Preview | Equipment Lease Agreement |

Table of Contents


Section	Heading	Page

Section 1.	Definitions		1
Section 2.	Acceptance and Leasing of Equipment		1
Section 2.1.	Sale and Purchase; Participation in Equipment Cost		1
Section 2.2.	Settlement Date; Procedure for Participation		1
Section 3.	Term and Rent		2
Section 3.1.	Lease Term		2
Section 3.2.	Basic Rent		2
Section 3.3.	Supplemental Rent		2
Section 3.4.	Calculation of Adjustments to Basic Rent, Stipulated Loss Value, Termination Value, EBO Fixed Purchase Price and FPO Fixed Purchase Price; Confirmation and Verification		3
Section 3.5.	Manner of Payments		4
Section 4.	Ownership and Marking of Equipment		5
Section 4.1.	Retention of Title		5
Section 4.2.	Duty to Number and Mark Equipment		5
Section 4.3.	Prohibition against Certain Designations		5
Section 5.	Disclaimer of Warranties; Right of Quiet Enjoyment		5
Section 5.1.	Disclaimer of Warranties		5
Section 5.2.	Quiet Enjoyment		6
Section 6.	Return of Equipment; Storage		6
Section 6.1.	General		6
Section 6.2.	Condition of Equipment		7
Section 6.3.	Storage		7
Section 6.4.	Termination of Lease		8
Section 7.	Liens		8
Section 7.1.	Lessee Liens		8
Section 7.2.	Lessor Liens		8
Section 8.	Maintenance; Operation; Sublease		8
Section 8.1.	Maintenance		8
Section 8.2.	Operation		8
Section 8.3.	Sublease		9
Section 9.	Modifications		9
Section 9.1.	Required Modifications		9
Section 9.2.	Optional Modifications		9
Section 9.3.	Removal of Proprietary and Communications Equipment		10
Section 9.4.	Retention of Equipment by Lessor		10
Section 10.	Voluntary Termination		10
Section 10.1.	Right of Termination		10
Section 10.2.	Sale of Equipment		11
Section 10.3.	Retention of Equipment by Lessor		11
Section 10.4.	Termination of Lease		12


Section	Heading	Page

Section 11.	Loss, Destruction, Requisition, Etc.		12
Section 11.1.	Event of Loss		12
Section 11.2.	Replacement or Payment upon Event of Loss		12
Section 11.3.	Rent Termination		13
Section 11.4.	Disposition of Equipment; Replacement of Unit		13
Section 11.5.	Eminent Domain		13
Section 12.	Insurance		14
Section 12.1.	Property Damage and Public Liability Insurance		14
Section 12.2.	Proceeds of Insurance		15
Section 12.3.	Additional Insurance		15
Section 13.	Reports; Inspection		15
Section 13.1.	Duty of Lessee to Furnish		15
Section 13.2.	Lessors Inspection Rights		15
Section 13.3.	Financial and Other Reports of Lessee		15
Section 14.	Events of Default		16
Section 15.	Remedies		17
Section 15.1.	Remedies		17
Section 15.2.	Cumulative Remedies		19
Section 15.3.	No Waiver		19
Section 15.4.	Lessees Duty to Return Equipment Upon Default		19
Section 15.5.	Specific Performance; Lessor Appointed Lessees Agent		19
Section 16.	Filings; Further Assurances		19
Section 16.1.	Filings		19
Section 16.2.	Further Assurances		19
Section 16.3.	Expenses		20
Section 17.	Lessors Right to Perform		20
Section 18.	Assignment		20
Section 18.1.	Assignment by Lessor		20
Section 18.2.	Assignment by Lessee		22
Section 18.3.	Sublessees Performance and Rights		22
Section 18.4.	Merger Covenant		22
Section 19.	Net Lease, etc.		22
Section 20.	Notices		23
Section 21.	Lessees Indemnities		24
Section 21.1.	General Tax Indemnity		24
Section 21.2.	General Indemnification and Waiver of Certain Claims		29
Section 22.	Termination Upon Purchase by Lessee		32
Section 23.	Lessees Options to Purchase Equipment		32
Section 24.	Transaction Costs		33
Section 25.	Filing in Mexico		34
Section 26.	Miscellaneous		34
Section 26.1.	Governing Law; Severability		34
Section 26.2.	Execution in Counterparts		34
Section 26.3.	Headings and Table of Contents; Section References		34


Section	Heading	Page

Section 26.4.	Successors and Assigns		34
Section 26.5.	True Lease		34
Section 26.6.	Amendments and Waivers		34
Section 26.7.	Survival		34
Section 26.8.	Business Days		35
Section 26.9.	Directly or Indirectly		35
Section 26.10.	Entitlement to 1168 Benefits		35
Section 26.11.	Waiver of Jury Trial		35
Section 26.12.	Reproduction of Documents		35
Section 26.13.	Tax Disclosure		35
Section 26.14.	Jurisdiction, Court Proceedings		36
Section 26.15.	Judgment Currency		36
Attachments to Equipment Lease Agreement:
Exhibit A Closing and Settlement Conditions
Exhibit B Form of Certificate of Acceptance
Exhibit C Form of Lease Supplement
Exhibit D Form of Lessee Officers Certificate
Exhibit E Form of Lessor Officers Certificate
Exhibit F Form of Bill of Sale
Appendix A Definitions
Schedule 1 Price Assumptions and Pro Forma Schedules

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Equipment Lease Agreement
(KCSM 2007-1)

This Equipment Lease Agreement (KCSM 2007-1), dated as of April 4, 2007 (this Lease), between High Ridge Leasing LLC, a Delaware limited liability company (Lessor), and Kansas City Southern de Mexico, S. de R.L. de C.V., a corporation incorporated under the laws of Mexico (Lessee),

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