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                                                                     EXHIBIT 4.5

                                PARENT GUARANTY


     THIS GUARANTY AGREEMENT (this "Guaranty"), dated as of the 6th day of
October, 1997 (this "Guaranty"), is made between (a) PETERSEN HOLDINGS, L.L.C.,
a Delaware limited liability company ("Holdings"), and THE PETERSEN COMPANIES,
INC., a Delaware corporation ("Parent"; each of Holdings and Parent, a
"Guarantor," and collectively, the "Guarantors"), and (b) FIRST UNION NATIONAL
BANK, as administrative agent for the banks and other financial institutions
(collectively, the "Lenders") party to the Credit Agreement referred to below
(in such capacity, the "Administrative Agent"), for the benefit of the
Guaranteed Parties (as hereinafter defined).  Capitalized terms used herein
without definition shall have the meanings given to them in the Credit Agreement
referred to below.


                                    RECITALS

     A.   Parent, Petersen Publishing Company, L.L.C., a Delaware limited
liability company (the "Borrower"), the Lenders, First Union National Bank, as
Administrative Agent, and CIBC Inc., as Documentation Agent, are parties to a
Credit Agreement, dated as of October 6, 1997 (as amended, modified or
supplemented from time to time, the "Credit Agreement"), providing for the
availability of certain credit facilities to the Borrower upon the terms and
subject to the conditions set forth therein. The Guarantors own all of the
membership interests in the Borrower.

     B.   It is a condition to the extension of credit to the Borrower under the
Credit Agreement that each Guarantor shall have agreed, by executing and
delivering this Guaranty, to guarantee to the Guaranteed Parties the payment in
full of the Guaranteed Obligations (as hereinafter defined).  The Guaranteed
Parties are relying on this Guaranty in their decision to extend credit to the
Borrower under the Credit Agreement, and would not enter into the Credit
Agreement without this Guaranty.

     C.   The Guarantors will obtain benefits as a result of the extension of
credit to the Borrower under the Credit Agreement, which benefits are hereby
acknowledged, and, accordingly, desire to execute and deliver this Guaranty.


                             STATEMENT OF AGREEMENT

     NOW, THEREFORE, in consideration of the foregoing and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, to induce the Guaranteed Parties to enter into the Credit
Agreement and to induce the Lenders to extend credit to the Borrower thereunder,
each Guarantor hereby agrees as follows:

     1.   Guaranty.  (a)  Each Guarantor hereby irrevocably, absolutely and
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unconditionally, and jointly and severally:

             (i) guarantees to the Lenders (including the Issuing Lender and the
     Swingline Lender in their capacities as such, and including any Lender in
     its capacity as a counterparty to any Interest Rate Protection Agreement
     with the Borrower), the Documentation Agent and the Administrative Agent
     (collectively, the "Guaranteed Parties") the full and prompt 
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     payment, at any time and from time to time as and when due (whether at the
     stated maturity, by acceleration or otherwise), of all Obligations of the
     Borrower under the Credit Agreement and the other Credit Documents,
     including, without limitation, all principal of and interest on the Loans,
     all Reimbursement Obligations in respect of Letters of Credit, all fees,
     expenses, indemnities and other amounts payable by the Borrower under the
     Credit Agreement or any other Credit Document (including interest accruing
     after the filing of a petition or commencement of a case by or with respect
     to the Borrower seeking relief under any applicable federal and state laws
     pertaining to bankruptcy, reorganization, arrangement, moratorium,
     readjustment of debts, dissolution, liquidation or other debtor relief,
     specifically including, without limitation, the Bankruptcy Code and any
     fraudulent transfer and fraudulent conveyance laws (collectively,
     "Insolvency Laws"), whether or not the claim for such interest is allowed
     in such proceeding), all obligations of the Borrower to any Lender under
     any Interest Rate Protection Agreement, and all Obligations that, but for
     the operation of the automatic stay under Section 362(a) of the Bankruptcy
     Code, would become due, in each case whether now existing or hereafter
     created or arising and whether direct or indirect, absolute or contingent,
     due or to become due (all liabilities and obligations described in this
     clause (i), collectively, the "Guaranteed Obligations"); and

             (ii) agrees to pay or reimburse upon demand all reasonable costs
     and expenses (including, without limitation, reasonable attorneys' fees and
     expenses) incurred or paid by (y) any Guaranteed Party in connection with
     any suit, action or proceeding to enforce or protect any rights of the
     Guaranteed Parties hereunder and (z) the Administrative Agent in connection
     with any amendment, modification or waiver hereof or consent pursuant
     hereto (all liabilities and obligations described in this clause (ii),
     collectively, the "Other Obligations"; and the Other Obligations, together
     with the Guaranteed Obligations, the "Total Obligations").

     (b) The guaranty of each Guarantor set forth in this SECTION 1 is a
guaranty of payment as a primary obligor, and not a guaranty of collection.

     2.   Guaranty Absolute.  Each Guarantor agrees that its obligations
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hereunder are irrevocable, absolute and unconditional, are independent of the
Guaranteed Obligations and any Collateral or other security therefor or other
guaranty or liability in respect thereof, whether given by such Guarantor or any
other Person, and (to the full extent permitted by applicable law) shall not be
discharged, limited or otherwise affected by reason of any of the following,
whether or not such Guarantor has notice or knowledge thereof:

             (i) any change in the time, manner or place of payment of, or in
     any other term of, any Guaranteed Obligations or any guaranty or other
     liability in respect thereof, or any amendment, modification or supplement
     to, restatement of, or consent to any rescission or waiver of or departure
     from,  any provisions of the Credit Agreement, any other Credit Document or
     any agreement or instrument delivered pursuant to any of the foregoing;

             (ii) the invalidity or unenforceability of any Guaranteed
     Obligations, any guaranty or other liability in respect thereof or any
     provisions of the Credit Agreement, any other Credit Document or any
     agreement or instrument delivered pursuant to any of the foregoing;

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             (iii) the release of either Guarantor hereunder or the taking,
     acceptance or release of other guarantees of any Guaranteed Obligations or
     additional Collateral or other security for any Guaranteed Obligations or
     for any guaranty or other liability in respect thereof;

             (iv)  any renewal, extension, increase, decrease, release,
     discharge, modification, settlement, compromise or other action or inaction
     in respect of any Guaranteed Obligations or any guaranty or other liability
     in respect thereof (other than satisfaction of the Termination Requirements
     (as hereinafter defined)), including any acceptance or refusal of any offer
     or performance with respect to the same or the subordination of the same to
     the payment of any other obligations;

             (v)   any agreement not to pursue or enforce or any failure to
     pursue or enforce (whether voluntarily or involuntarily as a result of
     operation of law, court order or otherwise) any right or remedy in respect
     of any Guaranteed Obligations, any guaranty or other liability in respect
     thereof or any Collateral or other security for any of the foregoing; any
     sale, exchange, release, substitution, compromise or other action in
     respect of any such Collateral or other security; or any failure to create,
     protect, perfect, secure, insure, continue or maintain any Liens in any
     such Collateral or other security;

             (vi) the exercise of any right or remedy available under the Credit
     Documents, at law, in equity or otherwise in respect of any Collateral or
     other security for any Guaranteed Obligations or for any guaranty or other
     liability in respect thereof, in any order and by any manner thereby
     permitted, including, without limitation, foreclosure on any such
     Collateral or other security by any manner of sale thereby permitted,
     whether or not every aspect of such sale is commercially reasonable;

             (vii) any bankruptcy, reorganization, arrangement, liquidation,
     insolvency, dissolution, termination, reorganization or like change in the
     corporate structure or existence of the Borrower or any other Person
     directly or indirectly liable for any Guaranteed Obligations (it being
     understood and agreed that, as between each Guarantor, on the one hand, and
     the Guaranteed Parties, on the other hand, (a) the maturity of the
     Guaranteed Obligations may be accelerated as provided in the Credit
     Agreement for the purposes of such Guarantor's guaranty herein,
     notwithstanding any stay, injunction or other prohibition preventing such
     acceleration in respect of the Obligations guaranteed hereby, and (b) in
     the event of any declaration of acceleration of such Obligations as
     provided in the Credit Agreement, such Obligations (whether or not due and
     payable) shall forthwith become due and payable in full by such Guarantor
     for purposes of this Guaranty);

             (viii) any manner of application of any payments by or amounts
     received or collected from any Person, by whomsoever paid and howsoever
     realized, whether in reduction of any Guaranteed Obligations or any other
     obligations of the Borrower or any other Person directly or indirectly
     liable for any Guaranteed Obligations, regardless of what Guaranteed
     Obligations may remain unpaid after any such application; or

             (ix)  any other circumstance that might otherwise constitute a
     legal or equitable discharge of, or a defense, set-off or counterclaim
     available to, the Borrower, either Guarantor or a surety or guarantor
     generally, other than the occurrence of all of the following: (x) the
     payment in full of the Total Obligations (other than indemnity obligations

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     not then due and payable and that survive termination of the Credit
     Documents), (y) the termination or expiration of all Letters of Credit
     under the Credit Agreement and (z) the termination of the Commitments under
     the Credit Agreement (the events in clauses (x), (y) and (z) above,
     collectively, the "Termination Requirements").

     3.   Waivers.  Each Guarantor hereby knowingly, voluntarily and expressly
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waives to the full extent permitted by applicable law:

             (i)   presentment, demand for payment, demand for performance,
     protest and notice of any other kind, including, without limitation, notice
     of nonpayment or other nonperformance (including notice of default under
     any Credit Document with respect to any Guaranteed Obligations), protest,
     dishonor, acceptance hereof, extension of additional credit to the Borrower
     and of any of the matters referred to in SECTION 2 and of any rights to
     consent thereto;

             (ii)  any right to require the Guaranteed Parties or any of them,
     as a condition of payment or performance by the Guarantors hereunder, to
     proceed against, or to exhaust or have resort to any Collateral or other
     security from or any deposit balance or other credit in favor of, the
     Borrower or any other Person directly or indirectly liable for any
     Guaranteed Obligations, or to pursue any other remedy or enforce any other
     right; and any other defense based on an election of remedies with respect
     to any Collateral or other security for any Guaranteed Obligations or for
     any guaranty or other liability in respect thereof, notwithstanding that
     any such election (including any failure to pursue or enforce any rights or
     remedies) may impair or extinguish any right of indemnification,
     contribution, reimbursement or subrogation or other right or remedy of
     either Guarantor against the Borrower or any other Person directly or
     indirectly liable for any Guaranteed Obligations or any such Collateral or
     other security; and, without limiting the generality of the foregoing, each
     Guarantor hereby specifically waives the benefits of Sections 26-7 through
     26-9, inclusive, of the General Statutes of North Carolina, as amended from
     time to time, and any similar statute or law of any other jurisdiction, as
     the same may be amended from time to time;

             (iii) any right or defense based on or arising by reason of any
     right or defense of the Borrower or any other Person, including, without
     limitation, any defense based on or arising from a lack of authority or
     other disability of the Borrower or any other Person, the invalidity or
     unenforceability of any Guaranteed Obligations, any Collateral or other
     security therefor or any Credit Document or other agreement or instrument
     delivered pursuant thereto, or the cessation of the liability of the
     Borrower for any reason other than the satisfaction of the Termination
     Requirements;

             (iv)  any defense based on the acts or omissions of any Guaranteed
     Party in the administration of the Guaranteed Obligations, any guaranty or
     other liability in respect thereof or any Collateral or other security for
     any of the foregoing, and promptness, diligence or any requirement that any
     Guaranteed Party create, protect, perfect, secure, insure, continue or
     maintain any Liens in any such Collateral or other security;

             (v)   any right to assert against any Guaranteed Party, as a
     defense, counterclaim, crossclaim or set-off, any defense, counterclaim,
     claim, right of recoupment or set-off that it 

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     may at any time have against any Guaranteed Party (including, without
     limitation, failure of consideration, statute of limitations, payment,
     accord and satisfaction and usury), other than compulsory counterclaims;
     and

             (vi) any defense based on or afforded by any applicable law that
     limits the liability of or exonerates guarantors or sureties or that may in
     any other way conflict with the terms of this Guaranty.

     4.   Waiver of Subrogation; Subordination.  Each Guarantor hereby
          ------------------------------------                        
knowingly, voluntarily and expressly waives, until satisfaction of the
Termination Requirements, all claims and rights that it may have against the
Borrower at any time as a result of any payment made under or in connection with
this Guaranty or the performance or enforcement hereof, including all rights of
subrogation to the rights of any Guaranteed Party against the Borrower, all
rights of indemnity, contribution or reimbursement against the Borrower, all
rights to enforce any remedies of any Guaranteed Party against the Borrower, and
any benefit of, and any right to participate in, any Collateral or other
security held by any Guaranteed Party to secure payment of the Guaranteed
Obligations, in each case whether such claims or rights arise by contract,
statute (including, without limitation, the Bankruptcy Code), common law or
otherwise. Each Guarantor agrees that all indebtedness and other obligations,
whether now or hereafter existing, of the Borrower to such Guarantor, including,
without limitation, any such indebtedness in any proceeding under the Bankruptcy
Code and any intercompany receivables, together with any interest thereon, shall
be, and hereby are, subordinated and made junior in right of payment to the
Total Obligations.  Each Guarantor agrees further that if any amount shall be
paid to or any distribution received by such Guarantor (i) on account of any
such indebtedness at any time after the occurrence and during the continuance of
an Event of Default, or (ii) on account of any such rights of subrogation,
indemnity, contribution or reimbursement at any time prior to the satisfaction
of the Termination Requirements, such amount or distribution shall be deemed to
have been received and to be held in trust for the benefit of the Guaranteed
Parties, and shall forthwith be delivered to the Administrative Agent in the
form received (with any necessary endorsements in the case of written
instruments), to be applied against the Guaranteed Obligations, whether or not
matured, in accordance with the terms of the applicable Credit Documents and
without in any way discharging, limiting or otherwise affecting the liability of
such Guarantor under any other provision of this Guaranty.

     5.   Representations and Warranties.  Each Guarantor represents and
          ------------------------------                                
warrants to the Guaranteed Parties as follows:

     (a) Such Guarantor (i) is a limited liability company or corporation duly
organized, validly existing and in good standing under the laws of the
jurisdiction of its organization, (ii) has the full limited liability company or
corporate power and authority to execute, deliver and perform this Guaranty and
the other Credit Documents to which it is or will be a party, to own and hold
its property and to engage in its business as presently conducted, and (iii) is
duly qualified to do business as a foreign limited liability company or
corporation and is in good standing in each jurisdiction where the nature of its
business or the ownership of its properties requires it to be so qualified,
except where the failure to be so qualified could not, individually or in the
aggregate, be reasonably expected to have a Material Adverse Effect.

     (b) Such Guarantor has taken, or on the Closing Date will have taken, all
necessary limited liability company or corporate action to execute, deliver and
perform this Guaranty and each 

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of the other Credit Documents to which it is or will be a party, and has, or on
the Closing Date (or any later date of execution and delivery) will have,
validly executed and delivered this Guaranty and each of the other Credit
Documents to which it is or will be a party. This Guaranty constitutes, and upon
execution and delivery thereof each of such other Credit Documents will
constitute, the legal, valid and binding obligation of such Guarantor,
enforceable against it in accordance with its terms, except as enforceability
may be limited by bankruptcy, insolvency, reorganization, moratorium or other
similar laws affecting creditors' rights generally or by general equitable
principles or principles of good faith and fair dealing.

     (c) The execution, delivery and performance by such Guarantor of this
Guaranty and each of the other Credit Documents to which it is or will be a
party, compliance by it with the terms hereof and thereof, and the consummation
of the Transactions, do not and will not (i) violate any provision of its
articles of organization, certificate of incorporation, operating agreement or
bylaws, as applicable, or contravene any other Requirement of Law applicable to
it, (ii) conflict with, result in a breach of or constitute (with notice, lapse
of time or both) a default under any indenture, agreement or other instrument to
which it is a party, by which it or any of its properties is bound or to which
it is subject, (iii) require any approval of its stockholders or members or any
approval or consent of any Person under any agreement to which it is a party,
except for such approvals or consents which will be obtained on or before the
Closing Date and disclosed in writing to the Lenders or such approvals or
consents the failure of which to obtain could not reasonably be expected, singly
or in the aggregate, to have a Material Adverse Effect, or (iv) except for the
Liens granted pursuant to the Security Documents, result in or require the
creation or imposition of any Lien upon any of its properties or assets.

     (d) No consent, approval, authorization or other action by, notice to, or
registration or filing with, any Governmental Authority or other Person is or
will be required as a condition to or otherwise in connection with the due
execution, delivery and performance by such Guarantor of this Guaranty or any of
the other Credit Documents to which it is or will be a party or the legality,
validity or enforceability hereof or thereof, other than (i) consents,
authorizations and filings in connection with the Petersen Acquisition that have
been (or on or prior to the Closing Date will have been) made or obtained and
that are (or on the Closing Date will be) in full force and effect, which
consents, authorizations and filings are listed on SCHEDULE 5.4 to the Credit
Agreement, and (ii) filings of Uniform Commercial Code financing statements and
other instruments and actions necessary to perfect the Liens created by the
Security Documents.

     (e) There are no actions, investigations, suits or proceedings pending or,
to the knowledge of such Guarantor (after due investigation) threatened, at law,
in equity or in arbitration, before any court, other Governmental Authority or
other Person, (i) against or affecting such Guarantor or any of its properties
that could, if adversely determined, be reasonably expected to have a Material
Adverse Effect, or (ii) with respect to this Guaranty, any of the other Credit
Documents or any of the Transactions.

     (f) All representations and warranties contained in the Credit Agreement or
any of the other Credit Documents that relate to such Guarantor are true and
correct in all material respects.

     (g) Such Guarantor has been provided with a true and complete copy of the
executed Credit Agreement, as in effect as of the date hereof, and its principal
officers are familiar with the contents thereof, particularly insofar as the
contents thereof relate or apply to such Guarantor.

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     6.   Financial Condition of the Borrower.  Each Guarantor represents that
          -----------------------------------                                 
it has knowledge of the Borrower's financial condition and affairs and that it
has adequate means to obtain from the Borrower on an ongoing basis information
relating thereto and to the Borrower's ability to pay and perform the Guaranteed
Obligations, and agrees to assume the responsibility for keeping, and to keep,
so informed for so long as this Guaranty is in effect with respect to such
Guarantor.  Each Guarantor agrees that the Guaranteed Parties shall have no
obligation to investigate the financial condition or affairs of the Borrower for
the benefit of either Guarantor nor to advise either Guarantor of any fact
respecting, or any change in, the financial condition or affairs of the Borrower
that might become known to any Guaranteed Party at any time, whether or not such
Guaranteed Party knows or believes or has reason to know or believe that any
such fact or change is unknown to either Guarantor, or might (or does)
materially increase the risk of either Guarantor as guarantor, or might (or
would) affect the willingness of either Guarantor to continue as a guarantor of
the Guaranteed Obligations.

     7.   Payments; Application; Set-Off.  (a)  Each Guarantor agrees that, upon
          ------------------------------                                        
the failure of the Borrower to pay any Guaranteed Obligations when and as the
same shall become due (whether at the stated maturity, by acceleration or
otherwise), and without limitation of any other right or remedy that any
Guaranteed Party may have at law, in equity or otherwise against such Guarantor,
such Guarantor will forthwith pay or cause to be paid to the Administrative
Agent, for the benefit of the Guaranteed Parties, an amount equal to the amount
of the Guaranteed Obligations then due and owing as aforesaid.

     (b) All payments made by each Guarantor hereunder will be made in Dollars
to the Administrative Agent, without set-off, counterclaim or other defense and,
in accordance with SECTION 2.17 of the Credit Agreement, free and clear of and
without deduction for any Taxes, each Guarantor hereby agreeing to comply with
and be bound by the provisions of SECTION 2.17 of the Credit Agreement in
respect of all payments made by it hereunder and the provisions of which Section
are hereby incorporated into and made a part of this Guaranty by this reference
as if set forth herein at length.

     (c) All payments made hereunder shall be applied upon receipt as follows:

             (i)   first, to the payment of all Other Obligations owing to the
     Administrative Agent;

             (ii)  second, after payment in full of the amounts specified in
     clause (i) above, to the ratable payment of all other Total Obligations
     owing to the Guaranteed Parties; and

             (iii) third, after payment in full of the amounts specified in
     clauses (i) and (ii) above, and following the termination of this Guaranty,
     to the Guarantors or any other Person lawfully entitled to receive such
     surplus.

     (d) For purposes of applying amounts in accordance with this Section, the
Administrative Agent shall be entitled to rely upon any Guaranteed Party that
has entered into an Interest Rate Protection Agreement with the Borrower for a
determination (which such Guaranteed Party agrees to provide or cause to be
provided upon request of the Administrative Agent) of the outstanding Guaranteed
Obligations owed to such Guaranteed Party under any such Interest Rate
Protection Agreement.  Unless it has actual knowledge (including by way of
written notice from any such 

                                       7
<PAGE>
 
Guaranteed Party) to the contrary, the Administrative Agent, in acting
hereunder, shall be entitled to assume that no Interest Rate Protection
Agreements or Obligations in respect thereof are in existence between any
Guaranteed Party and the Borrower.

     (e) The Guarantors shall remain jointly and severally liable to the extent
of any deficiency between the amount of all payments made hereunder and the
aggregate amount of the sums referred to in clauses (i) and (ii) of subsection
(c) above.

     (f) In addition to all other rights and remedies available under the Credit
Documents or applicable law or otherwise, upon and at any time after the
occurrence and during the continuance of any Event of Default, each Guaranteed
Party may, and is hereby authorized by each Guarantor, at any such time and from
time to time, to the fullest extent permitted by applicable law, without
presentment, demand, protest or other notice of any kind, all of which are
hereby knowingly and expressly waived by each Guarantor, to set off and to apply
any and all deposits (general or special, time or demand, provisional or final)
and any other property at any time held (including at any branches or agencies,
wherever located), and any other indebtedness at any time owing, by such
Guaranteed Party to or for the credit or the account of such Guarantor against
any or all of the obligations of such Guarantor to such Guaranteed Party
hereunder now or hereafter existing, whether or not such obligations may be
contingent or unmatured, each Guarantor hereby granting to each Guaranteed Party
a continuing security interest in and Lien upon all such deposits and other
property as security for such obligations. Each Guaranteed Party agrees to
notify any affected Guarantor promptly after any such set-off and application;
provided, however, that the failure to give such notice shall not affect the
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validity of such set-off and application.

     8.   Enforcement.  The Guaranteed Parties agree that, except as provided in
          -----------                                                           
SECTION 7(F), this Guaranty may be enforced only by the Administrative Agent,
acting upon the instructions or with the consent of the Required Lenders as
provided for in the Credit Agreement, and that no Guaranteed Party shall have
any right individually to enforce or seek to enforce this Guaranty or to realize
upon any Collateral or other security given to secure the payment and
performance of the Guarantors' obligations hereunder.  The obligations of each
Guarantor hereunder are independent of the Guaranteed Obligations, and a
separate action or actions may be brought against either Guarantor whether or
not action is brought against the Borrower or the other Guarantor and whether or
not the Borrower or the other Guarantor is joined in any such action.  Each
Guarantor agrees that to the extent all or part of any payment of the Guaranteed
Obligations made by any Person is subsequently invalidated, declared to be
fraudulent or preferential, set aside or required to be repaid by or on behalf
of any Guaranteed Party to a trustee, receiver or any other party under any
Insolvency Laws (the amount of any such payment, a "Reclaimed Amount"), then, to
the extent of such Reclaimed Amount, this Guaranty shall continue in full force
and effect or be revived and reinstated, as the case may be, as to the
Guaranteed Obligations intended to be satisfied as if such payment had not been
received; and each Guarantor acknowledges that the term "Guaranteed Obligations"
includes all Reclaimed Amounts that may arise from time to time.
Notwithstanding any other provisions contained herein or in any other Credit
Document, no provision of this Guaranty shall require or permit the collection
from either Guarantor of interest in excess of the maximum rate or amount that
such Guarantor may be required or permitted to pay pursuant to applicable law.

     9.   Amendments, Waivers, etc.  No amendment, modification, waiver,
          ------------------------                                      
discharge or termination of, or consent to any departure by either Guarantor
from, any provision of this Guaranty, shall be effective unless in a writing
executed and delivered in accordance with SECTION 11.6 of the 

                                       8
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Credit Agreement, and then the same shall be effective only in the specific
instance and for the specific purpose for which given.

     10.  Continuing Guaranty; Term; Successors and Assigns; Assignment;
          --------------------------------------------------------------
Survival.  This Guaranty is a continuing guaranty and covers all of the
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Guaranteed Obligations as the same may arise and be outstanding at any time and
from time to time from and after the date hereof, and shall (i) remain in full
force and effect until satisfaction of all of the Termination Requirements, (ii)
be binding upon and enforceable against each Guarantor and its successors and
assigns (provided, however, that no Guarantor may sell, assign or transfer any
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of its rights, interests, duties or obligations hereunder without the prior
written consent of all of the Lenders) and (iii) inure to the benefit of and be
enforceable by each Guaranteed Party and its successors and assigns.  All
representations, warranties, covenants and agreements herein shall survive the
execution and delivery of this Guaranty.

     11.  Governing Law; Consent to Jurisdiction.  THIS GUARANTY SHALL BE
          --------------------------------------                         
INTERPRETED, AND THE RIGHTS AND LIABILITIES OF THE GUARANTEED PARTIES AND THE
GUARANTORS DETERMINED, IN ACCORDANCE WITH THE INTERNAL LAWS (AS OPPOSED TO
CONFLICTS OF LAW PROVISIONS) OF THE STATE OF NORTH CAROLINA.  AS PART OF THE
CONSIDERATION FOR NEW VALUE THIS DAY RECEIVED, EACH GUARANTOR HEREBY CONSENTS TO
THE JURISDICTION OF ANY STATE COURT WITHIN MECKLENBURG COUNTY, NORTH CAROLINA OR
ANY FEDERAL COURT LOCATED WITHIN THE WESTERN DISTRICT OF THE STATE OF NORTH
CAROLINA FOR ANY PROCEEDING INSTITUTED HEREUNDER OR UNDER ANY OF THE OTHER
CREDIT DOCUMENTS, OR ARISING OUT OF OR IN CONNECTION WITH THIS GUARANTY OR ANY
OF THE OTHER CREDIT DOCUMENTS, OR ANY PROCEEDING TO WHICH ANY GUARANTEED PARTY
OR SUCH GUARANTOR IS A PARTY, INCLUDING ANY ACTIONS BASED UPON, ARISING OUT OF,
OR IN CONNECTION WITH ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENT
(WHETHER ORAL OR WRITTEN) OR ACTIONS OF ANY GUARANTEED PARTY OR SUCH GUARANTOR.
EACH GUARANTOR IRREVOCABLY AGREES TO BE BOUND (SUBJECT TO ANY AVAILABLE RIGHT OF
APPEAL) BY ANY JUDGMENT RENDERED OR RELIEF GRANTED THEREBY AND FURTHER WAIVES
ANY OBJECTION THAT IT MAY HAVE BASED ON LACK OF JURISDICTION OR IMPROPER VENUE
OR FORUM NON CONVENIENS TO THE CONDUCT OF ANY SUCH PROCEEDING.  EACH GUARANTOR
   --------------------                                                       
CONSENTS THAT ALL SERVICE OF PROCESS MAY BE MADE BY REGISTERED OR CERTIFIED MAIL
DIRECTED TO IT AT ITS ADDRESS SET FORTH HEREINBELOW, AND SERVICE SO MADE SHALL
BE DEEMED TO BE COMPLETED UPON THE EARLIER OF ACTUAL RECEIPT THEREOF OR THREE
(3) BUSINESS DAYS AFTER DEPOSIT IN THE UNITED STATES MAILS, PROPER POSTAGE
PREPAID AND PROPERLY ADDRESSED.  NOTHING IN THIS SECTION SHALL AFFECT THE RIGHT
TO SERVE LEGAL PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR AFFECT THE RIGHT
OF ANY GUARANTEED PARTY TO BRING ANY ACTION OR PROCEEDING AGAINST EITHER
GUARANTOR IN THE COURTS OF ANY OTHER JURISDICTION.

     12.  Arbitration; Preservation and Limitation of Remedies.  (a)  Upon
          ----------------------------------------------------            
demand of any party hereto, whether made before or after institution of any
judicial proceeding, any dispute, claim or controversy arising out of, connected
with or relating to this Guaranty or any other Credit Document 

                                       9
<PAGE>
 
("Disputes") between or among the Guarantors and the Guaranteed Parties, or any
of them, shall be resolved by binding arbitration as provided herein.
Institution of a judicial proceeding by a party does not waive the right of that
party to demand arbitration hereunder. Disputes may include, without limitation,
tort claims, counterclaims, claims brought as class actions, claims arising from
documents executed in the future, or claims arising out of or connected with the
transactions contemplated by this Guaranty, the Credit Agreement and the other
Credit Documents. Arbitration shall be conducted under and governed by the
Commercial Financial Disputes Arbitration Rules (the "Arbitration Rules") of the
American Arbitration Association (the "AAA"), as in effect from time to time,
and Title 9 of the U.S. Code, as amended. All arbitration hearings shall be
conducted in the city in which the principal office of the Administrative Agent
is located. The expedited procedures set forth in Rule 51 et seq. of the
                                                          -- ---        
Arbitration Rules shall be applicable to claims of less than $1,000,000.  All
applicable statutes of limitation shall apply to any Dispute.  A judgment upon
the award may be entered in any court having jurisdiction.  The panel from which
all arbitrators are selected shall be comprised of licensed attorneys. The
single arbitrator selected for expedited procedure shall be a retired judge from
the highest court of general jurisdiction, state or federal, of the state where
the hearing will be conducted or, if such person is not available to serve, the
single arbitrator may be a licensed attorney.  Notwithstanding the foregoing,
this arbitration provision does not apply to Disputes under or related to
Interest Rate Protection Agreements.

     (b) Notwithstanding the preceding binding arbitration provisions, the
parties hereto agree to preserve, without diminution, certain remedies that any
party hereto may employ or exercise freely, independently or in connection with
an arbitration proceeding or after an arbitration action is brought. Any party
hereto shall have the right to proceed in any court of proper jurisdiction or by
self-help to exercise or prosecute the following remedies, as applicable: (i)
all rights to foreclose against any Collateral by exercising a power of sale
granted pursuant to any of the Credit Documents or under applicable law or by
judicial foreclosure and sale, including a proceeding to confirm the sale; (ii)
all rights of self-help, including peaceful occupation of real property and
collection of rents, set-off, and peaceful possession of personal property;
(iii) obtaining provisional or ancillary remedies, including injunctive relief,
sequestration, garnishment, attachment, appointment of a receiver and filing an
involuntary bankruptcy proceeding; and (iv) when applicable, a judgment by
confession of judgment. Preservation of these remedies does not limit the power
of an arbitrator to grant similar remedies that may be requested by a party in a
Dispute.  The parties hereto agree that no party shall have a remedy of punitive
or exemplary damages against any other party in any Dispute, and each party
hereby waives any right or claim to punitive or exemplary damages that it has
now or that may arise in the future in connection with any Dispute, whether such
Dispute is resolved by arbitration or judicially.

     13.  Notices.  All notices and other communications provided for hereunder
          -------                                                              
shall be given in the manner set forth in and subject to the provisions of
SECTION 11.5 of the Credit Agreement and shall be addressed (a) if to either
Guarantor, in care of the Borrower and at the Borrower's address for notices set
forth in SECTION 11.5 of the Credit Agreement, and (b) if to any Guaranteed
Party, at its address for notices set forth in SECTION 11.5 of the Credit
Agreement; or to such other address as any of the Persons listed above may
designate for itself by like notice to the other Persons listed above; and in
each case, with copies to such other Persons as may be specified under the
provisions of the Credit Agreement.

     14.  No Waiver.  The rights and remedies of the Guaranteed Parties
          ---------                                                    
expressly set forth in this Guaranty and the other Credit Documents are
cumulative and in addition to, and not exclusive of, 

                                       10
<PAGE>
 
all other rights and remedies available at law, in equity or otherwise. No
failure or delay on the part of any Guaranteed Party in exercising any right,
power or privilege shall operate as a waiver thereof, nor shall any single or
partial exercise of any such right, power or privilege preclude any other or
further exercise thereof or the exercise of any other right, power or privilege
or be construed to be a waiver of any Default or Event of Default. No course of
dealing between either Guarantor and any Guaranteed Party or their agents or
employees shall be effective to amend, modify or discharge any provision of this
Guaranty or any other Credit Document or to constitute a waiver of any Default
or Event of Default. No notice to or demand upon either Guarantor in any case
shall entitle such Guarantor or the other Guarantor to any other or further
notice or demand in similar or other circumstances or constitute a waiver of the
right of any Guaranteed Party to exercise any right or remedy or take any other
or further action in any circumstances without notice or demand.

     15.  Severability.  To the extent any provision of this Guaranty is
          ------------                                                  
prohibited by or invalid under the applicable law of any jurisdiction, such
provision shall be ineffective only to the extent of such prohibition or
invalidity and only in such jurisdiction, without prohibiting or invalidating
such provision in any other jurisdiction or the remaining provisions of this
Guaranty in any jurisdiction.

     16.  Construction.  The headings of the various sections and subsections of
          ------------                                                          
this Guaranty have been inserted for convenience only and shall not in any way
affect the meaning or construction of any of the provisions hereof.  Unless the
context otherwise requires, words in the singular include the plural and words
in the plural include the singular.

     17.  Counterparts.  This Guaranty may be executed in any number of
          ------------                                                 
counterparts and by different parties hereto on separate counterparts, each of
which when so executed and delivered shall be an original, but all of which
shall together constitute one and the same instrument.

                                       11
<PAGE>
 
     IN WITNESS WHEREOF, the parties hereto have caused this Guaranty to be
executed by their duly authorized officers as of the date first above written.


                         PETERSEN HOLDINGS, L.L.C.


                         By:    /s/ Richard S Willis
                                --------------------------------------------

                         Title: Executive Vice President and Chief Financial
                                --------------------------------------------
                                Officer
                                -------



                         THE PETERSEN COMPANIES, INC.


                         By:     /s/ Richard S Willis
                                --------------------------------------------

                         Title: Executive Vice President and Chief Financial
                                --------------------------------------------
                                Officer
                                -------



Accepted and agreed to:

FIRST UNION NATIONAL BANK, as
  Administrative Agent


By:     /s/ Bruce W. Loftin
       -----------------------

Title: Senior Vice President
       -----------------------

                                       12