**SECURITY      AGREEMENT**

**SECURITY      AGREEMENT**
**THE      BANK OF NEW YORK TRUST COMPANY, N.A. **

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**(c)**

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*mutatis*
*mutandis*

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| **GRANTORS**                          | **PORTRAIT                CORPORATION OF AMERICA, INC.,** a                Delaware corporation, By /s/                Donald NorsworthyIts Executive                Vice President and Chief Financial Officer                                                                           |
|--------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                       |                                                                                                                                                                                                                                                                                                               |
|                                       | **PCA                LLC,** a                Delaware limited liability company By /s/                Donald NorsworthyIts Executive                Vice President and Chief Financial Officer                                                                                            |
|                                       |                                                                                                                                                                                                                                                                                                               |
|                                       | **AMERICAN                STUDIOS, INC.,** a                North Carolina corporation By /s/                Donald NorsworthyIts Executive                Vice President and Chief Financial Officer                                                                                     |
|                                       |                                                                                                                                                                                                                                                                                                               |
|                                       | **PCA                PHOTO CORPORATION OF CANADA, INC.,** a                North Carolina corporation By /s/                Donald NorsworthyIts Executive                Vice President and Chief Financial Officer                                                                      |
|                                       |                                                                                                                                                                                                                                                                                                               |
|                                       | **PCA                NATIONAL LLC,** a                Delaware limited liability company By /s/                Donald NorsworthyIts Executive                Vice President and Chief Financial Officer                                                                                   |
|                                       |                                                                                                                                                                                                                                                                                                               |
|                                       | **HOMETOWN                THREADS LLC,** a                Delaware limited liability company By /s/                Donald NorsworthyIts Executive                Vice President and Chief Financial Officer                                                                               |
|                                       |                                                                                                                                                                                                                                                                                                               |
|                                       | **PCA                FINANCE CORP.,** a                Delaware corporation By /s/                Donald NorsworthyIts Executive                Vice President and Chief Financial Officer                                                                                                |
|                                       |                                                                                                                                                                                                                                                                                                               |
|                                       | **PHOTO                CORPORATION OF AMERICA,** a                North Carolina corporation By /s/                Donald NorsworthyIts Executive                Vice President and Chief Financial Officer                                                                               |
|                                       |                                                                                                                                                                                                                                                                                                               |
|                                       | **PCA                NATIONAL OF TEXAS L.P.,** a                Texas limited partnership                                                                                                                                                                                                                |
|                                       | By: **PCA                NATIONAL LLC** a                Delaware limited liability company Its: General                Partner By: /s/                Donald Norsworthy     Its:                Executive Vice President and Chief Financial Officer  |
|                                       |                                                                                                                                                                                                                                                                                                               |
| **COLLATERAL                AGENT:**  | **THE                BANK OF NEW YORK TRUST COMPANY, N.A.,** as                Collateral Agent By: /s/                Craig A. KayeName:                Craig A. Kaye Title:                Assistant                Vice President                                                 |

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**SCHEDULE      1**

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**SCHEDULE      2**

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**SCHEDULE      3**

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**SCHEDULE      4**

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**SCHEDULE      5**

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**SCHEDULE      6**

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**SCHEDULE      7**

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**SCHEDULE      8**

| Grantor                                                | Jurisdictions                  |
|-------------------------------------------------------------|-------------------------------------|
| Portrait                Corporation of America, Inc.   | Delaware                       |
| PCA                LLC                                 | Delaware                       |
| PCA                Photo Corporation of Canada, Inc.   | North                Carolina  |
| PCA                Finance Corp.                       | Delaware                       |
| Hometown                Threads LLC                    | Delaware                       |
| American                Studios, Inc.                  | North                Carolina  |
| PCA                National LLC                        | Delaware                       |
| PCA                National of Texas L.P.              | Texas                          |
| Photo                Corporation of America            | North                Carolina  |

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**SUPPLEMENT      NO.**
**THE      BANK OF NEW YORK TRUST COMPANY, N.A. **

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| **NEW                GRANTORS:**  | **[Name                of New Grantor]** By:   Name:  Title:  **[Name                of New Grantor]** By:   Name:  Title:   |
|----------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                   |                                                                                                                                                                                                         |
| **AGENT:**                        | **THE                BANK OF NEW YORK TRUST COMPANY, N.A.,** as                Collateral Agent By:   Name:  Title:                                             |

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**EXHIBIT      A**

**COPYRIGHT      SECURITY AGREEMENT**

**COPYRIGHT      SECURITY AGREEMENT**
**THE      BANK OF NEW YORK TRUST COMPANY, N.A. **

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**ACCEPTED      AND ACKNOWLEDGED BY:**

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**COPYRIGHT      SECURITY AGREEMENT**

**COPYRIGHT      REGISTRATIONS**

|  **Grantor**  |  **Country**  |  **Copyright**  |  **Registration                No.**  |  **Registration                Date**  |
|-------------------------|-------------------------|---------------------------|-------------------------------------------------|--------------------------------------------------|
|                    |                    |                      |                                            |                                             |
|                    |                    |                      |                                            |                                             |
|                    |                    |                      |                                            |                                             |
|                    |                    |                      |                                            |                                             |
|                    |                    |                      |                                            |                                             |
|                    |                    |                      |                                            |                                             |
|                    |                    |                      |                                            |                                             |
|                    |                    |                      |                                            |                                             |

**Copyright      Licenses**

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**EXHIBIT      B**

**PATENT      SECURITY AGREEMENT**

**PATENT      SECURITY AGREEMENT**
**THE      BANK OF NEW YORK TRUST COMPANY, N.A. **

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**ACCEPTED      AND ACKNOWLEDGED BY:**

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**EXHIBIT      C**

**Annex      1 to Pledge and Security Agreement**

**PLEDGED      INTERESTS ADDENDUM**

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|  **Name                of Pledgor**  |  **Name                of Pledged Company**  |  **Number                of Shares/Units**  |  **Class                of Interests**  |  **Percentage                of Class Owned**  |  **Percentage                of Class Pledged**  |  **Certificate                Nos.**  |
|------------------------------------------------|--------------------------------------------------------|-------------------------------------------------------|---------------------------------------------------|----------------------------------------------------------|------------------------------------------------------------|-------------------------------------------------|
|                                           |                                                   |                                                  |                                              |                                                     |                                                       |                                            |
|                                           |                                                   |                                                  |                                              |                                                     |                                                       |                                            |

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**EXHIBIT      D**

**TRADEMARK      SECURITY AGREEMENT**

**TRADEMARK      SECURITY AGREEMENT**
**THE      BANK OF NEW YORK TRUST COMPANY, N.A. **

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**ACCEPTED      AND ACKNOWLEDGED BY:**

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**TRADEMARK      SECURITY AGREEMENT**

**Trademark      Registrations/Applications**

|  **Grantor**  |  **Country**  |  **Mark**  |  **Application/                Registration No.**  |  **App/Reg                Date**  |
|-------------------------|-------------------------|----------------------|--------------------------------------------------------------|---------------------------------------------|
|                    |                    |                 |                                                         |                                        |
|                    |                    |                 |                                                         |                                        |
|                    |                    |                 |                                                         |                                        |
|                    |                    |                 |                                                         |                                        |
|                    |                    |                 |                                                         |                                        |
|                    |                    |                 |                                                         |                                        |
|                    |                    |                 |                                                         |                                        |
|                    |                    |                 |                                                         |                                        |

**Trade      Names**

**Common      Law Trademarks **

**Trademarks      Not Currently In Use**

**Trademark      Licenses**