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EXHIBIT 10.3

	 	 	 
	PRINTED SEAL BEARING THE

	 	 
	OFFICIAL INSIGNIA OF
	 	 
	MEXICO, READING: UNITED
	 	 
	MEXICAN STATES; MINISTRY
	 	 
	OF TRANSPORT AND
	 	 
	COMMUNICATIONS
	 	 

AMENDMENT TO THE CONCESSION TITLE AWARDED BY THE FEDERAL GOVERNMENT, THROUGH THE MINISTRY OF
TRANSPORT AND COMMUNICATIONS (THE “MINISTRY”) ON DECEMBER 2, 1996 TO THE COMPANY FERROCARRIL DEL
NORESTE, S.A. DE C.V., COMPANY THAT LATER CHANGED ITS BUSINESS NAME TO TFM, S.A. DE C.V., AND IS
CURRENTLY KANSAS CITY SOUTHERN DE MÉXICO, S.A. DE C.V. (THE “CONCESSIONAIRE”) AND TO THE PREVIOUS
AMENDMENT OF FEBRUARY 12, 2001, IN ACCORDANCE WITH THE FOLLOWING RECITALS AND CLAUSES.

R E C I T A L S

Terms appearing with a capital letter shall be understood as so defined in the Concession Title, as
said document is defined below.

	I.	 	On December 2, 1996, the Federal Government, through the Ministry, awarded the Concessionaire
concession title to operate and exploit the Northeast trunk line in order to provide public
railroad freight transport services on said line and auxiliary services, under the terms set
forth in the respective title, which was amended on February 12, 2001. The concession title
and the amendment to same shall be jointly referred to as the “Concession Title”.
	 
	 	 	The Concession Title established, among others, that the Ministry retains the right to award
concessions to third parties for the providing of public railroad passenger transport services,
and may exercise this power at any time during the effective period of the Concession Title.
Also, the Concessionaire would be obligated to provide any and all assistance that may be
required in order for passenger transport services to maintain their respective schedules,
without causing detriment or impediment to the providing of freight transport services.

	II.	 	The Maintenance Shop for Electric Locomotives, located at km A 9+800, with a surface area of
68,444.25 square meters (sixty-eight thousand four hundred and forty-four point two five
square meters) is included in the assets granted under the Concession Title. However, as the
location and surface area of this Maintenance Shop were not defined in the Concession Title,
Attachment Three to the Concession Title must be amended to include the details of the surface
area and location, and Attachment Four to the Concession Title must be amended to include the
plans marking the surface area for the Maintenance Shop for Electric Locomotives not included
in the Concession Title.

	III.	 	On May 6, 1997, Ferrocarril del Noreste, S.A. de C.V. changed its company name to TFM, S.A.
de C:V., the foregoing being recorded in public instrument 33,385, dated May 6, 1997,
notarized by Mr. Miguel Limón Díaz, Mexico City Notary Public number 97, which was duly
filed with the Mexico City Public Property and Business Registry, under commercial folio
number 222305.

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	PRINTED SEAL BEARING THE

	 	 
	OFFICIAL INSIGNIA OF
	 	 
	MEXICO, READING: UNITED
	 	 
	MEXICAN STATES; MINISTRY
	 	 
	OF TRANSPORT AND
	 	 
	COMMUNICATIONS
	 	 

	IV.	 	Following a public tender process, the Ministry awarded concession to the company
Ferrocarriles Suburbanos, S.A. de C.V. on August 25, 2005, to provide public railroad
passenger transport services under the modality of suburban train service on the
“Cuautitlán-Buenavista” line, located in the State of Mexico and in Mexico City, route that
may be extended to include the lines from Cuautitlán to Huehuetoca, State of Mexico, from
Lechería to Jaltocan, State of Mexico, and from San Rafael, Tlalnepantla, State of Mexico, to
Tacuba in Mexico City (hereinafter, the “Suburban Railroad”) and also for the use, benefit,
and exploitation of federal public property assets. Also, prior to the awarding of the
concession to Ferrocarriles Suburbanos, S.A. de C.V., the Ministry informed the
Concessionaire, through official notice number 120.1-312, dated March 22, 2004, that following
analysis of the operating needs, efficiency, and safety for the providing of the public
service to be concessioned through the Suburban Railroad project, the Ministry determined that
various track sections included in the Northeast railroad route awarded to this Concessionaire
under their Concession Title would be required for the providing of the abovementioned service
on the “Cuautitlán-Buenavista” line, initially, and on the “Cuautitlán-Huehuetoca” line,
accordingly, during a later stage, these track sections being located on the tracks known as
“Juárez” and “Morelos”.
	 
	 	 	In addition to the above, the Ministry informed the Concessionaire that in order for the
Concessionaire to continue providing the public railroad freight transport services the
Concessionaire currently provides under their Concession Title on the track sections in
question in a safe and efficient manner, the Ministry and/or the Suburban Railroad, at their
expense, would execute any and all works required on the infrastructure of the line, to the
satisfaction of the Concessionaire, on the “Cuautitlán-Buenavista” line. The foregoing
includes, but is not limited to, the removal of fiber optics and signaling property of the
Concessionaire from the confinement area to the location indicated by the Concessionaire for
this purpose.

	V.	 	From that established in Recital IV in relation to Recital I, first paragraph, herein, on
September 17, 2004, the Ministry and the Concessionaire executed an Agreement by which both
parties agreed, among others, to the terms and conditions under which the works on the
railroad lines and the track section would be executed, and also on the other railroad
infrastructure located on the Cuautitlán-Buenavista line (the “Agreement”). The foregoing,
under the terms of the conceptual design attached to the Agreement as Appendix “A”. Under the
terms of the Ninth clause of the Agreement, the Agreement would be integrally included in the
concession title as of the date on which said concession is awarded to Ferrocarriles
Suburbanos, S.A. de C.V..

	VI.	 	As a result of the tender referenced in Recital IV herein, Ferrocarriles Suburbanos assumed
the obligations acquired under the Agreement with regards to the modification, maintenance,
and conservation of the railroad lines and their layout, and also to the other railroad
infrastructure located on the Cuautitlán-Buenavista line, this being the reason for the
inclusion of the Agreement in the Suburban Railroad Concession Title as Appendix B to
Attachment Seven.

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	PRINTED SEAL BEARING THE

	 	 
	OFFICIAL INSIGNIA OF
	 	 
	MEXICO, READING: UNITED
	 	 
	MEXICAN STATES; MINISTRY
	 	 
	OF TRANSPORT AND
	 	 
	COMMUNICATIONS
	 	 

	VII.	 	TFM, S.A. de C.V. changed its company name on December 2, 2005 to Kansas City Southern de
México, S.A. de C.V., this being recorded in public instrument number 38013, dated December 2,
2005, notarized by Mr. Gabriel Benjamín Díaz Soto, Mexico City Notary
Public number 131, the first transcript of which was duly filed with the Mexico City Public
Property and Business Registry.

	VIII.	 	Under the terms set forth by the eighth clause of the Agreement, Ferrocarriles Suburbanos is
the party responsible for separating the traffic control center on the Cuautitlán-Buenavista
line. It is therefore unnecessary for the Concessionaire to continue to carry out the
operation, conservation, and maintenance of the overhead lines corresponding to the double
electrified track from between Buenavista and Huehuetoca, on the track section from kilometer
JM-0+000 to kilometer JM-43+974, the foregoing so that the Suburban Railroad project may use
the installations corresponding to the overhead lines in reference in a more efficient manner.

	IX.	 	As the concessionaire of the Suburban Railroad, under the executive project contained in
their concession, would execute the works on the overhead lines and all of the electrical
installations on the track from Buenavista to Huehuetoca, the Concessionaire is no longer
required to continue to operate the installations corresponding to the overhead lines on the
double electrified track on the Buenavista-Huehuetoca line, which runs from kilometer JM-0+000
to kilometer JM-43+974, and includes, but is not limited to, (i) the overhead lines at the
Valle de México Receiving Yard, Circulation Track, and Repair Shop for Electric Locomotives;
(ii) the overhead lines at the New Yard at Lechería; (iii) Traction Current Installations on
the Buenavista-Huehuetoca line; (iv) the traction current substations known as “Lechería”, “El
Salto”, “Héroes de Carranza”, “Dañú”, “La Manga”, “La Mansión”, and “Querétaro”; and also (v)
six sectioning posts and 11 sub-sectioning posts (jointly, the “Overhead Lines on the
Buenavista-Huehuetoca Line”), this being the reasoning for the elimination of the obligation
of the Concessionaire to conserve and maintain the double electrified track on the
Buenavista-Huehuetoca line on the track section indicated and to thus remove part of the
overhead lines from their responsibility. The foregoing, with the understanding that a portion
of the assets to be removed may be reused by the concessionaire of the Suburban Railroad.

	X.	 	As a result of that indicated in Recital IX, the Concessionaire has informed this Ministry of
their willingness to offer support to assist the Ministry in meeting compliance with the
commitments acquired under the Agreement, in order for the assets corresponding to the
overhead lines on the double electrified track on the Buenavista-Huehuetoca line to be used in
a more efficient manner to the benefit of the residents of the Valle de México Metropolitan
Area.
	 
	 	 	To this, the Concessionaire, through document dated July 7, 2006, requested the permission of
the head of the Railroad and Multimodal Transport Department to turn over the infrastructure
corresponding to the overhead lines indicated in Recital IX to the Ministry.

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	PRINTED SEAL BEARING THE

	 	 
	OFFICIAL INSIGNIA OF
	 	 
	MEXICO, READING: UNITED
	 	 
	MEXICAN STATES; MINISTRY
	 	 
	OF TRANSPORT AND
	 	 
	COMMUNICATIONS
	 	 

	XI.	 	Mr. José Guillermo Zozaya Délano accredited his position as legal representative for the
Concessionaire, holding sufficient legal powers to enter into this amendment to the Concession
Title, powers that have not been revoked nor modified in any manner, as recorded in public
instrument number 35,585, notarized by Mr. Gabriel Benjamín Díaz Soto, Mexico City Notary
Public number 131.

Given the above, under the terms of Article 36, sections I, VII, VIII, and XXVII, of the Federal
Government Organic Law; Articles 1, 5, 6 sections I, II, VIII, and IX, and 14 of the Railroad
Service Regulatory Law; Articles 6, section VI, 13, 15, and 16 of the General National Assets Law;
Articles 1, 3, and 15 of the Railroad Service Regulation; Article 5, sections XI and XVIII, of the
Ministry of Transport and Communications Internal Regulation, and condition 5.2 of the
Concession Title, this Department of the Federal Government hereby amends the Concession Title
awarded to the Concessionaire on December 2, 1996, and previously amended on February 12, 2001, in
accordance with the following:

C L A U S E S

FIRST.- Attachment Three to the Concession Title is hereby amended so as to incorporate the
properties report into the Attachment in reference, to reflect the Maintenance Shop for Electric
Locomotives as a public Asset and as being included in the Concession Title.

SECOND.- Attachment Four to the Concession Title is hereby amended so as to incorporate the plan
that marks the surface area, location, and boundaries of the Maintenance Shop for Electrical
Locomotives, plan that is attached hereto as Appendix One.

THIRD.- Condition 2.5 of the Concession Title is hereby amended to be written as follows:

“2.5 The Concessionaire may alter or execute works on the Railroad Line or the Assets when

the objective of said modifications is to modernize, reconstruct, conserve, or maintain the

line or the Assets in question, or to improve the efficiency or the quality of the railroad

service.

All works executed on the Railroad Line shall immediately become federal public assets,

independent of the duration of this Title and the Concessionaire shall acquire the

corresponding rights and obligations on same so conferred upon the Concessionaire by the

provisions indicated in points 1.4.1, 1.4.2, and 1.5.

The Concessionaire is hereby obligated to execute the works in adherence of the executive

project previously approved by the Ministry.

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	PRINTED SEAL BEARING THE

	 	 
	OFFICIAL INSIGNIA OF
	 	 
	MEXICO, READING: UNITED
	 	 
	MEXICAN STATES; MINISTRY
	 	 
	OF TRANSPORT AND
	 	 
	COMMUNICATIONS
	 	 

On the conclusion of said works, the characteristics, configuration, and specific dimensions

of the works executed shall be added to Attachment Two.”

FOURTH.- The Concession Title is hereby amended to eliminate all reference to the obligation to
conserve and maintain the Buenavista-Huehuetoca line. The Ministry shall authorize the respective
adjustments to the Business Plan, provided said body has previously approved the justification for
same.

FIFTH.- The Concessionaire shall, at their own expense, remove the Overhead Lines on the
Buenavista-Huehuetoca Line, solely in terms of the track section between kilometer JM-28+615 and
JM-43+974, and also any other not considered within the executive project for the Suburban
Railroad.

The removal of the Overhead Lines on the Buenavista-Huehuetoca Line referenced in the previous
paragraph includes the removal of the copper cable and other installations related to the
electrification of this track section, which shall be reverted to the Federal Government, at no
cost, in accordance with the inventory prepared by the Ministry and the Concessionaire jointly.

The assets and parts that may be dismantled and reused to be reverted by reason of the removal of
the overhead lines on the Buenavista-Huehuetoca Line, with the exception of those that cannot be
physically removed and delivered due to their nature, must be removed and delivered to the Federal
Government at the location, within Mexico, so indicated by the Ministry, at no cost to the Federal
Government, within 30 (thirty) days following the termination date of the dismantlement works. In
the event delivery cannot be completed due to causes imputable to the Federal Government, the
obligation of the Concessionaire to maintain the substations shall remain in effect for a maximum
period of 30 (thirty) days, from the date of signing hereunder, and following this period, the
Federal Government shall be responsible for delivery and shall also cover any and all
administrative and warehousing costs incurred. In the event the Overhead Lines on the
Buenavista-Huehuetoca Line cannot be delivered due to causes imputable to the Concessionaire, the
Concessionaire shall be responsible for their maintenance until such time as their delivery is
completed.

The assets that may be dismantled and reused that cannot be delivered to the Federal Government due
to any reason imputable to the Concessionaire must be paid according to the appraisal performed by
the Institute for the Administration and Appraisal of National Assets.

SIXTH.- The terms of this Amendment to the Concession Title shall enter into effect the day
following its execution.

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	PRINTED SEAL BEARING THE

	 	 
	OFFICIAL INSIGNIA OF
	 	 
	MEXICO, READING: UNITED
	 	 
	MEXICAN STATES; MINISTRY
	 	 
	OF TRANSPORT AND
	 	 
	COMMUNICATIONS
	 	 

On signing, this instrument shall be integrally included in the Concession Title. The conditions of
the Concession Title that are not subject to this Amendment shall remain in effect and be ratified
in their whole.

SEVENTH.- The Concessionaire hereby unconditionally accepts the Amendment to the Concession Title
subject of this instrument, in the whole of its terms.

This amendment to the Concession Title is hereby signed in triplicate, in Mexico City, Mexico on
the 22nd day of the month of November in the year two thousand and six.

MINISTRY OF TRANSPORT AND COMMUNICATIONS

ILLEGIBLE SIGNATURE

ILLEGIBLE INITIALS

ILLEGIBLE INITIALS

PEDRO CERISOLA Y WEBER

THE CONCESSIONAIRE

ILLEGIBLE SIGNATURE

JOSÉ GUILLERMO ZOZAYA DÉLANO

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6exv10w11

 

EXHIBIT 10.11

INDIVIDUAL INDEFINITE EMPLOYMENT AGREEMENT EXECUTED BY THE PARTY OF KANSAS CITY SOUTHERN DE
MEXICO, FORMERLY TFM, S.A. DE C.V. (HEREINAFTER TO BE REFERRED TO AS THE “COMPANY”), REPRESENTED
HEREIN BY MR. VICTOR MANUEL HUACUJA LEYZAOLA, AND BY THE PARTY OF MR. MANUEL VIRGILIO ZULAICA LOPEZ
(HEREINAFTER TO BE REFERRED TO AS THE “EMPLOYEE”), APPEARING ON HIS OWN BEHALF, IN ACCORDANCE WITH
THE FOLLOWING DECLARATIONS AND CLAUSES:

D E C L A R A T I O N S

	I.	 	The “COMPANY” hereby declares:
	 
	a)	 	To be a variable capital corporation, duly constituted in accordance with Mexican law.
	 
	b)	 	That under the company charter, the “COMPANY” has the capacity to enter into this agreement.
	 
	c)	 	That their address is that located at Montes Urales #625, Colonia Lomas de Chapultepec,
Delegación Miguel Hidalgo, Mexico City, Mexico, 11000.
	 
	d)	 	That the “COMPANY” requires the services of a qualified Employee that has the know-how
required to perform the duties of the position of Vice-President of Operations.
	 
	II.	 	The “EMPLOYEE” hereby declares:
	 
	a)	 	To bear the name as written herein.
	 
	b)	 	To be of Mexican nationality.
	 
	c)	 	To be 39 (Thirty-Nine) years of age.
	 
	d)	 	To be married.
	 
	e)	 	To be male.
	 
	f)	 	That their address is that located at Cerro de la Silla 4688-A Col. Residencial Mirador,
Monterrey, N.L. 64900, and also states that in the event of any change of address to that
indicated herein, the “EMPLOYEE” shall be obligated to so notify the “COMPANY” in writing
within a maximum period of five days from the date of the change of address, with the
understanding that failure to do so shall result in the previous address provided being
recognized as that authorized for all corresponding legal purposes resulting from this
Employment Agreement and specifically those stipulated by Articles 47 and 991 of the Federal
Labor Law.
	 
	g)	 	To be familiar with the business of the “COMPANY”, which on occasion may provide services to
other affiliate and/or subsidiary companies of TFM, S.A. de C.V., and the “EMPLOYEE”
acknowledges these relationships and agrees to execute tasks for same, however the “EMPLOYEE”
recognizes that their sole employer is the “COMPANY”.
	 
	h)	 	To have the abilities and the experience required to render their personal services to the
“COMPANY” with regards to the position subject of the present and to not hold any criminal
record to date, being legally authorized to perform their respective duties on signing
hereunder;
	 
	i)	 	To have read, understood, and to be aware of all internal regulations applicable to the
officers of the “COMPANY”.

 

 

On the merit of the declaratory statements above, the parties hereby agree to govern the present
relationship of contractual employment in accordance with the following:

C L A U S E S

FIRST. “THE DURATION OF THIS AGREEMENT”. This Employment Agreement shall be executed for
an indefinite period and may only be amended, suspended, rescinded, or terminated by the mutual
agreement of the parties or under the terms set forth by the Federal Labor Law, and applicable
regulations. The “EMPLOYEE” shall assume their duties as Vice-President of Operations for the
“COMPANY” on January 1, 2006. The date of May 15, 2000 is hereby recognized for the purposes of the
calculation of seniority. In the event the “COMPANY” terminates this Employment Agreement without
just cause, the “COMPANY” and the “EMPLOYEE” hereby agree that the sole obligation of the “COMPANY”
shall be to pay the “EMPLOYEE” a severance amount equal to one year base salary and any additional
payment made to the “EMPLOYEE” as severance under the terms of the Federal Labor Law, respective
applicable regulations, and this agreement, shall be included in the aforementioned severance
amount of one year base salary, with the understanding that in the event the payment of one year’s
salary were to represent an amount less than that awarded by the benefits conceded by law, the
employee shall receive payment for said difference, without this in any manner being considered
payment of lost wages, as said payment will be made on the date of termination.

SECOND. “PLACE OF WORK”. The “EMPLOYEE” shall render their services to the “COMPANY” at
any “COMPANY” establishment or wherever their services may be required, according to the orders so
issued by the representatives for the “COMPANY” and for which the “EMPLOYEE” shall be obligated to
perform their duties at any establishment as required or wherever the “COMPANY” conducts
operations, including Mexico City and Monterrey. The “COMPANY” has the right to change the place of
work at any time, on prior notice and agreement between the parties.

THIRD. “THE WORK WEEK”. Due to the nature of the functions of the position the “EMPLOYEE”
will hold, considered to be an executive position, the work week shall be subject to the operating
needs of the “COMPANY”, in accordance with the terms of the Federal Labor Law.

FOURTH: “THE SERVICES RENDERED”. The “EMPLOYEE” shall render their personal and
subordinate services to the “COMPANY” at the level and in the position of Vice-President of
Operations and the “EMPLOYEE” hereby agrees to render these services subordinate, at all times, to
the instructions of the Chief Executive Officer, the Company Board of Directors, the Executive
Committee of the Board of Directors, and/or any other person or body so designated by the Company
Board of Directors, the duties of the position including the following:

	a)	 	To be responsible for the oversight and supervision of the execution of all Company
activities and operations, as so required, with the understanding that the Employee shall also
be obligated to perform all similar and/or related activities, all activities in relation to
commercial and/or industrial practices, and any and all other activities that may be required
or beneficial for the advancement of the objectives and purposes of the Company.

	b)	 	Dedicate the whole of their work time to the execution of the activities required of the
position, and to refrain from conducting any other business activity or activity for profit
while employed by the Company without the prior, written, consent of the Company Board of
Directors.

	c)	 	The Employee shall, during the time they hold their position, act in a responsible manner,
observing all applicable Company policies and all instructions issued by the Company Board of
Directors and/or superior Officers, and shall also observe all applicable legislation and
direct their subordinates to act in a similar manner.

 

 

f) [sic] The services will be rendered principally at the Company offices located at Avenida Manuel
L. Barragán No. 4850 North, Col. Hidalgo, Monterrey, Nuevo León, Mexico, 64281; or in any other
location where the Company holds their main offices or at the offices of any company affiliate or
any company where the “COMPANY” holds shareholdings or business relationships; however, the
“COMPANY” shall, at all times, be the beneficiary and party responsible for the relationship
subject of the present; and the “EMPLOYEE” hereby acknowledges the “COMPANY” as their sole
employer, therefore an essential element of the functions performed by the “EMPLOYEE” shall be to
inform the “COMPANY” of their activities.

Independent of the foregoing, the “EMPLOYEE” shall perform all those activities derived from and
related to, but not limited to, the primary obligations of their position and also any and all
tasks related or similar to their primary obligation, even when these must be performed outside of
the place of work, this without affecting the amount of the salary received.

In the event that resulting from the services the “EMPLOYEE” renders to the “COMPANY”, powers of
attorney are to be granted to the “EMPLOYEE”, this shall not, under any circumstance, imply the
existence of any relationship of employment between the “EMPLOYEE” and the company or companies
that may grant said powers, as the “EMPLOYEE” hereby expressly acknowledges that their sole
relationship of employment shall be with the “COMPANY”, which the “EMPLOYEE” hereby recognizes as
their sole employer.

The “EMPLOYEE” shall render their services to the “COMPANY” subordinate to and under the direction
of same or representatives for the “COMPANY”, in all matters regarding their position; the
“EMPLOYEE” shall perform their duties with the care and dedication expected of the position, in the
manner, at the location, and during the hours so agreed upon, the “COMPANY” retaining the right to
amend the obligations of the “EMPLOYEE”, without affecting their respective conditions of
employment, specifically in terms of salary.

FIFTH. “VACATION TIME, VACATION BONUS, AND END OF THE YEAR BONUS”. The “EMPLOYEE” shall
have the right to 15 (fifteen) days vacation time annually. Vacation days are annual and cannot,
under any circumstance, be accumulated.

The “COMPANY” and the “EMPLOYEE” shall jointly determine the dates the “EMPLOYEE” may take their
annual vacation time; the “EMPLOYEE” shall also have the right to rest on statutory holidays, as
stipulated by Article 74 of the Law in reference, and shall also have weekly days off, these
preferably being Saturday and Sunday of each week.

The “EMPLOYEE” shall have the right to receive a vacation bonus equal to 50% of the number of
vacation days corresponding each year and this amount shall be paid annually on the date on which
the “EMPLOYEE” completes a year of service.

The “EMPLOYEE” shall have the right to receive an annual end of the year bonus, as stipulated by
Article 87 of the Federal Labor Law, equal to 30 (THIRTY) days salary, based on their daily wage,
amount that shall be paid during the month of December.

SIXTH. “TRAINING”. The “EMPLOYEE” is obligated to receive training in accordance with the
courses established in the training plans and programs duly authorized by the Ministry of Labor and
Social Welfare, under the terms of the Fourth Title, Chapter III ii of the Federal Labor Law. The
“EMPLOYEE” is obligated to be punctual and to attend all courses, group sessions, and any and all
other activities that form part of the training process and to also actively participate in same
and to present evaluations and examinations, accordingly, under the terms of Article 153-H of the
Federal Labor Law.

 

 

SEVENTH. “SALARY”. “THE EMPLOYEE” shall receive a monthly gross salary of US $19,445.00
(Nineteen Thousand Four Hundred and Forty-Five 00/100 US Dollars) following the deduction of all
taxes corresponding to said amount, in accordance with the rate of exchange in effect on the date
of payment and Mexican tax legislation, and the net salary amount shall be paid on the
15th day of each month, at the address of the “COMPANY” or at the location mutually
agreed upon by the parties. The “COMPANY”, through the Board or the Executive Committee, shall
review and set the salary of the Vice-President of Operations, considering market studies (prepared
by Towers Perrin or any other consultant) and the preparation of the budget for the next year. The
aforementioned salary shall include payment for the seventh day and that corresponding to statutory
holidays, and also the proportionate amount corresponding to the weekly days off, in accordance
with the terms of the Federal Labor Law, and shall also include any and all other benefits so
corresponding as stipulated by the Federal Labor Law or specific regulations applicable to the
“COMPANY” by reason of their operations.

Due to the nature of the functions to be performed by the “EMPLOYEE”, and at the request of same,
the “COMPANY” shall pay the corresponding salary through bank deposits and the “EMPLOYEE” shall be
obligated to sign all receipts and/or administrative controls presented by the “COMPANY”, it is
therefore hereby agreed that the bank deposit receipts issued shall be accepted as equivalent to
payment receipts, regardless of whether these are signed by the “EMPLOYEE”.

EIGHTH. The parties hereby agree that the “EMPLOYEE” shall be required to issue the “COMPANY” a
written receipt for all remunerations the “EMPLOYEE” has the right to receive, which detail the
monies received and the deductions expressly accepted by the “EMPLOYEE” and bearing their
signature, and be issued for each pay period, noting that in the event no extra hours appear on the
receipt, this would be because the “EMPLOYEE” did not work said hours, in compensation the
“EMPLOYEE” receives all benefits to which they are entitled, therefore any clarification or doubt
must be presented prior to signing the corresponding receipt.

NINTH. “MEDICAL EXAMINATIONS”. The “EMPLOYEE” is hereby obligated, under the terms of
Article 134, section X, of the Federal Labor Law, to submit to any and all medical certifications
and/or examinations required by the “COMPANY”, and also to those corresponding under Health and
Hygiene Regulations.

TENTH. “CONFIDENTIALITY”. The “EMPLOYEE” hereby acknowledges that due to the nature of the
services subject of this agreement, the “EMPLOYEE” will have access to confidential information,
manufacturing secrets, and the operating and commercial aspects of the “COMPANY” considered to be
industrial secrets; therefore the “EMPLOYEE” is hereby obligated to not disclose or reveal this
information to any third party, unless the representatives for the “COMPANY” have so authorized, in
writing. In the event of any non-compliance with this Clause, the “EMPLOYEE” shall be sanctioned
accordingly.

ELEVENTH. “INVENTIONS”. The “EMPLOYEE” hereby expressly agrees that any discovery,
invention, or improvement to same, or any other technological know-how the “EMPLOYEE” receives or
contributes through the activities the “EMPLOYEE” performs either individually or as a group during
the execution of their tasks for the “COMPANY”, shall become the sole property of the “COMPANY”.
Therefore, the “EMPLOYEE” does not reserve the right or any action with regards to the use and/or
exploitation of the aforementioned discovery, invention, or technological know-how, as the
activities of the “EMPLOYEE” are remunerated under the salary paid on the position for which the
“EMPLOYEE” is contracted, therefore the “EMPLOYEE”, with the “COMPANY”, is required to carry out
any and all processes and formalities corresponding in adherence of the Law, in order to obtain the
respective registry, which shall be in the name of the “COMPANY” so that the “COMPANY” may protect
and/or

 

 

exploit the aforementioned industrial property rights, for which, the “EMPLOYEE” hereby promises to
sign any document and to execute any and all actions of a legal nature as so required.

TWELFTH. “JURISDICTION AND INTERPRETATION”. Any matter not foreseen in this agreement
shall be subject to the provisions set forth by the Federal Labor Law and Applicable Provisions;
therefore, the parties hereby expressly submit the interpretation of this agreement and any dispute
regarding same to the authority of the Board of Arbitration and Conciliation corresponding by
reason of residence or location where the services are rendered.

Having read this Agreement, the parties acknowledge the content and the obligations acquired under
same and sign hereunder of their own free will in Monterrey, Nuevo León, Mexico, on October 1,
2005.

The “COMPANY”

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

illegible signature

 
By: Mr. Victor M. Huacuja Leyzaola

Position: Vice-President of Human Resources

The “EMPLOYEE”

illegible signature

 
Mr. Manuel Virgilio Zulaica López

 

 

January 1, 2006

Mexico City, Mexico

Mr. Manuel Virgilio Zulaica López

In addition to the benefits that appear in the Individual Employment Agreement with start date of
January 1, 2006, you will have the right to receive:

1. BONUSES. In addition to your salary, you may receive a Performance Bonus, which, when
applicable, will be determined based on your department meeting the goals of the “COMPANY”, and on
the evaluation conducted by the Board of Directors, in accordance with current company policy each
year. The Board of Directors set the goals each year as “Minimum”, “Objective”, and “Maximum”. In
the event the Company reaches the Objective Goal, the Performance Bonus for the Vice-President
level cannot be greater than 35% of the annual base salary amount. The Company must reach the
Minimum Goal in order to receive the Performance Bonus. The Board of Directors will determine the
Performance Bonus based on results obtained between the Minimum and Objective Goals and for the
Maximum Goal and better. The Performance Bonus will be paid annually provided the respective terms
and conditions are met.

The Company will pay the bonus in reference through bank deposit, to the bank account you
provide for said purpose; and you will be required to sign the corresponding receipt, it is
therefore hereby agreed that the bank deposit receipts issued shall be accepted as equivalent to
payment receipts, regardless of whether these are signed by you.

2. CAR. You will be provided with an executive car to assist you in the performing of your
duties, and you will receive quarterly payments to help defray the costs of gasoline and services,
in accordance with current company policy.

3. INSURANCE. During your employment with the Company, the Company is obligated to secure
accident and Major Medical Expense insurance, and also Life insurance, under the terms of current
company policy for executives.

4. GENERAL CONDITIONS. You are expressly obligated to be subject to the general conditions
of employment under which the Company operates, and also to the technical and administrative rules
the Company has developed for the execution and coordination of tasks, and to all other internal
policies, INCLUDING, OF COURSE, THOSE REFERRING TO BONUSES. Therefore you are obligated to observe,
respect, and adhere to each and every one of the policies, guidelines, and provisions, which have
been given to you, and so on signing hereunder you express your agreement to the terms of same.

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

illegible signature

 
By: Mr. Victor M. Huacuja Leyzaola

Position: Vice-President of Human Resources

Accepted and Agreed

illegible signature

 
Mr. Manuel Virgilio Zulaica López

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