Document:

FORMAL AGREEMENT

                                     BETWEEN

                           DR. SEUSS ENTERPRISES, L.P.

                                       AND

                                    MCA INC.

                                TABLE OF CONTENTS

                                                                            PAGE

FORMAL AGREEMENT...............................................................1

I.       PROJECT DESCRIPTION                                                   1

II.      APPROVALS AND CONSULTATIONS...........................................2

III.     GRANTS OF RIGHTS AND FINANCIAL TERMS..................................3

         A.       RIGHTS ACQUIRED                                              3

                  1.       Theme Park Rights and Related Advertising Rights....3

                  2.       Merchandise Rights..................................5

                  3.       Retained Rights.....................................5

         B.       FINANCIAL TERMS..............................................6

IV.      OTHER THEME PARKS.....................................................9

         A.       GRANT OF RIGHTS..............................................9

         B.       FINANCIAL TERMS..............................................9

V.       OVERALL MERCHANDISING RELATIONSHIP...................................10

VI.      MISCELLANEOUS LEGAL .................................................10

TERMS AND CONDITIONS...........................................................1

1.       DEFINITIONS...........................................................1

         a.       Dr. Seuss Elements...........................................1

         b.       Attraction...................................................1

         c.       Theme Park...................................................2

         d.       MCA..........................................................2

2.       WARRANTY OF TITLE.....................................................2

3.       COPYRIGHT/TRADEMARK...................................................4

4.       INDEMNITIES...........................................................7

5.       TERM..................................................................8

6.       CREATIVE MATERIALS....................................................8

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7.       CONFIDENTIALITY.......................................................8

8.       NOTICES/PAYMENTS......................................................9

9.       FURTHER INSTRUMENTS..................................................10

10.      SUCCESSOR(S) IN INTEREST.............................................10

11.      AUDIT AND REVIEW.....................................................10

12.      BREACH/CURE..........................................................11

13.      NO JOINT VENTURE.....................................................12

14.      FORCE MAJEURE........................................................12

15.      MISCELLANEOUS........................................................12

                                       ii

                                FORMAL AGREEMENT
                                     BETWEEN
                           DR. SEUSS ENTERPRISES, L.P.
                                       AND
                                    MCA INC.

         Dr. Seuss Enterprises, L.P. ("Dr. Seuss Enterprises") and MCA INC.
("MCA") hereby agree as of April 21, 1994, to the following terms and conditions
relating to the grant from Dr. Seuss Enterprises of certain specified theme park
and related merchandising rights in the Dr. Seuss properties listed on Exhibit A
attached hereto (the "Properties") to MCA (as defined in Section 1(d) of the
Terms and Conditions) (such Terms and Conditions attached hereto as Exhibit B
and incorporated by this reference herein), all as set forth below ("Formal
Agreement"). This Formal Agreement is entered pursuant to the provisions of
Section VI, paragraph "L," of that certain agreement between Dr. Seuss
Enterprises and MCA effective April 21, 1994 (known as the "Short Form
Agreement") and supersedes said Short Form Agreement.

I.  PROJECT DESCRIPTION

         MCA is developing a complete destination resort on approximately 800
acres owned by it and a partner in Orlando, Florida, on which Universal Studios
Florida is located and attracted over seven million visitors in 1993, which will
include a second gated theme park, "The Second Gate".

         "The Second Gate" will be similar in size, quality and originality to
Universal Studios Florida and is expected to generate even greater attendance,
stay time and visitor expenditures given the unique appeal of the park and the
synergies which will arise from a total destination resort concept.

         Within "The Second Gate", as a major component, MCA proposes to include
a totally themed environment based on Dr. Seuss properties which may be called
"The World of Dr. Seuss". The World of Dr. Seuss will be substantially similar
to that described in the conceptual materials previously furnished to Dr. Seuss
Enterprises (subject to the technical and budgetary feasibility of developing
the concepts presented), and any significant deviations will be subject to Dr.
Seuss Enterprises' reasonable approval, provided such approval will be exercised
in a manner so as to permit the development of The World of Dr. Seuss in a
reasonable manner. As contemplated, and as previously presented to Dr. Seuss
Enterprises, The World of Dr. Seuss will include shows, rides and other
entertainment attractions as well as Dr. Seuss themed facilities and carts
selling food and merchandise.

         No other proprietary characters, materials or trademarks may be
presented as attractions or elements of The World of Dr. Seuss without the
consent of Dr. Seuss Enterprises,

                                       1

except in connection with temporary special events such as parades that pass
through the area and except as provided herein.

         Within The World of Dr. Seuss the preponderance of logo merchandise
sold will be that which is licensed from Dr. Seuss Enterprises, and in no event
will a Dr. Seuss character or other Dr. Seuss material, including trademarks, be
combined on any item (other than the applicable theme park name and logo) of
merchandise with any non-Dr. Seuss character or material without the consent of
Dr. Seuss Enterprises.

         Within The World of Dr. Seuss there will be no items of merchandise or
service sold which are inappropriate for or inconsistent with the Dr. Seuss
image such as packaged alcoholic products, cigarettes, "adult" entertainment or
products, and the like.

II. APPROVALS AND CONSULTATIONS

         The Merchandise sold and Attractions within The World of Dr. Seuss will
be designed in consultation with representatives of Dr. Seuss Enterprises, and
all major Attractions (as well as all Merchandise developed for sale) will be
subject to approval of Dr. Seuss Enterprises which will not be withheld in an
unreasonable manner and will be exercised in a manner so as to permit the
development of The World of Dr. Seuss in a reasonable manner.

         Because of the extensive time and effort (as well as cost) involved in
designing and constructing theme park attractions, including the multi-million
dollar attractions planned for The World of Dr. Seuss, approvals need to be
granted or denied in a timely manner. Accordingly, if Dr. Seuss Enterprises does
not respond within two weeks after presentation of a written request for
approval, such silence will be deemed an approval; provided, however, that if
the exigencies of production or preparing merchandising, advertising or
promotional materials require a shorter approval period, Dr. Seuss Enterprises
will, upon request, use best efforts to respond on an expedited basis. Rejection
from Dr. Seuss Enterprises will include specific reasons and, to the extent
feasible, suggested revisions that would make the submittal acceptable. Dr.
Seuss Enterprises agrees to keep MCA notified in writing as to which officer
and/or agent of Dr. Seuss Enterprises is designated to give its consent and/or
approval hereunder.

         Once specific design/development stages (such as storyboards or
schematic drawings or artwork for theme park elements and drawing and
specifications for items of merchandise) are approved for elements of The World
of Dr. Seuss and Dr. Seuss Merchandise, such elements or merchandise items can
continue in development and be deemed approved unless MCA shall make significant
deviation in the same.

                                       2

         All theme park elements and merchandise will be of the comparable high
quality maintained by MCA throughout Universal Studios Florida.

         Approval rights will be exercised consistent with the following
criteria:

         1. The specific theme park use or merchandise must be of high quality
and consistent with the standards maintained by MCA throughout Universal Studios
Florida.

         2. Dr. Seuss Elements must not be portrayed in a manner which is
demeaning, derogatory, or inconsistent with their character.

         3. Dr. Seuss Elements must be portrayed in a manner that is not
inconsistent with their portrayal in the licensed properties in forms of use
previously approved by Dr. Seuss Enterprises or in the underlying books.

         4. Dr. Seuss Elements must reflect artistic quality and preservation of
the integrity of the characters consistent with that of the Properties.

III. GRANT OF RIGHTS AND FINANCIAL TERMS

     A.  RIGHTS ACQUIRED

         1. Theme Park Rights and Related Advertising Rights

         Subject to the approvals as previously set forth, Dr. Seuss Enterprises
grants to MCA the worldwide exclusive license to use Dr. Seuss Elements in
Attractions at Theme Parks (all as defined in Section 1 of the Terms and
Conditions). Use of Dr. Seuss Properties is subject to the reservations or
exceptions set forth on Exhibit A.

              a. The parties acknowledge that the book Oh, the Places You'll Go!
and the story "What Was I Scared Of?" from the book Sneetches and Other Stories
are subject to an existing agreement with TriStar Pictures, Inc. and may not be
used under this Formal Agreement for a period of seven (7) years from July 13,
1994.

              b. The parties acknowledge that "Daisy-Head Mayzie", an as-yet
unpublished book, is subject to a holdback of seven years from the date of first
broadcast or ten years from July 23, 1993, whichever is earlier, under an
existing contract, and may not be used until that contract permits. Dr. Seuss
Enterprises shall provide written notice to MCA as soon as such rights are clear
and MCA can use this property immediately thereafter.

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              c. None of the works referred to in the foregoing subparagraphs a.
and b. will be licensed to any other party for any of the exclusive rights
granted hereunder or in a manner inconsistent with the rights granted in this
Formal Agreement while this Formal Agreement remains in effect.

         MCA's rights hereunder include the exclusive right to use Dr. Seuss
Elements in any Attraction in a Theme Park (all as defined in Section 1 of the
Terms and Conditions). The right to use the title "The World of Dr. Seuss" in
connection with a Theme Park created pursuant to this Formal Agreement is a
non-exclusive license only other than for Theme Parks, for which it is an
exclusive license, and the same or similar title may be used by other licensees
of Dr. Seuss Enterprises in noncompeting contexts.

         Dr. Seuss Enterprises also grants to MCA the right to use Dr. Seuss
Elements in connection with the advertising, publicizing and marketing of "The
Second Gate" or other Theme Park based on Dr. Seuss Elements consistent with the
normal manner in which MCA markets its parks or attractions subject to any
limitations provided in this Formal Agreement ("Marketing Rights").

         The Marketing Rights will include the right to have joint promotions
for "The Second Gate" involving The World of Dr. Seuss or the Attractions
thereof or corporate sponsorship of the same, it being understood that in such
joint promotions or corporate sponsorships, it will be clear that it is The
World of Dr. Seuss (or the Attractions thereof) at "The Second Gate" and not the
Dr. Seuss Elements independent of "The Second Gate" which are being included in
such materials, and that the Dr. Seuss Elements are not affiliated with or
endorsing any product or service other than "The Second Gate", but rather are
merely portrayed as elements offered at "The Second Gate". Dr. Seuss Enterprises
shall have a reasonable right of approval with respect to any such joint
promotions or corporate sponsorships, which right of approval shall be exercised
in accordance with the criteria and procedures described in Article II of this
Formal Agreement, and in this subparagraph. Neither Properties nor Dr. Seuss
Elements will be used to endorse products. Further, no such promotions or
corporate sponsorships will be with products reasonably considered inappropriate
for Dr. Seuss Elements or inconsistent with the Dr. Seuss public image, or
inconsistent with established Dr. Seuss Enterprises marketing relationships.
From time to time, Dr. Seuss Enterprises will furnish MCA with the various
marketing relationships it has, and MCA will not enter into any joint promotions
or corporate sponsorships with any other companies in any of the categories
specified by Dr. Seuss Enterprises.

                                       4

         2. Merchandise Rights

         Dr. Seuss Enterprises grants to MCA a non-exclusive license to use the
Properties and Dr. Seuss Elements to make and have made merchandise (other than
publishing, home or interactive videos, and phonograph recordings) for sale
solely within (i) "The Second Gate", (ii) other Theme Parks owned or operated by
MCA pursuant to Article IV, and (iii) in stores owned by MCA or by the operator
of a Theme Park operated pursuant to Article IV where a wide collection of its
theme park merchandise is sold, provided such stores are located within 25 miles
of an MCA owned or operated Theme Park (stores owned and operated by MCA within
an airport may be beyond the 25-mile limit if in the ADI market of the city
where the Theme Park is located, provided there shall not be airport stores at
more than two airports for any one Theme Park). As a direct merchandise
licensee, MCA's rights will be non-exclusive in the sense that Dr. Seuss
Enterprises may license third parties (but not for products identified with a
Theme Park created pursuant to this Formal Agreement) to develop and sell items
in the same categories (e.g., clothing, mugs, caps, etc.).

         Merchandise offered for sale by MCA will be manufactured to MCA's order
(subject to the aforesaid approval rights) or purchased from licensees of Dr.
Seuss Enterprises. The appropriate royalty specified below will accrue upon
receipt by MCA of the licensed merchandise, and will not be subject to reduction
for returns, defective merchandise (where MCA or its designee is the
manufacturer), or unsold goods.

         If MCA purchases merchandise from parties which are licensed by Dr.
Seuss Enterprises, the MCA royalty payable hereunder will be the excess, if any,
between the royalty specified in this Formal Agreement and the royalty payable
to Dr. Seuss Enterprises by such licensee. MCA will receive credit (for purposes
of off-setting advances) only for any royalty payable by MCA under this Formal
Agreement.

Assuming comparability of price, quality, and ability to deliver the quantity
desired on the schedule specified, MCA will give preference in purchase of Dr.
Seuss themed merchandise to Esprit de Corp. or any other then current licensee
of Dr. Seuss Enterprises (if Esprit de Corp. is currently a licensee of Dr.
Seuss Enterprises).

         3. Retained Rights

         All rights in and to the Properties and associated rights are retained
by Dr. Seuss Enterprises, except for the specifically identified granted rights,
and Dr. Seuss Enterprises reserves the right to use, and to license others to
use, the reserved rights so long as not in conflict with the rights granted
under this Formal Agreement. MCA recognizes that Dr. Seuss Enterprises or its
predecessors in interest have previously

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granted all of the rights and licenses to third parties, which are described in
Exhibit B.

    B.   FINANCIAL TERMS

         1. Advance Payments

              MCA will make an advance payment of $*** payable as follows:

              a.   $*** (receipt of which is acknowledged).

              b.   October 1, 1994 - $***

              c.   October 1, 1995 - $***

              d.   October 1, 1996 - $***

         If MCA shall fail to make any of the above payments on a timely basis
and provided Dr. Seuss Enterprises is not in material default of this Formal
Agreement, MCA's license under this Formal Agreement shall terminate and neither
party shall have any further obligations under this Formal Agreement and this
Formal Agreement shall terminate. Any payments made as aforesaid shall be
non-refundable.

         2. Merchandise Royalties and Merchandise Guarantees

         Each year, beginning on the date described in Subparagraph (c) below,
MCA will pay to Dr. Seuss Enterprises an amount equal to the greater of the
Merchandise Royalty or Merchandise Guarantee, as such terms are hereinafter
defined.

         As provided in subparagraph (d) hereinbelow, of the $*** advance
payment described in paragraph 1, $*** shall be a pre-payment (until such $***
is totally absorbed) of the annual Merchandise Guarantees and Merchandise
Royalty hereinafter described. Until such $*** has been totally absorbed, the
Merchandise Royalty and Merchandise Guaranty payable hereunder shall be $***
annually.

              a. "Merchandise Royalty" shall mean the applicable percentage
royalty set forth below of the wholesale cost (or if manufactured by MCA or its
affiliates its cost of manufacturing) of all Dr. Seuss Merchandise offered for
sale by MCA pursuant to this Formal Agreement [excluding all consumable items
(even if the packaging of such items is themed around the Properties)], without
reduction for returns, defective merchandise (where MCA or its designee is the
manufacturer), unsold goods or any other item (the "Wholesale Cost"):

                   i. The Merchandise Royalty shall be *** percent of Wholesale
Cost to MCA of all Merchandise ***.

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                   ii. The Merchandise Royalty shall be *** percent of Wholesale
Cost to MCA of all Merchandise ***.

         The Merchandise Royalty shall accrue upon receipt by MCA of the
applicable Merchandise or other item, as provided in this section.

              b. "Merchandise Guarantee" shall mean the minimum annual amount
payable (regardless of the actual Merchandise Royalty or Wholesale Costs in any
year) set forth below:

                   i. The Merchandise Guarantee shall be $*** ***.

                   ii. The Merchandise Guarantee shall be $*** ***.

                   iii. The Merchandise Guarantee shall be $*** ***.

                   iv. It is the intent of this Agreement that MCA shall be able
to offer a line of approved Dr. Seuss merchandise for sale at the Theme Park.
Dr. Seuss Enterprises will not exercise its approval rights so as to frustrate
the intent of this Agreement.

              c. Payment of the Merchandise Royalty or Merchandise Guarantee, as
applicable, shall begin either when The World of Dr. Seuss or first Theme Park
is open to the public or on December 31, 2001, whichever shall occur first, and
succeeding annual payments shall be made on each anniversary date thereof (the
"Anniversary Date"). The payment due upon the opening of "The Second Gate" or
first Theme Park shall be the minimum Merchandise Guarantee described above.
Thereafter, each annual Merchandise Guarantee or Merchandise Royalty shall be
*** at "The Second Gate". Any appropriate *** shall be made within 30 days

                                       7

following the end of the quarter in which the Anniversary Date occurs. Any ***
shall be treated as a credit toward the following year's payments. Failure to
make any Merchandise Royalty or Merchandise Guarantee payment when due
accompanied by a written notice of license termination by MCA or, subject to the
cure provision contained in Section 12 of the Terms and Conditions, failure to
make any Merchandise Royalty or Merchandise Guarantee payment when due without
written notice of license termination by MCA shall cause MCA's license under
this Formal Agreement to terminate (and MCA will discontinue operation of The
World of Dr. Seuss or any other Attractions containing Dr. Seuss Elements) and
neither party shall have any further obligations under this Formal Agreement and
this Formal Agreement shall terminate, provided, however, that MCA shall have
the right to sell off merchandise and accept returns as to merchandise
inventoried or stocked or tied into the Theme Park for a period of six-months.

              d. Notwithstanding the foregoing, no actual payment of any earned
Merchandise Royalty or Merchandise Guarantee in excess of $*** in any given year
shall be made, until such time as the aggregate amount of all such Merchandise
Royalty and Merchandise Guarantees due and payable in excess of all such $***
yearly payments shall equal $***. In other words, until the $*** advance is
"earned out," each year MCA must pay to Dr. Seuss Enterprises $*** (which amount
shall in any event be non-refundable), and the difference between the $***
payment and the actual amount earned by Dr. Seuss Enterprises (which will be the
greater of the Merchandise Royalty or applicable Merchandise Guarantee) will be
applied to earn out the $*** amount. After the $*** amount is fully absorbed, in
any year in which the amount of Merchandise Guarantee is exceeded, the
appropriate royalties shall be paid on a quarterly basis, within 30 days after
the end of each quarter commencing with the first full quarter after the
Anniversary Date on which the $*** amount is fully absorbed.

         3. If MCA agrees to pay (whether under an existing deal or a future
deal while this Formal Agreement is in effect) to any unrelated third party who
is licensing Theme Park rights (for other than a temporary, short term use), for
the right to use its proprietary properties in an MCA theme park, a form of
compensation based on a percentage of the retail sale by MCA of licensed
merchandise, or a higher royalty based on the wholesale cost to MCA of the
merchandise, or a percentage or fee based on gross revenues or gross receipts of
the theme park, or any substantial portion thereof (including admission charges
and/or food sales, but excluding (a) agreements where there is a bona fide and
substantial continuing element of personal services, (b) restaurants, and (c)
bona fide franchise arrangements, such as McDonald's or Popeye's Chicken), MCA
shall promptly inform Dr. Seuss Enterprises of such arrangement. Dr. Seuss
Enterprises can elect, within 60 days after receipt of such notice, to take the
material financial terms of such other arrangement and make

                                       8

such form of compensation applicable to this Formal Agreement in which case MCA
will receive credit for the sums theretofore paid to Dr. Seuss Enterprises. This
paragraph shall not apply to (1) an agreement with a company taking a
significant equity interest in the theme park involved, or (2) an agreement
where the elements granted (i.e., the group of characters) consist (a) of a
major library or the collected works of well known authors or artists (allowing
for isolated characters that may not be available, or for that portion of a
collection of characters that are not consistent with the theme of the theme
park in question) or (b) of a large number of properties assembled by a major
company owning properties appropriate for the theme park in question.

         4. MCA may purchase, in the sole discretion of MCA and as appropriate
for its needs, Dr. Seuss merchandise produced by Dr. Seuss Enterprises or a
licensee of Dr. Seuss Enterprises. Dr. Seuss Enterprises will use its best
efforts to encourage its current and future licensees to offer Dr. Seuss
merchandise for sale to MCA on terms no less favorable than those offered to any
other purchaser of Dr. Seuss merchandise, although MCA acknowledges that Dr.
Seuss Enterprises cannot be obligated to provide such terms.

IV. OTHER THEME PARKS

    A.   GRANT OF RIGHTS

         MCA shall have the exclusive world wide right to develop Attractions
based on Dr. Seuss Elements in other Theme Parks it owns or operates (either
alone or in conjunction with other parties), except that MCA will not develop or
operate more than three Theme Parks based on the Dr. Seuss Elements in the
United States.

         Additional Theme Parks shall be subject to all the terms and conditions
of this Formal Agreement provided that each Theme Park's development and related
merchandising shall be treated separately with respect to approval rights,
insurance, accounting, reports and royalties and other financial matters, and
there shall be no cross-collateralization. The parties shall enter into a
separate agreement substantially identical (except for the description of the
Theme Park) with this Formal Agreement for each additional Theme Park. All items
which have previously been approved shall be deemed approved for any new Theme
Parks.

    B.   FINANCIAL TERMS

         All annual payments and guarantees described in Paragraph III.B.2 of
this Formal Agreement shall be required for each such additional Theme Park
utilizing Dr. Seuss Elements, and in addition an advance payment of $*** shall
be paid at the rate of $*** upon the first public announcement that such Theme
Park will contain Dr. Seuss Elements (or the commencement of construction of Dr.
Seuss

                                       9

Attractions, whichever shall occur first). Thereafter, there will be additional
payments of $*** each upon the following two anniversary dates of such initial
payment. In no event will the entire $*** be paid later than the opening of the
Attractions based on Dr. Seuss Elements to the public. *** dollars of the
aforesaid $*** advance would be entirely "absorbed," and the other financial
terms described in Paragraph III.B.2 shall apply, in the same manner described
previously. Once the above payments are commenced with regard to an additional
Theme Park, if the subsequent payments (i.e., either of the $*** payments) are
not made, MCA's rights to that location lapse (but not its exclusivity) without
further obligation by either party pursuant to such location's agreement, and
payments must be commenced "de novo" - i.e., the initial $*** payment must be
made again if MCA thereafter wishes to utilize Dr. Seuss Elements at that
location.

V.  OVERALL MERCHANDISING RELATIONSHIP

         MCA would like to explore with Dr. Seuss Enterprises the possibility of
forming a joint venture to develop and exploit merchandising opportunities in
the Properties. Such joint venture, being the sole entity authorized to
merchandise Dr. Seuss (other than the Theme Park Merchandising Rights described
above) would be empowered, at its own expense, to police and prosecute all
non-licensed (i.e., "bootleg") Dr. Seuss merchandise.

         While Dr. Seuss Enterprises presently supervises and grants its own
merchandise licenses, if it decides to grant broad multiple category merchandise
licensing rights to an unrelated third party, MCA will have a first right to
negotiate to exploit such merchandising rights. Additionally, from time to time,
MCA may make presentations to Dr. Seuss Enterprises with a goal of entering into
a licensing relationship for specific categories of merchandise. The foregoing
shall in no way be construed to limit Dr. Seuss Enterprises' rights to continue
to grant licenses to such third parties and for such categories of merchandise
as it shall select in its discretion subject to the licenses granted to MCA
hereunder.

VI. MISCELLANEOUS LEGAL

    A. This Formal Agreement is subject to the Terms and Conditions which are
attached to this Formal Agreement as Exhibit B and incorporated by this
reference.

    B. Dr. Seuss Enterprises will execute the undated Short Form Copyright
License attached to this Formal Agreement as Exhibit C. Immediately upon
execution of this Formal Agreement, MCA will record Exhibit C with the United
States Copyright Office

or such other offices or places in the world as may be reasonably necessary to
protect MCA's rights.

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Mca Inc.                               DR. SEUSS ENTERPRISES, L.P.,

                                       By: Geisel-Seuss Enterprises, Inc.
By: /s/ Ron Bension                        General Partner
    ---------------------------------
    Ron Bension, Chairman
    MCA Recreation Services            By: /s/ Audrey S. Geisel
                                           ---------------------------------
                                           Audrey S. Geisel, President

                                       By: /s/ Karl ZoBell
                                           ---------------------------------
                                           Karl ZoBell, Vice President

                                       11

                                FORMAL AGREEMENT
                                     BETWEEN
                           DR. SEUSS ENTERPRISES, L.P.
                                       AND
                                    MCA INC.

                              TERMS AND CONDITIONS

         These Terms and Conditions are a part of the Formal Agreement between
MCA INC. ("MCA") and Dr. Seuss Enterprises, L.P. ("Dr. Seuss Enterprises") dated
as of April 21, 1994 ("Formal Agreement") and by this reference made a part of
the Formal Agreement. As used in these Terms and Conditions and in all Exhibits
which are attached to these Terms and Conditions, capitalized terms have the
same meaning as the terms defined in the Formal Agreement or which are otherwise
defined in the Terms and Conditions or Exhibits, as the case may be.

1.  DEFINITIONS

    a. Dr. Seuss Elements. As used in this Formal Agreement, "Dr. Seuss
Elements" means, without limitation (but solely and exclusively in connection
with the rights granted pursuant to Paragraph III(A) of the Formal Agreement),
any of the characters and/or "locations" contained in the Properties (as defined
in the Formal Agreement), the name "Dr. Seuss," art work, plots, dialogue,
common phrases, trademarks and/or logos, likenesses, visual representations,
digitized likenesses, symbols, designs, personalities, mannerisms, themes,
plans, elements contained in the Properties and, to the extent owned by Dr.
Seuss Enterprises and not subject to conflicting grants or agreements, music,
drawings, cartoon and film footage and sequences, stills, live action footage,
voices, storyboards and animations contained in material associated with the
Properties.

    b. Attraction. As used in this Formal Agreement, "Attraction" means, without
limitation (but solely and exclusively in connection with the rights granted
pursuant to Paragraph III(A) of the Formal Agreement), live performances, shows,
exhibits, attractions, animated and non-animated films (using both then existing
films owned or licensed by Dr. Seuss Enterprises and films that may be produced
for MCA's purposes; provided, however, that use of existing films owned or
licensed by Dr. Seuss Enterprises is subject to Dr. Seuss Enterprises' prior
written approval and subject to availability of rights under existing agreements
relating to such films), visual displays, demonstrations, set designs, musical
shows, live or taped shows or films, all configurations of digital storage and
delivery systems and/or technology now known or hereafter devised, including
without limitation, all computer-assisted media rights (including without
limitation, CD-ROM, CD-I, 3D0 and all similar hard or floppy disc systems,
interactive cable limited to exhibition and use within Theme Parks owned or
operated by MCA pursuant to this Formal Agreement and the marketing thereof (as
provided in Paragraph III(A) of the Formal

Agreement) and all other interactive media, systems, devices or methods now
known or hereafter devised), virtual reality devices or simulators, backgrounds,
costumes, amusement park rides, ride/films, funhouses, strollers, restaurants,
food vending facilities, food or merchandise carts, game/arcade areas,
decorations, activities, shops, and as otherwise provided in this Formal
Agreement and, subject to Paragraph II of the Formal Agreement, in any other
manner in which characters or elements are used (or are going to be used) by any
means of demonstration, exhibition or technology whether now known or hereafter
invented (provided such means shall be consistent with the grant of rights
contained in Paragraph III(A) of the Formal Agreement) by MCA in Theme Parks.

    c. Theme Park. As used in this Formal Agreement, "Theme Park" means any
theme park, studio tour, or similar tourist attraction (whether now known or
hereafter invented) (such as, by way of example only, Universal Studios Florida,
Universal Studios Hollywood and "The Second Gate") or any separately identified
area or component thereof, or other group location-based entertainment areas
("GLBEA") which shall contain without limitation a combination of Attractions
(such as, by way of example, visual displays, attractions, amusement park rides,
funhouses, game/arcade areas (other than coin-operated arcade games and CD-ROMs
for home use), ride films and virtual reality devices or simulators), provided
that MCA shall not open any GLBEA containing the Dr. Seuss Elements separate and
apart from "large scale" centers such as Universal Studios Florida, Universal
Studios Hollywood and "The Second Gate".

    d. MCA. As used in this Formal Agreement, "MCA" means any corporation
related to or affiliated with MCA INC., or any corporation, partnership or other
venture in which MCA, or any corporation or partnership related to or affiliated
with MCA, has an ownership or management interest. The parent company, MCA INC.,
which is signatory to this Formal Agreement shall remain primarily responsible
for all payments and other obligations called for in this Formal Agreement, and
MCA INC. may not, without prior written approval of Dr. Seuss Enterprises,
assign or sublicense any rights hereunder to any entity that does not qualify as
one of the entities described above, except as provided in paragraph 10 of these
Terms and Conditions.

2.  WARRANTY OF TITLE

         Dr. Seuss Enterprises represents and warrants that Dr. Seuss
Enterprises has the right to enter into and to perform all of Dr. Seuss
Enterprises' obligations under this Formal Agreement, and the execution,
performance and delivery by Dr. Seuss Enterprises of this Formal Agreement has
been duly authorized by all necessary corporate action on Dr. Seuss Enterprises'
part; this Formal Agreement constitutes Dr. Seuss Enterprises' legal, valid and
binding obligation enforceable in accordance with its terms; Dr. Seuss
Enterprises is the sole and

                                       2

exclusive owner in the United States, Japan, France and the United Kingdom
during the term of this Formal Agreement of all the rights granted pursuant to
this Formal Agreement (subject to the expiration of the applicable terms of
copyrights (which term includes the renewal period in the Properties subject to
renewal) in the Properties and expiration of trademark rights, if such trademark
rights are susceptible to expiration), including, without limitation, the Dr.
Seuss Elements; Dr. Seuss Enterprises has made no grant of rights inconsistent
with the rights granted to MCA in this Formal Agreement; there are no
attachments, liens, encumbrances, or other legal disabilities which exist that
would impair MCA's ability to exercise MCA's rights under this Formal Agreement;
there are no claims or, to the best of Dr. Seuss Enterprises' knowledge using
due diligence, threatened claims, against Dr. Seuss Enterprises, MCA or any
third party relating to the use by MCA, Dr. Seuss Enterprises or any other party
of the Dr. Seuss Elements or any of the rights granted to MCA under this Formal
Agreement; the underlying materials from which the Dr. Seuss Elements are
derived, including without limitation the Properties, consist of copyrighted and
in some cases trademarked materials, and all such copyrights and trademarks are
owned solely by or licensed to Dr. Seuss Enterprises on an exclusive basis; with
respect to the United States, Japan, France and the United Kingdom, all
copyrights, trademarks and other proprietary rights subject to registration in
respect of the Dr. Seuss Elements are valid and subsisting without any
attachment, lien or encumbrance and there are no other proprietary rights,
whether granted by Dr. Seuss Enterprises or otherwise, that would be infringed
by the exercise by MCA the rights granted under this Formal Agreement; Dr. Seuss
Enterprises is the owner in the United States of America, France, Japan and the
United Kingdom, without any attachment, lien or encumbrance, of all copyrights
and trademarks regarding the Dr. Seuss Elements, and all such copyrights and
trademarks are valid and subsisting; Dr. Seuss Enterprises will cause the
appropriate party to timely renew any copyright subject to renewal in connection
with any and all of the Properties; Dr. Seuss Enterprises has not made any
grants inconsistent with the grant of rights to MCA under this Formal Agreement;
the Properties do not contain any libelous or obscene matter, do not violate the
right of privacy or any other right of any party or person, and are not in the
public domain (except as reflected on Exhibit A hereof).

         MCA represents and warrants that MCA has the right to enter into and to
perform all of MCA's obligations under this Formal Agreement; this Formal
Agreement constitutes MCA's legal, valid and binding obligation enforceable in
accordance with its terms; and all Theme Parks, stores, outlets, goods and
services sold or operated by MCA in connection with its performance hereunder
shall be of high quality consistent with other MCA theme parks, stores, outlets,
goods and services sold or operated by MCA and suitable for their intended
purpose.

                                       3

3.  COPYRIGHT/TRADEMARK

         MCA will take appropriate action as reasonably directed by Dr. Seuss
Enterprises to protect all copyrights and trademarks (including the use of
appropriate notices, as directed by Dr. Seuss Enterprises) in connection with
the uses granted hereunder, including in-park uses, merchandise, advertising and
packaging.

         Dr. Seuss Enterprises shall own all right, title and interest,
including all copyrights and copyright renewals and extensions, and causes of
action of any kind, with respect to any portion or component of any theme park
element, retail element, goods or other item created by or for MCA if and to the
extent that it uses a portion of or incorporates the Properties or Dr. Seuss
Elements, including all characters, text, and images contained therein, whether
such portion or component is a "derivative work" or "new work" under the United
States or other applicable copyright laws (the "Work Product"), and such Work
Product will be licensed to MCA pursuant to the terms of this Formal Agreement.
MCA hereby sells, assigns, and transfers to Dr. Seuss Enterprises its entire
worldwide right, title and interest in and to all Work Product and shall obtain
and provide to Dr. Seuss Enterprises appropriate written work for hire
agreements or assignments, as appropriate, executed by any person or party who
has made any contribution to the creation of the Work Product, such that
ownership in such Work Product is in the name of Dr. Seuss Enterprises, free of
any claims, interests or rights of any other parties. MCA agrees not to permit
any persons to retain or reserve by oral or written agreement any rights as
"authors" of such Work Product.

         Subject to the terms and conditions of this Formal Agreement, during
the term of this Formal Agreement and following the termination thereof, Dr.
Seuss Enterprises agrees that it shall not use, copy or exploit such Work
Product, provided that the foregoing will not be construed to prevent Dr. Seuss
Enterprises from using or licensing any of the Properties or Dr. Seuss Elements,
or any portion of the Properties or Dr. Seuss Elements, including all
characters, text and images, for the creation of new (defined to exclude
nonmaterial changes to the Work Product) or independently created works,
derivative works, compilations, etc. of any kind, even if such independently
created works are substantially similar to the Work Product. Notwithstanding the
foregoing, such uses and/or licenses shall not violate MCA's exclusive license
for Theme Park use granted pursuant to Paragraph III(A)(1) of the Formal
Agreement. It is understood that any physical and tangible manifestations of
Work Product, separate and apart from the copyright and other intellectual
property rights therein, shall be owned by MCA, provided that MCA shall have no
right to exploit same following the termination of the Formal Agreement, subject
to MCA's right to sell off Merchandise and accept returns as to Merchandise
inventoried or stocked or tied into the Theme Park for a period of six-months.

                                       4

         MCA shall have and retain all exclusive rights in those portions or
components of any theme park element, retail element, goods or items comprising
or incorporated into the Work Product upon deletion therefrom of all references
to Dr. Seuss Elements and the Properties, including any characters, text and
images contained in Dr. Seuss Elements and the Properties, trademarks, service
marks and the Work Product. MCA shall have all right, title and interest in and
to such materials and all proprietary rights therein, including, without
limitation, all copyrights and other intellectual property rights, all contract
and licensing rights, and all claims and causes of action of any kind with
respect to any of the foregoing, whether now known or hereafter to become known.
MCA can exploit or otherwise dispose of its retained rights in MCA's sole
discretion.

         MCA shall make reasonable efforts to register the copyright in each
such theme park element, retail element, goods or other item showing copyright
ownership as a compilation in its name, showing copyright ownership consistent
with the foregoing paragraphs, in compliance with the Copyright Laws of the
United States (as amended by the Berne Convention Implementation Act of 1988)
and the Universal Copyright Convention, and shall provide such evidence of such
registration as is reasonably satisfactory to Dr. Seuss Enterprises.
Notwithstanding the foregoing, Dr. Seuss Enterprises may elect, upon written
notice to MCA, to obtain such copyright registrations and other protection as to
the Work Product as it shall deem appropriate.

         Dr. Seuss Enterprises recognizes that copyrights in the Properties are
subject to renewal, and that such renewal rights may vest in persons not parties
to this Formal Agreement. Dr. Seuss Enterprises represents and warrants that
possible statutory heirs of the renewal rights in connection with the Properties
have signed the Heir's Agreement dated as of April 21, 1994 (attached hereto as
Exhibit "D" and incorporated herein by this reference); and Dr. Seuss
Enterprises will immediately notify MCA in writing of any new statutory heirs
and use best efforts to cause such heir(s) (and/or his or her legal guardian) to
sign the Heir's Agreement.

         All trade names, trademarks, service marks, commercial symbols and/or
logos used by MCA hereunder which use or incorporate any element of the
Properties or Dr. Seuss Elements ("Marks"), including in connection with theme
parks, retail stores, merchandise and services, shall be the sole and exclusive
property of Dr. Seuss Enterprises and such Marks are licensed to MCA pursuant to
the terms of this Formal Agreement. Subject to the terms and conditions of this
Formal Agreement, during the term of this Formal Agreement and following the
termination thereof, Dr. Seuss Enterprises will not use any new Marks which were
developed by MCA hereunder, provided that the foregoing will not be construed to
prevent Dr. Seuss Enterprises from using or licensing the Properties, including
all Dr. Seuss Elements, characters, text and any images in connection with any
new

                                       5

(defined to exclude nonmaterial changes to the Marks) or independently created
trade names, trademarks, service marks, commercial symbols and/or logos to be
used in connection with any goods or services. Notwithstanding the foregoing,
such uses and/or licenses shall not violate MCA's exclusive license for Theme
Park use granted pursuant to Paragraph III(A)(1) of the Formal Agreement. It is
understood that any physical and tangible manifestations of the Marks, separate
and apart from the intellectual property rights therein, shall be owned by MCA,
provided that MCA shall have no right to exploit the same following the
termination of the Formal Agreement, subject to MCA's right to sell off
merchandise and accept returns as to merchandise inventoried or stocked or tied
into the Theme Park for a period of six-months.

         MCA shall have and retain the exclusive rights in those portions or
components of the Marks upon deletion therefrom of all references to the
Properties, including any characters, text and images contained in the
Properties, the Dr. Seuss Elements and Work Product. MCA shall have all right,
title and interest in and to such materials and all proprietary rights therein,
including, without limitation, all trademark, service mark and other
intellectual property rights, all contract and licensing rights, and all claims
and causes of action of any kind with respect to any of the foregoing, whether
now known or hereafter to become known. MCA shall have the right to exploit or
otherwise dispose of its retained rights in MCA's sole discretion.

         Each party agrees to take such actions, and to execute, acknowledge and
deliver to the other party such assignments, documents, instruments and
agreements as the other party shall reasonably request to effect or evidence
each party's ownership rights described herein.

         Dr. Seuss Enterprises shall make reasonable efforts to file in the
United States, Japan, France and the United Kingdom such trademark or design
applications relating to the use or proposed use by MCA of the Marks in such
classes as Dr. Seuss Enterprises shall deem appropriate. MCA shall keep Dr.
Seuss Enterprises informed as to its proposed uses of any Marks, including the
jurisdictions and the goods and/or services in connection with which, it
proposes to use the Marks and when it proposes to begin using any Mark in any
jurisdiction or any goods or services. Dr. Seuss Enterprises shall consider such
information in planning and implementing its worldwide trademark registration
and enforcement strategy.

         Commencing upon entry of this Formal Agreement, MCA will cooperate with
Dr. Seuss Enterprises to develop a trademark registration program, identifying a
reasonable number of Marks which should be registered in a reasonable number of
countries, for a reasonable number of international classes (with particular
reference to the United States, Japan, France and the United

                                       6

Kingdom) to enable the parties to protect their rights which are the subject of
this Formal Agreement.

         MCA shall keep appropriate records (including copies of pertinent
invoices and correspondence) and evidence of use relating to the dates when each
of the Marks is first used hereunder in each country, and the dates of first use
with respect to each Mark in connection with each separate good or service. If
so requested to do so by Dr. Seuss Enterprises, MCA agrees to supply Dr. Seuss
Enterprises with samples of such usages of the Marks and other information which
will enable Dr. Seuss Enterprises to complete and obtain trademark, service mark
or design applications or registrations, or for enforcement purposes. MCA also
agrees to reasonably cooperate with Dr. Seuss Enterprises in connection with
providing information for, and executing and delivering such documents as are
required in connection with complying with any registered user requirements of
any country.

         Each party will promptly notify the other of any infringements or
violations of the rights licensed to MCA hereunder which come to their
attention. The parties agree to consult with each other as to how to respond to
each such infringement or violation. In the event the parties jointly conclude
that legal or other action should be taken with respect to such infringement or
violation, the parties shall promptly and diligently prosecute such action and
shall share equally in all costs and expenses and all recoveries and awards,
with respect thereto. If either party (i) does not in good faith consult with
the other with respect to responding to any infringement or violation in a
prompt and timely manner, or (ii) advises the other party that it does not
intend to participate in any action, then the other party shall be free to
respond to such infringement or violation or proceed with such action in any
manner which it deems appropriate, at its own expense, and shall receive all
recoveries and awards therefrom. Notwithstanding the foregoing, MCA shall have
no right to settle or otherwise dispose of any infringement or violation in any
manner which affects, relates to or involves Dr. Seuss Enterprises' Properties,
rights, copyrights or Marks licensed under this Formal Agreement, without Dr.
Seuss Enterprises' prior written consent, and Dr. Seuss Enterprises shall have
no right to settle or otherwise dispose of any infringement or violation in any
manner which affects, relates to or involves the properties, rights, copyrights
or trademarks of MCA, without MCA's prior written consent.

4.  INDEMNITIES

         MCA agrees to defend, indemnify and hold harmless Dr. Seuss Enterprises
against any claims (except to the extent they are related to breaches in Dr.
Seuss Enterprises' warranties) (i) arising out of MCA's exploitation of the
rights granted hereunder, and operation of the theme parks, stores and other
outlets, including without limitation, tort liability to

                                       7

Dr. Seuss Enterprises, (ii) arising from MCA's breach of its representations,
warranties or covenants contained herein, and any infringement proceedings that
may be brought resulting from the use of non-Dr. Seuss elements by MCA, and
(iii) resulting from the use of the Dr. Seuss Properties. Dr. Seuss Enterprises
agrees to defend, indemnify and hold harmless MCA against any claims arising
from Dr. Seuss Enterprises' breach of its representations, warranties or
covenants contained herein, including any copyright or trademark infringement
proceedings that may be brought resulting from the use of the Dr. Seuss Elements
by MCA, subject to the limitations in Paragraph 2 of these Terms and Conditions.
Any indemnification obligation hereunder shall apply to the party specified, its
respective officers, directors, shareholders, employees, partners, agents,
attorneys, successors, assigns, parents, subsidiaries and affiliated companies,
and shall cover any claims, costs, lawsuits, liabilities or losses (including
reasonable attorneys' fees and all related costs). MCA agrees that it or an
appropriate theme park operating entity will provide Dr. Seuss Enterprises with
a certificate of insurance evidencing General Liability coverage of a minimum of
$10 million per occurrence, and naming Dr. Seuss Enterprises as an additional
insured.

5.  TERM

         Once a theme park containing Dr. Seuss Elements is open, the term of
this Formal Agreement will be for so long as MCA is operating such theme park in
a manner consistent with the descriptions in Sections 1 and 2 of the Formal
Agreement, it being understood that the copyrights in the Properties may expire
during such period. The copyright provisions, warranties, representations and
indemnities contained in Sections 2, 3 and 4, above, shall survive the
termination of the Formal Agreement.

6.  CREATIVE MATERIALS

         Dr. Seuss Enterprises will cooperate in making available to MCA to the
extent same is available, information, artwork, archive material, key personnel
and other materials reasonably requested by MCA in order that MCA can creatively
develop The World of Dr. Seuss and the Dr. Seuss Attractions and exploit its
rights hereunder. MCA will reimburse Dr. Seuss Enterprises for its reasonable
costs in this regard.

7.  CONFIDENTIALITY

         Both parties agree that any public announcement concerning the
relationship between MCA and Dr. Seuss Enterprises will be at a time, place and
manner as is mutually determined by the parties and that neither party will
disclose the material provisions of this Formal Agreement, unless required by
court order. Dr. Seuss Enterprises will keep confidential any information that
is disclosed to Dr. Seuss Enterprises regarding the design and content, budget,
techniques, and time tables for

                                       8

The World of Dr. Seuss and/or "The Second Gate" unless and until and only to the
extent that this information is made public by MCA, or required to be disclosed
by law. Any information provided by Dr. Seuss Enterprises to MCA which is
identified as confidential will be kept confidential by MCA to same extent.

         Both parties agree that under any circumstances they will keep
confidential the existence of this Formal Agreement and any of its elements.

8.  NOTICES/PAYMENTS

         Any notices, approvals, payments or other communications required or
permitted to be given or delivered hereunder shall, unless otherwise permitted,
be in writing and shall be delivered personally, transmitted by telex,
telecopier or telegraph (if other than a payment), or, except during periods of
postal disruption, sent by registered mail, return receipt requested, postage
prepaid, to the parties at their respective addresses appearing herein, or at
such other addresses as either party may from time to time designate to the
other in writing. Any notice, approval or communication so given shall be deemed
to have been received on the date on which it is delivered, on the day
transmitted if by telex, telecopier or telegraph, or, if mailed, on the second
business day next following the mailing thereof, except that any payment shall
be deemed made when received. Any such notice shall be sent to the parties at
the following addresses:

To:                                   DR. SEUSS ENTERPRISES, L.P.
                                      7301 Encelia Drive
                                      La Jolla, California 92037

Copy To:                              GRAY CARY WARE & FREIDENRICH
                                      1200 Prospect Street, Suite 575
                                      La Jolla, California 92037
                                      Attention:  Karl ZoBell

Copy To:                              INTERNATIONAL CREATIVE MANAGEMENT, INC.
                                      40 West 57th Street
                                      New York, New York 10019
                                      Attention:  Herb Cheyette

To:                                   MCA INC.
                                      100 Universal City Plaza
                                      Universal City, California 91608
                                      Attention:  Ronald Bension

Copy To:                              MCA INC.
                                      100 Universal City Plaza
                                      Universal City, California 91608
                                      Attention:  Anthony Sauber

                                       9

Copy to:                              ROSENFELD, MEYER & SUSMAN
                                      9601 Wilshire Boulevard, 4th Floor
                                      Beverly Hills, California 90210
                                      Attention:  William J. Skrzyniarz, Esq.

         A11 payments hereunder will be made to International Creative
Management, Inc, ("ICM") as agents for Dr. Seuss Enterprises, L.P., 40 West 57th
Street, New York, New York 10019, attention: Herbert Cheyette.

9.  FURTHER INSTRUMENTS

         Dr. Seuss Enterprises will execute, acknowledge and deliver to MCA or
cause to be executed, acknowledged and delivered to MCA, in form approved
reasonably by MCA, any and all further assignments or instruments which MCA may
deem necessary, expedient or proper to carry out and effectuate the purposes and
intent of this Formal Agreement. If Dr. Seuss Enterprises fails to execute and
deliver to MCA such further assignments or instruments within fifteen business
days after MCA's request therefor, then to the extent that Dr. Seuss Enterprises
is legally entitled to execute, acknowledge and deliver such assignments or
other instruments, Dr. Seuss Enterprises appoints MCA as Dr. Seuss Enterprises'
irrevocable attorney in fact, with the right, but not the obligation, to do any
and all acts and things necessary to execute, acknowledge and deliver any such
further assignments and other instruments, in the name of and on behalf of MCA,
which appointment is deemed to be a power coupled with an interest and
irrevocable.

10. SUCCESSOR(S) IN INTEREST

         The rights granted pursuant to the Formal Agreement and/or any other
location's agreement pursuant to Article IV of the Formal Agreement may be
assigned to any successor owner of a Theme Park containing the Dr. Seuss
Elements and shall inure to the benefit of any such successor owner of such
Theme Park; provided, however, that no such assignment shall relieve MCA, INC.
of its obligations under the Formal Agreement unless such assignment is to a
party or guarantor that Dr. Seuss Enterprises reasonably approves as being
financially responsible and able to assume the obligations in connection with
such Theme Park. Successor parties or guarantors may make subsequent assignments
to new parties or guarantors, subject to the foregoing procedure.

11. AUDIT AND REVIEW

         During the term of this Formal Agreement, MCA shall keep full and
accurate books of account and copies of all documents and other materials
related to this Formal Agreement (the "Records") at MCA's principal office in
the United States, for a period of not less than four years after each was
generated or prepared in the ordinary course of business. Further, MCA shall
provide to Dr. Seuss Enterprises, at the same time it makes

                                       10

payment of any Merchandise Royalty or Merchandise Guarantee, a full and complete
statement showing in reasonable detail the basis on which such Merchandise
Royalties were calculated, and providing such other information as Dr. Seuss
Enterprises shall reasonably request.

         Dr. Seuss Enterprises shall have reasonable audit and review rights to
verify that proper Merchandising Royalties are paid to Dr. Seuss Enterprises in
connection with this Formal Agreement. MCA will keep the Records open to
inspection by Dr. Seuss Enterprises or Dr. Seuss Enterprises' duly authorized
agents and representatives, who shall have reasonable access to the Records for
such purposes at reasonable hours of the day during which MCA's offices are
open.

         Dr. Seuss Enterprises shall have the right of inspection of the Records
not more than once each calendar year. In the event that Dr. Seuss Enterprises
causes an examination to be made of the Records, that examination shall be
conducted in a manner as not unduly to interfere with MCA's business. Dr. Seuss
Enterprises and Dr. Seuss Enterprises' duly authorized agents and
representatives conducting any examination will maintain the confidentiality of
all information obtained by them as a result of such examination and shall not
reveal to any other person, firm or corporation any information acquired as a
result of such examination, except as may be required by law in connection with
any legal action or other proceeding implemented by Dr. Seuss Enterprises to
enforce Dr. Seuss Enterprises' rights under this Formal Agreement. MCA will
maintain the Records for at least four years as set forth above, except that if
a bona fide dispute arises between the parties prior to the end of such four
year period with respect to any payment or the information contained in the
Records, then MCA will maintain the Records until a resolution of the dispute,
or four years from the date of the termination of this Formal Agreement,
whichever last occurs. Dr. Seuss Enterprises shall respect the confidentiality
of, the Records, but shall be entitled to make such disclosures reasonable in
order to enforce Dr. Seuss Enterprises' rights hereunder. MCA will reimburse Dr.
Seuss Enterprises for the reasonable cost of any final audit resulting in Dr.
Seuss Enterprises' being due additional sums exceeding five percent of any
payment at issue, otherwise, all audits shall be conducted at Dr. Seuss
Enterprises' sole expense.

12. BREACH/CURE

         Either party may terminate this Formal Agreement upon a material breach
of the other party, subject to written notice and a reasonable opportunity to
cure. Except as provided herein, any casual or inadvertent failure to make any
payment due under this Formal Agreement will not constitute a material breach of
this Formal Agreement unless Dr. Seuss Enterprises notifies MCA in writing that
MCA has failed to make such payment and MCA then fails to make such payment to
Dr. Seuss within 30 days after

                                       11

MCA's receipt of the notice (subject to events of Force Majeure as defined in
Section 15, below). Notwithstanding the foregoing, a breach and/or termination
of any one agreement for a Theme Park containing the Dr. Seuss Elements shall
not effect and/or cause a breach and/or termination of any other location's
agreement for a Theme Park containing the Dr. Seuss Elements and Dr. Seuss
Enterprises shall be limited in its right to pursue its remedies against MCA in
connection with such Theme Park wherein the breach and/or termination occurred.

13. NO JOINT VENTURE

         Nothing in this Formal Agreement shall be construed to place the
parties in the relationship of partners or joint venturers, and neither party
has any power to obligate or bind the other party in any manner whatsoever.

14. FORCE MAJEURE

         If MCA is prevented, materially hampered, or interrupted in the
preparation or production or operation of "The Second Gate" or "The World of Dr.
Seuss" or other Theme Park containing the Dr. Seuss Elements pursuant to this
Formal Agreement by reason of any governmental law, action, inaction, ordinance,
regulation, executive or judicial order, judgment or decree, earthquake, flood,
fire, epidemic, accident, explosion, casualty, act of God, lockout, strike,
labor controversy or threat thereof, riot, civil disturbance, boycott, war or
armed conflict (whether or not officially declared), act of a public enemy,
embargo, delay of a common carrier, the inability without fault on MCA's part to
obtain sufficient material, labor transportation, power or other essential
commodity or service required in the conduct of a Theme Park or merchandising
hereunder, or by reason of any other cause of a similar nature which event has
or might reasonably have the effect of interfering with MCA's ability to exploit
the rights granted under this Formal Agreement ("Force Majeure Event"), MCA may
suspend payment of any sums otherwise due to Dr. Seuss Enterprises for a period
up to six months, but MCA will resume payment at the end of the Force Majeure
Event upon written notice to Dr. Seuss Enterprises. None of MCA's rights in the
Dr. Seuss Attractions will be affected by such suspension for a Force Majeure
Event and/or suspension of payments.

15. MISCELLANEOUS

    a. No waiver by any party of any breach of this Formal Agreement by the
other party will be deemed a waiver of any preceding or succeeding breach of any
provision of this Formal Agreement. The remedies provided in this Formal
Agreement are cumulative, and the exercise of one remedy will not preclude the
exercise of any other remedy for the same default.

                                       12

    b. This Formal Agreement and the Exhibits attached to it are intended to be
the final and complete expression of the agreement between the parties and
supersedes any and all prior and contemporaneous agreements and understandings
relating to the subject matter of this Formal Agreement, including the Short
Form Agreement effective as of April 21, 1994.

    c. This Formal Agreement may not be modified nor may any of its terms be
waived except in writing signed by both parties. If any part of this Formal
Agreement is declared invalid or unenforceable by a court of competent
jurisdiction, it shall not affect the validity of the balance of this Formal
Agreement.

    d. The headings of the paragraphs are for convenience only and in no way
limit or affect the provisions of the Formal Agreement.

    e. This Formal Agreement is governed by and interpreted in accordance with
the laws of the State of California applicable to agreements entered into and to
be performed wholly in California.

    f. The parties agree to first submit any controversy or claim arising out of
or relating to this Formal Agreement, or breach thereof, to non-binding
mediation by a mediator to be selected by the parties. Any legal proceeding of
any nature brought by either party against the other party to enforce any right
or obligation under this Formal Agreement will be submitted only for trial
before any state or federal court in the State of California, County of Los
Angeles. The parties expressly consent and submit to jurisdiction of any such
court, waive all objections to such jurisdiction on the basis of venue,
jurisdiction, or personal jurisdiction, and agree to accept service of process
outside the State of California in any matter to be submitted to any court under
this Formal Agreement.

    g. If any party brings an action to enforce or interpret the terms of this
Formal Agreement or to declare rights under the Formal Agreement or to recover
for or prevent breach of the Formal Agreement, the prevailing party in any such
action will be entitled to its reasonable attorneys' fees and costs to be paid
by the losing party as fixed by the court as well as to such reasonable
attorneys' fees and costs incurred in enforcing any judgment obtained.

                                       13

                                    EXHIBIT A

                                 THE PROPERTIES

Title                                          Date of            Copyright
-----                                          Copyright          Reg. No.
                                               Date of            Renewal
                                               Renewal            Reg. No.
                                               -------            --------
500 Hats of Bartholomew Cubbins                09/28/38           A121907
                                               11/19/65           R373275
And to Think That I Saw It on                  09/28/37           A112004
Mulberry Street                                10/06/64           R345815
Bartholomew & the Oobleck                      10/06/49           A37840
                                               11/05/76           R645569
Cat in the Hat                                 02/28/57           A281039
                                               01/31/85           RE240391
Cat in the Hat Comes Back                      09/05/58           A355615
                                               03/03/86           RE288973
Cat in the Hat Songbook                        08/22/67           A953771
Cat in the Hat (Spanish)                       04/13/67           A954923
Come Over to My House *                        09/07/66           A873098
Dr. Seuss' ABC Book                            08/29/63           A651707
                                               06/03/91           RE527899
                                               12/18/91           RE561716
Dr. Seuss' Sleep Book                          08/30/62           A599141
                                               01/22/90           RE465216
Fox in Socks                                   02/04/65           A765204
                                               06/19/93           RE625055
Green Eggs and Ham                             09/01/60           A475565
                                               01/19/88           RE376436
Happy Birthday to You                          10/01/59           A412696
                                               01/08/87           RE323355
Hop on Pop                                     02/05/63           A616710
                                               06/03/91           RE528173
                                               12/18/91           RE561717

                                       A-1

Horton Hears a Who                             09/27/50           A152927
                                               01/06/83           RE115184
How the Grinch Stole Christmas                 09/23/57           A312043
                                               02/11/85           RE238319
I Had Trouble Getting to Solla Sollew          08/27/65           A794059
                                               06/16/93           RE625058
I Wish That I Had Duck Feet *                  08/27/65           A794058
                                               06/19/93           RE625057
If I Ran the Circus                            09/11/56           A254660
                                               01/30/84           RE205426
If I Ran the Zoo                               09/27/50           A47792
                                               10/17/77           R674412
King's Stilts                                  10/04/39           A132666
                                               05/17/67           R410210
On Beyond Zebra                                09/19/55           A204493
                                               01/31/83           RE160864
One Fish Two Fish Red Fish Blue Fish           03/01/60           A35009
                                               01/19/88           RE376431
Scrambled Eggs Super!                          03/20/53           A84364
                                               (No renewal)
Sneetches and Other Stories **                 09/01/61           A543386
                                               01/17/89           RE425704
Ten Apples Up on Top *                         02/24/61           A512606
                                               01/17/89           R430091
Thidwick the Big-Hearted Moose                 08/16/48           A25079
                                               09/09/75           R613758
Yertle the Turtle and Other Stories            04/24/58           A336186
                                               03/03/86           RE288967
Because a Little Bug Went KaChoo *             09/30/75           A729059
Butter Battle Book                             04/10/84           TX1-345339
Cat's Quizzer                                  08/23/76           A808640
Did I Ever Tell You How Lucky You Are?         09/12/73           A502030
Eye Book *                                     10/07/68           A39909
Foot Book                                      10/07/68           A39908

Great Day for Up *                             08/27/74           A595526
Hooper Humperdink? Not Him! *                  09/20/76           A815130
Horton Hatches the Egg                         10/21/40           A147032
                                               01/19/68           R428772
Hunches in Bunches                             03/25/83           TX1-070382
I Can Draw It Myself                           08/28/70           A254607
I Can Lick 30 Tigers Today!                    09/26/69           A132498
I Can Read With My Eyes Shut!                  11/17/78           TX277144
I Can Write! *                                 08/12/71           A301287
I'm Not Going to Get Up Today *                05/12/88           TX2-342518
In a People House *                            08/15/72           A381487
Lorax                                          08/12/71           A301289
Many Mice of Mr. Brice                         04/09/90           VA-392557
(aka Pop-Up Mice of Mr. Brice) *                                  cover
                                                                  illustration
                                                                  only)
Marvin K. Mooney, Will You Please Go Now!      08/15/72           A381497
Maybe you Should Fly a Jet *                   01/26/81           TX633591
McElligot's Pool                               09/22/47           A17021
                                               11/04/74           R589631
Mr. Brown Can Moo!  Can You?                   08/28/70           A254461
My Book About Me *                             09/02/68           A149611
Oh, Say Can You Say?                           12/18/79           TX474051
Oh, the Places You'll Go! **                   10/19/90           VA430950
Oh, the Thinks You Can Think                   08/26/75           A692225
Please Try to Remember the                     10/17/77           A922415
First of Octember *
Shape of Me and Other Stuff                    07/24/73           A475432
There's a Wocket in My Pocket                  08/12/74           A595528
Tooth Book *                                   09/23/81           TX772784

Wacky Wednesday *                              09/10/74           A596273
Would You Rather be a Bullfrog?                08/26/75           A729058
You're Only Old Once                           04/14/86           TX1-807266
                                               08/26/91           TX3140074
Six by Seuss                                   08/26/91           TX3138467
Seven Lady Godivas                             09/20/39           A132274
                                               03/29/67           R407033
Dr. Seuss From Then to Now ***                 (applied for)
Daisy-Head Mayzie ****                         [Not yet published]

Any other Dr. Seuss books illustrated with typical Dr. Seuss characters, whether
or not previously published by Theodor S. Geisel are included in this grant, but
not books illustrated with other than typical Dr. Seuss illustrations and not
fine art books.

* The illustrations to these titles are not included within the definition of
the "Properties" under this Formal Agreement. Dr. Seuss, therefore, makes no
grant and extends no warranties or indemnities with respect to said
illustrations.

** MCA acknowledges and agrees that it may not exercise any of the rights
granted to it under the Formal Agreement with respect to the book, Oh, the
Places You'll Go!, or to the story "What Was I Scared Of?" which is contained in
the book Sneetches and Other Stories, until seven years from July 13, 1994.

*** Only the images and verse created by Theodor S. Geisel contained in this
title are included in this grant. MCA acknowledges and agrees that some of the
images and verse contained in this title are now in the public domain, and Dr.
Seuss Enterprises makes no grant and extends no warranties to such material.

**** MCA acknowledges and agrees that it may not exercise any of the rights
granted to it under the Formal Agreement with respect to Daisy-Head Mayzie prior
to seven years following the date of first broadcast of the animated television
program based on the title.

                                      A-4

                                    EXHIBIT B

                            PREVIOUSLY GRANTED RIGHTS

         1. Miscellaneous existing contracts with respect to television
programs, video products and dramatic presentations, none of which involve any
rights inconsistent with rights granted hereunder.

         2. Agreement with Tri-Star Pictures, Inc., to produce a motion picture
based on "Oh, the Places You'll Go!" and "What Was I Scared Of?" (from
"Sneetches and Other Stories") including certain rights with respect to
"Visiting Characters" from other Dr. Seuss books. Tri-Star Pictures, Inc., has
acknowledged that the letter agreement attached hereto as Exhibit B-2 (and
incorporated by this reference herein) clarifies Tri-Star Pictures, Inc.'s
rights with respect of the Properties and the Visiting Characters.

         3. Agreement with Hanna-Barbera, Inc., to produce an animated
television program based upon an as yet unpublished book entitled "Daisy-Head
Mayzie", to be published by Random House. Copyright ownership in the program is
held jointly by Dr. Seuss Enterprises and Hanna-Barbera, Inc.

         4. Agreement with Living Books, Inc. to produce, sell and distribute
electronic versions of books written by Theodor S. Geisel.

                                       B-1

                           DR. SEUSS ENTERPRISES, L.P.
                   c/o International Creative Management, Inc.
                               40 West 57th Street
                            New York, New York 10019

                                                              July 13, 1994

Lisbeth Aschenbrenner, Esq.
Senior Vice President, Legal Affairs
Tri-Star Pictures, Inc.
10202 West Washington Boulevard
Culver City, California 90232

Dear Ms. Aschenbrenner:

         Reference is made to that certain agreement between Theodor and Audrey
Geisel (the "Owner") and Tri-Star Pictures, Inc. ("Tri-Star") dated as of
September 7, 1990 (the "Agreement") pertaining to certain rights granted to
Tri-Star respecting Oh, the Places You'll Go! and What was I Scared of?
(hereinafter referred to as the "Property").

         This will acknowledge that theme park rights in the Property were not
granted to TriStar by Owner under the Agreement either to the Property or to the
Visiting Characters as defined in said agreement.

         In consideration of Tri-Star's entering into this letter of
clarification, Owner agrees that, if Owner elects to separately license theme
park rights to the Property to a third party as distinct from a license to a
third party of theme park rights to all or substantially all of the Dr. Seuss
properties, Owner shall notify Tri-Star in writing of the terms and conditions
it has been offered by such third party for such license and Tri-Star shall have
the right to accept such terms and conditions not less than five business days
after receipt thereof by written notice to Owner, in which event Owner shall
license such theme park rights to TriStar on such basis. The terms and
conditions which are presented to Tri-Star shall not include any terms which
cannot be met as easily by one person as another.

         In the event Tri-Star declines such offer, Owner shall be free to
license such theme park rights to a third party on a basis not less favorable to
Owner than that last offered to Tri-Star. However, it will not thereafter
license such theme park rights to a third party on a basis less favorable to
Owner than that last offered to Tri-Star unless it first offers such terms and
conditions to Tri-Star as set forth above.

                                  EXHIBIT B-2

                                    EXHIBIT C

                         TO THE FORMAL AGREEMENT BETWEEN
                                    MCA INC.
                         AND DR. SEUSS ENTERPRISES, L.P.
                           DATED AS OF APRIL 21, 1994

                  Attached is the Short Form Copyright License.

                                      C-1

                         SHORT FORM LICENSE OF COPYRIGHT

         Subject to the restrictions, exclusions, terms and conditions set forth
in the agreement between Dr. Seuss Enterprises, L.P. ("Licensor") and MCA INC.
("Licensee") dated as of April 21, 1994 (the "Formal Agreement"), Licensor, for
valuable consideration received, sells, grants and assigns to Licensee and to
such of its representatives, successors and assigns as may be authorized
pursuant to the terms of the Formal Agreement, an exclusive license to the
rights to any and all of the Dr. Seuss characters and any and all related
characters and elements, including, but not limited to, the likenesses,
digitized likenesses, visual representations, symbols, designs, personalities,
voices, music, mannerisms, common phrases, themes, plots, elements and
animation, and a non-exclusive merchandising license in connection with the
same, for use by Licensee in, and in connection with, theme parks, amusement
parks, studio attractions and other comparable venues throughout the world, all
as set forth in more detail in the Formal Agreement.

         Dated as of this 27th day of Sept., 1994.

                                       DR. SEUSS ENTERPRISES, L.P.,

                                       By: Geisel-Seuss Enterprises, Inc.
                                           General Partner

                                           By: /s/ Audrey S. Geisel
                                               ---------------------------------
                                               Audrey S. Geisel, President

                                           By: /s/ Karl ZoBell
                                               ---------------------------------
                                               Karl ZoBell, Vice President

                                      C-2

STATE OF CALIFORNIA
                             }     SS.
COUNTY OF SAN DIEGO

On SEPTEMBER 27, 1994, before me, the undersigned Notary Public, personally
appeared AUDREY S. GEISEL (X) personally known to me or ( ) proved to me on the
basis of satisfactory evidence to be the person whose name is subscribed to the
within instrument, and acknowledged to me that she executed the same in her
authorized capacity, and that by her signature on the instrument the person, or
the entity upon behalf of which the person acted, executed the instrument.

WITNESS my hand and official seal.

                                       /s/ Mildred Basden
                                       -----------------------------------------
(S E A L)

STATE OF CALIFORNIA
                             }     SS.
COUNTY OF SAN DIEGO

On SEPT. 28, 1994, before me, the undersigned Notary Public, personally appeared
KARL ZOBELL (X) personally known to me or ( ) proved to me on the basis of
satisfactory evidence to be the person whose name is subscribed to the within
instrument, and acknowledged to me that he executed the same in his authorized
capacity, and that by his signature on the instrument the person, or the entity
upon behalf of which the person acted, executed the instrument.

WITNESS my hand and official seal.

                                       /s/ Mildred Basden
                                       -----------------------------------------
(S E A L)

                                      C-3

                                    EXHIBIT D

                         TO THE FORMAL AGREEMENT BETWEEN
                                    MCA INC.
                         AND DR. SEUSS ENTERPRISES, L.P.
                           DATED AS OF APRIL 21, 1994

                       Attached are the Heir's Agreements.

                                       D-1MARVEL

                                  DEAL CONCEPTS

I.  PROJECT DESCRIPTION

    MCA is developing a complete destination resort on approximately 800 acres
    owned by it and a partner in Orlando, Florida, on which Universal Studios
    Florida is located and attracted approximately 7 million visitors in 1992.

    When completed, as presently planned the resort will consist of the existing
    theme park and HARD ROCK CAFE, plus a second gated theme park ("THE SECOND
    GATE"), four highly themed hotels totalling 4,000 rooms, a themed
    entertainment and shopping complex, as well as a golf course, tennis club
    and spa. It is contemplated that the total cost of building out these
    facilities over the next decade will be approximately $3 billion. The total
    complex is hereafter referred to as "Universal City Florida".

    THE SECOND GATE will be similar in size, quality and originality to
    Universal Studios Florida and is expected to generate even greater
    attendance, stay time and visitor expenditures given the unique appeal of
    the park and the synergies which will arise from the total destination
    resort

    concept. A theme park with anticipated initial attendance of five million
    visitors per year which is essentially comparable in size, quality and per
    capita expenditure to the present Universal Studios Florida is hereafter
    referred to as a "Universal Theme Park". As with Universal Studios Florida,
    *** will play a major role as creative consultant in the development of THE
    SECOND GATE at the Universal Theme Park (Orlando).

    A.   DEVELOPMENT OF THE MARVEL UNIVERSE

         As part of THE SECOND GATE, within a separate environment designated
         under the banner of THE MARVEL UNIVERSE (or similar designation
         approved by Marvel) MCA will construct a complex of attractions, stores
         and food venues heavily themed around the Marvel properties. Marvel
         hereby grants MCA a license to use Marvel's characters for the
         purposes, on the terms and to the extent set forth herein.

         In developing and implementing THE MARVEL UNIVERSE, MCA will follow and
         be consistent with The Official Handbook of The Marvel Universe,
         Marvel's Style Guide and such other descriptive design/style materials
         as may be provided by Marvel. This Marvel-themed complex would be
         designed in coordination with Marvel, and all major elements and themes
         would be subject to Marvel's reasonable approval. As set forth in
         Section IV(A)(1)

                                       2

         any use of non-Marvel characters within THE MARVEL UNIVERSE (whether or
         not as a major element) will be subject to Marvel's approval. The
         completed cost of this Marvel-oriented complex (design and
         construction, including reasonably allocated infrastructure) would be
         approximately $***.

    B.   MARKETING OF THE MARVEL UNIVERSE

         In marketing THE SECOND GATE, MCA will see to it that Marvel is a
         significant focus of its marketing efforts, and that Marvel elements
         are included in at least $*** of fair value of advertising, publicity,
         brochures, joint promotions, or other marketing exposure relating to
         THE SECOND GATE (which may include other elements of Universal City
         Florida) during the initial two years of operation (plus the
         pre-opening period). During the subsequent five year period, Marvel
         elements will be included in at least 20% of the value of the marketing
         exposure of the Universal Theme Park (Orlando) and thereafter in at
         least $*** per year relating to THE SECOND GATE at the Universal Theme
         Park (Orlando) (which may include other elements of Universal City
         Florida).

         Marvel shall have a reasonable right of advance approval relating to
         the use of its trademarks in connection with any such advertising,
         publicity, brochures, promotions or

                                       3

         other marketing efforts by MCA. Once particular artwork has been
         approved by Marvel, MCA may continue to use such artwork unless
         notified to the contrary by Marvel.

         Permitted marketing efforts shall include joint promotions and
         corporate sponsorships, so long as it is clear that what is being
         marketed is THE SECOND GATE or THE MARVEL UNIVERSE, or specific
         elements of THE MARVEL UNIVERSE, as opposed to the Marvel name or
         characters themselves apart from the theme park, and in no event will
         the Marvel elements, in the aggregate, be more than ***% of an overall
         MCA third party promotion.

         Any Corporate Sponsorship shall require Marvel's approval, as will any
         joint promotion in which MCA receives cash or other consideration
         (including items of value) other than free media inclusion. As to MCA
         joint promotions in which MCA does not receive cash or other
         consideration, Marvel shall have the right to notify MCA from time to
         time of significant promotional arrangements it has made or are in
         serious negotiations with third parties which might conflict with
         unannounced MCA joint promotions. Thereafter any MCA proposed joint
         promotion (in which MCA receives no consideration) involving a
         competing product or entity in the territory covered by a Marvel
         promotion contained in such notice(s) shall require Marvel's approval.

                                       4

II. PROCEEDING TO COMPLETION OF THE MARVEL UNIVERSE

    A.   Upon execution of this agreement, MCA will pay Marvel $*** in
         consideration of entering into this exclusive relationship.

         Concurrently, MCA will commence designing THE MARVEL UNIVERSE, and will
         work diligently (including meeting the requirements set forth in
         subsection II(B) below) to complete its design and construction as part
         of its overall plans for the initial opening content of THE SECOND
         Gate. At the end of each year prior to the opening of any THE MARVEL
         UNIVERSE the President of MCA shall deliver a letter to Marvel
         affirming the intention of MCA to complete construction and open THE
         MARVEL UNIVERSE by the required deadline stated herein, and informing
         Marvel in general terms of the progress to date, including a statement
         of the expenditures in such year discussed in the next paragraph.

         To further this goal, MCA will expend at least $***/year on a
         cumulative basis (allowing carry forward) on design and construction of
         THE MARVEL UNIVERSE over the next three years.

                                       5

         MCA's rights under this agreement will terminate if THE MARVEL UNIVERSE
         does not open within six months of the opening of THE SECOND GATE (with
         further extensions of up to one year for clear-cut force majeure events
         such as major fires or other destructive events), with an outside date
         for opening THE MARVEL UNIVERSE of 2001 (with similar extensions of up
         to one year for clear-cut force majeure events). In no event shall MCA
         have any rights under this Agreement if both the Second Gate and The
         Marvel Universe at Universal City Florida have not opened by December
         31, 2002.

    B.   Further, MCA's right to proceed to open THE MARVEL UNIVERSE at THE
         SECOND GATE shall lapse under the following circumstances:

         1.   MCA shall fail to accomplish any of the following benchmarks:

              (a)  Securing all significant governmental approvals to utilize
                   the site of THE SECOND GATE by December 31, 1998.

              (b)  Commence construction of THE SECOND GATE by December 31,
                   1999.

                                       6

              (c)  Commence construction of THE MARVEL UNIVERSE by December 31,
                   2000.

         2.   In the event THE MARVEL UNIVERSE as part of THE SECOND GATE has
              not opened by December 31, 1998 and MCA shall fail to pay to
              Marvel an additional option fee in the amount of $*** on each
              subsequent January 1st that THE MARVEL UNIVERSE is not open to the
              public.

III. TERM

    Once THE MARVEL UNIVERSE opens within the above time period, the term of
    this agreement shall continue for so long as a THE MARVEL UNIVERSE shall
    remain open (and operated consistent with the standards of the next
    paragraph below) at any Universal Theme Park (allowing for temporary
    closures for force majeure events or refurbishment/maintenance provided they
    are being diligently pursued), except for termination for material breach
    (with written notice and a reasonable opportunity to cure).

    Each THE MARVEL UNIVERSE shall be operated and maintained in a first class
    manner consistent with the highest standards of the theme park industry and
    shall be deemed "open" only when operated in such manner (subject to
    temporary closures for force majeure events as described in the prior
    paragraph).

                                       7

    At such time as any THE MARVEL UNIVERSE is no longer open at a particular
    Universal Theme Park, all exclusivity and marketing rights acquired by MCA
    as a result of the opening of such THE MARVEL UNIVERSE at such Universal
    Theme Park, as set forth in Section IV below, shall terminate and this
    Agreement shall thereafter be construed as if the notice of intent to open
    THE MARVEL UNIVERSE had not been given by MCA.

IV. EXCLUSIVITY

    A.   Exclusivity of Marvel Characters Within THE MARVEL UNIVERSE:

         1.   Within THE SECOND GATE, the Marvel Characters will be primarily
              utilized as part of THE MARVEL UNIVERSE, although they may also be
              used throughout THE SECOND GATE as strollers or featured elements
              in stores, restaurants, and the like (subject to Marvel's
              reasonable approval). Within THE MARVEL UNIVERSE, the use of any
              non-Marvel characters will be subject to Marvel's approval.

    B.   Other Theme Parks

         1.   MCA (or an MCA "Corporately Related Company" (defined below)),
              shall have an option to utilize the Marvel characters in THE
              SECOND GATE of the

                                       8

              Universal Theme Park (Orlando) and an exclusive world-wide option
              to utilize the Marvel characters in additional THE MARVEL
              UNIVERSES in any other Universal Theme Parks which initial option
              must be exercised during the two year period beginning on the date
              of the opening of THE MARVEL UNIVERSE in the Universal Theme Park
              (Orlando). The present inventory of the Marvel characters is set
              forth in the schedule to be attached or provided by Marvel
              promptly after execution hereof, plus any characters developed or
              acquired or licensed in the future by Marvel which (x) are
              marketed under the Marvel "Banner" or (y) were previously marketed
              under the Marvel "Banner" during the term hereof and are
              subsequently marketed under the "Banner" of a Marvel Related
              Company (defined below). Any characters which are licensed to
              Marvel by third parties subject to terms which require Marvel to
              pay a license fee based on revenues or which do not permit
              sublicensing may be excluded, at Marvel's option, in the foregoing
              grant.

              a.   After such 2 year period, MCA's exclusive rights will be
                   subject to "shrinkage" or "expansion" as follows:

                                        9

                   1.   If no action is taken by MCA, such exclusivity shall be
                        limited as follows:

                        i.   East of The Mississippi - any other theme park is
                             limited to using characters not currently being
                             used by MCA at the time such other license is
                             granted. [For purpose of this subsection and
                             subsection iv, a character is "being used by MCA"
                             if (x) it or another character of the same "family"
                             (e.g., any member of THE FANTASTIC FOUR, THE
                             AVENGERS or villains associated with a hero being
                             used) is more than an incidental element of an
                             attraction, is presented as a costumed character,
                             or is more than an incidental element of the
                             theming of a retail store or food facility; and,
                             (y) in addition, if such character or another
                             character from the same "family" is an element in
                             any MCA marketing during the previous year. Any
                             character who is only used as a costume character
                             will not be considered to be "being

                                       10

                             used by MCA" unless it appears as more than an
                             incidental element in MCA's marketing.]

                        ii.  West of The Mississippi - any other theme park may
                             use any Marvel characters whether or not used by
                             MCA.

                        iii. East or West of The Mississippi - permitted uses
                             shall be limited to the use of specific Marvel
                             characters and Marvel may not permit a licensee to
                             use the name "Marvel" as part of the attraction
                             name or marketing.

                        iv.  East or West of The Mississippi - The foregoing
                             permitted uses will be subject to the following
                             marketing restrictions:

                             (a)  If the particular character is used by MCA (as
                                  defined above), such character will not be
                                  advertised or promoted East of The
                                  Mississippi, except by means of national
                                  Network buys

                                       11

                                  of television, within printed materials such
                                  as brochures, or by print advertisements in
                                  periodicals directed to readers more than 300
                                  miles from Orlando; and with regard to any of
                                  the foregoing permitted marketing, if the
                                  marketing is for a group of theme parks
                                  located both East and West of The Mississippi,
                                  the marketing shall make abundantly clear that
                                  the character only appears in the parks West
                                  of The Mississippi and shall not be subject to
                                  confusion on such point (such as would occur
                                  by visual inclusion of the character in a
                                  generic, multipark advertisement subject to a
                                  small print explanation of the parks where the
                                  character is present).

                             (b)  If the particular character is not used by
                                  MCA, such character will not be advertised or

                                       12

                                  promoted by means of (x) spot television buys,
                                  billboards, personal appearances, or print
                                  advertisements which are (y) viewed, located
                                  or primarily directed to persons within 300
                                  miles of Orlando. In other words, regional
                                  (i.e. covering a multi-state geographic
                                  region) or national television or print media
                                  buys, or brochures would not be prohibited
                                  within such 300 mile radius.

                   2.   Within 2 years after opening of THE MARVEL UNIVERSE in
                        Orlando, MCA may retain its worldwide exclusivity for up
                        to 5 additional years by designating another location
                        where it intends to develop THE MARVEL UNIVERSE as part
                        of a theme park, and by paying an option fee of $*** per
                        year. Provided such second theme park opens within such
                        5 year period, MCA shall maintain worldwide exclusivity
                        for an additional two year period after such opening,
                        and thereafter

                                       13

                        it srights will be subject to the "shrinkage" or
                        "expansion" concept described above (in the manner
                        described below).

                        As used throughout this agreement, any subsequent THE
                        MARVEL UNIVERSE must cost at least $*** (calculated in
                        the manner described previously), must appear in a
                        Universal Theme Park, and Marvel's representation
                        therein will be of at least comparable proportion and
                        like quality to its representation (including as to the
                        retail exposure and promotional efforts of MCA) within
                        THE SECOND GATE at Universal City Florida.

                        i.   With regard to the second and subsequent Universal
                             Theme Parks in the areas specified below, MCA's
                             exclusivity shall be as follows:

                             a.   Second U.S. Park - all of U.S.

                             b.   Any of Japan, Hong Kong, the Philippines,
                                  Singapore, Malaysia, Indonesia, Mainland

                                       14

                                  China, Taiwan, North or South Korea, Vietnam,
                                  or Thailand, exclusivity will apply to all
                                  others.

                             c.   Europe Park - all Europe, including Turkey,
                                  but excluding any areas that were part of the
                                  former USSR.

                        ii.  With regard to subsequent Universal Theme Parks in
                             areas other than as described in (i) above, the
                             parties will in good faith agree upon comparable
                             geographic provisions to the "East of the
                             Mississippi" provisions applicable to the Orlando
                             Universal Theme Park. Thereafter, the above
                             "shrinkage" or "expansion" provisions shall
                             continue to apply to all such future Universal
                             Theme Parks described in this subsection (ii). If
                             after opening any subsequent Universal Theme Park
                             MCA does not institute the option payments within 2
                             years, continue the option payments, and open such

                                       15

                             newly designated subsequent Universal Theme Park
                             within 5 years thereafter, its rights shall be
                             permanently "shrunk", and it will have no further
                             right to build any new THE MARVEL UNIVERSE.

                   3.   Any THE MARVEL UNIVERSE constructed hereunder after THE
                        MARVEL UNIVERSE (Orlando) shall be subject to the
                        payment and other relevant terms of this agreement
                        applicable to THE MARVEL UNIVERSE (Orlando), except as
                        to CPI increases as set forth herein.

                   4.   To the extent and in the territories that MCA has
                        exclusive theme park rights, such shall not prohibit
                        (except for the limitations described below) Marvel from
                        itself developing or licensing its planned Retail
                        concept which may include interactive elements as a
                        major or minor element (presently intended to be called
                        "The Marvel Action Universe" and referred to as such
                        herein, but which may also be called "The Marvel
                        Universe" or another name chosen by Marvel). The Marvel
                        Action Universe will consist, inter alia, of the sale of
                        comic books, trading cards, software, licensed or Marvel
                        produced merchandise, the use of electronic games and/or
                        pinballs or other coin operated games, and may include
                        one or more virtual reality and/or simulator ride using

                                       16

                        Marvel characters or other themes. The following
                        restrictions shall apply to The Marvel Action Universe
                        (or elements thereof whether owned or licensed by
                        Marvel).

                        a.   Restrictions as to the geographic location of The
                             Marvel Action Universe in areas where MCA has
                             exclusive rights hereunder.

                             i.   The Marvel Action Universe will not be within
                                  60 miles of any Universal Theme Park with a
                                  THE MARVEL UNIVERSE

                             ii.  Mini-theme parks, recreation centers, game
                                  centers and the like designated with the
                                  Marvel name or the name of any Marvel
                                  characters or any major entertainment
                                  component of a Marvel Action Universe such as
                                  a motion based film ride shall not be within
                                  60 miles of any Universal Theme Park with a
                                  THE MARVEL UNIVERSE.

                             iii. Within the ADI market of the city containing a
                                  Universal Theme Park (even to the extent such
                                  ADI exceeds a 60 mile radius) there shall not
                                  be a Marvel themed simulator ride.

                                       17

                        b.   Restrictions as to elements of The Marvel Action
                             Universe in areas where MCA has exclusive rights
                             hereunder.

                             i.   Within 300 miles of any Universal Theme Park
                                  with a THE MARVEL UNIVERSE, no The Marvel
                                  Action Universe shall contain more than one
                                  simulator, nor shall such simulator hold more
                                  than 20 people. Motion based or virtual
                                  reality attractions which are coin operated
                                  and hold no more than 4 people shall not be
                                  deemed a "simulator" subject to the above
                                  restriction. Any such rides which are
                                  interconnected so as to create a simultaneous
                                  experience among multiple units exceeding an
                                  aggregate of 4 people shall be deemed
                                  simulator rides and the number of people in
                                  such interconnected rides shall be counted
                                  toward the 20 person limit above.

                        c.   Restrictions as to affiliations or marketing of The
                             Marvel Action Universe or elements thereof, in
                             areas where MCA has exclusive rights hereunder.

                             i.   The Marvel Action Universe will not be within
                                  any theme park, nor marketed in conjunction
                                  with any theme park. For purposes of these

                                       18

                                  restrictions, an area of 10 acres or less will
                                  not be deemed a theme park. An area in excess
                                  of 10 acres may or may not be deemed a theme
                                  park based on its overall characteristics.

                             ii.  No The Marvel Action Universe will be marketed
                                  so as to infer or imply that such THE MARVEL
                                  ACTION UNIVERSE or one of its components (x)
                                  constitutes a theme park or (y) is a component
                                  of a theme park.

                             iii. No The Marvel Action Universe shall be in or
                                  marketed in conjunction with any themed
                                  entertainment areas owned, operated or
                                  marketed by Disney, Time-Warner, Six Flags,
                                  Sony, Paramount or Busch. As used herein,
                                  "theme park" and "themed entertainment areas"
                                  shall not include, inter alia, facilities or
                                  complexes where at least 70% of the revenues
                                  generated on the premises are derived from
                                  retail sales or whose primary source of
                                  revenue is lodging (which may include food,
                                  beverage and gaming revenues).

                        d.   Pre-Existing Conditions in areas where MCA has
                             exclusive rights hereunder.

                                       19

                             The restrictions set forth in subparagraphs a and b
                             above shall not apply to any The Marvel Action
                             Universe or elements thereof which already "Exists"
                             on the "Trigger Date" (both defined below) and
                             would be thereafter impacted by subparagraphs a and
                             b above due to the creation of a new THE MARVEL
                             UNIVERSE in a Universal Theme Park. However, no
                             such Marvel Action Universe shall be materially
                             enhanced in relation to any otherwise prohibited
                             element (except as to matters of governmental
                             compliance and general refurbishment and updating)
                             after the opening of such new THE MARVEL UNIVERSE
                             in a Universal Theme Park. For purposes of this
                             subsection the following definitions shall apply:

                             (x)  A Marvel Action Universe (or otherwise
                                  prohibited element) shall be deemed to "Exist"
                                  if it is (a) open for business or (b) a lease
                                  has been executed or a contract for purchase
                                  of land has been executed (in either case for
                                  a site for a The Marvel Action Universe) and
                                  Marvel is diligently proceeding to develop and
                                  open such The Marvel Action Universe.

                             (y)  The "Trigger Date" for any THE MARVEL UNIVERSE
                                  is the date hereof as to Orlando

                                       20

                                  and, as to any subsequent THE MARVEL UNIVERSE
                                  in a Universal Theme Park, the later of the
                                  date on which (i) THE MARVEL UNIVERSE at the
                                  Universal Theme Park (Orlando) opens for
                                  business or (ii) MCA has announced development
                                  and paid the $*** (as adjusted by CPI) option
                                  fee relating to such new THE MARVEL UNIVERSE
                                  as set forth in Section IV(B)(1)(a)(2).

                        If Marvel is actively operating and/or developing The
                        Marvel Action Universes in the 60 mile radius or ADI of
                        any such newly announced THE MARVEL UNIVERSE at a
                        Universal Theme Park, at the time of such announcement
                        by MCA, Marvel may request MCA to consider, in good
                        faith, modifying those terms of this subsection which
                        limit Marvel's enhancement and/or development of The
                        Marvel Action Universes in such 60 mile area or ADI,
                        although MCA shall be under no obligation to change the
                        restrictions herein.

V.  OTHER ASPECTS OF RELATIONSHIP

    As to each THE MARVEL UNIVERSE at a Universal Theme Park (subject to CPI
    adjustments as set forth herein), the following shall apply:

                                       21

A.  Annual Fee

    Upon the opening of THE SECOND GATE, and on an annual basis thereafter, MCA
    will pay a fee of $***.

B.  Merchandise Opportunities/Specialty Stores

    Throughout THE SECOND GATE, stores will carry a wide range of Marvel
    produced or licensed products and artwork, Marvel comic books, Fleer trading
    cards (or cards of such other licensee as may be designated by Marvel), and
    toys (primarily action figures) manufactured by Toy Biz, Inc. (or such other
    Marvel licensee as may be designated by Marvel). Additionally, within or
    adjacent to THE MARVEL UNIVERSE there would be significant retail space
    dedicated to Marvel publications, software, products, and cards produced or
    licensed by Marvel. It is anticipated that this exposure to a highly
    motivated public who have experienced THE MARVEL UNIVERSE, combined with the
    underlying popularity of the Marvel properties, will result in a level of
    sale of Marvel manufactured and licensed products, such as would make THE
    SECOND GATE an extremely lucrative outlet for its properties.

    Within THE SECOND GATE, a minimum of 10,000 square feet of retail space will
    be devoted to items licensed or manufactured by Marvel or its related
    companies

                                       22

    including a minimum of 5,000 square feet of retail space in stores themed
    around MARVEL properties and devoted virtually exclusively (allowing for
    minor exceptions such as film, etc., but not competing characters) to the
    sale of MARVEL items.

    MCA will give serious consideration to placing such Marvel-oriented stores
    at or adjacent to the exit of the major attractions within THE MARVEL
    UNIVERSE, consistent with its reasonable judgment as to traffic flow,
    planning considerations and customer acceptance.

    The various Marvel properties and merchandise will also be used throughout
    the destination resort including within the hotels (if operated by MCA or an
    MCA Corporately Related Company; or if operated by a third party MCA will
    encourage such use), and Marvel theming and merchandise will be featured in
    any airport stores operated by MCA in Los Angeles or Orlando. Uses of Marvel
    theming in MCA operated stores other than within the resort property or
    within the aforesaid MCA operated airport stores will require specific
    Marvel approval.

    The merchandise within such retail facilities will either be (i) purchased
    from Marvel's licensees; (ii) purchased directly from Marvel or its
    designated distributors; or

                                       23

    (iii) manufactured by or to MCA's specifications as a direct licensee of
    Marvel.

         a.   Sale of food or beverage, at non-premium prices, from Marvel
              themed facilities will not be subject to royalties, unless the
              items sold carry Marvel logos or proprietary elements. In the
              event such item(s) carry Marvel logos or proprietary elements,
              Marvel shall receive a license fee of *** percent on the wholesale
              price of such item (i.e. combined food and packaging).

         b.   Food or beverage items sold at a premium price, either from Marvel
              themed facilities or which carry Marvel logos or proprietary
              elements, shall bear a licensee fee to Marvel equal to the greater
              of (x) *** percent on the wholesale price or (y) *** percent of
              the retail price of such item (i.e. combined food and packaging).

C.  Merchandise Royalty Guarantee

    MCA will pay an annual guaranteed merchandise advance of $*** which will be
    applied against merchandise royalties from any of its retail outlets
    calculated at a

                                       24

    rate of ***% of wholesale cost. After the annual guaranteed advance is fully
    earned, the royalty on additional sales will decrease to ***% and will be
    paid quarterly. Such royalty will be applied to the wholesale cost of
    merchandise manufactured for and purchased by MCA as a direct licensee of
    Marvel, and to the cost of items purchased from Marvel's licensees. (While
    Marvel will not require its licensees to sell items to MCA without a royalty
    built into the price, Marvel will not in any way prohibit or restrict MCA
    from being a direct licensee of Marvel or a Marvel Related Company for the
    purpose of producing products to be sold by MCA at Universal Theme Parks,
    surrounding complexes and certain airport stores as provided herein,
    including by means of exclusive licenses granted to parties other than
    Marvel Related Companies). In the event Marvel is unable to give MCA a
    direct license because of a conflicting license, MCA shall receive a credit
    for the license fees payable to Marvel by MCA hereunder, and Marvel agrees
    that the royalty rate paid by its Licensee in connection with each item as
    to which Marvel cannot grant a license to MCA will be set consistent with
    Marvel's normal business practices.

    1.   Marvel will have reasonable audit and review rights to assure that
         proper payments are made and that the cost attributed to merchandise
         manufactured for

                                       25

         MCA's order is being fairly stated and, inter alia, is not being
         "adjusted" so as to reduce the royalties due Marvel in favor of other
         merchandise not covered by this agreement.

    2.   The parties will develop reasonable audit rights and procedures which
         will be consistent with industry standards. MCA will reimburse Marvel
         for the reasonable cost of any audit resulting in Marvel being due
         additional sums exceeding ***% of the sums paid by MCA.

    3.   Marvel will have reasonable approval of all licensed merchandise,
         artwork, merchandise packaging, logos, and the like utilizing the
         Marvel properties, which approval will be granted or withheld in a
         timely and reasonable manner and will not be used in a way which would
         frustrate the intent of this Agreement.

    4.   Where items of merchandise feature both the Marvel properties and other
         characters or elements proprietary to third parties (such as posters,
         T-shirts, coffee mugs and the like portraying the wide range of
         characters present in THE SECOND GATE) a procedure to arrive at a
         reasonable allocation of the royalty will be worked out.

                                       26

D.  Product Purchase Guarantee

    In addition to the Royalty Guarantee set forth in C above, if MCA's
    wholesale cost of the comic books, art work, trading cards, toys, videos,
    games, and related items purchased from Marvel (or a Marvel Related Company)
    or their distributor (as to such Marvel produced items) do not exceed at
    least $*** in a given year, MCA will promptly pay to Marvel any such short
    fall, or purchase items covering such short fall. Such items purchased by
    MCA from Marvel or a Marvel Related Company (whether directly or through a
    distributor) shall not be subject to a Marvel royalty, and any royalty built
    into the wholesale cost shall be deducted. In the event that the product
    line produced by Marvel and Marvel Related Companies is substantially
    reduced after the date hereof, limiting the product available to MCA for
    sale at Universal Theme Parks, the parties shall negotiate in "good faith"
    an adjustment to the above $*** guarantee.

E.  Comic Book Advertising

    MCA intends to advertise THE SECOND GATE (in a manner that features the
    Marvel properties) on the back page of various Marvel Comics. Marvel will
    work with MCA toward this end and provide information concerning

                                       27

    demographically appropriate magazines and their availability. Such
    advertising buys will be at the best rates available from Marvel to
    unrelated third parties for such publications for purchases of comparable
    volume. Subject to the availability of the specific publications MCA
    reasonably believes appropriate for its needs, MCA will expend at least the
    following amounts on advertisements appearing on Marvel comics:

1.  During the initial two years of operations (plus the pre-opening period)
    - $***.

2.  Per year thereafter - $***.

F.  Marvel Compensation Alternative

    MCA agrees that if, as to any Universal Theme Park containing a THE MARVEL
    UNIVERSE, MCA utilizes "characters" not owned by MCA or an MCA Related
    Company and the financial arrangement between MCA and the owner or licensor
    of such "characters" (the "third party") involves the "payment by MCA of
    sums based on revenues of the Theme Park or a significant portion thereof"
    (defined below), MCA shall offer to Marvel, the opportunity at Marvel's
    option to elect to be compensated for the use of the Marvel license granted
    herein as it relates to such specific THE MARVEL UNIVERSE, on the same basis
    as such

                                       28

    "third party". If Marvel so elects then MCA shall receive credit for
    payments previously made to Marvel to the extent comparable or similar
    payments were not part of such "third party" deal. In the event such "third
    party" is required by MCA to invest in the Universal Theme Park where its
    characters are being utilized, Marvel shall have a comparable obligation if
    Marvel exercises the option to be compensated based on the Compensation
    Alternative set forth in this paragraph F.

    The "payment by MCA of sums based on revenues of the Theme Park or a
    significant portion thereof" is intended to encompass "royalty" arrangements
    or similar arrangements which compensate the "third party" based on net
    revenues, gross revenues, attendance, or any other standard measuring the
    economic performance of a particular Universal Theme Park or a significant
    portion thereof.

VI. MISCELLANEOUS LEGAL

    A.   All sums to be paid or expended by MCA hereunder pursuant to Sections
         I(B), II(B), IV(B)(1)(a)(2), IV(B)(2), V(A), V(C), V(D) and V(E) shall
         be increased for each year after 1998 using the U.S. national CPI as of
         December 31, 1998 as the base.

                                       29

    B.   Marvel will reasonably cooperate in making information, artwork,
         archive material, key personnel, etc. available to MCA in order that
         MCA can creatively develop THE MARVEL UNIVERSE and exploit its rights
         hereunder. MCA will reimburse Marvel for its reasonable costs in this
         regard, including time of non-executive personnel and their reasonable
         travel expense.

    C.   Whenever Marvel has "reasonable" rights for rejection of approval
         hereunder, the basic criteria to be used by Marvel may include
         inconsistency with (i) basic story line, (ii) the powers, (iii) basic
         personality traits, (iv) physical appearance (including clothing or
         costume), and/or (v) living habitat or environment relating to such
         character as portrayed in Marvel's exploitation of such character in
         comic books or other products for the particular time period being
         depicted by MCA.

    D.   MCA shall take appropriate action, as directed by Marvel to protect all
         copyrights and trademarks in connection with the uses granted
         hereunder, including in-park uses, merchandise and packaging.

    E.   Marvel represents and warrants that it is the proper party to grant the
         rights contained in this Agreement and that such grant is effective and
         binding.

                                       30

    F.   MCA agrees to defend, indemnify and hold harmless Marvel against any
         claims arising out of MCA's exploitation of the rights granted
         hereunder (including, without limitation, the operation of a Universal
         Theme Park) or use of the Marvel properties (except for those related
         to breaches in Marvel's warranties); and Marvel agrees to defend,
         indemnify and hold harmless MCA against any claim arising from Marvel's
         breach of its representations and warranties contained herein. Any
         indemnification obligation hereunder shall apply to the party
         specified, its parent or subsidiary companies, affiliates, officers,
         directors, shareholders, agents and employees (and, in the case of MCA,
         the actual MCA Corporately Related Company exploiting the rights
         granted hereunder), and shall cover any and all loss, liability,
         claims, damage and expense, including reasonable attorney's fees of the
         protected party hereunder.

    G.   Either party may terminate this agreement upon a material breach of the
         other party, subject to written notice and a reasonable opportunity to
         cure.

    H.   As used herein, an MCA "Corporately Related Company" shall mean any
         entity in which MCA has a majority interest in the voting equity
         (directly or indirectly) which operates or manages a particular
         Universal Theme

                                       31

         Park in which THE MARVEL UNIVERSE is or will be located.

    I.   As used herein, a "Marvel Related Company" shall mean any entity that
         is owned in whole by Marvel or (i) in which Marvel (or a company in
         (iii), (iv) or (v) below) has at least a 25% equity interest, (ii)
         Marvel (or a company in (iii), (iv) or (v) below) has a significant
         board representation, (iii) is a parent of Marvel, (iv) is controlled
         by an entity which (directly or indirectly) controls Marvel, or (v) is
         an "affiliate" of Marvel as defined in the 1933 Securities Act.

    J.   In the event any dispute, claim or difference arises out of this
         Agreement as to the rights and liabilities of the parties hereunder,
         the breach or invalidity of any covenants hereunder or in connection
         with the construction of this Agreement (each such event, a "Dispute"),
         the parties shall settle the Dispute by binding arbitration. Except as
         otherwise specifically provided in this Section J, the arbitration
         shall be conducted in accordance with the Commercial Arbitration Rules
         of the American Arbitration Association in effect as of the date of
         commencement of the arbitration. The arbitration shall be held in New
         York, New York, unless the parties mutually agree to have the
         arbitration held elsewhere. The arbitration panel shall have the

                                       32

         authority to order travel, as part of a proceeding, to the site of any
         Universal Theme Park or other physical location, the viewing of which
         the panel believes is useful in determining facts relevant to
         resolution of the dispute. Judgment upon the award made in any
         arbitration proceeding hereunder may be entered by any court having
         jurisdiction thereof; provided, however, that nothing contained in this
         paragraph shall be construed to limit or preclude a party from bringing
         any action in any court of competent jurisdiction in the United States
         for injunctive or other provisional relief to compel another party
         hereto to comply with its obligations under this Agreement during the
         pendency of the arbitration proceedings.

         A party may commence arbitration by giving written notice to the other
         party, which shall include the contention of the party requesting
         arbitration, the factual circumstances giving rise to the dispute, the
         provisions of the Agreement which are alleged to have been breached or
         violated and the name and address of the arbitrator the party has
         appointed from a list of arbitrators who have been pre-approved by the
         parties. The parties shall in good faith appoint arbitrators to the
         list with experience in the entertainment business and intellectual
         property rights. Within ten (10) days following receipt of such notice,
         the other party shall appoint a second

                                       33

         arbitrator from the same list and provide the name and address to the
         other party. In the event both parties appoint the same arbitrator, he
         shall be the only arbitrator to decide the Dispute. In the event each
         party appoints a different arbitrator, the parties shall appoint a
         third arbitrator from the list. If within five (5) days the parties
         cannot agree upon a third arbitrator, they shall so notify the two
         appointed arbitrators within 24 hours. Within ten (10) days of
         appointment of the second arbitrator, the two arbitrators appointed
         shall choose a third arbitrator from the list and shall notify the
         parties as to their choice. The arbitrators shall be empowered to grant
         such injunctive relief as they deem appropriate. In the event a party
         believes that expedited arbitration proceedings are necessary, such
         party may request an expedited arbitration proceeding. In such event,
         the arbitrators shall have the power to order all discovery to proceed
         on an expedited basis, the arbitration shall proceed on an expedited
         basis and the arbitrators shall render their decision within five (5)
         business days after concluding all evidentiary proceedings. Either
         party may request the arbitration panel to assess the costs of the
         arbitration and/or the prevailing party's legal fees against the party
         which loses the arbitration. The arbitrators shall exercise their
         discretion in deciding if, upon receiving such request and rendering
         their

                                       34

         decision, one party properly should be assessed the costs of the
         arbitration and/or the legal fees incurred by the prevailing party.

    K.   This Agreement shall be governed by the laws of the State of New York.

    L.   Although the parties may ultimately enter into a more formal agreement
         containing the above terms, until such occurs, the terms of this
         Agreement shall be binding on the parties.

                        [NEXT PAGE IS THE SIGNATURE PAGE]

                                       35

MCA Inc.                               Marvel Entertainment Group

By: /s/ Ron Bension                    By: /s/ William Bevins
    --------------------------             --------------------------
    Ron Bension                            William Bevins
    Chairman                               Chief Executive Officer

MCA Recreation Services

This agreement dated       March 22, 1994            .
                     --------------------------------

                                       36

FIRST AMENDMENT TO AGREEMENT BETWEEN MCA INC. ("MCA") AND MARVEL CHARACTERS,
INC. ("MARVEL") dated this 29th day of September, 1995.

         THE BACKGROUND OF THIS AGREEMENT IS AS FOLLOWS:

         A. As of March 22, 1994 MCA and Marvel Entertainment Group, Inc.
("MEG") entered into an agreement pursuant to which Marvel granted specified
rights to MCA for use of Marvel's Characters in MCA theme parks (the
"Agreement").

         B. As of September, 1995, MEG assigned all of its right, title and
interest in and to Marvel's characters, including its interest in the Agreement,
to Marvel.

         C. The parties have agreed to amend the Agreement as set forth herein.

         Now therefore, for good and valuable consideration paid by each to the
other, the parties hereto agree as follows:

         1. MCA hereby guarantees to Marvel the payment of the annual license
fee described in Section V(A) for a period of ten (10) years beginning January
1, 1999. Such sums shall be paid to Marvel as and when due under Section V(A) of
the Agreement.

         2. MCA hereby guarantees to Marvel that the $*** annual merchandise
minimum royalty described in Section V(C) of the Agreement will be paid for a
minimum of 10 years beginning at the earlier of (i) the date that the second
gate is open or (ii) July 1, 2000. On or before December 31, 1995 MCA shall pay
to Marvel the sum of $*** in payment of the guaranteed payments described in
this paragraph 2. No CPI increase shall be applicable to the base royalty
payment of $*** per year during the first 10 years of such payments, but
starting with the 11th year the base of $*** shall be adjusted using the CPI for
December 31, 1998 as the base, so that the minimum for the 11th year shall be
$*** multiplied by a fraction of the numerator of which is the CPI in effect for
the immediately preceding year and the denominator shall be the 1998 CPI. Each
year during the first 10 years when payments are due under Section V(C) of the
Agreement, MCA will pay excess royalties, if any, due to Marvel based on a $***
base.

         3. All defined terms used herein shall have the meaning ascribed to
them in the Agreement unless otherwise noted herein. Except as set forth above,
the Agreement shall remain in full force and effect unmodified except by the
terms of this First Amendment.

         4. This document may be signed in counterparts.

In witness whereof the parties have executed this First Amendment to Agreement,
as of the day and year first above written.

MCA, INC.

BY: /s/ Ronald Bension
    -----------------------------
MARVEL CHARACTERS, INC.

BY: /s/
    -----------------------------

Marvel Entertainment Group, Inc. hereby joins in this First Amendment to
Agreement for the purpose of acknowledging the assignment of its rights under
the Agreement to Marvel Characters, Inc.; and Marvel Entertainment Group, Inc.
hereby authorizes and directs MCA, Inc. to make all payments due hereunder, as
well as future payments due under the Agreement, to Marvel Characters, Inc.

MARVEL ENTERTAINMENT GROUP, INC.

BY: /s/ Paul E. Shapiro
    -----------------------------
    Executive Vice-President

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