Document:

FIRST AMENDMENT

           THIS FIRST AMENDMENT, dated March 3, 2000 by and between Playboy
           Enterprises, Inc. ("Publisher") and Quad/Graphics, Inc. ("Printer")
           hereinafter referred to as the "Amendment".

                                    RECITALS;

           A. Publisher and Printer entered into a certain Agreement, dated
              October 22, 1997, pertaining to the performance of prepress
              services, platemaking or cylinder engraving, offset and gravure
              press work, binding, mailing and delivery to common carriers in
              connection with Publisher's magazine entitled, Playboy (the
              "Work"); such agreement is hereinafter referred to as the
              "Agreement".

           B. Publisher and Printer are desirous of amending the Agreement as
              hereinafter provided.

            FOR GOOD AND VALUABLE CONSIDERATION. the receipt and sufficiency of
            which are hereby acknowledged by each party, Printer and Publisher
            agree as follows:

           1. Article 2.01 of the Agreement is amended to extend the term of the
              Agreement by two (2) years to expire November 1, 2004 (through
              completion of the January 2005 issue of Playboy) unless terminated
              prior thereto pursuant to any provisions in the Agreement.

           2. Printer will waive its entitlement to and forego the December 1,
              2000 price escalation to reflect increases to Printer's labor
              costs.

           3. The Preparatory Prices, dated October 12, 1999 and attached hereto
              as Exhibit 1, represent the preparatory pricing currently in
              effect at the time of this Amendment, subject to adjustment as
              provided in the Agreement, as hereby amended.

           4. The Manufacturing Prices, dated March 1, 2000 and attached hereto
              as Exhibit 2, represent the manufacturing pricing currently in
              effect at the time of this Amendment, subject to adjustment as
              provided in the Agreement, as hereby amended.

              The Paper Requirements, dated March 1, 2000 and attached hereto as
              part of Exhibit 2, represent the paper requirements currently in
              effect at the time of this Amendment.

           5. The following understanding regarding paper storage was included
              in an amendment letter, dated August 17, 1998 from Kevin Betz of
              Quad/Graphics to Maria Mandis at Playboy Enterprises, which letter
              was signed on November 13, 1998; however, this letter includes an
              incorrect reference to the contract document it amends. Therefore,
              Article 9.01 of the Agreement is amended to include the current
              understanding regarding paper storage, which is as follows:

              "Printer will agree to maintain an ongoing storage limit, without
              charge, of up to two (2) months of the paper consumed in the
              previous two (2) months, including the current month without
              charge to Publisher. In addition to this allowance, there will be
              no charge for the amount of paper received within the current
              month. Paper stored in excess of this allowance will be invoiced
              at the rate of $O.35/cwt. Inventory will be reviewed on the last
              day of each month."

<PAGE>

Playboy Enterprises, Inc.
First Contract Amendment
March 3, 2000
Page 2

           6. Article 10.05 of the Agreement is amended to provide that the
              Preparatory and Manufacturing Prices, attached hereto as
              Exhibits 1 and 2, shall remain firm through November 30, 2001. If
              there shall be any change to Printer in the price of materials
              (excluding ink), or labor increases or decreases (any change in
              labor conditions), the prices contained in Exhibits 1 and 2 may be
              adjusted December 1, 2001, and on each December lst thereafter
              during the term of the Agreement, as herein amended, to reflect
              such change. Price increases will be limited to actual cost not to
              exceed eighty five percent (85%) of the Consumer Price Index. For
              purposes of Article 10.05, as hereby amended, the "Consumer Price
              Index" means the selected areas, all items index (1967=100) for
              the Chicago-Gary-Lake Co. IL-IN-WI Consumer Price Index for Urban
              Wage Earners and Clerical Workers (CPI-W) published by the Bureau
              of Labor Statistics, U.S. Department of Labor. The increase in the
              Consumer Price Index applicable as of any December 1st shall be
              the increase in the Consumer Price Index of the previous July over
              that of the preceding July. (For example, the increase applicable
              for December 1, 2001 shall be the increase in the Consumer Price
              Index of July, 2001 over that of July, 2000). Printer will notify
              Publisher as soon as practical after knowledge of any increase or
              decrease.

            7. Except as modified herein, the Agreement will continue in full
            force and effect without change

  IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
  executed by their respective officers effective on the date herein set forth.

           Playboy Enterprises, Inc.                  Quad/Graphics, Inc.

      By: /s/ Maria Mandis                   By: /s/ Carl L. Bennett
         ---------------------------            -------------------------------
         Name: Maria Mandis                     Carl L. Bennett
         Title: VP/ Production Director         Senior Vice President

      Date: 4/12/2000                        Date: 3/6/00
           -------------------------              -----------------------------

<PAGE>

                      Playboy Enterprises, Inc. - Quad/Graphics Inc.
                                 First Amendment

                                  Exhibit 1-
                           Preparatory Price Schedule
                            (dated October 12, 1999)

<PAGE>

                                   QUAD/GRAPHICS, INC.
            2000 PREPARATORY CONTRACT PRICE LIST FOR PLAYBOY ENTERPRISES, INC.
------------------------------------------------------------------------------

Prices are based on producing an 8-3/16" x 10-7/8" page size.

PLAYBOY 2000 (Contract Pricing)

Full Page Furnished Ads (2/C, 3/C or 4/C)

Supplied RREU negatives.............................      $***

Supplied RRED negatives.............................      $***

Supplied RRED positives.............................      $***

Full Page B&W Ads

Supplied RREU negatives.............................      $***

Supplies RRED positives.............................      $***

Partial Page Ads (based upon B&W edit film. If edit has scans, tints, K.O's,
handwork, etc. will be billed per the attached price list.

B&W ad (supplied RREU negatives)....................      $***

2/C, 3/C or 4/C ad supplied as RREU
negatives (price based on one ad)...................      $***

2/C, 3/C or 4/C ad supplied as RREU
negatives (price based on two ads)..................      $***

Pick up ads (partial or full page)

Pick up B&W ad .....................................      $***

Pick up 2/C, 3/C or 4/C ad .........................      $***

4/C Edit Pages (for Gravure Printing)
4/C edit page ......................................      $***

Pictorial page .....................................      $***
B/W edit page  .....................................      $***

Furnished Ad Pages (for Gravure Printing)

Positive 4/C ad ....................................       $***
Negative 4/C ad ....................................       $***

Create Reverse Type

Create reverse type ................................       $***
Full color with reverse type .......................       $***
================================================================================
Quad/Imaging              October 12, 1999                    Page 1

<PAGE>

                                   QUAD/GRAPHICS, INC.
            2000 PREPARATORY CONTRACT PRICE LIST FOR PLAYBOY ENTERPRISES, INC.
------------------------------------------------------------------------------

Prices are based on producing an 8-3/16" x 10-7/8" page size.

PLAYBOY 2000 (Contract Price List)

        DESKTOP PAGE PROCESSING
(056)   Trap color .................................               $***
(297)   Black & white line scan ....................               $***
        Page processing, per color (outputting film
(134)   additional).................................               $***
(489)   Digital file output (per color).............               $***
(073)   Output film (per color).....................               $***

        ARM CENTER
(031)   Ad inspection ..............................               $***
(175)   Convert film to digital file (per color)....               $***

        ELECTRONIC SYSTEM
        Electronic page assembly, color correction,
        swatch matching, retouching,special effects, rotation,
        extensive resizing, alteration of
(496)   desktop page files .........................               $***

        PROOFING
(065)   Position proof .............................               $***
(023)   Black & white proof (Velox or LOP)..........               $***
(025)   Matchprint proof ...........................               $***
(215)   Kodak Approval proof .......................               $***

================================================================================
Quad/Imaging                      October 12, 1999                     Page 2

<PAGE>

                    Playboy Enterprises, Inc. -  Quad/Graphics, Inc.
                                     First Amendment

                                       Exhibit 2 -
                        Manufacturing Prices & Paper Requirements
                                  (dated March 1, 2000)
<PAGE>

                                                         Effective Date: 12/1/99

                               PLAYBOY ENTERPRISES
                                 PRICE SCHEDULES

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------
   Offset presswork           Del.                            Plates &       Rate
   form description            as      Out       Plates      makeready     per / M
=====================================================================================
<S>                          <C>       <C>        <C>         <C>              <C>
4 Page Flat Cover (4/4)      4's       4           8          ***              ***
4 Page Flat Cover (5/5)      4's       4          10          ***              ***
4 Page Flat Cover (6/6)      4's       4          12          ***              ***
4 Page Flat Cover (7/4)      4's       4          11          ***              ***
4 Page Flat Cover (7/5)      4's       4          12          ***              ***
4 Page Flat Cover (8/4)      4's       4          12          ***              ***
4 Page Flat Cover (8/5)      4's       4          13          ***              ***

6 Page Gate Cover (4/4)      6's       2           8          ***              ***
6 Page Gate Cover (5/5)      6's       2          10          ***              ***
6 Page Gate Cover (6/6)      6's       2          12          ***              ***
6 Page Gate Cover (7/4)      6's       2          11          ***              ***
6 Page Gate Cover (8/4)      6's       2          12          ***              ***

6 Page Gate Center (4/2)     6's       2           6          ***              ***
6 Page Gate Center (4/4)     6's       2           8          ***              ***
6 Page Gate Center (5/4)     6's       2           9          ***              ***
6 Page Gate Center (5/5)     6's       2          10          ***              ***

2 Page Body (1/1)            2's       8           2          ***              ***
2 Page Body (2/2)            2's       8           4          ***              ***
2 Page Body (4/4)            2's       8           8          ***              ***
2 Page Body (5/5)            2's       8          10          ***              ***
2 Page Body (6/6)            2's       8          12          ***              ***
2 Page Body (7/7)            2's       8          14          ***              ***

4 Page Body (1/1)            4's       4           2          ***              ***
4 Page Body (2/2)            4's       4           4          ***              ***
4 Page Body (4/4)            4's       4           8          ***              ***
4 Page Body (5/5)            4's       4          10          ***              ***
4 Page Body (6/5)            4's       4          11          ***              ***

4 Page Gate Body (1/1)       4's       4           2          ***              ***
4 Page Gate Body (2/2)       4's       4           4          ***              ***
4 Page Gate Body (4/4)       4's       4           8          ***              ***
4 Page Gate Body (5/5)       4's       4          10          ***              ***

6 Page Gate Body (4/4+4/4)   6's       4          16          ***              ***

8 Page Body (1/1)            8's       2           2          ***              ***
8 Page Body (2/2)            8's       2           4          ***              ***
8 Page Body (4/4)            8's       2           8          ***              ***
8 Page Body (5/5)            8's       2          10          ***              ***
8 Page Body (8/5)            8's       2          13          ***              ***

8 Page Body (1/1+1/1)        8's       4           4          ***              ***
8 Page Body (2/2+2/2)        8's       4           8          ***              ***
8 Page Body (4/4+1/1)        8's       4          10          ***              ***
8 Page Body (4/4+2/2)        8's       4          12          ***              ***
8 Page Body (4/4+4/4)        8's       4          16          ***              ***
8 Page Body (5/5+4/4)        8's       4          18          ***              ***
8 Page Body (5/5+5/5)        8's       4          20          ***              ***

8 Page Gate Body (4/4)       8's       2           8          ***              ***
8 Page Gate Body (5/5)       8's       2          10          ***              ***
------------------------------------------------------------------------------------
</TABLE>

Page 1                         Quad/Graphics Inc.          Updated March 1, 2000
                                              00803 / 00803-00 Pricelist.xls/ljb

<PAGE>

                                                         Effective Date: 12/1/99

                               PLAYBOY ENTERPRISES
                                 PRICE SCHEDULES
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
   Offset presswork      Del.                            Plates &       Rate
   form description       as      Out       Plates      makeready     per / M
================================================================================
<S>                      <C>      <C>         <C>         <C>             <C>
12 Page Body (1/1+1/1)   12's      2           4          ***              ***
12 Page Body (2/2+2/2)   12's      2           8          ***              ***
12 Page Body (4/4+1/1)   12's      2          10          ***              ***
12 Page Body (4/4+2/2)   12's      2          12          ***              ***
12 Page Body (4/4+4/4)   12's      2          16          ***              ***
12 Page Body (5/5+4/4)   12's      2          18          ***              ***
12 Page Body (5/5+5/5)   12's      2          20          ***              ***

16 Page Body (1/1)       8's       1           2          ***              ***
16 Page Body (2/2)       8's       1           4          ***              ***
16 Page Body (4/4)       8's       1           8          ***              ***
16 Page Body (5/5)       8's       1          10          ***              ***

16 Page Body (1/1+1/1)   8's       2           4          ***              ***
16 Page Body (2/2+2/2)   8's       2           8          ***              ***
16 Page Body (4/4+1/1)   8's       2          10          ***              ***
16 Page Body (4/4+2/2)   8's       2          12          ***              ***
16 Page Body (4/4+4/4)   8's       2          16          ***              ***
16 Page Body (5/5+4/4)   8's       2          18          ***              ***
16 Page Body (5/5+5/5)   8's       2          20          ***              ***

16 Page Body (1/1+1/1)   16's      2           4          ***              ***
16 Page Body (2/2+2/2)   16's      2           8          ***              ***
16 Page Body (4/4+1/1)   16's      2          10          ***              ***
16 Page Body (4/4+2/2)   16's      2          12          ***              ***
16 Page Body (4/4+4/4)   16's      2          16          ***              ***
16 Page Body (5/5+4/4)   16's      2          18          ***              ***
16 Page Body (5/5+5/5)   16's      2          20          ***              ***
--------------------------------------------------------------------------------
</TABLE>

Page 2                     Quad/Graphics Inc.              Updated March 1, 2000
                                              00803 / 00803-00 PriceList.xls/ljb

<PAGE>

                                                         Effective Date: 12/1/99

                               PLAYBOY ENTERPRISES
                                 PRICE SCHEDULES

--------------------------------------------------------------------------------
   Offset presswork      Del.                            Plates &       Rate
   form description       as      Out       Plates      makeready     per / M
================================================================================
32 Page Body (1/1+1/1)   8's       1           4          ***              ***
32 Page Body (2/2+2/2)   8's       1           8          ***              ***
32 Page Body (4/4+1/1)   8's       1          10          ***              ***
32 Page Body (4/4+2/2)   8's       1          12          ***              ***
32 Page Body (4/4+4/4)   8's       1          16          ***              ***
32 Page Body (5/5+4/4)   8's       1          18          ***              ***
32 Page Body (5/5+5/5)   8's       1          20          ***              ***

32 Page Body (1/1+1/1)   16's      1           4          ***              ***
32 Page Body (2/2+2/2)   16's      1           8          ***              ***
32 Page Body (4/4+1/1)   16's      1          10          ***              ***
32 Page Body (4/4+2/2)   16's      1          12          ***              ***
32 Page Body (4/4+4/4)   16's      1          16          ***              ***
32 Page Body (5/5+4/4)   16's      1          18          ***              ***
32 Page Body (5/5+5/5)   16's      1          20          ***              ***

--------------------------------------------------------------------------------
Plates are guaranteed for 1,500,000 impressions, replacements will be invoiced
as required thereafter. See below for plate and makeready changes.
--------------------------------------------------------------------------------

Additional costs to produce two page advertising inserts (regionals):

50,000-100,000 quantity additional makeready (Plus 500
additional pounds)                                          ***              ***

Less than 50,000 quantity additional makeready (Plus
500 additional pounds)                                      ***              ***

================================================================================
                     Offset press                                       Rate
                  supplemental prices                    Makeready    per / M
================================================================================
Plate charges, each                                         ***              ***
Makeready changes, each plate                               ***              ***
Rub off                                                     ***              ***
Perf signature                                              ***              ***
Multiple delivery charges, per delivery                     ***              ***
Flat Cutting, per side                                      ***              ***
Press down time, per hour                                   ***              ***
--------------------------------------------------------------------------------

Page 3                       Quad/Graphics Inc.            Updated March 1, 2000
                                              00803 / 00803-00 PriceList.xls/ljb
<PAGE>

                                                         Effective Date: 12/1/99

                               PLAYBOY ENTERPRISES
                                 PRICE SCHEDULES

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------
        Gravure presswork             Del.                                         Cylinders &            Rate
        form description               as          Out           Cylinders          makeready            per / M
======================================================================================================================
<S>                                   <C>           <C>             <C>                 <C>                     <C>
12 Page Body (4/4)                    12's          4                8                  ***                     ***
12 Page Body (5/5)                    12's          4               10                  ***                     ***

16 Page Body (4/4)                    16's          4                8                  ***                     ***
16 Page Body (5/5)                    16's          4               10                  ***                     ***

20 Page Body (4/4)                    20's          2                8                  ***                     ***
20 Page Body (5/5)                    20's          2               10                  ***                     ***

24 Page Body (4/4)                    24's          2                8                  ***                     ***
24 Page Body (5/5)                    24's          2               10                  ***                     ***

28 Page Body (4/4)                    28's          2                8                  ***                     ***
28 Page Body (5/5)                    28's          2               10                  ***                     ***

32 Page Body (4/4)                    32's          2                8                  ***                     ***
32 Page Body (5/5)                    32's          2               10                  ***                     ***

36 Page Body (4/4)                    36's          2                8                  ***                     ***
36 Page Body (5/5)                    36's          2               10                  ***                     ***

40 Page Body (4/4)                    20's          1                8                  ***                     ***
40 Page Body (5/5)                    20's          1               10                  ***                     ***

48 Page Body (4/4)                    16's          2                8                  ***                     ***
48 Page Body (5/5)                    16's          2               10                  ***                     ***

48 Page Body (4/4)                    24's          1                8                  ***                     ***
48 Page Body (5/5)                    24's          1               10                  ***                     ***

56 Page Body (4/4)                    28's          1                8                  ***                     ***
56 Page Body (5/5)                    28's          1               10                  ***                     ***

60 Page Body (4/4)                    20's          2                8                  ***                     ***
60 Page Body (5/5)                    20's          2               10                  ***                     ***

64 Page Body (4/4)                    32's          1                8                  ***                     ***
64 Page Body (5/5)                    32's          1               10                  ***                     ***

72 Page Body (4/4)                    24's          1                8                  ***                     ***
72 Page Body (5/5)                    24's          1               10                  ***                     ***
72 Page Body (4/4)                    12's          1                8                  ***                     ***
72 Page Body (5/5)                    12's          1               10                  ***                     ***

84 Page Body (4/4)                    28's          1                8                  ***                     ***
84 Page Body (5/5)                    28's          1               10                  ***                     ***

96 Page Body (4/4)                    32's          1                8                  ***                     ***
96 Page Body (5/5)                    32's          1               10                  ***                     ***
96 Page Body (4/4)                    16's          1                8                  ***                     ***
96 Page Body (5/5)                    16's          1               10                  ***                     ***

----------------------------------------------------------------------------------------------------------------------
   Included in makeready charges are bromides, one set of cylinders with one press proof and the press makeready.
----------------------------------------------------------------------------------------------------------------------
</TABLE>

Page 4                 Quad/Graphics Inc.                 Updated March 1, 2000
                                              00803 / 00803-00 PriceList.xls/ljb
<PAGE>

                                                         Effective Date: 12/1/99

                               PLAYBOY ENTERPRISES
                                 PRICE SCHEDULES

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------
                                 Gravure press                                                            Rate
                              supplemental prices                                    Makeready           per / M
======================================================================================================================
<S>                                                                                      <C>                    <C>
Additional bromides, per page, per color                                                 ***                    ***
Cylinder charges, each                                                                   ***                    ***
Makeready charges, each cylinder                                                         ***                    ***
Additional proofs (per side)                                                             ***                    ***
Supplemental engraving for type only, each                                               ***                    ***
Cylinder storage 1st month, each cylinder                                                ***                    ***
Cylinder storage each additional month, each cylinder                                    ***                    ***
Press down time, per hour                                                                ***                    ***
Multiple delivery charges, per delivery                                                  ***                    ***

<CAPTION>
======================================================================================================================
                                     Offest                                                Cover              Body
                                   ink prices                                               Rate              Rate
======================================================================================================================
<S>                                                                                         <C>                 <C>
4/Color pages, per/M                                                                        ***                    ***
3/Color pages, per/M                                                                        ***                    ***
2/Color pages, per/M                                                                        ***                    ***
Black pages, per/M                                                                          ***                    ***
5/Color (non metallic) pages, per/M                                                         ***                    ***
6/Color (non metallic) pages, per/M                                                         ***                    ***
7/Color (non metallic) pages, per/M                                                         ***                    ***
8/Color (non metallic) pages, per/M                                                         ***                    ***
Metallic Color less than 1/2 page, per/M                                                    ***                    ***
Varnish                                                                                     ***                    ***
UV Cost covers 1 &4
         Makeready                                                                          ***
         Run rate, per/M                                                                    ***
UV Cost covers of gatefold (one side only)
         Makeready                                                                          ***
         Run rate, per/M                                                                    ***
Flourescent inks will be invoiced at cost + 10%                                             ***

<CAPTION>
======================================================================================================================
                                    Gravure                                                               Body
                                   Ink prices                                                             rate
======================================================================================================================
<S>                                                                                                            <C>
4/Color pages, per/M                                                                                           ***
3/Color pages, per/M                                                                                           ***
2/Color pages, per/M                                                                                           ***
Black pages, per/M                                                                                             ***
PMS ink will be invoiced at cost + 10%
Flourescent inks will be invoiced at cost + 10%                                                                    --

----------------------------------------------------------------------------------------------------------------------
</TABLE>

Page 5                  Quad/Graphics Inc.                 Updated March 1, 2000
                                              00803 / 00803-00 PriceList.xls/ljb
<PAGE>

                                                         Effective Date: 12/1/99

                               PLAYBOY ENTERPRISES
                                 PRICE SCHEDULES

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------
                                                                                                            Rate
                                Perfect binding                                        Makeready           per / M
======================================================================================================================
<S>                                                                                      <C>                   <C>
 Up to 12 pockets                                                                        ***                   ***
       13 pockets                                                                        ***                   ***
       14 pockets                                                                        ***                   ***
       15 pockets                                                                        ***                   ***
       16 pockets                                                                        ***                   ***
       17 pockets                                                                        ***                   ***
       18 pockets                                                                        ***                   ***
       19 pockets                                                                        ***                   ***
       20 pockets                                                                        ***                   ***
       21 pockets                                                                        ***                   ***
       22 pockets                                                                        ***                   ***
       23 pockets                                                                        ***                   ***
       24 pockets                                                                        ***                   ***
       25 pockets                                                                        ***                   ***
       26 pockets                                                                        ***                   ***
       27 pockets                                                                        ***                   ***
       28 pockets                                                                        ***                   ***
       29 pockets                                                                        ***                   ***
       30 pockets                                                                        ***                   ***
       31 pockets                                                                        ***                   ***
       32 pockets                                                                        ***                   ***
       33 pockets                                                                        ***                   ***
       34 pockets                                                                        ***                   ***
       35 pockets                                                                        ***                   ***
       36 pockets                                                                        ***                   ***
       37 pockets                                                                        ***                   ***
       38 pockets                                                                        ***                   ***
       39 pockets                                                                        ***                   ***
       40 pockets                                                                        ***                   ***
       41 pockets                                                                        ***                   ***
       42 pockets                                                                        ***                   ***
       43 pockets                                                                        ***                   ***
       44 pockets                                                                        ***                   ***
----------------------------------------------------------------------------------------------------------------------
       Rate Per/M includes all cost up through the trimming unit. Makeready prices are based on 3 machines.
----------------------------------------------------------------------------------------------------------------------
</TABLE>

Page 6                  Quad/Graphics Inc.                 Updated March 1, 2000
                                              00803 / 00803-00 PriceList.xls/ljb
<PAGE>
                                                          Effective Date 12/1/99

                               PLAYBOY ENTERPRISES
                                 PRICE SCHEDULES
<TABLE>
<CAPTION>

--------------------------------------------------------------------------------
                                                                       Rate
               Perfect binding premiums                  Makeready    per / M
================================================================================
<S>                                                      <C>          <C>
Bind-in and Blow-in cards are counted as pockets         ***          ***
First pocket change per stop, per machine                ***          ***
Each additional pocket change per same stop, per
machine                                                  ***          ***
Demographic Insertion (body signatures only) (ink jet
required)                                                ***          ***
Demographic Insertion (cover form only) (ink jet
required)                                                ***          ***
Demographic Insertion (body forms and cover) (ink jet
required)                                                ***          ***
Label aire / dot whacker                                 ***          ***
Handwork, per hour                                       ***          ***
Binder holding time, per hour                            ***          ***
Reverse Disc Feed (used on all gatefold inserts)         ***          ***
================================================================================
                   In-line polywrap and mailing                           Rate
                     With black sitma plastic                            Per / M
================================================================================
Up to 12 pockets on perfect binder                                        ***
      13 pockets on perfect binder                                        ***
      14 pockets on perfect binder                                        ***
      15 pockets on perfect binder                                        ***
      16 pockets on perfect binder                                        ***
      17 pockets on perfect binder                                        ***
      18 pockets on perfect binder                                        ***
      19 pockets on perfect binder                                        ***
      20 pockets on perfect binder                                        ***
      21 pockets on perfect binder                                        ***
      22 pockets on perfect binder                                        ***
      23 pockets on perfect binder                                        ***
      24 pockets on perfect binder                                        ***
      25 pockets on perfect binder                                        ***
      26 pockets on perfect binder                                        ***
      27 pockets on perfect binder                                        ***
      28 pockets on perfect binder                                        ***
      29 pockets on perfect binder                                        ***
      30 pockets on perfect binder                                        ***
      31 pockets on perfect binder                                        ***
      32 pockets on perfect binder                                        ***
      33 pockets on perfect binder                                        ***
      34 pockets on perfect binder                                        ***
      35 pockets on perfect binder                                        ***
      36 pockets on perfect binder                                        ***
      37 pockets on perfect binder                                        ***
      38 pockets on perfect binder                                        ***
      39 pockets on perfect binder                                        ***
      40 pockets on perfect binder                                        ***
      41 pockets on perfect binder                                        ***
      42 pockets on perfect binder                                        ***
      43 pockets on perfect binder                                        ***
      44 pockets on perfect binder                                        ***
--------------------------------------------------------------------------------
</TABLE>

Page 7                       Quad/Graphics Inc.            Updated March 1, 2000
                                              00803 / 00803-00 PriceList.xls/ljb

<PAGE>
                                                          Effective Date 12/1/99

                               PLAYBOY ENTERPRISES
                                 PRICE SCHEDULES

<TABLE>
<CAPTION>

--------------------------------------------------------------------------------
                                                                          Rate
         In-line polywrap and mailing premiums           Makeready       per / M
================================================================================
<S>                                                      <C>             <C>
Inserts                                                  ***             ***
Pocket changes, each                                     ***             ***
Inkjet addressing and formatting upcharge (max 8 lines
in one position)                                         ***             ***
Ink jet "out of pocket" upcharge (per position)          ***             ***
Inkjet code & message or code only                       ***             ***
SR-50 Inkjet                                             ***             ***
Delete names from supplied inkjet files, per name        ***             ***
Demographic Insertion                                    ***             ***
Additional colors and versions on poly film invoiced
at cost plus 15%                                         ***             ***
Label aire / dot whacker                                 ***             ***
Pick and Place Onsert (America On-Line)                  ***             ***
Slowdown for Pick and Place Onsert (America On-Line)     ***             ***
Preaddressed Attached Mail                               ***             ***
Slowdown for Preaddressed Attached Mail                  ***             ***

                                                                          Rate
               Newsstand and bulk packing                Makeready       per / M
================================================================================
Shrinkwrap in bundles                                    ***             ***
Newsstand label preparation                              ***             ***
Onsert newsstand letter, per bundle                      ***             ***

                                                                          Rate
                  Off-line mailing                      Makeready       per / M
================================================================================
Off-line mail with paper labels                          ***             ***
List changes, each                                       ***             ***
Insert into supplied envelopes                           ***             ***
Insert into quad supplied envelopes                      ***             ***
Handwork, per hour                                       ***             ***

                                                                          Rate
                 Packing and handling                    Makeready      per / M
================================================================================
Off-line polywrapping base piece                         ***             ***
Off-line polywrapping per insert                         ***             ***
Bulk in cartons, each (with attached shipping label)     ***             ***
Bulk on skids, each                                      ***             ***
Bulk on skids with sleeves, each                         ***             ***
Tearsheets (based on per hour rate)                      ***             ***
Handle furnished skids, each                             ***             ***
Handling furnished stock, per cwt (as received)          ***             ***
--------------------------------------------------------------------------------
</TABLE>

Page 8                            Quad/Graphics Inc.       Updated March 1, 2000
                                              00803 / 00803-00 PriceList.xls/ljb
<PAGE>

                               PLAYBOY ENTERPRISES
                               PAPER REQUIREMENTS
<TABLE>
<CAPTION>

--------------------------------------------------------------------------------
8 1/8" x 10 7/8" Book        Roll     Cyl.       Basis                     Rate
size paper requirements     width     size      weight      Makeready    per / M
================================================================================
<S>                         <C>       <C>       <C>        <C>          <C>
4 page flat cover
(4/4)                     33.7500   22.750       100       ***          ***
4 Page flat cover
(5/5)                     33.7500   22.750       100       ***          ***
4 Page flat cover
(6/6)                     33.7500   22.750       100       ***          ***
4 Page flat cover
(7/7)                     33.7500   22.750       100       ***          ***
   Press stops, each      33.7500   22.750       100       ***          ***
   Plate changes, per
   plate                  33.7500   22.750       100       ***          ***
6 Page cover (4/4)        24.5000   22.750        80       ***          ***
6 Page cover (5/5)        24.6000   22.750        80       ***          ***
6 Page cover (6/6)        24.5000   22.750        80       ***          ***
   Press stops, each      24.5000   22.750        80       ***          ***
   Plate changes, per
   plate                  24.5000   22.750        80       ***          ***
6 Page center (4/2)       23.1875   22.750        60       ***          ***
6 Page center (4/4)       23.1875   22.750        60       ***          ***
6 Page center (5/4)       23.1875   22.750        60       ***          ***
6 Page center (5/5)       23.1875   22.750        60       ***          ***
   Press stops, each      23.1875   22.750        60       ***          ***
   Plate changes, per
   plate                  23.1875   22.750        60       ***          ***
2 Page body (1/1)         33.5000   22.750        50       ***          ***
2 Page body (2/2)         33.5000   22.750        50       ***          ***
2 Page body (4/4)         33.5000   22.750        50       ***          ***
2 Page body (5/5)         33.5000   22.750        50       ***          ***
2 Page body (6/6)         33.5000   22.750        50       ***          ***
4 Page body (1/1)         33.5000   22.750        50       ***          ***
4 Page body (2/2)         33.5000   22.750        50       ***          ***
4 Page body (4/4)         33.5000   22.750        50       ***          ***
4 Page body (5/5)         33.5000   22.750        50       ***          ***
4 Page body (1/1)         33.5000   22.750        40       ***          ***
4 Page body (2/2)         33.5000   22.750        40       ***          ***
4 Page body (4/4)         33.5000   22.750        40       ***          ***
4 Page body (5/5)         33.5000   22.750        40       ***          ***
4 Page gatefold (1/1)     30.5000   22.750        60       ***          ***
4 Page gatefold (2/2)     30.5000   22.750        60       ***          ***
4 Page gatefold (4/4)     30.5000   22.750        60       ***          ***
4 Page gatefold (5/5)     30.5000   22.750        60       ***          ***
   Press stops, each      30.5000   22.750        60       ***          ***
   Plate changes, per
   plate                  30.5000   22.750       60        ***          ***
6 Page gatefold
(4/4+4/4)                 19.1250   22.750       60        ***          ***
   Press stops, each,
   per web                19.1250   22.750       60        ***          ***
   Plate changes, per
   plate                  19.1250   22.750       60        ***          ***
8 Page body (1/1)         33.5000   22.750       50        ***          ***
8 Page body (2/2)         33.5000   22.750       50        ***          ***
8 Page body (4/4)         33.5000   22.750       50        ***          ***
8 Page body (5/5)         33.5000   22.750       50        ***          ***
8 Page body (8/5)         33.5000   22.750       50        ***          ***
--------------------------------------------------------------------------------
</TABLE>

Page 9                     Quad/Graphics Inc.            Updated March 1,  2000
                                              00803 / 00803-00 PriceList.xls/ljb
<PAGE>

                               PLAYBOY ENTERPRISES
                               PAPER REQUIREMENTS

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------
   8 1/8" x 10 7/8" Book size         Roll         Cyl.            Basis                                     Rate
       paper requirements            width         size           weight              Makeready             per / M
======================================================================================================================
<S>                                 <C>           <C>               <C>                      <C>                <C>
8 Page body (1/1)                   33.5000       22.750            40                       ***                ***
8 Page body (2/2)                   33.5000       22.750            40                       ***                ***
8 Page body (4/4)                   33.5000       22.750            40                       ***                ***
8 Page body (5/5)                   33.5000       22.750            40                       ***                ***
8 Page body (8/5)                   33.5000       22.750            40                       ***                ***
8 Page body (1/1+1/1)               33.5000       22.750            50                       ***                ***
8 Page body (2/2+2/2)               33.5000       22.750            50                       ***                ***
8 Page body (4/4+1/1)               33.5000       22.750            50                       ***                ***
8 Page body (4/4+2/2)               33.5000       22.750            50                       ***                ***
8 Page body (4/4+4/4)               33.5000       22.750            50                       ***                ***
8 Page body (5/5+4/4)               33.5000       22.750            50                       ***                ***
8 Page body (5/5+5/5)               33.5000       22.750            50                       ***                ***
8 Page body (1/1+1/1)               33.5000       22.750            40                       ***                ***
8 Page body (2/2+2/2)               33.5000       22.750            40                       ***                ***
8 Page body (4/4+1/1)               33.5000       22.750            40                       ***                ***
8 Page body (4/4+2/2)               33.5000       22.750            40                       ***                ***
8 Page body (4/4+4/4)               33.5000       22.750            40                       ***                ***
8 Page body (5/5+4/4)               33.5000       22.750            40                       ***                ***
8 Page body (5/5+5/5)               33.5000       22.750            40                       ***                ***
8 Page gatefold (4/4)               31.7500       22.750            60                       ***                ***
8 Page gatefold (5/5)               31.7500       22.750            60                       ***                ***
   Press stops, each                31.7500       22.750            60                       ***                ***
   Plate changes, per plate         31.7500       22.750            60                       ***                ***

12 Page body (1/1+                  33.5000       22.750            40                       ***                ***
                  1/1)              16.7500       22.750            40                       ***                ***
12 Page body (2/2+                  33.5000       22.750            40                       ***                ***
                  2/2)              16.7500       22.750            40                       ***                ***
12 Page body (4/4+                  33.5000       22.750            40                       ***                ***
                  1/1)              16.7500       22.750            40                       ***                ***
12 Page body (4/4+                  33.5000       22.750            40                       ***                ***
                  2/2)              16.7500       22.750            40                       ***                ***
12 Page body (4/4+                  33.5000       22.750            40                       ***                ***
                  4/4)              16.7500       22.750            40                       ***                ***
12 Page body (5/5+                  33.5000       22.750            40                       ***                ***
                  4/4)              16.7500       22.750            40                       ***                ***
12 page body (5/5+                  33.5000       22.750            40                       ***                ***
                  5/5)              16.7500       22.750            40                       ***                ***

16 Page body (1/1)                  33.5000       22.750            40                       ***                ***
16 Page body (2/2)                  33.5000       22.750            40                       ***                ***
16 Page body (4/4)                  33.5000       22.750            40                       ***                ***
16 Page body (5/5)                  33.5000       22.750            40                       ***                ***

16 Page body (1/1+1/1)              33.5000       22.750            40                       ***                ***
16 Page body (2/2+2/2)              33.5000       22.750            40                       ***                ***
16 Page body (4/4+1/1)              33.5000       22.750            40                       ***                ***
16 Page body (4/4+2/2)              33.5000       22.750            40                       ***                ***
16 Page body (4/4+4/4)              33.5000       22.750            40                       ***                ***
16 Page body (5/5+4/4)              33.5000       22.750            40                       ***                ***
16 Page body (5/5+5/5)              33,5000       22.750            40                       ***                ***
----------------------------------------------------------------------------------------------------------------------
</TABLE>

Page 10                 Quad/Graphics Inc.                 Updated March 1, 2000
                                              00803 / 00803-00 PriceList.xls/ljb
<PAGE>

                               PLAYBOY ENTERPRISES
                               PAPER REQUIREMENTS

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------
   8 1/8" x 10 7/8" Book size         Roll         Cyl.            Basis                                      Rate
       paper requirements            width         size           weight              Makeready             per / M
======================================================================================================================
<S>                                 <C>           <C>               <C>                      <C>               <C>
32 Page body (1/1+1/1)              33.5000       22.750            40                       ***               ***
32 Page body (2/2+2/2)              33.5000       22.750            40                       ***               ***
32 Page body (4/4+1/1)              33.5000       22.750            40                       ***               ***
32 Page body (4/4+2/2)              33.5000       22.750            40                       ***               ***
32 Page body (4/4+4/4)              33.5000       22.750            40                       ***               ***
32 Page body (5/5+4/4)              33.5000       22.750            40                       ***               ***
32 Page body (5/5+5/5)              33.5000       22.750            40                       ***               ***
     Press stops, per web, each     33.5000       22.750            50                       ***               ***
     Press stops, per web, each     33.5000       22.750            40                       ***               ***
     Plate changes, per plate       33.5000       22.750            50                       ***               ***
     Plate changes, per plate       33.5000       22.750            40                       ***               ***
----------------------------------------------------------------------------------------------------------------------
</TABLE>

Page 11                 Quad/Graphics Inc.                 Updated March 1, 2000
                                              00803 / 00803-00 PriceList.xls/ljb
<PAGE>

                               PLAYBOY ENTERPRISES
                               PAPER REQUIREMENTS

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------
   8 1/8" x 10 7/8" Book size         Roll         Cyl.            Basis                                    Rate
       paper requirements            width         size           weight            Makeready             per / M
======================================================================================================================
<S>                                 <C>           <C>               <C>                      <C>                <C>
4 page flat cover (4/4)             33.7500       22.750            100                      ***                ***
4 Page flat cover (5/5)             33.7500       22.750            100                      ***                ***
4 Page flat cover (6/6)             33.7500       22.750            100                      ***                ***
4 Page flat cover (7/7)             33.7500       22.750            100                      ***                ***
   Press stops, each                33.7500       22.750            100                      ***                ***
   Plate changes, per plate         33.7500       22.750            100                      ***                ***

6 Page cover (4/4)                  24.5000       22.750            100                      ***                ***
6 Page cover (5/5)                  24.5000       22.750            100                      ***                ***
6 Page cover (6/6)                  24.5000       22.750            100                      ***                ***
   Press stops, each                24.5000       22.750            100                      ***                ***
   Plate changes, per plate         24.5000       22.750            100                      ***                ***

6 Page center (4/2)                 23.1875       22.750             80                      ***                ***
6 Page center (4/4)                 23.1875       22.750             80                      ***                ***
6 Page center (5/4)                 23.1875       22.750             80                      ***                ***
6 Page center (5/5)                 23.1875       22.750             80                      ***                ***
   Press stops, each                23.1875       22.750             80                      ***                ***
   Plate changes, per plate         23.1875       22.750             80                      ***                ***

2 Page body (1/1)                   33.5000       22.750             80                      ***                ***
2 Page body (2/2)                   33.5000       22.750             80                      ***                ***
2 Page body (4/4)                   33.5000       22.750             80                      ***                ***
2 Page body (5/5)                   33.5000       22.750             80                      ***                ***
2 Page body (6/6)                   33.5000       22.750             80                      ***                ***

2 Page body (1/1)                   33.5000       22.750             60                      ***                ***
2 Page body (2/2)                   33.5000       22.750             60                      ***                ***
2 Page body (4/4)                   33.5000       22.750             60                      ***                ***
2 Page body (5/5)                   33.5000       22.750             60                      ***                ***
2 Page body (6/6)                   33.5000       22.750             60                      ***                ***

4 Page body (1/1)                   33.5000       22.750             60                      ***                ***
4 Page body (2/2)                   33.5000       22.750             60                      ***                ***
4 Page body (4/4)                   33.5000       22.750             60                      ***                ***
4 Page body (5/5)                   33.5000       22.750             60                      ***                ***

4 Page body (1/1)                   33.5000       22.750             40                      ***                ***
4 Page body (2/2)                   33.5000       22.750             40                      ***                ***
4 Page body (4/4)                   33.5000       22.750             40                      ***                ***
4 Page body (5/5)                   33.5000       22.750             40                      ***                ***

4 Page gatefold (1/1)               30.5000       22.750             80                      ***                ***
4 Page gatefold (2/2)               30.5000       22.750             80                      ***                ***
4 Page gatefold (4/4)               30.5000       22.750             80                      ***                ***
4 Page gatefold (5/5)               30.5000       22.750             80                      ***                ***
   Press stops, each                30.5000       22.750             80                      ***                ***
   Plate changes, per plate         30.5000       22.750             80                      ***                ***

6 Page gatefold (4/4+4/4)           19.1250       22.750             80                      ***                ***
   Press stops, each, per web       19.1250       22.750             80                      ***                ***
   Plate changes, per plate         19.1250       22.750             80                      ***                ***

8 Page body (1/1)                   33.5000       22.750             60                      ***                ***
8 Page body (2/2)                   33.5000       22.750             60                      ***                ***
8 Page body (4/4)                   33.5000       22.750             60                      ***                ***
8 Page body (5/5)                   33.5000       22.750             60                      ***                ***
8 Page body (8/5)                   33.5000       22.750             60                      ***                ***
----------------------------------------------------------------------------------------------------------------------
</TABLE>

Page 12                 Quad/Graphics Inc.                 Updated March 1, 2000
                                              00803 / 00803-00 PriceList.xls/ljb
<PAGE>

                               PLAYBOY ENTERPRISES
                               PAPER REQUIREMENTS

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------
   8 1/8" x 10 7/8" Book size         Roll         Cyl.            Basis                                   Rate
       paper requirements            width         size           weight            Makeready             per / M
======================================================================================================================
<S>                                 <C>           <C>               <C>                     <C>                <C>
8 Page body (1/1+1/1)               33.5000       22.750            60                      ***                ***
8 Page body (2/2+2/2)               33.5000       22.750            60                      ***                ***
8 Page body (4/4+1/1)               33.5000       22.750            60                      ***                ***
8 Page body (4/4+2/2)               33.5000       22.750            60                      ***                ***
8 Page body (4/4+4/4)               33.5000       22.750            60                      ***                ***
8 Page body (5/5+4/4)               33.5000       22.750            60                      ***                ***
8 Page body (5/5+5/5)               33.5000       22.750            60                      ***                ***

8 Page gatefold (4/4)               31.7500       22.750            60                      ***                ***
8 Page gatefold (5/5)               31.7500       22.750            60                      ***                ***

   Press stops, each                31.7500       22.750            60                      ***                ***
   Plate changes, per plate         31.7500       22.750            60                      ***                ***
   Press stops, per web, each       33.5000       22.750            80                      ***                ***
   Press stops, per web, each       33.5000       22.750            60                      ***                ***
   Plate changes, per plate         33.5000       22.750            80                      ***                ***
   Plate changes, per plate         33.5000       22.750            60                      ***                ***
---------------------------------- ----------- ------------- ------------------ ------------------- ------------------
</TABLE>

Page 13                 Quad/Graphics Inc.                 Updated March 1, 2000
                                              00803 / 00803-00 PriceList.xls/ljb
<PAGE>

                               PLAYBOY ENTERPRISES
                               PAPER REQUIREMENTS

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------
      8 1/8" x 10 7/8" Book size           Roll         Cyl.            Basis                                      Rate
          paper requirements              width         size            weight              Makeready             per / M
============================================================================================================================
<S>                                       <C>          <C>                <C>                    <C>                 <C>
12 Page body (4/4)                        66.875       33.500             40                     ***                 ***
12 Page body (5/5)                        66.875       33.500             40                     ***                 ***
16 Page body (4/4)                        89.125       33.500             40                     ***                 ***
16 Page body (5/5)                        89.125       33.500             40                     ***                 ***

20 Page body (4/4)                        55.750       33.500             40                     ***                 ***
20 Page body (5/5)                        55.750       33.500             40                     ***                 ***
24 Page body (4/4)                        66.875       33.500             40                     ***                 ***
24 Page body (5/5)                        66.875       33.500             40                     ***                 ***
28 Page body (4/4)                        78.000       33.500             40                     ***                 ***
28 Page body (5/5)                        78.000       33.500             40                     ***                 ***
32 Page body (4/4)                        89.125       33.500             40                     ***                 ***
32 Page body (5/5)                        89.125       33.500             40                     ***                 ***

36 Page body (4/4)                        66.875       50.250             40                     ***                 ***
36 Page body (5/5)                        66.875       50.250             40                     ***                 ***

40 Page body (4/4)                        55.750       33.500             40                     ***                 ***
40 Page body (5/5)                        55.750       33.500             40                     ***                 ***

48 Page body (4/4)                        89.125       50.250             40                     ***                 ***
48 Page body (5/5)                        89.125       50.250             40                     ***                 ***
48 Page body (4/4)                        66.875       33.500             40                     ***                 ***
48 Page body (5/5)                        66.875       33.500             40                     ***                 ***

56 Page body (4/4)                        78.000       33.500             40                     ***                 ***
56 Page body (5/5)                        78.000       33.500             40                     ***                 ***

60 Page body (4/4)                        55.750       50.250             40                     ***                 ***
60 Page body (5/5)                        55.750       50.250             40                     ***                 ***

64 Page body (4/4)                        89.125       33.500             40                     ***                 ***
64 Page body (5/5)                        89.125       33.500             40                     ***                 ***

72 Page body (4/4)                        66.875       50.250             40                     ***                 ***
72 Page body (5/5)                        66.875       50.250             40                     ***                 ***
84 Page body (4/4)                        78.000       50.250             40                     ***                 ***
84 Page body (5/5)                        78.000       50.250             40                     ***                 ***
96 Page body (4/4)                        89.125       50.250             40                     ***                 ***
96 Page body (5/5)                        89.125       50.250             40                     ***                 ***

    Cylinder changes, per cylinder        55.750       33.500             40                     ***                 ***
    Cylinder changes, per cylinder        66.875       33.500             40                     ***                 ***
    Cylinder changes, per cylinder        78.000       33.500             40                     ***                 ***
    Cylinder changes, per cylinder        89.125       33.500             40                     ***                 ***
    Cylinder changes, per cylinder        55.750       50.250             40                     ***                 ***
    Cylinder changes, per cylinder        66.875       50.250             40                     ***                 ***
    Cylinder changes, per cylinder        78.000       50.250             40                     ***                 ***
    Cylinder changes, per cylinder        89.125       50.250             40                     ***                 ***
----------------------------------------------------------------------------------------------------------------------------
</TABLE>

Page 14                 Quad/Graphics Inc.                 Updated March 1, 2000
                                              00803 / 00803-00 PriceList.xls/ljb
<PAGE>

                               PLAYBOY ENTERPRISES
                               PAPER REQUIREMENTS

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------
     8 1/8" x 10 7/8" Book size           Roll         Cyl.            Basis                                       Rate
         paper requirements              width         size            weight               Makeready            per / M
----------------------------------------------------------------------------------------------------------------------------
<S>                                      <C>          <C>                <C>                    <C>                 <C>
12 Page body (4/4)                       66.875       33.500             45                     ***                 ***
12 Page body (5/5)                       66.875       33.500             45                     ***                 ***
16 Page body (4/4)                       89.125       33.500             45                     ***                 ***
16 Page body (5/5)                       89.125       33.500             45                     ***                 ***

20 Page body (4/4)                       55.750       33.500             45                     ***                 ***
20 Page body (5/5)                       55.750       33.500             45                     ***                 ***
24 Page body (4/4)                       66.875       33.500             45                     ***                 ***
24 Page body (5/5)                       66.875       33.500             45                     ***                 ***
28 Page body (4/4)                       78.000       33.500             45                     ***                 ***
28 Page body (5/5)                       78.000       33.500             45                     ***                 ***
32 Page body (4/4)                       89.125       33.500             45                     ***                 ***
32 Page body (5/5)                       89.125       33.500             45                     ***                 ***

36 Page body (4/4)                       66.875       50.250             45                     ***                 ***
36 Page body (5/5)                       66.875       50.250             45                     ***                 ***

40 Page body (4/4)                       55.750       33.500             45                     ***                 ***
40 Page body (5/5)                       55.750       33.500             45                     ***                 ***

48 Page Body (4/4)                       89.125       50.250             45                     ***                 ***
48 Page body (5/5)                       89.125       50.250             45                     ***                 ***
48 Page body (4/4)                       66.875       33.500             45                     ***                 ***
48 Page body (5/5)                       66.875       33.500             45                     ***                 ***

56 Page body (4/4)                       78.000       33.500             45                     ***                 ***
56 Page body (5/5)                       78.000       33.500             45                     ***                 ***

60 Page body (4/4)                       55.750       50.250             45                     ***                 ***
60 Page body (5/5)                       55.750       50.250             45                     ***                 ***

64 Page body (4/4)                       89.125       33.500             45                     ***                 ***
64 Page body (5/5)                       89.125       33.500             45                     ***                 ***

72 Page body (4/4)                       66.875       50.250             45                     ***                 ***
72 Page body (5/5)                       66.875       50.250             45                     ***                 ***
84 Page body (4/4)                       78.000       50.250             45                     ***                 ***
84 Page body (5/5)                       78.000       50.250             45                     ***                 ***
96 Page body (4/4)                       89.125       50.250             45                     ***                 ***
96 Page body (5/5)                       89.125       50.250             45                     ***                 ***

    Cylinder changes, per cylinder       55.750       33.500             45                     ***                 ***
    Cylinder changes, per cylinder       66.875       33.500             45                     ***                 ***
    Cylinder changes, per cylinder       78.000       33.500             45                     ***                 ***
    Cylinder changes, per cylinder       89.125       33.500             45                     ***                 ***
    Cylinder changes, per cylinder       55.750       50.250             45                     ***                 ***
    Cylinder changes, per cylinder       66.875       50.250             45                     ***                 ***
    Cylinder changes, per cylinder       78.000       50.250             45                     ***                 ***
    Cylinder changes, per cylinder       89.125       50.250             45                     ***                 ***
----------------------------------------------------------------------------------------------------------------------------
</TABLE>

Page 15                 Quad/Graphics Inc.                 Updated March 1, 2000
                                              00803 / 00803-00 PriceList.xls/ljb
<PAGE>

                               PLAYBOY ENTERPRISES
                               PAPER REQUIREMENTS

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------
      8 1/8" x 10 7/8" Book size           Roll         Cyl.            Basis                                       Rate
          paper requirements              width         size            weight               Makeready            per / M
----------------------------------------------------------------------------------------------------------------------------
<S>                                       <C>          <C>                <C>                    <C>                 <C>
12 Page body (4/4)                        66.875       33.500             50                     ***                 ***
12 Page body (5/5)                        66.875       33.500             50                     ***                 ***
16 Page body (4/4)                        89.125       33.500             50                     ***                 ***
16 Page body (5/5)                        89.125       33.500             50                     ***                 ***

20 Page body (4/4)                        55.750       33.500             50                     ***                 ***
20 Page body (5/5)                        55.750       33.500             50                     ***                 ***
24 Page body (4/4)                        66.875       33.500             50                     ***                 ***
24 Page body (5/5)                        66.875       33.500             50                     ***                 ***
28 Page body (4/4)                        78.000       33.500             50                     ***                 ***
28 Page body (5/5)                        78.000       33.500             50                     ***                 ***
32 Page body (4/4)                        89.125       33.500             50                     ***                 ***
32 Page body (5/5)                        89.125       33.500             50                     ***                 ***

36 Page body (4/4)                        66.875       50.250             50                     ***                 ***
36 Page body (5/5)                        66.875       50.250             50                     ***                 ***

40 Page body (4/4)                        55.750       33.500             50                     ***                 ***
40 Page body (5/5)                        55.750       33.500             50                     ***                 ***

48 Page Body (4/4)                        89.125       50.250             50                     ***                 ***
48 Page body (5/5)                        89.125       50.250             50                     ***                 ***
48 Page body (4/4)                        66.875       33.500             50                     ***                 ***
48 Page body (5/5)                        66.875       33.500             50                     ***                 ***

56 Page body (4/4)                        78.000       33.500             50                     ***                 ***
56 Page body (5/5)                        78.000       33.500             50                     ***                 ***

60 Page body (4/4)                        55.750       50.250             50                     ***                 ***
60 Page body (5/5)                        55.750       50.250             50                     ***                 ***

64 Page body (4/4)                        89.125       33.500             50                     ***                 ***
64 Page body (5/5)                        89.125       33.500             50                     ***                 ***

72 Page body (4/4)                        66.875       50.250             50                     ***                 ***
72 Page body (5/5)                        66.875       50.250             50                     ***                 ***
84 Page body (4/4)                        78.000       50.250             50                     ***                 ***
84 Page body (5/5)                        78.000       50.250             50                     ***                 ***
96 Page body (4/4)                        89.125       50.250             50                     ***                 ***
96 Page body (5/5)                        89.125       50.250             50                     ***                 ***

    Cylinder changes, per cylinder        55.750       33.500             50                     ***                 ***
    Cylinder changes, per cylinder        66.875       33.500             50                     ***                 ***
    Cylinder changes, per cylinder        78.000       33.500             50                     ***                 ***
    Cylinder changes, per cylinder        89.125       33.500             50                     ***                 ***
    Cylinder changes, per cylinder        55.750       50.250             50                     ***                 ***
    Cylinder changes, per cylinder        66.875       50.250             50                     ***                 ***
    Cylinder changes, per cylinder        78.000       50.250             50                     ***                 ***
    Cylinder changes, per cylinder        89.125       50.250             50                     ***                 ***
----------------------------------------------------------------------------------------------------------------------------
</TABLE>

Page 16                 Quad/Graphics Inc.                 Updated March 1, 2000
                                              00803 / 00803-00 PriceList.xls/ljb
<PAGE>

                               PLAYBOY ENTERPRISES
                               PAPER REQUIREMENTS

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------
     8 1/8" x 10 7/8" Book size          Roll         Cyl.            Basis                                      Rate
         paper requirements             width         size            weight              Makeready            per / M
----------------------------------------------------------------------------------------------------------------------------
<S>                                     <C>          <C>                <C>                    <C>                 <C>
12 Page body (4/4)                      66.875       33.500             60                     ***                 ***
12 Page body (5/5)                      66.875       33.500             60                     ***                 ***
16 Page body (4/4)                      89.125       33.500             60                     ***                 ***
16 Page body (5/5)                      89.125       33.500             60                     ***                 ***

20 Page body (4/4)                      55.750       33.500             60                     ***                 ***
20 Page body (5/5)                      55.750       33.500             60                     ***                 ***
24 Page body (4/4)                      66.875       33.500             60                     ***                 ***
24 Page body (5/5)                      66.875       33.500             60                     ***                 ***
28 Page body (4/4)                      78.000       33.500             60                     ***                 ***
28 Page body (5/5)                      78.000       33.500             60                     ***                 ***
32 Page body (4/4)                      89.125       33.500             60                     ***                 ***
32 Page body (5/5)                      89.125       33.500             60                     ***                 ***

36 Page body (4/4)                      66.875       50.250             60                     ***                 ***
36 Page body (5/5)                      66.875       50.250             60                     ***                 ***

40 Page body (4/4)                      55.750       33.500             60                     ***                 ***
40 Page body (5/5)                      55.750       33.500             60                     ***                 ***

48 Page body (4/4)                      89.125       50.250             60                     ***                 ***
48 Page body (5/5)                      89.125       50.250             60                     ***                 ***
48 Page body (4/4)                      66.875       33.500             60                     ***                 ***
48 Page body (5/5)                      66.875       33.500             60                     ***                 ***

56 Page body (4/4)                      78.000       33.500             60                     ***                 ***
56 Page body (5/5)                      78.000       33.500             60                     ***                 ***

60 Page body (4/4)                      55.750       50.250             60                     ***                 ***
60 Page body (5/5)                      55.750       50.250             60                     ***                 ***

64 Page body (4/4)                      89.125       33.500             60                     ***                 ***
64 Page body (5/5)                      89.125       33.500             60                     ***                 ***

72 Page body (4/4)                      66.875       50.250             60                     ***                 ***
72 Page body (5/5)                      66.875       50.250             60                     ***                 ***
84 Page body (4/4)                      78.000       50.250             60                     ***                 ***
84 Page body (5/5)                      78.000       50.250             60                     ***                 ***
96 Page body (4/4)                      89.125       50.250             60                     ***                 ***
96 Page body (5/5)                      89.125       50.250             60                     ***                 ***

   Cylinder changes, per cylinder       55.750       33.500             60                     ***                 ***
   Cylinder changes, per cylinder       66.875       33.500             60                     ***                 ***
   Cylinder changes, per cylinder       78.000       33.500             60                     ***                 ***
   Cylinder changes, per cylinder       89.125       33.500             60                     ***                 ***
   Cylinder changes, per cylinder       55.750       50.250             60                     ***                 ***
   Cylinder changes, per cylinder       66.875       50.250             60                     ***                 ***
   Cylinder changes, per cylinder       78.000       50.250             60                     ***                 ***
   Cylinder changes, per cylinder       89.125       50.250             60                     ***                 ***
----------------------------------------------------------------------------------------------------------------------------
</TABLE>

Page 17                 Quad/Graphics Inc.                 Updated March 1, 2000
                                              00803 / 00803-00 PriceList.xls/ljbEXHIBIT 10.1

                           AMENDMENT NUMBER TWO TO THE
                      AGREEMENT AND PLAN OF REORGANIZATION

      This Amendment Number Two (this "Amendment") to the Agreement and Plan of
Reorganization dated as of June 30, 1997 (the "Original Agreement") as amended
February 28, 1999 (the "Agreement") among Triangle Pharmaceuticals, Inc.
("Triangle"), Project Z Corporation ("Project Z") and Avid Corporation ("Avid"),
is made as of this 24th day of March, 2000, by and among Triangle, Avid and the
Securityholder Agent (as such term is defined in the Original Agreement) (the
"Securityholder Agent"), on behalf of and as attorney-in-fact for all of the
stockholders, optionholders and warrantholders of Avid immediately prior to the
merger of Project Z with and into Avid (the "Former Avid Stockholders").
Capitalized terms used herein which are not defined herein shall have the
definitions ascribed to them in the Agreement.

                                    RECITALS

      A. Triangle, Project Z and Avid entered into the Original Agreement,
pursuant to which Project Z merged with and into Avid on August 28, 1997, and
Avid became a wholly-owned subsidiary of Triangle.

      B. Triangle, Avid (including its capacity as successor to Project Z) and
the Securityholder Agent, entered into Amendment Number One to the Agreement and
Plan of Reorganization, dated February 28, 1999, extending to thirty (30) months
the eighteen (18) month period set forth in Section 1.6(b)(ii)(B) of the
Original Agreement.

      C. Triangle, Avid and the Securityholder Agent, on behalf of and as
attorney-in-fact for the Former Avid Stockholders, desire (i) to extend the
thirty (30) month period set forth in Section 1.6(b)(ii)(B) of the Agreement
after which, if Triangle has not Initiated a Definitive Clinical Trial with the
Lead Compound or elected in writing to continue the development of the Lead
Compound, the Securityholder Agent will have the right to exercise the Lead
Compound Option, and (ii) to amend certain other provisions of the Agreement as
set forth herein.

      NOW, THEREFORE, in consideration of the foregoing and the promises and
covenants contained herein, and for other good and valuable consideration the
receipt and sufficiency of which is hereby acknowledged, the parties hereto
agree as follows:

      1. AMENDMENTS TO AGREEMENT.

            1.1 Section 1.6(b). The first paragraph of Section 1.6(b) is hereby
amended and restated in its entirety as follows:

                  "(b) Stock Consideration. The "Stock Consideration" shall be
      the number of shares of Parent Common Stock equal to the sum of (v) the
      First Payment (as defined in Section 1.6(b)(i) below) plus (x) the Second
      Payment (as defined in Amendment Number One to this Agreement) plus (y)
      the Third Payment (as defined in Amendment Number Two to this Agreement)
      plus (z) the Milestone Payments (as defined in Section 1.6(b)(ii) below)."

<PAGE>

            1.2 Section 1.6(b)(ii)(A). Section 1.6(b)(ii)(A) of the Agreement is
hereby amended and restated in its entirety as follows:

                  "(A) In the event that Parent, in its sole discretion, (x)
      Initiates (as defined in Section 1.6(b)(iii) below) a Definitive Clinical
      Trial (as defined in Section 1.6(b)(iii) below) with the Lead Compound (as
      defined in Section 1.6(b)(iii) below), or (y) notifies the Securityholder
      Agent (as defined in Section 7.2(g) below) in a writing that specifically
      references this Section 1.6(b)(ii)(A) of its election to continue the
      development of the Lead Compound even if Parent has not Initiated a
      Definitive Clinical Trial with the Lead Compound, Parent shall within
      seventy-five (75) days thereafter make available to the Exchange Agent (as
      defined in Section 1.10(a) below) for distribution pursuant to Section
      1.10, 1,150,000 shares of Parent Common Stock."

            1.3 Section 1.6(b)(ii)(B). Section 1.6(b)(ii)(B) of the Agreement is
hereby amended and restated in its entirety as follows:

                  "(B) If neither of the conditions described in Section
      1.6(b)(ii)(A) above is satisfied on or prior to forty-eight (48) months
      after the Closing Date and the Securityholder Agent elects not to exercise
      the Lead Compound Option (as defined in Section 5.17 below) within the
      thirty (30) day period set forth in Section 5.17 below, Parent shall
      within seventy-five (75) days thereafter make available to the Exchange
      Agent for distribution pursuant to Section 1.10, 100,000 shares of Parent
      Common Stock."

            1.4 Section 1.8(c)(i)(A). Section 1.8(c)(i)(A) of the Agreement is
hereby amended and restated in its entirety as follows:

                  "(A) At the Effective Time, each Assumed Option shall be, in
      connection with the Merger, assumed by Parent. Each Assumed Option so
      assumed by Parent under this Agreement shall be amended prior to the
      Effective Time to provide that from and after the Effective Time such
      Assumed Option (1) may be exercised through a cashless exercise procedure
      (to the extent that the Assumed Option does not already permit the holder
      thereof to do so) and may be exercised notwithstanding the failure of the
      holder thereof to enter or remain in the employ of Parent or the Company
      following the Merger, (2) may not be exercised at any time prior to the
      earlier of (a) forty-eight (48) months after the Closing Date and (b) the
      date, if any, of the written notice from the Securityholder Agent
      addressed to the last known domicile address of the holder of such Assumed
      Option informing such holder that one of the conditions described in
      Section 1.6(b)(ii)(A) above has been satisfied (the earlier of such dates
      being the "Option Exercise Date"), (3) may not be exercised at any time
      after 5:00 p.m. eastern standard time on the date that is forty-five (45)
      days after the Option Exercise Date, and (4) represents only the right to
      receive upon exercise the portion of the Merger Consideration issuable to
      such holder pursuant to Section 1.7 above. Except as so amended, each
      Assumed Option shall continue to have,

                                      -2-
<PAGE>

      and be subject to, the same terms and conditions set forth in the Option
      Plan under which it was issued and/or as provided in the respective option
      agreements governing such Assumed Option immediately prior to the
      Effective Time. Parent shall reserve from the Cash Distribution the
      amount, if any, that the holders of the Assumed Options would have
      received had all of the Assumed Options and all of the Assumed Warrants
      been exercised in full immediately prior to the Effective Time (assuming
      that the exercise price was paid in cash). The portion of the Cash
      Distribution reserved by Parent for issuance upon exercise of the Assumed
      Options is referred to as the "Assumed Option Amount." "

            1.5 Section 1.8(d)(i)(A). Section 1.8(d)(i)(A) of the Agreement is
hereby amended and restated in its entirety as follows:

                  "(A) At the Effective Time, each Assumed Warrant shall be, in
      connection with the Merger, assumed by Parent. Each Assumed Warrant so
      assumed by Parent under this Agreement shall be amended prior to the
      Effective Time to provide that from and after the Effective Time such
      Warrant (1) may be exercised through a cashless exercise procedure (to the
      extent that the Assumed Warrant does not already permit the holder thereof
      to do so), (2) may not be exercised at any time prior to the earlier of
      (a) forty-eight (48) months after the Closing Date and (b) the date, if
      any, of the written notice from the Securityholder Agent addressed to the
      last known domicile address of the holder of such Assumed Warrant
      informing such holder that one of the conditions described in Section
      1.6(b)(ii)(A) above has been satisfied (the earlier of such dates being
      the "Warrant Exercise Date"), (3) may not be exercised at any time after
      5:00 p.m. eastern standard time on the date that is forty-five (45) days
      after the Warrant Exercise Date, and (4) represents only the right to
      receive upon exercise the portion of the Merger Consideration issuable to
      such holder pursuant to Section 1.7 above. Except as so amended, each
      Assumed Warrant shall continue to have, and be subject to, the same terms
      and conditions as provided in the respective Assumed Warrant agreement
      immediately prior to the Effective Time. Parent shall reserve from the
      Cash Distribution the amount, if any, that the holders of the Assumed
      Warrants would have received had all of the Assumed Warrants and all of
      the Assumed Options been exercised in full immediately prior to the
      Effective Time (assuming that the exercise price was paid in cash). The
      portion of the Cash Distribution reserved by Parent for issuance upon
      exercise of the Assumed Warrants is referred to as the "Assumed Warrant
      Amount." "

            1.6 Section 5.17. The first paragraph of Section 5.17 of the
Agreement is hereby amended and restated in its entirety as follows:

                  "5.17 Option to Obtain Rights to Lead Compound. In the event
      that neither of the conditions described in Section 1.6(b)(ii)(A) is
      satisfied on or prior to the date that is forty-eight (48) months after
      the Closing Date, the Securityholder Agent shall have the option ("Lead
      Compound Option"), subject to the conditions and on the terms described
      below, to acquire on behalf of each holder of any Company Capital Stock
      outstanding immediately prior to the

                                      -3-
<PAGE>

      Effective Time and each holder of an Assumed Option or an Assumed Warrant
      that is timely and properly exercised after the Closing (together, the
      "Former Company Stockholders") pursuant to the Technology Transfer
      Agreement in the form attached hereto as Exhibit 5.17 (the "Technology
      Transfer Agreement"): (i) all of Parent's and the Company's rights in the
      Lead Compound, in all improvements solely and exclusively of, and
      enhancements solely and exclusively to, the Lead Compound (the "Lead
      Compound Improvements") and in all documents and data created solely and
      exclusively in connection with the development of the Lead Compound (the
      "Lead Compound Information") (and in both the case of Lead Compound
      Improvements and Lead Compound Information, not in any way related to any
      of the other compounds, technologies or assets of Parent or the Company),
      and (ii) one copy of all documents that contain any data regarding
      clinical trials of the Lead Compound in combination with other drugs or
      drug candidates, redacted to exclude therefrom any other information
      contained therein (together with the Lead Compound Information, the "Lead
      Compound Documents"). In the event the Securityholder Agent delivers
      written notice to Parent of his or her election to exercise the Lead
      Compound Option within thirty (30) calendar days after the date of the
      Parent Notice (as defined in Section 5.17(a) below), Parent shall
      thereafter, subject to and in compliance with good medical and clinical
      trial practices, promptly and permanently cease, and shall cause the
      Company to cease, all development and use of the Lead Compound, the Lead
      Compound Improvements and the Lead Compound Documents (collectively, the
      "Lead Compound Rights")."

            1.7 Section 5.1(d). Section 5.1(d) is hereby amended and restated in
its entirety as follows:

                  (i) If one of the conditions described in Section
      1.6(b)(ii)(A) above is satisfied, Parent shall use its reasonable efforts
      to file a Registration Statement on Form S-3 with the SEC covering the
      resale of the shares of Parent Common Stock issued in the Merger. Such
      registration, including Parent's obligation to file such Registration
      Statement on Form S-3, shall be subject to the terms and conditions set
      forth in the Declaration of Registration Rights attached hereto as Exhibit
      5.1(d).

                  (ii) Parent shall file a Registration Statement on Form S-3
      with the SEC covering the resale of the shares issued in connection with
      the Third Payment (as defined in Amendment Number Two to this Agreement)
      on or before June 1, 2000. Such registration, including Parent's
      obligation to file such Registration Statement on Form S-3, shall be
      subject to the terms and conditions set forth in the Declaration of
      Registration rights attached hereto as Exhibit 5.1(d).

      2. THIRD PAYMENT.

            Triangle shall, on or before April 15, 2000, deliver 400,000 shares
of Triangle Common Stock (the "Third Payment") to the Escrow Agent of which that
number of shares to be reserved for the benefit of the holders of Assumed
Options and the holders of Assumed Warrants

                                      -4-
<PAGE>

(the "Reserved Payment") shall be held by the Escrow Agent, and the remainder
shall be transferred promptly to the Exchange Agent for distribution to each of
the Former Avid Stockholders in proportion to the aggregate number of shares of
Parent Common Stock which such holder would otherwise be entitled to receive
from the aggregate of the First Payment, the Second Payment and the Third
Payment pursuant to Section 1.7 of the Agreement by virtue of such holder's
ownership of outstanding shares of Company Capital Stock immediately prior to
the Effective Time, and assuming for the purposes of such allocation that the
holders of all Assumed Options and the holders of all Assumed Warrants were the
holders of the number of shares of the Company Common Stock that would have been
issued had all of the Assumed Options and all of the Assumed Warrants been
exercised in full immediately prior to the Effective Time (assuming that the
exercise price was paid in cash). No later than seventy-five (75) days after
delivery to the Escrow Agent of an Agent Certificate, in form acceptable to
Triangle, pursuant to Section 1.7(d)(i) of the Agreement with respect to the
distribution of the Third Payment, the Third Payment less the Reserved Payment
shall be distributed from the Exchange Agent to the Former Avid Stockholders as
provided in such Agent Certificate. Triangle, the Escrow Agent, and the Exchange
Agent shall be entitled to rely without investigation on the accuracy of the
information set forth in such Agent Certificate.

      3. SECURITYHOLDER AGENT'S EXPENSES.

      Triangle shall pay the reasonable fees and expenses of legal counsel to
the Securityholder Agent incurred in connection with the drafting and review of
this Amendment and the transactions contemplated hereby and in communicating
with Former Avid Stockholders in connection therewith, subject to verification
of fees by Triangle.

      4. EFFECT OF AMENDMENT.

            Except as amended and set forth above, the Agreement shall continue
in full force and effect. In the event of any conflict between the terms of the
Agreement and the terms of this Amendment, the terms of this Amendment shall
govern and control. This Amendment shall become effective when executed and
delivered by Triangle, Avid and a majority of the individuals constituting the
Securityholder Agent.

      5. FURTHER ASSURANCES.

      The parties agree to execute such further instruments, agreement and
documents and to take such further action as may reasonably be necessary to
carry out the intent of this Amendment.

      6. COUNTERPARTS.

            This Amendment may be executed in any number of counterparts, each
which will be deemed an original, and all of which together shall constitute one
instrument.

      7. SEVERABILITY.

            If one or more provisions of this Amendment are held to be
unenforceable under applicable law, such provision shall be excluded from this
Amendment and the balance of the

                                      -5-
<PAGE>

Amendment shall be interpreted as if such provision were so excluded and shall
be enforceable in accordance with its terms.

      8. GOVERNING LAW.

            This Amendment shall be governed by and construed under the laws of
the State of Delaware regardless of the laws that might otherwise govern under
applicable principles of conflicts of laws thereof.

                [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

                                      -6-
<PAGE>

      This Amendment is hereby executed as of the date first above written.

TRIANGLE:                           TRIANGLE PHARMACEUTICALS, INC., a
                                    Delaware corporation

                                    By:    /s/ Chris A. Rallis
                                           -------------------------------------
                                    Name:  Chris A. Rallis
                                    Title: President and Chief Operating Officer

AVID:                               AVID CORPORATION, a Pennsylvania
                                    corporation

                                    By:    /s/ Chris A. Rallis
                                           -------------------------------------
                                    Name:  Chris A. Rallis
                                    Title: President

SECURITYHOLDER AGENT:

                                    --------------------------------------------
                                              Forrest H. Anthony

                                          /s/ Alan G. Walton
                                    --------------------------------------------
                                              Alan G. Walton

                                          /s/ Marcia T. Bates
                                    --------------------------------------------
                                              Marcia T. Bates

                   [SIGNATURE PAGE TO AMENDMENT NUMBER TWO TO
                    THE AGREEMENT AND PLAN OF REORGANIZATION]

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