Document:

Confirmation of Interest Rate Swap

 Exhibit 10.18 

 

 

  

							
	Date:	  	30 December 2009	 	 	  	 
				
	To:	  	Arcos Dorados B.V.	 	From:	  	Morgan Stanley & Co. International Plc
				
		  	Account Number: 0617SAV70	 		  	 20, Cabot Square
 Canary
Wharf
 London E14 4QW

				
	Attn:	  	Julieta Nalband	 	Contact:	  	Baltimore Derivative Dealer Services Group
				
	Email	  	julieta.nalband@ar.mcd.com	 	Fax:	  	212 404 4762
				
	Tel:	  		 	Tel:	  	212 761 2630

 Re: Non-Deliverable Interest Rate Swap MSIL
Ref. YRZQA 
 The purpose of this letter agreement is to set forth the terms and conditions of the Transaction entered into between us on the
Trade Date referred to below. This letter constitutes a “Confirmation” as referred to in the Agreement specified below. 
 The
definitions and provisions contained in the 2006 ISDA Definitions (the “2006 Definitions”), as published by the International Swaps and Derivatives Association, Inc. (“ISDA”), and the 1998 FX and Currency Option Definitions (the
“FX Definitions”) as published by ISDA, the Emerging Markets Traders Association and The Foreign Exchange Committee (together, the “Definitions”) are incorporated into this Confirmation. In the event of any inconsistency between
the 2006 Definitions and the FX Definitions, the 2006 Definitions shall govern, except that the FX Definitions shall govern for the purposes of the Settlement Provisions set out below. In the event of any inconsistency between the Definitions and
this Confirmation, this Confirmation will govern. References herein to a “Transaction” shall be deemed to be references to a “Swap Transaction” for the purposes of the 2006 Definitions. 

1. This Confirmation supplements, forms a part of, and is subject to, the Master Agreement dated as of 14 December 2009, as amended
and supplemented from time to time (the “Agreement”), between you and us. All provisions contained in the Agreement shall govern this Confirmation except as expressly modified below. 

2. The terms of the particular Transaction to which this Confirmation relates are as follows: 

General Terms: 
  

			
	    Party A:	  	Morgan Stanley & Co. International Plc
		
	    Party A Credit Support:	  	As per the Agreement
		
	    Party B:	  	Arcos Dorados B.V.
		
	    Trade Date:	  	15 December 2009
		
	    Effective Date:	  	1 October 2009
		
	    Termination Date:	  	1 October 2014
		
	Fixed Amounts I:	  	
		
	    Fixed Rate I Payer:	  	Party A
		
	    Fixed Rate I Payer Currency Amount:	  	USD 100,000,000
		
	    Fixed Rate I:	  	7.50000%

			
	 Fixed Rate I Payment Dates:
	 	On 1 April and 1 October in each year, from and including 1 April 2010 to and including 1 October 2014, subject to adjustment in accordance with the
Modified Following Business Day Convention with No Adjustment to Period End Dates
		
	 Fixed Rate I Day Count Fraction:
	 	30/360
		
	Fixed Amounts II:	 	
		
	 Fixed Rate II Payer:
	 	Party B
		
	 Fixed Rate II Payer Currency Amount:
	 	BRL 176,000,000
		
	 Fixed Rate II:
	 	9.08000%
		
	 Fixed Rate II Payment Dates:
	 	On 1 April and 1 October in each year, from and including 1 April 2010 to and including 1 October 2014, subject to adjustment in accordance with the Modified Following Business
Day Convention with No Adjustment to Period End Dates
		
	 Fixed Rate II Day Count Fraction:
	 	Actual/360
		
	 Fixed Amounts II:
	 	On each Fixed Rate II Payer Payment Date, the Fixed Amounts II shall be determined in accordance with the following formula:
		
		 	Fixed Amounts II = (Fixed Rate II Payer Currency Amount x Fixed Rate II x Fixed Rate II Day Count Fraction)
		
		 	Fixed Amounts in BRL shall be converted into USD in accordance with the Settlement Provisions below.
		
	Settlement Provisions:	 	
		
	 Settlement:
	 	Non-Deliverable, with the effect that any Reference Currency amounts payable hereunder on a Payment Date shall be converted into Settlement Currency amounts by reference to the
Settlement Rate Option on each Valuation Date. The obligations of the parties to pay the Fixed Amounts I or the Fixed Amounts II, as the case may be, shall be replaced by an obligation of one party to pay the Settlement Amount in accordance with the
provisions of this Confirmation. The Settlement Amount shall be determined on the Valuation Date by the Calculation Agent as follows:
		
		 	

		
		 	If the Settlement Amount is a positive number, the Fixed Rate I Payer shall pay the Settlement Amount to the Fixed Rate II Payer on the respective Payment Date.
		
		 	If the Settlement Amount is a negative number, the Fixed Rate II Payer shall pay the absolute value of the Settlement Amount to the Fixed Rate I Payer on the respective Payment
Date.
		
	 Reference Currency:
	 	BRL
		
	 Settlement Currency:
	 	USD
		
	 Settlement Rate Option:
	 	BRL PTAX (BRL09)
		
	 Valuation Date:
	 	Two Business Days prior to each Fixed Rate II Payment Date (each a “Scheduled Valuation Date”), subject to adjustment in

  
 2 

			
	 	  	accordance with the Preceding Business Day Convention;
provided, however, that the adjustment shall be made in
accordance with the Following Business Day Convention in
the
event of an Unscheduled Holiday. Notwithstanding the
foregoing, if the parties have specified a Scheduled Valuation
Date that falls on a date that, as at the Trade Date, is not a
scheduled Business Day in New York, no adjustment
shall be
made on account of the fact that such date is not a Business Day
in New York.
		
	 Disruption Events and Fallbacks:
	  	
		
	 Disruption Events:
	  	
		
	 Price Source Disruption:
	  	Applicable
		
	 Price Materiality:
	  	Applicable
		
	 Primary Rate:
	  	BRL PTAX (BRL09)
		
	 Secondary Rate:
	  	EMTA BRL Industry Survey Rate (BRLI2), or EMTA BRL Indicative Survey Rate (BRL 13), as the case may be.
		
	 Price Materiality Percentage:
	  	3%, provided, however, that if there are insufficient responses on the Valuation Date to the EMTA BRL Industry Survey or the EMTA BRL Indicative Survey, as the case may be, the
Price Materiality Percentage will also be deemed to have been met.
		
	 Disruption Fallbacks:
	  	
		
	 First Fallback Reference Price:
	  	EMTA BRL Industry Survey Rate (BRL 12)
		
	 Valuation Postponement
	  	
		
	 Second Fallback Reference Price:
	  	EMTA BRL Indicative Survey Rate (BRL13)
		
	 Calculation Agent Determination of Settlement Rate
	  	
		
	Other Terms:	  	
		
	 Unscheduled Holiday:
	  	“Unscheduled Holiday” means that a day is not a Business Day and the market was not aware of such fact (by means of a public announcement or by reference to other
publicly available information) until a time later than 9:00 am local time in the Principal Financial Center(s) of the Reference Currency two Business Days prior to the Scheduled Valuation Date.
		
	 Deferral Period for Unscheduled Holiday:
	  	In the event the Scheduled Valuation Date becomes subject to the Following Business Day Convention, and if the Valuation Date has not occurred on or before the 30th consecutive
day after the Scheduled Valuation Date (any such period being a “Deferral Period”), then the next day after the Deferral Period that would have been a Business Day but for the Unscheduled Holiday, shall be deemed to be the Valuation
Date.
		
	 Valuation Postponement for Price Source Disruption:
	  	“Valuation Postponement” means, for purposes of obtaining a Settlement Rate, that the Spot Rate will be determined on the Business Day first succeeding the day on which
the Price Source Disruption ceases to exist, unless the Price Source Disruption continues to exist (measured from the date, that, but for the occurrence of the Price Source Disruption, would have been the Valuation Date) for a consecutive number of
calendar days equal to the Maximum Days of Postponement.

  
 3 

			
	 	 	In such event, the Spot Rate will be determined on the next
Business Day after the Maximum Days of Postponement in
accordance with the next applicable Disruption
Fallback.
		
	Cumulative Events:	 	Notwithstanding anything herein to the contrary, in no event shall the total number of consecutive calendar days during which either (i) valuation is deferred due to an
Unscheduled Holiday, or (ii) a Valuation Postponement shall occur (or any combination of (i) and (ii)), exceed 30 consecutive calendar days in the aggregate. Accordingly, (x) if, upon the lapse of any such 30 day period, an Unscheduled Holiday shall
have occurred or be continuing on the day following such period, then such days shall be deemed to be a Valuation Date, and (y) if, upon the lapse of any such 30 day period, a Price Source Disruption shall have occurred or be continuing on the day
following such period, then Valuation Postponement shall not apply and the Spot Rate shall be determined in accordance with the next Disruption Fallback.
		
	Maximum Days of Postponement:	 	Thirty (30) calendar days
		
	Business Days Applicable to the Valuation Date (as defined in the FX Definitions):	 	Any of Rio de Janeiro, São Paulo or Brasilia and New York City
		
	Business Days Applicable to the Fixed Amounts I & Fixed Amounts II (as defined in the 2006 Definitions):	 	Rio de Janeiro, São Paulo or Brasilia
		
	Business Days applicable to the Payment Date (as defined in the 2006 Definitions):	 	Any of Rio de Janeiro, São Paulo or Brasilia, and New York City, provided however, that in the event of an Unscheduled Holiday following the Trade Date, then New York
only.
		
	Calculation Agent:	 	Party A

 3. Offices: 

 

			
	 a)      The Office of Party A for the Transaction is:
	 	New York
		
	 b)      The Office of Party B for the Transaction is:
	 	Please advise

 4. Each party will be deemed to represent to
the other party that (absent a written agreement between the parties that expressly imposes affirmative obligations to the contrary for this Transaction): 
  

	a)	Non-Reliance. It is acting for its own account, and has made its own independent decisions to enter into this Transaction and as to whether this Transaction is
appropriate or proper for it based upon its own judgment and upon advice from such advisers as it has deemed necessary. It is not relying on any communication (written or oral) of the other party as investment advice or as a recommendation to enter
into this Transaction; it being understood that information and explanations related to the terms and conditions of this Transaction shall not be considered investment advice or a recommendation to enter into this Transaction. No communication
(written or oral) received from the other party shall be deemed to be an assurance or guarantee as to the expected results of this Transaction. 

  

	b)	Assessment and Understanding. It is capable of assessing the merits of and understanding (on its own behalf or through independent professional advice), and understands
and accepts, the terms, conditions and risks of this Transaction. It is also capable of assuming, and assumes, the risks of this Transaction. 

  

	c)	Status of Parties. The other party is not acting as a fiduciary for or an advisor to it in respect of this Transaction. 

5. Account Details 
  

			
	Payments to Party A:	 	To be provided

  
 4 

			
	Payments to Party B:	 	Please Provide
		
	Documentation Contacts:	 	 Interbank Clients:
 Hotline:
+1 410-534-1593
 Facsimile: +1 212-404-4762
 Email: Derivative.Confirms.Americas@morganstanley.com

		
	Operations Contact:	 	 Telephone: 212 761-4662

Facsimile: 212 404-4726

Please confirm that the foregoing correctly sets forth the terms of our agreement MSCS Ref. YRZQA by executing this Confirmation and returning it to us.

 Best regards, 
  

					
	MORGAN STANLEY & CO. INTERNATIONAL PLC.
		
	By:	 	 /s/ Iwona Szmidt

		 	Name:	 	Iwona Szmidt
		 	Title:	 	Vice President

 Acknowledged and agreed as of the date first
written above: 
  

			
	ARCOS DORADOS B.V.
		
	By:	 	 /s/ Diego Pace

		 	Name:  Diego Pace
		 	Title:    Corporate Finance Director

MORGAN STANLEY & CO. INTERNATIONAL PLC is authorised and regulated by the Financial Services Authority 

Our charges may comprise commission as notified to you from time to time and/or mark-up or mark-down. We may share charges with our Associated Firms or
other third parties or receive remuneration from them in respect of transactions carried out with or for you or we may be acting on both sides of the transaction. We or our Associate may pass on part of our or their charges to a third party as a
reward for introducing your business to us or them. Details of any such arrangements will be made available to you upon written request. Time of execution is available on request. 

  
 5ISDA Schedule to the 2002 Master Agreement dated as of December 14, 2009

 Exhibit 10.19 

 Execution Copy 
 SCHEDULE 
 to the 

2002 MASTER AGREEMENT 
 dated as of December 14, 2009 
 between 

 

					
	 JPMORGAN CHASE BANK,
 NATIONAL ASSOCIATION
 (“Party A”)
	 	and    	 	 ARCOS DORADOS B.V.
 (“Party B”)

 PART 1 

Termination Provisions 
  

	(1)	“Specified Entity” means, in relation to Party A, for the purpose of: 

Section 5(a)(v), any Affiliate of Party A; 
 Section 5(a)(vi), none; 
 Section 5(a)(vii), none; and

 Section 5(b)(v), none; 
 and, in relation to Party B, for the purpose of: 
 Section 5(a)(v),
none; 
 Section 5(a)(vi), none; 
 Section 5(a)(vii), none; and 
 Section 5(b)(v), none.

  

	(2)	“Specified Transaction” will have the meaning specified in Section 14 of this Agreement. 

 

	(3)	The “Cross-Default” provisions of Section 5(a)(vi) will apply to Party A and Party B, and for such purpose: 

	 	(a)	“Specified Indebtedness” will have the meaning specified in Section 14 of this Agreement, except that such term shall not include
obligations in respect of deposits received in the ordinary course of a party’s banking business. 

  

	 	(b)	“Threshold Amount” means, with respect to Party A, an amount equal to three percent of the shareholders’ equity of Party A; and with
respect to Party B, USD 25,000,000, or the equivalent thereof in any other currency or currencies. For purposes of this definition, any Specified Indebtedness denominated in a currency other than the currency in which the Threshold Amount is
expressed shall be converted into the currency in which the Threshold Amount is expressed at the exchange rate therefor reasonably chosen by the other party. 

 

	(4)	The “Credit Event Upon Merger” provisions of Section 5(b)(v) will apply to Party A and Party B; provided, however, that if the applicable
party has long term, unsecured and unsubordinated indebtedness or deposits which is or are publicly rated (such rating, a “Credit Rating”) by Moody’s Investor Services. Inc. (“Moody’s”), Standard and Poors Ratings Group
(“S&P”) or any other internationally recognized rating agency (a “Rating Agency”), then the words “materially weaker” in line 6 of Section 5(b)(v) shall mean that the Credit Rating of such party (or, if
applicable, the Credit Support Provider of such party) shall be rated lower than Baa3 by Moody’s, or lower than BBB- by S&P or, in the event that there is no Credit Rating by either Moody’s or S&P applicable to such party (or, if
applicable, the Credit Support Provider of such party) but such party’s long-term indebtedness or deposits is or are rated by a Rating Agency, lower than a rating equivalent to the foregoing by such Rating Agency. 

 

	(5)	The “Automatic Early Termination” provision of Section 6(a) will not apply to Party A or Party B. 

 

	(6)	“Termination Currency” will have the meaning set forth in Section 14 of this Agreement. 

 

	(7)	Additional Termination Event will not apply. 

 PART 2 
 Tax Representations 

 

	(1)	Payer Tax Representations. For the purpose of Section 3(e) of this Agreement, Party A and Party B each hereby make the following representation:

  
 2 

 It is not required by any applicable law, as modified by the practice of any relevant
governmental revenue authority, of any Relevant Jurisdiction to make any deduction or withholding for or on account of any Tax from any payment (other than interest under Section 9(h) of this Agreement or amounts payable hereunder that may be
considered to be interest for United States federal income tax purposes) to be made by it to the other party under this Agreement. In making this representation, it may rely on (i) the accuracy of any representations made by the other party
pursuant to Section 3(f) of this Agreement, (ii) the satisfaction of the agreement contained in Section 4(a)(i) or 4(a)(iii) of this Agreement and the accuracy and effectiveness of any document provided by the other party pursuant to
Section 4(a)(i) or 4(a)(iii) of this Agreement and (iii) the satisfaction of the agreement of the other party contained in Section 4(d) of this Agreement, except that it will not be a breach of this representation where reliance is
placed on clause (ii) above and the other party does not deliver a form or document under Section 4(a)(iii) by reason of material prejudice to its legal or commercial position. 

 

	(2)	Payee Tax Representations. For the purpose of Section 3(f) of this Agreement, Party A and Party B each hereby make the following representations:

  

	 	(i)	Party A represents that it is a U.S. person for U.S. federal income tax purposes. 

 

	 	(ii)	Party B represents that: 

 It is
a “non-U.S. branch of a foreign person” within the meaning of Section 1.1441-4(a)(3)(ii) of the United States Treasury Regulations and a “foreign person” within the meaning of Section 1.6041-4(a)(4) of the United States
Treasury Regulations. 
 It is not (1) a bank that has entered into this Agreement in the ordinary course of its trade or
business of making loans, as described in Section 881(c)(3)(A) of the Internal Revenue Code of 1986, as amended (the “Code”), (2) a 10-percent shareholder of Party A within the meaning of Code Section 871(h)(3)(B), or
(3) a controlled foreign corporation related to Party A within the meaning of Code Section 881 (c)(3)(C). 
 PART
3 
 Agreement to Deliver Documents 
 For the purpose of Sections 4(a)(i) and 4(a)(ii) of this Agreement, each party agrees to deliver the following documents: 

  
 3 

	 	(a)	Tax forms, documents or certificates to be delivered are: 

  

					
	 Party required
to deliver
document
	  	 Form/Document/Certificate
	  	 Date by which to Be delivered

	Party A	  	A complete and accurate U.S. Internal Revenue Service Form W-9 or any successor form, in a manner reasonably satisfactory to Party B.	  	(i) Upon becoming a party to this Agreement, (ii) thereafter promptly upon reasonable demand by the other party, and (iii) if such form or document was previously delivered and has
become obsolete or incorrect, promptly upon learning that such form or document previously delivered by Party A has become obsolete or incorrect.
	Party B	  	A complete and accurate U.S. Internal Revenue Service Form W-8BEN or any successor form, in a manner reasonably satisfactory to Party A.	  	(i) Upon becoming a party to this Agreement, (ii) thereafter promptly upon reasonable demand by the other party, and (iii) if such form or document was previously delivered and has
become obsolete or incorrect, promptly upon learning that such form or document previously delivered by Party A has become obsolete or incorrect.

  

	 	(b)	Other documents to be delivered are: 

  

							
	 Party
required to
deliver
document
	  	 Form/Document/Certificate
	  	 Date by

which to be

delivered
	  	 Covered by

Section 3(d)

Representation

				
	Party B	  	Annual Report of Party B and of its Credit Support Provider (as applicable) containing consolidated financial statements certified by independent certified public accountants
and	  	as soon as available and in any event within 120 days after the end of each fiscal year of	  	Yes

  
 4 

							
		  	prepared in accordance with accounting principles that are generally accepted in the country or countries in which Party B and its Credit Support Provider (as applicable) is
organized. For the avoidance of doubt, such statement shall only be required of the Credit Support Provider to the extent the Credit Support Provider prepares such statements.	  	Party B	  	
				
	Party B	  	Unaudited consolidated financial statements of Party B and of its Credit Support Provider (as applicable) for a fiscal quarter prepared in accordance with accounting principles that
are generally accepted in the country or countries in which Party B and its Credit Support Provider (as applicable) is organized. For the avoidance of doubt, such statements shall only be required of the Credit Support Provider to the extent the
Credit Support Provider prepares such statements.	  	as soon as available and in any event within 90 days after the end of each fiscal quarter of Party B	  	Yes
				
	Party A	  	A copy of Party A’s call report filed with the Federal Deposit Insurance Corporation (“FDIC”)	  	Within 30 days following the end of the relevant quarter if not otherwise available on the FDIC’s website	  	Yes

  
 5 

							
				
	Party B	  	Certified copies of all corporate authorizations and any other documents with respect to the execution, delivery and performance of this Agreement	  	Upon execution and delivery of this Agreement	  	Yes
				
	 Party A and
 Party
B
	  	Certificate of authority and specimen signatures of individuals executing this Agreement, Confirmations and each Credit Support Document (as applicable)	  	Upon execution and delivery of this Agreement and thereafter upon request of the other party	  	Yes

 PART 4 

Miscellaneous 
  

	(1)	Addresses for Notices. For the purpose of Section 12(a) of this Agreement: 

Address for notice or communications to Party A: 
 Any notice relating to a particular Transaction shall be delivered to the address or facsimile number specified in the Confirmation of such Transaction. Any notice delivered for purposes of Sections 5 and
6 of this Agreement shall be delivered to the following address: 
 JPMorgan Chase Bank, National Association 

Attention: Legal Department-Derivatives Practice Group 
 270 Park Avenue 
 New York, New York 10017-2070 

Facsimile No.: (646) 534-6393 
 Address for notice or communications to Party B: 
 Arcos Dorados B.V. 

C/C Arcos Dorados Argentina S.A. 
 Roque Saenz Peña 432 -Olivos -Buenos Aires 
 Argentina - B1636FFB

 Attention: Miguel Sanchez de Bustamante / Diego Pace / Julieta Nalband

  
 6 

 
Facsimile No.: (54-11) 4711-2236 
 Telephone No.: (54-11) 4711-2000

  

	(2)	Process Agent. For the purpose of Section 13(c) of this Agreement: 

Party A appoints as its Process Agent: Not applicable. 
 Party B appoints as its Process Agent: 
 National Registered Agents, Inc.

 875 Avenue of the Americas, Suite 501 
 New York, NY 10001 
  

	(3)	Offices. The provisions of Section 10(a) will apply to this Agreement. 

 

	(4)	Multibranch Party. For the purpose of Section 10 of this Agreement: 

Party A is a Multibranch Party and may act through any Office specified in a Confirmation. 

Party B is not a Multibranch Party. 
  

	(5)	Credit Support Document. 

 The ISDA Credit Support Annex and supplementary “Paragraph 13 -Elections & Variables” dated as of the date of this Agreement shall constitute a “Credit Support Document” in
relation to each party, respectively, with respect to all of the obligations of the parties hereunder and for all purposes of this Agreement. 
 The Subsidiary Guarantee of each Credit Support Provider dated as of the date hereof in favor of Party A and in the form appended hereto shall constitute a “Credit Support Document” in relation
to all of the obligations of Party B hereunder and for all purposes of this Agreement. 
  

	(6)	Credit Support Provider. 

 Credit Support Provider means, in relation to Party A, not applicable. 
 Credit
Support Provider means, in relation to Party B, each Subsidiary Guarantor (as defined in the Indenture). 
  

	(7)	Governing Law. This Agreement will be governed by and construed in accordance with the laws of the State of New York (without reference to choice of law
doctrine). 

  
 7 

	(8)	Netting of Payments. “Multiple Transaction Payment Netting” will apply for the purpose of Section 2(c) of this Agreement to all
Transactions starting from the date of this Agreement. 

  

	(9)	“Affiliate” will have the meaning specified in Section 14 of this Agreement. 

 

	(10)	Absence of Litigation. For the purpose of Section 3(c) of this Agreement: 

“Specified Entity” means, in relation to Party A, none. 

“Specified Entity” means, in relation to Party B, none. 

 

	(11)	No Agency. The provisions of Section 3(g) of this Agreement will apply to this Agreement. 

 

	(12)	Additional Representation will apply. For the purpose of Section 3 of this Agreement, the following will each constitute an Additional
Representation: 

 (h) Relationship Between Parties. Each party will be deemed to represent to the other
party on the date on which it enters into a Transaction that (absent a written agreement between the parties that expressly imposes affirmative obligations to the contrary for that Transaction): 

(i) Non-Reliance. It is acting for its own account, and it has made its own independent decisions to enter into
that Transaction and as to whether that Transaction is appropriate or proper for it based upon its own judgment and upon advice from such advisers as it has deemed necessary. It is not relying on any communication (written or oral) of the other
party as investment advice or as a recommendation to enter into that Transaction, it being understood that information and explanations related to the terms and conditions of a Transaction will not be considered investment advice or a recommendation
to enter into that Transaction. No communication (written or oral) received from the other party will be deemed to be an assurance or guarantee as to the expected results of that Transaction. 

(ii) Assessment and Understanding. It is capable of assessing the merits of and understanding (on its own behalf or
through independent professional advice), and understands and accepts, the terms, conditions and risks of that Transaction. It is also capable of assuming, and assumes, the risks of that Transaction. 

  
 8 

 (iii) Status of Parties. The other party is not acting as a fiduciary
for or an adviser to it in respect of that Transaction. 
 (iv) Other Transactions. It understands and
acknowledges that the other party may, either in connection with entering into a Transaction or from time to time thereafter, engage in open market transactions that are designed to hedge or reduce the risks incurred by it in connection with such
Transaction and that the effect of such open market transactions may be to affect or reduce the value of such Transaction. 
  

	(13)	“Indenture” means the Indenture, dated as of October 1, 2009, among Party B, the Subsidiary Guarantors named therein, Citibank. N.A. (as
Trustee, Registrar, Paying Agent and Transfer Agent), and Dexia Banque Intemationale A Luxembourg, Societe Anonyme (as Luxembourg Paying Agent), as amended, supplemented or otherwise modified from time to time; provided that if the obligations under
the Indenture are paid in full or the Indenture is otherwise terminated or cancelled, Indenture means the Indenture as it existed immediately prior to such event. Capitalized terms defined therein and not otherwise defined herein shall have the
meanings assigned in the Indenture. 

  

	(14)	Additional Event of Default. With respect to Party B, it shall constitute an Event of Default under this Agreement if the occurrence of:

 (i) the Event of Default set forth in Article VI, Section 6.1 (vii) of the Indenture, relating to the
termination of either Master Franchise Agreement. 
 Capitalized terms defined therein and not otherwise defined herein shall
have the meanings assigned in the Indenture. 
  

	(15)	Further Agreements of Party B. Party B agrees with Party A that, so long as it may have any obligations under this Agreement or any Credit Support
Documents to which it is a party, Party B will comply with the provisions set forth within Article III, Section 3.8(a) of the Indenture, regarding limitations on incurrence of additional indebtedness. Notwithstanding the foregoing, Party
B’s obligation hereunder with regard to this covenant specified in Section 3.8(a) of the Indenture shall be suspended if a Covenant Suspension Event has occurred and is continuing. 

Capitalized terms defined therein and not otherwise defined herein shall have the meanings assigned in the Indenture. 

 

	(16)	 Eligible Contract Participant. Each party represents to the other party (which representation will be deemed to be repeated by each party
on each 

  
 9 

	 	 
date on which a Transaction is entered into) that it is an “eligible contract participant”, as defined in the Commodity Futures Modernization Act of 2000. 

 

	(17)	Recording of Conversations. Each party (i) consents to the recording of telephone conversations between the trading, marketing and other relevant
personnel of the parties and their Affiliates in connection with this Agreement or any potential Transaction, (ii) agrees to obtain any necessary consent of, and give any necessary notice of such recording to, its relevant personnel and
(iii) agrees, to the extent permitted by applicable law, that recordings may be submitted in evidence in any Proceedings. 

 PART 5 
 Other Provisions 

 

	(1)	Waiver of Jury Trial. Each party waives, to the fullest extent permitted by applicable law, any right it may have to a trial by jury in respect of any suit,
action or proceeding relating to this Agreement or any Credit Support Document. Each party (i) certifies that no representative, agent or attorney of the other party or any Credit Support Provider has represented, expressly or otherwise, that
such other party would not, in the event of such a suit, action or proceeding, seek to enforce the foregoing waiver and (ii) acknowledges that it and the other party have been induced to enter into this Agreement and provide for any Credit
Support Document, as applicable, by, among other things, the mutual waivers and certifications in this Section. 

  

	(2)	ISDA Definitions. Reference is hereby made to the 2006 ISDA Definitions (the “2006 Definitions”) and the 1998 FX and Currency Option Definitions
(the “FX Definitions”) (collectively the “ISDA Definitions”) each as published by the International Swaps and Derivatives Association, Inc., which are hereby incorporated by reference herein. Any terms used and not otherwise
defined herein which are contained in the ISDA Definitions shall have the meaning set forth therein. 

  

	(3)	 Scope of Agreement. Notwithstanding anything contained in this Agreement to the contrary, any transaction (other than a repurchase
transaction, reverse repurchase transaction, buy/sell-back transaction or securities lending transaction) which may otherwise constitute a “Specified Transaction” (without regard to the phrase “which is not a Transaction under this
Agreement but” in the definition of “Specified Transaction”) for purposes of this Agreement which has been or will be entered into between the parties shall constitute a “Transaction” which is subject to, governed by, and
construed in accordance with the terms of this 

  
 10 

	 	 
Agreement, unless any Confirmation with respect to a Transaction entered into after the execution of this Agreement expressly provides otherwise. 

 

	(4)	Inconsistency. In the event of any inconsistency between any of the following documents, the relevant document first listed below shall govern: (i) a
Confirmation; (ii) the Schedule and Paragraph 13 of an ISDA Credit Support Annex (as applicable); (iii) the ISDA Definitions; and (iv) the printed form of 2002 ISDA Master Agreement and 1994 ISDA Credit Support Annex (as applicable).
In the event of any inconsistency between provisions contained in the 2006 Definitions and the FX Definitions, the FX Definitions shall prevail. 

  

	(5)	Notice by Facsimile Transmission. Section 13(c) is hereby amended by deleting the words “, 12(a)(iii)” from the fifth line thereof.

  

	(6)	Bankruptcy. Section 5(a)(vii) shall be amended to replace the reference to “ 15 days” with “30 days” in clause (4)(B)(II) and
(7) thereof. 

 [Signature page to follow] 

  
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 Please confirm your agreement to the terms of the foregoing Schedule by signing below. 

 

											
	 JPMORGAN CHASE BANK,

NATIONAL ASSOCIATION
	 	ARCOS DORADOS B.V.
				
	By:	 	  /s/ Patricia Marckesano
	 	By:	 	  /s/ Diego Pace

		 	 Name:	  	Patricia Marckesano	 		 	 Name:	 	Diego Pace
		 	 Title:	  	Vice President and Assistant General Counsel	 		 	 Title:	 	Corporate Finance Manager

  
 12

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