Document:

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                                                                   EXHIBIT 10.20

                    SEPARATION AND GENERAL RELEASE AGREEMENT

               This Separation and General Release Agreement (the "Agreement")
is made by and between GAF Materials Corporation ("GAFMC", as more fully defined
in Paragraph 17 of this Agreement), and William C. Lang ("Lang"), sometimes
herein collectively referred to as "the Parties".

                                   WITNESSETH:

         WHEREAS, Lang has been employed on an at-will basis by GAFMC or its
predecessors or subsidiaries and consistent with its March 20, 1997 letter to
Lang attached hereto as Attachment B; and

         WHEREAS, most recently, Lang has served as Executive Vice President,
Chief Administrative Officer, and Chief Financial Officer of GAFMC and was
located in Wayne, New Jersey; and

         WHEREAS, GAFMC has decided to terminate Lang's at-will employment; and

         WHEREAS, Lang and GAFMC desire that Lang's termination of employment be
on mutually acceptable and amicable terms; and

         WHEREAS, Lang has been advised of his right to consult an attorney
before signing this Agreement.

         NOW, THEREFORE, in consideration of the covenants herein undertaken,
and the releases herein contained including the general releases in Paragraph 6
of this Agreement, and for other good and valuable consideration, receipt of
which is hereby acknowledged by the Parties, GAFMC and Lang agree as follows:

               1. Lang's employment with GAFMC shall terminate effective the
earlier of (x) the close of business May 31, 2001, or (y) the day before he
commences employment with another employer (in either case referred to as the
"Termination Date"). Lang agrees to execute any paperwork or procedures
reasonably necessary to effectuate this termination. Effective immediately, Lang
shall no longer hold any officer position of GAFMC, including Executive Vice
President, Chief Administrative Officer, and Chief Financial Officer, and shall
no longer serve on the Board of Directors of GAFMC.
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                  (a) During the period January 22, 2001 through the Termination
Date ("Transition Period"), Lang shall continue to perform his job duties with
respect to specific matters and projects designated and authorized by the
President and Chief Executive Officer and shall cooperate with and help GAFMC
effectuate a smooth transition of his duties and projects to others as
appropriate. Lang agrees that during the Transition Period, he shall at all
times perform his duties and obligations conscientiously, loyally and to the
best of his ability and shall at all times act in accordance with GAFMC's
interests. Notwithstanding the foregoing, GAFMC recognizes and agrees that
during the Transition Period, Lang may devote a substantial amount of time
during working hours to his efforts to find other employment, and GAFMC shall
not consider such activity to be a violation of his obligation to perform his
job duties as provided by this Paragraph 1(a). Notwithstanding this Paragraph 1,
GAFMC may, in its sole discretion, place Lang on paid leave of absence at any
time, provided, however, that such action by GAFMC shall not relieve GAFMC of
its obligations under this Agreement.

         2. GAFMC agrees to provide the following pay, benefits, and other
consideration to Lang:

               (a)For a period of nine months (9) months, beginning with GAFMC's
next regular payroll period following the Termination Date and ending nine (9)
months later (the "Severance Period"), GAFMC will pay Lang the total sum of
$194,999.94 in eighteen (18) semi-monthly payments of $10,833.33 each, less
standard withholding and payroll deductions, each of which represents an amount
equal to Lang's semi-monthly base salary rate at the time of the Termination
Date ("Severance Payments"). Should the Termination Date fall during the middle
of a semi-monthly payroll cycle, GAFMC shall issue a check on a pro-rated basis
for the period worked prior to the Termination Date, and the Severance Payments
shall commence on the next regular payroll period following the Termination
Date. Lang agrees that GAFMC's agreement to provide the foregoing Severance
Payments fully satisfies GAFMC's understanding or agreement with Lang regarding
severance pay as described in Paragraph 7 of GAFMC's March 20, 1997 letter to
Lang.

               (b)GAFMC shall pay Lang a lump sum payment of $10,833.34 on the
eighth day following Lang's execution of this Agreement, provided he does not
revoke or repudiate this Agreement pursuant to Paragraph 18. The foregoing

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payment represents payment for unused vacation entitlement that Lang accrued as
of February 15, 2001. Calculation of this payment is based on Lang's present
base salary rate and is subject to standard withholding and payroll deductions.
Lang agrees that he shall not accrue or be eligible for any vacation days after
February 15, 2001.

               (c) GAFMC agrees that notwithstanding his status during the
Transition Period, GAFMC agrees that Lang may continue to use an office in
Wayne, NJ and GAFMC agrees to provide him with reasonable secretarial
assistance. To the extent practicable, such secretarial assistance shall be by
his current secretary. Should GAFMC place Lang on paid leave absence during the
Transition Period, it will provide him with office space elsewhere.

               (d) During the Severance Period, GAFMC shall continue to provide
Lang and his dependents, if any, group medical, dental, and life insurance
benefits in the same amount which is presently being provided to them by GAFMC
under the same terms as applicable to active employees of GAFMC, exclusive of
long-term disability insurance. Upon expiration of the Severance Period, if Lang
has not obtained other group health insurance coverage, he will be eligible to
elect, at his expense, continuation of his group medical and/or dental insurance
coverage provided by GAFMC as provided by the Consolidated Omnibus Budget
Reconciliation Act ("COBRA"). The Severance Period shall not be counted towards
the applicable COBRA continuation coverage period. After the Termination Date,
Lang shall no longer be eligible to participate in GAFMC's 401k plan, and his
rights and obligations shall be governed solely by the applicable 401k Plan.

               (e) GAFMC agrees to pay the reasonable costs of job
outplacement services for a six (6) month period from a professional
outplacement business selected by GAFMC to assist Lang in finding new
employment. Lang's receipt of such outplacement assistance shall be subject to
the terms and arrangements made by GAFMC with the outplacement business.

               (f) GAFMC and Lang agree that any stock options currently held
by Lang that have vested as of February 15, 2001 shall, in consideration for the
payment set forth below, be cancelled, and Lang shall complete any paperwork and
procedures necessary to effect such cancellation of vested options. Provided
Lang complies with the foregoing, GAFMC shall pay Lang a lump sum

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payment in the amount of $94,000.00, less standard withholding and deductions,
which represents the value of all unexercised, vested stock options held by
Lang. GAFMC shall make the foregoing payment to Lang on the eighth day following
Lang's execution of this Agreement provided he has not revoked this Agreement
pursuant to Paragraph 18 of this Agreement. Lang and GAFMC agree that other than
as set forth in this Paragraph 2(f), neither GAFMC nor Lang shall have any other
rights or obligations with respect to any stock options held by Lang and any
stock option plan or option agreement between Lang and GAFMC shall be null and
void.

               (g) Lang shall not be entitled to any Executive Incentive
Compensation ("EIC") bonus for the year 2000 or otherwise. In lieu of any EIC
bonus, GAFMC agrees to pay Lang a lump sum of $75,000.00, subject to standard
withholding and deductions on the eighth day following Lang's execution of this
Agreement, provided he does not revoke or repudiate this Agreement pursuant to
Paragraph 18 of this Agreement. Further, GAFMC agrees to pay Lang a lump sum
payment in the amount of $75,000.00 on the eighth day following the the
Termination Date, provided Lang executes the General Release Agreement attached
as Attachment A hereto on the Termination Date and does not revoke or repudiate
the General Release Agreement within the seven-day revocation and repudiation
period following his execution of the General Release Agreement. Except as
stated in this Agreement, Lang shall not be entitled to receive any other bonus
for any portion of the year 2000 or otherwise.

               (h) Upon the Termination Date, GAFMC agrees to sell Lang the
company-issued personal computers currently in his possession for the sum of
$1.00, provided Lang affirms that he has expunged or returned, as appropriate,
all GAFMC-related documents, files, and/or information that is stored on the
computer, including but not limited to, all proprietary and confidential
information and trade secrets.

         3. During the Transition Period and for a one-year period following the
Termination Date, Lang agrees to provide written notification of each of his
subsequent employers, including his title, to GAFMC c/o Vice President - Human
Resources, GAF Materials Corporation, 1361 Alps Road, Wayne, New Jersey 07470.

         4. Lang shall return to GAFMC all GAFMC-owned or used property in his
possession on or before the Termination Date. Lang further acknowledges and

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reaffirms his continuing obligations under the Confidentiality, Invention and
Non-Competition Agreement that he signed as a condition of employment, a copy of
which is attached hereto as Attachment C and made a part of this Agreement.

         5. Lang agrees to keep this Agreement confidential and not to disclose
its contents to anyone except his attorney and/or financial consultant, if any,
his immediate family, and appropriate governmental agencies which require this
information or except if required to respond to a valid subpoena or other
legally required process. If disclosure is made to any of the foregoing, Lang
shall advise each of the confidentiality requirements of this Agreement. Lang
shall also keep confidential and not disclose to anyone the circumstances
leading to the execution of this Agreement, subject to the exceptions specified
in this Paragraph 5 and also subject to his right to discuss such circumstances
(but not the contents of this Agreement) with any bona fide prospective
employers of Lang.

         If Lang is required to respond to a valid subpoena or other lawful
process which calls for: (i) the disclosure or production of this Agreement, or
any contents hereof, or (ii) any information regarding the claims released
herein, then he shall notify GAFMC promptly and before making any disclosure by
telefaxing or mailing the subpoena or other lawful process to Patricia H. Kim,
Esq., Vice President - Employment & Labor, GAF Materials Corporation, 1361 Alps
Road, Wayne, New Jersey 07470, telefax no. (973) 628-4081 to enable GAFMC to
contest, limit or overturn the subpoena or legal process.

      6. (a) In consideration for the payments, benefits, and other
consideration provided for in this Agreement, Lang, on behalf of himself, his
heirs, executors, administrators, successors and assigns, hereby forever
releases and discharges GAFMC, its parent companies and its and their respective
successors, assigns, subsidiaries, affiliates, directors, officers,
shareholders, representatives, attorneys, insurers, agents and employees
(hereinafter "GAFMC Releasees") from any and all causes of action, claims,
losses, damages, costs and/or expenses (including attorney's fees) and/or other
liabilities (collectively, "Liabilities"), known or unknown, asserted or
unasserted, which Lang has or may have, from the beginning of time to the date
of the execution of this Agreement, including, but not limited to, Liabilities
arising under any and all federal, state, or local laws, regulations, or
ordinances prohibiting discrimination in employment on the basis of sex, sexual
orientation, race, age, religion, national origin, mental or physical

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disability, or any other form of unlawful discrimination, including but not
limited to, Title VII of The Civil Rights Act of 1964, as amended; the Age
Discrimination in Employment Act of 1967, as amended; the Older Workers Benefit
Protection Act; the Family and Medical Leave Act; the Americans with
Disabilities Act; any accrued benefit under any other GAFMC employee welfare
benefit plan as that term is defined by Section 3(1) of the Employment
Retirement Income Security Act; any provision of the Constitution of the United
States, the State of New Jersey, or any other state; any provision of any other
law, common or statutory, of the United States, New Jersey, or any other state,
including New Jersey's Law Against Discrimination ("LAD") and New Jersey's
Conscientious Employee Protection Act ("CEPA"); any contract of employment,
expressed or implied; as well as any and all claims alleging wrongful
termination, or any other tortious or wrongful conduct or omission, in any way
relating to or arising out of Lang's hiring by GAFMC, his employment with GAFMC
or his separation of employment. Excepted from this release is any claim or
right which cannot be waived by law, including claims arising after the date of
this Agreement. The Parties intend Lang's release as set forth in this Paragraph
6(a) to be general and comprehensive in nature and to release all claims and
potential claims by Lang to the maximum extent permitted by law.

               (b) In consideration of the covenants undertaken by Lang herein
and for other consideration provided for in this Agreement, GAFMC, on behalf of
itself, its parent companies and its and their respective successors, assigns,
subsidiaries, affiliates, directors, officers, shareholders, representatives,
attorneys, insurers, agents and employees, hereby forever releases and
discharges Lang, his heirs, executors, administrators, successors and assigns
(hereinafter "Lang Releasees") from any and all causes of action, claims,
losses, damages, costs and/or expenses (including attorney's fees) and/or other
liabilities (collectively, "Liabilities"), known or unknown, asserted or
unasserted, which GAFMC has or may have, from the beginning of time to the date
of the execution of this Agreement, including, but not limited to, Liabilities:
(i) relating to or arising out of GAFMC's hiring by, employment with, or
separation of employment from GAFMC; or (ii) arising out of any transactions,
occurrences, acts, statements, disclosures, or omissions occurring prior to the
date this Agreement is executed. The Parties intend GAFMC's release as set forth
in this Paragraph 6(b) to be general and comprehensive in nature and to release
all claims and potential claims by GAFMC to the maximum extent permitted by law.
GAFMC agrees that it shall indemnify

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Lang with respect to claims against him consistent with the applicable GAFMC
corporate by-laws and indemnification insurance coverage applicable to its
directors and officers in connection with any losses, claims, damages or
liabilities related to, arising out of or in connection with any acts or
omissions by Lang for the matters covered thereby.

         7. Lang acknowledges that the only consideration for signing this
Agreement and all that he is ever to receive from GAFMC Releasees are expressed
in the terms stated in this Agreement and that no other promises or agreements
of any kind have been made to Lang by any person or entity whatsoever to cause
him to sign this Agreement, and that Lang has signed this Agreement as a free
and voluntary act. Lang further acknowledges that pursuant to the terms of this
Agreement, he is and will be receiving pay, benefits, and other consideration
from GAFMC which are substantially above and beyond the pay, benefits, or other
consideration to which he, in the absence of this Agreement, would be entitled.
Lang further acknowledges that GAFMC is being induced to provide the payments,
benefits, and other consideration set forth in this Agreement by Lang's
promises, including the full and comprehensive release provided by him in
Paragraph 6(a).

         8. During the Severance Period, upon reasonable notice and without any
additional consideration except for reimbursement of authorized expenses, Lang
agrees to cooperate with GAFMC and to respond to reasonable inquiries and
requests for information by GAFMC in connection with any matters in which he was
involved during his employment with GAFMC, including any legal matters in which
Lang may potentially be called as a witness for GAFMC. After the Severance
Period expires, Lang agrees that he will continue to cooperate with GAFMC in the
future in connection with any legal proceeding pending as of the expiration of
the Severance Period in which he may be required to provide sworn testimony.
Lang and GAFMC agree that if Lang is unavailable at any given time, the Parties
will work cooperatively to schedule a mutually convenient time for any meetings,
calls, witness preparation or witness appearances. Lang's agreement to cooperate
with and to provide responses to such reasonable inquiries and requests for
information by GAFMC or to cooperate in connection with any legal proceeding
does not create any employment relationship between Lang and GAFMC.

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         9. Lang hereby waives any and all rights or claims that he may have to
reinstatement, employment or reemployment with GAFMC.

         10. Lang agrees that he shall not offer, use or consider this Agreement
as evidence in any proceeding against GAFMC except to the extent necessary to
enforce the terms of this Agreement or as required by a valid subpoena or other
lawful process. If required by subpoena or other lawful process, Lang shall
notify GAFMC promptly and before making any disclosure by telefaxing or mailing
the subpoena or other lawful process to Patricia H. Kim, Esq., Vice President -
Employment & Labor, GAF Materials Corporation, 1361 Alps Road, Wayne, New Jersey
07470, telefax no. (973) 628-4081 to enable GAFMC to contest, limit or overturn
the subpoena or legal process.

         11. This Agreement is not, and shall not, be construed as an admission
by GAFMC or Lang of any acts or omissions that could or might be alleged with
respect to any matter concerning Lang's employment or separation of employment
with GAFMC. Without limiting the foregoing, this Agreement is not, and shall not
be, construed as an admission by GAFMC of (i) any violation of any law,
regulation, or ordinance; or (ii) any wrongful act toward Lang; or (iii) any
liability whatsoever for any damages or injuries that are or could be claimed by
him with respect to his hiring by GAFMC, his employment, or the separation of
his employment.

         12. Lang represents and warrants that he has not filed or otherwise
initiated any proceeding, complaint, charge, or lawsuit with any court,
government agency, or other entity relating to any claims being released by him
under this Agreement, and that he shall not file any such proceeding, complaint,
charge or lawsuit at any time hereafter relating to any claims being released by
him herein. If Lang fails to comply with this Paragraph 12 by initiating a
proceeding, complaint, charge, or lawsuit, he shall immediately withdraw such
proceeding, complaint, charge or lawsuit, and shall pay all of GAFMC's costs in
defending against that proceeding, complaint, charge, or lawsuit, including
without limitation, reasonable attorneys' fees. This Paragraph 12 shall not
apply to a claim under the Age Discrimination in Employment Act, including a
challenge to the validity of the waiver and release agreement.

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         13. Lang and GAFMC agree not to make any defamatory or derogatory
statement, written or verbal, to any third Parties regarding the facts or
circumstances surrounding this Agreement or any other defamatory or derogatory
statement that may be harmful to the other or may be injurious to the goodwill,
reputation or business standing of the other. Lang agrees that he will not,
directly or indirectly, take any action or omit to take any action which is, or
could be construed to be, inimical to the best interests of GAFMC. If compelled
to testify regarding GAFMC pursuant to a valid subpoena or other legally
required process, Lang's testimony shall not constitute a breach of this
Paragraph 13; provided, however, that Lang agrees to notify GAFMC of his receipt
of any such subpoena or other legally required process promptly and before
offering any such testimony to enable GAFMC to contest, limit or overturn the
subpoena or other legal process.

         14. If any one or more of the provisions contained herein shall for any
reason be held to be unenforceable in any respect under the law of any state or
of the United States of America, such unenforceability shall not affect any
other provision of this Agreement, and said provision shall be ineffective, to
the extent of such unenforceability, with respect only to that jurisdiction
holding the provision to be unenforceable.

         15. The construction, interpretation and performance of this Agreement
shall be governed by the laws of the State of New Jersey, and any action to
enforce any rights hereunder may only be commenced and prosecuted in the State
of New Jersey.

         16. This Agreement contains the entire agreement between Lang and GAFMC
and fully supersedes any and all prior agreements or understandings pertaining
to the subject matter hereof. Lang represents and acknowledges that in executing
this Agreement he has not relied upon any representation or statement not set
forth herein, made by any of the GAFMC Releasees or by any of the GAFMC
Releasees' agents, representatives, or attorneys with regard to the subject
matter of this Agreement. No other promise or agreement shall be binding unless
in writing and signed by the Parties hereto.

         17. All references to GAFMC in this Agreement include: (a) any
affiliated, related, subsidiaries, or parent companies of GAF Materials
Corporation; (b) any past or present officers, directors, shareholders,

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attorneys, insurers, agents, representatives, and/or employees of GAFMC and or
its parents, subsidiaries, affiliates and related companies; and (c) any and all
respective predecessors, successors and assigns, and any and all benefit plans,
of GAFMC and/or its affiliated companies (as well as the past or present
officers, directors, shareholders, agents, representatives, and employees of
such entity).

         18. Lang acknowledges that he has been advised by GAFMC of his right to
consult an attorney before signing this Agreement, and that he has been provided
at least twenty-one (21) days after the date he received this document to
consider the Agreement. Lang also understands that he may sign the Agreement
prior to that date. Lang further understands that he may revoke and repudiate
this Agreement within seven (7) days after signing it and that this Agreement
shall not become effective or enforceable until the seven (7) day revocation
period has expired. Should Lang revoke and repudiate this Agreement during the
foregoing seven (7) day period, he shall be required to return or repay the
value of any consideration under this Agreement he already received, except if
he files a claim under the Age Discrimination in Employment Act, including a
challenge to the validity of the waiver and release agreement.

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         19. BY SIGNING THIS SEPARATION AND GENERAL RELEASE AGREEMENT, LANG
STATES THAT:

                  (a)      HE HAS READ IT;

                  (b)      HE UNDERSTANDS AND KNOWS THAT HE IS GIVING UP CERTAIN
                           RIGHTS;

                  (c)      HE AGREES WITH EVERYTHING IN IT;

                  (d)      HE IS AWARE OF HIS RIGHT TO CONSULT AN ATTORNEY
                           BEFORE SIGNING IT; AND

                  (e)      HE HAS SIGNED IT KNOWINGLY AND VOLUNTARILY.

                                                  GAF Materials Corporation
WITNESSED:

 /s/  Patricia Kim                         By: /s/  Richard A. Weinberg
----------------------------------             ---------------------------------
                                                Executive Vice President
                                                and General Counsel

Date: 3/7/2001                             Date:  3/7/2001
      ----------------------------               -------------------------------

WITNESSED:

 /s/ Linda Woytisek                        By: /s/ William C. Lang
----------------------------------             ---------------------------------
                                                William C. Lang

Date:   3/7/2001                           Date: 3/7/2001
      ----------------------------               -------------------------------

                                       11<PAGE>   1
                                                                     EXHIBIT 4.7

                          FIRST SUPPLEMENTAL INDENTURE
                            DATED AS OF MAY 19, 1999

                             WAIVER AND AMENDMENTS

                           TO THAT CERTAIN INDENTURE
                         DATED AS OF DECEMBER 21, 1993
                            RELATING TO $85,000,000
                                 SERIES A AND B
                          10-5/8% SENIOR SECURED NOTES
                                    DUE 2000

                                      AND

                             TO THE SERIES B NOTES

                        _______________________________

                              GENERAL MEDIA, INC.

                             SUBSIDIARY GUARANTORS

                        _______________________________

                       IBJ WHITEHALL BANK & TRUST COMPANY
             (FORMERLY KNOWN AS IBJ SCHRODER BANK & TRUST COMPANY)

                                    TRUSTEE
<PAGE>   2

                          FIRST SUPPLEMENTAL INDENTURE

                           Dated, as of May 19, 1999

     FIRST SUPPLEMENTAL INDENTURE dated May 19, 1999 (this "Supplemental
Indenture") among GENERAL MEDIA, INC, a Delaware corporation (the "Company"),
each of the "SUBSIDIARY GUARANTORS" listed on the signature pages hereof and
IBJ WHITEHALL BANK & TRUST COMPANY (formerly known as IBJ Schroder Bank & Trust
Company), AS TRUSTEE under the Indenture defined below (the "Trustee").

     WHEREAS, the Company, the Subsidiary Guarantors and the Trustee are
parties to a certain Indenture dated as of December 21, 1993 (the "Indenture"),
pursuant to which $85,000,000 in aggregate principal amount of the Company's
Series B 10-5/8% Senior Secured Notes due 2000 (the "Notes") have been issued;

     WHEREAS, Section 9.02 of the Indenture and Section 11 of the Notes provide
that the Company, the Subsidiary Guarantors and the Trustee may waive, amend
and supplement the provisions of the Indenture and the Notes as provided for
herein with the consent of the Holders of at least a majority in outstanding
principal amount of the Notes ("Majority Consent"), and the Company has
obtained and filed with the Trustee evidence of such Majority Consent to this
Supplemental Indenture;

     WHEREAS, the execution and delivery of this Supplemental Indenture by the
Company and each of the Subsidiary Guarantors have been duly authorized by
resolutions of their respective Boards of Directors, and all other conditions
and requirements necessary to authorize and permit the execution and delivery
of this Supplemental Indenture by all parties hereto have been performed and
fulfilled; and

     WHEREAS, the Company and the Subsidiary Guarantors have requested that the
Trustee join them in the execution and delivery of this Supplemental Indenture
for the purpose of waiving and amending certain provisions of the Indenture and
the Notes as hereinafter set forth, and the Trustee is willing to do so;

     NOW, THEREFORE, in consideration of the premises hereof and for other good
and valuable consideration the receipt and sufficiency of which is hereby
acknowledged, the Company and the Subsidiary Guarantors covenant and agree with
the Trustee, for the equal and proportionate benefit of the respective holders
from time to time of the Notes, as follows:

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                                   ARTICLE I

                            AMENDMENTS TO INDENTURE

     Section 1.1    DEFINITIONS. Section 1.01 of the Indenture is amended
by the addition of the following definition:

     "'Auto Assets Sale' means, the sale, on or about March 2, 1999, by General
     Media Automotive Group, Inc., (successor-in-interest by merger to Four
     Wheel Publishing, Ltd., Open Wheel Publications, Inc., Stock Car Racing
     Publications, Inc., and Super Stock Publications, Inc.), a Subsidiary
     Guarantor Hereunder ("GMAG"), of certain of its assets to EMAP Petersen,
     Inc. ("EMAP"), pursuant to a certain Asset Sale and Purchase Agreement
     dated as of February 9, 1999, between GMAG and EMAP."

     Section 1.2    ASSET SALES OFFER. The Second Paragraph of Section 4.09 of
the Indenture is hereby deleted and replaced with the following:

          "Within 180 days after any Asset Sale, the Company or Subsidiary, as
     applicable, may apply the Net Proceeds from such Asset Sale to an
     investment in another business or capital expenditure or other tangible or
     long-term assets in the same or a similar line of business as the Company
     or any Subsidiary was engaged in on the date of this Indenture. Pending the
     final application of any such Net Proceeds, the Company or Subsidiary, as
     applicable, may temporarily invest such Net Proceeds in any manner that is
     not prohibited by this Indenture. Any Net Proceeds from the Asset Sale that
     are not applied or invested as provided in the first sentence of this
     paragraph will be deemed to constitute "Excess Proceeds." When the
     aggregate amount of Excess Proceeds exceeds $5 million, the Company shall
     make an offer to all Holders (an "Asset Sale Offer") to purchase the
     maximum principal amount of Notes that may be purchased out of the Excess
     Proceeds, at an offer price in cash in an amount equal to 101% of the
     principal amount thereof plus accrued and unpaid interest, if any, to the
     date of purchase, in accordance with the procedures in Section 3.09 hereof,
     provided, that, solely in the case of the Auto Assets Sale, the entire Net
     Proceeds thereof shall be deemed Excess Proceeds (the "Auto Excess
     Proceeds") and the Company shall as soon as practicable after the
     completion of the Auto Assets Sale make an Asset Sale Offer to purchase
     with the Auto Excess Proceeds $28,000,000 in principal amount of the Notes
     at an offer price in cash in an amount equal to not less than 95% of the
     principal amount thereof plus accrued and unpaid interest, if any, to the
     date of purchase, in accordance with the procedures in Section 3.09 hereof
     (the "Auto Asset Sale Offer"). To the extent that the aggregate purchase
     price of the Notes tendered pursuant to any Asset Sale Offer plus all
     accrued interest and the costs of such Asset Sale Offer ("Total Offer
     Expenditure") is less than the Excess Proceeds, the Company or Subsidiary,
     as applicable, may use such deficiency for general corporate purposes. If,
     however, in connection with any Asset Sale Offer, the aggregate principal
     amount of Notes tendered exceeds the amount of Excess Proceeds (or, in the
     case of the Auto Asset Sale Offer, would cause the Total Offer Expenditure
     to exceed the Total Offer Expenditure that would apply if no more than
     $28,000,000 in aggregate principal amount of the Notes had been tendered),
     the Company shall select the Notes (or portions thereof) to be purchased on
     a pro rata basis, such that the aggregate

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<PAGE>   4
      principal amount of the Notes purchased in respect of such Asset Sale
      Offer shall not exceed the Excess Proceeds (or, in the case of the Auto
      Asset Sale Offer, such that the Total Offer Expenditure shall not exceed
      the Total Offer Expenditures that would apply if no more than $28,000,000
      in principal amount of the Notes had been tendered). Upon completion of
      such offer to purchase, the amount of the Excess Proceeds with respect to
      Net Proceeds received prior to the commencement of such offer shall be
      reset at zero.

                   Notwithstanding anything to the contrary in this Section
      4.09, the Company shall not, and shall not permit any of its Subsidiaries
      to, issue or sell equity securities of any of their respective
      subsidiaries in violation of the Pledge Agreement."

                                   ARTICLE II

                               AMENDMENT TO NOTES

     Section 2.1   ASSET SALES. Section 8(b) of each of the Notes is hereby
amended to read in its entirety as follows:

                  "(b)  If the Company consummates any Asset Sales, and when
      the aggregate amount of Excess Proceeds exceeds $5 million, the Company
      shall make an offer to all Holders of Notes to purchase the maximum
      principal amount of Notes that may be purchased out of such Excess
      Proceeds at an offer price in cash equal to 101% of the principal amount
      thereof, plus accrued and unpaid interest, if any, to the date of purchase
      in accordance with the procedures set forth in the Indenture, provided,
      that, solely in the case of the Auto Assets Sale, the Company shall as
      soon as practicable after the completion of the Auto Assets Sale make an
      Asset Sale Offer to purchase with such Excess Proceeds $28,000,000 in
      principal amount of the Notes at an offer price in cash in an amount equal
      to not less than 95% of the principal amount thereof plus accrued and
      unpaid interest, if any, to the date of purchase, in accordance with
      Section 4.09 of the Indenture. Holders of Notes that are the subject of an
      offer to purchase will receive an Asset Sale Offer from the Company prior
      to any related purchase date and may elect to have such notes purchased by
      completing the form entitled "Option of Holder to Elect Purchase"
      appearing below."

                                  ARTICLE III
                          WAIVER OF CERTAIN PROVISIONS

     Section 3.1    WAIVER. Majority Consent having been obtained therefor, the
Trustee hereby waives, on behalf of all Holders, the provisions of the
Indenture, including, without limitation, any procedural requirements of Section
3.09 thereof, to the extent necessary to permit the Auto Asset Sale Offer and
the consummation thereof as contemplated by and in accordance with the terms of
the Offer to Purchase and Consent Solicitation Statement and the Consent and

                                       3
<PAGE>   5
Letter of Transmittal, each dated as of April 27, 1999, previously distributed
by the Company to all Holders of the Notes.

                                   ARTICLE IV

                                 MISCELLANEOUS

     Section 4.1 TERMS DEFINED. Terms used in capitalized form herein and
defined in the Indenture have the meanings specified in the Indenture.

     Section 4.2 REAFFIRMATION. Except as hereby expressly amended, the
Indenture and the Notes are in all respects ratified and confirmed and all the
terms, provisions and conditions thereof shall be and remain in full force and
effect.

     Section 4.3 GOVERNING LAW. This Supplemental Indenture and each and every
provision hereof shall be construed in accordance with the laws of the State of
New York.

     Section 4.4 SUCCESSORS AND ASSIGNS. All the covenants in this Supplemental
Indenture contained by or on behalf of the Company and Subsidiary Guarantors
shall bind its successors and assigns, whether so expressed or not.

     Section 4.5 COUNTERPARTS. This Supplemental Indenture may be executed in
any number of counterparts, each of which shall be an original; but such
counterparts shall together constitute but one and the same instrument.

          IBJ WHITEHALL BANK & TRUST COMPANY, as Trustee, hereby accepts the
trusts in this Supplemental Indenture declared and provided, upon the terms and
conditions hereinabove set forth, subject to the terms and provisions defining
and limiting the liabilities and responsibilities of the Trustee in the
performance of the trust created by the Indenture as hereby amended.

                                       4
<PAGE>   6
     IN WITNESS WHEREOF, the Company and each of the Subsidiary Guarantors has
caused this Supplemental Indenture to be signed in its corporate name and
acknowledged by its President or one of its Vice Presidents, and its corporate
seal to be impressed hereon, duly attested by its Secretary or an Assistant
Secretary; and Trustee has caused this Supplemental Indenture to be signed and
acknowledged by one of its Vice Presidents, and its corporate seal to be
impressed hereon, duly attested by its Secretary or by one of its Assistant
Secretaries, as of the date and year first above written.

Dated as of May 19, 1999           GENERAL MEDIA, INC.

                                   By: /s/ John D. Orlando
                                      ---------------------------------
                                      Name: John D. Orlando
                                      Title: Senior Vice President/
                                             Chief Financial Officer

Attest: /s/ Nina T. Guccione
       ---------------------

(SEAL)

Dated as of May 19, 1999           SUBSIDIARY GUARANTORS:

                                   GENERAL MEDIA ART HOLDING, INC.
                                   GENERAL MEDIA COMMUNICATIONS, INC.
                                   GENERAL MEDIA ENTERTAINMENT, INC.
                                   GENERAL MEDIA FILMS, INC.
                                   GENERAL MEDIA INTERNATIONAL
                                   FINANCIAL SERVICES, N.V.
                                   GENERAL MEDIA (UK), LTD.
                                   GMI WORLDWIDE ON-LINE SERVICES, INC.
                                   PENTHOUSE CLUBS INTERNATIONAL
                                   ESTABLISHMENT
                                   PENTHOUSE FINANCIAL SERVICES, N.V.
                                   PENTHOUSE IMAGES ACQUISITIONS, LTD.
                                   PENTHOUSE MUSIC, LTD.
                                   PURE ENTERTAINMENT
                                   TELECOMMUNICATIONS (CURACAO), N.V.
                                   PURE ENTERTAINMENT
                                   TELECOMMUNICATIONS, INC.
                                   GENERAL MEDIA AUTOMOTIVE GROUP, INC.

                                   By: /s/ Nina T. Guccione
                                      ---------------------------------
                                      Name: Nina T. Guccione
                                      Title: Executive Vice President
                                   (for each of the above-listed Subsidiary
                                   Guarantors)

Attest: /s/ John D. Orlando
       --------------------
(for each of the above-listed
Subsidiary Guarantors)

                                       5
<PAGE>   7

Dated as of May 19, 1999              IBJ WHITEHALL BANK &
                                      TRUST COMPANY (formerly known as IBJ
                                      Schroder Bank & Trust Company), as Trustee

                                      By: /s/ Terence Rawlins
                                          --------------------------------------
                                          Name: Terence Rawlins
                                          Title: Assistant Vice President

Attest: /s/ Luis Perez
        -----------------------
        (SEAL)

                                       6

<PAGE>   8
STATE OF NEW YORK   )
                    )      ss.:
COUNTY OF New York  )

           On the 19 day of May, 1999, before me personally came John D.
Orlando, to me known, who, being by me dully sworn, did depose and say that he
resides at 9 Stirrup Ln. Glen Cove, NY, that he is Senior Vice President/Chief
Financial Officer of GENERAL MEDIA, INC., one of the parties described in and
which executed the above instrument; that he knows the corporate seal of said
corporation; that the seal affixed to the said instrument is such corporate
seal; that it was so affixed by authority of the Board of Directors of said
corporation, and that he signed his name thereby by like authority.

                                           /s/ William J. Vazoulas
                                           ------------------------------
                                           Notary Public
                                                  William J. Vazoulas
                                            Notary Public, State of New York
 [NOTARIAL SEAL]                                      No. 4948883
                                               Qualified in Nassau County
                                              Term Expires March 27, 2001

                                       7
<PAGE>   9
STATE OF NEW YORK    )
                     )    ss.:
COUNTY OF NEW YORK   )

          On the 19th day of May 1999, before me personally came Nina Guccione,
to me known, who, being by me duly sworn, did depose and say that she resides at
86 East 67th St. New York City, New York 10021; that she is Executive Vice
President of each of GENERAL MEDIA ART HOLDING, INC., GENERAL MEDIA
COMMUNICATIONS, INC., GENERAL MEDIA ENTERTAINMENT, INC., GENERAL MEDIA FILMS,
INC., GENERAL MEDIA INTERNATIONAL FINANCIAL SERVICES, N.V., GENERAL MEDIA (UK),
LTD., GMI WORLDWIDE ON-LINE SERVICES, INC., PENTHOUSE CLUBS INTERNATIONAL
ESTABLISHMENT, PENTHOUSE FINANCIAL SERVICES, N.V., PENTHOUSE IMAGES
ACQUISITIONS, LTD., PENTHOUSE MUSIC, LTD., PURE ENTERTAINMENT TELECOMMUNICATIONS
(CURACAO), N.V., PURE ENTERTAINMENT TELECOMMUNICATIONS, INC. AND GENERAL MEDIA
AUTOMOTIVE GROUP, INC., each being one of the parties described in and which
executed the above instrument; that he knows the corporate seal of said
corporation; that the seal affixed to the said instrument is such corporate
seal; that it was so affixed by authority of the Board of Directors of said
corporation, and that he signed his name thereby by like authority.

                                             /s/ William J. Vazoulas
                                             ----------------------------
                                             Notary Public

[NOTARIAL SEAL]                                   William J. Vazoulas
                                           NOTARY PUBLIC, State of New York
                                                     No. 4948883
                                             Qualified in Nassau County
                                             Term Expires March 27, 2001

                                       8

<PAGE>   10
STATE OF NEW YORK    )
                     )    ss.:
COUNTY OF NEW YORK   )

          On the 21st day of May 1999, before me personally came Terence
Rawlins, to me known, who, being by me duly sworn, did depose and say that he
resides at Sayreville, NY; that he is AVP of IBJ Whitehall Bank & Trust Company
(formerly known as IBJ Schroder Bank & Trust Company), one of the parties
described in and which executed the above instrument; that he knows the
corporate seal of said corporation; that the seal affixed to the said instrument
is such corporate seal; that it was so affixed by authority of the Board of
Directors of said corporation, and that he signed his name thereby by like
authority.

                                             /s/ Kevin P. Broughel
                                             ----------------------------
                                             Notary Public

[NOTARIAL SEAL]

                                       9

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