Document:

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                                                                    Exhibit 10.7

                                LICENSE AGREEMENT

      This License Agreement (the "License Agreement") is made effective this
27th day of October, 2004 (the "Effective Date"), by and between DreamWorks
Animation LLC, a Delaware limited liability company with offices at 1000 Flower
Street, Glendale, California 91201 ("DWA"), on the one hand, and DreamWorks
L.L.C., a Delaware limited liability company with offices at 1000 Flower Street,
Glendale, California 91201 ("DreamWorks Studios"), on the other hand, and is
made with reference to the following facts.

                                    RECITALS

      A. DreamWorks Studios has been engaged in the business of producing and
distributing various entertainment properties, including live action and
animated motion pictures, television programs, music, and other
entertainment-related goods and services, under and in connection with the mark
and name "DREAMWORKS" and various marks and names containing "DREAMWORKS"
(collectively the "DreamWorks Marks").

      B. By virtue of that certain Separation Agreement by and among DreamWorks
Studios, DWA and DreamWorks Animation SKG, Inc. ("DWA SKG"). Dated as of October
27, 2004 (the "Separation Agreement"), DWA is the successor to all of the assets
of DreamWorks Studios' animated motion picture business, and by virtue of that
certain "Assignment of Trademarks and Service Marks" between DreamWorks Studios
and DWA dated as of October 27, 2004 (the "Assignment"), DWA is the successor to
all of DreamWorks Studios' right, title, and interest in and to the DreamWorks
Marks worldwide, together with all registrations of and applications to register
the DreamWorks Marks, and the goodwill of the business pertaining thereto.
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      C. Pursuant to the Separation Agreement, DreamWorks Studios desires to use
the DreamWorks Marks in connection with the production and distribution of
certain non-animated motion pictures and related goods and services, and,
pursuant to a separate license in that certain Distribution Agreement between
DWA SKG and DreamWorks Studios dated as of October __ , 2004 (the "Distribution
Agreement"), the distribution of certain motion pictures on behalf of DWA, and
in certain other manners described more fully herein. DWA is willing to grant to
DreamWorks Studios a license to use the DreamWorks Marks on the terms and
conditions set forth herein, and DreamWorks Studios is willing to accept such a
license.

      NOW, THEREFORE, in consideration of the foregoing recitals and the mutual
covenants and promises set forth below, and for other good and valuable
consideration, DWA and DreamWorks Studios hereby agree as follows:

                              TERMS AND CONDITIONS

      1. DEFINITIONS.

      The following terms shall have the following meanings in this License
Agreement:

      (a) "Licensed Marks" means the DreamWorks Marks listed and depicted in
Schedule A attached hereto, and incorporated by reference herein as if set forth
in full, as Schedule A may be amended from time to time in the manner set forth
in paragraphs 2(c) and 8(d) below.

      (b) "Licensed Goods" means those goods set forth on Schedule B attached
hereto, and incorporated by reference herein as if set forth in full, as
Schedule B may be amended from time to time in the manner set forth in paragraph
2(c) and 8(d below.

      (c) "Licensed Services" means those services set forth in Schedule C
attached hereto, and incorporated by reference therein as if set forth in full,
as Schedule C may be amended from time to time in the manner set forth in
paragraph 2(c) and 8(d) below.

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      (d) "Territories" means those jurisdictions set forth on Schedule A
attached hereto, and incorporated by reference herein as if set forth in full,
in which DWA owns registrations of, or applications to register, one or more of
the Licensed Marks as of the Effective Date of this License Agreement, as
Schedule A may be amended from time to time in the manner set forth in
paragraphs 2(c) and 8(d) below.

      (e) "Term" means the initial period commencing on the Effective Date of
this License Agreement and continuing for a period of 20 years, and all
subsequent renewals of such periods as provided in paragraph 3 below, unless
sooner terminated as provided in paragraph 3 below.

      (f) "Live Action Motion Picture" shall have the meaning given to that term
in the Separation Agreement.

      (g) "Hybrid Motion Picture" shall have the meaning given to that term in
the Distribution Agreement with the further limitation in this License Agreement
to Hybrid Motion Pictures produced or acquired by or for DreamWorks Studios or
any affiliate of DreamWorks Studios.

      (h) "Live Stage Performances" shall mean the exercise of Legitimate Stage
Rights, which are defined in the Distribution Agreement.

      (i) "DTV Product" shall have the meaning given to the term
"Direct-to-Video (DTV) Productions" in the Distribution Agreement.

      2. GRANT OF RIGHTS; AMENDMENT; ETC.

      (a) DWA hereby grants to DreamWorks Studios, and DreamWorks Studios hereby
accepts, a royalty-free right and license to use the Licensed Marks, on the
terms and conditions set forth herein, during the Term: (i) on and in connection
with Licensed Goods and Licensed

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Services; provided, however, that in connection with use of the Licensed Marks
on or in connection with the Licensed Goods identified in Schedule B as
pre-recorded compact discs and audio tapes containing sound tracks from Live
Action Motion Pictures and Hybrid Motion Pictures, and pre-recorded audio tapes
containing music from Live Action Motion Pictures and Hybrid Motion Pictures,
DreamWorks Studios shall only use the Licensed Marks in connection with the
words "Pictures," "Films," or other words that are suggestive of motion pictures
or audiovisual works and provided further that DreamWorks Studios shall never
use the Licensed Marks containing "Animation" and "PDI" as trademarks or trade
names except in connection with the distribution of motion pictures pursuant to
the separate license in the Distribution Agreement; (ii) as part of DreamWorks
Studios' corporate names and trade names, including, without limitation, use of
the trade names on stationery, business documents, and business cards; (iii) in
one or more domain names, including the domain name dreamworks.com, used in
connection with Licensed Goods and Licensed Services; and (iv) in the other
manners set forth herein. The right and license granted to DreamWorks Studios
hereunder shall be exclusive as to the use of the Licensed Marks on or in
connection with (i) the Licensed Goods featuring scenes and/or characters from
Live Action Motion Pictures, live action television programs, and live action
DTV Products and (ii) the Licensed Services relating to Live Action Motion
Pictures, live action television programs, and live action DTV Products. The
right and license granted to DreamWorks Studios hereunder shall be non-exclusive
as to all other Licensed Goods and Licensed Services.

      (b) DreamWorks Studios shall have the right during the Term to sub-license
to third parties ("Sub-Licensees"), through written sub-licenses
("Sub-Licenses"), the Licensed Marks on and in connection with all Licensed
Goods and Licensed Services. DreamWorks Studios agrees

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that each Sub-Licensee shall be a reputable company capable of performing the
Licensed Services and/or of producing the Licensed Goods bearing the Licensed
Marks under its Sub-License of the same general level of quality as under
license agreements between DreamWorks Studios and third parties prior to the
Effective Date of this Agreement. If a Sub-Licensee will be manufacturing goods
or rendering services that fall within the natural zone of expansion of the
Licensed Goods and Licensed Services, then DreamWorks Studios will provide DWA
with the name and address of the Sub-Licensee and the subject matter of the
Sub-License. DreamWorks Studios agrees that it shall incorporate provisions into
each Sub-License providing that in the event of the termination of this License
Agreement by DWA in the manner set forth in paragraph 3 below, each Sub-License
will immediately terminate.

      (c) This License Agreement shall be automatically amended to add countries
(with respect to the Licensed Goods and the Licensed Services only) other than
the Territories, in the event that DWA obtains additional rights in the Licensed
Marks through new registrations in countries other than the Territories, or
through other manners provided under the law of a particular Territory.
DreamWorks Studios may request in writing DWA's agreement to amend the Licensed
Goods in Schedule B to goods other than those in the natural zone of expansion,
and such agreement will not be unreasonably withheld. Upon any amendment,
DreamWorks Studios may cause all pertinent Sub-Licenses to be amended to reflect
any additions to Schedules A and/or B.

      (d) Subject to the terms and conditions hereof and in consideration for
the Assignment, DWA will grant and assign to DreamWorks Studios a security
interest to be executed concurrently herewith in and to the Licensed Marks and
registrations thereof, but only to the extent necessary to secure DWA's
obligations under this License Agreement of permitting

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DreamWorks Studios to use such Licensed Marks in accordance with the terms
hereof. The security interest granted by DWA hereunder will be subject to the
approval of DWA SKG's lead revolver lender. DWA will execute and file or record,
as appropriate, any other security agreements with the relevant trademark
registration authorities and UCC financing statements, and such other documents
as are reasonably necessary to evidence, perfect, and preserve the security
interest granted to DreamWorks Studios hereunder, and DreamWorks Studios will
have all rights and remedies of a secured party pursuant to applicable law. The
granting of the security interest hereunder by DWA does not violate the rights
of any third party under any agreement with DWA, judgment, statute or otherwise,
and does not require the prior consent of any third party, except DWA's lead
revolver lender. DWA will endeavor in good faith to obtain the requisite
consent. The grant of the security interest by DWA hereunder with respect to any
Licensed Mark shall be effective upon the commencement of the Term.

      3. EXTENSION OF TERM; TERMINATION, ETC.

      (a) The initial Term of this License Agreement shall be automatically
extended for successive 20-year Terms following the completion of the initial
20-year Term unless DWA and DreamWorks Studios agree in writing, within six
months prior to the expiration of any such 20-year Term, to terminate this
License Agreement in its entirety, or unless DWA terminates this License
Agreement in its entirety in the manner set forth in sub-paragraph 3(b)
below.

      (b) This License Agreement may be terminated in its entirety by DWA (i)
upon a material breach by DreamWorks Studios that remains uncured for a period
of 90 days after DWA provides written notice to DreamWorks Studios of such
claimed material breach in the manner set forth in paragraph 11(a) below, and
the material breach is either admitted in a writing signed by the admitting
party or determined in an arbitration proceeding in the manner set forth in
paragraph 11(b) below, or (ii) in the event that both Steven Spielberg and David
Geffen cease

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to be employees or otherwise render services to DreamWorks Studios as employees
or consultants and neither Steven Spielberg nor David Geffen has the authority
to veto the production or acquisition of any motion picture, and DWA provides
written notice of termination to DreamWorks Studios within sixty (60) days of
the occurrence of such event. In the event of termination of this License
Agreement in its entirety by DWA under this sub-paragraph DreamWorks Studios
agrees that it will use commercially reasonable efforts to cause all
Sub-Licenses to terminate immediately pursuant to their terms, that it will
cease all further use of the Licensed Marks except as expressly permitted
hereunder, and that it will take such steps as are necessary to change its
corporate names and trade names to ones that do not include any Licensed Mark,
to cease use of any domain names containing any Licensed Mark, and to delete all
listings of its corporate names and trade names in directories, databases,
indices, and other public and private listings, all as soon after termination as
commercially possible. In the event that the License terminates because
DreamWorks Studios sells, transfers, or assigns all or substantially all of its
assets to a third party, DWA agrees that DreamWorks Studios'
successor(s)-in-interest may use the Licensed Marks in connection with motion
pictures that were produced, acquired and/or distributed by DreamWorks Studios
or to which DreamWorks Studios has an agreement to acquire or co-produce prior
to such sale, transfer, or assignment ("Completed Films"), in the manners set
forth in sub-paragraph 3(c)(i)-(v) below.

      (c) Nothing contained herein shall prohibit DreamWorks Studios, following
termination of this License Agreement for any reason under this paragraph 3 and
subject to DreamWorks Studios' obligations following termination under
sub-paragraph 3(b) above, from doing any of the following: (i) distributing or
exhibiting any Completed Film; (ii) releasing or re-releasing any Completed
Film; (iii) editing any Completed Film for television exhibition, DVD

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exhibition, or exhibition in any other media, now know or hereafter derived, or
for purposes of territorial distribution, and dubbing or sub-titling any
Completed Film into a different language, or for reasons of public taste, or for
legal reasons, including but not limited to in the event a claim or the threat
of a claim that distribution without such change might infringe the rights of
any third party, and then releasing, distributing, and exhibiting such Completed
Film; (iv) advertising and promoting any Completed Film by using the Licensed
Marks to reference the fact that such Completed Film was produced and/or
distributed by DreamWorks Studios; and (v) continuing to distribute, advertise
and promote any merchandising, soundtrack or publication, or exploit any other
ancillary rights based upon any such Completed Film and distributing,
advertising and promoting any merchandising, soundtrack or publication, or any
other ancillary rights based upon any such Completed Film pursuant to license
agreements entered into prior to such termination and approved as provided
hereunder, or (vi) using and authorizing the use of phrases such as "Based on
the Film ________ Produced [or presented] by DreamWorks Studios" for attribution
purposes in connection with distribution, advertising and promotion of any
merchandising, soundtrack or publication, or exploit any other ancillary rights
based upon any such Completed Film.

      4. ATTRIBUTION NOTICE.

      DreamWorks Studios agrees that in connection with any use of the Licensed
Marks under this License Agreement, it will use, and will cause all
Sub-Licensees to use, such notices regarding DWA's ownership of the Licensed
Marks, and their use under this License Agreement or any Sub-License, as DWA may
reasonably require. DreamWorks Studios agrees that it will include in any
Sub-License a requirement that all Sub-Licensees will use such notices as may be
reasonably required by DWA.

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      5. FURTHER ASSURANCES, ETC.

      (a) DWA shall take such steps as are necessary under the laws of the
various jurisdictions in the Territories, as the Territories may be amended from
time to time in the manner set forth in paragraphs 2(c) and 8(d), to perfect,
confirm, acknowledge, or record this License Agreement, at DWA's sole expense,
for the benefit of DreamWorks Studios and to enable DWA to enforce the Licensed
Marks to the maximum extent possible under paragraph 8 below.

      (b) DreamWorks Studios agrees to execute such documents and to take such
steps, at DreamWorks Studios' sole expense, including making available to DWA
and its counsel documents, information, and witnesses, as may be required by DWA
to perfect, confirm, acknowledge, or record this License Agreement in any
Territory, to enforce the Licensed Marks as provided in paragraph 8 below, or
otherwise to effectuate the purposes of this License Agreement.

      6. ACKNOWLEDGEMENT OF DWA'S OWNERSHIP OF LICENSED MARKS, ETC.

      (a) DreamWorks Studios acknowledges and agrees that DWA owns the Licensed
Marks, that DreamWorks Studios will acquire no ownership interest in or to the
Licensed Marks under this License Agreement, and that DreamWorks Studios'
interest in the Licensed Marks is limited solely to the license interest
conferred by the license grant under this License Agreement. DreamWorks Studios
further acknowledges and agrees that all uses of the Licensed Marks by it under
this License Agreement and by all Sub-Licensees under all Sub-Licenses inure and
shall inure to the benefit of DWA and that the goodwill in the Licensed Marks is
owned by DWA.

      (b) DreamWorks Studios agrees that it will not file, and that it will
cause all Sub-Licensees not to file, any applications to register the Licensed
Marks, or any other mark that

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consists of, colorably imitates, or is confusingly similar to any of the
Licensed Marks, in the Territories or elsewhere in the world.

      (c) DreamWorks Studios agrees that, except as specifically permitted
hereunder, it will make no use, and will cause all Sub-Licensees to make no use,
of any other mark that consists of, colorably imitates, or is confusingly
similar to, any of the Licensed Marks.

      (d) DreamWorks Studios agrees that during the Term of this License
Agreement, and thereafter, it will not challenge, or assist any third party,
including any Sub-Licensee, to challenge, the validity of the Licensed Marks.
DreamWorks Studios agrees that it will include in each Sub-License a provision
that each Sub-Licensee will not challenge, or assist any third party to
challenge, the validity of the Licensed Marks.

      7. QUALITY CONTROL.

      (a) DreamWorks Studios agrees that it will use, and will cause all
Sub-Licensees to use, the Licensed Marks in connection with Licensed Goods and
Licensed Services of a quality at least equal to that of Licensed Goods and
Licensed Services provided by or under license from DreamWorks Studios prior to
the Separation Agreement.

      (b) DreamWorks Studios agrees to use the Licensed Marks under this License
Agreement substantially in the manner set forth in Schedule D attached hereto
and incorporated by reference herein as if set forth in full, as Schedule D may
be amended by DWA from time to time through written notice to DreamWorks Studios
in the manner set forth in paragraph 11(a) below. In the event that DreamWorks
Studios wishes to use the Licensed Marks in a manner that deviates materially
from the manner set forth in Schedule D attached hereto, it shall seek approval
from DWA in writing for such use, which approval shall not be unreasonably
withheld, conditioned or delayed by DWA.

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      (c) DWA shall have the right to approve the quality of all Licensed Goods
manufactured and sold by DreamWorks Studios or under all Sub-Licenses.
DreamWorks Studios agrees to conform its uses, and to use reasonable commercial
efforts to cause all Sub-Licensees to conform their uses, of the Licensed Marks
on Licensed Goods to the manner set forth in Schedule D attached hereto.
DreamWorks Studios agrees to submit to DWA for review and approval, as may be
requested by DWA from time to time, a representative sample of Licensed Goods
manufactured by DreamWorks Studios or under all Sub-Licenses, which approval
shall not be unreasonably withheld by DWA. DWA's failure to disapprove a sample
in writing within 10 business days of receipt shall be deemed approval. DWA
agrees to specify in writing the reasons for its disapproval of any such sample.

      (d) DreamWorks Studios agrees that upon approval of any samples pursuant
to this paragraph 7(c), it will not materially deviate from, and will cause all
Sub-Licensees not to materially deviate from, the quality of Licensed Goods
approved by DWA.

      8. ENFORCEMENT; EXPANSION OF RIGHTS; ETC.

      (a) DreamWorks Studios agrees to advise DWA promptly and in writing of any
instances of possible infringement or dilution of, or unfair competition or
cybersquatting regarding, the Licensed Marks in the Territories or elsewhere in
the world (collectively "Infringements") that come to the attention of
DreamWorks Studios. Upon receipt of such notification, DWA may take such action
as it deems appropriate, after consultation in good faith with DreamWorks
Studios, to protect the Licensed Marks, including criminal, civil, or
administrative litigation, through counsel reasonably acceptable to DreamWorks
Studios. Where litigation by DWA against an Infringement involves only claims
regarding the Licensed Marks, the attorneys' fees and other expenses of such
litigation (collectively "Expenses"), and any sums

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obtained by way of judgment or settlement from such litigation (a "Recovery"),
shall be allocated as follows: (i) if the Infringement involves Licensed Goods
and/or Licensed Services as to which DreamWorks Studios has an exclusive license
of the Licensed Marks and DreamWorks Studios agrees that such action should be
taken, DreamWorks Studios shall reimburse DWA for all documented Expenses and
shall keep any Recovery; and (ii) if the Infringement involves Licensed Goods
and/or Licensed Services as to which DreamWorks Studios has a non-exclusive
license of the Licensed Marks, or if DreamWorks Studios does not does not agree
to take such action with respect to the exclusively licensed Licensed Goods
and/or Licensed Services, DWA shall bear all Expenses and shall keep any
Recovery. Where litigation by DWA against an Infringement also includes claims
by DWA (or by both DWA and DreamWorks Studios through separate counsel) based
upon intellectual property rights or other rights in addition to the Licensed
Marks, DWA, or DWA and DreamWorks Studios both, as the case may be, shall bear
the Expenses and shall keep any Recovery that pertain to the claims asserted by
that party, unless DWA and DreamWorks Studios elect to assert their respective
claims through the same counsel, in which case they shall agree in good faith
regarding the allocation of Expenses and Recovery.

      (b) DreamWorks Studios agrees to be and, as necessary, to remain, the sole
party or a joint party with DWA, in any litigation involving a claim based upon
the Licensed Marks in the event that the substantive law of a particular
Territory requires DreamWorks Studios to be a party because of the status of the
recordation of the Assignment or any related documents in that Territory as of
the time of the commencement of such litigation does not permit DWA to be the
sole party or a party, or for any other reason. The allocation of Expenses and
Recovery in litigation in which DreamWorks Studios must be a joint party with
DWA, or a sole party, shall also be governed by sub-paragraphs 8(a)(i) and (ii)
above.

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      (c) DWA and DreamWorks Studios agree that in connection with any
litigation by DWA to which sub-paragraph 8(a)(i) above applies, DWA shall
prosecute and compromise the litigation only after good faith consultation with
DreamWorks Studios, and that in any litigation by DWA to which sub-paragraph
8(a)(ii) above applies, DWA may prosecute and compromise the litigation in its
sole discretion.

      (d) DreamWorks Studios may request DWA to file applications to register
the Licensed Marks for the Licensed Goods and Licensed Services in countries
other than the Territories, to register the Licensed Marks in the Territories
for goods and services in addition to the Licensed Goods and Licensed Services,
and to register domain names containing the Licensed Marks. In response to any
such request, DWA shall decide whether to file such applications for trademark
and service mark registration, and to register such domain names, in the
exercise of its reasonable business judgment. The attorneys' fees and expenses
in connection with the filing and prosecution of such applications, or the
registration of such domain names, shall be shared equally by DWA and DreamWorks
Studios. DWA agrees to prosecute any such applications for trademark or service
mark registration to registration or final refusal, or upon agreement of the
parties through appeal, and to maintain all existing and future registrations of
the Licensed Marks in the Territories, and domain name registrations, unless DWA
and DreamWorks Studios agree in writing to abandon any such applications or not
to renew any such registrations.

      9. REPRESENTATIONS AND WARRANTIES.

      (a) DWA represents and warrants to DreamWorks Studios that: (i) DWA has
the right, power, and authority to enter into and fully perform its obligations
under this License

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Agreement; and (ii) this License Agreement is a binding agreement as to DWA that
is enforceable against DWA according to its terms.

      (b) DreamWorks Studios represents and warrants to DWA that: (i) DreamWorks
Studios will use commercially reasonable efforts throughout the Term of this
License Agreement to maintain sufficient control over all Sub-Licensees to
fulfill DreamWorks Studios' obligations to cause all Sub-Licensees to take or
refrain from taking the actions specified hereunder; (ii) DreamWorks Studios'
use of the Licensed Marks, and the conduct of its business under the trade names
and corporate names "DreamWorks L.L.C." and other DreamWorks formatives shall at
all relevant times be in accordance with all applicable laws, (iii) DreamWorks
Studios has the right, power, and authority to enter into and fully perform its
obligations under this License Agreement; and (ii) this License Agreement is a
binding agreement as to DreamWorks Studios that is enforceable against
DreamWorks Studios according to its terms.

      10. INDEMNIFICATION.

      (a) DWA agrees to indemnify, defend, and hold DreamWorks Studios and any
Sub-Licensees harmless from and against any claim, demand, cause of action, or
suit for trademark, service mark, or trade name infringement, dilution,
cybersquatting, and unfair competition that is asserted against DreamWorks
Studios or any Sub-Licensee by a third party during the Term, or thereafter
solely on the basis of DreamWorks Studios' or any Sub-Licensee's use of the
Licensed Marks under this License Agreement (each a "Trademark Claim").
DreamWorks Studios agrees that upon receipt of notice of any Trademark Claim, it
will promptly tender such Trademark Claim in writing to DWA in the manner set
forth in paragraph 11(a) below, and DWA agrees that it will defend DreamWorks
Studios and any Sub-Licensee against such Trademark Claim at DWA's expense and
through counsel of DWA's choosing. DWA may defend, or compromise

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any Trademark Claim with the approval of DreamWorks Studios, which approval
shall not be unreasonably withheld, and agrees to pay any judgment or settlement
on any Trademark Claim. DreamWorks Studios agrees that it will cooperate fully
with, and will cause any Sub-Licensee to cooperate fully with, DWA and its
counsel in DWA's defense of any Trademark Claim. DWA agrees to carry such
insurance as may be reasonable to insure the fulfillment of DWA's indemnity
obligations with respect to Trademark Claims.

      (b) DreamWorks Studios agrees to indemnify, defend, and hold DWA harmless,
and to obligate each Sub-Licensee to indemnify, defend, and hold DWA harmless,
from and against any claim, demand, cause of action, or suit, that is asserted
against DWA by a third party during the Term or thereafter, arising out of
DreamWorks Studios' or any Sub-Licensee's manufacture, advertisement, promotion,
marketing, offering for sale, sale, or distribution of Licensed Goods during the
Term, and DreamWorks Studios' or any Sub-Licensee's advertisement, promotion,
marketing, offering for sale, sale, or rendition of Licensed Services during the
Term, where such claim, demand, cause of action, or suit is not a Trademark
Claim (each a "Non-Trademark Claim"). Non-Trademark Claims include, without
limitation, all claims, demands, causes of action, or suits for copyright
infringement, libel, violation or infringement of the right of publicity,
violation or invasion of the right of privacy, disparagement, theft of ideas,
patent infringement, breach of contract, negligence, strict liability, and
product liability arising out of DreamWorks Studios' or any Sub-Licensee's
manufacture, advertisement, promotion, marketing, offering for sale, sale, or
distribution of Licensed Goods during the Term, and DreamWorks Studios' or any
Sub-Licensee's advertisement, promotion, marketing, offering for sale, sale, or
rendition of Licensed Services during the Term (except where such claims,
demands, causes of action, or suits are based solely upon DreamWorks Studios' or
any Sub-Licensee's use of the

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Licensed Marks as permitted under this License Agreement). DWA agrees that upon
receipt of any Non-Trademark Claim, it will promptly tender such claim in
writing to DreamWorks Studios in the manner set forth in paragraph 11(a) below,
and DreamWorks Studios agrees that it will defend DWA against such Non-Trademark
Claim at DreamWorks Studios' expense and through counsel of DreamWorks Studios'
choosing. DreamWorks Studios may defend or compromise any Non-Trademark Claim in
its sole discretion, and agrees to pay any judgment or settlement on any
Non-Trademark Claim. DWA agrees that it will cooperate fully with DreamWorks
Studios and its counsel in DreamWorks Studios' defense of any Non-Trademark
Claim. DreamWorks Studios agrees to carry such insurance, and to cause all
Sub-Licensees to carry such insurance, as may be reasonable to insure the
fulfillment of DreamWorks Studios' indemnity obligations with respect to
Non-Trademark Claims. Nothing in this subparagraph 10(b) affects either party's
rights or obligations under the Distribution Agreement, that certain Services
Agreement dated as of October 1, 2004, and that certain Merchandise and
Promotion Ancillary Services Agreement dated as of October 1, 2004.

      11. MISCELLANEOUS.

      (a) Any notices required or which may be given hereunder shall be in
writing and shall be delivered personally, or sent by certified mail, return
receipt requested, by facsimile (with confirmation of receipt), or by e-mail
(with confirmation of receipt), to the addresses set forth above, or such other
addresses as may be designated by the parties from time to time in writing under
this License Agreement. All notices sent to DWA and DreamWorks Studios shall be
sent to the attention of the General Counsel. All notices are effective upon
confirmed receipt.

      (b) The parties shall attempt to resolve all claims, disputes, or
disagreements arising out of the interpretation, performance, or breach of this
License Agreement, through good faith

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negotiation between DWA and DreamWorks Studios. If such good faith negotiations
do not resolve the dispute, the dispute shall be resolved through arbitration in
the manner set forth in Section 24 of the Distribution Agreement, with each
party having the rights and obligations set forth therein; provided, however,
that in any arbitration hereunder, the neutral arbitrator selected by the
parties, or by the American Arbitration Association, as the case may be, shall
have a minimum of 10 years experience in the trademark licensing business.

      (c) DreamWorks Studios may assign this License Agreement or its rights
hereunder only with the written consent of DWA, which consent shall not be
unreasonably withheld; provided, however, that DreamWorks Studios shall have the
right to assign this License Agreement only in the event either Steven Spielberg
or David Geffen is engaged by DreamWorks Studios as an employee or consultant,
or that Steven Spielberg or David Geffen otherwise renders services to
DreamWorks Studios. In the event of any assignment hereunder, the assignee must
assume in writing all of DreamWorks Studios' obligations under this License
Agreement.

      (d) This License Agreement shall be governed by, and construed in
accordance with, the laws of the State of California.

      (e) This License Agreement, together with the Schedules thereto,
constitutes the entire agreement between DWA and DreamWorks Studios with respect
to its subject matter, and supersedes any prior agreement, understanding,
representation, promise, or negotiations between the parties, whether oral or
written, express or implied.

      WHEREFORE, the parties have executed this License Agreement as of the
Effective Date by the signature below of their duly-authorized representatives.

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Dated: ______________, 2004               DREAMWORKS ANIMATION LLC

                                       By:______________________________________

Dated: ______________, 2004               DREAMWORKS L.L.C.

                                       By:______________________________________

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                                   SCHEDULE B
                                (LICENSED GOODS)

         All of the following merchandising and promotional items distributed
and/or sold in connection with the Licensed Services, and other items within the
natural zone of expansion:

         Metal keys chains and statuettes featuring scenes and/or characters
from Live Action Motion Pictures and Hybrid Motion Pictures;

         Knives, spoons, and forks, all featuring scenes and/or characters from
Live Action Motion Pictures and Hybrid Motion Pictures;

         Pre-recorded video tapes and DVDs containing Live Action Motion
Pictures and Hybrid Motion Pictures, pre-recorded compact discs and audio tapes
containing sound tracks from live Action Motion Pictures and Hybrid Motion
Pictures, pre-recorded audio tapes containing music from Live Action Motion
Pictures and Hybrid Motion Pictures, interactive video games, computer game
cartridges, computer game cassettes, computer game tapes, video game cartridges,
video game cassettes, and multimedia software for playing games, electronic
equipment, glasses and sun glasses all featuring scenes and/or characters from
Live Action Motion Pictures and Hybrid Motion Pictures;

         Bicycles, scooters, and automobiles featuring scenes and/or characters
from Live Action Motion Pictures and Hybrid Motion Pictures;

         Clocks and watches, and jewelry, all featuring scenes and/or characters
from Live Action Motion Pictures and Hybrid Motion Pictures;

         Books, comic books, coloring books, loose leaf binders, spiral bound
notebooks, note pads, writing pads, calendars, scrapbook albums, photograph
albums, sticker albums, stickers, pencils, pens, playing cards, postcards,
trading cards, greeting cards, painting sets, posters, cells, and
two-dimensional prints, credit cards; binders; vinyl character stickers;
character stamps;

                                       19
<PAGE>
address books, coin albums; scrap book albums; appointment books; blank bank
checks; book covers; book marks, stationery boxes, checkbook covers; decals,
desk sets; diaries; paper napkins and table cloths; gift wrapping paper; paper
party decorations; scrap books; stationery portfolios; and bumper stickers all
featuring scenes and/or characters from Live Action Motion Pictures and Hybrid
Motion Pictures;

         Tote bags and umbrellas, handbags, wallets, all-purpose athletic bags;
attache cases; back packs; beach bags; umbrellas; beach umbrellas; book bags;
business card cases; calling card cases; credit card cases; document cases; key
cases; overnight cases; passport cases; purses; duffle bags; fanny packs;
handbags; knapsacks; luggage; school bags; school book bags all featuring scenes
and/or characters from Live Action Motion Pictures and Hybrid Motion Pictures;

         Novelty items, ornamental novelty buttons and non-ornamental novelty
pins; toy boxes and toy chests; and sleeping bags featuring scenes and/or
characters from Live Action Motion Pictures and Hybrid Motion Pictures;

         Plastic squeeze bottles, beverage glassware, mugs, plates, figures, and
figurines, all featuring scenes and/or characters from Live Action Motion
Pictures and Hybrid Motion Pictures;

         Sacks and bags made of canvas, all featuring scenes and/or characters
from Live Action Motion Pictures and Hybrid Motion Pictures;

         Blankets, comforters, bed linens, bed sheets, bedspreads, curtains,
towels, bed pillow covers, napkins, table cloths, potholders; oven mitts;
kitchen towels and window coverings all featuring scenes and/or characters from
Live Action Motion Pictures and Hybrid Motion Pictures;

                                       20
<PAGE>
         Clothing, footwear and headwear, all featuring scenes and/or
characters from Live Action Motion Pictures and Hybrid Motion Pictures;

         Sporting goods and toys, including action figures and accessories
therefor, bathtub toys, kites, board games, hand-held units for playing
electronic games, dies cast miniature toy vehicles, dolls, doll accessories,
doll clothing, bean bag dolls, bendable play figures, flying disks, inflatable
vinyl play figures, jigsaw puzzles, marbles, plush toys, puppets, ride-on toys,
skateboards, snowboards, balloons, roller skates, toy banks, water squirting
toys, stuffed toys and toy animals, toy vehicles, pinball machines, and model
craft kits of toy figures, rubber action balls, action-type target games,
electronic and non-electronic dart games, costume masks, face masks, and wind-up
toys; and Christmas tree ornaments, all featuring scenes and/or characters from
Live Action Motion Pictures and Hybrid Motion Pictures.

                                       21
<PAGE>
                                   SCHEDULE C
                               (LICENSED SERVICES)

         The production, distribution and other exploitation of Live Action
Motion Pictures, Hybrid Motion Pictures, Live Stage Performances, DTV Products,
live action and hybrid television programs and other live action and hybrid
audiovisual works, in all media now known or hereafter devised (including,
without limitation, film, audio tapes, video tapes, CD-ROMs, DVDs and digital
[e.g., Internet] transmission), and the exercise of all rights therein or
related thereto, including, but not limited to allied ancillary and subsidiary
rights, and other services within the natural zone of expansion, with the
express exception of any services prohibited by the Separation Agreement.

                                       22<PAGE>

                         DREAMWORKS ANIMATION SKG, INC.
                               1000 FLOWER STREET
                               GLENDALE, CA 91201

                              As of October 8, 2004

Mr. Roger A. Enrico
100 Crescent Court
Suite 700
Dallas, TX 75201

Dear Roger:

      Upon the date ("Effective Date") of the closing ("Closing") of the initial
public offering ("IPO") of DreamWorks Animation SKG, Inc., a Delaware
corporation ("Studio"), Studio agrees to employ you and you agree to accept such
employment upon the terms and conditions set forth below. In the event the
Closing fails to occur for any reason by June 28, 2005, this agreement
("Agreement") shall be null and void.

      1. TERM. The term of your employment hereunder shall commence on the
Effective Date and shall continue up to and including the fifth anniversary of
the Effective Date. This period shall hereinafter be referred to as the
"Employment Term".

      2. DUTIES/RESPONSIBILITIES.

      a. General. Your title shall be "Chairman of the Board" of Studio. You
shall have such duties and responsibilities as are consistent with the
traditional positions of Chairman of the Board of major corporations. In
addition, you will be involved in investor relations, corporate strategic
planning, marketing and promotional strategy, succession planning and employee
development and will oversee matters related to corporate governance and
compliance with the Sarbanes-Oxley Act of 2002. You shall also consult with the
senior executive officers of Studio with respect to the operations, overall
direction and projects of Studio.

      b. Services. Your professional services shall be non-exclusive to Studio.
During the Employment Term you shall devote approximately an average of up to
two (2) working days of services per week of your business time and efforts to
the affairs of Studio.

      3. NON-COMPETE. To the extent allowed under California law, you shall not
perform services for any person, firm or corporation and will not engage in any
activity which would be directly competitive with Studio during the Employment
Term. Nothing contained herein shall prevent you from owning directly or
indirectly up to 5% of the equity securities of a publicly held company or a
limited partnership, or from owning directly or indirectly up to 5% of a passive
equity interest in a private company, even if such company or partnership does
compete with Studio's business.

<PAGE>

      4. COMPENSATION.

            a. Base Salary. For all services rendered under this Agreement,
Studio will pay you a base salary at an annual rate of One Dollar ($1.00) and,
subject to the approvals and conditions described below, the equity-based
compensation described in Paragraph 4.b below.

            b. Equity-Based Compensation.

            (i) It is Studio's present expectation, subject to the approval of
the compensation committee of the Board of Directors of Studio (the
"Compensation Committee"), that, upon the pricing date of the IPO, you will
receive, pursuant to the equity compensation plan to be adopted by Studio (the
"Plan"), stock options with respect to Studio's Class A common stock having a
grant-date value of $1,000,000 and restricted shares of Studio's Class A common
stock ("Restricted Stock") having a grant-date value of $3,000,000 (or, in lieu
of Options and Restricted Stock, such other form of equity-based compensation as
the Compensation Committee may determine) (the "Initial Grants"). In the event
that the Closing fails to occur for any reason by June 28, 2005, then the
Initial Grants will be automatically canceled and you will be entitled to no
payments or benefits with respect thereto.

            (ii) In addition, you will be eligible, provided you remain employed
hereunder (subject to Paragraphs 9, 10, 11, 12 and 13), to receive, subject to
annual approval by the Compensation Committee, an annual equity incentive award
of Options and Restricted Stock (or such other form of equity-based compensation
as the Compensation Committee may determine) commencing on the first anniversary
of the Effective Date and continuing on each succeeding anniversary date until
you have been granted a total of four (4) additional equity incentive awards (it
being understood that the actual granting of the award may lag behind such
anniversary date by up to five (5) months). It is Studio's present expectation
that such annual awards will have an annual aggregate grant-date value targeted
at $2,000,000. In the event that such awards consist of Options and Restricted
Stock, they shall be divided, as determined by the Compensation Committee,
between Options and Restricted Stock. In its sole determination, the
Compensation Committee may elect to substitute a cash payment of $2,000,000
("Cash Payment") in lieu of any annual equity incentive award referenced in this
subparagraph, provided payment of the Cash Payment to you will occur no later
than the actual granting of such award would have occurred. For purposes of
determining your entitlement, if any, under Paragraphs 9, 10, 11, 12 and 13 to
the equity-based awards set forth in this Paragraph 4.b(ii), to the extent your
employment was terminated after you became eligible for an award approved by the
Compensation Committee but prior to the actual granting of such award, then you
shall be entitled to receive such award or the substituted Cash Payment.

            (iii) All Options and Restricted Stock (and any other equity-based
awards) referred to in this Paragraph 4.b will (x) be valued using a method or
methods (including where appropriate a Black-Scholes or other fair value method)
as determined by the Compensation Committee from time to time (and, in the case
of the Initial Grants, taking

                                      -2-
<PAGE>

into account the IPO price to the public without regard to the underwriters'
discount), (y) become fully vested, exercisable (if applicable) and
nonforfeitable within a period not to exceed four (4) years from the date of
grant in a manner determined by the Compensation Committee, contingent on both
the continuing performance of services to Studio (subject to Paragraphs 9, 10,
11, 12 and 13) and the achievement of performance goals as established by the
Compensation Committee from time to time (it being understood that (A) the
period of time required for achievement of any such performance goal may not
exceed four (4) years from the date of the grant of the applicable award and (B)
the performance goals and performance periods will be no more burdensome than
the performance goals and the performance periods for applicable compensation
awards made approximately contemporaneously to the CEO, COO and the CFO of
Studio), and (z) otherwise be subject to such terms and conditions as may be set
forth in the Plan or determined by the Compensation Committee from time to time
and set forth or referred to in the agreement(s) evidencing such award or
awards. Notwithstanding the foregoing, any performance based Initial Grants may,
in the discretion of the Compensation Committee, have a vesting schedule that
ends in the first quarter of 2009.

            (iv) Following the expiration of the Employment Term (i.e., five (5)
years after the Effective Date), but only if your employment hereunder has not
been terminated earlier, you will not be required to perform any additional
services to Studio in order for all of the equity-based compensation awards
granted to you during the Employment Term to be fully vested, exercisable (if
applicable) and nonforfeitable; provided that such awards will continue to
remain subject to the achievement of performance goals as provided pursuant to
the Plan and to such other terms and conditions as may be determined by the
Compensation Committee and set forth or referred to in the agreement(s)
evidencing such award or awards; and provided further that, subject to the
foregoing, all Options and any similar equity-based awards will remain
exercisable for the balance of the term of the grant.

            (v) At all times, provided Studio remains a public company, Studio
will maintain registrations on Form S-8 or any successor form under the
Securities Act of 1933, as amended ("Securities Act"), of shares of common stock
of Studio that may be received by you pursuant to equity incentive awards
referred to in this Paragraph 4.b to the extent such form is applicable to such
shares. It is understood that even though the shares are registered at the time
of issuance to you, such shares will be subject to (a) any restrictions that
apply to "affiliates" under Rule 144 of the Securities Act, (b) any blackout
periods and other company policies relating to directors and senior officers,
and (c) any other limitations on resale under applicable law.

      5. BENEFITS. You acknowledge that you will not be entitled to participate
in Studio's benefit plans.

      6. BUSINESS EXPENSES. During the Employment Term, you shall be reimbursed
for such reasonable travel and other expenses incurred in the performance of
your duties hereunder as are customarily reimbursed for Chairmen of the Board of
publicly traded major motion picture, television and record companies. Studio
shall reimburse all of your costs and expenses (including reasonable legal fees)
in connection with the preparation, review and negotiation of this Agreement and
any document, agreement or arrangement contemplated

                                      -3-
<PAGE>

by this Agreement or otherwise entered into by you in connection with the
commencement of employment with Studio. You shall be entitled to first class
travel expenses, including hotels in accordance with Studio's policy for its
senior-most executives.

      7. INDEMNIFICATION.

      a. You shall be fully indemnified and held harmless by Studio to the
fullest extent permitted by law from any claim, liability, loss, cost or expense
of any nature (including attorney's fees of counsel selected by you, judgments,
fines, any amounts paid or to be paid in any settlement, and all costs of any
nature) incurred by you (all such indemnification to be on an "after tax" or
"gross-up" basis) which arises in whole or in part out of any alleged or actual
action or conduct on your part in or in connection with or related in any manner
to your services (whether as an employee, agent, officer, corporate director,
member, manager, shareholder, partner, or in any other capacity) to Studio or
any entity owned or controlled by Studio, or which owns or controls Studio, or
as to which you are providing services on behalf of Studio or which may be doing
business with Studio. To the maximum extent allowed by law, all amounts to be
indemnified hereunder including attorneys' fees shall be promptly advanced by
Studio until such time, if ever, as it is determined by final decision pursuant
to Paragraph 24 below that you are not entitled to indemnification hereunder
(whereupon you shall reimburse Studio for all sums theretofore advanced).

      b. Studio will cover you under directors and officers liability insurance
during and, while potential liability exists, after the Employment Term in the
same amount and to the same extent, if any, as Studio covers its other officers
and directors.

      8. COVENANTS.

      a. Confidential Information. You agree that you shall not, during the
Employment Term or at any time thereafter, use for your own purposes, or
disclose to or for any benefit of any third party, any trade secret or other
confidential information of Studio or any of its affiliates (except as may
required by law or in the performance of your duties hereunder consistent with
Studio's policies) and that you will comply with any confidentiality obligations
of Studio known by you to a third party, whether under agreement or otherwise.
Notwithstanding the foregoing, confidential information shall be deemed not to
include information which (i) is or becomes generally available to the public
other than as a result of a disclosure by you or any other person who directly
or indirectly receives such information from you or at your direction or (ii) is
or becomes available to you on a non-confidential basis from a source which you
reasonably believe is entitled to disclose it to you. Studio may waive
application of the foregoing restrictions and obligations in its discretion from
time to time.

      b. Results and Proceeds. The results and proceeds of your services
hereunder, including, without limitation, any works of authorship resulting from
your services during your employment and any works in progress, shall be
works-made-for-hire and Studio shall be deemed the sole owner throughout the
universe of any and all rights of whatsoever nature

                                      -4-
<PAGE>

therein, whether or not now or hereafter known, existing, contemplated,
recognized or developed, with the right to use the same in perpetuity in any
manner Studio determines in its sole discretion without any further payment to
you whatsoever. If, for any reason, any of such results and proceeds shall not
legally be a work-for-hire and/or there are any rights which do not accrue to
Studio under the preceding sentence, then you hereby irrevocably assign and
agree to assign any and all of your right, title and interest thereto,
including, without limitation, any and all copyrights, patents, trade secrets,
trademarks and/or other rights of whatsoever nature therein, whether or not now
or hereafter known, existing, contemplated, recognized or developed by Studio,
and Studio shall have the right to use the same in perpetuity throughout the
universe in any manner Studio may deem useful or desirable to establish or
document Studio's exclusive ownership of any and all rights in any such results
and proceeds, including, without limitation, the execution of appropriate
copyright and/or patent applications or assignments. To the extent you have any
rights in the results and proceeds of your services that cannot be assigned in
the manner described above, you unconditionally and irrevocably waive the
enforcement of such rights. This Paragraph 8.b is subject to, and shall not be
deemed to limit, restrict, or constitute any waiver by Studio of any rights of
ownership to which Studio may be entitled by operation of law by virtue of
Studio or any of its affiliates being your employer.

      c. Promise Not To Solicit. You will not during the period of the
Employment Term or for the period ending one (1) year after the earlier of
expiration of the Employment Term or your termination hereunder, without the
prior written consent of Studio, induce or attempt to induce any employees,
exclusive consultants, exclusive contractors or exclusive representatives of
Studio (or those of any of its affiliates) to stop working for, contracting with
or representing Studio or any of its affiliates or to work for, contract with or
represent any of Studio's (or its affiliates') competitors. Nothing in this
Agreement will prevent you from providing references for any employee.

      9. INCAPACITY.

      a. In the event you become totally medically disabled and cannot
substantially perform your duties at any time during the Employment Term, the
Board of Directors may at any time after such disability has continued for
ninety (90) consecutive days require Studio to give you written notice that it
intends, subject to applicable state and federal law, to suspend this Agreement.
Upon receipt of such notice, prior to any suspension hereunder, you shall be
entitled to an expedited arbitration to determine whether or not you are
medically disabled and have been disabled for at least ninety (90) consecutive
days, provided that you request such arbitration within ten (10) business days
of receipt of such notice from Studio. If you do not so request such an
arbitration, or if the arbitrator rules that you are so disabled, you shall be
placed on a "medical payroll". You will remain employed for the first twenty-six
(26) weeks of consecutive absence commencing at the end of the later of the ten
(10) day period or upon the conclusion of the arbitration. Thereafter, if you
are not able to resume your duties hereunder, your employment will be
terminated.

      b. Upon termination of employment as provided in Paragraph 9.a, you will
be entitled to retain all grants of equity-based compensation made to you on or
prior to the date

                                      -5-
<PAGE>

of termination and to receive and retain any approved grants of equity-based
compensation (or substituted Cash Payment) for which you have become eligible
but which have not been made, but will not be entitled to receive any additional
grants of equity-based compensation thereafter. Unless otherwise specified in
the Plan or in the agreement evidencing the grant, after termination of
employment your grants of equity-based compensation will be determined as
follows. Your rights to receive or exercise the awards provided by the grants
will be determined after the end of the performance period, if any, specified in
the grant, subject to the applicable performance criteria, if any, as if you had
continued to remain employed with Studio throughout such performance period. You
will be entitled to receive or exercise a ratable portion of the amount of each
award determined in the preceding sentence, calculated by multiplying such
amount by a fraction, the numerator of which is the sum of (i) your actual
period of service through the date of termination plus (ii) one (1) year (but in
no event will the numerator exceed the denominator) and the denominator of which
is the total performance period specified in the grant. The balance of such
awards will be forfeited. Subject to this Paragraph 9.b and to the other terms
and conditions of the grants, all Options and any similar equity-based awards
will remain exercisable for the remaining term of the grant.

      10. DEATH.

      a. If you die prior to the end of the Employment Term, this Agreement
shall be terminated as of the date of death.

      b. Upon termination of employment as provided in Paragraph 10.a, the
rights to equity-based compensation of your estate or beneficiary will be
determined in the same manner and at the same time as provided in Paragraph 9.b,
except that, in addition, your estate or beneficiary will be entitled to receive
and retain the additional annual equity incentive award (or substituted Cash
Payment) for which you would have become eligible under Paragraph 4.b(ii) had
your employment continued up to the first anniversary of the date of your death.

      11. TERMINATION FOR CAUSE.

      a. Studio may, at its option and upon resolution by the Board of
Directors, terminate this Agreement forthwith for "cause," including, without
limitation, any obligation to pay the Base Salary. For purposes of this
Agreement, termination of this Agreement for "cause" shall mean only: (i)
conviction of a felony or other crime involving moral turpitude or for
embezzlement or the misappropriation of corporate assets, in any case, after the
exhaustion of all possible appeals; or (ii) your material breach of Paragraph 2,
3 or 8 hereof. Anything herein to the contrary notwithstanding, Studio will give
you written notice prior to terminating this Agreement for your material breach
under clause (ii), setting forth the exact nature of any alleged breach and the
conduct required to cure such breach. You shall have thirty (30) days from the
receipt of such notice within which to cure.

      b. Upon termination of employment for cause as provided in Paragraph
11.a(i), Studio will have no further obligation to pay equity-based compensation
under this

                                      -6-
<PAGE>

Agreement (except to the extent such equity-based compensation has vested to the
date of termination).

      c. Upon termination of employment for cause as provided in Paragraph
11.a(ii), your rights to equity-based compensation will be determined in the
same manner and at the same time as provided in Paragraph 9.b, except that the
numerator of the fraction will be limited to your actual period of service
through the date of termination.

      12. INVOLUNTARY TERMINATION. Studio may, at its option and upon resolution
by the Board of Directors, terminate your employment other than for cause or on
account of incapacity, in which case you will receive continuation of Base
Salary as specified herein, until the end of the Employment Term. Upon
termination of employment as provided in Section 12, you will be entitled to
retain all grants of equity-based compensation made to you on or prior to the
date of termination and to receive and retain any grants of equity-based
compensation (or substituted Cash Payment) for which you have become eligible
but which have not been made. In addition, you will be entitled to receive and
retain the additional annual equity incentive award (or substituted Cash
Payment) for which you would have become eligible under Section 4.b(ii) had your
employment continued up to the first anniversary of the termination of your
employment provided, however, you will not be entitled to receive any other
future equity-based compensation. Unless otherwise specified in the Plan or in
the agreement evidencing the grant, after termination of employment your grants
of equity-based compensation will be determined as follows. Your rights to
receive or exercise the awards provided by the grants will be determined after
the end of the performance period specified in the grant, subject to the
applicable performance criteria, as if you had continued to remain employed with
Studio throughout such performance period. You will be entitled to receive or
exercise 100% of the amount of the awards determined in the preceding sentence.
Subject to the terms and conditions of the grants, all Options and any similar
equity-based awards will remain exercisable for the remaining term of the grant.
You agree that you will have no rights or remedies in the event of your
termination without cause other than those set forth in the Agreement to the
maximum extent required by law.

      13. TERMINATION FOR GOOD REASON. You shall be entitled to terminate this
Agreement at any time for "good reason." As used herein, the term "good reason"
shall mean only: (i) any material breach of this Agreement by Studio, (ii) a
successor or assign (whether direct or indirect, by purchase, merger,
consolidation or otherwise) to all or substantially all of the business and/or
assets of Studio fails to assume liability under the Agreement; (iii) the
failure to elect you as a director of Studio and as Chairman of the Board of
Directors of Studio within three (3) months after the Effective Date; (iv) the
failure to reelect or otherwise to maintain you as a director of Studio and as
Chairman of the Board of Directors of Studio; (v) there is a material reduction
in your duties and responsibilities as set forth in Paragraph 2.a above, (vi)
the failure to make the Initial Grants, or (vii) the failure to make any of the
annual equity incentive awards in accordance with Paragraph 4.b(ii) unless a
Cash Payment has been paid, or (vii) the failure to make a Cash Payment in
accordance with Paragraph 4.b(ii) if the Compensation Committee has elected to
substitute an annual equity incentive award with such Cash Payment.
Notwithstanding anything to the contrary contained herein, you will give Studio
written notice prior to terminating this Agreement

                                      -7-
<PAGE>

pursuant to the foregoing, setting forth the exact nature of any alleged breach
and, should the "good reason" consist of matters contained in clause (i)above,
the conduct required to cure such breach. Studio shall have thirty (30) days
from the receipt of such notice within which to cure should the "good" reason
for your termination consist of matters contained in clause (i) above. In the
event of your voluntary termination for good reason, you shall be entitled to
the payments and equity-based compensation provided under Paragraph 12 for
involuntary termination without cause. Should you terminate this Agreement
because of Studio's failure to pay you an annual equity incentive award or Cash
Payment pursuant to Paragraph 4.b(ii) above, then, in lieu of the payments and
equity-based-compensation to be provided under Paragraph 12, you instead will be
entitled to a one-time-only payment in the amount of $4,000,000, payable
promptly following Studio's receipt of your written notice of termination. You
agree that you will have no rights or remedies in the event of your termination
for good reason other than those set forth in the Agreement to the maximum
extent allowed by law.

      14. NO MITIGATION. In the event this Agreement is terminated for any
reason prior to its expiration you shall not be required to mitigate your
damages hereunder, nor shall Studio be entitled to offset from any sums owing to
you hereunder any amounts received by you from any third party.

      15. SECTION 317 AND 508 OF THE FEDERAL COMMUNICATIONS ACT. You represent
that you have not accepted or given nor will you accept or give, directly or
indirectly, any money, services other valuable consideration from or to anyone
other than Studio for the inclusion of any matter as part of any film,
television program or other production produced, distributed and/or developed by
Studio and/or any of its affiliates.

      16. EQUAL OPPORTUNITY EMPLOYER. You acknowledge that Studio is an equal
opportunity employer. You agree that you will comply with Studio policies
regarding employment practices and with applicable federal, state and local laws
prohibiting discrimination or harassment.

      17. NOTICES. All notices required to be given hereunder shall be given in
writing, by personal delivery or by overnight courier and confirmed by fax at
the respective addresses of the parties hereto set forth above, or at such
address as may be designated in writing by either party, and in the case of
Studio, to the attention of the General Counsel of Studio. A courtesy copy of
any notice to you hereunder shall be sent to Richard A. Freling, Jones Day, 2727
North Harwood Street, Dallas, Texas 75201.

      18. ASSIGNMENT. This is an Agreement for the performance of personal
services by you and may not be assigned by you (other than the right to receive
payments which may be assigned to a company, trust or foundation owned or
controlled by you) and any purported assignment in violation of the foregoing
shall be deemed null and void. Studio shall have the right to assign this
Agreement and your services hereunder only to an entity acquiring all or
substantially all of the assets of Studio.

                                      -8-
<PAGE>

      19. CALIFORNIA LAW. This Agreement and all matters or issues collateral
thereto shall be governed by the laws of the State of California applicable to
contracts entered into and performed entirely therein.

      20. NO IMPLIED CONTRACT. The parties intend to be bound only upon
execution of this Agreement and no negotiation, exchange or draft or partial
performance shall be deemed to imply an agreement. Neither the continuation of
employment or any other conduct shall be deemed to imply a continuing agreement
upon the expiration of this Agreement.

      21. ENTIRE UNDERSTANDING. Except as otherwise specifically provided
herein, this Agreement contains the entire understanding of the parties hereto
relating to the subject matter herein contained, and can be changed only by a
writing signed by both parties hereto.

      22. VOID PROVISIONS. If any provision of this Agreement, as applied to
either party or to any circumstances, shall be adjudged by a court to be void or
unenforceable, the same shall be deemed stricken from this Agreement and shall
in no way affect any other provision of this Agreement or the validity or
enforceability of this Agreement. In the event any such provision (the
"Applicable Provision") is so adjudged void or unenforceable, you and Studio
shall take the following actions in the following order: (i) seek judicial
reformation of the Applicable Provision; (ii) negotiate in good faith with each
other to replace the Applicable Provision with a lawful provision; and (iii)
have an arbitration as provided in Paragraph 24 hereof determine a lawful
replacement provision for the Applicable Provision; provided, however, that no
such action pursuant to either of clauses (i) or (iii) above shall increase in
any respect your obligations pursuant to the Applicable Provision.

      23. SURVIVAL MODIFICATION OF TERMS. Your obligations under Paragraph 8
hereof shall remain in full force and effect for the entire period provided
therein notwithstanding the termination of the Employment Term pursuant to
Paragraph 11 hereof or otherwise. Studio's obligations under Paragraphs 6 (with
respect to expenses theretofore incurred), 7 and 28 hereof shall survive
indefinitely the termination of this Agreement regardless of the reason for such
termination.

      24. ARBITRATION OF DISPUTES. Any controversy or claim by you against
Studio or any of its parent companies, subsidiaries, affiliates (and/or
officers, directors, employees, representatives or agents of Studio and such
parent companies, subsidiaries and/or affiliates), including any controversy or
claim arising from, out of or relating to this Agreement, the breach thereof, or
the employment or termination thereof of you by Studio which would give rise to
a claim under federal, state or local law (including, but not limited to, claims
based in tort or contract, claims for discrimination under state or federal law,
and/or claims for violation of any federal, state or local law, statute or
regulation), or any claim against you by Studio (individually and/or
collectively, "Claim[s]") shall be submitted to an impartial mediator
("Mediator") selected jointly by the parties. Both parties shall attend a
mediation conference in Los Angeles County, California and attempt to resolve
any and all Claims. If the parties are not able to resolve all Claims, then upon
written demand

                                      -9-
<PAGE>

for arbitration to the other party, which demand shall be made within a
reasonable time after the Claim has arisen, any unresolved Claims shall be
determined by final and binding arbitration in Los Angeles, California, in
accordance with the Model Employment Procedures of the American Arbitration
Association (collectively, "Rules") by a neutral arbitrator experienced in
employment law, licensed to practice law in California, in accordance with the
Rules, except as herein specified. In no event shall the demand for arbitration
be made after the date when the institution of legal and/or equitable
proceedings based upon such Claim would be barred by the applicable statute of
limitations. Each party to the arbitration will be entitled to be represented by
counsel and will have the opportunity to take depositions in Los Angeles,
California of any opposing party or witnesses selected by such party and/or
request production of documents by the opposing party before the arbitration
hearing. By mutual agreement of the parties, additional depositions may be taken
at other locations. In addition, upon a party's showing of need for additional
discovery, the arbitrator shall have discretion to order such additional
discovery. Further, the arbitrator shall have the authority to decide any
dispute regarding discovery that arises in connection with any Claim. You
acknowledge and agree that you are familiar with and fully understand the need
for preserving the confidentiality of Studio's agreements with third parties and
compensation of Studio's employees. Accordingly, you hereby agree that to the
extent the arbitrator determines that documents, correspondence or other
writings (or portions thereof) whether internal or from any third party,
relating in any way to your agreements with third parties and/or compensation of
other employees are necessary to the determination of any Claim, you and/or your
representatives may discover and examine such documents, correspondence or other
writings only after execution of an appropriate confidentiality agreement. In
the event the parties fail to agree on the form of a confidentiality agreement,
the arbitrator shall have the authority to determine the form of such agreement
(provided same is consistent with the terms of this Agreement). Each party shall
have the right to subpoena witnesses and documents for the arbitration hearing.
A court reporter shall record all arbitration proceedings. With respect to any
Claim brought to arbitration hereunder, either party may be entitled to recover
whatever damages would otherwise be available to that party in any legal
proceeding based upon the federal and/or state law applicable to the matter. The
arbitrator shall issue a written decision setting forth the award and the
findings and/or conclusions upon which such award is based. The decision of the
arbitrator may be entered and enforced in any court of competent jurisdiction by
either Studio or you. Notwithstanding the foregoing, the result of any such
arbitration shall be binding but shall not be made public (including by filing a
petition to confirm the arbitration award), unless necessary to confirm such
arbitration award after non-payment of the award for a period of at least
fifteen (15) days after notice to Studio of the arbitrator's decision. Each
party shall pay the fees of their respective attorneys (except as otherwise
awarded by the arbitrator), the expenses of their witnesses, and all other
expenses connected with presenting their Claims or defense(s). Other costs of
arbitration shall be borne by Studio. Except as set forth below, should you or
Studio pursue any Claim covered by this Paragraph 24 by any method other than
said arbitration, the responding party shall be entitled to recover from the
other party all damages, costs, expenses, and reasonable outside attorneys' fees
incurred as a result of such action. The provisions contained in this Paragraph
24 shall survive the termination of your employment with Studio. Notwithstanding
anything set forth above, you agree that any breach or threatened breach of this
Agreement (particularly, but without limitation, with

                                      -10-
<PAGE>

respect to Paragraph 8, above) may result in irreparable injury to Studio, and
therefore, in addition to the procedures set forth above, Studio may be entitled
to file suit in a court of competent jurisdiction to seek a Temporary
Restraining Order and/or preliminary or permanent injunction or other equitable
relief to prevent a breach or contemplated breach of such provisions.

      25. NAME AND LIKENESS. Studio shall have the right to use your name,
biography and likeness in connection with its business as follows: You shall
promptly submit to Studio a biography of yourself. Provided that you timely
submit such biography, Studio shall not use any other biographical information
other than contained in such biography so furnished, other than references to
your prior professional services and your services hereunder, without your prior
approval (which approval shall not be unreasonably withheld). If you fail to
promptly submit a biography, or such biography is not approved by Studio, then
you shall not have the right to approve any biographical material used by
Studio. Nothing herein contained shall be construed to authorize the use of your
name, biography or likeness to endorse any product or service or to use the same
for similar commercial purposes.

      26. EMPLOYEE REPRESENTATIONS AND WARRANTIES. You warrant and represent
that: (a) your services hereunder shall not infringe on the rights of any third
parties or constitute an interference with contractual rights or business
advantage of others; (b) you have no prior existing commitments which will
conflict or interfere with your rendering services hereunder; (c) you know of no
party who will or might reasonably claim that in offering employment to you,
Studio has interfered with their contractual commitments or prospective business
advantage; and (d) you will not enter into any future commitment which will
conflict or interfere with your rendering services hereunder. You further
represent and warrant that you will not make any commitment which is or may be
binding on Studio without Studio's prior consent.

      27. BENEFICIARIES. You will be entitled to select (and change, to the
extent permitted under any applicable law) a beneficiary or beneficiaries to
receive any compensation or benefit payable hereunder following your death, and
may change such election, in either case by giving Studio written notice
thereof.

      28. GROSS-UP PAYMENT. In the event that it is determined that any payment
(other than the Gross-Up Payments provided for in this Paragraph 28) or
distribution by Studio or any of its affiliates to you or for your benefit,
whether paid or payable or distributed or distributable pursuant to the terms of
this Agreement or pursuant to or by reason of any other agreement, policy, plan,
program or arrangement, including without limitation any stock option or similar
right, or the lapse or termination of any restriction on or the vesting or
exercisability of any of the foregoing (a "Payment"), would be subject to the
excise tax imposed by Section 4999 of the Internal Revenue Code of 1986, as
amended (the "Code") (or any successor provision thereto), by reason of being
considered "contingent on a change in the ownership or effective control" of
Studio, within the meaning of Section 280G of the Code (or any successor
provision thereto) or to any similar tax imposed by state or local law, or any
interest or penalties with respect to such tax (such tax or taxes,

                                      -11-
<PAGE>

together with any such interest and penalties, being hereafter collectively
referred to as the "Excise Tax"), then you will be entitled to receive (or have
paid to the applicable taxing authority on your behalf) an additional payment or
payments (collectively, a "Gross-Up Payment"). The Gross-Up Payment will be in
an amount such that, after payment by you of all taxes (including any interest
or penalties imposed with respect to such taxes), including any Excise Tax
imposed upon the Gross-Up Payment, you retain (or receive the benefit of a
payment to the applicable taxing authority of) an amount of the Gross-Up Payment
equal to the Excise Tax imposed upon the Payment. For purposes of determining
the amount of the Gross-Up Payment, you will be considered to pay (i) federal
income taxes at the highest rate in effect in the year in which the Gross-Up
Payment will be made and (ii) state and local income taxes at the highest rate
in effect in the state or locality in which the Gross-Up Payment would be
subject to state or local tax, net of the maximum reduction in federal income
tax that could be obtained from deduction of such state and local taxes. The
procedures and allocation of expenses for the determination of whether an Excise
Tax would be imposed and the amount of such Excise Tax shall be no less
favorable to you than any comparable procedures or allocation provided in any
plan or agreement applicable to the CEO, COO and CFO of Studio.

      29. MISCELLANEOUS. You agree that Studio may deduct and withhold from your
compensation hereunder the amounts required to be deducted and withheld under
the provisions of the Federal and California Income Tax Acts, Federal Insurance
Contributions Act, California Unemployment Insurance Act, any and all amendments
thereto, and other statutes heretofore or hereafter enacted requiring the
withholding of compensation. All of Studio's obligations in this Agreement are
expressly conditioned upon you completing and delivering to Studio an Employment
Eligibility Form ("Form I-9") (in form satisfactory to Studio) and in connection
therewith, you submitting to Studio original documentation demonstrating your
employment eligibility. This Agreement may be executed in several counterparts,
each of which will be deemed to be an original, but all of which together will
constitute one and the same Agreement. The captions used in connection with the
paragraphs of this Agreement are inserted only for the purpose of reference.
Such captions shall not be deemed to govern, limit, modify or in any other
manner affect the scope, meaning, or intent of the provisions of this Agreement
or any part thereof, nor shall such captions otherwise be given any legal
effect.

      If the foregoing correctly sets forth your understanding, please sign this
letter and the attached three (3) copies, and return all four documents to the
undersigned, whereupon this letter shall constitute a binding agreement between
us

                                        Very truly yours,

                                        DREAMWORKS ANIMATION SKG , INC.

                                        By:
                                        Its:

                                      -12-
<PAGE>

ACCEPTED AND AGREED AS OF THE
DATE FIRST ABOVE WRITTEN:

-----------------------------
ROGER ENRICO

                                      -13-

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