Exhibit 10.18


                           PRINTING SERVICES AGREEMENT
                           ---------------------------


THIS  PRINTING  SERVICES   AGREEMENT,   made  as  of  November  29,  1999  (this
"Agreement"),  between:  ARTECH  CAPITAL  CORPORATION,  a  Canadian  corporation
("Printer"),  and GOLDEN BOOKS PUBLISHING COMPANY,  INC., a Delaware corporation
("Customer").

WHEREAS,  Printer has signed an Asset  Purchase  Agreement  with  Customer  (the
"Asset Purchase Agreement") regarding that certain  manufacturing  facility (the
"Sturtevant  Facility")  currently  leased by Customer  located at 10101 Science
Drive, Sturtevant,  Wisconsin, pursuant to which Customer is seeking to transfer
and sell to Printer its right,  title and interest in certain printing equipment
located at the  Sturtevant  Facility and the lease  pertaining to such facility,
and  Printer  is  seeking  to assume  such  lease and  purchase  such  equipment
(collectively, the "Transaction"); and

WHEREAS  Customer is a preferred  client of Printer and enjoys the privileges of
such status;

WHEREAS,  the Customer  intends to purchase  from  Printer,  and Printer has the
capacity and intends to  manufacture  assorted  printed books in the formats set
forth on Schedule A ("Product") hereto for Customer, subject to the terms hereof
and subject to the closing of the Transaction;

WHEREAS, the Customer intends to purchase from Printer, and Printer intends on a
right of first refusal  basis to seek to  manufacture  the currently  outsourced
products  set forth in Schedules  D-1 and D-2 hereto  which it, its  affiliates,
associated companies (in which it holds a material interest) or the Harpel Group
(in which it holds  indebtedness)  (all of which,  in  reference  to  Outsourced
Product or Additional Product (as hereinafter defined) may simply be referred to
as "Printer")  have the internal  capability of  manufacturing  (as  hereinafter
defined) for Customer, pursuant to the terms and conditions contained herein;

NOW,  THEREFORE,   in  consideration  of  the  covenants  and  mutual  agreement
hereinafter set forth, the parties hereto agree as follows:


                   1. ARTICLE I: GENERAL TERMS AND PROVISIONS
                      ---------------------------------------

1.1   GENERAL.
      -------

      1.1.1    PRODUCT   REQUIREMENTS.   Upon  the  terms  and  subject  to  the
               conditions  of this  Agreement,  Printer shall produce and supply
               Customer with,  and Customer shall purchase from Printer,  (i) no
               less than * of Customer's total  requirements for Product for the
               first year of the term of this Agreement,


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               (ii) no less than * of  Customer's  requirements  for Product for
               the second year of the term of this Agreement,  and (iii) no less
               than * of  Customer's  requirements  for  Product for each of the
               third,  fourth and fifth  years of this  Agreement,  in all cases
               based on aggregate  ordered annual unit volume across all formats
               of Product for the current year of the Agreement. Notwithstanding
               the previous  sentence,  Printer  agrees that it will produce and
               supply Customer with all of Customer's requirements for Products,
               regardless  of  whether  such   requirements   exceed  percentage
               requirements   specified  in  1.1.1(ii)  and  1.1.1(iii)   above,
               provided however,  that Customer,  in requesting work to be done,
               schedules  work  on  a  basis  reasonably  consistent  with  past
               practice  or  its  forecast(s)  as  provided   pursuant  to  this
               Agreement,  bearing in mind the needs of the Customer's  business
               and its  customers,  on the one  hand,  and the  capacity  of the
               Printer to supply  product and the  availability  and capacity of
               required  subcontractors,  on the other  hand.  Product  shall be
               manufactured  in accordance  with the  Production  Guidelines and
               Production  Schedule (as defined in Section 1.4(A)  hereof),  and
               Customer shall pay Printer a price  calculated in accordance with
               Section  1.5  hereof  for  all  Product  and  Outsourced  Product
               delivered  in  accordance   with  Section  1.3  hereof.   Nothing
               contained in this Agreement  shall obligate  Customer to purchase
               any  quantity of Product or  Outsourced  Product  until  Customer
               issues  specific  purchase  orders for such Product or Outsourced
               Product  in   accordance   with  the  terms  of  the   Agreement.
               Notwithstanding  the foregoing  sentence,  Printer shall purchase
               supplies only based on Customer's orders or instructions or based
               on Customer's historical production volume levels for Schedules A
               and D.  Historical  production  volume levels shall mean, for the
               calendar year 2000, Schedules A and D for calendar year 1999, and
               for  subsequent  years,  Schedules  A and D during  the  previous
               calendar year. In all cases,  historical  production levels shall
               be adjusted for  seasonality for the previous two calendar years.
               Printer  agrees  to put  in  place  stocking  programs  with  its
               suppliers generally  equivalent to the stocking programs operated
               by Customer prior to the Transaction for the basic types of paper
               and other  consumables  required to produce the  Products per the
               specifications  in Schedules B and D. It is  understood  that the
               lead times listed in Schedules B and D are  predicated  upon such
               programs  and  normal  stocking  levels of paper and  consumables
               based  on  Customer's  historical  production  volume  levels  as
               described above.  Customer may from time to time instruct Printer
               to  purchase  additional  paper  and  other  consumables  to meet
               unusual demand.  Printer may invoice Customer for the cost of any
               such additional  supplies if such supplies are not used within 90
               days of their purchase.  Subsequent to any such invoice,  Printer
               shall, upon Customer's  instructions on its purchase orders,  use
               such supplies for specific  future  orders,  with the cost of the
               supplies utilized applied against the cost of such future orders.
               Upon  payment  of  Printer's  invoice  for such  supplies,  title
               thereto shall pass to Customer. Printer shall store such supplies
               for Customer on terms consistent with terms for Customer supplied
               materials in accordance with


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               Paragraph 2.3.  Notwithstanding  anything to the contrary in this
               paragraph,  if Printer is not  billed by its paper  supplier  for
               paper  ordered  by Printer on  Customer's  instructions,  Printer
               shall not bill Customer for such paper.

               However,  in the event that either (1) unusual items are required
               (e.g.,  customized  paint boxes) or (2) the volume of  Customer's
               orders are in excess of Customer's  historical  production volume
               levels  for  that  time  of  year;  and  Customer  has  not  with
               sufficient  notice  instructed  Printer to purchase  such unusual
               items or additional paper and supplies in advance,  then the lead
               times in Schedule B or D shall automatically be extended to allow
               for the purchase of such unusual  items or  additional  paper and
               supplies. In such event, Printer will use commercially reasonable
               best efforts to obtain the  supplies  required for such order and
               will inform  Customer  within 48 hours of its ability to meet the
               lead times in Schedule B or D.  Should  Printer  inform  Customer
               that  under  such  circumstances  Printer  can not  meet the lead
               times,  then:  (a)  Customer  shall  have the right to place that
               portion of the order which can not be met with  another  printer,
               (b)  Printer's  failure  to  produce  such  product  shall not be
               included  in the  calculation  of a  possible  default by Printer
               pursuant  to  Section  8.1(c),  and  (c)  Customer's  failure  to
               purchase  such product from Printer shall not be deemed a failure
               to  provide  the  minimum  percentage  requirements  set forth in
               Section 1.1.1.

      1.1.2    OUTSOURCED PRODUCT.  Schedule D lists all of Customer's currently
               outsourced  product   (excluding   novelty  items)   ("Outsourced
               Product").  Schedule D-1  reflects  those  formats of  Outsourced
               Product  which Printer  currently has the internal  capability to
               manufacture.  For purposes of this Agreement, the words "internal
               capability  to  manufacture"  mean  that  Printer  or  any of its
               affiliated  companies  is able to perform  in-house a  sufficient
               percentage of the entire  manufacturing  process for a particular
               format  such  that  it  can  reasonably   guarantee  meeting  the
               standards of quality and scheduling for such format. Schedule D-2
               reflects  those formats of Outsourced  Product which Printer does
               not currently have internal capability to manufacture,  but as to
               which Printer intends to install or otherwise obtain the internal
               capability  to  manufacture  within  twenty  four  months  of the
               Effective Date. Schedule D-3 reflects those formats of Outsourced
               Product which Printer or its  affiliates do not have or currently
               intend to have the internal  capability to manufacture during the
               first two years of this Agreement.  Printer agrees to manufacture
               all Outsourced  Product  formats set forth in Schedule D-1 hereto
               at the  pricing set forth in  Schedule  D-1  (subject to quantity
               variation  and  variations in paper and other prices as set forth
               in Section 1.5), provided however,  that Customer,  in requesting
               work to be done, schedules work on a basis reasonably  consistent
               with past  practice or its  forecast(s)  as provided  pursuant to
               this  Agreement,  bearing  in mind the  needs  of the  Customer's
               business and its customers,  on the one hand, and the capacity of
               the Printer to supply product and the  availability  and capacity
               of required subcontractors,  on the other hand. *


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      1.1.3    ADDITIONAL  PRODUCT.  *


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1.2  ANNUAL MINIMUM VOLUME REQUIREMENT. The parties acknowledge that the initial
     aggregate  annual  minimum  volume  requirement  for  orders  for  items on
     Schedule A (including  prepress  for such  Schedule A items as described in
     Schedule F, which Customer hereby commits to utilize Printer to perform) is
     * during the first year, and adjusted for  subsequent  years as illustrated
     in the next paragraph.

     Customer's  obligations pursuant to Sections 1.1 and 1.2 are subject to the
     termination provisions of Section 8.1 as well as Customer's rights pursuant
     to Section 1.5(b) to remove from the scope of this  Agreement  formats with
     respect  to  which  Printer  is  unable  to  provide  competitive  pricing.
     Shortfalls  resulting  from  Customer  exercising  its rights  pursuant  to
     Section  1.5(b)  will not  constitute  a breach of  Sections  1.1 or 1.2 by
     Customer,  and such unit volume will not be carried over to the  subsequent
     year's  requirements,  as set forth in Section  1.5(b).  The minimum volume
     requirement for determining  any potential  shortfall in Customer's  orders
     for  Product  on  Schedule  A to  Printer  shall  be * in year  one of this
     Agreement,  * in year two, * in year three,  * in year four,  and * in year
     five. The minimum volume  requirement for determining any premium or excess
     amount in  Customer's  orders for  Product on Schedule A shall be * in year
     one of the Agreement, * in year two, * in year three, * in year four, and *
     in year five.

      1.2.1    TERM. This Agreement shall begin on the date set forth above (the
               "Effective  Date") and expire on December  31,  2004,  subject to
               earlier  termination  pursuant to the terms hereof.  In the event
               Customer desires to renew the term of this Agreement, Printer and
               Customer agree to commence good-faith  negotiations to renew this
               Agreement, and to conclude such an agreement by or before the end
               of the third year of the initial term hereof.  * It is understood
               and agreed that any and all  references to the first year of this
               Agreement  actually include the period of time from the Effective
               Date through  December 31, 2000,  even though such period of time
               comprises more than one year.


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1.3  DELIVERY.  Finished  product shall be delivered FOB the Printer's  shipping
     dock at the Sturtevant Facility. Shipment must be made to meet the required
     lead  times  in  accordance  with  Schedule  B or  Schedule  D  hereto  (if
     applicable)  or as mutually  agreed upon by Customer and Printer at time of
     purchase   order.   Notwithstanding   the   foregoing,   Printer  shall  be
     automatically  entitled to a 24-hour  extension from any required  delivery
     date, except in the case of rush orders. Upon the expiration of the 24-hour
     extension,  where applicable,  a penalty discount equal to 0.5% per day for
     the first  two days  late,  and 1% per day late  after two days and up to 5
     days late shall be applied to each late  order.  Subject to the  foregoing,
     Customer,  without  waiving any other legal  rights,  reserves the right to
     cancel  without  charge or to postpone  deliveries of any product  produced
     pursuant to the Agreement that is not received within seven (7) days of the
     required  delivery date for non rush orders and within five (5) days of the
     required  delivery  date for rush  orders,  or, for either rush or non rush
     orders,  to take an additional  discount of 1% for each  additional week of
     late delivery.  In the event of such  cancellation  or  postponement,  such
     product unit volume  shall be deemed a credit  against  Customer's  minimum
     Product  requirements  as provided in Sections 1.1 and 1.2  (calculated  in
     U.S. dollars based on the applicable  pricing  schedule).  Unless otherwise
     specified by Customer,  a partial delivery of not less than 50% of an order
     will be  considered  delivered on time as long as 90% of the order shall be
     delivered  within the next 24 hour period from the  scheduled and agreed to
     delivery date and the remaining 10% is delivered  within the  subsequent 24
     hour  period.  Except  as  expressly  contemplated  herein,  time is of the
     essence.

1.4  SPECIFICATIONS; PRODUCTION GUIDELINES AND PRODUCTION SCHEDULE. SCHEDULING.
     -------------------------------------------------------------------------

      (a)      The current standard specifications ("Production Guidelines") and
               lead times  ("Production  Schedule")  for the  manufacture of (i)
               Product are set forth in Schedule B and (ii)  Outsourced  Product
               are set forth in Schedule D. Customer reserves the right to alter
               product  specifications  at any  time  during  the  term  of this
               Agreement.  "Lead time" is defined as the time from the later of:
               (a) the date of the Customer  order (in the cases of  re-prints),
               (b) and/or the date of  acceptance  of the digital  file or final
               film proofs (on new or revised titles orders),  (c) the date that
               any  customer-supplied  materials have been delivered to Printer,
               or (d)  the  date  that  final  author's  alterations  have  been
               delivered  to  Printer,  to  the  date  that  the  product  is at
               dockside.

      (b)      Additional packaging and shipping  instructions will be indicated
               on individual purchase orders.

      (c)      Orders of product  hereunder  shall be by  purchase  order  only.
               Printer shall apply its best efforts to provide Customer,  at the
               same price as for standard lead time deliveries, up to 20% of its
               product print runs during each year of the term of this Agreement
               on an expedited  basis of no more than 50% of the  standard  lead
               time days for that  format as defined in  Schedules  B and D. The
               Customer understands that the request for "Rush" orders may


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               require  the  extension  of  delivery  time on  non-rush  orders.
               Extensions  may only be requested by the Printer in writing,  and
               such requests for extensions  shall be deemed to be accepted only
               upon receipt of Customer's permission in writing.

      (d)      In the event  Customer  cancels an order within 36 hours of press
               time,  Printer may invoice  Customer  for all out of pocket costs
               incurred by Printer  associated  with this order  (which shall be
               credited  against  a  re-order  if  applicable)  and the  cost of
               unutilized  Press  and  Bindery  time.  Printer  shall  take  all
               reasonable  efforts to obtain alternative uses for such Press and
               Bindery time.

      (e)      An order which is  partially  completed  and  cancelled or put on
               hold at the request of the  Customer  may be  invoiced  within 30
               days for work actually  performed by Printer with respect to such
               order.

1.5  PRICE; PRICE ADJUSTMENTS.
     ------------------------

      (a)      MANUFACTURING PRICES.

               Manufacturing prices for Product are listed in Schedule A hereto.
               Manufacturing   prices  for  Outsourced  Product  are  listed  in
               Schedule D hereto.  Unit prices for different  quantities will be
               subject to change using the make ready and run on costs listed in
               Schedules  A and D hereto.  Manufacturing  prices  for any format
               similar to those described in Schedules A or D hereto  (including
               without  limitation  formats  listed in Schedules A or D to which
               minor  alterations  and  adjustments  have been  made)  ("Similar
               Products") and changes to the gang quantity for formats listed in
               Schedules  A and D shall be  negotiated  by the  parties  in good
               faith, based upon the pricing contained in such Schedules for the
               format most  similar to the new  format.  Such  Similar  Products
               shall then be  included  in  Schedule A or D, as the case may be.
               Manufacturing  pricing  includes paper and all materials,  plates
               (conventional or CTP), make-readies and run cost for printing and
               binding,  and, with regard to Product,  packaging as described in
               Schedule A. Customer  shall have the right to require  Printer to
               package  any  purchase  order  quantity  in  any  combination  of
               minipack,  brick  pile  and  cartoned  at  no  additional  charge
               (providing that all materials used by the printer are of standard
               brown  kraft  paper and brown  corrugated  single wall boxes with
               printed  logo) Double  walled boxes and/or  specialty  paper wrap
               shall be  charged  at the cost of  material  plus  set-up  or die
               charges.  If  Customer  requests  Printer  to  provide  packaging
               services   materially   different  from  those  provided  for  in
               Schedules  A and  D,  and  such  services  need  to be  performed
               manually,  a charge of  US$18.50  per man hour will be applied to
               each such order. The following pricing will apply, subject to the
               provisions of subsection 1.5(b).


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      1.5.1    PREPARATION:
               -----------

      o        Prepress will be charged as set forth on Schedule F.

      o        Final  plate-ready  film  output  will be charged at *  per
               color per page based on customer supplied application files.

      o        Film mounting will be charged at * per color per page.

      o        Computer  to  Plate  file  processing  (preflight,   ripping  and
               trapping) will be charged at * per color per page.

      1.5.2    FULFILLMENT PRICES:
               ------------------

      STICKERING:

      Product  stickering will be provided on a job by job basis as requested on
      the  individual  purchase  order.  Customer  will be  charged  * per  unit
      inclusive of materials for in-line stickering and * per unit for any other
      stickering.

      1.5.3    ASSORTMENT PACKING & SHRINK-WRAPPING:
               ------------------------------------

      Pricing for any assortment packaging or shrink-wrapping  requirements will
      be agreed upon at time of purchase order issuance.

      1.5.4    CUSTOMER PICKUP:
               ---------------

      Product  and  Outsourced  Product will be packed  and staged for pickup by
      Customer's client per Customer's  shipping  instructions  at no additional
      charge.

      (b)      *


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      (c)      *

      (d)      *

      (e)      IMPROVEMENTS. If, during the term of this Agreement, improvements
               are  made in the  method  of  producing  any of the  work  herein
               included  by  the  invention  or   acquisition   of  improved  or
               supplemental equipment, by the discovery or development of new or
               improved process,  or of new materials,  and Printer and Customer
               mutually  agree  that the use of such  improved  or  supplemental
               equipment,  processes,  or materials would be advantageous,  then
               the parties shall  mutually agree on the nature and extent of the
               incorporation of said developments  into this Agreement.  Printer
               shall not  unreasonably  withhold such  technological  changes as
               long  as  such  changes  are  economically  advantageous  to both
               parties and Product prices  outlined in Schedule A and Outsourced
               Product  prices  outlined in Schedule D hereto are  appropriately
               adjusted.

      (f)      LEVEL LOADING DISCOUNTS.  Schedule C shall set forth the schedule
               of  discounts   which  Printer  shall  grant   Customer  for  the
               manufacture  of  incremental  volume of Product  during  non-peak
               periods. During the term of the Agreement,  Printer shall provide
               Customer  on or before  November  1st of each year a schedule  of
               non-peak periods throughout the coming calendar year during which
               the  non-peak  pricing  discounts  set forth at that  time  shall
               apply.  Customer  shall have right of first refusal for up to 25%
               of Printer's


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               maximum  printing and production  capacity during this period and
               shall  receive  such  discounts  with  respect  to any  order for
               Product  placed with Printer by Customer  for  delivery  during a
               non-peak period.

      (g)      *

      (h)      *


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1.6  PAYMENT. For the first two (2) years of the term of this Agreement, payment
     shall be on a net 30 days  basis  from  the  15th and 30th of the  previous
     month.  For the balance of the term the payment  terms shall be 2%/10 days,
     net 30 days  calculated  from the  date of the  consolidated  statement  of
     account.  Printer shall  invoice on a regular basis and Customer  shall pay
     all  invoices  issued  from the 1st to the 15th of each month no later than
     the 15th of the subsequent month and shall pay all invoices issued from the
     15th to the 31st of each month no later than the last day of the subsequent
     month.  Printer  shall send  Customer  consolidated  statements  of account
     identifying  invoices  outstanding  on the  15th  and  30th of each  month.
     Printer  shall submit all invoices and  consolidated  statements of account
     to:

                      Golden Books Publishing Company, Inc.
                      10101 Science Drive
                      Sturtevant, WI 53177

1.7  QUANTITY  VARIATIONS.  Billing for all quantities must agree with the total
     quantity  ordered  for such  title,  provided,  however,  that  billing for
     overruns and underruns is permitted but will be limited to +/- 5% for total
     quantity orders up to 50,000 and +/- 2% for total quantity orders in excess
     of 50,000. If a production  difficulty causes an underun of up to a maximum
     of 5% in the case of orders for quantities up to 50,000, and 2% in the case
     of orders for quantities over 50,000,  the Customer will permit the Printer
     to add the missing  volume to a future  re-print,  and will not require the
     Printer to reprint the missing volume until that time.

1.8  PROPRIETARY  DESIGN.  Printer  agrees  that it will not (at the  Sturtevant
     Facility or elsewhere)  produce for anyone  besides  Customer books similar
     to,  or  incorporating  any  of  the  distinguishing   characteristics  of,
     Customer's Little Golden Book(TM),  First Little Golden Book(TM), or Little
     Little Golden Book(TM). Such distinguishing  characteristics shall include,
     but not be limited to, the side  stitched  binding style and the foil spine
     employed  in the  production  of such  books,  as well as all  elements  of
     Customer's trade dress  incorporated  into such books.  Printer may request
     that Customer approve Printer's  utilization of such formats for work to be
     done for Books for Adults and may utilize such formats only upon  receiving
     Customer's  written  permission to do so, which permission shall be granted
     in Customer's sole discretion.


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1.9  ACQUISITION OF CUSTOMER OR ACQUISITION BY CUSTOMER In the event Customer is
     acquired  during  the  term  of  this  Agreement,   the  percentage  volume
     requirements  set  forth in  Section  1.1.1  hereof  shall not apply to any
     pre-existing  printing  requirements  of the  acquirer.  In the event  that
     during the term of this  Agreement,  the  Customer  acquires a company with
     similar  formats to those  outlined in this  Agreement  then the percentage
     volume  requirement  provisions  of this  Agreement  shall not apply to the
     incremental volume brought about by the acquisition but shall be subject to
     separate negotiations.

1.10 INVOICES.  Invoices  submitted  to  Customer by Printer  shall  contain the
     information contained in Schedule G.

1.11 FORECASTS.  Customer shall use commercially  reasonable  efforts to provide
     quarterly  forecasts to Printer  approximately  30 days before the start of
     each quarter, and monthly forecasts to Printer approximately 30 days before
     the start of the months of May, June, July, August, September,  October and
     November.  Such proceeds  shall not be deemed  "orders" under Section 1.1.1
     and Customer shall have no liability  whatsoever to Printer with respect to
     such forecasts.


                            2. ARTICLE II: MATERIALS
                               ---------------------

2.1  PRINTER SUPPLIED MATERIALS. Printer shall, at Customer's discretion, supply
     all  materials  and supplies  necessary to perform  this  Agreement,  at or
     exceeding quality  standards at inception.  Paper to be supplied by Printer
     shall  meet the  minimum  specifications  outlined  in  Schedule  E hereto.
     Printer shall supply all text stock and cover stock in accordance  with the
     requirements as outlined in Schedules A, B, D and E hereto.

2.2  CUSTOMER SUPPLIED MATERIALS.
     ---------------------------

     (a)   PAPER,  SEMI-FINISHED  MATERIALS AND COMPONENTS.  Customer shall have
     the  right  to  supply  its own  text  stock,  cover  stock,  semi-finished
     materials  and/or  components.  As  Printer  receives  stock on  Customer's
     behalf,  Printer shall forward the receiving slips to Customer.  If Printer
     discovers  damage to paper,  the damaged paper will be noted and identified
     and  stored   separately.   Printer   shall   contact   the   merchant/mill
     representative  and Customer so that the merchant/mill  representative  can
     initiate  any claims for mill  related  or paper  transportation  problems.
     Printer shall account for the paper  received from the  merchant/mill,  and
     shall submit to Customer a monthly report of paper received, paper received
     damaged,  paper consumed,  paper on hand and paper requirements,  with such
     paper requirements being inclusive of the manufacturing waste allowance for
     press work and binding. Any semi-finished  materials or components supplied
     by  Customer  will be supplied in such  quantities  so as to include  waste
     allowances.   Waste  allowances  for  paper,   semi-finished  materials  or
     components  will be based on the waste  allowances  which  would  have been
     provided by Printer had Printer been supplying such materials,


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     provided  further,  that such  waste  allowances  will be  consistent  with
     industry  standards.  Printer  will  report  actual and  allowed  component
     consumption for Customer supplied components on each invoice. Printer shall
     report all paper or stock received in damaged  condition to Customer within
     two (2) business  days from  discovery  of the damage.  Printer will report
     actual and allowed paper  consumption  for Customer  supplied paper on each
     invoice.  All over consumption of Customer  supplied paper will be credited
     to Customer directly on invoice at the price determined in Section 1.5. The
     value  (measured  at the  cost  determined  in  Section  1.5  if  possible,
     otherwise  at standard  cost) of any  Customer-supplied  materials  will be
     included for purposes of measuring  Customer's  compliance with the minimum
     volume  requirement,  as calculated in Section 1.2, even though Printer may
     not actually bill Customer for the value of the Customer supplied items.

     (b)   OTHER  MATERIALS.  Customer  shall  supply all film or digital  files
     pursuant to  Printer's  prior  specifications,  and if Customer so decides,
     Customer  shall  have the right to request  Printer  to produce  film at an
     additional cost as outlined in Subsection 1.4(a).

2.3  DELIVERY  OF  MATERIALS.  Customer  will  notify  Printer of the  scheduled
     delivery  dates and  specifications  for any  materials  it is supplying in
     accordance with Printer's published manufacturing schedule. In the event of
     any delay of the scheduled  delivery date in excess of 5 days,  Printer may
     invoice  Customer for all work done to date, and such work shall be subject
     to a storage fee of * per skid per week.


            3. ARTICLE III: REPRESENTATIONS AND WARRANTIES OF PRINTER
               ------------------------------------------------------

Printer represents and warrants to Customer as follows:

3.1  ORGANIZATION;  AUTHORITY.  Printer  is a  corporation  duly  organized  and
     validly  existing  under  the laws of  Canada  and has the full  power  and
     authority to own and operate its  properties and assets and to carry on its
     business as currently  conducted.  This Agreement has been duly authorized,
     executed  and  delivered  by Printer  and  constitutes  a valid and legally
     binding  obligation of Printer  enforceable  in  accordance  with its terms
     subject to bankruptcy,  insolvency,  fraudulent  transfer,  reorganization,
     moratorium and similar laws of general  applicability  affecting creditors'
     rights and general equity principles.

3.2  NON-CONTRAVENTION.   The  execution,   delivery  and  performance  of  this
     Agreement  will not result in a breach or violation of any of the terms and
     provisions of, or constitute a default under any statute, rule, regulation,
     or  order of any  governmental  agency  or body  having  jurisdiction  over
     Printer or its properties,  or any agreement or instrument to which Printer
     is a party or by which it is bound,  or the  articles of  incorporation  or
     by-laws of Printer.


     * Confidential treatment requested


                                       13

<PAGE>




            4. ARTICLE IV: REPRESENTATIONS AND WARRANTIES OF CUSTOMER
               ------------------------------------------------------

Customer represents and warrants to Printer as follows:

4.1  ORGANIZATION;  AUTHORITY.  Customer is a  corporation  duly  organized  and
     validly existing under the laws of the State of Delaware and has full power
     and authority to own and operate its  properties and assets and to carry on
     its  business  as  currently  conducted.   This  Agreement  has  been  duly
     authorized,  executed and delivered by Customer and constitutes a valid and
     legally binding  obligation of Customer  enforceable in accordance with its
     terms   subject   to   bankruptcy,    insolvency,    fraudulent   transfer,
     reorganization,  moratorium  and  similar  laws  of  general  applicability
     affecting creditors' rights and general equity principles.

4.2  NON-CONTRAVENTION.   The  execution,   delivery  and  performance  of  this
     Agreement  will not result in a breach or violation of any of the terms and
     provisions of, or constitute a default under any statute, rule, regulation,
     or  order of any  governmental  agency  or body  having  jurisdiction  over
     Customer  or its  properties,  or any  agreement  or  instrument  to  which
     Customer  is  a  party  or  by  which  it  is  bound,  or  the  article  of
     incorporation or by-laws of Customer.


                   5. ARTICLE V: RISK OF LOSS/TITLE/INSURANCE
                      ---------------------------------------

5.1  TITLE.  All  property  furnished  to Printer  by  Customer,  including  all
     intellectual property rights in all electronic files, shall remain the sole
     property of Customer. Printer shall use reasonable diligence to protect all
     Customer  property in its possession.  Printer shall not cause any Customer
     property in its possession to become subject to any liens or  encumbrances.
     During the term of this  Agreement  and  following  the  expiration of this
     Agreement,  and upon  Customer's  instructions,  Printer  shall  return  or
     transfer   Customer   property  to  Customer   in   accordance   with  such
     instructions.

     Title  to film  negatives,  positives,  electronic  images  and  any  other
     material  paid for by  Customer  and  furnished  by  Printer  shall pass to
     Customer upon  completion  of  manufacture  of such item.  Title to product
     shall  pass  from  Printer  to  Customer  at the time risk of loss for such
     product passes from Printer to Customer.

5.2  RISK OF LOSS.  Risk of loss of Customer  property in  Printer's  possession
     shall be borne by Printer and valued at actual  current  cost to  reproduce
     such  Customer  property.  Work in the library or other space  subleased by
     Customer  from Printer  shall not be deemed to be in Printer's  possession.
     Risk of loss of product  shall pass from Printer to Customer  upon delivery
     of such product to Customer in accordance with Section 1.3 hereof.


                                       14

<PAGE>



5.3  INSURANCE.  Printer shall obtain and maintain at its costs,  throughout the
     term of this Agreement and for a period of not less than twelve (12) months
     after  the  termination  of  this  Agreement,   a  commercial  general  and
     professional  liability  insurance policy,  including product liability and
     contractual  liability,  providing  protection  for  Customer and the other
     entities  indemnified  by  Printer  under the terms of  Article  VII hereof
     against damages, liabilities, costs and expenses, including reasonable fees
     of attorneys,  arising out of any claims,  demands or actions made by or on
     behalf of any person or persons,  firm or  corporation  and arising out of,
     related to, or connected  with product and (i) the  performance  of Printer
     under the terms of this  Agreement,  (ii) the failure of Printer to perform
     properly under the terms of this Agreement,  or (iii) personal injury to or
     death of any person or persons or damage to property.  Such insurance shall
     be written on an  "occurrence"  and not on a "claims made" basis,  and such
     policy  shall  have  a  combined  single  limit  amount  of not  less  than
     US$5,000,000. As proof of such insurance, Printer shall submit to Customer,
     as soon as possible  after this  Agreement is executed by the last party to
     sign, a certificate  of insurance  naming  Customer and the other  entities
     indemnified  under the terms of Article VII hereof as  additional  insureds
     thereunder and providing for not less than thirty (30) days' written notice
     to  Customer  in  the  event  of  termination,  cancellation,  or  material
     modification of such insurance.


         6. ARTICLE VI: GUARANTEE OF QUALITY/COMPLIANCE WITH STANDARDS
            ----------------------------------------------------------

6.1  GUARANTEE  OF  QUALITY.   Printer   warrants  the  printing,   binding  and
     manufacturing  of  product  hereunder  to be  done  in the  best  and  most
     workmanlike  manner and to conform to the highest  standards  applicable in
     the industry.  The Customer  warrants that all computer files generated and
     provided to Printer shall be free of known viruses and that computer  files
     provided to the Printer  shall be prepared in a  professional  manner so as
     not to impede  production flow and quality.  The Printer  warrants that all
     files  shall be  checked  in  advance  for known  viruses  and  checked  to
     determine  that all components are available to the Printer on the supplied
     disk.  If  components  are required by the Printer from the  Customer,  the
     Printer  shall  always offer the Customer the choice of repairing or adding
     missing  components,  before any added charges are  required.  In addition,
     Printer warrants that all product shall be (a) merchantable and fit for the
     intended purpose of Customer,  and (b) free from defects in workmanship and
     material.  The  warranties  of these  sections  shall be in addition to any
     other  warranties  provided  by law or given by  Printer  to  Customer.  If
     Printer's performance does not conform to industry standards, then Customer
     shall at its option pursue only one of the following rights:

      (a)      As promptly as  practicable,  but no later than ten (10) business
               days from the date  Customer  reports  such  defect  to  Printer,
               Printer  shall repair or replace  defective  product at Printer's
               cost,  unless the defective  product has arisen from a problem at
               the  Printer's   subcontractor  and  the   subcontractor   cannot
               alleviate the problem  within the 10 business day time period (in
               which case Customer shall choose option (b) or (c)), or


                                       15
<PAGE>



      (b)      Printer  shall have  another  party  manufacture  or repair  such
               product for Customer, and either:

               (i)  Printer   shall  credit   Customer  for  the  cost  of  such
                    third-party manufacture or repair of product if Customer has
                    already paid Printer for the defective product, or,

               (ii) Pay to Customer the  difference  for the cost Printer  would
                    have charged to Customer to manufacture  the product and the
                    cost  to  Customer  to  have  the  third-party  manufacturer
                    produce  the  product,  if  Customer  has not  already  paid
                    Printer for the defective product; or

     (c)       Printer shall credit  Customer for some or all of the cost of the
               product, in relation to the damage suffered to the product,  with
               such credit to be applied against the costs of the manufacture of
               this or future product.

      The  foregoing  rights  shall  be in  addition  to such  other  rights and
      remedies Customer may have at law or in equity.

6.2  COMPLIANCE WITH LAWS,  CUSTOMER  STANDARDS.  Printer covenants that it will
     comply  with  all  applicable  laws  and  regulations  in  performing  this
     Agreement,   including  but  not  limited  to,  those   pertaining  to  the
     manufacture,  pricing,  sale and  distribution  of  product.  Printer  also
     covenants that it will comply with all of Customer's  licensor and Customer
     quality  standards  as  indicated to Printer  beforehand,  including  those
     relating  to the use of child or  prison  labor  and  upon the  request  of
     Customer,  Printer will supply the necessary  documentation to substantiate
     such compliance.


                         7. ARTICLE VII: INDEMNIFICATION
                            ----------------------------

Printer agrees to defend or settle,  indemnify and hold Customer, its directors,
officers, employees and agents harmless from and against any and all third party
demands, liabilities, obligations, costs and expenses (including reasonable fees
of attorneys) incurred by Customer,  directly or indirectly,  as a result of (i)
any breach by Printer of any of its agreements,  representations,  or warranties
made under the terms of this  Agreement or under the terms of any purchase order
of  Customer,  (ii) any  personal  injury or  property  damage  caused by or the
responsibility of Printer, or (iii) any material unauthorized deletion or change
made by Printer to materials  supplied by Customer.  Customer  hereby  agrees to
notify Printer promptly of any such demand or claim.



                                       16

<PAGE>



                          8. ARTICLE VIII: TERMINATION
                             -------------------------

8.1  TERMINATION. This Agreement may be terminated:

      (a)      At any time by the mutual  written  agreement of both Printer and
               Customer;

      (b)      *

      (c)      *


     * Confidential treatment requested


                                       17
<PAGE>





     (d)      By Customer,  upon a continuing default by Printer for  failure to
              furnish proof of insurance within thirty (30) days of demand.

     In the event that this  Agreement  is  terminated  by Customer  pursuant to
     Section 8.1 (a), (c) or (d) (any such termination  being herein referred to
     as a  termination  for  "Cause"),  then all amounts of Preferred  Stock (as
     defined  in  the  Agreement)  and/or  subordinated  debt  into  which  such
     Preferred  Stock is or was  convertible  will remain due and  unaffected by
     such termination.

     In the event that this  Agreement  is  terminated  by Printer  pursuant  to
     Section  8.1(b),  or if this Agreement is terminated by Customer other than
     for Cause, in either case, within the first three years of the term hereof,
     the  ownership  of the funds  held in  escrow  under the terms of the Asset
     Purchase Agreement in favor of the Customer, shall transfer to the Printer,
     and the subordinated note or the preferred shares held by Customer,  as the
     case  may  be,  shall  be  deemed  to be  redeemed  (or in the  case of the
     subordinated  note,  canceled)  to the extent of the amount of gross profit
     the Printer anticipated earning under this Agreement for the balance of the
     Term,  which for  purposes  hereof  shall be deemed to be 20% of  Printer's
     gross  revenues,  based upon minimum volumes under Section 1.2 (the "Agreed
     Upon  Damages").  In the event that this Agreement is terminated by Printer
     pursuant to Section 8.1(b),  or if this Agreement is terminated by Customer
     other than for Cause,  in either  case,  after the first three years of the
     term  hereof,  the  subordinated  notes  or the  preferred  shares  held by
     Customer,  as the case may be, shall be deemed to be redeemed to the extent
     of the Agreed Upon  Damages.  In such case,  the  Preferred  Stock shall no
     longer be puttable,  all redemption of Preferred  Stock shall be suspended,
     all payments of subordinated debt into which such Preferred Stock is or was
     convertible  shall  be  suspended  and the  Printer  shall be  relieved  of
     completing  its  obligations   under  the  Techno  Program  and  under  the
     Digitalization  Program.  In the event the amount of Agreed Upon Damages is
     greater than the aggregate  Liquidation  Value of the  Preferred  Stock (as
     defined in the Asset Purchase  Agreement) and/or the subordinated debt into
     which such Preferred Stock is or was convertible,  such excess amount shall
     be due and payable in cash at such time.  Printer  acknowledges  and agrees
     that  the  remedies  provided  for in this  Section  8.1 are the  exclusive
     remedies to which  Printer  would be entitled in the event of a termination
     of this  Agreement  by Printer  pursuant  to Section  8.1(b) or by Customer
     other than for Cause.  Without  limiting the  generality  of the  preceding
     sentence,  Printer  shall not be entitled  hereunder  or  otherwise  to any
     consequential,  incidental,  punitive or other similar  damages;  provided,
     however,  that nothing in this Printing Services  Agreement shall affect in
     any manner whatsoever, Buyer's right to obtain


                                       18
<PAGE>



     any such  damages in respect of any cause of action  Buyer may have against
     Customer in respect of  Customer's  actions or duties  outside the scope of
     this Printing Services  Agreement,  the Agreement or any other agreement or
     transaction referred to therein.

     Any termination of this Agreement  pursuant to this Section 8.1 shall be in
     writing and a copy  thereof  shall be furnished to GECC or any other senior
     lender of Printer designated by it; provided,  however, that the failure to
     furnish  such  copy  shall  not  affect  in any  respect  the  validity  or
     effectiveness of such termination.

8.2  RIGHT TO PRINT  ELSEWHERE.  If,  two (2)  times  in any  six-month  period,
     Printer is unable to deliver  orders of the same  product to  Customer on a
     timely  basis  in  accordance   with  this  Agreement  and  the  production
     guidelines  set  forth in  Schedule  B or D  hereto,  and in each  instance
     Customer has met its  obligation  for  delivery of  materials  required for
     manufacturing in accordance with such production guidelines, Customer shall
     have the right to have all  product of such  format  printed  elsewhere  if
     Customer so chooses.  In such event, the value of any such Product shall be
     deducted from the minimum volume amount as calculated in Section 1.2.


                          9. ARTICLE IX: MISCELLANEOUS
                             -------------------------

9.1  CONSEQUENCES  OF  TERMINATION.  In the event of  termination,  all Customer
     property, materials and supplies on hand or in process of manufacture shall
     be immediately  returned or delivered to Customer (or to another party that
     Customer  designates to receive  such).  All account  balances  between the
     parties shall be settled. Subject to Section 9.8 hereof, either party shall
     have the right to pursue its remedies under law and equity.

9.2  PARTIES IN INTEREST;  ASSIGNMENT.  Subject to the terms of this  Agreement,
     this  Agreement  shall be  binding  upon and  inure to the  benefit  of the
     respective  parties and their successors and assigns;  provided,  that this
     Agreement may not be assigned by either party  without the written  consent
     of the other, which consent shall not be unreasonably  withheld or delayed.
     Either  party  shall have the right to assign the  Agreement,  without  the
     consent  of  the  other,  to a  parent  company,  subsidiary,  division  or
     affiliate or to an entity which purchases  substantially  all of the assets
     of such party, or its assignee,  or in connection with an acquisition by or
     merger with another company, provided, however, that regardless of any such
     assignment, Printer agrees that the work performed under this contract with
     regard to  Product  will  continue  to be  substantially  performed  at the
     Sturtevant  Facility  unless moved to another  plant with the prior written
     approval of the Customer, which approval shall not be unreasonably withheld
     or delayed.  Notwithstanding  that work will be substantially  performed at
     the  Surtevant  Facility,  Printer  shall  immediately  notify  Customer in
     writing  when any work with  regard to  product  is  performed  under  this
     Agreement at a facility other than the Sturtevant Facility.



                                       19
<PAGE>



9.3  ENTIRE  AGREEMENT;   AMENDMENT.   This  Agreement   represents  the  entire
     understanding  between  Printer and  Customer  with  respect to the subject
     matter hereof and supersedes all prior agreements and  understandings  oral
     or written with respect thereto.  This Agreement may be modified or amended
     only by a written agreement signed by both parties.

9.4  GOVERNING  LAW.  This  Agreement  shall be  governed  by and  construed  in
     accordance with the laws of the State of New York.

9.5  HEADINGS. The paragraph headings in this Agreement are for convenience only
     and shall not affect the construction of this Agreement.

9.6  NO JOINT VENTURE.  Nothing in this Agreement shall be construed as creating
     an  agency,  partnership,   joint  venture  or  any  other  form  of  legal
     association between Printer and Customer.

9.7  NOTICE.  All  notices  hereunder  shall be deemed to have been  given if in
     writing and if  personally  delivered or if sent by registered or certified
     mail (postage prepaid),  or if sent by telecopier (provided that receipt of
     telecopy is promptly  confirmed by  telephone) to the person at the address
     set forth below, or to such other person or address as may be designated in
     writing from time to time:

If to Printer:

               Artech Capital Corporation
               Montreal, Quebec
               Canada ______________

               Attn:    David Watson
               Telecopier:

with a copy to:

               Sproule Castonguay Pollack, senc
               1002 Sherbrooke Street West
               Suite 2300
               Montreal, Quebec
               Canada  H3A 3R4

               Attn:    Me. Jean T. Castonguay
               Telecopier:  (514) 285-8050



                                       20
<PAGE>



With a copy to:

               General Electric Capital Corporation
               10 South LaSalle Street
               Suite 2800
               Chicago, Illinois 60603

               Attn:    Artech Printing Inc. Account Manager


If to Customer:

               Golden Books Publishing Company, Inc.
               888 Seventh Avenue
               New York, N.Y. 10106

               Attn:    Philip Galanes
               Telecopier:  212.547.6771

With copies to:

               Golden Books Family Entertainment, Inc.
               888 Seventh Avenue
               New York, N.Y. 10106

               Attn:    Ruth Camooso
               Attn:    Philip Galanes
               Telecopier: 212.547.6771

               Proskauer Rose LLP
               1585 Broadway
               New York, NY 10036

               Attn:  Robert A. Cantone, Esq.
               Telecopier: 212.969.2900

     Notice  shall be  deemed  to have  been  given  as of the  date  personally
     delivered or sent by telecopy (with  telephonic  confirmation) or as of the
     fifth (5th) business day after being sent by registered or certified mail.

9.8  ARBITRATION.  All  disputes  arising  out  of or in  connection  with  this
     Agreement or any  transaction  hereunder shall be finally settled under the
     Commercial  Arbitration Rules of the American Arbitration  Association then
     in effect by an  arbitrator  chosen from such  association's  blind pool of
     arbitrators with significant  knowledge and experience in the field of book
     publishing  who shall be  appointed  in  accordance  with such  Rules.  The
     arbitrator's award shall be final and binding. Judgment upon the


                                       21
<PAGE>



     award  rendered  may be entered in any court having  jurisdiction  over the
     party against which the award is rendered. The parties expressly consent to
     the  jurisdiction  of the federal and state courts situated in the State of
     New York for the  purpose  of  enforcing  any  arbitration  award  rendered
     pursuant to this paragraph.  The  arbitration  shall take place in New York
     City or such other place as the parties may agree.  The  arbitration  shall
     include (i) a provision that the prevailing party in such arbitration shall
     recover its costs of the arbitration and reasonable attorneys fees from the
     other party or parties, and (ii) the amount of such fees and costs.

9.9  SEVERABILITY. The enforceability, invalidity or illegality of any provision
     of this Agreement shall not affect or impair the  enforceability,  validity
     or legality of any other provision;  provided, that should any provision of
     this  Agreement  be held to be  invalid,  illegal or  unenforceable  in any
     respect, the parties will use all reasonable efforts to substitute a valid,
     legal and enforceable  provision which, insofar as practicable,  implements
     the purpose and intent of the invalid, illegal and unenforceable provision.
     To the extent  permitted by applicable law, each party waives any provision
     of law, which renders any provision of this Agreement  invalid,  illegal or
     unenforceable in any respect.

9.10 WAIVER.  Any provision of or default under this  Agreement may be waived if
     it is in  written  form  signed by the  party  against  whom the  waiver is
     effective.  No waiver by a party of any  provision of or default under this
     Agreement  shall be  deemed to be a waiver  of any  other  provision  of or
     default under this Agreement, nor shall any delay or omission of a party to
     exercise any right hereunder.

9.11 CONFIDENTIALITY.  Each of the parties hereto  covenants and agrees that the
     terms,  provisions  and  conditions  of this  Agreement  are  confidential,
     including,  but  not  limited  to  Customer  product,   materials,   ideas,
     information  and  concepts,   and  Printer's   pricing   formulations   and
     manufacturing  process and  techniques,  which  shall be kept in  strictest
     confidence  by  the  parties   hereto  and  their   respective   employees,
     subcontractors,  agents,  sub-agents  and  distributors,  and  shall not be
     disclosed to any person  except in  conformity  with an order of a court of
     competent jurisdiction or as may otherwise be required by law.

9.12 INTERVENTION.  Golden Books Family Entertainment, Inc. intervenes hereto to
     take  knowledge of the terms and conditions set forth herein and to declare
     itself  bound to the  Printer by all of the  obligations  and duties of the
     Customer  hereunder,  such that all rights  and  recourses  of the  Printer
     hereunder against the Customer may be exercised against Golden Books Family
     Entertainment, Inc.




                                  [END OF TEXT]


                                       22

<PAGE>



IN WITNESS WHEREOF,  the parties have signed this Agreement as of the date first
stated above.

  ARTECH CAPITAL CORPORATION             GOLDEN BOOKS PUBLISHING COMPANY, INC.

  By:                                    By:

    /s/                                         /s/
  -------------------------------             -------------------------------
  DAVID WATSON,                               Name:
  President and Chief Executive Officer       Title:


                                         GOLDEN BOOKS FAMILY ENTERTAINMENT, INC.


                                         By:    /s/
                                              -------------------------------
                                              Name:
                                              Title:









                 [SIGNATURE PAGE TO PRINTING SERVICES AGREEMENT]


                                       23
<PAGE>


Golden Books:  Schedule A


[Confidential Treatment Requested]



                                       24
<PAGE>


Golden Books:  Schedule B


[Confidential Treatment Requested]



                                       25
<PAGE>


Golden Books:  Schedule C


[Confidential Treatment Requested]



                                       26
<PAGE>


Golden Books:  Schedule D


[Confidential Treatment Requested]



                                       27
<PAGE>

Golden Books:  Schedule E


[Confidential Treatment Requested]



                                       28
<PAGE>

Golden Books:  Schedule F


[Confidential Treatment Requested]



                                       29
<PAGE>

GOLDEN BOOKS - SCHEDULE G - INVOICING


All invoices  shall be generated  and  forwarded to Golden Books within 48 hours
from completion of shipment.

All invoicing shall include the following:

      o        Golden Books Purchase Order Number/PO date
      o        Item number
      o        Title Name

      o        Quantity ordered
      o        Quantity shipped

      o        Prep charges
      o        Plate charges

      o        Cover Makeready charges
      o        Cover run charges (unit cost and total cost)

      o        Text press and binding makeready
      o        Text press and binding run costs (unit cost and total cost)

      o        Paper makeready charges
      o        Paper run charges

      o        Cartoning charges (unit and total cost) -if applicable
      o        Stickering charges (unit and total cost) -if applicable

      o        all other miscellaneous charges itemized

      o        Paper stock used -grade name and basis weight
      o        Paper consumption makeready (#'s)
      o        Paper consumption run (#'s)
      o        Paper CWT cost

      o        Dies