Document:

Exhibit
4.8

 

Translation from French for information only

 

[From (letterhead): ]

 

EURO DISNEY
S.A.S.

Immeubles Administratifs

Route Nationale 34

77700 Chessy

 

EURO DISNEY
S.C.A.

Immeubles Administratifs

Route Nationale 34

77700 Chessy

1 December 2004

 

BNP Paribas
E.C.E.P.

Project Finance

37, place du Marché Saint Honoré

75001 Paris

CALYON
81-83 rue
de Richelieu

75001 Paris

 

Caisse des
Dépôts et Consignations
72 rue
Pierre Mendès-France

75914 Paris Cedex 13

 

 

Dear Sirs,

 

We enclose a copy of a letter sent by Euro
Disney S.A.S. to Euro Disney S.C.A.(schedule A) and of the agreement (the “Agreement”)
dated 1 December 2004 between Euro Disney SAS and Euro Disney Associés
S.C.A. (schedule B).  Terms defined
in the Agreement have the same meanings for the purposes of this letter.

 

We hereby confirm that, so long as any amount
remains unpaid in respect of the CDC Loan Agreements, the CDC Second Park
Agreements, the Phase IA Credit Facility Agreement, the Phase IB Credit
Facility Agreement, the Phase IB Advances Agreement, the Phase IA Partners
Advances Agreement, you will be entitled, in the case of CDC, in respect of the
CDC Loan Agreements and the CDC Second Park Agreements, in the case of BNP
Paribas, as Agent for the Phase IA Banks in respect of the Phase IA Credit
Facility Agreement, and in the case of CALYON, as Agent for the Phase IB Banks
and Phase IB Lenders in respect of the Phase IB Credit Facility Agreement and
the Phase IB Advances Agreement and as Agent for the IA Partners in respect of
the Phase IA Partners Advances Agreement, to take all measures with a view to
enforcing the provisions of the Letter and the Agreement.

 

 

This letter is provided to you, in the case
of CDC, in respect of the CDC Loan Agreements and the CDC Second Park
Agreements, in the case of BNP Paribas, as Agent for the Phase IA Banks in
respect of the Phase IA Credit Facility Agreement, and in the case of CALYON,
as Agent for the Phase IB Banks and Phase IB Lenders in respect of the Phase IB
Credit Facility Agreement and the Phase IB Advances Agreement and as Agent for
the IA Partners in respect of the Phase IA Partners Advances Agreement, for
your exclusive benefit and that of the institutions whose Agents are BNP
Paribas and CALYON respectively.  No
provision of this letter will grant any third party or will create in favour of
any third party, other than such institutions, in their capacity as creditors
under the Phase IA Credit Facility Agreement, the Phase IB Credit Facility
Agreement, the Phase IB Advances Agreement, and the Phase IA Partners Advances
Agreement, any right or recourse whatsoever which would not exist in the
absence of this letter.

 

This letter will cease to have any effect in
the event of the provisions of article 3.2 (Royalties
and Management Fees) of the Memorandum of Agreement being terminated
in accordance with the provisions of article 7.7 (Termination)
of the Memorandum of Agreement.

 

The provisions of this letter are governed by
French law and shall be interpreted in accordance therewith. Any dispute
relating thereto will be submitted to the competent courts within the
jurisdiction of the Paris Court of Appeal.

Yours truly,

 

 

	
  Euro Disney S.A.S.

  
	
   

  
	
   

  
	
   

  	
   

  
	
  by

  
	
   

  
	
  Euro Disney S.A.S.

  
	
  in its capacity as manager of

  
	
  Euro Disney Associés S.C.A.

  
	
   

  
	
   

  
	
   

  	
   

  
	
  by

  

 

Accepted in the name and on behalf of the
Phase IA Banks party to the Phase IA Credit Facility Agreement

 

 

	
   

  	
   

  
	
  BNP Paribas

  
	
  in its capacity as Agent

  
	
  by

  

 

 

Accepted in the name and on behalf of the
Phase IB Banks and Phase IB Lenders party to the Phase IB Credit Facility
Agreement and Phase IB Advances Agreement and in the name of the IA Partners
party to the Phase IA Partners Advances Agreement

 

	
   

  	
   

  
	
  CALYON

  
	
  in its capacity as Agent

  
	
  by

  
	
   

  
	
  Accepted

  
	
   

  
	
   

  	
   

  
	
  Caisse des
  Dépôts et Consignations

  
	
  by

  
			

 

 

Schedule A

 

Form of letter
on the protection mechanism

Management Fees

 

[on Euro Disney S.A.S. headed note paper]

 

Euro Disney S.C.A.

Immeubles Administratifs

Route Nationale 34

77700 Chessy

1 December 2004

 

 

Dear Sirs,

 

Re: Management Fees

 

We refer to:

(i)            article IV of your statuts which
provides for certain payments in our favour by way of remuneration for our
management;

 

(ii)           the Common Agreement dated 10 August 1994 as amended and restated
in accordance with the Common Agreement Amendment and Restatement dated 1 December 2004.

 

Terms defined in the statuts,
in the Common Agreement and in the Common Agreement Amendment and Restatement
have the same meanings for the purposes of this letter.

 

Notwithstanding the provisions of any other
document:

 

(A)          we agree to receive Management
Fees on an annual rather than on a quarterly basis in respect of each of your
Financial Years 2005 to 2014 inclusive, such remuneration being due and payable
subject to (B) and (C) below, not later than five Business Days following the
date on which the Agents receive the Performance Indicator Report, verified and
confirmed, or, as the case may be, validated by the Expert, in accordance with
the Common Agreement and the Covenants;

 

(B)          we accept the deferral of
the Management Fees due in respect of each of your Financial Years 2005 to 2009
inclusive, up to a total amount of €25 million, excluding taxes, in
respect of each Financial Year, the amount so deferred constituting
Subordinated Long Term Debt bearing interest at an annual rate of 12 months EURIBOR
capitalised annually in accordance with article 1154 of the Civil Code
until 1 January 2017; with effect from that date interest calculated at
the above rate will become due and payable annually in arrear. Upon each
deferral you will issue in our favour an acknowledgement of debt evidencing
such Subordinated Long Term Debt including in substance the terms of the
Promissory Note annexed to the Standby Revolving Credit Supplemental Agreement;

 

 

(C)           we accept, without
prejudice to the foregoing in respect of Financial Years 2007, 2008 and 2009,
the deferral of Management Fees due in respect of each of your Financial Years
2007 to 2014 inclusive, if the Performance Indicator, or, as the case may be,
the pro forma Performance Indicator for the relevant Financial Year (the “Financial
Year PI”) is lower than the reference n°1 Performance Indicator for such
Financial Year described in the schedule in an amount equal to the
difference between reference Performance Indicator n° 1 and the Financial Year
Performance Indicator, up to an amount of €25 million, excluding taxes,
per Financial Year; the amount so deferred shall constitute Subordinated Long
Term Debt bearing interest at an annual rate of 12 months EURIBOR capitalised
annually in accordance with article 1154 of the Civil Code until 1 January 2017;
with effect from that date interest calculated at the above rate will become
due and payable annually in arrear. Upon each deferral you will issue in our
favour an acknowledgement of debt evidencing such Subordinated Long Term Debt
including in substance the terms of the Promissory Note annexed to the Standby
Revolving Credit Supplemental Agreement.

 

The provisions of this letter will be for the
exclusive benefit of Euro Disney Associés S.C.A. upon realisation of the
Contribution in accordance with the Contribution Agreement.

 

This letter will cease to have any effect in
the event of the provisions of article 3.2 (Royalties
and Management Fees) of the Memorandum of Agreement being terminated
in accordance with the provisions of article 7.7 (Termination)
of the Memorandum of Agreement.

 

This letter is signed in the French
language. In case of discrepancy between the French text and any other version
which may exist in any other language, the French text shall prevail.

 

The provisions of this letter are governed by
French law.  Any dispute relating thereto
will be referred to the Paris Commercial Court.

 

Yours truly,

 

Euro Disney
S.A.S.

 

 

Annex
to the Letter

Reference
Performance Indicator n° 1

Reference
Sequence in million euros

 

	
  Financial

  Year

  	
   

  	
  2005

  	
   

  	
  2006

  	
   

  	
  2007

  	
   

  	
  2008

  	
   

  	
  2009

  	
   

  	
  2010

  	
   

  	
  2011

  	
   

  	
  2012

  	
   

  	
  2013

  	
   

  	
  2014

  	
   

  	
  2015

  	
   

  	
  2016

  	
   

  	
  2017

  and

  beyond

  	
   

  
	
  Reference IP n° 1

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  282.5

  	
   

  	
  305.4

  	
   

  	
  313.1

  	
   

  	
  317.2

  	
   

  	
  340.6

  	
   

  	
  352.7

  	
   

  	
  365.8

  	
   

  	
  380.6

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

Schedule B

 

AGREEMENT

 

BETWEEN :

 

EURO DISNEY S.A.S. (the « Management
Company »)

of
the one part

and

 

EURO DISNEY ASSOCIES S.C.A. (the « Operating
Company»)

of
the other part

 

 

WHEREAS:

 

The Management Company has been appointed
manager of the Operating Company pursuant to the latter’s statuts.

 

The Operating Company is one of the Borrowers
under a multi currency credit facility agreement, which operates by way of
withdrawals or the issuance of letters of credit dated September 5, 1989
between (1) Euro Disneyland S.N.C. and the Operating Company (as Borrowers),
(2) the Banks whose names are contained in schedule 1 thereto and (3) BNP
Paribas (as Agent), as amended and restated on the Restatement Date (the
« Credit Agreement »)

 

IT IS HEREBY AGREED AS FOLLOWS :

 

1.             DEFINITIONS

Expressions defined in the
Credit Agreement, the Common Agreement or the Covenants have the same meanings
for the purposes of this Agreement.

 

“Debt Service” means, in respect of any Period, all amounts which are due and
payable by any member of the Group during such Period pursuant to the Credit
Agreements, the CDC Agreement, the Phase IB Credit Facility Agreement, and the
Phase IB Advances Agreement as well as any taxes which are due and payable by
them during such Period.

 

“Period” means a quarter, a year or any other period by reference to which
turnover is taken into account in the calculation of Base Fee or Incentive Fee
and following the expiration of which such Base Fee or Incentive Fee falls due.

 

“Statuts” means the Operating Company’s Statuts.

 

2.             DECLARATION - UNDERTAKINGS

The Management Company
undertakes to comply with the payment terms of the Base Fee as provided in its
letter to the Operating Company dated 1 December 2004 a copy of which is
attached to this Agreement and hereby agrees to the payment deferral of the
Management Fees resulting therefrom.  The
Operating Company and the Management Company declare and acknowledge that no
management fees have been paid since 1, January, 2003.

 

 

3.             DEFERRAL OF BASE FEE AND
INCENTIVE FEE

Notwithstanding any contradictory
provisions in the Statuts, the Management Company and the Operating Company
agree that in the event that at the end of any Period, the Group’s cash was
insufficient to pay the Debt Service in full as well as the Base Fee and
Incentive Fee for that Period, the Operating Company will defer payment of
Incentive Fee, and if such deferral is insufficient, payment of Base Fee which
would be necessary to allow payment in full of Debt Service (or if the Group’s
cash at the end of such Period is less than Debt Service, that part of the Debt
Service which the available cash will cover) and the Operating Company will not
be considered to have failed to comply with any obligation to the Management
Company by reason of the deferral of the Incentive Fee and Base Fee pursuant to
this Clause.  The portion of Incentive
Fee and Base Fee so deferred will accumulate and be paid by the Operating
Company to the Management Company at the end of the First Period at the end of
which the Group’s cash is sufficient for this purpose to the extent of
available cash after payment in full of all Debt Service in respect of Periods
expired after that date.  No interest
will accrue on the portion of Incentive fee so deferred.  Interest will only accrue on 33 1/3% of Base
Fee so deferred.  Any portion of
Incentive Fee and Base Fee deferred and remaining unpaid will only constitute
an unsecured debt of the Operating Company.

 

4.             CLAWBACK

Notwithstanding any
contradictory provision in the Statuts, the
Management Company and the Operating Company agree that in the event of any
amount of interest or principal due on the Phase IA Credit Facility Agreement,
the CDC Agreement Relating to the Granting of Ordinary Loans, the Phase IB
Credit Facility Agreement or the Phase IB Advances Agreement not being paid on
its due date, the Management Company will immediately suspend payment of any
amount due in respect of management fees and will pay to the Operating Company
an amount equal to one half of any Base Fee paid to it in respect of the
preceding Financial Year.  Such amount
shall be applied first in settlement of the unpaid amount and will be a debt
due and payable as soon as the Group’s cash is sufficient for such purpose, to
the extent of cash available after payment in full of all Debt Service falling
due up to such date.  Interest will only
accrue on 33 1/3% of such debt.

 

5.             GENERAL PROVISIONS

 

(A)          In the event of the
Completion of Share Capital Increase or the Contribution not taking place by 31
March, 2005 and if, at the end of the consultation period provided for in
paragraph (a) of clause 7.7 (Termination) of
the Memorandum of Agreement, certain provisions of the Memorandum of Agreement
were terminated in accordance with paragraph (b) of such clause 7.7 (Termination), the Agreement will automatically cease to have
effect.  The termination of this
Agreement will take effect on the date on which the termination of the
Memorandum of Agreement takes effect.

 

 

(B)          This Agreement will prevail
over the agreement dated 10 August 1994 between the parties to this
Agreement until 31 March 2005.  With
effect from such date, unless this Agreement is terminated as provided in
paragraph (A) above, the agreement of 10 August 1994 will cease to have
effect.

 

(C)          Headings: The headings to
clauses of this Agreement are not to be taken into account in interpreting its
provisions.

 

(D)          Rights and limited recourse:
Except as otherwise provided in any letter or instrument signed by the
Management Company and the Operating Company and expressly referring to this
Agreement, no provision of this Agreement will grant to any third party or
create in favour of any third party any right or recourse whatsoever which
would not have existed in the absence of this Agreement.

 

(E)           Governing law: This
agreement is governed by French law and shall be interpreted in accordance
therewith.

 

(F)           Jurisdiction: Any dispute
which may arise in respect of this Agreement will be submitted to the exclusive
jurisdiction of the Paris commercial court.

 

 

	
  Made in Paris, on [•] 2004

  
	
   

  
	
   

  
	
   

  	
   

  
	
  EURO
  DISNEY S.A.S.

  
	
   

  
	
   

  
	
  EURO DISNEY S.A.S.

  
	
  in its capacity as manager of EURO DISNEY
  ASSOCIES S.C.A.

  
	
  byExhibit 4.9

 

Disney Enterprises, Inc.

 

 

October 1,
2004

 

 

	
  TO:

  	
  Euro Disney SCA

  
	
   

  	
   

  
	
  FROM:

  	
  Disney
  Enterprises, Inc.

  

 

 

Ladies
and Gentlemen:

 

We refer
to (1) the Standby Revolving Credit Agreement (the “Standby Credit”) dated August 5,
1994 between Euro Disney SCA and Disney Enterprises, Inc. (formerly The Walt
Disney Company) and (ii) the Memorandum of Agreement dated June 8, 2004
among Euro Disney, Euro Disneyland SNC, EDL Hôtels SCA, the Hotel SNCs (as defined therein), The Walt
Disney Company (“TWDC”), Caisse des Dépôts et Consignations, the Lenders (as defined therein), BNP Paribas, Calyon
and the Steering Committee, as amended on September 27, 2004 (the “Memorandum
of Agreement”), and more particularly its Article 7.1.1 (as amended).

 

Effective
on and as of the date hereof, and subject only to the condition subsequent set
forth below, we hereby discharge Euro Disney SCA of it obligation to repay to
us a portion, equal to the amount of € 10 million, of the principal currently
outstanding under the Standby Credit (such € 10 million portion being
hereinafter referred to as the “Discharged Amount”) and hereby waive all claims
with respect to our rights to enforce the repayment of such Discharged Amount.

 

The
foregoing discharge of the Discharged Amount and waiver of rights of repayment
with respect thereto are subject to the condition subsequent that all
transactions, documents, contracts and amendments contemplated by the
Memorandum of Agreement will have been unconditionally and irrevocably
completed, closed and executed and become unconditionally and irrevocably
effective no later than March 31, 2005, unless otherwise agreed in writing
by us by no later than April 30, 2005.

 

In the event that the
condition referred to in the preceding paragraph is not satisfied, the
foregoing discharge and waiver will automatically terminate and be of no
further force or effect on the fifth Business Day following April 30, 2005
(such day being the “Early Termination Date”) with no notice or other action
required on our part or on the part of any other person or entity, and on the
Early Termination Date the Discharged Amount will be reinstated in full and
will become immediately due and payable in full to us on such date, together
with interest calculated as provided by the Standby Credit from (and including)
the date hereof to (but excluding) the Early Termination Date. For purposes
hereof, a “Business Day” means any day (other than a Saturday or a Sunday) on
which banks are open for business in Los Angeles and Paris.

 

This letter shall
he governed by, and interpreted iii accordance with, the laws of the State of
New York without reference to the choice of law doctrine. Any disputes arising
from this letter shall be submitted to the exclusive jurisdiction of the courts
of the State of New York or of the United States District Court for the
Southern District of New York.

 

	
   

  	
  Very
  truly yours,

  
	
   

  	
   

  
	
   

  	
  Disney
  Enterprises, Inc.

  
	
   

  	
  By:
  Joseph M. Santaniello

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