Document:

exv4w7

 

Exhibit 4.7

STOCK PURCHASE AGREEMENT

BY AND AMONG

KANSAS CITY SOUTHERN,

a Delaware corporation,

GRUPO TMM, S.A.,

a sociedad anónima

organized under the laws of the United Mexican States,

AND

TFM, S.A. de C.V.,

a sociedad anónima de capital variable

organized under the laws of the United Mexican States,

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	ARTICLE I. PURCHASE AND SALE OF TRANSFERRED SHARES	 	 	2	 
	 
	 	1.1	 	Purchase and Sale	 	 	2	 
	 
	 	1.2	 	The Initial Closing	 	 	2	 
	 
	 	1.3	 	Consideration	 	 	2	 
	 
	 	1.4	 	Purchase Option and Obligation	 	 	2	 
	 
	 	1.5	 	Deliveries at Closing	 	 	2	 
	 
	 	1.6	 	Voting Trust	 	 	3	 
	 
	 	1.7	 	Payment of Accounts Receivable	 	 	3	 
	ARTICLE II. REPRESENTATIONS AND WARRANTIES CONCERNING THE TRANSACTION	 	 	3	 
	 
	 	2.1	 	Representations and Warranties of GTMM and TFM	 	 	3	 
	 
	 	2.2	 	Representations and Warranties of KCS	 	 	4	 
	ARTICLE III. REPRESENTATIONS AND WARRANTIES CONCERNING MX AND TMX	 	 	5	 
	 
	 	3.1	 	Organization, Qualification, and Corporate Power	 	 	5	 
	 
	 	3.2	 	Capitalization of MX and TMX	 	 	5	 
	 
	 	3.3	 	Brokers’ Fees	 	 	6	 
	 
	 	3.4	 	Title to Assets	 	 	6	 
	 
	 	3.5	 	Financial Statements	 	 	6	 
	 
	 	3.6	 	Events Subsequent to Most Recent Fiscal Year End	 	 	6	 
	 
	 	3.7	 	Undisclosed Liabilities	 	 	6	 
	 
	 	3.8	 	Legal Compliance	 	 	6	 
	 
	 	3.9	 	Tax Matters	 	 	7	 
	 
	 	3.10	 	Real Property	 	 	7	 
	 
	 	3.11	 	[intentionally left blank]	 	 	8	 
	 
	 	3.12	 	Tangible Assets	 	 	8	 
	 
	 	3.13	 	Contracts	 	 	8	 
	 
	 	3.14	 	Employee Benefit Plans	 	 	9	 
	 
	 	3.15	 	Labor Matters	 	 	10	 
	 
	 	3.16	 	Powers of Attorney	 	 	11	 
	 
	 	3.17	 	Insurance	 	 	11	 
	 
	 	3.18	 	Litigation	 	 	11	 
	 
	 	3.19	 	Environmental Matters	 	 	11	 
	 
	 	3.20	 	Exception for Operation by KCS	 	 	12	 
	ARTICLE IV. COVENANTS OF GTMM AND TFM	 	 	12	 
	 
	 	4.1	 	Conduct of MX and TMX Through Initial Closing Date	 	 	12	 
	 
	 	4.2	 	Access to Information	 	 	12	 
	 
	 	4.3	 	Affiliate Agreements Terminated	 	 	13	 
	 
	 	4.4	 	Credit Agreements	 	 	13	 
	ARTICLE V. COVENANTS OF KCS	 	 	13	 
	 
	 	5.1	 	Compliance with Bridge Rules	 	 	13	 
	 
	 	5.2	 	Right of First Refusal	 	 	13	 
	 
	 	5.3	 	Repair Debt	 	 	14	 
	ARTICLE VI. COVENANTS OF ALL PARTIES	 	 	14	 
	 
	 	6.1	 	General	 	 	14	 

 

 

	 	 	 	 	 	 	 	 	 
	 
	 	6.2	 	Cooperation to Obtain STB Approval	 	 	14	 
	 
	 	6.3	 	Notice of Developments	 	 	14	 
	 
	 	6.4	 	MX and TMX Employees Assigned to TFM	 	 	14	 
	ARTICLE VII. CONDITIONS TO OBLIGATION TO CLOSE	 	 	14	 
	 
	 	7.1	 	Mutual Conditions to Obligations to Close	 	 	14	 
	 
	 	7.2	 	Conditions to Obligations of KCS to Close	 	 	15	 
	 
	 	7.3	 	Conditions to Obligations of TFM to Close	 	 	16	 
	ARTICLE VIII. REMEDIES FOR BREACHES OF THIS AGREEMENT	 	 	16	 
	 
	 	8.1	 	Survival of Representations and Warranties	 	 	16	 
	 
	 	8.2	 	Indemnification Provisions for Benefit of KCS	 	 	16	 
	 
	 	8.3	 	Indemnification Provisions for Benefit of GTMM and TFM	 	 	17	 
	 
	 	8.4	 	Determination of Adverse Consequences	 	 	18	 
	 
	 	8.5	 	Specific Performance	 	 	18	 
	ARTICLE IX. TERMINATION	 	 	18	 
	 
	 	9.1	 	Termination of Agreement	 	 	18	 
	 
	 	9.2	 	Effect of Termination	 	 	18	 
	ARTICLE X. MISCELLANEOUS	 	 	19	 
	 
	 	10.1	 	Amendments and Waivers	 	 	19	 
	 
	 	10.2	 	Entire Agreement	 	 	19	 
	 
	 	10.3	 	Counterparts	 	 	19	 
	 
	 	10.4	 	No Third-Party Beneficiaries	 	 	19	 
	 
	 	10.5	 	Succession and Assignment	 	 	19	 
	 
	 	10.6	 	Headings	 	 	19	 
	 
	 	10.7	 	Notices	 	 	19	 
	 
	 	10.8	 	Expenses	 	 	20	 
	 
	 	10.9	 	Announcements	 	 	20	 
	 
	 	10.10	 	Governing Law; Dispute Resolution	 	 	20	 
	 
	 	10.11	 	Severability	 	 	23	 
	 
	 	10.12	 	Construction	 	 	23	 
	 
	 	10.13	 	Incorporation of Exhibits, Annexes, and Schedules	 	 	23	 
	 
	 	10.14	 	Releases	 	 	23	 
	ARTICLE XI. DEFINITIONS	 	 	24	 

	 	 	 
	Exhibit A

	 	Form of Voting Trust Agreement
	Annex I

	 	Exceptions to Representations and Warranties of GTMM and TFM
Concerning the Transaction Disclosure Schedule: Exceptions to
Representations and Warranties Concerning MX and TMX

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STOCK PURCHASE AGREEMENT

THIS STOCK PURCHASE AGREEMENT (the “Agreement”), dated as of August 16, 2004, is made and entered
into by and among:

     1. Grupo TMM, S.A. (“GTMM”), a sociedad anónima, organized under the laws of the United
Mexican States (“UMS”);

     2. TFM, S.A. de C.V. (“TFM”), a sociedad anónima de capital variable, organized under the laws
of the UMS; and

     3. Kansas City Southern (“KCS”), a Delaware corporation,
each of them a “Party” and collectively the “Parties.”

RECITALS

A. GTMM owns more than 96% of the capital stock of TMM Multimodal, S.A. de C.V. a sociedad anónima
de capital variable (“MM”).

B. KCS owns all of the capital stock of The Kansas City Southern Railway Company (“KCSR”).

C. MM directly owns 51% and KCS indirectly owns 49% (through Nafta Rail, S.A. de C.V., a sociedad
anónima de capital variable and wholly-owned Subsidiary of KCS) of the full voting shares of Grupo
Transportaciün Ferrovaria Mexicana, S.A. de C.V., a sociedad anónima de capital variable (“GTFM”).

D. GTFM owns all of the full voting shares of the capital stock of TFM.

E. Mexrail, Inc., a Delaware corporation, (“MX”) is a wholly-owned Subsidiary of TFM. MX owns all
of the capital stock of The Texas Mexican Railway Company, a Texas corporation (“TMX”). MX also
owns other assets (including real estate) and the northern one-half of the railroad bridge between
Laredo, Texas (USA) and Nuevo Laredo, Mexico.

F. TFM wishes to sell, and KCS wishes to acquire, 51% of the outstanding shares of the capital
stock of MX (the “Initially Transferred Shares”) and in addition grant KCS the exclusive option
and, under certain circumstances, the obligation, to purchase the remaining shares of the capital
stock of MX (the “Subsequently Transferred Shares”). All of the issued and outstanding shares of
the capital stock of MX acquired by KCS, including the Initially Transferred Shares and the
Subsequently Transferred Shares are referred to hereinafter as the “MX Shares” or as the
“Transferred Shares.”

 

 

          NOW, THEREFORE, in consideration of the above recitals and the representations, warranties and
covenants contained in this Agreement, the parties, intending to be legally bound, agree as
follows:

ARTICLE I.

PURCHASE AND SALE OF TRANSFERRED SHARES

     1.1 Purchase and Sale. Upon the terms and subject to the conditions of this Agreement and
in reliance upon the representations, warranties and covenants herein set forth, TFM shall sell,
assign, transfer, convey and deliver to KCS, free and clear of all Liens, and KCS shall purchase
and accept from TFM, the Initially Transferred Shares.

     1.2 The Initial Closing. Subject to Article VI of this Agreement, the closing of the
purchase and sale of the Initially Transferred Shares (the “Initial Closing”) shall take place on
such date as the parties agree, (no later than August 16, 2004) at the offices of Sonnenschein Nath
& Rosenthal, New York City, New York (the date on which the Closing occurs, the “Initial Closing
Date”). The Initial Closing shall be effective as of the close of business on the Initial Closing
Date.

     1.3 Consideration. The aggregate purchase price to be paid by KCS for the Initially
Transferred Shares shall be $32,680,000 (the “Initial Purchase Price”). The Initial Purchase Price
shall be paid to TFM in cash (U.S. dollars) less the applicable withholding described below, at the
Initial Closing by wire transfer of same day funds. In addition, on the Initial Closing Date, all
indebtedness of MX and TMX to GTMM (other than as provided in Section 1.7), TFM and any of their
affiliates, excluding the Repair Debt, shall be contributed to the capital of MX. KCS shall
withhold 10% of the Initial Purchase Price, as required under the U.S. Internal Revenue Code
(Section 1445). Promptly following the Initial Closing, KCS will deposit the amount withheld with
the U.S. Internal Revenue Service along with a filing of the appropriate tax returns and provide
copies thereof to TFM.

     1.4 Purchase Option and Obligation. TFM hereby grants to KCS an irrevocable and exclusive
option until 5:00 PM (Eastern Standard Time) on October 31, 2005 to purchase the Subsequently
Transferred Shares (the “Purchase Option”). Notwithstanding the foregoing, if KCS shall not have
exercised the Purchase Option, or otherwise acquired direct or indirect ownership of the
Subsequently Transferred Shares by October 31, 2005, then KCS shall purchase the Subsequently
Transferred Shares on October 31, 2005. Any purchase made by KCS pursuant to the Purchase Option
may be exercised by KCS upon three (3) days written notice to TFM (the “Subsequent Closing” and as
with the Initial Closing, each a “Closing”). Any purchase by KCS pursuant to this Section 1.4
shall be upon the same terms and conditions set forth in this Agreement, except that the Purchase
Price for the Subsequently Transferred Shares shall be $31,398,000. TFM is expressly prohibited
from taking, or refraining from, any action which would prevent consummation of the transactions
contemplated in this Agreement or render any of its representations, warranties and covenants set
forth in this Agreement untrue or ineffective between the Initial Closing Date and the Subsequent
Closing.

     1.5 Deliveries at Closing. At each Closing, (i) GTMM and TFM will deliver to KCS the
various certificates and documents referred to in §7.2 below, (ii) KCS will deliver to GTMM and

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TFM the certificate referred to in §7.3 below, (iii) TFM will deliver to KCS stock certificates
representing the applicable Transferred Shares for such Closing, endorsed in blank or accompanied
by duly executed assignment documents, and (iv) KCS will deliver to TFM the applicable Purchase
Price for such Closing.

     1.6 Voting Trust. Simultaneously with the purchase by KCS from TFM of the Initially
Transferred Shares, KCS shall deposit the Initially Transferred Shares into an irrevocable voting
trust (the “Voting Trust”) in accordance with the terms and conditions of a voting trust agreement
(the “Voting Trust Agreement”) substantially in the form attached hereto as Exhibit A.

     1.7 Payment of Accounts Receivable. Simultaneously with the purchase by KCS from TFM of
the Initially Transferred Shares, TMX shall make a payment to GTMM in the amount of $402,000 in
settlement of existing accounts payable in favor of GTMM.

ARTICLE II.

REPRESENTATIONS AND WARRANTIES CONCERNING THE TRANSACTION

     2.1 Representations and Warranties of GTMM and TFM. GTMM and TFM represent and warrant to
KCS that the statements contained in this §2.1 are correct and complete as of the date of this
Agreement and will be correct and complete as of each Closing (as though made then and as though
such Closing date were substituted for the date of this Agreement throughout this §2.1), except as
set forth in the disclosure schedule delivered by GTMM and TFM to KCS on the date hereof and
initialed by the Parties (the “Disclosure Schedule”).

          (a) Organization of GTMM and TFM. GTMM is a sociedad anónima and TFM is a sociedad
anónima de capital variable, each duly organized, validly existing, and in good standing under the
laws of the UMS.

          (b) Authorization of Transaction. The execution, delivery and performance of this
Agreement by each of GTMM and TFM, and the consummation by TFM of the transaction contemplated
hereby, are within the respective corporate powers of each of them, and have been duly authorized,
as to each of them, by all necessary corporate action. This Agreement constitutes the valid and
legally binding obligation of each of GTMM and TFM, enforceable in accordance with its terms and
conditions. Neither GTMM nor TFM need give any notice to, make any filing with, or obtain any
authorization, consent, or approval of any government or governmental agency in order to consummate
the transaction contemplated by this Agreement.

          (c) Non-Contravention. The execution, delivery and performance of this Agreement by
each of GTMM and TFM, and the consummation by TFM of the transaction contemplated hereby, do not
and will not (i) violate any constitution, statute, regulation, rule, injunction, judgment, order,
decree, ruling, charge, or other restriction of any government, governmental agency, or court to
which GTMM or TFM is subject, or violate any provision of the charter or bylaws of GTMM or TFM, or
(ii) conflict with, result in a breach of, constitute a default under, result in the acceleration
of, create in any party the right to accelerate, terminate, modify, or cancel, or require any
notice under any agreement, contract, lease, license, instrument, or other arrangement to which
GTMM or TFM is a party or by which any of them is bound or to

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which any of their assets is subject, including, without limitation, upon satisfaction of the
covenant in Section 4.4, the Indentures and Credit Agreement identified in Schedule 2.1.

          (d) Brokers’ Fees. Neither GTMM nor TFM has any liability or obligation to pay any
fees or commissions to any broker, finder, or agent with respect to the transaction contemplated by
this Agreement for which KCS, MX or TMX could become liable or obligated.

          (e) MX Shares. TFM holds of record and owns beneficially the MX Shares, free and
clear of any restrictions on transfer (other than those set forth in the Stock Purchase Agreement,
dated as of February 27, 2002, among GTMM, MM, KCS and TFM (the “2002 Stock Purchase Agreement”),
the GTFM bylaws, and the Shareholders Agreement) Taxes, Liens, options, warrants, purchase rights,
contracts, commitments, equities, claims, and demands. TFM is not a party to any option, warrant,
purchase right, or other contract or commitment that could require TFM to sell, transfer, or
otherwise dispose of any of the MX Shares (other than this Agreement). TFM is not a party to any
voting trust, proxy, or other agreement or understanding with respect to the voting of the MX
Shares (other than the 2002 Stock Purchase Agreement, the GTFM bylaws, and the Shareholders
Agreement). Prior to the Subsequent Closing, TFM shall not, directly or indirectly, transfer,
sell, give, encumber, assign, pledge or otherwise deal with or dispose of all or any part of the MX
Shares (other than pursuant to this Agreement).

          (f) Real Property. Since May 9, 2003, neither MX or TMX has sold or otherwise
disposed of, or entered into any agreement for a sale or other disposition of, any real property.

     2.2 Representations and Warranties of KCS. KCS represents and warrants to GTMM and TFM
that the statements contained in this §2.2 are correct and complete as of the date of this
Agreement and will be correct and complete as of each Closing (as though made then and as though
such Closing date were substituted for the date of this Agreement throughout this §2.2).

          (a) Organization of KCS. KCS is a corporation duly organized, validly existing, and
in good standing under the laws of Delaware.

          (b) Authorization of Transaction. The execution, delivery and performance by KCS of
this Agreement and the consummation by KCS of the transaction contemplated hereby are within KCS’s
corporate powers and have been duly authorized by all necessary corporate action. This Agreement
constitutes the valid and legally binding obligation of KCS, enforceable in accordance with its
terms and conditions. KCS need not give any notice to, make any filing with, or obtain any
authorization, consent, or approval of any government or governmental agency in order to consummate
the transaction contemplated by this Agreement.

          (c) Non-Contravention. The execution, delivery and performance of this Agreement by
KCS, and the consummation by KCS of the transaction contemplated hereby, do not and will not (i)
violate any constitution, statute, regulation, rule, injunction, judgment, order, decree, ruling,
charge, or other restriction of any government, governmental agency, or court to which KCS is
subject, or violate any provision of its charter or bylaws, or (ii) conflict with, result in a
breach of, constitute a default under, result in the acceleration of, create in any party the right
to accelerate, terminate, modify, or cancel, or require any notice under any agreement,

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contract, lease, license, instrument, or other arrangement to which KCS is a party or by which
it is bound or to which any of its assets is subject, except the consents required under the KCS
Credit Agreement.

          (d) Brokers’ Fees. KCS has no liability or obligation to pay any fees or commissions
to any broker, finder, or agent with respect to the transaction contemplated by this Agreement for
which GTMM or TFM could become liable or obligated.

ARTICLE III.

REPRESENTATIONS AND WARRANTIES CONCERNING MX AND TMX

     GTMM and TFM represent and warrant to KCS that the statements contained in this Article III
are correct and complete as of the date of this Agreement and will be correct and complete as of
the Initial Closing Date (as though made then and as though the Initial Closing Date were
substituted for the date of this Agreement throughout this Article III), except as set forth in the
Disclosure Schedule.

     3.1 Organization, Qualification, and Corporate Power. MX is a corporation duly organized,
validly existing, and in good standing under the laws of Delaware. TMX is a corporation duly
organized, validly existing, and in good standing under the laws of Texas. Each of MX and TMX is
duly authorized to conduct business and is in good standing under the laws of each jurisdiction
where such qualification is required, except where the lack of such qualification would not
reasonably be expected to have a Material Adverse Effect. Each of MX and TMX has full corporate
power and authority to carry on the businesses in which it is engaged and to own and use the
properties owned and used by it. Section 3.1 of the Disclosure Schedule lists the directors and
officers of each of MX and TMX as of the date hereof, and the directors and officers of each of MX
and TMX as of the Initial Closing Date.

     3.2 Capitalization of MX and TMX.

          (a) The entire authorized capital stock of MX consists of 10,000 shares of common stock, no
par value, of which 10,000 shares are issued and outstanding. MX holds no shares of MX’s capital
stock in its treasury. All of the issued and outstanding shares have been duly authorized, and are
validly issued, fully paid, and nonassessable. There are no outstanding or authorized options,
warrants, purchase rights, subscription rights, conversion rights, exchange rights, preemptive
rights or other contracts or commitments that could require MX to issue, sell, or otherwise cause
to become outstanding any of its capital stock. There are no outstanding or authorized stock
appreciation, phantom stock, profit participation, or similar rights with respect to MX. TFM is
the record and beneficial owner of 100% of the MX Shares, and TFM owns the MX Shares free and clear
of all Liens, and there are no voting trusts, proxies, or other agreements or understandings with
respect to the voting of the capital stock of MX, other than the 2002 Stock Purchase Agreement, the
GTFM bylaws, and the Shareholders Agreement.

          (b) The entire authorized capital stock of TMX consists of 25,000 shares of common stock, no
par value, of which 25,000 shares are issued and outstanding, including

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equitable interests in directors’ qualifying shares. TMX holds no shares of TMX’s capital
stock in its treasury. All of the issued and outstanding shares have been duly authorized, and are
validly issued, fully paid, and nonassessable. There are no outstanding or authorized options,
warrants, purchase rights, subscription rights, conversion rights, exchange rights, preemptive
rights or other contracts or commitments that could require TMX to issue, sell, or otherwise cause
to become outstanding any of its capital stock. There are no outstanding or authorized stock
appreciation, phantom stock, profit participation, or similar rights with respect to TMX. MX is
the record and beneficial owner of 100% of the TMX capital stock (except for one qualifying share
of the capital stock of TMX owned by each of its directors, the equitable interest of each such
share being held by MX). MX owns the TMX capital stock free and clear of all Liens, and there are
no voting trusts, proxies, or other agreements or understandings with respect to the voting of the
capital stock of TMX, other than the 2002 Stock Purchase Agreement, the GTFM bylaws, and the
Shareholders Agreement.

     3.3 Brokers’ Fees. Neither MX nor TMX has any liability or obligation to pay any fees or
commissions to any broker, finder, or agent with respect to the transaction contemplated by this
Agreement.

     3.4 Title to Assets. MX and TMX each own or have a right to possess and use all of the
properties and assets necessary to operate the business of MX and TMX as each has been conducted
immediately prior to the date of this Agreement, subject to the exceptions identified in Section
3.10 of the Disclosure Schedule, which singly or in the aggregate do not have any material effect
upon the ownership or operation of such properties or assets.

     3.5 Financial Statements. The financial statements (collectively the “Financial
Statements”) heretofore provided to KCS by GTMM and TFM, consisting of (i) the audited consolidated
balance sheets and statements of income, changes in stockholders’ equity, and cash flow as of and
for the fiscal years ended 2002 and 2003, for MX and TMX have been prepared in accordance with GAAP
applied on a consistent basis throughout the periods covered thereby and present fairly, in all
material respects, the financial condition of MX and TMX as of such dates and the results of
operations of MX and TMX for such periods (subject in the case of any interim financial statements
to normal year-end adjustments and lack footnotes and other presentation items).

     3.6 Events Subsequent to Most Recent Fiscal Year End. Since December 31, 2003, MX and TMX
have carried out their respective businesses in the ordinary course, consistent with past practices
and there has not been any event or occurrence that has had or would reasonably be expected to have
a Material Adverse Effect.

     3.7 Undisclosed Liabilities. Except as disclosed in the Financial Statements, neither MX
nor TMX has any liabilities or obligations of any nature that would be required under GAAP to be
included on a consolidated balance sheet of MX or the notes to the consolidated balance sheet,
except as would not reasonably be expected to have a Material Adverse Effect.

     3.8 Legal Compliance. Each of MX and TMX has complied with all applicable laws (including
rules, regulations, codes, plans, injunctions, judgments, orders, decrees, rulings, and charges
thereunder) of federal, state, local, and foreign governments (and all agencies thereof),

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and no action, suit, proceeding, hearing, investigation, charge, complaint, claim, demand, or
notice has been filed or commenced against either of them alleging any failure so to comply, except
where the failure to comply would not have a Material Adverse Effect.

     3.9 Tax Matters.

          (a) Except as stated in Section 3.9 of the Disclosure Schedule or as would not reasonably be
expected to have a Material Adverse Effect, all MX and TMX Tax returns required to be filed on or
before the Closing Date have been duly and timely filed (taking into account all proper extensions)
with the appropriate Taxing authorities and all such Tax returns were complete and accurate, and
all Taxes shown on the described returns have been paid.

          (b) Except as stated in Section 3.9 of the Disclosure Schedule or as would not reasonably be
expected to have a Material Adverse Effect: (i) neither GTMM, TFM, MX or TMX has received any
written notice of deficiency or assessment for Taxes of MX or TMX, which have not been paid or
finally settled; (ii) no claim has been made in writing by any Taxing authority in a jurisdiction
where MX and TMX do not file Tax returns that either company is or may be subject to Taxation by
that jurisdiction; (iii) no audit of any Tax return filed by MX or TMX is pending, ongoing, or to
the Knowledge of GTMM or TFM, threatened; (iv) neither MX nor TMX has asked for or received a
waiver of any statute of limitation concerning Taxes or the payment of Taxes that are due or would
be due prior to the Closing Date; and (v) neither MX nor TMX has any liability for the Taxes of any
other person.

          (c) There are no liens for Taxes on any assets of MX or TMX other than Liens for current Taxes
(i) not yet due and payable or (ii) that would not have a Material Adverse Effect.

          (d) There are no Tax sharing or Tax indemnity agreements or similar arrangements involving MX
and TMX and any other person.

          (e) MX and TMX have each complied in all material respects with all applicable governmental
rules relating to the payment, collection and withholding of Taxes.

          (f) Except as stated on Section 3.9 of the Disclosure Schedule, there is no Tax litigation
pending or to the Knowledge of GTMM and TFM (or the directors of TFM appointed by GTMM) threatened
against MX or TMX.

          (g) From December 31, 2003 until the date of this Agreement, MX and TMX (i) have made no
change in any accounting method used for Tax purposes or in depreciation or amortization policies,
and have made no election for Tax purposes which is not consistent with the method, policies and
elections made prior to the date of the Financial Statements; and (ii) have not settled any pending
Tax audits or settled any Tax liability.

     3.10 Real Property.

          (a) Section 3.10 of the Disclosure Schedule lists and describes briefly all real property that
either MX or TMX owns. With respect to each such parcel of owned real property,

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except as set forth in Section 3.10 of the Disclosure Schedule, the identified owner has good
and marketable title to the parcel of real property, free and clear of any Lien, easement,
covenant, or other restriction, except for installments of special assessments not yet delinquent,
recorded easements, covenants, and other restrictions, and utility easements, building
restrictions, zoning restrictions, and other easements and restrictions existing generally with
respect to properties of a similar character which do not affect materially and adversely the
current use, occupancy, or value, or the marketability of title, of the property subject thereto.

          (b) Section 3.10 of the Disclosure Schedule (and all Annexes thereto) lists and describes
briefly all real property leased or subleased to either MX or TMX or from either MX or TMX. With
respect to each material lease and sublease listed in Section 3.10 of the Disclosure Schedule (or
any Annex thereto), (i) the lease or sublease is legal, valid, binding, enforceable, and in full
force and effect in all material respects, (ii) no party to the lease or sublease is in material
breach or default, and (iii) no event has occurred which, with notice or lapse of time, would
constitute a material breach or default or permit termination, modification, or acceleration
thereunder.

     3.11 [intentionally left blank]

     3.12 Tangible Assets. The buildings, machinery, equipment, and other tangible assets that
MX and TMX own and lease, other than tangible assets having a book value of less than $1 million,
are in good condition and repair, normal wear and tear excepted.

     3.13 Contracts. As of the date of this Agreement, the Scheduled Contracts (as defined
below) of MX and TMX are legal, valid and binding obligations of MX or TMX, respectively, and are
in full force and effect, enforceable in accordance with their terms, except as enforceability may
be limited by bankruptcy, insolvency, reorganization and similar laws relating generally to the
enforceability of contracts and the availability of equitable remedies. As of the date of this
Agreement, neither GTMM, TFM, MX or TMX has received notice of cancellation of or default under any
Scheduled Contract, where such default would reasonably be expected to have a Material Adverse
Effect. Section 3.13 of the Disclosure Schedule lists the following contracts and other agreements
to which either MX or TMX is a party (the “Scheduled Contracts”):

          (a) any agreements to which either GTMM or TFM or any of their Affiliates (other than MX or
TMX) are a party;

          (b) any agreements which constitute nondisclosure agreements or confidentiality agreements
which could reasonably be expected to have a significant effect on the conduct of the business of
MX, TMX, or KCS;

          (c) any agreements pursuant to which MX or TMX is either obligated to pay or entitled to
receive in excess of $2 million during any twelve month period;

          (d) any agreements that are employment, management, consulting or severance agreements with
any officer or director of MX or TMX;

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          (e) any agreements that include any noncompetition or nonsolicitation covenant or any
exclusive dealing or similar arrangement that limits the ability of MX or TMX to compete
(geographically or otherwise) in any line of business or which would so limit KCS following the
Closing; or

          (f) any trackage rights agreements, interline or interchange agreements with other railroads.

     3.14 Employee Benefit Plans.

          (a) Section 3.14 of the Disclosure Schedule identifies each Employee Plan. TFM has made
available to KCS copies of each such Employee Plan (and, if applicable, related trust agreements)
and all amendments thereto and written interpretations thereof together with the most recent annual
report (Form 5500 including, if applicable, Schedule B thereto) and the most recent actuarial
valuation report prepared in connection with any Employee Plan and, if applicable, the Internal
Revenue Service determination letters. No Employee Plan is a Title IV Plan.

          (b) As of the Most Recent Fiscal Month End, MX and TMX did not have an aggregate unfunded
liability of MX and TMX in respect of all Employee Plans or Benefit Arrangements described under
Sections 4(b)(5) or 401(a)(1) of ERISA, computed using reasonable actuarial assumptions that would
reasonably be expected to have a Material Adverse Effect.

          (c) No transaction prohibited by §406 of ERISA or §4975 of the Code has occurred with respect
to any Employee Plan or arrangement which is covered by Part 4, Title I of ERISA, which transaction
has or will cause MX and TMX to incur any liability under ERISA, the Code or otherwise which would
reasonably be expected to result in a Material Adverse Effect, excluding transactions effected
pursuant to and in compliance with a statutory or administrative exemption. Neither MX, TMX nor any
ERISA Affiliate of them has (i) except where the failure thereof would not reasonably be expected
to result in a Material Adverse Effect, engaged in, or is a successor or parent corporation to an
entity that has engaged in, a transaction described in Sections 4069 or 4212(c) of ERISA or (ii)
incurred, or reasonably expects to incur prior to the Initial Closing Date, (A) any liability under
Title IV of ERISA arising in connection with the termination of, or a complete or partial
withdrawal from, any plan covered or previously covered by Title IV of ERISA or (B) any liability
under §4971 of the Code that in either case could become a liability of MX and TMX or KCS or any of
its ERISA Affiliates after the Initial Closing Date which would reasonably be expected to have a
Material Adverse Effect.

          (d) Each Employee Plan that is intended to be qualified under §401(a) of the Code has received
a favorable determination, and, to the Knowledge of any of GTMM, TFM and the directors (appointed
by TFM) and officers of MX and TMX, nothing has occurred since that determination that would
adversely affect such determination in a manner which would reasonably be expected to have a
Material Adverse Effect. Each Employee Benefit Plan has been maintained in compliance with its
terms and with the requirements prescribed by any and all applicable statutes, orders, rules and
regulations, including but not limited to ERISA and the

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Code, except to the extent that failure to so comply would not reasonably be expected to have
a Material Adverse Effect.

          (e) Section 3.14 of the Disclosure Schedule identifies each material Benefit Arrangement. TFM
has made available to KCS copies or descriptions of each material Benefit Arrangement (and, if
applicable, related trust agreements) and all amendments thereto and written interpretations
thereof. Each Benefit Arrangement has been maintained in compliance with its terms and with the
requirements prescribed by any and all applicable statutes, orders, rules and regulations and has
been maintained in good standing with applicable regulatory authorities, except to the extent that
failure to so comply would not reasonably be expected to have a Material Adverse Effect.

          (f) Except as set forth on Section 3.14 of the Disclosure Schedule and except as provided in
this Agreement, there is no contract, plan or arrangement (written or otherwise) to which MX or TMX
are parties covering any employee or former employee of MX or TMX that, individually or
collectively, could give rise to the payment of any amount that would not be deductible pursuant to
the terms of §280G of the Code, to the extent that such payments would reasonably be expected to
have a Material Adverse Effect.

          (g) Except as set forth on Section 3.14 of the Disclosure Schedule and except as provided in
this Agreement, no employee or former employee of MX or TMX will become entitled to any bonus,
retirement, severance, job security or similar benefit (including acceleration of vesting or
exercise of an incentive award) as a result of the transaction contemplated hereby, to the extent
that such benefits would reasonably be expected to have a Material Adverse Effect.

     3.15 Labor Matters. MX and TMX are in compliance with all currently applicable legislation
in the various jurisdictions where they operate, with respect to terms and conditions of employment
of their workforce, including legislation governing unionized labor, and are not engaged in any
unfair labor practice, failure to comply with which or engagement in which, as the case may be,
would reasonably be expected to have a Material Adverse Effect. Except as disclosed in Section 3.15
of the Disclosure Schedule, (i) neither MX nor any of its Subsidiaries is a party, or is otherwise
subject, to any collective bargaining agreement or other labor union contract applicable to its
employees, (ii) there are no material activities or proceedings by a labor union or representative
thereof to organize any employees of MX or TMX outside of the Ordinary Course of Business, (iii)
there are no pending negotiations between MX or TMX and any labor union or representative thereof
regarding any proposed material changes to any existing collective bargaining agreement, (iv) there
are no pending, and MX and TMX have not experienced since January 1, 2001, any labor disputes,
lockouts, strikes, slowdowns, work stoppages, or threats thereof which would reasonably be expected
to have a Material Adverse Effect, (v) MX and TMX are not in default and have not breached in any
material respect the terms of any applicable collective bargaining or other labor union contract,
and there are no material grievances outstanding against MX, TMX or any of its Subsidiaries or
their employees under any such agreement or contract which would reasonably be expected to have a
Material Adverse Effect, (vi) there is no unfair labor practice complaint pending, or to the
Knowledge of any of GTMM, TFM and the directors (appointed by TFM) and officers of MX and TMX
threatened, against MX or TMX before the National Labor Relations Board or any other

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investigation, charge, prosecution, suit or other proceeding before any court or arbitrator or any
governmental body, agency or official relating to the employees of MX or TMX or the representation
thereof which would reasonably be expected to have a Material Adverse Effect, (vii) there are no
claims or actions pending, or to the Knowledge of any of GTMM, TFM and the directors (appointed by
TFM) and officers of MX and TMX threatened, between MX or TMX and any of their employees or labor
organizations representing or seeking to represent such employees which would reasonably be
expected to have a Material Adverse Effect and (viii) to the Knowledge of any of GTMM, TFM and the
directors (appointed by TFM) and officers of MX and TMX, there are no facts or circumstances
involving any employee that would form the basis of, or give rise to, any cause of action,
including, without limitation, unlawful termination based on discrimination of any kind that would
reasonably be expected to result in a Material Adverse Effect. Section 3.15 of the Disclosure
Schedule identifies all employees of MX and of TMX who provide services on a full-time basis to TFM
or any affiliates of TFM.

     3.16 Powers of Attorney. Other than those powers of attorney approved by the Boards of
Directors of either MX or TMX, to the Knowledge of any of GTMM, TFM and the directors (appointed by
TFM) and officers of MX and TMX, there are no material outstanding powers of attorney executed on
behalf of MX or TMX.

     3.17 Insurance. Section 3.17 of the Disclosure Schedule includes a list of all policies of
fire, liability, product liability, workers’ compensation, health and other forms of insurance
presently in effect with respect to MX’s and TMX’s business (the “Insurance Policies”), including
the named insured(s) and all beneficiaries thereunder, and true and complete copies of the
Insurance Policies have been made available to KCS. Neither MX nor TMX has been refused any
insurance with respect to any aspect of the operations of its business, nor has its coverage been
rescinded by any insurance carrier to which it has applied for insurance or with which it has
carried insurance. No notice of cancellation or termination has, as of the date of this Agreement,
been received with respect to any such policy. The activities, business, and operations of MX and
TMX have been conducted in such a manner so as to conform in all material respects to all material
provisions of the Insurance Policies.

     3.18 Litigation. Except as set forth in Section 3.18 of the Disclosure Schedule, there are
no legal, administrative, arbitral or other proceedings (including disciplinary proceedings),
claims, suits, actions or governmental or regulatory investigations of any nature that are pending
or, to the knowledge of GTMM, TFM, MX or TMX threatened against MX or TMX or any of their officers,
directors or properties which would reasonably be expected to have a Material Adverse Effect or
that challenge the validity or propriety of the transactions contemplated by this Agreement. There
is no injunction, order, judgment or decree imposed upon MX or TMX, or any material portion of the
assets or business of MX or TMX.

     3.19 Environmental Matters. Except as set forth in Section 3.19 of the Disclosure
Schedule, MX and TMX (i) are in compliance with, and are not subject to any liability under
applicable Environmental Laws; (ii) hold all Environmental Permits necessary to conduct their
current operations and (iii) are in compliance with their respective Environmental Permits, except
where the failure to hold or be in compliance with such Environmental Permits would not be expected
to have a Material Adverse Effect. Except as set forth in Section 3.19 of the Disclosure Schedule
or as would not reasonably be expected to have a Material Adverse Effect

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on MX or TMX, neither GTMM, TFM, MX nor TMX has received any written notice, demand, letter, claim
or request for information alleging that MX or TMX may be in violation of, or have liability under,
any Environmental Law. Except as set forth in Section 3.19 of the Disclosure Schedule, neither MX
nor TMX (x) has entered into or agreed to any consent decree or order or is subject to any
judgment, decree or judicial order relating to compliance with Environmental Laws, Environmental
Permits or the investigation, sampling, monitoring, treatment, remediation, removal or cleanup of
Hazardous Materials and no investigation, litigation or other proceeding is pending or, to the
Knowledge of GTMM and TFM, threatened, with respect thereto or (y) is an indemnitor or has assumed
liability in connection with any pending demand, notice, claim, or other allegation, or to the
Knowledge of GTMM and TFM, any claim threatened, by or against any third-party relating to any
liability under any Environmental Law or relating to any Hazardous Materials. None of the real
property owned or leased from/to or operated by MX or TFM is listed or, to the Knowledge of GTMM
and TFM, proposed for listing, on any list of sites maintained by any competent governmental
authority requiring investigation or cleanup.

     3.20 Exception for Operation by KCS. Notwithstanding any provision of this Article III to
the contrary, the representations and warranties of GTMM and TFM in this Article III are qualified
to the extent of any effect on such representations and warranties of the operations and
dispatching activities of TMX undertaken by KCS pursuant to Section 6.3.4 of the Stock Purchase
Agreement dated as of February 27, 2002 to which KCS, TMM and TFM are parties, along with TMM
Multimodal, S.A. de C.V. and The Kansas City Southern Railway Company.

ARTICLE IV.

COVENANTS OF GTMM AND TFM

     4.1 Conduct of MX and TMX Through Initial Closing Date. Except as otherwise expressly set
forth in this Agreement, during the period from the date of this Agreement through the Initial
Closing Date, TFM and, to the extent that GTMM controls MX or TMX, GTMM, will not cause or permit
MX or TMX to engage in any practice, take any action, or enter into any transaction outside the
Ordinary Course of Business. Without limiting the generality of the foregoing, neither MX nor TMX
will declare, set aside, or pay any dividend or make any distribution with respect to its capital
stock or redeem, purchase, or otherwise acquire any of its capital stock. TFM and, to the extent
that GTMM controls MX or TMX, GTMM, will use their commercially reasonable efforts to cause each of
MX and TMX to keep its business and properties substantially intact, including its present
operations, physical facilities, working conditions, and relationships with lessors, licensors,
suppliers, customers, and employees, including, without limitation, not selling or leasing any real
estate, or agreeing to make any such sale or lease, without the written consent of KCS.

     4.2 Access to Information. From the date of this Agreement through the Initial Closing
Date, TFM and, to the extent that GTMM controls MX or TMX, GTMM, will give (and will cause each of
MX and TMX to give) KCS, its counsel, financial advisors, auditors and other authorized
representatives full access to the offices, properties, books and records of MX and TMX, will
furnish to KCS, its counsel, financial advisors, auditors and other authorized representatives such
financial and operating data and other information as such Persons may reasonably request, and GTMM
and TFM will cooperate (and will instruct the employees,

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counsel and financial advisors of MX and TMX to cooperate) with KCS in its investigation of the
business of MX and TMX, as the case may be. KCS will treat and hold as such any Confidential
Information it receives from any of GTMM, TFM, MX and TMX in the course of the reviews contemplated
by this §4.2, and will not use any of the Confidential Information except in connection with this
Agreement.

     4.3 Affiliate Agreements Terminated. Except as set forth in Section 4.3 of the Disclosure
Schedule and except for agreements between MX or TMX and GTFM and GTFM’s Subsidiaries, all
agreements between MX or TMX and any other affiliate of TMM shall be terminated, with no further
obligation on the part of the parties thereto, from and after the Initial Closing Date, except for
any payment obligations incurred and due prior to the Initial Closing Date pursuant to the terms of
such agreements.

     4.4 Credit Agreements. TMM and TFM shall take all action required by the Indentures
and Credit Agreements identified in Schedule 2.1 (including, without limitation, the application
required thereunder of the proceeds to be received hereunder from the purchase and sale
contemplated in this Agreement).to prevent any breach or violation of any provision of such
documents or any default thereunder from occurring as a result of such purchase and sale
transaction.

ARTICLE V.

COVENANTS OF KCS

     5.1 Compliance with Bridge Rules. KCS shall comply with all existing rulings of the
Surface Transportation Board, and its predecessor, the Interstate Commerce Commission, applicable
to the use and operation of the International Bridge at Laredo as well as the existing written
contracts and protocols known to KCS which govern such use and operation, in each case in
accordance with their present terms, or such modifications as shall be acceptable to KCS, and for
so long as they remain effective and applicable.

     5.2 Right of First Refusal. For the 5 year period immediately following the Initial
Closing Date, none of KCS, MX or TMX shall transfer, sell, assign, lease or in any manner whatever
dispose of any interest in or portion of the northern half of the railroad bridge between Laredo
and Nuevo Laredo (the “Laredo Bridge”) to any third party without first offering to transfer, sell,
assign, lease or otherwise dispose of such interest in the Laredo Bridge to TFM on the same terms
and with the same conditions as were offered to any such third party (the “Bridge Purchase
Option”). Notwithstanding the foregoing sentence, the Bridge Purchase Option shall not arise upon
or in connection with any merger, consolidation or sale of assets or stock of KCS in which control
of KCS or KCSR is transferred. In the event that TFM fails to exercise the Bridge Purchase Option
within thirty (30) days of the date on which TFM is provided notice of a proposed transaction
giving rise to the Bridge Purchase Option, then KCS shall have the right for a period of 180 days
following such thirty (30) day period to enter into an agreement to transfer, sell, assign, lease
or otherwise dispose of such interest in the Laredo Bridge to a third party on, but only on, the
same terms and with the same conditions as were offered to TFM pursuant to the Bridge Purchase
Option. In the event such agreement is not entered into within such 180 day period, or, if entered
into, is subsequently terminated or abandoned, then any subsequent transfer, sale, assignment,
lease or other disposition shall be subject to the Bridge Purchase Option.

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     5.3 Repair Debt. KCS shall pay or cause to be paid to TFM the Repair Debt on or before
January 1, 2005.

ARTICLE VI.

COVENANTS OF ALL PARTIES

     6.1 General. Subject to the terms and conditions of this Agreement, each of the Parties
will use its commercially reasonable efforts to take all action and to do all things necessary,
proper, or advisable under applicable laws and regulations in order to consummate and make
effective the transaction contemplated by this Agreement (including satisfaction, but not waiver,
of the closing conditions set forth in Article VII below).

     6.2 Cooperation to Obtain STB Approval. From the date of this Agreement until such time as
the Surface Transportation Board (“STB”) either approves or denies KCS’s request to acquire control
of TMX and such an order becomes final after judicial review or failure to appeal, GTMM and TFM
will cooperate with KCS, and KCS will cooperate with GTMM and TFM, to obtain approval from the STB
for KCS to acquire control of TMX.

     6.3 Notice of Developments. From the date of this Agreement through the Subsequent Closing
Date, each Party will give prompt written notice to all other Parties of any material adverse
development causing a breach by the notifying Party of any of the representations and warranties in
Article II above. No disclosure by any Party pursuant to this §056.3, however, shall be
deemed to amend or supplement Annex I or Annex II, or to prevent or cure any misrepresentation,
breach of warranty, or breach of covenant.

     6.4 MX and TMX Employees Assigned to TFM. Those employees identified in Section 3.15 of
the Disclosure Schedule shall continue to provide services to TFM and its affiliates following the
Initial Closing Date provided (i) TFM shall reimburse MX or TMX, as the case may be, for all
compensation of such employees and all other costs associated with their employment on a monthly
basis and remain current at all times in such reimbursement obligations, (ii) TFM shall be
responsible for all employment severance or termination benefits and all other employment benefits
due or which may become due to such employees, and (iii) if TFM shall fail to comply with
subparagraphs (i) or (ii) of this Section 6.4, MX or TMX may terminate the employment of any or all
such employees without incurring any cost or obligation.

ARTICLE VII.

CONDITIONS TO OBLIGATION TO CLOSE

     7.1 Mutual Conditions to Obligations to Close. The obligations of both KCS and TFM to
consummate the transaction contemplated by this Agreement are subject to satisfaction of the
following conditions:

          (a) No Governmental Action. As of each Closing, no action shall have been taken, and
no statute, rule, regulation or order shall have been enacted, adopted or issued by any

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state or federal government or governmental agency in the United States or Mexico that would
prevent the consummation of the transaction contemplated by this Agreement.

          (b) No Injunction or Order. As of each Closing, there shall be no injunction,
restraining order or order of any nature by any court of competent jurisdiction that prevents the
consummation of the transaction contemplated by this Agreement.

          (c) Governmental Approvals. As of each Closing, all governmental approvals (if any)
required to consummate the transaction contemplated by this Agreement shall have been obtained.

     7.2 Conditions to Obligations of KCS to Close. The obligations of KCS to consummate the
transaction contemplated by this Agreement are subject to satisfaction, at or before the Initial
Closing or each Closing, as set forth below, of all of the following conditions. KCS may waive in
writing any or all of these conditions, in whole or in part, at or at any time prior to the
applicable Closing, with or without prior notice, but no such waiver by KCS shall constitute a
waiver by KCS of any condition not so waived or of any other right or remedy of KCS, at law or in
equity.

          (a) Performance. Each of GTMM and TFM shall have performed and complied in all
material respects, through each Closing (it being understood that in the event of a Closing that
occurs at any time when KCS controls, directly or indirectly, TFM this representation shall be
instead only through the date such control was acquired), with each of its respective agreements,
obligations and covenants under this Agreement.

          (b) Representations and Warranties. The representations and warranties made by each
of GTMM and TFM in Article II of this Agreement shall be true and correct in all material respects
(i) at the date when made and (ii) at the Initial Closing Date. The representations and warranties
made by each of GTMM and TFM concerning MX and TMX in Article III of this Agreement shall be true
and correct in all material respects (i) at the date when made and (ii) at the Initial Closing
Date.

          (c) Certificates. KCS shall have received certificates at each Closing, reasonably
satisfactory in form and substance to KCS, of officers of GTMM and TFM certifying that, to the best
of each such officer’s Knowledge, the conditions set forth in Sections 67.2(a) and
7.2(b) have been satisfied in all respects and that the Board of Directors of each of GTMM and TFM
has approved the execution of this Agreement and has authorized the consummation of the
transactions contemplated by this Agreement (it being understood that in the event of a Closing
that occurs at any time when KCS controls, directly or indirectly, TFM such certificates shall be
effective only through the date such control was acquired).

          (d) Resignations. KCS shall have received the resignations, in all capacities with MX
and TX, effective as of or prior to the Initial Closing, and reasonably satisfactory in form and
substance to KCS, of each director and the president of each of MX and TMX. Following the Initial
Closing, the Trustee shall vote the Trust Stock in the Trustee’s sole discretion, having due regard
for the interests of the holders of the Trust Certificates and the minority shareholders in MX and
TMX, to nominate and elect directors to fill those vacant

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director positions. The Trustee shall not, without the prior approval of the STB, vote the
Trust Stock to elect any current officer or director of GTMM, GTFM, TFM, KCS, or any of their
majority owned affiliates.

     7.3 Conditions to Obligations of TFM to Close. The obligations of TFM to consummate the
transactions contemplated by this Agreement are subject to satisfaction, at or before each Closing,
of all of the following conditions. TFM may waive in writing any or all of these conditions, in
whole or in part, at or at any time prior to each Closing, with or without prior notice, but no
such waiver by TFM shall constitute a waiver by TFM of any condition not so waived or of any other
right or remedy of TFM, at law or in equity.

          (a) Performance. KCS shall have performed and complied in all material respects,
through each Closing, with each of its respective agreements, obligations and covenants under this
Agreement.

          (b) Representations and Warranties. The representations and warranties made by KCS in
this Agreement shall be true and correct in all material respects (i) at the date when made and
(ii) at each Closing.

          (c) Certificate. TFM shall have received a certificate, reasonably satisfactory in
form and substance to TFM, of an officer of KCS certifying that, to the best of such officer’s
Knowledge, the conditions set forth in Sections 7.3(a) and 7.3(b) have been satisfied in all
respects and that the Board of Directors of KCS has approved the execution of this Agreement and
has authorized the consummation of the transactions contemplated by this Agreement.

          (d) Fairness Opinion. TFM shall have received a fairness opinion complying with the
requirements of the agreements listed in Section 7.3 of the Disclosure Schedule.

ARTICLE VIII.

REMEDIES FOR BREACHES OF THIS AGREEMENT

     8.1 Survival of Representations and Warranties. All of the representations and warranties
of GTMM and TFM contained in Article III above (other than §3.19 above) shall survive the Initial
Closing hereunder and continue in full force and effect for a period of two years thereafter;
provided, however, that the representations and warranties contained in §3.19 above shall
survive the Initial Closing hereunder and continue in full force and effect for a period of five
years thereafter. All of the other representations and warranties of the Parties contained in this
Agreement (including the representations and warranties of the Parties contained in Article II
above and the representations and warranties of GTMM and TFM contained in §3.9 above) shall survive
for the applicable statutes of limitations.

     8.2 Indemnification Provisions for Benefit of KCS.

          (a) In the event either GTMM or TFM breaches any of its representations, warranties, and
covenants contained herein, and, if there is an applicable survival period pursuant to §8.1 above,
provided that KCS makes a written claim for indemnification within such survival period, then GTMM
agrees to indemnify KCS from and against any Adverse Consequences KCS

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may suffer through and after the date of the claim for indemnification (including any Adverse
Consequences KCS may suffer after the end of any applicable survival period) resulting from,
arising out of, or caused by the breach of any such representation or warranty or covenant.

          (b) GTMM (i) acknowledges and agrees that the releases of the Released Persons pursuant to
Section 10.14(a) shall not affect in any way GTMM’s obligation to indemnify KCS pursuant to Section
8.2(a) from and against Adverse Consequences as a result of the breach of any representation,
warranty or covenant in this Agreement and (ii) agrees to indemnify KCS from and against any
Adverse Consequences arising out of or resulting from any intentional actions taken by the Released
Persons in their capacity as an officer or director of MX or TMX (other than any actions that (i)
constituted negligence or gross negligence on the part of any of the Released Persons or (ii) were
approved by KCS or its affiliates or representatives, or (iii) resulted in a benefit to GTFM and/or
its subsidiaries) that resulted in (a) a Material Adverse Effect on MX or TMX or (b) the receipt by
the Released Person or its affiliates or associates of any improper personal benefit.

          (c) The obligation of GTMM to indemnify KCS pursuant to §8.2(a) and (b) above for any breach
of representation or warranty shall be limited to 51% of the Adverse Consequences and then only to
the extent that such 51% of the Adverse Consequences amount to, in the aggregate, $5 million or
more; provided, that for purposes of calculating this limitation on indemnification, (i) Adverse
Consequences shall be calculated without regard to any Material Adverse Effect and (ii) shall not
apply to any Adverse Consequences arising out of or resulting from any action or omission on the
part of GTMM or TFM or any of their respective affiliates that involve a felony under United States
law, actual fraud, willful misconduct or gross negligence.

     8.3 Indemnification Provisions for Benefit of GTMM and TFM.

          (a) In the event KCS breaches any of its representations, warranties, and covenants contained
herein, and, if there is an applicable survival period pursuant to §8.1 above, provided that GTMM
or TFM makes a written claim for indemnification against KCS within such survival period, then KCS
agrees to indemnify the claiming Party from and against the entirety of any Adverse Consequences
such Party may suffer through and after the date of the claim for indemnification (including any
Adverse Consequences GTMM or TFM may suffer after the end of any applicable survival period)
resulting from, arising out of, relating to, in the nature of, or caused by the breach.

          (b) KCS agrees to also indemnify GTMM from and against any matter released pursuant to Section
10.14(b) to the extent that the acts, omissions or conduct of the released party (i) resulted in a
breach of a representation, warranty or covenant made in this Agreement by KCS, (ii) otherwise
resulted in a material adverse effect upon the assets or business of MX or TMX, or (iii) involved
the receipt of an improper benefit by any Person.

          (c) The obligation of KCS to indemnify GTMM pursuant to §8.3(a) and (b) above for any breach
of representation or warranty shall be limited to 49% of the Adverse Consequences and then only to
the extent that such 49% of the Adverse Consequences amount to, in the aggregate, $5 million or
more; provided, that for purposes of calculating this limitation

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on indemnification, (i) Adverse Consequences shall be calculated without regard to any
Material Adverse Effect and (ii) shall not apply to any Adverse Consequences arising out of or
resulting from any action or omission on the part of KCS or any of their respective affiliates that
involve a felony under United States law, actual fraud, willful misconduct or gross negligence.

     8.4 Determination of Adverse Consequences. The Parties shall make appropriate adjustments
for Tax consequences and insurance coverage and take into account the time cost of money in
determining Adverse Consequences for purposes of this Article VIII. All indemnification payments
under this Article VIII shall be deemed adjustments to the Purchase Price.

     8.5 Specific Performance. Notwithstanding the indemnification provisions of this Article
VIII, the Parties acknowledge that monetary damages would not provide an adequate remedy in the
event that one or more Parties were to fail to comply with the terms and conditions of the
Agreement. Accordingly, the Parties agree that, in addition to any right to monetary damages that
any Party may have at law and under the terms of this Agreement, each Party shall be entitled to
the equitable remedy of specific performance in order to force any other Party to strictly comply
with the terms and conditions of this Agreement.

ARTICLE IX.

TERMINATION

     9.1 Termination of Agreement. Certain of the Parties may terminate this Agreement as
provided below:

          (a) this Agreement may be terminated by mutual written consent of all of the Parties at any
time prior to the Initial Closing;

          (b) KCS may terminate this Agreement by giving written notice to GTMM and TFM at any time
prior to the Initial Closing in the event GTMM or TFM has breached any material representation,
warranty, or covenant contained in this Agreement in any material respect, KCS has notified GTMM
and TFM of the breach, and the breach has continued without cure for a period of 30 days after the
notice of breach; and

          (c) GTMM and TFM may terminate this Agreement by giving written notice to KCS at any time
prior to the Initial Closing in the event KCS has breached any material representation, warranty,
or covenant contained in this Agreement in any material respect, GTMM or TFM has notified KCS of
the breach, and the breach has continued without cure for a period of 30 days after the notice of
breach.

     9.2 Effect of Termination. If any Party terminates this Agreement pursuant to §9.1 above,
all rights and obligations of the Parties hereunder shall terminate without any liability of any
Party to any other Party (except for any liability of any Party then in breach).

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ARTICLE X.

MISCELLANEOUS

     10.1 Amendments and Waivers. No amendment or waiver of any provision of this Agreement, and no
consent to any departure from any of such terms by any of the Parties, shall be valid unless the
same shall be in writing and signed by all of the Parties (except that a permitted waiver of a
Closing condition under §7.2 or §7.3 hereof need not be signed by all Parties). No waiver by any
Party of any default, misrepresentation, or breach of warranty or covenant hereunder, whether
intentional or not, shall be deemed to extend to any prior or subsequent default,
misrepresentation, or breach of warranty or covenant hereunder or affect in any way any rights
arising by virtue of any prior or subsequent such occurrence.

     10.2 Entire Agreement. This Agreement (including the documents referred to herein)
constitutes the entire agreement among the Parties concerning the sale of the Transferred Shares by
TFM to KCS, and supersedes any prior understandings, agreements, or representations by or among the
Parties, written or oral, to the extent they related in any way to the subject matter hereof;
provided, that in the event of termination of this Agreement, then the parties intend for the terms
and conditions of the 2002 Stock Purchase Agreement, the GTFM bylaws, and the Shareholders
Agreement to become again valid and fully enforceable against the parties thereto.

     10.3 Counterparts. This Agreement may be executed in two or more counterparts, each of
which shall be deemed an original but all of which together will constitute one and the same
instrument.

     10.4 No Third-Party Beneficiaries. This Agreement shall not confer any rights or remedies
upon any Person other than the Parties and their respective successors and permitted assigns.

     10.5 Succession and Assignment. This Agreement shall be binding upon and inure to the
benefit of the Parties named herein and their respective successors and permitted assigns. No
Party may assign either this Agreement or any of its rights, interests, or obligations hereunder
without the prior written approval of all of the Parties; provided, however, that KCS may
(i) assign any or all of its rights and interests hereunder to one or more of its Affiliates and
(ii) designate one or more of its Affiliates to perform its obligations hereunder (in any or all of
which cases KCS nonetheless shall remain responsible for the performance of all of its obligations
hereunder).

     10.6 Headings. The section headings contained in this Agreement are inserted for
convenience only and shall not affect in any way the meaning or interpretation of this Agreement.

     10.7 Notices. All notices, requests, demands, claims, and other communications hereunder
shall be made in writing (including fax communications, with delivery confirmation as provided
hereunder) and delivered at the domicile or fax number of the addressee thereof, or at such other
domicile as any of the Parties shall notify the other Parties in writing as provided in this
Section. Any notice, request, demand, claim, or other communication hereunder shall be effective
when received by the Party to whom it is addressed. All communication by fax shall be

- 19 -

 

affirmatively confirmed by confirmation page from the sending fax machine and by telephonic
confirmation of receipt by an officer of the receiving Party. For purposes of this Section and
until changed by written notice to each of the other Parties, each of the Parties designates the
domicile for receipt of notices and communications as is written below such Party’s corporate name
in the signature pages hereof.

     10.8 Expenses. Whether of not the transaction contemplated by this Agreement is
consummated, all costs and expenses, including (without limitation) legal fees, consulting fees,
finder’s fees, investment banking fees and trustee’s fees, incurred in connection with this
Agreement and the transaction contemplated thereby shall be paid by the Party incurring such costs
or expenses except as otherwise provided in this Agreement.

     10.9 Announcements. The Parties shall consult with one another with regard to all media
releases and other announcements issued at or prior to a Closing concerning the transaction
contemplated by this Agreement; and, except as may be required by applicable laws or the applicable
rules and regulations of any governmental agency or stock exchange, no Party hereto shall issue any
such press release or other publicity concerning the transaction contemplated by this Agreement
without the prior written consent of the other Parties.

     10.10 Governing Law; Dispute Resolution.

          (a) Resolution of any and all disputes between KCS, on the one hand, and one or more of GTMM
or TFM, on the other hand (each of KCS, on the one hand, and one or more of GTMM or TFM, on the
other hand, a “Dispute Party” and together, the “Dispute Parties”) arising from or in connection
with this Agreement or any transactions contemplated by this Agreement, whether based on contract,
tort, common law, equity, statute, regulation, order or otherwise, (“Disputes”) including Disputes
arising in connection with claims by third persons, shall be exclusively governed by and settled in
accordance with the provisions of this §10.10; provided, that the foregoing shall not preclude
equitable or other judicial relief to enforce the provisions hereof or to preserve the status quo
pending resolution of Disputes hereunder.

          (b) THIS AGREEMENT, THE LEGAL RELATIONS BETWEEN THE PARTIES HERETO AND THE ADJUDICATION AND
ENFORCEMENT THEREOF, SHALL BE GOVERNED BY AND INTERPRETED AND CONSTRUED IN ACCORDANCE WITH THE
SUBSTANTIVE LAWS OF THE STATE OF DELAWARE AND THE FEDERAL LAWS OF THE UNITED STATES OF AMERICA,
WITHOUT REGARD TO APPLICABLE CHOICE OF LAW PROVISIONS THEREOF.

          (c) As to any Dispute which is not resolved in the ordinary course of business, the Dispute
Parties shall first attempt in good faith to promptly resolve any Dispute by negotiations between
executives. Either of the Dispute Parties may initiate this procedure by delivery of written
notice of the Dispute (the “Dispute Notice”) to the other. Not later than 20 days after delivery
of the Dispute Notice, one executive of one of the Dispute Parties with authority to settle the
Dispute shall meet with the one executive of the other Dispute Party with authority to settle the
Dispute at a reasonably acceptable time and place, and thereafter as such executives shall deem
reasonably necessary. The executives shall exchange relevant information and endeavor to resolve
the Dispute. Prior to any such meeting, each Dispute Party’s executive

- 20 -

 

shall advise the other as to any individuals who will attend such meeting with the executive.
All negotiations pursuant to this §10.10(c) shall be confidential and shall be treated as
compromise negotiations for purposes of Rule 408 of the Federal Rules of Evidence and similarly
under other local or foreign rules of evidence.

          (d) Each Dispute Party hereby agrees to submit all Disputes not resolved pursuant to §10.10(c)
hereof to final and binding arbitration in New York, New York. Either Dispute Party may initiate
such arbitration by delivery of a request therefor (the “Arbitration Request”) to the other Dispute
Party not sooner than 60 days after the date of delivery of the Dispute Notice but promptly
thereafter; provided, that if a Dispute Party rejects participation in the procedures provided
under §10.10(c), the other Dispute Party may initiate arbitration at such earlier time as such
rejection shall become reasonably apparent, and, whenever arbitration is initiated, may seek
recovery of any damages or expenses arising from such rejection, including attorney’s fees and
expenses, Arbitration Costs (as defined below) in connection with arbitration hereunder. An Answer
shall be filed within 30 days of the receipt of the Arbitration Request.

               (i) Three Arbitrators shall be appointed (the “Arbitrators”), one of whom shall
be nominated by KCS, one by GTMM, and the third of whom, who shall act as the
chairman of the arbitral tribunal, shall be appointed by the first two Arbitrators
within 30 days of the first two Arbitrators confirmation by the International
Chamber of Commerce. If either Dispute Party fails to appoint an Arbitrator within
15 days of a request in writing by the other Dispute Party to do so or if the first
two Arbitrators cannot agree on the appointment of the third Arbitrator within 30
days of their confirmation by the International Chamber of Commerce, then such
Arbitrator shall be appointed by the International Chamber of Commerce in accordance
with its Rules of Arbitration.

               (ii) The arbitration shall be conducted in the English language pursuant to the
Arbitration Rules of the International Chamber of Commerce. Notwithstanding the
foregoing, (A) each Dispute Party shall have the right to audit the books and
records of the other Dispute Party that are reasonably related to the Dispute; (B)
each Dispute Party shall provide to the other, reasonably in advance of any hearing,
copies of all documents which a Dispute Party intends to present in such hearing;
(C) all hearings shall be conducted on an expedited schedule; and (D) all
proceedings shall be confidential, except that either Dispute Party may at its
expense make a stenographic record thereof.

               (iii) The Arbitrators shall endeavor to complete all hearings not later than
180 days after their tribunal has been convened, and shall make a final award as
promptly as practicable thereafter. Such award shall be communicated, in writing,
by the Arbitrators to the Dispute Parties, and shall contain specific findings of
fact and conclusions of law in accordance with the governing law set forth in
§10.10(b) of this Agreement. Any award of such Arbitrators shall be final and
binding upon the Parties to this Agreement and shall not be attacked by any of the
Parties to this Agreement in any court of law and may be enforced in any court
having jurisdiction, including expressly the courts of the State of Delaware, United
States of America, and the courts of the Federal District of Mexico. The

- 21 -

 

Arbitrators shall apportion all costs and expenses of the arbitration,
including the Arbitrators’ fees and expenses, fees and expenses of experts and fees
and expenses of translators (“Arbitration Costs”) between the prevailing and
non-prevailing Dispute Party as the Arbitrators shall deem fair and reasonable. In
circumstances where (A) a Dispute has been asserted or defended against on grounds
that the Arbitrators deem manifestly unreasonable, or (B) the non-prevailing Dispute
Party has rejected participation in procedures under §10.10(c), the Arbitrators may
assess all Arbitration Costs against the non-prevailing Dispute Party and may
include in the award the prevailing Dispute Party’s attorney’s fees and expenses in
connection with any and all proceedings under this §10.10. Notwithstanding the
foregoing, in no event may the arbitrator award multiple or punitive damages.

               (iv) The parties agree to produce documents, which may include contracts,
books, records, internal documents, notes, and memoranda of any and all kinds or
types. It shall not be objectionable that documents are requested by general
category. The parties also agree to provide oral depositions of their employees and
representatives, and to fully, accurately and timely answer written interrogatories
submitted to them. The arbitral tribunal shall have the power, upon application of
any party, to make all appropriate orders for the discovery described above, to
which power the parties specifically consent. If a party fails to provide discovery
pursuant to an order of the tribunal, the arbitrators may take that failure into
account in deciding the issues. Applicable legal privileges against the disclosure
of information shall be recognized.

          (e) Pursuant to an agreement of the Parties or a judicial determination that a Dispute is not
subject to final and binding arbitration as set forth in §10.10, KCS and each of GTMM and TFM
irrevocably agrees that any legal action or proceeding against it with respect to this Agreement
and any transaction contemplated by this Agreement shall be brought only in the courts of the State
of Delaware, or of Federal courts of the United States of America sitting in Delaware, and by
execution and delivery of this Agreement, KCS and each of GTMM and TFM irrevocably submits to the
venue and jurisdiction of each such court and irrevocably waives any objection or defense such
party may have to venue or personal jurisdiction in any such court for the purpose of resolving any
claim, dispute, cause of action arising out of or related to this Agreement (including any claim
that the suit or action has been brought in an inconvenient forum and any right to which it may
become entitled on account of place of residence or domicile), the alleged breach of this
Agreement, the enforcement of the terms of this Agreement and the other terms contemplated hereby.
A final judgment in any suit, action or proceeding shall be conclusive and may be enforced in any
court where jurisdiction over the Parties may be had or in which the Parties are subject to service
of process.

          (f) Each of the Parties irrevocably appoints CT Corporation (the “Process Agent”), at 1209
Orange Street, Wilmington, County of New Castle, Delaware 19801 (302) 658-7581, as its agent and
true and lawful attorney-in-fact in its name, place and stead to accept on behalf of each of the
Parties and their respective properties and revenues, service of copies of the summons and
complaint and any other process which may be served in any such suit, action or

- 22 -

 

proceeding brought in the State of Delaware, and each of the Parties agrees that failure of
the Process Agent to give any notice of any such service of process to any of the Parties shall not
impair or affect the validity of such service or the enforcement of any judgment based thereon.

          (g) These dispute resolution provisions, including the agreement to arbitrate, are independent
of the remaining provisions of this Agreement and the Parties intend that they shall continue in
effect even though one or more provisions of this Agreement shall be determined to be null or void.
The dispute resolution provisions and agreement to arbitrate shall also survive the termination or
expiration of this Agreement.

     10.11 Severability. If any one or more of the provisions contained in this Agreement or in
any document executed in connection herewith shall be held invalid, illegal or unenforceable under
applicable law, the validity, legality and enforceability of the remaining provisions contained
herein or therein shall not be affected or impaired and shall remain in full force and effect.

     10.12 Construction. The Parties have participated jointly in the negotiation and drafting
of this Agreement. In the event an ambiguity or question of intent or interpretation arises, this
Agreement shall be construed as if drafted jointly by the Parties and no presumption or burden of
proof shall arise favoring or disfavoring any Party by virtue of the authorship of any of the
provisions of this Agreement. Any reference to any federal, state, local, or foreign statute or
law shall be deemed also to refer to all rules and regulations promulgated thereunder, unless the
context requires otherwise. The word “including” shall mean including without limitation.

     10.13 Incorporation of Exhibits, Annexes, and Schedules. The Exhibits, Annexes, and
Schedules identified in this Agreement are incorporated herein by reference and made a part hereof.

     10.14 Releases. To the extent permitted by law:

          (a) KCS, on behalf of itself and its controlled affiliates, hereby releases, acquits and
discharges, effective at the Initial Closing, each officer and director of MX and TMX and each
person identified in Section 10.14 of the Disclosure Schedule from and against any and all claims,
liabilities, demands and causes of action, whether known or unknown, arising out of the
transactions contemplated by this Agreement occurring at any time prior to and including the
Initial Closing Date or any such person’s acts, omissions or conduct in his or her capacity as an
officer or director of MX or TMX occurring at any time prior to and including the Initial Closing
Date.

          (b) TMM, on behalf of itself and its controlled affiliates, hereby releases, acquits and
discharges, effective at the Initial Closing, each officer and director of KCS and of each
Subsidiary of KCS from and against any and all claims, liabilities, demands and causes of action,
whether known or unknown, arising out of the transactions contemplated by this Agreement or any
such person’s acts, omissions or conduct in his or her capacity as an officer or director of MX or
TMX occurring at any time prior to and including the Initial Closing Date.

- 23 -

 

ARTICLE XI.

DEFINITIONS

     “Adverse Consequences” means all actions, suits, proceedings, hearings,
investigations, charges, complaints, claims, demands, injunctions, judgments, orders, decrees,
rulings, damages, dues, penalties, fines, costs, reasonable amounts paid in settlement,
liabilities, obligations, Taxes, Liens, losses, expenses, and fees, including court costs and
reasonable attorneys’ fees and expenses.

     “Affiliate” has the meaning set forth in Rule 12b-2 of the regulations promulgated
under the Securities Exchange Act of 1934, as amended.

     “Arbitration Costs” has the meaning set forth in §10.10(d) above.

     “Arbitration Request” has the meaning set forth in §10.10(d) above.

     “Arbitrators” has the meaning set forth in §10.10(d) above.

     “Benefit Arrangement” means any employment, severance or similar contract or
arrangement (whether or not written) or any plan, policy, fund, program or contract or arrangement
(whether or not written) providing for compensation, bonus, profit-sharing, stock option, or other
stock related rights or other forms of incentive or deferred compensation, vacation benefits,
insurance coverage (including any self-assured arrangements), health or medical benefits,
disability benefits, workers’ compensation, supplemental unemployment benefits, severance benefits
and post-employment or retirement benefits (including compensation, pension, health, medical or
life insurance or other benefits) that (i) is not an Employee Plan, (ii) is entered into,
maintained, administered or contributed to, by MX or TMX or any of their ERISA Affiliates, and
(iii) covers any employee or former employee of MX or TMX.

     “Closing” has the meaning set forth in §1.2 above.

     “Closing Date” has the meaning set forth in §1.2 above.

     “Code” means the Internal Revenue Code of 1986, as amended.

     “Confidential Information” means, with respect to MX or TMX, all proprietary and
confidential business information and data of MX or TMX that is not generally known by or readily
ascertainable by or available to, on a legal or authorized basis, the general public; provided,
however, that “Confidential Information” shall not include any information: (a) which is already
known by the receiving Party; or (b) which before being divulged by the disclosing Party (i) has
become generally known to the public through no wrongful act of the receiving Party or its
representatives or agents, (ii) has been received by the receiving Party from a third party without
(to the receiving Party’s knowledge) restriction on disclosure and without (to the receiving
Party’s knowledge) a breach by the third party of an obligation of confidentiality, or

- 24 -

 

(iii) is independently developed by the receiving Party without use of the Confidential
Information received from a disclosing Party.

     “Disclosure Schedule” has the meaning set forth in Article II above.

     “Dispute Notice” has the meaning set forth in §10.10(c) above.

     “Dispute Parties” has the meaning set forth in §10.10(a) above.

     “Dispute Party” has the meaning set forth in §10.10(a) above.

     “Disputes” has the meaning set forth in §10.10(a) above.

     “Employee Benefit Plan” means any “employee benefit plan” (as such term is defined in
ERISA §3(3)) and any other employee benefit plan, program or arrangement of any kind maintained by
MX and TMX.

     “Employee Plan” means any “employee benefit plan”, as defined in §3(3) of ERISA, that
(i) is subject to any provision of ERISA, (ii) is maintained, administered or contributed to by MX
or TMX or any of their ERISA Affiliates, and (iii) covers any employee or former employee of MX or
TMX.

     “Environmental Laws” means any applicable federal, state, local, provincial or foreign
law (including, without limitation, common law), treaty, judicial decision, regulation, rule,
judgment, order, decree, injunction, permit, or legally binding governmental restriction or
requirement, or any legally binding agreement with any governmental authority or other third party,
relating to human health and safety (as relating to the environment), the environment or, as
impacting human health or the environment, to pollutants, contaminants, wastes or chemicals or any
toxic, radioactive, ignitable, corrosive, reactive or otherwise hazardous substances, wastes or
materials.

     “Environmental Permits” means, as to any entity, all permits, licenses, franchises,
certificates, approvals and other similar authorizations of governmental authorities required by
Environmental Laws regarding the business of such entity as currently conducted.

     “ERISA” means the Employee Retirement Income Security Act of 1974, as amended.

     “ERISA Affiliate” means each entity which is treated as a single employer with MX for
purposes of Code §414.

     “Financial Statement” has the meaning set forth in §3.5 above.

     “GAAP” means United States generally accepted accounting principles as in effect from
time to time.

     “GTFM” has the meaning set forth in the Recitals above.

- 25 -

 

     “GTMM” has the meaning set forth in the preface above.

     “Hazardous Substances” means, in each case as regulated under any Environmental Law,
any pollutant, contaminant, waste or chemical or any toxic, radioactive, ignitable, corrosive,
reactive or otherwise hazardous substance, waste or material, or any substance, waste or material
having any constituent elements displaying any of the foregoing characteristics, including, without
limitation, petroleum, its derivatives, by-products and other hydrocarbons, and any substance,
waste or material regulated under any Environmental Law.

     “Income Tax” means any federal, state, local, or foreign income tax, including any
interest, penalty, or addition thereto, whether disputed or not.

     “Initial Closing” has the meaning set forth in §1.2 above.

     “Initial Closing Date” has the meaning set forth in §1.2 above.

     “Initial Purchase Price” has the meaning set forth in §1.3 above.

     “Initially Transferred Shares” has the meaning set forth in the Recitals above.

     “KCS Credit Agreement” means the Credit Agreement dated as of March 30, 2004 among
Kansas City Southern, The Kansas City Southern Railway Company, the Guarantors, Lenders and Banks
named therein and the Bank of Nova Scotia, Morgan Stanley Senior Funding Inc. and Harris Trust and
Savings Bank.

     “KCSR” has the meaning set forth in the Recitals above.

     “Knowledge” means actual knowledge after reasonable investigation.

     “Lien” means, with respect to any asset, any mortgage, pledge, encumbrance, charge, or
other security interest of any kind in respect of such asset, other than (a) mechanic’s,
materialmen’s, and similar liens, (b) liens for Taxes not yet due and payable , (c) purchase money
liens and liens securing rental payments under capital lease arrangements, and (d) other liens
arising in the Ordinary Course of Business and not incurred in connection with the borrowing of
money.

     “Material Adverse Effect” means, with respect to MX, a change, event or occurrence
that has had, or is reasonably likely to have, a material adverse effect on the business, assets,
properties, liabilities, financial condition or results of operations of MX and its Subsidiaries,
taken as a whole, other than any change, event or occurrence resulting from (i) changes in the
railroad industry in the United States or Mexico generally, (ii) changes in general economic
conditions in the United States or the securities markets in general, (iii) terrorist activities or
the commencement or escalation of any war or armed hostilities, which do not disproportionately
affect MX or its Subsidiaries, or (iv) the entry into or performance of this Agreement in
accordance with its terms.

- 26 -

 

     “MM” has the meaning set forth in the Recitals above.

     “Most Recent Balance Sheet” means the balance sheet contained within the Most Recent
Financial Statements.

     “Most Recent Financial Statements” has the meaning set forth in §3.5 above.

     “Most Recent Fiscal Month End” has the meaning set forth in §3.5 above.

     “Most Recent Fiscal Year End” has the meaning set forth in §3.5 above.

     “Multiemployer Plan” means a multiemployer plan, as defined in §3(37) of ERISA, which
is subject to §4022A of ERISA.

     “MX” has the meaning set forth in the Recitals above.

     “MX Shares” has the meaning set forth in the Recitals above.

     “Ordinary Course of Business” means the ordinary course of business consistent with
past custom and practice (including with respect to quantity and frequency).

     “Party” has the meaning set forth in the preface above.

     “Person” means an individual, a partnership, a corporation, an association, a joint
stock company, a trust, a joint venture, an unincorporated organization, or a governmental entity
(or any department, agency, or political subdivision thereof).

     “Process Agent” has the meaning set forth in §10.10(f) above.

     “Purchase Option” has the meaning set forth in §1.4 above.

     “Purchase Price” has the meaning set forth in §1.3 above.

     “Repair Debt” means the advances in an aggregate amount equal to $8,968,352.65 made
prior to the date of this Agreement by TFM to TMX.

     “Shareholders Agreement” means the Agreement dated May 1997 by and among KCS, Caymex
Transportation, Grupo Servia, S.A. de C.V., Transportación Maritima Mexicana, S.A. de C.V. and TMM
Multimodal, S.A. de C.V.

     “Subsequent Closing” has the meaning set forth in §1.2 above.

     “Subsequently Transferred Shares” has the meaning set forth in the Recitals above.

- 27 -

 

     “Subsidiary” means any corporation with respect to which a specified Person (or a
Subsidiary thereof) owns a majority of the common stock or has the power to vote or direct the
voting of sufficient securities to elect a majority of the directors.

     “Surface Transportation Board” or “STB” shall mean that government agency that
administers the ICC Termination Act of 1995 Pub. L. No. 104-88, 109 Stat. 803, enacted December 29,
1995.

     “Tax” means any federal, state, local, or foreign tax, including any interest,
penalty, or addition thereto, whether disputed or not.

     “TFM” has the meaning set forth in the preface above.

     “Title IV Plan” means an Employee Plan subject to Title IV of ERISA other than any
Multiemployer Plan.

     “TMX” has the meaning set forth in the Recitals above.

     “Transferred Shares” has the meaning set forth in the Recitals above.

*****

- 28 -

 

     IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first above
written.

	 	 	 	 	 
	 	KANSAS CITY SOUTHERN

 	 
	 	By:  	/s/  Michael R. Haverty 
 	 
	 	Name:  	Michael R. Haverty 	 
	 	Title:  	Chairman, President & CEO 	 
	 
	 	GRUPO TMM, S.A.

 	 
	 	By:  	/s/ José F. Servanas
 	 
	 	Name:  	José F. Servanas	 
	 	Title:  	Attorney-in-Fact	 
	 
	 	 	 
	 	By:  	/s/ Javier Segovia
 	 
	 	Name:  	Javier Segovia	 
	 	Title:  	Attorney-in-Fact	 
	 
	 	TFM, S.A. de C.V.

 	 
	 	By:  	/s/ Javier
Segovia
 	 
	 	Name:  	Javier Segovia	 
	 	Title:  	Attorney-in-Fact	 
	 
	 	 	 
	 	By:  	/s/
Jay M. Nadlman
 	 
	 	Name:  	Jay M. Nadlman	 
	 	Title:  	Attorney-in-Fact	 
	 

- 29 -exv4w8

 

Exhibit 4.8

AMENDED AND RESTATED

ACQUISITION AGREEMENT

by and among

KANSAS CITY SOUTHERN,

a Delaware corporation,

KARA Sub, Inc.,

a Delaware corporation,

KCS INVESTMENT I, LTD.,

a Delaware corporation

KCS ACQUISITION SUBSIDIARY, INC.,

a Delaware corporation

CAYMEX TRANSPORTATION, INC.,

a Delaware corporation

GRUPO TMM, S.A.,

a sociedad anónima organized under

the laws of the United Mexican States,

TMM HOLDINGS, S.A. de C.V.,

a sociedad anónima de capital variable

organized under the laws of the United Mexican States,

TMM MULTIMODAL, S.A. de C.V.,

a sociedad anónima de capital variable

organized under the laws of the United Mexican States

and

GRUPO TRANSPORTACION FERROVIARIA MEXICANA, S.A. de C.V.,

a sociedad anónima de capital variable

organized under the laws of the United Mexican States

DATED AS OF DECEMBER 15, 2004

 

 

Table of Contents

	 	 	 	 	 
	ARTICLE 1 STOCK PURCHASE
	 	 	2	 
	Section 1.1 Stock Purchase and Escrow.
	 	 	2	 
	Section 1.2 Stock Purchase Price.
	 	 	2	 
	Section 1.3 Intercompany Account Settlement.
	 	 	3	 
	ARTICLE 2 CAPITAL REDUCTION; SUBSIDIARY INVESTMENT
	 	 	4	 
	Section 2.1 GTFM Capital Reduction; Subsidiary Investment.
	 	 	4	 
	ARTICLE 3 THE MERGER
	 	 	4	 
	Section 3.1 The Merger.
	 	 	4	 
	ARTICLE 4 CLOSING
	 	 	5	 
	Section 4.1 Closing.
	 	 	5	 
	Section 4.2 Actions at Closing.
	 	 	5	 
	Section 4.3 Conversion of Securities.
	 	 	7	 
	ARTICLE 5 REPRESENTATIONS AND WARRANTIES OF SELLERS
	 	 	7	 
	Section 5.1 Organization and Related Matters.
	 	 	7	 
	Section 5.2 Authorized Capitalization.
	 	 	8	 
	Section 5.3 GTFM and GTFM Subsidiaries.
	 	 	10	 
	Section 5.4 Authority; No Violation.
	 	 	10	 
	Section 5.5 Consents and Approvals.
	 	 	11	 
	Section 5.6 Financial Statements; Undisclosed Liabilities.
	 	 	12	 
	Section 5.7 Contracts.
	 	 	13	 
	Section 5.8 Intellectual Property Rights.
	 	 	14	 
	Section 5.9 Employee Benefit Matters.
	 	 	14	 
	Section 5.10 Labor and Other Employment Matters.
	 	 	16	 
	Section 5.11 Tax Matters.
	 	 	17	 
	Section 5.12 Legal Proceedings.
	 	 	19	 
	Section 5.13 Permits and Compliance.
	 	 	19	 
	Section 5.14 Environmental Matters.
	 	 	20	 
	Section 5.15 Properties.
	 	 	21	 
	Section 5.16 Insurance.
	 	 	21	 
	Section 5.17 No Other Broker.
	 	 	21	 
	Section 5.18 No GTFM Material Adverse Effect.
	 	 	22	 
	Section 5.19 Sufficiency of and Title to Assets.
	 	 	22	 
	Section 5.20 Information in Filed Documents.
	 	 	22	 
	Section 5.21 Affiliate Agreements.
	 	 	22	 
	Section 5.22 No Loss of Significant Customers.
	 	 	23	 
	Section 5.23 Trading in and Ownership of KCS Common Stock.
	 	 	23	 
	Section 5.24 Solvency.
	 	 	23	 
	Section 5.25 Termination of Option Agreement.
	 	 	23	 
	ARTICLE 6 REPRESENTATIONS AND WARRANTIES OF KCS
	 	 	24	 

-i-

 

	 	 	 	 	 
	Section 6.1 Organization and Related Matters.
	 	 	24	 
	Section 6.2 Authority; No Violation.
	 	 	24	 
	Section 6.3 Consents and Approvals.
	 	 	26	 
	Section 6.4 Authorized Capitalization.
	 	 	27	 
	Section 6.5 SEC Filings.
	 	 	27	 
	Section 6.6 Financial Statements; Undisclosed Liabilities.
	 	 	28	 
	Section 6.7 No Other Broker.
	 	 	28	 
	Section 6.8 Information in Filed Documents.
	 	 	28	 
	Section 6.9 No KCS Material Adverse Effect; Other Actions.
	 	 	29	 
	Section 6.10 KCS Sub.
	 	 	29	 
	Section 6.11 Legal Proceedings.
	 	 	30	 
	Section 6.12 KCS Capital Resources.
	 	 	30	 
	Section 6.13 Employee Benefit Matters.
	 	 	30	 
	Section 6.14 Labor and Other Employment Matters.
	 	 	31	 
	Section 6.15 Tax.
	 	 	31	 
	Section 6.16 Permits and Compliance.
	 	 	31	 
	Section 6.17 Environmental Matters.
	 	 	31	 
	Section 6.18 Properties.
	 	 	32	 
	ARTICLE 7 COVENANTS AND ADDITIONAL AGREEMENTS
	 	 	32	 
	Section 7.1 Interim Governance Arrangements; Conduct of Business by the GTFM Group.
	 	 	32	 
	Section 7.2 Conduct of Business by KCS and its Subsidiaries.
	 	 	36	 
	Section 7.3 Confidentiality.
	 	 	37	 
	Section 7.4 Regulatory Matters; Governing Documents; Third-Party Consents.
	 	 	37	 
	Section 7.5 Stockholder Approvals.
	 	 	39	 
	Section 7.6 Tax Matters.
	 	 	40	 
	Section 7.7 Insurance.
	 	 	41	 
	Section 7.8 Notification of Certain Matters.
	 	 	41	 
	Section 7.9 Further Assurances.
	 	 	41	 
	Section 7.10 Third-Party Matters.
	 	 	41	 
	Section 7.11 Efforts of Parties to Close.
	 	 	43	 
	Section 7.12 Expenses.
	 	 	43	 
	Section 7.13 VAT Contingency Payment.
	 	 	43	 
	Section 7.14 Financing for Acquisition.
	 	 	45	 
	Section 7.15 Suspension and Dismissal of Actions; Releases.
	 	 	45	 
	Section 7.16 Legal Representation Release.
	 	 	47	 
	ARTICLE 8 CONDITIONS
	 	 	48	 
	Section 8.1 Mutual Conditions.
	 	 	48	 
	Section 8.2 Conditions to the Obligations of KCS.
	 	 	48	 
	Section 8.3 Conditions to the Obligations of Sellers.
	 	 	49	 
	ARTICLE 9 TERMINATION
	 	 	50	 
	Section 9.1 Termination.
	 	 	50	 
	Section 9.2 Survival after Termination.
	 	 	51	 
	ARTICLE 10 INDEMNIFICATION
	 	 	52	 

-ii-

 

	 	 	 	 	 
	Section 10.1 Survival of Representations, Warranties and Covenants; Exclusive
Monetary Remedies.
	 	 	52	 
	Section 10.2 Indemnification by Sellers.
	 	 	52	 
	Section 10.3 Indemnification by KCS.
	 	 	55	 
	Section 10.4 Procedures for Third-Party Claims.
	 	 	55	 
	Section 10.5 Tax Indemnification.
	 	 	57	 
	ARTICLE 11 DEFINITIONS
	 	 	58	 
	Section 11.1 Certain Defined Terms.
	 	 	58	 
	ARTICLE 12 MISCELLANEOUS
	 	 	66	 
	Section 12.1 Amendments; Waiver.
	 	 	66	 
	Section 12.2 Entire Agreement.
	 	 	66	 
	Section 12.3 Interpretation.
	 	 	67	 
	Section 12.4 Severability.
	 	 	67	 
	Section 12.5 Notices.
	 	 	67	 
	Section 12.6 Headings
	 	 	69	 
	Section 12.7 Binding Effect; Persons Benefiting; No Assignment.
	 	 	69	 
	Section 12.8 No Third Party Beneficiaries.
	 	 	69	 
	Section 12.9 Counterparts.
	 	 	69	 
	Section 12.10 Specific Enforcement.
	 	 	69	 
	Section 12.11 Governing Law; Dispute Resolution.
	 	 	69	 
	Section 12.12 Announcements.
	 	 	72	 
	Section 12.13 Termination Fee.
	 	 	72	 

-iii-

 

TABLE OF DEFINED TERMS

	 	 	 	 	 	 	 	 	 
	Term	 	Page	 	 	Section	 
	Acquisition 
	 	 	1	 	 	Preamble
	Acquisition Agreement Claims 
	 	 	42	 	 	 	7.15	(a)
	Affiliate 
	 	 	54	 	 	 	11.1	 
	Affiliate Agreements 
	 	 	21	 	 	 	5.21	 
	Agreement 
	 	 	1	 	 	Preamble
	Amended By-laws 
	 	 	30	 	 	 	7.1	(a)
	Amendment to the Trust Agreement 
	 	 	58	 	 	 	11.1	 
	Ancillary Agreements 
	 	 	1	 	 	Preamble
	Applicable Law 
	 	 	54	 	 	 	11.1	 
	Arbitration 
	 	 	43	 	 	 	7.15	(c)
	Arbitration Costs 
	 	 	66	 	 	12.11(d)(iii)
	Arbitration Demand 
	 	 	65	 	 	 	12.11	(d)
	Arbitrators 
	 	 	65	 	 	 	12.11	(d)(i)
	Authority Litigation 
	 	 	58	 	 	 	11.1	 
	Authority Litigation Agreement 
	 	 	58	 	 	 	11.1	 
	Benefit Plan 
	 	 	14	 	 	 	5.9	(a)
	Business Day 
	 	 	54	 	 	 	11.1	 
	Buyer Parties 
	 	 	40	 	 	 	7.10	(c)
	Capital Reduction 
	 	 	4	 	 	 	2.1	(a)
	Caymex 
	 	 	1	 	 	Preamble
	Certificate of Merger 
	 	 	4	 	 	 	3.1	(a)
	CFC 
	 	 	35	 	 	 	7.4	(d)
	Change of Control 
	 	 	54	 	 	 	11.1	 
	Closing 
	 	 	5	 	 	 	4.1	 
	Closing Date 
	 	 	5	 	 	 	4.1	 
	Closing Escrow 
	 	 	2	 	 	 	1.1	(b)
	Closing Escrow Agreement 
	 	 	2	 	 	 	1.1	(b)
	Code 
	 	 	28	 	 	 	6.13	 
	Commence 
	 	 	42	 	 	 	7.15	(a)
	Concession
	 	 	55	 	 	 	11.1	 
	Confidentiality Agreements
	 	 	55	 	 	 	11.1	 
	Consultant
	 	 	55	 	 	 	11.1	 
	Consulting Agreement
	 	 	55	 	 	 	11.1	 
	Continuing Affiliate Agreements 
	 	 	 	 	 	 	5.21	 
	Contracts
	 	 	55	 	 	 	11.1	 
	Control
	 	 	55	 	 	 	11.1	 
	De Teresa 
	 	 	 	 	 	 	5.7	(d)
	De Teresa Agreements
	 	 	13	 	 	 	5.7	(d)
	Del. G.C.L.
	 	 	4	 	 	 	3.1	(a)
	Designated Person
	 	 	53	 	 	10.2(a)(ii)

-iv-

 

	 	 	 	 	 	 	 	 	 
	Term	 	Page	 	 	Section	 
	Dismissals
	 	 	56	 	 	 	11.1	 
	Disputes
	 	 	64	 	 	 	12.11	(a)
	Dispute Notice
	 	 	65	 	 	 	12.11	(c)
	Dispute Parties
	 	 	64	 	 	 	12.11	(a)
	Dispute Party
	 	 	64	 	 	 	12.11	(a)
	Effective Time
	 	 	4	 	 	 	3.1	(a)
	EMVA
	 	 	20	 	 	 	5.17	 
	Encumbrance
	 	 	55	 	 	 	11.1	 
	Environmental Laws
	 	 	55	 	 	 	11.1	 
	Environmental Permit
	 	 	55	 	 	 	11.1	 
	ERISA
	 	 	28	 	 	 	6.13	 
	ERISA Affiliate
	 	 	56	 	 	 	11.1	 
	Escrow Agent
	 	 	5	 	 	 	4.2	(a)
	Exchange Act
	 	 	56	 	 	 	11.1	 
	Expiration Date
	 	 	48	 	 	 	10.1	(a)
	FIC
	 	 	36	 	 	 	7.4	(e)
	FIC Approval
	 	 	36	 	 	 	7.4	(e)
	Final Tax Resolution
	 	 	58	 	 	10.5(e)(iv)
	Final Resolution of the
VAT Claim and Put
	 	 	56	 	 	 	11.1	 
	GAAP
	 	 	56	 	 	 	11.1	 
	Governmental Authority
	 	 	56	 	 	 	11.1	 
	GTFM
	 	 	1	 	 	Preamble
	GTFM Assets
	 	 	20	 	 	 	5.19	 
	GTFM Benefit Plan
	 	 	14	 	 	 	5.9	(a)
	GTFM Business
	 	 	57	 	 	 	11.1	 
	GTFM Financial Statements
	 	 	12	 	 	 	5.6	 
	GTFM Form 20-F
	 	 	56	 	 	 	11.1	 
	GTFM Group
	 	 	57	 	 	 	11.1	 
	GTFM Insurance Policies
	 	 	19	 	 	 	5.16	 
	GTFM Material Adverse Effect
	 	 	57	 	 	 	11.1	 
	GTFM Shares
	 	 	2	 	 	 	1.1	(a)
	GTFM Sub Note
	 	 	4	 	 	 	2.1	(b)
	GTFM Subsidiaries
	 	 	57	 	 	 	11.1	 
	GTFM Taxpayer
	 	 	57	 	 	 	10.5	(e)
	GTFM Trademarks
	 	 	57	 	 	 	11.1	 
	GTFM Voting Debt
	 	 	8	 	 	 	5.2	 
	Hazardous Materials
	 	 	57	 	 	 	11.1	 
	HSR Act
	 	 	57	 	 	 	11.1	 
	IFRS
	 	 	57	 	 	 	11.1	 
	Income Taxes
	 	 	57	 	 	 	11.1	 
	Indemnified Party
	 	 	52	 	 	 	10.4	(a)
	Indemnity Escrow
	 	 	3	 	 	 	1.2	(c)
	Indemnity Escrow Agreement
	 	 	3	 	 	 	1.2	(c)

-v-

 

	 	 	 	 	 	 	 	 	 
	Term	 	Page	 	 	Section	 
	Indemnity Escrow Notes
	 	 	2	 	 	 	1.2	(a)
	Intellectual Property
	 	 	57	 	 	 	11.1	 
	Investment Advisers Act
	 	 	57	 	 	 	11.1	 
	Investment Company Act
	 	 	57	 	 	 	11.1	 
	KARA Sub
	 	 	1	 	 	Preamble
	KCS
	 	 	1	 	 	Preamble
	KCS Acquisition Proposal
	 	 	40	 	 	 	7.10	(c)
	KCS Assets
	 	 	58	 	 	 	11.1	 
	KCS Board
	 	 	26	 	 	 	6.3	(c)
	KCS Business
	 	 	58	 	 	 	11.1	 
	KCS Disclosure Schedule
	 	 	22	 	 	Article 6 Introduction
	KCS Investment
	 	 	1	 	 	Preamble
	KCS Financial Statements
	 	 	26	 	 	 	6.6	(a)
	KCS Indemnitees
	 	 	49	 	 	 	10.2	(a)
	KCS Material Adverse Effect
	 	 	58	 	 	 	11.1	 
	KCS Preferred Stock
	 	 	26	 	 	 	6.4	 
	KCS Purchasers
	 	 	1	 	 	Preamble
	KCS SEC Documents
	 	 	25	 	 	 	6.5	 
	KCS Stockholder Approval
	 	 	24	 	 	 	6.3	(a)
	KCS Stockholder Rights Plan 
	 	 	 	 	 	 	11.1	 
	KCS Stock Option Plan
	 	 	58	 	 	 	11.1	 
	KCS Sub
	 	 	1	 	 	Preamble
	KCS Sub Common Stock
	 	 	4	 	 	 	2.1	(b)
	KCS Sub Note
	 	 	4	 	 	 	2.1	(b)
	KCS Sub Shares
	 	 	4	 	 	 	2.1	(b)
	KCS Voting Debt
	 	 	25	 	 	 	6.4	 
	Knowledge
	 	 	58	 	 	 	11.1	 
	Law
	 	 	58	 	 	 	11.1	 
	Legal Representation Release
	 	 	47	 	 	 	7.16	 
	Losses
	 	 	49	 	 	 	10.2	(a)
	Management Claims
	 	 	42	 	 	 	7.15	(a)
	Master Trust Agreement
	 	 	21	 	 	 	5.25	 
	Merger
	 	 	1	 	 	Preamble
	Mexican Litigation List
	 	 	44	 	 	 	7.15	(e)
	MM
	 	 	1	 	 	Preamble
	MM Stockholder Approval
	 	 	11	 	 	 	5.5	(a)
	MM Subsidiaries
	 	 	58	 	 	 	11.1	 
	Net Receivable Amount
	 	 	3	 	 	 	1.3	(a)
	New Series Preferred Stock
	 	 	24	 	 	 	6.4	 
	NOL Value
	 	 	41	 	 	 	7.13	(a)
	NYSE
	 	 	58	 	 	 	11.1	 
	Ongoing Litigation Matters
	 	 	13	 	 	 	5.7	(d)
	Option Agreement
	 	 	21	 	 	 	5.25	 
	Original Acquisition Agreement
	 	 	1	 	 	Preamble

-vi-

 

	 	 	 	 	 	 	 	 	 
	Term	 	Page	 	 	Section	 
	Party
	 	 	1	 	 	Preamble
	Parties
	 	 	1	 	 	Preamble
	Permits
	 	 	18	 	 	 	5.13	(a)
	Permitted Encumbrance
	 	 	58	 	 	 	11.1	 
	Person
	 	 	59	 	 	 	11.1	 
	Proceedings
	 	 	17	 	 	 	5.12	 
	Process Agent
	 	 	67	 	 	 	12.11	(f)
	Put
	 	 	59	 	 	 	11.1	 
	Put Agreement
	 	 	59	 	 	 	11.1	 
	Put Assignment Agreement
	 	 	59	 	 	 	11.1	 
	Put Purchase Price
	 	 	59	 	 	 	11.1	 
	Reconciliation
	 	 	12	 	 	 	5.6	 
	Releases
	 	 	59	 	 	 	11.1	 
	Release Resolutions
	 	 	59	 	 	 	11.1	 
	Scheduled Contracts
	 	 	12	 	 	 	5.7	(a)
	SEC
	 	 	59	 	 	 	11.1	 
	Securities
	 	 	59	 	 	 	11.1	 
	Securities Act
	 	 	59	 	 	 	11.1	 
	Securities Laws
	 	 	59	 	 	 	11.1	 
	Selected Tax Advisor
	 	 	57	 	 	10.5(e)(iii)
	Seller Disclosure Schedule
	 	 	7	 	 	Article 5 Introduction
	Seller Indemnitees
	 	 	51	 	 	 	10.3	(a)
	Seller Material Adverse Effect
	 	 	59	 	 	 	11.1	 
	Seller Parties
	 	 	39	 	 	 	7.10	(a)
	Sellers
	 	 	7	 	 	Article 5 Introduction
	Stock Purchase
	 	 	1	 	 	Preamble
	Stock Purchase Price
	 	 	2	 	 	 	1.1	(a)
	Straddle Period
	 	 	38	 	 	 	7.6	(a)
	Subscription Agreement
	 	 	4	 	 	 	2.1	(b)
	Subsidiary
	 	 	60	 	 	 	11.1	 
	Subsidiary Approvals
	 	 	11	 	 	 	5.5	(a)
	Subsidiary Investment
	 	 	1	 	 	Preamble
	Surviving Company
	 	 	4	 	 	 	3.1	(a)
	Tax
	 	 	60	 	 	 	11.1	 
	Tax Assessment
	 	 	57	 	 	 	10.5	(e)(i)
	Tax Return
	 	 	60	 	 	 	11.1	 
	Taxing Authority
	 	 	60	 	 	 	11.1	 
	Termination Date
	 	 	48	 	 	9.1(a)(vi)
	TFM
	 	 	60	 	 	 	11.1	 
	Third-Party Claim
	 	 	52	 	 	 	10.4	(a)
	TMM
	 	 	1	 	 	Preamble
	TMM Acquisition Proposal
	 	 	39	 	 	 	7.10	(a)
	TMM Parties
	 	 	36	 	 	 	7.4	(e)(i)
	TMM Stockholder Approval
	 	 	11	 	 	 	5.5	(a)

-vii-

 

	 	 	 	 	 	 	 	 	 
	Term	 	Page	 	 	Section	 
	TMMH
	 	 	1	 	 	Preamble
	TMMH Stockholder Approval
	 	 	11	 	 	 	5.5	(a)
	Transition Management Team
	 	 	31	 	 	 	7.1	(c)
	Transition Managers
	 	 	31	 	 	 	7.1	(c)
	Trust
	 	 	21	 	 	 	5.25	 
	UMS
	 	 	1	 	 	Preamble
	U.S.
	 	 	60	 	 	 	11.1	 
	VAT
	 	 	60	 	 	 	11.1	 
	VAT Claim
	 	 	60	 	 	 	11.1	 
	VAT Contingency Payment
	 	 	41	 	 	 	7.13	(a)
	VAT Escrow
	 	 	42	 	 	 	7.13	(a)
	VAT Escrow Agreement
	 	 	42	 	 	 	7.13	(a)
	VAT Payment
	 	 	60	 	 	 	11.1	 
	Volume Weighted Price
	 	 	60	 	 	 	11.1	 
	Voting Trust
	 	 	60	 	 	 	11.1	 

	 	 	 
	Exhibit A

	 	Seller Disclosure Schedule
	Exhibit B

	 	KCS Disclosure Schedule
	Exhibit C

	 	Form of Release Resolutions
	Exhibit D

	 	Certificate of Merger
	Exhibit E

	 	Form of Indemnity Escrow Notes
	Exhibit F

	 	GTFM Resolutions Effecting Capital Reduction
	Exhibit G

	 	Form of GTFM Subordinated Promissory Note
	Exhibit H

	 	Revoked Powers of Attorney
	Exhibit I

	 	New Powers of Attorney
	Exhibit J

	 	Amended By-laws of GTFM and TFM
	Exhibit K

	 	Mexican Litigation List
	Exhibit L

	 	Legal Representation Release
	Exhibit M

	 	Omitted
	Exhibit N

	 	Subscription Agreement
	Exhibit O

	 	Selected Tax Advisor
	Exhibit P

	 	Designated Person

-viii-

 

     AMENDED AND RESTATED ACQUISITION AGREEMENT, dated as of December 15, 2004 (this “Agreement”),
by and among KANSAS CITY SOUTHERN, a Delaware corporation (“KCS”), KARA Sub, Inc., a Delaware
corporation (“KARA Sub”), KCS Investment I, Ltd., a Delaware corporation (“KCS Investment”), KCS
Acquisition Subsidiary, Inc., a Delaware corporation (“KCS Sub”), Caymex Transportation, Inc., a
Delaware corporation (“Caymex”), KARA Sub, KCS Investment, KCS Sub and Caymex being subsidiaries of
KCS, GRUPO TMM, S.A., a sociedad anónima organized under the laws of the United Mexican States
(“UMS”) (“TMM”), TMM HOLDINGS, S.A. de C.V., a sociedad anónima de capital variable organized under
the laws of the UMS and a subsidiary of TMM (“TMMH”), TMM MULTIMODAL, S.A. de C.V., a sociedad
anónima de capital variable organized under the laws of the UMS (“MM”) and a subsidiary of TMMH
and Grupo Transportacion Ferroviaria Mexicana, S.A. de C.V., a sociedad anónima de capital variable
organized under the laws of the UMS (“GTFM”) and a subsidiary of MM (each, a “Party” and
collectively, the “Parties”).

     WHEREAS, certain of the Parties entered into an Acquisition Agreement dated as of April 20,
2003 (the “Original Acquisition Agreement”);

     WHEREAS, disputes with respect to the Original Acquisition Agreement and certain other matters
have arisen between the parties to that agreement and the Parties desire to amend and restate the
Original Acquisition Agreement in order to, among other things, facilitate settlement and final
resolution of such disputes;

     WHEREAS, each of the Boards of Directors of KCS, TMM, TMMH and MM has approved and declared
advisable the acquisition by KCS of all of MM’s interest in GTFM, through (i) the purchase by KARA
Sub, KCS Investment and Caymex (together, the “KCS Purchasers”) from MM of all of the capital stock
of GTFM held by MM (the “Stock Purchase”), (ii) the investment by MM in KCS Sub (the “Subsidiary
Investment”), and (iii) the merger of KCS Sub with and into KCS (the “Merger”) upon the terms and
subject to the conditions of this Agreement (collectively, the Stock Purchase, Subsidiary
Investment and the Merger comprise the “Acquisition”); and

     WHEREAS, certain of the Parties and other parties are entering into ancillary agreements (the
“Ancillary Agreements,” identified hereinafter) and a Consulting Agreement to carry out certain of
the objectives of this Agreement and of the Acquisition.

     NOW, THEREFORE, in consideration of the foregoing and the respective representations,
warranties, covenants and agreements set forth in this Agreement and intending to be legally bound
hereby, the Parties agree as follows:

-1-

 

ARTICLE 1

STOCK PURCHASE

     Section 1.1 Stock Purchase and Escrow.

     (a) Upon the terms and subject to satisfaction or waiver of the conditions set forth in
Article 8, at the Closing (as defined in Section 4.1), the KCS Purchasers shall purchase, acquire
and receive from MM, and MM shall sell, assign, transfer, convey and deliver to the KCS Purchasers,
in the proportions set forth below, all GTFM Shares held by MM, consisting of 25,500 shares of
Series “A” fixed capital stock of GTFM and 3,842,901 shares of Series “A” variable capital stock of
GTFM (collectively, the “GTFM Shares”), for the consideration described in Section 1.2 (the “Stock
Purchase Price”).

	 	 	 	 	 	 	 	 	 
	 	 	Shares of GTFM	 	Shares of GTFM
	 	 	Series A fixed	 	Series A variable
	KCS	 	capital stock	 	capital stock
	Purchasers	 	to be purchased	 	to be purchased
	KARA Sub

KCS Investment

Caymex

	 	 	12,750

12,750

-0-	 	 	 	1,696,201

1,696,201

450,499	 
	 

	 	 	 	 	 	 	 	 
	Total

	 	 	25,500	 	 	 	3,842,901	 
	 

	 	 	 	 	 	 	 	 

     (b) Immediately following execution of this Agreement by all of the Parties, the GTFM Shares
shall be deposited into an escrow account (the “Closing Escrow”) to be held in accordance with the
terms and conditions of the escrow agreement entered into as of the date of this Agreement by
certain of the Parties (the “Closing Escrow Agreement”).

     Section 1.2 Stock Purchase Price.

     (a) The Stock Purchase Price to be paid by the KCS Purchasers to MM for the purchase of the
GTFM Shares shall be paid by the delivery of: (i) at the Closing, $200 million, in immediately
available funds, by wire transfer to the account designated by TMM by notice to the Escrow Agent
(defined below), with a copy to KCS, at least three (3) business days prior to the Closing Date (as
defined in Section 4.1), (ii) on that date which shall be determined as provided in Section 7.13,
the amount of any VAT Contingency Payment which shall then be due under the terms and conditions in
Section 7.13, and (iii) at the Closing, promissory notes of KCS in the aggregate principal amount
of $47 million in the form set forth in Exhibit E hereto (the “Indemnity Escrow Notes”).

     (b) Immediately following execution of this Agreement by all of the Parties, on behalf of the
KCS Purchasers, KCS shall deposit $100 million, and within five (5) business days after the

-2-

 

date of this Agreement, KCS shall deposit the additional $100 million, in the Closing Escrow
to be held in accordance with the terms and conditions of the Closing Escrow Agreement.

     (c) At the Closing, on behalf of the KCS Purchasers, KCS shall deposit the Indemnity Escrow
Notes in another escrow account (the “Indemnity Escrow”) to be held in accordance with the terms
and conditions of an escrow agreement (the “Indemnity Escrow Agreement”) entered into as of the
date of this Agreement by certain of the Parties.

     Section 1.3 Intercompany Account Settlement.

     (a) The Parties shall settle the net intercompany receivables as follows: (A) the Parties
shall calculate the amount, if any, of open accounts receivables as of the Closing Date, or if the
Closing shall not occur at the end of a month, at the end of the month immediately preceding the
month in which the Closing occurs, (i) from TMM, TMM Logistics, S.A. de C.V. or any other
Subsidiary of TMM (other than GTFM or any of the GTFM Subsidiaries), on the one hand, to GTFM or
any of the GTFM Subsidiaries, on the other hand, and (ii) from GTFM or any of the GTFM
Subsidiaries, on the one hand, to TMM, TMM Logistics, S.A. de C.V. or any other Subsidiary of TMM
(other than GTFM or any of the GTFM Subsidiaries), on the other hand; (B) the Parties shall
calculate the absolute value of the difference between the amount determined under clause (i)
above, and the amount determined under clause (ii), above (the “Net Receivable Amount”); and (C)
such Net Receivable Amount shall be paid to the Party with the greater amount of open accounts
receivables, within three (3) business days after the Net Receivable Amount is finally determined
as set forth in this Section 1.3.

     (b) Each Party has the right to audit, upon reasonable written notice to another Party (or
Parties, in each case) (at the requesting Party’s expense), during normal business hours and at the
principal office of the other Party such other Party’s records and procedures relating to the
calculations required by this Section 1.3. Such other Party shall reasonably cooperate with the
requesting Party during any such audit.

     (c) Any Party may dispute another Party’s computation of the Net Receivable Amount by notice
to the other Party within five (5) business days of the receipt of the other Party’s computation.
In the event that any Party (i) fails to provide any computation of the Net Receivable Amount
within five (5) business days of a written request therefor or (ii) having been furnished with the
other Party’s computation, fails to provide a notice of dispute within the period set forth above,
the Party failing to provide the computation or failing to provide such notice of dispute shall be
deemed to have accepted and may not dispute the other Party’s computation for purposes of this
Agreement. In the event that both Parties provide a notice of dispute, the Parties’ respective
representatives shall meet as promptly as practicable to attempt to agree on the computation of the
Net Receivable Amount. If the Parties are unable to agree within forty-five (45) days following
such meeting on the computation of the Net Receivable Amount, then the computation of the Net
Receivable Amount shall be determined by arbitration as set forth in Section 12.11 (provided, that
if the Parties agree, they may appoint a single arbitrator for purposes of this Section 1.3).

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ARTICLE 2

CAPITAL REDUCTION; SUBSIDIARY INVESTMENT

     Section 2.1 GTFM Capital Reduction; Subsidiary Investment.

     (a) GTFM shall, effective at the Closing Date, adopt the resolutions attached as Exhibit F to
effect, immediately prior to the Stock Purchase, the capital reduction (the “Capital Reduction”)
under the Laws of the UMS, as specified in such resolutions.

     (b) At the Closing, (i) MM shall exchange the Subordinated Promissory Note of GTFM, received
pursuant to the Capital Reduction in the form attached hereto as Exhibit G (the “GTFM Sub Note”)
for a subordinated promissory note of KCS Sub in the principal amount equal to the principal amount
of the GTFM Sub Note (the “KCS Sub Note”), (ii) MM shall subscribe for and purchase from KCS Sub
100 shares (the “KCS Sub Shares”) of KCS Sub common stock, $.01 par value per share (“KCS Sub
Common Stock”), representing 10% of the issued and outstanding shares of KCS Sub Common Stock
pursuant to the terms and conditions of the Subscription Agreement in the form attached hereto as
Exhibit N (the “Subscription Agreement”), (iii) KCS Sub shall issue, sell and transfer to MM the
KCS Sub Shares in consideration for delivery by MM to KCS Sub of the KCS Sub Note (the transactions
described in (i) through (iii) collectively, the “Subsidiary Investment”), and (iv) the GTFM Sub
Note shall be delivered to GTFM by KCS or Subsidiaries of KCS in exchange for equity of GTFM as
specified in the resolutions attached hereto as Exhibit F.

     (c) Simultaneously with the execution of this Agreement, MM and KCS Sub shall enter into the
Subscription Agreement for the purchase at the Closing by MM of the KCS Sub Shares. Immediately
following execution of this Agreement, the Subscription Agreement, the KCS Sub Shares, the GTFM Sub
Note and the KCS Sub Note shall be deposited in the Closing Escrow, to be held in accordance with
the terms and conditions of the Closing Escrow Agreement.

ARTICLE 3

THE MERGER

     Section 3.1 The Merger.

     (a) Immediately following the Subsidiary Investment, KCS Sub shall be merged with and into KCS
in accordance with the General Corporation Law of the State of Delaware (“Del. G.C.L.”). KCS and
KCS Sub shall cause the Merger to be consummated by causing the Escrow Agent to file a certificate
of merger in the form attached hereto as Exhibit D (the “Certificate of Merger”) with the Secretary
of State of the State of Delaware, executed in accordance with the relevant provisions of the Del.
G.C.L. (the date and time of the filing of the Certificate of Merger being the “Effective Time”).
At the Effective Time, the effects of the Merger shall be as provided in the Certificate of Merger
and the applicable provisions of the Del. G.C.L. As a

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result of the Merger, the separate corporate existence of KCS Sub shall cease and KCS shall
continue as the surviving corporation of the Merger (the “Surviving Company”).

     (b) Immediately following execution of this Agreement by all of the Parties, (i) KCS and KCS
Sub shall deposit in the Closing Escrow the form of Certificate of Merger to be executed in
accordance with the Del. G.C.L., and (ii) KCS shall deposit in the Closing Escrow the shares of KCS
Common Stock to be received by MM in the Merger, as provided in Section 4.3.

ARTICLE 4

CLOSING

     Section 4.1 Closing. Unless this Agreement shall have been earlier terminated in accordance with
the terms hereof, the consummation of the transactions contemplated by this Agreement (the
“Closing”) shall, subject to the satisfaction or waiver of the conditions set forth in Article 8,
take place at the offices of Sonnenschein Nath & Rosenthal LLP, 1221 Avenue of the Americas,
24th Floor, New York, New York, on the second (2nd) Business Day after all of the
conditions set forth in Article 8 have been satisfied or waived (other than the conditions that
relate to actions to be taken at the Closing) or at such other date, time and place as KCS and TMM
shall mutually agree in writing (the date on which the Closing takes place, the “Closing Date”).
The closing of the Acquisition is dependent upon the closing of each of the Stock Purchase, the
Subsidiary Investment and the Merger and if any one of the Stock Purchase, the Subsidiary
Investment or the Merger shall not occur, then the Acquisition shall not close and all shares,
consideration, agreements, instruments and other items shall be released from or retained in the
Closing Escrow as provided for in the Closing Escrow Agreement or as otherwise agreed in writing by
the Parties.

     Section 4.2 Actions at Closing. At the Closing:

     (a) Pursuant to the Closing Escrow Agreement, the escrow agent appointed pursuant to the
Closing Escrow Agreement (the “Escrow Agent”) shall (i) deliver to MM the Stock Purchase Price, on
behalf of the KCS Purchasers, and (ii) deliver to the KCS Purchasers, on behalf of MM, the stock
certificates for the GTFM Shares, duly endorsed and in proper form to transfer to the KCS
Purchasers, as their interests appear in Section 1.1(a), ownership of such shares free and clear of
any and all Encumbrances.

     (b) Pursuant to the Closing Escrow Agreement, the Escrow Agent (i) on behalf of MM, shall
deliver to KCS Sub the GTFM Sub Note, duly endorsed for transfer to KCS Sub free and clear of any
and all Encumbrances, (ii) on behalf of KCS Sub, shall deliver to MM the KCS Sub Note, (iii) on
behalf of MM, shall deliver to KCS Sub the KCS Sub Note, duly endorsed for transfer to KCS Sub free
and clear of any and all Encumbrances, and (iv) on behalf of KCS Sub, shall issue and deliver to MM
the KCS Sub Shares.

     (c) [Omitted]

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     (d) Pursuant to the Closing Escrow Agreement, the Escrow Agent shall deliver the Certificate
of Merger to KCS for execution and filing with the Secretary of State of Delaware to effect the
Merger, and at the Effective Time shall deliver to MM the shares of KCS Common Stock to which MM
shall have become entitled pursuant to Section 4.3.

     (e) The Indemnity Escrow Notes shall be deposited into the Indemnity Escrow to be held
pursuant to the terms and conditions of the Indemnity Escrow Agreement.

     (f) The Parties shall deliver and receive, respectively, the officers’ certificates referred
to in Section 8.2(c) and 8.3(c).

     (g) To the extent in the possession of, or available to, TMM or MM, or any of their respective
Subsidiaries, Affiliates, directors, officers, employees or representatives, TMM and MM shall, and
TMM shall cause MM to, deliver to GTFM all files and books of account, including business,
financial and tax records, of GTFM, including minute books, stock record books, the agreement
relating to the Concession and supporting exhibits and records relating thereto and work papers.
In addition, each Party shall deliver to the other Parties such other documents, resolutions,
appointments, powers of attorney and instruments of transfer necessary or appropriate to implement
this Agreement and effect the transactions contemplated hereby and by the Ancillary Agreements, in
each case as may be reasonably requested and in form and substance reasonably acceptable to the
requesting Party.

     (h) The Secretary of GTFM shall make the corresponding notation in the Stock Registry Book of
GTFM evidencing the KCS Purchasers, as their interests appear in Section 1.1(a), as the record,
legal and beneficial owners of the GTFM Shares as of the Closing Date.

     (i) All other instruments, agreements and items held in the Closing Escrow (including the
Releases, the Release Resolutions and the documents necessary for the Dismissals) shall be
delivered to the party entitled to receive the same pursuant to the terms of the Closing Escrow
Agreement and TMM shall deliver to KCS the Legal Representation Release.

     (j) Sellers shall deliver a copy of resolutions which Sellers and KCS shall have caused to be
adopted by the shareholders of GTFM and TFM, effective as of the Closing, (i) accepting the
resignations of the representatives of TMM serving on such boards of directors, (ii) approving the
financial statements of GTFM and TFM for the year ended December 31, 2003, (iii) waiving all rights
of first refusal to, and approving, the transfer of the GTFM Shares to the KCS Purchasers, and (iv)
electing new directors of GTFM and of TFM.

     (k) Each action taken at the Closing pursuant to this Agreement shall depend on the occurrence
of all actions required to be taken at the Closing pursuant to this Agreement and no action or
transaction will be deemed to have taken place, or document delivered, or payment made, unless all
actions and transactions have been completed and all documents have been executed and delivered;
provided, that any agreements that, in accordance with their terms, are to become effective prior
to the Closing Date, shall be effective to the extent provided therein.

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     Each Party shall take all action necessary to cause the Escrow Agent to take all action
required under the Closing Escrow Agreement to be taken by the Escrow Agent on such Party’s behalf.

     Section 4.3 Conversion of Securities. At the Effective Time, by virtue of the Merger and
without any other action on the part of any Party:

     (a) the KCS Sub Shares shall be converted into and exchanged for an aggregate of 18,000,000
shares of KCS Common Stock;

     (b) the shares of KCS Sub Common Stock issued and outstanding immediately prior to the
Effective Time, other than the KCS Sub Shares, shall be cancelled;

     (c) each share of KCS Common Stock, KCS Preferred Stock (as defined in Section 6.4) and New
Series Preferred Stock (as defined in Section 6.4), issued and outstanding immediately prior to the
Effective Time shall remain issued and outstanding as one share of KCS Common Stock, KCS Preferred
Stock and New Series Preferred Stock, respectively, of the Surviving Company;

     (d) each share of KCS Common Stock and each share of KCS Preferred Stock and New Series
Preferred Stock that is owned by KCS immediately prior to the Effective Time as treasury stock
shall remain as one share of treasury stock of the Surviving Company; and

     (e) each option to acquire KCS Common Stock issued and outstanding immediately prior to the
Effective Time shall be adjusted as necessary to provide that, at the Effective Time, such option
shall be deemed an option to acquire, on the same terms and conditions as were applicable under
such option, the number of shares of Common Stock of the Surviving Company equal to the number of
shares of KCS Common Stock subject to such option.

ARTICLE 5

REPRESENTATIONS AND WARRANTIES OF SELLERS

     Except as set forth under the applicable sections in the disclosure schedule attached as
Exhibit A to this Agreement (the “Seller Disclosure Schedule”), TMM, TMMH and MM (“Sellers”),
jointly and severally, represent and warrant to KCS as set forth below. With respect to each such
representation, it shall be deemed qualified by matters set forth on the Seller Disclosure Schedule
under the corresponding section number, whether or not the representation or any portion thereof
refers to the Seller Disclosure Schedule by use of the phrase “except as set forth in the Seller
Disclosure Schedule” or words of similar import.

     Section 5.1 Organization and Related Matters.

     (a) TMM is a sociedad anónima, duly formed and validly existing under the laws of the UMS.
TMM has the corporate power and authority necessary to carry on its business in the manner as it is
now being conducted and to own, lease and operate all of its properties and assets.

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The copy of
TMM’s Corporate Charter and Bylaws previously provided to KCS is a complete and correct copy of
such instrument as in effect on the date hereof. Sellers have provided KCS with an English
translation of such documents.

     (b) TMMH is a sociedad anónima de capital variable, duly formed and validly existing under the
laws of the UMS. TMMH has the corporate power and authority necessary to carry on its business in
the manner it is now being conducted and to own, lease and operate all of its properties and
assets. TMMH is a subsidiary of TMM, which owns all of the issued and outstanding capital stock of
TMMH, except as set forth in Section 5.1 of the Seller Disclosure Schedule.

     (c) MM is a sociedad anónima de capital variable, duly formed and validly existing under the
laws of the UMS. MM has the corporate power and authority necessary to carry on its respective
business in the manner it is now being conducted and to own, lease and operate all of its
properties and assets. MM is a subsidiary of TMMH, which owns all of the issued and outstanding
capital stock of MM, except as set forth in Section 5.1 of the Seller Disclosure Schedule.

     (d) GTFM is a sociedad anónima de capital variable, duly formed and validly existing under the
laws of the UMS, and each of the GTFM Subsidiaries is a sociedad anónima de capital variable or
other business entity duly formed, validly existing and in good standing under the laws of the UMS.
GTFM has the corporate power and authority necessary to carry on its business in the manner it is
now being conducted and to own, lease and operate all of its properties and assets.

     (e) Each of TMM, TMMH, MM, GTFM and the GTFM Subsidiaries is duly licensed or qualified to do
business in each jurisdiction in which the nature of the business conducted by it or the character
or location of the properties and assets owned, leased or operated by it makes such qualification
or licensing necessary, except in jurisdictions where the failure to be so licensed or qualified
would not individually or in the aggregate have a GTFM Material Adverse Effect.

     (f) The copies of the Corporate Charter and Bylaws of each of TMMH, MM, GTFM, and of each of
the GTFM Subsidiaries, delivered to KCS by TMM prior to the execution of this Agreement are
complete and correct copies of such instruments as in effect immediately prior to the execution of
this Agreement and Sellers have provided KCS with English translations of such documents.

     (g) The powers of attorney identified in Exhibit H hereto have been revoked and replaced with
new powers of attorney, identified in Exhibit I hereto, effective as of the date of this Agreement.

     Section 5.2 Authorized Capitalization. The authorized capital stock of GTFM consists of (i) 25,500
shares of Series “A” fixed capital, of which 25,500 shares are held by MM, (ii) 3,842,901 shares of
Series “A” variable capital, of which 3,842,901 shares are held by MM, (iii)

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24,500 shares of
Series “B” fixed capital, of which 24,500 shares are held by NAFTA Rail, S.A. de C.V., (iv)
3,692,199 shares of Series “B” variable capital, of which 3,692,199 shares are held by NAFTA Rail,
S.A. de C.V., and (v) 2,478,470 shares of Series “L-2” variable capital, of which 2,478,470 are
held by TFM. There are no other shares of capital stock of GTFM or other ownership interests in
GTFM issued, reserved for issuance or outstanding. All of the shares of capital stock of GTFM
outstanding are duly authorized, validly issued, fully paid and nonassessable and, except as set
forth in Section 5.2 of the Seller Disclosure Schedule, free of any preemptive rights and are not
subject to any voting trust agreement (or similar agreement), or other Contract restricting or
otherwise relating to the voting, dividend rights or disposition of such shares to which GTFM or
any of the Sellers is a party or by which GTFM or any of the Sellers is bound. Except as set forth
in Section 5.2 of the Seller Disclosure Schedule, there is no outstanding option, warrant,
convertible or exchangeable security, right, subscription, call, right of first refusal, legally
binding commitment, preemptive right or other agreement or right of any kind to which GTFM or the
Sellers are a party or are otherwise bound entitling any Person to purchase or otherwise acquire
(including by exchange or conversion) from GTFM or any GTFM Subsidiary any shares of capital stock
of GTFM. Except as set forth in the Put Agreement (which is currently being contested pursuant to
pending legal proceedings), there are no outstanding obligations of GTFM or any of its Subsidiaries
to redeem, repurchase or otherwise acquire any of the shares of capital stock of GTFM or any shares
of capital stock (or other ownership interests) of any of its Subsidiaries. Neither GTFM nor any
GTFM Subsidiary has outstanding any bonds, debentures, notes or other indebtedness generally having
the right to vote (or convertible into, or exchangeable for, Securities having the right to vote)
on any matters on which holders of shares of capital stock of GTFM may consent or vote (“GTFM
Voting Debt”). There are no options, warrants, rights, convertible or exchangeable Securities,
“phantom” interests or other ownership interest appreciation rights, commitments, Contracts,
arrangements or undertakings of any kind to which GTFM or any of the GTFM Subsidiaries is a party
or by which any of them is bound (i) obligating GTFM or any of the GTFM Subsidiaries or any other
Person to issue, deliver or sell, or cause to be issued, delivered or sold, existing or additional
shares of capital stock of GTFM or capital stock (or other ownership interests) of any GTFM
Subsidiary, or any security convertible into or exercisable or exchangeable for any of the
foregoing or for GTFM Voting Debt, (ii) obligating GTFM or any GTFM Subsidiary or any other Person
to issue, grant, extend or enter into any such option, warrant, call, right, security commitment,
Contract, arrangement or undertaking, (iii) that give any Person the right to receive any economic
benefit or right similar to or derived from the economic benefits and rights accruing to holders of
the shares of capital stock of GTFM or capital stock (or other ownership interests) of any GTFM
Subsidiary, or (iv) that give rise to a right to receive any payment from GTFM or any GTFM
Subsidiary upon the
execution of this Agreement or the consummation of the Merger or any of the other transactions
contemplated hereby, except as set forth in Section 5.2 of the Seller Disclosure Schedule.
Notwithstanding the disclosures set forth in Section 5.2 of the Seller Disclosure Schedule or
otherwise, the shares of GTFM to be acquired by the KCS Purchasers and by KCS Sub pursuant to this
Agreement shall be acquired by the KCS Purchasers and KCS Sub free and clear of any and all
Encumbrances, except for any Encumbrances (y) created by the KCS Purchasers or their Affiliates or
(z) by operation of law which does not involve a breach by TMM or any Affiliate of any provision of
this Agreement.

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     Section 5.3 GTFM and GTFM Subsidiaries.

     (a) Section 5.3 of the Seller Disclosure Schedule lists each GTFM Subsidiary and its
jurisdiction of incorporation or organization and the outstanding shares of capital stock and other
ownership interests, if any, of the GTFM Subsidiaries, and the record owner thereof. All of the
outstanding shares of capital stock of, or other equity interests in, each of the GTFM Subsidiaries
have been validly issued and are fully paid and nonassessable and such shares or interests are
owned directly or indirectly by GTFM free and clear of all Encumbrances and free of any restriction
on the right to vote, sell or otherwise dispose of such capital stock or other ownership interests,
except as set forth in Section 5.3 of the Seller Disclosure Schedule. Except for the capital stock
or other ownership interests of the GTFM Subsidiaries as set forth in Section 5.3 of the Seller
Disclosure Schedule, GTFM does not beneficially own directly or indirectly any capital stock,
membership interest, partnership interest, joint venture interest or other equity interest in any
Person.

     (b) Neither GTFM nor any of the GTFM Subsidiaries engage in or conduct any business other than
as set forth in the GTFM Form 20-F, or as set forth in Section 5.3 of the Seller Disclosure
Schedule. Neither GTFM nor any of the GTFM Subsidiaries has taken any action or commenced or
threatened any legal proceeding for the administration, winding-up or provisional winding-up or
dissolution of GTFM or any of the GTFM Subsidiaries or seeking to enter into any arrangement or
composition for the benefit of creditors, or for the appointment of a receiver, administrator,
administrative receiver, trustee or similar officer of any of the properties, revenues,
undertakings or assets of GTFM or any of the GTFM Subsidiaries, nor have any orders been made for
any of the foregoing.

     Section 5.4 Authority; No Violation.

     (a) TMM, TMMH, MM and GTFM each has full corporate power and authority to execute and deliver
this Agreement and the Ancillary Agreements to which it is a party, to perform its obligations
hereunder and thereunder and to consummate the transactions contemplated hereby and thereby. The
execution and delivery of this Agreement and the Ancillary Agreements to which any of TMM, TMMH, MM
or GTFM is a party and the consummation of the transactions contemplated hereby and thereby have
been duly and validly authorized by all requisite action on their respective parts, and no other
corporate action on the
part of TMM, TMMH, MM or GTFM, as the case may be, is necessary to approve this Agreement or
the Ancillary Agreements to which it is a party or to authorize or consummate the transactions
contemplated hereby or thereby, other than approvals from the shareholders of TMM, TMMH and MM, to
be obtained as provided in Section 5.5. TMM has received the opinion of JP Morgan Securities, Inc.
to the effect that the consideration to be received in the Acquisition is fair from a financial
point of view to TMM. This Agreement and the Ancillary Agreements to which it is a party have been
duly and validly executed and delivered by TMM, TMMH, MM and GTFM (except for those Ancillary
Agreements that are not dated the date hereof, which Ancillary Agreements shall be duly and validly
executed and delivered prior to the

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Closing) and (assuming the due authorization, execution and
delivery of this Agreement and the Ancillary Agreements by the other Parties hereto and thereto)
constitute valid and binding obligations of TMM, TMMH, MM and GTFM (except for those Ancillary
Agreements that are not dated the date hereof or, by their terms are not effective at the date
hereof, which Ancillary Agreements shall constitute valid and binding obligations of TMM, TMMH, MM
and GTFM at the Closing or the effective date thereof, as the case may be), enforceable against
TMM, TMMH, MM and GTFM in accordance with their terms, except as (i) the enforceability thereof may
be subject to or limited by bankruptcy, insolvency, reorganization, moratorium or similar laws
relating to or affecting the rights of creditors generally and the availability of equitable relief
(whether in proceedings at law or in equity), and (ii) rights to indemnification may be limited by
the Securities Laws and the policies underlying such laws.

     (b) Neither the execution and delivery of this Agreement or the Ancillary Agreements to which
it is a party by TMM, TMMH, MM or GTFM nor the consummation by TMM, TMMH, MM or GTFM of any of the
transactions contemplated hereby or thereby to be performed by them, nor compliance by TMM, TMMH,
MM or GTFM with any of the terms or provisions hereof or thereof, will (i) violate any provision of
the Charter or Bylaws of TMM, TMMH or MM or the Charter or Bylaws or comparable organizational
documents of GTFM or any GTFM Subsidiary, or (ii) assuming that the consents and approvals referred
to in Section 5.5 are duly obtained, (x) violate, conflict with or require any notice, filing,
consent, waiver or approval under any Applicable Law to which TMM, TMMH, MM, GTFM or the GTFM
Subsidiaries or any of their respective properties, Contracts or assets are subject, or (y)
violate, conflict with, result in a breach of any provision of or the loss of any benefit under,
constitute a default (or an event which, with or without notice or lapse of time, or both, would
constitute a default) under, result in the termination of or a right of termination or cancellation
under, accelerate or result in a right of acceleration of the performance required by, result in
the creation of any liability under, result in the creation of any Encumbrance other than any
Permitted Encumbrance upon the properties, Contracts or assets of TMM, TMMH, MM, GTFM or the GTFM
Subsidiaries under, or require any notice, approval, waiver or consent under, any note, bond,
mortgage, indenture, deed of trust, license, lease, agreement or other instrument or obligation to
which TMM, TMMH, MM, GTFM or any of the GTFM Subsidiaries is a party, or by which TMM, TMMH, MM,
GTFM or any of the GTFM Subsidiaries or any of their properties or assets may be bound or affected,
except, in the case of this clause (ii), would not have or be reasonably expected to have,
individually or in the aggregate, a GTFM Material Adverse Effect or result in an Encumbrance on the
GTFM Shares.

     Section 5.5 Consents and Approvals.

     (a) The affirmative vote of the holders of a majority of the outstanding shares of Series A
Shares of TMM (the “TMM Stockholder Approval”), is the only vote of the holders of any Security of
TMM necessary to approve this Agreement and the other transactions contemplated by this Agreement
and the Ancillary Agreements. Holders of more than a majority of the outstanding shares of Series
A Shares of TMM have (i) entered into the Voting Trust with respect to 7,841,343 Series A Shares of
TMM pursuant to which they have transferred such shares to an irrevocable trust for the purpose of
assuring that such shares are voted in favor of the

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TMM Stockholder Approval, and (ii) entered into
the Amendment to the Trust Agreement, with respect to 574,150 Series A Shares of TMM pursuant to
which the settlors have irrevocably instructed, and the trustee under such agreement has
irrevocably agreed, to vote the shares in favor of the TMM Stockholder Approval. The affirmative
vote of the shares subject to the Voting Trust and the Amendment to the Trust Agreement, when it
occurs, will be sufficient to constitute TMM Stockholder Approval. The Voting Trust and Amendment
to the Trust Agreement are valid and binding obligations of the signatories thereto, enforceable in
accordance with their terms. The affirmative vote of the holders of a majority of the outstanding
shares of capital stock of TMMH (the “TMMH Stockholder Approval”) is the only vote of the holders
of any Security of TMMH necessary to approve this Agreement and the other transactions contemplated
by this Agreement and the Ancillary Agreements and the affirmative vote of the holders of a
majority of the outstanding shares of capital stock of MM (the “MM Stockholder Approval”) is the
only vote of the holders of any Security of MM necessary to approve this Agreement and the other
transactions contemplated by this Agreement and the Ancillary Agreements (collectively, the
“Subsidiary Approvals”). As a part of the TMM Stockholder Approval, TMM, as holder owning all (but
one) of the shares of TMMH entitled to vote, will be irrevocably instructed to irrevocably vote all
such shares in favor of the TMMH Stockholder Approval. As a part of the TMMH Stockholder Approval,
TMMH, as holder of more than 91% of the shares of MM entitled to vote, will be irrevocably
instructed to irrevocably vote such shares in favor of the MM Stockholder Approval.

     (b) Except (i) as set forth in Section 5.5(a), in Section 5.5 of the Seller Disclosure
Schedule or in the Ancillary Agreements, (ii) the prior approval of the Mexican Foreign Investments
Commission, (iii) clearance by the Mexican Antitrust Commission, (iv) notice to the Mexican
Ministry of Communications and Transportation, (v) compliance with and filings under the Securities
Laws as may be required in connection with this Agreement and the Ancillary Agreements and the
transactions contemplated hereby and thereby, (vi) any required filings with the NYSE, (vii) the
filing of the Certificate of Merger, and (viii) the expiration or earlier termination of the
waiting period under the HSR Act, no consents or approvals of, or filings, declarations or
registrations with any Governmental Authority, any third party or any other Person are necessary on
the part of the Sellers in connection with the execution and delivery by each Seller of this
Agreement or the Ancillary Agreements to which it is a party and the consummation by the Sellers of
the Acquisition and the other transactions contemplated by this Agreement and the Ancillary
Agreements other than such consents, approvals, filings, declarations or registrations which if not
obtained would not reasonably be expected to delay
materially the Closing or have a GTFM Material Adverse Effect. To the best of Sellers’
Knowledge, no control share, anti-takeover or similar statute under the Laws of the UMS is
applicable to the transactions contemplated hereby or by the Ancillary Agreements.

     Section 5.6 Financial Statements; Undisclosed Liabilities. Except as set forth in Section 5.6 or
Section 5.11 of the Seller Disclosure Schedule, the audited consolidated financial statements of
GTFM and its consolidated Subsidiaries and the audited consolidated financial statements of TFM and
its consolidated subsidiaries for the period ended December 31, 2003, previously provided to KCS
(the “GTFM Financial Statements”) present fairly, in all material

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respects, in conformity with IFRS
applied on a consistent basis (except as may be indicated in the notes thereto), the consolidated
financial position of GTFM and its consolidated Subsidiaries as of the dates thereof and their
consolidated results of operations and cash flows for the periods then ended. The reconciliation
(“Reconciliation”) to U.S. GAAP from IFRS of the GTFM Financial Statements prepared by
PriceWaterhouseCoopers, provided by GTFM to KCS, fairly presents in all material respects all
adjustments necessary to reflect the presentation of such financial statements on a U.S. GAAP
basis. Except as set forth in the GTFM Financial Statements, neither GTFM nor any of its
Subsidiaries has any liabilities or obligations of any nature (whether accrued, absolute,
contingent or otherwise) required by IFRS to be set forth on a consolidated balance sheet of GTFM
and the consolidated GTFM Subsidiaries or in the notes thereto or which, individually or in the
aggregate, could reasonably be expected to have a GTFM Material Adverse Effect.

     Section 5.7 Contracts.

     (a) Section 5.7 of the Seller Disclosure Schedule sets forth a complete and accurate list or
description, as of the date of this Agreement, of all Contracts: (i) pursuant to which GTFM or any
of the GTFM Subsidiaries is either obligated to pay or entitled to receive in excess of $10 million
in any year (that is not otherwise required to be disclosed pursuant to this Section 5.7), (ii)
that are employment, management, consulting or severance agreements with any officer or director of
GTFM or any of the GTFM Subsidiaries, (iii) that include any noncompetition or nonsolicitation
covenant or any exclusive dealing or similar arrangement that limits the ability of GTFM or any of
the GTFM Subsidiaries to compete (geographically or otherwise) in any line of business or which
would so limit the Surviving Company or any of its Subsidiaries after the Effective Time, (iv) that
are trackage rights agreements, interline or interchange agreements with other railroads, or (v)
that constitute nondisclosure agreements or confidentiality agreements which could reasonably be
expected to have a significant effect on the conduct of the GTFM Business or the business of the
Surviving Company ((i) through (v) collectively, the “Scheduled Contracts”).

     (b) As of the date of this Agreement, each of the Scheduled Contracts is a legal, valid and
binding obligation of GTFM or the GTFM Subsidiaries (assuming the due authorization, execution and
delivery by the other Parties thereto) and is in full force and effect and enforceable
in accordance with its terms, except as such enforceability may be limited by bankruptcy,
insolvency, reorganization, moratorium and similar Laws relating to or affecting creditors
generally and by the availability of equitable remedies (whether in proceedings at law or in
equity).

     (c) As of the date of this Agreement, neither GTFM nor any of the GTFM Subsidiaries has
received notice of cancellation of or default under or intent to cancel or call a default under any
of the Scheduled Contracts. Assuming receipt of the consents and approvals set forth in Section
5.5, to the best of the Sellers’ Knowledge, nothing has occurred which with or without

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notice or
lapse of time or both would constitute a material breach of or a material default under any of the
Scheduled Contracts.

     (d) On and after the Closing Date, GTFM, TFM and their respective Subsidiaries shall have no
liability or obligation under or with respect to any agreement or arrangement with José Joaquín de
Teresa y Polignac (“De Teresa”) or any of its affiliates (the “De Teresa Agreements”) other than
pursuant to the ongoing litigation matters identified in Section 5.7 of the Seller Disclosure
Schedule (the “Ongoing Litigation Matters”). Since May 17, 2004 through the date of this
Agreement, (i) no amount has been paid by or on behalf of GTFM or any GTFM Subsidiary to De Teresa
other than for Ongoing Litigation Matters, and (ii) the amounts paid or payable for the Ongoing
Litigation Matters have not exceeded the amount set forth in Section 5.7(d) of the Seller
Disclosure Schedule.

     Section 5.8 Intellectual Property Rights.

     (a) With respect to all Intellectual Property used in the conduct of the GTFM Business, GTFM
or a GTFM Subsidiary either has all right, title and interest in or valid and binding rights under
Contract to use such Intellectual Property, except where the failure to have such rights would not
reasonably be expected to have a GTFM Material Adverse Effect. Except as disclosed in Section 5.8
of the Seller Disclosure Schedule or as would not reasonably be expected to have a GTFM Material
Adverse Effect, (i) all registrations with and applications to Governmental Authorities in respect
of Intellectual Property owned by GTFM or any GTFM Subsidiary are valid and in full force and
effect, (ii) there are no material restrictions on the direct or indirect transfer of any Contract,
or any interest therein, held by GTFM or any GTFM Subsidiary in respect of such Intellectual
Property, (iii) to the Knowledge of the Sellers neither GTFM nor any GTFM Subsidiary is in default
(or with the giving of notice or lapse of time or both, would be in default) in any material
respect under any Contract to use such Intellectual Property, and (iv) to the Knowledge of the
Sellers, such Intellectual Property owned by GTFM or any GTFM Subsidiary is not being infringed by
any other Person. Neither GTFM nor any GTFM Subsidiary has received notice that GTFM or any GTFM
Subsidiary is infringing in any material respect any Intellectual Property of any other Person, to
the Knowledge of Sellers, no claim is pending or has been made to such effect that has not been
resolved and, to the Knowledge of the Sellers, neither GTFM nor any GTFM Subsidiary is infringing
any Intellectual Property of any other Person the
effect of which, individually or in the aggregate, could reasonably be expected to have a GTFM
Material Adverse Effect. GTFM owns and will own at the Closing, all right, title and interest in
and to that certain trademark of mixed type registered with the Mexican Institute of Industrial
Property under number 53951, class 37, in connection with the name “TFM” and its design.

     Section 5.9 Employee Benefit Matters.

     (a) Section 5.9 of the Seller Disclosure Schedule sets forth a true and complete list of each
material pension plan, deferred compensation plan, retirement income plan, stock option or stock
purchase plan, profit sharing plan, bonus plan or policy, employee group insurance plan,
hospitalization plan, disability plan or other employee benefit plan, program, policy or practice,

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formal or informal, funded or unfunded, to any current or former director, officer or employee (or
to any dependent or beneficiary thereof) of GTFM or any GTFM Subsidiary under which GTFM or any
GTFM Subsidiary has any present or future material obligation or liability, whether actual or
contingent. Each such plan, agreement, program, policy and arrangement shall be referred to as a
“Benefit Plan.” Each Benefit Plan is further designated in Section 5.9 of the Seller Disclosure
Schedule as either currently or formerly maintained, sponsored or contributed to by GTFM or any
GTFM Subsidiary (a “GTFM Benefit Plan”) or by any other entity (in which case such entity is
identified). Neither GTFM nor any GTFM Subsidiary, nor to the Knowledge of Sellers, any other
Person, has any express or implied commitment, whether legally enforceable or not, to modify,
change or terminate any GTFM Benefit Plan, other than with respect to a modification, change or
termination required by Applicable Law.

     (b) With respect to each Benefit Plan, GTFM has delivered or made available to KCS true,
current, correct and complete copies of (i) each Benefit Plan (or, if not written, a written
summary of its material terms), including all plan documents, adoption agreements, trust
agreements, insurance Contracts or other funding vehicles and all amendments thereto, (ii) any
summaries and summary plan descriptions, including any summary of material modifications,
distributed to Benefit Plan participants, (iii) the most recent actuarial report or other financial
statement relating to such Benefit Plan, as applicable, and (iv) all filings made with any
Governmental Authorities with respect to any Benefit Plan.

     (c) Each Benefit Plan has been administered in material compliance with its terms and all
Applicable Laws and material contributions required to be made under the terms of any of the
Benefit Plans as of the date of this Agreement have been timely made or, if not yet due, have been
properly reflected in the GTFM Financial Statements. With respect to the Benefit Plans, no event
has occurred and there exists no condition or set of circumstances in connection with which GTFM
could be subject to any material liability (other than for liabilities to pay benefits) under the
terms of, or with respect to, such Benefit Plans, or any Applicable Law.

     (d) Except as disclosed in Section 5.9 of the Seller Disclosure Schedule: (i) there has been
no prohibited transaction (within the meaning of Applicable Law) with respect to any Benefit Plan
that could result in material liability to GTFM or the Surviving Company, (ii)
subject to compliance with Applicable Law, each Benefit Plan can be amended, terminated or
otherwise discontinued after the Effective Time in accordance with its terms, without material
liability (other than liability for ordinary administrative expenses typically incurred in a
termination event), (iii) no suit, administrative proceeding, action or other litigation has been
brought or, to the Knowledge of Sellers, is threatened, against or with respect to any such Benefit
Plan, including any audit or inquiry by any Governmental Authority, (iv) all tax, annual reporting
and other governmental filings required have been timely filed with the appropriate Governmental
Authority and all notices and disclosures have been timely provided to participants, and (v) each
Benefit Plan meets the requirement for deductibility under the Law and regulations of the UMS.

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     (e) No Benefit Plan exists, and no other payment shall be made that, as a result of the
execution of this Agreement or the transactions contemplated by this Agreement (whether alone or in
connection with a subsequent event), could result in the payment to any employee of the GTFM Group
of any money or other property or could result in the increase, acceleration or provision of any
payments, other rights or benefits to any such employee.

     Section 5.10 Labor and Other Employment Matters.

     (a) Sellers have delivered to KCS a complete and accurate list (giving name and current
payroll compensation) of each current employee of each company in the GTFM Group as of the date of
this Agreement. Except as set forth in Section 5.10 of the Seller Disclosure Schedule, none of the
members of the GTFM Group has any responsibility or liability to any of its employees for any
delinquent payments of wages, salaries, commissions, bonuses or other direct compensation for any
services performed for it or amounts required to be reimbursed to such employee or paid to such
employee for mandatory profit sharing, housing, mandatory retirement benefits, vacation benefits or
social security benefits required under the Laws of the UMS in an amount that would have a GTFM
Material Adverse Effect.

     (b) Except as set forth in Section 5.10 of the Seller Disclosure Schedule or as would not
reasonably be expected to have a GTFM Material Adverse Effect, each of the members of the GTFM
Group (i) are in compliance in all material respects with all Applicable Law respecting labor,
employment, immigration, fair employment practices, terms and conditions of employment, workers’
compensation, occupational safety, plant closings, wages and hours and any other Law applicable to
any of their employees, and (ii) has withheld all amounts required by Applicable Law or by
agreement to be withheld from the wages, salaries, and other payments to employees, and (iii) is
not liable for any arrears of wages or any Taxes or any penalty for failure to comply with any of
the foregoing.

     (c) Except as set forth in Section 5.10 of the Seller Disclosure Schedule or, with respect to
notices received after the date hereof by TMM or any TMM Subsidiaries, disclosed in writing to KCS
prior to the Closing, no current officer of any member of the GTFM Group has given
written notice to TMM or any TMM Subsidiary of such person’s termination of employment with
the GTFM Group.

     (d) Except as described in Section 5.10 of the Seller Disclosure Schedule, the Mexican Railway
Workers Union (El Sindicato de Trabajadores Ferrocarrileros de la República Mexicana) is the only
trade union or labor union representing any employees of GTFM or any GTFM Subsidiary. Sellers have
provided to KCS a true and complete copy of the collective bargaining agreement and any amendments
thereof. Neither GTFM nor any of the GTFM Subsidiaries is a party, or is otherwise subject, to any
other collective bargaining agreement or other labor union contract applicable to its employees.
There are no material activities or proceedings by a labor union or representative thereof to
organize any employees of GTFM or any of the GTFM Subsidiaries. Except as set forth in Section
5.10 of the Seller Disclosure Schedule, there are no pending negotiations between GTFM or any of
the GTFM Subsidiaries

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and any labor union or representative thereof regarding any proposed material
changes to any existing collective bargaining agreement and no such collective bargaining agreement
is subject to expiration or renewal within one year after the date hereof or the extension or
renewal of such an agreement or the entering of any such agreement. Except as set forth in Section
5.10 of the Seller Disclosure Schedule, there are no pending, and none of GTFM or any of the GTFM
Subsidiaries has experienced since March 31, 2004 any, material labor disputes, lockouts, strikes,
slowdowns, work stoppages, or threats thereof nor, to the Knowledge of Sellers, has any event
occurred or does any circumstance exist that would provide a reasonable basis for any such dispute,
lockout, strike, slowdown, work stoppage or threat thereof. Except as set forth in Section 5.10 of
the Seller Disclosure Schedule, GTFM and the GTFM Subsidiaries are not in default and have not
breached in any material respect the terms of any applicable collective bargaining or other labor
union contract, and there are no material claims or grievances outstanding against GTFM, any of the
GTFM Subsidiaries, or any of their respective employees under any such agreement or contract.

     (e) Except as specified in Section 5.10 of the Seller Disclosure Schedule, (i) there are no
claims, disputes or actions pending, or to the Knowledge of Sellers threatened, between GTFM or any
of the GTFM Subsidiaries, on the one hand, and any of their employees, on the other hand, and (ii)
to the Knowledge of Sellers, there are no facts or circumstances involving any employee that would
form the basis of, or give rise to, any cause of action, including unlawful termination based on
discrimination of any kind, except in case of such clause (i) or (ii) as would not reasonably be
expected to have, individually or in the aggregate, a GTFM Material Adverse Effect.

     Section 5.11 Tax Matters.

     (a) Except as set forth in Section 5.11 of the Seller Disclosure Schedule or as would not have
a GTFM Material Adverse Effect, all Tax Returns and reports of GTFM and the GTFM Subsidiaries
required to be filed on or before the Closing Date have been duly and timely filed
(taking into account all proper extensions) with the appropriate Taxing Authorities and all
such Tax Returns were complete, correct and accurate. All Taxes shown on such Tax Returns as owed
by GTFM or the GTFM Subsidiaries have been paid.

     (b) Except as set forth in Section 5.11 of the Seller Disclosure Schedule, neither GTFM nor
any of the GTFM Subsidiaries has received any written notice of deficiency or assessment from any
Taxing Authority with respect to material liabilities for Taxes of GTFM or any of the GTFM
Subsidiaries which have not been paid or finally settled. No claim has ever been made in writing
by an authority in a jurisdiction where GTFM or any of the GTFM Subsidiaries do not file Tax
Returns that such entity is or may be subject to taxation by that jurisdiction. Except as set
forth in Section 5.11 of the Seller Disclosure Schedule, no audit of any Tax Return concerning GTFM
or any of the GTFM Subsidiaries is pending, being conducted, or to the Knowledge of Sellers,
threatened to be instituted by a Taxing Authority. Except as set forth in Section 5.11 of the
Seller Disclosure Schedule, neither GTFM nor any of the GTFM Subsidiaries has in effect a waiver of
any statute of limitation in respect of Taxes or agreed to any extension

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of time with respect to a
Tax assessment or deficiency that will be in effect as of the Closing Date.

     (c) Except as set forth in Section 5.11 of the Seller Disclosure Schedule, there are no liens
for Taxes on any assets of GTFM or any of the GTFM Subsidiaries other than liens for current Taxes
(i) not yet due and payable, or (ii) that would not have a GTFM Material Adverse Effect.

     (d) Except as set forth in Section 5.11 of the Seller Disclosure Schedule, neither GTFM nor
any of the GTFM Subsidiaries has any liability for the Taxes of any other Person as a transferee or
successor, by Contract, for withholding or otherwise.

     (e) Except as set forth in Section 5.11 of the Seller Disclosure Schedule, there are no Tax
sharing or Tax indemnity agreements or similar arrangements with respect to or involving GTFM or
any of the GTFM Subsidiaries, other than agreements among GTFM and the GTFM Subsidiaries in which
GTFM owns directly or indirectly all equity interest.

     (f) Except as set forth in Section 5.11 of the Seller Disclosure Schedule, each of GTFM and
the GTFM Subsidiaries has complied in all material respects with all applicable governmental rules
relating to the payment, collection and withholding of Taxes.

     (g) Except as set forth in Section 5.11 of the Seller Disclosure Schedule, there is no Tax
litigation pending or to the Knowledge of Sellers threatened against GTFM and/or the GTFM
Subsidiaries.

     (h) Except as set forth in Section 5.11 of the Seller Disclosure Schedule, neither GTFM nor
any of the GTFM Subsidiaries will suffer any adverse tax consequences under the Laws of the UMS
from ceasing, as a result of the Acquisition, to be members of the TMM consolidated group.

     (i) Except as set forth in Section 5.11 of the Seller Disclosure Schedule, during the period
from the date of the GTFM Financial Statements until the date of this Agreement, GTFM and each of
the GTFM Subsidiaries (i) have made no change in any accounting method used for Tax purposes or in
depreciation or amortization policies, and have made no election for Tax purposes which is not
consistent with the method, policies and elections made prior to the date of the GTFM Financial
Statements, and (ii) have not settled any pending Tax audits or settled any Tax liability.

     (j) The net operating loss carry forwards of GTFM and the GTFM Subsidiaries shown on the most
recent Tax Returns for GTFM and the GTFM Subsidiaries are not subject to reduction as a result of
consummation of the transactions contemplated by this Agreement and the Ancillary Agreements (other
than any reduction in connection with the Final Resolution of the VAT Claim and Put).

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     Section 5.12 Legal Proceedings. Except (i) as set forth in Section 5.12 of the Seller Disclosure
Schedule, and (ii) for actions brought or threatened to be brought by or on behalf of KCS and its
Affiliates or their respective officers, directors, employees or agents, including persons named by
them as directors or alternate directors of GTFM or any GTFM Subsidiary, there are no legal,
administrative, arbitral or other proceedings (including disciplinary proceedings), claims, suits,
actions or governmental or regulatory investigations of any nature whether in the UMS or elsewhere
(collectively, “Proceedings”) that are pending or, to the Knowledge of Sellers, threatened against
GTFM or any of the GTFM Subsidiaries or any of their respective directors or officers (in their
capacities as such) or the GTFM Assets or the GTFM Business, which if determined adversely would
have a GTFM Material Adverse Effect, or that challenge the validity or propriety of the
transactions contemplated by this Agreement or by any of the Ancillary Agreements. The Proceedings
set forth in Section 5.10 of the Seller Disclosure Schedule under the heading “List of Direct
Lawsuits Against GTFM By Former TFM Employees” are not reasonably expected to have a GTFM Material
Adverse Effect. There is no injunction, order, judgment or decree imposed upon GTFM or any of the
GTFM Subsidiaries, any material portion of the GTFM Assets or the GTFM Business. Section 5.12 of
the Seller Disclosure Schedule sets forth a complete and accurate list of all Proceedings which any
of Sellers, any of Sellers’ Subsidiaries, or to the Knowledge of Sellers, any of Sellers’, or their
Subsidiaries’, respective officers, directors, agents or representatives, including persons named
by TMM as directors or alternate directors of GTFM or any GTFM Subsidiary, have filed or caused to
be filed against KCS, any KCS Subsidiary or any of their respective officers, directors or
stockholders, in their capacity as such.

     Section 5.13 Permits and Compliance.

     (a) Except as set forth in Section 5.13 of the Seller Disclosure Schedule, GTFM and each of
the GTFM Subsidiaries hold all licenses, franchises, concessions, decrees, permits and
authorizations required under Applicable Law (collectively, “Permits”) to operate the GTFM Business
as currently conducted where the failure to hold such Permits would reasonably be
expected to have a GTFM Material Adverse Effect. Each of GTFM and the GTFM Subsidiaries (i)
holds, and at all times has held, and at Closing will hold, all Permits for the lawful ownership,
operation and use of the GTFM Assets and the conduct of the GTFM Business, (ii) has been and is in
compliance with each such Permit, and (iii) has not received notice asserting any violation of any
such Permit, in each case, where the failure to hold or comply or such violation would reasonably
be expected to have a GTFM Material Adverse Effect.

     (b) Except (i) as set forth in Section 5.13 of the Seller Disclosure Schedule, (ii) for normal
examinations conducted by any Governmental Authority in the regular course of the business of GTFM
and the GTFM Subsidiaries, or (iii) as would not reasonably be expected to have a GTFM Material
Adverse Effect, since December 31, 2003, no Governmental Authority has provided written notice to
GTFM or any of the GTFM Subsidiaries of any threatened proceeding or investigation into the
business or operations of GTFM or any of the GTFM Subsidiaries or any of their members, officers,
directors or employees in their capacity as such with GTFM or any of the GTFM Subsidiaries and, to
the Knowledge of the Sellers, no such

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proceedings or investigations are contemplated. Except as
set forth in Section 5.13 of the Seller Disclosure Schedule, there is no unresolved deficiency,
violation or exception claimed or asserted by any Governmental Authority with respect to any
examination of GTFM or any of the GTFM Subsidiaries.

     (c) Except as set forth in Section 5.13 of the Seller Disclosure Schedule, neither GTFM nor
any of the GTFM Subsidiaries is in violation of any Applicable Laws or orders of any Governmental
Authority except as would not reasonably be expected to have a GTFM Material Adverse Effect. No
event has occurred or exists that would (with or without notice or lapse of time) give rise to any
obligation on the part of GTFM or any of the GTFM Subsidiaries to undertake or to bear all or any
portion of the cost of any remedial action of any nature which would reasonably be expected to have
a GTFM Material Adverse Effect.

     (d) Without limiting the generality of the foregoing, to the Knowledge of Sellers no basis
exists for revocation, material modification or termination prior to the expiration, of the
Concession, except as set forth in Section 5.13 of the Seller Disclosure Schedule.

     Section 5.14 Environmental Matters. Except as set forth in Section 5.14 of the Seller Disclosure
Schedule, GTFM and each of the GTFM Subsidiaries (i) are in compliance with, and are not subject to
any liability under, in each case with respect to all, applicable Environmental Laws, (ii) hold all
Environmental Permits necessary to conduct their current operations, and (iii) are in compliance
with their respective Environmental Permits, except where the failure to hold or be in compliance
with such Environmental Permits would not be expected to have a GTFM Material Adverse Effect.
Except as set forth in Section 5.14 of the Seller Disclosure Schedule, or as would not reasonably
be expected to have a GTFM Material Adverse Effect, neither GTFM nor any of the GTFM Subsidiaries
has received any written notice, demand, letter, claim or request for information alleging that
GTFM or any of the GTFM Subsidiaries may be in violation of, or liable under, any Environmental
Law. Except as set forth in Section 5.14 of the Seller Disclosure Schedule,
neither GTFM nor any of the GTFM Subsidiaries (x) has entered into or agreed to any consent decree
or order or is subject to any judgment, decree or judicial order relating to compliance with
Environmental Laws, Environmental Permits or the investigation, sampling, monitoring, treatment,
remediation, removal or cleanup of Hazardous Materials and no investigation, litigation or other
proceeding is pending or, to the Knowledge of the Sellers, threatened, with respect thereto, or (y)
is an indemnitor or has assumed liability in connection with any pending demand, notice, claim, or
other allegation, or to the Knowledge of the Sellers, any claim threatened, by or against any
third-party relating to any liability under any Environmental Law or relating to any Hazardous
Materials. Except as set forth in Section 5.14 of the Seller Disclosure Schedule, none of the real
property owned or leased or operated by GTFM or any of the GTFM Subsidiaries is listed or, to the
Knowledge of the Sellers, proposed for listing on any list of sites maintained by any Governmental
Authority requiring investigation or cleanup.

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     Section 5.15 Properties. Section 5.15 of the Seller Disclosure Schedule sets forth a true and
complete list of all real property and interests in real property owned or leased by GTFM or any of
the GTFM Subsidiaries and a summary of the lease agreements with respect thereto (true and correct
copies of which leases have been provided to KCS) and a true and complete list of all personal
property, equipment and fixtures (other than items having a book value of less than $1 million
individually) owned by GTFM or any of the GTFM Subsidiaries, all of which personal property,
equipment and fixtures are in good condition and repair, normal wear and tear excepted. Each of
GTFM and the GTFM Subsidiaries has good and marketable title to, or valid and enforceable leasehold
or concession interests in, all of its properties and tangible assets necessary to conduct the GTFM
Business as currently conducted except where the failure to have such title or interest would not
reasonably be expected to have a GTFM Material Adverse Effect. All such property and assets which
constitute personal property, equipment, and fixtures, are in good condition and repair, normal
wear and tear excepted. Except as set forth in Section 5.15 of the Seller Disclosure Schedule, all
of such assets and properties, other than assets and properties in which GTFM or any of the GTFM
Subsidiaries has a leasehold interest, are free and clear of all Encumbrances other than Permitted
Encumbrances and Encumbrances which would not individually or in the aggregate reasonably be
expected to have a GTFM Material Adverse Effect. Each of GTFM and the GTFM Subsidiaries has
complied in all material respects with the terms of all leases and concessions (including the
Concession) to which it is a party and under which it is in occupancy, and all such leases and
concessions (including the Concession) are in full force and effect.

     Section 5.16 Insurance. Section 5.16 of the Seller Disclosure Schedule includes a list of all
policies of fire, liability, product liability, workers’ compensation, health and other forms of
insurance in effect as of the date of this Agreement with respect to the GTFM Business (the “GTFM
Insurance Policies”), including the named insured(s) and all beneficiaries thereunder, and true and
complete copies of the GTFM Insurance Policies have been delivered to KCS. Neither GTFM, nor any
of the
GTFM Subsidiaries has been refused any insurance with respect to any aspect of the operations of
its business, nor has its coverage been rescinded by any insurance carrier to which it has applied
for insurance or with which it has carried insurance. No notice of cancellation or termination has
been received with respect to any such policy. The activities and operations of GTFM and each of
the GTFM Subsidiaries have been conducted in a manner so as to conform in all material respects to
all material provisions of the GTFM Insurance Policies.

     Section 5.17 No Other Broker. Other than J.P. Morgan Chase and Elek, Moreno-Valle y Asociados,
S.A. de C.V. (“EMVA”), the fees and expenses of which have been or will be paid by TMM, no broker,
finder or similar intermediary is entitled to any broker’s, finder’s or similar fee or other
remuneration from or as a result of engagement by Sellers or any of their respective Affiliates in
connection with this Agreement, the Ancillary Agreements or the transactions contemplated hereby or
thereby.

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     Section 5.18 No GTFM Material Adverse Effect. Since December 31, 2003, (i) GTFM and the GTFM
Subsidiaries have conducted their respective businesses only in the ordinary course, consistent
with past practice, except as set forth in Section 5.18 of the Seller Disclosure Schedule, and (ii)
there has not been (x) any GTFM Material Adverse Effect or any event or development that could,
individually or in the aggregate, reasonably be expected to have a GTFM Material Adverse Effect, or
(y) to the Knowledge of Sellers, any event or development that would, individually or in the
aggregate, reasonably be expected to materially delay or prevent the consummation of, or the
performance by Sellers or any of their respective Affiliates, of any of their obligations under,
this Agreement or any of the Ancillary Agreements, to which any Seller is a party.

     Section 5.19 Sufficiency of and Title to Assets. GTFM and each of the GTFM Subsidiaries owns or
licenses, and upon the consummation of the Merger, the Surviving Company and its Subsidiaries will
own or license, all right, title and interest in and to all of the properties, assets, Contracts
and rights of any kind, whether tangible or intangible, real or personal (including the
Concession), necessary to enable GTFM, the GTFM Subsidiaries (prior to the Closing) and the
Surviving Company (after the Closing) to conduct the GTFM Business as presently conducted (the
“GTFM Assets”), free and clear of any Encumbrances other than Permitted Encumbrances, except as set
forth in Section 5.19 of the Seller Disclosure Schedule.

     Section 5.20 Information in Filed Documents. None of the information regarding any of TMM, TMMH,
MM, GTFM or any of the GTFM Subsidiaries supplied or to be supplied by Sellers in writing prior to
the Closing expressly for inclusion or incorporation by reference in any documents to be filed with
any Governmental Authority prior to the Closing in connection with the transactions contemplated
hereby,
including the proxy materials to be filed with the SEC by KCS in connection with the Merger, will,
at the respective times such information is supplied, contain any untrue statement of a material
fact or omit to state a material fact required to be stated therein or necessary in order to make
the statements therein, in light of the circumstances under which they were made, not misleading.

     Section 5.21 Affiliate Agreements. Section 5.21 of the Seller Disclosure Schedule sets forth a
complete and accurate list or description, as of the date of this Agreement, of all Contracts,
understandings and arrangements between GTFM or any GTFM Subsidiary, on the one hand, and TMM or
any TMM Affiliate (other than GTFM and its Subsidiaries), on the other hand (the “Affiliate
Agreements”) (other than this Agreement, the Ancillary Agreements and the other Agreements
contemplated herein and therein to be entered into in connection with the transactions contemplated
hereby and thereby) and identifying those: (i) Affiliate Agreements which shall continue in effect
in accordance with their terms after the Closing Date (the “Continuing Affiliate Agreements”), and
(ii) Affiliate Agreements which shall be terminated as of the Closing Date (in each case without
penalty or obligation to GTFM or any GTFM

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Subsidiary). With respect to the Affiliate Agreements,
other than the Continuing Affiliate Agreements, (w) KCS or a KCS Affiliate shall be entitled to
terminate any or all of those agreements after ninety (90) days following the Closing Date at its
sole discretion upon sixty (60) days notice and without liability or further obligation thereunder,
(x) TFM and its Affiliates after the Closing Date shall be liable under those agreements only for
the contracted basic charge for services and not for any other charges, expenses, costs, interest,
or penalties, and (y) neither TFM, nor any entity which is after the Closing Date an Affiliate of
TFM, shall be responsible for any charges, payments, expenses, or other costs incurred under those
agreements prior to May 17, 2004.

     Section 5.22 No Loss of Significant Customers. From January 1, 2004 through the Business Day
immediately preceding the date of this Agreement, neither GTFM nor any of the GTFM Subsidiaries has
had any customer which has canceled, terminated or failed to renew, or threatened in writing to do
so, any Contract with such entity which accounted for more than $10 million in revenues to such
entity in the year ended December 31, 2003.

     Section 5.23 Trading in and Ownership of KCS Common Stock. None of Sellers or any of their
respective Affiliates has, during the sixty (60) Business Days prior to the date hereof, either
directly or indirectly, bought or sold, or otherwise effected any trade in any shares of KCS Common
Stock, or any Security derivative of KCS Common Stock and none of Sellers or any of their
respective Affiliates, own as of the date of this Agreement any shares of KCS Common Stock or any
security derivative of KCS Common Stock.

     Section 5.24 Solvency. No insolvency or bankruptcy proceedings against TMM or any of its
Subsidiaries are pending as of the last Business Day preceding the date of this Agreement.

     Section 5.25 Termination of Option Agreement. The Amended and Restated Option Agreement between MM
and The Bank of New York, as Trustee, dated October 25, 2002, as amended (the “Option Agreement”),
entered into in connection with the Logistics Trust 2000-A (the “Trust”) formed pursuant to the
Second Amended and Restated Master Trust Agreement, dated as of December 10, 2002 (the “Master
Trust Agreement”), between TMM and The Bank of New York, as Trustee, has been terminated, and the
Master Trust Agreement and the Transaction Documents (as defined in the Master Trust Agreement)
have been amended, so that as of the date of this Agreement and the Closing Date (i) there is and
shall be no outstanding option, warrant, right, subscription, call, legally binding commitment or
other agreement or right of any kind entitling any Person (including The Bank of New York, as
Trustee of the Trust) to acquire, or any other Encumbrance arising under such agreements on, any
shares of capital stock of GTFM, (ii) the provision in Section 6.4 of the Option Agreement
requiring a written agreement to be bound by the terms of the Option Agreement and related
agreements does not and shall not apply to the purchase of the GTFM Shares under this Agreement,
and (iii) the purchase of the GTFM

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Shares hereunder will be effective without KCS or any Subsidiary
of KCS entering into any agreement to be bound by the terms of the Option Agreement and related
agreements. MM has caused each legend affixed to any stock certificates evidencing GTFM Shares
pursuant to the Option Agreement to be cancelled or removed, and MM has caused any annotation that
was required by the Option Agreement to be placed in the Stock Registry Book of GTFM to be
cancelled or removed. The Amended and Restated Put Option Agreement between MM and The Bank of New
York, as Trustee, dated October 25, 2002, as amended, entered into in connection with the Trust has
been terminated, and the Master Trust Agreement and the Transaction Documents (as defined in the
Master Trust Agreement) have been amended so that as of the date of this Agreement and the Closing
Date there is and shall be no obligation of KCS, the KCS Purchasers or any of their Affiliates to
purchase or otherwise acquire any certificate or other interest in or related to the Trust.

ARTICLE 6

REPRESENTATIONS AND WARRANTIES OF KCS

     Except as set forth in the disclosure schedule attached as Exhibit B to this Agreement (the
“KCS Disclosure Schedule”), KCS hereby represents and warrants to each of the Sellers as follows:

     Section 6.1 Organization and Related Matters.

     (a) KCS is a corporation, duly formed, validly existing and in good standing under the laws of
the State of Delaware, and each of its Subsidiaries is a corporation or other business entity duly
organized, validly existing and in good standing under the laws of its jurisdiction of
organization. KCS has the corporate power and authority and each of its Subsidiaries has the
corporate or other applicable power and authority necessary to carry on their respective businesses
in the manner they are now being conducted and to own, lease and operate all of their respective
properties and assets.

     (b) KCS and each of its respective Subsidiaries is duly licensed or qualified to do business
in each jurisdiction in which the nature of the business conducted by it or the character or
location of the properties and assets owned, leased or operated by it makes such qualification or
licensing necessary, except in jurisdictions where the failure of such license or qualification
would not individually or in the aggregate have a KCS Material Adverse Effect.

     Section 6.2 Authority; No Violation.

     (a) Each of KCS, KARA Sub, KCS Sub, KCS Investment and Caymex has full corporate power and
authority to execute and deliver this Agreement and the Ancillary Agreements to which it is a
party, to perform its obligations hereunder and thereunder and to consummate the transactions
contemplated hereby and thereby. The execution and delivery of this Agreement and the Ancillary
Agreements to which it is a party and the consummation of the transactions contemplated hereby and
thereby have been duly and validly authorized by all requisite

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corporate action on the part of KCS,
KARA Sub, KCS Sub, KCS Investment and Caymex and no other corporate action on any of their parts is
necessary to approve this Agreement or the Ancillary Agreements to which it is a party or authorize
or consummate the transactions contemplated hereby and thereby, except for obtaining the KCS
Stockholder Approval as described in Section 6.3. KCS or its Affiliates have taken all actions
required to be taken on their part to approve the execution, delivery and performance by GTFM of
this Agreement and any Ancillary Agreements to which GTFM is a Party. KCS has received the opinion
of Morgan Stanley & Co., Incorporated, to the effect that the Acquisition is fair from a financial
point of view to KCS. This Agreement and the Ancillary Agreements to which it is a party have been
duly and validly executed and delivered by KCS, KARA Sub, KCS Sub, KCS Investment and Caymex
(except for those Ancillary Agreements that are not dated the date hereof, which Ancillary
Agreements shall be duly and validly executed and delivered prior to the Closing) and (assuming the
due authorization, execution and delivery of this Agreement and the Ancillary Agreements by the
other Parties hereto and thereto) constitute valid and binding obligations of KCS, KARA Sub, KCS
Sub, KCS Investment and Caymex (except for those Ancillary Agreements that are not dated the date
hereof, which Ancillary Agreements shall constitute valid and binding obligations of KCS, KARA Sub,
KCS Sub, KCS Investment and Caymex at the Closing), enforceable against each of them in accordance
with their terms, except as (i) the enforceability thereof may be subject to or limited by
bankruptcy, insolvency, reorganization, moratorium or similar laws relating to or affecting the
rights of creditors generally and the
availability of equitable relief (whether in proceedings at law or in equity), and (ii) rights
to indemnification may be limited by the Securities Laws and the policies underlying such laws.

     (b) Neither the execution and delivery of this Agreement or the Ancillary Agreements to which
it is a party by KCS, KARA Sub, KCS Sub, KCS Investment and Caymex nor the consummation by them of
the transactions contemplated hereby or thereby to be performed by them, nor compliance by them
with any of the terms or provisions hereof or thereof, will (i) violate any provision of their
respective Certificates of Incorporation or Bylaws, (ii) assuming that the consents and approvals
referred to in Section 6.3 are duly obtained, (x) violate, conflict with or require any notice,
filing, consent or approval under any Applicable Law to which KCS or any of its Subsidiaries or any
of its properties, contracts or assets are subject, or (y) violate, conflict with, result in a
breach of any provision of or the loss of any benefit under, constitute a default (or an event
which, with or without notice or lapse of time, or both, would constitute a default) under, result
in the termination of or a right of termination or cancellation under, accelerate or result in a
right of acceleration of the performance required by, result in the creation of any liability
under, result in the creation of any Encumbrance upon the properties, contracts or assets of KCS,
KARA Sub, KCS Sub, KCS Investment or Caymex under, or require any notice, approval or consent
under, any note, bond, mortgage, indenture, deed of trust, license, lease, agreement or other
instrument or obligation to which KCS or any of its Subsidiaries is a party, or by which KCS or any
of its Subsidiaries, or any of its properties or assets, may be bound or affected except in the
case of this clause (ii) in each case as would not have or reasonably be expected to have a KCS
Material Adverse Effect.

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     (c) The shares of KCS Common Stock to be issued pursuant to this Agreement have been duly
authorized and, when issued as contemplated by this Agreement will be duly and validly issued,
fully paid and non-assessable and free of any pre-emptive rights (except those provided in the
Stockholders’ Agreement) and entitled to the benefits and rights set forth in the Certificate of
Incorporation of KCS, as in effect at the Effective Time.

     Section 6.3 Consents and Approvals.

     (a) The affirmative vote of the holders of a majority of the votes cast by the holders of all
outstanding shares of KCS Common Stock and KCS Preferred Stock, voting together as a single class,
to approve the issuance of the Common Stock in accordance with the Del. G.C.L. and the rules of the
NYSE (the “KCS Stockholder Approval”), is the only vote of the holders of any Security of KCS
necessary to approve this Agreement and the other transactions contemplated by this Agreement and
the Ancillary Agreements.

     (b) Except (i) as set forth in Section 6.3(a), (ii) the prior approval of the Mexican Foreign
Investments Commission, (iii) clearance by the Mexican Competition Commission, (iv) notice to the
Mexican Ministry of Communications and Transportation, (v) compliance with and filings under the
Securities Laws as may be required in connection with this Agreement and the Ancillary Agreements
and the transactions contemplated hereby and thereby, (vi) any required filings with the NYSE,
(vii) the filing of the Certificate of Merger, and (viii) the expiration or
earlier termination of the waiting period under the HSR Act, no consents or approvals of, or
filings, declarations or registrations with any Governmental Authority, any third party or any
other Person are necessary in connection with the execution and delivery by KCS of this Agreement
and the Ancillary Agreements to which it is a party and the consummation by KCS of the Acquisition
or the other transactions contemplated by this Agreement and the Ancillary Agreements.

     (c) The Board of Directors of KCS (the “KCS Board”) has approved this Agreement, the Ancillary
Agreements, and the Acquisition contemplated herein, including the issuance of more than 15% of the
outstanding voting stock of KCS pursuant to the Acquisition, to ensure that the restrictions on
business combinations set forth in Section 203 of the Del. G.C.L. will not apply to the Acquisition
or to the consummation of the other transactions referred to in this Agreement and the Ancillary
Agreements (including the exercise of pre-emptive rights under and in accordance with the terms of
the Stockholders’ Agreement). Prior to Closing, KCS shall take all corporate action necessary to
amend the KCS Stockholder Rights Plan so that the acquisition of the KCS Common Stock pursuant to
this Agreement and the Ancillary Agreements and the transactions contemplated by this Agreement and
the Ancillary Agreements will not constitute a “trigger event” under the KCS Stockholder Rights
Plan. To the best of KCS’s Knowledge, except for Section 203 of the Del. G.C.L., no control share,
anti-takeover or similar statute under the laws of any state in the United States is applicable to
the acquisition of KCS Common Stock contemplated hereby and by the Ancillary Agreements.

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     Section 6.4 Authorized Capitalization. The authorized capital stock of KCS consists of 400,000,000
shares of Common Stock, $.01 par value per share, 840,000 shares of Preferred Stock, $25 par value
per share (“KCS Preferred Stock”) and 2,000,000 shares of New Series Preferred Stock, $1.00 par
value per share (“New Series Preferred Stock”). As of March 31, 2004, there were (i) 62,641,294
shares of KCS Common Stock, 242,170 shares of KCS Preferred Stock and 400,000 shares of 4.25%
Redeemable Cumulative Convertible Perpetual Preferred Stock, Series C, issued and outstanding, (ii)
4,730,485 shares of KCS Common Stock reserved for issuance pursuant to options granted pursuant to
the KCS Stock Option Plan, and (iii) 13,389,120 shares of KCS Common Stock reserved for issuance
upon conversion of the 4.25% Redeemable Cumulative Convertible Perpetual Preferred Stock, Series C.
All of the shares of KCS Common Stock and KCS Preferred Stock outstanding at the date of this
Agreement are listed for trading on the NYSE. All of the shares of capital stock of KCS
outstanding are duly authorized, validly issued, fully paid, nonassessable and free of any
preemptive rights and are not subject to any voting trust agreement (or similar agreement) or other
Contract restricting or otherwise relating to the voting, dividend rights or disposition of such
shares to which KCS is a party, except for restricted share agreements between KCS and certain of
its officers and limited stock appreciation rights. Except as set forth in this Agreement, there
is no outstanding option, warrant, convertible or exchangeable security, right, subscription, call,
right of first refusal, legally binding commitment, preemptive right or other agreement or right of
any kind to purchase or otherwise acquire (including by exchange or conversion) from KCS or any KCS
Subsidiary any shares of capital
stock of KCS. There are no outstanding obligations of KCS or any of its Subsidiaries to redeem,
repurchase or otherwise acquire any of the shares of capital stock of KCS or any shares of capital
stock (or other ownership interests) of any of its Subsidiaries. Neither KCS nor any KCS
Subsidiary has outstanding any bonds, debentures, notes or other indebtedness generally having the
right to vote (or convertible into, or exchangeable for, Securities having the right to vote) on
any matters on which holders of shares of capital stock of KCS may consent or vote (“KCS Voting
Debt”). There are no options, warrants, rights, convertible or exchangeable Securities, “phantom”
interests or other ownership interest appreciation rights, commitments, contracts, arrangements or
undertakings of any kind to which KCS or any of its Subsidiaries is a party or by which any of them
is bound, except for this Agreement, (i) obligating KCS or any of its Subsidiaries or any other
Person to issue, deliver or sell, or cause to be issued, delivered or sold, existing or additional
shares of capital stock of KCS or capital stock (or other ownership interests) of its Subsidiaries,
or any security convertible into or exercisable or exchangeable for any of the foregoing or for KCS
Voting Debt, (ii) obligating KCS or any of its Subsidiaries or any other Person to issue, grant,
extend or enter into any such option, warrant, call, right, security commitment, contract,
arrangement or undertaking, (iii) that give any Person the right to receive any economic benefit or
right similar to or derived from the economic benefits and rights accruing to holders of the shares
of capital stock of KCS or capital stock (or other ownership interests) of its Subsidiaries, or
(iv) that give rise to a right to receive any payment upon the execution of this Agreement or the
consummation of the Merger or any of the other transactions contemplated hereby, except as set
forth in this Agreement.

     Section 6.5 SEC Filings. Since December 31, 2003, KCS has filed with the SEC all documents
required to be filed by it under the Exchange Act and the Securities Act and as of

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their requisite
dates (or the dates of any amendments thereto) such documents (the “KCS SEC Documents”) did not
contain any untrue statement of a material fact or omit to state a material fact required to be
stated therein or necessary in order to make the statements therein not misleading and complied in
all material respects with the applicable requirements of the Exchange Act and the Securities Act
and the applicable rules of the SEC thereunder.

     Section 6.6 Financial Statements; Undisclosed Liabilities.

     (a) Subject to the limitation in Section 6.6(b):

          (i) the audited consolidated financial statements and unaudited interim
financial statements of KCS and its consolidated Subsidiaries included in the KCS
SEC Documents (the “KCS Financial Statements”) present fairly, in all material
respects, in conformity with GAAP applied on a consistent basis (except as may be
indicated in the notes thereto), the consolidated financial position of KCS and its
consolidated Subsidiaries as of the dates thereof and their consolidated results
of operations and cash flows for the periods then ended (subject, in the case
of the unaudited interim financial statements, to normal year-end adjustments), and

          (ii) except as set forth in the KCS Financial Statements or the KCS SEC
Documents filed prior to the date of this Agreement, neither KCS nor any of its
Subsidiaries has any liabilities or obligations of any nature (whether accrued,
absolute, contingent or otherwise) required by GAAP to be set forth on a
consolidated balance sheet of KCS and the consolidated KCS Subsidiaries or in the
notes thereto or which, individually or in the aggregate, could reasonably be
expected to have a KCS Material Adverse Effect.

     (b) Notwithstanding the foregoing, no representation or warranty is made with respect to any
information regarding GTFM or any GTFM Subsidiary which is based upon and in conformity with
information provided in writing by GTFM and included in, or relied upon with respect to information
included in, the KCS Financial Statements or the KCS SEC Documents.

     Section 6.7 No Other Broker. Other than Morgan Stanley & Co., Incorporated, whose fees and
expenses will be paid by KCS, no broker, finder or similar intermediary is entitled to any
broker’s, finder’s or similar fee or other commission from or as a result of engagement by KCS or
any of its Subsidiaries in connection with this Agreement, the Ancillary Agreements or the
transactions contemplated hereby or thereby.

     Section 6.8 Information in Filed Documents. None of the information regarding KCS or any of its
Subsidiaries supplied or to be supplied by KCS for inclusion in any documents to be filed with any
Governmental Authority prior to Closing in connection with the transactions contemplated hereby
will, at the respective times such information is supplied by KCS, contain any untrue statement of
a material fact or omit to state a material fact required to be stated

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therein or necessary in
order to make the statements therein, in light of the circumstances under which they were made, not
misleading; provided that no representation is made with respect to any information regarding GTFM
or any GTFM Subsidiary which is based upon and in conformity with information provided in writing
by GTFM and included in, or relied upon with respect to information included in, documents referred
to in this Section. Except as set forth in the KCS SEC Documents filed prior to the date of this
Agreement, neither KCS nor any of its Subsidiaries has entered into any agreement or transaction
with any officer, director or other employee of KCS or any Subsidiary of KCS or any immediate
family member of any such person which would be required to be reported or disclosed in the KCS SEC
Documents.

     Section 6.9 No KCS Material Adverse Effect; Other Actions.

     (a) Since March 31, 2004, (i) KCS and its Subsidiaries have conducted their respective
businesses only in the ordinary course, consistent with past practice, (ii) there has not been any
KCS Material Adverse Effect or any event or development that could, individually or in the
aggregate, reasonably be expected to have a KCS Material Adverse Effect, and (iii) to the Knowledge
of KCS, there has not occurred any event or development that would, individually or in the
aggregate, reasonably be expected to prevent the consummation of the Acquisition or the performance
by KCS of its obligations under this Agreement or any of the Ancillary Agreements to which it is a
party.

     (b) Except as disclosed in the KCS SEC Documents, there are no ongoing discussions regarding,
and neither KCS nor any Subsidiary of KCS has entered into any agreement or understanding
regarding:

          (i) a transaction which, if completed, would result in a Change of Control of
KCS or a KCS Acquisition Proposal;

          (ii) the sale, lease or other disposition of all or substantially all of the
consolidated assets of KCS and its Subsidiaries or the creation of any material
joint ventures; or

          (iii) the issuance of a material amount of equity securities of KCS (except as
contemplated in this Agreement).

     Section 6.10 KCS Sub. The authorized capital stock of KCS Sub consists of 1,000 shares of KCS Sub
Common Stock. There are 900 shares of KCS Sub Common Stock issued and outstanding, all of which
are owned by KCS, free and clear of all Encumbrances. All of the shares of KCS Sub Common Stock
outstanding are duly authorized, validly issued, fully paid, nonassessable and free of any
preemptive rights and are not subject to any voting trust agreement (or similar agreement) or other
contract restricting or otherwise relating to the voting, dividend rights of disposition of such
shares. KCS Sub is not a party to any contract other than this Agreement. KCS Sub has not
conducted any business other than in connection with the

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transactions contemplated by this
Agreement and the Ancillary Agreements and has incurred no material indebtedness and has no
material assets except as described in this Agreement.

     Section 6.11 Legal Proceedings.

     (a) There are no Proceedings that are pending or, to the Knowledge of KCS, threatened against
KCS or any of its Subsidiaries or any of their respective directors or officers (in their capacity
as such) or the KCS Assets or the KCS Business (other than the Proceedings referred to in Section
7.15) which (i) if adversely determined, would have a KCS Material Adverse Effect,
or (ii) challenge the validity or propriety of the transactions contemplated by this Agreement
or by any of the Ancillary Agreements.

     (b) Section 6.11 of the KCS Disclosure Schedule sets forth a complete and accurate list of all
litigation or arbitration actions, claims or proceedings, which KCS, any of its Subsidiaries, or to
the Knowledge of KCS, any of KCS’s or its Subsidiaries’ respective officers, directors, agents or
representatives, including persons named by KCS as directors or alternate directors of GTFM or any
GTFM Subsidiary, have filed or caused to be filed against any of the Sellers, any of the Sellers’
Subsidiaries, or any of their respective officers, directors or shareholders, in their capacity as
such.

     Section 6.12 KCS Capital Resources. The information set forth in the KCS Annual Report on Form
10-K for the year ended December 31, 2003 filed with the SEC accurately sets forth anticipated
material capital expenditures required to maintain in good repair and working order the KCS Assets
and to provide for material additions to KCS property, plant and equipment necessary to conduct the
business of KCS as described in such SEC Report. KCS has access to capital resources sufficient to
fund such capital expenditures in the amount and at the time required.

     Section 6.13 Employee Benefit Matters. Each employee benefit plan, within the meaning of Section
3(3) of the Employee Retirement Income Security Act of 1974, as amended, (“ERISA”) that is
maintained, administered or contributed to by KCS or any of its Subsidiaries for employees or
former employees of KCS and its Subsidiaries has been maintained in compliance with its terms and
the requirements of any applicable statutes, orders, rules and regulations, including, but not
limited to, ERISA and the Code. No prohibited transaction, within the meaning of Section 406 of
ERISA or Section 4975 of the Code, has occurred with respect to any such plan, excluding
transactions effected pursuant to a statutory or administrative exemption. For each such plan
which is subject to the funding rules of Section 412 of the Code or Section 302 of ERISA, no
“accumulated funding deficiency,” as defined in Section 412 of the Code, has been incurred, whether
or not waived, and the fair market value of the assets of each such plan (excluding, for these
purposes, accrued but unpaid contributions) exceeds the present value of all benefits accrued under
such plan as determined using reasonable actuarial assumptions.

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     Section 6.14 Labor and Other Employment Matters. There are no existing or, to the Knowledge of KCS
and its Subsidiaries, threatened, labor disputes with employees of KCS and its Subsidiaries which
would be reasonably expected to have a KCS Material Adverse Effect.

     Section 6.15 Tax. KCS and its Subsidiaries have filed all federal, state, local and foreign tax returns which
have been required to be filed and have paid all Taxes shown thereon and all assessments received
by them or any of them to the extent that such Taxes have become due and are not being contested in
good faith, except as would not, individually or in the aggregate, have a KCS Material Adverse
Effect. Except as disclosed in Section 6.15 of the KCS Disclosure Schedule, there is no Tax
deficiency which has been or might reasonably be expected to be asserted or threatened against KCS
or any of its Subsidiaries, except as would not, individually or in the aggregate, have a KCS
Material Adverse Effect.

     Section 6.16 Permits and Compliance.

     (a) Except as would not, individually or in the aggregate, have a KCS Material Adverse Effect,
(i) each of KCS and its Subsidiaries owns, possesses or has obtained all licenses, permits,
certificates, consents, orders, approvals and other authorizations from, and has made all
declarations and filings with, all federal, state, local and other Governmental Authorities, all
self-regulatory organizations and all courts and other tribunals necessary to own or lease, as the
case may be, and to operate its properties and to carry on its business as conducted as of the date
hereof, and (ii) neither KCS nor any of its Subsidiaries has received notice of any proceeding
relating to revocation or modification of any such license, permit, certificate, consent, order,
approval or other authorization.

     (b) Except for normal examinations conducted by any Governmental Authority in the regular
course of the business of KCS and its Subsidiaries or as would not reasonably be expected to have a
KCS Material Adverse Effect, since March 31, 2004, no Governmental Authority has provided written
notice to KCS or any of its Subsidiaries of any threatened proceeding or investigation into the
business or operations of KCS or any of its Subsidiaries or any of their members, officers,
directors or employees in their capacity as such with KCS or any of its Subsidiaries.

     (c) Neither KCS nor any of its Subsidiaries is in violation of any Applicable Laws or orders
of any Governmental Authority, except as would not reasonably be expected to have a KCS Material
Adverse Effect. No event has occurred or exists that would (with or without notice or lapse of
time) give rise to any obligation on the part of KCS or any of its Subsidiaries to undertake or to
bear all or any portion of the cost of any remedial action of any nature which would reasonably be
expected to have a KCS Material Adverse Effect.

     Section 6.17 Environmental Matters. KCS and each of its Subsidiaries (i) are in compliance with,
and are not subject to any liability under, in each case, all applicable

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Environmental Laws, (ii)
hold all Environmental Permits necessary to conduct their current operations, and (iii) are in
compliance with their respective Environmental Permits, except where the failure to hold or be in
compliance with such Environmental Permits would not reasonably be expected to have a KCS Material
Adverse Effect. Neither KCS nor any of its Subsidiaries has received any written notice, demand,
letter,
claim or request for information alleging that KCS or any of its Subsidiaries may be in violation
of, or liable under, any Environmental Law, except where the preceding would not reasonably be
expected to have a KCS Material Adverse Effect. Neither KCS nor any of its Subsidiaries (x) has
entered into or agreed to any consent decree or order or is subject to any judgment, decree or
judicial order relating to compliance with Environmental Laws, Environmental Permits or the
investigation, sampling, monitoring, treatment, remediation, removal or cleanup of Hazardous
Materials and no investigation, litigation or other proceeding is pending or, to the Knowledge of
KCS and its Subsidiaries, threatened with respect thereto, except as would not reasonably be
expected to have a KCS Material Adverse Effect, or (y) is an indemnitor or has assumed liability in
connection with any pending demand, notice, claim, or other allegation, or to the Knowledge of KCS
and its Subsidiaries, any claim threatened by or against any third-party relating to any liability
under any Environmental Law or relating to any Hazardous Materials, except as would not reasonably
be expected to have a KCS Material Adverse Effect. None of the real property owned or leased or
operated by KCS or any of its Subsidiaries is listed or, to the Knowledge of KCS and its
Subsidiaries, proposed for listing on any list of sites maintained by any Governmental Authority
requiring investigation or cleanup, except as would not reasonably be expected to have a KCS
Material Adverse Effect.

     Section 6.18 Properties. Each of KCS and its Subsidiaries has good and marketable title to, or
valid and enforceable leasehold, easement or concession interests in, all of its properties and
tangible assets necessary to conduct the KCS Business as it is currently conducted, except where
the failure to have such title or interest would not reasonably be expected to have a KCS Material
Adverse Effect. All such property and assets which constitute personal property, equipment, and
fixtures, are in good condition and repair, normal wear and tear excepted. Each of KCS and its
Subsidiaries has complied in all material respects with the terms of all leases and concessions to
which it is a party and under which it is in occupancy, and all such leases and concessions are in
full force and effect, except in each case as would not reasonably be expected to have a KCS
Material Adverse Effect.

ARTICLE 7

COVENANTS AND ADDITIONAL AGREEMENTS

     Section 7.1 Interim Governance Arrangements; Conduct of Business by the GTFM Group.

     (a) TMM and KCS have caused the By-laws of GTFM and TFM to be amended, effective upon
execution of this Agreement, (i) to require that the number of Directors of GTFM

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and TFM shall not
exceed, respectively, 7 and 8 and that all actions taken by the Board of
Directors of GTFM shall require the approval of at least 5 members of such Board and all
actions taken by the Board of Directors of TFM shall require the approval of at least 5 members of
such Board (6, if the Mexican government elects a director), and that the tie-breaking vote of the
Chairman of GTFM and of TFM has been eliminated, and (ii) to require that 5 members of the Board of
Directors of GTFM and of TFM shall be required for a quorum for any meeting of such Board of
Directors, and (iii) as otherwise set forth in Exhibit J hereto (as so amended, the “Amended
By-laws”). TMM and KCS have taken all action required by the Amended By-laws and the Laws of the
UMS to appoint (A) Messrs. José Vicente Corta Fernández and Iker Ignacio Arriola Peñalosa,
respectively, as Secretary and Alternate Secretary (Prosecretario) of the Board of Directors of
GTFM and of the Board of Directors of TFM (replacing Romualdo Segovia and José Manuel Muñoz
Arteaga), and (B) Messrs. José Manuel Rincón Gallardo Purón and Javier García Sabaté, as Examiners
(Comisarios propietarios), and Mario Fernández Dávalos and Carlos Méndez Rodríguez, as Alternate
Examiners (Comisarios suplentes), of GTFM and TFM.

     (b) During the period from the date of this Agreement and continuing through the Closing Date,
except as expressly permitted or required by this Agreement (i) no Party shall cause, or permit any
action to be taken to cause, the Amended By-laws to be amended, revoked or repealed without the
consent of TMM and KCS, (ii) no Party shall permit TFM to establish, and will take, or cause to be
taken, all action on their part necessary (including voting or causing to be voted all the shares
of capital stock of GTFM and TFM) to prevent TFM from establishing, any internal committees or
decision making rules which have not been approved in writing by KCS and TMM, (iii) Sellers shall
take, or cause to be taken, all action on their part necessary to cause José Vicente Corta
Fernández and Iker Ignacio Arriola Peñalosa to remain, respectively, as Secretary and Alternate
Secretary (Prosecretario) of the Board of Directors of GTFM and TFM, and (iv) Sellers and KCS shall
take, or cause to be taken, all action on their part necessary to cause José Manuel Rincón Gallardo
Purón and Javier García Sabaté to remain as Examiners (Comisarios propietarios), and Mario
Fernández Dávalos and Carlos Méndez Rodríguez to remain as Alternate Examiners (Comisarios
suplentes), of GTFM and TFM.

     (c) After the date of this Agreement, KCS shall create a transition management team (the
“Transition Management Team”) to facilitate the transition to KCS of ownership of the GTFM Group at
the Closing. KCS shall have the right to designate up to six (6) persons who shall serve until the
Closing or earlier termination of this Agreement (the “Transition Managers”) and shall pay the
salaries of, and direct expenses incurred by, the Transition Managers. The management of GTFM and
of TFM shall cooperate fully with the Transition Managers with the goal of ensuring a smooth
transition at the Closing Date. To facilitate the transition, the Transition Managers shall have
access as they deem reasonably necessary to all books, records, and meetings of the officers,
directors or other employees, agents or representatives of TFM and GTFM, and each of TFM and GTFM
shall cause each of their respective officers, directors, and other employees, agents and
representatives to provide such access to the Transition Managers. Notwithstanding the foregoing,
the Transition Managers shall function only as observers with respect to the foregoing, and shall
have no authority to control or direct the actions of TFM or

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GTFM or any of their respective
directors, officers, employees, agents, or representatives and shall not materially interfere with
the normal operations of TFM or GTFM.

     (d) During the period from the date of this Agreement and continuing through the Closing Date,
except as expressly permitted or required by this Agreement, the Sellers and KCS shall use
commercially reasonable efforts to cause GTFM and each of its Subsidiaries to (x) carry on its
business in the ordinary course consistent with past practice, subject to the restrictions imposed
by court order identified in Section 5.18 of the Seller Disclosure Schedule and (y) use
commercially reasonable efforts to preserve their present business organizations and relationships
(including keeping available the present services of their employees and preserving their rights,
franchises, goodwill and relations with their customers and others with whom they conduct
business).

     (e) During the period from the date of this Agreement and continuing through the Closing Date,
neither TMM nor KCS shall cause GTFM or any GTFM Subsidiaries to take any of the following actions
without the express written consent of the other Party:

          (i) amend or agree to amend their charters or bylaws (or comparable organizational documents)
except as provided in Section 7.1(a) and (b), or merge with or into or consolidate with, or agree
to merge with or into or consolidate with, any other Person, subdivide or in any way reclassify any
of their membership interests, shares or any other ownership interests, or change or agree to
change in any manner the rights of their membership interests, shares or any other ownership
interests or liquidate or dissolve;

          (ii) (x) issue, sell, redeem or acquire any share or any other ownership interest or any debt
security in GTFM or any of the GTFM Subsidiaries, (y) issue, sell or grant any option, warrant,
convertible or exchangeable Security, right, “phantom” or other ownership interest, subscription,
call, unsatisfied preemptive right or other agreement or right of any kind to purchase or otherwise
acquire (including by exchange or conversion) any shares or any other ownership interests in GTFM
or any of the GTFM Subsidiaries, or (z) enter into any Contracts, agreements or arrangements to
issue, redeem, acquire or sell any shares or any other ownership interests in GTFM or any of the
GTFM Subsidiaries;

          (iii) refinance existing indebtedness on materially different terms or incur any additional
indebtedness for borrowed money in excess of $10 million in the aggregate (outstanding at any one
time), or guarantee any liability, obligation or indebtedness (whether or not currently due or
payable) of any other Person or incur any GTFM Voting Debt;

          (iv) except as required by Law or IFRS, make any change in their accounting methods or
practices for Tax or accounting purposes or make any change in depreciation or amortization
policies or rates adopted by them for Tax or accounting purposes or make any material, or change
any existing, Tax election, settle any pending audits or make voluntary disclosure agreements or
settle or compromise any Tax liability, except in the case of any such liability to the extent
reserved for on the GTFM Financial Statements or except to the extent such change would not have a
GTFM Material Adverse Effect;

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          (v) make any loan or advance or capital contribution to any of their Affiliates who are not
members of the GTFM Group, or any of their officers, directors, employees,
consultants, agents or other representatives (other than reasonable and customary travel
advances made in the ordinary course of business consistent with past practice);

          (vi) sell, transfer, lease, license, offer to sell, abandon or make any other disposition of
any of their assets or rights or grant or suffer, or agree to grant or suffer, any Encumbrance
other than Permitted Encumbrances on any of their assets or rights, other than in the ordinary
course of business consistent with past practice and not exceeding $1 million in the aggregate;

          (vii) except as expressly permitted pursuant to subsection (xv) below, settle any claim,
action or proceeding involving any liability for money damages or any restrictions upon any of
their operations, any of the GTFM Assets or the GTFM Business, except to the extent such settlement
would not have a GTFM Material Adverse Effect;

          (viii) create, renew, amend, terminate or cancel, any Contract other than in the ordinary
course of business consistent with past practice and providing for consideration payable by or to
GTFM or any GTFM Subsidiaries equal to or less than $1 million individually;

          (ix) enter into, amend, or agree to enter into or amend any Contract, agreement or arrangement
or any financial transaction with any of their officers, directors, consultants, agents
representatives, (in the case of agents and representatives, other than in the ordinary course of
business consistent with past practice), or Affiliates who are not members of the GTFM Group;
provided, however, that this clause (ix) shall not prohibit the performance of Contracts executed
prior to the date of this Agreement, the terms of which have been disclosed to KCS in the Seller
Disclosure Schedule;

          (x) except as set forth in Section 2.1(a), declare or make any dividends or declare or make
any other distributions of any kind payable to MM or any Affiliate of MM (in any such case other
than any other member of the GTFM Group) or to KCS or any Affiliate of KCS;

          (xi) acquire or agree to acquire in any manner any equity interests in, or any business of,
any Person or other business organization or division thereof, including by way of merger,
consolidation, or purchase of an equity interest or assets;

          (xii) enter into, amend, modify or renew any Benefit Plan or other written employment,
consulting, severance or similar employment agreements or arrangements, or grant any salary or wage
increase or increase in severance or termination pay or increase any employee benefit or hire any
new employee for a management position, except as may be required by Applicable Law, or in the
ordinary course of business consistent with past practice.

          (xiii) take any action to accelerate any material rights or benefits, or make any material
determinations not in the ordinary course of business consistent with past practice,

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          under any
collective bargaining agreement, Benefit Plan or employment, indemnification, severance or
termination agreement;

          (xiv) make or incur any capital expenditures in excess of those set forth in the GTFM 2004
Capital Budget, a copy of which has been provided to KCS, or cease to make capital expenditures in
the ordinary course of business consistent with past practice;

          (xv) cancel any indebtedness or waive any claims or rights in amounts, in each case, in excess
of $500,000 ($10,000 in the case of claims or rights against any Affiliate) in the aggregate;

          (xvi) accrue or pay any bonuses to any employee of the GTFM Group other than in the ordinary
course of business consistent with past practices, except as set forth in Section 7.1 of the Seller
Disclosure Schedule; and

          (xvii) authorize or agree (by Contract or otherwise) to do any of the foregoing.

     (f) During the period from the date of this Agreement and continuing through the Closing Date,
neither GTFM nor any GTFM Subsidiary shall pay or incur any fees, expenses or other costs to De
Teresa other than amounts with respect to the Ongoing Litigation Matters, which amounts shall not
aggregate more than $50,000 per month (on average, computed as of the Closing Date for the months
or portions thereof occurring during such period) without the prior written consent of KCS.

     Section 7.2 Conduct of Business by KCS and its Subsidiaries.

     (a) During the period from the date of this Agreement and continuing through the Closing Date,
except as expressly permitted or required by this Agreement or with the prior written consent of
TMM, KCS and its Subsidiaries shall take no action that would reasonably be expected to prevent
completion of, or materially delay, the Acquisition, or change materially the terms of the
Acquisition to the detriment of Sellers, and take none of the following actions if it would
materially change the economic benefits of the Acquisition to the detriment of the Sellers:

          (i) amend their charters or bylaws (or comparable organizational documents), or merge
or consolidate with, any other Person, subdivide or reclassify their common stock or other
ownership interests, or change the rights of their common stock or other ownership interests
or liquidate or dissolve;

          (ii) issue, sell or acquire any common stock or other ownership interest of any of the
KCS Subsidiaries;

          (iii) make any loan or advance or capital contribution to any of their Affiliates
(other than any KCS Subsidiary), or any of their officers, directors, employees,
consultants, agents or other representatives (other than in the ordinary course of business
consistent with past practice);

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          (iv) declare or make any dividends or declare or make any other distributions of any
kind on or payable to the holders of its capital stock (other than regularly scheduled
dividends payable on KCS Preferred Stock or New Series Preferred Stock);

          (v) acquire any equity interests in, or assets of any business of, any Person; or

          (vi) authorize or agree to do any of the foregoing.

     Section 7.3 Confidentiality.(a) The Parties agree, and KCS agrees to cause the Transition
Managers, to continue to be bound by and comply with the provisions set forth in the
Confidentiality Agreements, and all amendments thereto, the provisions of which are hereby
incorporated herein by reference, to the extent such provisions are not in conflict with the terms
of this Agreement.

     Section 7.4 Regulatory Matters; Governing Documents; Third-Party Consents.

     (a) The Parties shall cooperate with each other and use their commercially reasonable efforts
promptly to prepare and file all necessary documentation, to effect all applications, notices,
petitions and filings, and to obtain as promptly as practicable all permits, consents, approvals,
waivers and authorizations of all Governmental Authorities, third parties and other Persons which
are necessary or advisable to consummate the transactions contemplated by this Agreement and the
Ancillary Agreements, and requests for required consents under any contracts, including those
referred to in Sections 5.5 and 6.3. KCS and Sellers agree to take all reasonable steps necessary
to satisfy any conditions or requirements imposed by any Governmental Authority in connection with
the consummation of the transactions contemplated by this Agreement, other than those conditions or
requirements, in the aggregate, the satisfaction of which are reasonably likely to result in either
a GTFM Material Adverse Effect, a KCS Material Adverse Effect or a Seller Material Adverse Effect.
The Parties agree that, subject to the exclusive authority granted to KCS in Section 7.4(e), they
will consult with each other with respect to the obtaining of all permits, consents, approvals and
authorizations of all Governmental Authorities, third parties and other Persons necessary or
advisable to consummate the Merger and the other transactions contemplated by this Agreement and
the Ancillary Agreements and each Party will keep the other Parties apprised of the status of
matters relating to completion of the transactions contemplated herein and therein.

     (b) The Parties shall promptly advise each other Party hereto upon receiving any communication
from any Governmental Authority whose consent or approval is required for consummation of the
transactions contemplated by this Agreement or the Ancillary Agreements.

     (c) Each Party will (i) within five (5) business days of the date of this Agreement take all
actions necessary to make the filings required of such Party or its Affiliates under the HSR Act
(which filings shall include a request for the early termination of the waiting period under the
HSR Act), (ii) comply at the earliest practicable date with any request for additional information

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received by such Party or its Affiliates from the Federal Trade Commission or the Antitrust
Division of the Department of Justice pursuant to the HSR Act, and (iii) cooperate with each
other Party in connection with such other Party’s filing under the HSR Act and in connection with
resolving any investigation or other inquiry concerning the transactions contemplated by this
Agreement commenced by either the Federal Trade Commission or the Antitrust Division of the
Department of Justice or state attorneys general.

     (d) If the current authorization issued by the Mexican Antitrust Commission (Comision Federal
de Competencia, the “CFC”) shall have expired, KCS shall, in a timely manner after the date of this
Agreement, with the cooperation of TMM, (i) file before the CFC the notification required pursuant
to Articles 20 and 21 of the Mexican Antitrust Law (Ley Federal de Competencia Económica), using
commercially reasonable efforts to assure that the notification is accurate and complete and
contains all of the information required pursuant to the regulations of the Mexican Antitrust Law
(Reglamento de la Ley Federal de Competencia Económica) and other official forms therefor, and (ii)
assure that any request for any additional information that may be required or otherwise solicited
by the CFC from KCS or any of its Affiliates in connection with such notification is complied with
on a timely basis. Sellers shall use their reasonable best efforts to provide KCS with all
information regarding Sellers, GTFM and GTFM Subsidiaries requested by KCS, within the time
requested by KCS, in connection with KCS’s obligations under this Section 7.4(d). The Parties
shall cooperate with each other in connection with such Mexican antitrust notification and in
connection with resolving any investigation or other inquiry concerning the transactions
contemplated by this Agreement, commenced by either the CFC directly or as a result of any person
filing any claim before the CFC in connection therewith.

     (e) If the current authorization issued by the Foreign Investment Commission (“FIC”) shall
have expired, KCS shall have exclusive authority, notwithstanding any other provision of this
Agreement, to seek the approval of the FIC to the acquisition of control of TFM contemplated in
this Agreement (“FIC Approval”). Without limiting the generality of the foregoing:

          (i) TMM shall, and TMM shall assure that its controlled Affiliates, including
TMMH and MM, and their respective employees, officers, directors, corporate
secretaries, attorneys-in-fact and agents (collectively, the “TMM Parties”) shall,
cooperate with KCS to obtain as soon as possible the FIC Approval, including using
their reasonable best efforts to provide KCS with all information regarding Sellers,
GTFM and GTFM Subsidiaries that may be requested by KCS, within the time requested
by KCS, in connection with obtaining FIC Approval.

          (ii) TMM shall assure that none of the TMM Parties initiate any communication,
formal or informal, with the FIC or its directors or employees, concerning this
Agreement or the FIC Approval or any other matter which could have an adverse effect
on obtaining FIC Approval.

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          (iii) TMM shall assure that any communications by any of the TMM Parties with
the FIC concerning this Agreement or the FIC Approval shall (i) be made solely at
the express written request of José Vicente Corta Fernández or an officer of KCS,
and (ii) be made through Carlos Galván Duque or EMVA. TMM shall assure that if the
FIC communicates with any of the TMM Parties, that party shall promptly notify José
Vicente Corta Fernández of the communication and shall direct the FIC to communicate
with Carlos Galván Duque or EMVA for a response, and that Carlos Galván Duque or
EMVA shall consult with KCS before responding to the FIC or providing any documents
or other information to the FIC concerning this Agreement or the FIC Approval.

          (iv) All references in this Section 7.4(e) to communications with or by the FIC
shall include communications with members of the FIC, including officers of the
Ministry of Communication and Transport (SCT), the Ministry of Economy, and the
Ministry of Finance but shall not include communications in the ordinary course of
business of TMM or the GTFM Group that do not concern this Agreement or the FIC
Approval provided, that if in the course of such communications the subject of this
Agreement or the FIC Approval is raised, no discussions concerning those subjects
are held and all inquiries related to such subjects are referred to José Vicente
Corta Fernández (unless José Vicente Corta Fernández requests otherwise).

          (v) KCS shall keep TMM and EMVA informed, on a current basis, regarding any
communications with the FIC and will provide TMM with any materials received from
the FIC concerning this Agreement or FIC Approval.

     (f) TMM and KCS shall cause GTFM and the GTFM Subsidiaries to use their commercially
reasonable efforts to obtain the consents of the lessor and the lenders required under the Sublease
of Locomotives identified in Section 5.5 of the Seller Disclosure Schedule, to the change of
control resulting from the Acquisition.

     Section 7.5 Stockholder Approvals.

     (a) As soon as practicable following the date of this Agreement, but in any event within sixty
(60) days following the date of this Agreement, KCS shall file with the SEC an amended proxy
statement for a special meeting of its stockholders to be called to obtain the KCS Stockholder
Approval and shall use its commercially reasonable efforts to obtain clearance of such proxy
statement from the SEC as soon as practicable. Promptly after the definitive proxy statement has
been cleared by the SEC, KCS will call and give notice of a special meeting of its stockholders,
cause a proxy statement and any amendments thereto to be mailed to its stockholders, convene the
special meeting of its stockholders, which KCS shall endeavor to hold within forty-five (45) days
following the mailing of such proxy statement or the last of any amendment or supplement thereto,
and seek to obtain the approval of its stockholders to the matters set forth therein as requiring
such approval, including recommending such approval to its

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stockholders, provided that the KCS Board may withdraw its recommendation of the Acquisition
if it is advised by counsel to the effect that because of a third party proposal occurring after
the date of the KCS Board’s initial approval of the Acquisition, for the KCS Board to continue to
recommend the Acquisition would be a breach of the KCS Board’s fiduciary duties to the KCS
stockholders.

     (b) Within forty-five (45) days following the date of this Agreement, subject to extension for
such period of time as is necessary to receive any clearances or approvals in connection with the
Corporate Restructure Information Memorandum described below, TMM shall hold a meeting of its
stockholders to obtain the TMM Stockholder Approval and the shares of capital stock of TMM subject
to the Voting Trust shall be voted at such meeting in accordance with the terms of the Voting
Trust. The Board of Directors of TMM shall recommend such approval to the TMM stockholders. TMM
will provide to KCS a draft of the relevant Corporate Restructure Information Memorandum that TMM
must present to the Mexican Banking and Securities Commission (Comisión Nacional Bancaria y de
Valores) and the Mexican Stock Exchange (Bolsa Mexicana de Valores, S.A. de C.V.) with respect to
the approval of this Agreement for review by KCS prior to distribution of such memorandum to the
shareholders of TMM. TMM shall not unreasonably exclude from such memorandum any information
reasonably requested by KCS for inclusion therein.

     (c) Immediately following TMM Stockholder Approval, TMM shall obtain the TMMH Stockholder
Approval, and TMMH shall obtain the MM Stockholder Approval.

     Section 7.6 Tax Matters.

     (a) GTFM shall prepare or cause to be prepared and shall timely file or cause to be timely
filed all Tax Returns for GTFM and the GTFM Subsidiaries for all periods ending on or prior to the
Closing Date and for Tax periods that begin before the Closing Date and end after the Closing Date
(a “Straddle Period”).

     (b) After the Closing Date, KCS, GTFM and their respective Subsidiaries, on the one hand, and
TMM and its Subsidiaries, on the other hand, shall provide each other with such cooperation and
information, to the extent available to such Parties, relating to TMM, GTFM and their respective
Subsidiaries as the Parties may reasonably request in (i) filing any Tax Return, (ii) determining
any liability for Taxes or a right to a Tax refund, or (iii) conducting or defending any proceeding
in respect of Taxes.

     (c) At the Closing, TMM (to the extent available or in TMM’s possession or the possession of
any TMM Subsidiaries or any of their respective directors, officers, employees or representatives)
shall deliver to GTFM and KCS shall, and shall cause GTFM and the GTFM Subsidiaries to, retain for
a period of five (5) years following the Closing Date, all Tax Returns, books and records
(including computer files) of, or with respect to the activities of, GTFM and the GTFM Subsidiaries
for all taxable periods from date of incorporation to the Closing Date for GTFM and all GTFM
Subsidiaries.

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     (d) After the Closing, KCS shall control and manage any audit, contest, claim, proceeding or
inquiry with respect to Taxes of GTFM and any of the GTFM Subsidiaries for any taxable period
ending on or before the Closing Date and for any Straddle Period; provided, that KCS shall promptly
provide TMM with notice and information regarding any such audit, contest, claim, proceeding or
inquiry. KCS shall have the right, after consultation with TMM, to settle or contest any such
audit, contest, claim, proceeding or inquiry.

     Section 7.7 Insurance. Each of the Sellers and KCS shall cause GTFM and the GTFM Subsidiaries to
maintain in effect and pay all premiums due for the period ending on the Closing Date with respect
to any and all fidelity bonds maintained by them on the date hereof and all GTFM Insurance Policies
or procure comparable replacement policies and bonds (or such replacement coverage as is obtainable
on a commercially reasonable basis) and maintain such policies and bonds in effect until the
Closing Date.

     Section 7.8 Notification of Certain Matters. Each Party to this Agreement shall give prompt notice
to the other parties, to the extent known by such Party, of (i) the occurrence, or failure to
occur, of any event or existence of any condition that has caused or could reasonably be expected
to cause any of the representations or warranties of such Party contained in this Agreement to be
untrue or inaccurate in any material respect at any time after the date of this Agreement, up to
and including the Closing Date, or (ii) any failure on its part to comply with or satisfy, in any
material respect, any covenant, condition or agreement to be complied with or satisfied by such
Party under this Agreement.

     Section 7.9 Further Assurances. Each Party to this Agreement shall execute such documents and
other papers and perform such further acts as may be reasonably required to carry out the
provisions of this Agreement, the Ancillary Agreements and the transactions contemplated hereby and
thereby. Upon the request of the Sellers or KCS, as the case may be, KCS or the Sellers and their
respective Affiliates, as the case may be, shall promptly execute and deliver such further
instruments of assignment, transfer, conveyance, endorsement, direction or authorization and other
documents as the other Party may reasonably request to effectuate the purposes of this Agreement
and the Ancillary Agreements.

     Section 7.10 Third-Party Matters.

     (a) From the date of this Agreement to the Effective Time, (i) neither Sellers, nor any of
their respective Affiliates, officers, directors, employees, members, controlling shareholders
(which shall include for this purpose all signatories to any of the Ancillary Agreements),
representatives or agents, including any investment banker, attorney or accountant engaged by any
of them shall, directly or indirectly solicit, encourage or facilitate inquiries or proposals, or
enter into any agreement, with respect to, or initiate or participate in any negotiations or
discussions with any Person concerning, any acquisition or purchase of all or a substantial

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portion
of the assets of, or of any equity interest in, or any merger or business combination with, TMMH,
MM, GTFM or any of their respective Subsidiaries, and (ii) TMM shall not enter into any agreement
with any Person concerning any acquisition or purchase of a controlling equity interest in TMM by
any Competitor (as defined in the Stockholders’ Agreement which is part of the Ancillary
Agreements) (each acquisition, purchase, merger or business combination, a “TMM Acquisition
Proposal”), or furnish any information regarding a TMM Acquisition Proposal to any such Person.
Sellers shall notify KCS, providing full information, within twenty-four (24) hours if any TMM
Acquisition Proposal is received by, any such information is requested from, or any such
negotiations or discussions are sought to be initiated with, TMM, TMMH, MM, GTFM, any of their
respective Affiliates, officers, directors, employees, members, or controlling shareholders (for
purposes of this Section 7.10, collectively, the “Seller Parties”), or their representatives and
agents, including any investment banker, attorney or accountant engaged by any of them. It is
understood that any breach of the restrictions set forth in this Section 7.10 by any Seller Party
or any investment banker, attorney or other advisor or representative of the Seller Parties shall
be deemed to be a breach of this Section 7.10 by Sellers.

     (b) Sellers shall, and shall cause their respective Affiliates, officers, directors,
employees, members, shareholders, representatives and advisors to, immediately cease or cause to be
terminated any existing activities, including discussions or negotiations with any Parties,
conducted prior to the date hereof with respect to any TMM Acquisition Proposal and, subject to the
terms of any existing confidentiality agreements, shall seek to have all materials distributed to
Persons in connection therewith by Sellers or any of their respective Affiliates or advisors
returned to TMM promptly. Neither Sellers or any of their respective Affiliates, officers,
directors, employees, members, shareholders, representatives or agents, including any investment
banker, attorney or accountant engaged by any of them, shall amend, modify, waive or terminate, or
otherwise release any Person from, any standstill, confidentiality or similar agreement or
arrangement currently in effect relating to this Agreement or the transactions contemplated hereby.
Sellers shall cause their respective Affiliates, officers, directors, employees, members,
shareholders, representatives and agents to comply with the provisions of Sections 7.10(a) and
7.10(b).

     (c) From the date of this Agreement to the Effective Time, neither KCS, nor any of its
respective Affiliates, officers, directors, employees, representatives or agents, including any
investment banker, attorney or accountant engaged by any of them shall, directly or indirectly
solicit, encourage or facilitate inquiries or proposals, or enter into any agreement, with respect
to, or initiate or participate in any negotiations or discussions with any Person concerning, any
acquisition or purchase of all or substantially all of the assets of, or a controlling equity
interest in, KCS or KCSR or any merger or business combination with KCS or KCSR which, if
consummated would result in a Change of Control of KCS or KCSR (each, a “KCS Acquisition
Proposal”), or furnish any information regarding a KCS Acquisition Proposal to any such Person.
KCS shall notify TMM, providing full information, within twenty-four (24) hours if any KCS
Acquisition Proposal is received by, any such information is requested from, or any such
negotiations or discussions are sought to be initiated with, KCS, any of its respective
Affiliates, officers, directors, employees (for purposes of this Section 7.10, collectively, the
“Buyer

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Parties”), or their representatives and agents, including any investment banker, attorney or
accountant engaged by any of them. It is understood that any breach of the restrictions set forth
in this Section 7.10 by any Buyer Party or any investment banker, attorney or other advisor or
representative of the Buyer Parties shall be deemed to be a breach of this Section 7.10 by KCS.

     (d) KCS shall, and shall cause its KCS Affiliates, officers, directors, employees,
representatives and advisors to, immediately cease or cause to be terminated any existing
activities, including discussions or negotiations with any Parties, conducted prior to the date
hereof with respect to any KCS Acquisition Proposal and, subject to the terms of any existing
confidentiality agreements, shall seek to have all materials distributed to Persons in connection
therewith by KCS or its Affiliates or advisors returned to KCS promptly. Neither KCS nor any of
its Affiliates, officers, directors, employees, representatives or agents, including any investment
banker, attorney or accountant engaged by any of them, shall amend, modify, waive or terminate, or
otherwise release any Person from, any standstill, confidentiality or similar agreement or
arrangement currently in effect relating to this Agreement or the transactions contemplated hereby.
KCS shall cause its Affiliates, officers, directors, employees, representatives and agents to
comply with the provisions of Sections 7.10(c) and 7.10(d).

     (e) Nothing set forth in this Section 7.10 shall preclude the KCS Board or TMM from taking any
action in good faith if it is advised by counsel that failure to do so would be a breach of duty to
its stockholders.

     Section 7.11 Efforts of Parties to Close. During the period from the date of this Agreement
through the Closing Date, each party hereto shall use its commercially reasonable efforts to
fulfill or obtain the fulfillment of the conditions precedent to the consummation of the
transactions contemplated hereby, including the execution and delivery of any documents,
certificates, instruments or other papers that are reasonably required for the consummation of the
transactions contemplated hereby. During the period from the date of this Agreement and continuing
through the Closing, except as required by Applicable Law, no party to this Agreement shall
knowingly take any action which, or knowingly fail to take any action the failure of which to be
taken, could reasonably be expected to: (i) result in any of the representations and warranties set
forth in this Agreement on the part of the party taking or failing to take such action being or
becoming untrue in any material respect, (ii) result in any conditions to the Closing set forth in
Article 8 not being satisfied, or (iii) result in a violation of any provision of this Agreement or
the Ancillary Agreements.

     Section 7.12 Expenses. Except as expressly provided otherwise in this Agreement, the Parties shall
each bear their respective direct and indirect expenses incurred in connection with the negotiation
and preparation of this Agreement and the consummation of the Merger and the other transactions
contemplated hereby.

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     Section 7.13 VAT Contingency Payment.

     (a) On the later to occur of (i) the Closing Date, or (ii) the Final Resolution of the VAT
Claim and Put, KCS shall pay the sum of $110 million, reduced (but not below zero) by: (i) any
cash payments required to be made by KCS, TFM or any of their respective Affiliates (including for
purposes of this Section 7.13, GTFM) to any agency of the Mexican government to obtain the Final
Resolution of the VAT Claim and Put, net of any cash payments received by KCS, TFM or such
Affiliates from any such agency related to the Final Resolution of the VAT Claim and Put, (ii) the
NOL Value, (iii) 67% of the face amount of any other Tax credits under the Laws of the UMS which
TFM or any of its Affiliates is required to apply, use or relinquish to the Mexican government
without any value received in exchange therefor (other than the value resulting from the Final
Resolution of the VAT Claim and Put), to obtain the Final Resolution of the VAT Claim and Put, and
(iv) any Taxes incurred with respect to the Final Resolution of the VAT Claim and Put which are not
offset by the NOL Value or the other Tax credits referred to in Section 7.13(a)(iii), and (v) the
contingency fees, in an amount of $1,500,000 each (but not any portion of the ongoing legal fees
and expenses) to the extent they are required to be paid by GTFM or any GTFM Subsidiary to (y)
Rocha y Asociados, S.C., or Zambrano, Rocha y Espina, S.C. in connection with the successful
resolution of the Put and (z) CEA Abogados, S.C., in connection with the successful resolution of
the VAT Claim (the “VAT Contingency Payment”). The VAT Contingency Payment shall be paid as
follows: (i) $35 million shall be paid in cash; (ii) $35 million shall be paid by delivery of that
number of shares of KCS Common Stock as, valued at the Volume Weighted Price, shall be equal to $35
million, and (iii) $40 million shall be paid by deposit into escrow (the “VAT Escrow”), to be held
and be subject to reduction in accordance with the terms of an escrow agreement (the “VAT Escrow
Agreement”), of a note in the principal amount of $40 million, which shall be converted at the
fifth anniversary of the Closing Date, or at such earlier date following the date that is two (2)
years after the Final Resolution of the VAT Claim and Put as KCS may, in its sole discretion, deem
appropriate after consultation with a Tax consultant knowledgeable about Mexican Tax Laws, into
that number of shares of KCS Common Stock as, valued at the Volume Weighted Price, shall be equal
to the remaining principal amount of the VAT Escrow as of such date. Any reduction in the VAT
Contingency Payment pursuant to this Section 7.13(a) shall be made in equal proportions in the
amounts set forth in clauses (i) through (iii) in the immediately preceding sentence. KCS may at
its election deliver shares of KCS Common Stock valued at the Volume Weighted Price, in lieu of any
portion of the cash payment. The term “NOL Value” means 23% of the amount of any net operating
losses available to TFM and its Subsidiaries under applicable Tax Laws of the UMS which are
relinquished to the Mexican government by TFM and its Affiliates without any other value received
therefor.

     (b) KCS shall have the exclusive right to manage the negotiation, prosecution and settlement
of the VAT Claim and any extensions or other modifications of the obligations under the Put and in
doing so shall act prudently and in good faith. As used in this section, “prudently” shall mean
acting as a reasonably prudent person would act in dealing with its own property and without regard
to the obligation to make the VAT Contingency Payment. TMM shall, and shall
use its reasonable best efforts to cause its Affiliates, officers, directors, agents and
attorneys-in-fact to, cooperate with KCS in any matters reasonably required by KCS in connection
with these negotiations; provided TMM and its Affiliates shall not be required to pay any amounts
or

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relinquish any assets, Tax credits or other Tax attributes or other items of value. TMM, TMMH
and MM, hereby release KCS, its Affiliates, officers, directors, agents and attorneys-in-fact from
any and all claims, liabilities and obligations arising out of or in connection with the
negotiations or settlement with the Federal Government of the UMS with respect to the VAT Claim and
Put, except for any breach of the obligation to pay the VAT Contingency Payment pursuant to Section
7.13(a) or any breach of its obligations under this Section 7.13(b).

     Section 7.14 Financing for Acquisition. In connection with the financing for the Acquisition
(including any amounts due under Section 7.13), KCS shall not, and shall cause its Subsidiaries not
to, enter into any financing arrangements that materially (i) restrict the ability of KCS and its
Subsidiaries to make any payments required to be made by this Agreement, or (ii) deny or restrict
in any material way any material rights granted to TMM or any of its Subsidiaries under this
Agreement or the Ancillary Agreements.

     Section 7.15 Suspension and Dismissal of Actions; Releases.

     (a) During the period from the date of this Agreement to the Closing Date or the date of a
termination in accordance with Article 9, none of KCS, TMM, any controlled Affiliate of KCS or TMM,
or any officer, director, agent or representative of KCS acting on behalf of KCS, TMM or their
respective controlled Affiliates, including persons named by them as directors or alternate
directors of GTFM or any GTFM Subsidiary, shall initiate, file, commence, publicly threaten to
initiate, file or commence, or continue to pursue (collectively, “Commence”) any proceedings
previously filed, except as necessary in the opinion of their counsel to avoid dismissal or adverse
ruling or to preserve or exercise rights arising under this Agreement, before any court, arbitral
panel, regulatory body or other agency or body which, directly or indirectly, is based upon or
arises out of, in whole or in part, the Original Acquisition Agreement or the transactions referred
to therein (collectively, “Acquisition Agreement Claims”) or any claim or allegation with respect
to actions taken or meetings held prior to the date of this Agreement by, or in their capacity as,
the directors, officers, employees, shareholders or agents of TMM, KCS, or any Subsidiary of TMM or
KCS (collectively, “Management Claims”).

     (b) The Acquisition Agreement Claims and the Management Claims shall be dismissed, or may be
reinstated, as follows:

          (i) If this Agreement is terminated in accordance with Section 9.1(a)(i), then
the Acquisition Agreement Claims and the Management Claims, and if the termination
is in accordance with Section 9.1(a)(vii), then only the Acquisition Agreement
Claims, shall be dismissed with prejudice. Each Party shall make all filings
necessary, and shall take all steps reasonably requested by the other
Parties, to effect such dismissal on the date of such termination or as soon
thereafter as possible, with each Party to bear its own costs and expenses.

          (ii) If the Agreement is terminated other than as described in Section
7.15(b)(i), then, upon termination, the Acquisition Agreement Claims and the
Management Claims which were suspended as described in Section 7.15(a) (and

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any
other related claims (whether as cross-claims or otherwise)) may be Commenced.

          (iii) If the Agreement is not terminated, then on the Closing Date, the
Acquisition Agreement Claims and the Management Claims shall be dismissed with
prejudice. Each Party shall make all filings necessary, and shall take all steps
reasonably requested by the other Parties, to effect such dismissal on the Closing
Date or as soon thereafter as possible, with each Party to bear its own costs and
expenses.

     (c) Within ten days after the date of this Agreement, the Parties shall cause their respective
litigation counsel to inform the American Arbitration Association of the suspension of proceedings
in the matter styled Kansas City Southern and Kara Sub, Inc. v. Grupo TMM, S.A.; TMM Holdings, S.A.
de C.V.; and TMM Multimodal, S.A. de C.V., No. 50 T 181 00514 03 (the “Arbitration”). The
Arbitration shall be held in abeyance, but not dismissed or terminated, until the Closing Date.
Immediately following Closing or, if this Agreement is terminated as described in Section
7.15(b)(i) on a basis which requires dismissal of Acquisition Agreement Claims, immediately
following such termination, the Parties shall cause their respective litigation counsel to request
that the Arbitration be terminated and shall take all other action necessary to have the
Arbitration terminated as promptly as possible, with the Parties to bear their own costs and
expenses. If this Agreement is terminated other than as described in Section 7.15(b)(i), then any
Party may reinstate proceedings in the Arbitration, request a hearing and, reinstate or pursue any
claims it may have in such proceeding (whether as a counter-claim or otherwise).

     (d) On the date of this Agreement, KCS and TMM, each on behalf of itself and its controlled
Affiliates, have entered into Releases, which shall be deposited in the Closing Escrow immediately
following execution of this Agreement. The Releases shall become effective on the Closing Date and
be released from the Closing Escrow to the parties entitled to receive them at the Closing in
accordance with the terms of the Closing Escrow Agreement; provided, that if this Agreement is
terminated as described in to Section 7.15(b) on a basis which requires dismissal of Acquisition
Agreement Claims and Management Claims, then, at the effective time of such termination, the
Releases relating to the claims to be dismissed shall become effective and be released from the
Closing Escrow to the Parties entitled to receive them. The Parties agree that the Releases shall
not release Sellers from any indemnification obligations under Article 10 of this Agreement.

     (e) Within ten (10) days after execution of this Agreement, the Parties will cause their
respective litigation counsel to jointly file briefs before any relevant authority to suspend,
except
for the Authority Litigation, any pending civil litigation either as a pre-judgment measure
(medida cautelar) or as an Ordinary Commercial Proceeding as described in the “Mexican Litigation
List” attached hereto as Exhibit K. The Parties acknowledge that the suspensions previously
obtained in those proceedings (which are in effect on the date hereof) will remain in full force
and effect during the suspension period. The proceedings described in the “Mexican Litigation
List” shall be held in abeyance, but not dismissed or terminated, until the Closing

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Date. Upon
Closing, or a termination of this Agreement as referred to in Section 7.15(b)(i), the Parties will
cause their respective litigation counsel to jointly request that, except for the Authority
Litigation, the proceedings described in the “Mexican Litigation List” be terminated in accordance
with Section 7.15(b)(i), with the Parties to bear their own costs and expenses. If for any reason
this Agreement is terminated, except for a termination in accordance with Section 9.1(a)(i), or if
any Party repudiates this Agreement, then any Party may reinitiate the proceedings described in the
“Mexican Litigation List.”

     (f) Except for the Authority Litigation, the Parties agree to suspend after admission and
before service any lawsuit filed by such Party before the execution of this Agreement and not yet
admitted and/or served on the defendant(s) so long as such suspension does not imply the loss of
any proceeding rights such as the filing of any deadline brief. Upon Closing or termination of
this Agreement as referred to in Section 7.15(b)(i), the Parties will cause their litigation
counsel to request that such proceedings be terminated in accordance with Section 7.15(b)(i). If
for any reason this Agreement is terminated otherwise than in accordance with Section 7.15(b)(i) or
if any Party repudiates this Agreement, then any Party may reinitiate the proceeding so admitted
and suspended and not yet served.

     (g) Since the “Amparo” proceedings in the UMS are not subject to be suspended by agreement of
the Parties, the Parties acknowledge the right of each Party to file any briefs or legal resources,
such as queja, reclamación or revisión in order to preserve their rights against any Amparo
resolution or any decree or resolution entered into in any Amparo proceeding related to the
proceedings described in the “Mexican Litigation List,” and the Parties acknowledge the right of
the Party to file a new Amparo complaint only: (i) against resolutions adopted before the Parties
filed the suspension briefs after the execution of this Agreement, and (ii) against those
resolutions entered into after the execution of this Agreement so long as: (x) they are the
consequence of the accomplishment of an Amparo resolution, or (y) they are entered into in any
appeal related to any proceeding listed in the “Mexican Litigation List.”

     (h) At the time of the execution of this Agreement, KCS and TMM shall take all action
necessary to cause GTFM, TFM and the other GTFM Subsidiaries to adopt the Release Resolutions and
will not subsequently take, or permit to be taken, any action to amend, repeal, revoke, or
otherwise change, in whole or in part, such Release Resolutions.

     (i) With respect to the Authority Litigation, KCS will grant releases, which will be
independent of the Releases identified in Section 7.15(d) above, to those persons identified in the
Authority Litigation Agreement.

     Section 7.16 Legal Representation Release. TMM shall deliver to KCS at the Closing, a full and
complete release, in the form attached hereto as Exhibit L (the “Legal Representation Release”), of
GTFM, TFM and their respective Subsidiaries of any and all claims for fees or expenses of De Teresa
and its Affiliates other than with respect to the Ongoing Litigation Matters.

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ARTICLE 8

CONDITIONS

     Section 8.1 Mutual Conditions. The obligations of each party to this Agreement to consummate
the Acquisition shall be subject to the satisfaction of each of the following conditions, unless
any such condition is waived by KCS and TMM:

     (a) No order, injunction or decree issued by any Governmental Authority of competent
jurisdiction or other legal restraint or prohibition preventing the consummation of the Acquisition
shall be in effect. No statute, rule, regulation, order, injunction or decree shall have been
enacted, entered, promulgated or enforced by any Governmental Authority which prohibits, restricts
in any material manner or makes illegal consummation of the Acquisition;

     (b) Each of the consents, waivers, authorizations and approvals required from all Governmental
Authorities shall have been obtained without the imposition of conditions or requirements, in the
aggregate, the satisfaction of which by KCS or its Subsidiaries or TMM or its Subsidiaries is
reasonably likely to result in either a KCS Material Adverse Effect, a GTFM Material Adverse Effect
or a Seller Material Adverse Effect;

     (c) The Common Stock to be issued by KCS pursuant to this Agreement shall have been approved
for listing by the NYSE; and

     (d) The Release Resolutions, the Releases, the Dismissals, the Ancillary Agreements and the
Consulting Agreement shall be eligible for release from the Closing Escrow, subject only to the
occurrence of the Closing.

     Section 8.2 Conditions to the Obligations of KCS. The obligations of KCS to consummate the
Acquisition shall be subject to the satisfaction of each of the following conditions, any of which
may be waived in writing by KCS:

     (a) For purposes of this Section 8.2(a), the accuracy of the representations and warranties of
Sellers set forth in this Agreement shall be assessed as of the date of this Agreement and shall be
assessed as of the Closing Date with the same effect as though all such representations and
warranties had been made again on and as of the Closing Date (provided, however, that the
representations and warranties that speak as of a specific date other than the date of this
Agreement shall speak only as of such date) and such representations and warranties shall be true
and correct in all material respects;

     (b) Sellers shall have performed and complied in all material respects with all agreements,
covenants, obligations and conditions required by this Agreement to be performed or complied with
by them at or prior to the Closing Date;

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     (c) TMM, TMMH and MM shall have delivered to KCS a certificate, dated as of the Closing Date,
signed on their behalves by their respective Presidents and Chief Financial Officers confirming
their satisfaction of the conditions applicable to them contained in Sections 8.2(a) and 8.2(b);

     (d) There shall not exist any event or combination of events that, individually or in the
aggregate, will (or would reasonably be expected to) prevent any of the Sellers from performing any
of its material post-closing obligations under this Agreement, any Ancillary Agreement or the
Consulting Agreement at or after the Effective Time;

     (e) Since December 31, 2003, there shall not have been any GTFM Material Adverse Effect or any
development or combination of developments that, individually or in the aggregate, has had or is
reasonably likely to have a GTFM Material Adverse Effect, of which KCS did not have Knowledge prior
to the date of this Agreement;

     (f) KCS shall have received copies of all other consents, approvals, authorizations,
qualifications and orders of all Governmental Authorities and all other Persons party to Contracts
with any member of the GTFM Group that are required in respect of the transactions to be
consummated at the Closing, other than those that if not obtained would not individually or in the
aggregate reasonably be expected to have a GTFM Material Adverse Effect or a KCS Material Adverse
Effect and such consents and other items shall remain in full force and effect as of the Closing
Date;

     (g) KCS shall have received the KCS Stockholder Approval;

     (h) There shall not be pending any insolvency or bankruptcy proceeding (including a Concurso
Mercantil under the laws of the UMS) against TMM, MM, TMMH, GTFM or TFM; and

     (i) The Legal Representation Release shall have been duly executed and delivered to KCS.

     Section 8.3 Conditions to the Obligations of Sellers. The obligation of Sellers to consummate the
Acquisition shall be subject to satisfaction of each of the following conditions, any of which may
be waived in writing by TMM:

     (a) For purposes of this Section 8.3(a), the accuracy of the representations and warranties of
KCS and the KCS Purchasers set forth in this Agreement shall be assessed as of the date of this
Agreement and shall be assessed as of the Closing Date with the same effect as though all such
representations and warranties had been made again on and as of the Closing Date (provided,
however, that the representations and warranties that speak as of a specific date other than the
date of this Agreement shall speak only as of such date) and such representations and warranties
shall be true and correct in all material respects;

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     (b) Each of KCS and the KCS Purchasers shall have performed and complied in all material
respects with all agreements, covenants, obligations and conditions required by this Agreement to
be performed or complied with by it at or prior to the Closing Date;

     (c) Each of KCS and the KCS Purchasers shall have delivered to TMM a certificate, dated as of
the Closing Date, signed on its behalf by its Chief Executive Officer and Chief Financial Officer,
confirming the satisfaction of the conditions contained in Sections 8.3(a) and 8.3(b);

     (d) There shall not exist any event or combination of events that, individually or in the
aggregate, will (or would reasonably be expected to) prevent KCS from performing any of its
material post-Closing obligations under this Agreement or any Ancillary Agreement at or after the
Effective Time;

     (e) Since December 31, 2003, there shall not have been any KCS Material Adverse Effect or any
development or combination of developments that, individually or in the aggregate, has had or is
reasonably likely to have a KCS Material Adverse Effect, of which TMM did not have Knowledge prior
to the date of this Agreement; and

     (f) TMM shall have received copies of all other consents, approvals, authorizations,
qualifications and orders of all Governmental Authorities and all other Persons party to contracts
with KCS or any of its Subsidiaries that are required in respect of the transactions to be
consummated at Closing, other than those that, if not obtained, would not, individually or in the
aggregate, reasonably be expected to have a KCS Material Adverse Effect and such consents and other
items shall remain in full force and effect as of the Closing Date.

ARTICLE 9

TERMINATION

     Section 9.1 Termination.

     (a) This Agreement may be terminated prior to the Closing as follows:

          (i) by written consent of KCS and TMM;

          (ii) by KCS or TMM if any order of any Governmental Authority permanently
restraining, enjoining or otherwise prohibiting the consummation of the Acquisition
shall have become final and non-appealable or if any of the approvals of any
Governmental Authority to perform the transactions herein, imposes any condition or
requirement, the satisfaction of which is reasonably likely to result in either a
KCS Material Adverse Effect or a GTFM Material Adverse Effect;

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          (iii) by KCS if any condition to the obligations of KCS hereunder becomes
incapable of fulfillment through no fault of KCS and is not waived by KCS;

          (iv) by TMM if any condition to the obligations of Sellers hereunder becomes
incapable of fulfillment through no fault of Sellers and is not waived by TMM;

          (v) by KCS if TMM shall have experienced a Change of Control or publicly
announced any agreement or intention to complete a transaction which, if completed,
would result in a Change of Control, or by TMM if KCS shall have experienced a
Change of Control or publicly announced any agreement or intention to complete a
transaction which, if completed, would result in a Change of Control;

          (vi) by KCS or TMM if the Closing shall not have occurred by the close of
business on December 31, 2005 (the “Termination Date”); provided, however, that the
Termination Date may be extended by KCS and TMM by written agreement; and

          (vii) by KCS or TMM if KCS shall not have obtained the KCS Stockholder
Approval at any meeting of its stockholders called for that purpose (including any
adjournments or continuances of such meeting).

     (b) The termination of this Agreement shall be effectuated by the delivery by the Party
terminating this Agreement to the other Parties of a written notice of such termination. If this
Agreement so terminates, it shall become null and void and have no further force or effect, except
as provided in Section 9.2.

     Section 9.2 Survival after Termination. If this Agreement is terminated in accordance with Section
9.1 and the transactions contemplated hereby are not consummated, this Agreement, each Ancillary
Agreement and the Consulting Agreement (other than any Ancillary Agreement that this Agreement or
such Ancillary Agreement provides shall become effective in the event of such termination) shall
become void and of no further force and effect, without any liability on the part of any party
hereto, except for the provisions of this Section 9.2 and Sections 7.3, 7.12, 7.15, 12.5, 12.11 and
12.13. Notwithstanding the foregoing, nothing in this Section 9.2 shall relieve any Party to this
Agreement of liability for a breach of any provision of this Agreement or any agreement made as of
the date hereof or subsequent thereto pursuant to this Agreement.

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ARTICLE 10

INDEMNIFICATION

     Section 10.1 Survival of Representations, Warranties and Covenants; Exclusive Monetary
Remedies.

     (a) All representations and warranties in this Agreement or in any instrument executed and
delivered in fulfillment of the requirements of this Agreement shall survive the Closing until
April 1, 2007 (the “Expiration Date”), except that the representations and warranties of the
Sellers set forth in Sections 5.10(b)(ii) and 5.10(b)(iii) with respect (in both subsections) to
the payment or withholding of Taxes, and the representations and warranties in Sections 5.7(d) and
5.11, shall survive for the applicable statute of limitations. All representations and warranties
of KCS set forth in this Agreement shall survive the Closing until the Expiration Date. All
covenants or other agreements in this Agreement shall terminate at the Effective Time, except the
covenants in Sections 7.3, 7.6, 7.9, 7.12, 7.13, 7.14 and 7.15 which shall survive the Closing
indefinitely or for the period of the respective statutes of limitation relating thereto.

     (b) Notwithstanding anything in this Agreement to the contrary, the sole and exclusive basis
on which any Party may recover monetary damages for any breach of this Agreement by any other
Party, whether based upon breach of representations and warranties, breach of any covenant, or
otherwise, shall be in accordance with the indemnification provisions set forth in this Article 10,
and subject to the limitations and exclusions set forth in this Article 10, provided however, that
such exclusive remedies for monetary damages shall not preclude any Party from pursuing the
remedies of specific performance, injunctive relief, declaratory judgment or any other non-monetary
equitable remedies available to such Party under Applicable Law.

     (c) All Losses (as defined below) for which any Party may seek indemnification hereunder shall
be net of (i) any insurance recoveries received by such Party or to which such party is entitled,
(ii) any amounts which such Party has received or is entitled to receive from any third party under
any indemnification or other similar agreement, and (iii) any Tax benefits accruing to such Party
as a result of the Losses.

     Section 10.2 Indemnification by Sellers.

     (a) Subject to the limitations contained in this Article 10, Sellers, jointly and severally,
shall indemnify and hold KCS, the Surviving Company and each of their Subsidiaries (including GTFM
and the GTFM Subsidiaries), and each of their respective officers, directors, alternate directors,
employees, members, stockholders, agents and representatives (“KCS Indemnitees”) harmless from and
against all losses, damages, liabilities, claims, demands, obligations, deficiencies, payments,
judgments, settlements, costs and expenses of any nature whatsoever
(including the costs and expenses of any and all investigations, actions, suits, proceedings,
demands, assessments, judgments, orders, settlements and compromises relating thereto, and
reasonable attorneys’, accountants’, experts’ and other fees and expenses in connection

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therewith)
(“Losses”) resulting from, arising out of, or due to, directly or indirectly, any of the following:

          (i) Any inaccuracy or misrepresentation in, or breach of, any representation or
warranty of Sellers contained in Article 5 (excluding, to avoid duplication, those
which are the subject of indemnification under Section 10.5), in any schedule or
exhibit delivered hereunder by any of Sellers or in any certificates delivered by
any of Sellers pursuant to this Agreement, or any breach or nonfulfillment of any
covenant or agreement of any of Sellers contained in this Agreement, in any schedule
or exhibit delivered hereunder by any of Sellers or in any certificates delivered by
any of Sellers pursuant to this Agreement, or any claims, causes of actions, rights
asserted or demands made by any third parties (including any Governmental Authority)
arising from or relating to any of the foregoing;

          (ii) Any action (other than any actions relating to the arrangements with
DeTeresa or which are the subject of the Management Claims, the Acquisition Claims
or the Authority Litigation) by or at the direction of any Person released pursuant
to Section 7.15 hereof (except for Larry M. Lawrence and the officers and directors
of KCS) or the Authority Litigation Agreement, or any Designated Person that (x)
constituted a fraud or a criminal act equivalent to a felony under the Laws of the
jurisdiction where the act occurred (including the burden of proof required under
such Laws) or (y) occurred during the period from April 20, 2003 to the date of this
Agreement and required the approval of KCS under the terms of the Original
Acquisition Agreement, which approval was not obtained and resulted in Losses to
GTFM or any GTFM Subsidiary in excess of $1 million. The term “Designated Person”
means any person identified on Exhibit P.

          (iii) Penalties and other termination payments aggregating more than $1 million
(including any punitive, special, exemplary or other similar damages not incurred as
a result of a wrongful act by KCS) required to be paid by the GTFM Group to
terminate any Contract (x) which was required to be, but was not, identified in
Section 5.7 of the Seller Disclosure Schedule and (y) which is actually terminated
prior to the eighteen (18) month anniversary of the Closing Date; provided, that
prior to any such termination, KCS shall give notice to the Sellers of its desire to
terminate the Contract and the Sellers shall have the right at their expense to
negotiate with the other parties to such Contract as to the termination of any such
Contract, but the exercise of such right by Sellers shall not prejudice or prevent
the exercise by KCS of its rights under this subsection (iii);

          (iv) Claims against TMM or any of its Affiliates for any breach in the
performance during the two year period following the Closing Date of any

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obligation
of TMM or any of its Affiliates under any Continuing Affiliate Agreement; and

          (v) Any litigation, arbitration, mediation or other adversary proceeding
brought against any KCS Indemnitee by De Teresa or any of its Affiliates, other than
for fees or expenses incurred in the Ongoing Litigation Matters which do not exceed
the amounts contemplated in Section 5.7(d).

     (b) Sellers’ indemnification obligations under Section 10.2(a)(i) for any inaccuracy or
misrepresentation in, or breach of any representation or warranty regarding GTFM or its
Subsidiaries, except for the representations and warranties set forth in Sections 5.7, 5.11 and
5.21, shall be limited to 51% of Losses and then only to the extent such 51% of Losses amount to,
in the aggregate, $5 million or more; provided, that for the purpose of computing this limitation
on Sellers’ indemnification obligations, (i) Losses shall be computed without regard to whether
such Losses resulted in a GTFM Material Adverse Effect (i.e., if a representation or warranty is
qualified by GTFM Material Adverse Effect or words of similar import and, giving effect to any such
qualification, there has been a breach of such representation or warranty, then the computation of
Losses as a result of such breach shall take effect of the full amount of such Losses and not
solely the amount that exceeded an amount that resulted in a GTFM Material Adverse Effect), (ii)
Losses shall exclude all Losses with respect to any single matter where the amount of the Losses
arising out of such matter is less than $50,000 (provided, that in computing such amount, all
matters arising out of the same set of facts or substantially the same set of facts shall be
aggregated), (iii) to the extent that the calculation of Losses depends, in whole or in part, on
any matters relating to the financial statements of any member of the GTFM Group, such calculation
shall be made exclusively by reference to IFRS and to financial statements prepared in accordance
with IFRS, and (iv) Losses which could be subject to the limitations of this subsection (b) but
which also constitute Losses that are not subject to such limitations, shall be deemed not subject
to the limitations in this subsection (b).

     (c) Any claim against Sellers for indemnification for Losses (except for those relating to
Taxes, or the matters referred to in Sections 10.2(a)(iii), (iv) and (v) and any Losses arising out
of or resulting from any action or omission on the part of any Seller or its Affiliate that
involved a crime, fraud or willful misconduct,) shall be satisfied exclusively out of, and the
maximum aggregate liability of all the Sellers for such Losses shall be limited to, the assets held
in the Indemnity Escrow; provided, at KCS’s election, any claim against Sellers for indemnification
for Losses may be satisfied from assets remaining in the Indemnity Escrow. Any claim for
indemnification against the assets in the Indemnity Escrow, unless such claim is not contested by
TMM, shall be made by KCS by instituting arbitration proceedings in accordance with the dispute
resolution procedures set forth in Section 12.11; provided, no more than two (2) such arbitration
proceedings may be instituted and no such claim or arbitration proceeding may be instituted later
than April 1, 2007.

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     (d) Any claim for indemnification pursuant to Article 10 by a KCS Indemnitee other than KCS
shall be brought only by and through KCS, and not directly by such other KCS Indemnitee.

     Section 10.3 Indemnification by KCS.

     (a) Subject to the limitations contained in this Article 10, KCS shall indemnify and hold
harmless Sellers, each of their Subsidiaries and each of their respective officers, directors,
alternate directors, employees, members, stockholders, agents and representatives (“Seller
Indemnitees”) from and against all Losses resulting from, arising out of, or due to, directly or
indirectly, any inaccuracy or misrepresentation in, or breach of, any representation or warranty of
KCS contained in Article 6, in any schedule or exhibit delivered hereunder by KCS or in any
certificates delivered by KCS pursuant to this Agreement, or any breach or nonfulfillment of any
covenant of KCS contained in this Agreement, in any schedule or exhibit delivered hereunder by KCS
or in any certificates delivered by KCS pursuant to this Agreement, or any claims, causes of
actions, rights asserted or demands made by any third parties (including any Governmental
Authority) arising from or relating to any of the foregoing.

     (b) KCS’s indemnification obligations under this Article 10 shall be limited to Losses which
amount to, in the aggregate, $10 million or more, provided that for the purpose of computing this
limitation or KCS’s indemnification obligations, Losses shall be calculated without regard to
whether such Losses involved a KCS Material Adverse Effect (i.e., if a representation or warranty
is qualified by KCS Material Adverse Effect or words of similar import and, giving effect to any
such qualification, there has been a breach of such representation or warranty, then the
computation of Losses as a result of such breach shall take effect of the full amount of such
Losses and not solely the amount that exceeded an amount that resulted in a KCS Material Adverse
Effect). The limitation set forth in the first sentence of this Section 10.3(b) shall not be
applicable to any Losses arising out of or resulting from any action or omission on the part of KCS
or its Affiliate that involved a crime, fraud or willful misconduct. Losses shall also exclude all
Losses with respect to any single matter where the amount of the Losses arising out of such matter
are less than $50,000 (provided, that in computing such amount, all matters arising out of the same
set of facts or substantially the same set of facts shall be aggregated).

     (c) Any claim for indemnification pursuant to this Article 10 by a Seller Indemnitee other
than TMM shall be brought only by and through TMM and not directly by such other Seller Indemnitee.

     Section 10.4 Procedures for Third-Party Claims.

     (a) In order for a Person (the “Indemnified Party”) to be entitled to any indemnification
provided for under Section 10.2 or 10.3 in respect of, arising out of or involving a claim made by
any Person (other than another Party or its Affiliate) against the Indemnified Party (a
“Third-Party Claim”), such Indemnified Party must notify the indemnifying party in writing of the
Third-Party Claim promptly (but in any event not later than the second Business Day in the case

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of any litigation, arbitration or other adversary proceedings) following receipt by such
Indemnified Party of written notice of the Third-Party Claim; provided, however, that failure to
give such notification shall not affect the indemnification provided hereunder except to the extent
the indemnifying party shall have been actually materially prejudiced (including with respect to
the defense of such Third Party-Claim) as a result of such failure. Thereafter, the Indemnified
Party shall deliver to the indemnifying party, as promptly as practicable following the Indemnified
Party’s receipt thereof, copies of all notices and documents (including court papers) received by
the Indemnified Party relating to the Third-Party Claim that are not separately addressed to the
indemnifying party.

     (b) If a Third-Party Claim is made against an Indemnified Party, the indemnifying party shall
be entitled to participate in the defense thereof and, if it so chooses, to assume the defense
thereof with counsel selected by the indemnifying party; provided, however, that such counsel is
not reasonably objected to by the Indemnified Party. Should the indemnifying party so elect to
assume the defense of a Third-Party Claim, the indemnifying party shall not be liable to the
Indemnified Party for any reasonable legal expenses subsequently incurred by the Indemnified Party
in connection with the defense thereof. If the indemnifying party assumes such defense, the
Indemnified Party shall have the right to participate in the defense thereof and to employ counsel,
at its own expense, separate from the counsel employed by the indemnifying party, it being
understood that the indemnifying party shall control such defense; provided, however, that the
indemnifying party shall bear the reasonable fees and expenses of such separate counsel (i) if the
Parties to any such action or proceeding (including impleaded parties) include other Parties and
representation of both Parties would, in the reasonable opinion of counsel for the Indemnified
Party, be inappropriate due to a conflict of interest, or (ii) if the indemnifying party shall not
have employed counsel (other than counsel that is reasonably objected to by the Indemnified Party)
within a reasonable time after the Indemnified Party has given notice of the institution of a
Third-Party Claim in compliance with Section 10.4(a). The indemnifying party shall be liable for
the reasonable fees and expenses of counsel employed by the Indemnified Party for any period during
which the indemnifying party has not assumed the defense thereof, provided, however, that such
counsel is not reasonably objected to by the indemnifying party. If the indemnifying party chooses
to defend or prosecute a Third-Party Claim, all the Indemnified Parties shall cooperate in the
defense or prosecution thereof at the indemnifying party’s expense. Such cooperation shall include
the retention and (upon the indemnifying party’s request) the provision to the indemnifying party
of records and information that are reasonably relevant to such Third-Party Claim, and making
employees available on a mutually convenient basis to provide additional information and
explanation of any material provided hereunder. If the indemnifying party assumes the defense of a
Third-Party Claim, the Indemnified Party shall not admit any liability with respect to, or settle,
compromise or discharge, such Third-Party Claim without the indemnifying party’s prior written
consent (which consent shall not be unreasonably withheld or delayed). If the indemnifying party
assumes the defense of a Third-Party Claim, the Indemnified Party shall agree to any settlement,
compromise or discharge of a Third-Party Claim that the indemnifying party may recommend and that
by its terms obligates the indemnifying party to pay the full amount of the liability in connection
with such Third-Party Claim, which

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releases the Indemnified Party completely in connection with such Third-Party Claim and that
would not otherwise materially adversely affect the Indemnified Party.

     Section 10.5 Tax Indemnification.

     (a) Sellers shall, jointly and severally, indemnify and hold each of the KCS Indemnitees
harmless from and against 51% of all Taxes and associated penalties, interest and similar charges
of GTFM and the GTFM Subsidiaries relating to periods ending prior to the Closing Date and that
part of any Straddle Period ending on the Closing Date and which exceed the amounts set forth on
the Tax Returns and reports filed by GTFM or its Affiliates for such periods which GTFM or any GTFM
Subsidiary becomes obligated to pay pursuant to this Section 10.5.

     (b) Sellers’ indemnification obligations under this Section 10.5 shall not be limited to the
assets held in the Indemnity Escrow or the VAT Escrow; provided, however, that at the election of
KCS, to the extent assets remain in the Indemnity Escrow or the VAT Escrow, Sellers’
indemnification obligations may be satisfied therefrom.

     (c) None of the KCS Indemnitees, GTFM or any GTFM Subsidiaries shall make any payment to any
of the Sellers or any other Person or Persons on account of any adjustment to any Tax item of GTFM
or the GTFM Subsidiaries for any Tax period ending prior to the Closing Date, or any portion of any
Straddle Period ending on the Closing Date, regardless of whether any such payments would otherwise
be payable pursuant to any agreement among any of the Sellers, GTFM and the GTFM Subsidiaries or
any other Person or Persons, or pursuant to any provision of Applicable Law relating to Tax
consolidation or otherwise.

     (d) KCS shall indemnify and hold Sellers harmless from and against all Taxes of GTFM and the
GTFM Subsidiaries for periods beginning after the Closing Date and the portion of any Straddle
Period beginning after the Closing Date, as to which Sellers have no indemnification obligations to
the KCS Indemnitees under this Section 10.5.

     (e) (i) In the event that any Mexican governmental taxing authority shall assert that Taxes
are due (a “Tax Assessment”) from GTFM or any GTFM Subsidiary (the “GTFM Taxpayer”) with respect to
any period covered by Sellers’ indemnification obligations under this Section 10.5, GTFM shall give
written notice thereof to TMM and shall consult with an advisor chosen by GTFM which is
knowledgeable about Tax Laws of the UMS.

     (ii) Following such consultation, GTFM shall give written notice to TMM of GTFM’s
determination, including the reasons therefor, to pay, contest, or pay and contest the Tax
Assessment. If the Tax Assessment is $10,000 or more, the procedure set forth below in clauses
(iii) through (v) of this Section 10.5(e) shall be followed. For Tax Assessments of less than
$10,000, TMM shall be bound by GTFM’s determination, without resort to that procedure or to
arbitration pursuant to Section 12.11.

     (iii) If TMM disagrees with GTFM’s determination, TMM shall advise GTFM in writing within ten
(10) days after the notice from GTFM. Following receipt of a notice of disagreement

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from TMM, GTFM shall promptly consult with one of the advisors identified in Exhibit O (a “Selected
Tax Advisor”) as to whether GTFM’s determination is reasonable from the perspective of the GTFM
Taxpayer. If the Selected Tax Advisor agrees that GTFM’s determination was reasonable, then Seller
shall have an indemnification obligation pursuant to Section 10.5 with respect to such matter and
shall pay (or advance, in the case of payment and contest) 51% of the Tax Assessment upon demand
from KCS.

     (iv) If the Selected Tax Advisor disagrees with GTFM’s determination, GTFM may consult
another Selected Tax Advisor. If the second Selected Tax Advisor agrees with GTFM’s determination,
then Sellers’ indemnification obligations shall be as set forth above in subsection (iii). If the
second Selected Tax Advisor disagrees with GTFM, then Sellers’ indemnification obligations pursuant
to this Section 10.5 with respect to such matter shall arise only when the Tax Assessment is
finally judicially affirmed by a final judgment resolving the complaint (queja) of a constitutional
appeal (amparo) (a “Final Tax Resolution”) If the Tax Assessment is finally judicially rejected by
a Final Tax Resolution, then any amount of the Tax Assessment paid or advanced by TMM shall be
returned to TMM promptly following receipt thereof by GTFM from the Taxing Authority.

     (v) The procedure set forth in this Section 10.5(e) shall be the exclusive procedure followed
by the Parties for resolution of disputes among the Parties regarding Tax Assessments, and shall be
in lieu of the dispute resolution procedure set forth in Section 12.11. The Parties shall bear
their own expenses incurred under this Section 10.5(e), except that the fees and expenses of the
Selected Tax Advisors shall be borne by GTFM.

ARTICLE 11

DEFINITIONS

     Section 11.1 Certain Defined Terms. As used in this Agreement, the following terms shall have
the following meanings:

     “Affiliate” shall mean any Person that directly, or indirectly through one or more
intermediaries, Controls, is Controlled by or is under common Control with the Person specified.

     “Agreement” shall have the meaning set forth in the preamble to this Agreement.

     “Amendment to the Trust Agreement” means the Amended and Restated Irrevocable Trust Agreement
F-410 dated as of December 14, 2001, among José Francisco Serrano Segovia, Ramón Serrano Segovia,
Teresa Serrano Segovia, as settlors, and GE Capital Bank, S.A., Instituciün de Banca Múltiple, GE
Capital Grupo Financiero, as trustee, with the appearance of Citibank, N.A., and with the
acknowledgement and agreement of TMM, TMMH and MM.

     “Ancillary Agreements” shall mean the following agreements entered into as of the date of this
Acquisition Agreement: (i) Stockholders’ Agreement by and among KCS, TMM, TMMH
and MM and certain other parties, (ii) Registration Rights Agreement among KCS, TMM,

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TMMH and
MM and certain other parties, (iii) the Marketing and Services Agreement; (iv) the Releases, (v)
the Closing Escrow Agreement, (vi) the Indemnity Escrow Agreement, (vii) the VAT Escrow Agreement,
(viii) the Authority Litigation Agreement, (ix) the Put Assignment Agreement, and (x) the agreement
between TMM and KCS relating to cooperation with respect to the Final Resolution of the Vat Claim
and Put.

     “Applicable Law” shall mean any Law applicable to KCS, TMM, TMMH, MM or any of their
respective Affiliates, properties, assets, officers, directors, employees or agents, as the case
may be.

     “Authority Litigation” shall have the meaning set forth in the Authority Litigation Agreement.

     “Authority Litigation Agreement” shall mean that certain agreement dated contemporaneously
herewith among the Parties relating to the Authority Litigation claims.

     “Business Day” shall mean any day that is not a Saturday, a Sunday or other day on which banks
are required or authorized by law to be closed in the United States or the UMS.

     “Certificate of Merger” shall have the meaning set forth in Section 3.1 of this Agreement.

     “Change of Control” shall mean, with respect to such Person, the occurrence of any of the
following prior to the Closing Date: (a) any Person or Group, other than a Subsidiary or any
employee benefit plan (or any related trust) of such Person or a Subsidiary of such Person, becomes
the beneficial owner of voting Securities representing 20% or more of the combined voting power of
all voting Securities of such Person, (b) the individuals who, as of the date of this Agreement,
constitute the board of directors of such Person (the “Incumbent Directors”) cease for any reason
to constitute at least 75% of the members of such board of directors unless, at least 75% of the
individuals then constituting such board of directors were nominated upon the recommendation of at
least 75% of the Incumbent Directors or other directors so nominated, or (c) approval by the
stockholders of such Person of any of the following: (1) a merger, reorganization or consolidation
(“Consolidation”) with respect to which the individuals and entities who were the respective
beneficial owners of the stock and voting Securities of the Person immediately before such
Consolidation do not, after such Consolidation, beneficially own, directly or indirectly, more than
80% of the combined voting power of the voting Securities of the Person resulting from such
Consolidation in substantially the same proportion as their ownership immediately before such
Consolidation, (2) a liquidation or dissolution of such Person, or (3) the sale or other
disposition of all or substantially all of the assets of such Person.

     “Code” shall mean the Internal Revenue Code of 1986, as amended, and the rules and regulations
promulgated thereunder.

     “Concession” shall mean the concession title from the Mexican government held by TFM to
provide freight transportation services over its rail lines in the UMS.

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     “Confidentiality Agreements” shall mean the Confidentiality Agreements dated as of November 9,
2002, by and between KCS and TMM, and all amendments thereto.

     “Consultant” shall mean the Company owned by José Francisco Serrano Segovia that has entered
into the Consulting Agreement with KCS.

     “Consulting Agreement” shall mean that agreement between Consultant and KCS dated as of the
date hereof.

     “Contracts” shall mean all written or oral contracts, agreements, evidences of indebtedness,
guarantees, leases and executory commitments to which any member of the GTFM Group is a party
(jointly or severally, in whole or in part, with others or solely) or by which any of the GTFM
Assets are bound, or otherwise related to the GTFM Business.

     “Control” shall mean the ability whether directly or indirectly to direct the affairs of
another by means of ownership of assets or voting Securities, or by contract.

     “Designated Person” shall have the meaning set forth in Section 10.2(a)(ii) of this Agreement.

     “Dismissals” shall mean the dismissals or terminations that are required in accordance with
the terms of this Agreement, of the Acquisition Agreement Claims and the Management Claims referred
to in Section 7.15(a), the Arbitration referred to in Section 7.15(c) and the litigation matters
referred to in Sections 7.15(e) and (f).

     “Encumbrance” shall mean any lien, pledge, mortgage, security interest, claim, charge,
easement, limitation, commitment, encroachment, restriction (other than a restriction on
transferability imposed by federal or state securities laws) or other encumbrance of any kind or
nature whatsoever (whether absolute or contingent).

     “Environmental Laws” shall mean any and all U.S. and Mexican federal, state and local
statutes, laws, regulations, ordinances or rules in existence on or prior to the Closing Date
relating to (i) the protection of the environment or natural resources, occupational safety and
health, (ii) the effect of the environment or Hazardous Materials on human health, (iii) emissions,
discharges or releases of Hazardous Materials into the environment, including, ambient air, surface
water, groundwater or land, or (iv) otherwise relating to the handling of Hazardous Materials or
the investigation, clean-up or other remediation or analysis thereof.

     “Environmental Permit” shall mean any permit, approval, identification number, license and
other authorization required under any applicable Environmental Law, including any administratively
complete application that is sufficient to serve as an authorization for an activity regulated
under Environmental Law.

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     “ERISA Affiliate” shall mean any Person who is in the same controlled group of corporations or
who is under common control with KCS (within the meaning of Section 414 of the Code).

     “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended, and the rules and
regulations of the SEC thereunder.

     “Final Resolution of the VAT Claim and Put” shall mean any combination of settlements,
resolutions, agreements or other legal actions which collectively result in KCS or any Affiliate or
GTFM or any GTFM Subsidiary receiving the shares of TFM owned by the Mexican government, without
any appeal or other claim having been brought within one hundred eighty (180) days thereafter by
any governmental agency or other person, and the favorable cancellation of the 1997 Tax audit
carried out by the Mexican Tax Administration Service (Servicio de Administración Tributaria) as a
result of which no additional Tax liability is imposed in connection with the amortization or
deduction of the value of the Concession and Concession related assets and the termination or
dismissal with prejudice, as applicable, of all litigation relating to the VAT Claim and the Put,
or which is otherwise agreed to in writing by KCS, provided KCS receives the consideration provided
for in such written agreement.

     “GAAP” shall mean generally accepted accounting principles, consistently applied, as used in
the United States of America as in effect at the time any applicable financial statements were or
are prepared or any act requiring the application of GAAP was or is performed.

     “Governmental Authority” shall mean any United States, Mexican or foreign government, any
state or other political subdivision thereof, any entity exercising executive, legislative,
judicial, regulatory or administrative functions of or pertaining to government, including the SEC
or any other United States, Mexican or foreign government authority, agency, department, board,
commission or instrumentality of the United States, any state of the United States or any political
subdivision thereof or any foreign jurisdiction, and any court, tribunal or arbitrator(s) of
competent jurisdiction, and any United States, Mexican or foreign governmental or non-governmental
self-regulatory organization, agency or authority (including the NYSE).

     “GTFM Business” shall mean the business and operations of the GTFM Group in the manner in
which the same have been conducted prior to the date hereof, are currently being conducted and are
currently proposed by the GTFM Group to be conducted, whether conducted by GTFM or any of its
Subsidiaries.

     “GTFM Financial Statements” shall mean those financial statements referred to in Section 5.6.

     “GTFM Form 20-F” shall mean the Annual Report on Form 20-F for the year ended December 31,
2003 filed by GTFM with the SEC.

     “GTFM Group” shall mean GTFM and the GTFM Subsidiaries, collectively.

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     “GTFM Material Adverse Effect” shall mean a change, event or occurrence that has had, or is
reasonably likely to have, a material adverse effect on the business, assets, properties,
liabilities, financial condition or results of operations of the GTFM Group taken as a whole other
than any change, event or occurrence resulting from (i) changes in the railroad industry in the UMS
or the United States generally, (ii) changes in general economic conditions in the United States or
the UMS or the securities markets in general, (iii) terrorist activities or the commencement or
escalation of any war or armed hostilities, which do not disproportionately affect the GTFM Group,
or (iv) performance of this Agreement in accordance with its terms.

     “GTFM Subsidiaries” shall mean all of the Subsidiaries of GTFM except Mexrail, Inc. and its
Subsidiaries.

     “GTFM Trademarks” shall mean all trademarks of GTFM and its Subsidiaries.

     “Hazardous Materials” shall mean (i) any petroleum, petroleum products, byproducts or
breakdown products, radioactive materials, asbestos-containing materials or polychlorinated
biphenyls, or (ii) any chemical, material or other substance defined or regulated as toxic or
hazardous or as a pollutant or contaminant or waste under any applicable Environmental Law.

     “HSR Act” means Section 7A of the Clayton Act (Title II of the Hart-Scott-Rodino Antitrust
Improvements Act of 1976, as amended) and the rules and regulations promulgated thereunder.

     “IFRS” shall mean International Financial Reporting Standards, consistently applied as used in
the UMS as in effect at the time any applicable financial statements were or are prepared or any
act requiring compliance with IFRS was or is performed.

     “Income Taxes” shall mean all Taxes, charges, fees, levies or other assessments imposed by any
Taxing Authority and based on or measured solely with respect to income or profits, including any
interest, penalties or additions attributable or imposed with respect thereto.

     “Intellectual Property” shall mean all patents and patent rights, trademarks and trademark
rights, trade names and trade name rights, service marks and service mark rights, service names and
service name rights, brand names, inventions copyrights and copyright rights, processes, formulae,
trade dress, business and product names, logos, slogans, trade secrets, industrial models,
processes, designs, methodologies, computer programs (including all source codes) and related
documentation, technical information, manufacturing, engineering and technical drawings, know-how
and all pending applications for and registrations of patents, trademarks, service marks and
copyrights.

     “Investment Advisers Act” shall mean the Investment Advisers Act of 1940, as amended, and the
rules and regulations of the SEC thereunder.

     “Investment Company Act” shall mean the Investment Company Act of 1940, as amended, and the
rules and regulations of the SEC thereunder.

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     “KCS Assets” shall mean the properties, assets, contracts and rights of any kind, whether
tangible or intangible, real or personal, necessary to enable KCS (prior to the Closing) and the
Surviving Company (after the Closing) to conduct the KCS Business as presently conducted.

     “KCS Business” shall mean the consolidated business and operations of KCS and its Subsidiaries
in the manner in which the same have been conducted prior to the date hereof, are currently being
conducted and are currently proposed by KCS and its Subsidiaries to be conducted, whether conducted
by KCS or any of its Subsidiaries.

     “KCS Disclosure Schedule” shall have the meaning set forth in the introduction to Article 6 of
this Agreement.

     “KCS Material Adverse Effect” shall mean a change, event or occurrence that has had, or is
reasonably likely to have, a material adverse effect on the business, assets, properties,
liabilities, financial condition or results of operations of KCS and its Subsidiaries, taken as a
whole other than any change, event or occurrence resulting from (i) changes in the railroad
industry in the United States generally, (ii) changes in general economic conditions in the United
States or the securities markets in general, (iii) terrorist activities or the commencement or
escalation of any war or armed hostilities, which do not disproportionately affect KCS or its
Subsidiaries, or (iv) performance of this Agreement in accordance with its terms.

     “KCS Stockholder Rights Plan” shall mean the Rights Agreement, dated as of September 19, 1995,
between KCS and Harris Trust & Savings Bank, as Rights Agent.

     “KCS Stock Option Plan” shall mean the 1991 Amended and Restated Stock Option and Performance
Award Plan, as amended and restated effective November 7, 2002.

     “Knowledge” of (a) KCS shall mean actual knowledge after reasonable inquiry of Michael
Haverty, Ronald Russ, Gerald Davies, Larry Lawrence, Jay Nadlman or any other executive officer of
KCS, and (b) TMM, TMMH or MM shall mean actual knowledge after reasonable inquiry by José Segovia
Serrano, Javier Segovia Serrano, Juan Fernández Galeazzi, Jacinto Marina Cortes, Mario Mohar Ponce,
or any executive officer of TMM, TMMH or MM.

     “Law” shall mean any U.S., Mexican or foreign federal, state or local statute, law (whether
statutory or common law), ordinance, rule, administrative interpretation, regulation, order, writ,
injunction, directive, judgment, decree, policy, guideline or other requirement or arbitration
award or finding (including those of the NYSE or any other applicable self-regulatory
organization).

     “Losses” shall have the meaning set forth in Section 10.2(a) of this Agreement.

     “MM Subsidiaries” shall mean GTFM and the GTFM Subsidiaries.

     “NYSE” shall mean the New York Stock Exchange, Inc.

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     “Permitted Encumbrance” shall mean (i) liens reflected in the GTFM Financial Statements, (ii)
liens imposed by operation of law and not for borrowed money, such as materialmen’s, mechanics’,
workers’, repairmen’s, employees’, carriers’, vendors’ warehousemen’s and other like liens that are
insignificant, individually and in the aggregate, to the operation of the GTFM Business, and (iii)
liens incurred in the ordinary course of business and not for borrowed money that are
insignificant, individually and in the aggregate, to the operation of the GTFM Business.

     “Person” shall mean any individual, firm, corporation, partnership (limited or general),
limited liability company, joint venture, association, trust or other entity.

     “Put” shall mean the right (currently being contested through legal proceedings) of the
Federal Government of the United Mexican States under the Put Agreement to compel purchase of the
shares of TFM held by the government.

     “Put Agreement” shall mean the Agreement between the Federal Government of the United Mexican
States, GTFM, TMM and KCS, dated June 9, 1997.

     “Put Assignment Agreement” shall mean the Agreement of Assignment and Assumption of Rights,
Duties and Obligations among TMM, KCS and TFM dated as of the date of this Agreement.

     “Put Purchase Price” shall mean the purchase price for the 20% of TFM stock held by the
Federal Government of the United Mexican States, as defined in the Put Agreement and calculated
under the Twenty-Sixth Clause of the Stock Purchase Agreement.

     “Releases” shall mean the mutual Release agreements, dated the date hereof (which shall become
effective at the Closing or as otherwise specified therein) between KCS, TMM, certain of their
respective Affiliates and other parties identified therein.

     “Release Resolutions” shall mean the resolutions, in the form attached hereto as Exhibit C,
adopted by the respective Boards of Directors identified therein.

     “SEC” shall mean the Securities and Exchange Commission, and any successor thereto.

     “Securities” shall mean any securities as defined in the Securities Act.

     “Securities Act” shall mean the Securities Act of 1933, as amended, and the rules and
regulations of the SEC thereunder.

     “Securities Laws” shall mean the Securities Act, the Exchange Act, the Investment Company Act,
the Investment Advisers Act, all applicable state “blue sky” laws, all applicable Mexican and
foreign securities laws, and the rules and regulations promulgated thereunder.

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     “Seller Material Adverse Effect” shall mean a change, event or occurrence that has had, or is
reasonably likely to have, a material adverse effect on the business, assets, properties,
liabilities, financial condition or results of operations of Sellers and their Subsidiaries, taken
as a whole other than any change, event or occurrence resulting from (i) changes in the railroad
industry in the United States generally, (ii) changes in general economic conditions in the United
States or the securities markets in general, (iii) terrorist activities or the commencement or
escalation of any war or armed hostilities, which do not disproportionately affect a Seller or any
of its Subsidiaries, or (iv) performance of this Agreement in accordance with its terms.

     “Subsidiary” of a Person shall mean any other Person more than 50% of the voting stock (or of
any other form of other voting or controlling equity interest in the case of a Person that is not a
corporation) of which is beneficially owned by the Person directly or indirectly through one or
more other Persons.

     “Tax” and “Taxes” shall mean all U.S. and Mexican federal, provincial, territorial, state,
municipal, local, foreign or other taxes, imposts, rates, levies, assessments, contributions and
other similar charges (and all interest and penalties thereon and additions thereto imposed by any
Governmental Authority), including all income, excise, franchise, gains, capital, real property,
goods and services, transfer, value added, gross receipts, windfall profits, severance, ad valorem,
personal property, production, sales, use, license, stamp, documentary stamp, mortgage recording,
employment, payroll, social security (IMSS), housing, unemployment, disability, estimated or
withholding taxes, housing fund (Infonavit), retirement fund contributions (SAR) and all customs
and import duties.

     “Tax Return” shall mean any and all returns, reports, declarations, information statements,
schedules or other documents required to be provided by GTFM or any of its Subsidiaries with
respect to Taxes to any Governmental Authority or Tax authority or agency, whether U.S., Mexican or
foreign.

     “Taxing Authority” shall mean any government authority, U.S., Mexican or other, having
jurisdiction over the assessment, determination, collection, or other imposition of Taxes.

     “TFM” shall mean TFM, S.A. de C.V.

     “U.S.” means the United States of America.

     “VAT” means the Mexican value added tax.

     “VAT Claim” means TFM’s claim against the Mexican Treasury for the refund of a VAT payment in
the original principal amount of 2,111,111,790 pesos, plus indexation and interest.

     “VAT Payment” means the shares or cash compensation received by TFM or its designee from the
Mexican government on the VAT Claim.

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     “Volume Weighted Price” means the average trading price per share for KCS Common Stock on the
NYSE, as reported on Bloomberg (VAP function), for the twenty (20) consecutive trading days
immediately preceding the later of (i) the Closing Date, or (ii) the date of the public
announcement by KCS of the Final Resolution of the VAT Claim and Put.

     “Voting Trust” means the irrevocable Trust Agreement dated as of December 15, 2004, among José
Francisco Serrano Segovia, Ramón Serrano Segovia, Teresa Serrano Segovia, and Servicios Directivos
Servia, S.A. de C.V., as settlors and beneficiaries, and Ixe Banco,
S.A., Institución de Banca
Múltiple, Ixe Grupo Financiero, División Fiduciaris, as trustee, with the acknowledgement and
agreement of TMM, TMMH and MM.

ARTICLE 12

MISCELLANEOUS

     Section 12.1 Amendments; Waiver. This Agreement may not be amended, altered or modified except by
written instrument executed by KCS and TMM. KCS and TMM may amend this Agreement without notice to
or the consent of any other Party and any third party. Any agreement on the part of KCS and TMM to
waive (i) any inaccuracies in any representation and warranty contained herein or in any document,
certificate or writing delivered pursuant hereto, or (ii) compliance with any of the agreements,
covenants or conditions contained herein, shall be valid only if set forth in an instrument in
writing signed on behalf of the party against whom the waiver is to be effective. No such waiver
shall constitute a waiver of, or estoppel with respect to, any subsequent or other inaccuracy,
breach or failure to strictly comply with the provisions of this Agreement. Any delay or omission
on the part of KCS or TMM to exercise any right hereunder shall not in any manner impair the
exercise of any right accruing to it hereafter.

     Section 12.2 Entire Agreement. This Agreement (including the Seller Disclosure Schedule, the KCS
Disclosure Schedule, any other exhibits, schedules, certificates, lists and documents referred to
herein, and any other agreements or documents executed by the Parties simultaneously herewith or
pursuant thereto), the Ancillary Agreements, the Consulting Agreement and the Confidentiality
Agreements shall constitute the entire agreement of the Parties with respect to the subject matter
hereof and thereof and to the extent this Agreement (as defined in this Section 12.2) is in
conflict with any prior agreements or understandings, written and oral, among the Parties, this
Agreement shall prevail. Upon Closing, the following agreements shall be deemed terminated
notwithstanding any provisions therein to the contrary: Letter of Intent, dated August 28, 1995,
between TMM and KCS; the Joint Venture Implementation Agreement, dated September 7, 1995, between
TMM and KCS; the undated Letter of Understanding between TMM and KCS; the Shareholders Agreement
dated as of May 1997, by and among KCS, Caymex, Grupo Servia, S.A. de C.V., TMM and MM; Management
Services Agreements between KCS and TFM, dated May 9, 1997,
and between TMM and TFM, dated May 9, 1997 (as such agreements have been amended and extended from
time to time).

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     Section 12.3 Interpretation.

     (a) The Recitals, Exhibits and Schedules to this Agreement are incorporated by reference into,
and are deemed to be part of, this Agreement. When a reference is made in this Agreement to
Sections, Exhibits or Schedules, such reference shall be to a Section of or an Exhibit or a
Schedule to this Agreement unless otherwise indicated. The table of contents and headings contained
in this Agreement are for reference purposes only and shall not affect in any way the meaning or
interpretation of this Agreement. Whenever the words “include,” “includes” or “including” are used
in this Agreement, they shall be deemed to be followed by the words “without limitation.” The word
“shall” when used in this Agreement is a word of mandate, construed as “must.” Unless expressly
stated otherwise, all references to “Dollars” or “$” in this Agreement shall mean U.S. dollars.

     (b) Each of the Seller Disclosure Schedule and the KCS Disclosure Schedule shall set forth
items the disclosure of which is necessary or appropriate either in response to an express
disclosure requirement contained in a provision hereof or as an exception to one or more of such
Party’s representations or warranties or one or more of its covenants contained in this Agreement,
in each case making reference to the particular subsection of this Agreement requiring such
disclosure or to which such exception is being taken.

     (c) This Agreement is written in the English language. The Parties waive any rights they may
have under Applicable Law to have this Agreement or any of the Ancillary Agreements made in any
language other than English; provided to the extent that any such waiver shall not be valid under
Applicable Law, the Parties agree that in case of any ambiguity or contradiction between the
English language version of this Agreement and any translation into any other language, that the
English language version shall control.

     Section 12.4 Severability. Any term or provision of this Agreement which is invalid or
unenforceable in any jurisdiction shall, as to that jurisdiction, be ineffective to the extent of
such invalidity or unenforceability without rendering invalid or unenforceable the remaining terms
and provisions of this Agreement or affecting the validity or enforceability of any of the terms or
provisions of this Agreement in any other jurisdiction. If any provision of this Agreement is so
broad as to be unenforceable, the provision shall be interpreted to be only so broad as is
enforceable.

     Section 12.5 Notices. Unless otherwise provided herein, all notices and other communications
hereunder shall be in writing and shall be deemed given if (a) delivered in person, (b) transmitted
by facsimile (with written confirmation), or (c) delivered by an express courier (with written
confirmation) to
the Parties at the following addresses (or at such other address for a Party as shall be
specified by like notice):

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If to Sellers:

Grupo TMM, S.A.,

Avenida de la Cúspide, No. 4755

Colonia Parques del Pedregal

14010 Mexico, D.F.

Attention: Corporate Secretary

CT Corporation

111 Eighth Avenue

New York, New York 10011

With a copy (which shall not constitute notice) to:

Milbank, Tweed, Hadley & McCloy LLP

One Chase Manhattan Plaza

New York, New York 10005

Attention: Thomas C. Janson, Esq.

If to KCS:

By U.S. Mail:

Kansas City Southern

P.O. Box 219335

Kansas City, MO 64121-9335

Attention: Senior Vice President and General Counsel

By Delivery Service:

Kansas City Southern

427 West 12th Street

Kansas City, MO 64105

Attention: Senior Vice President and General Counsel

With a copy (which shall not constitute notice) to:

Sonnenschein Nath & Rosenthal LLP

4520 Main Street, Suite 1100

Kansas City, MO 64111

Attention: John F. Marvin, Esq.

     Any Party hereto may from time to time change its address for notices under this Section 12.5 by
giving at least ten (10) days’ notice of such changed address to the other Parties hereto.

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     Section 12.6 Headings. The headings herein are for convenience only, do not constitute a part
of this Agreement and shall not be deemed to limit or affect any of the provisions of this
Agreement.

     Section 12.7 Binding Effect; Persons Benefiting; No Assignment. This Agreement shall inure to
the benefit of and be binding upon the Parties and their respective successors and assigns. No
provision of this Agreement is intended or shall be construed to confer upon any entity or Person
other than the Parties and their respective successors and permitted assigns any right, remedy or
claim under or by reason of this Agreement or any part hereof. This Agreement may not be assigned
by any of the Parties without the prior written consent of the other Parties.

     Section 12.8 No Third Party Beneficiaries. This Agreement is intended for the benefit of the
Parties hereto and their respective permitted successors and assigns and is not for the benefit of,
nor may any provision of this Agreement be enforced by, any other Person.

     Section 12.9 Counterparts. This Agreement may be executed in two or more counterparts, each
original or facsimile of which shall be deemed an original, but all of which taken together shall
constitute one and the same agreement, it being understood that all of the Parties need not sign
the same counterpart.

     Section 12.10 Specific Enforcement. The Parties acknowledge and agree that irreparable damage
would occur in the event that any of the provisions of this Agreement were not performed in
accordance with their specific terms or were otherwise breached. It is accordingly agreed that
each of the Parties hereto shall be entitled to an injunction or injunctions to prevent or cure
breaches of the provisions of this Agreement by the other and to enforce specifically the terms and
provisions of this Agreement, this being in addition to any other remedy to which they may be
entitled by law or equity. The Parties agree that each Party shall have the right to apply for any
of the prejudgment measures (medidas cautelares) to which the Parties may be entitled to under the
applicable law of the UMS to prevent or cure breaches of the provisions of this Agreement and to
enforce specifically the terms and provisions of this Agreement. The Parties agree that actions
with respect to any such prejudgment measures (medidas cautelares) may be instituted in any local
or federal civil courts of the UMS which has proper jurisdiction to enforce those prejudgment
measures (medidas caultelares).

     Section 12.11 Governing Law; Dispute Resolution.

     (a) Resolution of any and all disputes between KCS and one or more of Sellers (each of KCS, on
the one hand, and one or more of the Sellers, on the other hand, a “Dispute Party” and together,
the “Dispute Parties”) arising from or in connection with this Agreement (except those to be
resolved pursuant to Section 10.5(e)), the Ancillary Agreements or any transactions contemplated by
this Agreement or the Ancillary Agreements, whether based on contract, tort, common law, equity,
statute, regulation, order or otherwise, (“Disputes”) including Disputes arising in connection with
claims by third persons, shall be exclusively governed by and settled in accordance with the
provisions of this Section 12.11; provided, that the foregoing shall not

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preclude equitable or
other judicial relief to enforce the provisions hereof or to preserve the status quo pending
resolution of Disputes hereunder.

     (b) THIS AGREEMENT, THE LEGAL RELATIONS BETWEEN THE PARTIES HERETO AND THE ADJUDICATION AND
ENFORCEMENT THEREOF, SHALL BE GOVERNED BY AND INTERPRETED AND CONSTRUED IN ACCORDANCE WITH THE
SUBSTANTIVE LAWS OF THE STATE OF DELAWARE AND THE FEDERAL LAWS OF THE UNITED STATES OF AMERICA,
WITHOUT REGARD TO APPLICABLE CHOICE OF LAW PROVISIONS.

     (c) As to any Dispute which is not resolved in the ordinary course of business, the Dispute
Parties shall first attempt in good faith to promptly resolve any Dispute by negotiations between
executives. Either of the Dispute Parties may initiate this procedure by delivery of written
notice of the Dispute (the “Dispute Notice”) to the other. Not later than twenty (20) days after
delivery of the Dispute Notice, one executive of one of the Dispute Parties with authority to
settle the Dispute shall meet with one executive of the other Dispute Party with authority to
settle the Dispute at a reasonably acceptable time and place, and thereafter as such executives
shall deem reasonably necessary. The executives shall exchange relevant information and endeavor
to resolve the Dispute. Prior to any such meeting, each Dispute Party’s executive shall advise the
other as to any individuals who will attend such meeting with the executive. All negotiations
pursuant to this Section 12.11(c) shall be confidential and shall be treated as compromise
negotiations for purposes of Rule 408 of the Federal Rules of Evidence and similarly under other
local or foreign rules of evidence.

     (d) Each Dispute Party hereby agrees to submit all Disputes not resolved pursuant to Section
12.11(c) to final and binding arbitration in New York, New York. Either Dispute Party may initiate
such arbitration by delivery of a demand therefor (the “Arbitration Demand”) to the other Dispute
Party not sooner than sixty (60) days after the date of delivery of the Dispute Notice but promptly
thereafter; provided, that if a Dispute Party rejects participation in the procedures provided
under Section 12.11(c), the other Dispute Party may initiate arbitration at such earlier time as
such rejection shall become reasonably apparent, and, whenever arbitration is initiated, may seek
recovery of any damages or expenses arising from such rejection, including attorney’s fees and
expenses, Arbitration Costs (as defined below) in connection with arbitration hereunder.

          (i) Three (3) Arbitrators shall be appointed (the “Arbitrators”), one of whom shall be
appointed by KCS, one by TMM, and the third of whom, who shall act as the chairman of the arbitral
tribunal, shall be appointed by the first two (2) Arbitrators within ten (10) Business Days of the
first two (2) Arbitrators confirmation by the American Arbitration Association. Each Party agrees
that Sellers shall be considered jointly as one side for the purposes of constitution of the
arbitration tribunal hereunder. If either Dispute Party fails to appoint an Arbitrator within ten
(10) Business Days of a request in writing by the other Dispute Party to do so or if the first two
Arbitrators cannot agree on the appointment of the third Arbitrator within ten (10) Business Days
of their confirmation by the American Arbitration Association, then such

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           Arbitrator shall be
appointed by the American Arbitration Association in accordance with its Commercial Arbitration
Rules. As soon as the arbitration tribunal has been convened, a hearing date shall be set within
fifteen (15) days thereafter; provided, that the Arbitrators may extend the date of the hearing
upon request of any Dispute Party to the extent necessary to insure that such Dispute Party is
given a reasonable period of time to prepare for the hearing. Written submittals in the English
language shall be presented and exchanged by both Dispute Parties five (5) Business Days before the
hearing date. At such time the Dispute Parties shall also exchange copies of all documentary
evidence upon which they will rely at the arbitration hearing and a list of the witnesses whom they
intend to call to testify at the hearing. The Arbitrators shall make their determination as
promptly as practicable after conclusion of the hearing.

          (ii) The arbitration shall be conducted in the English language pursuant to the Commercial
Arbitration Rules of the American Arbitration Association. Notwithstanding the foregoing, (A) each
Dispute Party shall have the right to audit the books and records of the other Dispute Party that
are reasonably related to the Dispute; (B) each Dispute Party shall provide to the other,
reasonably in advance of any hearing, copies of all documents which a Dispute Party intends to
present in such hearing; (C) all hearings shall be conducted on an expedited schedule; and (D) all
proceedings shall be confidential, except that either Dispute Party may at its expense make a
stenographic record thereof.

          (iii) The Arbitrators shall endeavor to complete all hearings not later than one hundred
twenty (120) days after their tribunal has been convened, and shall make a final award as promptly
as practicable thereafter. Such award shall be communicated, in writing, by the Arbitrators to the
Dispute Parties, and shall contain specific findings of fact and conclusions of law in accordance
with the governing law set forth in Section 12.11(b) of this Agreement. Any award of such
Arbitrators shall be final and binding upon the Parties to this Agreement and shall not be attacked
by any of the Parties to this Agreement in any court of law and may be enforced in any court having
jurisdiction, including expressly the courts of the State of New York, United States of America,
and the courts of the Federal District of Mexico. Any such award shall include appropriate
instructions to the Escrow Agent under the Closing Escrow Agreement. The Arbitrators shall
apportion all costs and expenses of the arbitration, including the Arbitrators’ fees and expenses,
fees and expenses of experts and fees and expenses of translators (“Arbitration Costs”) between the
prevailing and non-prevailing Dispute Party as the Arbitrators shall deem fair and reasonable. In
circumstances where (A) a Dispute has been asserted or defended against on grounds that the
Arbitrators deem manifestly unreasonable, or (B) the
non-prevailing Dispute Party has rejected participation in procedures under Section 12.11(c), the
Arbitrators may assess all Arbitration Costs against the non-prevailing Dispute Party and may
include in the award the prevailing Dispute Party’s attorney’s fees and expenses in connection with
any and all proceedings under this Section 12.11. Notwithstanding the foregoing, in no event may
the Arbitrators award multiple or punitive damages.

     (e) Pursuant to an agreement of the Parties hereto or a judicial determination that a Dispute
is not subject to final and binding arbitration as set forth in Section 12.11, KCS and each of
Sellers irrevocably agrees that any legal action or proceeding against it with respect to

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this
Agreement and any transaction contemplated by this Agreement shall be brought only in the courts of
the State of New York, or of Federal courts of the United States of America sitting in New York,
and by execution and delivery of this Agreement, KCS and each of Sellers irrevocably submits to the
venue and jurisdiction of each such court and irrevocably waives any objection or defense such
Party may have to venue or personal jurisdiction in any such court for the purpose of resolving any
claim, dispute, cause of action arising out of or related to this Agreement (including any claim
that the suit or action has been brought in an inconvenient forum and any right to which it may
become entitled on account of place of residence or domicile), the alleged breach of this
Agreement, the enforcement of the terms of this Agreement, the Acquisition, the Ancillary
Agreements and the other terms contemplated hereby and thereby. A final judgment in any suit,
action or proceeding shall be conclusive and may be enforced in any court where jurisdiction over
the Parties may be had or in which the Parties are subject to service of process.

     (f) Each of the Parties irrevocably appoints CT Corporation (the “Process Agent”), at 111
Eighth Avenue, New York, New York 10011 (212-894-8940), respectively, as its agent and true and
lawful attorney-in-fact in its name, place and stead to accept on behalf of each of the Parties and
their respective properties and revenues, service of copies of the summons and complaint and any
other process which may be served in any such suit, action or proceeding brought in the State of
New York, and each of the Parties hereto agrees that failure of the Process Agent to give any
notice of any such service of process to any of the Parties hereto shall not impair or affect the
validity of such service or the enforcement of any judgment based thereon.

     Section 12.12 Announcements. KCS and TMM shall consult with each other before issuing, and
provide each other the opportunity to review, comment on and concur with, any press release or
other public statement with respect to this Agreement, the Acquisition, the Ancillary Agreements
and the other transactions contemplated hereby and thereby, except as either Party may determine is
otherwise required by Applicable Law, judicial or administrative action or any requirement of the
NYSE or any other applicable self-regulatory organization.

     Section 12.13 Termination Fee. In the event of (i) a termination pursuant to Section 9.1(a)(v),
the Party experiencing the Change of Control shall promptly after a demand therefor remit to the
Party terminating in
immediately available funds the sum of Eighteen Million Dollars ($18,000,000), and (ii) a
termination pursuant to Section 9.1(a)(iii) or 9.1(a)(iv) as a result of the failure of the
stockholders of KCS or of TMM to approve the Acquisition if at or prior to the meeting of such
stockholders to approve the Acquisition, the Board of Directors of KCS, in the case of the KCS
stockholders’ meeting, or the Board of Directors of TMM, in the case of the TMM stockholders’
meeting, shall have failed to recommend or shall have withdrawn and not reinstated its
recommendation of, the Acquisition, then the Party whose stockholders shall not have approved the
Acquisition shall remit to the other Party, if the other Party elects to terminate and promptly
after a demand therefor, in immediately available funds, the sum of Eighteen Million Dollars
($18,000,000). The receipt of any sums pursuant to this Section 12.13 shall not preclude or
diminish any other rights a Party may have under this Agreement.

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     IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed as of the date first
above written.

	 	 	 	 	 
	 	KANSAS CITY SOUTHERN

 	 
	 	By:  	/s/
Michael R. Haverty 	 
	 	 	Name:  	Michael R. Haverty 	 
	 	 	Title:  	Chairman, President & CEO 	 
	 
	 	KARA Sub, Inc.
 	 
	 	By:  	/s/
Ronald G. Russ 	 
	 	 	Name:  	Ronald G. Russ 	 
	 	 	Title:  	Vice President 	 
	 
	 	KCS INVESTMENT I, LTD.

 	 
	 	By:  	/s/
Ronald G. Russ 	 
	 	 	Name:  	Ronald G. Russ 	 
	 	 	Title:  	Vice President	 

-73-

 

	 	 	 	 	 
	 	KCS ACQUISITION SUBSIDIARY, INC.

 	 
	 	By:  	/s/ Ronald G. Russ 	 
	 	 	Name:  	Ronald G. Russ 	 
	 	 	Title:  	Vice President 	 
	 
	 	CAYMEX TRANSPORTATION, INC.

 	 
	 	By:  	/s/
Jay M. Nadlman	 
	 	 	Name:  	Jay M. Nadlman	 
	 	 	Title:  	Vice President and Secretary	 
	 
	 	GRUPO TMM, S.A.

 	 
	 	By:  	/s/
Jose Francisco Serrano Segovia	 
	 	 	Name:  	Jose Francisco Serrano Segovia	 
	 	 	Title:  	Attorney in Fact	 
	 
	 	 	 
	 	By:  	/s/
Javier Segovia Serrano	 
	 	 	Name:  	Javier Segovia Serrano	 
	 	 	Title:  	Attorney in Fact	 
	 
	 	TMM HOLDINGS, S.A. de C.V.

 	 
	 	By:  	/s/
Jose Francisco Serrano Segovia	 
	 	 	Name:  	Jose Francisco Serrano Segovia	 
	 	 	Title:  	Attorney in Fact	 
	 
	 	 	 
	 	By:  	/s/
Javier Segovia Serrano	 
	 	 	Name:  	Javier Segovia Serrano	 
	 	 	Title:  	Attorney in Fact	 
	 

	 	 	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

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	 	TMM MULTIMODAL, S.A. de C.V.

 	 
	 	By:  	/s/
Jose Francisco Serrana Segovia	 
	 	 	Name:  	Jose Francisco Serrana Segovia	 
	 	 	Title:  	Attorney in Fact	 
	 
	 	 	 
	 	By:  	/s/
Javier Segovia Serrano	 
	 	 	Name:  	Javier Segovia Serrano	 
	 	 	Title:  	Attorney in Fact	 
	 
	 	GRUPO TRANSPORTACION FERROVIARIA

MEXICANA, S.A. de C.V.

 	 
	 	By:  	/s/
Jose Francisco Serrano Segovia	 
	 	 	Name:  	Jose Francisco Serrano Segovia	 
	 	 	Title:  	Attorney in Fact	 
	 
	 	 	 
	 	By:  	/s/ Javier
Segovia Serrano	 
	 	 	Name:  	Javier
Segovia Serrano	 
	 	 	Title:  	Attorney in Fact	 
	 

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