Document:

Confirmation of Intellectual Property and Hedging Arrangements

    EXHIBIT
      4.17 

      

       

      INTERBREW
        S.A.

       

      Vaartstraat
        94

      B-3000,
        Leuven

      Belgium

       

       

       

      August
        27, 2004

       

       

       

      Companhia
        de Bebidas das Américas — AmBev

      Rua
        Dr.
        Renato Paes de Barros 1017

      04530-001,
        São Paulo, SP

      Federative
        Republic of Brazil

      Attn:
        Mr.
        Felipe Dutra

       

      Labatt
        Brewing Company Limited 

      207
        Queen's Quay West, Suite #299 

      Toronto,
        ON M5J 1A7

      Canada

      Attn:
        Mr.
        James V. West

       

      Dear
        Sirs
        and Mesdames:

       

          Re:
        Confirmation
        of Intellectual Property and Hedging Arrangements

       

      Reference
        is made to Section 5.01(c) of the Incorporação Agreement dated as of
        March 3, 2004 (the “Incorporação
        Agreement”)
        among
        Companhia de Bebidas das Américas — AmBev (“AmBev”),
        Interbrew S.A. (“Interbrew”),
        Labatt Brewing Company Limited (“LBCL”)
        and
        Labatt Brewing Canada Holding Ltd., which requires, in part, that Interbrew,
        AmBev and LBCL use their respective commercially reasonable efforts to negotiate
        in good faith new intercompany agreements between LBCL and the “Labatt
        Subsidiaries” (as such term is defined in the Incorporação Agreement) (LBCL and
        the Labatt Subsidiaries being referred to collectively herein as the
“LBCL
        Companies”),
        on
        the one hand, and Interbrew and certain of its subsidiaries (Interbrew and
        such
        subsidiaries being referred to collectively herein as the “Interbrew
        Companies”),
        on
        the other hand, or enter into modifications or amendments to any such existing
        intercompany agreements, as may be necessary or advisable, in each case on
        mutually agreeable term.

       

      
         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

      Intellectual
        Property Licensing

       

      This
        letter confirms our discussions and agreement relating to the intellectual
        property arrangements currently in place as between the Interbrew Companies
        and
        the LBCL Companies. Specifically, the parties hereto acknowledge and agree
        that
        certain intellectual property owned by one or more Interbrew Companies is
        currently being used by one or more LBCL Companies and that, conversely,
        certain
        intellectual property owned by one or more LBCL Companies is currently being
        used by one or more Interbrew Companies. In accordance with the Labatt Services
        Agreement between LBCL and Interbrew, dated August 27, 2004, from and after
        the
        closing date of the Incorporação Agreement (the “Closing
        Date”),
        Interbrew shall bear certain technology and patent development costs incurred
        by
        the LBCL Companies and Interbrew shall be the exclusive owner of any and
        all
        resulting intellectual property created or developed by or for the LBCL
        Companies from and after the Closing Date and up to the termination of the
        Labatt Services Agreement between Interbrew and Labatt of even date herewith
        (the “Labatt
        Services Agreement”)
        where
        such intellectual property was created or developed with the aid of or with
        funds provided by Interbrew (collectively, the “Post-Closing
        IP”).
        For
        greater certainty, nothing in this letter shall affect the ownership of,
        or the
        arrangements of the parties in respect of, any intellectual property created
        or
        developed by or for LBCL prior to the Closing Date and after the termination
        of
        the Labatt Services Agreement.

       

      Having
        regard to the arrangements referenced above and pending the negotiation and
        completion of new intercompany agreements as contemplated by the Incorporação
        Agreement, including appropriate intellectual property licensing and related
        agreements between the relevant Interbrew Companies and LBCL, Interbrew,
        AmBev
        and LBCL hereby confirm and agree that Interbrew shall be the exclusive owner
        of
        any and all Post-Closing IP and, as such, shall be entitled to, and LBCL
        shall
        pay to Interbrew, arm's length royalties or other remuneration in respect
        of the
        LBCL Companies' use of any and all such Post-Closing IP. Such remuneration
        shall
        be paid by LBCL in accordance with periodic invoices issued to LBCL by Interbrew
        in respect thereof or in accordance with such other commercially reasonable
        alternative remuneration and payment method as Interbrew and LBCL may determine,
        following a post-Closing Date analysis by Interbrew of available alternative
        methods and good faith negotiations between Interbrew and LBCL in respect
        thereof. Without limiting the generality of the foregoing, the parties hereto
        agree that an agreement between Interbrew and LBCL will be entered into,
        which
        will provide, among other things, that: (i) the Post-Closing IP will, to
        the
        extent permitted by law, constitute “work made for hire” and will otherwise be
        assigned to Interbrew by the LBCL Companies; and (ii) the LBCL Companies
        shall
        cooperate with any and all prosecution efforts by Interbrew in respect of
        the
        Post-CIosing IP, including, without limitation, the procurement from employees
        of patent applications and assignments, the execution of documents reasonably
        requested by Interbrew and the provision of managerial authority to Interbrew
        with respect to relevant employees.

       

      Hedging
        Arrangements

       

      This
        letter further confirms our discussions and agreement relating to certain
        forward foreign exchange hedging arrangements entered into or undertaken
        by
        Brandbrew S.A.

      
         

        
          
            
            

          

          
            2

            
              

            

          

          
            
            

          

        

      

      (“Brandbrew”),
        an
        Interbrew subsidiary, with or at the request of LBCL from time to time
        (collectively, the “Brandbrew
        Arrangements”).

       

      Having
        regard to the arrangements referenced above and pending the negotiation and
        completion of a formal agreement between LBCL and Brandbrew in respect of
        the
        Brandbrew Arrangements, Interbrew, AmBev and LBCL hereby confirm and agree
        that
        the following procedures and conditions shall apply from and after the Closing
        Date in respect thereof:

       

      
        	 	
                1.

              	
                Labatt
                  shall confirm its hedging requirements, in writing, on it monthly
                  basis to
                  Brandbrew;

              

      

       

      
        	 	
                2.

              	
                All
                  forward foreign exchange contracts shall take place at the European
                  Central Bank (ECB) rate as reported by Bloomberg on the 15th
                  day of each month, modified as follows: plus or minus 0.3% margin,
                  plus or
                  minus relevant market forward points as calculated by
                  Bloomberg;

              

      

       

      
        	 	
                3.

              	
                During
                  the last week of each calendar month, Brandbrew shall provide to
                  LBCL a
                  summary of the forward foreign exchange contracts entered into
                  with LBCL
                  during such month; and

              

      

       

      
        	 	
                4.

              	
                Brandbrew
                  shall, on an ongoing basis, monitor and manage LBCL's interest
                  rate
                  exposure and make timely recommendations to LBCL regarding actions
                  and
                  positions to be taken by LBCL in the
                  market.

              

      

       

      *   *   *

       

      Each
        of
        Interbrew, AmBev and LBCL shall from time to time execute or procure such
        documents and other assurances as may be reasonable or advisable to give
        effect
        to the provisions of this confirmation letter. In addition, each of Interbrew
        and LBCL shall cause its respective affiliates to do all such things and
        to
        execute or procure all such documents and other assurances as may be necessary
        or desirable to give effect to the provisions hereof.

       

      No
        modification of or amendment to this confirmation letter shall be effective,
        valid or binding unless made in writing and signed by all parties.

       

      This
        confirmation letter shall be governed by and construed in accordance with,
        and
        the rights of the parties shall be governed by, the laws of the State of
        New
        York and the parties hereby consent to the exclusive jurisdiction of the
        courts
        of the State of New York to hear and determine any and all disputes, actions
        and
        proceedings arising out of this confirmation letter.

       

      Please
        indicate your acknowledgement, acceptance and agreement of and to the foregoing
        by signing and returning to the undersigned the duplicate copies of this
        confirmation letter enclosed herewith. Upon execution by all parties this
        confirmation letter will become a valid and binding agreement between us.
        This
        confirmation letter may be executed in separate

      
 

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

       

      counterparts,
        each of which shall be considered an original and which, taken together,
        shall
        constitute a single agreement.

      

      

      Very
        truly yours,

      

      INTERBREW
        S.A.

      

      

      By:
        /s/
        Pierre Winawd                

      Name: P.
        Winawd

      Title: Vice
        President Planning and Control

      

      

      By:
        /s/
        Catherine Noirfalisse            

      Name: C.
        Noirfalisse

      Title: Legal
        Counsel

      

      

      Acknowledged
        and agreed to by:

      

      COMPANHIA
        DE BEBIDAS DAS AMÉRICAS - AMBEV

      

       

      By:
        /s/ Juan Manuel Vergara Galvis          

      Name: 
        Juan Manuel Vergara Galvis

      Title:

      

      

      By:
        /s/ Pedro de Abreu Mariani             

      Name: 
        Pedro de Abreu Mariani

      Title:

      

      

      LABATT
        BREWING COMPANY LIMITED

      

      

      

      By:
        /s/
        James V. West                

      Name: James
        V.
        West

      Title: Vice
        President

      

      

      By:
        /s/
        Thorburn                   

      Name: Craig
        Thorborn

      Title: Director

      

      
        
          
          

        

        
          4Executed Letter Agreement dated July 22, 2004

    EXHIBIT
      4.18

     

    [Interbrew
      logo]

     

     

    July
      22nd
      2004

     

    Companhia
      de Bebidas das Américas -AmBev

    Rua
      Dr.
      Renato Paes de Barros 1017

    04530-001,
      São Paulo, SP

    Federative
      Republic of Brazil

     

    Attention
      of Felipe Dutra

     

    Dear
      Sirs:

     

    We
      refer
      to (i) the Incorporação Agreement dated as of March 3, 2004 (the " Incorporação
      Agreement"), among Companhia de Bebidas das Américas - AmBev ("AmBev"),
      Interbrew S.A. ("Interbrew"), Labatt Brewing Canada Holding Ltd. and Labatt
      Brewing Company Limited and (ii) the Mutual Confidentiality Agreement dated
      as
      October 15, 2003 (the "Confidentiality Agreement"), between Interbrew
      and
      AmBev. Capitalized terms used but not defined herein shall have the meanings
      assigned to them in the Incorporação Agreement.

     

    In
      connection with the transactions contemplated by the Incorporação Agreement and
      the Contribution and Subscription Agreement, AmBev and its affiliates may
      provide or cause to be provided to Interbrew certain information relating to
      the
      business of AmBev and its affiliates, and Interbrew and its affiliates may
      provide or cause to be provided to AmBev certain information relating to the
      business of Interbrew and its affiliates. AmBev and Interbrew each acknowledge
      the information provided pursuant hereto will be used only in connection with
      planning the integration of their respective businesses. Each of AmBev and
      Interbrew agrees that such information will not be used as the basis for any
      commercial actions taken prior to the Closing.

     

    Each
      of
      AmBev and Interbrew acknowledges that the information being provided to it
      pursuant hereto is subject to the terms of the Confidentiality Agreement, the
      terms of which are incorporated herein by reference. This letter agreement
      shall
      not be deemed to amend, modify, waive, supersede or otherwise affect the terms
      and provisions of the Incorporação Agreement or the Contribution and
      Subscription Agreement or any agreement contemplated by either of the
      foregoing.

     

    This
      letter agreement will be governed by and construed in accordance with the
      internal laws of the State of New York and shall terminate upon the earlier
      of
      the Closing and the termination of the Incorporação Agreement.

     

    
       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    [Interbrew
      logo]

     

    If
      the
      foregoing correctly sets forth the agreement reached between us with respect
      to
      the subject matter hereof, please execute the enclosed copy of this letter
      agreement in the space indicated therein and return to us a fully-signed copy
      of
      this letter agreement, at which time this letter agreement shall serve as a
      binding and enforceable agreement between us.

     

    

      
        	
                Very
                  truly yours,

                 

              	 
	
                Interbrew
                  S.A.

                 

              	 
	
                By:   
                   /s/ Jo Van
                  Biesbroeck                           
                   

              	
                By:       
                  /s/ Yves
                  Lefebure                          
                   

              
	
                Name:
                  Jo Van Biesbroeck

                Title:
                  Senior VP Corporate Strategy

                 

              	
                Name:
                  Yves Lefebure

                Title:
                  Deputy Corporate General Counsel

                 

              
	 	 
	
                CONFIRMED
                  AND AGREED TO:

                 

              	 
	
                Companhia
                  de Bebidas das Américas -- AmBev

                 

              	 
	
                By:      
                  /s/ Felipe
                  Dutra                                    
                   

              	
                By:     /s/
                  Pedro
                  Mariani                        
                   

              
	
                Name:
                  Felipe Dutra

                Title:
                  CFO

                 

              	
                Name:
                  Pedro Mariani

                Title:
                  General Counsel

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