Document:

Exhibit 4.1

 

TRANSLATION
FOR INFORMATION PURPOSES ONLY

 

 

To all the Banks under the Phase IA Credit
Agreement

 

20 September 2004

 

 

Ladies and Gentlemen:

 

We refer to the Memorandum of Agreement (“MOA”) signed
by The Walt Disney Company, Euro Disney SCA, Caisse des Dépôts et Consignations
(“CDC”) and approved by the Steering Committee on 8 June, 2004. Terms defined
in the MOA have the same meanings when used in this letter.

 

Based on information provided to us by the Agents, we
understand that the MOA was approved by less than all of the Creditors as of
July 31, 2004.

 

I.                                         Amended
MOA

 

For the purpose of seeking approval of the MOA as
amended in accordance with paragraphs (a) through g) below (the “Amended MOA”)
by 27 September 2004 and thereafter implementing the Amended MOA as promptly as
practicable, we hereby offer (the “Offer”) to each Creditor, such Offer
expiring at 6:00 pm (Paris time) on 27 September 2004, to amend the terms of
the MOA as follows:

 

(a)                                 Clause
3.7 of the MOA shall be amended to provide with effect from the Effective Date
(subject to the proviso at the end of this paragraph a)) that (i) the interest
rate payable pursuant to the Phase IA Credit Facility Agreement, the Phase IB
Credit Facility Agreement and Tranche C of the Phase IB Advances will be
increased as set forth in Exhibit 1 hereto and that (ii) the interest rate
applicable to a € 48,300,000 principal amount due under the CDC Ordinary
Loans and CDC Participatifs Loans will be
increased as set forth in Exhibit 1 hereto; provided that interest accrued from
the Effective Date at the increased interest rates shall be paid for the first
time on the fifth day following the Share Capital Increase Date and thereafter
on each interest payment date;

 

(b)                                Clause
3.7 of the MOA shall be amended to provide that the final repayment date under
the Phase IB Credit Facility Agreement and Tranche C of Phase IB Advances shall
be 5 November 2012;

 

(c)                                 the
second paragraph of Clause 7.1.1 of the MOA shall be amended by the
substitution of “30 September 2004” for “the expiry of the said one month
period”;

 

(d)                                the
proviso to the third paragraph of Clause 7.1.1 of the MOA shall be amended as
follows: “provided that the amount outstanding thereunder shall at no time fall
below € 120 million and shall be reduced to € 110 million as at the
Effective Date, the € 10 million shortfall being permanently forgiven by
TWDC as at the Effective Date.”;

 

(e)                                 Clause
7.4 of the MOA shall be amended by the substitution of “1 December 2004” for “1
November 2004”;

 

(f)                                    other
provisions of the MOA shall be amended as set forth in Exhibit 1 hereto; and

 

1

 

(g)                                the
definition of “Effective Date” contained in the MOA shall be amended by the
substitution of “1 December 2004” for “1 November 2004” in the last paragraph
of such definition,

 

(each of the items (a) through g) above, an “Amendment”
and, collectively, the “Amendments”).

 

We believe that the Amendments will enable each
Creditor to accept the Offer and approve the Amended MOA on 27 September 2004
at the latest, it being understood that the Amended MOA will benefit to all
Creditors, including those which had already voted positively on or before the
date hereof. A positive vote and approval by each Creditor of the Amended MOA
will evidence its irrevocable and unconditional acceptance of the Offer and
agreement to be bound by the Amended MOA and its implementation in accordance
with its terms.  

 

II.                                     Implementation
of the Amended MOA

 

For the purpose of avoiding the occurrence of a
Potential Event of Default or of an Event of Default, the acceptance of the
Offer and approval of the Amended MOA by all the Creditors will automatically
entail their agreement to an extension of the duration of the Waiver referred
to in the waiver request that we sent you on 17 October 2003 until 1 December
2004 (the “Extension”) and a waiver of the right to invoke against the
Borrowers any Event of Default or Potential Event of Default due to :

 

(i)                                     non
compliance by the Borrowers with their financial undertakings under the
Covenants (as defined in the Common Agreement) in respect of the Financial Year
2004;

 

(ii)                                  non
compliance by the Borrowers with the  3%
covenant relating to the maximum amount to be invested by the Euro Disney Group
per Fiscal Year provided for in paragraph 3.2 of clause 3 (Investments)
of the Covenants insofar as the recurring and growth investments expenses for
Fiscal year 2004 would possibly exceed such 3% covenant, without such excess
exceeding a total maximum amount of € 6 million, as a result of the
implementation of Article 5.3.2 of the MOA; 
and

 

(iii)                               
partial demolition of the Visionarium attraction undertaken by the Borrowers in
connection with the development investments referred-to in Article 5.3.2 of the
MOA,

 

such waiver being deemed to be included in the Waiver
as extended by the Extension.

 

It is understood that the Extension will not
prejudice the exercise of any of your rights under the Credit Agreement in
respect of:

 

•                  any Potential Events of Default or Events of
Default other than those described in the Waiver that have occurred or may
occur, and

 

•                  after the expiry of the Waiver, any Events of
Default or Potential Events of Default described in the Waiver.

 

It is also understood that in no way is the
Extension to be considered in and of itself, on whatever basis, an implicit or
explicit acknowledgement by the Borrowers, of the existence of an Event of
Default or Potential Event of Default described in the Waiver.

 

III.                                 General

 

1.                    Undertakings (the “Undertakings”):

 

a)              Euro Disney SCA agrees to maintain and extend
until 1st December 2004 the mission [literal translation]
of KPMG under the Audit mission of the negotiation models and Long-Term
Forecasts of the Euro Disney Group dated November 10, 2003,
which is based on the model developed by the Agents.

 

2

 

b)             Euro Disney SCA undertakes to pay, on
presentation of reasonably detailed documents, all reasonable fees and expenses
and any value-added taxes related thereto of the legal counsels of the Agents
in connection with the Amendments and the Extension.

 

2.                    Conditions precedent:

 

The
effectiveness of the Amended MOA, the Extension and the Undertakings will be
subject to the occurrence of the following conditions precedent:

 

a)              delivery to the Agents of a copy of a letter
from TWDC to Euro Disney SCA whereby TWDC formally agrees to the Amendments;
and

 

b)             unanimous acceptance of the Offer by all the
Creditors (all of the Phase IA Banks, Phase IA Partners, Phase IB Banks, Phase
IB Lenders and CDC); and

 

c)              an extension given by the CDC and under the
Phase IB Advances Agreement and the Phase IB Credit Facility Agreement under
terms and conditions similar to the Extension.

 

3.                    Termination events:

 

The
Extension may be terminated, if the Agent deems it fit, if one of the following
occurs before the expiry of the Extension in accordance with paragraph 4 below:

 

a)                                     any payment of royalties due to The Walt Disney
Company (Netherlands) B.V. or of the Management Fee for the fiscal years 2003
or 2004;

 

b)                                    any repayment under the Standby Revolving
Credit Facility which has the effect of bringing the outstanding amount of the
Standby Revolving Credit Facility below € 120 million before the Effective
Date; and

 

c)                                     the total amount of the Guarantee Deposits is
not maintained at the level contemplated by Article 7.1.2 of the MOA.

 

4.                    Duration

 

Subject
to the occurrence of one or more of the termination events set forth in
paragraph 3 above, the Extension shall be in effect through 1 December 2004.

 

5.                    Representations and Warranties:

 

(A)                               Euro Disney SCA represents and warrants to the
Banks, who will decide on such basis:

 

a)                                     that it has full capacity to sign this letter
and that its undertakings hereunder are valid undertakings enforceable against
it in accordance with their terms;

 

b)                                    that such undertakings are not, in any material
respect, contrary to the laws and regulations applicable to it, or provisions
of its bylaws, or any provision in an agreement with which it must comply;

 

3

 

c)                                     that, subject to any Potential Events of
Default or Event of Default subject to the Waiver or as expressly referred to
herein , to its knowledge, there is no other Potential Event of Default or
Event of Default, that the Borrowers are not in default under the other Bank
Debt Agreements and that Euro Disney SCA is not aware of any event which may
result in such a default.

 

(B)                                Each Bank voting in favor of the Amended MOA
will be deemed to have represented and warranted to Euro Disney SCA that it has
not identified, at the date of its vote, an event or circumstance that is or
may be a Potential Event of Default or an Event of Default, other than those
mentioned in the Waiver.

 

6.                     No Novation

 

The
provisions of this letter do not modify the provisions of the Bank Debt
Agreements or of the loan agreements from the CDC relating to the second park.

 

It is incumbent upon your Agent to organize and
receive your vote in accordance with the provisions of the relevant Bank Debt
Agreement.

 

Very truly yours,

 

 

	
   

  	
   

  	
   

  
	
  Jeffrey
  R. Speed

  Senior Vice President and Chief Financial Officer of Euro Disney SAS,

  Gérant of  Euro
  Disney SCA

  

 

4

 

Exhibit 1

 

ECONOMIC TERMS

 

	
  Interest:

  	
   

  	
  Margin over Euribor shall be increased to 300 bps on
  the Phase IA Credit Facility Agreement, the Phase IB Credit Facility
  Agreement and Tranche C of the IB Partners’ Advances

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Interest rates applicable to principal amount of €
  48.3 m due on CDC ordinary and participatif
  loans shall be increased by 200 bps [as per the attached schedule].

  
	
   

  	
   

  	
   

  
	
  Call Protection:

  	
   

  	
  From January 1, 2005 until
  December 31, 2007, prepayment under the Phase IA Credit Facility Agreement,
  the Phase IB Credit Facility Agreement and Tranche C of the IB Partners’
  Advances can be made, in whole only, at the following percentages of the then
  outstanding principal:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  From January 1, 2005 until
  December 31, 2005: 103%;

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  From January 1, 2006 until
  December 31, 2006: 102%; and

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  From January 1, 2007 until
  December 31, 2007: 101%.

  
	
   

  	
   

  	
   

  
	
  Standby Revolving

  Credit Facility:

  	
   

  	
  as of the Effective Date,
  €10 m principal amount will be permanently forgiven under the Standby
  Revolving Credit Facility (it being understood that this will not affect
  references to the amount of €110m, which will remain unchanged in Article 3.5
  of the MOA relating to the Standby Revolving Credit Facility).

  
	
   

  	
   

  	
   

  
	
  CDC 2nd gate loan

  interest:

  	
   

  	
  CDC 2nd gate loan
  interest in the amount of €2.5 m per year from Financial Year 2005 to
  Financial Year 2012 will be permanently forgiven.

  

 

5

 

OTHER TERMS

 

	
  Clause 7.8 of MOA

  	
   

  	
  “In the event of the Share
  Capital Increase Realisation and with effect from the Share Capital Increase
  Date:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  In
  consideration of TWDC’s participation in the Euro Disney Group’s financial
  restructuring, each of the Creditors hereby waives all rights, claims, or
  causes of action which it may now or hereafter have against TWDC or any of
  its officers, directors or employees by reason of any act or omission prior
  to the Signature Date in respect of Euro Disneyland in France (as defined in
  the Master Agreement), except where such right, claim or cause of action
  arises out of (a) a willful or fraudulent misrepresentation or (b) faute lourde (gross negligence) or (c) activities
  constituting a délit or a crime
  under French law, of TWDC or of the relevant officer, director or employee;
  and

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Each
  of the Creditors acknowledges and agrees that neither TWDC nor any of its
  officers, directors or employees is or will be considered, by reason of
  participating in any transaction comprised in the Euro Disney Group’s
  financial restructuring, to be a guarantor of or surety for Euro Disney under
  the Bank Debt Agreements. This paragraph shall not be interpreted as a
  limitation of the terms and provisions of the previous paragraph.”

  
	
   

  	
   

  	
   

  
	
  Restructuring Fee

  	
   

  	
  Article 7.2.1 of the MOA shall be amended by the
  substitution of “1%” for “0.80%”, “0.25% for “0.20%” and “0.75%” for “0.60%”.

  
	
   

  	
   

  	
   

  
	
  Increased Security

  	
   

  	
  The Company will endeavor to provide additional
  security in the form of an extension of the existing mortgage security on the
  ACP assets until 2012, provided, however, that this effort does not result in
  any additional cost exceeding €100,000 (e.g. registration duties, notary
  fees, etc.).

  

 

6Exhibit 4.2

 

Translation from French

for information purposes only

 

Caisse des dépôts et consignations

 

 

Mr Jeffrey S. Speed

Chief Financial Officer

Euro Disney SCA

BP 100

77777 Marne La Vallee

 

 

Paris, September 23, 2004

 

 

Dear Sir,

 

In your letter dated September
20, 2004, you have requested the approval of the Caisse des
dépôts on a number of amendments to the Memorandum of Agreement
signed on June 8, 2004 between Euro Disney, The Walt Disney Company, the
Steering Committee, BNP Paribas, CALYON and the Caisse de
dépôts (the “Offer”).

 

It is my pleasure to inform
you that the Caisse des dépôts accepts the
Offer, approves the amended Memorandum of Agreement resulting thereof, and
accepts the Waiver Extension referred to in the letter dated October 17, 2003 sent
by your company, in accordance with the terms and conditions stipulated by
these various documents.

 

With respect to the waivers
relating to the potential Events of Default or Events of Defaults referred to
in your above-mentioned letter of September 20, I would like to specify that
the agreement of the Caisse des dépôts
on these waivers is strictly limited to the Events of Default or potential
Events of Default mentioned therein and cannot be extended or interpreted as
including a waiver of any other right of the Caisse des
dépôts not included in such letter.

 

Yours faithfully,

 

 

Jean-François
de Caffarelli

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