Document:

exv10w3

EXHIBIT 10.3

EXECUTION COPY

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

$200,000,000 121/2% Senior Notes due 2016

PLACEMENT AGREEMENT

March 24, 2009

 

 

March 24, 2009

Banc of America Securities LLC

Scotia Capital (USA) Inc.

SunTrust Robinson Humphrey, Inc.

DVB Capital Markets LLC

			
	c/o	 	Banc of America Securities LLC

One Bryant Park

New York, New York 10036

Dear Sirs and Mesdames:

     Kansas City Southern de México, S.A. de C.V. (formerly known as TFM, S.A. de C.V.) (the
"Company”), a sociedad anónima de capital variable organized under the laws of the United Mexican
States (“Mexico”), proposes to issue and sell to the several purchasers named in Schedule I hereto
(the “Placement Agents”), acting through Banc of America Securities LLC as representative (the
"Representative”), $200,000,000 aggregate principal amount of its 121/2% Senior Notes due April 1,
2016 (the “Securities”) to be issued pursuant to the provisions of an Indenture to be executed on
or about March 30, 2009 (the “Indenture”) between the Company and U.S. Bank National Association,
as Trustee (the “Trustee”).

     The Securities will be offered without being registered under the Securities Act of 1933, as
amended (the “Securities Act”), to qualified institutional buyers in compliance with the exemption
from registration provided by Rule 144A under the Securities Act, in offshore transactions in
reliance on Regulation S under the Securities Act (“Regulation S”) and to institutional accredited
investors (as defined in Rule 501(a)(1), (2), (3) or (7) under the Securities Act) that deliver a
letter in the form annexed to the Final Memorandum (as defined below).

     The Placement Agents and their direct and indirect transferees will be entitled to the
benefits of a Registration Rights Agreement to be executed on or about March 30, 2009 between the
Company and the Placement Agents (the “Registration Rights Agreement”).

     In connection with the sale of the Securities, the Company has prepared a preliminary offering
memorandum (the “Preliminary Memorandum”) and will prepare a final offering memorandum (the “Final
Memorandum” and, with the Preliminary Memorandum, each a “Memorandum”) including or incorporating
by reference a description of the terms of the Securities, the terms of the offering and a
description of the Company. “Time of Sale Memorandum” means the Preliminary Memorandum together
with the information set forth on Schedule II

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to this Agreement that has been prepared and delivered by the Company to the Placement Agents
in connection with the offering of the Securities. The “Applicable Time” means 5:31 p.m. Eastern
Standard Time on March 24, 2009. Reference to “this Agreement” shall mean this Placement
Agreement.

     1. Representations and Warranties. The Company represents and warrants to, and agrees with,
you that:

     (a) (i) The Time of Sale Memorandum, at the Applicable Time, did not contain any
untrue statement of a material fact or omit to state a material fact necessary to make the
statements therein, in the light of the circumstances under which they were made, not
misleading, (ii) the Preliminary Memorandum does not contain and the Final Memorandum will
not contain any untrue statement of a material fact or omit to state a material fact
necessary to make the statements therein, in the light of the circumstances under which
they were made, not misleading, and (iii) the statements under the caption “Recent
Developments” in the Time of Sale Memorandum do not, and the statements under the caption
“Recent Developments” in the Final Memorandum will not, contain any untrue statement of a
material fact or omit to state a material fact necessary to make the statements therein,
in the light of the circumstances under which they were made, not misleading, except that
the representations and warranties set forth in this paragraph do not apply to statements
or omissions in the Time of Sale Memorandum or either Memorandum based upon information
relating to any Placement Agent furnished to the Company in writing by such Placement
Agent through you expressly for use therein.

     (b) The Company has been duly incorporated, is validly existing as a sociedad anónima
de capital variable under the laws of Mexico in good standing (to the extent applicable),
has the corporate power and authority to own, lease and operate its property and to
conduct its business as described in the Time of Sale Memorandum and each Memorandum and
is duly qualified to transact business and is in good standing (to the extent applicable)
in each jurisdiction in which the conduct of its business or its ownership or leasing of
property requires such qualification, except to the extent that the failure to be so
qualified or be in good standing (to the extent applicable) would not have a material
adverse effect on the Company and its subsidiaries, taken as a whole.

     (c) Each of the subsidiaries of the Company has been duly organized, is validly
existing and in good standing (to the extent applicable) under the laws of the
jurisdiction of its incorporation, has the corporate power and authority to own, lease and
operate its property and to conduct its business as described in the Time of Sale
Memorandum and

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each Memorandum and is duly qualified to transact business and is in good standing
(to the extent applicable) in each jurisdiction in which the conduct of its business or
its ownership or leasing of property requires such qualification, except to the extent
that the failure to be so qualified or be in good standing (to the extent applicable)
would not have a material adverse effect on the Company and its subsidiaries, taken as a
whole; all of the issued shares of capital stock of each of the subsidiaries held by the
Company have been duly and validly authorized and issued, are fully paid and
non-assessable and are owned directly or indirectly by the Company, free and clear of all
liens, encumbrances, equities or claims.

     (d) This Agreement has been duly authorized, executed and delivered by the Company.

     (e) The capitalization of the Company conforms as to legal matters to the description
thereof contained in the Time of Sale Memorandum and the Final Memorandum.

     (f) The Securities have been duly authorized and, when executed and authenticated in
accordance with the provisions of the Indenture and delivered to and paid for by the
Placement Agents in accordance with the terms of this Agreement, will be valid and binding
obligations of the Company, enforceable in accordance with their terms, subject to
applicable concurso mercantil, bankruptcy, insolvency and similar laws affecting
creditors’ rights generally and equitable principles of general applicability, and will be
entitled to the benefits of the Indenture pursuant to which such Securities are to be
issued, and the Registration Rights Agreement.

     (g) The execution and delivery by the Company of, and the performance by the Company
of its obligations under this Agreement, the Indenture, the Registration Rights Agreement
and the Securities (the “Transaction Documents”) and the consummation of the transactions
contemplated therein have been duly authorized by the Company, the Company has all power
and authority to execute, deliver and perform its obligations under the Transaction
Documents and the execution, delivery and performance by the Company of its obligations
under the Transaction Documents and the consummation of the transactions contemplated
therein, including, without limitation, the application of the proceeds from the sale of
the Securities as described in the Memorandum and the Time of Sale Memorandum, will not
(i) contravene, conflict with or constitute a breach of, or default under any provision of
(x) the estatutos sociales or any other organizational document of the Company or any of
its subsidiaries, (y) the Concession (as defined below) or any law applicable to the
Company and its operations (including, without limitation, its

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subsidiaries) or (z) any agreement or other instrument binding upon the Company, any
of its subsidiaries or Kansas City Southern (“KCS”) that is included in or incorporated
by reference into the Annual Report on Form 10-K of the Company or KCS, (ii) result in an
event or condition which gives the holder of any note, debenture, or other evidence of
indebtedness that is included in or incorporated by reference into the Annual Report on
Form 10-K of the Company or KCS (or any person acting on such holder’s behalf) the right
to require the repurchase, redemption or repayment of all or a portion of such
indebtedness by the Company or any of its subsidiaries, or (iii) contravene, conflict with
or constitute a breach of, or default under any judgment, order or decree of any
governmental body, agency or court having jurisdiction over the Company or any of its
subsidiaries and their respective operations, except to the extent that such violation,
breach or default described in this item (iii) would not have a material adverse effect on
the Company and its subsidiaries, taken as a whole.

     (h) No consent, approval, authorization or order of, or qualification with, any
governmental body or agency is required for the performance by the Company of its
obligations under the Transaction Documents, except (i) such as may be required (x) by the
securities or Blue Sky laws of the various states in connection with the offer and sale of
the Securities, (y) by U.S. Federal and state securities laws with respect to the
Company’s obligations under the Registration Rights Agreement, and (z) the filing of a
notice with the Comisión Nacional Bancaria y de Valores of Mexico (the “CNBV”) regarding
the issuance of the Securities and the terms thereof, such filing to be delivered by the
Company to the CNBV prior to the Closing Date, and (ii) such consents, approvals,
authorizations, filings or orders as have been obtained.

     (i) The Company holds a valid concession title granted in 1997 for a period of 50
years, which may be renewed under certain conditions for an additional period of up to 50
years, to provide freight transportation services over its rail lines as described in the
Time of Sale Memorandum and the Final Memorandum (the “Concession”). The Concession is
currently, and has at all times since its granting been, in full force and effect and no
proceeding to revoke, suspend or lapse the effectiveness of the Concession is pending
before or, to the Company’s knowledge, threatened by any Mexican federal governmental
authority. Except for the rights held by the government of Mexico as described in the
Time of Sale Memorandum and the Final Memorandum, the Concession and the Company’s rights
deriving therefrom are free and clear of any liens and encumbrances.

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     (j) The Company and each of its subsidiaries own, possess or has obtained all
licenses, permits, certificates, consents, orders, approvals and other authorizations
from, including, without limitation, the Concession, and has made all declarations and
filings with, all federal, state, local and other governmental authorities (including
foreign regulatory agencies), all self-regulatory organizations and all courts and other
tribunals, domestic or foreign, 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
as described in the Time of Sale Memorandum and the Final Memorandum, except to the extent
that the failure to own, possess or obtain such licenses, permits, certificates, consents,
orders, approvals and other authorizations would not have a material adverse effect on the
Company and its subsidiaries, taken as a whole; and neither the Company nor any of its
subsidiaries has received any notice of any proceeding relating to revocation or
modification of any such license, permit, certificate, consent, order, approval or other
authorization which, individually or in the aggregate, if subject to an unfavorable or
adverse decision or ruling, would reasonably be expected to result in a material adverse
effect on the Company and its subsidiaries, taken as a whole.

     (k) The historical audited consolidated financial statements and notes thereto of the
Company included, or incorporated by reference, in the Time of Sale Memorandum and the
Final Memorandum (i) have been prepared in accordance with U.S. generally accepted
accounting principles (“U.S. GAAP”) (prior historical audited consolidated financial
statements and notes of the Company prepared in accordace with International Financial
Reporting Standards (“IFRS”) have been re-stated in accordance with U.S. GAAP), (ii)
present fairly in all material respects the financial condition, results of operations and
cash flows of the Company and each of its subsidiaries taken as a whole, and (iii) comply
as to form in all material respects with the applicable accounting requirements of the
Securities Act which would be applicable if the offer were regulated under the Securities
Act; the summary financial data in the Time of Sale Memorandum and the Final Memorandum,
including all items reconciled to U.S. GAAP, fairly present, on the basis stated in the
Time of Sale Memorandum and the Final Memorandum, the information included therein. No
other financial statements are required to be included in the Time of Sale Memorandum or
the Final Memorandum.

     (l) The Company and each of its subsidiaries maintain a system of internal accounting
controls sufficient to provide reasonable assurance that (i) transactions are executed in
accordance with management’s general or specific authorizations; (ii) all transactions are
recorded as necessary to permit preparation of financial statements in U.S.

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GAAP and to maintain asset accountability; (iii) access to assets is permitted only
in accordance with management’s general or specific authorization; and (iv) the recorded
accountability for assets is compared with the existing assets at reasonable intervals and
appropriate action is taken with respect to any differences.

     (m) KPMG Cárdenas Dosal, S.C., who has audited the consolidated financial statements
of the Company and its subsidiaries and delivered its report with respect to the
consolidated financial statements of the Company and its subsidiaries as of December 31,
2006 included, or incorporated by reference, in the Time of Sale Memorandum and the Final
Memorandum, are independent public accountants with respect to the Company within the
meaning and as required by the Securities Act and all the applicable rules and regulations
published thereunder. KPMG LLP (“KPMG”), who has audited the consolidated financial
statements of the Company and its subsidiaries and delivered its report with respect to
the consolidated financial statements of the Company and its subsidiaries as of December
31, 2007 and December 31, 2008 included, or incorporated by reference, in the Time of Sale
Memorandum and the Final Memorandum, are independent public accountants with respect to
the Company within the meaning and as required by the Securities Act and all the
applicable rules and regulations published thereunder.

     (n) The Company and each of its subsidiaries has filed all tax returns (foreign,
national, local or other) required to be filed and has paid all taxes required to be paid
by it and any other assessment, fine or penalty levied against it, to the extent that any
of the foregoing is due and payable, except for any such assessment, fine or penalty that
is currently being contested in good faith and except where the failure to file or pay
would not, individually or in the aggregate, result in a material adverse effect on the
Company and its subsidiaries, taken as a whole.

     (o) Except as described in the Time of Sale Memorandum and Final Memorandum, payments
in respect of the Transaction Documents (including the transfer, sale and delivery of the
Securities), are not subject under the current laws of any applicable jurisdiction or any
political subdivision thereof or therein to any withholdings or similar charges for or on
account of taxation or otherwise other than taxes imposed on the income or gain of the
Placement Agents whose net income or gains are otherwise subject to any tax by Mexico or
any political subdivision thereof or therein.

     (p) Except as described in the Time of Sale Memorandum and Final Memorandum, payments
made to a foreign holder (as defined in the Time of Sale Memorandum and each Memorandum)
by the Company

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under the Securities will not be subject under the current laws of Mexico or any
political subdivision thereof to any withholdings or similar charges for or on account of
taxation.

     (q) Except as described in the Time of Sale Memorandum and Final Memorandum,
non-Mexican holders of the Securities will not be deemed resident, domiciled, carrying on
business or subject to taxation in Mexico solely by reason of the execution, delivery,
performance or enforcement of each of the Transaction Documents.

     (r) There are no stamp or other issuance or transfer taxes or duties or other similar
fees or charges required to be paid in connection with the execution and delivery of this
Agreement or the issuance or sale by the Company of the Securities.

     (s) Since the respective dates as of which information is given in the Time of Sale
Memorandum and each Memorandum, there has not occurred any material adverse change, or any
development involving a prospective material adverse change, in the condition, financial
or otherwise, or in the earnings, business or operations of the Company and its
subsidiaries, taken as a whole, from that set forth in the Preliminary Memorandum.

     (t) Neither the Company nor any of its subsidiaries is (i) in violation, breach of,
or default under any provision of (x) the estatutos sociales or any other organizational
document of the Company or any of its subsidiaries, (y) the Concession or any law
applicable to the Company and its operations (including, without limitation, its
subsidiaries) or (z) any agreement or other instrument binding upon the Company, any of
its subsidiaries or KCS that is included in or incorporated by reference into the Annual
Report on Form 10-K for the year ended December 31, 2008 of the Company or KCS , (ii)
currently subject to an event or condition which gives the holder of any note, debenture,
or other evidence of indebtedness that is included in or incorporated by reference into
the Annual Report on Form 10-K for the year ended December 31, 2008 of the Company or KCS
(or any person acting on such holder’s behalf) the right to require the repurchase,
redemption or repayment of all or a portion of such indebtedness by the Company or its
subsidiaries, or (iii) in violation, breach of, or default under any judgment, order or
decree of any governmental body, agency or court having jurisdiction over the Company or
any of its subsidiaries, except to the extent that such violation, breach or default
described in this item (iii) would not have a material adverse effect on the Company and
its subsidiaries, taken as a whole.

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     (u) There are no legal or governmental proceedings pending or, to the Company’s
knowledge, threatened to which the Company or any of its subsidiaries is a party or to
which any of the properties of the Company or any of its subsidiaries is subject other
than proceedings that are accurately described in all material respects in the Time of
Sale Memorandum and each Memorandum and proceedings that would not have a material adverse
effect on the Company and its subsidiaries, taken as a whole, or on the power or ability
of the Company to perform its obligations under the Transaction Documents or to consummate
the transactions contemplated by the Time of Sale Memorandum and the Final Memorandum.

     (v) The Company and each of its subsidiaries (i) are in compliance with any and all
applicable foreign, federal, state and municipal laws and regulations relating to the
protection of human health and safety, the environment or hazardous or toxic substances or
wastes, pollutants or contaminants, including, without limitation, the environmental
obligations under the Concession (“Environmental Laws”), (ii) have received all permits,
licenses or other approvals required of them under applicable Environmental Laws to
conduct their respective businesses and (iii) are in compliance with all terms and
conditions of any such permit, license or approval, except where such noncompliance with
Environmental Laws, failure to receive required permits, licenses or other approvals or
failure to comply with the terms and conditions of such permits, licenses or approvals
would not, singly or in the aggregate, have a material adverse effect on the Company and
its subsidiaries, taken as a whole.

     (w) There are no costs or liabilities associated with Environmental Laws (including,
without limitation, any capital or operating expenditures required for clean-up, closure
of properties or compliance with Environmental Laws or any permit, license or approval,
any related constraints on operating activities and any potential liabilities to third
parties) which would, singly or in the aggregate, have a material adverse effect on the
Company and its subsidiaries, taken as a whole.

     (x) No labor problem or dispute with the employees of the Company or any of its
subsidiaries exists or, to the knowledge of the Company or any of its subsidiaries, is
threatened or, to the Company’s knowledge, is imminent, and to the knowledge of the
Company and any of its subsidiaries there is no existing or imminent labor disturbance by
the employees of any of their respective principal suppliers, contractors or customers
that would be reasonably likely to have a material adverse effect on the Company and its
subsidiaries, taken as a whole.

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     (y) The Company and each of its subsidiaries have not, nor to the knowledge of the
Company, has any director, officer, agent, employee or other person associated with or
acting on behalf of the Company or any of its subsidiaries, used any of the funds of the
Company or any of its subsidiaries for any contribution, gift, entertainment or other
expense relating to political activity in contravention of any applicable law, made any
direct or indirect payment to any foreign or domestic government official or employee in
contravention of any applicable law from any of the funds of the Company or any of its
subsidiaries, or made any bribe, rebate, payoff influence payment, kickback or other
unlawful payment in contravention of any applicable law, including the U.S. Foreign
Corrupt Practices Act.

     (z) The Company and each of its subsidiaries is insured by insurers of recognized
financial responsibility against such losses and risks and in such amounts as are prudent
and customary for companies engaged in the same or similar businesses; all such policies
covering any of their business, assets, employees, officers and directors are in full
force and effect; the Company and each of its subsidiaries is in compliance with the terms
of such policies and instruments in all material respects; and there are no claims by the
Company or any of its subsidiaries under any such policy or instrument as to which any
insurance company is denying liability or defending under a reservation of rights clause;
and neither the Company nor any of its subsidiaries has any reason to believe that it will
not be able to renew its existing insurance coverage as and when such coverage expires or
to obtain similar coverage from similar insurers as may be necessary to continue their
businesses.

     (aa) The Company and each of its subsidiaries have no immunity from jurisdiction of
any court of (i) any jurisdiction in which they own or lease property or assets, (ii) the
United States or the State of New York or (iii) Mexico or any political subdivision
thereof or from any legal process (whether through service of notice, attachment prior to
judgment, attachment in aid of execution, execution or otherwise) with respect to
themselves or their property and assets or this Agreement, the Indenture or the
Registration Rights Agreement or actions to enforce judgments in respect thereof.

     (bb) No relationship, direct or indirect, exists between the Company or any of its
subsidiaries on the one hand, and the directors, officers, stockholders, customers or
suppliers of the Company or any of its subsidiaries on the other hand, which would be
required by the Securities Act, if the offer were regulated under the Securities Act, to
be described in the Time of Sale Memorandum and the Final Memorandum which is not so
described.

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     (cc) The Company is not and does not expect to become a passive foreign investment
company as defined in Section 1297 of the U.S. Internal Revenue Code of 1986, as amended,
and the regulations promulgated thereunder.

     (dd) Neither the Company nor any of its subsidiaries nor, to the knowledge of the
Company, any director, officer, agent, employee or affiliate of the Company or any of its
subsidiaries is currently subject to any U.S. sanctions administered by the Office of
Foreign Assets Control of the U.S. Treasury Department.

     (ee) The Company and each of its subsidiaries are in material compliance with
applicable Mexican and U.S. anti-terrorism and anti-money laundering rules and
regulations, including Title III of the USA Patriot Act, the regulations administered by
the U.S. Department of the Treasury, including its Office of Foreign Assets Control, and
other applicable Mexican and U.S. federal, state or non-U.S. anti-money laundering laws
and regulations (collectively, the “Money Laundering Laws”) and no action, suit or
proceeding by or before any court or governmental agency, authority or body or any
arbitrator involving the Company or any of its subsidiaries with respect to the Money
Laundering Laws is pending or threatened.

     (ff) The Company is subject to and is reporting in accordance with the requirements
of Section 13 or Section 15(d) of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”) and all documents incorporated by reference in the Time of Sale Memorandum
and the Final Memorandum comply as to form in all material respects with the applicable
requirements of the Exchange Act.

     (gg) The Company has not paid or agreed to pay to any person any compensation for
soliciting another to purchase any securities of the Company, except as contemplated in
this Agreement.

     (hh) The statements in, or incorporated by reference in, the Time of Sale Memorandum
and the Final Memorandum under the headings “Capitalization”, “Business”, “Description of
the Notes”, and “Taxation” fairly summarize the matters therein described.

     (ii) There is and has been no failure on the part of the Company and to the Company’s
knowledge, after reasonable inquiry, any of the Company’s directors or officers, in their
capacities as such, to comply with any provision of the Sarbanes-Oxley Act of 2002 and the
rules and regulations promulgated in connection therewith (the “Sarbanes-Oxley Act”)
applicable to the Company as of the date hereof.

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     (jj) Until March 31, 2005 the Company was a “foreign issuer” (as defined in
Regulation S). Since April 1, 2005, the Company has been a “domestic issuer” (as defined
in Regulation S) and has adopted all the necessary measures consistent with its status as
such, and the Company reasonably believes that there is no substantial U.S. market
interest (as defined in Regulation S) in its debt securities.

     (kk) The Company is not, and after giving effect to the offering and sale of the
Securities and the application of the proceeds thereof as described in the Time of Sale
Memorandum and the Final Memorandum will not be, required to register as an “investment
company” as such term is defined in the Investment Company Act of 1940, as amended.

     (ll) Neither the Company nor any affiliate (as defined in Rule 501(b) of Regulation D
under the Securities Act, and, for avoidance of doubt, including KCS, an “Affiliate”)) of
the Company has directly, or through any agent, (i) sold, offered for sale, solicited
offers to buy or otherwise negotiated in respect of, any security (as defined in the
Securities Act) which is or will be integrated with the sale of the Securities in a manner
that would require the registration under the Securities Act of the Securities or (ii)
offered, solicited offers to buy or sold the Securities by any form of general
solicitation or general advertising (as those terms are used in Regulation D under the
Securities Act) or in any manner involving a public offering within the meaning of Section
4(2) of the Securities Act.

     (mm) None of the Company, its Affiliates or any person acting on its or their behalf
has engaged or will engage in any directed selling efforts (within the meaning of
Regulation S) with respect to the Securities and the Company and its Affiliates and any
person acting on its or their behalf have complied and will comply with the offering
restrictions requirement of Regulation S.

     (nn) It is not necessary in connection with the offer, sale and delivery of the
Securities to the Placement Agents in the manner contemplated by this Agreement to
register the Securities under the Securities Act or to qualify the Indenture under the
Trust Indenture Act of 1939, as amended.

     (oo) The Securities satisfy the requirements set forth in Rule 144A(d)(3) under the
Securities Act.

     (pp) The Company has validly, legally, effectively and irrevocably submitted to the
personal jurisdiction of any state or Federal court in the Borough of Manhattan, The City
of New York, New York, has

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validly, legally, effectively and irrevocably waived any objection to the venue of a
proceeding in any such court, and has validly, legally, effectively and irrevocably
appointed C T Corporation System as its authorized agent for service of process.

     2. Agreements to Sell and Purchase. The Company hereby agrees to sell to the several
Placement Agents, and each Placement Agent, upon the basis of the representations and warranties
herein contained, but subject to the conditions hereinafter stated, agrees, severally and not
jointly, to purchase from the Company the aggregate principal amount of the Securities set forth in
Schedule I hereto opposite its name at a purchase price of 92.490% of the aggregate principal
amount thereof (the “Purchase Price”).

     The Company hereby agrees that, without the prior written consent of the Representative, it
will not, during the period beginning on the date hereof and continuing to and including the
Closing Date (as defined below), offer, sell, contract to sell or otherwise dispose of any debt of
the Company or warrants to purchase debt of the Company substantially similar to the Securities
(other than the sale of the Securities under this Agreement).

     3. Terms of Offering. You have advised the Company that the Placement Agents will make an
offering of the Securities purchased by the Placement Agents hereunder on the terms to be set forth
in the Time of Sale Memorandum, as soon as practicable after this Agreement is entered into as in
your judgment is advisable.

     4. Payment and Delivery. Payment for the Securities shall be made to the Company in Federal
or other funds immediately available in New York City against delivery of such Securities for the
respective accounts of the several Placement Agents at 10:00 a.m., New York City time, on March 30,
2009, or at such other time on the same or such other date, not later than March 30, 2009, as shall
be designated in writing by you. The time and date of such payment are hereinafter referred to as
the “Closing Date.”

     The Securities shall be in definitive form or global form, as specified by you, and registered
in such names and in such denominations as you shall request in writing not later than one full
business day prior to the Closing Date. The Securities shall be delivered to you on the Closing
Date for the respective accounts of the several Placement Agents, with any transfer taxes payable
in connection with the transfer of the Securities to the Placement Agents duly paid, against
payment of the Purchase Price therefor.

     5. Conditions to the Placement Agents’ Obligations. The several obligations of the Placement
Agents to purchase and pay for the Securities on the Closing Date are subject to the following
conditions:

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     (a) Subsequent to the execution and delivery of this Agreement and on or prior to the
Closing Date:

     (i) there shall not have occurred any downgrading, nor shall any notice
have been given of any intended or potential downgrading or of any review for a
possible change that does not indicate the direction of the possible change, in
the rating accorded the Company or any of the securities of the Company, KCS or
any of their subsidiaries or in the rating outlook for the Company by any
“nationally recognized statistical rating organization,” as such term is defined
for purposes of Rule 436(g)(2) under the Securities Act;

     (ii) the Company shall have obtained all consents, approvals,
authorizations and orders of, and shall have duly made all registrations,
qualifications and filings with, any court or regulatory authority or other
governmental agency or instrumentality, including without limitation the CNBV,
required in connection with the issuance and sale of the Securities and the
execution, delivery and performance of this Agreement; and

     (iii) there shall not have occurred any change, or any development
involving a prospective change, in the condition, financial or otherwise, or in
the earnings, business or operations of the Company and its subsidiaries, taken
as a whole, from that set forth in the Time of Sale Memorandum provided to
prospective purchasers of the Securities that, in your reasonable judgment, is
material and adverse and that makes it, in your reasonable judgment,
impracticable to market the Securities on the terms and in the manner
contemplated in the Time of Sale Memorandum.

     (b) The Placement Agents shall have received on the Closing Date a certificate, dated
the Closing Date and signed by an executive officer of the Company, to the effect set
forth in Section 5(a)(i) and to the effect that the representations and warranties of the
Company contained in this Agreement are true and correct as of the Closing Date and that
the Company has complied with all of the agreements and satisfied all of the conditions on
its part to be performed or satisfied hereunder on or before the Closing Date. The officer
signing and delivering such certificate may rely upon his or her knowledge as to
proceedings threatened.

     (c) The Placement Agents shall have received on the Closing Date an opinion of
Sonnenschein Nath & Rosenthal LLP, outside U.S. counsel for the Company, dated the Closing
Date, in form and substance

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satisfactory to the Representative. Such opinion shall be rendered to the Placement
Agents at the request of the Company and shall so state therein.

     (d) The Placement Agents shall have received on the Closing Date an opinion of White
& Case, S.C., outside Mexican counsel for the Company, dated the Closing Date, in form and
substance satisfactory to the Representative. Such opinion shall be rendered to the
Placement Agents at the request of the Company and shall so state therein.

     (e) The Placement Agents shall have received on the Closing Date an in-house legal
opinion from Edgar Aguileta Gutiérrez, Associate General Counsel and Alternate Corporate
Secretary of the Company, dated the Closing Date, in form and substance satisfactory to
the Representative. Such opinion shall be rendered to the Placement Agents at the request
of the Company and shall so state therein.

     (f) The Placement Agents shall have received on the Closing Date an opinion of
Shearman & Sterling LLP, U.S. counsel for the Placement Agents, dated the Closing Date, in
form and substance satisfactory to the Representative.

     (g) The Placement Agents shall have received on the Closing Date an opinion of
Mijares, Angoitia, Cortés y Fuentes, S.C., Mexican counsel for the Placement Agents, dated
the Closing Date, in form and substance satisfactory to the Representative.

     (h) The Placement Agents shall have received on each of the date hereof and the
Closing Date a letter, dated the date hereof or the Closing Date, as the case may be, in
form and substance satisfactory to the Representative, from KPMG, independent public
accountants, containing statements and information of the type ordinarily included in
accountants’ “comfort letters” to underwriters with respect to the financial statements
and certain financial information contained in the Time of Sale Memorandum and the Final
Memorandum; provided, however, that the letter delivered on the Closing Date shall use a
“cut-off date” not earlier than the date hereof.

     (i) The Placement Agents shall have received on the date hereof a letter, dated the
date hereof, in form and substance satisfactory to the Representative, from KPMG Cárdenas
Dosal, S.C., independent public accountants, containing statements and information of the
type ordinarily included in accountants’ “comfort letters” to underwriters with respect to
the financial statements and certain financial information contained in the Time of Sale
Memorandum and the Final Memorandum.

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     6. Covenants of the Company. In further consideration of the agreements of the Placement
Agents contained in this Agreement, the Company covenants with each Placement Agent as follows:

     (a) To furnish to you in New York City, without charge, prior to 10:00 a.m., New York
City time on the business day next succeeding the date of this Agreement and during the
period mentioned in Section 6(c), as many electronic copies of the Time of Sale
Memorandum, either Memorandum and any supplements and amendments thereto as you may
reasonably request.

     (b) Before amending or supplementing the Time of Sale Memorandum or either
Memorandum, to furnish to you a copy of each such proposed amendment or supplement and not
to use any such proposed amendment or supplement to which you reasonably object, provided
that if, in the opinion of counsel to the Company, any such amendment or supplement shall
be required by law or regulation to be used, that the Company be permitted to use such
amendment or supplement after taking into account such comments as you may reasonably make
on the content, form or other aspects of such amendment or supplement.

     (c) If the Time of Sale Memorandum is being used to solicit offers to buy the
Securities at a time when the Final Memorandum is not yet available to prospective
purchasers and any event shall occur or condition exist as a result of which it is
necessary to amend or supplement the Time of Sale Memorandum in order to make the
statements therein, in the light of the circumstances, not misleading, or if, in the
opinion of counsel for the Placement Agents, it is necessary to amend or supplement the
Time of Sale Memorandum to comply with applicable law, forthwith to prepare and furnish,
at the Company’s own expense, to the Placement Agents upon request, either amendments or
supplements to the Time of Sale Memorandum so that the statements in the Time of Sale
Memorandum as so amended or supplemented will not, in the light of the circumstances when
delivered to a prospective purchaser, be misleading or so that the Time of Sale
Memorandum, as amended or supplemented, will comply with law.

     (d) If, during such period after the date hereof and prior to the date on which all
of the Securities shall have been sold by the Placement Agents, any event shall occur or
condition exist as a result of which it is necessary to amend or supplement the Final
Memorandum in order to make the statements therein, in the light of the circumstances when
the Final Memorandum is delivered to a purchaser, not misleading, or if, in the opinion of
counsel for the Placement Agents, it is necessary to amend

15

 

or supplement the Final Memorandum to comply with applicable law, forthwith to
prepare and furnish, at its own expense, to the Placement Agents, either amendments or
supplements to the Final Memorandum so that the statements in the Final Memorandum as so
amended or supplemented will not, in the light of the circumstances when the Final
Memorandum is delivered to a purchaser, be misleading or so that the Final Memorandum, as
amended or supplemented, will comply with applicable law.

     (e) To endeavor to qualify the Securities for offer and sale under the securities or
Blue Sky laws of such jurisdictions as you shall reasonably request.

     (f) Whether or not the transactions contemplated in this Agreement are consummated or
this Agreement is terminated, to pay or cause to be paid all expenses incident to the
performance of its obligations under this Agreement. It is understood, however, that
except as provided in this Section, Section 8, and the last paragraph of Section 10, the
Placement Agents will pay all of their costs and expenses, including fees and
disbursements of their counsel, transfer taxes payable on resale of any of the Securities
by them and any advertising expenses connected with any offers they may make. Upon
consummation of the transactions contemplated by this Agreement, the Placement Agents
shall reimburse the Company for expenses incurred in the transactions contemplated by this
Agreement in an amount not to exceed 0.25% of the aggregate Purchase Price.

     (g) Neither the Company nor any Affiliate will sell, offer for sale or solicit offers
to buy or otherwise negotiate in respect of any security (as defined in the Securities
Act) which could be integrated with the sale of the Securities in a manner which would
require the registration under the Securities Act of the Securities.

     (h) Not to solicit any offer to buy or offer or sell the Securities by means of any
form of general solicitation or general advertising (as those terms are used in Regulation
D under the Securities Act) or in any manner involving a public offering within the
meaning of Section 4(2) of the Securities Act.

     (i) While any of the Securities remain “restricted securities” within the meaning of
the Securities Act, to make available, upon request, to any seller of such Securities the
information specified in Rule 144A(d)(4) under the Securities Act, unless the Company is
then subject to Section 13 or 15(d) of the Exchange Act.

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     (j) None of the Company, its Affiliates or any person acting on its or their behalf
(other than the Placement Agents) will engage in any directed selling efforts (as that
term is defined in Regulation S) with respect to the Securities, and the Company and its
Affiliates and each person acting on its or their behalf (other than the Placement Agents)
will comply with the offering restrictions requirement of Regulation S.

     (k) During the period of one year after the Closing Date, the Company will not, and
will not permit any of its affiliates (as defined in Rule 144 under the Securities Act) to
resell any of the Securities which constitute “restricted securities” under Rule 144 that
have been reacquired by any of them.

     (l) Not to take any action prohibited by Regulation M under the Exchange Act in
connection with the distribution of the Securities contemplated hereby.

     (m) To comply in all material respects with all applicable securities and other laws,
rules and regulations, including without limitation, the Sarbanes-Oxley Act, and to cause
the officers and directors of the Company, in their capacities as such, to comply with
such laws, rules and regulations, including without limitation, the provisions of the
Sabanes-Oxley Act.

     (n) To comply in all material respects with all matters imposed under the U.S.
securities laws applicable, from and after April 1, 2005, to entities that are not foreign
private issuers under such laws, including, to the extent applicable, the preparation of
the Company’s consolidated financial statements from and after January 1, 2005 under U.S.
GAAP.

     7. Offering of Securities; Restrictions on Transfer. (a) Each Placement Agent, severally and
not jointly, represents and warrants that such Placement Agent is a qualified institutional buyer
as defined in Rule 144A under the Securities Act (a “QIB”). Each Placement Agent, severally and
not jointly, agrees with the Company that (i) it will not solicit offers for, or offer or sell,
such Securities by any form of general solicitation or general advertising (as those terms are used
in Regulation D under the Securities Act) or in any manner involving a public offering within the
meaning of Section 4(2) of the Securities Act and (ii) it will solicit offers for such Securities
only from, and will offer such Securities only to, persons that it reasonably believes to be (A) in
the case of offers inside the United States, (1) QIBs or (2) other institutional accredited
investors (as defined in Rule 501(a)(1), (2), (3) or (7) under the Securities Act (“institutional
accredited investors”) that, prior to their purchase of the Securities, deliver to such Placement
Agent a letter containing the representations and agreements set forth in Appendix A to the Time of
Sale Memorandum and

17

 

(B) in the case of offers outside the United States, to persons other than U.S. persons
(“foreign purchasers,” which term shall include dealers or other professional fiduciaries in the
United States acting on a discretionary basis for foreign beneficial owners (other than an estate
or trust)) in reliance upon Regulation S under the Securities Act that, in each case, in purchasing
such Securities are deemed to have represented and agreed as provided in the Time of Sale
Memorandum under the caption “Transfer Restrictions”.

     (b) Each Placement Agent, severally and not jointly, represents, warrants, and agrees with
respect to offers and sales outside the United States that:

     (i) such Placement Agent understands that no action has been or will be taken in any
jurisdiction by the Company that would permit a public offering of the Securities, or
possession or distribution of the Time of Sale Memorandum or either Memorandum or any
other offering or publicity material relating to the Securities, in any country or
jurisdiction where action for that purpose is required;

     (ii) such Placement Agent will comply with all applicable laws and regulations in
each jurisdiction in which it acquires, offers, sells or delivers Securities or has in
its possession or distributes the Time of Sale memorandum or either Memorandum or any
such other material, in all cases at its own expense;

     (iii) the Securities have not been registered under the Securities Act and may not
be offered or sold within the United States or to, or for the account or benefit of, U.S.
persons except in accordance with Rule 144A or Regulation S under the Securities Act or
pursuant to another exemption from the registration requirements of the Securities Act;

     (iv) such Placement Agent has offered the Securities and will offer and sell the
Securities (A) as part of their distribution at any time and (B) otherwise until 40 days
after the later of the commencement of the offering and the Closing Date, only in
accordance with Rule 903 of Regulation S or as otherwise permitted in Section 7(a);
accordingly, neither such Placement Agent, its Affiliates nor any persons acting on its
or their behalf have engaged or will engage in any directed selling efforts (within the
meaning of Regulation S) with respect to the Securities, and any such Placement Agent,
its Affiliates and any such persons have complied and will comply with the offering
restrictions requirement of Regulation S;

18

 

     (v) such Placement Agent (A) has not offered or sold and, prior to the date six
months after the Closing Date, will not offer or sell any Securities to persons in the
United Kingdom except to persons whose ordinary activities involve them in acquiring,
holding, managing or disposing of investments (as principal or agent) for the purposes of
their businesses or otherwise in circumstances which have not resulted and will not
result in an offer to the public in the United Kingdom within the meaning of the Public
Offers of Securities Regulations 1995; (B) has complied and will comply with all
applicable provisions of the Financial Services and Markets Act 2000 (the “FSMA”) with
respect of anything done by it in relation to the Securities in, from or otherwise
involving the United Kingdom, and (C) will only communicate or cause to be communicated
any invitation or inducement to engage in investment activity (within the meaning of
section 21 of the FSMA) received by it in connection with the issue or sale of the
Securities in circumstances in which section 21(1) of the FSMA does not apply to the
Company;

     (vi) such Placement Agent understands that the Securities have not been and will not
be registered with the Registro Nacional de Valores (National Registry of Securities)
maintained by the CNBV under the Securities and Exchange Law of Mexico (Ley del Mercado
de Valores), and represents that it has not offered or sold, and agrees not to offer or
sell, directly or indirectly, any Securities in Mexico or for the account of any resident
thereof, except pursuant to a private placement exemption set forth under Article 8 of
the Securities and Exchange Law of Mexico and in compliance with applicable provisions of
Mexican Law or in accordance with an authorization to that effect; and

     (vii) such Placement Agent agrees that, at or prior to confirmation of sales of the
Securities, it will have sent to each distributor, dealer or person receiving a selling
concession, fee or other remuneration that purchases Securities from it during the
restricted period a confirmation or notice to substantially the following effect:

     “The Securities covered hereby have not been registered under the U.S.
Securities Act of 1933 (the “Securities Act”) and may not be offered and sold
within the United States or to, or for the account or benefit of, U.S. persons
(i) as part of their distribution at any time or (ii) otherwise until 40 days
after the later of the commencement of the offering and the closing date, except
in either case in accordance with Regulation S (or Rule 144A if available) under
the Securities Act. Terms used above have the meaning given to them by
Regulation S.”

Terms used in this Section 7(b) have the meanings given to them by Regulation S.

19

 

     8. Indemnity and Contribution. (a) The Company agrees to indemnify and hold harmless each
Placement Agent, each person, if any, who controls any Placement Agent within the meaning of either
Section 15 of the Securities Act or Section 20 of the Exchange Act, and each affiliate of any
Placement Agent within the meaning of Rule 405 under the Securities Act from and against any and
all losses, claims, damages and liabilities (including, without limitation, any legal or other
expenses reasonably incurred in connection with defending or investigating any such action or
claim) caused by any untrue statement or alleged untrue statement of a material fact contained in
the Time of Sale Memorandum or either Memorandum or any amendments or supplements thereto, or any
of the supplemental marketing materials listed on Schedule III hereto, or caused by any omission or
alleged omission to state therein a material fact necessary to make the statements therein in the
light of the circumstances under which they were made not misleading, except insofar as such
losses, claims, damages or liabilities are caused by any such untrue statement or omission or
alleged untrue statement or omission based upon information relating to any Placement Agent
furnished to the Company in writing by such Placement Agent through you expressly for use therein.

     (b) Each Placement Agent agrees, severally and not jointly, to indemnify and hold harmless the
Company, its directors, its officers and each person, if any, who controls the Company within the
meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act to the same
extent as the foregoing indemnity from the Company to such Placement Agent, but only with reference
to information relating to such Placement Agent furnished to the Company in writing by such
Placement Agent through you expressly for use in the Time of Sale Memorandum or either Memorandum
or any amendments or supplements thereto.

     (c) In case any proceeding (including any governmental investigation) shall be instituted
involving any person in respect of which indemnity may be sought pursuant to Section 8(a) or 8(b),
such person (the “indemnified party”) shall promptly notify the person against whom such indemnity
may be sought (the “indemnifying party”) in writing and the indemnifying party, upon request of the
indemnified party, shall retain counsel reasonably satisfactory to the indemnified party to
represent the indemnified party and any others the indemnifying party may designate in such
proceeding and shall pay the fees and disbursements of such counsel related to such proceeding. In
any such proceeding, any indemnified party shall have the right to retain its own counsel, but the
fees and expenses of such counsel shall be at the expense of such indemnified party unless (i) the
indemnifying party and the indemnified party shall have mutually agreed to the retention of such
counsel or (ii) the named parties to any such proceeding (including any impleaded parties) include
both the indemnifying party and the indemnified party and representation of both parties by the
same counsel would be inappropriate due to actual or potential differing

20

 

interests between them. It is understood that the indemnifying party shall not, in respect of
the legal expenses of any indemnified party in connection with any proceeding or related
proceedings in the same jurisdiction, be liable for the fees and expenses of more than one separate
firm (in addition to any local counsel) for all such indemnified parties and that all such fees and
expenses shall be reimbursed as they are incurred. Such firm shall be designated in writing by the
Representative, in the case of parties indemnified pursuant to Section 8(a), and by the Company, in
the case of parties indemnified pursuant to Section 8(b). The indemnifying party shall not be
liable for any settlement of any proceeding effected without its written consent, but if settled
with such consent or if there be a final judgment for the plaintiff, the indemnifying party agrees
to indemnify the indemnified party from and against any loss or liability by reason of such
settlement or judgment. Notwithstanding the foregoing sentence, if at any time an indemnified
party shall have requested an indemnifying party to reimburse the indemnified party for fees and
expenses of counsel as contemplated by the second and third sentences of this paragraph, the
indemnifying party agrees that it shall be liable for any settlement of any proceeding effected
without its written consent if (i) such settlement is entered into more than 30 days after receipt
by such indemnifying party of the aforesaid request and (ii) such indemnifying party shall not have
reimbursed the indemnified party in accordance with such request prior to the date of such
settlement. No indemnifying party shall, without the prior written consent of the indemnified
party, effect any settlement of any pending or threatened proceeding in respect of which any
indemnified party is or could have been a party and indemnity could have been sought hereunder by
such indemnified party, unless such settlement includes an unconditional release of such
indemnified party from all liability on claims that are the subject matter of such proceeding.

     (d) To the extent the indemnification provided for in Section 8(a) or 8(b) is unavailable to
an indemnified party or insufficient in respect of any losses, claims, damages or liabilities
referred to therein, then each indemnifying party under such paragraph, in lieu of indemnifying
such indemnified party thereunder, shall contribute to the amount paid or payable by such
indemnified party as a result of such losses, claims, damages or liabilities (i) in such proportion
as is appropriate to reflect the relative benefits received by the Company on the one hand and the
Placement Agents on the other hand from the offering of the Securities or (ii) if the allocation
provided by clause 8(d)(i) above is not permitted by applicable law, in such proportion as is
appropriate to reflect not only the relative benefits referred to in clause 8(d)(i) above but also
the relative fault of the Company on the one hand and of the Placement Agents on the other hand in
connection with the statements or omissions that resulted in such losses, claims, damages or
liabilities, as well as any other relevant equitable considerations. The relative benefits received
by the Company on the one hand and the Placement Agents on the other hand in connection with the
offering of the Securities shall be deemed to be in the same respective proportions as the net

21

 

proceeds from the offering of the Securities (before deducting expenses) received by the
Company and the total discounts and commissions (after deducting reimbursements for expenses
incurred by the Company) received by the Placement Agents, in each case as set forth in the Time of
Sale Memorandum and the Final Memorandum, bear to the aggregate offering price of the Securities.
The relative fault of the Company on the one hand and of the Placement Agents on the other hand
shall be determined by reference to, among other things, whether the untrue or alleged untrue
statement of a material fact or the omission or alleged omission to state a material fact relates
to information supplied by the Company or by the Placement Agents and the parties’ relative intent,
knowledge, access to information and opportunity to correct or prevent such statement or omission.
The Placement Agents’ respective obligations to contribute pursuant to this Section 8 are several
in proportions to the respective principal amount of Securities they have purchased hereunder, and
not joint.

     (e) The Company and the Placement Agents agree that it would not be just or equitable if
contribution pursuant to Section 8(d) were determined by pro rata allocation (even if the Placement
Agents were treated as one entity for such purpose) or by any other method of allocation that does
not take account of the equitable considerations referred to in Section 8(d). The amount paid or
payable by an indemnified party as a result of the losses, claims, damages and liabilities referred
to in Section 8(d) shall be deemed to include, subject to the limitations set forth above, any
legal or other expenses reasonably incurred by such indemnified party in connection with
investigating or defending any such action or claim. Notwithstanding the provisions of this
Section 8, no Placement Agent shall be required to contribute any amount in excess of the amount by
which the total price at which the Securities resold by it in the initial placement of such
Securities were offered to investors exceeds the amount of any damages that such Placement Agent
has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission
or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of
Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not
guilty of such fraudulent misrepresentation. The remedies provided for in this Section 8 are not
exclusive and shall not limit any rights or remedies, which may otherwise be available to any
indemnified party at law or in equity.

     (f) The indemnity and contribution provisions contained in this Section 8 and the
representations, warranties and other statements of the Company contained in this Agreement shall
remain operative and in full force and effect regardless of (i) any termination of this Agreement,
(ii) any investigation made by or on behalf of any Placement Agent, any person controlling any
Placement Agent or any affiliate of any Placement Agent or by or on behalf of the Company, its
officers or directors or any person controlling the Company and (iii) acceptance of and payment for
any of the Securities.

22

 

     9. Termination. The Placement Agents may terminate this Agreement by notice given by you to
the Company, if after the execution and delivery of this Agreement and prior to the Closing Date
(i) trading generally shall have been suspended or materially limited on, or by, as the case may
be, any of the New York Stock Exchange, the American Stock Exchange, the Nasdaq National Market,
the Chicago Board of Options Exchange, the Chicago Mercantile Exchange, the Chicago Board of Trade,
or Bolsa Mexicana de Valores, S.A. de C.V., (ii) trading of any securities of the Company or KCS
shall have been suspended on any exchange or in any over-the-counter market, (iii) a material
disruption in securities settlement, payment or clearance services in the United States or Mexico
shall have occurred, (iv) any moratorium on commercial banking activities shall have been declared
by Federal or New York State or Mexican authorities or (v) there shall have occurred any outbreak
or escalation of hostilities, or any change in financial markets, currency exchange rates or
controls or any calamity or crisis that, in your judgment, is material and adverse and which,
singly or together with any other event specified in this clause (v), makes it, in your judgment,
impracticable or inadvisable to proceed with the offer, sale or delivery of the Securities on the
terms and in the manner contemplated in the Time of Sale Memorandum or the Final Memorandum.

     10. Effectiveness; Defaulting Placement Agents. (a) This Agreement shall become effective
upon the execution and delivery hereof by the parties hereto.

     (b) If, on the Closing Date, any one or more of the Placement Agents shall fail or refuse to
purchase Securities that it or they have agreed to purchase hereunder on such date, and the
aggregate principal amount of Securities which such defaulting Placement Agent or Placement Agents
agreed but failed or refused to purchase is not more than one-tenth of the aggregate principal
amount of Securities to be purchased on such date, the other Placement Agents shall be obligated
severally in the proportions that the principal amount of Securities set forth opposite their
respective names in Schedule I bears to the aggregate principal amount of Securities set forth
opposite the names of all such non-defaulting Placement Agents, or in such other proportions as you
may specify, to purchase the Securities which such defaulting Placement Agent or Placement Agents
agreed but failed or refused to purchase on such date; provided that in no event shall the
principal amount of Securities that any Placement Agent has agreed to purchase pursuant to this
Agreement be increased pursuant to this Section 10 by an amount in excess of one-ninth of such
principal amount of Securities without the written consent of such Placement Agent. If, on the
Closing Date any Placement Agent or Placement Agents shall fail or refuse to purchase Securities
which it or they have agreed to purchase hereunder on such date and the aggregate principal amount
of Securities with respect to which such default occurs is more than one-tenth of the aggregate
principal amount of Securities to be purchased on such date, and arrangements satisfactory to you
and the

23

 

Company for the purchase of such Securities are not made within 36 hours after such default,
this Agreement shall terminate without liability on the part of any non-defaulting Placement Agent
or of the Company. In any such case either you or the Company shall have the right to postpone the
Closing Date, but in no event for longer than seven days, in order that the required changes, if
any, in the Time of Sale Memorandum or the Final Memorandum or in any other documents or
arrangements may be effected. Any action taken under this paragraph shall not relieve any
defaulting Placement Agent from liability in respect of any default of such Placement Agent under
this Agreement.

     (c) If this Agreement shall be terminated by the Placement Agents, or any of them, because of
any failure or refusal on the part of the Company to comply with the terms or to fulfill any of the
conditions of this Agreement, or if for any reason the Company shall be unable to perform its
obligations under this Agreement, (i) the Company will reimburse the Placement Agents or such
Placement Agents as have so terminated this Agreement with respect to themselves, severally, for
all out-of-pocket expenses (including the fees and disbursements of their counsel) reasonably
incurred by such Placement Agents in connection with this Agreement or the offering contemplated
hereunder and (ii) the Placement Agents will no longer obligated under Section 6(f) to reimburse
the Company for certain of their expenses.

     11. Entire Agreement. This Agreement, together with any contemporaneous written agreements
and any prior written agreements (to the extent not superseded by this Agreement) that relate to
the offering of the Securities, represents the entire agreement between the Company and the
Placement Agents with respect to the preparation of the Time of Sale Memorandum, either Memorandum,
the conduct of the offering, and the purchase and sale of the Securities.

     12. No Fiduciary Duties. The Company acknowledges and agrees that the Placement Agents are
acting solely in the capacity of an arm’s length contractual counterparty to the Company with
respect to the Offer (including in connection with determining the terms of the Offer) and not as
financial advisors or as fiduciaries to, or agents of, the Company or any other person.
Additionally, the Placement Agents are not advising the Company or any other person as to any
legal, tax, investment, accounting or regulatory matters in any jurisdiction. The Company shall
consult with its own advisors concerning such matters and shall be responsible for making its own
independent investigation and appraisal of the transactions contemplated hereby, and the Placement
Agents shall have no responsibility or liability to the Company with respect thereto. Any review
by the Placement Agents of the Company, the transactions contemplated hereby or other matters
relating to such transactions will be performed solely for the benefit of the Placement Agents and
shall not be on behalf of the Company.

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     13. Counterparts. This Agreement may be signed in any number of counterparts, each of which
shall be an original, with the same effect as if the signatures thereto and hereto were upon the
same instrument.

     14. Consent to Jurisdiction. Appointment of Agent to Accept Service of Process.

     (a) Each of the Placement Agents and the Company irrevocably consents and agrees that any
legal action, suit or proceeding against it with respect to is obligations, liabilities or any
other matter arising out of or based on this Agreement may be brought in any United Sates federal
or sate court in the State of New York, County of New York. Each of the parties irrevocably and
unconditionally waives, to the fullest extent permitted by law, any objection that it may now or
hereafter have to the laying of venue of any of the aforesaid actions, suits or proceedings arising
out of or in connection with this Agreement, the Registration Rights Agreement, the Indenture and
the Securities brought in the federal courts located in the City of New York or the courts of the
State of New York located in the County of New York and hereby further irrevocably and
unconditionally waives and agrees, to the fullest extent permitted by law, not to plead or claim in
any such court that any such action, suit or proceeding brought in any such court has been brought
in an inconvenient forum, hereby waiving the venue of any other court to which they may have a
right based on their domicile or otherwise.

     (b) The Company designates, appoints, and empowers C T Corporation System, with offices
currently at 111 Eight Avenue, New York, New York 10011, as its designee, appointee and agent to
receive and forward for and on its behalf, service of any and all legal process, summons, notices
and documents that may be served in any action, suit or proceeding brought against any of the
liabilities or any other matter arising out of or in connection with this Agreement, the
Registration Rights Agreement, the Indenture and the Securities that may be on such designee,
appointee and agent in accordance with legal procedures prescribed for such courts. If for any
reason such designee, appointee and agent hereunder shall cease to be available to act as such, the
Company agrees to designate a new designee, appointee and agent in The City of New York on the
terms and for the purposes of this Section 14 reasonably satisfactory to the Placement Agents. The
Company further hereby irrevocably consents and agrees to the service of any legal process,
summons, notices and documents in any such action, suit or proceeding against the Company by
serving a copy thereof upon the relevant agent of service of process referred to in this Section 14
(whether or not the appointment of such agent shall for any reason prove to be ineffective or such
agent shall accept or acknowledge such service). The Company agrees that the failure of any such
designee, appointee and agent to give any notice of such service to them shall not impair or affect
in any way the validity of such service or any judgment rendered in any action or proceeding based
thereon. Nothing herein

25

 

shall in any way be deemed to limit the ability of the Placement Agents to serve any such
legal process, summons, notices and documents in any other manner permitted by applicable law or to
obtain jurisdiction over the Company or bring actions, suits or proceedings against them in such
other jurisdictions, and in such manner, as may be permitted by applicable law.

     15. Applicable Law. This Agreement shall be governed by and construed in accordance with the
internal laws of the State of New York.

     16. Headings. The headings of the sections of this Agreement have been inserted for
convenience of reference only and shall not be deemed a part of this Agreement.

     17. Notices. All communications hereunder shall be in writing and effective only upon receipt
and if to the Placement Agents shall be delivered, mailed or sent to Banc of America Securities
LLC, One Bryant Park, New York, New York 10036, Attention: High Yield Capital Markets Syndicate
Desk; and if to the Company shall be delivered, mailed or sent to Kansas City Southern de México,
S.A. de C.V., Montes Urales No. 625, Col. Lomas de Chapultepec, Delegación Miguel Hidalgo, 11000,
México D.F., Attention: Chief Financial Officer.

26

 

	 	 	 	 	 	 	 	 	 
	 	 	Very truly yours,	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	KANSAS CITY SOUTHERN de MÉXICO, S.A. de C.V.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Paul J. Weyandt	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Paul J. Weyandt	 	 
	 

	 	 	 	Title:
	 	Treasurer and Attorney in Fact	 	 

Accepted as of the date hereof

Banc of America Securities LLC

Acting severally on behalf of themselves and the 

several Placement Agents named in Schedule 

I hereto.

By: Banc of America Securities LLC

	 	 	 	 	 	 	 
	By:	 	/s/ Stephan Jaeger	 	 
	 	 	 	 	 
	 

	 	Name:
	 	Stephan Jaeger	 	 
	 

	 	Title:
	 	Managing Director	 	 

[PLACEMENT AGREEMENT]

 

 

SCHEDULE I

	 	 	 	 
	 	 	Principal amount of
	Placement Agent	 	Securities to be Purchased
	Banc of America Securities LLC

	 	$	 130,000,000
	 
	 		 
	SunTrust Robinson Humphrey, Inc.

	 	$	  40,000,000
	 
	 	 
	Scotia Capital (USA) Inc.

	 	$	  18,000,000
	 
	 	 
	DVB Capital Markets LLC

	 	$	  12,000,000
	 
	 	 
	Total:

	 	$	 200,000,000
	 
	 	 

 

 

SCHEDULE II

PRICING SUPPLEMENT

Issued March 24, 2009

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

$200,000,000 12 1/2% SENIOR NOTES DUE 2016

 

Pricing Supplement dated March 24, 2009 to Preliminary Memorandum dated March 24, 2009 of Kansas
City Southern de México, S.A. de C.V. (“KCSM”).

This Pricing Supplement is qualified in its entirety to the Preliminary Memorandum. The
information in this Pricing Supplement supplements the Preliminary Memorandum and supersedes the
information in the Preliminary Memorandum to the extent inconsistent with the information in the
Preliminary Memorandum.

Unless otherwise indicated, terms used but not defined herein have the meanings assigned to such
terms in the Preliminary Memorandum.

	 	 	 
	Issuer:

	 	Kansas City Southern de México, S.A. de C.V.
	 
	 	 
	Notes Offered:

	 	 $200,000,000 aggregate principal amount of 12 1/2% Senior Notes due April 1,
2016 (the “Notes”).
	 
	 	 
	Maturity:

	 	The Notes will mature on April 1, 2016.
	 
	 	 
	Issue Price:

	 	 94.490% per Note and accrued interest, if any. The notes will be issued
with original issue discount for U.S. federal income tax purposes.
	 
	 	 
	Net Proceeds

	 	 $188,980,000
	 
	 	 
	Interest:

	 	The Notes will bear interest at 12 1/2% per annum, semi-annually in arrears.
	 
	 	 
	Interest Payment

Dates:

	 	Interest on the Notes will be paid semi-annually in arrears on each of
April 1 and October
 1 beginning on October 1, 2009.
	 
	 	 
	 

	 	Interest on the notes will accrue from the date of issuance.
	 
	 	 
	Record Dates:

	 	The record dates for the Notes will be March 15 and September 15 of each
year until maturity.

 

 

	 	 	 
	Optional 

Redemption:

	 	KCSM may redeem the Notes, in whole
or in part, at any time on or after
April 1, 2013. The redemption price
for the Notes (expressed as a
percentage of principal amount) will
be as follows, plus accrued
interest, liquidated damages, if
any, and any Additional Amounts to
the redemption date, if redeemed
during the 12-month period
commencing on April 1 of any year
set forth below:

	 	 	 	 	 
	Year	 	Redemption Price
	2013
	 	 	106.250	%
	2014
	 	 	103.125	%
	2015 and thereafter
	 	 	100.000	%

	 	 	 
	 

	 	In addition, before April 1, 2012,
KCSM may redeem up to 35% of the
Notes with net cash proceeds from
specified equity offerings at the
redemption price of 112.500% of the
principal amount thereof, plus
accrued interest, liquidated
damages, if any, and any Additional
Amounts to the redemption date.
However, we may only make such a
redemption if at least 65% of the
original aggregate principal amount
of Notes issued under the indenture
remains outstanding after the
redemption.
	 
	 	 
	 

	 	Upon completion of the registered
exchange offer as described under
“Description of the Notes —
Registered Exchange Offer;
Registration Rights,” we may also
redeem any Notes which were not
exchanged in the registered exchange
offer in an amount up to 2% of the
original aggregate principal amount
of Notes issued at a redemption
price of 100% of their principal
amount plus accrued interest,
liquidated damages, if any, and any
Additional Amounts to the redemption
date.
	 
	 	 
	 

	 	In addition, we may at our option
redeem the Notes at any time at 100%
of their principal amount plus any
accrued and unpaid interest, if the
Mexican withholding tax rate on
payments of interest in respect of
the Notes is increased, as a result
of a change in Mexican law, to a
rate in excess of 4.9%.
	 
	 	 
	Trade Date:

	 	March 24, 2009
	 
	 	 
	Settlement

Date:

	 	We expect that delivery of the Notes
will be made to investors in
book-entry form through the
facilities of The Depository Trust
Company on or about March 30, 2009.
	 
	 	 
	CUSIP and ISIN
 Numbers

	 	                               Restricted Global Note          Regulation S Global Note
	 

	 	CUSIP                    485161 AE3                             P6052A AC8
	 
	 	 
	 

	 	ISIN                        US485161AE36                      USP6052AAC82

 

 

SCHEDULE III

Supplemental Marketing Materials

[Road Show Materials]exv10w1

Exhibit 10.1

FORBEARANCE AGREEMENT AND THIRD AMENDMENT TO SECOND AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT

     FORBEARANCE AGREEMENT AND THIRD AMENDMENT TO SECOND AMENDED AND RESTATED LOAN AND SECURITY
AGREEMENT (this “Agreement”) dated as of April 28, 2009, by and among Wabash National
Corporation, a Delaware corporation, Wabash National, L.P., a Delaware limited partnership, Wabash
Wood Products, Inc. (f/k/a WNC Cloud Merger Sub, Inc.), an Arkansas corporation, FTSI Distribution
Company, L.P., a Delaware limited partnership and Transcraft Corporation, a Delaware corporation
(collectively, “Borrowers”), Continental Transit Corporation, an Indiana corporation,
Wabash National Services, L.P., a Delaware limited partnership, Wabash National Trailer Centers,
Inc., a Delaware corporation, Wabash Financing LLC, a Delaware limited liability company, National
Trailer Funding, L.L.C., a Delaware limited liability company, Cloud Oak Flooring Company, Inc., an
Arkansas corporation, Wabash National Manufacturing, L.P. (f/k/a Wabash National Lease Receivables,
L.P.), a Delaware limited partnership (collectively, “Guarantors”), the Lenders party
hereto, and Bank of America, N.A., a Rhode Island corporation (“Agent”), as Agent for the
Lenders.

R E C I T A L S:

     WHEREAS, Agent, Lenders and Borrowers have entered into certain financing arrangements
pursuant to the Second Amended and Restated Loan and Security Agreement, dated as of March 6, 2007,
by and among Agent, the Lenders party thereto and Borrowers (as the same may have heretofore been
or may hereafter be further amended, modified, supplemented, extended, renewed, restated or
replaced (the “Loan Agreement”));

     WHERAS, as of the date hereof, Borrowers are in default under the Loan Agreement as more
particularly described below;

     WHEREAS, the circumstances described herein constitute multiple Events of Default under the
Loan Agreement and the Loan Documents;

     WHEREAS, Borrowers have requested that Agent and Lenders forbear from exercising their rights
as a result of such Events of Default, which are continuing, and that Lenders provide further Loan
advances and other financial accommodations to Borrowers notwithstanding such Events of Default;
and

     WHEREAS, Agent and Lenders are willing to agree to forbear from exercising certain of its
rights and remedies and provide certain further loans and other financial accommodations to
Borrowers solely for the period and on the terms and conditions specified herein.

     THEREFORE, in consideration of the foregoing, and the respective agreements, warranties and
covenants contained herein, the parties hereto agree as follows:

 

 

SECTION 1. DEFINITIONS

          1.1.
Interpretation. All capitalized terms used herein (including the recitals hereto) shall
have the respective meanings ascribed thereto in the Loan Agreement unless otherwise defined
herein.

          1.2.
Additional Definitions. As used herein, the following terms shall have the respective
meanings given to them below:

          “Anticipated
 Defaults” shall mean the Events of Default more particularly identified in
Section 2 of Exhibit A hereto.

          “Existing Defaults” shall mean the Events of Default more particularly identified in Section 1
of Exhibit A hereto.

          “Forbearance Period” shall have the meaning set forth in Section 3.2(a) hereof.

SECTION 2. ACKNOWLEDGMENTS

          2.1.
Acknowledgment of Obligations. Each Borrower hereby acknowledges, confirms and agrees
that as of the close of business on April 27, 2009, Borrowers are, jointly and severally, indebted
to Agent and Lenders in respect of the Revolving Credit Loan in the principal amount of
$61,357,817.48. All Loans, together with interest accrued and accruing thereon, and all fees,
costs, expenses and other charges now or hereafter payable by Borrowers to Agent and Lenders, are
unconditionally owing by Borrowers to Agent and Lenders, without offset, defense or counterclaim of
any kind, nature or description whatsoever.

          2.2.
Acknowledgment of Security Interests. Each Borrower hereby acknowledges, confirms and
agrees that Agent, for the benefit of itself and Lenders, has and shall continue to have valid,
enforceable and perfected first-priority liens upon and security interests in all of the real and
personal property of each Borrower and each Guarantor heretofore granted to Agent pursuant to the
Loan Agreement and the Loan Documents or otherwise granted to or held by Agent, subject only to
Permitted Liens.

          2.3.
Binding Effect of Documents. Each Borrower and each Guarantor hereby acknowledges,
confirms and agrees that: (a) each of the Loan Agreement and the Loan Documents to which it is a
party has been duly executed and delivered to Agent by such Borrower and such Guarantor, and each
is and shall remain in full force and effect as of the date hereof except as modified pursuant
hereto, (b) the agreements and obligations of such Borrower or Guarantor contained in such
documents and in this Agreement constitute the legal, valid and binding obligations and liabilities
of such Borrower or Guarantor, enforceable against it in accordance with their respective terms,
and such Borrower or Guarantor has no valid defense to the enforcement of such obligations and
liabilities, and (c) Agent and Lenders are and shall be entitled to the rights, remedies and
benefits provided for under the Loan Agreement and the Loan Documents and applicable law.

-2-

 

          2.4.
Payment by Lenders. Agent and Lenders hereby acknowledge that solely during the
Forbearance Period (defined below) and subject to the terms of this Agreement, Lenders shall
continue to fund Revolving Credit Loans, pursuant to the terms of the Loan Agreement, including
without limitation the settlement of any Swingline Loan.

SECTION 3. FORBEARANCE IN RESPECT OF EXISTING DEFAULTS

          3.1.
Acknowledgment of Default. Each Borrower hereby acknowledges and agrees that the
Existing Defaults have occurred and are continuing, each of which constitutes an Event of Default
and entitles Agent and Lenders to exercise their respective rights and remedies under the Loan
Agreement and the Loan Documents, applicable law or otherwise. Each Borrower represents and
warrants that as of the date hereof, no other Events of Default exist other than the Existing
Defaults. Each Borrower hereby acknowledges and agrees that Agent and Lenders have the exercisable
right to declare the obligations of Borrowers and Guarantors under the Loan Documents to be
immediately due and payable under the terms of the Loan Agreement and the Loan Documents.

          3.2. Forbearance.

          (a) In reliance upon the representations, warranties and covenants of Borrowers contained in
this Agreement, and subject to the terms and conditions of this Agreement and any documents or
instruments executed in connection herewith, Agent, on behalf of itself and Lenders, agrees to
forbear from exercising its rights and remedies under the Loan Agreement and the Loan Documents or
applicable law in respect of or arising out of the Existing Defaults and the Anticipated Defaults,
for the period (the “Forbearance Period”) commencing on the date hereof and ending on the
date which is the earlier of: (i) May 29, 2009 or (ii) the occurrence or existence of any Event of
Default, other than the Existing Defaults and the Anticipated Defaults.

          (b) Upon the termination of the Forbearance Period, the agreement of Agent and Lenders to
forbear shall automatically and without further action terminate and be of no force and effect, it
being expressly agreed that the effect of such termination will be to permit Agent and Lenders to
exercise immediately all rights and remedies under the Loan Agreement and the Loan Documents and
applicable law, including, but not limited to, (i) ceasing to make any further Loans and
(ii) accelerating all of the Obligations; in each case without any further notice to Borrowers,
passage of time or forbearance of any kind.

          3.3. No Other Waivers; Reservation of Rights.

          (a) Agent and Lenders have not waived, are not by this Agreement waiving, and have no
intention of waiving, any Events of Default which may be continuing on the date hereof or any
Events of Default which may occur after the date hereof (whether the same or similar to the
Existing Defaults, the Anticipated Defaults, or otherwise), and Agent and Lenders have not agreed
to forbear with respect to any of its rights or remedies concerning any Events of Default (other
than, during the Forbearance Period, the Existing Defaults and the Anticipated Defaults to the
extent expressly set forth herein) occurring at any time.

-3-

 

          (b) Subject to Section 3.2 above (solely with respect to the Existing Defaults and the
Anticipated Defaults), Lender reserves the right, in its discretion, to exercise any or all of its
rights and remedies under the Loan Agreement and the Loan Documents as a result of any other Events
of Default occurring at any time. Lender has not waived any of such rights or remedies, and
nothing in this Agreement, and no delay on its part in exercising any such rights or remedies,
shall be construed as a waiver of any such rights or remedies.

          3.4. Additional Events of Default. The parties hereto acknowledge, confirm and agree that any
misrepresentation by any Borrower, or any failure of any Borrower or any Guarantor to comply with
the covenants, conditions and agreements contained in this Agreement, the Loan Agreement and the
Loan Documents or in any other agreement, document or instrument at any time executed and/or
delivered by any Borrower or any Guarantor with, to or in favor of Agent and/or Lenders shall
constitute an Event of Default under this Agreement, the Loan Agreement and the Loan Documents. In
the event any Person, other than Agent and Lenders, shall at any time exercise for any reason
(including, without limitation, by reason of any Existing Defaults, any other present or future
Event of Default, or otherwise) any of its rights or remedies against any Borrower or any Guarantor
or any other obligor providing credit support for such Borrower’s or such Guarantor’s obligations
to such other Person, or against such Borrower’s or such Guarantor’s or such other obligor’s
properties or assets, such event shall constitute an Event of Default hereunder and an Event of
Default under the Loan Agreement.

SECTION 4. AMENDMENTS TO LOAN AGREEMENT

          4.1. The following new defined term is hereby added to Appendix A of the Loan Agreement in its
respective alphabetical order therein:

          “Amendment No. 3 Date” – April 28, 2009.

          4.2. The definition of “Applicable Margin” in Appendix A of the Loan Agreement is hereby
amended and restated in its entirety as follows:

     “Applicable Margin” – from the Amendment No. 3 Date, the percentages
set forth below with respect to the Base Rate Portion, the LIBOR Portion and the
Unused Line Fee.

	 	 	 	 	 
	Base Rate Portion
	 	 	2.25	%
	LIBOR Portion
	 	 	3.75	%
	Unused Line Fee
	 	 	0.25	%

          4.3. The definition of “Borrowing Base” in Appendix A of the Loan Agreement is hereby amended
by amending and restating clause (ii) of such definition in its entirety as follows:

	 	(ii)	 	an amount equal to the sum of

	 	(a)	 	90% of the net amount of Eligible
Accounts outstanding at such date; plus

-4-

 

	 	(b)	 	the least of (i) 85% of the net
orderly liquidation percentage of Eligible Inventory at such
date and (ii) the sum of (A) 85% of the net orderly liquidation
value of Eligible Trailer Inventory at such date, plus
(B) 75% of the value of Eligible Bill and Hold Inventory at such
date, plus (C) 70% of the value of Eligible Inventory
consisting of raw materials or parts (including Bill and Hold
Inventory not constituting Eligible Bill and Hold Inventory) at
such date, plus (D) 50% of the value of Eligible
Inventory consisting of work-in-process at such date; plus

	 
	 	(c)	 	(i) at all times prior to the
Fixed Asset Election Date, the Fixed Asset Sublimit or (ii) at
all times on and after the Fixed Asset Election Date, the least
of (A) the Maximum Fixed Asset Amount or (B) the sum of (x) 85%
of the net orderly liquidation value of Eligible Equipment at
such date and (y) 65% of the fair market value of Eligible Real
Property at such date; minus
	 
	 	(d)	 	$22,500,000.

          4.4. The definition of “Revolving Credit Maximum Amount” in Appendix A of the Loan Agreement
is hereby amended and restated in its entirety as follows:

     “Revolving Credit Maximum Amount” — $125,000,000, as such amount may be
increased or reduced from time to time pursuant to the terms of the Agreement.”

          4.5. Section 8.1.4 of the Loan Agreement is hereby amended and restated in its entirety as
follows:

     8.1.4. Borrowing Base Certificates. On or before 11:00 a.m. (Chicago,
IL time) on the second Business Day of each calendar week from and after
the Amendment No. 3 Date, Borrowers shall deliver to Agent, in form reasonably
acceptable to Agent, a Borrowing Base Certificate as of the last day of the
immediately preceding calendar week, with such supporting materials as Agent shall
reasonably request.  On or before 11:00 a.m. (Chicago, IL time) on the second
Business Day of each month from and after the Amendment No. 3 Date, Borrowers shall
deliver to Agent a borrowing base report, in the form of the weekly Borrowing Base
Certificates delivered pursuant to the immediately prior sentence, as of the last
day of the immediately preceding month, with such supporting materials as Agent
shall reasonably request.  On or before the 20th day of each month from and after
the Amendment No. 3 Date, Borrowers shall deliver to Agent, in form and reasonably
acceptable to Agent, a borrowing base report as of the last day of the immediately
preceding month with such supporting materials as Agent shall reasonably request,
including eligibility calculations of

-5-

 

Accounts, Inventory, Real Property and
Equipment, and a reconciliation to the monthly
report delivered pursuant to the immediately prior sentence. If Agent in its
sole discretion deems it advisable, Borrowers shall deliver to Agent in form
reasonably acceptable to Agent, a Borrowing Base Certificate on each Business
Day, as of the immediately preceding Business Day with such supporting materials as
Agent shall reasonably request.  All Borrowing Base Certificates shall reflect all
information for each Borrower on a Consolidated and consolidating basis.

SECTION 5. COVENANTS

          5.1. Consultant. As of the date hereof, Borrowers shall have hired a consultant, auditor,
examiner or other similar agent, satisfactory to Agent, to evaluate the financial operations and
conditions of the Borrowers and the potential restructuring of the business. Each Borrower
acknowledges and agrees that all fees and expenses of any such consultant, auditor, examiner or
other similar agent shall be payable by Borrowers.

          5.2. Account Control Agreements. Within five (5) Business Days of the date hereof, Borrowers
shall deliver evidence to Agent that each Borrower is in compliance with Section 8.1.9 of the Loan
Agreement.

          5.3. Collateral Questionnaire. Within 10 Business Days of the date hereof, Borrowers shall
deliver to Agent, a completed collateral questionnaire with respect to Borrower and each Guarantor,
in form and substance satisfactory to Agent.

          5.4. Default Interest. Agent and Lenders hereby agree that solely during the Forbearance
Period and subject to the terms and conditions of this Agreement, Lenders shall not institute the
default rate of interest set forth in Section 2.1.2 of the Loan Agreement.

SECTION 6. REPRESENTATIONS AND WARRANTIES

     Each Borrower hereby represents, warrants and covenants as follows:

          6.1. Representations in the Loan Agreement, Loan Documents. Each of the representations and
warranties made by or on behalf of each Borrower and each Guarantor to Agent and Lenders in the
Loan Agreement or any of the Loan Documents was true and correct when made, and is, except for the
Existing Defaults, true and correct on and as of the date of this Agreement with the same full
force and effect as if each of such representations and warranties had been made by such Borrower
or such Guarantor on the date hereof and in this Agreement, except for such representations and
warranties limited by their terms to a specific earlier date, in which case such representations
and warranties are true and correct as of such earlier date).

          6.2. Binding Effect of Documents. This Agreement has been duly authorized, executed and
delivered to Agent and Lenders by each Borrower and the Consent and Reaffirmation has been duly
authorized, executed and delivered to Agent and Lenders by each Guarantor and each is enforceable
in accordance with its terms and is in full force and effect.

-6-

 

          6.3. No Conflict. The execution, delivery and performance of this Agreement by each Borrower
will not violate any requirement of law or contractual obligation of any Borrower
and will not result in, or require, the creation or imposition of any Lien on any of its
properties or revenues.

SECTION 7. CONDITIONS TO EFFECTIVENESS OF CERTAIN PROVISIONS OF THIS AGREEMENT

          The effectiveness of the terms and provisions of Section 3.2 of this Agreement shall be
subject to the receipt by Agent of each of the following, in form and substance satisfactory to
Agent:

          7.1. an original of this Agreement, duly authorized, executed and delivered by Borrower;

          7.2. a copy of the Consent and Reaffirmation attached hereto as Exhibit B,
duly authorized, executed and delivered by each signatory thereto;

          7.3. each agreement, document and instrument requested by Lender in connection with this
Agreement; and

          7.4. all proceedings taken in connection with the transactions contemplated by this Agreement
and all documents, instruments and other legal matters incident thereto shall be satisfactory to
Agent and its legal counsel.

SECTION 8. MISCELLANEOUS

          8.1. Effect of Agreement. Except as modified pursuant hereto, no other changes or
modifications to the Loan Agreement and the Loan Documents are intended or implied and in all other
respects the Loan Agreement and the Loan Documents hereby are ratified, restated and confirmed by
all parties hereto as of the effective date hereof. To the extent of conflict between the terms of
this Agreement, the Loan Agreement and the Loan Documents, the terms of this Agreement shall govern
and control. The Loan Agreement and this Agreement shall be read and construed as one agreement.

          8.2. Costs and Expenses. Each Borrower absolutely and unconditionally agrees to pay to Agent,
on demand by Agent at any time, whether or not all or any of the transactions contemplated by this
Agreement are consummated: all reasonable fees and disbursements of any counsel to Agent in
connection with the preparation, negotiation, execution or delivery of this Agreement and any
agreements contemplated hereby and reasonable expenses which shall at any time be incurred or
sustained by Agent or any participant of Agent or any of their respective directors, officers,
employees or agents as a consequence of or in any way in connection with the preparation,
negotiation, execution, or delivery of this Agreement and any agreements contemplated hereby.

-7-

 

          8.3. Further Assurances. At Borrowers’ expense, the parties hereto shall execute and deliver
such additional documents and take such further action as may be necessary or desirable to
effectuate the provisions and purposes of this Agreement.

          8.4.
Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of
each of the parties hereto and their respective successors and assigns.

          8.5. Survival of Representations and Warranties. All representations and warranties made in
this Agreement or any other document furnished in connection with this Agreement shall survive the
execution and delivery of this Agreement and such other documents, and no investigation by Agent or
any closing shall affect the representations and warranties or the right of Agent to rely upon
them.

          8.6. Release.

          (a) In consideration of the agreements of Agent and Lenders contained herein and for other
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, each
Borrower and each Guarantor executing a Consent and Reaffirmation in the form attached hereto, on
behalf of itself and its successors and assigns, and its present and former shareholders,
affiliates, subsidiaries, divisions, predecessors, directors, officers, attorneys, employees,
agents and other representatives (such Borrowers, such Guarantors and all such other Persons being
hereinafter referred to collectively as the “Releasing Parties” and individually as a
“Releasing Party”), hereby absolutely, unconditionally and irrevocably releases, remises
and forever discharges Agent and Lenders, and their respective successors and assigns, and their
respective present and former shareholders, affiliates, subsidiaries, divisions, predecessors,
directors, officers, attorneys, employees, agents and other representatives (Agent and such Lenders
and all such other Persons being hereinafter referred to collectively as the “Releasees”
and individually as a “Releasee”), of and from all demands, actions, causes of action,
suits, covenants, contracts, controversies, agreements, promises, sums of money, accounts, bills,
reckonings, damages and any and all other claims, counterclaims, defenses, rights of set-off,
demands and liabilities whatsoever (individually, a “Claim” and collectively,
“Claims”) of every kind and nature, known or unknown, suspected or unsuspected, at law or
in equity, which any Borrower or any Guarantor or any of their respective successors, assigns, or
other legal representatives may now or hereafter own, hold, have or claim to have against the
Releasees or any of them for, upon, or by reason of any circumstance, action, cause or thing
whatsoever which arises at any time on or prior to the date of this Agreement, including, without
limitation, for or on account of, or in relation to, or in any way in connection with this
Agreement, the Loan Agreement, or the Loan Documents or transactions hereunder or thereunder.

          (b) Each Borrower and each Guarantor understands, acknowledges and agrees that the release set
forth above may be pleaded as a full and complete defense and may be used as a basis for an
injunction against any action, suit or other proceeding which may be instituted, prosecuted or
attempted in breach of the provisions of such release.

          (c) Each Borrower and each Guarantor agrees that no fact, event, circumstance, evidence or
transaction which could now be asserted or which may hereafter be discovered shall affect in any
manner the final, absolute and unconditional nature of the release set forth above.

-8-

 

          8.7. Covenant Not to Sue. Each of the Releasing Parties hereby absolutely, unconditionally
and irrevocably, covenants and agrees with and in favor of each Releasee that it will not sue (at
law, in equity, in any regulatory proceeding or otherwise) any Releasee on the basis

of any Claim released, remised and discharged by any Borrower or any Guarantor pursuant to
Section 8.6 above. If any Releasing Party violates the foregoing covenant, each Borrower and each
Guarantor, for itself and its successors and assigns, and its present and former shareholders,
affiliates, subsidiaries, divisions, predecessors, directors, officers, attorneys, employees,
agents and other representatives, agrees to pay, in addition to such other damages as any Releasee
may sustain as a result of such violation, all attorneys’ fees and costs incurred by any Releasee
as a result of such violation.

          8.8.
Severability. Any provision of this Agreement held by a court of competent jurisdiction
to be invalid or unenforceable shall not impair or invalidate the remainder of this Agreement.

          8.9. Reviewed by Attorneys. Each Borrower and each Guarantor represents and warrants to Agent
and Lenders that it (a) understands fully the terms of this Agreement and the consequences of the
execution and delivery of this Agreement, (b) has been afforded an opportunity to discuss this
Agreement with, and have this Agreement reviewed by, such attorneys and other persons as such
Borrower and such Guarantor may wish, and (c) has entered into this Agreement and executed and
delivered all documents in connection herewith of its own free will and accord and without threat,
duress or other coercion of any kind by any Person. The parties hereto acknowledge and agree that
neither this Agreement nor the other documents executed pursuant hereto shall be construed more
favorably in favor of one than the other based upon which party drafted the same, it being
acknowledged that all parties hereto contributed substantially to the negotiation and preparation
of this Agreement and the other documents executed pursuant hereto or in connection herewith.

          8.10. Governing Law: Consent to Jurisdiction and Venue. EXCEPT AS OTHERWISE EXPRESSLY PROVIDED
IN THE LOAN AGREEMENT AND ANY OF THE LOAN DOCUMENTS, THIS AGREEMENT, THE LOAN AGREEMENT AND THE
LOAN DOCUMENTS AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER AND THEREUNDER SHALL BE
GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF ILLINOIS,
WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES. EACH BORROWER HEREBY CONSENTS AND AGREES THAT THE
STATE OR FEDERAL COURTS LOCATED IN COOK COUNTY, ILLINOIS SHALL HAVE EXCLUSIVE JURISDICTION TO HEAR
AND DETERMINE ANY CLAIMS OR DISPUTES BETWEEN ANY BORROWER AND AGENT AND/OR LENDERS PERTAINING TO
THIS AGREEMENT OR THE LOAN AGREEMENT OR THE LOAN DOCUMENTS OR TO ANY MATTER ARISING OUT OF OR
RELATED TO THIS AGREEMENT OR THE LOAN AGREEMENT OR ANY OF THE LOAN DOCUMENTS; AND
FURTHER PROVIDED, THAT NOTHING IN THIS AGREEMENT SHALL BE DEEMED OR OPERATE TO
PRECLUDE LENDER FROM BRINGING SUIT OR TAKING OTHER LEGAL ACTION IN ANY OTHER JURISDICTION TO
COLLECT THE OBLIGATIONS, TO REALIZE ON THE COLLATERAL OR ANY OTHER SECURITY FOR THE OBLIGATIONS, OR
TO ENFORCE A JUDGMENT OR OTHER COURT ORDER IN FAVOR OF AGENT OR

-9-

 

ANY LENDER. EACH BORROWER
EXPRESSLY SUBMITS AND CONSENTS IN ADVANCE TO SUCH JURISDICTION IN ANY ACTION OR SUIT COMMENCED IN
ANY SUCH COURT, AND SUCH BORROWER HEREBY WAIVES ANY OBJECTION WHICH IT MAY HAVE
BASED UPON LACK OF PERSONAL JURISDICTION, IMPROPER VENUE OR FORUM NON
CONVENIENS AND HEREBY CONSENTS TO THE GRANTING OF SUCH LEGAL OR EQUITABLE RELIEF AS IS
DEEMED APPROPRIATE BY SUCH COURT. EACH BORROWER HEREBY WAIVES PERSONAL SERVICE OF ANY AND ALL
PROCESS ISSUED IN ANY SUCH ACTION OR SUIT AND AGREES THAT SERVICE OF SUCH PROCESS MAY BE MADE BY
REGISTERED OR CERTIFIED MAIL ADDRESSED TO SUCH BORROWER AT THE ADDRESS SET FORTH IN THE LOAN
AGREEMENT AND THAT SERVICE SO MADE SHALL BE DEEMED COMPLETED UPON THE EARLIER OF SUCH BORROWER’S
ACTUAL RECEIPT THEREOF OR THREE (3) DAYS AFTER THE SAME HAS BEEN POSTED.

          8.11. Mutual Waiver of Jury Trial. THE PARTIES HERETO WAIVE ALL RIGHTS TO TRIAL BY JURY IN
ANY ACTION, SUIT, OR PROCEEDING BROUGHT TO RESOLVE ANY DISPUTE, WHETHER ARISING IN CONTRACT, TORT,
OR OTHERWISE BETWEEN LENDER AND BORROWER ARISING OUT OF, CONNECTED WITH, RELATED OR INCIDENTAL TO
THE RELATIONSHIP ESTABLISHED BETWEEN THEM IN CONNECTION WITH THIS AGREEMENT OR THE LOAN AGREEMENT
OR THE OTHER LOAN DOCUMENTS OR THE TRANSACTIONS RELATED THERETO.

          8.12. Counterparts. This Agreement may be executed in any number of counterparts, but all of
such counterparts shall together constitute but one and the same agreement.

-10-

 

     IN WITNESS WHEREOF, this Agreement is executed and delivered as of the day and year first
above written.

	 	 	 	 	 	 	 
	 	 	BORROWERS:	 	 
	 
	 	 	 	 	 	 
	 	 	WABASH NATIONAL CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Robert J. Smith	 	 
	 

	 	Name:
	 	Robert J. Smith	 	 
	 

	 	Title:
	 	Senior Vice President and Chief Financial Officer	 	 
	 
	 	 	 	 	 	 
	 	 	WABASH NATIONAL L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Wabash National Trailer Centers, Inc.,
its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Robert J. Smith	 	 
	 

	 	Name:
	 	Robert J. Smith	 	 
	 

	 	Title:
	 	Vice President Treasurer	 	 
	 
	 	 	 	 	 	 
	 	 	WABASH WOOD PRODUCTS, INC. (f/k/a WNC Cloud Merger Sub, Inc.)	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Lawrence M. Cuculic	 	 
	 

	 	Name:
	 	Lawrence M. Cuculic	 	 
	 

	 	Title:
	 	Secretary	 	 
	 
	 	 	 	 	 	 
	 	 	FTSI DISTRIBUTION COMPANY, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Wabash National Trailer Centers, Inc.,
its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Robert J. Smith	 	 
	 

	 	Name:
	 	Robert J. Smith	 	 
	 

	 	Title:
	 	Vice President Treasurer	 	 
	 
	 	 	 	 	 	 
	 	 	TRANSCRAFT CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Robert J. Smith	 	 
	 

	 	Name:
	 	Robert J. Smith	 	 
	 

	 	Title:
	 	Vice President Treasurer	 	 

Signature Page to Forbearance Agreement And Third Amendment To Second Amended And Restated Loan And Security Agreement

 

 

	 	 	 	 	 	 	 
	 	 	GUARANTORS:	 	 
	 
	 	 	 	 	 	 
	 	 	CONTINENTAL TRANSIT CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Lawrence M. Cuculic	 	 
	 

	 	Name:
	 	Lawrence M. Cuculic	 	 
	 

	 	Title:
	 	Secretary	 	 
	 
	 	 	 	 	 	 
	 	 	WABASH NATIONAL SERVICES, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Wabash National Trailer Centers, Inc.,
its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Robert J. Smith	 	 
	 

	 	Name:
	 	Robert J. Smith	 	 
	 

	 	Title:
	 	Vice President Treasurer	 	 
	 
	 	 	 	 	 	 
	 	 	WABASH NATIONAL TRAILER CENTERS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Robert J. Smith	 	 
	 

	 	Name:
	 	Robert J. Smith	 	 
	 

	 	Title:
	 	Vice President Treasurer	 	 
	 
	 	 	 	 	 	 
	 	 	WABASH FINANCING LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Robert J. Smith	 	 
	 

	 	Name:
	 	Robert J. Smith	 	 
	 

	 	Title:
	 	Treasurer, Manager	 	 
	 
	 	 	 	 	 	 
	 	 	NATIONAL TRAILER FUNDING, L.L.C.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Wabash National Trailer Centers, Inc.,
its Sole Member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Robert J. Smith	 	 
	 

	 	Name:
	 	Robert J. Smith	 	 
	 

	 	Title:
	 	Vice President Treasurer	 	 

Signature Page to Forbearance Agreement And Third Amendment To Second Amended And Restated Loan And Security Agreement

 

 

	 	 	 	 	 	 	 
	 	 	WABASH NATIONAL MANUFACTURING, L.P. (f/k/a Wabash National Lease
Receivables, L.P.)	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Wabash National Corporation,

its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Robert J. Smith	 	 
	 

	 	Name:
	 	Robert J. Smith	 	 
	 

	 	Title:
	 	Senior Vice President and Chief Financial Officer	 	 
	 
	 	 	 	 	 	 
	 	 	CLOUD OAK FLOORING COMPANY, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Robert J. Smith	 	 
	 

	 	Name:
	 	Robert J. Smith	 	 
	 

	 	Title:
	 	Treasurer	 	 

Signature Page to Forbearance Agreement And Third Amendment To Second Amended And Restated Loan And Security Agreement

 

 

	 	 	 	 	 	 	 
	 	 	AGENT:	 	 
	 
	 	 	 	 	 	 
	 	 	BANK OF AMERICA, N.A.,

as Agent and as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Robert J. Lund	 	 
	 

	 	Name:
	 	Robert J. Lund	 	 
	 

	 	Title:
	 	Senior Vice President	 	 

Signature Page to Forbearance Agreement And Third Amendment To Second Amended And Restated Loan And Security Agreement

	 	 	 	 	 	 	 

 

 

	 	 	 	 	 	 	 
	 	 	LENDER:	 	 
	 
	 	 	 	 	 	 
	 	 	PNC BANK, N.A.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Eric L. Moore	 	 
	 

	 	Name:
	 	Eric L. Moore	 	 
	 

	 	Title:
	 	Vice President	 	 

Signature Page to Forbearance Agreement And Third Amendment To Second Amended And Restated Loan And Security Agreement

 

 

	 	 	 	 	 	 	 
	 	 	LENDER:	 	 
	 
	 	 	 	 	 	 
	 	 	FIFTH THIRD BANK	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Evan J. Chu	 	 
	 

	 	Name:
	 	Evan J. Chu	 	 
	 

	 	Title:
	 	Officer	 	 

Signature Page to Forbearance Agreement And Third Amendment To Second Amended And Restated Loan And Security Agreement

 

 

	 	 	 	 	 	 	 
	 	 	LENDER:	 	 
	 
	 	 	 	 	 	 
	 	 	WELLS FARGO FOOTHILL, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Krista Wade	 	 
	 

	 	Name:
	 	Krista Wade	 	 
	 

	 	Title:
	 	Assistant Vice President	 	 

Signature Page to Forbearance Agreement And Third Amendment To Second Amended And Restated Loan And Security Agreement

 

 

	 	 	 	 	 	 	 
	 	 	LENDER:	 	 
	 
	 	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK, N.A.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Michael P. Gutia	 	 
	 

	 	Name:
	 	Michael P. Gutia	 	 
	 

	 	Title:
	 	Vice President	 	 

Signature Page to Forbearance Agreement And Third Amendment To Second Amended And Restated Loan And Security Agreement

 

 

	 	 	 
	 

	 	LENDER:
	 
	 	 
	 

	 	NATIONAL CITY BUSINESS CREDIT, INC.
	 
	 	 
	 

	 	By: /s/ Todd W. Milenius
	 

	 	Name: Todd W. Milenius
	 

	 	Title: Vice President

Signature Page to Forbearance Agreement And Third Amendment To Second Amended And Restated Loan And Security Agreement

 

 

	 	 	 
	 

	 	LENDER:
	 
	 	 
	 

	 	GENERAL ELECTRIC CAPITAL CORPORATION
	 
	 	 
	 

	 	By: /s/ Rebecca L. Milligan
	 

	 	Name: Rebecca L. Milligan
	 

	 	Title: Duly Authorized Signatory

Signature Page to Forbearance Agreement And Third Amendment To Second Amended And Restated Loan And Security Agreement

 

 

EXHIBIT A

to

FORBEARANCE AGREEMENT

SECTION 1

Existing Defaults

	(a)	 	The Event of Default under Section 10.1.3 of the Loan Agreement as a result of Borrowers’
failure to deliver to Agent audited financial statements of Wabash and its Subsidiaries for
fiscal year 2008, constituting a breach of Section 8.1.3(i) of the Loan Agreement;

	(b)	 	The Event of Default under Section 10.1.3 of the Loan Agreement arising as a result of the
legal name change, without prompt notification to Agent in writing, of Wabash Wood Products,
Inc. (f/k/a WNC Cloud Merger Sub, Inc.), constituting a breach of Section 8.1.11(b) of the
Loan Agreement;

	(c)	 	The Event of Default under Section 10.1.3 of the Loan Agreement arising as a result of the
legal name change, without prompt notification to Agent in writing, of Wabash National
Manufacturing, L.P. (f/k/a Wabash National Lease Receivables, L.P.), constituting a breach of
Section 8.1.11(b) of the Loan Agreement;

	(d)	 	The Event of Default under Section 10.1.3 of the Loan Agreement as a result of Borrowers’
breach of the Fixed Charge Coverage Ratio covenant for failure to maintain Availability equal
to or greater than $30,000,000, constituting a breach of Section 8.3 of the Loan Agreement;
and

	(e)	 	The Events of Default under Section 10.1.4 of the Loan Agreement as a result of Borrowers’
requests for Revolving Credit Loans during the existence of a Default or Event of Default,
constituting a breach of Section 3.1.1 of the Loan Agreement.

SECTION 2

Anticipated Defaults

	(a)	 	The Event of Default under Section 10.1.3 of the Loan Agreement as a result of Borrowers’
breach of the Fixed Charge Coverage Ratio covenant for failure to maintain Availability equal
to or greater than $30,000,000, constituting a breach of Section 8.3 of the Loan Agreement;
and

	(b)	 	The Event of Default under Section 10.1.3 of the Loan Agreement as a result of Borrowers’
failure to timely deliver to Agent an unqualified auditor’s opinion in connection with the
audited financial statements of Wabash and its Subsidiaries for fiscal year 2008, constituting
a breach of Section 8.1.3(i) of the Loan Agreement.

 

 

EXHIBIT B

to

FORBEARANCE AGREEMENT

CONSENT AND REAFFIRMATION

          Continental Transit Corporation, an Indiana corporation, Wabash National Services, L.P., a
Delaware limited partnership, Wabash National Trailer Centers, Inc., a Delaware corporation, Wabash
Financing LLC, a Delaware limited liability company, National Trailer Funding, L.L.C., a Delaware
limited liability company, Cloud Oak Flooring Company, Inc., an Arkansas corporation, Wabash
National Manufacturing, L.P. (f/ka/ Wabash National Lease Receivables, L.P.), a Delaware limited
partnership (each, a “Guarantor” and collectively, the “Guarantors”), each hereby
(i) acknowledges receipt of a copy of the foregoing Forbearance Agreement (the “Agreement”)
among Guarantors, Wabash National Corporation, a Delaware corporation, Wabash National, L.P., a
Delaware limited partnership, Wabash Wood Products, Inc. (f/k/a WNC Cloud Merger Sub, Inc.), an
Arkansas corporation, FTSI Distribution Company, L.P., a Delaware limited partnership and
Transcraft Corporation, a Delaware corporation (collectively, the “Borrowers”), the Lenders
party thereto and Bank of America, N.A., a Rhode Island corporation (“Agent”);
(ii) consents to Borrowers’ execution and delivery of the Agreement; (iii) reaffirms its
obligations under the Loan Documents to which such Guarantor is a party; (iv) agrees to be bound by
the Agreement, including Section 3.2, Section 8.6 and Section 8.7 of the Agreement; and (v) affirms
that nothing contained in the Agreement, except as specifically stated therein, shall modify in any
respect whatsoever any Loan Document to which it is a party.

          Although each Guarantor has been informed of the matters set forth herein and has acknowledged
and agreed to same, such Guarantor understands that Agent and Lenders have no obligation to inform
such Guarantor of such matters in the future or to seek such Guarantor’s acknowledgment or
agreement to future amendments, waivers or consents, and nothing herein shall create such a duty.

          Each of the undersigned further agrees that after giving effect to the Agreement, each
Guaranty and all such other Loan Documents shall remain in full force and effect.

 

 

     IN WITNESS WHEREOF, each Guarantor has executed this Consent and Reaffirmation on and as of
the date of the Agreement.

	 	 	 	 	 	 	 
	 	 	GUARANTORS:	 	 
	 
	 	 	 	 	 	 
	 	 	CONTINENTAL TRANSIT CORPORATION	 	 
	 
	 	 	 	 	 	 
	 	 	By: /s/ Lawrence M. Cuculic	 	 
	 	 	Name: Lawrence M. Cuculic	 	 
	 	 	Title: Secretary	 	 
	 
	 	 	 	 	 	 
	 	 	WABASH NATIONAL SERVICES, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Wabash National Trailer Centers, Inc.,	 	 
	 

	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 
	 	 	By: /s/ Robert J. Smith	 	 
	 	 	Name: Robert J. Smith	 	 
	 	 	Title: Vice President Treasurer	 	 
	 
	 	 	 	 	 	 
	 	 	WABASH NATIONAL TRAILER CENTERS, INC.	 	 
	 
	 	 	 	 	 	 
	 	 	By: /s/ Robert J. Smith	 	 
	 	 	Name: Robert J. Smith	 	 
	 	 	Title: Vice President Treasurer	 	 
	 
	 	 	 	 	 	 
	 	 	WABASH FINANCING LLC	 	 
	 
	 	 	 	 	 	 
	 	 	By: /s/ Robert J. Smith	 	 
	 	 	Name: Robert J. Smith	 	 
	 	 	Title: Treasurer, Manager	 	 
	 
	 	 	 	 	 	 
	 	 	NATIONAL TRAILER FUNDING, L.L.C.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Wabash National Trailer Centers, Inc.,	 	 
	 

	 	 	 	its Sole Member	 	 
	 
	 	 	 	 	 	 
	 	 	By: /s/ Robert J. Smith	 	 
	 	 	Name: Robert J. Smith	 	 
	 	 	Title: Vice President Treasurer	 	 

Signature Page to Consent and Reaffirmation to Forbearance Agreement And Third Amendment To Second Amended And Restated Loan And Security Agreement

 

 

	 	 	 	 	 	 	 
	 	 	WABASH NATIONAL MANUFACTURING, L.P. (f/k/a Wabash National Lease Receivables,
L.P.)	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Wabash National Corporation,	 	 
	 

	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 
	 	 	By: /s/ Robert J. Smith	 	 
	 	 	Name: Robert J. Smith	 	 
	 	 	Title: Senior Vice President and Chief Financial Officer	 	 
	 
	 	 	 	 	 	 
	 	 	CLOUD OAK FLOORING COMPANY, INC.	 	 
	 
	 	 	 	 	 	 
	 	 	By: /s/ Robert J. Smith	 	 
	 	 	Name: Robert J. Smith	 	 
	 	 	Title: Treasurer	 	 

Signature Page to Consent and Reaffirmation to Forbearance Agreement And Third Amendment To Second Amended And Restated Loan And Security Agreement

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