**SECURITY      AGREEMENT**

**      SECURITY AGREEMENT**
**WELLS      FARGO FOOTHILL, INC.**

**PORTRAIT      CORPORATION OF AMERICA INC.**
**PCA      LLC**

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*mutatis      mutandis*

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| **GRANTORS:**  | **PORTRAIT                CORPORATION OF AMERICA, INC.**,a                Delaware corporation,  By: /s/                Donald Norsworthy_________________ Its: Executive                Vice President and Chief Financial Officer                                                                                                                                                       |
|---------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                |  **PCA                LLC,**  a                Delaware limited liability company  By: /s/                Donald Norsworthy_________________ Its: Executive                Vice President and Chief Financial Officer                                                                                                                                                      |
|                |  **AMERICAN                STUDIOS, INC.,**  a                North Carolina corporation  By: /s/                Donald Norsworthy_________________ Its: Executive                Vice President and Chief Financial Officer                                                                                                                                               |
|                |  **PCA                PHOTO CORPORATION OF CANADA, INC.,**  a                North Carolina corporation  By: /s/                Donald Norsworthy_________________ Its: Executive                Vice President and Chief Financial Officer                                                                                                                                |
|                |  **PCA                NATIONAL LLC,**  a                Delaware limited liability company  By: /s/                Donald Norsworthy_________________ Its: Executive                Vice President and Chief Financial Officer                                                                                                                                             |
|                |  **HOMETOWN                THREADS LLC,**  a                Delaware limited liability company  By: /s/                Donald Norsworthy_________________ Its: Executive                Vice President and Chief Financial Officer                                                                                                                                         |
|                |  **PCA                FINANCE CORP.,**  a                Delaware corporation  By: /s/                Donald Norsworthy_________________ Its: Executive                Vice President and Chief Financial Officer                                                                                                                                                          |
|                |  **PHOTO                CORPORATION OF AMERICA,**  a                North Carolina corporation  By: /s/                Donald Norsworthy_________________ Its: 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 companyIts:General                Partner By:                /s/ Donald Norsworthy_______________ Its:                Executive Vice President and   Chief                Financial Officer |
| **AGENT:**          | **WELLS                FARGO FOOTHILL, INC.**,a                California corporation,as                Agent By: /s/                Cheri MacDonald_____________________Name: Cheri                MacDonald_____________________Title:                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**

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**SUPPLEMENT      NO.**
**WELLS      FARGO FOOTHILL, INC.**

**PORTRAIT      CORPORATION OF AMERICA INC.**
**PCA      LLC**

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**NEW      GRANTORS:**
**[Name      of New Grantor]**

**[Name      of New Grantor]**

**AGENT:**
**WELLS      FARGO FOOTHILL, INC.,**

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**EXHIBIT      A**

**COPYRIGHT      SECURITY AGREEMENT**

**COPYRIGHT      SECURITY AGREEMENT**
**WELLS      FARGO FOOTHILL, INC.**

**PORTRAIT      CORPORATION OF AMERICA INC.**
**PCA      LLC**

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|   |                                                                                                      |
|--------|-----------------------------------------------------------------------------------------------------------|
|   |                                                                                                      |
|   |                                                                                                      |
|   | By:                                                                              |
|   |  Name:                                                                      |
|   |  Title:                                                                     |
|   |                                                                                                      |
|   |                                                                                                      |
|   |                                                                                                      |
|   |                                                                                                      |
|   |                                                                                                      |
|   |                                                                                                      |
|   | By:                                                                              |
|   |  Name:                                                                      |
|   |  Title:                                                                     |
|   |                                                                                                      |
|   |                                                                                                      |
|   |                                                                                                      |
|   | **ACCEPTED                AND ACKNOWLEDGED BY**:                                                          |
|   |                                                                                                      |
|   | WELLS                FARGO FOOTHILL, INC.,a                California corporation,as                Agent |
|   |                                                                                                      |
|   |                                                                                                      |
|   |                                                                                                      |
|   | By:                                                                              |
|   | Name:                                                                            |
|   | Title:                                                                           |
|   |                                                                                                      |
|   |                                                                                                      |

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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**
**WELLS      FARGO FOOTHILL, INC.**

**PORTRAIT      CORPORATION OF AMERICA INC.**
**PCA      LLC**

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|   |                                                                                                                                         |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                         |
|   |  By:                                                                                                      |
|   | Name:                                                                                                          |
|   | Title:                                                                                                         |
|   |                                                                                                                                         |
|   |                                                                                                                                         |
|   |                                                                                                                                         |
|   |                                                                                                                                         |
|   |                                                                                                                                         |
|   | By:                                                                                                            |
|   | Name:                                                                                                          |
|   | Title:                                                                                                         |
|   |                                                                                                                                         |
|   |                                                                                                                                         |
|   | **ACCEPTED                AND ACKNOWLEDGED BY**:                                                                                        |
|   |  WELLS                FARGO FOOTHILL, INC.,  a                California corporation  as                Agent  |
|   |                                                                                                                                         |
|   |                                                                                                                                         |
|   |                                                                                                                                         |
|   | By:                                                                                                            |
|   | Name:                                                                                                          |
|   | Title:                                                                                                         |
|   |                                                                                                                                         |

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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**
**WELLS      FARGO FOOTHILL, INC.**

**PORTRAIT      CORPORATION OF AMERICA INC.**
**PCA      LLC**

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|   |                                                                                                      |
|--------|-----------------------------------------------------------------------------------------------------------|
|   |                                                                                                      |
|   |                                                                                                      |
|   | By:                                                                              |
|   |  Name:                                                                      |
|   |  Title:                                                                     |
|   |                                                                                                      |
|   |                                                                                                      |
|   |                                                                                                      |
|   |                                                                                                      |
|   |                                                                                                      |
|   |                                                                                                      |
|   | By:                                                                              |
|   |  Name:                                                                      |
|   |  Title:                                                                     |
|   |                                                                                                      |
|   |                                                                                                      |
|   |                                                                                                      |
|   | **ACCEPTED                AND ACKNOWLEDGED BY**:                                                          |
|   |                                                                                                      |
|   | WELLS                FARGO FOOTHILL, INC.,a                California corporation,as                Agent |
|   |                                                                                                      |
|   |                                                                                                      |
|   |                                                                                                      |
|   | By:                                                                              |
|   | Name:                                                                            |
|   | Title:                                                                           |
|   |                                                                                                      |
|   |                                                                                                      |

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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**