Document:

Exhibit 4.18 (a)

 

AMENDMENT
TO THE SUBORDINATION AGREEMENT

DATED AS
OF 19 OCTOBRE 1999

 

 

DATED 1 DECEMBER 2004

 

 

BETWEEN

 

The Borrower

 

 

EURO
DISNEY ASSOCIÉS S.C.A.

 

 

AND

 

 

THE SUBORDINATED CREDITOR

 

 

AND

 

 

The Senior Agents and the Senior SCA Agents

 

LA CAISSE DES DÉPÔTS ET CONSIGNATIONS

BNP PARIBAS

CALYON

 

 

AND

 

 

THE SENIOR CREDITORS

 

1

 

BETWEEN

 

1.                            EURO DISNEY S.C.A., a société en
commandite par actions [French limited partnership], with a share
capital of € 10,826,802.92, having its registered office at Immeubles
Administratifs, Route Nationale 34, Chessy 77700, registered on the Meaux Trade
and Companies Register under number 334 173 887, represented by Mr.
Jeffrey R. Speed, duly authorised for the purpose hereof,

 

hereinafter
referred to as “Euro Disney S.C.A.”, or the “Borrower”,

 

2.                            LA CAISSE DES DEPOTS ET
CONSIGNATIONS, a
special financial institution created by the Act of 28 April 1816, governed by
sections L. 518-2 et seq. of the Monetary and
Financial Code, having its principal office at 56 Rue de Lille, 75007 Paris,
represented by Mr. Jean François de Caffarelli, duly authorised for the purpose
hereof,

 

hereinafter
referred to as “CDC”,

 

3.                            BNP PARIBAS, a société
anonyme having its principal office at 16 Boulevard des Italiens,
75009 Paris, represented by Mrs.
Martine Aubert and Mr. Jean Olivier, duly authorised for the
purpose hereof,

 

4.                            CALYON, a société
anonyme having its principal office at 9 Quai du Président Paul
Doumer, 92920 Paris La Défense, represented by Mr. Michel Anastassiades and Mr. Jean-Hervé Cariou,
duly authorised for the purpose hereof,

 

It is hereby
specified that:

 

(i)                                     Caisse des Dépôts et Consignations
is acting in its capacity as lender in respect of the CDC Phase I Loans, and in
that of Senior Agent and Senior SCA Agent;

 

(ii)                                  BNP Paribas is acting in its
capacity as creditor, Senior Agent and Senior SCA Agent, on its own behalf and
on behalf of the creditors under the Phase IA Credit Facility Agreement;

 

(iii)                               Calyon is acting in its capacity as
creditor, Senior Agent and Senior SCA Agent, on its own behalf and on behalf of
the creditors in respect of the Phase IB Credit Facility Agreement, Phase IA
Partners’ Advances, Phase IB Advances and the Lease Agreement, and

 

(iv)                              CDC is acting in its capacity as
lender in respect of the CDC Second Park Loans;

 

the creditors
referred to in paragraphs (i) to (iii) above being hereinafter referred to
collectively as the “Senior  Creditors”, CDC as referred to in paragraph (iv) above being
hereinafter referred to as the “Subordinated Creditor”,
and together with all of the parties to this agreement, as the “Parties”.

 

2

 

TABLE OF CONTENTS

 

	
  ARTICLE 1.

  	
  DEFINITIONS

  
	
   

  	
   

  
	
  ARTICLE 2.

  	
  COMING INTO EFFECT OF THE NEW SUBORDINATION
  AGREEMENT

  
	
   

  	
   

  
	
  ARTICLE 3.

  	
  TERMINATION OF THE AMENDMENT

  
	
   

  	
   

  
	
  ARTICLE 4.

  	
  APPLICABLE LAW – JURISDICTION

  

 

 

3

 

PREAMBLE :

 

(A)                               Pursuant to the Senior SCA Finance
Facility, the Borrower has obtained certain loans, advances or credit
facilities and is liable for payments under sub-lease agreements.

 

(B)                               Pursuant to the Senior Finance Facility,
(i) the Borrower, some of the Borrower’s subsidiaries, Euro Disneyland SNC and
the Hotel SNCs have obtained certain loans, advances or credit facilities, (ii)
the Borrower is liable for payments under lease agreements and (iii) Euro
Disney Associés SNC is liable for payments under lease agreements.

 

(C)                               Pursuant to four agreements dated 30
September 1999 between the Borrower and CDC, CDC has extended loans to the
Borrower (in tranches A to D) for an aggregate amount of three hundred and
eighty-one million one hundred and twenty-two thousand euros
(€ 381,122,000) in principal, to finance the construction of the Second
Theme Park (the “Second Park CDC Loan Agreements”).

 

(D)                               Pursuant to a subordination
agreement entered into on 19 October 1999, between, inter alia,
the Borrower, CDC, BNP Paribas and Calyon, CDC has agreed to subordinate its
rights to repayment of the principal and payment of interest and fees under the
Second Park CDC Loan Agreements to the prior full repayment of all sums owed
under the Senior Finance Facilities and the Senior SCA Finance Facilities (the “Subordination Agreement”).

 

(E)                                 Subsequent to the financial problems
encountered by Euro Disney Group, a memorandum of agreement dated 8 June 2004,
which purpose is to agree on the necessary measures to take in order to restore
its financial balance, entered into among Euro Disney S.C.A., EDL Hôtels
S.C.A., Euro Disneyland S.N.C., Hôtels SNC, The Walt Disney Company, CDC, and
Phase IA Banks, Phase IB Banks, Phase IA Partners and Phase IB Partners,
respectively represented by their agents BNP Paribas and Calyon, as the case
may be, has been approved by the steering committee and modified after a letter
sent by Euro Disney S.C.A. to CDC, and to the Phase IA Banks, Phase IB Banks,
Phase IA Partners and Phase IB Partners on the 20 Septembre 2004, the
memorandum as modified by the aforementioned letter being accepted by way of a
letter signed by all the parties on the 30 September 2004 (the “Memorandum of Agreement”).

 

(F)                                 For the purpose of implementing the
Memorandum of Agreement, CDC and Euro Disney S.C.A. entered into four
agreements amending and restating the Second Park CDC Loan Agreements on the 1
December 2004, the aforementioned four agreements governing the loans (namely
Tranche A, Tranche B, Tranche C and Tranche D) (the “Amended and
Restated Second Park CDC Loan Agreements”), the aforementioned loans
being granted by CDC to Euro Disney S.C.A. to finance the Second Theme Park
(the “Second Park CDC Loans”)

 

(G)                               Pursuant to the Memorandum of
Agreement, the parties to this Subordination Agreement have agreed to enter
into this amendment to the Subordination Agreement (the “Amendment”)
which will provide for the period starting on the Amendment signing date and
ending on the Transfer completion date.

 

(H)                               In addition, the parties to this
Subordination Agreement have, as of the date hereof, entered into an amended
and restated subordination agreement which terms and conditions will replace
the Subordination Agreement (the “New Subordination Agreement”).
The New Subordination Agreement will become effective on the Transfer
completion date.

 

4

 

NOW THEREFORE THE PARTIES AGREE
AS FOLLOWS

 

ARTICLE 1.                                              DEFINITIONS

 

1.1                              For the application of this Amendment, the
terms and expressions defined in the Subordination Agreement will have the
meaning ascribed to them in the Subordination Agreement, the preamble or the
Memorandum of Agreement subject to the stipulations of paragraph 1.2 below.

 

1.2                              The definition “Free Cash Flow” as it appears
in paragraph 1.1 of the Subordination Convention is replaced by the following
definition:

 

“Free Cash Flow” means the sum
of:

 

(i)                        any available instrument or immediately convertible into cash in the
possession of the Borrower or any of its controlled affiliates within the
meaning of article L. 233-3 of the Commercial Code; and

 

(ii)                    any amount advanced under any form, directly or indirectly, by the
Borrower to a non-controlled affiliate which amount’s immediate repayment is
contractually demandable within the limits of the such affiliate as stated in
(i) above.

 

ARTICLE
2.                                              COMING INTO EFFECT OF THE NEW SUBORDINATION
AGREEMENT

 

At the date of the completion of
the Transfer, the New Subordination Agreement will come into effect.

 

ARTICLE
3.                                              TERMINATION OF THE AMENDMENT

 

This amendment will be terminated:

 

(i)                                              in case of the coming into effect of the New
Subordination Agreement pursuant to Article 2 above;

 

(ii)                                           in case of the failure of the Realisation of
the Capital Increase or of the failure of the completion of the Transfer at the
expiration of the 30-day period following 31 March 2005 pursuant to paragraph
7.7 of the New Subordination Agreement.

 

5

 

ARTICLE
4.                                              APPLICABLE LAW – JURISDICTION

 

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

 

4.2                                          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.

 

Made in Paris,

 

On the 1st of December 2004,

 

In seven (7) original copies.

 

For the Borrower:

 

	
  EURO DISNEY S.C.A.

  
	
   

  
	
   

  
	
  By: 

  	
   

  	
   

  
	
  Name: Jeffrey R. Speed

  

 

 

For the Agents, the Senior Agents, the Priority Lenders and the
Subordinated Lenders:

 

	
  LA
  CAISSE DES DÉPÔTS ET CONSIGNATIONS

  
	
   

  
	
   

  
	
  By: 

  	
   

  	
   

  
	
  Name: Jean
  François de Caffarelli

  

 

 

	
  BNP PARIBAS

  
	
   

  
	
   

  
	
  By: 

  	
   

  	
   

  
	
  Name: Martine Aubert
  and Jean Olivier

  

 

 

	
  CALYON

  
	
   

  
	
   

  
	
  By: 

  	
   

  	
   

  
	
  Name: Michel Anastassiades and
  Jean-Hervé Cariou

  

 

6Exhibit 4.18 (b)

 

 

AMENDED AND RESTATED

SUBORDINATION AGREEMENT

 

 

DATED 1 DECEMBER 2004

 

 

BETWEEN

 

The Borrower

 

EURO DISNEY ASSOCIÉS SCA

 

 

AND

 

 

THE SUBORDINATED CREDITOR

 

 

AND

 

 

The Senior Agents and the Senior
SCA Agents

 

LA CAISSE DES DÉPÔTS ET CONSIGNATIONS

BNP PARIBAS

CALYON

 

 

AND

 

THE SENIOR CREDITORS

 

 

	
  ASSOCIATION D’AVOCATS A LA
  COUR DE 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

  

 

 

 

PROJET GLN

 

1

 

BETWEEN

 

1.                            EURO DISNEY
ASSOCIES, a
partnership limited by shares, with a share capital of € 109,997,848.20,
having its registered office at Immeubles Administratifs, Route Nationale 34,
Chessy 77700, registered on the Meaux Trade and Companies Register under number
397 471 822, represented by Mr. Jeffrey R. Speed, duly authorised for
the purpose hereof,

 

hereinafter referred to as “Euro Disney S.C.A.” or the “Borrower”,

 

2.                            LA CAISSE DES
DEPOTS ET CONSIGNATIONS, a special financial institution created by the Act of 28 April 1816,
governed by sections L. 518-2 et seq.
of the Monetary and Financial Code, having its principal office at 56 Rue de
Lille, 75007 Paris, represented by Mr. Jean François de Caffarelli, duly
authorised for the purpose hereof,

 

hereinafter referred to as “CDC”,

 

3.                            BNP PARIBAS, a société anonyme having its principal office at 16 Boulevard
des Italiens, 75009 Paris, represented by Mrs. Martine Aubert and Mr. Jean
Olivier, duly authorised for the purpose hereof,

 

4.                            CALYON, a société anonyme having its principal office at 9 Quai du
Président Paul Doumer, 92920 Paris La Défense, represented by Mr. Michel
Anastassiades and Mr. Jean-Hervé Cariou, duly authorised for the purpose
hereof,

 

It is hereby specified that:

 

(i)                                     Caisse des Dépôts et Consignations
is acting in its capacity as lender in respect of the CDC Phase I Loans, and in
that of Senior Agent and Senior SCA Agent;

 

(ii)                                  BNP Paribas is acting in its
capacity as creditor, Senior Agent and Senior SCA Agent, on its own behalf and
on behalf of the creditors under the Phase IA Credit Facility Agreement;

 

(iii)                               Calyon is acting in its capacity
as creditor, Senior Agent and Senior SCA Agent, on its own behalf and on behalf
of the creditors in respect of the Phase IB Credit Facility Agreement, Phase IA
Partners’ Advances, Phase IB Advances, the Sublease Agreement and the Lease
Agreement, and

 

(iv)                              CDC is acting in its capacity as
lender in respect of the CDC Second Park Loans;

 

the creditors referred to in paragraphs (i) to (iii)
above being hereinafter referred to collectively as the “Senior  Creditors”,
CDC as referred to in paragraph (iv) above being hereinafter referred to as the
“Subordinated Creditor”, and
together with all of the parties to this agreement, as the “Parties”.

 

2

 

TABLE OF CONTENTS

 

	
  1.

  	
  DEFINITIONS

  
	
   

  	
   

  
	
  2.

  	
  SUBORDINATION

  
	
   

  	
   

  
	
  3.

  	
  GENERAL PROVISIONS

  

 

3

 

PREAMBLE:

 

(A)          Pursuant to the Senior SCA Finance Facility,
the Borrower has obtained certain loans, advances or credit facilities and is liable
for payments under lease agreements.

 

(B)          Pursuant to the Senior Finance Facility, (i)
the Borrower, some of the Borrower’s subsidiaries, Euro Disneyland SNC and the
Hotel SNCs have obtained certain loans, advances or credit facilities and (ii)
the Borrower is liable for payments under lease agreements.

 

(C)          Pursuant to four agreements dated 30
September 1999 between Euro Disney S.C.A. and CDC, CDC has extended loans to
Euro Disney S.C.A. (in tranches A to D) for an aggregate of three hundred and
eighty-one million one hundred and twenty-two thousand euros
(€ 381,122,000) in principal, to finance the construction of the Second
Theme Park (the “Second Park CDC Loans
Agreements”).

 

(D)          Pursuant to a subordination agreement entered
into on 19 October 1999, between, inter alia,
Euro Disney S.C.A., CDC, BNP Paribas and Calyon, CDC has consented to
subordinate its rights to repayment of the principal and payment of interest
and fees under the Second Park CDC Loans Agreements to the prior full repayment
of all sums owed under the Senior Finance Facilities and the Senior SCA Finance
Facilities (the “Original Subordination
Agreement”). The Original Subordination Agreement has been amended
by an agreement dated as of the date hereof, which purpose is to modify the
terms of the Original Subordination Agreement for the period ranging from the
signature date of said amendment to the date of completion of the Transfer (the
“Amendment”). The Amendment is
destined to be terminated as soon as the Subordination Agreement (as defined
below) comes into effect.

 

(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. and 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, 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 Partners, 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”).

 

(F)           For the purpose of implementing the
Memorandum of Agreement, CDC and Euro Disney S.C.A. entered into four
agreements amending and restating the Second Park CDC Loans Agreements on 1
December 2004, the aforementioned four agreements governing the loans (namely
Tranche A, Tranche B, Tranche C and Tranche D), and will enter into an
agreement entitled “Tranche E” no later than on the Share Capital Increase Date
(the “Amended and Restated Second Park CDC
Loans Agreements”), the aforementioned loans being granted by CDC to
Euro Disney S.C.A. to finance the Second Theme Park (the “Second Park CDC Loans”).

 

4

 

(G)          The Parties wish to enter into this agreement
(the “Subordination Agreement”) in
order to:

 

(i)               Amend and restate the provisions of the Original Subordination
Agreement to take into account the contents of the Memorandum of Understanding
and the Amended and Restated Second Park CDC Loans Agreements;

 

(ii)              set forth how the subordination provisions contained in clause 7 of the
Amended and Restated Second Park CDC Loans Agreements are to be implemented;

 

(iii)             set forth the conditions under which the Senior Creditors may make use
of their acceleration rights, if applicable, under finance agreements
pertaining to the Senior Finance Facilities (the “Priority Events of Default”); and

 

(iv)             set forth the conditions on which CDC may apply and enforce the
provisions of clause 10 (Event of Default)
of each of the Amended and Restated Second Park CDC Loans Agreements.

 

5

 

NOW, THEREFORE, IT HAS BEEN AGREED AS FOLLOWS

 

1.         DEFINITIONS

 

1.1                     For the purpose of this agreement, the terms and phrases defined in
the Amended and Restated Second Park CDC Loans Agreements not explicitly
defined in clause 1 hereof or elsewhere in this Subordination Agreement shall
have the meaning ascribed to them in the Amended and Restated Second Park CDC
Loans Agreements or the Common Agreement, as the case may be, and the terms and
phrases below shall have the following meanings:

 

“Senior Agents” means (i)
having regard to the Phase IA Credit Facility Agreement, BNP Paribas or its
successor, (ii) having regard to the Phase IB Credit Facility Agreement, the
Phase IA Partners’ Advances and the Phase IB Advances, Calyon or its successor,
(iii) having regard to the Phase I CDC Loans, CDC or its successor, and (iv)
having regard to the Lease Agreement, Calyon or its successor, in its capacity
as agent of the Euro Disneyland SNC partners.

 

“Senior SCA Agents” means
(i) having regard to the Phase IA Credit Facility Agreement, BNP Paribas or its
successor, (ii) having regard to the Agreement on the Extension of Ordinary
Loans, CDC and (iii) having regard to the Lease Agreement, Calyon or its
successor, in its capacity as agent of the Euro Disneyland SNC partners.

 

“Priority Event of Default”
has the meaning ascribed to it in the Preamble of this Subordination Agreement.

 

“Senior Finance Facilities”
means the Phase IA Credit Facility Agreement, Phase IB Credit Facility
Agreement, the Phase IA Partners’ Advances, the Phase IB Advances, the Phase I
CDC Loans and the Lease Agreement.

 

“Senior SCA Finance Facilities”
means (i) the sums owed by the Borrower in respect of the Phase IA Credit
Facility Agreement, (ii) the ordinary loans extended under the Agreement on the
Extension of Ordinary Loans, and (iii) the Lease Agreement.

 

“Shortage of Free Cash Flow”
means, on any given Annual Payment Date, the amount by which Free Cash Flow on
said date falls short of the aggregate of all sums due on that same date in
respect of the Second Park CDC Loans and of all sums payable under the Senior
Finance Facilities during the Period (as defined in clause 2.1 (C) below)
immediately following the said date.

 

“Freeze Period” has the
meaning ascribed to it in clause 2.4.1. below.

 

“CDC Suspension Period”
has the meaning ascribed to it in clause 2.4.2.1. below.

 

“Free Cash Flow” means the
aggregate of:

 

6

 

(i)                           all cash and readily convertible
securities held by Euro Disney Associés or any subsidiary controlled by it
within the meaning of section L. 233-3 of the Commercial Code; and

 

(ii)                        all loans, in any form whatsoever,
either direct or indirect, by Euro Disney S.C.A. or Euro Disney Associés to a
subsidiary not under either one of these companies’ control, which are
immediately due and payable pursuant to an agreement, for up to the said
subsidiary’s available cash, as defined 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), 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.

 

1.2                                         For the purpose of this agreement, all references to (i) “sums owed”,
“amounts owed”, “sums due” or “amounts due” and (ii) “non payment” or “default”
shall refer respectively to (a) sums or payments the due date of which has been
or may be deferred and (b) the deferral of the maturity of any sum or amount or
payment in accordance with the provisions of clauses 16 and 13 of the said
agreements, respectively. Likewise, any reference to a maturity date or due
date shall refer to the original maturity date in the event that same is
deferred.

 

2.                                                SUBORDINATION

 

2.1                                         Seniority, preference and priority of the Senior Creditors over the
Subordinated Creditor in respect of the Second Park CDC Loans

 

The Subordinated Creditor and the Borrower undertake, in favour of the
Senior Creditors who accept:

 

(A)                    that, subject to the provisions of
clause 2.2 below, in the event that forced liquidation or other subsequently
substituted proceedings are instituted against the Borrower, and without this
bearing on the effect of the hypothecation provided for in clause 8 (Hypothecation) of each of the Amended and
Restated Second Park CDC Loans Agreements, repayment of the principal or
payment of interest and fees to the Subordinated Creditor in respect of the
Second Park CDC Loans shall be subordinated to the prior settlement of all
creditors’ claims arising from the Senior SCA Finance Facilities.

 

(B)                      that, in the event that any
payment sum due and payable in respect of any of the Senior Finance Facilities
should not be paid on time, the due date of all interest, fees and principal
owed in respect of the Second Park CDC Loans shall be deferred until the said
default on the Senior Finance Facility is cured or until, despite the said
default, the creditor or creditors under the said Senior Finance Facility
consider that the payment of interest, fees and principal has been effected;
however, the Subordinated Creditor shall have no power to determine that such
payment has been effected;

 

7

 

(C)                      that if, on an Annual Payment
Date, the Borrower’s manager determines that, on the basis of the Free Cash
Flow on the said date, payment of all sums owed to the Subordinated Creditor
and due on the said date in respect of the Second Park CDC Loans would make it
impossible to pay any sum whatsoever due under the Senior Finance Facilities
for a period of six (6) months from that Annual Payment Date (the “Period”), the due date of the portion of
interest, fees or principal payable in respect of the Second Park CDC Loans
corresponding to the reported Shortage of Free Cash Flow shall be deferred to
the date on which the Free Cash Flow shall make the said payment possible
without causing a likely default on the Senior Finance Facilities during the
remaining term of the Period should the reconstitution of the Free Cash Flow intervene
prior or subsequent to the expiration of such Period (notwithstanding any other
stipulation of the Amended and Restated Second Park CDC Loans Agreements).

 

(D)                     that, for as long as there are
sums outstanding under the Senior Finance Facilities, the Subordinated Creditor
shall under no circumstances accelerate the maturity of the Second Park CDC
Loans, except on the conditions set out in clause 2.4.2. below, nor shall it
solicit or accept any prepayments whatsoever of sums owed in respect of the Second
Park CDC Loans; and

 

(E)                       that, for as long as there remains
any sum owed, due and outstanding under the Senior Finance Facilities, the
Borrower undertakes to the Senior Creditors that all sums due and payable under
the Senior Finance Facilities shall have seniority, preference and priority and
that it shall refrain from repaying all or part of the Second Park CDC Loans or
from paying any interest or fees in respect of the Second Park CDC Loans.

 

It is specified, for the purpose of this agreement, that sums owed
under the Senior Finance Facilities and the Senior SCA Finance Facilities shall
be considered paid only if payment is final and in immediately available funds.

 

8

 

2.2                                         Forced liquidation of the Borrower

 

2.2.1                               In the event that any sums or assets are distributed or allocated in
connection with the forced liquidation of the Borrower, all payments to which
the Subordinated Creditor would have been entitled in the absence of this
agreement in respect of the Second Park CDC Loans shall be allotted to the
creditors under the Senior SCA Finance Facilities for as long as sums are owed
under the Senior SCA Finance Facilities, until the said creditors have received
all sums owed to them under the Senior SCA Finance Facilities.

 

2.2.2                               Accordingly, for as long as sums are owed under the Senior SCA
Finance Facilities, the Subordinated Creditor shall assign and transfer to
Calyon, for the account of the Senior SCA Agents, acting on behalf of the
Senior SCA Finance Facilities creditors, all payments and sums of any kind
which may be allotted to them in respect of the Second Park CDC Loans pursuant
to forced liquidation proceedings against the Borrower, no later than fifteen
(15) days from receiving same.

 

2.2.3                               The provisions of clauses 2.2.1 and 2.2.2. above shall under no
circumstances affect the rights of the Subordinated Creditor to benefit from
the hypothecation in its favour as from 2017 on the Second Theme Park and, in
that regard, the Subordinated Creditor shall in any event be entitled to the
proceeds of any enforcement of the hypothecated property up to the sums owed in
respect of the Second Park CDC Loans and shall under no circumstances be
obliged to turn over some or all of such proceeds to the Senior Creditors.

 

2.3                                         Failure to pay on time a sum owed under the Senior Finance
Facilities 

 

2.3.1                               In the event that a sum owed under the Senior Finance Facilities is
not paid when due, the Senior Agent concerned shall promptly notify the
Borrower, CDC and the other Senior Agents thereof. As from the date the said
notice is received and until the Borrower and CDC have been notified again by
the Senior Agent concerned either that the sum concerned has been paid or that
the Priority Creditor or Creditors concerned have consented to payment being
made to the Subordinated Creditor in accordance with the provisions of clause
2.1 (B) above, the Borrower shall refrain from making any payments whatsoever
in respect of the Second Park CDC Loans and the Subordinated Creditor shall
refrain from soliciting such payments.

 

2.3.2                               In the event that the Borrower becomes aware of a Shortage of Free
Cash Flow five (5) Business Days before a date on which a payment has to be
made to the Subordinated Creditor in respect of the Second Park CDC Loans, the
Borrower shall promptly notify CDC and the Senior Agents thereof and of the
failure to pay on time all or part of the sum owed to the Subordinated Creditor
in respect of the Second Park CDC Loans. The said notice shall mention:

 

9

 

(i)         the amount of Free Cash Flow on the date concerned;

 

(ii)                        the maturity schedule of sums due
and payable under the Senior Finance Facilities during the Period;

 

(iii)                     the extent of the Shortage of Free
Cash Flow and, if applicable, the sum that will be paid on the date concerned
in respect of the Second Park CDC Loans.

 

As soon as the amount of
Free Cash Flow on any given date makes it possible to pay the sum still owed to
the Subordinated Creditor under the Second Park CDC Loans, the due date of
which had been deferred in accordance with the foregoing provisions, without
defaulting on the sums owed under the Senior Finance Facilities for the
remaining term of the Period, the Borrower shall again notify CDC and the Senior
Agents to update the information contained in the preceding notice and shall
pay the sum owed to the Subordinated Creditor on the date the said notice is
sent.

 

2.4                                           Event of Default

 

2.4.1                                 Priority Event of Default

 

If a Priority Event of Default occurs, and without prejudice to the
provisions of clauses 2.1., 2.2. and 2.3. which shall remain in force, the
Senior Agent concerned shall notify the Borrower, CDC and the other Senior
Agents thereof. As from the date of receipt of such notice by the Borrower and
CDC, a period of no more than 90 days shall run (the “Freeze Period”) until the Priority Event of
Default no longer continues. During the Freeze Period, the Borrower shall
refrain from paying all or part of any sums owed under the Amended and Restated
Second Park CDC Loans Agreements, whether due or not, to the Subordinated
Creditor, which shall refrain from soliciting such payment, either directly or
indirectly.

 

Any Senior Agent shall be entitled to issue one or more of the
foregoing notices at any time, concerning one or more Priority Events of
Default. However, if, during a period of 180 consecutive days, several Priority
Events of Default occur which are caused by the same event or occurrence, the
Senior Agent concerned shall have the option to issue a single notice
pertaining to the said Priority Events of Default.

 

2.4.2                                 Event of Default pertaining to the Second Park CDC Loans

 

2.4.2.1                    CDC shall notify the Senior Agents
and the Senior SCA Agents if one of the Events of Default referred to in clause
10 (Event of Default) of each of
the Amended and Restated Second Park CDC Loans Agreements occurs. As from the
date of receipt of the said notice by the Senior Agents and the Senior SCA
Agents, a period of up to 90 days shall run (the “CDC Suspension Period”) until the Event of Default no longer
continues. The Subordinated Creditor undertakes to refrain from soliciting or
accepting prepayment by the Borrower of the Second Park CDC Loans until the
expiry of the said CDC Suspension Period.

 

10

 

2.4.2.2                    The provisions of clause 2.4.2.1.
above notwithstanding, but subject to the other provisions of this agreement,
the Subordinated Creditor shall be entitled to immediately demand that the
Borrower prepay the Second Park CDC Loans in the event that either of the
Senior Creditors should accelerate the maturity of sums owed to it under a
Senior Finance Facility.

 

2.5                                        Refunds by the Subordinated Creditor

 

In the event that the Borrower makes payments in breach of the
provisions of this clause 2, the Subordinated Creditor undertakes to
immediately remit sums received as payment to Calyon, acting on behalf of the
Senior Agents and the Senior Creditors, for the purpose of distributing such
payments among them.

 

2.6                                        Payments to the Subordinated Creditor

 

2.6.1                              Except in the instances referred to in clauses 2.1. through 2.5.,
inclusive, sums due in respect of the Second Park CDC Loans may be paid in
accordance with the provisions thereof.

 

2.6.2                              Following the payment to Senior Creditors of all sums owed under the
Senior Finance Facilities, the Senior Creditors shall transfer to Calyon,
acting on behalf of the Senior Agents, if applicable, any sum received by the
Senior Creditors pursuant this agreement in excess of sums owed under the
Senior Finance Facilities and not allocated to the said payment. Calyon shall
remit the sums concerned to the Subordinated Creditor.

 

3.                                                GENERAL PROVISIONS

 

3.1                                        Failure by the Senior Creditors to exercise, or a delay in
exercising, any right or recourse shall not be construed as a waiver of the
said right or recourse. In particular, the rights of the Senior Creditors
hereunder shall in no circumstances be affected or modified as a result of a
payment by the Borrower in breach of the provisions of this agreement,
including if one or more Senior Creditors refrain from taking action despite
being aware of this fact.

 

3.2                                        Should the Subordinated Creditor assign or transfer in any manner
whatsoever any of its rights and obligations in respect of the Second Park CDC
Loans and in accordance with clause 12.7 (Transfer
of rights) of each of the Amended and Restated Second Park CDC Loans
Agreements, the Subordinated Creditor shall, prior to such transfer, procure
the transferee’s consent to be bound by this agreement, as evidenced by the
execution of a joinder agreement in the form of the model attached hereto as
appendix A. The said joinder agreement shall be promptly notified by the
Subordinated Creditor to the Senior Agents.

 

11

 

3.3                                        Should a Priority Creditor assign its receivables under a Senior Finance
Facility, the said creditor shall procure that the assignee executes a joinder
agreement in the form of the model attached hereto as appendix B, and the said
agreement shall be duly notified by the Senior Agent concerned to the Borrower
and CDC.

 

3.4                                        The Subordinated Creditor and the Borrower represent that the
undertakings made by them in this agreement shall inure to the benefit of the
successors and assigns of the creditors under the Senior Finance Facilities
and, should it be necessary, respectively waive their right to cancel the
undertakings pertaining to the provisions contained in the preamble of this
agreement.

 

3.5                                        The Parties hereby agree that, in accordance with the Transfer
contemplated by Euro Disney SCA and Euro Disney Associés, Euro Disney S.C.A.
may transfer its rights and obligations arising from this agreement.

 

Should the Transfer be completed, the Parties
undertake to approve any amendment to this agreement that may be required to
evidence the assumption by Euro Disney Associés of all of the obligations of
Euro Disney S.C.A. under this agreement.

 

3.6                                        This Subordination Agreement will come into effect at the completion
of the Transfer.

 

3.7                                        This Subordination Agreement amends and restates the Original
Subordination Agreement and the Amendment, which shall cease to be in effect as
from the date of the completion of the Transfer (subject to the below
provisions).

 

In the event that the Capital Increase is not
completed or that the Transfer is not completed as at 31 March 2005:

 

(i)                           the Parties shall negotiate over a
period of thirty (30) days (the “Negotiating
Period”), in order to resolve the resulting situation;

 

(ii)                        in the absence of an agreement at
the end of the Negotiating Period, the provisions of this Subordination
Agreement shall be automatically cancelled. Cancellation shall take effect as
at the expiry date of the Negotiating Period and the provisions of the Original
Subordination Agreement shall apply again and that independently from the
provisions of the Amendment.

 

12

 

3.8                                        The validity, interpretation and performance of this agreement shall
be governed by French law.

 

3.9                                        This agreement shall remain in effect for as long as any sum other
than the Phase I CDC Loans is owed to the Senior Creditors under the Senior
Finance Facilities.

 

3.10                                 The
courts in the district of the Paris Court of Appeal shall have jurisdiction
over all disputes arising out of this agreement and any related matters or
matters which are a consequence hereof.

 

3.11                                 Any
notice given in performance of this agreement shall be considered valid if sent
by fax and confirmed by registered letter with advice of delivery to the
addresses below:

 

•                  Having regard to Euro Disney
Associés:

 

Euro Disney Associés

Immeubles Administratifs

Route Nationale 34

77700 Chessy

 

For the attention of: Direction Financements et
Achats

Fax: 01 64 74 56 36

 

•                  Having regard to the Senior
Agents, Senior SCA Agents and the Subordinated Creditor:

 

Caisse des Dépôts et Consignations

Direction des Fonds d’Epargne

72 Avenue Pierre Mendès France

75914 Paris Cedex 13

 

For the attention of: Direction Financière

Fax: 01 58 50 07 48

 

BNP Paribas

E.C.E.P.

ACI : CHD02B1

Project Finance

37 Place du Marché Saint Honoré

75001 Paris

 

Fax: 01 42 98 19 89

 

13

 

Calyon

9 Quai du Président Paul Doumer

92920 La Défense

 

For the attention of: Jean-Hervé Cariou / Juliette
Legrand

Fax: 01 41 89 18 92 / 01 41 89 18 63

 

Any Party may change its address by sending a notice as indicated
above.

 

All notices shall take effect upon receipt by the Parties to which they
are addressed.

 

Made in Paris,

 

On 1 December 2004,

 

In seven (7) original copies.

 

For the Borrower:

 

EURO DISNEY ASSOCIES

 

 

	
  By:

  	
   

  	
   

  
	
  Name: Jeffrey R. Speed

  

 

14

 

For the Agents, Senior Agents, Senior
Creditors and the Subordinated Creditor:

 

CAISSE DES DEPOTS ET CONSIGNATIONS

 

 

	
  By:

  	
   

  	
   

  
	
  Name: Jean François de Caffarelli

  

 

BNP PARIBAS

 

 

	
  By:

  	
   

  	
   

  
	
  Name: Martine Aubert and Jean Olivier

  

 

CALYON

 

 

	
  By:

  	
   

  	
   

  
	
  Name: Michel Anastassiades and Jean-Hervé Cariou

  

 

15

 

APPENDIX A

 

Form certification of consent to be bound the 

Subordination Agreement (assignment by the
Subordinated Creditor)

 

I, the undersigned, [Mr/Mrs] [•], residing at [•], in my capacity as
the legal representative of [•], a [•] with a share capital of € [•], having
its registered office at [•], registered on the [•] Trade and Companies
Register under number [•], having regard to the assignment by Caisse des Dépôts
et Consignations to [assignee] of
its claim of € [•] in principal against [Euro Disney Associés], a [•] with
a share capital of € [•], having its registered office at [•], registered on
the [•] Trade and Companies Register under number [•], in respect of the [loan[•]] of € [•] in principal
extended under an amended and restated loan agreement dated [•] between Caisse
des Dépôts et Consignations and Euro Disney S.C.A., in its capacity as
borrower,

 

hereby confirm that [•] consents to all of the provisions of the
Subordination Agreement entered into on [•] between Euro Disney Associés, the
Subordinated Creditor and the Senior Creditors (as those terms are defined in
the said agreement) and to be fully bound by same.

 

Executed at [•]

On [•]

In two original copies.

 

 

For the transferee:

[•]

 

 

	
  By:

  	
   

  	
   

  
	
  Name: [•]

  
	
  Title: [•]

  

 

16

 

APPENDIX B

 

Form certification of consent to be bound by the 

Subordination Agreement (assignment by the Senior
Creditor)

 

I, the undersigned, [Mr/Mrs] [•], residing at [•], in my capacity as
the legal representative of [•], a [•] with a share capital of € [•], having
its registered office at [•], registered on the [•] Trade and Companies
Register under number [•], having regard to the assignment by [assigning senior creditor] to [assignee] of its claim of € [•] in
principal against [Disney Borrower],
a [•] with a share capital of € [•], having its registered office at [•],
registered on the [•] Trade and Companies Register under number [•], in respect
of the [loan[•]] of € [•] in
principal extended under a [•] loan agreement dated [•] between [Senior Creditor concerned] and [Disney Borrower concerned],

 

hereby confirm that [•] consents to all of the provisions of the
Subordination Agreement entered into on [•] between Euro Disney Associés, the
Subordinated Creditor and the Senior Creditors (as those terms are defined in
the said agreement) and to be fully bound by same.

 

Executed at [•]

On [•]

In two original copies.

 

 

For the transferee:

[•]

 

 

	
  By:

  	
   

  	
   

  
	
  Name: [•]

  
	
  Title: [•]

  

 

17

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