Document:

Exhibit 4.19

 

Compensation
letter

 

[Euro
Disney Associés S.C.A. Letterhead]

 

 

CALYON

in the name and for the account of the partners
of Euro Disneyland S.N.C.

 

 

Chessy,
December 1, 2004

 

 

Ladies and Gentlemen:

 

 

For purposes of this letter, the defined terms
and expressions, identified by capital letters, will have the meanings
attributed to them in the Common Agreement of August 10, 1994, as
modified, inter alia, by the
Amendment and Restatement Agreement to the Common Agreement dated December 1,
2004, the Covenants, or any of the Bank Debt Agreements.

 

The purpose of the Phase IA Advances
Amendment and Restatement Agreement and of the amendments made to the CDC Loan
Agreements on December 1, 2004 was, inter
alia, to reshape the depreciation profiles for the Phase IA Credit
Facility Agreement and the CDC Loan Agreements. 
Based on the corporate tax rate currently in force, this reshaping would
have the effect of changing the fiscal profile of Euro Disneyland S.N.C. and,
consequently, the scheduled repayment calendar for the Phase IA Partners
Advances Agreement. Although Euro Disney Associés S.C.A. plans to exercise its
option to purchase the assets that are the subject of the Crédit-Bail Agreement by December 31,
2016 at the latest, no formal assurance in this respect can be given by Euro
Disney Associés S.C.A.

 

For this reason, in order to avoid changing
the IA Partners’ position as a result of the renegotiation of the Phase IA
Credit Agreement and the CDC Loan Agreements, Euro Disney Associés S.C.A.
undertakes by way of this letter, if it has not announced its exercise of its
option under the Crédit-Bail
Agreement by June 30, 2016 at the latest with a view to completing the
sale by December 31, 2016 at the latest, to pay to the IA Partners a lump
sum of:

 

i.                  15% of the balance of the Phase IA Partners Advances still owed by Euro
Disneyland S.N.C. on December 31, 2016, and

 

 

ii.               an
amount equal to the product of (a) the total amount still owed by Euro
Disneyland S.N.C. on December 31, 2016 under the CDC Loan Agreements and
the loan agreement entered into between Euro Disney S.C.A. and Euro Disneyland
S.N.C. dated August 10, 1994 (as amended on September 30, 1999) and
(b) the corporate tax rate then in force or the rate of any tax substituted for
the corporate tax.

 

This lump sum will be paid to the Agent for
the IA Partners, for the account of the IA Partners, on January 31, 2017
at the latest.  The Agent will allocate
the lump sum among the IA Partners pro-rata based on their participation in the
Phase IA Partners Advances Agreement.

 

It is specified that the payment of this lump
sum will not in any way diminish the amount of any sums due under the Crédit-Bail Agreement.

 

This letter will take effect on the Share
Capital Increase Completion Date, as from which it will be substituted for the September 6,
1999 letter from Euro Disney S.C.A. to Crédit Agricole Indosuez on the same
topic.

 

The French language version of this letter
will have priority over any versions in any other language.

 

Sincerely,

 

 

	
  The gérant, Euro Disney S.A.S.

  
	
   

  
	
   

  
	
   

  	
   

  
	
  by: Jeff Speed

  
	
  Financial DirectorExhibit 4.20

 

	
  TO:

  	
  BNP Paribas

  
	
   

  	
  E.C.E.P.

  
	
   

  	
  Project Finance

  
	
   

  	
  37, place du Marché Saint Honoré

  
	
   

  	
  75001 Paris

  
	
   

  	
   

  
	
  TO:

  	
  CALYON

  
	
   

  	
  9, quai du Président Paul Doumer

  
	
   

  	
  92920 Paris La Défense Cédex

  
	
   

  	
   

  
	
  TO:

  	
  Caisse des Dépôts et Consignations

  
	
   

  	
  72, avenue Pierre Mendès-France

  
	
   

  	
  75013 Paris

  
	
   

  	
   

  
	
  FROM:

  	
  The Walt
  Disney Company (Netherlands) B.V

  

 

December 1, 2004

Dear Sirs:

 

We enclose a copy of a letter sent by The Walt Disney Company
(Netherlands) B.V. to Euro Disney S.C.A. (scheduled hereto).  Terms defined in the letter 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 Phase 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.

 

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 Phase 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 and shall be construed in
accordance with French law.   Any dispute
relating thereto will be referred to the competent court within the resort of
the Paris Court of Appeal.

 

This letter is furnished in the English language and in the French
language by us to you in connection with the financial restructuring of the
Euro Disney project and is solely for the benefit of the Creditors and their
respective assignees.  In the event of
any discrepancy between the English version and the French version, the French
version will prevail.

 

Very truly
yours,

 

 

[SIGNATURES BEGIN ON NEXT PAGE]

 

2

 

	
   

  	
   

  	
   

  
	
   

  	
  The Walt
  Disney Company (Netherlands) B.V.

  
	
   

  	
  by:

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Signed by
  way of agreement by Disney Enterprises, Inc.

  
	
   

  	
  by: Joseph
  M. Santaniello

  

 

 

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 Phase
IA Partners party to the Phase IA Partners Advances Agreement

 

 

	
   

  	
   

  	
   

  
	
   

  	
  CALYON in
  its capacity as Agent

  	
   

  
	
   

  	
  by:

  

 

 

Accepted

 

 

	
   

  	
   

  	
   

  
	
   

  	
  Caisse des Dépôts et Consignations

  	
   

  
	
   

  	
  by:

  

 

 

	
  TO:

  	
  Euro
  Disney S.C.A.

  
	
   

  	
  Immeubles
  Administratifs

  
	
   

  	
  Route
  Nationale 34

  
	
   

  	
  77700 Chessy

  
	
   

  	
   

  
	
  FROM:

  	
  The Walt Disney Company (Netherlands) B.V.

  
	
   

  	
   

  
	
  Re:

  	
  Royalties

  	
  December
  1, 2004

  

 

Dear Sirs,

 

We refer to:

 

(i)                                     the
Licence Agreement (as modified, the “Licence Agreement “) dated as of February
28, 1989 among Disney Enterprises, Inc. (formerly known as The Walt Disney
Company), The Walt Disney Company (Netherlands) B.V. (the “Licensor”) as
temporary successor thereof and Euro Disney S.C.A. (the “Licensee”);

 

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

 

(iii)                               the
letter dated December 1, 2004 from Euro Disney S.A.S. to you relating to
Management Fees (the “Letter”).

 

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 Royalties on an annual rather than on a quarterly basis in respect
of each of your Financial Years 2005 to 2014 inclusive (it being understood
that other provisions of Section 6.1 of the Licence Agreement, including
provisions regarding the determination of the amount of the Royalties which
will continue to be determined on a quarterly basis, will continue to be
applied in accordance with their current terms) such Royalties 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.

 

4

 

(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, per Financial Year (after deducting any
deferred Management Fee in respect of such Financial Year in accordance with
paragraph (B) of the Letter), the amount so deferred constituting Subordinated
Long Term Debt bearing interest at an annual rate of 12 months EURIBOR
capitalized 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 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 capitalized 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 a
promissory note 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. as Licensee upon realisation of the Contribution in
accordance with the Contribution Agreement. In addition, all rights and
obligations of the Licensor pursuant to this letter will be deemed transferred
to, and inure to the benefit of, any successors to the Licensor under the
Licence 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.

 

5

 

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

 

Very truly yours,

 

 

[SIGNATURES BEGIN ON NEXT PAGE]

 

6

 

	
   

  	
   

  	
   

  
	
   

  	
  The Walt Disney Company (Netherlands) B.V.

  
	
   

  	
  By:

  

 

 

	
   

  	
   

  	
   

  
	
   

  	
  Signed by way of agreement by Disney
  Enterprises, Inc.

  
	
   

  	
  By: Joseph M. Santaniello

  

 

 

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

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