debenture or other evidence of indebtedness (or any person acting on such holder’s behalf) issued by the
Company, the right to require the repurchase, redemption or repayment of all or a portion of such indebtedness by the Company or any of its Significant Subsidiaries. 

  
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 q) No Further Authorizations or Approvals Required. No consent, approval,
authorization or other order of, or registration or filing with, any court or other governmental or regulatory authority or agency is required for the Company’s execution, delivery or performance of this Agreement or the Registration Rights
Agreement or consummation of the transactions contemplated hereby or thereby, except (i) such as have been obtained or made by the Company and are in full force and effect under the Securities Act or applicable state securities or blue sky
laws, (ii) such as may be required by the securities laws of the several states of the United States, (iii) such as may be required by U.S. federal and state securities laws with respect to the Company’s obligations under the
Registration Rights Agreement and (iv) the filing of a notice with the Comisión Nacional Bancaria y de Valores of Mexico (the “CNBV”) regarding the issuance of the Notes and the terms thereof, such filing to be
delivered by the Company to the CNBV prior to the Closing Date and a supplemental notice to be given to the CNBV within five business days after Closing Date. 
 r) Valid Concession. The Company holds a valid concession title granted on December 2, 1996 for a period of 50 years, which may be renewed under certain conditions for an additional period of
up to 50 years, to provide freight transportation services over its rail lines as described in the Pricing Disclosure Package and the Offering Memorandum (the “Concession”). The Concession is currently, and has at all times since
its granting been, in full force and effect and no proceeding to revoke, suspend or lapse the effectiveness of the Concession is pending before or, to the Company’s knowledge, threatened by any Mexican federal governmental authority. Neither
the Company nor any of its subsidiaries is in violation of the Concession, except for such violations as would not, individually or in the aggregate result in a Material Adverse Effect. Except for the rights held by the government of Mexico as
described in the Pricing Disclosure Package and the Offering Memorandum, the Concession and the Company’s rights deriving therefrom are free and clear of any liens and encumbrances. 

s) No Material Actions or Proceedings. Except as disclosed in the Pricing Disclosure Package and the Offering Memorandum, there
are no legal or governmental actions, suits or proceedings pending or, to the Company’s knowledge, threatened (i) against or affecting the Company or any of its subsidiaries or (ii) which have as the subject thereof any officer or
director of, or property owned or leased by, the Company or any of its subsidiaries, where any such action, suit or proceeding, if determined adversely to the Company or such subsidiary, would, individually or in the aggregate, have a Material
Adverse Effect. 
 t) Regulation S. The Company, its affiliates and all persons acting on its of their behalf (other than
the Initial Purchasers, as to whom the Company makes no representation) have complied with and will comply with the offering restrictions requirements of Regulation S in connection with the offering of the Notes outside the United States.

 u) Tax Law Compliance. The Company and its subsidiaries have filed all necessary federal, state, local and foreign
income and franchise tax returns in a timely manner and have paid all taxes required to be paid by any of them and, if due and payable, any related or similar assessment, fine or penalty levied against any of them, except for any taxes, assessments,
fines or 

  
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penalties as may be being contested in good faith and by appropriate proceedings, except where a default to make such filings or payments would not, individually or in the aggregate, have a
Material Adverse Effect. The Company has made appropriate provisions in the applicable financial statements referred to in Section 1(n) above in respect of all federal, state, local and foreign income and franchise taxes for all current or
prior periods as to which the tax liability of the Company or any of its subsidiaries has not been finally determined. 
 v)
No Withholding Tax. Except as described in the Pricing Disclosure Package and the Offering Memorandum (i) payments in respect of the Transaction Documents (including the transfer, sale and delivery of the Notes), are not subject under
the current laws of any applicable jurisdiction or any political subdivision thereof or therein to any withholdings or similar charges for or on account of taxation or otherwise other than taxes imposed on the income or gain of the Initial
Purchasers whose net income or gains are otherwise subject to any tax by Mexico or any political subdivision thereof or therein, and (ii) payments made to a Foreign Holder (as defined in the Pricing Disclosure Package and the Offering
Memorandum) by the Company under the Notes will not be subject under the current laws of Mexico or any political subdivision thereof to any withholdings or similar charges for or on account of taxation. 

w) Company Not an Investment Company. The Company is not, and after receipt of payment for the Notes and the application of the
proceeds thereof as contemplated under the caption “Use of Proceeds” in the Pricing Disclosure Package and the Offering Memorandum will not be, required to register as an “investment company” within the meaning of the Investment
Company Act. 
 x) No Unlawful Contributions or Other Payments. None of the Company, any of its subsidiaries or, to the
best of the Company’s knowledge, any director, officer, agent, employee or affiliate of the Company or any of its subsidiaries is aware of or has taken any action, directly or indirectly, that would result in a violation by such persons of
either (i) the Foreign Corrupt Practices Act of 1977, as amended, and the rules and regulations thereunder (the “FCPA”), including, without limitation, making use of the mails or any means or instrumentality of interstate
commerce corruptly in furtherance of an offer, payment, promise to pay or authorization of the payment of any money, or other property, gift, promise to give, or authorization of the giving of anything of value to any “foreign official”
(as such term is defined in the FCPA) or any foreign political party or official thereof or any candidate for foreign political office, in contravention of the FCPA or (ii) the U.K. Bribery Act 2010 (the “Bribery Act”), and the
Company, its subsidiaries and, to the best of the Company’s knowledge, its affiliates have conducted their businesses in compliance with the FCPA and the Bribery Act and have instituted and maintain policies and procedures designed to ensure,
and which are reasonably expected to continue to ensure, continued compliance therewith. 
 y) No Conflict with Money
Laundering Laws. The operations of the Company and its subsidiaries are and have been conducted at all times in compliance in all material respects with applicable financial recordkeeping and reporting requirements of the Currency and Foreign
Transactions Reporting Act of 1970, as amended, the money laundering statutes of all applicable jurisdictions, including, without limitation, Mexico, the rules and regulations thereunder and any related or similar rules, regulations or guidelines
issued, administered or enforced by any 

  
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governmental agency (collectively, the “Money Laundering Laws”) and no action, suit or proceeding by or before any court or governmental agency, authority or body or any
arbitrator involving the Company or any of its subsidiaries with respect to the Money Laundering Laws is pending or, to the best of the Company’s knowledge, threatened. 
 z) No Conflict with OFAC Laws. None of the Company, any of its subsidiaries or, to the knowledge of the Company, any director, officer, agent, employee, affiliate or representative of the Company
or any of its subsidiaries is an individual or entity (“Person”) currently the subject or target of any sanctions administered or enforced by the United States Government, including, without limitation, the U.S. Department of the
Treasury’s Office of Foreign Assets Control (“OFAC”), the United Nations Security Council (“UNSC”), the European Union, Her Majesty’s Treasury (“HMT”), or other relevant sanctions
authority (collectively, “Sanctions”), nor is the Company located, organized or resident in a country or territory that is the subject of Sanctions; and the Company will not directly or indirectly use the proceeds of the sale of the
Notes, or lend, contribute or otherwise make available such proceeds to any subsidiaries, joint venture partners or other Person, to fund any activities of or business with any Person, or in any country or territory, that, at the time of such
funding, is the subject of Sanctions or in any other manner that will result in a violation by any Person (including any Person participating in the transaction, whether as underwriter, advisor, investor or otherwise) of Sanctions. 

aa) Internal Controls and Procedures. The Company maintains a system of internal accounting controls over financial reporting (as
such term is defined in Rule 13a-15(f) under the Exchange Act) sufficient to provide reasonable assurance that (i) transactions are executed in accordance with management’s general or specific authorizations; (ii) transactions are
recorded as necessary to permit preparation of financial statements in conformity with generally accepted accounting principles and to maintain asset accountability; (iii) access to assets is permitted only in accordance with management’s
general or specific authorization; (iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences; and (v) the interactive data in
eXtensible Business Reporting Language included or incorporated by reference in the Pricing Disclosure Package and the Offering Memorandum fairly presents the information called for in all material respects and is prepared in accordance with the
Commission’s rules and guidelines applicable thereto. Except as disclosed in the Pricing Disclosure Package and the Offering Memorandum, since the end of the Company’s most recent audited fiscal year, there has been no material weakness or
significant deficiencies in the Company’s internal control over financial reporting (whether or not remediated). 
 bb)
No Immunity from Jurisdiction. The Company and each of its subsidiaries have no immunity from jurisdiction of any court of (i) any jurisdiction in which they own or lease property or assets, (ii) the United States or the State of
New York or (iii) Mexico or any political subdivision thereof or from any legal process (whether through service of notice, attachment prior to judgment, attachment in aid of execution, execution or otherwise) with respect to themselves or
their property and assets or this Agreement, the Indentures or the Registration Rights Agreement or actions to enforce judgments in respect thereof. 

  
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 cc) Submission to Jurisdiction. The Company has validly, legally, effectively and
irrevocably submitted to the personal jurisdiction of any state or Federal court in the Borough of Manhattan, The City of New York, New York, has validly, legally, effectively and irrevocably waived any objection to the venue of a proceeding in any
such court, and has validly, legally, effectively and irrevocably appointed CT Corporation as its authorized agent for service of process. 
 Any certificate signed by an officer of the Company and delivered to the Representatives or to counsel for the Initial Purchasers shall be deemed to be a representation and warranty by the Company to each
Initial Purchaser as to the matters set forth therein. 
 SECTION 2. Purchase, Sale and Delivery
of the Notes. 
 a) The Notes. The Company agrees to issue and sell to the several Initial Purchasers, severally and
not jointly, all of the Notes upon the terms herein set forth. On the basis of the representations, warranties and agreements herein contained, and upon the terms but subject to the conditions herein set forth, the Initial Purchasers agree,
severally and not jointly, to purchase from the Company the aggregate principal amount of Notes set forth opposite their names on Schedule A at a purchase price of 99.259% of the principal amount of the 2020 Notes and 98.937% of the principal amount
of the 2023 Notes, in each case, payable on the Closing Date. 
 b) The Closing Date. Delivery of certificates for the
Notes in global form to be purchased by the Initial Purchasers and payment therefor shall be made at the offices of Shearman & Sterling LLP, 599 Lexington Avenue, New York, NY 10022 (or such other place as may be agreed to by the Company
and the Representatives) at 9:00 a.m., New York City time, on May 3, 2013, or such other time and date as the Representatives and the Company shall mutually agree (the time and date of such closing are called the “Closing
Date”). 
 c) Offering of the Notes. The Representatives hereby advise the Company that the Initial Purchasers
intend to offer for sale, as described in the Pricing Disclosure Package and the Offering Memorandum, their respective portions of the Notes as soon after the Time of Execution as the Representatives, in their sole judgment, have determined is
advisable and practicable. 
 d) Delivery of the Notes. The Company shall deliver, or cause to be delivered, to the
Representatives for the accounts of the several Initial Purchasers certificates for the Notes on the Closing Date, against the irrevocable release of a wire transfer of immediately available funds to the order of the Company at such bank account or
accounts as the Company shall designate to the Representatives for the amount of the purchase price therefor. The certificates for the Notes shall be registered in such names and denominations as the Representatives shall have requested at least two
full business days prior to the Closing Date and shall be made available for inspection on the business day preceding the Closing Date at a location in New York City, as the Representatives may designate. 

  
 11 

 e) Initial Purchasers as Qualified Institutional Buyers. Each Initial Purchaser,
severally and not jointly, represents and warrants to, and agrees with, the Company that: 
  

	 	(i)	it is a “qualified institutional buyer” within the meaning of Rule 144A (a “Qualified Institutional Buyer”); 

 

	 	(ii)	it will offer and sell the Notes only to (a) persons it reasonably believes are Qualified Institutional Buyers in transactions meeting the requirements of Rule
144A or (b) upon the terms and conditions set forth in Annex II hereto; 

  

	 	(iii)	it will not offer or sell the Notes by any form of general solicitation or general advertising, including, but not limited to, the methods described in Rule 502(c)
under the Securities Act; and 

  

	 	(iv)	it will offer and sell the Notes (a) as part of its distribution at any time and (b) otherwise until 40 days after the later of the commencement of the
offering and the Closing Date, only in accordance with Rule 903 of Regulation S or as otherwise permitted by this Agreement; accordingly, neither such Initial Purchaser, its affiliates nor any persons acting on its or their behalf have engaged or
will engage in any directed selling efforts (within the meaning of Regulation S) with respect to the Notes, and any such Initial Purchaser, its affiliates and any such persons have complied and will comply with the offering restrictions requirement
of Regulation S. 

 SECTION 3. Covenants of the Company. 

The Company covenants and agrees with each Initial Purchaser as follows: 

a) Preparation of Offering Memorandum; Initial Purchasers’ Review of Proposed Amendments and Supplements. As promptly as
practicable following the Time of Execution and in any event not later than the second business day following the date hereof, the Company will prepare and deliver to the Initial Purchasers the Offering Memorandum, which shall consist of the
Preliminary Offering Memorandum as modified only by the information contained in the Pricing Supplement and other immaterial changes as agreed to by the Representatives (or their counsel). The Company will not amend or supplement the Preliminary
Offering Memorandum, the Pricing Supplement or the Offering Memorandum prior to the Closing Date unless the Initial Purchasers shall previously have been furnished a copy of the proposed amendment or supplement at least one business day prior to the
proposed use or filing, and shall not have objected to such amendment or supplement. 
 b) Amendments and Supplements to the
Offering Memorandum and Other Securities Act Matters. If, prior to the later of (x) the Closing Date and (y) the completion of the placement of the Notes by the Initial Purchasers with the Subsequent Purchasers, in the reasonable
judgment of the Company or the Representatives, (i) any event shall occur or condition exist as a result of which the Pricing Disclosure Package or the Offering Memorandum, as applicable, as then amended or supplemented, would include any
untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein, in the light of the 

  
 12 

 
circumstances under which they were made, not misleading, or (ii) it is otherwise necessary to amend or supplement the Offering Memorandum to comply with applicable law, the Company agrees
to promptly prepare (subject to Section 3 hereof), file with the Commission and furnish at its own expense to the Initial Purchasers, amendments or supplements to the Pricing Disclosure Package or the Offering Memorandum, as applicable, so that
the statements in the Pricing Disclosure Package and the Offering Memorandum, as applicable, as so amended or supplemented will not, in the light of the circumstances under which they were made, be misleading or so that the Pricing Disclosure
Package or the Offering Memorandum, as applicable, as amended or supplemented, will comply with all applicable law. 
 c)
Copies of the Offering Memorandum. The Company agrees to furnish the Initial Purchasers, without charge, as many copies of the Pricing Disclosure Package and the Offering Memorandum and any amendments and supplements thereto as they shall
have reasonably requested. 
 d) Blue Sky Compliance. The Company shall cooperate with the Representatives and counsel
for the Initial Purchasers to qualify or register the Notes for sale under (or obtain exemptions from qualification or registration under) the state securities or blue sky laws of those jurisdictions designated by the Representatives, shall comply
with such laws and shall continue such qualifications, registrations and exemptions in effect so long as required for the distribution of the Notes. The Company shall not be required to qualify to transact business or to take any action that would
subject it to general service of process in any such jurisdiction where it is not presently qualified or where it would be subject to taxation as a foreign business. The Company will advise the Representatives promptly of the suspension of the
qualification or registration of (or any such exemption relating to) the Notes for offering, sale or trading in any jurisdiction or any initiation or threat of any proceeding for any such purpose, and in the event of the issuance of any order
suspending such qualification, registration or exemption, the Company shall use its reasonable best efforts to obtain the withdrawal thereof at the earliest possible moment. 
 e) Use of Proceeds. The Company shall apply the net proceeds from the sale of the Notes sold by it in the manner described under the caption “Use of Proceeds” in the Pricing Disclosure
Package and the Offering Memorandum. 
 f) Depositary. The Company will cooperate with the Initial Purchasers and use its
best efforts to permit the Notes to be eligible for clearance and settlement through the facilities of the Depositary. 
 g)
Periodic Reporting Obligations. Prior to the completion of the placement of the Notes by the Initial Purchasers with the Subsequent Purchasers, the Company shall file, on a timely basis, with the Commission all reports and documents required
to be filed under Section 13 or 15 of the Exchange Act. Additionally, at any time when the Company is not subject to Section 13 or 15 of the Exchange Act, for the benefit of holders and beneficial owners from time to time of the Notes, the
Company shall furnish, at its expense, upon request, to holders and beneficial owners of Notes and prospective purchasers of Notes information satisfying the requirements of Rule 144A(d). 

  
 13 

 h) Agreement Not to Offer or Sell Additional Securities. During the period commencing
on the date hereof and ending on the Closing Date, the Company will not, without the prior written consent of the Representatives (which consent may be withheld at the sole discretion of the Representatives), directly or indirectly, sell, offer,
contract or grant any option to sell, pledge, transfer or establish an open “put equivalent position” within the meaning of Rule 16a-1(h) under the Exchange Act, or otherwise dispose of or transfer, or announce the offering of, or file any
registration statement under the Securities Act in respect of, any debt securities of the Company similar to the Notes or securities exchangeable for or convertible into debt securities similar to the Notes (other than as contemplated by this
Agreement with respect to the Notes). 
 i) No Integration. The Company agrees that it will not and will cause its
Affiliates not to make any offer or sale of securities of the Company of any class if, as a result of the doctrine of “integration” referred to in Rule 502 under the Securities Act, such offer or sale would render invalid (for the purpose
of (i) the sale of the Notes by the Company to the Initial Purchasers, (ii) the resale of the Notes by the Initial Purchasers to Subsequent Purchasers or (iii) the resale of the Notes by such Subsequent Purchasers to others) the
exemption from the registration requirements of the Securities Act provided by Section 4(2) thereof or by Rule 144A or by Regulation S thereunder or otherwise. 
 j) No Restricted Resales. During the period of one year after the Closing Date, the Company will not, and will not permit any of its affiliates (as defined in Rule 144 under the Securities Act) to
resell any of the Notes which constitute “restricted securities” under Rule 144 that have been reacquired by any of them, except pursuant to an effective registration statement under the Securities Act. 

k) Regulation S Compliance. The Notes sold in reliance on Regulation S will be represented upon issuance by a temporary global
security that may not be exchanged for definitive securities until the expiration of the 40-day restricted period referred to in Rule 903 of the Securities Act and only upon certification of beneficial ownership of such Notes by non-U.S. persons or
U.S. persons who purchased such Notes in transactions that were exempt from the registration requirements of the Securities Act. 
 l) Legended Securities. Each certificate for a Note will bear the legend contained in “Transfer Restrictions” in the Pricing Disclosure Package and the Offering Memorandum for the time
period and upon the other terms stated in the Pricing Disclosure Package and the Offering Memorandum. 
 m) No Manipulation
of Price. The Company will not take, directly or indirectly, any action designed to cause or result in, or that has constituted or might reasonably be expected to constitute, under the Exchange Act or otherwise, the stabilization or manipulation
of the price of any securities of the Company to facilitate the sale or resale of the Notes. 
 n) Listing. The Company
will use its reasonable best efforts to effect the admission to trading and listing of the Notes and the Exchange Notes on the Global Exchange Market of the Irish Stock Exchange and to maintain the trading and listing of the Notes and the Exchange

  
 14 

 
Notes on the Global Exchange Market of the Irish Stock Exchange for so long as such Notes and Exchange Notes are outstanding, and to have the Notes and the Exchange Notes admitted to trading on
the Global Exchange Market of the Irish Stock Exchange as promptly as practicable after the date hereof, and in any event prior to the date of the first interest payment on the Notes and Exchange Notes, as applicable. The Company agrees to supply to
the Irish Stock Exchange copies of the Preliminary Offering Memorandum and the Offering Memorandum and such other documents, information and undertakings as may be required for the purpose of obtaining and maintaining such listing. 

The Representatives, on behalf of the several Initial Purchasers, may, in their sole discretion, waive in writing the performance by the
Company of any one or more of the foregoing covenants or extend the time for their performance. 

SECTION 4. Payment of Expenses. The Company agrees to pay the following costs, fees and expenses
incurred in connection with the performance of its obligations hereunder and in connection with the transactions contemplated hereby: (i) all expenses incident to the issuance and delivery of the Notes and the Exchange Notes (including all
printing costs), (ii) all necessary issue, transfer and other stamp taxes in connection with the issuance and sale of the Notes and the Exchange Notes, (iii) all fees and expenses of the Company’s counsel, independent public or
certified public accountants and other advisors to the Company, (iv) all costs and expenses incurred in connection with the preparation, printing, filing, shipping and distribution of the Pricing Disclosure Package and the Offering Memorandum
(including financial statements and exhibits), and all amendments and supplements thereto, and this Agreement, the Registration Rights Agreement, the Indentures, the Notes and the Exchange Notes, (v) all filing fees, attorneys’ fees and
expenses incurred by the Company or the Initial Purchasers in connection with qualifying or registering (or obtaining exemptions from the qualification or registration of) all or any part of the Notes for offer and sale under the state securities or
blue sky laws and preparing a “Blue Sky Survey” or memorandum, and any supplements thereto, (vi) the fees and expenses, if any, incurred in connection with the admission of the Notes for trading in any appropriate market system,
including any cost incurred in connection with the listing of the Notes on the Global Exchange Market of the Irish Stock Exchange, (vii) the fees and expenses of the Trustee, including the fees and disbursements of counsel for the Trustee in
connection with the Indentures, the Notes and the Exchange Notes, (viii) any fees payable in connection with the rating of the Notes or the Exchange Notes with the ratings agencies, (ix) all fees and expenses (including reasonable fees and
expenses of counsel) of the Company in connection with approval of the Notes or the Exchange Notes by the Depositary for “book-entry” transfer and (x) all other fees, costs and expenses incurred in connection with the performance of
its obligations hereunder for which provision is not otherwise made in this Section 4. Except as provided in this Section 4 and Sections 6, 8 and 9 hereof, the Initial Purchasers shall pay their own expenses, including the fees and
disbursements of their counsel. 

  
 15 

 SECTION 5. Conditions of the Obligations of the Initial
Purchasers. The obligations of the several Initial Purchasers to purchase and pay for the Notes as provided herein on the Closing Date shall be subject to the accuracy of the representations and warranties on the part of the Company set forth in
Section 1 hereof as of each Representation Date and to the timely performance by the Company of its covenants and other obligations hereunder, and to each of the following additional conditions: 

a) Accountants’ Comfort Letter. On the date hereof, the Representatives shall have received from KPMG, independent registered
public accountants for the Company, a letter dated the date hereof addressed to the Initial Purchasers, in form and substance satisfactory to the Representatives with respect to the audited and unaudited financial statements and certain financial
information contained in the Pricing Disclosure Package and the Offering Memorandum. 
 b) Bring-down Comfort Letter. On
the Closing Date, the Representatives shall have received from KPMG, independent registered public accountants for the Company, a letter dated such date, in form and substance satisfactory to the Representatives, to the effect that they reaffirm the
statements made in the letter furnished by them pursuant to subsection (a) of this Section 5, except that the specified date referred to therein for the carrying out of procedures shall be no more than three business days prior to the
Closing Date. 
 c) No Material Adverse Change or Ratings Agency Change. For the period from and after the date of this
Agreement and prior to the Closing Date: 
 (i) in the judgment of the Representatives, there shall not have
occurred any Material Adverse Change that makes it impracticable or inadvisable to proceed with the offer, sale or delivery of the Notes; 
 (ii) there shall not have been any change or decrease specified in the letter or letters referred to in paragraph (b) of this Section 5 which is, in the sole judgment of the Representatives, so
material and adverse as to make it impractical or inadvisable to proceed with the offering or delivery of the Notes as contemplated by the Pricing Disclosure Package and the Offering Memorandum; and 

(iii) there shall not have occurred any downgrading in or withdrawal of, nor shall any notice have been given of any
intended or potential downgrading or withdrawal or of any review for a possible change that does not indicate the direction of the possible change, the rating accorded any securities of the Company by any “nationally recognized statistical
rating organization” as such term is defined in Section 3(a)(62) of the Exchange Act. 
 d) Authorizations and
Approvals. The Company shall have obtained all consents, approvals, authorizations and orders of, and shall have duly made all registrations, qualifications and filings with, any court or regulatory authority or other governmental agency or
instrumentality, including without limitation the CNBV, required in connection with the issuance and sale of the Notes and the execution, delivery and performance of this Agreement except for a supplemental filing to be made by the Company with the
CNBV after the Closing Date. 

  
 16 

 e) Opinions of Counsel for the Company. On the Closing Date, the Representatives
shall have received: 
  

	 	(i)	an opinion of White & Case LLP, outside U.S. counsel for the Company, dated as of such Closing Date, in a form reasonably acceptable to the Representatives;

  

	 	(ii)	an opinion of White & Case, S.C., outside Mexican counsel for the Company, dated as of such Closing Date, in a form reasonably acceptable to the
Representatives; and 

  

	 	(iii)	an in-house legal opinion from Edgar Aguileta Gutiérrez, Associate General Counsel and Alternate Corporate Secretary of the Company, dated as of such Closing
Date, in a form reasonably acceptable to the Representatives. 

 f) Opinions of Counsel for the Initial
Purchasers. On the Closing Date, the Representatives shall have received: 
  

	 	(i)	an opinion of Shearman & Sterling LLP, U.S. counsel for the counsel for the Initial Purchasers, dated as of such Closing Date, with respect to such matters as
may be reasonably requested by the Initial Purchasers; and 

  

	 	(ii)	an opinion of Raz Guzmán, S.C., Mexican counsel for the Initial Purchasers, dated as of such Closing Date, with respect to such matters as may be reasonably
requested by the Initial Purchasers. 

 g) Officers’ Certificate. On the Closing Date, the
Representatives shall have received a written certificate executed by an attorney-in-fact of the Company, who is an executive officer of KCS, dated as of such Closing Date, to the effect that: 

 

	 	(i)	the representations, warranties and covenants of the Company set forth in Section 1 of this Agreement are true and correct with the same force and effect as though
expressly made on and as of such Closing Date; and 

  

	 	(ii)	the Company has complied with all the agreements hereunder and satisfied all the conditions on its part to be performed or satisfied hereunder at or prior to such
Closing Date. 

 h) Registration Rights Agreement. The Company shall have entered into the Registration
Rights Agreement and the Initial Purchasers shall have received an executed copy thereof. 
 i) Indentures and Notes. As
of the Closing Date, the Company and the Trustee shall have entered into the Indentures and the Notes and the Initial Purchasers shall have received executed copies thereof. 

  
 17 

 j) Additional Documents. On or before the Closing Date, the Representatives and
counsel for the Initial Purchasers shall have received such information, documents and opinions as they may reasonably require for the purposes of enabling them to pass upon the issuance and sale of the Notes as contemplated herein, or in order to
evidence the accuracy of any of the representations and warranties, or the satisfaction of any of the conditions or agreements, herein contained. 
 If any condition specified in this Section 5 is not satisfied when and as required to be satisfied, this Agreement may be terminated by the Representatives by notice to the Company at any time on or
prior to the Closing Date, which termination shall be without liability on the part of any party to any other party, except that Sections 4, 6, 8, 9 and 17 shall at all times be effective and shall survive such termination. 

SECTION 6. Reimbursement of Initial Purchasers’ Expenses. If this Agreement is terminated by the
Representatives pursuant to Section 5, 10 or 11 hereof, or if the sale to the Initial Purchasers of the Notes on the Closing Date is not consummated because of any refusal, inability or failure on the part of the Company to perform any
agreement herein or to comply with any provision hereof, the Company agrees to reimburse the Initial Purchasers, severally, upon demand for all out-of-pocket expenses that shall have been reasonably incurred by the Initial Purchasers in connection
with the proposed purchase and the offering and sale of the Notes, including but not limited to fees and disbursements of counsel, printing expenses, travel expenses, postage, facsimile and telephone charges. 

SECTION 7. Offer, Sale and Resale Procedures. Each of the Initial Purchasers, on the one hand, and the
Company, on the other hand, hereby agree to observe the following procedures in connection with the offer and sale of the Notes: 
 (A) Offers and sales of the Notes will be made only by the Initial Purchasers or Affiliates thereof qualified to do so in the jurisdictions in which such offers or sales are made. Each such offer or sale
shall only be made to persons whom the offeror or seller reasonably believes to be Qualified Institutional Buyers or non-U.S. persons outside the United States to whom the offeror or seller reasonably believes offers and sales of the Notes may be
made in reliance upon Regulation S upon the terms and conditions set forth in Annex II hereto, which Annex II is hereby expressly made a part hereof. 
 (B) The Notes will be offered by approaching prospective Subsequent Purchasers on an individual basis. No general solicitation or general advertising (within the meaning of Rule 502 under the Securities
Act) will be used in the United States in connection with the offering of the Notes. 
 (C) Upon original
issuance by the Company, and until such time as the same is no longer required under the applicable requirements of the Securities Act, the Notes (and all securities issued in exchange therefor or in substitution thereof, other than the Exchange
Notes) shall bear a legend to the following effect: 

  
 18 

 “THE SECURITY (OR ITS PREDECESSOR) EVIDENCED HEREBY WAS ORIGINALLY ISSUED IN A
TRANSACTION EXEMPT FROM REGISTRATION UNDER SECTION 5 OF THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND THE SECURITY EVIDENCED HEREBY MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH
REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER OF THE SECURITY EVIDENCED HEREBY IS HEREBY NOTIFIED THAT THE SELLER MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A
THEREUNDER. THE HOLDER OF THE SECURITY EVIDENCED HEREBY AGREES FOR THE BENEFIT OF THE COMPANY THAT (A) SUCH SECURITY MAY BE RESOLD, PLEDGED OR OTHERWISE TRANSFERRED, ONLY (1)(a) TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A
QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A UNDER THE SECURITIES ACT,
(b) OUTSIDE THE UNITED STATES TO A NON-U.S. PERSON IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 903 OR RULE 904 OF REGULATION S UNDER THE SECURITIES ACT, (c) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT PROVIDED
BY RULE 144 THEREUNDER (IF APPLICABLE), (d) TO AN INSTITUTIONAL ACCREDITED INVESTOR (AS DEFINED IN RULE 501(a)(1), (2), (3) OR (7) OF REGULATION D UNDER THE SECURITIES ACT) THAT, PRIOR TO SUCH TRANSFER, FURNISHES TO THE TRUSTEE A
SIGNED LETTER CONTAINING CERTAIN REPRESENTATIONS AND AGREEMENTS RELATING TO THE REGISTRATION OF TRANSFER OF THIS NOTE AND, IF SUCH TRANSFER IS IN RESPECT OF AN AGGREGATE PRINCIPAL AMOUNT OF NOTES AT THE TIME OF TRANSFER OF LESS THAN US$250,000, AN
OPINION OF COUNSEL ACCEPTABLE TO THE COMPANY THAT SUCH TRANSFER IS IN COMPLIANCE WITH THE SECURITIES ACT OR (e) IN ACCORDANCE WITH ANOTHER EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT (AND BASED UPON AN OPINION OF COUNSEL

  
 19 

 
ACCEPTABLE TO THE COMPANY IF THE COMPANY SO REQUESTS), (2) TO THE COMPANY OR ITS AFFILIATES OR (3) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT AND, IN EACH CASE, IN ACCORDANCE WITH
ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR ANY OTHER APPLICABLE JURISDICTION AND (B) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER OF THE SECURITY EVIDENCED HEREBY OF THE RESALE
RESTRICTIONS SET FORTH IN CLAUSE (A) ABOVE. NO REPRESENTATION CAN BE MADE AS TO THE AVAILABILITY OF THE EXEMPTION PROVIDED BY RULE 144 FOR RESALE OF THE SECURITY EVIDENCED HEREBY.” 

(D) The Notes have not been and will not be registered with the Registro Nacional de Valores (National Registry of
Securities) maintained by the CNBV under the Securities and Exchange Law of Mexico (Ley del Mercado de Valores), and the Initial Purchasers have not offered or sold, and agree not to offer or sell, directly or indirectly, any Notes in Mexico
or for the account of any resident thereof, except pursuant to a private placement exemption set forth under Article 8 of the Securities and Exchange Law of Mexico and in compliance with applicable provisions of Mexican Law or in accordance with an
authorization to that effect. 
 Following the sale of the Notes by the Initial Purchasers to Subsequent
Purchasers pursuant to the terms hereof, the Initial Purchasers shall not be liable or responsible to the Company for any losses, damages or liabilities suffered or incurred by the Company, including any losses, damages or liabilities under the
Securities Act, arising from or relating to any resale or transfer of any Note by a Subsequent Purchaser. 

SECTION 8. Indemnification. 
 (a) Indemnification of the Initial Purchasers. The Company agrees to indemnify and hold harmless each Initial Purchaser, its directors, officers, employees, affiliates and each person, if any, who
controls any Initial Purchaser within the meaning of the Securities Act and the Exchange Act (collectively, the “Initial Purchaser Indemnified Parties” and each, an “Initial Purchaser Indemnified Party”) against any
loss, claim, damage, liability or expense, as incurred (collectively, “Losses” and each, a “Loss”), to which such Initial Purchaser Indemnified Party may become subject, under the Securities Act, the Exchange Act or
other federal or state statutory law or regulation, or at common law or otherwise (including in settlement of any litigation, if such settlement is effected with the written consent of the Company), insofar as such Loss (or actions in respect
thereof as contemplated below) arises out of or is based upon any untrue statement or alleged untrue statement of a material fact contained in any Company Additional Written Communication, the Pricing Disclosure Package or the Offering Memorandum
(or any amendment or supplement thereto) or the omission or alleged omission 

  
 20 

 
therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; and to reimburse each Initial
Purchasers Indemnified Party for any and all expenses (including the reasonable fees and disbursements of counsel chosen by the Representatives) as such expenses are reasonably incurred by such Initial Purchaser Indemnified Party in connection with
investigating, defending, settling, compromising or paying any such Loss or action; provided, however, that the foregoing indemnity agreement shall not apply to any loss, claim, damage, liability or expense to the extent, but only to the
extent, arising out of or based upon any untrue statement or alleged untrue statement or omission or alleged omission made in reliance upon and in conformity with written information furnished to the Company by any Initial Purchaser through the
Representatives expressly for use in any Company Additional Written Communication, the Pricing Disclosure Package or the Offering Memorandum (or any amendment or supplement thereto). The indemnity agreement set forth in this Section 8(a) shall
be in addition to any liabilities that the Company may otherwise have. 
 (b) Indemnification of the Company. Each
Initial Purchaser agrees, severally and not jointly, to indemnify and hold harmless the Company, each of its directors and officers and each person, if any, who controls the Company within the meaning of the Securities Act or the Exchange Act
(collectively, the “Company Indemnified Parties” and each, a “Company Indemnified Party”), against any Loss to which any Company Indemnified Party may become subject, under the Securities Act, the Exchange Act, or
other federal or state statutory law or regulation, or at common law or otherwise (including in settlement of any litigation, if such settlement is effected with the written consent of such Initial Purchaser), insofar as such Loss (or actions in
respect thereof as contemplated below) arises out of or is based upon any untrue statement or alleged untrue statement of a material fact contained in any Company Additional Written Communication, the Pricing Disclosure Package or the Offering
Memorandum (or any amendment or supplement thereto) or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in
each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in any Company Additional Written Communication, the Pricing Disclosure Package or the Offering
Memorandum (or any amendment or supplement thereto), in reliance upon and in conformity with written information furnished to the Company by such Initial Purchaser through the Representatives expressly for use therein; and to reimburse any Company
Indemnified Party for any and all expenses (including the reasonable fees and disbursements of counsel chosen by the Company) as such expenses are reasonably incurred by such Company Indemnified Party, in connection with investigating, defending,
settling, compromising or paying any such Losses or action. The Company hereby acknowledges that the only information furnished to the Company by any Initial Purchaser through the Representatives expressly for use in any Company Additional Written
Communication, the Pricing Disclosure Package or the Offering Memorandum (or any amendment or supplement thereto) are the statements set forth in the first sentence of the sixth paragraph, the second sentence of the ninth paragraph and the eleventh
and twelfth paragraphs under the caption “Plan of Distribution” in the Preliminary Offering Memorandum and the Offering Memorandum. The indemnity agreement set forth in this Section 8(b) shall be in addition to any liabilities that
each Initial Purchaser may otherwise have to the Company Indemnified Parties. 

  
 21 

 (c) Notifications and Other Indemnification Procedures. Promptly after receipt by an
indemnified party under this Section 8 of notice of the commencement of any action, such indemnified party will, if a claim in respect thereof is to be made against an indemnifying party under this Section 8, notify the indemnifying party
in writing of the commencement thereof, but the failure to so notify the indemnifying party will not relieve it from any liability which it may have to any indemnified party for contribution or otherwise than under the indemnity agreement contained
in this Section 8 or to the extent it is not prejudiced as a proximate result of such failure. In case any such action is brought against any indemnified party and such indemnified party seeks or intends to seek indemnity from an indemnifying
party, the indemnifying party will be entitled to participate in, and, to the extent that it shall elect, jointly with all other indemnifying parties similarly notified, by written notice delivered to the indemnified party promptly after receiving
the aforesaid notice from such indemnified party, to assume the defense thereof with counsel reasonably satisfactory to such indemnified party; provided, however, such indemnified party shall have the right to employ its own counsel in any
such action and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such indemnified party, unless: (i) the employment of such counsel has been specifically authorized in writing by the
indemnifying party; (ii) the indemnifying party has failed promptly to assume the defense and employ counsel reasonably satisfactory to the indemnified party; or (iii) the named parties to any such action (including any impleaded parties)
include both such indemnified party and the indemnifying party or any affiliate of the indemnifying party, and such indemnified party shall have reasonably concluded that either (x) there may be one or more legal defenses available to it which
are different from or additional to those available to the indemnifying party or such affiliate of the indemnifying party or (y) a conflict may exist between such indemnified party and the indemnifying party or such affiliate of the
indemnifying party (it being understood, however, that the indemnifying party shall not, in connection with any one such action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general
allegations or circumstances, be liable for the fees and expenses of more than one separate firm of attorneys (in addition to a single firm of local counsel) for all such indemnified parties, which firm shall be designated in writing by the
Representatives (in the case of counsel representing any Initial Purchaser Indemnified Party) and that all such reasonable fees and expenses shall be reimbursed as they are incurred). Upon receipt of notice from the indemnifying party to such
indemnified party of such indemnifying party’s election so to assume the defense of such action and approval by the indemnified party of counsel, the indemnifying party will not be liable to such indemnified party under this Section 8 for
any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof unless the indemnified party shall have employed separate counsel in accordance with the proviso to the next preceding sentence, in
which case the reasonable fees and expenses of counsel shall be at the expense of the indemnifying party. 
 (d) Settlements.
The indemnifying party under this Section 8 shall not be liable for any settlement of any proceeding effected without its written consent, which consent shall not be unreasonably withheld, but if settled with such consent or if there be a
final judgment for the plaintiff, the indemnifying party agrees to indemnify the indemnified party against any Loss by 

  
 22 

 
reason of such settlement or judgment. Notwithstanding the foregoing sentence, if at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party
for fees and expenses of counsel as contemplated by this Section 8, the indemnifying party agrees that it shall be liable for any settlement of any proceeding effected without its written consent if (i) such settlement is entered into more
than 30 days after receipt by such indemnifying party of the aforesaid request and (ii) such indemnifying party shall not have reimbursed the indemnified party in accordance with such request prior to the date of such settlement. No
indemnifying party shall, without the prior written consent of the indemnified party, which consent shall not be unreasonably withheld, effect any settlement, compromise or consent to the entry of judgment in any pending or threatened action, suit
or proceeding in respect of which any indemnified party is or could have been a party and indemnity was or could have been sought hereunder by such indemnified party, unless such settlement, compromise or consent (i) includes an unconditional
release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceeding and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act, by or on behalf
of any indemnified party. 
 SECTION 9. Contribution. If the indemnification provided for in
Section 8 hereof is for any reason held to be unavailable to or otherwise insufficient to hold harmless an indemnified party in respect of any Losses referred to therein, then each indemnifying party shall contribute to the aggregate amount
paid or payable by such indemnified party, as incurred, as a result of any Losses referred to therein (i) in such proportion as is appropriate to reflect the relative benefits received by the Company, on the one hand, and the Initial
Purchasers, on the other hand, from the offering of the Notes pursuant to this Agreement or (ii) if the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only
the relative benefits referred to in clause (i) above but also the relative fault of the Company, on the one hand, and the Initial Purchasers, on the other hand, in connection with the statements or omissions which resulted in such Losses, as
well as any other relevant equitable considerations. The relative benefits received by the Company, on the one hand, and the Initial Purchasers, on the other hand, in connection with the offering of the Notes pursuant to this Agreement shall be
deemed to be in the same respective proportions as the total net proceeds from the offering of the Notes pursuant to this Agreement (before deducting expenses) received by the Company, and the total discount received by the Initial Purchasers, bear
to the aggregate initial offering price of the Notes. The relative fault of the Company, on the one hand, and the Initial Purchasers, on the other hand, shall be determined by reference to, among other things, whether any such untrue or alleged
untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company, on the one hand, or the Initial Purchasers, on the other hand, and the parties’ relative intent,
knowledge, access to information and opportunity to correct or prevent such statement or omission. 
 The amount paid or payable
by a party as a result of the Losses referred to above shall be deemed to include, subject to the limitations set forth in Section 8, any reasonable legal or other fees or expenses reasonably incurred by such party in connection with
investigating or defending any action or claim. 

  
 23 

 The Company and the Initial Purchasers agree that it would not be just and equitable if
contribution pursuant to this Section 9 were determined by pro rata allocation (even if the Initial Purchasers were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable
considerations referred to in this Section 9. 
 Notwithstanding the provisions of this Section 9, no Initial
Purchaser shall be required to contribute any amount in excess of the discount received by such Initial Purchaser in connection with the Notes purchased by it. No person guilty of fraudulent misrepresentation (within the meaning of
Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Initial Purchasers’ obligations to contribute pursuant to this Section 9 are several,
and not joint, in proportion to their respective purchase commitments as set forth opposite their names in Schedule A. For purposes of this Section 9, each Initial Purchaser Indemnified Party (other than such Initial Purchaser) shall have the
same rights to contribution as such Initial Purchaser, and each Company Indemnified Party (other than the Company) shall have the same rights to contribution as the Company. 
 SECTION 10. Default of One or More of the Several Initial Purchasers. If any one or more of the several Initial Purchasers shall fail or refuse to purchase Notes that it
or they have agreed to purchase hereunder on the Closing Date, and the aggregate principal amount of Notes, which such defaulting Initial Purchaser or Initial Purchasers agreed but failed or refused to purchase does not exceed 10% of the aggregate
principal amount of the Notes to be purchased on such date, the other Initial Purchasers shall be obligated, severally, in the proportion to the aggregate principal amounts of such Notes set forth opposite their respective names on Schedule A bears
to the aggregate principal amount of such Notes set forth opposite the names of all such non-defaulting Initial Purchasers, or in such other proportions as may be specified by the Representatives with the consent of the non-defaulting Initial
Purchasers, to purchase such Notes which such defaulting Initial Purchaser or Initial Purchasers agreed but failed or refused to purchase on the Closing Date. If any one or more of the Initial Purchasers shall fail or refuse to purchase such Notes
and the aggregate principal amount of such Notes with respect to which such default occurs exceeds 10% of the aggregate principal amount of Notes to be purchased on the Closing Date, and arrangements satisfactory to the Representatives and the
Company for the purchase of such Notes are not made within 48 hours after such default, this Agreement shall terminate without liability of any party to any other party except that the provisions of Sections 4, 6, 8, 9 and 17 hereof shall at all
times be effective and shall survive such termination. In any such case, either the Representatives or the Company shall have the right to postpone the Closing Date, but in no event for longer than seven days in order that the required changes, if
any, to the Pricing Disclosure Package or the Offering Memorandum or any other documents or arrangements may be effected. 
 As
used in this Agreement, the term “Initial Purchaser” shall be deemed to include any person substituted for a defaulting Initial Purchaser under this Section 10. Any action taken under this Section 10 shall not relieve any
defaulting Initial Purchaser from liability in respect of any default of such Initial Purchaser under this Agreement. 

SECTION 11. Termination of this Agreement. Prior to the Closing Date, this Agreement may be terminated
by the Representatives by notice given to the Company if at any time (i)

  
 24 

 
trading or quotation in any of the Company’s or KCS’s securities shall have been suspended or limited by the Commission or by any exchange or in any over-the-counter market, or trading
in securities generally on either the New York Stock Exchange, the American Stock Exchange, the Nasdaq Global Market, the Chicago Board of Options Exchange, the Chicago Mercantile Exchange, the Chicago Board of Trade, or the Bolsa Mexicana de
Valores, S.A.B. de C.V. shall have been suspended or limited, or minimum or maximum prices shall have been generally established on any of such stock exchanges by the Commission or the FINRA; (ii) a general banking moratorium shall have
been declared by any of federal, New York or Mexican authorities; (iii) there shall have occurred any outbreak or escalation of national or international hostilities or any crisis or calamity involving the United States or Mexico, or any change
in the United States, Mexican or international financial markets, or any substantial change or development involving a prospective substantial change in United States’, Mexico’s or international political, financial or economic conditions,
as in the judgment of the Representatives is material and adverse and makes it impracticable or inadvisable to market the Notes in the manner and on the terms described in the Pricing Disclosure Package or the Offering Memorandum or to enforce
contracts for the sale of securities; (iv) in the judgment of the Representatives there shall have occurred any Material Adverse Change; or (v) there shall have occurred a material disruption in commercial banking or securities settlement
or clearance services in the United States or in Mexico. Any termination pursuant to this Section 11 shall be without liability of any party to any other party except as provided in Sections 4 and 6 hereof, and provided further that
Sections 4, 6, 8, 9 and 17 hereof shall survive such termination and remain in full force and effect. 

SECTION 12. No Fiduciary Duty. The Company acknowledges and agrees that: (i) the purchase and sale of the
Notes pursuant to this Agreement, including the determination of the public offering price of the Notes and any related discounts and commissions, is an arm’s-length commercial transaction between the Company, on the one hand, and the several
Initial Purchasers, on the other hand, and the Company is capable of evaluating and understanding and understands and accepts the terms, risks and conditions of the transactions contemplated by this Agreement; (ii) in connection with each
transaction contemplated hereby and the process leading to such transaction each Initial Purchaser is and has been acting solely as a principal and is not the financial advisor, agent or fiduciary of the Company or its affiliates, stockholders,
creditors or employees or any other party; (iii) no Initial Purchaser has assumed or will assume an advisory, agency or fiduciary responsibility in favor of the Company with respect to any of the transactions contemplated hereby or the process
leading thereto (irrespective of whether such Initial Purchaser has advised or is currently advising the Company on other matters) and no Initial Purchaser has any obligation to the Company with respect to the offering contemplated hereby except the
obligations expressly set forth in this Agreement; (iv) the several Initial Purchasers and their respective affiliates may be engaged in a broad range of transactions that involve interests that differ from those of the Company and that the
several Initial Purchasers have no obligation to disclose any of such interests by virtue of any advisory, agency or fiduciary relationship; and (v) the Initial Purchasers have not provided any legal, accounting, regulatory or tax advice with
respect to the offering contemplated hereby and the Company has consulted its own legal, accounting, regulatory and tax advisors to the extent it deemed appropriate. 

  
 25 

 This Agreement supersedes all prior agreements and understandings (whether written or oral)
between the Company and the several Initial Purchasers with respect to the subject matter hereof. The Company hereby waives and releases, to the fullest extent permitted by law, any claims that the Company may have against the several Initial
Purchasers with respect to any breach or alleged breach of agency or fiduciary duty. 
 SECTION 13.
Representations and Indemnities to Survive Delivery. The respective indemnities, agreements, representations, warranties and other statements of the Company, of its officers and of the several Initial Purchasers set forth in or made
pursuant to this Agreement (i) will remain operative and in full force and effect, regardless of any (A) investigation, or statement as to the results thereof, made by or on behalf of any Initial Purchaser, the officers or employees of any
Initial Purchasers, or any person controlling the Initial Purchaser, the Company, the officers or employees of the Company, or any person controlling the Company, as the case may be or (B) acceptance of the Notes and payment for them hereunder
and (ii) will survive delivery of and payment for the Notes sold hereunder and any termination of this Agreement. 

SECTION 14. Notices. All communications hereunder shall be in writing and shall be mailed, hand
delivered, facsimiled or telecopied and confirmed to the parties hereto as follows: 
 If to the Representatives: 

J.P. Morgan Securities LLC 
 383 Madison Avenue 
 New York, NY 10179 

Facsimile: (212) 834-6081 
 Attention: Investment Grade Syndicate Desk – 3rd floor 
 and 

Merrill Lynch, Pierce, Fenner & Smith 
                       Incorporated 

50 Rockefeller Plaza 
 NY1-050-12-01 New York, NY 10020 
 Facsimile: (646) 855-5958 

Attention: High Grade Transaction Management/Legal 
 and 
 Morgan Stanley & Co. LLC 

1585 Broadway 

New York, NY 10036 
 Phone: (212) 761-6691 
 Facsimile: (212) 507-8999 

Attention: Investment Banking Division 

  
 26 

 with a copy to: 
 Shearman & Sterling LLP 
 599 Lexington Avenue 

New York, NY 10022 
 Facsimile: (646) 848-7895 
 Attention: Robert Treuhold, Esq. 

If to the Company: 
 Kansas City Southern de México, S.A. de C.V. 
 Montes Urales 625, Lomas de
Chapultepec 
 Delegación Miguel Hidalgo 
 11000 México, D.F., México 
 Facsimile: (816) 983-1198

 Attention: Michael W. Cline, Treasurer 
 with a copy to: 
 White & Case LLP 

1155 Avenue of the Americas 
 New York, NY 10036 
 Facsimile: (212) 354-8113 

Attention: Gary Kashar, Esq. 
 Any party hereto may change the address or facsimile number for receipt of communications by giving written notice to the others. 
 SECTION 15. Successors. This Agreement will inure to the benefit of and be binding upon the parties hereto, including any substitute Initial Purchasers pursuant to
Section 10 hereof, and to the benefit of the indemnified parties referred to in Sections 8 and 9, and in each case their respective successors, and no other person will have any right or obligation hereunder. The term “successors”
shall not include any purchaser of the Notes as such from any of the Initial Purchasers merely by reason of such purchase. 

SECTION 16. Partial Unenforceability. The invalidity or unenforceability of any Section, paragraph or
provision of this Agreement shall not affect the validity or enforceability of any other Section, paragraph or provision hereof. If any Section, paragraph or provision of this Agreement is for any reason determined to be invalid or unenforceable,
there shall be deemed to be made such minor changes (and only such minor changes) as are necessary to make it valid and enforceable. 
 SECTION 17. Governing Law Provisions. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK APPLICABLE TO
AGREEMENTS MADE AND TO BE PERFORMED IN THAT STATE. 

  
 27 

 (a) Consent to Jurisdiction. Any legal suit, action or proceeding arising out of or
based upon this Agreement or the transactions contemplated hereby (“Related Proceedings”) may be instituted in the federal courts of the United States of America located in the City and County of New York, Borough of Manhattan, or
the courts of the State of New York in each case located in the City and County of New York, Borough of Manhattan (collectively, the “Specified Courts”), and each party irrevocably submits to the exclusive jurisdiction (except for
proceedings instituted in regard to the enforcement of a judgment of any such court (a “Related Judgment”), as to which such jurisdiction is non-exclusive) of the Specified Courts in any Related Proceeding. Service of any process,
summons, notice or document by mail to such party’s address set forth above shall be effective service of process for any Related Proceeding brought in any Specified Courts. The parties irrevocably and unconditionally waive any objection to the
laying of venue of any suit, action or other proceeding in the Specified Courts and irrevocably and unconditionally waive and agree not to plead or claim in any such court that any Related Proceeding brought in any such court has been brought in an
inconvenient forum. Each party not located in the United States irrevocably appoints CT Corporation, as its agent to receive service of process or other legal summons for purposes of any Related Proceeding that may be instituted in any Specified
Court. 
 (b) Waiver of Immunity. With respect to any Related Proceeding, each party irrevocably waives, to the fullest
extent permitted by applicable law, all immunity (whether on the basis of sovereignty or otherwise) from jurisdiction, service of process, attachment (both before and after judgment) and execution to which it might otherwise be entitled in the
Specified Courts, and with respect to any Related Judgment, each party waives any such immunity in the Specified Courts or any other court of competent jurisdiction, and will not raise or claim or cause to be pleaded any such immunity at or in
respect of any such Related Proceeding or Related Judgment, including, without limitation, any immunity pursuant to the United States Foreign Sovereign Immunities Act of 1976, as amended. 

(c) Judgment Currency. If for the purposes of obtaining judgment in any court it is necessary to convert a sum due hereunder into
any currency other than U.S. dollars, the parties hereto agree, to the fullest extent that they may effectively do so, that the rate of exchange used shall be the rate at which in accordance with normal banking procedures the Initial Purchasers
could purchase U.S. dollars with such other currency in The City of New York on the business day preceding that on which final judgment is given. The obligations of the Company in respect of any sum due from it to any Initial Purchaser shall,
notwithstanding any judgment in any currency other than U.S. dollars, not be discharged until the first business day, following receipt by such Initial Purchaser of any sum adjudged to be so due in such other currency, on which (and only to the
extent that) such Initial Purchaser may in accordance with normal banking procedures purchase U.S. dollars with such other currency; if the U.S. dollars so purchased are less than the sum originally due to such Initial Purchaser hereunder, the
Company agrees, as a separate obligation and notwithstanding any such judgment, to indemnify such Initial Purchaser against such loss. If the U.S. dollars so purchased are greater than the sum originally due to such Initial Purchaser hereunder, such
Initial Purchaser agrees to pay to the Company an amount equal to the excess of the U.S. dollars so purchased over the sum originally due to such Initial Purchaser hereunder. 

  
 28 

 Section 18. Trial by Jury. THE COMPANY (ON ITS BEHALF AND, TO THE EXTENT
PERMITTED BY APPLICABLE LAW, ON BEHALF OF ITS STOCKHOLDERS AND AFFILIATES) AND EACH OF THE INITIAL PURCHASERS HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING
ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. 
 Section 19. General Provisions.
This Agreement may be executed in two or more counterparts, each one of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument. Delivery of an executed counterpart of a signature
page to this Agreement by telecopier, facsimile or other electronic transmission (i.e., a “pdf” or “tif”) shall be effective as delivery of a manually executed counterpart thereof. This Agreement may not be amended or modified
unless in writing by all of the parties hereto, and no condition herein (express or implied) may be waived unless waived in writing by each party whom the condition is meant to benefit. The Section headings herein are for the convenience of the
parties only and shall not affect the construction or interpretation of this Agreement. 
 Each of the parties hereto
acknowledges that it is a sophisticated business person who was adequately represented by counsel during negotiations regarding the provisions hereof, including, without limitation, the indemnification provisions of Section 8 hereof and the
contribution provisions of Section 9 hereof, and is fully informed regarding said provisions. Each of the parties hereto further acknowledges that the provisions of Sections 8 and 9 hereof fairly allocate the risks in light of the ability of
the parties to investigate the Company, its affairs and its business in order to assure that adequate disclosure has been made in the Pricing Disclosure Package and the Offering Memorandum (and any amendments and supplements thereto), as required by
the Securities Act and the Exchange Act. 
 [Remainder of page intentionally left blank.] 

  
 29 

 If the foregoing is in accordance with your understanding of our agreement, kindly sign and
return to the Company the enclosed copies hereof, whereupon this instrument, along with all counterparts hereof, shall become a binding agreement in accordance with its terms. 

 

					
	Very truly yours,
	
	KANSAS CITY SOUTHERN DE MÉXICO, S.A. DE C.V.
		
	By:	 	 /s/ Michael W. Upchurch

		 	Name:	 	Michael W. Upchurch
		 	Title:	 	Chief Financial Officer and
		 		 	Attorney-in-Fact

 [signature page to KCSM Purchase Agreement] 

 The foregoing Purchase Agreement is hereby confirmed and accepted by the Representatives as
of the date first above written. 
 J.P. MORGAN SECURITIES LLC 
 MERRILL LYNCH, PIERCE, FENNER & SMITH 

                         
     INCORPORATED 
 MORGAN STANLEY & CO. LLC 

Acting as Representatives of the 
 several Initial Purchasers named in 
 the attached Schedule A. 

 

					
	By:	 	J.P. Morgan Securities LLC
		
	By:	 	   /s/ Maria Sramek

		 	Name:	 	Maria Sramek
		 	Title:	 	Executive Director
		
	By:	 	Merrill Lynch, Pierce, Fenner & Smith
		 	                      Incorporated
		
	By:	 	   /s/ Jay Johnston

		 	Name:	 	Jay Johnston
		 	Title:	 	Managing Director
		
	By:	 	Morgan Stanley & Co. LLC
		
	By:	 	   /s/ Yurij Slyz

		 	Name:	 	Yurij Slyz
		 	Title:	 	Executive Director

 [signature page to KCSM Purchase Agreement] 

 SCHEDULE A 

 

									
	 Initial Purchasers
	  	Aggregate
Principal
Amount of
2020
Notes to
be Purchased	 	  	Aggregate
Principal
Amount of
2023
Notes to
be Purchased	 
	 J.P. Morgan Securities LLC
	  	$	73,792,000	  	  	$	120,750,000	  
	 Merrill Lynch, Pierce, Fenner & Smith

                   
   Incorporated
	  	 	73,792,000	  	  	 	120,750,000	  
	 Morgan Stanley & Co. LLC
	  	 	73,792,000	  	  	 	120,750,000	  
	 Citigroup Global Markets Inc.
	  	 	21,312,000	  	  	 	34,875,000	  
	 Wells Fargo Securities, LLC
	  	 	21,312,000	  	  	 	34,875,000	  
	 Scotia Capital (USA) Inc.
	  	 	11,000,000	  	  	 	18,000,000	  
		  	  
	  
	 	  	  
	  
	 
	 Total
	  	$	275,000,000	  	  	$	450,000,000	  
		  	  
	  
	 	  	  
	  
	 

  

Schedule A-1 

 SCHEDULE B 
 Arrendadora KCSM, S. de R.L. de C.V. 
 KCSM Holdings LLC 

Highstar Harbor Holdings Mexico, S. de R.L. de C.V. 

  

Schedule B-1 

 ANNEX I 
 Company Additional Written Communication 
 1. Electronic (Netroadshow) road
show of KCS relating to the Company, KCS and The Kansas City Southern Railway Company (with no mention of the offering of the Notes) entitled “Fixed Income Investor Meetings April 2013.” 

2. The non-deal presentation of KCS relating to the Company, KCS and The Kansas City Southern Railway Company (with no mention of the
offering of the Notes) entitled “Fixed Income Investor Meetings April 2013.” 
 3. The electronic (Netroadshow) road
show of KCS relating to the offering of the Notes by the Company and a separate offering of debt securities by The Kansas City Southern Railway Company dated April 2013. 

  
 Annex I-1

 ANNEX II 
 Resale Pursuant to Regulation S or Rule 144A 
 Such Initial Purchaser
agrees that it has not offered or sold and will not offer or sell the Notes in the United States or to, or for the benefit or account of, a U.S. person (other than a distributor), in each case, as defined in Rule 902 of Regulation S
(i) as part of its distribution at any time and (ii) otherwise until 40 days after the later of the commencement of the offering of the Notes pursuant hereto and the Closing Date, other than in accordance with Regulation S or another
exemption from the registration requirements of the Securities Act. Such Initial Purchaser agrees that, during such 40-day restricted period, it will not cause any advertisement with respect to the Notes (including any “tombstone”
advertisement) to be published in any newspaper or periodical or posted in any public place and will not issue any circular relating to the Notes, except such advertisements as permitted by and include the statements required by Regulation S.

 Such Initial Purchaser agrees that, at or prior to confirmation of a sale of Notes by it to any distributor, dealer or person
receiving a selling concession, fee or other remuneration during the 40-day restricted period referred to in Rule 903 of Regulation S, it will send to such distributor, dealer or person receiving a selling concession, fee or other
remuneration a confirmation or notice to substantially the following effect: 
 “The Notes covered hereby have not been
registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), and may not be offered and sold within the United States or to, or for the account or benefit of, U.S. persons (i) as part of your distribution at
any time or (ii) otherwise until 40 days after the later of the date the Notes were first offered to persons other than distributors in reliance on Regulation S and the Closing Date, except in either case in accordance with
Regulation S under the Securities Act (or in accordance with Rule 144A under the Securities Act), and in connection with any subsequent sale by you of the Notes covered hereby in reliance on Regulation S under the Securities Act
during the period referred to above to any distributor, dealer or person receiving a selling concession, fee or other remuneration, you must deliver a notice to substantially the foregoing effect. Terms used above have the meanings assigned to them
in Regulation S under the Securities Act.” 
 Such Initial Purchaser agrees that the Notes offered and sold in
reliance on Regulation S will be represented upon issuance by a global security that may not be exchanged for definitive securities until the expiration of the 40-day restricted period referred to in Rule 903 of Regulation S and only
upon certification of beneficial ownership of such Notes by non-U.S. persons or U.S. persons who purchased such Notes in transactions that were exempt from the registration requirements of the Securities Act. 

  
 Annex II-1

 EXHIBIT B 
 Form of Pricing Supplement 
 PRICING
SUPPLEMENT                                        
     STRICTLY CONFIDENTIAL 
 $725,000,000 

 
 

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

2.350% Senior Notes due 2020 
 3.000% Senior Notes due 2023 
 April 24, 2013 

This Pricing Supplement is qualified in its entirety by reference to the Preliminary Offering Memorandum dated April 24, 2013 (the “Preliminary
Offering Memorandum”). The information in this Pricing Supplement supplements the Preliminary Offering Memorandum and supersedes the information in the Preliminary Offering Memorandum to the extent this information is inconsistent with the
information in the Preliminary Offering Memorandum. Capitalized terms used in this Pricing Supplement but not defined have the meanings given to them in the Preliminary Offering Memorandum. 
 The Notes (as defined below) have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold, except pursuant to an exemption
from, or in a transaction not subject to, the registration requirements of the Securities Act. Accordingly, the Notes are being offered and sold (1) only to “qualified institutional buyers” (as defined in Rule 144A under the
Securities Act) and (2) outside the United States to non-U.S. persons in compliance with Regulation S under the Securities Act. 

The Notes have not been and will not be registered with the Mexican National Securities Registry (Registro Nacional de Valores) maintained by the
Mexican National Banking and Securities Commission (Comisión Nacional Bancaria y de Valores) and may not be offered or sold publicly, or otherwise be the subject of broker activities in Mexico, except pursuant to a private placement exemption
set forth under Article 8 of the Mexican Securities Market Law (Ley del Mercado de Valores). 
  

					
	 Issuer:
	  	Kansas City Southern de México, S.A. de C.V. (the “Company”)
			
	Title of Securities:	  	2.350% Senior Notes due 2020 (the “2020 Notes”)	  	3.000% Senior Notes due 2023 (the “2023 Notes” and, together with the 2020 Notes, the “Notes”)
			
	Aggregate Principal Amount:	  	$275,000,000	  	$450,000,000
			
	Final Maturity Date:	  	May 15, 2020	  	May 15, 2023

  
 Exhibit B-1

					
			
	Issue Price:	  	99.884%	  	99.587%
			
	Coupon:	  	2.350%	  	3.000%
			
	Yield to Maturity:	  	2.368%	  	3.048%
			
	Benchmark Treasury:	  	UST 1.125% due March 31, 2020	  	UST 2% due February 15, 2023
			
	Benchmark Treasury Price / Yield:	  	100-01+ / 1.118%	  	102-23 / 1.698%
			
	Spread to Benchmark Treasury:	  	125 basis points	  	135 basis points
		
	Interest Payment Dates:	  	May 15 and November 15
		
	Record Dates:	  	May 1 and November 1
		
	First Interest Payment Date:	  	November 15, 2013
		
	Optional Redemption:	  	Prior to April 15, 2020 (the date that is one month prior to the maturity date) in the case of the 2020 Notes, and February 15, 2023 (the date that is three months
prior to the maturity date) in the case of the 2023 Notes, the Notes of the applicable series will be redeemable in whole or in part at any time and from time to time, at the Company’s option, at a redemption price equal to the greater of
(i) 100% of the principal amount of the Notes to be redeemed and (ii) the sum of the present values of the remaining scheduled payments of principal and interest on the Notes to be redeemed (exclusive of interest accrued to the date of
redemption) discounted to the date of redemption on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at the then-current Treasury Rate, plus 20 basis points, in the case of the 2020 Notes, and 20 basis points, in the
case of the 2023 Notes, plus, in either case, accrued interest and any Additional Amounts to but excluding the redemption date.
		
		  	 At any time on or after April 15, 2020 (the date that is one month prior to the maturity date) in the case of the 2020 Notes, and
February 15, 2023 (the date that is three months prior to the maturity date) in the case of the 2023 Notes, the Notes of the applicable series will be redeemable in whole or in part at any time and from time to time, at the Company’s option, at
a redemption price equal to 100% of the principal amount of the Notes to be redeemed plus accrued interest and any Additional Amounts to but excluding the redemption date.

		
	Additional Optional Redemption:	  	 Upon completion of the registered exchange offer as described under “Description of Notes—Registration Rights,” in the
Preliminary Offering Memorandum, the Company may also redeem (1) 2020 Notes which were not exchanged in the registered exchange offer with respect to the 2020 Notes in an amount up to 2% of the original aggregate principal amount of 2020 Notes
issued at a redemption price of 100% of their principal amount plus accrued interest and any Additional Amounts to but excluding the redemption date and (2) 2023 Notes which are not exchanged in the registered exchange offer with respect to the 2023
Notes in an amount up to 2% of the original

  
 Exhibit B-2

					
		  	aggregate principal amount of 2023 Notes issued at a redemption price of 100% of their principal amount plus accrued interest and any Additional Amounts to but
excluding the redemption date.
		
		  	In addition, the Company may, at its option, redeem each series of the Notes, in whole but not in part, at any time at a redemption price of 100% of their principal
amount plus accrued interest, if any, and any Additional Amounts to but excluding the redemption date if the Mexican withholding tax rate on payments of interest in respect of the Notes is increased, as a result of a change in Mexican law, to a rate
in excess of 4.9%.
		
	Joint Book-Running Managers:	  	 J.P. Morgan Securities LLC
 Merrill Lynch, Pierce, Fenner & Smith

                      
Incorporated
 Morgan Stanley & Co. LLC

		
	Senior Co-Managers:	  	 Citigroup Global Markets Inc.
 Wells Fargo Securities, LLC

		
	Co-Manager:	  	Scotia Capital (USA) Inc.
		
	Trade Date:	  	April 24, 2013
		
	Settlement Date:	  	May 3, 2013 (T+7 business days)
			
	144A CUSIP/ISIN Numbers:	  	485161AN3 / US485161AN35	  	485161 AR4 / US485161AR49
			
	Reg S CUSIP/ISIN Numbers:	  	P6052AAG9 / USP6052AAG96	  	P6052A AH7 / USP6052AAH79

  
 Exhibit B-3EX-10.7

 Exhibit 10.7 
 INDEMNIFICATION AGREEMENT 
 THIS INDEMNIFICATION AGREEMENT
(“Agreement”) is made and entered into as of the          day of                 , 2013, effective
as of                      , 2013 (the “Effective Date”), by and between Ellington Residential Mortgage REIT, a
Maryland real estate investment trust (the “Company”), and
                                         
        (“Indemnitee”). 
 WHEREAS, at the request of the Company,
Indemnitee [will serve] [currently serves] as [a trustee] [and] [an officer] of the Company and may, therefore, be subjected to claims, suits or proceedings arising as a result of [his][her] service; and 

WHEREAS, as an inducement to Indemnitee to serve or continue to serve as [a trustee] [and] [an officer], the Company has agreed to
indemnify and to advance expenses and costs incurred by Indemnitee in connection with any such claims, suits or proceedings, to the maximum extent permitted by law; and 
 WHEREAS, the parties by this Agreement desire to set forth their agreement regarding indemnification and advance of expenses; 
 NOW, THEREFORE, in consideration of the premises and the covenants contained herein, the Company and Indemnitee do hereby covenant and agree as follows: 

Section 1. Definitions. For purposes of this Agreement: 

(a) “Change in Control” shall have the meaning ascribed to it by the Company’s 2013 Equity
Incentive Plan or any equity incentive or stock compensation plan adopted by the Board of Trustees and approved by the shareholders of the Company that may later replace the 2013 Equity Incentive Plan. 

(b) “Company Status” means the status of a person as a present or former trustee, officer, employee or
agent of the Company or as a director, trustee, officer, partner, manager, managing member, fiduciary, employee or agent of any other foreign or domestic corporation, partnership, limited liability company, joint venture, trust, real estate
investment trust, employee benefit plan or other enterprise that such person is or was serving in such capacity at the request of the Company. As a clarification and without limiting the circumstances in which Indemnitee may be serving at the
request of the Company, service by Indemnitee shall be deemed to be at the request of the Company: (i) if Indemnitee serves or served as a director, trustee, officer, partner, manager, managing member, fiduciary, employee or agent of any
corporation, partnership, limited liability company, joint venture, trust or other enterprise (1) of which a majority of the voting power or equity interest is owned directly or indirectly by the Company or (2) the management of which is
controlled directly or indirectly by the Company and (ii) if, as a result of Indemnitee’s service to the Company or any of its affiliated entities, Indemnitee is subject to duties by, or required to perform services for, an employee
benefit plan or its participants or beneficiaries, including as deemed fiduciary thereof. 

 (c) “Disinterested Trustee” means a trustee of the Company
who is not and was not a party to the Proceeding in respect of which indemnification and/or advance of Expenses is sought by Indemnitee. 
 (d) “Effective Date” shall have the meaning ascribed to it in the first paragraph of this Agreement. 

(e) “Expenses” means any and all reasonable and out-of-pocket attorneys’ fees and costs, retainers,
court costs, transcript costs, fees of experts, witness fees, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees, federal, state, local or foreign taxes imposed on Indemnitee as a result
of the actual or deemed receipt of any payments under this Agreement, ERISA excise taxes and penalties and any other disbursements or expenses incurred in connection with prosecuting, defending, preparing to prosecute or defend, investigating, being
or preparing to be a witness in or otherwise participating in a Proceeding. Expenses shall also include Expenses incurred in connection with any appeal resulting from any Proceeding including, without limitation, the premium, security for and other
costs relating to any cost bond, supersedeas bond or other appeal bond or its equivalent. Expenses shall not include amounts paid in settlement by Indemnitee or the amount of judgments or fines against Indemnitee. 

(f) “Independent Counsel” means a law firm, or a member of a law firm, that is experienced in matters of
corporation law and neither is, nor in the past five years has been, retained to represent: (i) the Company or Indemnitee in any matter material to either such party (other than with respect to matters concerning Indemnitee under this Agreement
or of other indemnitees under similar indemnification agreements), or (ii) any other party to or participant or witness in the Proceeding giving rise to a claim for indemnification or advance of Expenses hereunder. Notwithstanding the
foregoing, the term “Independent Counsel” shall not include any person who, under the applicable standards of professional conduct then prevailing, would have a conflict of interest in representing either the Company or Indemnitee in an
action to determine Indemnitee’s rights under this Agreement. 
 (g) “Proceeding” means
any threatened, pending or completed action, suit, arbitration, alternate dispute resolution mechanism, investigation, inquiry, administrative hearing or any other proceeding, whether brought by or in the right of the Company or otherwise and
whether of a civil (including intentional or unintentional tort claims), criminal, administrative or investigative (formal or informal) nature, including any appeal therefrom, including one pending or completed on or before the Effective Date,
unless otherwise specifically agreed in writing by the Company and Indemnitee; provided, that, if Indemnitee has actual knowledge of any such pending or completed Proceeding on or before the Effective Date, Indemnitee shall have notified the
Company thereof. If Indemnitee reasonably believes that a given situation may lead to or culminate in the institution of a Proceeding, such situation shall also be considered a Proceeding. 

Section 2. Services by Indemnitee. Indemnitee [will serve][serves] as [a trustee] [and] [an officer] of the
Company. However, this Agreement shall not impose any independent 

  
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obligation on Indemnitee or the Company to continue Indemnitee’s service to the Company. This Agreement shall not be deemed an employment contract between the Company (or any other entity)
and Indemnitee. 
 Section 3. General. The Company shall indemnify, and advance Expenses to, Indemnitee (a) as
provided in this Agreement and (b) otherwise to the maximum extent permitted by Maryland law in effect on the Effective Date and as amended from time to time; provided, however, that no change in Maryland law shall have the effect of reducing
the benefits available to Indemnitee hereunder based on Maryland law as in effect on the Effective Date. The rights of Indemnitee provided in this Section 3 shall include, without limitation, the rights set forth in the other sections of this
Agreement, including any additional indemnification permitted by Section 2-418(g) of the Maryland General Corporation Law (the “MGCL”), as applicable to a Maryland real estate investment trust by virtue of Section 8-301(15) of
the Maryland REIT Law. 
 Section 4. Standard for Indemnification. If, by reason of Indemnitee’s Company
Status, Indemnitee is, or is threatened to be, made a party to any Proceeding, the Company shall indemnify, defend and hold harmless Indemnitee against all judgments, penalties, fines and amounts paid in settlement and all Expenses actually and
reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection with any such Proceeding unless it is established that (a) the act or omission of Indemnitee was material to the matter giving rise to the Proceeding and
(i) was committed in bad faith or (ii) was the result of active and deliberate dishonesty, (b) Indemnitee actually received an improper personal benefit in money, property or services or (c) in the case of any criminal
Proceeding, Indemnitee had reasonable cause to believe that [his][her] conduct was unlawful. 
 Section 5.
Certain Limits on Indemnification. Notwithstanding any other provision of this Agreement (other than Section 6), Indemnitee shall not be entitled to: 

(a) indemnification hereunder if the Proceeding was one by or in the right of the Company and Indemnitee is adjudged, in
a final adjudication of the Proceeding not subject to further appeal, to be liable to the Company; or 
 (b)
indemnification or advance of Expenses hereunder if the Proceeding was brought by Indemnitee, unless: (i) the Proceeding was brought to enforce indemnification under this Agreement, and then only to the extent in accordance with and as
authorized by Section 12 of this Agreement, or (ii) the Company’s declaration of trust or Bylaws, a resolution of the shareholders entitled to vote generally in the election of trustees or of the Board of Trustees or an agreement
approved by the Board of Trustees to which the Company is a party expressly provide otherwise. 

  
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 Section 6. Court-Ordered Indemnification. Notwithstanding any other provision of
this Agreement, a court of appropriate jurisdiction, upon application of Indemnitee and such notice as the court shall require, may order indemnification of Indemnitee by the Company in the following circumstances: 

(a) if such court determines that Indemnitee is entitled to reimbursement under Section 2-418(d)(1) of the MGCL, the
court shall order indemnification, in which case Indemnitee shall be entitled to recover the Expenses of securing such reimbursement; or 
 (b) if such court determines that Indemnitee is fairly and reasonably entitled to indemnification in view of all the relevant circumstances, whether or not Indemnitee (i) has met the standards of
conduct set forth in Section 2-418(b) of the MGCL or (ii) has been adjudged liable for receipt of an improper personal benefit under Section 2-418(c) of the MGCL, the court may order such indemnification as the court shall deem
proper. However, indemnification with respect to any Proceeding by or in the right of the Company or in which liability shall have been adjudged in the circumstances described in Section 2-418(c) of the MGCL shall be limited to Expenses.

 Section 7. Indemnification for Expenses of an Indemnitee Who is Wholly or Partially Successful. Notwithstanding
any other provision of this Agreement (other than Section 5(b) or Section 16), and without limiting any such provision, to the extent that Indemnitee was or is, by reason of [his][her] Company Status, made a party to (or otherwise
becomes a participant in) any Proceeding and is successful, on the merits or otherwise, in the defense of such Proceeding, Indemnitee shall be indemnified for all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf
in connection therewith. If Indemnitee is not wholly successful in such Proceeding but is successful, on the merits or otherwise, as to one or more but less than all claims, issues or matters in such Proceeding, the Company shall indemnify
Indemnitee under this Section 7 for all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection with each such claim, issue or matter, allocated on a reasonable and proportionate basis determined by
the Company in its reasonable discretion. For purposes of this Section 7 and, without limitation, the termination of any claim, issue or matter in such a Proceeding by dismissal, with or without prejudice, shall be deemed to be a successful
result as to such claim, issue or matter. 
 Section 8. Advance of Expenses for Indemnitee. If, by reason of
Indemnitee’s Company Status, Indemnitee is, or is threatened to be, made a party to any Proceeding, the Company shall, without requiring a preliminary determination of Indemnitee’s ultimate entitlement to indemnification hereunder, advance
all reasonable Expenses incurred by or on behalf of Indemnitee in connection with such Proceeding. Such advance or advances shall be made within ten business days after the receipt by the Company of a statement or statements requesting such advance
or advances from time to time, whether prior to or after final disposition of such Proceeding and may be in the form of, in the reasonable discretion of the Indemnitee (but without duplication) (a) payment of such Expenses directly to third
parties on behalf of Indemnitee, (b) advancement to Indemnitee of funds in an amount sufficient to pay such Expenses or (c) reimbursement to Indemnitee for Indemnitee’s payment of such Expenses. Such statement or statements shall
reasonably evidence the Expenses incurred by Indemnitee and shall include or be preceded or accompanied by a written affirmation by Indemnitee of Indemnitee’s 

  
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good faith belief that the standard of conduct necessary for indemnification by the Company as authorized by law and by this Agreement has been met and a written undertaking by or on behalf of
Indemnitee, in substantially the form attached hereto as Exhibit A or in such form as may be required under applicable law as in effect at the time of the execution thereof, to reimburse the portion of any Expenses advanced to Indemnitee,
without interest, relating to claims, issues or matters in the Proceeding as to which it shall ultimately be established that the standard of conduct has not been met by Indemnitee and which have not been successfully resolved as described in
Section 7 of this Agreement. To the extent that Expenses advanced to Indemnitee do not relate to a specific claim, issue or matter in the Proceeding, such Expenses shall be allocated on a reasonable and proportionate basis by the Company in its
reasonable discretion. The undertaking required by this Section 8 shall be an unlimited general obligation by or on behalf of Indemnitee and shall be accepted without reference to Indemnitee’s financial ability to repay such advanced
Expenses and without any requirement to post security therefor. 
 Section 9. Indemnification and Advance of Expenses as
a Witness or Other Participant. Notwithstanding any other provision of this Agreement, to the extent that Indemnitee is or may be, by reason of Indemnitee’s Company Status, made a witness or otherwise asked to participate in any Proceeding,
whether instituted by the Company or any other party, and to which Indemnitee is not a party, Indemnitee shall be advanced all reasonable Expenses and indemnified against all Expenses actually and reasonably incurred by Indemnitee or on
Indemnitee’s behalf in connection therewith within ten business days after the receipt by the Company of a statement or statements requesting any such advance or indemnification from time to time, whether prior to or after final disposition of
such Proceeding. Such statement or statements shall reasonably evidence the Expenses incurred by Indemnitee. 
 Section 10.
Procedure for Determination of Entitlement to Indemnification. 
 (a) To obtain indemnification under this Agreement,
Indemnitee shall submit to the Company a written request, including therein or therewith such documentation and information as is reasonably available to Indemnitee and is reasonably necessary to determine whether and to what extent Indemnitee is
entitled to indemnification. Indemnitee may submit one or more such requests from time to time and at such time(s) as Indemnitee deems appropriate in Indemnitee’s sole discretion. Notwithstanding the foregoing, any failure of Indemnitee to
provide such a request to the Company, or to provide such a request in a timely fashion, shall not relieve the Company of any liability that it may have to Indemnitee unless, and to the extent that, such failure actually and materially prejudices
the interests of the Company. 
 (b) Upon written request by Indemnitee for indemnification pursuant to Section 10(a)
above, a determination, if required by applicable law, with respect to Indemnitee’s entitlement thereto shall be made in the specific case: (i) if a Change in Control shall have occurred, by Independent Counsel, in a written opinion to the
Board of Trustees, a copy of which shall be delivered to Indemnitee, which Independent Counsel shall be selected by the Indemnitee and approved by the Board of Trustees in accordance with Section 2-418(e)(2)(ii) of the MGCL, which approval
shall not be unreasonably withheld; or (ii) if a Change in Control shall not have occurred, (A) by the Board of Trustees by a majority vote of a quorum consisting of Disinterested Trustees or, if such a quorum cannot be obtained, then by a
majority vote of a duly authorized committee of the Board of Trustees consisting solely of one or more Disinterested 

  
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Trustees, (B) if Independent Counsel has been selected by the Board of Trustees in accordance with Section 2-418(e)(2)(ii) of the MGCL and approved by the Indemnitee, which
approval shall not be unreasonably withheld, by Independent Counsel, in a written opinion to the Board of Trustees, a copy of which shall be delivered to Indemnitee or (C) if so directed by a majority of the members of the Board of Trustees, by
the shareholders of the Company. The Company will promptly advise Indemnitee in writing with respect to any determination that Indemnitee is or is not entitled to indemnification, including a description of any reason or basis for which
indemnification has been denied. If it is so determined that Indemnitee is entitled to indemnification, payment to Indemnitee shall be made within ten (10) days after such determination. Indemnitee shall cooperate with the person, persons or
entity making such determination with respect to Indemnitee’s entitlement to indemnification, including providing to such person, persons or entity upon reasonable advance request any documentation or information which is not privileged or
otherwise protected from disclosure and which is reasonably available to Indemnitee and reasonably necessary to such determination in the discretion of the Board of Trustees or Independent Counsel if retained pursuant to clause (ii)(B) of this
Section 10(b). Any Expenses incurred by Indemnitee in so cooperating with the person, persons or entity making such determination shall be borne by the Company (irrespective of the determination as to Indemnitee’s entitlement to
indemnification) and the Company shall indemnify and hold Indemnitee harmless therefrom. 
 (c) The Company shall pay the
reasonable fees and expenses of Independent Counsel, if one is appointed. 
 Section 11. Presumptions and Effect of
Certain Proceedings. It is the intent of this Agreement to secure for Indemnitee rights of indemnity that are as favorable as may be permitted under the MGCL and public policy of the State of Maryland. Accordingly, the parties agree that the
following procedures and presumptions shall apply in the event of any question as to whether Indemnitee is entitled to indemnification under this Agreement: 
 (a) In making any determination with respect to entitlement to indemnification hereunder, the person or persons or entity making such determination shall presume that Indemnitee is entitled to
indemnification under this Agreement if Indemnitee has submitted a request for indemnification in accordance with Section 10(a) of this Agreement, and the Company shall have the burden of proof to overcome that presumption in connection with
the making of any determination contrary to that presumption. 
 (b) The termination of any Proceeding or of any claim, issue or
matter therein, by judgment, order, settlement or conviction, upon a plea of nolo contendere or its equivalent, or entry of an order of probation prior to judgment, does not create a presumption that Indemnitee did not meet the requisite
standard of conduct described herein for indemnification. 
 (c) The Company acknowledges that a settlement or other disposition
short of final judgment may be successful if it permits a party to avoid expense, delay, distraction, disruption and uncertainty. In the event that any action, claim or proceeding to which Indemnitee is a party is resolved in any manner other than
by adverse judgment against Indemnitee (including, without limitation, settlement of such action, claim or proceeding with or without payment of money or other consideration) it shall be presumed that Indemnitee has been successful on the merits or

  
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otherwise in such action, suit or proceeding. Anyone seeking to overcome this presumption shall have the burden of proof and the burden of persuasion by clear and convincing evidence. 

(d) The knowledge and/or actions, or failure to act, of any other trustee, officer, employee or agent of the Company or any other
director, trustee, officer, partner, manager, managing member, fiduciary, employee or agent of any other foreign or domestic corporation, partnership, limited liability company, joint venture, trust, employee benefit plan or other enterprise shall
not be imputed to Indemnitee for purposes of determining any other right to indemnification under this Agreement. 

Section 12. Remedies of Indemnitee. 
 (a) If (i) a determination is made pursuant to Section 10(b) of this Agreement that Indemnitee is not entitled to indemnification under this Agreement, (ii) advance of Expenses is not
timely made pursuant to Sections 8 or 9 of this Agreement, (iii) no determination of entitlement to indemnification shall have been made pursuant to Section 10(b) of this Agreement within 60 days after receipt by the Company of the request
for indemnification, (iv) payment of indemnification is not made pursuant to Sections 7 or 9 of this Agreement within ten (10) days after receipt by the Company of a written request therefor, or (v) payment of indemnification pursuant
to any other section of this Agreement or the declaration of trust or Bylaws of the Company is not made within thirty (30) days after a determination has been made that Indemnitee is entitled to indemnification, Indemnitee shall be entitled to
an adjudication in an appropriate court located in the State of Maryland, or in any other court of competent jurisdiction, of Indemnitee’s entitlement to such indemnification or advance of Expenses. Alternatively, Indemnitee, at
Indemnitee’s option, may seek an award in arbitration to be conducted by a single arbitrator pursuant to the Commercial Arbitration Rules of the American Arbitration Association. Indemnitee shall commence a proceeding seeking an adjudication or
an award in arbitration within 180 days following the date on which Indemnitee first has the right to commence such proceeding pursuant to this Section 12(a); provided, however, that the foregoing clause shall not apply to a proceeding brought
by Indemnitee to enforce [his][her] rights under Section 7 of this Agreement. Except as set forth herein, the provisions of Maryland law (without regard to its conflicts of laws rules) shall apply to any such arbitration. The Company
shall not oppose Indemnitee’s right to seek any such adjudication or award in arbitration. 
 (b) In any judicial
proceeding or arbitration commenced pursuant to this Section 12, Indemnitee shall be presumed to be entitled to indemnification or advance of Expenses, as the case may be, under this Agreement and the Company shall have the burden of proving
that Indemnitee is not entitled to indemnification or advance of Expenses, as the case may be. If Indemnitee commences a judicial proceeding or arbitration pursuant to this Section 12, Indemnitee shall not be required to reimburse the Company
for any advances pursuant to Section 8 of this Agreement until a final determination is made with respect to Indemnitee’s entitlement to indemnification (as to which all rights of appeal have been exhausted or lapsed). The Company shall,
to the fullest extent not prohibited by law, be precluded from asserting in any judicial proceeding or arbitration commenced pursuant to this Section 12 that the procedures and presumptions of this Agreement are not valid, binding and
enforceable and shall stipulate in any such court or before any such arbitrator that the Company is bound by all of the provisions of this Agreement. 

  
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 (c) If a determination shall have been made pursuant to Section 10(b) of this Agreement
that Indemnitee is entitled to indemnification, the Company shall be bound by such determination in any judicial proceeding or arbitration commenced pursuant to this Section 12, absent a misstatement by Indemnitee of a material fact, or an
omission of a material fact necessary to make Indemnitee’s statement not materially misleading, in connection with the request for indemnification. 
 (d) In the event that Indemnitee is successful in seeking, pursuant to this Section 12, a judicial adjudication of or an award in arbitration to enforce Indemnitee’s rights under, or to recover
damages for breach of, this Agreement, Indemnitee shall be entitled to recover from the Company, and shall be indemnified by the Company for, any and all Expenses actually and reasonably incurred by him in such judicial adjudication or arbitration.
If it shall be determined in such judicial adjudication or arbitration that Indemnitee is entitled to receive part but not all of the indemnification or advance of Expenses sought, the Expenses incurred by Indemnitee in connection with such judicial
adjudication or arbitration shall be appropriately allocated by the Company in its reasonable discretion. 

(e) Interest shall be paid by the Company to Indemnitee at the maximum rate allowed to be charged for judgments
under the Courts and Judicial Proceedings Article of the Annotated Code of Maryland for amounts which the Company pays or is obligated to pay for the period (i) commencing with either the tenth (10th) day after the date on which the Company was requested to
advance Expenses in accordance with Sections 8 or 9 of this Agreement or the sixtieth (60th) day after the date on which the Company was requested to make the determination of entitlement to indemnification under Section 10(b) of this Agreement, as applicable, and (ii) ending on
the date such payment is made to Indemnitee by the Company. 
 (f) Notwithstanding anything in this Agreement to the contrary,
no determination as to entitlement to indemnification under this Agreement shall be required to be made prior to the final disposition of the Proceeding. 
 Section 13. Defense of the Underlying Proceeding. 
 (a) Indemnitee
shall notify the Company promptly in writing upon being served with any summons, citation, subpoena, complaint, indictment, request or other document relating to any Proceeding which may result in the right to indemnification or the advance of
Expenses hereunder and shall include with such notice a description of the nature of the Proceeding and a summary of the facts underlying the Proceeding. The failure to give any such notice shall not disqualify Indemnitee from the right, or
otherwise affect in any manner any right of Indemnitee, to indemnification or the advance of Expenses under this Agreement unless the Company’s ability to defend in such Proceeding or to obtain proceeds under any insurance policy is materially
and adversely prejudiced thereby, and then only to the extent the Company is thereby actually so prejudiced. 
 (b) Subject to
the provisions of the last sentence of this Section 13(b) and of Section 13(c) below, the Company shall have the right to defend Indemnitee in any Proceeding which may give rise to indemnification hereunder; provided, however, that the
Company shall notify Indemnitee of any such decision to defend within 15 calendar days following receipt of 

  
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notice of any such Proceeding under Section 13(a) above. The Company shall not, without the prior written consent of Indemnitee, which shall not be unreasonably withheld or delayed, consent
to the entry of any judgment against Indemnitee or enter into any settlement or compromise which (i) includes an admission of fault of Indemnitee, (ii) does not include, as an unconditional term thereof, the full release of Indemnitee from
all liability in respect of such Proceeding, which release shall be in form and substance reasonably satisfactory to Indemnitee or (iii) would impose any Expense, judgment, fine, penalty or limitation on Indemnitee. This Section 13(b)
shall not apply to a Proceeding brought by Indemnitee under Section 12 of this Agreement. 
 (c) Notwithstanding the
provisions of Section 13(b) above, if in a Proceeding to which Indemnitee is a party by reason of Indemnitee’s Company Status, (i) Indemnitee reasonably concludes, based upon advice of counsel approved by the Company, which approval
shall not be unreasonably withheld, that Indemnitee may have separate defenses or counterclaims to assert with respect to any issue which may not be consistent with other defendants in such Proceeding, (ii) Indemnitee reasonably concludes,
based upon advice of counsel approved by the Company, which approval shall not be unreasonably withheld, that an actual or apparent conflict of interest or potential conflict of interest exists between Indemnitee and the Company, or (iii) if
the Company fails to assume the defense of such Proceeding in a timely manner, Indemnitee shall be entitled to be represented by separate legal counsel of Indemnitee’s choice, subject to the prior approval of the Company, which approval shall
not be unreasonably withheld, at the expense of the Company. In addition, if the Company fails to comply with any of its obligations under this Agreement or in the event that the Company or any other person takes any action to declare this Agreement
void or unenforceable, or institutes any Proceeding to deny or to recover from Indemnitee the benefits intended to be provided to Indemnitee hereunder, Indemnitee shall have the right to retain counsel of Indemnitee’s choice, subject to the
prior approval of the Company, which approval shall not be unreasonably withheld, at the expense of the Company (subject to Section 12(d) of this Agreement), to represent Indemnitee in connection with any such matter. 

Section 14. Non-Exclusivity; Survival of Rights; Subrogation. 

(a) The rights of indemnification and advance of Expenses as provided by this Agreement shall not be deemed exclusive of any other rights
to which Indemnitee may at any time be entitled under applicable law, the declaration of trust or Bylaws of the Company, any agreement or a resolution of the shareholders entitled to vote generally in the election of trustees or of the Board of
Trustees, or otherwise. Unless consented to in writing by Indemnitee, no amendment, alteration or repeal of this Agreement or of any provision hereof shall limit or restrict any right of Indemnitee under this Agreement in respect of any action taken
or omitted by such Indemnitee in [his][her] Company Status prior to such amendment, alteration or repeal, regardless of whether a claim with respect to such action or inaction is raised prior or subsequent to such amendment, alteration or
repeal. No right or remedy herein conferred is intended to be exclusive of any other right or remedy, and every other right or remedy shall be cumulative and in addition to every other right or remedy given hereunder or now or hereafter existing at
law or in equity or otherwise. The assertion of any right or remedy hereunder, or otherwise, shall not prohibit the concurrent assertion or employment of any other right or remedy. 

  
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 (b) In the event of any payment under this Agreement, the Company shall be subrogated to the
extent of such payment to all of the rights of recovery of Indemnitee, who shall execute all papers required and take all action necessary to secure such rights, including execution of such documents as are necessary to enable the Company to bring
suit to enforce such rights. 
 Section 15. Insurance. 

(a) The Company will use its reasonable best efforts to acquire directors and officers liability insurance, on terms and conditions
deemed appropriate by the Board of Trustees, with the advice of counsel, covering Indemnitee or any claim made against Indemnitee by reason of [his][her] Company Status and covering the Company for any indemnification or advance of Expenses
made by the Company to Indemnitee for any claims made against Indemnitee by reason of [his][her] Company Status. In the event of a Change in Control, the Company shall maintain in force any and all directors and officers liability insurance
policies that were maintained by the Company immediately prior to the Change in Control for a period of six years with the insurance carrier or carriers and through the insurance broker in place at the time of the Change of Control; provided,
however, (i) if the carriers will not offer the same policy and an expiring policy needs to be replaced, a policy substantially comparable in scope and amount shall be obtained and (ii) if any replacement insurance carrier is necessary to
obtain a policy substantially comparable in scope and amount, such insurance carrier shall have an AM Best rating that is the same or better than the AM Best rating of existing insurance carrier; provided, further, however, in no event shall the
Company be required to expend in the aggregate in excess of 250% of the annual premium or premiums paid by the Company for directors and officers liability insurance in effect on the date of the Change in Control. In the event that 250% of the
annual premium paid by the Company for such existing directors and officers liability insurance is insufficient for such coverage, the Company shall spend up to that amount to purchase such lesser coverage as may be obtained with such amount.

 (b) Without in any way limiting any other obligation under this Agreement, the Company shall indemnify Indemnitee for any
payment by Indemnitee arising out of the amount of any deductible or retention and the amount of any excess of the aggregate of all judgments, penalties, fines, settlements and Expenses incurred by Indemnitee in connection with a Proceeding over the
coverage of any insurance referred to in the previous sentence. The purchase, establishment and maintenance of any such insurance shall not in any way limit or affect the rights or obligations of the Company or Indemnitee under this Agreement except
as expressly provided herein, and the execution and delivery of this Agreement by the Company and the Indemnitee shall not in any way limit or affect the rights or obligations of the Company under any such insurance policies. If, at the time the
Company receives notice from any source of a Proceeding to which Indemnitee is a party or a participant (as a witness or otherwise) the Company has director and officer liability insurance in effect, the Company shall give prompt notice of such
Proceeding to the insurers in accordance with the procedures set forth in the respective policies. 
 Section 16.
Coordination of Payments. The Company shall not be liable under this Agreement to make any payment of amounts otherwise indemnifiable or payable or reimbursable 

  
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as Expenses hereunder if and to the extent that Indemnitee has otherwise actually received such payment under any insurance policy, contract, agreement or otherwise. 

Section 17. Contribution. If the indemnification provided in this Agreement is unavailable in whole or in part and may not be
paid to Indemnitee for any reason, other than for failure to satisfy the standard of conduct set forth in Section 4 or due to the provisions of Section 5, then, in respect to any Proceeding in which the Company is jointly liable with
Indemnitee (or would be if joined in such Proceeding), to the fullest extent permissible under applicable law, the Company, in lieu or indemnifying and holding harmless Indemnitee, shall pay, in the first instance, the entire amount incurred by
Indemnitee, whether for Expenses, judgments, penalties, and/or amounts paid or to be paid in settlement, in connection with any Proceeding without requiring Indemnitee to contribute to such payment, and the Company hereby waives and relinquished any
right of contribution it may have at any time against Indemnitee. 
 Section 18. Reports to Shareholders. To the
extent required by the MGCL, the Company shall report in writing to its shareholders the payment of any amounts for indemnification of, or advance of Expenses to, Indemnitee under this Agreement arising out of a Proceeding by or in the right of the
Company with the notice of the meeting of shareholders of the Company next following the date of the payment of any such indemnification or advance of Expenses or prior to such meeting. 

Section 19. Duration of Agreement; Binding Effect. 

(a) This Agreement shall continue until and terminate on the later of (i) ten (10) years after the date that
Indemnitee shall have ceased to serve as a trustee, officer, employee or agent of the Company or as a director, trustee, officer, partner, manager, managing member, fiduciary, employee or agent of any other foreign or
domestic corporation, real estate investment trust, partnership, limited liability company, joint venture, trust, employee benefit plan or other enterprise that such person is or was serving in such capacity at the request of the Company and
(ii) one (1) year after final termination of any Proceeding (including any rights of appeal) in respect of which Indemnitee is granted rights of indemnification or advancement of Expenses hereunder (including any Proceeding commenced by
Indemnitee pursuant to Section 12 of this Agreement). 
 (b) The indemnification and advance of Expenses
provided by, or granted pursuant to, this Agreement shall be binding upon and be enforceable by the parties hereto and their respective successors and assigns (including any direct or indirect successor by purchase, merger, consolidation or
otherwise to all or substantially all of the business or assets of the Company), shall continue as to an Indemnitee who has ceased to be a trustee, officer, employee or agent of the Company or a director, trustee, officer, partner, manager, managing
member, fiduciary, employee or agent of any other foreign or domestic corporation, partnership, limited liability company, joint venture, trust, employee benefit plan or other enterprise that such person is or was serving in such capacity at the
request of the Company, and shall inure to the benefit of Indemnitee and 

  
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Indemnitee’s spouse, assigns, heirs, devisees, executors and administrators and other legal representatives during the term hereof. 

(c) The Company shall require and cause any successor (whether direct or indirect by purchase, merger, consolidation or
otherwise) to all, substantially all or a substantial part, of the business and/or assets of the Company, by written agreement in form and substance satisfactory to Indemnitee, expressly to assume and agree to perform this Agreement in the same
manner and to the same extent that the Company would be required to perform if no such succession had taken place. 
 (d) The Company and Indemnitee agree that a monetary remedy for breach of this Agreement, at some later date, may be inadequate, impracticable and difficult of proof, and further agree that such breach
may cause Indemnitee irreparable harm. Accordingly, the parties hereto agree that Indemnitee may enforce this Agreement by seeking injunctive relief and/or specific performance hereof, without any necessity of showing actual damage or irreparable
harm and that by seeking injunctive relief and/or specific performance, Indemnitee shall not be precluded from seeking or obtaining any other relief to which Indemnitee may be entitled. Indemnitee shall further be entitled to such specific
performance and injunctive relief, including temporary restraining orders, preliminary injunctions and permanent injunctions, without the necessity of posting bonds or other undertakings in connection therewith. The Company acknowledges that, in the
absence of a waiver, a bond or undertaking may be required of Indemnitee by a court, and the Company hereby waives any such requirement of such a bond or undertaking. 
 Section 20. Severability. If any provision or provisions of this Agreement shall be held to be invalid, illegal or unenforceable for any reason whatsoever: (a) the validity, legality and
enforceability of the remaining provisions of this Agreement (including, without limitation, each portion of any Section, paragraph or sentence of this Agreement containing any such provision held to be invalid, illegal or unenforceable that is not
itself invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby and shall remain enforceable to the fullest extent permitted by law; (b) such provision or provisions shall be deemed reformed to the extent
necessary to conform to applicable law and to give the maximum effect to the intent of the parties hereto; and (c) to the fullest extent possible, the provisions of this Agreement (including, without limitation, each portion of any Section,
paragraph or sentence of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) shall be construed so as to give effect to the intent manifested thereby.

 Section 21. Identical Counterparts. This Agreement may be executed in one or more counterparts, each of which
shall for all purposes be deemed to be an original but all of which together shall constitute one and the same Agreement. One such counterpart signed by the party against whom enforceability is sought shall be sufficient to evidence the existence of
this Agreement. 

  
 -12-

 Section 22. Headings. The headings of the paragraphs of this Agreement are
inserted for convenience only and shall not be deemed to constitute part of this Agreement or to affect the construction thereof. 
 Section 23. Modification and Waiver. No supplement, modification or amendment of this Agreement shall be binding unless executed in writing by both of the parties hereto. No waiver of any of
the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions hereof (whether or not similar) nor shall such waiver constitute a continuing waiver. 

Section 24. Notices. All notices, requests, demands and other communications hereunder shall be in writing and shall be
deemed to have been duly given if (i) delivered by hand and receipted for by the party to whom said notice or other communication shall have been directed, on the day of such delivery, or (ii) mailed by certified or registered mail with
postage prepaid, on the third business day after the date on which it is so mailed: 
 (a) If to Indemnitee, to the address set
forth on the signature page hereto. 
 (b) If to the Company, to: 

Ellington Residential Mortgage REIT 

53 Forest Avenue, 3rd Floor 
 Old Greenwich, CT 06870 
 Attention: President and Chief Executive
Officer 
 or to such other address as may have been furnished in writing to Indemnitee by the Company or to the Company by Indemnitee, as the
case may be. 
 Section 25. Governing Law. This Agreement shall be governed by, and construed and enforced in
accordance with, the laws of the State of Maryland, without regard to its conflicts of laws rules. 
 [Signatures appear on
following page.] 

  
 -13-

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

			
	COMPANY:
	
	ELLINGTON RESIDENTIAL MORTGAGE REIT
		
	By:	 	 

 
			
	Name:	 	
	Title:	 	

  

			
	 INDEMNITEE
  

 

	 
	Name:	 	
	Address:	 	

 EXHIBIT A 
 AFFIRMATION AND UNDERTAKING TO REPAY EXPENSES ADVANCED 
 To: The Board of Trustees of Ellington
Residential Mortgage REIT 
 Re: Affirmation and Undertaking 
 Ladies and Gentlemen: 
 This Affirmation and Undertaking is being provided
pursuant to that certain Indemnification Agreement dated the          day of                 , 2013, by and between
Ellington Residential Mortgage REIT, a Maryland real estate investment trust (the “Company”), and the undersigned Indemnitee (the “Indemnification Agreement”), pursuant to which I am entitled to advance of Expenses in connection
with [Description of Proceeding] (the “Proceeding”). 
 Terms used herein and not otherwise defined shall have
the meanings specified in the Indemnification Agreement. 
 I am subject to the Proceeding by reason of my Company Status or by
reason of alleged actions or omissions by me in such capacity. I hereby affirm my good faith belief that at all times, insofar as I was involved as [a trustee [an officer] of the Company, in any of the facts or events giving rise to the
Proceeding, I (1) did not act with bad faith or active or deliberate dishonesty, (2) did not receive any improper personal benefit in money, property or services and (3) in the case of any criminal proceeding, had no reasonable cause
to believe that any act or omission by me was unlawful. 
 In consideration of the advance of Expenses by the Company for
reasonable attorneys’ fees and related Expenses incurred by me in connection with the Proceeding (the “Advanced Expenses”), I hereby agree that if, in connection with the Proceeding, it is established that (1) an act or omission
by me was material to the matter giving rise to the Proceeding and (a) was committed in bad faith or (b) was the result of active and deliberate dishonesty or (2) I actually received an improper personal benefit in money, property or
services or (3) in the case of any criminal proceeding, I had reasonable cause to believe that the act or omission was unlawful, then I shall promptly reimburse the portion of the Advanced Expenses relating to the claims, issues or matters in
the Proceeding as to which the foregoing findings have been established. 
 IN WITNESS WHEREOF, I have executed this Affirmation
and Undertaking on this          day of                 , 20    . 

Name:

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