Document:

FIRST AMENDMENT dated as of June 14,1999 (this
                  "Amendment") to the Credit Agreement dated as of February 26,
                  1999, among PLAYBOY ENTERPRISES, INC. (formerly known as New
                  Playboy, Inc.), a Delaware corporation (the "Company"), PET
                  HOLDINGS, INC., a Delaware corporation and wholly owned
                  subsidiary of the Company ("PHI"), the Lenders (as defined in
                  Article I thereof), and CREDIT SUISSE FIRST BOSTON, a bank
                  organized under the laws of Switzerland, acting through its
                  New York Branch ("CSFB"), as administrative agent (in such
                  capacity, the "Administrative Agent"), as collateral agent
                  (in such capacity, the "Collateral Agent"), and as issuing
                  bank (in such capacity, the "Issuing Bank").

            A. The Company and PHI have requested that the Lenders enter into
this Amendment to amend certain provisions of the Credit Agreement. The Lenders
are willing to enter into this Amendment, subject to the terms and conditions of
this Amendment.

            B. Capitalized terms used and not otherwise defined herein shall
have the meanings assigned to them in the Credit Agreement.

            Accordingly, in consideration of the agreements, provisions and
consents herein contained, the parties hereto hereby agree as follows:

            SECTION 1. Amendment to Section 1.01 of the Credit Agreement.
Section 1.01 of the Credit Agreement is hereby amended by adding the following
new definitions in their proper alphabetical order:

            "'First Amendment Effective Date' shall mean the date on which each
condition to effectiveness set forth in Section 9 of the First Amendment dated
as of June 14, 1999 to this Agreement has been satisfied."

            "'Option' shall mean a call option the value of which is a function
of the value of the Philadelphia Semiconductor index and the relevant exercise
price."

            "'Options Transactions' shall mean the simultaneous purchase of
approximately 15,000 Options and sale of an equal number of Options, in each
case (a) with the same expiry date, (b) with an exercise price not in excess of
$35 for the initial transaction and not in excess of $40 in any subsequent
transactions, (c) with an exercise price not in excess of $5 less or greater
than that of the offsetting Options for the initial transaction and not in
excess of $10 less or greater than that of the offsetting Options in any
subsequent transactions and (d) in the case of the initial transaction,
purchased or sold at a time when the Philadelphia Semiconductor Index is valued
at not less than $350."

            "'Unhedged Exposure' shall mean that at any time prior to the expiry
of any Options, the Company fails to hold a like number of offsetting Options
meeting all the requirements set forth in the definition of 'Options
Transactions.'"

<PAGE>
                                                                               2

            SECTION 2. Amendment to Section 5.10 of the Credit Agreement.
Section 5.10 of the Credit Agreement is hereby amended by deleting "90th"
therefrom and replacing it with "135th".

            SECTION 3. Amendment to Article V of the Credit Agreement. Article V
of the Credit Agreement is hereby amended by inserting at the end thereof the
following:

            "SECTION 5.12. Payment of Fees and Expenses. Within 30 days after
the First Amendment Effective Date pay to the Administrative Agent all fees and
other amounts due and payable in connection with the First Amendment dated as of
June 14, 1999 to this Agreement, including, to the extent invoiced,
reimbursement or payment of all out-of-pocket expenses."

            SECTION 4. Amendment to Section 6.01 of the Credit Agreement.
Section 6.01 of the Credit Agreement is hereby amended by inserting immediately
following the phrase "under Section 5.10" in clause (f) thereof the following:

            ", incurred as part of the Options Transactions (to the extent such
transactions constitute Hedging Agreements)".

            SECTION 5. Amendment to Section 6.02 of the Credit Agreement.
Section 6.02 of the Credit Agreement is hereby amended by deleting the word
"and" from clause (s) thereof, and by deleting the period at the end of clause
(t) thereof and replacing it with the following:

            "; and (u) the Lien on the Options granted to Bear, Stearns & Co.
Inc. (or one of its Affiliates) pursuant to the OTC Agreement as part of the
Options Transactions."

            SECTION 6. Amendment to Section 6.04 of the Credit Agreement.
Section 6.04 of the Credit Agreement is hereby amended by deleting the word
"and" from clause (p) thereof, and by deleting the period at the end of clause
(q) thereof and replacing it with the following:

            "and (r) during the period of 90 days immediately following the
First Amendment Effective Date, investments by the Company made as part of the
Options Transactions in an aggregate amount not to exceed $20,000,000."

            SECTION 7. Amendment to Article VI of the Credit Agreement. Article
VI of the Credit Agreement is hereby amended by inserting at the end thereof the
following:

            "SECTION 6.18. Unhedged Exposure. Permit at any time Unhedged
Exposure in connection with the Options Transactions."

            SECTION 8. Representations and Warranties. Each of the Company and
PHI hereby represents and warrants to each Lender, on and as of the First
Amendment Effective Date, that:

<PAGE>
                                                                               3

            (a) This Amendment has been duly authorized, executed and delivered
by each of the Company and PHI, and each of this Amendment and the Credit
Agreement as amended by this Amendment constitutes a legal, valid and binding
obligation of each of the Company and PHI, enforceable in accordance with its
terms.

            (b) After giving effect to this Amendment, no Event of Default or
Default will have occurred and be continuing.

            SECTION 9. Conditions to Effectiveness. This Amendment shall become
effective when the following conditions are satisfied:

            (a) The Administrative Agent shall have received counterparts hereof
executed by the Company, PHI and the Required Lenders.

            (b) The Administrative Agent shall have received a certificate,
dated the First Amendment Effective Date and signed by a Financial Officer of
the Company, confirming that after giving effect to this Amendment (i) the
representations and warranties set forth in Article III of the Credit Agreement
are true and correct in all material respects, with the same effect as though
made on and as of the First Amendment Effective Date, except to the extent that
such representations and warranties expressly relate to an earlier date, and
(ii) no Default or Event of Default has occurred and is continuing.

            SECTION 10. Applicable Law. THIS AMENDMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

            SECTION 11. Counterparts. This Amendment may be executed in two or
more counterparts, each of which shall constitute an original but all of which
when taken together shall constitute but one contract.

            IN WITNESS WHEREOF, the parties hereto have caused this Amendment to
be duly executed by their respective authorized officers as of the day and year
first written above.

                                       PLAYBOY ENTERPRISES, INC.
                                       (formerly known as New Playboy, Inc.),

                                       by

                                          /s/ Robert D. Campbell
                                       -----------------------------------------
                                       Name: Robert D. Campbell
                                       Title: V.P., Treasurer

<PAGE>
                                                                              4

                                       PEI HOLDINGS, INC.,

                                       by

                                       /s/ Robert D. Campbell
                                       -----------------------------------------
                                       Name: Robert D. Campbell
                                       Title: Treasurer

                                       CREDIT SUISSE FIRST BOSTON,
                                       individually and as Administrative Agent,
                                       Collateral Agent and Issuing Bank,

                                       by

                                       -----------------------------------------
                                       Name:
                                       Title:

                                       by

                                       -----------------------------------------
                                       Name:
                                       Title:

                                       ING (U.S.) CAPITAL LLC, individually and
                                       as Syndication Agent,

                                       by

                                       -----------------------------------------
                                       Name:
                                       Title:

                                       LASALLE NATIONAL BANK,

                                       by

                                       -----------------------------------------
                                       Name:
                                       Title:

                                       BANK OF AMERICA NATIONAL
                                       TRUST AND SAVINGS ASSOCIATION,

                                       by

                                       -----------------------------------------
                                       Name:
                                       Title:SECOND AMENDMENT dated as of January 31, 2000 (this
                  "Amendment"), to the Credit Agreement dated as of February 26,
                  1999 (the "Credit Agreement"), among PLAYBOY ENTERPRISES,
                  INC., a Delaware corporation (the "Company"), PEI HOLDINGS,
                  INC., a Delaware corporation and wholly owned subsidiary of
                  the Company ("PHI"), the financial institutions from time to
                  time party thereto (the "Lenders") and CREDIT SUISSE FIRST
                  BOSTON, a bank organized under the laws of Switzerland, acting
                  through its New York branch, as administrative agent (in such
                  capacity, the "Administrative Agent"), as collateral agent and
                  as issuing bank.

            A. The parties hereto have entered into the Credit Agreement,
pursuant to which the Lenders have agreed to extend credit to the Borrower (as
defined in the Credit Agreement) on the terms and subject to the conditions set
forth therein.

            B. The Company and PHI have requested that the Lenders agree to
amend certain provisions of the Credit Agreement, and the Lenders are willing,
on the terms and subject to the conditions set forth below, to amend the Credit
Agreement as provided herein.

            C. Capitalized terms used and not otherwise defined herein shall
have the meanings assigned to them in the Credit Agreement.

            Accordingly, in consideration of the mutual agreements herein
contained and other good and valuable consideration, the sufficiency and receipt
of which are hereby acknowledged, the parties hereto hereby agree as follows:

            SECTION 1. Amendment of Credit Agreement. The Credit Agreement is
hereby amended as follows:

            (a) The Table of Contents of the Credit Agreement is hereby amended
(i) by replacing the words "Annual EBITDA" following "SECTION 6.13" with
"[deleted]" and (ii) by inserting at the end of the list of Exhibits to the
Credit Agreement the following:

            "EXHIBIT J Form of Subordination Agreement".

            (b) The table in the definition of "Applicable Percentage" in
Section 1.01 of the Credit Agreement is hereby deleted and replaced with the
following table:

                                                             Eurodollar    ABR
Consolidated Leverage Ratio                                    Spread     Spread
---------------------------                                    ------     ------

Category 1
----------
Greater than or equal to 5.00 to 1.00                           3.50%      2.50%

Category 2
----------
Less than 5.00 to 1.00 but greater than or equal to 4.00 to     3.25%      2.25%

<PAGE>

                                                             Eurodollar    ABR
Consolidated Leverage Ratio                                    Spread     Spread
---------------------------                                    ------     ------

1.00

Category 3
----------
Less than 4.00 to 1.00 but greater than or equal to 3.00 to     3.00%      2.00%
1.00

Category 4
----------
Less than 3.00 to 1.00                                          2.75%      1.75%

            (c) The definition of "Asset Sale" in Section 1.01 of the Credit
Agreement is amended by (i) inserting in clause (vi)(y), after the words "in the
business of the Borrower or the Restricted Subsidiaries within nine months", the
words "(or 36 months, in the case of a Catalog Operations Sale)" and (ii)
inserting in the final sentence thereof, after the words "the aggregate amount
of Net Cash Proceeds", the words "(other than Net Cash Proceeds resulting from a
Catalog Operations Sale)".

            (d) The definition of "Consolidated EBITDA" in Section 1.01 of the
Credit Agreement is amended by (i) deleting therefrom the phrase "(x) the
Playboy International Rights Acquisition Fee for such period," and (ii)
replacing clause (ii) of the last sentence thereof with the following:

            "(ii) following a Catalog Operations Sale, for any four-fiscal
            quarter period that includes a fiscal quarter ending on or prior to
            December 31, 2000, Consolidated EBITDA for such period shall be
            increased by the product of (x) $1,800,000 and (y) a fraction, the
            numerator of which is the number of days in fiscal year 2000
            included in such four-fiscal quarter period which occurred after the
            consummation of the Catalog Operations Sale and the denominator of
            which is three hundred sixty six and (iii) Consolidated EBITDA for
            any period shall be increased by the amount of restructuring costs
            incurred on or after December 1, 1999 in connection with workforce
            reductions to the extent such costs have actually been paid by the
            Company and the Restricted Subsidiaries in such period; provided,
            that any such increase, together with all other increases made in
            the same period or any other period pursuant to this clause (iii),
            shall not exceed $3,000,000 in the aggregate.

            (e) The definition of "Consolidated Fixed Charge Coverage Ratio" in
Section 1.01 of the Credit Agreement is hereby amended by (i) deleting the word
"Adjusted" in clause (i) thereof, (ii) replacing "and" with a comma at the end
of clause (vi) thereof, (iii) inserting, at the end of clause (vii) thereof
before the final parenthetical phrase in such definition, "and (viii) cash
investments in programming during such period", and (iv) changing "(vii)" to
"(viii)" in the final parenthetical phrase thereof.

            (f) The definition of "Playboy Online" is amended by deleting
"Playboy Online, Inc." and replacing such phrase with "Playboy.com, Inc."

            (g) The following definitions are added to Section 1.01 of the
Credit Agreement in their appropriate alphabetical positions:

      "Catalog Operations Sale" shall mean any sale, transfer or other
disposition of all or substantially all of the catalog sales operations
conducted by Critics' Choice Video, Inc. and the

<PAGE>
                                                                               3

assets and property used to conduct such operations (it being understood that
such assets and property include, but are not limited to, leasehold interests of
Playboy Enterprises International, Inc. and the Company used by Critics' Choice
Video, Inc.).

      "SAG Liens" shall mean Liens granted to the Screen Actors Guild by the
Borrower or any Subsidiary in specific items of Product to secure amounts
payable by the Borrower or such Subsidiary to members of the Screen Actors Guild
in respect of the production of such items of Product.

      "Second Amendment Effective Date" shall mean the date on which the
amendments provided for in Section 1 of the Second Amendment dated as of January
31, 2000, to this Agreement become effective.

      "Subordination Agreement" shall mean a subordination agreement
substantially in the form of Exhibit J hereto, together with such other changes
as the Collateral Agent may deem appropriate.

            (h) The following new paragraph (j) is inserted at the end of
Section 2.09 of the Credit Agreement:

            (j) The aggregate Revolving Credit Commitments shall be decreased
      (i) by $5,000,000 on the Second Amendment Effective Date and (ii) by an
      additional $5,000,000 upon the closing of any sale of Equity Interests of
      Playboy Online to a person other than the Company or a Subsidiary
      consisting of an underwritten primary initial public offering (other than
      a public offering pursuant to a registration statement on Form S-8) of the
      common stock of Playboy Online pursuant to an effective registration
      statement filed with the Securities and Exchange Commission in accordance
      with the Securities Act of 1933, as amended (whether alone or in
      connection with a secondary public offering).

            (i) Section 2.13(c) of the Credit Agreement is amended by (A)
deleting from clause (i) thereof the phrase "in an aggregate amount not greater
than $25,000,000", (B) deleting from clause (ii) thereof the phrase "minus the
aggregate Net Cash proceeds of Equity Issuances referred to in the preceding
clause (i)" and (C) inserting in clause (ii) thereof after the words "the
Company and Restricted Subsidiaries that" the phrase ", after subtracting any
such Net Cash Proceeds used to prepay Term Loans on the Second Amendment
Effective Date,".

            (j) Section 2.13(d) of the Credit Agreement is amended by deleting
the date "December 31, 1999" and inserting in its place "December 31, 2000".

            (k) Section 6.02(m) of the Credit Agreement is amended by inserting
the phrase "(including SAG Liens)" after the word "Liens" therein.

            (l) Section 6.04(e) of the Credit Agreement is amended to read as
follows:

<PAGE>
                                                                               4

            "(e) investments in and loans and advances to Playboy Online that
      are (A) made during the fiscal year ended December 31, 1999 and that do
      not exceed $6,500,000 in the aggregate or (B) made after December 31, 1999
      but prior to the initial public offering of Equity Interests of Playboy
      Online and that do not exceed $10,000,000 in the aggregate".

            (m) Section 6.04(j) of the Credit Agreement is amended to read as
follows:

            "(j) investments in and loans and advances to Restricted
      Subsidiaries to procure assets, properties or contract rights to be used
      in gaming operations, but only to the extent such investments, loans and
      advances are made with and do not in the aggregate exceed the cash
      proceeds received by the Borrower from a Catalog Operations Sale to
      persons other than the Company and the Subsidiaries after the Second
      Amendment Effective Date".

            (n) Clause (c) of Section 6.05 of the Credit Agreement is amended by
the insertion at the end thereof of the following proviso:

      "; provided, that a Catalog Operations Sale may be made for consideration
      consisting of cash or publicly-traded Equity Interests in other persons
      and shall not be subject to or included in the computation of such
      $10,000,000 limit".

            (o) The text of Section 6.13 of the Credit Agreement is hereby
replaced with "[deleted]".

            (p) The table appearing in Section 6.14 of the Credit Agreement is
hereby replaced with the following table and text:

                Date                                Ratio
                -----                               -----

                March 31, 2000                      5.95 to 1.00
                June 30, 2000                       5.95 to 1.00
                September 30, 2000                  5.95 to 1.00
                December 31, 2000                   5.95 to 1.00
                March 31, 2001                      5.95 to 1.00
                June 30, 2001                       5.75 to 1.00
                September 30, 2001                  5.50 to 1.00
                December 31, 2001                   4.50 to 1.00
                March 31, 2002                      4.00 to 1.00
                June 30, 2002                       3.50 to 1.00
                September 30, 2002 and thereafter   3.00 to 1.00

            Notwithstanding the definition of "Consolidated Adjusted EBITDA", in
determining the Consolidated Leverage Ratio, (i) Consolidated Adjusted EBITDA
for the period of three fiscal quarters ended December 31, 1999 shall be deemed
to total $21,000,000 for the purpose of calculating Consolidated Adjusted EBITDA
for the period of four fiscal quarters ended March 31, 2000, (ii) Consolidated
Adjusted EBITDA for the period of two fiscal quarters

<PAGE>
                                                                               5

ended December 31, 1999 shall be deemed to total $23,000,000 for the purpose of
calculating Consolidated Adjusted EBITDA for the period of four fiscal quarters
ended June 30, 2000, and (iii) Consolidated Adjusted EBITDA for the fiscal
quarter ended December 31, 1999 shall be deemed to be $15,000,000 for the
purpose of calculating Consolidated Adjusted EBITDA for the period of four
fiscal quarters ended September 30, 2000."

            (q) The table appearing in Section 6.15 of the Credit Agreement is
hereby replaced with the following table:

                Date                                Ratio
                -----                               -----

                March 31, 2000                      1.75 to 1.00
                June 30, 2000                       1.75 to 1.00
                September 30, 2000                  1.75 to 1.00
                December 31, 2000                   1.60 to 1.00
                March 31, 2001                      1.65 to 1.00
                June 30, 2001                       1.75 to 1.00
                September 30, 2001                  2.00 to 1.00
                December 31, 2001                   2.25 to 1.00
                March 31, 2002                      2.50 to 1.00
                June 30, 2002                       2.75 to 1.00
                September 30, 2002 and thereafter   3.00 to 1.00

            Notwithstanding the definition of "Consolidated Adjusted EBITDA", in
determining the Consolidated Interest Expense Coverage Ratio under this Section
6.15, (i) Consolidated Adjusted EBITDA for the period of three fiscal quarters
ended December 31, 1999 shall be deemed to total $21,000,000 for the purpose of
calculating Consolidated Adjusted EBITDA for the period of four fiscal quarters
ended March 31, 2000, (ii) Consolidated Adjusted EBITDA for the period of two
fiscal quarters ended December 31, 1999 shall be deemed to total $23,000,000 for
the purpose of calculating Consolidated Adjusted EBITDA for the period of four
fiscal quarters ended June 30, 2000, and (iii) Consolidated Adjusted EBITDA for
the fiscal quarter ended December 31, 1999 shall be deemed to be $15,000,000 for
the purpose of calculating Consolidated Adjusted EBITDA for the period of four
fiscal quarters ended September 30, 2000. In determining the Consolidated
Interest Expense Coverage Ratio under this Section 6.15 for the periods of four
fiscal quarters ended March 31, 2000, June 30, 2000 and September 30, 2000,
respectively, Consolidated Interest Expense for such periods shall be deemed to
be (i) the actual Consolidated Interest Expense for the fiscal quarter ended
March 31, 2000, multiplied by four, (ii) the actual Consolidated Interest
Expense for the period of two fiscal quarters ended June 30, 2000, multiplied by
two, and (iii) the actual Consolidated Interest Expense for the period of three
fiscal quarters ended September 30, 2000, multiplied by four thirds,
respectively."

            (r) The table appearing in Section 6.16 of the Credit Agreement is
hereby replaced with the following table:

<PAGE>
                                                                               6

                Date                                Ratio
                -----                               -----

                Prior to March 31, 2001             Unlimited
                March 31, 2001                      0.90 to 1.00
                June 30, 2001                       0.90 to 1.00
                September 30, 2001                  0.90 to 1.00
                December 31, 2001                   1.00 to 1.00
                March 31, 2002                      1.00 to 1.00
                June 30, 2002                       1.10 to 1.00
                September 30, 2002                  1.20 to 1.00
                December 31, 2002 and thereafter    1.25 to 1.00

            (s) Article VIII of the Credit Agreement is amended by the insertion
at the end of the first paragraph thereof of the following sentence: "The Agents
are further expressly authorized, at their discretion, to execute Subordination
Agreements or other instruments or agreements recognizing the subordination of
the Liens created by the Security Documents to Liens permitted under paragraphs
(m), (p) and (r) of section 6.02 ."

            (t) A new Exhibit J, in the form of Exhibit J to this Amendment, is
hereby added to the Credit Agreement.

            SECTION 2. Representations and Warranties. Each of the Company and
PHI represents and warrants to each Lender that, on and as of the date hereof,
and after giving effect to the amendments provided for in Section 1 of this
Amendment:

            (a) The representations and warranties set forth in Article III of
      the Credit Agreement are true and correct in all material respects with
      the same effect as if made on and as of the date hereof, except to the
      extent such representations and warranties expressly relate to an earlier
      date.

            (b) No Event of Default or Default has occurred and is continuing.

            SECTION 3. Effectiveness. This Amendment shall become effective upon
the execution of counterparts of the signature pages hereto by the Company, PHI,
the Administrative Agent and Lenders constituting the Required Lenders;
provided, that the amendments set forth in Section 1 shall not become effective
until each of the following conditions precedent shall have been satisfied, and
if any of such conditions shall not have been satisfied by February 3, 2000,
then the provisions of Section 1 shall terminate and cease to be of any force or
effect:

            (a) The Administrative Agent shall have received from the Borrower
      immediately available funds in the amount of $15,000,000 as a prepayment,
      without premium or penalty, of the Term Loans. It is agreed that such
      prepayment shall be applied ratably to the outstanding Tranche A Term
      Borrowings and Tranche B Term Borrowings, and that the amounts allocated
      to each of the Tranche A Term Borrowings and the Tranche B Term Borrowings
      shall be applied (i) first, to satisfy the installments of principal due
      in respect of the Term Borrowings of such class during calendar year

<PAGE>
                                                                               7

      2000 and then (ii) pro rata against the remaining scheduled installments
      of principal due in respect of the Term Borrowings of such class;
      provided, that any amounts that but for this proviso would be used to
      prepay Tranche B Term Loans of Lenders listed on Schedule I hereto in
      accordance with clause (ii) above, shall be applied to prepay Tranche A
      Term Loans in accordance with this sentence.

            (b) The Borrower shall have prepaid Revolving Loans to the extent
      required under Section 2.13(i) of the Credit Agreement as a result of the
      reduction in the Revolving Credit Commitments on the Second Amendment
      Effective Date pursuant to Section 2.09(j) of the Credit Agreement as
      amended hereby.

            (c) The Borrower shall have paid to the Administrative Agent, for
      the account of each Lender that shall have executed this Amendment at or
      prior to noon New York City time on January 31, 2000, in immediately
      available funds, an amendment fee equal to .25% of the aggregate
      outstanding Term Loans, Revolving Credit Exposure and unused Revolving
      Credit Commitment of such Lender on the date hereof (determined after
      giving effect to the prepayments and Commitment reductions that will occur
      on the Second Amendment Effective Date, as provided for herein).

            (d) The Administrative Agent shall have received (i) such evidence
      as the Administrative Agent or Cravath, Swaine & Moore, counsel to the
      Administrative Agent, shall reasonably have requested as to the corporate
      power and authority of the Company and PHI to enter into and perform their
      obligations under this Amendment and (ii) an opinion from each of Paul,
      Weiss, Rifkind, Wharton & Garrison, special counsel for the Company and
      PHI, and Howard Shapiro, Esq., General Counsel of the Company, in each
      case reasonably satisfactory in form and substance to the Administrative
      Agent and to Cravath, Swaine & Moore.

The Administrative Agent shall notify the Lenders of the satisfaction of the
foregoing conditions, and such notice shall, in the absence of manifest error,
conclusively evidence the satisfaction of such conditions.

            SECTION 4. Governing Law. THIS AGREEMENT SHALL BE CONSTRUED IN
ACCORDANCE WITH AND GOVERNED BY THE LAW OF THE STATE OF NEW YORK.

            SECTION 5. Expenses. The Borrower shall pay all reasonable
out-of-pocket fees and expenses incurred by the Administrative Agent in
connection with the preparation, negotiation, execution and delivery of this
Amendment, including, but not limited to, the reasonable fees, disbursements and
other charges of Cravath, Swaine & Moore, counsel to the Administrative Agent.

            SECTION 6. Counterparts. This Amendment may be executed in any
number of counterparts, each of which shall be an original but all of which,
when taken together, shall constitute but one instrument. Delivery of an
executed counterpart of a signature page of this

<PAGE>
                                                                               8

Amendment by facsimile transmission shall be as effective as delivery of a
manually executed counterpart of this Amendment.

            SECTION 7. Headings. Section headings used herein are for
convenience of reference only, are not part of this Amendment and are not to
affect the construction of, or to be taken into consideration in interpreting,
this Amendment.

            SECTION 8. Effect of Amendment. Except as specifically stated
herein, the Credit Agreement shall continue in full force and effect in
accordance with the provisions thereof. As used therein, the terms "Agreement",
"herein", "hereunder", "hereinafter", "hereto", "hereof" and words of similar
import shall, unless the context otherwise requires, refer to the Credit
Agreement as modified hereby. Upon effectiveness of this Amendment in accordance
with Section 3, the Required Lenders hereby waive any failure by the Borrower to
comply prior to the Second Amendment Effective Date with the covenants in
Sections 6.13, 6.14, 6.15 and 6.16.

            IN WITNESS WHEREOF, the parties hereto have caused this Amendment to
be duly executed by their respective authorized officers as of the date first
above written.

                                     PLAYBOY ENTERPRISES, INC,

                                        by /s/ Robert D. Campbell
                                           -------------------------------------
                                            Name: Robert D. Campbell
                                            Title: Sr. Vice President, Treasurer

                                     PEI HOLDINGS, INC.,

                                        by /s/ Robert D. Campbell
                                           -------------------------------------
                                            Name: Robert D. Campbell
                                            Title: Treasurer

                                     CREDIT SUISSE FIRST BOSTON, individually
                                     and as Administrative Agent, Collateral
                                     Agent and Issuing Bank,

                                        by /s/ Bill O'Daly
                                           -------------------------------------
                                            Name: Bill O'Daly
                                            Title: Vice President

                                        by /s/ Kristen Lepri
                                           -------------------------------------
                                            Name: Kristen Lepri
                                            Title: Associate

<PAGE>

                                     BANK OF AMERICA, N.A.,

                                        by /s/ Peter J. Gates Jr.
                                           -------------------------------------
                                            Name: Peter J. Gates Jr.
                                            Title: Vice President

                                     EATON VANCE SENIOR INCOME TRUST,
                                     By EATON VANCE MANAGEMENT as Investment
                                     Advisor,

                                        by /s/ Payson F. Swaffield
                                           -------------------------------------
                                            Name: Payson F. Swaffield
                                            Title: Vice President

                                     FIRST DOMINION FUNDING II,

                                        by /s/ Andrew Marshak
                                           -------------------------------------
                                            Name: Andrew Marshak
                                            Title: Authorized Signator

                                     FRANKLIN FLOATING RATE TRUST,

                                        by /s/ Chauncey Lufkin
                                           -------------------------------------
                                            Name: Chauncey Lufkin
                                            Title: Vice President

                                     MOUNTAIN CAPITAL CLO I LTD.,

                                        by /s/ Darren P. Riley
                                           -------------------------------------
                                            Name: Darren P. Riley
                                            Title: Director

                                     GALAXY CLO 1999-1, LTD.,

                                        by /s/ Sabur Moini
                                           -------------------------------------
                                            Name: Sabur Moini
                                            Title: Authorized Signatory

<PAGE>

                                     HARRIS TRUST & SAVINGS BANK,

                                        by /s/ Scott F. Geik
                                           -------------------------------------
                                            Name: Scott F. Geik
                                            Title: Managing Director

                                     ING BANK,

                                        by /s/ William James
                                           -------------------------------------
                                            Name: William James
                                            Title: Vice President

                                     KZH ING-2 LLC,

                                        by /s/ Peter Chin
                                           -------------------------------------
                                            Name: Peter Chin
                                            Title: Authorized Agent

                                     KZH ING-3 LLC,

                                        by /s/ Peter Chin
                                           -------------------------------------
                                            Name: Peter Chin
                                            Title: Authorized Agent

                                     KZH SOLEIL-2 LLC,

                                        by /s/ Peter Chin
                                           -------------------------------------
                                            Name: Peter Chin
                                            Title: Authorized Agent

                                     LASALLE BANK N.A.,

                                        by /s/ Kyle Freimuth
                                           -------------------------------------
                                            Name: Kyle Freimuth
                                            Title: Assistant Vice President

                                     PPM AMERICA, INC., as Attorney-in-fact, on
                                     behalf of Jackson National Life Insurance
                                     Company,

                                        by /s/ John Walding
                                           -------------------------------------
                                            Name: John Walding

<PAGE>

                                            Title: Managing Director

                                     PPM SPYGLASS FUNDING TRUST,

                                        by /s/ Kelly C. Walker
                                           -------------------------------------
                                            Name: Kelly C. Walker
                                            Title: Authorized Agent

<PAGE>

                                     SENIOR DEBT PORTFOLIO
                                     by BOSTON MANAGEMENT AND RESEARCH as
                                     Investment Advisor,

                                        by /s/ Payson F. Swaffield
                                           -------------------------------------
                                            Name: Payson F. Swaffield
                                            Title: Vice President

                                     SRF TRADING, INC.,

                                        by /s/ Kelly C. Walker
                                           -------------------------------------
                                            Name: Kelly C. Walker
                                            Title: Vice President

                                     STEIN ROE FLOATING RATE LIMITED LIABILITY
                                     COMPANY,

                                        by /s/ James R. Fellows
                                           -------------------------------------
                                            Name: James R. Fellows
                                            Title: Vice President, Stein Roe &
                                                   Farnham Incorporated, as
                                                   Advisor to the Stein Roe
                                                   Floating Rate Limited
                                                   Liability Company

                                     EATON VANCE INSTITUTIONAL SENIOR LOAN FUND,

                                     by: Eaton Vance Management as Investment
                                         Advisor

                                        by /s/ Payson F. Swaffield
                                           -------------------------------------
                                            Name: Payson F. Swaffield
                                            Title: Vice President

<PAGE>
                                                                              13

                                                                      Schedule I

                                Declining Lenders

                                      None.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00006-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00006-of-00352.parquet"}]]