Document:

Exhibit 4.1(r)

                               SECURITY AGREEMENT

            This SECURITY AGREEMENT is dated as of March 11, 2003 among Playboy
Enterprises, Inc. and each of the domestic subsidiaries of PEI Holdings, Inc., a
Delaware corporation (the "Issuer"), set forth on the signature pages hereto
(together with those additional entities that hereafter become parties by
executing signature pages hereto, collectively, the "Debtors" and individually,
a "Debtor"), and Bank One, N.A., in its capacity as Trustee under the Indenture
described below (the "Trustee").

                              W I T N E S S E T H:

            WHEREAS, the Debtors and the Trustee have entered into an Indenture
of even date herewith (as the same may be amended, modified or supplemented from
time to time, the "Indenture") among the Issuer, the Debtors, and the Trustee,
governing the terms of certain Senior Secured Notes ("Notes") issued by the
Issuer; and

            WHEREAS, it is required under the Indenture that each Debtor shall
have granted the security interests contemplated by this Agreement in order to
secure the payment and performance of the Issuer's obligations under the Notes
and the Indenture and each Debtor's obligations under the Indenture (the
"Obligations");

            NOW, THEREFORE, in consideration of the foregoing, and in order to
facilitate the issuance of the Notes, each Debtor hereby agrees with the
Trustee, for its benefit and the benefit of the Holders, as follows:

SECTION 1. Definitions.

            1.1 The following terms, as used herein, have the meanings set forth
below:

            "Administrative Agent" means Bank of America, N.A., as
administrative agent under the Credit Agreement, or a successor agent or
administrative agent.

            "Agreement" means this Security Agreement, as the same may be
amended, restated, modified or supplemented and in effect from time to time in
accordance with the terms hereof.

            "BA Security Documents" means the Collateral Documents as defined in
the Credit Agreement.

            "Collateral" has the meaning assigned to that term in Section 2.

            "Copyright Security Agreement" means, if any, each Copyright
Security Agreement executed and delivered by any Debtor to the Trustee, as the
same may be amended and in effect from time to time.

            "Copyrights" means (a) any copyrights, copyright registrations and
copyright applications, and all renewals and extensions of any of the foregoing,
(b) all income damages and payments now and hereafter due or payable with
respect thereto, including, without

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limitation, damages and payments for past or future infringements thereof, (c)
licenses of any of the foregoing to or from third parties and the royalties and
other payments, if any, receivable thereunder, (d) the right to sue for past,
present and future infringements thereof, and (e) all rights corresponding
thereto throughout the world.

            "Federal Registration Collateral" means Collateral with respect to
which Liens may be registered, recorded or filed under, or notice thereof given
under, any federal statute or regulation.

            "Indenture" has the meaning assigned to that term in the recitals.

            "Intellectual Property" means, collectively, all Copyrights,
Patents, Trademarks and Trade Secrets.

            "Intercreditor Agreement" means that certain Intercreditor Agreement
among the Issuer, the Trustee and the Administrative Agent.

            "License" has the meaning set forth in Section 4.3(g) herein.

            "Material Adverse Effect" means (a) a material adverse change in, or
a material adverse effect upon, the operations, business, properties, or
financial condition of Playboy and its Restricted Subsidiaries taken as a whole;
(b) a material impairment of the ability of the Issuer, or any Debtor or any
Person executing a Security Document to perform its obligations under the
Indenture or any Security Document to which it is a party; (c) a material
adverse effect upon the legality, validity, binding effect or enforceability
against the Issuer, or any Debtor or any Person executing a Security Document of
the Indenture or any Security Document to which it is a party; or (d) a material
adverse effect on the Collateral or the validity, perfection, priority or
enforceability of the Security Interests.

            "Notes" has the meaning assigned to that term in the recitals.

            "Obligations" has the meaning assigned to that term in the recitals.

            "Patent Security Agreement" means, if any, each Patent Security
Agreement executed and delivered by any Debtor to the Trustee, as the same may
be amended and in effect from time to time.

            "Patents" means (a) any patents and patent applications, and all
renewals, extensions and continuations of any of the foregoing, (b) all income
damages and payments now and hereinafter due or payable with respect thereto,
including, without limitation, damages and payments for past or future
infringements thereof, (c) licenses of any of the foregoing to or from third
parties and the royalties and other payments, if any, receivable thereunder, (d)
the right to sue for past, present and future infringements thereof, and (e) all
rights corresponding thereto throughout the world.

            "Permitted Liens" means those Liens permitted by Section 4.08 of the
Indenture.

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            "Security Interests" means the security interests granted or
provided for pursuant to Section 2 hereof and pursuant to any Copyright Security
Agreements, Patent Security Agreements and Trademark Security Agreements, as
well as all other security interests created, assigned or provided as additional
security for the Obligations pursuant to the provisions of this Agreement or the
Indenture or any of the other Security Documents.

            "Trade Secrets" means technology, trade secrets and other
confidential information, know-how, proprietary processes, formulae, algorithms,
models, and methodologies, all renewals and extensions of any of the foregoing
and all goodwill symbolized by any of the foregoing, (b) all income damages and
payments now and hereinafter due or payable with respect thereto, including,
without limitation, damages and payments for past or future infringements
thereof, (c) licenses of any of the foregoing to or from third parties and the
royalties and other payments, if any, receivable thereunder, (d) the right to
sue for past, present and future infringements thereof, and (e) all rights
corresponding thereto throughout the world.

            "Trademark Security Agreement" means, if any, each Trademark
Security Agreement executed and delivered by any Debtor to the Trustee, as the
same may be amended and in effect from time to time.

            "Trademarks" means any (a) trademarks, trademark registrations, and
trademark applications, trade names and trade styles, service marks, service
registrations and service mark applications, all renewals and extensions of any
of the foregoing and all goodwill symbolized by any of the foregoing, (b) all
income, damages and payments now and hereinafter due or payable with respect
thereto, including, without limitation, damages and payments for past or future
infringements, unfair competition, dilution, or for injury to the goodwill
associated with any of the foregoing, (c) licenses of any of the foregoing to or
from third parties and the royalties and other payments, if any, receivable
thereunder, (d) the right to sue for past, present and future infringements
thereof, and (e) all rights corresponding thereto throughout the world.

            "UCC" means the Uniform Commercial Code of the State of Illinois as
in effect from time to time.

            1.2 Other Definition Provisions. References to "Sections" shall be
to Sections of this Agreement unless otherwise specifically provided. For
purposes hereof, "including" is not limiting and "or" is not exclusive. Except
as provided by the immediately following sentence, capitalized terms used herein
and not otherwise defined herein shall have the respective meanings provided for
in the Indenture. All capitalized terms defined in the UCC and not otherwise
defined herein shall have the respective meanings provided for by the UCC. Any
of the terms defined in Section 1.1 may, unless the context otherwise requires,
be used in the singular or the plural depending on the reference. All references
to statutes and related regulations shall include any amendments of same and any
successor statutes and regulations.

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SECTION 2. Grant of Security Interests.

            To secure the payment and performance of the Obligations, each
Debtor hereby grants to the Trustee, for its benefit and the benefit of the
Holders, and for the benefit of each Affiliate of Trustee and each Holder, a
lien on, security interest in and right of set-off against any and all right,
title and interest in and to any and all property and interests in property of
each Debtor, whether now owned or existing or hereafter created, acquired or
arising, including all of the following properties and interests in properties,
whether now owned or hereafter created, acquired or arising (all being
collectively referred to herein as the "Collateral"):

            (a) Accounts;

            (b) Chattel Paper;

            (c) Commercial Tort Claims specifically identified on Schedule III
hereto;

            (d) Deposit Accounts, all cash, and other property deposited therein
or otherwise credited thereto from time to time and other monies and property in
the possession or under the control of Trustee or any Holder or any affiliate,
representative, agent or correspondent of the Trustee or any Holder;

            (e) Documents;

            (f) General Intangibles, including without limitation any and all
Intellectual Property;

            (g) Goods, including without limitation any and all Inventory, any
and all Equipment and any and all Fixtures;

            (h) Instruments;

            (i) Investment Property;

            (j) Letter-of-Credit Rights;

            (k) Supporting Obligations;

            (l) Any and all other personal property and interests in property
whether or not subject to the UCC;

            (m) Any and all books and records, in whatever form or medium, that
at any time evidence or contain information relating to any of the foregoing
properties or interests in properties or are otherwise necessary in the
collection thereof or realization thereon;

            (n) All Accessions and additions to, and substitutions and
replacements of, any and all of the foregoing; and

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            (o) All Proceeds and products of the foregoing, including without
limitation all insurance pertaining to the foregoing and proceeds thereof.

Notwithstanding the foregoing, "Collateral" shall not include (i) any stock in a
Controlled Foreign Corporation (within the meaning of Section 957 of the Code)
in excess of 65% of such stock or in excess of 65% of the total combined voting
power of all classes of such entity entitled to vote, (ii) any General
Intangibles or other rights arising under any contracts, instruments, licenses
or other documents to the extent that the grant of a Lien or security interest
therein would (A) result in a breach of the terms of, or constitute a default
under, such contract, instrument, license, agreement or other document (other
than to the extent that any such term would be rendered ineffective pursuant to
Section 9-406, 9-407 or 9-408 of the Uniform Commercial Code or any successor
provision of the Uniform Commercial Code of any relevant jurisdiction or other
applicable law) or (B) give any other party to such contract, instrument,
license or other document the right to terminate its obligations thereunder
pursuant to a valid and enforceable provision (including without limitation in
connection with the operation of Section 9-406, 9-407 or 9-408 of the Uniform
Commercial Code or any other applicable law), (iii) any personal property
(including motor vehicles) in respect of which perfection of a Lien is not
either (A) governed by the Uniform Commercial Code or (B) accomplished by
appropriate evidence of the lien being recorded in the U.S. Copyright Office or
the U.S. Patent and Trademark Office, or (iv) any property subject to any Pledge
Agreement.

SECTION 3. Representations and Warranties.

            Each Debtor represents and warrants to the Trustee and to each
Holder as follows:

            3.1 Binding Obligation; Perfection. This Agreement constitutes a
valid and binding obligation of such Debtor, enforceable against it in
accordance with its terms, except as enforcement may be limited by bankruptcy,
insolvency, reorganization, moratorium or similar laws affecting the enforcement
of creditors' rights generally and by general equitable principles (whether
enforcement is sought by proceedings in equity or at law). Subject to taking the
actions specified in Section 3.5, the Trustee has a valid and perfected first
priority Security Interest in the Collateral consisting of Trademarks and all
proceeds thereof, and a valid and perfected second priority Security Interest in
all other Collateral to the extent that a security interest therein may be
perfected by the filing of a financing statement and the other actions referred
to in Section 3.5, securing the payment of the Obligations, and each Debtor
acknowledges that such Security Interests are entitled to all of the rights,
priorities and benefits afforded by the UCC or other applicable law as enacted
in any relevant jurisdiction within the United States which relates to perfected
security interests subject to Permitted Liens.

            3.2 Organizational Information. Schedule I hereto sets forth, as of
the date hereof, (i) the full, correct and current name of each Debtor, as its
appears in each Debtor's organizational documents, (ii) any names of such Debtor
other than such Debtor's current name, as set forth on such Debtor's
organizational documents used during the five (5) year period preceding the date
hereof, (iii) such Debtor's type of organization, (iv) such Debtor's

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jurisdiction of organization and (v) such Debtor's organizational identification
number (except where such Debtor's jurisdiction of organization does not assign
organizational numbers).

            3.3 Collateral Locations. Schedule II hereto sets forth all
addresses at which, as of the date hereof, any material portion of the
Collateral consisting of Equipment or Inventory is located, indicating for each
whether such location is owned or leased by a Debtor, or owned or operated by a
third-party such as a warehouseman, consignee or processor. Schedule II
indicates, as of the date hereof, which of the foregoing addresses serves as
each Debtor's chief executive office. Schedule II sets forth, as of the date
hereof, the address of all real properties maintained by each Debtor, leased or
owned, on which any material portion of the Fixtures are located, together with
the name and address of the record owner of each such property.

            3.4 Existing Liens. As of the date hereof, each Debtor owns the
Collateral free and clear of Liens, except for Permitted Liens.

            3.5 Governmental Authorizations; Consents; Federal Registration
Collateral. Except as set forth in this Section 3.5, no authorization, approval
or other action by, and no notice to or filing with, any domestic or foreign
governmental authority or regulatory body or consent of any other Person is
required for (i) the grant by any Debtor of the Security Interests granted
hereby or for the execution, delivery or performance of this Agreement by such
Debtor; or (ii) the exercise by the Trustee of its rights and remedies hereunder
other than such as has already been obtained or taken or the failure of which to
obtain would not be reasonably likely to have a Material Adverse Effect. Except
as set forth on the schedules to the Copyright Security Agreement and the
Trademark Security Agreement, none of the material Collateral is Federal
Registration Collateral. Except for (a) the filing of UCC financing statements
with the Secretary of State of each Debtor's jurisdiction of organization, (b)
the filing of UCC financing statements in appropriate local jurisdictions with
respect to Fixtures, (c) the filing of any necessary registrations or notices
and the issue of recordations thereof, as applicable, in respect of any and all
Federal Registration Collateral (other than Trademarks) and (d) with respect to
Trademarks, the filing of the Trademark Security Agreement with the U.S. Patent
and Trademark Office, together with an appropriately completed recordation form
and the issuance of recordation thereof, no authorization, approval or other
action by, and no notice to or filing with, any domestic or foreign governmental
authority or regulatory body or consent of any other Person is required for the
perfection of the Security Interests granted hereby and pursuant to any other
Security Documents in the Collateral in which a lien may be perfected under
United States, state or federal law; provided, however, that additional
registrations, notices and issuances of recordation, as applicable, may be
necessary with respect to Federal Registration Collateral acquired by a Debtor
after the date hereof.

            3.6 Accounts. To each Debtor's knowledge, each material Account
constitutes the legally valid and binding obligation of the applicable Account
Debtor. No Account Debtor has any defense, set-off, claim or counterclaim
against any Debtor that can be asserted against the Trustee, whether in any
proceeding to enforce the Trustee's rights in

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the Collateral or otherwise, except defenses, setoffs, claims or counterclaims
that are not, in the aggregate, material to the value of the Accounts taken as a
whole.

            3.7 Inventory. To each Debtor's knowledge, all material Inventory
is, and will be, of good and merchantable quality, free from any material
defects. None of any Debtor's Inventory has been produced in violation of any
provision of the Fair Labor Standards Act of 1938, or in violation of any other
law in any material respect.

            3.8 Intellectual Property. The Trademarks listed on the schedule to
the Trademark Security Agreement constitute all the federally registered
Trademarks owned by each Debtor. The Copyrights listed on the schedule to the
Copyright Security Agreement constitute the material federally registered
Copyrights in the original programming of the Debtors. No Debtor currently owns
any Patents. All of the registrations for such Intellectual Property are
subsisting and, to each Debtor's knowledge, enforceable and all filings
necessary to maintain the effectiveness of such registrations have been made.
Except as set forth on Schedule V, no Debtor has received written notice of any
material suits or actions commenced or threatened with reference to any
Intellectual Property of any Debtor which are unresolved. The execution,
delivery and performance of this Agreement, the Copyright Security Agreement or
the Trademark Security Agreement by any Debtor will not violate or cause a
default under any agreement pertaining to Intellectual Property to which such
Debtor is a party that is included in the Collateral, other than any such
violation or default that would not reasonably be expected to have a Material
Adverse Effect.

            3.9 Certain Collateral Disclosures. Except in each case as set forth
on Schedule IV hereto, no Debtor has an ownership interest in any material
Chattel Paper, Letter-of-Credit Rights, Commercial Tort Claims, Documents, or
Equipment covered by any certificate of title.

            3.10 Control Arrangements. Except for Control arising by operation
of law in favor of banks and securities intermediaries having custody over
deposit accounts and securities accounts, to the knowledge of each Debtor, no
Person (other than the Administrative Agent) has Control of any deposit
accounts, Electronic Chattel Paper, Investment Property or Letter-of-Credit
Rights in which such Debtor has any interest and which constitutes part of the
Collateral.

            3.11 Accurate Information. All factual information (taken as a
whole) heretofore or contemporaneously furnished by or on behalf of any Debtor
in writing to the Trustee or any Holder (including, without limitation, all
information contained in the Indenture and Security Documents) for purposes of
or in connection with this Agreement or any transaction contemplated herein is,
and all other such factual information (taken as a whole) hereafter furnished by
or on behalf of any Debtor in writing to the Trustee or any Holder for purposes
of or in connection with this Agreement or any transaction contemplated herein,
when taken as a whole, does not contain as of the date furnished any untrue
statement of material fact or omit to state a material fact necessary in order
to make the statements contained herein or therein, in light of the
circumstances under which they were made, not misleading; provided that to the
extent any such factual information was based upon or constituted a forecast or
projection, such Debtor represents only that it acted in good faith

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and utilized reasonable assumptions and due care in the preparation of such
factual information.

            3.12 Survival of Representations and Warranties. All representations
and warranties of each Debtor contained in this Agreement shall survive the
execution and delivery of this Agreement.

SECTION 4. Covenants and Further Assurances.

            Until the Obligations are paid in full and the Indenture has
terminated:

            4.1 Name or Entity Changes. No Debtor shall change such Debtor's
name, type of organization or jurisdiction of organization without providing
thirty (30) days' prior written notice to the Trustee. If any Debtor is at any
time assigned a new organizational identification number, it shall promptly
notify the Trustee thereof in writing.

            4.2 Accounts. Except as otherwise provided in this Section 4.2, each
Debtor shall continue to collect, at its own expense, all amounts due or to
become due to such Debtor with respect to Accounts and apply such amounts as are
so collected to the outstanding balances thereof. In connection with such
collections, each Debtor may take (and, at the Trustee's direction during the
continuance of any Event of Default, shall take) such action as such Debtor (or,
during the continuance of an Event of Default, the Trustee) may deem necessary
or advisable to enforce collection of the Accounts. The Trustee shall have the
right if an Event of Default has occurred and is continuing to: (i) notify the
Account Debtor under any Accounts (or any other Person obligated thereon) of the
Lien granted upon such Accounts in favor of the Trustee and to direct such
Account Debtors and other Persons to make payment of all amounts due or to
become due or otherwise render performance directly to the Trustee; (ii)
exercise the rights of any Debtor with respect to the obligation of the Account
Debtor to make payment or otherwise render performance to such Debtor and with
respect to any property that secures the obligations of the Account Debtor or
any other Person obligated on the Collateral; and (iii) adjust, settle or
compromise the amount or payment of such Accounts. If an Event of Default has
occurred and is continuing, all amounts and Proceeds received by any Debtor with
respect to the Accounts shall be received in trust for the benefit of the
Trustee (on behalf of itself and the Holders), and, at the Trustee's request,
shall be segregated from other funds of such Debtor and forthwith paid over to
the Trustee in the same form as so received (with any necessary endorsement) to
be applied against the Obligations.

            4.3 Intellectual Property.

            (a) Each Debtor shall concurrently herewith deliver to the Trustee
each Copyright Security Agreement and Trademark Security Agreement and all other
documents, instruments and other items as may be necessary for the Trustee to
file such agreements with the U.S. Copyright Office and the U.S. Patent and
Trademark Office, as applicable, except any recordation cover sheets and the
applicable recording fee pertaining thereto (which shall be payable in
accordance with Section 7 hereof).

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            (b) In the event any Debtor acquires or becomes the owner of any new
or additional Federal Registration Collateral consisting of Patents, Trademarks,
or material registered Copyrights in original programming of any Debtor, such
Debtor shall give to the Trustee prompt written notice thereof, and shall within
thirty (30) days of such notice amend (and hereby authorizes the Trustee to
amend) the schedules to the respective security agreements or enter into new or
additional security agreements to include any such new or additional Federal
Registration Collateral thereon and provide all other documents, instruments and
other items as may be necessary for the Trustee to file such agreements with the
U.S. Copyright Office and the U.S. Patent and Trademark Office, as applicable,
except any recordation cover sheets and the applicable recording fee pertaining
thereto (which shall be payable in accordance with Section 7 hereof).

            (c) Each Debtor shall: (i) diligently prosecute any application
filed by such Debtor to register material Intellectual Property at any time
pending; (ii) make application for registration or issuance of all
newly-acquired material Intellectual Property owned by such Debtor as reasonably
deemed appropriate by such Debtor; and (iii) preserve and maintain all rights in
the material Intellectual Property owned by such Debtor unless such Debtor has a
purpose in the ordinary course of business to do otherwise and to do otherwise
could not reasonably be expected to have a Material Adverse Effect.

            (d) No Debtor shall abandon any right to file an application to
register material Intellectual Property, nor shall any Debtor abandon any
pending application to register material Intellectual Property or material
registered Intellectual Property unless such Debtor has a purpose in the
ordinary course of business to do otherwise and to do otherwise could not
reasonably be expected to have a Material Adverse Effect. Each Debtor will
notify the Trustee promptly if it knows that any application or registration
relating to any Patents, Trademarks, or material registered Copyrights in
original programming of such Debtor owned by it may become abandoned or
dedicated to the public, or of any adverse determination or development
(including the institution of, or any adverse determination or development in,
any proceeding in the U.S. Copyright Office, the U.S. Patent and Trademark
Office or any court) regarding such Debtor's ownership of such Federal
Registration Collateral, or its right to maintain, register or patent the same.
If any of any Debtor's rights to any Federal Registration Collateral consisting
of material Intellectual Property are infringed, misappropriated or diluted by a
third party, such Debtor will notify the Trustee within thirty (30) days after
it learns thereof and will, unless such Debtor shall reasonably determine that
such undertaking would not be commercially reasonable, promptly sue for
infringement, misappropriation or dilution and to recover any and all damages
for such infringement, misappropriation or dilution, and/or take such other
actions as such Debtor shall reasonably deem appropriate under the circumstances
to protect such Federal Registration Collateral.

            (e) No Debtor shall sell or assign or otherwise transfer or dispose
of its interest in, or grant any license under, or otherwise encumber any
Intellectual Property or enter into any other agreement with respect to any
material Intellectual Property included in the Collateral, except in the
ordinary course and consistent with past practices and except as permitted
hereunder or under the Indenture. Each Debtor further agrees that it shall not
take any action or permit any action to be taken by others subject to its
control, including licensees,

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or knowingly fail to take any action which could materially and adversely affect
the validity or enforcement of the rights granted to the Trustee under this
Agreement, except as permitted hereunder or under the Indenture.

            (f) Each Debtor agrees to maintain the quality of any and all
products in connection with which the Trademarks are used, unless such Debtor
has a purpose in the ordinary course of business to do otherwise and to do
otherwise could not reasonably be expected to have a Material Adverse Effect.
During the continuance of an Event of Default, each Debtor agrees that the
Trustee, or a conservator appointed by the Trustee, shall have the right to
establish such additional product quality controls as the Trustee, or said
conservator, in its reasonable judgment, may deem necessary to assure the
maintenance of the quality of products sold by such Debtor under the Trademarks.

            (g) Notwithstanding any Enforcement Action (as defined in the
Intercreditor Agreement) by the Administrative Agent against any Intellectual
Property or the existence of an Enforcement Period (as defined in the
Intercreditor Agreement) with respect thereto, each Debtor hereby grants to the
Trustee effective during the existence of an Event of Default, the following
licenses with respect to the Intellectual Property to the extent it can lawfully
grant such licenses and subject to any third party rights to such Intellectual
Property (each, a "License"): (i) for a period of one (1) year after the Trustee
completes foreclosure in the Trustee's security interest in the Collateral
consisting of Inventory (including work-in-process), a license to use the
Intellectual Property for the purpose of completing the production, printing
and/or manufacture of work-in-process Inventory, provided that such Inventory is
completed in a manner that maintains the level of quality of such Inventory as
comparable to that which prevailed prior to the Events of Default; and (ii) a
license to use the Intellectual Property for the purpose of selling completed
Inventory, including in such License, the right to make public displays or
performances of any Collateral consisting of completed Inventory until such
Inventory is sold off. Each License shall be worldwide, assignable,
non-exclusive, include the right to sublicense and shall be free of obligation
to pay royalties. If a sale, exclusive license or other transfer or conveyance
is made of any Intellectual Property in compliance with the terms of the
Indenture and the Security Documents, the Trustee's Security Interest in the
subject Intellectual Property shall not be released or deemed released until the
transferee or licensee thereof has executed a document in form reasonably
acceptable to the Trustee, confirming and acknowledging the survival of the
Licenses.

            (h) If an Event of Default shall have occurred and be continuing,
the Trustee may (without assuming any obligation or liability thereunder), at
any time and from time to time, in its sole and reasonable discretion, enforce
(and shall have the exclusive right to enforce, subject to the rights of the
Administrative Agent under the Intercreditor Agreement) against any licensee or
sublicensee all rights and remedies of each Debtor in, to and under any of its
Intellectual Property and take or refrain from taking any action under any
thereof, and each Debtor releases the Trustee and each other Secured Party from
liability for, and agrees to hold the Trustee and each other Secured Party free
and harmless from and against any claims and expenses arising out of, any lawful
action so taken or omitted to be taken with respect thereto, except for claims
and expenses arising from the Trustee's or such Secured Party's gross negligence
or willful misconduct.

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            (i) If the Trustee elects to exercise its remedies as set forth in
that certain Deed of Trust With Assignment of Rents Security Agreement and
Fixture Filing of even date herewith by Playboy Enterprises International, Inc.
for the benefit of the Administrative Agent, each Debtor acknowledges and agrees
that the Administrative Agent and the Trustee, their assigns and any purchaser
of the Playboy Mansion may use the term "Playboy Mansion" when describing such
Playboy Mansion to the extent that such use constitutes a "fair use" under
applicable trademark law.

            4.4 Bailees. No material Collateral consisting of Equipment or
Inventory shall at any time be in the possession or control of any warehouse,
consignee, bailee or any of any Debtor's agents or processors without prior
written notice to the Trustee and the receipt by the Trustee, if the Trustee has
so requested, of warehouse receipts or bailee lien waivers (as applicable)
reasonably satisfactory to the Trustee prior to the commencement of such
possession or control. If an Event of Default has occurred and is continuing,
each Debtor shall, upon the request of the Trustee, notify any such warehouse,
consignee, bailee, agent or processor of the Security Interests, shall instruct
such Person to hold all such Collateral for the Trustee's account subject to the
Trustee's instructions and shall obtain an acknowledgement from such Person that
such Person holds the Collateral for the Trustee's benefit.

            4.5 Chattel Paper and Instruments. Except to the extent previously
delivered to the Administrative Agent pursuant to the BA Security Documents,
each Debtor shall deliver to the Trustee all Tangible Chattel Paper and all
Instruments (other than Tangible Chattel Paper and Instruments whose value does
not exceed $25,000) duly endorsed and accompanied by duly executed instruments
of transfer or assignment, all in form and substance reasonably satisfactory to
the Trustee. Each Debtor shall use commercially reasonable efforts to provide
the Trustee with Control of all Electronic Chattel Paper by having the Trustee
identified as the assignee of the Records pertaining to the single authoritative
copy thereof and otherwise complying with the applicable elements of Control set
forth in the UCC; provided that no Debtor shall be required to comply with the
requirement of this sentence to the extent that the Administrative Agent has
Control of such Electronic Chattel Paper pursuant to the BA Security Documents.
If an Event of Default has occurred and is continuing, each Debtor also shall
deliver to the Trustee all security agreements securing any Chattel Paper and
securing any Instruments; provided that no Debtor shall be required to comply
with the requirement of this sentence to the extent that the Administrative
Agent has Control of such Chattel Paper or Instrument pursuant to the BA
Security Documents. If an Event of Default has occurred and is continuing, each
Debtor will mark conspicuously all Chattel Paper and all Instruments with a
legend, in form and substance reasonably satisfactory to the Trustee, indicating
that such Chattel Paper and such Instruments are subject to the Security
Interests.

            4.6 Letters of Credit. At the Trustee's request, each Debtor shall
use commercially reasonable efforts to deliver to the Trustee all Letters of
Credit with a value in excess of $25,000 which have not been delivered to the
Administrative Agent under the BA Security Documents, duly endorsed and
accompanied by duly executed instruments of transfer or assignment, all in form
and substance reasonably satisfactory to the Trustee. Each Debtor shall use
commercially reasonable efforts to take any and all actions as may be

                                       11
<PAGE>

necessary from time to time to cause the Trustee to obtain exclusive Control of
any Letter-of-Credit Rights owned by such Debtor in a manner reasonably
acceptable to the Trustee; provided that no Debtor shall be required to comply
with the requirement of this sentence if the Administrative Agent has Control of
such Letter of Credit Rights pursuant to the BA Security Documents.

            4.7 Equipment. Each Debtor shall cause all material Equipment and
other material properties to be maintained and preserved in good and working
order, ordinary wear and tear excepted, and promptly make or cause to be made
all necessary repairs, replacements and other improvements in connection
therewith (other than with respect to obsolete Equipment), except where the
failure to do so would not reasonably be expected to have a Material Adverse
Effect. With respect to any item of Equipment that is covered by a certificate
of title under a statute of any jurisdiction under the law of which indication
of a security interest on such certificate is required as a condition of
perfection thereof, upon request of the Trustee, each Debtor shall deliver to
the Trustee any and all certificates of title, applications for title or similar
evidence of ownership of all such Equipment which have not been delivered to the
Administrative Agent under the BA Security Documents, and which has a value in
excess of $10,000, and shall execute and file with the registrar of motor
vehicles or other appropriate authority in such jurisdiction an application or
other document requesting the notation or other indication of the security
interest created hereunder on such certificate of title.

            4.8 Investment Property. At the Trustee's request, each Debtor shall
take any and all actions as may be commercially reasonable to (i) cause the
Trustee to obtain exclusive Control of any Investment Property owned by such
Debtor in a manner reasonably acceptable to the Trustee and (ii) request from
any issuers of Investment Property and such other Persons, for the benefit of
the Trustee, written confirmation of the Trustee's Control over such Investment
Property upon terms and conditions reasonably acceptable to the Trustee,
excluding in each case, however, the Investment Property described in Schedules
VI hereto; provided that no Debtor shall be required to comply with the
requirement of this sentence if the Administrative Agent has Control of such
Investment Property pursuant to the BA Security Documents .

            4.9 General Intangibles. Each Debtor shall use commercially
reasonable efforts to obtain any consents, waivers or agreements necessary to
enable the Trustee to exercise remedies hereunder with respect to any of such
Debtor's rights under any material General Intangibles, including such Debtor's
rights as a licensee of material software and other Intellectual Property.

            4.10 Commercial Tort Claims. Each Debtor shall advise the Trustee
upon such Debtor becoming aware that it has any interest in a material
Commercial Tort Claim. With respect to any material Commercial Tort Claim in
which a Debtor has any interest, such Debtor shall execute and deliver such
documents as may be necessary to create and perfect the Trustee's security
interest in such Commercial Tort Claim.

            4.11 Taxes and Claims. Each Debtor shall pay when due all material
property and other taxes, assessments and governmental charges imposed upon, and
all

                                       12
<PAGE>

claims against, the Collateral (including claims for labor, materials and
supplies); provided that no such tax, assessment, charge or claim need be paid
to the extent (i) it is not delinquent or thereafter payable without penalty, or
(ii) it is being contested in good faith by appropriate proceedings diligently
conducted and for which adequate reserves have been provided in accordance with
GAAP or (iii) the failure to pay such would not reasonably be expected to have a
Material Adverse Effect.

            4.12 Collateral Generally.

            (a) Each Debtor hereby authorizes the Trustee to file one or more
financing or continuation statements, and amendments thereto (or similar
documents required by any laws of any applicable jurisdiction), relating to all
or any part of the Collateral without the signature of such Debtor (to the
extent such signature is required under the laws of any applicable
jurisdiction), which financing statements may describe the Collateral as "all
assets" or "all personal property" or words of like import.

            (b) Each Debtor will furnish to the Trustee, from time to time upon
reasonable request by the Trustee, statements and schedules further identifying,
updating, and describing the Collateral and such other information, reports and
evidence concerning the Collateral as the Trustee may reasonably request, all in
reasonable detail.

            (c) No Debtor shall use or permit any Collateral to be used
unlawfully in any material respect or in violation of any provision of
applicable law, or any policy of insurance covering any of the Collateral, in
each case, in any material respect.

            (d) Each Debtor shall give the Trustee not less than thirty (30)
days prior written notice of any change in such Debtor's chief executive office
and principal place of business or of any new location of business or any new
location for any of the Collateral that is material to such Debtor and that
consists of Equipment or Inventory. With respect to any such new location, upon
the Trustee's request, each Debtor shall execute and deliver such instruments,
documents and notices and take such actions as may be necessary to create and
perfect the Security Interests under the laws of the United States.

            (e) Each Debtor shall keep full and accurate books and records
relating to the Collateral and, if an Event of Default has occurred and is
continuing, at the request of the Trustee shall stamp or otherwise mark such
books and records in such manner as the Trustee may reasonably request
indicating that the Collateral is subject to the Security Interests.

            (f) Except for the safe custody of any Collateral in its possession
and the accounting for monies actually received hereunder, each Debtor agrees
that the Trustee shall have no duties concerning the custody and preservation of
any Collateral in its possession (or in the possession of any agent or bailee)
or with respect to any income thereon or the preservation of rights against
prior parties or any other rights pertaining thereto. The Trustee shall be
deemed to have exercised reasonable care in the custody and preservation of the
Collateral in its possession if it takes such action for that purpose as a
Debtor reasonably requests in writing, but failure of the Trustee to comply with
any such request at any time shall not of itself be deemed a failure to exercise
reasonable care. The Trustee shall not be

                                       13
<PAGE>

liable or responsible for any loss or damage to any of the Collateral, or for
any diminution in the value thereof, by reason of the act or omission of any
warehouseman, carrier, forwarding agency, consignee or other agent or bailee
reasonably selected by the Trustee.

            (g) Each Debtor assumes all liability and responsibility in
connection with the Collateral acquired by it, and the liability of such Debtor
to pay the Obligations shall in no way be affected or diminished by reason of
the fact that such Collateral may be lost, stolen, damaged, or for any reason
whatsoever unavailable to such Debtor.

            (h) The Trustee agrees that upon payment in full of all Obligations,
the Security Interests shall automatically terminate and all rights to the
Collateral shall revert to the Debtors. The Trustee further agrees that upon
such termination of the Security Interests or release or re-assignment of any
Collateral, The Trustee shall, at the expense of each Debtor, return all
Collateral then in the Trustee's possession and execute and deliver to such
Debtor such documents as such Debtor shall reasonably request to evidence the
termination of the Security Interests or the release and re-assignment of such
Collateral, as the case may be.

            4.13 Liens. The Collateral will be subject to no Liens, other than
Permitted Liens.

            4.14 Maintenance of Insurance. Each Debtor shall maintain with
reputable insurance companies that are not Affiliates of any Debtor, insurance
with respect to its properties and business against loss or damage of the kinds
customarily insured against by Persons engaged in the same or similar business,
of such types and in such amounts (after giving effect to any self-insurance
compatible with the following standards) as are customarily carried under
similar circumstances by such other Persons and providing for not less than
thirty (30) days' prior notice to the Trustee of termination, lapse or
cancellation of such insurance.

            If any Debtor fails to maintain the insurance required by the
immediately preceding paragraph, the Trustee may purchase such insurance at such
Debtor's expense, to protect the Trustee's interests in the Collateral. This
insurance may, but need not, protect the interests of such Debtor. The coverage
that the Trustee purchases may not pay any claim that such Debtor may make or
any claim that is made against such Debtor in connection with the Collateral.
Such Debtor may later cancel any insurance purchased by the Trustee, but only
after providing the Trustee with evidence that such Debtor has obtained
insurance as required by this Agreement. If the Trustee purchases insurance for
the Collateral, such Debtor will be responsible for the costs of that insurance,
including interest and any other charges that may be imposed in connection with
the placement of the insurance, until the effective date of the cancellation or
expiration of the insurance. The costs of the insurance may be added to the
Obligations. The costs of the insurance may be more than the cost of insurance
that such Debtor may be able to obtain on its own.

                                       14
<PAGE>

            4.15 Federal Compliance.

            (a) Each Debtor shall notify the Trustee in writing upon acquiring
any ownership interest in Federal Registration Collateral. Such Debtor shall
take such steps as may be necessary in order to perfect the Trustee's Security
Interests in Federal Registration Collateral.

            (b) Each Debtor shall notify the Trustee in writing of any
Collateral which constitutes a claim against the United States government or any
instrumentality or agency thereof, the assignment of which claim is restricted
by federal law. Upon the reasonable request of the Trustee, such Debtor shall
take such steps as may be necessary to comply with any applicable federal
assignment of claims laws and other comparable laws.

            (c) No Debtor shall produce any Inventory in violation of any
provision of the Fair Labor Standards Act of 1938, or in violation of any other
law.

            4.16 Debtor Remains Liable. Anything herein to the contrary
notwithstanding: (i) each Debtor shall remain liable under the contracts and
agreements included in the Collateral to the extent set forth therein and shall
perform all of its duties and obligations thereunder to the same extent as if
this Agreement had not been executed; (ii) the exercise by the Trustee of any of
the rights hereunder shall not release any Debtor from any of its duties or
obligations under the contracts and agreements included in the Collateral; (iii)
neither the Trustee nor any Holder shall have any obligation or liability under
the contracts and agreements included in the Collateral by reason of this
Agreement, nor shall the Trustee nor any Holder be obligated to perform any of
the obligations or duties of any Debtor thereunder or to take any action to
collect or enforce any claim for payment assigned hereunder; and (iv) neither
the Trustee nor any Holder shall have any liability in contract or tort for any
Debtor's acts or omissions.

            4.17 Other Documents and Actions. Each Debtor shall, from time to
time, at its expense, promptly execute and deliver all further instruments,
documents and notices and take all further action that may be necessary in order
to create, perfect and protect any Security Interests, or to enable the Trustee
to exercise and enforce its rights and remedies hereunder or under the Indenture
or any other Security Document with respect to any Collateral.

SECTION 5. Remedial Provisions.

            (a) Upon the occurrence and during the continuance of an Event of
Default, the Trustee or its attorneys shall have the right without notice or
demand or legal process (unless the same shall be required by applicable law),
personally, or by an agent, (i) to enter upon, occupy and use any premises owned
or leased by any Debtor or where the Collateral is located (or is believed to be
located) until the Obligations are paid in full without any obligation to pay
rent to such Debtor, to render the Collateral useable or saleable and to remove
the Collateral or any part thereof to the premises of the Trustee for such time
as the Trustee may desire in order to effectively collect or liquidate the
Collateral and use in connection with such removal any and all services,
supplies and other facilities of such

                                       15
<PAGE>

Debtor; (ii) to take possession of any Debtor's original books and records, to
obtain access to any Debtor's data processing equipment, computer hardware and
Software relating to the Collateral and to use all of the foregoing and the
information contained therein in any manner the Trustee deems appropriate; and
(iii) to notify postal authorities to change the address for delivery of any
Debtor's mail to an address designated by the Trustee and to receive, open and
dispose of all mail addressed to such Debtor. If any Debtor's books and records
are prepared or maintained by an accounting service, contractor or other third
party agent, such Debtor hereby irrevocably authorizes such service, contractor
or other agent, upon notice by the Trustee to such Person that an Event of
Default has occurred and is continuing, to deliver to the Trustee or its
designees such books and records, and to follow the Trustee's instructions with
respect to further services to be rendered.

            (b) If any Event of Default shall have occurred and be continuing,
the Trustee may exercise in respect of the Collateral, in addition to all other
rights and remedies provided for herein or otherwise available to it, all the
rights and remedies of the Trustee on default under the UCC (whether or not the
UCC applies to the affected Collateral) and also may: (i) require any Debtor to,
and each Debtor hereby agrees that it will, at its expense and upon request of
the Trustee forthwith, assemble all or part of the Collateral as directed by the
Trustee and make it available to the Trustee at any place or places designated
by the Trustee which is reasonably convenient to the Trustee in which event such
Debtor shall at its own expense (A) forthwith cause the same to be moved to the
place or places so designated by the Trustee, (B) store and keep any Collateral
so delivered to the Trustee at such place or places pending further action by
the Trustee, and (C) while Collateral shall be so stored and kept, provide such
guards and maintenance services as shall be necessary to protect the same and to
preserve and maintain the Collateral in good condition; (ii) withdraw all cash
in any deposit account and apply such monies in payment of the Obligations; and
(iii) without notice except as specified below, sell, lease, license or
otherwise dispose of the Collateral or any part thereof by one or more
contracts, in one or more parcels at public or private sale, and without the
necessity of gathering at the place of sale of the property to be sold, at any
of the Trustee's offices or elsewhere, at such time or times, for cash, on
credit or for future delivery, and at such price or prices and upon such other
terms as the Trustee may deem commercially reasonable.

            (c) Each Debtor agrees that, to the extent notice of sale shall be
required by law, a reasonable authenticated notification of disposition shall be
a notification given at least ten (10) days prior to any such sale and such
notice shall (i) describe the Trustee and such Debtor, (ii) describe the
Collateral that is the subject of the intended disposition, (iii) state the
method of intended disposition, (iv) state that such Debtor is entitled to an
accounting of the Obligations and state the charge, if any, for an accounting,
and (v) state the time and place of any public disposition or the time after
which any private sale is to be made. At any sale of the Collateral, if
permitted by law, the Trustee may bid (which bid may be, in whole or in part, in
the form of discharge of any Debtor's Obligations) for the purchase, lease,
license or other

                                       16
<PAGE>

disposition of the Collateral or any portion thereof for the account of the
Trustee (on behalf of the Holders). The Trustee shall not be obligated to make
any sale of Collateral regardless of notice of sale having been given. The
Trustee may disclaim any warranties that might arise in connection with the
sale, lease, license or other disposition of the Collateral and have no
obligation to provide any warranties at such time. The Trustee may adjourn any
public or private sale from time to time by announcement at the time and place
fixed therefor, and such sale may, without further notice, be made at the time
and place to which it was so adjourned. To the extent permitted by law, each
Debtor hereby specifically waives all rights of redemption, stay or appraisal,
which it has or may have under any law now existing or hereafter enacted.

            (d) If an Event of Default has occurred and is continuing, each
Debtor hereby irrevocably authorizes and empowers the Trustee, without limiting
any other authorizations or empowerments contained in the Indenture or any of
the other Security Documents, to assert, either directly or on behalf of such
Debtor, any claims such Debtor may have, from time to time, against any other
party to any of the agreements to which such Debtor is a party or to otherwise
exercise any right or remedy of such Debtor under any such agreements
(including, without limitation, the right to enforce directly against any party
to any such agreement all of such Debtor's rights thereunder, to make all
demands and give all notices and to make all requests required or permitted to
be made by such Debtor thereunder).

            (e) If an Event of Default has occurred and is continuing, the
proceeds of any collection, enforcement, sale or other disposition of, or other
realization upon, all or any part of the Collateral and any cash held in any
deposit account shall be applied in accordance with the applicable provisions of
the Indenture.

            (f) Each Debtor acknowledges and agrees that a breach of any of the
covenants contained in Sections 4, 5 and 6 hereof will cause irreparable injury
to the Trustee and that the Trustee has no adequate remedy at law in respect of
such breaches and therefore agrees, without limiting the right of the Trustee to
seek and obtain specific performance of other obligations of such Debtor
contained in this Agreement, that the covenants of such Debtor contained in the
Sections referred to in this Section shall be specifically enforceable against
such Debtor.

            (g) No failure or delay on the part of the Trustee or any Holder in
the exercise of any power, right or privilege hereunder shall impair such power,
right or privilege or be construed to be a waiver of any default or acquiescence
therein, nor shall any single or partial exercise of any such power, right or
privilege preclude other or further exercise thereof or any other right, power
or privilege. All rights and remedies existing under this Agreement are
cumulative to, and not exclusive of, any rights or remedies otherwise available.

SECTION 6. Attorney-in-Fact.

            Each Debtor hereby irrevocably appoints the Trustee, its nominee,
and any other Person whom the Trustee may designate, as such Debtor's
attorney-in-fact, with full power during the existence of any Event of Default,
(i) to sign such Debtor's name on verifications of Accounts and other
Collateral; (ii) to send requests for verification of Collateral to such
Debtor's customers, Account Debtors and other obligors; (iii) to endorse such
Debtor's name on any checks, notes, acceptances, money orders, drafts, and any
other

                                       17
<PAGE>

forms of payment or security that may come into the Trustee's possession or on
any assignments, stock powers, or other instruments of transfer relating to the
Collateral or any part thereof; (iv) to sign such Debtor's name on any invoice
or bill of lading relating to any Collateral, on claims to enforce collection of
any Collateral, on notices to and drafts against customers and Account Debtors
and other obligors, on schedules and assignments of Collateral, on notices of
assignment and on public records; (v) to notify the post office authorities to
change the address for delivery of each Debtor's mail to an address designated
by the Trustee; (vi) to receive, open and dispose of all mail addressed to such
Debtor; and (vii) to do all things necessary to carry out the terms and
provisions of this Agreement. To the fullest extent permitted by law, each
Debtor hereby ratifies and approves all acts of any such attorney and agrees
that neither the Trustee nor any such attorney will be liable for any acts or
omissions nor for any error of judgment or mistake of fact or law other than,
and to the extent of, such Person's gross negligence or willful misconduct. The
foregoing powers of attorney, being coupled with an interest, are irrevocable
until the Obligations have been fully paid and satisfied and the Security
Interests shall have terminated in accordance with the terms hereof.

SECTION 7. Expenses.

            Each Debtor hereby agrees to promptly pay all fees, costs and
expenses (including reasonable attorneys' fees and expenses) incurred in
connection with (i) protecting, storing, warehousing, appraising, insuring,
handling, maintaining and shipping the Collateral, (ii) creating, perfecting,
maintaining and enforcing the Trustee's Liens and (iii) collecting, enforcing,
retaking, holding, preparing for disposition, processing and disposing of the
Collateral.

            If any Debtor fails to promptly pay any portion of the above costs,
fees and expenses when due or to perform any other obligation of such Debtor
under this Agreement, the Trustee may, at its option, but shall not be required
to, pay or perform the same and charge such Debtor's account for all reasonable
fees, all costs and all expenses incurred therefor, and each Debtor agrees to
reimburse the Trustee therefor promptly upon written demand. All sums so paid or
incurred by the Trustee or any Holder for any of the foregoing, any and all
other sums for which any Debtor may become liable hereunder and all fees, costs
and expenses (including reasonable attorneys' fees, all legal expenses and all
court costs) incurred by the Trustee in enforcing or protecting the Security
Interests or any of their rights or remedies under this Agreement shall
constitute Obligations and, to the extent not paid when due, shall bear interest
until paid at the Default Rate and shall be secured by the Collateral.

SECTION 8. Notices.

            All notices, approvals, requests, demands and other communications
hereunder to be delivered to any Debtor shall be sent c/o PEI Holdings, Inc. in
accordance with the notice provision of the Indenture and all notices,
approvals, requests, demands and other communications hereunder shall be given
in accordance with the notice provision of the Indenture.

                                       18
<PAGE>

SECTION 9. Successors and Assigns.

            This Agreement shall be binding upon and insure to the benefit of
the parties hereto and their respective successors and assigns except that no
Debtor may assign its rights or obligations hereunder without the written
consent of the Trustee. No sales of participations, other sales, assignments,
transfers or other dispositions of any agreement governing or instrument
evidencing the Obligations or any portion thereof or interest therein, made in
accordance with the applicable provisions of the Indenture shall in any manner
impair the Lien granted to the Trustee, for the benefit of the Trustee and the
Holders, hereunder.

SECTION 10. Changes in Writing.

            No amendment, modification, termination or waiver of any provision
of this Agreement shall be effective unless the same shall be in writing signed
by the Trustee.

SECTION 11. GOVERNING LAW; SUBMISSION TO JURISDICTION.

            THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE LAWS OF THE STATE OF ILLINOIS APPLICABLE TO AGREEMENTS MADE AND TO BE
PERFORMED ENTIRELY WITHIN SUCH STATE; PROVIDED THAT EACH DEBTOR AND THE TRUSTEE
SHALL RETAIN ALL RIGHTS ARISING UNDER FEDERAL LAW. ANY LEGAL ACTION OR
PROCEEDING WITH RESPECT TO THIS AGREEMENT MAY BE BROUGHT IN THE COURTS OF THE
STATE OF ILLINOIS SITTING IN COOK COUNTY, ILLINOIS OR OF THE UNITED STATES FOR
THE NORTHERN DISTRICT OF SUCH STATE, AND BY EXECUTION AND DELIVERY OF THIS
AGREEMENT, EACH DEBTOR AND THE TRUSTEE CONSENT, FOR THEMSELVES AND IN RESPECT OF
THEIR PROPERTY, TO THE NON-EXCLUSIVE JURISDICTION OF THOSE COURTS. EACH DEBTOR
AND THE TRUSTEE IRREVOCABLY WAIVE ANY OBJECTION, INCLUDING ANY OBJECTION TO THE
LAYING OF VENUE OR BASED ON THE GROUNDS OF FORUM NON CONVENIENS, WHICH THEY MAY
NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY ACTION OR PROCEEDING IN SUCH
JURISDICTION IN RESPECT OF THIS AGREEMENT. EACH DEBTOR AND THE TRUSTEE WAIVE
PERSONAL SERVICE OF ANY SUMMONS, COMPLAINT OR OTHER PROCESS, WHICH MAY BE MADE
BY ANY OTHER MEANS PERMITTED BY THE LAW OF SUCH STATE.

SECTION 12. WAIVER OF JURY TRIAL.

            EACH OF THE DEBTORS AND TRUSTEE HEREBY IRREVOCABLY WAIVES ANY AND
ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING ARISING OUT OF OR
RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY AND AGREES
THAT ANY SUCH ACTION OR PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT BEFORE
A JURY.

                                       19
<PAGE>

SECTION 13. Counterparts; Integration.

            This Agreement may be signed in any number of counterparts, each of
which shall be an original, with the same effect as if the signatures thereto
and hereto were upon the same instrument. This Agreement constitutes the entire
agreement and understanding among the parties hereto and supersede any and all
prior agreements and understandings, oral or written, relating to the subject
matter hereof.

SECTION 14. Headings.

            Headings and captions used in this Agreement are included for
convenience of reference and shall not be given any substantive effect.

                                       20
<PAGE>

            IN WITNESS WHEREOF, the parties have executed this Agreement as of
the date first written above.

               ADULTVISION COMMUNICATIONS, INC.
               AFTER DARK VIDEO, INC.
               AL ENTERTAINMENT, INC.
               ALTA LOMA DISTRIBUTION, INC.
               ALTA LOMA ENTERTAINMENT, INC.
               CANDLELIGHT MANAGEMENT LLC
                    By:  Playboy TV International, LLC, its Sole Member,
                         By:  Playboy Entertainment Group, Inc., its Sole Member
               CHELSEA COURT HOLDINGS LLC
                    By:  Playboy TV International, LLC, its Sole Member,
                         By:  Playboy Entertainment Group, Inc., its Sole Member
               CLARIDGE ORGANIZATION LLC
                    By:  Playboy TV International, LLC, its Sole Member,
                         By:  Playboy Entertainment Group, Inc., its Sole Member
               CPV PRODUCTIONS, INC.
               CYBERSPICE, INC.
               IMPULSE PRODUCTIONS, INC.
               INDIGO ENTERTAINMENT, INC.
               ITASCA HOLDINGS, INC.
               LAKE SHORE PRESS, INC.
               LIFESTYLE BRANDS, LTD.
               MH PICTURES, INC.
               MYSTIQUE FILMS, INC.
               PLANET PLAYBOY, INC.
               PLANET SPICE, INC.
               PLAYBOY CLUB OF HOLLYWOOD, INC.
               PLAYBOY CLUB OF NEW YORK, INC.
               PLAYBOY CLUBS INTERNATIONAL, INC.
               PLAYBOY CRUISE GAMING, INC.
               PLAYBOY ENTERTAINMENT GROUP, INC.
               PLAYBOY GAMING INTERNATIONAL, LTD.
               PLAYBOY GAMING NEVADA, INC.
               PLAYBOY GAMING UK, LTD.
               PLAYBOY JAPAN, INC.
               PLAYBOY MODELS, INC.

               By         /s/ Robert Campbell
                          --------------------
               Name:      Robert Campbell
               Title      Treasurer

<PAGE>

               PLAYBOY OF LYONS, INC.
               PLAYBOY OF SUSSEX, INC.
               PLAYBOY PREFERRED, INC.
               PLAYBOY PROPERTIES, INC.
               PLAYBOY SHOWS, INC.
               PLAYBOY TV INTERNATIONAL, LLC
                    By:  Playboy Entertainment Group, Inc., its Sole Member
               PRECIOUS FILMS, INC.
               SPECIAL EDITIONS, LTD.
               SPICE DIRECT, INC.
               SPICE ENTERTAINMENT, INC.
               SPICE INTERNATIONAL, INC.
               SPICE NETWORKS, INC.
               SPICE PRODUCTIONS, INC.
               STEELTON, INC.
               TELECOM INTERNATIONAL, INC.
               WOMEN PRODUCTIONS, INC.

               By         /s/ Robert Campbell
                          --------------------
               Name:      Robert Campbell
               Title:     Treasurer

               PLAYBOY ENTERPRISES, INC.
               PLAYBOY ENTERPRISES INTERNATIONAL, INC.

               By         /s/ Robert Campbell
                          --------------------
               Name:      Robert Campbell
               Title:     Senior Vice President,
                          Treasurer and Strategic Planning

               SPICE HOT ENTERTAINMENT, INC.
               SPICE PLATINUM ENTERTAINMENT, INC.

               By         /s/  James L.English
                          --------------------
               Name:      James L. English
               Title:     President

               BANK ONE, N.A.
                 as Trustee

               By         /s/ George N. Reaves
                          --------------------
               Its        Vice President

<PAGE>

                                   Schedule I
                           Organizational Information

<TABLE>
<CAPTION>
                                                       Former Name(s)                                   Jurisdiction  Organizational
                                           (within a 5-year period preceding the         Type of             of       Identification
            Name of Debtor                              date hereof)                  Organization      Organization      Number
---------------------------------------   --------------------------------------    -----------------   ------------  --------------
<S>                                       <C>                                       <C>                 <C>             <C>
Playboy Enterprises, Inc.                            New Playboy, Inc.              Corporation          Delaware       2890968
Playboy Enterprises International, Inc.          Playboy Enterprises, Inc.          Corporation          Delaware       0611512
                                                 Playboy Acquisition Corp.
Playboy Entertainment Group, Inc.                           N/A                     Corporation          Delaware       2214975
AL Entertainment, Inc.                         Alta Loma Entertainment, Inc.        Corporation          California     C2104617
Adultvision Communications, Inc.                            N/A                     Corporation          Delaware       2506092
After Dark Video, Inc.                                      N/A                     Corporation          Delaware       0634603
Alta Loma Distribution, Inc.                                N/A                     Corporation          Delaware       0719802
Alta Loma Entertainment, Inc.                               N/A                     Corporation          Delaware       3431267
CPV Productions, Inc.                                       N/A                     Corporation          Delaware       2389325
Itasca Holdings, Inc.                           Critics' Choice Video, Inc.         Corporation          Illinois       54752474
                                          Collectors' Choice Music Holdings, Inc.
Cyberspice, Inc.                                            N/A                     Corporation          Delaware       2395164
Impulse Productions, Inc.                                   N/A                     Corporation          Delaware       2025398
Indigo Entertainment, Inc.                           Cameo Films, Inc.              Corporation          Illinois       51022718
Lake Shore Press, Inc.                                      N/A                     Corporation          Delaware       0734611
Lifestyle Brands, Ltd.                                      N/A                     Corporation          Delaware       0761117
MH Pictures, Inc.                                           N/A                     Corporation          California     C1852032
Mystique Films, Inc.                                        N/A                     Corporation          California     C1941961
Planet Playboy, Inc.                            Playboy International, Inc.         Corporation          Delaware       3118804
Planet Spice, Inc.                                          N/A                     Corporation          Delaware       3334731
Playboy Club of Hollywood, Inc.                             N/A                     Corporation          Delaware       0574817
Playboy Club of New York, Inc.                              N/A                     Corporation          New York       N/A
Playboy Clubs International, Inc.                           N/A                     Corporation          Delaware       0547111
Playboy Cruise Gaming, Inc.                                 N/A                     Corporation          Delaware       2912569
Playboy Gaming International, Ltd.                          N/A                     Corporation          Delaware       0759924
Playboy Gaming Nevada, Inc.                                 N/A                     Corporation          Nevada         C19197-1998
Playboy Gaming UK, Ltd.                                     N/A                     Corporation          Delaware       3236969
Playboy Japan, Inc.                                         N/A                     Corporation          Delaware       3012466
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
                                                       Former Name(s)                                   Jurisdiction  Organizational
                                           (within a 5-year period preceding the         Type of             of       Identification
            Name of Debtor                              date hereof)                  Organization      Organization      Number
---------------------------------------   --------------------------------------    -----------------   ------------  --------------
<S>                                       <C>                                       <C>                 <C>             <C>
Playboy Models, Inc.                                        N/A                     Corporation          Illinois       36304049
Playboy of Lyons, Inc.                                      N/A                     Corporation          Wisconsin      1P06328
Playboy of Sussex, Inc.                                     N/A                     Corporation          Delaware       0682905
Playboy Preferred, Inc.                                     N/A                     Corporation          Illinois       46823931
Playboy Properties, Inc.                                    N/A                     Corporation          Delaware       0604701
Playboy Shows, Inc.                                         N/A                     Corporation          Delaware       0689004
Precious Films, Inc.                                        N/A                     Corporation          California     C1914719
Special Editions, Ltd.                                      N/A                     Corporation          Delaware       0871843
Spice Entertainment, Inc.                   Spice Entertainment Companies, Inc.     Corporation          Delaware       2297730
Spice Direct, Inc.                                          N/A                     Corporation          Delaware       2313801
Spice Hot Entertainment, Inc.                               N/A                     Corporation          Delaware       3410364
Spice International, Inc.                                   N/A                     Corporation          Delaware       2305469
Spice Networks, Inc.                                        N/A                     Corporation          New York       N/A
Spice Platinum Entertainment, Inc.                          N/A                     Corporation          Delaware       3410368
Spice Productions, Inc.                                     N/A                     Corporation          Nevada         C14691-1994
Steelton, Inc.                                              N/A                     Corporation          Delaware       0672002
Telecom International, Inc.                                 N/A                     Corporation          Florida        P94000027131
Women Productions, Inc.                                     N/A                     Corporation          California     C1952207
Playboy TV International, LLC                               N/A                     Limited Liability    Delaware       3008396
                                                                                    Company
Claridge Organization LLC                                   N/A                     Limited Liability    Delaware       3322958
                                                                                    Company
Chelsea Court Holdings LLC                                  N/A                     Limited Liability    Delaware       3322951
                                                                                    Company
Candlelight Management LLC                                  N/A                     Limited Liability    Delaware       3322954
                                                                                    Company
</TABLE>

<PAGE>

                                   Schedule II
                              Collateral Locations

I.    General Collateral Locations

<TABLE>
<CAPTION>
                                             Location of Chief
             Name of Debtor                  Executive Office                   Other Locations(1)
---------------------------------------   -----------------------   ------------------------------------------
<S>                                       <C>                       <C>
Playboy Enterprises, Inc.                 680 N. Lake Shore Drive   N/A
                                          Chicago, IL
Playboy Enterprises International, Inc.   680 N. Lake Shore Drive   730 Fifth Ave., New York, NY
                                          Chicago, IL               10236 Charing Cross Road, Los Angeles, CA
                                                                    2112 Broadway, Santa Monica, CA
                                                                    2706 Media Center Drive
                                                                    Los Angeles, CA
                                                                    9320 Wilshire Boulevard, Beverly Hills, CA

Playboy Entertainment Group, Inc.         2706 Media Center Drive   3030 Andrita St., Los Angeles, CA
                                          Los Angeles, CA           680 N. Lake Shore Dr., Chicago, IL
                                                                    730 Fifth Ave., NY, NY
                                                                    3675 Crestwood Pkwy, Duluth, GA

<CAPTION>

             Name of Debtor                       Third-Party Locations
---------------------------------------   ---------------------------------------
<S>                                       <C>
Playboy Enterprises, Inc.                 N/A

Playboy Enterprises International, Inc.   900 N. Rohlwing Rd., Itasca, IL
                                          2222 S. Federal Ave., Los Angeles, CA
                                          333 S. Mapleton Dr., Los Angeles, CA
                                          952 Badger Rd, Lomira, WI
                                          111 N. Canal St., Chicago, IL
                                          721 2nd St., Great Falls, MT
                                          96 College Ave., Rochester NY
Playboy Entertainment Group, Inc.         2901 W. Alameda Ave., Burbank, CA
                                          2130 Hollywood Way, Burbank, CA
                                          4444 Vineland Ave., Toluca Lake, CA
                                          4720 Vineland Ave., Toluca Lake, CA
                                          712 N. Seward St., Los Angeles, CA
                                          6900 Beck Ave., N. Hollywood, CA
                                          1220 N. Highland Ave., N. Hollywood, CA
                                          1132 N. Vine St., Hollywood, CA
                                          6087 Sunset Blvd., Los Angeles, CA
                                          655 W. Broadway, Glendale, CA
                                          2044 Cotner Ave., Los Angeles, CA
                                          6616 Lexington Ave., Hollywood, CA
                                          6750 Boulder Hwy., Las Vegas, NV
                                          13451 Brooks St., Baldwin Park, CA
                                          11510 Jefferson Blvd., Culver City, CA
                                          8550A Chetle Ave., Whittier CA
                                          5845-A Wynn Road, Las Vegas, NV
                                          6650 Spencer St., Las Vegas, NV
                                          605 S. Douglas St., El Segundo, CA
                                          2120 S. Jefferson St., Chicago, IL
</TABLE>

----------

(1)   Note that all properties are leased except 10236 Charing Cross Road, Los
      Angeles, CA, which is owned by Playboy Enterprises International, Inc.

<PAGE>

<TABLE>
<CAPTION>
                                             Location of Chief
             Name of Debtor                  Executive Office                   Other Locations(1)
---------------------------------------   -----------------------   ------------------------------------------
<S>                                       <C>                       <C>
AL Entertainment, Inc.                    2706 Media Center Drive   3030 Andrita St., Los Angeles, CA
                                          Los Angeles, CA
Adultvision Communications, Inc.          2706 Media Center Drive   3030 Andrita St., Los Angeles, CA
                                          Los Angeles, CA
After Dark Video, Inc.                    2706 Media Center Drive   3030 Andrita St., Los Angeles, CA
                                          Los Angeles, CA
Alta Loma Distribution, Inc.              2706 Media Center Drive   3030 Andrita St., Los Angeles, CA
                                          Los Angeles, CA
Alta Loma Entertainment, Inc.             2706 Media Center Drive   3030 Andrita St., Los Angeles, CA
                                          Los Angeles, CA
CPV Productions, Inc.                     680 N. Lake Shore Drive   N/A
                                          Chicago, IL
Itasca Holdings, Inc.                     680 N. Lake Shore Drive   N/A
                                          Chicago, IL
Cyberspice, Inc.                          680 N. Lake Shore Drive   N/A
                                          Chicago, IL
Impulse Productions, Inc.                 2706 Media Center Drive   3030 Andrita St., Los Angeles, CA
                                          Los Angeles, CA
Indigo Entertainment, Inc.                2706 Media Center Drive   3030 Andrita St., Los Angeles, CA
                                          Los Angeles, CA
Lake Shore Press, Inc.                    680 N. Lake Shore Drive   N/A
                                          Chicago, IL
Lifestyle Brands, Ltd.                    680 N. Lake Shore Drive   730 Fifth Ave., New York, NY
                                          Chicago, IL
MH Pictures, Inc.                         680 N. Lake Shore Drive   N/A
                                          Chicago, IL
Mystique Films, Inc.                      2706 Media Center Drive   3030 Andrita St., Los Angeles, CA
                                          Los Angeles, CA
Planet Playboy, Inc.                      680 N. Lake Shore Drive   N/A
                                          Chicago, IL

<CAPTION>

             Name of Debtor                       Third-Party Locations
---------------------------------------   ---------------------------------------
<S>                                       <C>
AL Entertainment, Inc.                    N/A

Adultvision Communications, Inc.          N/A

After Dark Video, Inc.                    N/A

Alta Loma Distribution, Inc.              N/A

Alta Loma Entertainment, Inc.             N/A

CPV Productions, Inc.                     N/A

Itasca Holdings, Inc.                     N/A

Cyberspice, Inc.                          N/A

Impulse Productions, Inc.                 N/A

Indigo Entertainment, Inc.                N/A

Lake Shore Press, Inc.                    N/A

Lifestyle Brands, Ltd.                    N/A

MH Pictures, Inc.                         N/A

Mystique Films, Inc.                      N/A

Planet Playboy, Inc.                      N/A

</TABLE>

<PAGE>

<TABLE>
<CAPTION>
                                             Location of Chief
             Name of Debtor                  Executive Office                   Other Locations(1)
---------------------------------------   -----------------------   ------------------------------------------
<S>                                       <C>                       <C>
Planet Spice, Inc.                        680 N. Lake Shore Drive   N/A
                                          Chicago, IL
Playboy Club of Hollywood, Inc.           680 N. Lake Shore Drive   N/A
                                          Chicago, IL
Playboy Club of New York, Inc.            680 N. Lake Shore Drive   N/A
                                          Chicago, IL
Playboy Clubs International, Inc.         680 N. Lake Shore Drive   N/A
                                          Chicago, IL
Playboy Cruise Gaming, Inc.               680 N. Lake Shore Drive   N/A
                                          Chicago, IL
Playboy Gaming International, Ltd.        680 N. Lake Shore Drive   N/A
                                          Chicago, IL
Playboy Gaming Nevada, Inc.               680 N. Lake Shore Drive   N/A
                                          Chicago, IL
Playboy Gaming UK, Ltd.                   680 N. Lake Shore Drive   N/A
                                          Chicago, IL
Playboy Japan, Inc.                       680 N. Lake Shore Drive   N/A
                                          Chicago, IL
Playboy Models, Inc.                      680 N. Lake Shore Drive   2706 Media Center Drive
                                          Chicago, IL               Los Angeles, CA
Playboy of Lyons, Inc.                    680 N. Lake Shore Drive   N/A
                                          Chicago, IL
Playboy of Sussex, Inc.                   680 N. Lake Shore Drive   N/A
                                          Chicago, IL
Playboy Preferred, Inc.                   680 N. Lake Shore Drive   N/A
                                          Chicago, IL
Playboy Properties, Inc.                  680 N. Lake Shore Drive   N/A
                                          Chicago, IL
Playboy Shows, Inc.                       680 N. Lake Shore Drive   N/A
                                          Chicago, IL
Precious Films, Inc.                      2706 Media Center Drive   3030 Andrita St., Los Angeles, CA
                                          Los Angeles, CA
Special Editions, Ltd.                    680 N. Lake Shore Drive   N/A
                                          Chicago, IL

<CAPTION>

             Name of Debtor                       Third-Party Locations
---------------------------------------   ---------------------------------------
<S>                                       <C>
Planet Spice, Inc.                        N/A

Playboy Club of Hollywood, Inc.           N/A

Playboy Club of New York, Inc.            N/A

Playboy Clubs International, Inc.         N/A

Playboy Cruise Gaming, Inc.               N/A

Playboy Gaming International, Ltd.        N/A

Playboy Gaming Nevada, Inc.               N/A

Playboy Gaming UK, Ltd.                   N/A

Playboy Japan, Inc.                       N/A

Playboy Models, Inc.                      N/A

Playboy of Lyons, Inc.                    N/A

Playboy of Sussex, Inc.                   N/A

Playboy Preferred, Inc.                   N/A

Playboy Properties, Inc.                  N/A

Playboy Shows, Inc.                       N/A

Precious Films, Inc.                      N/A

Special Editions, Ltd.                    900 N. Rohlwing Rd., Itasca, IL

</TABLE>

<PAGE>

<TABLE>
<CAPTION>
                                             Location of Chief
             Name of Debtor                  Executive Office                   Other Locations(1)
---------------------------------------   -----------------------   ------------------------------------------
<S>                                       <C>                       <C>
Spice Entertainment, Inc.                 2706 Media Center Drive   3030 Andrita St., Los Angeles, CA
                                          Los Angeles, CA
Spice Direct, Inc.                        680 N. Lake Shore Drive   N/A
                                          Chicago, IL
Spice Hot Entertainment, Inc.             2706 Media Center Drive   3030 Andrita St., Los Angeles, CA
                                          Los Angeles, CA
Spice International, Inc.                 680 N. Lake Shore Drive   N/A
                                          Chicago, IL
Spice Networks, Inc.                      680 N. Lake Shore Drive   N/A
                                          Chicago, IL
Spice Platinum Entertainment, Inc.        2706 Media Center Drive   3030 Andrita St., Los Angeles, CA
                                          Los Angeles, CA
Spice Productions, Inc.                   680 N. Lake Shore Drive   N/A
                                          Chicago, IL
Steelton, Inc.                            680 N. Lake Shore Drive   N/A
                                          Chicago, IL
Telecom International, Inc.               680 N. Lake Shore Drive   N/A
                                          Chicago, IL
Women Productions, Inc.                   2706 Media Center Drive   3030 Andrita St., Los Angeles, CA
                                          Los Angeles, CA
Playboy TV International, LLC             2706 Media Center Drive   3030 Andrita St., Los Angeles, CA
                                          Los Angeles, CA
Claridge Organization LLC                 2706 Media Center Drive   N/A
                                          Los Angeles, CA
Chelsea Court Holdings LLC                2706 Media Center Drive   N/A
                                          Los Angeles, CA
Candlelight Management LLC                2706 Media Center Drive   N/A
                                          Los Angeles, CA

<CAPTION>

             Name of Debtor                       Third-Party Locations
---------------------------------------   ---------------------------------------
<S>                                       <C>
Spice Entertainment, Inc.                 N/A

Spice Direct, Inc.                        N/A

Spice Hot Entertainment, Inc.             N/A

Spice International, Inc.                 N/A

Spice Networks, Inc.                      N/A

Spice Platinum Entertainment, Inc.        N/A

Spice Productions, Inc.                   N/A

Steelton, Inc.                            N/A

Telecom International, Inc.               N/A

Women Productions, Inc.                   N/A

Playboy TV International, LLC             N/A

Claridge Organization LLC                 N/A

Chelsea Court Holdings LLC                N/A

Candlelight Management LLC                N/A

</TABLE>

II.   Fixture Locations

A.    10236 Charing Cross Road, Los Angeles, CA

<PAGE>

Record Owner: Playboy Enterprises International, Inc., 680 N. Lake Shore Drive,
              Chicago, IL 60611

<PAGE>

                                  Schedule III
                             Commercial Tort Claims

                                      None.

<PAGE>

                                   Schedule IV
                         Certain Collateral Disclosures

Equipment covered by certificate of title:

Record Owner:                                 Record Owner:
Playboy Enterprises International, Inc        Playboy Entertainment Group, Inc.
Make/VIN:                                     Make/VIN:

1.    1986 Ford Ranger Pickup                 1.    2001 Ford Econoline Van/E350
      IFTCR10A5GUC47129                             1FB8831L01HA92599

2.    1987 Chevy Celeb, Wagon                 2.    1981 Tking Utility Trailer
      1GIAW81W2H6130643                             TK811248

3.    1988 Mercedes 560 SEL                   3.    1996 Ford Aerostar Van
      WDBCA39DOJA414939                             1FTDA14UOTZB53673

4.    1990 Acura Legend
      JH4KA4665LC031769

5.    1998 Lincoln Town Car
      1L1FM81W1WY685505

6.    1995 Ford Ranger
      1FTCR10X8STA68375

7.    1994 Ford Ranger XLT
      1FTCR14X4RPC28118

8.    2001 Ford Econoline Van
      1FTSE34L71HB23099

9.    1999 Mitsubishi Diamante
      6MMAP47P5XT002657

10.   2001 Honda Accord
      1HGCG668X1A138991

<PAGE>

                                   Schedule V
                          Intellectual Property Claims

                                      None.

<PAGE>

                                   Schedule VI
                          Excluded Investment Property

1.    Investment account held in the name of Playboy Enterprises, Inc., at
      LaSalle Bank, N.A., with LaSalle Bank, N.A. as Trustee, account number
      44-7914-10-2.Exhibit 4.1(s)

                          TRADEMARK SECURITY AGREEMENT

            This TRADEMARK SECURITY AGREEMENT (the "Agreement") made as of this
11th day of March, 2003, by the parties set forth on the signature page hereto
(each, a "Grantor" and collectively, "Grantors") in favor of Bank One, N.A., in
its capacity as Trustee under the Indenture (defined below) ("Grantee"):

                               W I T N E S S E T H

            WHEREAS, Grantors and Grantee are parties to a certain Indenture of
even date herewith among PEI Holdings, Inc. ("PEI"), the Guarantors party
thereto, and Grantee (as the same may be amended, supplemented or otherwise
modified from time to time, the "Indenture"), governing the terms of certain
Senior Secured Notes ("Notes") issued by PEI for the benefit of Grantors; and

            WHEREAS, pursuant to the terms of a certain Security Agreement of
even date herewith among each Grantor, various affiliates of PEI and Grantee (as
the same may be amended or otherwise modified from time to time, the "Security
Agreement"), each Grantor has granted to Grantee, for the benefit of the holders
of the Notes ("Holders"), a lien on, and security interest in, any and all
right, title and interest in, and to the Trademarks (as defined in the Security
Agreement), whether now owned or hereafter created, acquired or arising, to
secure the payment of all obligations of and amounts owing by PEI under the
Notes and the Indenture and each Grantor's obligations under the Indenture;

            NOW, THEREFORE, in consideration of the premises set forth herein
and for other good and valuable consideration, receipt and sufficiency of which
are hereby acknowledged, each Grantor agrees as follows:

            1. Incorporation of Indenture and Security Agreement. The Indenture
and Security Agreement and the terms and provisions thereof are hereby
incorporated herein in their entirety by this reference thereto. All terms
capitalized but not otherwise defined herein shall have the same meanings herein
as in the Security Agreement.

            2. Grant and Reaffirmation of Grant of Security Interests. To secure
the payment and performance of PEI's obligations under the Notes and the
Indenture and each Grantor's obligations under the Indenture, each Grantor
hereby grants to Grantee, for its benefit and the benefit of Holders, and hereby
affirms its grant pursuant to the Security Agreement (which grant shall be
deemed to have been made simultaneously herewith) of a lien on, and security
interest in, any and all right, title and interest in and to the following (all
of the following items or types of property being herein collectively referred
to as the "Trademark Collateral"; provided that Trademark Collateral will not
include "intent to use" trademark applications unless Grantor has used such
trademarks and has filed a statement of use or amendment to allege use with
respect to such application), whether now owned or hereafter created, acquired
or arising:

            (i) any trademarks, trademark registrations, and trademark
      applications, trade names and trade styles, service marks, service
      registrations and service mark applications, including without limitation,
      the United States federal trademark registrations and applications set
      forth on Schedule A

<PAGE>

      hereto, all renewals and extensions of any of the foregoing and all
      goodwill symbolized by any of the foregoing;

            (ii) all income, damages and payments now and hereafter due or
      payable with respect thereto, including without limitation, damages and
      payments for past or future infringements, unfair competition, dilution
      of, or for injury to the goodwill associated with any of the Trademarks;

            (iii) licenses of any of the foregoing to or from third parties and
      the royalties and other payments, if any, receivable thereunder;

            (iv) the right to sue for past, present and future infringements
      thereof;

            (v) all rights corresponding thereto throughout the world; and

            (vi) Proceeds and products of the foregoing and all insurance
      payments pertaining to the foregoing and proceeds thereof.

            Notwithstanding the foregoing, the Trademark Collateral shall not
include any General Intangibles or other rights arising under any contracts,
instruments, licenses or other documents to the extent that the grant of a Lien
or security interest therein would (a) result in a breach of the terms of, or
constitute a default under, such contract, instrument, license, agreement or
other document (other than to the extent that any such term would be rendered
ineffective pursuant to Sections 9-406, 9-407 or 9-408 of the Uniform Commercial
Code or any successor provision of the Uniform Commercial Code of any relevant
jurisdiction or other applicable law) or (b) give any other party to such
contract, instrument, license or other document the right to terminate its
obligations thereunder pursuant to a valid and enforceable provision (including
without limitation in connection with the operation of Section 9-406, 9-407 or
9-408 of the Uniform Commercial Code or any other applicable law).

                                       2
<PAGE>

            IN WITNESS WHEREOF, Grantors have duly executed this Agreement as of
the date first written above.

                                        ADULTVISION COMMUNICATIONS, INC.
                                        ALTA LOMA ENTERTAINMENT, INC.
                                        LIFESTYLE BRANDS, LTD.
                                        PLAYBOY ENTERTAINMENT GROUP, INC.

                                        By     /s/ Robert Campbell
                                               ---------------------------------
                                        Name:  Robert Campbell
                                        Title  Treasurer

                                        SPICE ENTERTAINMENT, INC.

                                        By     /s/ Robert Campbell
                                               ---------------------------------
                                        Name:  Robert Campbell
                                        Title: Treasurer

                                        PLAYBOY ENTERPRISES INTERNATIONAL, INC.

                                        By     /s/ Robert Campbell
                                               ---------------------------------
                                        Name:  Robert Campbell
                                        Title: Senior Vice President,
                                               Treasurer and Strategic Planning

                                        SPICE HOT ENTERTAINMENT, INC.

                                        By     /s/ James L. English
                                               ---------------------------------
                                        Name:  James L. English
                                        Title: President

Agreed and Accepted
As of the Date First Written Above

BANK ONE, N.A.
as Trustee

By:  /s/ George N. Reaves
     -----------------------------
Its: Vice President

<PAGE>

                                 ACKNOWLEDGMENT

STATE OF    Illinois )
                     )  SS
COUNTY OF   Cook     )

            I, Donna A. Szpinalski, a Notary Public in and for and residing in
said County and State, DO HEREBY CERTIFY THAT Robert Campbell, personally known
to me to be the same persons whose names are subscribed to the foregoing
instrument appeared before me this day in person and acknowledged that they
signed and delivered said instrument as their own free and voluntary act and as
the free and voluntary act of the corporations set forth on the signature page
of the foregoing instrument for the uses and purposes therein set forth.

            GIVEN under my hand and notarial seal this 11th day of March, 2003.

                                        /s/ Donna A. Szpinalski
                                        ----------------------------------------
                                        Notary Public

                                        My Commission Expires:

                                        12/8/06

                                        [SEAL]

<PAGE>

                                 ACKNOWLEDGMENT

STATE OF    Illinois )
                     )  SS
COUNTY OF   Cook     )

            I, Ivana Del Real, a Notary Public in and for and residing in said
County and State, DO HEREBY CERTIFY THAT George N. Reaves of Bank One, N.A., a
Vice President, personally known to me to be the same person whose name is
subscribed to the foregoing instrument appeared before me this day in person and
acknowledged that he signed and delivered said instrument as his own free and
voluntary act and as the free and voluntary act of said Bank One, N.A. for the
uses and purposes therein set forth.

            GIVEN under my hand and notarial seal this 11th day of March, 2003.

                                        /s/ Ivana Del Real
                                        ----------------------------------------
                                        Notary Public

                                        My Commission Expires:

                                        9/27/05

                                        [SEAL]

<PAGE>

                                 ACKNOWLEDGMENT

STATE OF    California  )
                        )  SS
COUNTY OF   Los Angeles )

            I, Inna Shlimovich, a Notary Public in and for and residing in said
County and State, DO HEREBY CERTIFY THAT James L. English, personally known to
me to be the same person whose name is subscribed to the foregoing instrument
appeared before me this day in person and acknowledged that they signed and
delivered said instrument as their own free and voluntary act and as the free
and voluntary act of the corporations set forth on the signature page of the
foregoing instrument for the uses and purposes therein set forth.

            GIVEN under my hand and notarial seal this 11th day of March, 2003.

                                        /s/ Inna Shlimovich
                                        ----------------------------------------
                                        Notary Public

                                        My Commission Expires:

                                        November 6, 2003

                                        [SEAL]

<PAGE>

                                                    Trademark Security Agreement

                                   SCHEDULE A

                             Trademark List by Owner                     Page: 1

      Owner: ADULTVISION COMMUNICATIONS, INC.

<TABLE>
<CAPTION>
                                 Case Number/Subcase             Status                Application            Registration
Trademark                        Country Name                    Class(es)             Number/Date            Number/Date
<S>                              <C>                             <C>                   <C>                    <C>
ADULTVISION (STYLIZED)           9600047/                        Registered            74/687549              2072439
                                 United States of America        38,41                 12-Jun-1995            17-Jun-1997

ATV                              9600046/                        Registered            74/688248              2079844
                                 United States of America        38,41                 12-Jun-1995            15-Jul-1997

ATV (STYLIZED)                   9500223/                        Registered            74/691892              2,079,849
                                 United States of America        38,41                 13-Jun-1995            15-Jul-1997
</TABLE>

<PAGE>

                                                    Trademark Security Agreement

                             Trademark List by Owner                     Page: 2

      Owner: LIFESTYLE BRANDS, LTD.

<TABLE>
<CAPTION>
                                 Case Number/Subcase             Status                Application            Registration
Trademark                        Country Name                    Class(es)             Number/Date            Number/Date
<S>                              <C>                             <C>                   <C>                    <C>
COVENTRY                         SC95000327/                     Published             78/094019
                                 United States of America        9                     19-Nov-2001

COVENTRY                         SC95000329/                     Published             78/098103
                                 United States of America        18                    13-Dec-2001

COVENTRY                         SC8800187/                      Registered            72-190342              777377
                                 United States of America        14                    06-Apr-1964            22-Sep-1964

COVENTRY AND EAGLE               SC95000341/                     Pending               76/402158
                                 United States of America        14                    01-May-2002

COVENTRY AND EAGLE               SC95000339/                     Pending               76/402534
                                 United States of America        18                    01-May-2002

COVENTRY U.S.A.                  SC95000334/                     Published             76/402482
                                 United States of America        25                    01-May-2002

COVENTRY U.S.A.                  SC95000345/                     Pending               76/402014
                                 United States of America        14                    01-May-2002

COVENTRY U.S.A.                  SC95000342/                     Pending               76/402017
                                 United States of America        18                    01-May-2002

COVENTRY U.S.A.                  SC95000338/                     Published             76/402533
                                 United States of America        9                     01-May-2002

COVENTRY WITH EAGLE              SC95000330/                     Published             76/360590
LOGO                             United States of America        9                     18-Jan-2002

COVENTRY WITH EAGLE              SC95000335/                     Published             76/402179
LOGO                             United States of America        25                    01-May-2002

SARAH (TYPED)                    SC8900003/                      Registered            72-190, 343            777.378
                                 United States of America        14                    06-Apr-1964            22-Sep-1964

SARAH COVENTRY                   SC9500023/                      Registered            76/241971              2647004
                                 United States of America        25                    17-Apr-2001            11-May-2002

SARAH COVENTRY                   SC95000332/                     Published             76/401371
                                 United States of America        3                     26-Apr-2002

SARAH COVENTRY                   SC95000333/                     Published             76/401030
                                 United States of America        25                    26-Apr-2002

SARAH COVENTRY                   SC95000331/                     Published             76/384771
                                 United States of America        9                     20-Mar-2002
</TABLE>

<PAGE>

                                                    Trademark Security Agreement

                             Trademark List by Owner                     Page: 3

      Owner: LIFESTYLE BRANDS, LTD.

<TABLE>
<CAPTION>
                                 Case Number/Subcase             Status                Application            Registration
Trademark                        Country Name                    Class(es)             Number/Date            Number/Date
<S>                              <C>                             <C>                   <C>                    <C>
SARAH COVENTRY                   SC95000328/                     Published             78/098100
                                 United States of America        18                    13-Dec-2001

SARAH COVENTRY (TYPED)           SC8800212/                      Registered            72-001851              636452
                                 United States of America        14                    01-Feb-1956            30-Oct-1956

SARAH COVENTRY AMERICA           9600154/                        Registered            74/732032              2054164
                                 United States of America        9                     13-Sep-1995            22-Apr-1997

SARAH COVENTRY with              SC95000343/                     Published             76/402047
BUTTERFLY DESIGN                 United States of America        25                    01-May-2002

SARAH COVENTRY with              SC95000344/                     Pending               76/402013
Butterfly Design                 United States of America        18                    01-May-2002

SARAH COVENTRY with              SC95000340/                     Pending               76/402472
BUTTERFLY DESIGN                 United States of America        14                    01-May-2002

SARAH COVENTRY with              SC95000346/                     Published             76/402471
BUTTERFLY DESIGN                 United States of America        9                     01-May-2002

SC & BUTTERFLY DESIGN            SC8800242/                      Registered            73692363               1491870
(OLD)                            United States of America        3                     29-Oct-1987            14-Jun-1988

SC & BUTTERFLY DESIGN            SC8800241/                      Registered            73693101               1503021
(OLD)                            United States of America        18                    02-Nov-1987            06-Sep-1988

SC & BUTTERFLY DESIGN            SC8800243/                      Registered            73692464               1492152
(OLD)                            United States of America        14                    29-Oct-1987            14-Jun-1988

SC & BUTTERFLY DESIGN            SC8800244/                      Registered            73692437               1492548
(OLD)                            United States of America        35                    29-Oct-1987            14-Jun-1988

SC (TYPED)                       SC8800240/                      Registered            72193707               788735
                                 United States of America        14                                           27-Apr-1965
</TABLE>

<PAGE>

                                                    Trademark Security Agreement

                             Trademark List by Owner                     Page: 4

      Owner: PLAYBOY ENTERTAINMENT GROUP, INC.

<TABLE>
<CAPTION>
                                 Case Number/Subcase             Status                Application            Registration
Trademark                        Country Name                    Class(es)             Number/Date            Number/Date
<S>                              <C>                             <C>                   <C>                    <C>
THE REALLY NAKED TRUTH           97000575/                       Registered            74/538407              1987539
& DESIGN                         United States of America        41                    16-Jun-1994            16-Jul-1996
</TABLE>

<PAGE>

                                                    Trademark Security Agreement

                             Trademark List by Owner                     Page: 5

      Owner: PLAYBOY ENTERPRISES, INC.

<TABLE>
<CAPTION>
                                 Case Number/Subcase             Status                Application            Registration
Trademark                        Country Name                    Class(es)             Number/Date            Number/Date
<S>                              <C>                             <C>                   <C>                    <C>
HMH                              96011649/                       Registered            75/602790              2360843
                                 United States of America        6                     10-Dec-1998            20-Jun-2000

INSIDE OUT                       9200087/                        Registered            74158816               1707314
                                 United States of America        41                    19-Apr-1991            11-Aug-1992

PLAYBOY CENTERFOLD               9600874/                        Registered            75/233654              2279723
                                 United States of America        42                    24-Jan-1997            21-Sep-1999

POP                              96011695/                       Registered            75611086               2311644
                                 United States of America        42                    22-Dec-1998            25-Jan-2000

RABBIT HEAD DESIGN               96011499/                       Registered            75/568736              2384047
                                 United States of America        8                     02-Oct-1998            05-Sep-2000

RABBIT HEAD DESIGN               96011569/                       Registered            75583680               2304130
                                 United States of America        9                     03-Nov-1998            28-Dec-1999

SEXCETERA                        96011696/                       Registered            75/611057              2316371
                                 United States of America        42                    22-Dec-1998            08-Feb-2000

STRIP SEARCH                     96011811/                       Registered            75/657284              2380834
                                 United States of America        9                     10-Mar-1999            29-Aug-2000

THE SEXIEST PHONE CARDS          96011698/                       Registered            75/611489              2323763
ON THE PLANET!                   United States of America        36                    23-Dec-1998            29-Feb-2000
</TABLE>

<PAGE>

                                                    Trademark Security Agreement

                             Trademark List by Owner                     Page: 6

      Owner: PLAYBOY ENTERPRISES INTERNATIONAL, INC.

<TABLE>
<CAPTION>
                                 Case Number/Subcase             Status                Application            Registration
Trademark                        Country Name                    Class(es)             Number/Date            Number/Date
<S>                              <C>                             <C>                   <C>                    <C>
(RABBIT HEAD DESIGN).COM         97000102/                       Registered            76/125004              2638318
                                 United States of America        41, 42                10-Apr-2001            22-Oct-2002

(RHD).COM SPORTSBOOK             97000332/                       Published             76/244265
                                 United States of America        36, 41                20-Apr-2001

7 LIVES XPOSED                   97000466/                       Registered            76/330155              2615152
                                 United States of America        41                    26-Oct-2001            03-Sep-2002

A DAY OF SEX IN AMERICA          97000330/                       Published             76/244136
                                 United States of America        16                    20-Apr-2001

ADULTVISION                      97000525/                       Pending               76/391112
                                 United States of America        41                    03-Apr-2002

AFTER DARK VIDEO                 9600914/                        Registered            75/256252              2177599
                                 United States of America        35                    12-Mar-1997            28-Jul-1998

AFTER DARK VIDEO                 9600631/                        Registered            75/182291              2107075
                                 United States of America        9                     16-Oct-1996            21-Oct-1997

ALTA LOMA                        96011910/                       Published             75/703085
                                 United States of America        41                    11-May-1999

ANDRITA STUDIOS                  97000633/                       Pending               78/163100
                                 United States of America        41                    11-Sep-2002

BETTING BUNNY                    97000215/                       Published             76/189206
                                 United States of America        9, 36, 41             03-Jan-2001

BUNNY                            9600646/                        Registered            72233496               810,555
                                 United States of America        42                    29-Nov-1965            28-Jun-1966

BUNNY COSTUME                    9600645/                        Registered            72/171655              0762884
                                 United States of America        42                    24-Jun-1963            07-Jan-1964

BUNNYPASS                        97000852/                       Pending               76/485195
                                 United States of America        41                    27-Jan-2003

CELEBRITY CENTERFOLD             96011448/                       Registered            75/536194              2356709
                                 United States of America        9                     13-Aug-1998            13-Jun-2000

CENTERFOLD                       96011551/                       Suspended             75/576544
                                 United States of America        42                    26-Oct-1998

CENTERFOLD                       9600693/                        Registered            75/250900              2275173
                                 United States of America        9, 16                 03-Mar-1997            07-Sep-1999
</TABLE>

<PAGE>

                                                    Trademark Security Agreement

                             Trademark List by Owner                     Page: 7

      Owner: PLAYBOY ENTERPRISES INTERNATIONAL, INC.

<TABLE>
<CAPTION>
                                 Case Number/Subcase             Status                Application            Registration
Trademark                        Country Name                    Class(es)             Number/Date            Number/Date
<S>                              <C>                             <C>                   <C>                    <C>
CENTERFOLD COLLECTOR             9600647/                        Registered            75/200931              2114146
CARDS                            United States of America        16                    20-Nov-1996            18-Nov-1997

CLASSIC CENTERFOLDS              96011550/                       Registered            75/577252              2351406
                                 United States of America        16                    26-Oct-1998            23-May-2000

COMPETE                          96011340/                       Registered            75/444459              2376488
                                 United States of America        41                    04-Mar-1998            15-Aug-2000

CYBER(RHD)CLUB                   97000603/                       Pending               76/440143
                                 United States of America        42                    08-Aug-2002

CYBER(RHD)CLUB                   97000593/                       Pending               78/150725
                                 United States of America        9                     05-Aug-2002

CYBER(RHD)GIRL                   97000604/                       Pending               76/440144
                                 United States of America        42                    08-Aug-2002

CYBER(RHD)GIRL                   97000849/                       Pending               76/484102
                                 United States of America        14                    23-Jan-2003

CYBER(RHD)GIRLS                  97000594/                       Pending               78/150719
                                 United States of America        9                     05-Aug-2002

DARK JUSTICE                     97000139/                       Registered            76/172627              2536128
                                 United States of America        41                    29-Nov-2000            05-Feb-2002

DREAM SCREEN                     9600846/                        Registered            75/244736              2170432
                                 United States of America        9                     18-Jul-1996            30-Jun-1998

EDEN                             96011431/                       Registered            75/520926              2274327
                                 United States of America        41                    17-Jul-1998            31-Aug-1999

ENTERTAINMENT FOR MEN            96012064/                       Registered            75/829000              2423102
                                 United States of America        16                    21-Oct-1999            23-Jan-2001

EROS COLLECTION                  9600672/                        Registered            75/135074              2177319
                                 United States of America        9                     16-Jul-1996            28-Jul-1998

EROS COLLECTION                  9600673/                        Registered            75/118354              2204763
                                 United States of America        41                    13-Jun-1996            24-Nov-1998

EROS COLLECTION and Design       96011914/                       Registered            75706352               2608448
                                 United States of America        9                     14-May-1999            20-Aug-2002

FEMLIN                           97000632/                       Pending               76/442355
                                 United States of America        9                     22-Aug-2002
</TABLE>

<PAGE>

                                                    Trademark Security Agreement

                             Trademark List by Owner                     Page: 8

      Owner: PLAYBOY ENTERPRISES INTERNATIONAL, INC.

<TABLE>
<CAPTION>
                                 Case Number/Subcase             Status                Application            Registration
Trademark                        Country Name                    Class(es)             Number/Date            Number/Date
<S>                              <C>                             <C>                   <C>                    <C>
FEMLIN (DESIGN)                  9000337/                        Registered            72/141296              740025
                                 United States of America        21                    02-Apr-1962            30-Oct-1962

FEMLIN (DESIGN)                  9000341/                        Registered            72122698               738387
                                 United States of America        42                    23-Jun-1961            25-Sep-1962

FEMLIN (WORD)                    9000342/                        Registered            72140944               740024
                                 United States of America        21                    28-Mar-1962            30-Oct-1962

FOR COUPLES ONLY                 96011686/                       Registered            75/606363              2378730
                                 United States of America        9                     16-Dec-1998            22-Aug-2000

GIRLS OF SUMMER                  9100531/                        Registered            74/149675              1.678.521
                                 United States of America        16                    20-Mar-1991            10-Mar-1992

GIRLS OF THE INTERNET            96011627/                       Registered            75/600214              2309194
                                 United States of America        9                     07-Dec-1998            18-Jan-2000

GIRLS OF THE INTERNET            9600026/                        Registered            75/010382              2,148,516
                                 United States of America        41                    25-Oct-1995            07-Apr-1998

HMH                              96011622/                       Registered            75/599718              2333886
                                 United States of America        21                    04-Dec-1998            21-Mar-2000

HMH                              96011621/                       Registered            75/599719              2322504
                                 United States of America        25                    04-Dec-1998            22-Feb-2000

HMH                              97000357/                       Published             76/276033
                                 United States of America        30                    25-Jun-2001

HMH (STYLIZED LETTERS)           9600681/                        Registered            75/195961              2107306
                                 United States of America        34                    08-Nov-1996            21-Oct-1997

HMH (Stylized letters)           9100493/                        Registered            75/226147              2175681
                                 United States of America        14                    15-Jan-1997            21-Jul-1998

HMH MANSION GATE DESIGN          96011630/                       Registered            75/602063              2386434
                                 United States of America        25                    09-Dec-1998            12-Sep-2000

HOT NET AND DESIGN               97000580/                       Published             76/424494
                                 United States of America        41                    24-Jun-2002

HTTP://WWW.PLAYBOY.COM           9500200/                        Registered            74/701251              2011646
                                 United States of America        42                    14-Jul-1995            29-Oct-1996

HUGH M. HEFNER                   9600682/                        Registered            75/195963              2107308
(SIGNATURE)                      United States of America        34                    08-Nov-1996            21-Oct-1997
</TABLE>

<PAGE>

                                                    Trademark Security Agreement

                             Trademark List by Owner                     Page: 9

      Owner: PLAYBOY ENTERPRISES INTERNATIONAL, INC.

<TABLE>
<CAPTION>
                                 Case Number/Subcase             Status                Application            Registration
Trademark                        Country Name                    Class(es)             Number/Date            Number/Date
<S>                              <C>                             <C>                   <C>                    <C>
INSIDE OUT AND DESIGN            9100514/                        Registered            74246397               1720057
                                 United States of America        9                     14-Feb-1992            29-Sep-1992

INSTANT ACCESS                   97000329/                       Registered            76/242093              2569859
                                 United States of America        38, 41                17-Apr-2001            14-May-2002

KEY W/RABBIT HEAD DESIGN         9000345/                        Registered            72122697               738386
                                 United States of America        42                    23-Jun-1961            25-Sep-1962

MAN TRACK                        9300370/                        Registered            74/250034              1751242
                                 United States of America        16                    26-Feb-1992            09-Feb-1993

MAXIMUM EXPOSURE                 97000521/                       Pending               76/384772
                                 United States of America        41                    20-Mar-2002

MISS APRIL                       96011825/                       Registered            75/669169              2382636
                                 United States of America        16                    26-Mar-1999            05-Sep-2000

MISS AUGUST                      96011829/                       Registered            75/669185              2382642
                                 United States of America        16                    26-Mar-1999            05-Sep-2000

MISS DECEMBER                    96011833/                       Registered            75/669173              2382638
                                 United States of America        16                    26-Mar-1999            05-Sep-2000

MISS FEBRUARY                    96011823/                       Registered            75/669170              2382637
                                 United States of America        16                    26-Mar-1999            05-Sep-2000

MISS JANUARY                     96011822/                       Registered            75/668607              2382630
                                 United States of America        16                    26-Mar-1999            05-Sep-2000

MISS JULY                        96011828/                       Registered            75/669178              2382641
                                 United States of America        16                    26-Mar-1999            05-Sep-2000

MISS JUNE                        96011827/                       Registered            75/669177              2382640
                                 United States of America        16                    26-Mar-1999            05-Sep-2000

MISS MARCH                       96011824/                       Registered            75/669174              2382639
                                 United States of America        16                    26-Mar-1999            05-Sep-2000

MISS MAY                         96011826/                       Registered            75/669104              2382633
                                 United States of America        16                    26-Mar-1999            05-Sep-2000

MISS NOVEMBER                    96011832/                       Registered            75/669106              2382634
                                 United States of America        16                    26-Mar-1999            05-Sep-2000

MISS OCTOBER                     96011831/                       Registered            75/673096              2391141
                                 United States of America        16                    26-Mar-1999            03-Oct-2000
</TABLE>

<PAGE>

                                                    Trademark Security Agreement

                             Trademark List by Owner                    Page: 10

      Owner: PLAYBOY ENTERPRISES INTERNATIONAL, INC.

<TABLE>
<CAPTION>
                                 Case Number/Subcase             Status                Application            Registration
Trademark                        Country Name                    Class(es)             Number/Date            Number/Date
<S>                              <C>                             <C>                   <C>                    <C>
MISS SEPTEMBER                   96011830/                       Registered            75/669101              2382632
                                 United States of America        16                    26-Mar-1999            05-Sep-2000

MS. PLAYBOY                      97000560/                       Published             76/417677
                                 United States of America        21                    07-Jun-2002

NIGHT CALLS                      9600684/                        Registered            75/125974              2,052,853
                                 United States of America        41                    26-Jun-1996            15-Apr-1997

NIGHT CALLS 411                  97000606/                       Published             76/440578
                                 United States of America        41                    15-Aug-2002

NIGHT CALLS RADIO                97000582/                       Published             76/434181
                                 United States of America        41                    25-Jul-2002

PASSION COVE                     96012101/                       Registered            75/915954              2426892
                                 United States of America        41                    10-Oct-2000            06-Feb-2001

PASSION COVE                     96011958/                       Published             75/734430
                                 United States of America        9                     23-Jun-1999

PLAY BOY                         9000269/                        Registered            72034559               689431
                                 United States of America        28                    29-Jul-1957            08-Dec-1959

PLAY4FUN                         97000639/                       Published             75/673336
                                 United States of America        42                    02-Apr-1999

PLAYBOY                          9000270/                        Registered            72160485               755301
                                 United States of America        34                    10-Jan-1963            27-Aug-1963

PLAYBOY                          9000271/                        Registered            72166996               764.820
                                 United States of America        3                     18-Apr-1963            11-Feb-1964

PLAYBOY                          9000286/                        Registered            73563849               1393914
                                 United States of America        9                     18-Oct-1985            20-May-1986

PLAYBOY                          9000273/                        Registered            72193952               791734
                                 United States of America        16                    21-May-1964            29-Jun-1965

PLAYBOY                          9000268/                        Registered            72/051788              676726
                                 United States of America        16                    16-May-1958            07-Apr-1959

PLAYBOY                          9000267/                        Registered            72016694               645386
                                 United States of America        14                    01-Oct-1956            14-May-1957

PLAYBOY                          8900797/                        Registered            286,817                871.552
                                 United States of America        18                    13-Dec-1967            24-Jun-1969
</TABLE>

<PAGE>

                                                    Trademark Security Agreement

                             Trademark List by Owner                    Page: 11

      Owner: PLAYBOY ENTERPRISES INTERNATIONAL, INC.

<TABLE>
<CAPTION>
                                 Case Number/Subcase             Status                Application            Registration
Trademark                        Country Name                    Class(es)             Number/Date            Number/Date
<S>                              <C>                             <C>                   <C>                    <C>
PLAYBOY                          9000285/                        Registered            73341544               1328611
                                 United States of America        25                    14-Dec-1981            02-Apr-1985

PLAYBOY                          9000284/                        Registered            73464290               1308905
                                 United States of America        14                    06-Feb-1984            11-Dec-1984

PLAYBOY                          9000278/                        Registered            73/065847              1040491
                                 United States of America        9                     14-Oct-1975            01-Jun-1976

PLAYBOY                          97000566/                       Published             76/428727
                                 United States of America        14                    09-Jul-2002

PLAYBOY                          9500198/                        Registered            74/702656              2020389
                                 United States of America        42                    13-Jul-1995            03-Dec-1996

PLAYBOY                          9000435/                        Registered            71664940               600018
                                 United States of America        16                    21-Apr-1954            28-Dec-1954

PLAYBOY                          9600713/                        Registered            75/194996              2107294
                                 United States of America        34                    08-Nov-1996            21-Oct-1997

PLAYBOY                          9100605/                        Registered            73264124               1320822
                                 United States of America        25                    30-May-1980            19-Feb-1985

PLAYBOY                          9400493/                        Registered            73400744               1886578
                                 United States of America        9                     10-Jun-1993            28-Mar-1995

PLAYBOY                          9000275/                        Registered            72/292374              874451
                                 United States of America        35                    04-Mar-1968            05-Aug-1969

PLAYBOY                          96012209/                       Registered            76/020905              2469441
                                 United States of America        21                    07-Apr-2000            17-Jul-2001

PLAYBOY                          97000586/                       Published             78/149184
                                 United States of America        28                    31-Jul-2002

PLAYBOY                          96011498/                       Registered            75/562928              2605118
                                 United States of America        28                    02-Oct-1998            06-Aug-2002

PLAYBOY                          97000083/                       Registered            76/088316              2626072
                                 United States of America        28                    11-Jul-2000            24-Sep-2002

PLAYBOY                          97000029/                       Published             76/083560
                                 United States of America        28                    06-Jul-2000

PLAYBOY                          96011580/                       Registered            75/584965              2412958
                                 United States of America        18                    09-Nov-1998            12-Dec-2000
</TABLE>

<PAGE>

                                                    Trademark Security Agreement

                             Trademark List by Owner                    Page: 12

      Owner: PLAYBOY ENTERPRISES INTERNATIONAL, INC.

<TABLE>
<CAPTION>
                                 Case Number/Subcase             Status                Application            Registration
Trademark                        Country Name                    Class(es)             Number/Date            Number/Date
<S>                              <C>                             <C>                   <C>                    <C>
PLAYBOY                          96011400/                       Registered            75/500930              2485583
                                 United States of America        25                    12-Jun-1998            04-Sep-2001

PLAYBOY                          96011893/                       Registered            75/694654              2420042
                                 United States of America        3                     29-Apr-1999            09-Jan-2001

PLAYBOY                          9000272/                        Registered            72173452               769702
                                 United States of America        41                    22-Jul-1963            12-May-1964

PLAYBOY                          96011954/                       Registered            75/735764              2447001
                                 United States of America        12                    23-Jun-1999            24-Apr-2001

PLAYBOY                          96011990/                       Registered            75/754882              2445179
                                 United States of America        15                    20-Jul-1999            17-Apr-2001

PLAYBOY                          97000630/                       Pending               76/442353
                                 United States of America        9                     22-Aug-2002

PLAYBOY                          96011497/                       Registered            75/562929              2446799
                                 United States of America        8                     02-Oct-1998            24-Apr-2001

PLAYBOY                          97000026/                       Registered            76/108684              2482255
                                 United States of America        41                    10-Apr-2001            28-Aug-2001

PLAYBOY                          96012097/                       Registered            76/005003              2632523
                                 United States of America        16                    20-Mar-2000            08-Oct-2002

PLAYBOY                          96011885/                       Registered            75/689731              2635849
                                 United States of America        9                     22-Apr-1999            15-Oct-2002

PLAYBOY                          97000504/                       Registered            76/366684              2631654
                                 United States of America        41                    01-Feb-2002            08-Oct-2002

PLAYBOY                          97000592/                       Pending               76/435180
                                 United States of America        11                    29-Jul-2002

PLAYBOY                          97000369/                       Published             76/280424
                                 United States of America        5                     03-Jul-2001

PLAYBOY                          97000363/                       Published             78/070069
                                 United States of America        9                     20-Jun-2001

PLAYBOY                          9600778/                        Registered            75/226140              2181438
                                 United States of America        14                    15-Jan-1997            11-Aug-1998

PLAYBOY                          97000347/                       Published             76/263882
                                 United States of America        6                     29-May-2001
</TABLE>

<PAGE>

                                                    Trademark Security Agreement

                             Trademark List by Owner                    Page: 13

      Owner: PLAYBOY ENTERPRISES INTERNATIONAL, INC.

<TABLE>
<CAPTION>
                                 Case Number/Subcase             Status                Application            Registration
Trademark                        Country Name                    Class(es)             Number/Date            Number/Date
<S>                              <C>                             <C>                   <C>                    <C>
PLAYBOY                          97000352/                       Registered            78/067867              2644619
                                 United States of America        30                    07-Jun-2001            29-Oct-2002

PLAYBOY AFTER DARK               97000481/                       Pending               78/098634
                                 United States of America        41                    17-Dec-2001

PLAYBOY AND RABBIT HEAD          9000439/                        Registered            72238954               984548
DESIGN                           United States of America        25                    16-Feb-1966            21-May-1974

PLAYBOY AUDIO AND DESIGN         9600686/                        Registered            75/188096              2107167
                                 United States of America        9                     23-Oct-1996            21-Oct-1997

PLAYBOY BACHELOR PARTY           97000031/                       Registered            76/116787              2537924
                                 United States of America        41                    10-Apr-2001            12-Feb-2002

PLAYBOY BET EXCHANGE             97000334/                       Published             76/244264
                                 United States of America        41                    20-Apr-2001

PLAYBOY CASINO                   97000331/                       Published             76/244034
                                 United States of America        36, 41                20-Apr-2001

PLAYBOY CENTERFOLD               9600694/                        Registered            75/250901              2260234
                                 United States of America        9, 16                 03-Mar-1997            13-Jul-1999

PLAYBOY CENTERFOLDS              96011047/                       Registered            75/368956              2322825
                                 United States of America        42                    06-Oct-1997            29-Feb-2000

PLAYBOY CYBER CLUB               96011004/                       Registered            75/347353              2322800
                                 United States of America        42                    26-Aug-1997            29-Feb-2000

PLAYBOY EXPOSED                  97000480/                       Registered            76/349401              2631495
                                 United States of America        9                     17-Dec-2001            08-Oct-2002

PLAYBOY FUNNIES                  97000271/                       Registered            76/193861              2644097
                                 United States of America        16                    12-Jan-2001            29-Oct-2002

PLAYBOY JAZZ                     97000403/                       Published             78/051619
                                 United States of America        9                     06-Mar-2001

PLAYBOY JAZZ DESIGN              97000313/                       Registered            76/244263              2602728
                                 United States of America        9                     20-Apr-2001            30-Jul-2002

PLAYBOY JAZZ FESTIVAL            8900489/                        Registered            73/415751              1.279.832
                                 United States of America        16,25,41              04-Mar-1983            29-May-1984

PLAYBOY LOUNGE                   97000197/                       Registered            76/198036              2567100
                                 United States of America        41                    23-Jan-2001            07-May-2002
</TABLE>

<PAGE>

                                                    Trademark Security Agreement

                             Trademark List by Owner                    Page: 14

      Owner: PLAYBOY ENTERPRISES INTERNATIONAL, INC.

<TABLE>
<CAPTION>
                                 Case Number/Subcase             Status                Application            Registration
Trademark                        Country Name                    Class(es)             Number/Date            Number/Date
<S>                              <C>                             <C>                   <C>                    <C>
PLAYBOY ONLINE and Design        96011913/                       Registered            75/706247              2361962
                                 United States of America        42                    14-May-1999            27-Jun-2000

PLAYBOY PLAYMATE ALUMNI          96011341/                       Registered            75/444470              2221735
 ASSOCIATION                     United States of America        16                    04-Mar-1998            02-Feb-1999

PLAYBOY RADIO                    97000581/                       Published             76/434097
                                 United States of America        41                    25-Jul-2002

PLAYBOY SELECT                   96011310/                       Registered            75/394490              2193907
                                 United States of America        36                    21-Nov-1997            06-Oct-1998

PLAYBOY SPA                      97000141/                       Registered            76/145547              2490761
                                 United States of America        3                     10-Oct-2000            18-Sep-2001

PLAYBOY SPECIAL EDITIONS         97000088/                       Registered            76/095361              2593763
                                 United States of America        16, 41                19-Jul-2000            16-Jul-2002

PLAYBOY SPORT                    9000249/                        Registered            73391489               1328616
                                 United States of America        25                    28-Sep-1982            02-Apr-1985

PLAYBOY SPORTSBOOK.COM           97000333/                       Published             76/244033
                                 United States of America        36, 41                20-Apr-2001

PLAYBOY STORE                    97000173/                       Registered            76/158756              2661622
                                 United States of America        35                    02-Nov-2000            17-Dec-2002

PLAYBOY TV                       96010981/                       Registered            75/344894              2190905
                                 United States of America        41                    21-Aug-1997            22-Sep-1998

PLAYBOY TV AND DESIGN            9600742/                        Registered            75117215               2077341
                                 United States of America        41                    11-Jun-1996            08-Jul-1997

PLAYBOY TV NETWORKS and          96011915/                       Registered            75/706373              2319609
Design                           United States of America        41                    14-May-1999            15-Feb-2000

PLAYBOY W/ RABBIT HEAD           9400593/                        Registered            74/522307              1908471
DESIGN                           United States of America        18                    06-May-1994            01-Aug-1995

PLAYBOY W/RABBIT HEAD            9000587/                        Registered            73424324               1318244
DESIGN                           United States of America        25                    03-May-1983            05-Feb-1985

PLAYBOY X-TREME TEAM             96012088/                       Registered            75/928939              2535629
                                 United States of America        41                    25-Feb-2000            05-Feb-2002

PLAYBOY.COMVERSATION             97000233/                       Registered            76/191127              2538068
                                 United States of America        41                    08-Jan-2001            12-Feb-2002
</TABLE>

<PAGE>

                                                    Trademark Security Agreement

                             Trademark List by Owner                    Page: 15

      Owner: PLAYBOY ENTERPRISES INTERNATIONAL, INC.

<TABLE>
<CAPTION>
                                 Case Number/Subcase             Status                Application            Registration
Trademark                        Country Name                    Class(es)             Number/Date            Number/Date
<S>                              <C>                             <C>                   <C>                    <C>
PLAYBOYNET                       97000850/                       Pending               76/485197
                                 United States of America        41                    27-Jan-2003

PLAYBOYPLUS                      97000851/                       Pending               76/485196
                                 United States of America        41                    27-Jan-2003

PLAYBOYRACINGUSA                 97000337/                       Published             78/061267
                                 United States of America        36, 41                01-May-2001

PLAYBOY'S                        9100417/                        Registered            74/132604              1733661
                                 United States of America        41                    23-Jan-1991            17-Nov-1992

PLAYBOY'S BATHING                9100423/                        Registered            74/146497              1697592
BEAUTIES                         United States of America        16                    05-Mar-1991            30-Jun-1992

PLAYBOY'S BLONDES                9100424/                        Registered            74/146495              1753861
BRUNETTES REDHEADS               United States of America        16                    05-Mar-1991            23-Feb-1993

PLAYBOY'S BOOK OF                9000905/                        Registered            74/116048              1666709
LINGERIE                         United States of America        16                    16-Nov-1990            03-Dec-1991

PLAYBOY'S CASTING CALLS          97000261/                       Registered            78/037726              2637350
                                 United States of America        9, 16                 04-Dec-2000            15-Oct-2002

PLAYBOY'S COLLEGE GIRLS          9100422/                        Registered            74/146492              1706665
                                 United States of America        16                    05-Mar-1991            11-Aug-1992

PLAYBOY'S CYBER GIRLS            97000219/                       Registered            76/197191              2504457
                                 United States of America        42                    19-Jan-2001            06-Nov-2001

PLAYBOY'S DIRECTOR'S CUT         97000138/                       Published             78/028587
                                 United States of America        41                    02-Oct-2000

PLAYBOY'S GIRLS OF               9100425/                        Registered            74/146494              1744466
WINTER                           United States of America        16                    05-Mar-1991            05-Jan-1993

PLAYBOY'S NUDES                  9100484/                        Registered            74/153753              1694327
                                 United States of America        16                    02-Apr-1991            16-Jun-1992

PLAYBOY'S PLAYMATE OF            9000328/                        Registered            72/020267              661391
THE MONTH                        United States of America        16                    03-Dec-1956            06-May-1958

PLAYBOY'S PLAYMATE               9100420/                        Registered            74/146496              1691469
REVIEW                           United States of America        16                    05-Mar-1991            09-Jun-1992

PLAYBOYSTORE.COM                 97000174/                       Registered            76/158758              2584757
                                 United States of America        35                    02-Nov-2000            25-Jun-2002
</TABLE>

<PAGE>

                                                    Trademark Security Agreement

                             Trademark List by Owner                    Page: 16

      Owner: PLAYBOY ENTERPRISES INTERNATIONAL, INC.

<TABLE>
<CAPTION>
                                 Case Number/Subcase             Status                Application            Registration
Trademark                        Country Name                    Class(es)             Number/Date            Number/Date
<S>                              <C>                             <C>                   <C>                    <C>
PLAYBOYTV CLUB                   97000564/                       Pending               76/419768
                                 United States of America        41                    12-Jun-2002

PLAYMAT                          96011332/                       Registered            75/450860              2253285
                                 United States of America        9                     16-Mar-1998            15-Jun-1999

PLAYMATE                         97000353/                       Published             78/067868
                                 United States of America        30                    07-Jun-2001

PLAYMATE                         97000631/                       Pending               76/442357
                                 United States of America        9                     22-Aug-2002

PLAYMATE                         96012206/                       Pending               76/038047
                                 United States of America        9                     01-May-2000

PLAYMATE                         97000346/                       Published             76/263883
                                 United States of America        6                     29-May-2001

PLAYMATE                         97000082/                       Published             76/088310
                                 United States of America        28                    11-Jul-2000

PLAYMATE                         96011046/                       Registered            75/368959              2191054
                                 United States of America        42                    06-Oct-1997            22-Sep-1998

PLAYMATE                         97000089/                       Registered            76/005403              2663899
                                 United States of America        16                    20-Mar-2000            17-Dec-2002

PLAYMATE                         9100602/                        Registered            73558616               1399564
                                 United States of America        25                    16-Sep-1985            01-Jul-1986

PLAYMATE                         96011570/                       Registered            75/582250              2298170
                                 United States of America        9                     03-Nov-1998            07-Dec-1999

PLAYMATE                         96011838/                       Published             75/673335
                                 United States of America        28                    02-Apr-1999

PLAYMATE                         96011873/                       Published             75/678317
                                 United States of America        9                     09-Apr-1999

PLAYMATE                         97000170/                       Published             76/157181
                                 United States of America        9                     31-Oct-2000

PLAYMATE                         9000318/                        Registered            73563856               1393915
                                 United States of America        9                     18-Oct-1985            20-May-1986

PLAYMATE                         9000324/                        Registered            72450541               990061
                                 United States of America        28                    05-Mar-1973            06-Aug-1974
</TABLE>

<PAGE>

                                                    Trademark Security Agreement

                             Trademark List by Owner                    Page: 17

      Owner: PLAYBOY ENTERPRISES INTERNATIONAL, INC.

<TABLE>
<CAPTION>
                                 Case Number/Subcase             Status                Application            Registration
Trademark                        Country Name                    Class(es)             Number/Date            Number/Date
<S>                              <C>                             <C>                   <C>                    <C>
PLAYMATE                         9000317/                        Registered            73464145               1308903
                                 United States of America        14                    06-Feb-1984            11-Dec-1984

PLAYMATE                         9000322/                        Registered            72187491               777867
                                 United States of America        14                    26-Feb-1964            29-Sep-1964

PLAYMATE                         9000316/                        Registered            72040119               721987
                                 United States of America        16                    05-Nov-1957            26-Sep-1961

PLAYMATE OF THE MONTH            97000589/                       Pending               76/437856
                                 United States of America        28                    05-Aug-2002

PLAYMATE OF THE YEAR             9000327/                        Registered            73619058               1462762
                                 United States of America        16                    10-Sep-1981            27-Oct-1987

PLAYMATE OF THE YEAR             9000326/                        Registered            73/619062              1.462.569
                                 United States of America        9                     10-Sep-1986            27-Oct-1987

PLAYMATE OF THE YEAR             97000097/                       Published             76/005504
                                 United States of America        16                    20-Mar-2000

PLAYMATE OF THE YEAR             97000270/                       Published             76/088306
                                 United States of America        28                    11-Jul-2000

PLAYMATE OF THE YEAR             97000492/                       Published             76/354264
                                 United States of America        34                    02-Jan-2002

PLAYMATE OF THE YEAR             97000628/                       Pending               76/442354
                                 United States of America        9                     22-Aug-2002

PLAYMATE PROFILE                 96011055/                       Registered            75/363935              2191045
                                 United States of America        9                     26-Sep-1997            22-Sep-1998

PLAYMATE W/RABBIT HEAD           9000333/                        Registered            73558617               1404136
DESIGN                           United States of America        25                    16-Sep-1985            05-Aug-1986

PMOY                             96011404/                       Registered            75/467337              2301586
                                 United States of America        16                    13-Apr-1998            21-Dec-1999

PMOY                             97000130/                       Published             76/005495
                                 United States of America        16                    20-Mar-2000

RABBIT HEAD DESIGN               97000103/                       Registered            76/005004              2666917
                                 United States of America        16                    20-Mar-2000            24-Dec-2002

RABBIT HEAD DESIGN               96011819/                       Registered            75/664960              2407227
                                 United States of America        12                    22-Mar-1999            21-Nov-2000
</TABLE>

<PAGE>

                                                    Trademark Security Agreement

                             Trademark List by Owner                    Page: 18

      Owner: PLAYBOY ENTERPRISES INTERNATIONAL, INC.

<TABLE>
<CAPTION>
                                 Case Number/Subcase             Status                Application            Registration
Trademark                        Country Name                    Class(es)             Number/Date            Number/Date
<S>                              <C>                             <C>                   <C>                    <C>
RABBIT HEAD DESIGN               9000305/                        Registered            73464146               1308904
                                 United States of America        14                    06-Feb-1984            11-Dec-1984

RABBIT HEAD DESIGN               97000629/                       Pending               76/442356
                                 United States of America        9                     22-Aug-2002

RABBIT HEAD DESIGN               8900798/                        Registered            286,818                871.553
                                 United States of America        18                    13-Dec-1967            24-Jun-1969

RABBIT HEAD DESIGN               8900799/                        Registered            72302074               873370
                                 United States of America        28                    05-Jul-1968            22-Jul-1969

RABBIT HEAD DESIGN               97000842/                       Pending               76/482822
                                 United States of America        14                    16-Jan-2003

RABBIT HEAD DESIGN               9000311/                        Registered            72162258               759207
                                 United States of America        14                    07-Feb-1963            29-Oct-1963

RABBIT HEAD DESIGN               8900490/                        Registered            73391484               1276276
                                 United States of America        25                    28-Sep-1982            01-May-1984

RABBIT HEAD DESIGN               97000868/                       Pending               76/489973
                                 United States of America        28                    13-Feb-2003

RABBIT HEAD DESIGN               9600800/                        Registered            75195962               2107307
                                 United States of America        34                    08-Nov-1996            21-Oct-1997

RABBIT HEAD DESIGN               9000308/                        Registered            72/052490              679997
                                 United States of America        21                    28-May-1958            09-Jun-1959

RABBIT HEAD DESIGN               96011845/                       Registered            75/674184              2618521
                                 United States of America        6                     05-Apr-1999            10-Sep-2002

RABBIT HEAD DESIGN               96011912/                       Published             75/706354
                                 United States of America        42                    14-May-1999

RABBIT HEAD DESIGN               96011911/                       Published             75/706356
                                 United States of America        41                    14-May-1999

RABBIT HEAD DESIGN               96011894/                       Registered            75/694662              2443328
                                 United States of America        3                     29-Apr-1999            10-Apr-2001

RABBIT HEAD DESIGN               96011953/                       Registered            75/735763              2449959
                                 United States of America        12                    23-Jun-1999            08-May-2001

RABBIT HEAD DESIGN               96011886/                       Published             75/689730
                                 United States of America        9                     22-Apr-1999
</TABLE>

<PAGE>

                                                    Trademark Security Agreement

                             Trademark List by Owner                    Page: 19

      Owner: PLAYBOY ENTERPRISES INTERNATIONAL, INC.

<TABLE>
<CAPTION>
                                 Case Number/Subcase             Status                Application            Registration
Trademark                        Country Name                    Class(es)             Number/Date            Number/Date
<S>                              <C>                             <C>                   <C>                    <C>
RABBIT HEAD DESIGN               9000307/                        Registered            71686448               643926
                                 United States of America        16                    28-Apr-1955            09-Apr-1957

RABBIT HEAD DESIGN               9000306/                        Registered            73563848               1393913
                                 United States of America        9                     18-Oct-1985            06-May-1986

RABBIT HEAD DESIGN               96011991/                       Registered            75/756329              2434256
                                 United States of America        15                    20-Jul-1999            06-Mar-2001

RABBIT HEAD DESIGN               97000064/                       Registered            76/118862              2626133
                                 United States of America        28                    10-Apr-2001            24-Sep-2002

RABBIT HEAD DESIGN               96011993/                       Registered            75/756327              2483351
                                 United States of America        20                    20-Jul-1999            28-Aug-2001

RABBIT HEAD DESIGN               9000309/                        Registered            72117864               728889
                                 United States of America        25                    14-Apr-1961            20-Mar-1962

RABBIT HEAD DESIGN               9000288/                        Registered            72162259               761793
                                 United States of America        34                    07-Feb-1963            24-Dec-1963

RABBIT HEAD DESIGN               9600741/                        Registered            75/226139              2177521
                                 United States of America        14                    15-Jan-1997            28-Jul-1998

RABBIT HEAD DESIGN               96011434/                       Registered            75/512633              2356096
                                 United States of America        12                    02-Jul-1998            06-Jun-2000

RABBIT HEAD DESIGN               9400492/                        Registered            74/456176              1918754
                                 United States of America        9                     29-Oct-1993            12-Sep-1995

RABBIT HEAD DESIGN               97000237/                       Registered            76/183153              2586538
                                 United States of America        28                    19-Dec-2000            25-Jun-2002

RABBIT HEAD DESIGN               9000289/                        Registered            72166995               764819
                                 United States of America        3                     18-Apr-1963            11-Feb-1964

RABBIT HEAD DESIGN               97000366/                       Published             76/274834
                                 United States of America        9                     21-Jun-2001

RABBIT HEAD DESIGN               9600634/                        Registered            75/188860              2.109.005
                                 United States of America        10                    10-Oct-1996            28-Oct-1997

RABBIT HEAD DESIGN               96011500/                       Registered            75/562927              2556438
                                 United States of America        28                    02-Oct-1998            02-Apr-2002

RABBIT HEAD DESIGN               9000291/                        Registered            72192592               784504
                                 United States of America        24                    04-May-1964            02-Feb-1965
</TABLE>

<PAGE>

                                                    Trademark Security Agreement

                             Trademark List by Owner                    Page: 20

      Owner: PLAYBOY ENTERPRISES INTERNATIONAL, INC.

<TABLE>
<CAPTION>
                                 Case Number/Subcase             Status                Application            Registration
Trademark                        Country Name                    Class(es)             Number/Date            Number/Date
<S>                              <C>                             <C>                   <C>                    <C>
RABBIT HEAD DESIGN               97000370/                       Published             76/283213
                                 United States of America        5                     03-Jul-2001

RABBIT HEAD DESIGN               9000295/                        Registered            72193953               791333
                                 United States of America        16                    21-May-1964            22-Jun-1965

RABBIT HEAD DESIGN               9000302/                        Registered            73067124               1058294
                                 United States of America        9                     28-Oct-1975            08-Feb-1977

RABBIT HEAD DESIGN               9000303/                        Registered            264.329                1192561
                                 United States of America        25                    02-Jun-1980            23-Mar-1982

RABBIT HEAD DESIGN               97000345/                       Published             76/263879
                                 United States of America        6                     29-May-2001

RABBIT HEAD DESIGN               97000591/                       Pending               76/435178
                                 United States of America        11                    29-Jul-2002

RABBIT HEAD DESIGN               97000583/                       Pending               76/435177
                                 United States of America        21                    29-Jul-2002

RABBIT HEAD DESIGN               97000590/                       Pending               76/437855
                                 United States of America        28                    05-Aug-2002

RABBIT HEAD DESIGN               96011398/                       Registered            75/501593              2297011
                                 United States of America        25                    12-Jun-1998            30-Nov-1999

RABBIT HEAD DESIGN               97000358/                       Published             76/276579
                                 United States of America        30                    25-Jun-2001

ROMANTICS BY PLAYBOY             9600231/                        Registered            75/065493              2,021,099
                                 United States of America        25                    26-Feb-1996            03-Dec-1996

SEX COURT                        97000092/                       Registered            76/096698              2548594
                                 United States of America        41                    26-Jul-2000            12-Mar-2002

SEXCETERA                        96012015/                       Registered            75/772270              2462631
                                 United States of America        9                     10-Aug-1999            19-Jun-2001

SEXCETERA                        96011987/                       Registered            75/770657              2412149
                                 United States of America        41                    06-Aug-1999            12-Dec-2000

SPRING BREAK                     9000256/                        Registered            73531813               1366636
                                 United States of America        16                    12-Apr-1985            22-Oct-1985

SUNSUAL                          96012092/                       Published             75/920876
                                 United States of America        3                     16-Feb-2000
</TABLE>

<PAGE>

                                                    Trademark Security Agreement

                             Trademark List by Owner                    Page: 21

      Owner: PLAYBOY ENTERPRISES INTERNATIONAL, INC.

<TABLE>
<CAPTION>
                                 Case Number/Subcase             Status                Application            Registration
Trademark                        Country Name                    Class(es)             Number/Date            Number/Date
<S>                              <C>                             <C>                   <C>                    <C>
THE PLAYBOY CLUB                 9000347/                        Registered            72122528               746367
                                 United States of America        42                    21-Jun-1961            05-Mar-1963

THE PLAYBOY EDGE                 97000529/                       Published             78/119396
                                 United States of America        5                     03-Apr-2002

THE PLAYBOY FOUNDATION           9300369/                        Registered            74/246398              1743106
AND DESIGN                       United States of America        42                    14-Feb-1992            29-Dec-1992

THE WEEKEND FLASH                97000782/                       Pending               76/466765
                                 United States of America        41                    14-Nov-2002

TV CLUB AND RABBIT HEAD          97000563/                       Published             76/419773
DESIGN                           United States of America        41                    12-Jun-2002

UNIQUELY PLAYMATES               97000338/                       Published             78/061268
                                 United States of America        16                    01-May-2001

VIDEO CENTERFOLD                 9000255/                        Registered            73/584269              1442822
                                 United States of America        9                     24-Feb-1986            16-Jun-1987

VIP W/RABBIT HEAD DESIGN         9000441/                        Registered            72182481               792715
                                 United States of America        42                    06-Dec-1963            13-Jul-1965

WET & WILD                       9300288/                        Registered            74/334405              1826170
                                 United States of America        9                     25-Nov-1992            15-Mar-1994

WET AND WILD                     96011510/                       Registered            75/566654              2301995
                                 United States of America        16                    07-Oct-1998            21-Dec-1999

X-TREME TEAM AND LOGO            96012211/                       Published             76/079322
                                 United States of America        25                    28-Jun-2000
</TABLE>

<PAGE>

                                                    Trademark Security Agreement

                             Trademark List by Owner                    Page: 22

      Owner: SPICE ENTERTAINMENT, INC.

<TABLE>
<CAPTION>
                                 Case Number/Subcase             Status                Application            Registration
Trademark                        Country Name                    Class(es)             Number/Date            Number/Date
<S>                              <C>                             <C>                   <C>                    <C>
CABLE VIDEO STORE                SEI7700000/                     Registered            73/593453              1433268
                                 United States of America        38                    14-Apr-1986            17-Mar-1987

CYBERSPICE                       S2107/                          Published             76/154436
                                 United States of America        41                    26-Oct-2000

EROTIC SHOPPING FOR              96012039/                       Registered            75/025852              2015516
GROWN-UPS                        United States of America        42                    30-Nov-1995            12-Nov-1996

E-VIBE                           97000131/                       Published             76/160029
                                 United States of America        3, 5, 10              06-Nov-2000

FRENCH SILK                      97000133/                       Published             76/159916
                                 United States of America        3, 5, 10              06-Nov-2000

INTERACTIVE SPICE WITH           S2027/                          Registered            74/636883              2100636
LIPS LOGO                        United States of America        9                     21-Feb-1995            30-Sep-1997

LOVE TRINKETS                    97000802/                       Pending               76/475630
                                 United States of America        10                    16-Dec-2002

MALE ATTITUDES                   S2170/                          Pending               76/414094
                                 United States of America        10                    03-Jun-2002

PRIVATE MEMBERS                  S2168/                          Published             76/414765
                                 United States of America        10                    03-Jun-2002

PRIVATE SHOPPING FOR             S2064/                          Registered            75/025851              2015515
PRIVATE MOMENTS                  United States of America        42                    30-Nov-1995            12-Nov-1996

SENSUAL SWIRL                    97000132/                       Published             76/160028
                                 United States of America        3, 5, 10              06-Nov-2000

SPICE                            S2028/                          Published             75/832225
                                 United States of America        9                     26-Oct-1999

SPICE                            S1095/                          Registered            74/039455              1690906
                                 United States of America        41                    19-Mar-1990            02-Jun-1992

SPICE                            S2112/                          Registered            76/154389              2616867
                                 United States of America        41                    26-Oct-2000            10-Sep-2002

SPICE                            S2023/                          Suspended             75/832382
                                 United States of America        25                    26-Oct-1999

SPICE                            S2000/                          Registered            75/832302              2659999
                                 United States of America        10                    26-Oct-1999            10-Dec-2002
</TABLE>

<PAGE>

                                                    Trademark Security Agreement

                             Trademark List by Owner                    Page: 23

      Owner: SPICE ENTERTAINMENT, INC.

<TABLE>
<CAPTION>
                                 Case Number/Subcase             Status                Application            Registration
Trademark                        Country Name                    Class(es)             Number/Date            Number/Date
<S>                              <C>                             <C>                   <C>                    <C>
SPICE CLUB                       S2148/                          Published             76/234183
                                 United States of America        41                    30-Mar-2001

SPICE HOT                        S2151/                          Published             78/071287
                                 United States of America        38, 41                27-Jun-2001

SPICE NETWORKS & LIPS            96012054/                       Registered            75/167197              2063530
LOGO                             United States of America        25                    17-Sep-1996            20-May-1997

SPICE PLATINUM                   S2113/                          Registered            76/187076              2571163
                                 United States of America        41                    28-Dec-2000            21-May-2002

SPICE PLATINUM 2                 S2117/                          Published             78/037696
                                 United States of America        41                    04-Dec-2000

SPICE PLATINUM LIVE              S2114/                          Published             76/185321
                                 United States of America        41                    22-Dec-2000

SPICE STIX                       97000135/                       Published             76/172628
                                 United States of America        10                    29-Nov-2000

SPICE STORE                      S2109/                          Registered            76/158011              2531780
                                 United States of America        35                    01-Nov-2000            22-Jan-2002

SPICE TV CLUB                    S2193/                          Published             76/437857
                                 United States of America        41                    05-Aug-2002

SPICE WITH LIPS LOGO             S2086/                          Published             76/149153
                                 United States of America        14                    18-Oct-2000

SPICE WITH LIPS LOGO             S1138/                          Registered            76/038002              2602128
                                 United States of America        10                    01-May-2000            30-Jul-2002

SPICE WITH LIPS LOGO             S1136/                          Pending               76/038001
                                 United States of America        3                     01-May-2000

SPICE WITH LIPS LOGO             S1137/                          Registered            76/183151              2660449
                                 United States of America        9                     19-Dec-2000            10-Dec-2002

SPICE WITH LIPS LOGO             S1140/                          Published             76/038000
                                 United States of America        28                    01-May-2000

SPICE WITH LIPS LOGO             S2055/                          Suspended             76/070331
                                 United States of America        25                    14-Jun-2000

SPICE WITH LIPS LOGO             S2036/                          Registered            75/167196              2091263
                                 United States of America        41                    17-Sep-1996            26-Aug-1997
</TABLE>

<PAGE>

                                                    Trademark Security Agreement

                             Trademark List by Owner                    Page: 24

      Owner: SPICE ENTERTAINMENT, INC.

<TABLE>
<CAPTION>
                                 Case Number/Subcase             Status                Application            Registration
Trademark                        Country Name                    Class(es)             Number/Date            Number/Date
<S>                              <C>                             <C>                   <C>                    <C>
SPICETV                          S2194/                          Published             76/437349
                                 United States of America        35                    05-Aug-2002

SPICETV                          S2150/                          Registered            76/233552              2573387
                                 United States of America        41                    30-Mar-2001            28-May-2002

SPICETV WITH LIPS LOGO           S2169/                          Published             76/417265
                                 United States of America        3, 10, 25             30-Jun-2002

SPICETV.COM                      S2149/                          Registered            76/233569              2573388
                                 United States of America        41                    30-Mar-2001            28-May-2002

SUGAR-N-SPICE                    97000136/                       Published             76/159915
                                 United States of America        3, 5, 10              06-Nov-2000

VIBRATING LIPSTICK               97000134/                       Published             76/183150
                                 United States of America        10                    19-Dec-2000
</TABLE>

                                                    Trademark Security Agreement

                             Trademark List by Owner                    Page: 25

      Owner: SPICE HOT ENTERTAINMENT, INC.

<TABLE>
<CAPTION>
                                 Case Number/Subcase             Status                Application            Registration
Trademark                        Country Name                    Class(es)             Number/Date            Number/Date
<S>                              <C>                             <C>                   <C>                    <C>
THE HOT NETWORK                  S2154/                          Registered            75727710               2585832
                                 United States of America        41                    14-Jun-1999            25-Jun-2002
</TABLE>

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00049-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00049-of-00352.parquet"}]]