Document:

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                                                                    EXHIBIT 10.3

                                                                  EXECUTION COPY

                               AMENDED & RESTATED
                        PLANET HOLLYWOOD RESORT & CASINO
                              LICENSING AGREEMENT

THIS AMENDED & RESTATED RESORT & CASINO LICENSING AGREEMENT ("Agreement")
originally dated as of May 7, 2003 (hereinafter referred to as the "Effective
Date") and amended effective this 9th day of August, 2004, by and among Planet
Hollywood International, Inc., a corporation duly organized and existing under
the laws of the State of Delaware, having its principal office and place of
business at 7598 West Sand Lake Road, Orlando, Florida 32819, and Planet
Hollywood (Region IV), Inc., a corporation duly organized and existing under the
laws of the State of Minnesota, having its principal office and place of
business at 7598 West Sand Lake Road, Orlando, Florida 32819 (hereinafter
collectively referred to as "PHII"), Planet Hollywood Memorabilia, Inc.
(hereinafter referred to as "PHMemo"), a wholly owned subsidiary of PHII duly
organized and existing under the laws of the State of Florida, having its
principal office and place of business at 7598 West Sand Lake Road, Orlando,
Florida 32819 and OpBiz, L.L.C., a Nevada limited liability company (hereinafter
referred to as "HOTEL JV") having its principal office and place of business at
885 Third Avenue, 34th Floor, New York, New York 10022.

                                    PREAMBLE

      A. PHII owns the "Planet Hollywood" trademarks, design marks, trade name,
Trade Dress (defined below) and service marks (hereinafter collectively referred
to as "THE MARKS") and the domain names that incorporate part or all of any of
THE MARKS (hereinafter referred to as the "DOMAIN NAMES"), as set forth on
EXHIBIT A attached hereto and incorporated herein and which may be updated and
revised from time to time subject to the provisions of this Agreement;

      B. PHMemo owns or otherwise has a valid possessory right in an extensive
collection of sports, motion picture and Hollywood memorabilia;

      C. HOTEL JV has entered into a Purchase and Sale Agreement (the "Purchase
Agreement"), dated as of April 23, 2003 with Aladdin Gaming, LLC ("Gaming"),
debtor and debtor-in-possession under Title 11 of the Bankruptcy Reform Act of
1978, as amended, 11 U.S.C. Section 101 et seq. (the "Bankruptcy Code"), in
proceedings (the "Bankruptcy Proceedings") before the United States Bankruptcy
Court for the District of Nevada, Southern Division (the "Bankruptcy Court")
pursuant to which HOTEL JV has agreed to purchase from Gaming a complex (the
"Complex") consisting of a 2,567 room hotel, a casino, conference and banquet
facilities, food and beverage operations and retail space (hereinafter referred
to as the "Planet Hollywood Hotel") and a 6,700 seat theater (hereinafter
referred to as the "Theatre for the Performing Arts") all located at 3667 Las
Vegas Boulevard South, Las Vegas, Nevada and

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currently known as the "Aladdin Hotel & Casino";

      D. HOTEL JV and The Bank of New York, Asset Solutions Division (the
"Agent") and various lenders party thereto (collectively, the "Lenders"), have
negotiated and intend to enter into an Amended and Restated Loan and Facilities
Agreement (the "Loan Agreement"), pursuant to which HOTEL JV has agreed to
borrow (on the terms and conditions set forth in the Loan Agreement) $510
million (the "Loan") in connection with HOTEL JV's acquisition of the Complex;

      E. HOTEL JV, MezzCo, L.L.C., ("MEZZCO") the parent of HOTEL JV, Post
Advisory Group, L.L.C. (the "Subordinated Notes Collateral Agent") and various
purchasers party thereto (collectively, the "Purchasers"), have negotiated and
intend to enter into a Securities Purchase Agreement (the "Securities Purchase
Agreement"), pursuant to which MEZZCO has agreed to borrow (on the terms and
conditions set forth in the Securities Purchase Agreement) $87 million (the
"Subordinated Loan") in connection with HOTEL JV's renovations of the Complex;

      F. In the event that the transactions contemplated by the Purchase
Agreement , the Loan Agreement, the Securities Purchase Agreement and certain
related documents and agreements are completed, HOTEL JV intends to renovate and
re-theme the Aladdin Hotel & Casino as the "Planet Hollywood Hotel and Casino"
which will include a Planet Hollywood Restaurant and may include one or more
Planet Hollywood Retail Shops (as both of those terms are defined in Section 2.3
below) and to rename the Theatre for the Performing Arts as HOTEL JV shall
determine.

      G. HOTEL JV is an indirect, wholly-owned subsidiary of EquityCo, L.L.C., a
Nevada limited liability company formed by affiliates of Robert Earl, Bay
Harbour Management, L.C. and Starwood Hotels & Resorts Worldwide, Inc.
("Starwood") established pursuant to an Amended and Restated Operating
Agreement, dated as of April 22, 2003 (the "Operating Agreement") setting forth
the rules and regulations for the operations of HOTEL JV;

      H. HOTEL JV desires to use THE MARKS and the DOMAIN NAMES to identify,
promote, manage and operate the Complex and certain services to be rendered and
the products to be sold thereat including, without limitation, the Planet
Hollywood Restaurant;

      I. PHII desires to grant a license to HOTEL JV to use THE MARKS and the
DOMAIN NAMES and to provide certain marketing and promotional services to HOTEL
JV to identify and promote the Complex and, in connection therewith, to provide
certain services to be rendered and certain products to be sold thereat, all
such grants being subject to the terms and conditions contained in this
Agreement; and

      J. HOTEL JV desires to license a portion of PHMemo's collection of
memorabilia which shall be established by mutual agreement of the parties hereto
and attached to and incorporated in this Agreement as EXHIBIT B and which shall
be updated and revised from time

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to time subject to the provisions of this Agreement (hereinafter referred to as
"THE MEMO") to display and exhibit THE MEMO in the Complex and PHII and PHMemo
desire to grant a license to HOTEL JV to use THE MEMO in order to display and
exhibit THE MEMO in the Complex subject to the terms and conditions contained in
this Agreement.

      NOW, THEREFORE, for good and valuable consideration, and for and in
consideration of the mutual promises, covenants and undertakings herein set
forth, PHII, PHMemo and HOTEL JV agree as follows:

      1. LICENSE

      1.1. Subject to the provisions of this Agreement, PHII hereby grants to
HOTEL JV an irrevocable license to use and sub-license the use of THE MARKS and
the DOMAIN NAMES in connection with the identification, management, operation,
advertising and promotion of the Complex, including sub-licensing rights
described in Sections 1.3 and 1.4 below, the services rendered thereat and the
products provided, offered and distributed and/or sold to guests and other
customers of the Complex, and for no other business or non-business purposes
whatsoever and no other goods or services whatsoever and solely in accordance
with the Limitations of Use as set forth in Section 4, the Standard of Quality
as set forth in Section 6 and including only the following licensed rights
(hereinafter referred to as the "Licensed Rights"):

      (a) Use of THE MARKS as a trade name for the Complex and for business
related to the Complex and the identification, management, operation,
advertising and promotion thereof;

      (b) Use of THE MARKS in connection with the identification, management,
operation, advertising and promotion of the Complex including, without
limitation, the casino and/or all gaming and betting, the rental of guest,
conference and banquet rooms at the Complex, the sale of food and beverages
provided by the Complex (including the Planet Hollywood Restaurant and Planet
Hollywood Retail Shop(s) as outlined in detail in Section 2.3 below), and any
and all other services provided by the Complex (hereinafter referred to as
"Licensed Services");

      (c) Use of THE MARKS on those goods distributed and/or provided by HOTEL
JV on a complimentary basis or otherwise provided in the ordinary course without
charge in the operation of the Complex, such as articles of clothing and/or
goods including but not limited to stationery, toiletries such as shampoo, soap,
shaving creme, and towels as typically provided for and used by guests,
employees and management of the Complex, including but not limited to goods
located or used in guest rooms, conference rooms, banquet rooms, casinos and
public areas whether such products are provided to guests on a complimentary
basis or otherwise (hereinafter collectively referred to as "Licensed
Complimentary Products") and the advertising and promotion thereof. The Licensed
Complimentary Products bearing THE MARKS distributed and/or provided by HOTEL JV
throughout the Complex may, at the election of Hotel JV, be (i) procured from
and provided by PHII and its respective affiliates to HOTEL JV for distribution
in accordance with the Standard of Quality set forth in Section 6 herein; or
(ii) be produced and

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procured from any third party, provided such production and procurement is in
accordance with the Standard of Quality set forth in Section 6 herein and the
other applicable terms and conditions of this Agreement.

      (d) Use of THE MARKS in connection with the advertising and promotion of
the offering for sale of goods and the sale of goods within or in connection
with the Complex, including but not limited to souvenir casino chips, casino
paraphernalia and souvenirs; articles of clothing, such as T-shirts,
sweatshirts, jackets, caps and robes; any and all merchandise of personal
adornment, such as jewelry, pins and sunglasses, as well as any and all
souvenirs, novelties and toys, as provided to HOTEL JV by PHII and/or PHII and
their respective affiliates (hereinafter referred to as "Provided Goods"). HOTEL
JV agrees and acknowledges that, to the extent such Provided Goods bearing THE
MARKS constitute either (i) articles of clothing, or (ii) items as are typically
sold at other Planet Hollywood restaurant and/or retail outlets, said Provided
Goods bearing THE MARKS offered for sale and/or sold throughout the Complex
shall in each instance be procured from PHII or its respective affiliates to
fulfill HOTEL JV's requirements for Provided Goods; provided, that PHII or its
affiliates shall (i) promptly provide such Provided Goods to HOTEL JV in
accordance with the Standard of Quality set forth in Section 6 below, and (ii)
offer such Provided Goods at terms and conditions equal to or better than any
bona fide offer from a third party provider of similar products. In the event
that PHII or its affiliates shall be unable to promptly provide such Provided
Goods in accordance with the terms and conditions of this Section 1.1(d), HOTEL
JV shall have the right to procure such particular Provided Goods from third
party providers; it being the express intent of the parties hereto that, to the
extent that such Provided Goods bearing THE MARKS constitute either (i) articles
of clothing, or (ii) items as are typically sold at other Planet Hollywood
restaurant and/or retail outlets and PHII or its affiliates shall be able to
promptly provide any Provided Goods to HOTEL JV on a commercially competitive
basis, HOTEL JV shall purchase such Provided Goods from PHII or its affiliates.
To the extent (x) any particular Provided Good does not constitute either (i)
articles of clothing, or (ii) items as are typically sold at other Planet
Hollywood restaurant and/or retail outlets or (y) PHII cannot or does not
promptly supply the Provided Goods as and when required by HOTEL JV on a
commercially competitive basis, HOTEL JV may procure such Provided Goods from
third parties, provided such production and procurement is in accordance with
the Standard of Quality set forth in Section 6 herein and the other applicable
terms and conditions of this Agreement.

      (e) Use of any and all copyrights in and to the Planet Hollywood design
marks as set forth in EXHIBIT A as well as the use of any and all copyrights in
and to the artwork, printed matter, menus, signage, videos, music jingles and
other copyrightable materials owned by PHII and/or PHMemo for HOTEL JV's use in
the advertising, promotion, management and operation of the Complex. PHII hereby
consents to any reproduction of the Planet Hollywood design marks by HOTEL JV
for the purposes of advertising and promoting the Complex and the business
related thereto and for any other purpose contemplated in this Agreement subject
to the terms and conditions of this Agreement.

      1.2. Subject to the provisions of Section 3.1 below, the Licensed Rights
granted herein

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shall be exclusive to HOTEL JV and its permitted successors, assigns and
sublicensees within the territory of Clark County, Nevada (the "Territory").

      1.3. Subject to the provisions of this Agreement, HOTEL JV shall have the
right to grant to Starwood or one or more of Starwood's affiliates or
subsidiaries as appropriate or necessary (or any other entity selected by HOTEL
JV and approved by Lender under the Loan Agreement) (hereinafter referred to as
"STARWOOD") a nontransferable, revocable sub-license to use THE MARKS and the
DOMAIN NAMES in connection with the identification, joint management, operation,
advertising and promotion of the Complex and the Time Share Premises (as defined
in the Loan Agreement) and for no other business or non-business purposes
whatsoever and in accordance with Section 7, which sublicense shall be in a form
and content reasonably acceptable to PHII, HOTEL JV, STARWOOD and Lenders.

      1.4 Subject to the provisions of this Agreement, HOTEL JV shall have the
right to grant to the "Manager" (as such term is defined in the Loan Agreement)
(and any successor Manager approved by the Lenders under the Loan Agreement) a
nontransferable, revocable sub-license to use THE MARKS and the DOMAIN NAMES in
connection with the identification, management, operation, advertising and
promotion of the Planet Hollywood Hotel and for no other business or
non-business purposes whatsoever and in accordance with Section 7, which
sublicense shall be in a form and content reasonably acceptable to PHII, HOTEL
JV, such Manager and Lenders.

      1.5 (a) Subject to Sections 1.1 and 3.8 of this Agreement PHII grants to
HOTEL JV the right, but not the obligation, to use THE MARKS and the DOMAIN
NAMES in connection with the development, operation and maintenance of a "Planet
Hollywood Hotel and Casino" website on the Internet, including but not limited
to the World Wide Web, as developed and maintained by HOTEL JV in its sole
discretion; provided, however, the rights conferred pursuant to this Section
1.5(a) specifically exclude any and all rights to conduct "online gaming" or
other games of lottery or chance on the Internet, including but not limited to
the World Wide Web, whether for a fee or free of charge, but specifically
excepting promotional sweepstakes or contests where no purchase or payment of
any kind is required to participate (collectively, "Online Gaming"), with any
and all such Online Gaming rights being specifically retained by PHII.

          (b) Notwithstanding the foregoing, the rights granted pursuant to
Section 1.5(a) are conditioned upon HOTEL JV developing the "Planet Hollywood
Hotel and Casino" website so that it has reciprocal cross links and has, from an
end-user perspective, a "seamless reciprocal integration" with PHII's and HOTEL
JV's existing or future website(s) to the extent that such reciprocal cross
links are permitted by applicable law and regulation including, without
limitation, any rules and regulations imposed by Nevada Gaming regulatory
agencies. For purposes of this Section 1.5(b), the phrase "seamless integration"
shall mean that any end user shall have the ability to access PHII's or HOTEL
JV's, as applicable, existing or future website(s) by performing no greater than
two "clicks" on the Hotel JV or PHII, as applicable website and such other
integrations as are mutually agreed by the parties hereto.

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      1.6 Subject to the terms and conditions of this Agreement, PHMemo hereby
grants to HOTEL JV an irrevocable license and the right to use THE MEMO for
displaying and exhibiting THE MEMO for the full term of this Agreement in the
Complex and for no other purposes and subject to the Limitations of Use as set
forth in Section 5.

      2. LICENSE FEE

      2.1. Commencing upon the occurrence of each of the completion of the
rebranding and the grand reopening of the Complex as a Planet Hollywood using
THE MARKS (the "Grand Reopening"), as consideration for the use of THE MARKS,
the DOMAIN NAMES, THE MEMO and the other contributions of PHII and PHMemo
hereunder, HOTEL JV shall pay PHII an amount (the "Continuing Fee") equal to one
and 75/100 percent (1.75%) of HOTEL JV's Non-Casino Gross Receipts (as such term
is defined in Section 2.2 below) without set-off or deduction therefrom at
PHII's principal place of business in Orlando, Florida (unless otherwise agreed
by PHII); provided, however that for purposes of calculating the Continuing Fee
no more than 22% of revenues from Non-Casino Gross Receipts may consist of
casino "complimentaries" extended to customers. The Continuing Fee shall be paid
quarterly in arrears and shall be due and payable quarterly to PHII on the first
day of each such quarter. Notwithstanding the foregoing, if prior to the Grand
Reopening, HOTEL JV opens an attraction with paid admission using THE MEMO or
THE MARKS, HOTEL JV shall pay to PHII a Continuing Fee (payable quarterly as set
forth above) based solely on the Gross Receipts of such attraction (and
excluding all other "Non-Casino Gross Receipts"(defined below)) until the Grand
Reopening.

      2.2. For purposes of this Agreement "Non-Casino Gross Receipts" shall mean
the gross proceeds from sales of any and all items sold on or from the Complex
in the ordinary course of business and shall include and not be limited to the
following:

            (a) All cash and cash equivalents and credit transactions, and the
full value of any and all "complimentaries" extended to customers (excluding the
value of complimentary alcoholic and non-alcoholic beverages), of whatever
nature carried out during a calendar quarter in question in connection with the
Complex, and wherever a credit or service card is used by a customer, the amount
for purposes of calculating Gross Receipts shall be the price charged to the
customer and no deduction therefrom shall be permitted;

            (b) The price of all goods sold and delivered and any services
performed during such calendar quarter in connection with the Complex (including
the value of any goods or services delivered to affiliates or employees of HOTEL
JV, Manager or any other parties for prices less than those charged to third
parties (subject to Section 2.2(d));

            (c) For the avoidance of doubt, it is agreed by the parties hereto
that, except as otherwise expressly excluded below, any and all revenues of any
kind or nature arising, directly or indirectly, out of the operation of the
Complex, including, without limitation, the rental of

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guest rooms, conference rooms and banquet rooms, the sale of any and all retail
products, the sale of food, beverage and alcohol from the premises and catering,
receipts from entertainment events held in connection with the Complex, royalty
and licensing revenue, subleasing and sublicensing revenue (subject to Section
2.2(d)(ii) below) and any other sources of revenue, of whatever kind or nature,
generated by the Complex by HOTEL JV, whether physically generated at the
Complex or otherwise shall be included in the definition of Non-Casino Gross
Receipts and shall be included in calculating the Continuing Fee payable to
PHII.

            (d) Non-Casino Gross Receipts shall expressly exclude:

                  (i)   Those revenues arising directly and solely from
                        conducting casino gambling operations in the Complex;
                        provided, however, other sources of revenue generated in
                        connection with casino gambling operations shall be
                        included. By way of example and not of limitation, a
                        $1.00 chip placed in a slot machine by a customer on the
                        Planet Hollywood Hotel casino floor shall not be
                        included in Non-Casino Gross Receipts; however, any sale
                        by the HOTEL JV in the casino of food, beverage
                        (including alcoholic beverages), retail products or
                        other expenditures made by said customer other than
                        gambling shall be included in calculating Non-Casino
                        Gross Receipts. For the avoidance of doubt, the purchase
                        by the customer of any branded gaming product, by way of
                        example and not of limitation, branded casino chips
                        which are usable in the casino, whether or not such
                        chips are actually utilized in gambling activities,
                        shall not be included in Non-Casino Gross Receipts;

                  (ii)  Those revenues arising directly from third party
                        operator retail and restaurant operators, tenants,
                        licensees or concessions in the Complex where such
                        operations are not branded with or otherwise utilize THE
                        MARKS or otherwise incorporate or utilize the PHII
                        Intellectual Property ("Third Party Operations") shall
                        not be included in Non-Casino Gross Receipts; provided,
                        however, any and all revenues received by HOTEL JV
                        arising from such Third Party Operations shall not be
                        excluded from the definition of Non-Casino Gross
                        Receipts.

                  (iii) Applicable excise, sales, occupancy and use taxes, or
                        similar government taxes, duties, levies or charges
                        collected directly from patrons or guests, or taxes as a
                        part of the sales price of any goods, services, or
                        displays, including gross receipts, admissions, cabaret
                        or similar or equivalent taxes;

                  (iv)  Tips or their equivalent;

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                  (v)     Discounts of contracts and early payment discounts to
                          the extent that such discounts are actually provided;

                  (vi)    Employee meals to the extent that such meals are
                          provided at HOTEL JV's actual cost;

                  (vii)   Any customer refunds, returns or allowances arising
                          from credits, rebates and discounts of any nature,
                          including returned product or defective products or
                          services or the like, provided, however, that such
                          refunds or allowances shall not exceed the original
                          price charged by HOTEL JV therefor and shall only be
                          deducted from Non-Casino Gross Receipts in the week in
                          which they are paid or allowed to the customer;

                  (viii)  Those revenues arising directly and solely from the
                          operation of a Planet Hollywood Restaurant (defined
                          below) as such revenues are to be utilized in
                          calculating the royalty revenue set forth in Section
                          2.3 below;

                  (ix)    any duplicate counting of income in any event;

                  (x)     any time share profits or proceeds;

                  (xi)    credit card processing or service fees actually paid;

                  (xii)   receipts from the financing, sale or other disposition
                          of capital assets, furniture, fixtures and equipment
                          and other items not in the ordinary course of HOTEL
                          JV's operations and income derived from securities and
                          other property acquired and held for investments;

                  (xiii)  receipts from awards or sales in connection with any
                          Taking (as such term is defined in the Loan
                          Agreement), from other transfers in lieu of and under
                          the threat of any Taking, and other receipts in
                          connection with any Taking, but only to the extent
                          that such amounts are specifically identified as
                          compensation for alterations or physical damage to the
                          Complex;

                  (xiv)   proceeds of any insurance (excluding business
                          interruption; provided that such insurance shall be
                          included in Non-Casino Gross Receipts proportionally
                          to the period covered by such insurance);

                  (xv)    revenues generated by parking;

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                  (xvi)   security deposits;

                  (xvii)  any contributions by HOTEL JV of any additional
                          working capital, and any contributions to any
                          reserve fund (and any interest earned thereon);

                  (xviii) any refund of taxes that were overpaid in a prior
                          year;

                  (xix)   any reversal of any contingency or tax reserve;

                  (xx)    any proceeds from the settlement or successful
                          prosecution of any legal claim (other than for payment
                          of insurance claims included as Non-Casino Gross
                          Receipts pursuant to clause (xiv) above);

                  (xxi)   any cash on hand, accounts receivable or closing
                          adjustments received by HOTEL JV in connection with
                          HOTEL JV's acquisition of the Complex and any sums
                          received from any source by HOTEL JV after HOTEL JV's
                          acquisition of the Complex that are either payable to
                          the prior owner of the Complex or received or retained
                          by HOTEL JV to reimburse itself for claims, payable to
                          creditors of the prior owner of the Complex in
                          accordance with the Purchase Agreement or closing
                          adjustments incurred in connection with such
                          acquisition; and

                  (xxii)  payments of principal and interest received pursuant
                          to that certain Subordinated Non-Negotiable
                          Promissory Note dated as of November 20, 2000 by
                          Aladdin Bazaar, LLC in favor of Aladdin Gaming, LLC
                          and subsequently endorsed by the payee to HOTEL JV,
                          as such promissory note may have been or may
                          hereafter be amended, restated, extended, replaced or
                          refinanced.

      2.3. HOTEL JV shall have the right to construct and operate a "Planet
Hollywood" branded restaurant within the Planet Hollywood Hotel to sell Planet
Hollywood food, beverage and retail products, either within the Planet Hollywood
Hotel or on a catered basis (the "Planet Hollywood Restaurant") and shall have
the right, but not the obligation, to operate one or more branded Planet
Hollywood retail outlets (a "Planet Hollywood Retail Shop"); provided, however,
the rights to the Planet Hollywood Restaurant and any Planet Hollywood Retail
Shops shall be granted pursuant to and subject to the parties hereto entering
into a franchise agreement substantially similar to the Restaurant License
Agreement in a form and substance mutually agreed by the parties hereto, such
Restaurant License Agreement to be attached hereto as EXHIBIT C and incorporated
herein; provided further, that the royalty payable by HOTEL JV to PHII on Gross
Sales (as such term is defined in the Restaurant License Agreement) arising from
the Planet Hollywood Restaurant and any Planet Hollywood Retail Shops shall be
five percent (5%) on Gross Sales (as such term is defined in the Restaurant
License Franchise Agreement) of food

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and beverage and ten percent (10%) on Gross Sales of merchandise (collectively
"Retail Royalties"). The Retail Royalties shall be paid quarterly in arrears and
shall be due and payable quarterly to PHII simultaneously with the payment of
the Continuing Fee. Notwithstanding the foregoing, during the first year of
operation of the Planet Hollywood Restaurant, the payment of Retail Royalties
attributable to the Planet Hollywood Restaurant shall be payable to PHII solely
to the extent that, after such payment, the Planet Hollywood Restaurant shall
have positive cash flow. There shall be no Initial Fee (as such term is defined
in the Site Franchise Agreement) for the granting of the franchise as set forth
in this Section 2.3. The parties agree that, to the extent any ancillary items
conflict with the rights of any Third Party Operations, such ancillary items
will not be available in the Planet Hollywood Restaurant or Planet Hollywood
Retail Shops (by way of example and not of limitation, if a Third Party
Operation has the exclusive right to sell leather coats and jackets within the
Complex, the Planet Hollywood Restaurant shall not sell branded leather coats
and jackets).

      3. RESERVATION OF RIGHTS

            3.1.During the term hereof, and specifically excepting (a) the
granting of a third party license to THE MARKS in connection with the
development of the approximately 4 acre parcel known as the "Music Parcel"; (b)
the granting of a third party license to THE MARKS to the owners of the Desert
Passage in connection with the re-theming of the Desert Passage; and (c) the
granting of a third party license to THE MARKS in connection with the
development and operation of the TPA, PHII shall not license or otherwise allow
the use or operation of THE MARKS in connection with the operation of a hotel,
casino restaurant or retail shops at any location within the Territory;
provided, however, PHII may license or otherwise allow the use or operation of
THE MARKS in connection with one or more restaurants within the Territory if (i)
HOTEL JV advises PHII in writing (and obtains the advance written consent of the
Lenders to such writing in Lender's sole discretion) that HOTEL JV will not open
a Planet Hollywood Restaurant in the Complex; or (ii) if Lenders terminate the
Restaurant License in accordance with the License Subordination and Cooperation
Agreement of even date herewith (the "Subordination Agreement"); provided
further, PHII may license or otherwise allow the use or operation of THE MARKS
in connection with one or more retail shops within the Territory, if (u) HOTEL
JV advises PHII in writing (and obtains the advance written consent of the
Lenders to such writing in Lenders' sole discretion) that HOTEL JV will not open
a retail shop in the Complex; or (v) if Lenders, in accordance with the terms
and conditions of the Subordination Agreement terminate the Restaurant License
and all Planet Hollywood retail shop(s) within the Complex. In addition, from
the Effective Date until the sooner to occur of (y) one (1) year following the
Grand Reopening or (z) a termination of this Agreement by Lenders under the
Subordination Agreement, other than the Complex. PHII shall not license or
otherwise allow the use or operation of THE MARKS in connection with a hotel
with a gaming casino, other than the Complex, within the State of Nevada or
within the southern portion of the State of California as identified by that
portion of California that lies south of a line of latitude drawn horizontally
from the northernmost point in the County of Ventura, and (d) the Planet
Hollywood restaurant located at 3500 South Las Vegas Blvd, No G-25 89109 in Las
Vegas, Nevada. Notwithstanding the

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foregoing, but subject to Section 2.6.7 of the Securities Purchase Agreement and
termination of this Agreement by the Lenders under the Subordination Agreement,
until the Obligations (as such term is defined in the Loan Agreement) and the
Noteholder Obligations (as such term is defined in the Securities Purchase
Agreement), including all extensions, modifications, restatements or amendments
thereof, are indefeasibly paid in full and performed, none of Robert Earl, PHII,
PHMemo or Hotel JV (or the holder of any equity interest in HOTEL JV) (except
Sheraton in the ordinary course of its business and subject to the provisions of
Section 2.16.2 of the Management Agreement, in each case other than in
connection with THE MARKS) shall be directly or indirectly involved in the
ownership, operation or management of any Planet Hollywood branded hotel with a
gaming casino other than the Complex; provided, however, nothing contained
herein shall prevent the above parties from licensing the rights to THE MARKS
for purposes not prohibited by this Agreement. Except as otherwise set forth
herein, nothing in this Agreement shall be construed as limiting or preventing
PHII from granting licenses to any third party for the use of the Licensed
Rights or from utilizing the PHII Intellectual Property Rights, in both such
instances including THE MARKS, in any other manner whatsoever.

            3.2. Nothing contained in this Agreement shall be construed as an
assignment or grant to HOTEL JV, including any and all of its sub-licensees, of
any ownership right, title, or interest in or to THE MARKS, THE MEMO or the
Licensed Rights.

            3.3. Any and all rights granted to HOTEL JV for the use of THE MARKS
under this Agreement shall extinguish and be rendered null and void upon the
expiration or sooner termination of this Agreement in accordance with the terms
hereof.

            3.4. At the sole election of HOTEL JV, PHII or its affiliates may
provide to HOTEL JV the Licensed Complimentary Products; provided, however, that
(i) HOTEL JV shall have no obligation to purchase any particular Licensed
Complimentary Products from PHII or its respective affiliates; (ii) the cost of
such Licensed Complimentary Products as provided by PHII or its respective
affiliates will not exceed a commercially competitive price in an arm's length
market transaction; and (iii) such Licensed Complimentary Products provided by
PHII shall in any event be produced in accordance with the Standard of Quality
set forth in Section 6 hereinbelow.

            3.5. In accordance with the terms and conditions of Section 1.1(d)
above, PHII or its affiliates may provide to HOTEL JV the Provided Goods;
provided, however, that (i) HOTEL JV shall have no obligation to purchase any
particular Provided Goods from PHII or its affiliates as long as HOTEL JV
complies with Section 1.1(d) with respect to procuring its Provided Goods; (ii)
the cost of Provided Goods provided by PHII will not exceed a commercially
competitive price in an arm's length market transaction; and (iii) the Provided
Goods provided by PHII shall in any event be produced in accordance with the
Standard of Quality set forth in Section 6.

            3.6. For facilitating the selection of the Licensed Complimentary
Products and

                                       11
<PAGE>

Provided Goods provided by PHII, HOTEL JV and PHII acknowledge and agree that
PHII or its affiliates shall submit to HOTEL JV without charge specimens of such
Licensed Complimentary Products and Provided Goods for HOTEL JV's approval.
After such approval, PHII agrees and acknowledges that the Licensed
Complimentary Products and Provided Goods shall be procured (to the extent
required under this Agreement) from and provided by PHII or its respective
affiliates of a quality consistent with the approved sample and otherwise in
accordance with the Standard of Quality set forth in Section 6 and the other
applicable terms hereof.

            3.7. PHII shall have the sole and exclusive right to, and shall
timely, register or otherwise renew each of THE MARKS with any federal, state,
territorial, or provincial governmental agency and shall have the obligation and
responsibility for same at its sole expense, including without limitation any
application for trademark registration, statement of use, declaration of use and
incontestability, registered user registrations, application for registration of
copyright claim, renewal, including all requisite documentation and affidavits,
or other governmental filing of or for any of THE MARKS. HOTEL JV shall execute,
and shall provide for the execution by any sub-licensee of THE MARKS, all
appropriate documents prepared by or for the benefit of PHII reasonably
necessary for such purposes in a reasonably timely manner at PHII' sole expense.
PHII warrants and represents that it has registered THE MARKS and, to the extent
required the DOMAIN NAMES, with all required governmental agencies, has good and
marketable title to THE MARKS, DOMAIN NAMES and THE MEMO, free and clear of all
liens except as shown on Schedule 1, and each of PHII and PHMemo warrant and
represent that they have full power to enter into this Agreement.

            3.8. PHII shall have the sole and exclusive right to, and shall
timely, at its sole expense register or otherwise renew each of the DOMAIN NAMES
with Network Solutions, Inc. (hereinafter referred to as "NSI") and/or any
successor entity(ies) which is (are) responsible for the registration of
Internet domain names throughout the world, including, but not limited to,
domain name registrations in the generic top level domains of ".com", ".org",
".net" and ".biz". HOTEL JV shall have the non-exclusive right to use THE MARKS
for up to two (2) domain names for creating Internet websites for the Complex
("Hotel Websites") for the term of this Agreement; provided, however, the
registration, renewal and maintenance fees for the Hotel Websites shall be borne
solely by HOTEL JV.

            3.9. PHII acknowledges that it shall maintain and protect THE MARKS
and the DOMAIN NAMES and PHII shall take all necessary actions to meet such
requirements with respect to those goods and services offered in conjunction
with THE MARKS and the DOMAIN NAMES at PHII's sole expense.

            3.10. It is expressly understood that the rights and powers retained
by PHII to approve the products, advertising and promotions of HOTEL JV, as
expressly provided herein, are retained because of the necessity of protecting
the PHII Intellectual Property (as defined in Section 3.12) generally, and
specifically to conserve the goodwill and good name of PHII and THE MARKS.

                                       12
<PAGE>

            3.11. PHII and HOTEL JV acknowledge and agree that the services and
sale of goods in connection with THE MARKS shall be appropriate for a first
class themed hotel with a casino, restaurant, bar and related uses and equal to
or better than the level of service and quality prevailing from time to time at
Sheraton-managed hotels (or such other Manager approved by the Lenders under the
Loan Agreement), operated in compliance with applicable laws and governmental
regulations.

            3.12 All designs, materials, copyrights, artwork, trade names, Trade
Dress, trademarks, service marks, domain names, derivative works thereof and
works made-for-hire, and all goodwill associated therewith, and all other
intellectual property rights of any kind (collectively referred to hereafter as
the "PHII Intellectual Property") created by or for PHII or any of its
affiliated companies, with respect to the Planet Hollywood Hotel shall remain
proprietary with and owned by PHII or any of its affiliated companies, as the
case may be . The PHII Intellectual Property shall also include any and all
derivatives in and to the copyrights, trade names, Trade Dress, trademarks,
service marks of PHII existing at the time of this Agreement or thereafter,
whether created, designed or developed by PHII, HOTEL JV, Manager or any other
third party and PHII specifically reserves any and all rights in such
derivatives. By way of example and not of limitation, in the event that HOTEL JV
develops a new logo that is a derivative work of, or otherwise incorporates any
of the PHII Intellectual Property, for use in connection with the Planet
Hollywood Hotel, although HOTEL JV shall automatically retain a license to such
logo pursuant to and subject to this Agreement as if such logo were included on
EXHIBIT A as one of THE MARKS. PHII shall retain any and all rights in and to
such derivative work and HOTEL JV shall acquire no proprietary rights therein.
Except as set forth herein, all designs, materials, copyrights, artwork, trade
names, trade dress, trademarks, service marks, domain names, derivative works
thereof and works made-for-hire, and all goodwill associated therewith, and all
other intellectual property rights of any kind owned and/or used by HOTEL JV in
connection with the Complex (except for THE MARKS, the DOMAIN NAMES and the PHII
Intellectual Property or any derivatives thereto) shall remain proprietary with
and owned by HOTEL JV or such sub-licensee, as the case may be (the "HOTEL JV
Intellectual Property"). For purposes of this Agreement, "Trade Dress" is
defined as those elements in which the Planet Hollywood Hotel is packaged which
create the visual image presented to customers and which are capable of
acquiring exclusive legal rights as a type of trademark or identifying symbol of
origin.

            3.13 PHMemo shall at all times retain sole ownership and title of
THE MEMO, and HOTEL JV shall not have or at any time acquire any right, title,
equity or other interest in THE MEMO, except the license to possess and use THE
MEMO as provided for in this Agreement. THE MEMO is, and shall at all times
remain, the personal property of PHMemo, notwithstanding that any part of it may
now be, or may become, in any manner attached to, or embedded in, real property
or any building with respect to the Planet Hollywood Hotel. HOTEL JV agrees to
indemnify PHMemo and PHII for any loss or expense due to a lien or claim on THE
MEMO by any other lienor or claimant to the extent such lien or claim is caused
by the action or

                                       13
<PAGE>

inaction of HOTEL JV.

4. LIMITATIONS OF USE - THE MARKS

            4.1.Except as otherwise permitted hereunder:

                  (a) HOTEL JV shall not use or authorize others to use the PHII
Intellectual Property Rights, the Licensed Rights, the Licensed Complimentary
Products, or the Provided Goods for any other purpose, except as provided below;

                  (b) HOTEL JV shall only use THE MARKS as shown on EXHIBIT A
and shall use no variations of or make any material changes, additions or
deletions to THE MARKS without PHII's prior written approval which approval may
be withheld in PHII's reasonable discretion; and

                  (c) Except as otherwise permitted under this Agreement, HOTEL
JV shall not use or authorize others to use THE MARKS, the DOMAIN NAMES or the
PHII Intellectual Property Rights as a trademark and/or service mark and/or logo
incorporating any other word, term, mark, graphics or designs without PHII's
prior written approval, which approval may be withheld at PHII's reasonable
discretion.

            4.2. Notwithstanding the limitations set forth in this Section 4,
PHII acknowledges that in addition to the sublicenses addressed in Sections 1.3
and 1.4 above, HOTEL JV may use or authorize third parties to use the PHII
Intellectual Property, including without limitation THE MARKS, in joint
advertising and promotion of the Planet Hollywood Hotel and the services and
products offered by such third parties provided PHII has given its prior written
approval, which approval shall not be unreasonably withheld, delayed or
conditioned.

            4.3. HOTEL JV shall not, either during or after the term of this
Agreement, do anything itself, or aid or assist any other party to do anything
which would infringe, violate, tarnish, dilute, cause a loss of distinctiveness,
harm, or contest the rights of PHII in and to THE MARKS, and/or do anything
which would damage the goodwill or brand image associated with THE MARKS. PHII
shall not, either during or after the term of this Agreement, do anything
itself, or aid or assist any other party to do anything which would infringe,
violate, tarnish, dilute, cause a loss of distinctiveness, harm or contest the
rights of HOTEL JV in and to HOTEL JV's Intellectual Property, and/or do
anything which would damage the goodwill or brand image associated with THE
MARKS, the DOMAIN NAMES or the PHII Intellectual Property which HOTEL JV may use
in conjunction with the services rendered and the goods offered within the
Complex.

            4.4. PHII shall designate in writing a representative to which HOTEL
JV shall direct any and all requests for written approval as required by this
Agreement; and for all matters

                                       14
<PAGE>

submitted for the written approval of PHII as required by this Agreement, if
PHII does not approve thereof in writing within a fifteen (15) day period
following such submission, such matters shall be deemed approved by PHII.

      5. LIMITATIONS OF USE - THE MEMO

            5.1. THE MEMO licensed hereunder shall initially consist of those
items of memorabilia requested by HOTEL JV for its use in connection with this
Agreement not to exceed an aggregate fair market value of Twenty Million and
No/100 Dollars ($20,000,000), such amount representing the maximum amount of THE
MEMO that may be licensed to HOTEL JV at any given time, such memorabilia to be
identified on EXHIBIT B attached hereto. PHMemo agrees to make available to
HOTEL JV, at all times, memorabilia having a value of not less than Twenty
Million and No/100 Dollars ($20,000,000) in the aggregate for HOTEL JV's use at
the Complex in Hotel JV's discretion. Within one hundred twenty (120) days
following the reasonable request of HOTEL JV, and at HOTEL JV's sole cost and
expenses, PHMemo shall add and/or subtract memorabilia from the items provided
pursuant to this Agreement in order to rotate a portion of PHMemo's collection
into and out of the Complex (a "Swap Out"); provided, however in no event shall
PHMemo have an obligation to license any PHMemo in excess of an aggregate fair
market value of Twenty Million and No/100 Dollars ($20,000,000), such amount
representing the maximum amount of THE MEMO that may be licensed to HOTEL JV at
any given time. PHMemo shall, at all times during the term of this Agreement,
maintain a reasonable level of memorabilia (which, including THE MEMO, shall
have an aggregate value of not less than Twenty Million and No/100 Dollars
($20,000,000) in its total collection in order to satisfy its Swap Out and other
obligations hereunder and THE MEMO shall be of a type and quality consistent
with memorabilia supplied by PHII and/or PHMemo to its other licensees, lessees
or franchisees. Following a Swap Out or any change, addition or deletion to THE
MEMO pursuant to the terms and conditions of this Agreement, EXHIBIT B shall
automatically be deemed to be revised to reflect such Swap Out, change, addition
or deletion. Notwithstanding the foregoing; (i) HOTEL JV agrees that the
obligations of PHII and PHMemo do not extend to the provision of any casing,
framing or displays for THE MEMO and (ii) PHII and PHMemo agree that, except as
otherwise expressly set forth in this Agreement, the obligations of HOTEL JV
with respect to THE MEMO as set forth herein do not extend to any memorabilia
located at another PHII location other than the Complex. To the extent HOTEL JV
requires casing, framing and displays with respect to all or a portion of THE
MEMO, HOTEL JV may, but shall not be obligated to, purchase such casing, framing
and displays from PHMemo. PHMemo agrees to provide such casing, framing or
displays at a commercially competitive arm's length market price. The cost of
any such casing, framing, displays, installation, supervision and other services
provided by PHII or PHMemo under this Section 5 shall be paid by the HOTEL JV
solely from the $90 Million of "Renovation Capital Expenditures" required to be
made by HOTEL JV under the Loan Agreement. For purposes of this Agreement, it is
agreed by the parties hereto that the "fair market value" of THE MEMO shall be
reasonably determined by PHMemo by (a) appraisals of all or part of items
comprising THE MEMO by independent appraisers, and/or (b) the historical results
of actual sales of items comprising THE MEMO to independent third parties by

                                       15
<PAGE>

PHMemo, and any such determination of value shall be subject to the prior
written approval of HOTEL JV and Lenders, such approval not to be unreasonably
withheld.

            5.2 HOTEL JV agrees that the installation of THE MEMO requires
specialized skill in the form of riggers and professional installers. HOTEL JV
shall use the services of (i) PHMemo, or (ii) a supervisor designated by HOTEL
JV and reasonably approved by PHMemo in connection with the installation,
removal or movement of any of THE MEMO, whether the initial installation, during
a Swap Out or upon expiration or sooner termination of this Agreement unless
otherwise approved by PHMemo, such approval not to be unreasonably withheld,
delayed or conditioned. PHMemo agrees to provide such services at its actual out
of pocket cost.

            5.3 HOTEL JV, without prior written consent of PHMemo, shall not
permit the Property to be removed from the Complex, which consent shall not be
unreasonably withheld, delayed or conditioned; provided, however, that it shall
not be considered an unreasonable condition if PHMemo, acting reasonably,
conditions such removal on PHMemo supervising any movement of THE MEMO at HOTEL
JV's cost (in an amount not to exceed PHMemo's actual out of pocket costs of
providing such service) unless such removal is supervised by an approved third
party supervisor as set forth in Section 5.2 above.

            5.4 HOTEL JV shall have absolute supervision and responsibility over
the users of THE MEMO, subject to the restrictions set forth in this Agreement.
THE MEMO shall be used only for the purpose of protected and supervised display
within the Complex absent the prior written approval of PHMemo, such approval
not to be unreasonably withheld, delayed or conditioned.

            5.5 HOTEL JV shall use THE MEMO in a careful and proper manner, and
agrees not to permit any of THE MEMO to be used in violation of any applicable
statute, law, ordinance, rule or regulation relating to the possession, use or
maintenance of THE MEMO. HOTEL JV will indemnify and hold PHII and PHMemo
harmless from any liabilities, fines, forfeitures or penalties incurred by PHII
or PHMemo in connection with a violation of any statute, law, ordinance, rule or
regulation of any duly constituted public authority by HOTEL JV related to the
use of THE MEMO. HOTEL JV shall maintain at HOTEL JV's expense all necessary
permits and licenses for the transportation use and display of THE MEMO.

            5.6 HOTEL JV shall not use THE MEMO in any manner that will result
in a cancellation of any insurance policy maintained by HOTEL JV on THE MEMO,
even if such use may be in furtherance of HOTEL JV's business purpose.

                                       16
<PAGE>

            5.7 HOTEL JV shall assume all obligations and liabilities concerning
possession of THE MEMO (except arising from the negligence or willful misconduct
of PHII or PHMemo or as otherwise set forth in Section 14.2) and for its use,
condition and storage during the term of this Agreement, any continuation or
extension thereof, and during its transport of THE MEMO from PHMemo to HOTEL JV
and return. HOTEL JV shall, at HOTEL JV's expense, maintain THE MEMO in the same
condition as it was received.

            5.8 Without the prior written consent of PHMemo, which consent shall
not be unreasonably withheld, conditioned or delayed, HOTEL JV shall not make
any alterations, repairs, additions or improvements to THE MEMO. All additions
to and improvements of THE MEMO of any kind shall immediately become PHMemo's
property and subject to the terms of this Agreement. HOTEL JV shall not remove,
alter, disfigure or cover up any numbering, lettering or insignia displayed on
THE MEMO. HOTEL JV shall give PH Memo prompt notice of any need for alteration,
repair, maintenance, conservation work, addition or improvement to THE MEMO.
PHMemo shall have the right to conduct any work done on THE MEMO; provided that
the costs for such work shall not exceed a commercially competitive arm's length
market price.

            5.9 It is agreed that PHMemo, at its discretion during HOTEL JV's
regular business hours and following not less than twenty-four hours prior
written notice, has the right to enter the premises where THE MEMO may be
located, for the purpose of inspecting THE MEMO in order to make a determination
of its condition and manner of use. If any of THE MEMO covered is not being
properly maintained or utilized according to the provisions of this Agreement as
reasonably determined by PHMemo, PHMemo has the right, but not the obligation,
if such failure is not cured within thirty (30) days following written notice,
to have it repaired or maintained at a service facility at the expense of HOTEL
JV (not to exceed the actual out of pocket costs of PHII or PHMemo for such
work).

            5.10 It is agreed by HOTEL JV that HOTEL JV shall use commercially
reasonable efforts to cause THE MEMO to be equitably and proportionately
distributed and located between the Planet Hollywood Restaurant (to the extent
the Planet Hollywood Restaurant is constructed and operated pursuant to Section
2.3 above) and the remainder of the Complex, and PHII and PHMemo hereby consent
thereto.

            5.11. HOTEL JV assumes all risk of loss of and damage to THE MEMO
during the term of this Agreement and during any period of transport or storage
while THE MEMO is in route from PHMemo to HOTEL JV or from HOTEL JV to PHMemo,
from any cause whatsoever. No loss or damage to THE MEMO will impair any
obligation of HOTEL JV, PHII or PHMemo with respect to THE MEMO under this
Agreement, which will continue in full force and effect. If any of THE MEMO is
damaged, lost, stolen or destroyed, HOTEL JV shall promptly notify PHMemo of the
occurrence and shall file all necessary reports, including those required by
applicable law and those required by interested insurance companies.

                                       17
<PAGE>

            5.12 HOTEL JV shall maintain in full force and effect at all times
during the term of this Agreement and any extensions or renewals thereof,
comprehensive insurance against loss, theft, damage or destruction of THE MEMO
in an aggregate amount of not less than the replacement value, together with
liability coverage and such other coverage as may be reasonably required by
PHMemo. Such insurance providers and policies shall be subject to the prior
written approval of PHMemo and shall name PHMemo and PHII as loss payees. PHII
and PHMemo agree that such insurance may be included as part of HOTEL JV's
overall insurance program.

            5.13 HOTEL JV shall pay all actual out of pocket shipping costs,
freight permit fees, bonding fees, storage costs and insurance costs incurred
directly in connection with the shipment of THE MEMO from PHMemo to HOTEL JV and
its return.

            5.14 On expiration or earlier termination of this Agreement, HOTEL
JV shall, at HOTEL JV's expense, return THE MEMO to PHMemo in the same
conditions as when received, by loading THE MEMO on board such carrier as PHMemo
shall reasonably specify or approve in writing, and shipping the property by
freight to a domestic destination designated by PHMemo. HOTEL JV, at HOTEL JV's
expense, shall fully insure THE MEMO against loss or damage during transport,
with PHMemo and PHII as loss payees.

            5.15 PHMemo reserves the absolute right to recover, from time to
time with the prior written reasonable approval of HOTEL JV (and during the
occurrence and continuance of an Event of Default under the Loan Agreement, the
prior written reasonable approval of the Lenders), at PHMemo's expense, any item
of THE MEMO; provided that PHMemo provides HOTEL JV with reasonable prior
written notice and a reasonable substitute item of equal or higher value at the
same time. Such a substitution shall not be considered an amendment of this
Agreement and shall not affect the terms of this Agreement

            5.16 In the event that any item(s) of THE MEMO shall (a) be
conclusively determined to not be authentic items of memorabilia as described on
EXHIBIT B as updated and revised from time to time subject to the provisions of
this Agreement, or (b) HOTEL JV, in its reasonable discretion, determines that a
change in public perception with respect to any particular item(s) of THE MEMO
and the continued display of such particular item(s) of THE MEMO shall cause
material and continuing damage to the brand image or goodwill of HOTEL JV,
PHMemo, at PHMemo's expense, shall remove such item(s) of THE MEMO and provide
HOTEL JV with a reasonable substitute item of equal or higher value at the same
time of the removal with the prior written reasonable approval of HOTEL JV (and
following an Event under the Loan Agreement, the prior written reasonable
approval of the Lenders).

      6. STANDARD OF QUALITY

            6.1.HOTEL JV agrees that all uses of THE MARKS by HOTEL JV and its
sub-licensees and in connection with the operation and promotion of the Planet
Hollywood

                                       18
<PAGE>

Hotel, the Licensed Services and the Licensed Complimentary Products and the
Provided Goods shall be of a quality at least as good as and according to the
Standard of Quality established in this Section 6.

            6.2.The Licensed Services, Licensed Complimentary Products and
Provided Goods shall comply with, at the minimum, the following Standard of
Quality (hereinafter referred to as "Standard of Quality"):

                  (a) for facilitating the establishment of the Standard of
Quality with respect to the Licensed Services, HOTEL JV and PHII acknowledge and
agree that such Standard is evidenced, represented, exemplified, and met by the
operation of a first-class hotel with a casino, bar, incidental sundries,
amenities, gift-shops and ancillary and related uses customarily found in a
first class hotel and equal to or better than the level of service and quality
prevailing from time to time at Sheraton-managed hotels (or hotels of a similar
quality operated by another Manager approved by Lenders under the Loan
Agreement); and

                  (b) for facilitating the establishment of the pertinent
Standard of Quality with respect to Licensed Complimentary Products and Provided
Goods which HOTEL JV may produce and/or procure other than through PHII, HOTEL
JV and PHII acknowledge and agree that such Standard of Quality is evidenced,
represented, exemplified, and met by representative samples of such Licensed
Complimentary Products and Provided Goods which HOTEL JV shall submit to PHII
without charge for PHII's written approval, which shall not be unreasonably
withheld, conditioned or delayed; after approval by PHII of such, any and all
such Licensed Complimentary Products distributed, offered and/or provided by
HOTEL JV on a complimentary basis and any and all such Provided Goods sold
within the Complex shall be of a quality at least as good as the approved
samples;

            6.3. The Licensed Complimentary Products and Provided Goods which
PHII to provides to HOTEL JV for the sale or distribution or offer for sale or
distribution shall be of a quality at least as good as the comparable samples
sold by PHII or its affiliated entities and/or franchisees at its respective
themed restaurants as of the date the products are purchased. For any and all
Licensed Complimentary Products and/or Provided Goods for which there is not a
comparable sample sold by PHII or its affiliate entities and/or franchisees,
PHII acknowledges and agrees that such goods will be of a "first rate" quality
as determined by first class hotel industry standards and equal to or better
than the level of service and quality prevailing from time to time at
Sheraton-managed hotels (or other hotels of a similar quality operated by
another Manager approved by Lenders under the Loan Agreement).

            6.4. The license granted pursuant to this Agreement shall only
extend to the Licensed Services and Licensed Complimentary Products and Provided
Goods which are either (a) submitted to PHII for the examination, observation,
screening, sampling and/or testing, as provided herein, for compliance with the
Standard of Quality; or (b) provided by PHII or its affiliates to Hotel JV.
Notwithstanding the foregoing, once PHII has approved of a particular

                                       19
<PAGE>

Licensed Service, Licensed Complimentary Product or Provided Good, further
approvals of such particular Licensed Service, Licensed Complimentary Product or
Provided Good shall not be required.

            6.5. To ensure that the Standard of Quality is being met, PHII or
its representatives shall have the right to conduct inspections of any portion
of the Complex or any location where Licensed Services are being rendered and/or
Licensed Complimentary Products or Provided Goods are being distributed upon
reasonable written notice to Hotel JV (but not less than twenty-four hours
written notice). Such inspections shall be conducted no more than four (4) times
during any given calendar year at no expense to HOTEL JV and during the normal
business hours of HOTEL JV's executive management with no disturbance to the
guests and to the operations of the Complex. Prior to the initial sale,
rendering or offering by HOTEL JV of any Licensed Services or Licensed
Complimentary Products or Provided Goods under or in connection with THE MARKS
or any of the other Licensed Rights, HOTEL JV shall make same available to PHII
for PHII's written approval, which approval shall not be unreasonably withheld,
conditioned or delayed.

      7. TRADEMARK NOTICE DESIGNATION AND PROTECTION

            7.1. HOTEL JV shall use the expression "the trademark Planet
Hollywood used under License" or any reasonable equivalent thereof as required
by any applicable law and/or whenever such may be used with reasonable
convenience in conjunction with any and all advertising and promotional
materials used in connection with the Complex and the Licensed Services and such
other expressions as may be reasonably requested by PHII or PHMemo in writing in
connection with the display and exhibition of THE MEMO.

            7.2. HOTEL JV shall, as noted in EXHIBIT A or when advised by PHII
in writing: (a) use a notice of trademark and/or service mark registration
conforming to law directly after THE MARKS (e.g., (R)); (b) use the designation
"SM" or "TM" directly after THE MARKS in connection with any unregistered use of
THE MARKS in conjunction with the Licensed Services, Licensed Complimentary
Products and Provided Goods, as reasonably appropriate; and (c) use the
copyright notice as reasonably appropriate (e.g., (C)). Upon PHII's addition of
any new marks or designs to EXHIBIT A, such marks or designs shall also bear the
appropriate notice.

            7.3. HOTEL JV shall give written notice to PHII of any
infringements, dilution or counterfeits of, or any unfair competition affecting
THE MARKS or Intellectual Property Rights in connection with the Complex, the
Licensed Services, the Licensed Complimentary Products and the Provided Goods
known to Hotel JV promptly upon becoming aware of such occurrences and to
cooperate at PHII's sole expense in any action regarding these matters which
PHII may, in its reasonable discretion, deem appropriate. PHII shall take or
institute any action PHII deems advisable regarding such matters at its own
expense and for its own account. In the event PHII prosecutes an action through
to completion either by settlement or adjudication, PHII shall be entitled to
the entirety of any amounts received as compensation for damages. If PHII

                                       20
<PAGE>

determines to take no action with respect to said infringements, dilution,
counterfeits or unfair competition, PHII shall provide reasonable written notice
within a reasonable time period to HOTEL JV of such determination, in which
event HOTEL JV may, at its own expense and for its own account, and with PHII's
cooperation (including joining as a party), prosecute said action, in which case
HOTEL JV shall be entitled to the entirety of any amounts received as
compensation for damages thereof.

      8. PROMOTIONS AND MARKETING

            8.1. At PHII's sole cost, PHII shall provide or cause other
affiliates of PHII to provide for, in good faith and a highly professional
manner, the following marketing and promotional services ("Promotional
Services") to HOTEL JV:

                  (a) Reasonable assistance regarding the creative aspects,
conceptual planning, design and operation of the Planet Hollywood theme of the
Complex; and

                  (b) Reasonable assistance regarding public relations
strategies and campaigns to advertise the Complex.

      9. AGREEMENT TERM

            9.1. Unless sooner terminated pursuant to the terms and provisions
of this Agreement, this Agreement shall be in full force and effect for a term
expiring at midnight on that date which is twenty-five (25) years following the
Effective Date hereof and three (3) automatic ten (10) year renewals provided
that HOTEL JV is not in default of its obligations under this Agreement beyond
any applicable cure period at the expiration of the initial term or any renewal
term.

            9.2. Upon the termination or expiration of this Agreement pursuant
to the terms and provisions of this Agreement for any cause, HOTEL JV and its
sub-licensees shall, in a commercially reasonable manner, but in no event to
exceed nine (9) months following such termination or expiration, discontinue all
use of the PHII Intellectual Property, THE MARKS, the DOMAIN NAMES, and THE
MEMO, including without limitation, such indicia on exterior or interior signs,
stationary, operating equipment and furniture, fixtures and equipment
(collectively, the "Proprietary Materials") and discontinue the use of the Hotel
Website; provided, however, that HOTEL JV shall discontinue the use of
consumable supplies (including, without limitation, brochures, promotional
materials and Licensed Complimentary Products) containing Proprietary Materials
within ninety (90) days following such termination or expiration. HOTEL JV shall
have a further obligation to cause all sub-licensees to, in a commercially
reasonable manner, but in no event to exceed nine (9) months following such
termination or expiration, discontinue all use of Proprietary Materials. Until
such time as HOTEL JV and its sub-licensees have discontinued all use of the
Proprietary Materials of the Planet Hollywood Hotel, the Continuing Fee shall
continue to be payable to PHII. In addition, if HOTEL JV or any of its
sub-licensees

                                       21
<PAGE>

fails to comply with the foregoing requirements, HOTEL JV shall pay to PHII, in
addition to the Continuing Fee and as liquidated damages, the sum of Two
Thousand Five Hundred Dollars ($2,500) per day for each day that HOTEL JV fails
to comply with the foregoing; and, in addition, PHII shall also be entitled to
damages or relief by injunction, or to any other right or remedy at law or in
equity, and may seek such relief in a court of competent jurisdiction for HOTEL
JV's failure to comply with this Section 9.2.

            9.3. If, upon the expiration or earlier termination of this
Agreement, HOTEL JV fails or refuses to return THE MEMO to PHMemo, PHMemo shall
have the right, subject to the provisions of Section 14.2 and due process
limitations under appropriate law, to take possession of THE MEMO and for that
purpose to enter into the premises where THE MEMO is located, without being
liable to HOTEL JV for such removal or any damages occasioned thereby in any
suit, action or other proceedings, unless such damages are caused by PHMemo's
negligence.

      10. BOOKS AND ACCOUNTING

            10.1. HOTEL JV shall provide to PHII that information as and when
required to be provided Lenders pursuant to Sections 7.2(a); 7.2(b); 7.2(d);
7.2(j); 7.2(k); 7.2(l) and such other financial information as is reasonably
requested by PHII in order for PHII to confirm the payment of the Continuing Fee
and the Retail Royalties.

            10.2. HOTEL JV shall keep accurate books of account and records
covering all transactions relating to the license hereby granted, and PHII and
its duly authorized representatives shall have the right, no more frequently
than four (4) times in any calendar year, to an examination of said books of
account and records and of all other relevant documents and materials in the
possession or under the control of HOTEL JV with respect only to the subject
matter and terms of this Agreement upon five (5) business days' written notice.
Any such examination shall be conducted on reasonable notice and during normal
business hours of HOTEL JV's executive management with no disturbance to guests
or to the operations of the Complex. All books of account and records with
respect to each calendar year shall be kept available for at least three (3)
years after such calendar year. In the event that PHII's duly authorized
representative shall discover an underpayment of fees of two percent 2% or more
pursuant to any such examination, HOTEL JV shall pay to PHII the reasonable cost
of such examination. Fees found to be due as a result of PHII's examination of
HOTEL JV's books of account shall be paid within thirty (30) days of the
completion of the audit with interest calculated in the manner described above
with interest at ten percent (10%) per annum from the date the amount should
have been paid to PHII, up to and including the month of payment. Any
overpayment by HOTEL JV to PHII shall promptly be reported and paid by PHII to
HOTEL JV after PHII's discovery of such discrepancy.

            10.4. PHII shall at its own expense provide to HOTEL JV within
ninety (90) days after the completion of each fiscal year a statement certified
by PHII's Chief Financial Officer of all Licensed Complimentary Products and
Provided Goods provided to Hotel JV.

                                       22
<PAGE>

      11. COMPLIANCE WITH LAWS

            11.1. HOTEL JV shall be responsible for compliance with applicable
federal, state, local and municipal rules, laws and regulations regarding any
and all operations of the Complex, the Licensed Services and the manufacture,
distribution and sale of any and all Licensed Complimentary Products and
Provided Goods to the extent not provided to HOTEL JV by PHII or its affiliates.

            11.2. Neither HOTEL JV nor any of its sub-licensees shall violate
any applicable law, regulation, or court order in conjunction with its use of
THE MARKS or THE MEMO.

            11.3. PHII shall be responsible for compliance with applicable
federal state, local and municipal rules, laws and regulations regarding the
manufacture, distribution, delivery and sale of any and all Provided Goods or
Licensed Complimentary Products sold or distributed by PHII or its affiliates
pursuant to this Agreement and the promotions and marketing services provided
pursuant to Section 8 of this Agreement.

            11.4. PHII shall not, nor shall PHII permit any of its sub-licensees
to violate any law, regulation, or court order in conjunction with its use of
THE MARKS or THE MEMO.

      12. TERMINATION

            12.1. This Agreement shall terminate immediately and automatically
by its own force without notice (other than a required notice expressly set
forth below) on the date specified below in the event that PHII, PHMemo or HOTEL
JV, as applicable, shall have given written notice to the other parties stating
that a material breach or default has occurred and is continuing under this
Agreement (a "Default Notice"):

            (i) With respect to the payment of any Continuing Fees, or other
amounts owed to PHII, or with respect to any payment owed to HOTEL JV by PHII or
PHMemo, five (5) business days following receipt of such written Default Notice;

            (ii) With respect to any other default other than a default pursuant
to Section 12.1(i) above, PHII, PHMemo or HOTEL JV, as applicable, thirty (30)
days of receipt of such Default Notice if PHII, PHMemo or HOTEL JV, as
applicable, fail to cure such default within such period; provided that if such
default is not reasonably capable of being cured within such thirty (30) day
period, the party in default commences such cure within such thirty (30) day
period and thereafter diligently cures such default as soon as possible, but not
greater than one hundred twenty (120) days following the occurrence of such
default; or

            (iii) If HOTEL JV causes the direct or indirect transfer of all or
part of (i) HOTEL JV's ownership interests in the Complex, or (ii) the ownership
interests in HOTEL JV of the Complex to a third party or (iii) otherwise assigns
this Agreement to any party (other than the

                                       23
<PAGE>

Lender or other Purchaser as defined in the Subordination Agreement in
accordance therewith) (in each instance a "Sale" and in each instance in
accordance with the terms and conditions of the Loan Agreements), HOTEL JV shall
have the right to terminate this Contract as set forth below.

                  (a) If a Sale of the Complex by HOTEL JV occurs before the
third (3rd) anniversary of the Grand Opening, then this Agreement may not be
terminated incident to or as a result of any such sale of the Complex except as
is otherwise set forth in the Licensor Subordination and Cooperation Agreement
attached hereto as Exhibit D.

            (b) If a Sale of the Complex by HOTEL JV occurs at any time after
the third (3rd) anniversary of the Grand Opening and on or before the sixth
(6th) anniversary of the Opening Date, then HOTEL JV or, if the Sale of the
Complex is to a Competitor, PHII may terminate this Agreement by giving written
notice to the other party on or prior to the Sale of the Complex. Termination
shall be effective upon the Sale of the Complex unless HOTEL JV and PHII agree
otherwise. In the event of such a termination, HOTEL JV shall pay PHII a
termination fee equal to: (i) the number of months (prorating partial months on
the actual number of days elapsed) between the Sale of the Complex and the sixth
(6th) anniversary of the Opening Date; (ii) multiplied by two (2) times the
Continuing Fee and Retail Royalties earned by PHII during the most recent twelve
(12) full calendar months preceding the Sale of the Complex; (iii) divided by
twelve (12).

                  (c) If a Sale of the Complex by HOTEL JV occurs at any time
after the sixth (6th) anniversary of the Opening Date, then this Agreement may
be terminated (i) by HOTEL JV if the Sale of the Complex is not to a Competitor
or (ii) by either HOTEL JV or PHII if the Sale of the Complex is to a
Competitor. Termination under this subsection shall be effected by giving
written notice to the other party on or prior to the Sale of the Complex unless
Owner and Manager agree otherwise. No termination fee or other similar fee or
compensation is payable for a termination implemented under this subsection.

For purposes of this Section 12.1(iii) , the term "Competitor" shall mean an
entity directly or indirectly engaged, whether by direct or indirect ownership
or management, of themed restaurants. Nothing contained in this Section
12.1(iii) shall impair any rights of the Lender under Section 17.5 and the
Subordination Agreement, including, without limitation the right, but not the
obligation, to terminate this Agreement without the payment of any fees
following the occurrence and continuation of an Event of Default (as set forth
the Loan Agreement) as is outlined in Section 17.5 and the Subordination
Agreement attached hereto as Exhibit D.

Notwithstanding the foregoing, other than the ability of PHII to terminate this
Agreement in the event of a Sale to a Competitor, the provisions of this Section
12.1(iii) shall not be effective, and shall be of no force and effect (and,
other than unpaid OpBiz Accruals (as such term is defined in the License
Subordination Agreement) shall not give rise to any claim in any bankruptcy or
other proceeding by or against HOTEL JV) until (1) the Obligations (as such term
is defined in the Loan Agreement) and the Noteholder Obligations (as such term
is defined in the Securities Purchase Agreement), including all extensions,
modifications, restatements or amendments

                                       24
<PAGE>

thereof, are indefeasibly paid in full and performed, (2) the Warrants (as such
term is defined in the Securities Purchase Agreement) have been exercised in
full or otherwise retired, and (3) after the conditions set forth in clauses (1)
and (2) have been satisfied, (A) if a Qualified Public Offering has not
occurred, the date on which the Warrants and the Warrant Interests beneficially
owned (as such term is defined in Rule 13d-3 under the Securities Exchange Act
of 1934) by the Noteholders is, in the aggregate, on an as exercised basis less
than 10% of the outstanding equity interests in MEZZCO on a fully-diluted basis,
and (B) if a Qualified Public Offering has occurred, the date that is nine
months following the consummation of such Qualified Public Offering (the time at
which the conditions set forth in clauses (1), (2) and (3) above are met, the
"Effective Time"), it being expressly understood and agreed that the provisions
of this Section 12.1(iii) shall automatically be deleted (and shall be of no
force or effect) upon the occurrence of any foreclosure or transfer in lieu of
foreclosure under the Loan Agreement or the Securities Purchase Documents (as
defined in the Securities Purchase Agreement).

      12.2 Until the Effective Time, it is expressly agreed by the parties
hereto that the commencement of any administrative, legal or equitable action or
proceeding against HOTEL JV or its property seeking any reorganization,
arrangement, composition, readjustment, liquidation, bankruptcy or any other
action involving the readjustment of all or any part of its indebtedness, or
other similar relief under the United States Bankruptcy Code or any present or
future state or foreign statute, law or regulation relative to HOTEL JV or its
properties or any proceedings for voluntary liquidation, dissolution or other
winding up of HOTEL JV's business, or the appointment of any trustee, receiver
or liquidator for HOTEL JV or any part of its properties or any assignment for
the benefit of creditors or any marshaling of assets of HOTEL JV by or against
HOTEL JV (each, a Proceeding") shall not constitute a default triggering the
termination provisions of Section 12.1 above.

      12.3 Until the Effective Time, it is further expressly agreed by the
parties hereto that a "Change of Control" (as defined in the Securities Purchase
Agreement), whether as a result of a Proceeding or otherwise, shall not
constitute a default triggering the termination provisions of Section 12.1
above. PHII, PHMemo and HOTEL JV further agree to execute and deliver all such
assignments, consents, instruments and other documents as may be reasonably
necessary to confirm that the Licensed Rights vest with any successor entity.

      12.4. The rights with respect to THE MARKS and THE MEMO granted to HOTEL
JV under this Agreement are, and shall otherwise be deemed to be, for the
purposes of Section 365(n) of the Bankruptcy Code, an exclusive license of
"intellectual property" rights as defined in Section 101(35)(A) of the
Bankruptcy Code. Notwithstanding anything to the contrary in this Agreement,
HOTEL JV as the exclusive licensee of rights under this Agreement, may fully
exercise all of its rights for itself under the Bankruptcy Code, including, but
not limited to, its rights to continue to exercise its rights licensed
hereunder. Specifically and for the avoidance of doubt, the parties hereby agree
that in the event of a bankruptcy of HOTEL JV, prior to the Effective Time, PHII
and PHMemo will consent to the assumption or assumption and assignment of this
Agreement by or to: (a) HOTEL JV as debtor or debtor-in-possession (or any
trustee appointed in respect thereof); or (b) HOTEL JV's parent EquityCo, L.L.C.
or any wholly

                                       25
<PAGE>

owned subsidiary of EquityCo, L.L.C. It is further agreed that PHII and PHMemo
waive any and all rights under Section 365(c)(1) of the Bankruptcy Code that
would otherwise preclude performance of HOTEL JV's obligations hereunder by a
third party or the assumption or assignment of this Agreement.

      12.5. It is the express intention of the parties hereto that a default
under this Agreement shall not constitute a default under the Restaurant License
Agreement and that a default under the Restaurant License Agreement shall not
constitute a default under this Agreement.

      12.6 If HOTEL JV abandons the acquisition of the Complex for any reason
(including, without limitation, termination of the Purchase Agreement,
non-approval of HOTEL JV's purchase of the Complex by the Bankruptcy Court,
failure to enter into the Loan Agreement or the failure of the Loan Agreement to
close, construction nonfeasibility, environmental conditions, general economic
conditions, or a force majeure event), HOTEL JV (with the prior written consent
of the Lenders to the extent such consent is required by the Purchase and Sale
Agreement or the Loan Agreement) shall have the right to terminate this
Agreement and the Restaurant License Agreement by written notice to PHII and PH
Memo in connection with such abandonment, without payment of any damages,
termination fees or other compensation to PHII and PH Memo under this Agreement.
If HOTEL JV recommences the acquisition of the Premises, at the option of PHII
and PH Memo to be exercised by giving written notice to HOTEL JV within thirty
(30) days after PHII and PH Memo obtains actual knowledge of such
recommencement, this Agreement shall be reinstated.

      12.7 Until the Effective Time, neither PHII nor PHMemo shall be entitled
to any claim (other than for unpaid OpBiz Accruals) or payment of any kind upon
the termination of this Agreement for any reason whatsoever whether in a
Proceeding or otherwise, including, without limitation, a termination by PHII in
the event of a Sale to a Competitor.

      13. CONFIDENTIALITY

            13.1. The parties acknowledge and agree that all information they
obtain from the other party during the term of this Agreement which, by its
nature, is confidential, or which is marked as "confidential" by the other party
will be treated as confidential information. No party shall: (a) acquire any
interest in any other party's confidential information; (b) use any other
party's confidential information in any other business or capacity; or (c) fail
to exert its reasonable efforts to maintain the confidentiality of any other
party's confidential information during and after the term hereof.

            13.2. Notwithstanding anything to the contrary contained in this
Agreement, the restrictions on disclosure and use of the aforementioned
confidential information shall not apply to: (a) information, processes or
techniques which are or become generally known to the general public or became
available to a party on a non-confidential basis from a source which is not
known by the other party to be bound by a confidentiality agreement with respect
to such information; (b) disclosure of the confidential information in judicial,
arbitration or

                                       26
<PAGE>

administrative proceedings, to the extent that the disclosing party is legally
compelled to disclose such information, provided disclosing party shall have
afforded the applicable other party the opportunity to obtain an appropriate
protective order or other assurance of confidential treatment for the
information required to be so disclosed; or (c) information that a party is
required to disclose in reports filed with the Securities Exchange Commission or
other regulatory bodies (including the Nevada Gaming Authorities) or in their
respective annual reports or financial statements or as otherwise required by
law or regulation, provided that the disclosing party to the extent possible
provides written notice to and consults with the owning party prior to the
making of any such disclosure; (d) disclosure as required pursuant to the terms
of financing agreements between Hotel JV and third parties; (e) disclosure to
any Manager as required to implement the Management Agreement; or (f) disclosure
required to implement development of the Time Share Premises (as such term is
defined in the Loan Agreement).

      14. INDEMNIFICATION AND INSURANCE

            14.1. HOTEL JV shall indemnify and save harmless PHII and its
shareholders, members, affiliates, officers, employees and agents from all
liability, loss, damage, claim, fines, penalties, cost or expense (including,
without limitation, reasonable attorneys' fees and disbursements, judgments,
fines and amounts paid in settlement) (collectively, "Claims") arising from or
relating to any breach of this Agreement by HOTEL JV or otherwise arising from
or relating to the Complex and its operations, including, without limitation,
the Licensed Services, Licensed Complimentary Products and Provided Goods prior
to termination of this Agreement, except for those liabilities set forth in
Section 14.2 herein or as otherwise directly or indirectly caused solely by
PHII's negligence, willful misconduct or fraud in connection with the
performance of its obligations hereunder. In no event, however, shall this
provision be deemed to create a third-party beneficiary relationship between
HOTEL JV and any third party or give rise to any claim for consequential damages
on the part of PHII. In case of any action, suit or proceeding brought against
PHII, its shareholders, members, affiliates, officers, employees and agents
arising from or relating to the Licensed Services and Licensed Complimentary
Products and Provided Goods, PHII will notify HOTEL JV of such action, suit or
proceeding and HOTEL JV may and, upon PHII's request, shall, at HOTEL JV's sole
cost and expense, defend such action, suit or proceeding, or cause the same to
be defended by counsel designated by HOTEL JV, except for Claims involving
PHII's negligence, willful misconduct or fraud.

            14.2. PHII represents and warrants (i) that it or PHMemo, as
applicable, is the rightful owner of the PHII Intellectual Property and other
tangible property that is the subject of this Agreement, including, without
limitation, THE MARKS, the DOMAIN NAMES and THE MEMO; (ii) that THE MARKS and
the DOMAIN NAMES constitute all of the trademarks owned or controlled and used
in connection with the operation of domestic Planet Hollywood restaurants and
retail outlets; (iii) Planet Hollywood International, Inc. is the
successor-in-interest by merger with Planet Hollywood, Inc., a Florida
corporation and Planet Hollywood, Inc., a Delaware corporation and as such is
the owner of all trademarks, design marks, trade names and other intellectual
property registered to or owned by such merged corporations, and (iv) that it

                                       27
<PAGE>

has the right to grant the license granted herein. Further, PHMemo represents
and warrants that PHMemo has the right to provide THE MEMO to HOTEL JV for the
purposes set forth in this Agreement and that THE MEMO constitutes those
authentic pieces of memorabilia as described on EXHIBIT B and that THE MEMO, THE
MARKS and the DOMAIN NAMES are free and clear of all liens except as provided in
Schedule 1. PHII hereby indemnifies and saves harmless HOTEL JV and the Lenders
and undertakes to indemnify HOTEL JV and the Lenders and their respective
shareholders, members, affiliates, officers, employees and agents against,
successors and assigns and to hold HOTEL JV and the Lenders harmless from any
Claims, irrespective of whether such Claims are asserted by private or public
parties, arising in whole or in part out of or relating to (a) any breach of
this Agreement by PHII or PHMemo, including, without limitation, the
representations and warranties and covenants set forth herein, or (b) any actual
or alleged trademark infringement and/or dilution, service mark infringement
and/or dilution, trade dress infringement and/or dilution, copyright
infringement , unfair competition, deceit or other unfair business practices or
other actual or alleged infringement of the intellectual property rights of any
third party to the extent arising out of (i) the use of THE MARKS, THE MEMO and
the DOMAIN NAMES; (ii) the use of the PHII Intellectual Property in compliance
with the provisions of this Agreement; and/or (iii) a breach by PHII and/or
PHMemo of their respective obligations under this Agreement and (c) the
violation of statute, law, ordinance rule or regulation in connection with THE
MARKS, THE MEMO or the DOMAIN NAMES (not caused by HOTEL JV's use, in which case
the previsions of Section 5.4 shall apply) excepting such Claims arising from
HOTEL JV or the Lenders negligence, willful misconduct or fraud. However, in no
event shall HOTEL JV's right to indemnification as set forth in this subsection
extend to circumstances involving actual or alleged acts of unfair competition
not involving HOTEL JV's use of THE MARKS or PHII's Intellectual Property in
compliance with the provisions of this Agreement committed by HOTEL JV, its
assigns, licensees, and/or sub-licensees.

            14.3. In addition to the insurance requirements for THE MEMO as set
out in Section 5.11 of this Agreement, to the extent not equal to or provided
for in the Operating Agreement, the Management Agreement or the Loan Agreement,
HOTEL JV agrees that it shall obtain and maintain, or cause to be maintained, at
its own expense, product liability insurance providing adequate general
liability insurance protection to include without limitation product liability
insurance in the minimum amount of $5,000,000 combined single limit of bodily
injury liability and property damage liability for each occurrence and annual
aggregate, naming PHII as an additional insured, and to provide to PHII as proof
of such insurance certificates of insurance no later than thirty (30) days after
the date this Agreement is executed by HOTEL JV. HOTEL JV shall continuously
keep PHII current as to any modification to each insurance policy. PHII shall be
entitled to a copy of the then prevailing certificate of insurance for each such
insurance, which shall be promptly furnished to PHII by HOTEL JV. Upon written
request, HOTEL JV shall provide PHII with a copy of each such policy of
insurance then in effect. PHII shall be notified by each insurance carrier a
minimum of thirty (30) days before any cancellation or modification to the
particular policy.

                                       28
<PAGE>

      15. REMEDIES

            15.1. (a) Each of HOTEL JV and its sub-licensees recognizes the
great value of the goodwill that is associated with Proprietary Materials, PHII
Intellectual Property Rights, THE MARKS, THE MEMO and the Trade Dress and
acknowledges that such all rights therein and goodwill pertaining thereto,
belong exclusively to PHII, and that the PHII Intellectual Property is expected
to have an established meaning in the mind of the public. Each of HOTEL JV and
its sub-licensees further recognizes and acknowledges that a breach by it of any
of its covenants, agreements, obligations, and/or undertakings hereunder will
cause PHII irreparable damage, which may not be remedied in damages in an action
at law, and may, in addition thereto, constitute an infringement of PHII's
rights in and to the PHII Intellectual Property.

                  (b) In accordance with the acknowledgements set forth in
Section 15.1(a), PHII shall be entitled to seek from a court of competent
jurisdiction an injunction or restraining order or obtain a decree for specific
performance for the terms of this Agreement; all such remedies sought shall be
in addition to all other rights and remedies of PHII or such rights and remedies
determined by a court of competent jurisdiction to be appropriate under the
circumstances;

            15.2. PHII recognizes the great value of the goodwill that is
expected to become associated with the HOTEL JV Intellectual Property and
acknowledge that such HOTEL JV Intellectual Property and all rights therein and
goodwill pertaining thereto, belong exclusively to HOTEL JV. PHII further
recognizes and acknowledges that a breach by it of any of its covenants,
agreements, obligations, and /or undertakings hereunder may cause HOTEL JV
irreparable damage, which may not be remedied in damages in an action at law,
and may, in addition thereto, constitute an infringement of HOTEL JV's rights in
and to the HOTEL JV Intellectual Property whereby HOTEL JV may be entitled to
seek an injunction or restraining order or obtain a decree for specific
performance for the term of this Agreement, as applicable and appropriate. All
such remedies sought shall be in addition to all other rights and remedies of
HOTEL JV or such rights and remedies determined pursuant to this Agreement.

      16. NOTICES

            16.1. All notices or other communications required or permitted
under this Agreement shall be made in writing and shall be deemed given (a) upon
delivery, if sent by (1) personal delivery, (2) courier (e.g., overnight
delivery) or (3) certified mail, return receipt requested, postage and
registration fees prepaid and correctly addressed to the parties at the
following addresses (b) upon sending, if sent by facsimile to a party at the
number listed below for such party (with a facsimile machine or computer
generated confirmation sheet retained by the sender):

                                       29
<PAGE>

         If to PHII:                Mr. Robert Earl
         or PHMemo                  Chairman and Chief Executive Officer
                                    Planet Hollywood International, Inc.
                                    7598 West Sand Lake Road
                                    Orlando, Florida 32819
                                    Facsimile: (407) 351-4511

                                    with copies to:

                                    Mark S. Helm, Esq.
                                    Vice President & General Counsel
                                    Planet Hollywood International, Inc.
                                    7598 West Sand Lake Road
                                    Orlando, Florida 32819
                                    Facsimile: (407) 345-1115

         If to HOTEL JV:            Mr. Robert Earl
                                    Chairman and Chief Executive Officer
                                    Planet Hollywood International, Inc.
                                    7598 West Sand Lake Road
                                    Orlando, Florida 32819
                                    Facsimile: (407) 351-4511

         With a copy to:            Mr. Doug Teitelbaum
                                    Bay Harbour Management, LC
                                    885 Third Avenue, 34th Floor
                                    New York, NY 10022
                                    Facsimile:(212) 371-7497

         With a copy to:            Jones Day
                                    2727 North Harwood
                                    Dallas, TX 75201
                                    Attn: Michael Weinberg, Esq.
                                    Facsimile: (214) 969-5100

         If to LENDERS:             The Bank of New York, Asset Solutions
                                    Division as Agent
                                    600 East Las Colinas Blvd.
                                    Suite 1300
                                    Irving, Texas 75039
                                    Attn: Mr. Steve Jerard
                                    Facsimile:(972) 401-8555

                                       30
<PAGE>

         With a copy to             Kaye Scholer, L.L.P.
                                    3 First National Plaza, Suite 4100
                                    70 West Madison Street
                                    Chicago, IL 60602
                                    Attn:  Michael Solow, Esq.
                                    Facsimile:(312) 583-2361
                                    Attn: Michael Santoro, Esq.
                                    Facsimile: (310) 788-1200

         With further copy to:      General Electric Capital Corporation
                                    Capital Funding, Inc.
                                    Portfolio Group
                                    401 Merritt Seven, 2nd Floor
                                    Norwalk, Connecticut 06856
                                    Attention: Jennifer Lane
                                               Judy Langan
                                    Telephone: (203) 229-1831
                                    Facsimile: (203) 229-1992

         And:                       Shea & Carlyon. Ltd.
                                    233 S. Fourth Street, Second Floor
                                    Las Vegas, Nevada 89101
                                    Attention: Candace Carlyon, Esq.
                                    Telephone: (702) 471-7432
                                    Facsimile: (702) 471-7435

         If to the Noteholders:     Post Advisory Group, LLC
                                    11755 Wilshire Blvd.
                                    Suite 400
                                    Los Angeles, CA  90025

         With a copy to             Goodwin Procter LLP
                                    Exchange Place
                                    Boston, MA 02109
                                    Attn: Steven M. Ellis, Esq.
                                    Facsimile:(617) 523-1231

or to such other address or facsimile number as either party hereto may
designate by written notice. The parties shall acknowledge in writing any notice
given by personal delivery.

                                       31
<PAGE>

      17. MISCELLANEOUS

            17.1. (a) This Agreement and the Restaurant License Agreement set
forth the entire agreement and understanding between the parties and supersede
and terminate all prior agreements, if any, relating in any way to the use of
THE MARKS, the DOMAIN NAMES and the MEMO by the parties, or to any other subject
matter contained herein, and merges all prior discussions between them. Neither
party has made or is making any representation or warranty (express or implied)
to the other with respect to the subject matter hereof, or to any of their
respective affiliates, agents, employees or consultants, except for those
expressly set forth in this Agreement. This Agreement shall not be construed
more strictly against one party than against the other merely by virtue of the
fact that this Agreement may have been physically prepared by one of the
parties, or such party's counsel, it being agreed that all parties and their
respective counsel have mutually participated in the negotiation and preparation
of this Agreement. Neither of the parties shall be bound by any definition,
condition, warranty or representation other than as expressly stated in this
Agreement. In the event of any inconsistency between this Agreement and the
Restaurant License Agreement, the provisions of this Agreement shall prevail.

                  (b) This Agreement may not be amended or modified except by a
written instrument signed by all of the parties and executed on behalf of PHII
by their chief executive officer, executive vice president, corporate secretary
or general counsel. Further, apart from immaterial modifications, this Agreement
may not be amended or modified without the consent of (y) the Majority Holders
(as defined in the Securities Purchase Agreement), which consent shall not be
unreasonably withheld or delayed so long as any such amendment or modification
does not adversely affect the interests of the Noteholders (as defined in the
Securities Purchase Agreement), and (z) the Required Term Loan A Lenders (as
defined in the Loan Agreement), which consent shall not be unreasonably withheld
or delayed so long as any such amendment or modification does not adversely
affect the interests of the Required Term Loan A Lenders.

            17.2. Except as expressly provided herein, neither party shall use
the name or credit of the other in any manner whatsoever, nor incur any
obligation in the other's name, nor be held liable or accountable for any
obligations incurred by the other party. Nothing herein contained shall be
construed to constitute the parties as joint venturers or partners, nor shall
any similar relationship be deemed to exist between them. Nothing contained in
this Agreement shall be construed as constituting either party as the other's
agent without the first party's special authorization in writing; it is
specifically understood and agreed that under no circumstance shall any power
granted, or which may be deemed to be granted to either party, be deemed to be
coupled with an interest; and it is further specifically understood and agreed
that the respective businesses of each of the parties shall be operated separate
and apart from the other party.

            17.3. No covenant or condition of this Agreement can be waived
except by the written agreement of the parties, executed on behalf of PHII by
their chief executive officer, executive vice president, corporate secretary or
general counsel. Forbearance or indulgence by a

                                       32
<PAGE>

party in any regard whatsoever shall not constitute a waiver of the covenant or
condition to be performed by the other party to which the same may apply, and,
until complete performance by the obligated party of such covenant or condition,
the benefiting party shall be entitled to invoke any remedy available to it
under this Agreement or at law or in equity, despite such forbearance or
indulgence.

            17.4. The terms and provisions of this Agreement shall bind any
assigns and successors of a party; provided, however, that any such assignee
shall assume all of the duties, obligations, rights, liabilities, agreements,
covenants and responsibilities of the assigning party hereunder. An assigning
party shall not be released from any such duty, obligation, liability,
agreement, covenant or responsibility to the other party as a result of any
assignment permitted by this Section, unless and to the extent the same shall
have been fulfilled by such assignee, and the assigning party shall continue to
remain primarily liable to the other party under this Agreement.

            17.5. Each party hereby agrees that this Agreement and the licenses
granted hereby are not assignable or transferable, without the prior written
consent of the Required Lenders (as such term is defined in the Loan Agreement)
and the Majority Holders (as such term is defined in the Securities Purchase
Agreement), which consent shall not be unreasonably withheld, delayed or
conditioned, except that no consent of the Majority Holders shall be required if
the Lenders succeed, by foreclosure or assignment in lieu of foreclosure, to the
interests of HOTEL JV hereunder upon or after an Event of Default under the Loan
Agreement or to the interests of PHII or PH Memo upon or after an Event of
Default or under the Planet Hollywood Security Agreement (as defined in the Loan
Agreement). PHII may assign this Agreement in whole to any Person which is
controlled by PHII. HOTEL JV may assign its interest in and rights under this
Agreement and the licenses granted hereunder to the Lenders or to any Person
designated by the Lenders. PHII and PHMemo agree to execute an "Assignment of
Contract" substantially in the form of Exhibit P to the Loan Agreement and
Licensor Subordination and Cooperation in the form of the attached Exhibit D,
which provides, among other things, that following the occurrence and
continuance of an Event of Default under the Loan Agreement, the Lenders may (a)
terminate this Agreement without payment of any penalty or termination fees or
(b) succeed to the interests of HOTEL JV and either retain or sell such interest
to a third party assignee in connection with the Complex without the payment of
any fees (other than the continuation of Continuing Fees, Retail Royalties and
other fees and charges set forth in this Agreement payable during the period of
time Lenders had title to the Complex); provided, however, that any third party
shall assume all of the duties, obligations, rights, liabilities, agreements,
covenants and responsibilities of HOTEL JV hereunder; provided further, however,
that if the Lenders succeed to HOTEL JV's interest in the Complex and License
and this Agreement is not terminated, the Lenders shall recognize this Agreement
and perform the obligations of the License during such period that Lenders own
the Complex (but shall have no obligation to assume this Agreement).

            17.6. The parties hereto, when requested by another party, shall
give all

                                       33
<PAGE>

reasonable and necessary cooperation with respect to any reasonable matters
relating to the transactions contemplated by this Agreement.

            17.7. This Agreement is for the benefit of, and may be enforced only
by, the parties signing this Agreement and their respective successors and
permitted assignees, and is not for the benefit of, and may not be enforced by,
any third party.

            17.8. The parties agree that this Agreement, all questions with
respect to the construction of this Agreement shall be governed by and
determined in accordance with the laws of the State of New York applicable to
agreements entered into and performed entirely within the State of New York
without giving effect to the choice or conflicts of laws provisions thereof.
Each of the parties hereto (i) irrevocably submits itself to the jurisdiction of
either the United States District Court for New York or the New York State
Courts, for the purposes of any suit, action or other proceeding brought by the
other, or its respective successors or assigns, with respect to this Agreement,
and (ii) to the extent permitted by applicable law, hereby waives, and agrees
not to assert, by way of motion, as a defense or otherwise in any such suit,
action or proceeding, any claim that it is not personally subject to the
jurisdiction of the above-named courts, that the suit, action or proceeding is
brought in an inconvenient forum, or that the venue of the suit, action or
proceeding is improper in such courts.

            17.9. If any section (or part thereof) of this Agreement is found by
a court of competent jurisdiction to be contrary to, prohibited by,
unenforceable or invalid under any applicable law, such court may modify such
section (or part thereof) to achieve the parties' apparent objective in
connection therewith to the fullest extent possible, so, as modified, such
section (or part thereof) will be valid, legal and enforceable in such
jurisdiction. The validity, legality and enforceability of such provision shall
not in any way be affected or impaired thereby in any other jurisdiction. If
such provision cannot be amended by said court without materially altering the
intention of the parties, the parties shall negotiate an amendment to such
provision within ninety (90) days, failing which such provision shall be
stricken and the remainder of this Agreement shall continue in full force and
effect.

            17.10. Unless the context of this Agreement clearly requires
otherwise: (i) references to the plural include the singular and vice versa;
(ii) references to any person include such person's successors and assigns but,
if applicable, only if such successors and assigns are permitted by this
Agreement; (iii) references to one gender include all genders; (iv) "including"
is not limiting; (v) "or" has the inclusive meaning represented by the phrase
"and/or"; (vi) the words "hereof", "herein", "hereby", "hereunder" and similar
terms in this Agreement refer to this Agreement as a whole and not to any
particular provision of this Agreement; (vii) section, subsection, clause,
schedule and exhibit references are to this Agreement unless otherwise
specified; (viii) reference to any agreement (including this Agreement),
document or instrument means such agreement, document or instrument as amended
or modified and in effect from time to time in accordance with the terms thereof
and, if applicable, the terms hereof; and (ix) general or specific references to
any law means such law as amended, modified, codified or re-enacted,

                                       34
<PAGE>

in whole or in part, and in effect from time to time.

            17.11. All monetary amounts expressed in this Agreement and all
payments required by this Agreement are and shall be in United States dollars.

            17.12 In the event that the Senior Debt (as defined in the
Securities Purchase Agreement) is paid in full (and not refunded, refinanced or
replaced), subject to reinstatement as provided in the Intercreditor Agreement
(Senior Debt) (as defined below) all references to "Lenders" in this Agreement
shall instead be deemed a reference to "Noteholders" (as defined in the
Securities Purchase Agreement), with the effect being that all rights and
remedies in this Agreement reserved for the Lenders will instead be rights and
remedies of the Noteholders. In furtherance thereof, all references to the terms
"Loan Agreement" and "Obligations" will instead be deemed to be references to
"Securities Purchase Agreement" and "Noteholder Obligations", respectively.

            17.13 This Agreement and all rights, remedies, powers and privileges
of PHII and PHMemo hereunder are and shall be subject in all respects to the
License Subordination Agreement dated as of August 9, 2004 and entered into
among Post Advisory Group, L.L.C., as collateral agent, PHII, PHMemo and
consented to by HOTEL JV (the "License Subordination Agreement"). The License
Subordination Agreement provides, among other things, that notwithstanding
anything in this Agreement to the contrary, that upon the occurrence and during
the continuance of certain Defaults or Events of Default under the Securities
Purchase Agreement, no cash payments may be made by HOTEL JV to PHII or PHMemo
in respect of any amounts due and owing pursuant to this Agreement, including,
without limitation, in respect of the Continuing Fee, Retail Royalties,
liquidated damages pursuant to Section 9.2 hereof, or interest on overdue
payments pursuant to Section 10.2 hereof.

            17.14. This Agreement and all rights, remedies, powers and
privileges of the Collateral Agent and the Noteholders hereunder are junior and
subject to the rights of the Lenders under (i) the Subordination Agreement dated
as of August 9, 2004 by and among The Bank of New York Asset Solutions Division,
as agent and the Noteholders (the "Intercreditor Agreement (Senior Debt)"). (ii)
the Planet Hollywood Security Agreement (as defined in the Loan Agreement), and
(iii) the Subordination Agreement.

            This Agreement may be executed in two or more counterparts, each of
which shall be deemed an original, but all of which together shall constitute
one and the same instrument.

                                       35
<PAGE>

            IN WITNESS WHEREOF, the parties have hereunto signed this Agreement
the day and year first written herein.

                                    PLANET HOLLYWOOD
                                    INTERNATIONAL, INC.,
                                    a Delaware corporation

                                    By: /s/ Robert Earl
                                        ---------------------------------
                                    Name: Robert Earl
                                    Title: President

                                    PLANET HOLLYWOOD
                                    MEMORABILIA, INC.,
                                    a Florida corporation

                                    By: /s/ Robert Earl
                                        ---------------------------------
                                    Name: Robert Earl
                                    Title: President

                                    PLANET HOLLYWOOD
                                    (REGION IV), INC.,
                                    a Minnesota corporation

                                    By: /s/ Robert Earl
                                        ---------------------------------
                                    Name: Robert Earl
                                    Title: President

          [SIGNATURE PAGE TO AMENDED AND RESTATED LICENSING AGREEMENT]
<PAGE>

                                    OPBIZ, L.L.C.
                                    a Nevada limited liability  company

                                    By: MezzCo, L.L.C.,
                                        a Nevada limited liability company
                                        its sole member

                                    By: EquityCo, L.L.C.,
                                        a Nevada limited liability company,
                                        its sole member

                                    By: /s/ Douglas P. Teitelbaum
                                        -------------------------------
                                    Name: Douglas P. Teitelbaum
                                    Title: Manager

          [SIGNATURE PAGE TO AMENDED AND RESTATED LICENSING AGREEMENT]<PAGE>
                                                                    EXHIBIT 10.1

                             STOCK OPTION AGREEMENT

THIS OPTION HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE SOLD OR OTHERWISE
DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH
ACT AND APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN APPLICABLE EXEMPTION
FROM THE REGISTRATION REQUIREMENTS OF SUCH ACT AND SUCH LAWS.

         THIS STOCK OPTION AGREEMENT ("AGREEMENT"), is made and entered into as
of the 31st day of August, 2004 by and between Heartland Bancshares, Inc.
("HEARTLAND"), an Indiana corporation, and Blue River Bancshares, Inc. ("BLUE
RIVER"), an Indiana corporation,

                              W I T N E S S E T H:

         WHEREAS, Heartland and Blue River have entered into an Agreement of
Affiliation and Merger ("MERGER AGREEMENT") dated of even date herewith
contemporaneously with the execution of this Agreement. The Merger Agreement
provides for, among other items, the merger of Heartland and Blue River (the
"MERGER") and the conversion of each issued and outstanding share of common
stock of Heartland at the Effective Time (as defined in the Merger Agreement)
into the right to receive 2.54 shares of common stock of Blue River, as may be
adjusted under the Agreement, from Blue River; and

         WHEREAS, Heartland has paid to Blue River the sum of One Hundred and
No/100 Dollars ($100.00) in consideration for the grant of the Option (as
hereinafter defined) by Blue River to Heartland, which has been granted to
further induce Heartland to enter into the Merger Agreement; and

         WHEREAS, Heartland has advised Blue River that the grant by Blue River
of the Option pursuant to this Agreement is a condition to Heartland agreeing to
the terms of the Merger Agreement.

         NOW, THEREFORE, in consideration of the foregoing premises and the cash
payment referenced therein, the receipt of which is hereby acknowledged, the
mutual covenants and obligations set forth herein, and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto agree as follows:

         1. Grant of Option.

                  (a) Blue River hereby grants to Heartland an irrevocable
         option (the "OPTION") to purchase up to six hundred seventy-seven
         thousand eight hundred twenty-three (677,823) shares ("OPTION SHARES")
         of common stock of Blue River (the "COMMON STOCK") at a price per
         Option Share of Five and 62/100 Dollars (the "PURCHASE PRICE") on the
         terms and conditions set forth in this Agreement; provided that, in no
         event shall the

<PAGE>

         number of shares for which this Option is exercisable, together with
         the number of shares beneficially owned by Heartland other than shares
         held by Heartland or a subsidiary in a fiduciary capacity for a
         customer as to which it has no equity interest ("FIDUCIARY SHARES"),
         exceed 19.9% of Blue River's issued and outstanding shares of Common
         Stock without giving effect to any shares subject or issued pursuant to
         the Option.

                  (b) The number of shares of Common Stock subject to the Option
         shall be increased or decreased, as appropriate, in the event that any
         additional shares of Common Stock are issued or otherwise become
         outstanding (other than pursuant to this Agreement or pursuant to an
         event described in Section 8(a) of this Agreement) or existing shares
         are redeemed, retired or otherwise become no longer outstanding after
         the date of this Agreement so that, after any such issuance, redemption
         or retirement, together with the number of shares previously issued
         pursuant to this Agreement or otherwise beneficially owned by Heartland
         or a subsidiary other than Fiduciary Shares, the number of shares of
         Common Stock subject to the Option equals 19.9% of the number of shares
         of Common Stock then issued and outstanding without giving effect to
         any shares subject or issued pursuant to the Option. Nothing contained
         in this Section 1(b) or elsewhere in this Agreement shall be considered
         to authorize Blue River to issue shares in breach of any provision of
         the Merger Agreement.

         2.       Exercise of Option.

                  (a) The holder or holders of the Option (the "HOLDER") may
         exercise the Option, in whole or part, if and when at any time both an
         Initial Triggering Event (as defined below) and a Subsequent Triggering
         Event (as defined below) shall have occurred prior to the occurrence of
         an Exercise Termination Event (as defined below), provided that the
         Holder shall have sent notice of such exercise (as required by Section
         2 (f)) within six (6) months following such Subsequent Triggering Event
         (or such later date as provided in Section 10).

                  (b) Each of the following shall be an "EXERCISE TERMINATION
         EVENT" (i) consummation of the Merger at the Effective Time of the
         Merger Agreement; (ii) termination of the Merger Agreement in
         accordance with the provisions thereof if such termination occurs
         before the occurrence of an Initial Triggering Event; and (iii) the
         passage of twelve (12) months (or such longer period as is provided in
         Section 10) after termination of the Merger Agreement if such
         termination follows the occurrence of an Initial Triggering Event.
         Notwithstanding anything to the contrary in this Agreement: (i) the
         Option may not be exercised at any time when Heartland shall be in
         material breach of any of its covenants or agreements contained in the
         Merger Agreement such that Blue River shall then be entitled to
         terminate the Merger Agreement as a result of such material breach; and
         (ii) this Agreement shall automatically terminate upon the proper
         termination of the Merger Agreement (x) by Blue River as a result of
         the material breach by Heartland of its covenants or agreements
         contained in the Merger Agreement, or (y) by Blue River or Heartland if
         the approval by any federal or state governmental authority or
         regulatory or administrative agency or commission (each a "GOVERNMENTAL
         ENTITY") necessary to consummate the Merger shall have been denied by
         final nonappealable action of such agency or authority.

                                      -2-
<PAGE>

                  (c) The term "INITIAL TRIGGERING EVENT" shall mean any of the
         following events or transactions occurring on or after the date of this
         Agreement:

                           (i) Blue River or Shelby County Bank ("BLUE RIVER
                  SUBSIDIARY"), without having received Heartland's prior
                  written consent, shall have entered into an agreement to
                  engage in an Acquisition Transaction (as defined below) with
                  any person (for purposes of this Agreement, the term "person"
                  has the meaning given that term in Sections 3(a)(9) and
                  13(d)(3) of the Securities Exchange Act of 1934, as amended
                  (the "EXCHANGE ACT"), and the rules and regulations
                  thereunder) other than Heartland or any of its subsidiaries (a
                  "HEARTLAND SUBSIDIARY");

                           (ii) the board of directors of Blue River shall have
                  recommended that the shareholders of Blue River approve or
                  accept any Acquisition Transaction other than the Merger;

                           (iii) any person other than Heartland or any
                  Heartland Subsidiary shall have acquired beneficial ownership
                  or the right to acquire beneficial ownership of ten percent
                  (10%) or more of the outstanding shares of Common Stock (for
                  purposes of this Agreement, the term "BENEFICIAL OWNERSHIP"
                  has the meaning given that term in Section 13(d) of the
                  Exchange Act and the rules and regulations thereunder);

                           (iv) the shareholders of Blue River shall have voted
                  and failed to approve the Merger and the Merger Agreement at a
                  meeting that was held for that purpose or any adjournment or
                  postponement thereof, or such meeting shall not have been held
                  in violation of the Merger Agreement or shall have been
                  canceled prior to termination of the Merger Agreement if at
                  such meeting, or prior to such meeting (or if such meeting
                  shall not have been held or shall have been canceled, prior to
                  such termination), it shall have been publicly announced or
                  the shareholders of Blue River shall have been advised that
                  any person (other than Heartland or any Heartland Subsidiary)
                  shall have made a proposal to engage in an Acquisition
                  Transaction;

                           (v) the board of directors of Blue River shall have
                  failed to solicit proxies, consents or votes in favor of the
                  Merger Agreement and the Company Merger, or the board of
                  directors of Blue River shall not have recommended, or shall
                  have withdrawn or modified (or publicly announced its
                  intention to withdraw or modify) in any manner adverse in any
                  respect to Heartland its recommendation, that the shareholders
                  of Blue River approve the transactions contemplated by the
                  Merger Agreement at any meeting that was held for that
                  purpose, in anticipation of engaging in an Acquisition
                  Transaction (other than with Heartland or any Heartland
                  Subsidiary), or following a proposal to Blue River to engage
                  in an Acquisition Transaction, or Blue River or Blue River
                  Subsidiary shall have authorized, recommended or proposed (or
                  publicly announced or advised its shareholders of its
                  intention to authorize, recommend or propose) an agreement to
                  engage in an Acquisition Transaction with any person other
                  than Heartland or any Heartland Subsidiary;

                                      -3-
<PAGE>

                           (vi) any person other than Heartland or any Heartland
                  Subsidiary shall have filed with the Securities and Exchange
                  Commission ("SEC") a registration statement or tender offer
                  materials with respect to a potential exchange or tender offer
                  that would constitute an Acquisition Transaction (or filed a
                  preliminary proxy statement with the SEC with respect to a
                  potential vote by its shareholders to approve the issuance of
                  shares to be offered in such an exchange or tender offer);

                           (vii) Blue River shall have willfully and materially
                  breached any covenant or obligation contained in the Merger
                  Agreement in anticipation of engaging in an Acquisition
                  Transaction (other than with Heartland or any Heartland
                  Subsidiary), and following such breach Heartland would be
                  entitled to terminate the Merger Agreement; or

                           (viii) any person other than Heartland or any
                  Heartland Subsidiary shall have filed an application or notice
                  with the applicable Governmental Entity under the Bank Holding
                  Company Act of 1956, the Federal Deposit Insurance Act, or
                  other applicable state or federal banking laws or regulations,
                  which application or notice has been accepted for processing,
                  for approval to engage in an Acquisition Transaction.

         For purposes of this Agreement, "ACQUISITION TRANSACTION" means: (a) a
merger, consolidation, share exchange or any similar transaction, involving Blue
River or Blue River Subsidiary other than the Merger; (b) a purchase, lease or
other acquisition of all or a substantial part of the assets or deposits of Blue
River or Blue River Subsidiary; (c) a purchase or other acquisition (including
by way of merger, consolidation, share exchange or otherwise) of securities
representing ten percent (10%) or more of the voting power of Blue River or Blue
River Subsidiary; or (d) any substantially similar transaction. In this
Agreement, the phrase "in anticipation of engaging in an Acquisition
Transaction" shall include, without limitation, any action taken by Blue River's
officers or board of directors after any written or oral, authorized or
unauthorized, proposal or expression of interest has been communicated to any
member of Blue River's management or board of directors concerning an
Acquisition Transaction that in any way would involve Blue River and such
proposal or expression of interest has not been withdrawn at the time of the
action.

                  (d) The term "SUBSEQUENT TRIGGERING EVENT" shall mean either
         of the following events or transactions occurring after the date of
         this Agreement:

                           (i) the acquisition by any person (other than
                  Heartland or any Heartland Subsidiary) of beneficial ownership
                  of twenty percent (20%) or more of the then outstanding Common
                  Stock; or

                           (ii) the consummation of the Acquisition Transaction
                  that constituted an Initial Triggering Event as described in
                  clause (i) of Section 2(c), except that the percentage
                  referred to for purposes of defining "Acquisition Transaction"
                  in clause (c) of that definition shall be twenty percent
                  (20%).

                                      -4-
<PAGE>

                  (e) Blue River shall notify Heartland promptly in writing of
         the occurrence of any Initial Triggering Event or Subsequent Triggering
         Event (collectively, "TRIGGERING EVENTS"). The giving of such notice by
         Blue River shall not be a condition to the right of Holder to exercise
         the Option.

                  (f) If Holder is entitled and wishes to exercise the Option
         (or any portion thereof), it shall send to Blue River a written notice
         (the date of such notice is referred to as the "NOTICE DATE")
         specifying: (i) the total number of shares it will purchase pursuant to
         such exercise; and (ii) a place and date not earlier than three
         business days nor later than forty-five (45) business days from the
         Notice Date for the closing of such purchase (the "CLOSING DATE");
         provided, that if prior notification to or approval of any Governmental
         Entity is required in connection with such purchase, Holder shall
         promptly file the required notice or application for approval, shall
         notify Blue River of such filing, and shall expeditiously process the
         same and the period of time that otherwise would run pursuant to this
         sentence shall run instead from the date on which any required
         notification periods have expired or been terminated or such approvals
         have been obtained and any requisite waiting period or periods shall
         have passed. Any exercise of the Option shall be considered to occur on
         the Notice Date relating thereto.

                  (g) At the closing referred to in Section 2(f), Holder shall
         (i) pay to Blue River the aggregate purchase price for the shares of
         Common Stock purchased pursuant to the exercise of the Option in
         immediately available funds by wire transfer to a bank account
         designated by Blue River and (ii) present and surrender this Agreement
         to Blue River at its principal executive offices. Failure or refusal of
         Blue River to designate such a bank account or accept surrender of this
         Agreement shall not preclude Holder from exercising the Option.

                  (h) At the closing, simultaneously with the delivery of
         immediately available funds as provided in Section 2(g), Blue River
         shall deliver to Holder a certificate or certificates representing the
         number of shares of Common Stock purchased by Holder and, if the Option
         should be exercised in part only, a new Option evidencing the rights of
         Holder to purchase the balance of the shares subject to this Option.

                  (i) Certificates for Common Stock delivered at a closing under
         this Agreement may be endorsed with a restrictive legend that shall
         read substantially as follows:

         "The transfer of the shares represented by this certificate is subject
to certain provisions of an agreement, dated as of August 31, 2004, between the
registered holder hereof and Blue River Bancshares, Inc., and to resale
restrictions arising under the Securities Act of 1933, as amended. A copy of
such agreement is on file at the principal office of Blue River and will be
provided to the holder hereof without charge upon receipt by Blue River of a
written request therefor."

         It is understood and agreed that: (i) the reference to the resale
restrictions of the Securities Act of 1933, as amended (the "SECURITIES ACT"),
in the above legend shall be removed by delivery of substitute certificate(s)
without such reference if Holder shall have delivered to

                                      -5-
<PAGE>

Blue River a copy of a letter from the staff of the SEC, or an opinion of
counsel, in form and substance reasonably satisfactory to Blue River, to the
effect that such legend is not required for purposes of the Securities Act; (ii)
the reference to the provisions of this Agreement in the above legend shall be
removed by delivery of substitute certificate(s) without such reference if the
shares have been sold or transferred in compliance with the provisions of this
Agreement and under circumstances that do not require the retention of such
reference in the opinion of counsel to Holder; and (iii) the legend shall be
removed in its entirety if the conditions in the preceding clauses (i) and (ii)
are both satisfied. In addition, such certificates shall bear any other legend
as may be required by law.

                  (j) Upon the giving by Holder to Blue River of the written
         notice of exercise of the Option provided for under Section 2(f) and
         the tender of the applicable purchase price in immediately available
         funds, Holder shall be considered, subject to the receipt of any
         necessary regulatory approvals, to be the holder of record of the
         shares of Common Stock issuable upon such exercise, notwithstanding
         that the stock transfer books of Blue River shall then be closed or
         that certificates representing such shares of Common Stock shall not
         then be actually delivered to Holder. Blue River shall pay all
         expenses, and any and all federal, state and local taxes and other
         charges that may be payable in connection with the preparation,
         issuance and delivery of stock certificates under this Section 2 in the
         name of Holder or its assignee, transferee or designee.

                  (k) Notwithstanding any other provision of this Agreement to
         the contrary, in no event shall Heartland (together with any other
         Holders of the Option) purchase under the terms of this Agreement that
         number of shares of Common Stock that have a "Spread Value" (as defined
         below) in excess of the Base Surrender Price (as defined in Section 9).
         For purposes of this Agreement, "SPREAD VALUE" means the difference
         between (i) the product of (A) the sum of the total number of shares of
         Common Stock that Heartland (together with any other Holders of the
         Option) (1) intends to purchase upon exercise of the Option on the date
         of exercise and (2) previously purchased pursuant to the prior exercise
         of the Option, and (B) the average of the closing bid and asked prices
         of Blue River Common Stock as quoted on Nasdaq at the close of trading
         on the last trading day immediately preceding the date of exercise, and
         (ii) the product of (A) the total number of shares of Common Stock
         Heartland (together with any other Holders of the Option) (1) intends
         to purchase upon exercise of the Option on the date of exercise and (2)
         previously purchased pursuant to the prior exercise of the Option, and
         (B) the applicable Option Price of such shares of Common Stock. If the
         Spread Value exceeds the Base Surrender Price, the number of shares of
         Common Stock that Heartland (together with any other Holders of the
         Option) is entitled to purchase on the date of exercise shall be
         reduced to the greatest number of shares permissible such that the
         Spread Value equals or is less than the Base Surrender Price.

         3. Covenants of Blue River. Blue River agrees: (i) that it shall at all
         times maintain, free from preemptive rights, sufficient authorized but
         unissued or treasury shares of Common Stock so that the Option may be
         exercised without additional authorization of Common Stock after giving
         effect to all other options, warrants, convertible securities and other
         rights to purchase Common Stock; (ii) that it will not, by amendment to
         its Articles of Incorporation or through reorganization, consolidation,
         merger, dissolution or

                                      -6-
<PAGE>

         sale of assets, or by any other voluntary act, avoid or seek to avoid
         the observance or performance of any of the covenants, stipulations or
         conditions to be observed or performed under this Agreement by Blue
         River; (iii) promptly to take all action as may from time to time be
         required (including (x) complying with all applicable premerger
         notification, reporting and waiting period requirements and (y) if,
         under the applicable federal or state regulatory requirements or any
         state or federal banking law, prior approval of or notice to any
         Governmental Entity is necessary before the Option may be exercised,
         cooperating fully with Holder in preparing such applications or notices
         and providing such information to each such Governmental Entity as it
         may require) to permit Holder to exercise the Option and Blue River
         duly and effectively to issue shares of Common Stock pursuant to this
         Agreement; and (iv) promptly to take all action provided in this
         Agreement to protect the rights of Holder against dilution.

         4. Exchange of Option. This Agreement (and the Option granted by this
         Agreement) are exchangeable, without expense, at the option of Holder,
         upon presentation and surrender of this Agreement at the principal
         office of Blue River, for other Agreements providing for Options of
         different denominations entitling Holder to purchase, on the same terms
         and subject to the same conditions as are set forth in this Agreement,
         in the aggregate the same number of shares of Common Stock subject to
         this Option. The terms "Agreement" and "Option" as used in this
         Agreement include any stock option agreements and related options for
         which this Agreement (and the Option granted by this Agreement) may be
         exchanged. Upon receipt by Blue River of evidence reasonably
         satisfactory to it of the loss, theft, destruction or mutilation of
         this Agreement, and (in the case of loss, theft or destruction) of
         reasonably satisfactory indemnification, and upon surrender and
         cancellation of this Agreement, if mutilated, Blue River will execute
         and deliver a new Agreement of like tenor and date. Any such new
         Agreement executed and delivered shall constitute an additional
         contractual obligation on the part of Blue River, whether or not the
         Agreement so lost, stolen, destroyed or mutilated shall at any time be
         enforceable by anyone.

         5. Representations and Warranties of Blue River. Blue River hereby
         represents and warrants to Heartland as follows:

                  (a) This Agreement and the consummation by Blue River of the
         transactions contemplated hereby have been duly authorized and approved
         by all necessary corporate action on the part of Blue River, have been
         duly executed and delivered by an authorized officer of Blue River and
         constitute a valid and binding obligation of Blue River.

                  (b) Blue River is an Indiana corporation duly organized and
         validly existing under the laws of the State of Indiana and has all
         requisite corporate power and authority to execute and deliver this
         Agreement and to consummate the transactions contemplated hereby.

                  (c) Blue River has taken all necessary corporate and other
         action to authorize and reserve and to permit it to issue the Option
         Shares pursuant hereto. Blue River has taken all necessary corporate
         action to authorize, reserve and permit it to issue, and at all times
         from the date of this Agreement through the termination of this
         Agreement in

                                      -7-
<PAGE>

         accordance with its terms will have reserved for issuance upon the
         exercise of the Option, that number of shares of Common Stock equal to
         the maximum number of shares of Common Stock at any time and from time
         to time issuable under this Agreement, and all such shares, upon
         issuance pursuant to this Agreement, will be duly authorized, validly
         issued, fully paid, and nonassessable, and will be delivered free and
         clear of all claims, liens, encumbrances and security interests and not
         subject to any preemptive rights.

                  (d) Neither the execution and delivery of this Agreement nor
         the consummation of the transactions contemplated hereby will violate
         or result in any violation of or be in conflict with, result in
         acceleration or termination of or constitute a default under any term
         or provision of the Articles of Incorporation or By-Laws of Blue River
         or of any agreement, note, bond, indenture, instrument, obligation,
         judgment, decree, order, binding upon or applicable to Blue River or
         any Subsidiary or any of their respective properties or assets.

                  (e) Upon any exercise of the Option, whether in whole or in
         part, Heartland shall, with respect to the Option Shares, (i) be
         entitled to vote on all matters to come before the shareholders of Blue
         River at any meeting thereof, and (ii) be entitled to the same
         preferences, limitations and relative voting and other rights
         (including dividend and distribution rights) as possessed by all other
         holders of Blue River Common Stock.

                  (f) The representations and warranties of Blue River contained
         herein are true, accurate and complete on and as of the date hereof in
         all material respects, and shall survive the execution of this
         Agreement.

         6. Representations and Warranties of Heartland. Heartland hereby
         represents and warrants to Blue River as follows:

                  (a) This Agreement and the consummation by Heartland of the
         transactions contemplated hereby have been duly authorized and approved
         by all necessary corporate action on the part of Heartland, have been
         duly executed and delivered by an authorized officer of Heartland and
         constitute a valid and binding obligation of Heartland. Heartland is a
         corporation duly organized and validly existing under the laws of the
         State of Indiana and has all requisite corporate power and authority to
         execute and deliver this Agreement and to consummate the transactions
         contemplated hereby.

                  (b) Heartland is purchasing the Option, and will purchase any
         shares of common stock of Blue River issued to Heartland upon exercise
         of the Option, not with a view to the public distribution thereof and
         will not sell, assign or transfer the Option or any such shares of
         common stock issued to Heartland upon exercise of the Option except in
         compliance with all applicable laws and regulations and a legend to
         such effect shall be noted on the certificate or certificates
         representing the Option Shares issued upon exercise of the Option and
         stock transfer restrictions may be given with respect thereto to any
         transfer agent.

                                      -8-
<PAGE>

                  (c) The representations and warranties of Heartland contained
         herein are true, accurate and complete on and as of the date hereof and
         shall survive the execution of this Agreement.

         7. Registration Rights. Upon the occurrence of a Subsequent Triggering
         Event that occurs prior to an Exercise Termination Event, Blue River
         shall, at the request of Heartland delivered within twelve (12) months
         (or such later period as provided in Section 10) of such Subsequent
         Triggering Event (whether on its own behalf or on behalf of any
         subsequent holder of this Option (or part thereof) or owner of any of
         the shares of Common Stock issued pursuant hereto), promptly prepare,
         file and keep current a shelf registration statement under the
         Securities Act covering any shares issued and/or issuable pursuant to
         this Option and shall use its reasonable efforts to cause such
         registration statement to become effective and remain current to permit
         the sale or other disposition of any shares of Common Stock issued upon
         total or partial exercise of this Option ("OPTION SHARES") in
         accordance with any plan of disposition requested by Heartland. Blue
         River will use its reasonable efforts to cause such registration
         statement promptly to become effective and then to remain effective for
         such period not in excess of one hundred eighty (180) days from the day
         such registration statement first becomes effective or such shorter
         time as may be reasonably necessary to effect such sales or other
         dispositions. Heartland shall have the right to demand two such
         registrations. Blue River shall bear the costs of the first of the two
         such registrations (including, without limitation, Blue River's
         attorneys' fees, printing costs and filing fees, except for
         underwriting discounts or commissions, brokers' fees and the fees and
         disbursements of Heartland's counsel related thereto). Notwithstanding
         the above, if, at the time of any request by Heartland for registration
         of Option Shares as provided above, Blue River is in the process of
         registration with respect to an underwritten public offering by Blue
         River of shares of Common Stock, and if in the good faith judgment of
         the managing underwriter or managing underwriters (or, if none, the
         sole underwriter or underwriters) of such offering, the offer and sale
         of the Option Shares would interfere with the successful marketing of
         the shares of Common Stock offered by Blue River, the number of Option
         Shares otherwise to be covered in the registration statement
         contemplated by this Section 7 may be reduced; provided, that, after
         any such required reduction, the number of Option Shares included in
         such offering for the account of Holder shall constitute at least
         twenty-five percent (25%) of the total number of shares to be sold by
         Holder and Blue River in the aggregate; provided further, that if such
         reduction occurs, then Blue River shall file a registration statement
         (which shall not count as one of Holder's two demand registrations) for
         the balance of the Option Shares subject to the registration demand as
         promptly as practical as to which no reduction pursuant to this Section
         7 shall be permitted or occur and, if such required reduction occurs in
         connection with the Holder's first demand registration, the twelve (12)
         month period referred to in the first sentence of this Section shall be
         increased to twenty-four (24) months for the Holder's second demand
         registration. Each such Holder shall provide all information reasonably
         requested by Blue River for inclusion in any registration statement to
         be filed to register Option Shares. If requested by any such Holder in
         connection with such registration, Blue River shall become a party to
         any underwriting agreement relating to the sale of such shares, but
         only to the extent of obligating itself in respect of representations,
         warranties, indemnities and other agreements customarily included in
         such underwriting

                                      -9-
<PAGE>

         agreements for an issuer. Upon receiving any request under this Section
         7 from any Holder, Blue River agrees to send a copy thereof to any
         other person known to Blue River to be entitled to registration rights
         under this Section 7, in each case by promptly mailing the same,
         postage prepaid, to the address of record of the persons entitled to
         receive such copies. Notwithstanding anything to the contrary in this
         Agreement, in no event shall the number of registrations that Blue
         River is obligated to effect be increased by reason of the fact that
         there shall be more than one Holder as a result of any assignment or
         division of this Agreement.

         8. Adjustment Upon Changes in Capitalization.

                  (a) In the event of any change in, or distributions in respect
         of, the Common Stock by reason of stock dividends, split-ups, mergers,
         recapitalizations, combinations, subdivisions, conversions, exchanges
         of shares, or the like (including any stock dividend split-up or
         subdivision announced prior to the date hereof but not yet effective),
         the type and number of shares of Common Stock purchasable upon exercise
         hereof shall be appropriately adjusted and proper provision shall be
         made so that, in the event that any additional shares of Common Stock
         are to be issued or otherwise become outstanding as a result of any
         such change (other than pursuant to an exercise of the Option), the
         number of Option Shares that remain subject to the Option shall be
         increased so that, after such issuance and together with Option Shares
         previously issued pursuant to the exercise of the Option (as adjusted
         on account of any of the foregoing changes in the Common Stock), it
         equals 19.9% of the number of shares of Common Stock then issued and
         outstanding. Nothing contained in this Section 8 or elsewhere in this
         Agreement shall be deemed to authorize Blue River to breach any
         provision of the Merger Agreement.

                  (b) Whenever the number of Option Shares purchasable upon
         exercise hereof is adjusted as provided in this Section 8, the Purchase
         Price shall be adjusted by multiplying the Purchase Price by a
         fraction, the numerator of which shall be equal to the number of Option
         Shares purchasable prior to the adjustment and the denominator of which
         shall be equal to the number of shares purchasable after the
         adjustment.

         9. Right of Repurchase; Cash Surrender Right.

                  (a) At any time after the occurrence of a Repurchase Event
         (defined below): (i) at the request of Holder, delivered prior to an
         Exercise Termination Event (or such later period as provided in Section
         10), Blue River (or any successor to Blue River) shall repurchase the
         Option from Holder at a price (the "OPTION REPURCHASE PRICE") equal to
         the amount by which (x) the Market/Offer Price (as defined below)
         exceeds (y) the Option Price, multiplied by the number of shares for
         which this Option may then be exercised; and (ii) at the request of the
         owner of Option Shares from time to time (the "OWNER"), delivered prior
         to an Exercise Termination Event (or such later period as provided in
         Section 10), Blue River (or any successor to Blue River) shall
         repurchase such number of the Option Shares from Owner as Owner shall
         designate at a price (the "OPTION SHARE REPURCHASE PRICE") equal to the
         Market/Offer Price multiplied by the number of Option Shares so
         designated. The term "MARKET/OFFER PRICE" shall mean the highest of:
         (i) the price per share of Common Stock at which a tender or exchange
         offer

                                      -10-
<PAGE>

         therefor has been made after the date hereof; (ii) the price per share
         of Common Stock to be paid by any third party pursuant to an agreement
         entered into with Blue River after the date hereof; (iii) the highest
         average of the average closing bid and asked prices for shares of
         Common Stock reported on Nasdaq for a five (5) consecutive trading day
         period within the ninety (90) calendar days immediately preceding the
         date Holder gives notice of the required repurchase of this Option or
         Owner gives notice of the required repurchase of Option Shares, as the
         case may be; or (iv) in the event of a sale of all or any substantial
         part of the assets or deposits of Blue River or Blue River Subsidiary,
         the sum of the net price paid in such sale for such assets or deposits
         and the current market value of the remaining assets of Blue River as
         determined by a nationally recognized investment banking firm selected
         by Holder or Owner, as the case may be, and reasonably acceptable to
         Blue River, divided by the number of shares of Common Stock of Blue
         River outstanding at the time of such sale. In determining the
         Market/Offer Price, the value of consideration other than cash shall be
         determined by an investment banking firm selected by Holder or Owner,
         as the case may be, and reasonably acceptable to Blue River.

                  (b) Holder or Owner, as the case may be, may exercise its
         right to require Blue River to repurchase the Option and any Option
         Shares pursuant to this Section 9 by surrendering for such purpose to
         Blue River, at its principal office, a copy of this Agreement or
         certificates for Option Shares, as applicable, accompanied by a written
         notice or notices stating that Holder or Owner, as the case may be,
         elects to require Blue River to repurchase this Option and/or the
         Option Shares in accordance with the provisions of this Section 9. As
         promptly as practicable, and in any event within five business days
         after the surrender of the Option and/or certificates representing
         Option Shares and the receipt of such notice or notices relating
         thereto, Blue River shall deliver or cause to be delivered in
         immediately available funds to Holder the Option Repurchase Price
         and/or to Owner the Option Share Repurchase Price therefor or the
         portion thereof that Blue River is not then prohibited under applicable
         law and regulation from so delivering.

                  (c) To the extent that Blue River is prohibited under
         applicable law or regulation from repurchasing the Option and/or the
         Option Shares in full, Blue River shall immediately so notify Holder
         and/or Owner and thereafter deliver or cause to be delivered in
         immediately available funds, from time to time, to Holder and/or Owner,
         as appropriate, the portion of the Option Repurchase Price and the
         Option Share Repurchase Price, respectively, that it is no longer
         prohibited from delivering, within five business days after the date on
         which Blue River is no longer so prohibited; provided, that if Blue
         River at any time after delivery of a notice of repurchase pursuant to
         Section 9(b) is prohibited under applicable law or regulation from
         delivering to Holder and/or Owner, as appropriate, the Option
         Repurchase Price and the Option Share Repurchase Price, respectively,
         in full (and Blue River hereby undertakes to use its reasonable efforts
         to obtain all required regulatory and legal approvals and to file any
         required notices as promptly as practicable in order to accomplish such
         repurchase), Holder or Owner may revoke its notice of repurchase of the
         Option or the Option Shares either in whole or to the extent of the
         prohibition, whereupon, in the latter case, Blue River shall promptly:
         (i) deliver to Holder and/or Owner, as appropriate, that portion of the
         Option Repurchase

                                      -11-
<PAGE>

         Price or the Option Share Repurchase Price that Blue River is not
         prohibited from delivering; and (ii) deliver, as appropriate, either
         (A) to Holder, a new Agreement evidencing the right of Holder to
         purchase that number of shares of Common Stock obtained by multiplying
         the number of shares of Common Stock for which the surrendered
         Agreement was exercisable at the time of delivery of the notice of
         repurchase by a fraction, the numerator of which is the Option
         Repurchase Price less the portion of the Option Repurchase Price
         previously delivered to Holder and the denominator of which is the
         Option Repurchase Price, and/or (B) to Owner, a certificate for the
         Option Shares it is then so prohibited from repurchasing. If an
         Exercise Termination Event shall have occurred prior to the date of the
         notice by Blue River described in the first sentence of this Section
         9(c), or shall be scheduled to occur at any time before the expiration
         of a period ending on the thirtieth day after such date, Holder shall
         nonetheless have the right to exercise the Option until the expiration
         of such thirty (30) day period.

                  (d) For purposes of this Section 9, a "REPURCHASE EVENT" shall
         be considered to have occurred upon the occurrence of any of the
         following events or transactions after the date of this Agreement and
         prior to the occurrence of an Exercise Termination Event (or such later
         date as provided in Section 10):

                           (i) the acquisition by any person (other than
                  Heartland or any Heartland Subsidiary) of beneficial ownership
                  of fifty percent (50%) or more of the then outstanding Common
                  Stock; or

                           (ii) the consummation of any Acquisition Transaction
                  described in clause (i) of Section 2(c), except that the
                  percentage referred to for purposes of defining "ACQUISITION
                  TRANSACTION" in clause (c) of that definition shall be fifty
                  percent (50%).

                  (e) Heartland may, at any time following a Repurchase Event
         that occurs prior to the occurrence of an Exercise Termination Event
         (or such later period as provided in Section 10), relinquish the Option
         (together with any Option Shares issued to and then owned by Heartland)
         to Blue River in exchange for a cash fee equal to the Surrender Price;
         provided, that Heartland may not exercise its rights pursuant to this
         Section 9(e) if Blue River has repurchased the Option (or any portion
         thereof) or any Option Shares pursuant to Section 9(a). The "Surrender
         Price" shall be equal to $1,000,000 (the "BASE SURRENDER PRICE") (i)
         plus, if applicable, Heartland's purchase price with respect to any
         Option Shares and (ii) minus, if applicable, the excess of (A) the net
         cash amounts, if any, received by Heartland pursuant to the sale of
         Option Shares (or any other securities into which such Option Shares
         were converted or exchanged) to any party, over (B) the Option Price.

                  (f) Heartland may exercise its right to relinquish the Option
         and any Option Shares pursuant to Section 9(e) by surrendering to Blue
         River, at its principal office, a copy of this Agreement together with
         certificates for Option Shares, if any, accompanied by a written notice
         stating (i) that Heartland elects to relinquish the Option and Option
         Shares, if any, in accordance with the provisions of Section 9(e) and
         (ii) the Surrender

                                      -12-
<PAGE>

         Price. The Surrender Price shall be payable in immediately available
         funds on or before the second business day following receipt of such
         notice by Blue River.

                  (g) To the extent that Blue River is prohibited under
         applicable law or regulation from paying the Surrender Price to
         Heartland in full, Blue River shall immediately so notify Heartland and
         thereafter deliver or cause to be delivered, from time to time, to
         Heartland, the portion of the Surrender Price that it is no longer
         prohibited from paying, within five business days after the date on
         which Blue River is no longer so prohibited; provided, that if Blue
         River at any time after delivery of a notice of surrender pursuant to
         Section 9(f) is prohibited under applicable law or regulation from
         paying to Heartland the Surrender Price in full: (i) Blue River shall
         (A) use its reasonable efforts to obtain all required regulatory and
         legal approvals and to file any required notices as promptly as
         practicable in order to make such payments, (B) within five (5) days of
         the submission or receipt of any documents relating to any such
         regulatory and legal approvals, provide Heartland with copies of the
         same, and (C) keep Heartland advised of both the status of any such
         request for regulatory and legal approvals, as well as any discussions
         with any relevant regulatory or other third party reasonably related to
         the same; and (ii) Heartland may revoke such notice of surrender by
         delivery of a notice of revocation to Blue River and, upon delivery of
         such notice of revocation, the date of any Exercise Termination Event
         shall be extended to a date six (6) months from the date on which the
         Exercise Termination Event would have occurred if not for the
         provisions of this Section 9(g) (during which period Heartland may
         exercise any of its rights under this Agreement, including any and all
         rights pursuant to this Section 9).

         10. Extension of Certain Time Periods. The time periods for the
         exercise of certain rights under Sections 2, 7, 9, and 11 shall be
         extended: (i) to the extent necessary to obtain all regulatory
         approvals for the exercise of such rights (for so long as the Holder or
         Owner, as the case may be, is using reasonable efforts to obtain such
         regulatory approvals) and for the expiration of all statutory waiting
         periods; (ii) to the extent necessary to avoid liability under Section
         16(b) of the Exchange Act by reason of such exercise; and (iii) in the
         event that an Initial Triggering Event may occur pursuant to Section
         2(c)(vii) of this Agreement, after the passage of a period of time or
         cure period under the Merger Agreement, for a period of time equal to
         any notice or cure periods provided to Blue River in connection with
         any breach that would permit Heartland to terminate the Merger
         Agreement.

         11. Assignment. Neither party to this Agreement may assign any of its
         rights or obligations under this Agreement or the Option created under
         this Agreement to any other person without the express written consent
         of the other party, except that if a Subsequent Triggering Event shall
         have occurred prior to an Exercise Termination Event, Heartland,
         subject to the express provisions of this Agreement, may assign in
         whole or in part its rights and obligations under this Agreement;
         provided, that until the date thirty (30) days following the date on
         which the last of all applicable Governmental Entities has approved an
         application by Heartland to acquire the shares of Common Stock subject
         to the Option, Heartland may not assign its rights under the Option
         except in: (i) a widely dispersed public distribution; (ii) a private
         placement in which no one party acquires the right to purchase in
         excess of two percent (2%) of the voting shares of Blue River; (iii) an

                                      -13-
<PAGE>

         assignment to a single party (such as a broker or investment banker)
         for the purpose of conducting a widely dispersed public distribution on
         Heartland's behalf; or (iv) any other manner approved by all applicable
         Governmental Entities.

         12. Cooperation. Heartland and Blue River each will use its reasonable
         efforts to make all filings with, and to obtain consents of, all third
         parties and Governmental Entities necessary to the consummation of the
         transactions contemplated by this Agreement.

         13. Injunction; Specific Performance. Each of the parties hereto hereby
         acknowledges that the other party will suffer irreparable damage and
         injury and will not have an adequate remedy at law in the event of any
         breach of any of its obligations under this Agreement. Accordingly, in
         the event of such a breach or of a threatened or attempted breach, in
         addition to all other remedies to which each party hereto is entitled
         to at law, each party shall be entitled to a temporary and permanent
         injunction (without the necessity of showing any actual damage) or a
         decree of specific performance of the provisions hereof, and no bond or
         other security shall be required in that connection. The remedies
         described in this Section 13 shall not be exhaustive and shall be in
         addition to all other remedies that either party may have at law, in
         equity or otherwise.

         14. Miscellaneous.

                  (a) This Agreement shall be binding upon and inure to the
         benefit of the parties hereto and their respective successors and
         permitted assigns.

                  (b) This Agreement may be modified, amended or supplemented
         only by a written agreement executed by the parties hereto.

                  (c) All notices, requests and other communications hereunder
         shall be in writing and shall be delivered by hand, by certified United
         States mail (return receipt requested, first-class postage pre-paid) or
         by overnight express receipted delivery service (i) to Blue River
         Bancshares, Inc., at 29 East Washington Street, Shelbyville, Indiana
         46176, attention: Russell Breeden, III, and (ii) to Heartland
         Bancshares, Inc., at 420 North Morton Street, Franklin, Indiana 46131,
         attention: Steve Bechman.

                  (d) In case any one or more of the provisions contained herein
         shall, for any reason, be held to be invalid, illegal or unenforceable
         in any respect, such invalidity, illegality or unenforceability shall
         not affect any other provision of this Agreement, but this Agreement
         shall be construed as if such invalid, illegal or unenforceable
         provision or provisions had never been contained herein. All provisions
         of this Agreement are severable from one another, and the
         unenforceability or invalidity of any provision of this Agreement shall
         not affect the validity or enforceability of the remaining provisions
         of this Agreement. Should any court or government agency or authority
         interpreting this Agreement deem any provision to be unreasonably broad
         or unenforceable, the parties intend for such court, agency or
         authority, to the greatest extent possible, to reduce the breadth,
         scope or amount of the provision to the maximum legally allowable
         parameters or amount rather than deeming such provision completely
         unenforceable or invalid. If for

                                      -14-
<PAGE>

         any reason such court, agency or authority determines that Holder is
         not permitted to acquire, or Blue River is not permitted to repurchase
         pursuant to Section 9, the full number of shares of Common Stock
         provided in Section 1 (as such number may be adjusted pursuant to this
         Agreement), it is the express intention of Blue River to allow Holder
         to acquire or to require Blue River to repurchase such lesser number of
         shares as may be permissible, without any amendment or modification of
         this Agreement.

                  (e) This Agreement may be executed in any number of
         counterparts, each of which shall be an original, but all of which
         together shall constitute one and the same agreement.

                  (f) The headings in this Agreement have been inserted solely
         for convenience and ease of reference and shall not be considered in
         the interpretation or construction of this Agreement.

                  (g) This Agreement shall be governed by and construed in
         accordance with the laws of the State of Indiana without giving effect
         to the choice of law principles thereof.

                  (h) This Agreement supersedes all other prior understandings,
         commitments, representations, negotiations or agreements, whether oral
         or written, between the parties hereto relating to the matters
         contemplated by this Agreement and constitutes the entire agreement
         between the parties hereto relating to the subject matter hereof.

                  (i) No waiver by any party hereto of any right or provision of
         this Agreement shall be effective unless the same shall be in writing
         and signed by the waiving party. The failure in one or more instances
         of any party to enforce any term or provision of this Agreement or to
         exercise any right or remedy shall not prohibit any subsequent
         enforcement or exercise thereof or constitute a waiver of any such
         term, provision, right or remedy. The waiver by any party hereto of a
         breach of or noncompliance with any term, covenant, restriction or
         provision of this Agreement shall not operate or be construed as a
         continuing waiver or as a waiver of any other or subsequent breach or
         noncompliance hereunder.

                  (j) This Agreement is the product of negotiation by both
         parties hereto and shall be deemed to have been drafted by both parties
         hereto. This Agreement shall be construed in accordance with the fair
         meaning of its provisions and its language shall not be strictly
         construed against, nor shall ambiguities be resolved against, either
         party.

                  (k) For purposes of this Agreement, the term "ENTITY" shall
         mean any individual, person, proprietorship, partnership, limited
         liability company, corporation, organization, firm, business, joint
         venture, association, trade group, trust or other entity whatsoever.

                  (l) Except as otherwise expressly provided by this Agreement,
         each party shall bear and pay all costs and expenses incurred by it or
         on its behalf in connection with the transactions contemplated under
         this Agreement, including fees and expenses of its own financial
         consultants, investment bankers, accountants, and counsel.

                                   * * * * * *

                                      -15-
<PAGE>

         IN WITNESS WHEREOF, the undersigned have executed, entered into and
delivered this Agreement as of the day and year first above written.

                                         BLUE RIVER BANCSHARES, INC.

                                         By: /s/ Russell Breeden, III
                                             -----------------------------------
                                             Russell  Breeden,   III,
                                             Chairman  and  Chief  Executive
                                             Officer

ATTEST:

By:   /s/ Randy J. Collier
     ----------------------------
     Randy J. Collier, Secretary

                                         HEARTLAND BANCSHARES, INC.

                                         By: /s/ Steve Bechman
                                             -----------------------------------
                                             Steve Bechman, President

ATTEST:

By:   /s/ Jeffrey L. Goben
     ---------------------------
     Jeffrey L. Goben, Secretary

                                      -16-

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