Document:

Exhibit 4.27

 

 

Euro Disney Associés S.C.A.

Immeubles Administratifs

Route Nationale 34

77700 Chessy

Fao : Monsieur Jeffrey R. Speed

 

Paris, 1 December 2004

 

Purpose : Signing of the Tranche
E loan agreement.

 

Dear Sir,

 

We are referring to the Tranche
E loan agreement a model of which is attached to this letter (the “Agreement E”).

 

The terms and expressions
starting with a capital letter and not defined in this letter will have the
meaning given to them in the Agreement E.

 

Immediately before or simultaneously
at the Realisation of Capital Increase, CDC undertakes to execute the Agreement
E with Euro Disney Associés S.C.A.

 

We would appreciate if you could
return to us a copy of this letter countersigned by Euro Disney Associés S.C.A.

 

Best regards.

 

For CDC :

 

 

By : Jean François de Caffarelli

 

By countersigning this letter, Euro Disney
Associés S.C.A. undertakes to enter into Agreement E with CDC immediately
before or simultaneously at  the Realisation of Capital Increase.

 

For Euro Disney Associés S.C.A.

 

Made in Paris, on the 1st
of December 2004

 

 

By : Jeffrey R.
Speed

 

 

ANNEX

 

TRANCHE E LOAN AGREEMENT’S MODEL

 

LOAN AGREEMENT

 

 

TRANCHE E

 

 

DATED [•]

 

BETWEEN

 

 

EURO DISNEY ASSOCIES S.C.A.

 

 

as Borrower

 

 

AND

 

 

LA CAISSE DES DÉPÔTS ET CONSIGNATIONS.

 

 

as Lender

 

 

 

LAW FIRM AT THE COURT OF PARIS

26, cours Albert 1er 75008 Paris
Tél. +33 (0)1 40 75 60 00 Fax +33 (0)1 43 59 37 79

E-mail info@gide.com www.gide.com

 

2

 

BETWEEN THE UNDERSIGNED

 

1.                            EURO DISNEY ASSOCIES S.C.A., a société en
commandite par actions [French limited partnership] with a capital
of [•], whose
registered office is at Immeubles Administratifs, Route Nationale 34, 77700
Chessy, entered in the Meaux Trade Register under number 334 173 887,
represented by [•], duly authorised for the purpose,

 

hereinafter “Euro Disney Associés”
or the “Borrower”

 

2.                            LA CAISSE DES DÉPÔTS ET
CONSIGNATIONS, an établissement public à statut spécial [special status public
corporation] constituted pursuant to the law of 28 April 1816, codified under
article L. 518-7 et seq. of the monetary and
financial Code, whose main office is situated at 56, rue de Lille, 75007 Paris,
represented by [•], duly authorised for the purpose,

 

hereinafter “CDC” or the “Lender”.

 

 

TABLE OF CONTENTS

 

	
  ARTICLE
  1.

  	
  DEFINITIONS

  
	
  ARTICLE
  2.

  	
  AMOUNT
  OF THE LOAN

  
	
  ARTICLE
  3.

  	
  PAYMENT
  OF INTEREST – REPAYMENT OF PRINCIPAL

  
	
  ARTICLE
  4.

  	
  PREPAYMENT
  AT THE OPTION OF THE BORROWER

  
	
  ARTICLE 5.

  	
  REPRESENTATIONS AND WARRANTIES

  
	
  ARTICLE 6.

  	
  COVENANTS

  
	
  ARTICLE 7.

  	
  SUBORDINATION

  
	
  ARTICLE
  8.

  	
  MORTGAGE
  ALLOCATION

  
	
  ARTICLE
  9.

  	
  LENDERS’
  MEETING

  
	
  ARTICLE
  10.

  	
  EVENTS
  OF DEFAULT

  
	
  ARTICLE 11.

  	
  CONFIDENTIALITY

  
	
  ARTICLE
  12.

  	
  MISCELLANEOUS
  PROVISIONS

  

 

LIST OF ANNEXES

 

	
  ANNEX I

  	
  Subordination Agreement

  
	
   

  	
   

  
	
  ANNEX II

  	
  Repayment and interest payment schedule of Tranche E

  
	
   

  	
   

  
	
  ANNEX III

  	
  Form of agreement containing the terms and conditions applicable to
  the Long Term Subordinated Debt

  

 

4

 

WHEREAS:

 

(A)                     In accordance with the stipulations
of the Agreement entitled “Agreement for the Creation and Operation of Euro
Disneyland in France” entered into with the French Government on 24 March 1987,
as amended (the “Master Agreement”), Euro Disney
S.C.A. and Euro Disneyland S.N.C. (referred to jointly as the “IA Borrowers”) were set up in order to implement and operate
the “Euro Disneyland” project involving the construction of a theme park
situated in Marne-la-Vallée (“Disneyland Park”)
and its peripheral development (the “Project”).

 

(B)                     In connection with the
implementation of phase I of the Project, CDC granted the IA Borrowers loans
including ordinary loans and participating loans in accordance with the clauses
and conditions of the Master Agreement (and notably Article 18 thereof and
annex 18 thereof as modified by the supplemental agreements dated 30 December
1994 and 1 December 2004) and the following agreements:

 

(i)                                     an agreement on the granting of
participating loans entered into on 17 May 1989 as amended by supplemental
agreements dated 10 August 1994, 30 September 1999 and amended and restated by
an agreement dated 1 December 2004 respectively, (the “Agreement on
the Granting of Participating Loans”); and

 

(ii)                                  an agreement on the granting of ordinary
loans entered into on 17 May 1989 as modified by supplemental agreements dated
10 August 1994, 30 September 1999 and amended and restated by an agreement
dated 1 December 2004 respectively, (the “Agreement on the Granting
of Ordinary Loans”);

 

The Agreement
on the Granting of Participating Loans and the Agreement on the Granting of
Ordinary Loans are hereinafter collectively referred to as the “Phase I CDC Loans”.

 

(C)                      Pursuant to an agreement dated 10
August 1994, a common agreement was entered into among the banks party to the
Phase IA Loan Agreement, CDC, the partners of Euro Disneyland S.N.C. party to
the Phase IA Partners Advances Agreement, the banks party to the Phase IB Loan
Agreement, the partners of the Hotel SNCs and the lenders party to the Phase IB
Advances Agreement on the one hand (the “Creditors”),
BNP Paribas and Calyon as agents on the
other hand and Euro Disney S.C.A., Euro Disneyland S.N.C. and other companies
of the Euro Disney Group (the “Common Agreement”).

 

The various
provisions of the common agreement include a certain number of Common
Undertakings signed by Euro Disney S.C.A., Euro Disneyland S.N.C. and other
companies of the Euro Disney Group vis-à-vis the Creditors. The Common
Agreement dated 10 August 1994 has been updated in a new agreement dated today
which replaces the initial agreement (the “Amended and Restated
Common Agreement”).

 

(D)                      As part of the development of the
Project and in accordance with the terms of the Agreement, Euro Disney S.C.A.
examined and decided upon the construction of a second theme park denominated “Park
Walt Disney Studios” adjacent to the Disneyland Park (the “Second Park”)
and wished to put in place the resources to provide funding for the
construction of this Second Park.

 

5

 

To this end,
CDC agreed to grant the Borrower financing (the “Financing”)
made up of four loans (the “Second Park CDC Loans”) as
described below:

 

•                  a first loan representing 20% of the
Total Principal Amount of the Financing (“Tranche A”) was
granted to the Borrower under the terms of an agreement dated 30 September 1999
and reiterated in a notarized act dated 21 January 2004 and made by Mr.
Bertrand Lacourte, Notary (the “Agreement A”);

 

•                  a second loan representing 20% of
the Total Principal Amount of the Financing (Tranche B”) was
granted to the Borrower under the terms of an agreement dated 30 September 1999
and reiterated in a notarized act dated 21 January 2004 and made by Mr.
Bertrand Lacourte, Notary;

 

•                  a third loan representing 30% of the
Total Principal Amount of the Financing (“Tranche C”) was
granted to the Borrower under the terms of an agreement dated 30 September 1999
as modified on 18 November 2002 and reiterated in a notarized act dated 21
January 2004 and made by Mr. Bertrand Lacourte, Notary;

 

•                  a fourth loan representing 30% of
the Total Principal Amount of the Financing (“Tranche D”) was
granted to the Borrower under the terms of an agreement dated 30 September 1999
as modified on 18 November 2002 and reiterated in a notarized act dated 21
January 2004 and made by Mr. Bertrand Lacourte, Notary;

 

the four
aforementioned agreements shall be referred to hereinafter as the “Second Park CDC Loans Agreements.”

 

It being
specified that certain changes have been brought to the Second Park CDC Loans
Agreements pursuant to an amendment agreement dated as of 18 November 2002 (the
“Amendments”).

 

(E)                       As a result of financial
difficulties experienced by the Euro Disney Group, Euro Disney S.C.A, Euro
Disneyland S.N.C., EDL Hôtels S.C.A., the Hotel SNCs, The Walt Disney Company,
CDC along with the banks party to the Phase IA Loan Agreement, the banks party
to the Phase IB Loan Agreement and the Phase IA Partners and the Phase IB
Lenders, as represented by their respective agents BNP Paribas and Calyon, came
together with a view to drawing up, on 8 June 2004, a memorandum of agreement
for the purpose of agreeing on the necessary measures for restoring its
financial balance the terms of which had been approved by the steering
committee then amended pursuant to a letter dated 20 September 2004 addressed
by Euro Disney S.C.A. to CDC as well as the Phase IA Banks, the Phase IB Banks,
the Phase IA Partners and the Phase IB Lenders, said memorandum as amended by
the aforementioned letter having been agreed upon by all parties pursuant to a
letter dated 30 September 2004 (the “Memorandum of Agreement”).

 

6

 

(F)                       The main purpose of the Memorandum
of Agreement in relation to the Second Park CDC Loans is to provide for:

 

(i)                  new terms for the payment of
interest owed by the Borrower under the Second Park CDC Loans on 31 December
2004;

 

(ii)               the granting to the Borrower of a
new loan called “Tranche E” made
up of interest owed by the Borrower to CDC under the Second Park CDC Loans for
the years 2001 to 2003, the payment of which was deferred pursuant to paragraph
11.02 (ii) of each of the Second Park CDC Loans, plus accrued interest at the
interest rate specified under Article 11.04 of each of the Second Park CDC
Loans until the Share Capital Increase Date;

 

(iii)            the transfer by the Euro Disney
S.C.A. to Euro Disney Associés of the Second Park CDC Loans on the date of the
transfer agreed between Euro Disney S.C.A. and Euro Disney Associés (subject to
the rules governing demergers and without entailing a squeeze out) for all or
almost all the assets and liabilities of Euro Disney S.C.A. to Euro Disney
Associés under the contribution agreement entered into between Euro Disney
S.C.A. and Euro Disney Associés on 30 September 2004, as amended on 8 November
2004 (the “Transfer”);

 

(iv)           a release of debt by CDC in an
amount of €2,500,000 per annum under the interest due on the Second Park CDC
Loans for the financial years 2005 to 2012; and

 

(i)                  a mechanism for the deferred payment
of the interest owed to CDC under the Second Park CDC Loans for financial years
2005 to 2014 based on whether or not the Reference Performance Indicator is
achieved.

 

(G)                     As a consequence of the execution of
the Memorandum Agreement and for the purpose of implementing it, the Second
Park CDC Loans Agreement will have to be amended;  in addition, the parties hereto wish to
dispose of a version of the Second Park CDC Loans Agreement inclusive of the
Amendments, the creation of a Tranche E and that deletes from its text any
historic provision that has become obsolete, that updates certain obsolete
references, that clarifies the drafting of certain provisions, that reflects
the consequences of the Transfer and that harmonizes certain terms of the
Second Park CDC Loans Agreement with the rest of the documentation relating to
the Project; to this end, Euro Disney and CDC entered into four loan agreements
dated as of 1 December 2004, .relating to Tranche A, Tranche B, Tranche C and Tranche
D, amending and restating the Second Park CDC Loans Agreements.

 

(H)                     Pursuant to the completion of the
Transfer, Euro Disney Associés and CDC wish to enter into this agreement (the “Agreement E”) which agreement sets forth the terms and
conditions applicable to the Tranche E.

 

7

 

NOW THEREFORE THE PARTIES AGREE
AS FOLLOWS

 

1.                                      DEFINITIONS

 

The words and expressions
defined below will have the following meaning in this agreement:

 

“Agents”
collectively means CDC, BNP Paribas as agent for the Phase IA Banks, Calyon as
agent for the Phase IB Banks, agent for the Phase IB Lenders and agent for the
Phase IA Partners or any other establishment which may succeed them in this
capacity.

 

“Agreement
E” means this agreement.

 

“Agreement on
the Granting of Ordinary Loans” has the meaning given to it in the
introduction to this agreement.

 

“Agreement on
the Granting of Participating Loans” has the meaning given to it in
the introduction to this agreement.

 

“Amended and
Restated Common Agreement” has the meaning given to it in the
introduction of this agreement.

 

“Amended and
Restated Second Park CDC Loan Agreements” means the Second Park CDC
Loan Agreements, including Agreement A, governing the Tranche A, the Tranche B,
the Tranche C and the Tranche D pursuant to the terms to four agreements dated
1 December 2004 between Euro Disney S.C.A. and the CDC pursuant to the terms of
Agreement E governing the Tranche E, as amended and restated pursuant to
paragraph (G) of the introduction to this agreement.

 

“Annex”
means any annex to this agreement.

 

“Annual Payment Date” means the fifth Working Day
following the date on which the Agents received the Performance Indicator
Report verified and confirmed or, as applicable, validated by the Expert, in
accordance with the provisions of sub-annex 2 (Performance
Indicator Determination) of the Common Undertakings and not before
the 31 December following the end of the Financial Year in question ; it being
however understood that if an Annual Payment Date falls on a non-Working Day,
the Annual Payment Date will be deferred until the first Working Day
thereafter.

 

“Article”
means any article of this agreement.

 

“CDC Ordinary
Loan” means the loan granted by CDC to the Borrower under the Agreement
on the Granting of Ordinary Loans.

 

“Common
Agreement” has the meaning given to it in the introduction of this
agreement.

 

“Consolidated
Equity Capital” means Euro Disney S.C.A.’s and its subsidiaries’
consolidated equity capital on the basis of the most recent consolidated
balance sheet in accordance with the accounting standards in force in France
used by Euro Disney S.C.A. on the Date of Signing.

 

8

 

“Date of
Signing” means the date of signing of this agreement, namely 1
December 2004.

 

“Debts”
means the sum of the principal amounts still owed by Euro Disney S.C.A. and its
present and future subsidiaries as well as by Euro Disneyland S.N.C. and the
Hotel SNCs on the date an Envisaged Debt is made available in respect of:

 

(i)                       Senior Funding,

 

(ii)                    Second Park CDC Loans,

 

(iii)                 debts incurred under article 4 (Other Indebtedness) of the Common Undertakings,

 

(iv)                debts previously incurred in
accordance with the terms defined in Article 10.1 (g), and

 

(v)                   all other securities representing a
debt, plus the principal amount of this Envisaged Debt.

 

“Disneyland
Park” has the meaning given to it in the introduction to this
agreement.

 

“Encumbered
Properties” has the meaning given to it in Article 8 (Mortgage Allocation).

 

“Envisaged
Debt” has the meaning given to it in Article 10.1 (Definition of Events of Default).

 

“EURIBOR”
means, in relation to any Interest Period under Tranche A, the euro interbank
rate expressed in the form of an annual rate as displayed on the TELERATE
screen page 248 by the European Banking Federation, at around 11 a.m. (Brussels
time) two (2) Target Days before the first day of said Interest Period (or, if
this date of calculation is not a Working Day, the first Working Day which is
at least two (2) Target Days before the first day of this Interest Period) on
which interbank deposits in euro are offered by leading banks within the euro
zone for a period of time equal to said Interest Period.

 

If this rate is not displayed on
the TELERATE screen or the EURIBOR page of Reuters, it will be replaced by a
rate calculated by CDC, which equals the arithmetic average (rounded up, where
necessary, to the next sixteenth of a percent) of the annual rates quoted at
the request of CDC by the Reference Banks at around 15h00 (Brussels time) two
(2) Target Days before the first day of the Interest Period in question (or if
this date of calculation is not a Working Day, the first Working Day which is
at least two (2) Target Days before the first day of this Interest Period) on
which deposits in euro are offered by the Reference Banks to leading banks in
the euro zone interbank market for a period of time equal to the Interest
Period in question and starting on the first day of this Interest Period and
for an amount comparable to the amount to be financed, it being specified that
if a Reference Bank does not quote rates at the request of CDC, this rate will
be determined by CDC under the conditions laid down in this paragraph on the
basis of the rates quoted by at least two other Reference Banks. If no
Reference Bank quotes rates at the request of CDC, or if just one Reference
Bank does so, the interest rate to be applied for the Interest Period in
question will be CDC’s cost of refinancing on the interbank market for the sums
for which the EURIBOR is applied on the date at which the interest rate is
determined..

 

9

 

“Euro Disney
S.C.A.” means Euro Disney S.C.A., a société en
commandite par actions [French limited partnership] with a share
capital of  €[•], which registered office is
at Immeubles Administratifs, Route Nationale 34, 77700 Chessy, entered in the
Meaux Trade Register under number 397 471 822.

 

“Euro Disney
Group” means Euro Disney S.C.A. and its present and future
affiliates.

 

“Event of Default”
has the meaning given to it in Article 10.1 (Definition
of Events of Default).

 

“Expert”
has the meaning given to it in the Amended and Restated Common Agreement.

 

“Financial
Year” means the period N starting on 1 October of the calendar year
N-1 and ending on 30 September of calendar year N. For example, the 2004
Financial Year starts on 1 October 2003 and ends on 30 September 2004.

 

“Financing”
has the meaning given to it in the introduction to this agreement.

 

“Financing
Agreements” means the following agreements:

 

(i)                          Phase IA Credit Agreement;

 

(ii)                       Agreement on the Granting of
Ordinary Loans;

 

(iii)                    Agreement on the Granting of
Participating Loans;

 

(iv)                   Phase IA Partners Advances
Agreement;

 

(v)                      Phase IB Credit Agreement; and

 

(vi)                   Phase IB Advances Agreement.

 

“Free Cash
Flow” means the sum of:

 

(i)                           all available or immediately
realisable assets held by Euro Disney Associés or any subsidiary controlled by
it within the meaning of Article L.233–3 of the Commercial Code, and

 

(ii)                        any amount advanced in any form,
directly or indirectly, by Euro Disney S.C.A. or Euro Disney Associés to a
subsidiary not controlled by any one of them whose immediate repayment is
contractually due subject to the limits of the free cash flow of that
subsidiary defined as stated in (i) above.

 

minus the annual amount of
operating expenses of Euro Disney S.C.A. as budgeted for the current financial
year, within the limits of 5,000,000 euros (net of tax) for a financial year,
it being understood that said budget is likely to vary starting as of the
Financial Year 2006, up to the limit of an equivalent annual inflation amount,
the amount of said operating expenses will have to be notified by Euro Disney
Associés to CDC at the latest on the 15th of November of every year.

 

10

 

“Hotel SNCs”
means the following sociétés en nom collectif
[general partnerships]: Hôtel New York Associés S.N.C., Newport Bay Club
Associés S.N.C., Sequoia Lodge Associés S.N.C., Cheyenne Hôtel Associés S.N.C.,
Hôtel Santa Fe Associés S.N.C. and Centre de Divertissements Associés S.N.C.

 

“IA Borrowers”
has the meaning given to it in the introduction to this agreement.

 

“Initial
Conclusion Date” means the date on which the Second Park CDC Loan
Agreements are signed, namely 30 September 1999.

 

“Insufficient
Free Cash Flow” means, on a given Annual Payment Date, the negative
difference between the Free Cash Flow at that date, on the one hand, and the
sum of the amounts due and payable under the Second Park CDC Loans on the same
day and all the sums due and payable under the Senior Funding for the Period,
as defined in Article 7.2 (ii) following that date on the other hand.

 

“Interest
Period” means for the
purpose of calculating the interest specified in Article 3.5 (Default Interest) and in Article
7.4 (Rate of Interest Applicable in the Event of the
Deferral of the Due Date), an interest
period of three (3) months, it being understood that the first day of each
Interest Period will be 1 January, 1 April, 1 July and 1 October of each year.

 

“Common
Undertakings” means the covenants listed in Annex V of the Amended
and Restated Common Agreement as amended by supplemental agreement, in
connection with any authorisation or waiver granted in accordance with the
Amended and Restated Common Agreement.

 

“Leasing
Agreement” means the lease agreement dated 30 June 1994 relating to
certain assets as entered into by Euro Disneyland S.N.C. in the capacity of
lessor and Euro Disney Associés, in its capacity as lessee, as modified by
supplemental agreements.

 

“Long-Term
Subordinated Debt” means any sum owed in particular by the Borrower
under the Amended and Restated Second Park CDC Loan Agreements, which may not
be paid before the date on which all the sums due under the Financing
Agreements have been paid in full.

 

“Master
Agreement” has the meaning given to it in the introduction to this
agreement.

 

“Memorandum
of Agreement” has the meaning given to it in the introduction to
this agreement.

 

“Performance
Indicator” has the meaning given to it in the Common Undertakings.

 

“Performance
Indicator Report” has the meaning given to it in the Common
Undertakings.

 

“Period”
has the meaning given to it in Article 7.2 (Subordination).

 

11

 

“Phase IA
Banks” means the banks and financial
institutions party to the Phase IA Credit Agreement.

 

“Phase IA
Credit Agreement” means the multi-currency credit facility agreement
dated 5 September 1989 which operates by drawings or the issuance of letters of
credit between Euro Disney S.C.A., Euro Disneyland S.N.C and the Phase IA
Banks, as amended and restated as of 1 December 2004.

 

“Phase IA
Partners” means the parties to the Phase IA Partners Advances
Agreement.

 

“Phase IA
Partners Advances” means the subordinated loans granted by the
partners of Euro Disneyland S.N.C. to the latter in accordance with the Phase
IA Partners Advances Agreement.

 

“Phase IA
Partners Advances Agreement” means the partners advances agreement
dated 26 April 1989 between Euro Disneyland S.N.C. and its partners as amended
and restated as of 1 December 2004.

 

“Phase IB
Advances” means the
loans granted by the partners of the Hotel SNCs created for the requirements of
phase IB of the Project to the Hotel SNCs in accordance with the Phase IB
Advances Agreement.

 

“Phase IB
Advances Agreement” means the agreement dated 26 April 1991 between
EDL Hôtels S.C.A., the Hotel SNCs, their partners as well as the banks and
financial institutions as amended and restated as of 1 December 2004.

 

“Phase IB
Banks” means the banks and financial
institutions party to the Phase IB Credit Agreement.

 

“Phase IB
Credit Agreement” means the credit facility agreement dated 25 March
1991 between EDL Hôtels S.C.A., the Hotel SNCs, and the Phase IB Banks, as amended
and restated as of 1 December 2004.

 

“Phase IB
Lenders” means the
banks and financial institutions party to the Phase IB Advances Agreement.

 

“Phase I CDC
Loans” has the meaning given to it in the introduction to this
agreement.

 

“Principal
Amount of Tranche E” means:

 

(i)            on the Date of Signing, the principal amount of €[•];

 

(ii)                        subsequently, at any time, the
outstanding principal amount of Tranche E not repaid by the Borrower.

 

“Project”
has the meaning given to it in the introduction to this agreement.

 

“Realisation
of the Capital Increase” means the completion of the capital
increase by Euro Disney S.C.A., the gross proceeds of which must equal at least
two hundred and fifty million euros (€250,000,000), i.e. the issue,
subscription and payment in full of the issue price of the corresponding new
shares.

 

12

 

“Realisation
of Capital Increase Date” means the date at which the Realisation of
Capital Increase will be completed which date shall occur at the latest on 31
March 2005.

 

“Reference
Banks” means the main branches in Paris of Deutsche Bank AG, BNP
Paribas, Calyon and Société Générale.

 

“Restored
Amount” has the meaning given to it in Article 10.2 (Consequences of Events of Default) of this agreement.

 

 “S.C.A. Senior Funding” means:

 

(i)            the sums due by the Borrower under the Phase IA Credit
Agreement;

 

(ii)           the CDC Ordinary Loan; and

 

(iii)                     for as long as it remains in force,
the subleasing agreement dated 30 June 1994 entered into between Euro Disney
S.C.A. and Euro Disney Associés and the Leasing Agreement.

 

“Second Park”
has the meaning given to it in the introduction to this agreement.

 

“Second Park
CDC Loan Agreements” has the meaning given to it in the introduction
to this agreement.

 

“Second Park
CDC Loans” has the meaning given to it in the introduction to this
agreement, and more specifically means the loans granted by CDC to the Borrower
and called Tranche A, Tranche B, Tranche C, Tranche D and Tranche E, as
governed as of the Date of Signing by the Amended and Restated Second Park CDC
Loan Agreements.

 

“Senior
Funding” means:

 

(i)                           the Phase IA Credit Agreement;

 

(ii)                        the Phase IB Credit Agreement;

 

(iii)                     the Phase IA Partners Advances
Agreement;

 

(iv)                    the Phase IB Advances Agreement;

 

(v)                       the Phase I CDC Loans; and

 

(vi)                    the Leasing Agreement.

 

“Share
Capital Increase Date” means the date on which the Share Capital
Increase will take place, namely no later than the 31 march 2005.

 

13

 

“Subordination
Agreement” means the subordination agreement, dated 19 October 1999
entered into among, inter alia, the
Agents, Euro Disney S.C.A. and Euro Disney Associés, which will be amended in
accordance with the terms of an agreement entered into the 1st of December
2004, and amended and restated in accordance with the terms of an agreement
dated the 1st of December 2004 entered into subject to the
Realisation of the Capital Increase, substantially in the form attached hereto
as Annex I, governing notably the conditions under which CDC may implement the
provisions of Article 10 (Event of default) of
this agreement.

 

“Target Day”
means a day when the TARGET system (Trans-European Automated Real-Time Gross
Settlement Express Transfer System) is open.

 

“Total Principal
Amount of the Funding” means the
initial principal amount of the Funding which on the Initial Conclusion Date
was three hundred and eighty-one million one hundred and twenty two thousand
euros (€381,122,000).

 

“Tranche A”
has the meaning given to it in the introduction to this agreement.

 

“Tranche B”
has the meaning given to it in the introduction to this agreement.

 

“Tranche C”
has the meaning given to it in the introduction to this agreement.

 

“Tranche D”
has the meaning given to it in the introduction to this agreement.

 

“Tranche E”
has the meaning given to it in the introduction to this agreement.

 

“Transfer”
has the meaning given to it in the introduction to this agreement.

 

“Working Day”
means any whole day (other than a Saturday or a Sunday) when banks are open for
ordinary business in Paris.

 

2.                                      AMOUNT
OF THE LOAN

 

On the Date of Signing, the
Principal Amount of Tranche E amounts to [•].

 

3.                                      PAYMENT
OF INTEREST – REPAYMENT OF PRINCIPAL

 

3.1                               Interest

 

Tranche E will bear interest
with effect from the Realisation of Capital Increase Date until the date on
which it has been repaid in full at an annual rate of five point one five
percent (5.15)%.

 

14

 

3.2                               Method for calculating
interest payments

 

Subject to the following
stipulations, the Borrower will pay at each Annual Payment Date to CDC, the
interests due on the Principal Amount of Tranche E, on the basis of the exact
number of days elapsed, based on a year of 365 or 366 days as applicable,
pursuant to the table shown in Annex II.

 

The Borrower and CDC agree
that as from the date this agreement comes into force, the interest due to CDC
on the Principal Amount of Tranche E each year and until financial year 2014
included, will be paid differently depending on the profit as recorded by the
Performance Indicator:

 

(i)                                             the Performance Indicator is equal
to or greater than Performance Indicator reference no. 2.

 

If the Performance
Indicator or, where applicable, the pro-forma Performance Indicator for the Financial
Year under consideration is equal to or greater than the Performance Indicator
reference no. 2 for that Financial Year appearing in sub-annex 1 to the Common
Undertakings, the interest due to CDC will be payable on the Annual Payment
Date in question;

 

(ii)                                          the Performance Indicator is less
than Performance Indicator reference no. 2.

 

If the Performance
Indicator or, where applicable, the pro-forma Performance Indicator for the
Financial Year under consideration is less than the Performance Indicator
reference no. 2 for that Financial Year appearing in the sub-annex 1 of the
Common Undertakings, the Borrower will pay the interest due to CDC under each
Second Park CDC Loans under the following terms:

 

(a)                        up to the to the limit of the amount of interest
due under the relevant interest payment date (as determined by the interest
payment schedule shown in annex II of each of the Amended and Restated Second
Park CDC Loans Agreements), equal to the insufficiency ascertained in
comparison to Performance Indicator reference no. 2, such interest will be
converted into “Long-term Subordinated Debt” the
terms and conditions of which shall be determined in a separate agreement
entered into on this day between CDC and Euro Disney Associés, in the form
appearing in Annex III, it being specified that interests thus converted into
Long-term Subordinated Debt shall be charged on the interests due under each
Second Park CDC Loan, in the following priority order:

 

15

 

(1)                        in priority, on the interests due
under Tranche A;

 

(2)                        then, in the case where the amount
of this Long Term Subordinated Debt is superior to the amount of interest due
under Tranche A : on the interests due under Tranche B;

 

(3)                        then, in the case where the amount
of this Long Term Subordinated Debt is superior to the amount of interest due
under Tranche A and of Tranche B : on the interests due under Tranche C;

 

(4)                        then, in the case where the amount
of this Long Term Subordinated Debt is superior to the amount of interest due
under Tranche A, Tranche B and Tranche C : on the interests due under Tranche
D;

 

(5)                        then, in the case where the amount
of this Long Term Subordinated Debt is superior to the amount of interest due
under Tranche A, Tranche B; Tranche C and Tranche D : on the interests due
under Tranche E;

 

(b)                       for the part of the interest of Tranche E, as
the case may be, non-converted into Long Term Subordinated Debt, this interest
will be paid on the Annual Payment Date in question.

 

The Borrower and
CDC agree to sign an agreement incorporating the terms and conditions
applicable to any Long Term Subordinated Debt in accordance with the form
appearing in Annex III, as soon as possible as from the date on which a Long
Term Subordinated Debt is constituted pursuant to the stipulations of this
Article 3.2.

 

3.3                                           Redemption of the Principal
Amount of Tranche E

 

The Principal
Amount of Tranche E, as, if applicable, reduced as a result of prepayment in
accordance with Article 4 (Prepayment at the Option
of the Borrower) will be repaid in one amount on 2 November 2023, ,
pursuant to the repayment schedule set forth in Annex II.

 

16

 

3.4                                        Payment and repayment terms

 

The payment and
repayment of any sums due under Tranche E by the Borrower will be made by
transfer to account no. 1155793L 1 opened in the name of “Direction des fonds d’épargne”
in CDC’s books.

 

3.5                                        Default interest

 

If any amount due
to CDC pursuant to this agreement is not paid on its due date, interest will
accrue on a daily basis on this unpaid amount from such due date until the date
on which this amount is actually paid at an annual rate equal to the three (3)
month EURIBOR rate, plus two per cent (2%) per annum. This rate may never be
lower than 5.15% per annum and will not prejudice CDC’s right to make use of
the acceleration of maturity as stipulated in article 10 (Events of
Default) below.

 

As of the date at
which all amounts due to the Borrower in relation to the Financing Agreements,
excluding the Agreement on the Granting of the Ordinary Loans and the Agreement
on the Granting of the Participating Loans, have been repaid, the default
interest due under this agreement will be annually capitalized in accordance
with the provisions of article 1154 of the French Civil Code.

 

4.                                               PREPAYMENT
AT THE OPTION OF THE BORROWER

 

4.1                                        Prepayment

 

Subject to
compliance with the stipulations of the Subordination Agreement, the Borrower
may, provided it gives at least thirty (30) days written notice to CDC, prepay
all or part of Tranche E. Any prepayment will automatically result in the
simultaneous and proportionate repayment of the other Second Park CDC Loans.

 

Subject to the
stipulations of Article 3 (Payment of Interest –
Repayment of Principal) any prepayment of a principal amount must be
accompanied by the payment of the accrued interest on the principal amount
repaid up to the value date of this prepayment. This interest will be
calculated on the basis of the exact number of days based on a year of 365 or 366
days, as applicable.

 

4.2                                        Any repayment, whether early or not,
of any principal amount will be final and the Borrower will not be able to
reborrow, under this agreement, the amount thus repaid.

 

17

 

4.3                                        It is specified that the provisions
of article 5 (Prepayment) of the Amended and
Restated Common Agreement are not applicable to Tranche E.

 

4.4                                        Penalty for prepayment at
the option of the Borrower

 

If the Borrower
opts to make a prepayment in accordance with the stipulations of Article 4.1 (Prepayment), the Borrower will pay CDC not only the accrued
interest stated under Article 4.1 (Prepayment) but
also a prepayment penalty corresponding to the amount of interest that would be
payable for a period of ninety (90) days at a rate of 5.15% per annum on the
principal amount prepaid.

 

This penalty will
be payable on the date of the prepayment in question.

 

5.                                               REPRESENTATIONS AND WARRANTIES

 

The Borrower warrants and
represents, to the CDC, that on the Date of Signing:

 

5.1                                        It is a properly constituted company
existing legitimately under French law, it has the capacity to perform its
activities as it does now, to enter into this agreement and to fulfil its
obligations arising herefrom;

 

5.2                                        Its manager is duly authorised to
sign this agreement;

 

5.3                                        The signing of this agreement and
the fulfilment of the obligations arising herefrom do not contravene any
significant provision of its articles of association nor any significant clause
of any agreement or undertaking to which it is party or by which it is bound
nor violate the laws or regulations applicable to it in such a way to as to
bring about the nullity of its covenants under this agreement;

 

5.4                                        This agreement is and will remain a
legal, valid and binding covenant for the Borrower concerned, in accordance
with the terms thereof;

 

5.5                                        No authorisation is required from
any public authority for the repayment of the principal, the payment of
interest and other costs inherent in this agreement;

 

5.6                                        No legal proceedings before a
judicial, administrative or arbitration court in France or abroad are in
progress or, to the knowledge of the Borrower concerned, about to be brought
which might prevent or prohibit the signing or performance of this agreement by
the Borrower or which might affect its legal capacity to assume its obligations
under this agreement.

 

18

 

6.                                               COVENANTS

 

6.1                                        Positive covenants

 

Until all amounts
owed under this agreement are repaid in full, the Borrower undertakes the
following covenants:

 

(a)                       the Borrower must notify CDC of any
significant change in its corporate structure or operation, such as, in
particular, a change of management or a change in the amount or distribution of
the share capital, brought to the attention of the Borrower in accordance with
applicable legislation and regulations; it being specified that CDC is already
informed of all the changes envisaged as a result of the Transfer and expressly
consents to the transfer of this agreement to Euro Disney Associés.

 

(b)                      the Borrower will, on a yearly
basis, within fifteen (15) days of these being approved by its shareholders,
submit his balance sheets, income statements and annexes to CDC and, within
fifteen (15) days of these being approved by Euro Disney S.C.A’s shareholders,
the consolidated accounts and consolidated balance of Euro Disney S.C.A.;

 

(c)                       the Borrower shall provide CDC with
any document, agreement or information that he has to submit to Phase IA Banks,
Phase IB Banks, Phase IA Partners or Phase IB Partners, or any of their agents,
under the conditions precedent to the coming into effect of the amended and
restated versions of the Financing Agreements and in the same forms required by
the aforementioned agreements; and.

 

19

 

(d)                      Without prejudice to the
stipulations of paragraph (b) of article 8.1 (Positive
Covenants) of the Agreement on the Granting of Participating Loans,
and of paragraph (b) of article 8.1 (Positive Covenants)
of the Agreement on the Granting of Ordinary Loans, starting as of the date at
which all amounts due by the Borrower under the Senior Financings, except for
the Agreement on the Granting of Participating Loans and the Agreement on the
Granting of Ordinary Loans, will have had been paid, the Borrower shall respect
his obligations arising from the Amended and Restated Common Agreement or the
Common Undertakings.

 

6.2                                        Negative covenants

 

Until all amounts
owed under this agreement are repaid in full, the Borrower covenants not to
merge with another company without the prior approval of CDC. Such approval
cannot be refused if:

 

(i)                                              the entity
resulting from this merger takes over the full debt contracted or due to be
contracted by virtue of this agreement by the Borrower; and

 

(ii)                                           immediately after
the completion of the merger, there is no Event of Default; and

 

(iii)                                        the entity
resulting from the merger is authorised, under the terms of the Master
Agreement, to operate the Project.

 

7.                                               SUBORDINATION

 

7.1                                        In the event of a court-ordered
liquidation or any other procedure which may replace such liquidation in the
future relating to the Borrower and without thereby jeopardising the effects of
the mortgage granted under the conditions stated in Article 8 (Mortgage Allocation) of this agreement, the rights of CDC to
the repayment of the principal and payment of interest relating to Tranche E
will be subject to the prior payment of all sums owed to creditors under S.C.A.
Senior Funding.

 

20

 

7.2                                        In addition,

 

(i)                                    if the payment of
any amount in interest or in principal due and payable under the Senior Funding
is not made on the correct date, the due date of the payment of any amount due
under Tranche E in interest or principal will be deferred until the date on
which this payment default under the Senior Funding in question ceases to exist
or until the date on which, despite the continuation of this payment default,
the lender or lenders of the Senior Funding agree that the payment of this
amount in interest and in principal due under Tranche E be made. However, the
option to accept such payment will not be beneficial to CDC;

 

(ii)                                 if the manager of
the Borrower can prove, under the conditions stated in Article 2.3.2 of the
Subordination Agreement, that the Free Cash Flow on an Annual Payment Date is
insufficient, after payment of the sums due and payable to CDC under Tranche E
at that Annual Payment Date, to pay the sums due under the Senior Funding
during the six (6) months following this Annual Payment Date (the “Period”), the due date of the payment of the portion of the
amount in interest or in principal due under Tranche E, equal to the amount of
the Insufficient Free Cash Flow, will be deferred until the date on which the
level of Free Cash Flow allows payment to be made in respect of:

 

(a)                                           the due dates under the Senior
Funding due or to be due during the outstanding Period; and

 

(b)                                          the share of the amount due under
Tranche E in interest or in principal, and of which the payment due date has
been deferred pursuant to this paragraph (ii).

 

7.3                                        Provided that any amount due and
payable under the Senior Funding is paid in full, the payment of all sums owed
under Tranche E must be made prior to any payment under any participating security
issued by the Borrower and any capital security of the Borrower whatsoever.

 

7.4                                        Interest rates applicable
in the event of the deferral of the due date

 

If any amount due
to CDC under Tranche E (other than an amount of interest accrued on an amount
whose due date has been deferred in accordance with Article 7.2) is not paid on
its normal due date and this due date is deferred in time pursuant to the
stipulations of Article 7.2 above, interest will accrue on this amount until
the date on which it is actually paid at a rate of Tj, defined for each
Interest Period in question as follows:

 

21

 

Tj = [the higher of
the following two rates:

 

(i)                          EURIBOR for the Interest Period in
question plus two percent (2%) per annum; or

 

(ii)                       5.15 % per annum]

 

+

 

[a x 0.30% per annum]

 

where a is the
whole number of years elapsed between the beginning of the deferral and the
first day of each Interest Period concerned (inclusive).

 

The interest at the
rate thus established will be calculated for the exact number of days of
deferral occurring during the Interest Period under consideration on the basis
of a year of 360 days.

 

The first Interest
Period will commence with effect from the day following the deferral date of
the sums, the payability of which has been deferred by virtue of Article 7.2
above, and the following Interest Periods will commence from the end of the
immediately preceding Interest Period.

 

7.5                                        The stipulations of Articles 7.1 and
7.2 will cease to apply with effect from the date on which all the sums due
under the Senior Funding other than the Phase I CDC Loans are fully repaid.

 

8.                                               MORTGAGE
ALLOCATION

 

It is noted that in
order to guarantee up to a maximum of three hundred and eighty-one million one
hundred and twenty-two thousand euros (€381,122,000), the payment of all sums
due by the Borrower to CDC under the CDC Loans Second Park, the Borrower has
granted to CDC a senior mortgage against the land forming the Second Park made
up of the following lots: AT2.1, AT2.3 and AT2.4, which extends and will
continue to extend to the buildings built or to be built on this land (said
land and buildings being referred to collectively as the “Encumbered
Properties”).

 

22

 

This mortgage has
given rise to the signing of a mortgage allocation deed received by Maître
Bertrand Lacourte, Notary, dated 31 January 2000 (a copy of which appears in
Annex II), such instrument stipulating that the mortgage will be created on 31
December 2016 and that it may not under any circumstances be registered at the
Registrar of Mortgages prior to this
date. The Borrower covenants to do the necessary, at his own expenses, so that
CDC benefits from this mortgage in terms similar to the abovementioned terms,
in guaranty of the Second Park CDC Loan (including Tranche E) as amended
pursuant to this agreement, and the other Amended and Restated Second Park CDC
Loan Agreements.

 

Whilst this
mortgage is not created, the Borrower undertakes not to assign the Encumbered
Properties, except in connection with the Transfer transaction or a
court-ordered liquidation of the Borrower, nor to grant any other mortgage or
lease constituting a right in rem to the
latter without the prior written consent of CDC. It is noted that this covenant
is the subject of a separate agreement inserted into the purchase instrument
drawn up on 31 January 2000 between EPAFRANCE and the Borrower relating to the
above-mentioned land in which instrument CDC is the beneficiary of said covenant.
It is further noted that this separate agreement was published in the Registrar
of Mortgages simultaneous to the purchase instrument.

 

The Borrower will
bear all costs, fees and emoluments relating to the creation of this mortgage
and its registration in the Registrar of Mortgages.

 

9.                                               LENDERS’
MEETING

 

If it appears from
the Borrower’s Free Cash Flow and short-term operating outlook that the
Borrower will soon be confronted with an inability to service its debt, notably
under the Second Park CDC Loan Agreement, the Borrower will employ its best
efforts to bring together all its lenders as soon as possible, including CDC,
in order to find an amicable and continuous solution to the difficulties thus
experienced.

 

10.                                        EVENTS
OF DEFAULT

 

10.1                                 Definition of Events of
Default

 

The occurrence of
any of the following events will constitute an event of default (an “Event of Default”) against the Borrower:

 

23

 

(a)                        any principal or interest amount due
to CDC under Tranche E is unpaid on its due date and remains unpaid five (5)
Working Days after written notification is sent to this effect by CDC to the
Borrower;

 

(b)                       one of the covenants made by the
Borrower in Article 6 (Covenants) of
this agreement is not met and the Borrower has not remedied nor is about to
remedy this default within thirty (30) days as from the notification sent by
CDC to the Borrower requesting that the default be remedied (excluding, with
respect to the abovementioned 30 days period, in case of a default caused by
the fact that covenants pursuant to article 2 of the Common Undertakings have
not been met);

 

(c)                        one of the essential representations
or warranties made or given under this agreement is not observed or proves to
be incorrect;

 

(d)                       any non-subordinated debt of the
Borrower resulting from a loan of sums of money totalling more than fifteen
million two hundred thousand euros (€15,200,000) is declared due and payable in
advance as a result of the existence of a breach on the part of the Borrower;

 

(e)                        a final judgment against the
Borrower ordering the Borrower to pay a sum greater than seventy six million
two hundred thousand euros (€76,200,000) and the Borrower does not make the
payment within thirty (30) days;

 

(f)                          voluntary withdrawal from the
operation of the Second Park for a period greater than six (6) consecutive
months except in the event of closure (i) for seasonal reasons, or (ii) for
rebuilding, repair or maintenance; and

 

(g)                       as of 1 January 2013, Euro Disney
S.C.A. or any of its affiliates contracts any indebtedness from a bank (the “Envisaged Debt”) without the prior consent of CDC and
the effect of contracting such indebtedness renders the ratio Debt/Consolidated
Equity Capital superior to 1 at the date of making the funds available; it
being specified that the Borrower may remedy this Event of Default within a
30-day period starting as of the date of notification of the Borrower.

 

10.2                                 Consequences of Events of
Default

 

If an Event of Default occurs, CDC may, provided it complies with the
provisions of the Subordination Agreement, declare the total outstanding amount
of the CDC Loans Agreements Second Park granted to be immediately payable,
fifteen (15) days after notification regarding an Event of Default has been
sent to the Borrower concerned, except in the case of a violation of the ratios
set out in article 2 of the Common Undertakings for the Financial Year N, it
being specified that in such case, the CDC will not have the right to notify
the accelerated maturity of the CDC Loans Agreements Second Park before 30
January of the Financial Year N+1 or, in case of a change in the accounting
principles and rules, before 28 February of Financial Year N+1, provided that
such violation is remedied in the following conditions and time limits:

 

24

 

Euro Disney Associés may restore, as applicable, the amount of DSCR or
Forecast DSCR (as such terms are defined in the Common Undertakings) through
either (i) a transfer of new liquidities under the form of equity capital or
Subordinated Debt (as such terms are defined in the Common Undertakings) of
Euro Disney Associés or (ii) a discharge of receivables (inclusive or not of a “return
to better fortunes” clause) or the carry forward of payments that may, in both
cases, give rise to a payment only after the date at which all amounts owed (in
principal or interest) under the CDC Loans Agreements Second Park and the CD
Long Term Subordinated Debt Agreement (as such terms are defined in the Amended
and Restated Common Agreement) have been paid in full and will be the subject
of a subordination agreement to be entered into with CDC (the “Restored Amount”).

 

The Restored Amount (to be added to the numerator pursuant to the
calculation of the DSCR and the Forecast DSCR) will be equal to the higher of:

 

(i)                                             the Restored Amount having for
effect to restore the DSCR; and

 

(ii)                                          the Restored Amount having for
effect to restore the Forecast DSCR.

 

The treasury of Euro Disney Associés will have to have entirely
benefited from the Restored Amount by 30 January of the Financial Year N+1 at
the latest, or in case of a change in accounting principles and rules, by 28
February of the Financial Year N+1 at the latest.”

 

10.3                                 Penalties

 

If CDC should
demand repayment of Tranche E due to the occurrence of an Event of Default as
defined in Article 10.1 (f), the Borrower shall pay CDC under Tranche E, a
penalty equal to six million ninety eight thousand euros (€ 6,098,000.00).

 

This penalty will
be payable on two dates, one half fifteen (15) days after the notification stated
in Article 10.2 (Consequences of Events of Default)
and the other half on the anniversary date of that same notification.

 

25

 

11.                                        CONFIDENTIALITY

 

11.1                                 CDC must regard as confidential, and
therefore not disclose in any way to third parties other than its consultants
or Government officials, any data, information or reports that have been
provided under this agreement by the Borrower, by any entity directly or
indirectly affiliated to the Borrower, or by one of the agents, representatives
or consultants or the Borrower. CDC cannot disclose to third parties any of
these data, information or reports without the prior written agreement of the
Borrower, which may refuse to give such agreement at its discretion except
where:

 

(i)                          such data or
information or report has become public other than by virtue of a violation by
CDC, as applicable, of the stipulations of this Article;

 

(ii)                       such disclosure is
imposed by the law; or

 

(iii)                    such disclosure is
required by a court having jurisdiction; or

 

(iv)                   such disclosure is
explicitly authorised by virtue of any stipulation of this agreement.

 

11.2                                 CDC must take all necessary measures
to ensure that confidential data and information submitted to them under this
agreement by the Borrower, data and information which must be brought to the
attention of its employees, will only be disclosed for the sole purposes of
facilitating the management of this agreement and, in all cases, on condition
that such data or information are regarded as strictly confidential by those
employees.

 

11.3                                 The stipulations of this Article 11
(Confidentiality) will be binding on CDC
subsequent to the date on which all sums owed by the Borrower to CDC by virtue
of this agreement have been paid and repaid.

 

12.                                        MISCELLANEOUS PROVISIONS

 

12.1                                 Applicable law – Election
of jurisdiction

 

This agreement will
be governed by French law and construed in accordance therewith.

 

Any dispute arising
from this agreement or its interpretation will be subject to the exclusive
jurisdiction of the competent courts situated within the area of jurisdiction
of the Paris Court of Appeal.

 

26

 

12.2                                 Expenses

 

The Borrower agrees
to pay the reasonable expenses incurred by CDC in preparing this agreement or
any supplemental agreement hereto upon presentation of justifying
documentation.

 

12.3                                 Cumulative rights and
non-waiver

 

Any right arising
for CDC from this agreement or any other document submitted by virtue of this
agreement or at the time of the latter, or pertaining to it by virtue of the
law, may be exercised at any time regardless of its other rights. Should CDC
not exercise any right belonging to it or exercise such right tardily, this
fact will not constitute a waiver on its part of its entitlement to enjoy that
right. Likewise, the total or partial exercise by CDC of a right pertaining to
it will not prevent it from exercising this right or another right at a later
date.

 

12.4                                 Notifications

 

Any communication,
request or notification to be made in accordance with the agreement or will be
written or made in French and will be regarded as valid if it is submitted in
writing or sent by fax and confirmed by registered letter with acknowledgement
of receipt to the other party at the addresses indicated below. Communications,
requests or notifications made in accordance with the stipulations of this
Article will be sent:

 

•                  to the Borrower at:

 

EURO DISNEY ASSOCIES S.C.A.

Immeubles Administratifs
[Administrative Buildings]

Route Nationale 34

77700 Chessy

 

Attn.: Direction Financements et Achats [Finance and
Procurement Department]

 

Fax: 01 64 74 56 36.

 

•                  to CDC at:

 

LA CAISSE DES DÉPÔTS ET CONSIGNATIONS

Direction des Fonds d’Épargne [Savings Funds
Department]

72 avenue Pierre Mendès France

75914 Paris Cedex 13

 

Attn.: Direction Financière [Finance Department]

 

Fax: 01 58 50 07 48

 

27

 

Any amendment to
the above details will only be opposable after notification.

 

For the purpose of
calculating any time period under the terms of this agreement, the first day
that will be used will be the date of receipt by the recipient of the
registered letter with acknowledgement of receipt stated above.

 

12.5                                 Independence of clauses

 

Even if any of the
provisions of this agreement are held to be null and void or unenforceable in
accordance with the applicable law, the validity, legality and enforceability
of the remaining provisions of this agreement will not in any way be affected.

 

12.6                                 Binding effect

 

This agreement will
be binding on and will inure to the benefit of the Borrower and CDC, as well as
their respective successors or assignees.

 

12.7                                 Transfers of rights

 

(a)                        The Borrower may not transfer any of
its rights or obligations by virtue of this agreement without obtaining prior
written agreement from CDC.

 

(b)                       Until 31 December 2004, CDC may not
transfer any of its rights or obligations under this agreement without
obtaining the prior agreement of the Borrower.

 

As from 1 January 2005, CDC
may freely transfer any of its rights or obligations to a financial
institution, or any other company created specifically to this effect, that has
a minimum of one branch in one of the countries where the legal tender on the
envisaged transfer date is the euro, provided this financial institution on the
date of transfer has a rating equal to or greater than A in the system used by
Standard & Poor’s or an equivalent level in other international rating
systems, subject to the following conditions: (i) the financial institution or
the concerned entity shall accede to all the provisions of this agreement and
(ii) CDC shall notify the Borrower pursuant to Article 12.4 (Notifications).

 

28

 

12.8                                 Suspensive effect – Entry into
force

 

This agreement is made subject
to the condition precedent of the realisation of the Transfer and the
Realisation of the Capital Increase no later than 31 March 2005. If this
condition precedent is fulfilled, the stipulations of this agreement will take
effect on the Capital Increase Date.

 

It is being specified that if
the condition precedent stated in the previous paragraph is not fulfilled, this
agreement will not come into force and will not be effective in relation to CDC
or the Borrower and its stipulations will then be considered as null and void.

 

It has also been
agreed that :

 

(i)                                             in case of non-Realisation of the
Capital Increase, the term of the waiver referred to in the waiver request sent
by Euro Disney S.C.A. to the CDC dated 17 October 2003 as well as in the
Memorandum of Agreement, will be extended until the 31 March 2005 or, in case
of a dialogue as provided in paragraph (a) of article 7.7 (Termination)
of the Memorandum of Agreement, until termination of some of its provisions pursuant
to the aforementioned article;

 

(ii)                                          In case of Realisation of the
Capital Increase, the CDC shall not avail itself of any Event of Default as
provided in the previous paragraph (i) and for any reason.

 

2.9                                        Annual Percentage Rate

 

In order to meet the
requirements of Articles L. 313–1 and L. 313–2 of the French Consumer Code and
for this purpose alone, CDC declares, by way of example, to the Borrower, which
accepts, that the annual percentage rate applicable to Tranche E, on the basis
of a year comprising three hundred and sixty-five (365) days, will be:

 

APR: [•] % per
annum,

 

or a period rate of
[•]%, the period being equal to [•].

 

This annual
percentage rate was calculated on the basis of an annual interest rate of 5.15
% and Tranche E’s principal amounting to [•].

 

Each of the above
calculations includes commission, costs, advisors’ fees and any other amounts
chargeable to the Borrower relating to the implementation of this agreement.

 

29

 

Done at [•], on [•],

In three (3)
original copies.

 

For the Borrower:

 

EURO
DISNEY ASSOCIES S.C.A.

 

 

	
  By:

  	
   

  	
   

  

Name: [•]

 

 

For CDC:

 

LA CAISSE DES DÉPÔTS ET CONSIGNATIONS

 

 

	
  By:

  	
   

  	
   

  

Name: [•]

 

30

 

ANNEX 1

SUBORDINATION AGREEMENT

 

[See Exhibit 4.18 to the Form 20-f]

 

31

 

ANNEX 2

REPAYMENT
AND INTEREST PAYMENT SCHEDULE OF TRANCHE E

 

CAISSE DES DEPÔTS ET CONSIGNATIONS

 

DIRECTION DES FONDS D’EPARGNE

 

	
  REPAYMENT
  SCHEDULE

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Tranche E

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Contract’s
  number after the 2004 restructuring :

  	
    1 xxx xxx

  	
   

  	
  SECOND PARK LOAN

  
	
   

  	
   

  	
   

  	
   

  
	
  Borrower’s
  number :

  	
  000 123 609

  	
   

  	
  EURO DISNEYLAND S.C.A.

  

 

	
  Principal
  initial amount :

  	
  60,138,874.01  

  	
   

  	
  euros(*)

  
	
  Effective
  Global Rate on the effective date, the : 03/31/05

  	
  5.15

  	
  %

  	
  (*)

  
	
  Annual
  facial rate :

  	
  5.15

  	
  %

  	
   

  

 

(*) The
figures given should be seen as a rough guide and may vary in accordance with
any change in the  effective date and mortgage fees.

 

	
  Maturity date

  	
   

  	
  Annual

  rate

  	
   

  	
  Principal outstanding

  amount before 

  maturity

  	
   

  	
  Repayment

  	
   

  	
  Interests

  	
   

  	
  Total due 

  on maturity

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  12/31/2005

  	
   

  	
  5.15

  	
  %

  	
  60,138,874.01

  	
   

  	
  0.00

  	
   

  	
  2,333,470.69

  	
   

  	
  2,333,470.69

  	
   

  
	
  12/31/2006

  	
   

  	
  5.15

  	
  %

  	
  60,138,874.01

  	
   

  	
  0.00

  	
   

  	
  3,097,152.01

  	
   

  	
  3,097,152.01

  	
   

  
	
  12/31/2007

  	
   

  	
  5.15

  	
  %

  	
  60,138,874.01

  	
   

  	
  0.00

  	
   

  	
  3,097,152.01

  	
   

  	
  3,097,152.01

  	
   

  
	
  12/31/2008

  	
   

  	
  5.15

  	
  %

  	
  60,138,874.01

  	
   

  	
  0.00

  	
   

  	
  3,097,152.01

  	
   

  	
  3,097,152.01

  	
   

  
	
  12/31/2009

  	
   

  	
  5.15

  	
  %

  	
  60,138,874.01

  	
   

  	
  0.00

  	
   

  	
  3,097,152.01

  	
   

  	
  3,097,152.01

  	
   

  
	
  12/31/2010

  	
   

  	
  5.15

  	
  %

  	
  60,138,874.01

  	
   

  	
  0.00

  	
   

  	
  3,097,152.01

  	
   

  	
  3,097,152.01

  	
   

  
	
  12/31/2011

  	
   

  	
  5.15

  	
  %

  	
  60,138,874.01

  	
   

  	
  0.00

  	
   

  	
  3,097,152.01

  	
   

  	
  3,097,152.01

  	
   

  
	
  12/31/2012

  	
   

  	
  5.15

  	
  %

  	
  60,138,874.01

  	
   

  	
  0.00

  	
   

  	
  3,097,152.01

  	
   

  	
  3,097,152.01

  	
   

  
	
  12/31/2013

  	
   

  	
  5.15

  	
  %

  	
  60,138,874.01

  	
   

  	
  0.00

  	
   

  	
  3,097,152.01

  	
   

  	
  3,097,152.01

  	
   

  
	
  12/31/2014

  	
   

  	
  5.15

  	
  %

  	
  60,138,874.01

  	
   

  	
  0.00

  	
   

  	
  3,097,152.01

  	
   

  	
  3,097,152.01

  	
   

  
	
  12/31/2015

  	
   

  	
  5.15

  	
  %

  	
  60,138,874.01

  	
   

  	
  0.00

  	
   

  	
  3,097,152.01

  	
   

  	
  3,097,152.01

  	
   

  
	
  12/31/2016

  	
   

  	
  5.15

  	
  %

  	
  60,138,874.01

  	
   

  	
  0.00

  	
   

  	
  3,097,152.01

  	
   

  	
  3,097,152.01

  	
   

  
	
  11/02/2017

  	
   

  	
  5.15

  	
  %

  	
  60,138,874.01

  	
   

  	
  0.00

  	
   

  	
  2,596,516.48

  	
   

  	
  2,596,516.48

  	
   

  
	
  11/02/2018

  	
   

  	
  5.15

  	
  %

  	
  60,138,874.01

  	
   

  	
  0.00

  	
   

  	
  3,097,152.01

  	
   

  	
  3,097,152.01

  	
   

  
	
  11/02/2019

  	
   

  	
  5.15

  	
  %

  	
  60,138,874.01

  	
   

  	
  0.00

  	
   

  	
  3,097,152.01

  	
   

  	
  3,097,152.01

  	
   

  
	
  11/02/2020

  	
   

  	
  5.15

  	
  %

  	
  60,138,874.01

  	
   

  	
  0.00

  	
   

  	
  3,097,152.01

  	
   

  	
  3,097,152.01

  	
   

  
	
  11/02/2021

  	
   

  	
  5.15

  	
  %

  	
  60,138,874.01

  	
   

  	
  0.00

  	
   

  	
  3,097,152.01

  	
   

  	
  3,097,152.01

  	
   

  
	
  11/02/2022

  	
   

  	
  5.15

  	
  %

  	
  60,138,874.01

  	
   

  	
  0.00

  	
   

  	
  3,097,152.01

  	
   

  	
  3,097,152.01

  	
   

  
	
  11/02/2023

  	
   

  	
  5.15

  	
  %

  	
  60,138,874.01

  	
   

  	
  60,138,874.01

  	
   

  	
  3,097,152.01

  	
   

  	
  63,236,026.02

  	
   

  

 

32

 

ANNEX 3

FORM OF
AGREEMENT CONTAINING THE TERMS AND CONDITIONS APPLICABLE TO THE LONG TERM
SUBORDINATED DEBT

 

[See Exhibit 4.28 of the Form 20-f]

 

33Exhibit 4.28

 

CDC
LONG-TERM SUBORDINATED DEBT

 

TERMS AND
CONDITIONS

 

 

DATED [•]

 

 

BETWEEN

 

 

EURO DISNEY
ASSOCIES S.C.A.

 

 

as Borrower

 

 

AND

 

 

LA CAISSE DES DÉPÔTS ET CONSIGNATIONS.

 

as Lender

 

 

 

LAW FIRM AT
THE COURT OF PARIS

26, cours Albert 1er 75008 Paris Tél. +33
(0)1 40 75 60 00 Fax +33 (0)1 43 59 37 79

E-mail info@gide.com www.gide.com

 

 

BETWEEN THE
UNDERSIGNED

 

1.         EURO DISNEY ASSOCIES S.C.A., a société
en commandite par actions [French limited partnership] with a share
capital of [•], which registered office is at Immeubles Administratifs, Route
Nationale 34, Chessy, 77700 Montevrain, entered in the Meaux Trade Register
under number 334 173 887, represented by [•], duly authorised for the purpose
hereof,

 

hereinafter
“Euro Disney Associés” or the “Borrower”

2.         LA CAISSE DES DÉPÔTS ET CONSIGNATIONS, an établissement spécial [special status
public corporation] constituted pursuant to the law of 28 April 1816, codified
under article L. 518-7 s. of the monetary and financial Code, which registered
office is at 56, rue de Lille, 75007 Paris, represented by [•], duly authorised
for the purpose hereof,

 

hereinafter
“CDC” or the “Lender”.

 

2

 

TABLE OF
CONTENTS

 

	
  ARTICLE 1.

  	
  DEFINITIONS

  	
   

  
	
  ARTICLE 2.

  	
  AMOUNT OF THE CDC
  LONG-TERM SUBORDINATED DEBT

  	
   

  
	
  ARTICLE 3.

  	
  REPAYMENT OR PAYMENT OF
  PRINCIPAL - PAYMENT OF INTEREST

  	
   

  
	
  ARTICLE 4.

  	
  REPAYMENT OR PREPAYMENT AT
  THE OPTION OF THE BORROWER

  	
   

  
	
  ARTICLE 5.

  	
  REPRESENTATIONS AND
  WARRANTIES

  	
   

  
	
  ARTICLE 6.

  	
  COVENANTS

  	
   

  
	
  ARTICLE 7.

  	
  EVENTS OF DEFAULT

  	
   

  
	
  ARTICLE 8.

  	
  CONFIDENTIALITY

  	
   

  
	
  ARTICLE 9.

  	
  MISCELLANEOUS PROVISIONS

  	
   

  

 

3

 

WHEREAS:

 

(A)       In accordance with the provisions of article 3.2 (Method for calculating interest payments)
of the Amended and Restated Second Park CDC Loans Agreements, as from the
Financial Year starting the 1st October 2004, and in the event of
the Performance Indicator or, if need be the pro forma Performance Indicator,
being inferior to the reference Performance Indicator No2, the interests due by
the Borrower to the Lender on the principal amount of each of Tranches A, B, C,
D and E, not exceeding the amount of the interests equal to the ascertained
insufficiency of the reference Performance Indicator No2, will be converted
into long-term subordinated debt (the “CDC
Long-Term Subordinated Debt”).

 

The
Performance Indicator [or the pro
forma Performance indicator] for Financial Year [•] being inferior to the
reference Performance Indicator No2 of the Financial Year thereof, the
interests due to CDC in respect of the Second Park CDC Loans Agreements will be
converted into CDC Long-Term Subordinated Debt up to [•] Euros ([•]  €)

 

(B)       Pursuant to the agreement dated 5 August 1994,
according to the terms of which The Walt
Disney Company (“TWDC”)
granted to the Borrower a revolving facility of 167,693,910 €, as amended by
way of an agreement dated 1 December 2004, the outstanding amount existing in
respect of the above-mentioned revolving facility on the Realisation of Capital
Increase Date, namely an amount of 110,000,000 €, will be converted into, on
that date, long-term subordinated debt (the “TWDC
A Long-Term Subordinated Debt”).

 

(C)       Pursuant to article 3.2 (Royalties and Management Fees) of the Memorandum of
Agreement, from the Financial Year starting the 1st October 2004 to
the Financial Year ending on the 30 September 2014 [inclusive], part of the
Royalties Management Fees will constitute a long-term subordinated debt of the
Borrower respectively to TWDC (the “TWDC B
Long-Term Subordinated Debt”) and to Euro Disney SAS (the “Euro Disney SAS Long-Term Subordinated Debt”)

 

(D)       The purpose of this agreement is to establish the
terms and conditions applicable to the CDC Long-Term Subordinated Debt

 

4

 

NOW
THEREFORE THE PARTIES AGREE AS FOLLOWS

 

 

ARTICLE 1.  DEFINITIONS

 

The words and expressions
starting with a capital letter and defined in this agreement will have the
meaning given to them in this agreement and the words and expressions starting
with a capital letter and not defined in this agreement will have the meaning
given to them in each of the Second Park CDC Loans Agreements.

 

“Amended and Restated Common Agreement” has the meaning given
to it in the Amended and Restated Second Park CDC Loan Agreements.

 

“Amended and Restated Second Park CDC Loan Agreements” means
the loan agreements entered into between CDC and the Borrower the 30 September
1999, amended by way of agreements dated 18 November 2002, and amended and
restated by way of agreements dated 1st December 2004, pursuant to
the terms of which CDC granted to the Borrower a loan made of four Tranches : “Tranche A”, “Tranche B”, “Tranche C”
and “Tranche D”, to which has been
added “Tranche E”.

 

“CDC Agreements” means the Agreement on the Granting of
Participating Loans and the Agreement on the Granting of Ordinary Loans.

 

“CDC Long-Term Subordinated Debt” has the meaning given to it
in the introduction to this agreement.

 

“CDC Phase I Loan Agreements” means the loans granted by CDC to
the IA Borrowers, including ordinary loans and participating loans, granted in
accordance with the provisions of an agreement in relation with the granting of
ordinary loans, entered into on the 17 May 1989, as amended on the 10 August
1994 and 30 September 1999, and by amended and restated agreements dated
[•] 2004.

 

“Consolidated Equity Capital” means Euro Disney S.C.A.’s and
its subsidiaries’ consolidated equity capital on the basis of the most recent
consolidated balance sheet in accordance with the accounting standards in force
in France used by Euro Disney S.C.A. on the date of signing of this agreement.

 

“Debts” means the sum of the principal amounts still owed by
Euro Disney S.C.A. and its present and future subsidiaries as well as by Euro
Disneyland S.N.C. and the Hotel SNCs on the date an Envisaged Debt is made
available in respect of:

 

(i)         Senior Funding,

 

(ii)        Second Park CDC
Loans,

 

(iii)       debts incurred in
respect of article 4 (Autres Endettements)
of the Joint Covenants,

 

(iv)      debts previously
incurred in accordance with the terms defined in Article 7.1 (g) of this
agreement, and

 

5

 

(vi)      all other securities
representing a debt, plus the principal amount of this Envisaged Debt.

 

“Envisaged Debt” has the meaning given to it in Article 7.1 (Définition des Cas d’Exigibilité Anticipée) of
this agreement.

 

“Euro Disney Group” means Euro Disney S.C.A. together with its
present and future affiliates.

 

“Euro Disney S.C.A” means Euro Disney S.C.A, a société en commandite par actions [French
limited partnership] with a share capital of [•] € whose registered
office is at Immeubles Administratifs, Route Nationale 34, 77700 Chessy,
entered in the Meaux Trade Register under number 334 173 887.

 

“Euro Disney SAS Long-Term Subordinated Debt” has the meaning
given to it in the introduction to this agreement.

 

“Event of default” has the meaning given to it in Article 10.1
(Definition of Events of Default).

 

“Expert” has the meaning given to it in the Amended and
Restated Common Agreement.

 

“Financial Year” means the period N starting on 1 October of
the calendar year N-1 and ending on 30 September of calendar year N. For
example, the 2004 Financial Year starts on 1 October 2003 and ends on 30
September 2004.

 

“Hotel SNCs” means the following sociétés en nom collectif [general partnerships]: Hôtel New
York Associés S.N.C., Newport Bay Club Associés S.N.C., Sequoia Lodge Associés
S.N.C., Cheyenne Hôtel Associés S.N.C., Hôtel Santa Fe Associés S.N.C. and
Centre de Divertissements Associés S.N.C.

 

“Joint Covenants” has the meaning given to it in the Amended
and Restated Second Park CDC Loan Agreements.

 

“Letters” means (a) the letter from TWDC to the Borrower dated
28 March 2003 in relation with the Licensing Agreement and (b) the letter from
Euro Disney SAS to the Borrower dated 28 March 2003 in relation with the
Management Fees.

 

“Licensing Agreement” has the meaning given to it in the
Amended and Restated Common Agreement.

 

“Long-Term Subordinated Debt” means the CDC Long-Term
Subordinated Debt, the TWDC A Long-Term Subordinated Debt, the TWDC B Long-Term
Subordinated Debt and the Euro Disney SAS Long-Term Subordinated Debt; and “Long-Term Subordinated Debt” means either
one of the aforementioned long-term subordinated debt.

 

“Management Fees” has the meaning given to it in the Amended
and Restated Common Agreement.

 

6

 

“Master Agreement” means the agreement entitled “Agreement for
the Creation and Operation of Euro Disneyland in France” drawn up with the
French Government on 24 March 1987 as amended and restated.

 

“Memorandum of Agreement” means the memorandum of agreement
dated 8 june 2004, as amended the 30 July 2004 and the 30 September 2004,
entered into between, inter alia,
the Borrower, TWDC, and the main creditors of the Borrower, including the
Lender, in relation with the financial restructuring of the Euro Disney Group.

 

“Performance Indicator” has the meaning given to it in the
Amended and Restated Common Agreement.

 

“Phase I CDC Loans”  means
the loans granted by CDC to the IA Borrowers, including the ordinary and
participating loans granted pursuant to the terms of the Agreement on the
Granting of the Ordinary Loans and the Agreement on the Granting of the
Participating Loans.

 

“Phase IB Lenders”  means
the banks and financial institutions party to the Phase IB Advances Agreement.

 

“Project” means the operation of the “Disneyland” theme park
(the “Disneyland Park”) and its
peripheral development .

 

“Realisation of the Capital Increase” means the completion of
the capital increase by Euro Disney S.C.A., the gross proceeds of which must
equal at least two hundred and fifty million euro (€250,000,000), i.e. the
issue, subscription and payment in full of the issue price of the corresponding
new shares.

 

“Realisation of Capital Increase Date” means the date at which
the Realisation of Capital Increase will intervene which date shall occur at
the latest on 31 March 2005.

 

“Reference Banks” means the main branches in Paris of Deutsche
Bank AG, BNP Paribas, Calyon and Société Générale.

 

“Royalties” has the meaning given to it in the Amended and
Restated Common Agreement.

 

“Senior Funding”  means:

 

(i)         Phase IA Credit
Agreement;

 

(ii)        Phase IB Credit
Agreement;

 

(iii)       Phase IA Partners
Advances Agreement;

 

(iv)      Phase IB Advances
Agreement;

 

(v)       Phase I CDC Loans;
and

 

(vi)      the Leasing
Agreement.

 

7

 

“Second Park”.means the second theme park denominated “Park
Walt Disney Studios” adjacent to the Disneyland Park.

 

“Second Park CDC Loan Agreements” means the loans granted by
CDC to the Borrower in accordance with the terms of the Amended and Restated
Second Park CDC Loan Agreements and referred to as Tranche A, Tranche B,
Tranche C, Tranche D and Tranche E.

 

“Transfer” means the transfer by Euro Disney S.C.A to Euro
Disney Associés of this agreement on the date of the transfer agreed between
Euro Disney S.C.A and Euro Disney Associés (subject to the rules governing
demergers and without entailing a squeeze out) for all or almost all the assets
and liabilities of Euro Disney S.C.A to Euro Disney Associés under the spin-off
agreement drawn up between Euro Disney S.C.A and Euro Disney Associés on 30
September 2004, as amended on 8 November 2004.

 

“TWDC A Long-Term Subordinated Debt” has the meaning given to
it in the introduction to this agreement.

 

“TWDC B Long-Term Subordinated Debt” has the meaning given to
it in the introduction to this agreement.

 

“Working Day” means any whole day (other than a Saturday or a
Sunday) when banks are open for ordinary business in Paris.

 

 

ARTICLE 2.  AMOUNT
OF THE CDC LONG-TERM SUBORDINATED
DEBT

 

On the
date of signing of this agreement, the principal amount of CDC Long-Term
Subordinated Debt is [•] euros ([•] €).

 

ARTICLE 3.  REPAYMENT
OR PAYMENT OF PRINCIPAL - PAYMENT OF
INTEREST

 

3.1             Repayment or payment of the principal

 

It
has been agreed that the CDC Long-Term Subordinated Debt will become due and
payable or repayable in its entirety on the date on which all sums due in
respect of the Senior Funding will have been fully paid and repaid.

 

3.2             Payment
of Interest

 

3.2.1          The CDC  Long-Term Subordinated Debt will bear
interest at the annual rate of five point one five percent (5.15 %).

 

The interests
will be calculated on the basis of the exact number of days elapsed, based on a
year of 365 or 366 days as applicable.

 

8

 

3.2.2          The interest due in respect of the CDC  Long-Term Subordinated Debt
will be annually capitalized in accordance with the provisions of article 1154
of the French Civil Code, until the 1st January 2017 (excluded).

 

As
from the 1st January 2017, the interest due in respect of each CDC
Long-Term Subordinated Debt will become annually claimable and payable, on each
Annual Payment Date.

 

3.2.3          It is recalled that (a) the payment of the
interest due by the Borrower in respect of the Long-Term Subordinated Debt,
will be subordinated to the payment of all sums due in respect of the Amended
and Restated Second Park CDC Loan Agreements, and (b) the payment of the
interest due by the Borrower in respect of the Long-Term Subordinated Debt, in
case of a liquidation of the Borrower, will be subordinated to the payment of
all sums due in respect of the Amended and Restated Second Park CDC Loan
Agreements.

 

3.3              Payment and repayment terms

 

3.3.1          For the purpose of this agreement, sums due
by the Borrower to the Lender will be considered as paid or repaid only if they
have been paid or repaid for good by way of funds immediately available on the
relevant date

 

3.3.2          The payment and repayment of any sums due in
respect of the CDC  Long-Term Subordinated Debt will be made by transfer
to account no. 1155793L 1 opened in the name of “Direction des fonds d’épargne”
in the books of CDC, or on any other account which references shall be notified
by the Borrower to CDC. .

 

3.4              Default interest

 

If
any amount due to the Lender in respect of this agreement is not paid on its
due date, interest will accrue on a daily basis on this unpaid amount from its
due date until the date on which this amount is actually paid at a rate equal
to five point fifteen percent (5.15 %) per annum, plus two per cent (2%) per annum, and will not prejudice the
Lender’s right to make use of the acceleration of maturity.

 

The
default interest due in respect of the CDC Long-Term Subordinated Debt will be
annually capitalized in accordance with the provisions of article 1154 of the
French Civil Code.

 

9

 

ARTICLE 4.  REPAYMENT
OR PREPAYMENT AT THE OPTION OF
THE BORROWER

 

4.1             Subject to full payment and
repayment of all sums due by the Borrower or any other company of the Euro
Disney Group in respect of the Finance Documents, excluding the CDC Agreements,
the Borrower may, provided it gives a written notice to the Lender, pay or
prepay all or part of CDC Long-Term Subordinated Debt.

 

It
has been agreed that if the Borrower had at his disposal sufficient available
funds on a given year, the parties to this agreement would get together in
order to determine, in good faith, the amount of a possible payment or
repayment of the principal of the CDC Long-Term Subordinated Debt for the
relevant year, payment or repayment which would be done pari passu between CDC and TWDC.

 

Subject
to the provisions of Article 3 (Payment of
Interest — Repayment of Principal) of  this agreement, any prepayment of a principal amount must
be accompanied by the payment of the accrued interest on the principal amount
repaid up to the value date of this prepayment. This interest will be
calculated on the basis of the exact number of days based on a year of 365 or
366 days, as applicable.

 

4.2             Any repayment, whether early or not, of any
principal amount will be final and the Borrower will not be able to reborrow,
under this agreement, the amount thus repaid.

 

4.3             In the case where the
Borrower completes at his option a prepayment pursuant to the stipulations of
Article 4 (Repayment or prepayment at the option of the Borrower), the Borrower
will pay to CDC, other than the accrued interests as set out in Article 4.1, a
prepayment indemnity corresponding to the amount of interests payable over a
period of ninety (90) days at a rate of 5.15% per annum on the amount of
prepaid principal.

 

This
indemnity is payable at the relevant prepayment date.

 

ARTICLE 5.  REPRESENTATIONS AND WARRANTIES

 

The Borrower warrants and
represents, to the Lender, that on the date of signing of this agreement:

 

5.1             It is a properly constituted company existing legitimately under French
law, it has the capacity to perform its activities as it does now, to enter
into this agreement and to fulfil its obligations arising herefrom;

 

5.2             Its manager is duly authorised to sign this
agreement;

 

5.3             The signing of this agreement and the
fulfilment of the obligations arising herefrom do not contravene any
significant provision of its articles of association nor any significant clause
of any agreement or undertaking to which it is party or by which it is bound
nor violate the laws or regulations applicable to it in such a way to as to
bring about the nullity of its covenants under this agreement;

 

10

 

5.4             This agreement is and will remain a legal,
valid and binding covenant for the Borrower concerned, in accordance with the
terms thereof;

 

5.5             No authorisation is required from any public
authority for the repayment of the principal, the payment of interest and other
costs inherent in this agreement;

 

5.6             No legal proceedings before a judicial,
administrative or arbitration court in France or abroad are in progress or, to
the knowledge of the Borrower concerned, about to be brought which might
prevent or prohibit the signing or performance of this agreement by the
Borrower or which might affect its legal capacity to assume its obligations
under this agreement.

 

ARTICLE 6.  COVENANTS

 

6.1             Positive covenants

 

Until
all amounts owed under this agreement are repaid in full, the Borrower
undertakes the following covenants:

 

(a)   the Borrower must notify the Lender of any
significant change in its corporate structure or operation, such as, in
particular, a change of management or a change in the amount or distribution of
the share capital, brought to the attention of the Borrower in accordance with
applicable legislation and regulations; it being specified that the Lender is
already informed of all the changes foreseen as a result of the Transfer and
expressly consents to the transfer of this agreement to Euro Disney Associés.

 

(b)  the Borrower will, on a yearly basis, submit
their balance sheets, income statements and annexes to CDC within fifteen (15)
days of these being approved by its shareholders, as well as the consolidated
accounts and the consolidated balance of Euro Disney S.C.A.

 

6.2             Negative covenants

 

Until
all amounts owed under this agreement are repaid and paid in full, the Borrower
covenants not to merge with another company without the prior approval of the
Lender. Such approval cannot be refused if:

 

11

 

(i)         the entity resulting from this merger would
take over the full debt contracted or due to be contracted by virtue of this
agreement by the Borrower; and

 

(ii)        immediately after the completion of the
merger, there were no Event of Default; and

 

(iii)       the entity resulting from the merger is
authorised, under the terms of the Master Agreement, to operate the Project.

 

ARTICLE 7.  EVENTS OF DEFAULT

 

7.1             Definition of Events of
Default

 

The
occurrence of any of the following events will constitute an event of default
(an “Event of Default”) of the CDC
Long-Term Subordinated Debt against the Borrower:

 

(a)   any principal or interest amount due to the
Lender in respect of a CDC Long-Term Subordinated Debt is unpaid on its due
date and remains unpaid five (5) Working Days after written notification is
sent to this effect by the Lender to the Borrower;

 

(b)  one of the covenants made by the Borrower in
Article 6 (Covenants) of this
agreement is not met and the Borrower has not made good nor is about to make
good this default within thirty (30) days of the notification sent by the
Lender to the Borrower requesting that the default be made good;

 

(c)   one of the essential representations or
warranties made or given under this agreement is not observed or proves to be
incorrect;

 

(d)  any non-subordinated debt of the Borrower
resulting from a loan of sums of money totalling more than fifteen million two
hundred thousand euro (€15,200,000) is declared due and payable in advance as a
result of the existence of a breach on the part of the Borrower;

 

(e)   a final judgment against the Borrower ordering
the Borrower to pay a sum greater than seventy six million two hundred thousand
euro (€76,200,000) and the Borrower does not make the payment within thirty
(30) days;

 

12

 

(f)   voluntary withdrawal from the operation of the
Second Park for a period greater than six (6) consecutive months except in the
event of closure (i) for seasonal reasons, or (ii) for rebuilding, repair or
maintenance; and 

 

(g)  as of 1 January 2013, Euro Disney S.C.A. or any
of its affiliates contracts any indebtedness from a bank (the “Envisaged Debt”) without the prior consent
of CDC and the effect of contracting such indebtedness renders the ratio
Debt/Consolidated Equity Capital superior to 1 at the date of making the funds
available; it being specified that the Borrower may remedy this Event of
Default within a 30-day period starting as of the date of notification of the
Borrower by CDC.

 

7.2             Consequences of Events of Default

 

If
an Event of Default occurs, the Lender may, subject to full payment and
repayment of all sums due by the Borrower or any other company of the Euro
Disney Group in respect of the Finance Documents, excluding the CDC Agreements,
declare the total outstanding amount of the Second Park CDC Loans then granted
to be immediately due and payable, fifteen (15) days after notification
regarding the event of default has been sent to the Borrower.

 

ARTICLE 8.  CONFIDENTIALITY

 

8.1             The Lender must regard as confidential, and
therefore not disclose in any way to third parties other than his consultants
or Government officials, any data, information or reports that have been
furnished under this agreement by the Borrower, by any entity directly or
indirectly affiliated to the Borrower, or by one of the agents, representatives
or consultants of the Borrower. and CDC cannot disclose to third parties any of
these data, information or reports without the prior written agreement of the
Borrower, which may refuse to give such agreement at its discretion except
where:

 

(i)         such data or information or report has
become public other than by virtue of a violation by the Lender, of the
provisions of this Article; or

 

(ii)        such disclosure is imposed by the law; or

 

(iii)       such disclosure is required by a court
having jurisdiction; or

 

(iv)      such disclosure is explicitly authorised by
virtue of any provision of this  agreement.

 

13

 

8.2             The Lender must take all necessary measures to
ensure that confidential data and information furnished to it under this
agreement by the Borrower, data and information which must be brought to the
attention of its employees, will only be disclosed for the sole purposes of
facilitating the management of this agreement and, in all cases, on condition
that such data or information is regarded as strictly confidential by those
employees.

 

8.3             The provisions of this Article 8 (Confidentiality) will be binding on the
Lender subsequent to the date on which all sums owed by the Borrower to the
Lender by virtue of this agreement have been paid and repaid.

 

ARTICLE 9.  MISCELLANEOUS PROVISIONS

 

9.1             Applicable law –
Power of jurisdiction

 

This
agreement will be governed by French law and construed in accordance therewith.

 

Any
dispute arising from this agreement or its interpretation will be subject to
the exclusive jurisdiction of the competent courts situated within the area of
jurisdiction of the Paris Court of Appeal.

 

9.2             Expenses

 

The
Borrower agree to pay the reasonable expenses incurred by the Lender in
preparing this agreement or any supplemental agreement hereto, including any
expenses incurred by the Lender in transferring its rights in relation with
this agreement, and on presentation of supporting documents.

 

9.3             Cumulative rights and
non-waiver

 

Any
right arising for the Lender from this agreement or any other document
submitted by virtue of this agreement or at the time of the latter, or
pertaining to it by virtue of the law, may be exercised at any time regardless
of its other rights. Should the Lender not exercise any right belonging to it
or exercise such right tardily, this fact will not constitute a waiver on its
part of its entitlement to enjoy that right. Likewise, the total or partial
exercise by the Lender of a right pertaining to it will not prevent it from
exercising this right or another right at a later date.

 

14

 

9.4             Notifications

 

Any
communication, request or notification to be made in accordance with this
agreement or will be written or made in French and will be regarded as valid if
it is submitted in writing or sent by fax and confirmed by registered letter
with acknowledgement of receipt to the [other] party at the addresses indicated
below. Communications, requests or notifications made in accordance with the
provisions of this Article will be sent:

 

•      to the
Borrower at:

 

EURO DISNEY ASSOCIES S.C.A. :

Immeubles
Administratifs [Administrative Buildings]

Route
Nationale 34

77000
Chessy

 

Fao:  Direction
Financements et Achats [Finance and Procurement Department]

 

           Fax: 01 64 74 56 36.

 

•      to the
Lender at:

 

LA CAISSE
DES DÉPÔTS ET CONSIGNATIONS

Direction des Fonds d’Épargne
[Savings Funds Department]

72
avenue Pierre Mendès France

75914
Paris Cedex 13

 

Fao:
Direction Financière [Finance Department]

 

Fax:
01 58 50 07 48.

 

Any
amendment to the above details will only be opposable after notification.

 

For
the purpose of calculating any time period under the terms of this agreement,
the first day that will be used will be the date of receipt by the recipient of
the registered letter with acknowledgement of receipt stated above.

 

9.5             Independence of clauses

 

Even
if any of the provisions of this agreement are held to be null and void or
unenforceable in accordance with the applicable law, the validity, legality and
enforceability of the remaining provisions of this agreement will not in any
way be affected.

 

15

 

9.6             Binding effect

 

This
agreement will be binding on and will inure to the benefit of the Borrower and
Lender, as well as their respective successors or assignees.

 

9.7             Termination

 

In
the absence of the completion of the Transfer or the Realisation of the Capital
Increase or the failure to complete the Transfer by 31 March 2005:

 

(a)   the parties to this agreement will consult each
other for a period of thirty (30) days (the “Time
Period”) for the purpose of finding a solution to the situation thus
encountered;

 

(b)  if no agreement is reached on the expiry of the
Time Period, the provisions of this agreement will be automatically terminated.
Termination will take effect on the date on which the Time Period ends. 

 

9.8             Transfers of rights

 

(a)   The Borrower may not transfer any of its rights
or obligations by virtue of this agreement without obtaining prior written
agreement from the Lender. 

 

(b)  Until 31 December 2004, the Lender may not
transfer any of its rights or obligations under this agreement without
obtaining the prior agreement of the Borrower.

 

As
from 1 January 2005, the Lender may freely transfer any of its rights or
obligations to a financial institution, or any other company created
specifically to this effect, that has a minimum of one branch in one of the
countries where the legal tender on the envisaged transfer date is the euro,
provided this financial institution on the date of transfer has a rating equal
to or greater than A in the system used by Standard & Poor’s or an
equivalent level in other international rating systems, subject to the
following conditions: (i) the financial institution or the concerned entity
shall accede to all the provisions of this agreement and (ii) CDC shall notify
the Borrower pursuant to Article 12.4 (Notifications).

 

9.9             Global Effective Rate

 

In
order to meet the requirements of Articles L. 313–1 and L. 313–2 of the French
Consumer Code and for this purpose only, CDC declares, by way of example, to
the Borrower, which accepts, that the Global Effective Rate applicable to CDC
Long-Term Subordinated Debt, on the basis of a year comprising three hundred
and sixty-five (365) days, will be:

 

16

 

[•] % per
annum and a period rate of [•] %,

 

This
Global Effective Rate has been calculated on the basis of:

 

•       A rate of [•] % per annum; and

 

•       a CDC Long-Term Subordinated Debt of a principal
amount of €[•].

 

 

Done at [•], on [•],

In two ([•])
original copies.

 

	
  For the Borrower:

  	
   

  
	
   

  
	
  EURO DISNEY
  ASSOCIES S.C.A.

  
	
   

  
	
   

  
	
  By: 

  	
   

  	
   

  
	
  Name: [•]

  
	
  Position: [•]

  
	
   

  
	
  For the Lender :

  
	
   

  
	
  LA CAISSE DES DÉPÔTS ET
  CONSIGNATIONS

  
	
   

  
	
   

  
	
  By: 

  	
   

  	
   

  
	
  Name: [•]

  
	
  Position: [•]

  

 

17

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