Document:

Exhibit
4.6

 

March 28, 2003

 

FROM:                                                         The
Walt Disney Company (Netherlands) B.V.

TO:                                                                            Euro
Disney SCA

Re:                                                                               License
Agreement

 

 

Ladies and Gentlemen:

 

Reference is
made to the License Agreement (the “License Agreement”) dated as of February
28, 1989, as amended by a First Amendment dated as of January 1, 1991, a Second
Amendment dated as of March 1, 1993, a Third Amendment dated as of June 10,
1994, entered into among THE WALT DISNEY COMPANY, a Delaware corporation
(“TWDC”), THE WALT DISNEY COMPANY (NETHERLANDS) B.V. a Dutch corporation (the
“Licensor”) as temporary successor to TWDC and EURO DISNEY S.C.A., a French société en
commandite par actions (the “Licensee”).

 

We understand
that the Licensee currently operates under special financial constraints
resulting from the Waiver Request (as defined below).  We understand further that Euro Disney S.A. is prepared to assist
the Licensee to meet its obligations under the Waiver Request by waiving (the
“Base Management Fee Waiver”) certain of its rights in connection with of the
amount of the Rémunération de Base (“Base Management Fee”), as defined in
Article 4.2(a) of the Licensee’s by-laws, payable to Euro Disney S.A.

 

Based on the
foregoing, we are prepared to also assist the Licensee to meet its obligations
under the Waiver Request by waiving certain of our rights in connection with
the royalties payable under the License Agreement.

 

* * *

 

As used herein
the following terms shall have the respective meanings indicated below:

 

“Common
Agreement” means the Common Agreement dated August 10, 1994 among the Licensee
and all other borrowers under the Financing Contracts (as defined therein), and
lenders under the Financing Contracts.

 

“Third
Amendment” means the Third Amendment to the License Agreement referred to in
the first paragraph of the preamble to this letter.

 

“Waiver
Request” means the Waiver Request dated September 30, 2002 executed by the
Licensee in support of a request for waiver from certain obligations under the
Common Agreement.

 

105

 

(a) Royalties Scheduled to be
Paid for the Remainder of the Fiscal Year Ending on September 30, 2003 and the
Fiscal Year Ending on September 30, 2004. 
Notwithstanding Sections 6.1 and 6.3 of the License Agreement, we hereby
unconditionally and irrevocably agree to receive payment of royalties due under
the License Agreement in respect of (x) the last three quarters of the
Licensee’s fiscal year ending on September 30, 2003 (i.e., the
period from January 1, 2003 through September 30, 2003, inclusive) and (y) the
Licensee’s full fiscal year ending on September 30, 2004, on an annual rather
than quarterly basis; it being understood that, subject to paragraph (b) below,
other provisions of Section 6.1 of the License Agreement, including provisions
regarding the determination of the amount of the royalties (which shall
continue to be determined on a quarterly basis) shall be applied in accordance
with their terms; provided that royalties for such fiscal years shall be
payable no later than the fifth business day following delivery by the
statutory auditors of Euro Disney of their reports with respect to the annual
financial statements of Euro Disney; and provided, further, that other
provisions of Section 6.3 of the License Agreement, including provisions
regarding value added taxes and the obligation of Licensee to quarterly and
annually submit to Licensor certain statements of account shall be applied in
accordance with their terms.

 

(b) Waiver of Royalties
Scheduled to be Paid for the Fiscal Year Ending on September 30, 2003.  Notwithstanding Section 6.1 of the License
Agreement, and provided that, together with the annual statement contemplated
by Section 6.3 of the License Agreement, you submit to us an annual statement
of account showing the amount of royalties originally scheduled to be paid for
the last three quarters of Licensee’s fiscal year ending on September 30, 2003,
calculated in accordance with Section 6.1 of the License Agreement, and to the
extent applicable, the modified amount of such royalties payable as a result of
the provisions of this paragraph (b), we hereby unconditionally and irrevocably
waive (subject only to the provisions of paragraph (c) below) our right to
receive royalties originally scheduled to be paid for the last three quarters
of such fiscal year, up to an amount (the “Waived Amount”) calculated as
follows:

 

Waived Amount = Adjustment  x                                     Full License
Agreement Amount                                  

                                                                            Full License Agreement Amount  + 
Full Management Fee Amount

 

For purposes
of the foregoing:

 

“Adjustment” means such reduction, if any, in Consolidated Operating
Costs (as defined in Annex XI to the Common Agreement) as is necessary (to the
extent possible as a result of the Base Management Fee Waiver and the waiver
contemplated hereby, taken in the aggregate) to cause the Cumulative Gross
Operating Income Ratio (as defined below) to be in compliance with the
Licensee’s undertaking pursuant to the first sentence of Section 4.2 of the
Waiver Request with respect to the fiscal year ending on September 30, 2003;

 

“Full License Agreement Amount” means the amount provided for in
Section 6.1 of the License Agreement (irrespective of this letter) with respect
to the fiscal year ending on September 30, 2003;

 

106

 

“Full Management Fee Amount” means the amount of the Base Management
Fee provided for in Article 4.1(a) of the Licensee’s by-laws (irrespective of
the Base Management Fee Waiver) with respect to the fiscal year ending on
September 30, 2003; and

 

“Cumulative Gross Operating Income Ratio” has the meaning assigned to
it in Exhibit XI to the Common Agreement.

 

(c) Contingent Payment in
Future Years.  Subject to the
approval of the provisions of this paragraph (c) by the Supervisory Board of
the Licensee, should you elect to take advantage of the waiver contained in
paragraph (b) above, you shall pay to us (without interest) an amount or
amounts (if any) not exceeding in the aggregate the Waived Amount, to the
extent the EBITDA (as defined below) of the Licensee exceeds € 450 million for
any fiscal year ending on September 30 of the years 2004 through 2008.  Such amount or amounts shall be paid to us
no later than five business days following delivery by the statutory auditors
of Licensee of the reports with respect to the annual financial statements of
Licensee for such year or years.

 

For purposes of the foregoing, “EBITDA” shall mean Euro Disney’s income
before lease and net financial charges, excluding depreciation and
amortization, as stated in Euro Disney’s audited consolidated annual income
statement, prepared in accordance with accounting principles generally accepted
in France.

 

It is understood that the waivers set forth in paragraphs (a) and (b)
above are exceptional, are limited by their terms, and do not create any
obligation on our part to repay any royalties received to date or make any
other payment of any nature whatsoever, including in the event the Waived
Amount is insufficient to cause the Cumulative Gross Operating Income Ratio to
be in compliance with Euro Disney's undertaking pursuant to the first sentence
of Section 4.2 of the Waiver Request, or to waive any of our rights in respect
of the method of calculation or payment of royalties set forth in Sections 6.1
and 6.3 of the License Agreement except to the extent expressly set forth
herein.

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
  Very truly
  yours,

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  THE WALT
  DISNEY COMPANY

  (NETHERLANDS) B.V.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  By its
  Managing Director, 

  Disney Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Joe
  Santaniello

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Joe
  Santaniello

  

 

107Exhibit 4.7

 

[Letterhead of Euro Disney S.A.]

 

 

 

Euro Disney SCA

Immeubles Administratifs

Route Nationale 34

Chessy

March 28, 2003

 

Re:  Management Fee

 

Ladies and Gentlemen:

Reference is made to
Article IV of the by-laws (the “By-Laws”) of Euro Disney SCA (“Euro
Disney”) providing that, in our capacity as gérant of Euro Disney, we are entitled to
the payment of various fees.

We understand that by a
letter (the “Licensor’s Letter”) of even date relating to the License Agreement
dated as of February 28, 1989 (as previously amended) (the “License
Agreement”), The Walt Disney Company (Netherlands) B.V. has indicated that it
is prepared to assist Euro Disney to meet its obligations under the Waiver
Request (the “Waiver Request”) dated September 30, 2002, executed by Euro
Disney in support of a request for a waiver from certain obligations under the
Common Agreement (the “Common Agreement”) dated August 10, 1994 among Euro
Disney and all other borrowers under the Financing Contracts (as defined
therein) and the lenders under the Financing Contracts, and therefore has
decided on an exceptional basis to waive certain of its right in connection
with the License Agreement.

Based on the foregoing,
we are also prepared to assist Euro Disney to meet its obligations under the
Waiver Request by waiving certain of our rights in connection with the Rémunération
de Base (the “Base Management Fee”), as defined in Article 4.2(a) of
the By-Laws.

(1)           Notwithstanding Article 4.3 of the
By-Laws, we hereby unconditionally and irrevocably agree to receive payment of
the Base Management Fee originally scheduled to be paid in respect of (a) the
last three fiscal quarters of Euro Disney’s fiscal year ending on September 30,
2003 (i.e., the period from January 1, 2003 through
September 30, 2003, inclusive) and (b) Euro Disney’s full fiscal year
ending on September 30, 2004, on a annual rather than quarterly basis; provided
that such Base Management Fee shall be paid no later than 

 

108

 

the fifth business day following delivery by the
statutory auditors of Euro Disney of their reports with respect to the annual
financial statements of Euro Disney for the applicable fiscal year.

(2)           We hereby unconditionally and
irrevocably waive (subject only to the provisions of paragraph 3 below) our
right to receive the Base Management Fee in respect of the last three fiscal
quarters of Euro Disney’s fiscal year ending on September 30, 2003, up to an
amount (the “Waived Amount”) calculated as follows:

 

Waived Amount =Adjustment
x                                       Full
Base Management Fee Amount                                  

                                       Full Base Management Fee
Amount + Full License Agreement Amount

 

For purposes of the foregoing:

 

“Adjustment” means such reduction, if any, in
Consolidated Operating Costs (as defined in Annex XI to the Common Agreement)
as is necessary (to the extent possible as a result of the waivers contemplated
hereby and by the Licensor’s Letter, taken in the aggregate) to cause the
Cumulative Gross Operating Income Ratio (as defined below) to be in compliance
with your undertaking pursuant to the first sentence of Section 4.2 of the
Waiver Request with respect to the fiscal year ending on September 30, 2003;

 

“Full Base Management Fee Amount” means the amount of
the Base Management Fee provided for in Article 4.1(a) of the By-Laws
(irrespective of this letter) with respect to the fiscal year ending on
September 30, 2003;

 

“Full License Agreement Amount” means the amount
provided for in Section 6.1 of the License Agreement (irrespective of the
Licensor’s Letter) with respect to the fiscal year ending on September 30,
2003; and

 

“Cumulative Gross Operating Income Ratio” has the
meaning assigned to it in Exhibit XI to the Common Agreement.

 

(3)           Subject
to the approval of the provisions of this paragraph (3) by Euro Disney’s
Supervisory Board, should you elect to take advantage of the waiver contained
in paragraph (2) above, you shall pay to us (without interest) an amount or
amounts (if any) not exceeding in the aggregate the Waived Amount, to the
extent the EBITDA of Euro Disney (as defined below) exceeds € 450 million for
any fiscal year ending on September 30 of the years 2004 through 2008.  Such amount or amounts shall be paid to us
no later than five business days following the delivery by the statutory auditors
of their report with respect to the annual financial statements of Euro Disney
for such year or years.

 

For purposes hereof
“EBITDA” shall mean Euro Disney’s income before lease and net financial
charges, excluding depreciation and amortization, as stated in Euro Disney’s
audited consolidated annual income statement, prepared in accordance with
accounting principles generally accepted in France.

 

109

 

It is understood that the waivers set forth in paragraphs
(1) and (2) above are exceptional, are limited by their terms, and do not
create any obligation on our part to repay any Management Fees or to make any
other payment of any nature whatsoever, including in the event the Waived
Amount is insufficient to cause the Cumulative Gross Operating Income Ratio to
be in compliance with Euro Disney's undertaking pursuant to the first sentence
of Section 4.2 of the Waiver Request, or to waive any of our rights in respect
of the method of calculation or payment of the Base Management Fee.

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Very truly
  yours,

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Euro Disney S.A.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  /s/ James A.
  Rasulo

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  by: James A.
  Rasulo

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

110

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