SECOND SUPPLEMENTAL INDENTURE
Exhibit 10.1
SECOND SUPPLEMENTAL INDENTURE (this “Second Supplemental Indenture”) dated as of June 10,
2005, between THE KANSAS CITY SOUTHERN RAILWAY COMPANY, a corporation duly organized and existing
under the laws of the State of Missouri, and the successor by merger to each of Gateway Western
Railway Company, KCS Transportation Company, Mid-South Microwave, Inc., and Xxxx-Xxxxxx Corporation
(the “Company”), KANSAS CITY SOUTHERN (formerly known as Kansas City Southern Industries, Inc.,
(the “Parent”), and GATEWAY EASTERN RAILWAY COMPANY, PABTEX, L.P., SOUTHERN DEVELOPMENT COMPANY,
SOUTHERN INDUSTRIAL SERVICES, INC., and TRANS-SERVE, INC. (together with the Parent, the “Note
Guarantors”), and THE BANK OF NEW YORK, a New York banking corporation, as trustee under the
indenture referred to below (the “Trustee”).
W I T N E S S E T H :
WHEREAS, the Company and the Note Guarantors have heretofore executed and delivered to the
Trustee an Indenture (the “Indenture”) dated as of September 27, 2000 and supplemented by a
Supplemental Indenture (the “First Supplemental Indenture”) dated as of January 29, 2001, providing
for the issuance of an aggregate principal amount of up to $300,000,000 of 91/2% Senior Notes due
2008 (the “Securities”); and
WHEREAS, Section 9.02 of the Indenture provides that, with the written consent of the Holders
of a majority in aggregate principal amount of the outstanding Securities (the “Requisite
Consents”), the Company, the Note Guarantors and the Trustee may amend the Indenture;
WHEREAS, the Company has completed a consent solicitation (the “Consent Solicitation”) whereby
the Company has obtained the Requisite Consents to amend certain sections of the Indenture (the
“Amendments”);
WHEREAS, in connection with the Consent Solicitation, Holders that delivered a valid consent
on a timely basis (the “Consenting Holders”) are entitled to receive a cash fee (the “Cash Fee”)
with respect to the Securities in respect of which they have validly consented if the conditions to
the Consent Solicitation are met;
WHEREAS, the Company, the Note Guarantors, and the Trustee are entering into this Second
Supplemental Indenture in order to set forth the Amendments; and
WHEREAS, this Second Supplemental Indenture has been duly authorized by all necessary
corporate action on the part of the Company, the Note Guarantors and the Trustee.
NOW THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the receipt of which is hereby acknowledged, the Company, the Note Guarantors and
the Trustee mutually covenant and agree for the equal and ratable benefit of the Holders of the
Securities as follows:
ARTICLE 1
AMENDMENT OF THE INDENTURE
Section 1.01. Amendment to Section 1.01 of the Indenture. The Company, the Note Guarantors
and the Trustee hereby agree to amend Section 1.01, and Section 1.01 is hereby amended by
(a) adding the following definitions to Section 1.01 in the appropriate alphabetical order:
“Mexico” means the Estadaos Unidos Mexicanos (the United Mexican States) and any branch of
power, ministry, department, authority or statutory corporation or other entity (including a
trust), owned or controlled directly or indirectly by the Estados Unidos Mexicanos or any of the
foregoing created by law as a public entity; and
“VAT Claim” means TFM’s claim for a refund, credit or other payment of amounts of value added
tax previously paid by TFM to Mexico.
(b) deleting the word “and” at the end of sub-section (c)(v) of the definition of “Asset
Disposition” in Section 1.01 and adding the following paragraph to the end of such definition of
“Asset Disposition”:
; and
(vii) sales or other dispositions of the VAT Claim if and to
the extent (y) there are no cash proceeds thereof or (z) such cash
proceeds are used to finance (or set aside in a reserve to finance)
the repurchase of the Capital Stock of TFM from Mexico and the
satisfaction of obligations relating to the settlement thereof.
Section 1.03 Amendment to Section 4.04 of the Indenture. The Company, the Note Guarantors and
the Trustee hereby agree to amend Section 4.04, and Section 4.04 is hereby amended by deleting the
word “or” at the end of sub-section (b)(vi) and adding the following paragraph following
sub-section (b)(vii) thereof:
; or
(viii) the repurchase by TFM of, or the declaration and payment of dividends
by TFM to Grupo TFM to allow Grupo TFM to repurchase, the Capital Stock of TFM from
Mexico:
(y) if, after giving effect to such repurchase and any Indebtedness Incurred
to fund such repurchase, the Consolidated Coverage Ratio would be greater than
2.0:1; or
(z) to the extent that the consideration paid to Mexico to repurchase the
Capital Stock of TFM consists of a surrender or reduction of the
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VAT Claim or any portion thereof, or if and to the extent cash has been
realized in respect to the VAT Claim, the consideration paid pursuant to this
Section 4.04(b)(viii)(z) does not exceed the amount of such cash, or any combination
of such surrender or reduction or such cash realized.
ARTICLE 2
MISCELLANEOUS
2.01. Ratification of Indenture, Supplemental Indentures Part of Indenture. Except as
expressly amended hereby, the Indenture and the First Supplemental Indenture are in all respects
ratified and confirmed and all the terms, conditions and provisions thereof shall remain in full
force and effect. Upon the execution and delivery of this Second Supplemental Indenture by the
Company, the Note Guarantors and the Trustee, the Indenture shall be supplemented in accordance
herewith, this Second Supplemental Indenture shall form a part of the Indenture for all purposes,
and every Holder of Securities heretofore or hereafter authenticated and delivered shall be bound
hereby.
Notwithstanding the foregoing, the Amendments set forth herein will have no effect, and this
Second Supplemental Indenture shall be null and void, if the Cash Fee is not paid to the Consenting
Holders in accordance with the terms and conditions of the Consent Solicitation.
2.02. Governing Law. THIS SECOND SUPPLEMENTAL INDENTURE SHALL BE GOVERNED BY, AND CONSTRUED
IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK BUT WITHOUT GIVING EFFECT TO APPLICABLE
PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER
JURISDICTION WOULD BE REQUIRED THEREBY.
2.03. Trustee Makes No Representation. The Trustee makes no representation as to the validity
or sufficiency of this Second Supplemental Indenture. The recitals and statements herein are
deemed to be those of the Company and the Note Guarantors and not of the Trustee.
2.04. Severability Clause. In case any provision of this Second Supplemental Indenture shall
be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining
provisions shall not in any way be affected or impaired thereby.
2.04. Counterparts. The parties may sign any number of copies of this Second Supplemental
Indenture. Each signed copy shall be an original, but all of them together represent the same
agreement.
2.05. Definitions, Effect of Headings. All capitalized terms not otherwise defined herein
shall have the meanings ascribed to them in the Indenture. The section headings herein are for
convenience only and shall not effect the construction thereof.
IN WITNESS WHEREOF, the parties hereto have caused this Second Supplemental Indenture to be
duly executed as of the date first above written.
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THE KANSAS CITY SOUTHERN RAILWAY COMPANY
/s/ Xxxxxx X. Xxxx
Executive Vice-President and Chief Financial Officer
Executive Vice-President and Chief Financial Officer
/s/ Xxxxxx X. Xxxx
Executive Vice-President and Chief Financial Officer
Executive Vice-President and Chief Financial Officer
GATEWAY EASTERN RAILWAY COMPANY
/s/ Xxxx X. Xxxxxxx
Vice-President and Treasurer
Vice-President and Treasurer
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| PABTEX, L.P. | ||||||
| By: | ||||||
| Southern Industrial Services, Inc., its general partner | ||||||
| /s/ Xxxxxx X. Xxxx Vice-President and Treasurer |
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SOUTHERN DEVELOPMENT COMPANY
/s/ Xxxxxx X. Xxxx
Vice-President and Treasurer
Vice-President and Treasurer
SOUTHERN INDUSTRIAL SERVICES, INC.
/s/ Xxxxxx X. Xxxx
Vice-President and Treasurer
Vice-President and Treasurer
TRANS-SERVE, INC.
/s/ Xxxxxx X. Xxxx
Vice-President and Treasurer
Vice-President and Treasurer
THE BANK OF NEW YORK
/s/ Xxxxxxxxx Xxxxxxx
Assistant Treasurer
Assistant Treasurer
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