Document:

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                                                                    EXHIBIT 10.2
             GOLD CONSIGNMENT AGREEMENT DATED JULY 27, 2000 BETWEEN
             COMMEMORATIVE BRANDS, INC. AND THE BANK OF NOVA SCOTIA

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                                TABLE OF CONTENTS
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<Caption>
                                                                     PAGE
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1.    Availability.....................................................4

2.    Commitment, Reduction of Commitment..............................4

3.    Extension of Consignment Maturity Date...........................5

4.    Orders...........................................................5

5.    Deliveries by Scotiabank.........................................6

6.    Fees.............................................................6

7.    Title............................................................7

8.    Commingling......................................................7

9.    Safekeeping......................................................7

10.   Purchase Request.................................................7

11.   Purchase.........................................................8

12.   Security.........................................................8

13.   Invoices.........................................................9

14.   Payments........................................................10

15.   Reports, etc....................................................10

16.   Period of Agreement.............................................10

17.   Events of Default...............................................10

18.   Agreement Effectiveness.........................................12

19.   All Deliveries under Consignment................................13

20.   Authorized Representatives......................................14

21.   Representations of the Consignee................................14

22.   Representations of Scotiabank...................................15

23.   Covenants of the Consignee......................................15
</Table>

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<Table>
<S>                                                                   <C>
24.   Notices.........................................................16

25.   Deliveries by Consignee.........................................17

26.   Indemnity Provisions............................................18

27.   Assignment......................................................18

28.   LAWS............................................................18

29.   Amendments......................................................18

30.   Judgment Currency...............................................18

31.   Force Majeure...................................................19

32.   Determination...................................................19

33.   Expenses........................................................19

34.   Survival........................................................19

35.   Severability....................................................20

36.   Execution in Counterparts, Effectiveness, etc...................20

37.   Forum Selection and Consent to Jurisdiction.....................20

38.   Waiver of Jury Trial............................................21
</Table>

                                      -ii-
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                                February 13, 2002

Commemorative Brands, Inc.
7211 Circle S Rd.
Austin, Texas 78745
Attention:  Leah Bush

       Re:  EXTENSION OF MATURITY DATE

Dear Ladies and Gentlemen:

          Please refer to the Letter Agreement for Fee Consignment and Purchase
of Gold (the "Consignment Agreement") dated as of July 27, 2000 between
Commemorative Brands, Inc. and The Bank of Nova Scotia. Terms defined in the
Consignment Agreement are, unless otherwise defined herein, used herein as
defined therein.

          This letter will confirm our agreement with you to extend Consignment
Maturity Date from July 26, 2001 to July 25, 2002. Please acknowledge your
agreement with the foregoing by signing a counterpart of this letter and
returning it to us.

                                          Very truly yours,

                                          THE BANK OF NOVA SCOTIA

                                          By: /s/ Joseph A. Lasiewski
                                              ----------------------------------
                                              Joseph A. Lasiewski
                                              Director - Metals Operations

                                          By: /s/ Randy M. Weinerman
                                              ----------------------------------
                                              Randy M. Weinerman
                                              Senior Manager

ACKNOWLEDGED AND AGREED:

COMMEMORATIVE BRANDS, INC.

By:  /s/ Leah Bush
     -----------------------
Its: Controller
               -------------

                                        2
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                                  July 27,2000

Commemorative Brands, Inc.
7211 Circle S Road
Austin, Texas 78745

       Re:   Letter Agreement (this "Agreement") for Fee Consignment and
             Purchase of Gold

Dear Ladies and Gentlemen:

          We are pleased to confirm that, subject to your acceptance of this
facility, THE BANK OF NOVA SCOTIA ("Scotiabank") will be prepared to deliver
from time to time on a Business Day occurring prior to the Commitment
Termination Date, Gold (as such terms are defined below) upon consignment (the
"Consignment(s)") to Commemorative Brands, Inc. (the "Consignee") subject to
availability and to the terms and conditions outlined herein.

          DEFINITIONS. For the purposes of this Agreement:

          "Approved Inventory Location" shall mean any location set forth under
the appropriate heading on Exhibit A, and each other location previously
approved by Scotiabank from time to time.

          "Base Rate" shall mean the higher of (with any change in the Base Rate
to be effective as of the date of change of either of the following rates):

               (i)  the rate of interest then most recently established by
          Scotiabank in New York from time to time to be its base rate for
          Dollars loaned in the United States, as in effect from time to time,
          and

               (ii) the Federal Funds Rate, as in effect from time to time, PLUS
          one-half of one percent (0.50%) per annum.

          Scotiabank's base rate is a reference rate and does not necessarily
          represent the lowest or best rate charged to customers; Scotiabank may
          make commercial loans or other loans at rates of interest at, above or
          below Scotiabank's base rate.

          "Borrowing Base" shall mean at any date of determination the amount
determined by Scotiabank based on the most recent Borrowing Base Certificate of
the sum of (i) 90% of the Dollar Value of the aggregate troy ounces of Gold
located at the Consignee's Plants, PLUS (ii) 70% of the Dollar Value of the
aggregate troy ounces of Gold located at Approved Inventory Locations, PLUS
(iii) 40% of the Dollar Value of the aggregate troy ounces of Gold located with

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the Consignee's salesmen, college book stores or jewelry stores as samples (but
such contribution to the Borrowing Base shall not exceed $1,000,000), PLUS (iv)
70% of the Dollar Value of the aggregate troy ounces of Gold located with
refiners approved by Scotiabank, PLUS (v) 90% of the Dollar Value of the
aggregate troy ounces of Gold located in the Consignee's pooled account with
Stern Leach, PROVIDED that the Borrowing Base shall not include the Dollar Value
of Processed Gold returned to the Consignee by the purchaser thereof for any
reason (including pursuant to customer warranty repairs).

          "Borrowing Base Certificate" shall mean a certificate executed by an
authorized officer of the Consignee substantially in the form of Exhibit D.

          "Business Day" shall mean any day, other than a Saturday, a Sunday or
a day that banks are authorized or entitled to be closed for business in New
York, New York, or in the case of any location to which Gold is to be delivered
or received, a day that transactions cannot be carried out at such location.

          "Commitment" is defined in paragraph 2(a).

          "Commitment Amount" is defined in paragraph 1.

          "Commitment Termination Date" means the earliest of (i) the
Consignment Maturity Date, (ii) the date on which the Commitment Amount is
terminated in full pursuant to the terms hereof, (iii) the occurrence of any
Event of Default in paragraph 17(d) or (e) and (iv) the occurrence of any other
Event of Default and either (A) the declaration by Scotiabank that the Gold is
to be returned to it from consignment pursuant to paragraph 17 or (B) in the
absence of such declaration, the giving of notice by Scotiabank to the Consignee
that the Commitment has been terminated.

          "Consignment Documents" shall mean, collectively, this Agreement, the
Guarantee and other related documents.

          "Consignment Maturity Date" shall mean July 26, 2001, as such date may
be extended in the sole discretion of Scotiabank pursuant to paragraph 3.

          "Consignment Request" shall mean a request delivered by an authorized
officer of the Consignee to Scotiabank in the form of Exhibit B hereto.

          "Dollar Value" with respect to Gold shall mean, on the day of
determination, the value in dollars of one troy ounce of Gold, determined by the
daily London Afternoon Fixing Price with respect to Gold on such day times the
number of ounces of Gold in respect of which the Dollar Value is being
determined. In the event that there is no London Afternoon Fixing Price for Gold
on a particular day, the last established London Afternoon Fixing Price for Gold
shall apply.

          "Dollars" and "$" shall mean lawful currency of the United States.

          "Event of Default" is defined in paragraph 17.

                                       -2-
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          "Federal Funds Rate" shall mean for any period, a fluctuating interest
rate per annum equal for each day during such period to the weighted average of
the rates on overnight Federal funds transactions with member banks of the
Federal Reserve System arranged by Federal funds brokers, as published for such
day (or, if such day is not a Business Day, for the next preceding Business Day)
by the Federal Reserve Bank of New York, or, if such rate is not so published
for any day which is a Business Day, the average of the quotations for such day
on such transactions received by Scotiabank from three Federal funds brokers of
recognized standing selected by Scotiabank.

          "Gold" shall mean gold in London Good Delivery bar form, loco London,
England, and of a minimum fineness of .9995, unless otherwise mutually agreed to
by Scotiabank and Consignee in advance of delivery to the Consignee. Gold shall
exclude customer gold contained in rings returned to the Consignee for repair,
replacement or resizing.

          "Gold Rate" shall mean, with respect to any Consignment term, the
arithmetic mean rate for the relevant Consignment term as shown on Reuters LIBO
screen as at 10:00 a.m. London, England time three (3) Business Days prior to
the first day of the Consignment term, LESS the mean rate shown on such date on
the Reuters GOFO page as at 10:00 a.m. London, England time.

          "Governmental Authority" shall mean any Federal, state, local or
foreign court or governmental agency, authority, instrumentality or regulatory
body.

          "Guaranty" is defined in paragraph 12.

          "Guarantor" is defined in paragraph 12.

          "including" shall mean "including without limitation".

          "Intercreditor Agreement" shall mean the Intercreditor Agreement dated
as of July 27, 2000 between Scotiabank and Heller Financial, Inc., as agent
under the Taylor-CBI Credit Agreement confirming the priority of the security
interest of Scotiabank in the consigned Gold, in all respects in form and
substance satisfactory to Scotiabank, as in effect on the date hereof and as the
same maybe amended or modified from time to time.

          "Lien" shall mean any security interest, mortgage, pledge,
hypothecation, assignment, deposit arrangement, encumbrance, lien (statutory or
otherwise), charge against or interest in property to secure payment of a debt
or performance of an obligation or other priority or preferential arrangement of
any kind or nature whatsoever.

          "Obligations" shall mean all obligations (monetary or otherwise) now
or hereafter arising of the Consignee or the Guarantor arising under or in
respect of this Agreement or other Consignment Document, including the
obligations of the Consignee to return or purchase Gold pursuant to the terms
hereof, but excluding the obligations of the Consignee and the Guarantor under
or in respect of the Taylor-CBI Credit Agreement.

                                       -3-
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          "Organic Document" shall mean, relative to the Consignee or the
Guarantor, its certificate of incorporation, its by-laws and all shareholder
agreements, voting trusts and similar arrangements applicable to any of its
authorized shares of capital stock.

          "Plant" shall mean, as the context may require, any of the Consignee's
facilities set forth under the appropriate heading on Exhibit A.

          "Processed Gold" shall mean an undivided interest in each product of
any goods and inventory containing Gold located at a Plant or an Approved
Inventory Location or for which Gold located at a Plant or an Approved inventory
Location comprises a part thereof, which undivided interest shall be, with
respect to any such product, equal to the ratio that the Dollar Value of such
Gold contained in such product or comprising a part thereof bears to the cost of
such product. Terms defined in the U.C.C. and used in this definition have the
meanings set forth in the U.C.C.

          "Taylor-CBI Credit Agreement" shall mean the Amended and Restated
Credit Agreement dated as of July 27, 2000 among TP Holding Corp., Taylor
Publishing Company, Taylor Production Services Co., LP and the Consignee as
borrowers, Heller Financial, Inc., as agent, Key Corporate Capital, Inc., as
syndication agent, Scotiabank, as documentation agent, and the financial
institutions party thereto as in effect on the date hereof and as amended or
modified from time to time; PROVIDED that if such Credit Agreement shall be
refinanced or otherwise terminated and is no longer of force and effect at a
time when this Agreement is still in effect, then, for purposes of this
Agreement, the "Taylor-CBI Credit Agreement" shall mean the Taylor-CBI Credit
Agreement, as in effect immediately prior to the date of such refinancing or
termination.

          "U.C.C." shall mean the Uniform Commercial Code as in effect in the
State of New York from time to time.

          "Value Date" shall mean the date two Business Days after the rate is
set for the purchase of Gold hereunder.

          1. AVAILABILITY. Gold delivered and held on consignment hereunder from
time to time by the Consignee shall not at any time have a Dollar Value which is
in excess of the least of (i) the Dollar Value of 27,000 troy ounces of Gold,
(ii) $10,125,000 and (iii) the Borrowing Base (the least of (i), (ii) and (iii)
being the "Commitment Amount").

          2. COMMITMENT; REDUCTION OF COMMITMENT.

          (a) COMMITMENT. On the terms and subject to the conditions of this
Agreement (including paragraphs 18 and 19), Scotiabank agrees from time to time
on any Business Day occurring prior to the Commitment Termination Date to
deliver Gold that will be held on consignment by the Consignee in an aggregate
amount (not in excess of the Commitment Amount) as requested by the Consignee.
The commitment of Scotiabank described in this paragraph 2(a) is herein referred
to as its "Commitment." On the terms and subject to the conditions hereof, the
Consignee may from time to time prior to the Commitment Termination Date have
Gold consigned to it, continue to hold under consignment all or a portion of
such

                                       -4-
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Gold, return all or a portion of such Gold from consignment to Scotiabank and/or
purchase all or a portion of such Gold, and thereafter have Gold consigned to it
again.

               (b) RESTORATION OF COMMITMENT AMOUNT. If at any time the Dollar
Value of the Gold held on consignment hereunder by the Consignee should exceed
the Commitment Amount (as such amount may have been reduced pursuant to the
terms of this Agreement), then Scotiabank may at its option, by telex or
telecopied notice to the Consignee, require that by the end of the Business Day
immediately following the day upon which such telex or telecopied notice is
given, the Consignee to either:

                   (i)  re-deliver to Scotiabank a portion of the Gold held on
          consignment hereunder sufficient to reduce the Dollar Value of the
          Gold continued to be held on consignment hereunder to an amount no
          greater than the Commitment Amount; or

                   (ii) purchase from Scotiabank, at a purchase price agreed to
          between the parties by the end of such Business Day, a quantity of the
          Gold held on consignment hereunder sufficient to reduce the Dollar
          Value of the Gold held on consignment hereunder to an amount no
          greater than the Commitment Amount.

With respect to item (ii) above, if the parties are unable to agree to a
purchase price, then the Commitment Amount shall be restored pursuant to the
provisions of item (i) above.

          3. EXTENSION OF CONSIGNMENT MATURITY DATE. The Consignment Maturity
Date shall be subject to extension as set forth in this paragraph.

             (a) Scotiabank may, by written notice to the Consignee given not
later than 60 days prior to the first Consignment Maturity Date and/or each and
any successive Consignment Maturity Date thereafter (if the Commitment then
remains in effect), extend the then existing Consignment Maturity Date for 364
days from the date of such notice. The Consignee acknowledges and agrees that
Scotiabank is under no obligation, express or implied, to extend the Commitment
Termination Date.

             (b) The Consignee or Scotiabank may, by delivery of written
notice to the other party given not later than 60 days prior to the first
Consignment Maturity Date, and/or each and any successive Consignment Maturity
Date thereafter (if the Commitment then remains in effect), irrevocably indicate
that it does not wish to extend the then Consignment Maturity Date, and this
Agreement shall terminate on the then Consignment Maturity Date.

          4. ORDERS. Requests for delivery of Gold will be made by an authorized
representative of the Consignee to an authorized officer of Scotiabank by
telephone, telex or telecopied transmission. Each request will indicate the
quantity and quality of the Gold to be delivered, the date on which the delivery
is requested to be made and the required term of the Consignment (which shall
not extend past the then existing Consignment Maturity Date), which term may be
for up to six (6) months or any other term which is acceptable to Scotiabank.
All telephone requests shall be confirmed in writing to Scotiabank within five
(5) days of such request.

                                       -5-
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          5. DELIVERIES BY SCOTIABANK.

             (a) Following receipt of a request for delivery of Gold by the
Consignee, Scotiabank will arrange for the delivery of the Gold to a Plant or an
Approved Inventory Location and on the date agreed upon for delivery. Scotiabank
will assume all risk of loss or damage to the Gold until it has been delivered
to a Plant or, if applicable, an Approved Inventory Location at which time such
risk shall pass to the Consignee. Such delivery shall be accompanied by a
delivery statement provided by Scotiabank setting out the quantity and quality
of Gold delivered.

             (b) If on receipt of the Gold it is determined by the Consignee
that the Gold delivered by Scotiabank to the Consignee is of a different
quantity and/or quality than is set out in the delivery statement, the Consignee
shall forthwith give notice of such discrepancy to Scotiabank. In that event,
Scotiabank shall be entitled to conduct such tests and make such examination of
the Gold as it considers necessary or desirable. If such tests or examinations
determine that the Gold delivered by Scotiabank to the Consignee is of a
different quantity and/or quality than was set out in the said delivery
statement, then Scotiabank or the Consignee, as the case maybe, shall make the
appropriate adjustments.

             (c) Unless Scotiabank receives from the Consignee the above
described notice of discrepancy within three (3) Business Days of receipt of the
Gold, then the Gold delivered will be deemed to be as set out in the delivery
statement that accompanied the delivery.

          6. FEES.

             (a) The Consignee will pay (i) on the Consignment Maturity Date,
(ii) monthly within five (5) days following the receipt by the Consignee of an
invoice from Scotiabank pursuant to paragraph 13, (iii) on the last day of a
Consignment term and (iv) on the date of any reduction in the Commitment Amount
pursuant to paragraph 2(b); in making up the applicable Consignment at a per
annum rate _____________________ (i) the sum of (x) the Gold Rate on the Dollar
Value of each on consignment hereunder as in effect three (3) Business Day of
the applicable Consignment then in effect for such Gold PLUS ____________ BY
(ii) the number of troy ounces of Gold consigned for ________________ which rate
shall remain in effect for the term of the applicable ____________________ event
that a Consignment is made with no fixed Consignment __________ applicable
thereto, then the rate applicable to such Consignment shall be as agreed upon by
the parties and subject to change upon three (3) Business Days' notice by
Scotiabank to the Consignee, and the Consignee agrees that such rate shall not
be subject to approval by the Consignee. In the event that the Consignee and
Scotiabank should fail at any time to agree upon the rate to apply to a
Consignment or the renewal of a Consignment term, then the Consignee shall
immediately deliver the subject Gold for which there is no agreement to
Scotiabank, as provided for in paragraph 16 hereof.

             (b) The Consignee agrees to pay to Scotiabank (i) on the date
hereof, an upfront fee equal to $50,625 and (ii) a commitment fee equal to
0.375% per annum MULTIPLIED BY the difference between (A) $10,125,000 and(B) the
average Dollar Value of the daily number of ounces of Gold actually consigned
hereunder during the relevant period, such commitment fee

                                       -6-
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to be payable in arrears on the last day of each month and on the Commitment
Termination Date, and (iii) an annual renewal fee of $21,000, payable on each
renewal date hereof if Scotiabank extends the Consignment Maturity Date pursuant
to paragraph 3.

             (c) All rates in this Agreement shall be calculated on the basis
of a 360 day year and for the actual number of days elapsed.

          7. TITLE.

             (a) Title to the Gold delivered by Scotiabank and held by the
Consignee on consignment for Scotiabank will remain with Scotiabank and will not
pass to the Consignee until such time as the Gold is purchased by the Consignee
as provided for in paragraphs 7(b), 10, and 11 hereof. In the event that only a
portion of a Consignment is purchased, then title as pertains to that portion
only will transfer to the Consignee.

             (b) Title to the Gold purchased by the Consignee as provided for
in paragraphs 10 and 11 hereof will pass to the Consignee upon receipt by
Scotiabank of all Dollars due to it from the Consignee in payment for the Gold
purchased.

          8. COMMINGLING. The Consignee and Scotiabank agree that the Consignee
shall be permitted, in the ordinary course of its business as being conducted on
the date of this Agreement, to commingle the Gold held on consignment for
Scotiabank with any other Gold or Gold (in each case located at the Plants or
Approved Inventory Locations) containing alloys being held by the Consignee on
consignment, safekeeping, or trust, or with Gold or Gold containing alloys owned
by the Consignee. The Consignee shall also be permitted to accept returns from
its customers containing Gold for repair, replacement, restyling etc. without
being in violation of this Agreement.

          9. SAFEKEEPING. Until such time as the Gold being returned to
Scotiabank has been received by Scotiabank, or purchased by the Consignee, as
hereinafter provided, the Consignee will afford the Gold no less safekeeping
protection than it affords Gold held for its own account. The Consignee will
arrange insurance coverage, acceptable to Scotiabank and naming Heller
Financial, Inc., as agent as loss payee and additional insured, on the Gold held
on consignment for Scotiabank by the Consignee in such amounts and covering such
risks as is usually carried by companies engaged in a similar business and the
Consignee shall, upon request, deliver to Scotiabank a copy of all policies for
such insurance. If Scotiabank delivers written notice to the Consignee setting
forth Scotiabank's reasonable belief that an Approved Inventory Location offers
inadequate safekeeping protection for the Gold, the Consignee shall transfer all
Gold contained at such Approved Inventory Location to a Plant or another
Approved Inventory Location within 10 days following receipt of such notice.

          10. PURCHASE REQUEST. If the Consignee wishes to purchase part or all
of the Gold held hereunder on consignment for Scotiabank, an authorized
representative of the Consignee will make a request to an authorized officer of
Scotiabank by telephone, telex or telecopied transmission stating the quantity
and quality of Gold to be purchased and the proposed Value Date of the purchase.
All telephone requests shall be confirmed in writing to Scotiabank within five
(5) days of such request.

                                       -7-
<Page>

          11. PURCHASE. Scotiabank shall at least two (2) Business Days prior to
the proposed Value Date for a purchase or such lesser period as Scotiabank may
accommodate (in its sole discretion), by its authorized officer, provide an
authorized representative of the Consignee with a quotation of the price (based
on the current market price for such Gold), as of the Value Date, of the Gold to
be purchased. If such price is agreed to by the authorized representative of the
Consignee, such Gold will thereupon be conclusively deemed to have been
contracted for purchase, with payment of the purchase price by the Consignee to
be on the relevant Value Date.

          12. SECURITY.

              (a) As continuing collateral security for the present and future
Obligations of the Consignee to Scotiabank hereunder and under the other
Consignment Documents, Commemorative Brands Holding Corp. (the "Guarantor")
shall deliver in favor of Scotiabank (together with registrations, filings and
other supporting documentation deemed necessary by Scotiabank to perfect same),
in the form attached hereto as Exhibit C, its unsecured guaranty (the
"Guaranty") of the present and future Obligations of the Consignee to
Scotiabank.

              (b) The intent of the parties hereto is to create a true
consignment from Scotiabank to the Consignee and not a consignment for security;
PROVIDED, HOWEVER, that in order to protect the rights of Scotiabank in the
event that either this Agreement and under the other Consignment Documents and
the transactions contemplated hereby and thereby are construed at any time with
respect to any Gold as other than a true consignment from Scotiabank to the
Consignee (including as a result of a Gold Sale), then as security for its
Obligations the Consignee hereby grants Scotiabank a Lien on and security
interest in and to the Collateral (whether now or hereafter existing).
"COLLATERAL" means all of the Consignee's right, title and interest in and to
(i) all Gold of any quality or fineness (including the Gold consigned and
purchased under this Agreement), located from time to time at the Plants or the
Approved Inventory Locations or in transit or with the Consignee's salesmen,
college book stores or jewelry stores as samples, (ii) all Processed Gold
located from time to time at the Plants or the Approved Inventory Locations or
in transit or with the Consignee's salesmen, college book stores or jewelry
stores as samples and (iii) an undivided interest in all proceeds of such Gold,
including, to the extent that the Consignee has not returned to Scotiabank
and/or purchased pursuant to the terms hereof any amount of Gold that is
delivered to any account debtor of the Consignee, an undivided interest in the
accounts owing by such account debtor, and related general intangibles (if any)
arising from the sale of such Gold (including the Gold and the Gold comprising
any Processed Gold) in each case which undivided interest shall be, with respect
to any such proceeds, accounts or general intangibles, equal to the ratio that
the Dollar Value of such Gold contained in the goods delivered to such account
debtor or comprising a part thereof bears to the total cost of such goods. Terms
used in the definition of Collateral for which meanings are provided in the
U.C.C. are used in the definition of Collateral with such meanings. "Gold Sale"
means any sale of Gold by Scotiabank to the Consignee, which sale shall occur at
any time the Consignee takes title to any Gold, whether pursuant to paragraph 10
and 11 or at such earlier or other date as provided by law or court order or
decree. To the extent this Agreement and any other Consignment Document and the
transactions contemplated hereby and thereby are not construed as a true
consignment from Scotiabank to the Consignee, or upon the occurrence of any Gold
Sale, the security interest granted pursuant to this paragraph secures the
complete and punctual payment of all Obligations of the Consignee, whether now
or hereafter

                                       -8-
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existing. To the extent any Gold of any quality or fineness located at a Plant
or any Approved Inventory Location becomes part of a product, Scotiabank shall
only have and shall continue to have rights or interests in and to such product
to the extent of an undivided interest in such product that is equal to the
ratio that the cost of such Gold contained in such product or comprising a part
thereof bears to the cost of such product. In addition, Gold of any quality or
fineness (including the Gold) located at a Plant or any Approved Inventory
Location that becomes part of a product shall continue to be considered as being
consigned to the Consignee hereunder to the same extent as if such Gold did not
become part of a product and shall be subject to all the terms hereof and any
other Consignment Document (including the continuation of title to such Gold in
Scotiabank). Notwithstanding the express intent of the parties hereto that this
Agreement and any other Consignment Document and the transactions contemplated
hereby be a true consignment from Scotiabank to the Consignee, the Consignee
shall file precautionary Uniform Commercial Code financing statements to protect
the rights of Scotiabank in and to the Collateral. In furtherance of the intent
of the parties hereto that this Agreement and the transactions contemplated
hereunder and thereunder are a true consignment from Scotiabank to the
Consignee, and not a consignment for security, Scotiabank agrees that for so
long as no Event of Default has occurred and is continuing, it will not initiate
any action, suit or proceeding claiming that this Agreement or any of the
transactions contemplated hereunder are other than a true consignment from
Scotiabank to the Consignee.

              (c) The Consignee agrees that, from time to time at its own
expense, the Consignee will promptly execute and deliver all further instruments
and documents, and take all further action, that may be necessary or desirable,
or that Scotiabank may request, in order to perfect, preserve and protect any of
its interest in the Gold.

          13. INVOICES.

              (a) Scotiabank will furnish the Consignee, as at the last day of
each month and as at the last day of a Consignment term, a statement of the
quantity and quality of Gold held on consignment for Scotiabank and a
calculation of the consignment fee in accordance with paragraph 6 hereof payable
by the Consignee, together with an invoice for such charges.

              (b) In the case of purchases of Gold in accordance with
paragraphs 10 and 11, Scotiabank will furnish the Consignee promptly after each
purchase is agreed to with a statement setting forth the quantity and quality of
the Gold sold, and a calculation of the purchase price payable by the Consignee,
together with an invoice for such purchase price.

              (c) Fai1ure by Scotiabank to issue a statement and/or an invoice
or failure to issue such statement and/or invoice in a timely manner, does not
negate the Consignee's Obligations.

              (d) If there is a discrepancy between the statement provided by
Scotiabank and the agreed to terms of the purchase by the Consignee, as the
Consignee understands them to be, the Consignee shall forthwith notify
Scotiabank of such discrepancy. If such notification is not received by
Scotiabank within three (3) Business Days of receipt of the statement by the
Consignee then such statement shall be deemed to be correct.

                                       -9-
<Page>

          14. PAYMENTS. Payment of the consignment fee will be made by the
Consignee within ten (10) Business Days following the last day of each month and
on the last day of a Consignment term. Payment of the purchase price of the Gold
will be made on the Value Date. In either case, payment will be made in Dollars
in same day funds by any method mutually agreed upon from time to time. If an
amount payable hereunder is not paid when due, the Consignee will pay interest
on the unpaid amount, based on a 360 day year, calculated and payable upon
demand for the actual number of days elapsed and compounded monthly until paid
in full, at the Base Rate plus 2% per annum.

          15. REPORTS, ETC.

              (a) Within ten (10) days after the end of each month, the
Consignee will send a report in writing to Scotiabank setting out the quantity
and quality of the Gold held on consignment for Scotiabank as of the end of such
month and the location (whether at a Plant, an Approved Inventory Location or
otherwise) of all Gold (by ounces) consigned hereunder.

              (b) The Consignee will deliver a Borrowing Base Certificate (as
of the last Business Day of the previous week) to Scotiabank on the date hereof
and every two weeks thereafter on every other Monday (or if such date of
delivery is not a Business Day, the next succeeding Business Day) during the
term of this Agreement.

              (c) The Consignee will deliver to Scotiabank its and the
Guarantor's quarterly financial statements within forty-five (45) days after the
end of each of such party's first three fiscal quarters and their respective
annual audited financial statements within ninety (90) days after the end of
each fiscal year of such party and any other information as Scotiabank may
reasonably request from time to time.

          16. PERIOD OF AGREEMENT.

              (a) On the relevant Consignment Maturity Date, the Consignee
shall, if it has not already done so, re-deliver to Scotiabank all Gold which is
held for Scotiabank by the Consignee under the relevant terminated Consignments
by either physically delivering the Gold to Scotiabank, or by purchasing the
Gold from Scotiabank as provided for in paragraphs 10 and 11 hereof and shall
pay to Scotiabank all applicable amounts due and accruing to it hereunder. If an
Event of Default should occur prior to the Consignment Maturity Date or prior to
any other applicable date of termination for a Consignment, Scotiabank's right
to terminate this Agreement and make demand hereunder shall take effect
immediately.

              (b) If the Taylor-CBI Credit Agreement is terminated and the
obligations of CBI thereunder are paid in full, then the Consignee and
Scotiabank agree to amend this Agreement to provide for an uncommitted facility
without any commitment fee.

          17. EVENTS OF DEFAULT. Upon the occurrence of any one of the following
events of default (an "Event of Default"):

              (a) failure by the Consignee to deliver any amount of Gold or pay
any purchase price, consignment fees, interest or other amounts in respect of
any Gold held on

                                      -10-
<Page>

consignment hereunder or purchased from Scotiabank, within three (3) Business
Days of the date on which it is due hereunder;

              (b) failure by the Consignee to restore the Commitment Amount as
required by paragraph 2;

              (c) the Consignee or the Guarantor makes any representation or
warranty hereunder which is incorrect in any material respect; or breaches any
covenant hereunder or under any other Consignment Document or fails to perform
or observe, in any material respect, any other term or provision contained in
this Agreement or under any other Consignment Document and any such breach of
covenant or failure to perform or observe shall remain unremedied for ten (10)
days after written notice thereof has been given by Scotiabank to the Consignee
in the manner provided for in paragraph 23 hereof;

              (d) any bankruptcy, reorganization, arrangement, insolvency or
liquidation proceedings, or any other proceedings for the relief of debtors
and/or creditors are instituted by or against the Consignee or the Guarantor,
and, in the case of any such proceeding instituted against the Consignee or the
Guarantor (but not instituted by such party), any such proceeding shall remain
undismissed, or unstayed for a period of seventy-five (75) days or any of the
actions sought in such proceeding (including the entry of an order for relief
against it or the appointment of a receiver, trustee, custodian or other similar
official for it or for any substantial part of its property) shall occur;

              (e) an order is made or an effective resolution passed for the
winding-up or liquidation of the Consignee or the Guarantor; or a secured party
takes possession of all or any material part of the undertaking, property or
assets of the Consignee or the Guarantor; or the Consignee or the Guarantor has
a distress, execution, attachment, sequestration or other legal process levied,
enforced or sued on or against all or substantially all of its undertaking,
property or assets and such secured party maintains possession, or any such
process is not dismissed, discharged, stayed or restrained, in each case within
seventy-five (75) days thereafter;

              (f) subject to the provisions contained in Section 3 of the
Intercreditor Agreement, the Consignee or the Guarantor admits its inability to
pay its debts generally; or the Consignee or the Guarantor fails to pay any of
its indebtedness in an aggregate amount of not less than $5,000,000 when due and
such failure continues after any applicable grace period specified in an
agreement or instrument relating to such indebtedness;

              (g) subject to the provisions contained in Section 3 of the
Intercreditor Agreement, the Consignee or the Guarantor permits any default
under any agreement or instrument relating to its indebtedness, or any other
event, to occur and continue after any applicable grace period specified in such
agreement or instrument and the effect of such default or event is to
accelerate, or to permit the acceleration of, the maturity of indebtedness in an
aggregate amount of not less than $5,000,000;

              (h) the Consignee or the Guarantor denies, to any extent, its
respective obligations under the Guaranty or any other Consignment Document or
claims the Guaranty or any other Consignment Document to be invalid or withdrawn
in whole or in part; or the

                                      -11-
<Page>

Guaranty is determined to be invalid in whole or in part by a court or other
judicial entity, or is invalidated in whole or in part by any Act, regulation or
governmental action; or the Consignee or the Guarantor breaches any of its
covenants as contained in the Guaranty or any other Consignment Document and
such breach is not remedied or waived within 10 days of such breach, or makes
any representation or warranty as contained in the Guaranty or any other
Consignment Document which is incorrect in any material respect; or

              (i) subject to the provisions contained in Section 3 of the
Intercreditor Agreement, any Event of Default under and as defined in the
Taylor-CBI Credit Agreement occurs and is continuing;

then Scotiabank may terminate the Commitment and accelerate the Consignment
Maturity Date and, upon making a demand in writing upon the Consignee, will
become entitled to have the Consignee deliver to Scotiabank forthwith all Gold
held by the Consignee on consignment for Scotiabank hereunder and shall be
entitled to receive payment forthwith from the Consignee of all amounts due and
accruing to Scotiabank hereunder and under the other Consignment Documents.
Delivery of such Gold shall be made by either physically delivering the Gold to
Scotiabank or by paying to Scotiabank the spot value of the Gold then held by
the Consignee, as determined by Scotiabank, as of the date and time of
termination and/or acceleration (as applicable), and by so paying such amount,
the Consignee shall be deemed to have purchased the Gold which it was required
to re-deliver to Scotiabank. If the Consignee fails to immediately deliver to
Scotiabank all such Gold held on consignment hereunder or fails to immediately
pay to Scotiabank all other amounts due to it hereunder, Scotiabank may proceed
to take such steps as it deems fit, including realizing upon any security it
holds in that respect.

          18. AGREEMENT EFFECTIVENESS. The agreement of Scotiabank to make the
initial consignment of Gold shall be subject to the prior or concurrent
satisfaction of each of the conditions precedent set forth below:

              (a) the delivery of resolutions of the Board of Directors of the
Consignee and the Guarantor then in full force and effect authorizing the
execution, delivery and performance of this Agreement and each other document to
be executed by it hereunder;

              (b) the delivery of true and complete copies of the Organic
Documents of the Consignee and the Guarantor;

              (c) the delivery of the incumbency and signatures of the officers
of the Consignee and the Guarantor authorized to act with respect to this
Agreement and each other document executed by it;

              (d) the delivery of acknowledgment copies (or other evidence
satisfactory to Scotiabank) of properly filed Uniform Commercial Code financing
statements (Form UCC-1) dated a date reasonably near to the date hereof, naming
Commemorative Brands, Inc., as the consignee and The Bank of Nova Scotia as the
consignor or other similar instruments or documents, flied under the Uniform
Commercial Code of all jurisdictions as may be necessary or, in the opinion of
Scotiabank, desirable to perfect the interest of Scotiabank pursuant to the
terms of this Agreement.

                                      -12-
<Page>

              (e) the delivery of executed copies of proper Uniform Commercial
Code Form UCC-3 amendment and/or termination statements, if any, necessary to
assign or terminate all Liens and other rights of any Person in any Collateral
previously granted by the Consignee to Scotiabank;

              (f) the delivery of certified copies of Uniform Commercial Code
Requests for Information or Copies (Form UCC-1), or a similar search report
certified by a party acceptable to Scotiabank, dated a date reasonably near to
the date hereof, listing all effective financing statements which name the
Consignee (under its trade names, present name and any previous names) as the
debtor and which are filed in the jurisdictions in which filings were made
pursuant to CLAUSE (D) above, together with copies of such financing statements
(none of which shall cover any Collateral);

              (g) the delivery of the opinion of Schulte Roth & Zabel LLP
counsel for the Consignee and Guarantor in form and substance acceptable to
Scotiabank;

              (h) the delivery of insurance certificates in form and substance
reasonably acceptable to Scotiabank and showing Heller Financial Inc. as loss
payee and as an additional insured; and

              (i) the delivery of the Intercreditor Agreement and the
satisfaction or waiver of the conditions set forth in Section 7.1 of the
Taylor-CBI Credit Agreement and the concurrent funding of the initial loans
thereunder.

          19. ALL DELIVERIES UNDER CONSIGNMENT. The obligation of Scotiabank to
deliver any Gold on the occasion of any consignment (including the initial
consignment) to the Consignee and the requirement that Scotiabank continue to
consign to the Consignee any previously consigned Gold subject to a maturing
term of consignment (upon the occasion of the expiration of such term) is
subject to satisfaction of each of the conditions precedent set forth in this
paragraph 19:

              (a) COMPLIANCE WITH WARRANTIES, NO DEFAULT, ETC. Both before and
after giving effect to the delivery of Gold requested to be held under
consignment hereunder, the following statements shall be true and correct: (i)
the representations and warranties set forth in this Agreement and each other
Consignment Document shall be true and correct in all material respects with the
same effect as if then made (unless stated to relate solely to an earlier date,
in which case such representations and warranties shall be true and correct as
of such earlier date); (ii) except as disclosed by the Consignee to Scotiabank
on the date hereof, (A) no litigation, arbitration or governmental investigation
or proceeding shall be pending or, to the knowledge of the Consignee, threatened
against the Guarantor, the Consignee or any of its subsidiaries which may
reasonably be expected to materially adversely affect the Consignee's, or the
Consignee and its Subsidiaries' taken as a whole, business, operations, assets,
revenues, properties or prospects; and (B) no development shall have occurred in
any litigation, arbitration or governmental investigation or proceeding
disclosed by the Consignee to Scotiabank on the date hereof which may reasonably
be expected to materially adversely affect the business, operations, assets,
revenues, properties or prospects of the Guarantor, the Consignee or the
Consignee and its subsidiaries, taken as a whole;

                                      -13-
<Page>

              (b) there shall not be any pending or, to the knowledge of the
Consignee, threatened, litigation, arbitration or governmental investigation or
proceeding which purports to affect the legality, validity or enforceability of
this Agreement or any other Consignment Document;

              (c) there is sufficient availability under paragraph 1, and a
sufficient Commitment under paragraph 2, to make the requested consignment of
Gold;

              (d) all documents executed or submitted pursuant hereto by or on
behalf of the Consignee in connection with such consignment (or continuation, as
the case may be) shall be satisfactory in form and substance to Scotiabank and
its counsel; Scotiabank and its counsel shall have received all information,
approvals, opinions, documents or instruments as Scotiabank or its counsel may
reasonably request;

              (e) no Event of Default (nor any event which with the passage of
time or the giving of notice, or both, would become an Event of Default) shall
have then occurred and be continuing, and neither the Guarantor, the Consignee
nor any of its subsidiaries shall be in material violation of any law or
governmental regulation or court order or decree the violation of which would
have a material adverse effect on the business, operations, assets, revenues,
properties or prospects of the Guarantor, the Consignee or the Consignee and its
subsidiaries, taken as a whole; and

              (f) Scotiabank shall have received a Consignment Request for such
Consignment. Each of the delivery of a Consignment Request and the acceptance by
the Consignee of any Gold to be held by it under consignment shall constitute a
representation and warranty by the Consignee to Scotiabank that on the date of
such consignment or extension of term (both immediately before and after giving
effect thereto) the statements made in CLAUSES (a), (b), (c), (d) and (e) of
this paragraph 19 are true and correct.

          20. AUTHORIZED REPRESENTATIVES. Scotiabank will, from time to time,
provide the Consignee with the names and specimen signatures of two or more
persons who are to be its authorized officers for the purposes hereof.

          21. REPRESENTATIONS OF THE CONSIGNEE. The Consignee hereby represents
and warrants to Scotiabank that: (a) it has full corporate power and authority
to purchase Gold from Scotiabank and to receive and hold Gold for Scotiabank on
the terms and conditions contained herein; (b) it has obtained all necessary
governmental and other approvals, if any, to receive and hold and purchase Gold;
(c) this Agreement has been duly authorized by all necessary corporate action;
(d) the execution, delivery and performance of this Agreement by the Consignee
will not result in the breach of its Organic Documents or a violation of or
default under any contract or agreement to which the Consignee or its properties
is bound; and (e) when executed and delivered by the Consignee, this Agreement
will constitute the legal, valid and binding obligation of the Consignee,
enforceable in accordance with the terms hereof, except as enforceability is
limited by bankruptcy, insolvency, reorganization, moratorium or other laws
relating to or affecting generally the enforcement of creditors' rights and
except to the extent that availability of the remedy of specific performance or
injunctive relief and other equitable remedies.

                                      -14-
<Page>

          22. REPRESENTATIONS OF SCOTIABANK. Scotiabank hereby represents and
warrants to the Consignee that it shall have title free and clear of any
encumbrance to all Gold to be delivered to the Consignee under this Agreement,
and that it has full power and authority to deliver and sell Gold to the
Consignee on the terms and conditions contained herein.

          23. COVENANTS OF THE CONSIGNEE.

              (a) RECORDS: The Consignee shall maintain at its principal place
of business records reasonably satisfactory to Scotiabank with respect to the
Gold delivered by Scotiabank hereunder, and shall permit an authorized officer
of Scotiabank, or a representative not necessarily in Scotiabank's employ, at
the Consignee's expense (up to $45,000 per year), to examine such records at any
reasonable time during normal business hours, at reasonable intervals and
without prior notice.

              (b) TAXES: The Consignee shall pay all taxes, customs duties,
assessments and charges lawfully levied, assessed or imposed in respect of the
Gold held by the Consignee for Scotiabank hereunder or upon the sale of such
Gold by Scotiabank to the Consignee, except any tax in respect of the income of
Scotiabank.

               All payments by the Consignee shall be made without set-off or
counterclaim and free and clear of any taxes (including any value added tax),
levies, duties, charges, fees or deductions for withholdings whatsoever.

               If, as a result of any requirement, it should be necessary for
the Consignee to deduct or withhold any amount from any payment hereunder, then
the Consignee shall make an additional payment so that the amount received by
Scotiabank after such deduction or withholding equals the amount that would have
been received by Scotiabank if there had been no such deduction or withholding
requirement.

               Evidence satisfactory to Scotiabank of the payment of any tax,
etc. referred to in this paragraph will, upon the request of Scotiabank made
from time to time, be provided by the Consignee to Scotiabank.

              (c) OBSERVE LAWS: The Consignee shall duly observe and conform in
all material respects to all valid requirements of any Governmental Authority
relative to the holding of Gold by the Consignee for Scotiabank hereunder.

              (d) The Consignee agrees that it will at all times cause all Gold
held on consignment hereunder and not sold to a customer of the Consignee to be
located only (i) at the Plants or the Approved Inventory Locations, (ii) in
transit between the Plants or the Approved Inventory Locations, (iii) with its
salesmen, college book stores or jewelry stores as samples, and/or (iv) in
transit to Scotiabank; PROVIDED, HOWEVER, that no sale to any customer of the
Consignee shall be made unless the Consignee shall have first either purchased
or returned a like amount of Gold to Scotiabank pursuant to the terms of this
Agreement. The Consignee further agrees that except for Gold (under and as
defined in this Agreement), no other Gold that is not owned by the Consignor
will be kept in a Plant or an Approved Inventory Location. In any event, if any
Gold (other than Gold (under and as defined in this Agreement), Processed Gold
owned by the Consignee and Processed Gold to be returned to the owner thereof)
shall at any

                                      -15-
<Page>

time be located at a Plant or an Approved Inventory Location, the Consignee
agrees that such Gold shall be transferred (by book entry or otherwise) as soon
as practicable (and in any event no later than the next Business Day) to another
facility of the Consignee's. The Consignee shall also be permitted to accept
returns from its customers containing Gold for repair, replacement, restyling
etc. without being in violation of this Agreement.

              (e) The Consignee agrees that it shall use the Gold held on
consignment pursuant to the terms of this Agreement only in connection with the
completion of customer orders in the ordinary course of business at the Plants
or the Approved Inventory Locations.

              (f) The Consignee agrees that it shall, within 20 days after the
date hereof, use reasonable efforts to cause the delivery of acknowledgment
copies (or other evidence satisfactory to Scotiabank) of properly filed Uniform
Commercial Code financing statements (Form UCC-1) dated a date reasonably near
to the date hereof, (1) naming Commemorative Brands, Inc. as the consignee and
The Bank of Nova Scotia as the Consignor, or other similar instruments or
documents, filed under the Uniform Commercial Code in jurisdictions to be agreed
by the Consignee and Scotiabank for Gold located with the Consignee's salesmen,
college book stores or jewelry stores as samples, and (ii) naming Commemorative
Brands, Inc., as the consignor and The Bank of Nova Scotia as the assignee of
the consignor and as consignees the various operators of the Approved Inventory
Locations (but limited to Richards and West, AuraFin, and Traditional Heritage
and those that are refiners) or other similar instruments or documents, filed
under the Uniform Commercial Code of all jurisdictions as may be necessary or,
in the opinion of Scotiabank, desirable to perfect the interest of Scotiabank
pursuant to the terms of this Agreement.

              (g) The Consignee agrees that it will not permit to be located at
any of (i) the OK Casting Approved Inventory Location, (ii) the Durhams Approved
Inventory Location or (iii) any other Approved Inventory Location located in a
jurisdiction in which Scotiabank has not filed UCC-1 financing statements of the
type referred to in clause (f)(ii) above with respect to the Collateral, Gold
with a Dollar Value in excess of $100,000 at any one Approved Inventory Location
or $500,000 at all such Approved Inventory Locations.

          24. NOTICES. Any notice in writing may be given by being delivered by
hand or by being sent by authenticated telex, telecopied transmission in the
case of the Consignee to:

              Commemorative Brands, Inc.
              7211 Circle S Rd.
              Austin, TX 78745
              Attention:Clyde W. Walls, Treasurer
              Facsimile No.: (512) 443-5213

                                      -16-
<Page>

              WITH A COPY TO:

              Schulte Roth & Zabel LLP
              900 Third Avenue
              New York, NY 10022
              Attention: Marc Weingarten, Esq.
              Facsimile No.: (212) 593-5955

              AND IN THE CASE OF SCOTIABANK TO:

              The Bank of Nova Scotia
              c/o Scotia Mocatta
              One Liberty Plaza
              New York, New York 10006
              Attention: Director of Operations
              Facsimile No.: (212) 912-8503

              WITH A COPY TO:

              Mayer, Brown & Platt
              190 S. LaSalle Street
              Chicago, Illinois 60603
              Attention: J. Thomas Mullen, Esq.
              Facsimile No.: (312) 701-7711

or to such other address, telex or telecopier number as may hereafter be
notified in writing by the Consignee or Scotiabank, respectively and any such
notice, if given by band, authenticated telex or telecopied transmission will be
deemed to have been given when delivered or sent.

          If the Consignee or any of its agents or employees makes an oral
request or gives an oral notice hereunder to Scotiabank, whether to an agent or
an employee of Scotiabank then, until it has received notice in writing by the
Consignee, Scotiabank shall be entitled to rely on its dealings with the
Consignee upon those oral instructions whether by telephone or otherwise. In so
relying, neither Scotiabank nor any agent or employee shall incur any liability
to the Consignee in acting upon such oral instructions, contemplated hereby and
which Scotiabank believes in good faith to have been given by a person
authorized by the Consignee to effect any applicable transaction. In the event
there is a discrepancy between the oral instructions and any written
confirmation in respect thereof, or in the absence of receiving confirmation,
the oral instructions as understood by Scotiabank will be deemed to be the
controlling instructions.

          25. DELIVERIES BY CONSIGNEE. All deliveries of Gold to be made
hereunder by the Consignee to Scotiabank will be free of all Liens, and made in
accordance with the directions of Scotiabank or, in the absence of such
directions, in a commercially acceptable manner to Scotiabank at the address of
Scotiabank specified in paragraph 24 above. The Consignee shall bear the cost of
such delivery and shall bear the risk of loss of or damage to such Gold until
delivery is made by it to Scotiabank.

                                      -17-
<Page>

          26. INDEMNITY PROVISIONS. If the introduction of or any change in or
in the interpretation of, or any change in its application to the Consignee of,
any law or any regulation or guideline issued by any central bank or other
Governmental Authority (whether or not having the force of law), including any
reserve or special deposit requirement or any tax (other than tax on
Scotiabank's general income), or any capital requirement, has due to
Scotiabank's compliance the effect, directly or indirectly, of (i) increasing
the cost to Scotiabank of performing its obligations hereunder; (ii) reducing
any amount received or receivable by Scotiabank hereunder or its effective
return hereunder or on its capital; or (iii) causing Scotiabank to make any
payment or to forgo any return based on any amount received or receivable by
Scotiabank hereunder, then upon demand from time to time the Consignee shall pay
such amount as shall compensate Scotiabank for any such cost, reduction, payment
or forgone return. The Consignee shall further indemnify Scotiabank for all
costs, losses and expenses incurred by Scotiabank in connection with (i) the
early termination of any Consignment term, (ii) the failure of the Consignee for
any reason to return the required amount of Gold back to Scotiabank on the dates
required pursuant to the terms of this Agreement, except to the extent the
Consignee has purchased such Gold from Scotiabank in accordance with the terms
hereof or (iii) the return of any Gold to Scotiabank on other than the last day
of the Consignment term applicable to such Gold; and agrees that Scotiabank
shall have no liability to the Consignee for any reason in respect of this
facility other than on account of Scotiabank's gross negligence or willful
misconduct. Any certificate of Scotiabank in respect of the foregoing will be
conclusive and binding upon the Consignee, except for manifest error, PROVIDED
that Scotiabank shall determine the amounts owing to it in good faith using any
reasonable averaging and attribution methods.

          27. ASSIGNMENT. The Consignee may not assign or transfer any of its
rights or obligations hereunder without the prior written consent of Scotiabank.
Scotiabank may at any time assign or transfer all or any of its rights and/or
obligations hereunder, provided such assignment or transfer is to its successors
in title or to a wholly-owned subsidiary or a branch or office of Scotiabank and
each such assignee is entitled to rely on the provisions contained in paragraph
25.

          28. LAWS. THIS AGREEMENT WILL BE INTERPRETED AND GOVERNED IN ALL
RESPECT BY THE INTERNAL LAWS OF THE STATE OF NEW YORK.

          29. AMENDMENTS. This Agreement constitutes the entire Agreement
between the Consignee and Scotiabank in respect of the subject matter hereof and
may only be amended by a document signed by the Consignee and Scotiabank.

          30. JUDGMENT CURRENCY. If any payment of a currency required hereunder
is required to be made in a currency of payment which is different from the
currency of exchange in the jurisdiction in which it is to be received, the
obligation of the payor to make payments in the currency of payment will not be
discharged or satisfied by any tender or recovery pursuant to any judgment
expressed or converted into the applicable currency of exchange of the
jurisdiction of the payment except to the extent such tender or recovery shall
result in the effective receipt (upon legal conversion from the applicable
currency of exchange to the required currency of payment at the spot buying rate
of Scotiabank of the currency of payment in the applicable currency of exchange
quoted by Scotiabank at the time of conversion and receipt of the funds) by

                                      -18-
<Page>

the payee of the full amount of such currency of payment as at the date when
such payment was due with interest to the date of such payment or, if greater,
on the date when payment is made. The obligation of the payor shall be
enforceable as an additional or alternative cause of action for the purpose of
recovery in the currency of exchange of the jurisdiction of the payment of the
amount (if any) by which such effective receipt shall fall short of the full
amount of such currency of payment and such right shall not be affected or
merged into any judgment obtained in the applicable currency of exchange.

          31. FORCE MAJEURE. If Scotiabank is prevented from or hindered in
making delivery of Gold or the making of delivery is delayed by reason of force
majeure (which shall be deemed for this purpose to include war, civil commotion,
act of terrorism, hijacking, strike, walkout, industrial dispute, fire,
explosion, storm, tempest, flood, act or omission of any Governmental Authority
or of a person or body for the time being exercising the power and authority of
such body (whether in Canada, New York, Texas or elsewhere) or any further cause
not within the direct control of Scotiabank) Scotiabank shall be under no
liability whatsoever in respect thereof and the time for delivery by Scotiabank
shall be extended for a period equal to that during which delivery is so
prevented, hindered or delayed; however, notwithstanding the foregoing,
Scotiabank may, if it so chooses, by notice in writing given to the Consignee,
advise that it will not make the delivery affected by the force majeure.

          Scotiabank shall not be liable for any loss arising on or in
connection with any lack of delivery of Gold to the Consignee hereunder as a
result of moratorium, currency restrictions or changes thereof and the Consignee
shall indemnify Scotiabank against any loss suffered as a result thereof.

          32. DETERMINATION. Scotiabank shall have the right to determine at any
time, and in its discretion (exercised in good faith as defined in Section 1-201
of the UCC), as to whether any event, circumstance, or thing envisaged in this
Agreement is or would be "material" or "adverse", as such terms are used herein.

          33. EXPENSES. The Consignee agrees to pay on demand all out-of-pocket
expenses of Scotiabank (including reasonable attorneys' fees), in connection
with (i) the negotiation, preparation, execution and delivery of this Agreement
and the other Consignment Documents, including any amendments, waivers,
consents, supplements or other modifications to this Agreement and the other
Consignment Documents as may from time to time hereafter be required, whether or
not the transactions contemplated hereby are consummated, (ii) the preparation
and review of the form of any document or instrument relevant to this Agreement
and the other Consignment Documents, (iii) the filing, recording, refilling or
recording of any Uniform Commercial Code financing statements relating thereto
and all amendments, supplements and modifications to any thereof and any and all
other documents or instruments of further assurance required to be filed or
recorded or refiled or rerecorded by the terms hereof; (iv) the exercise by
Scotiabank of its examination rights as set forth in and subject to paragraph
23(a) and (v) the administration and monitoring of this Agreement and the other
Consignment Documents, and compliance of the parties hereto with respect to the
terms hereof.

          34. SURVIVAL. The obligations of the Consignee under paragraphs 25,
26, 29 and 33 shall survive any termination of this Agreement, the payment in
full of all Obligations,

                                      -19-
<Page>

the return to the Scotiabank of all Gold and the termination of the Commitment.
The representations and warranties made by the Consignee in this Agreement and
in each other Consignment Document shall survive the execution and delivery of
this Agreement and each such other Consignment Document.

          35. SEVERABILITY. Any provision of this Agreement or any other
Consignment Document which is prohibited or unenforceable in any jurisdiction
shall, as to such provision and such jurisdiction, be ineffective to the extent
of such prohibition or unenforceability without invalidating the remaining
provisions of this Agreement or such other Consignment Document or affecting the
validity or enforceability of such provision in any other jurisdiction.

          36. EXECUTION IN COUNTERPARTS, EFFECTIVENESS, ETC. This Agreement may
be executed by the parties hereto in several counterparts, each of which shall
be deemed to be an original and all of which shall constitute together but one
and the same agreement. This Agreement shall become effective when counterparts
hereof executed on behalf of the Consignee and Scotiabank (or notice thereof
satisfactory to Scotiabank) shall have been received by Scotiabank and notice
thereof shall have been given by Scotiabank to the Consignee.

          37. FORUM SELECTION AND CONSENT TO JURISDICTION. ANY LITIGATION BASED
HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH, THIS AGREEMENT OR ANY
OTHER CONSIGNMENT DOCUMENT, OR ANY COURSE OF CONDUCT, COURSE OF DEALING,
STATEMENTS (WHETHER ORAL OR WRITTEN) OR ACTIONS OF SCOTIABANK OR THE CONSIGNEE
SHALL BE BROUGHT AND MAINTAINED EXCLUSIVELY IN THE COURTS OF THE CITY AND STATE
OF NEW YORK OR IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF
NEW YORK; PROVIDED, HOWEVER. THAT ANY SUIT SEEKING ENFORCEMENT AGAINST ANY
COLLATERAL OR OTHER PROPERTY MAY BE BROUGHT, AT SCOTIABANK'S OPTION, IN THE
COURTS OF ANY JURISDICTION WHERE SUCH COLLATERAL OR OTHER PROPERTY MAY BE FOUND.
THE CONSIGNEE HEREBY EXPRESSLY AND IRREVOCABLY SUBMITS, FOR ITSELF AND TO THE
EXTENT PERMITTED BY APPLICABLE LAW, ITS PROPERTY, TO THE JURISDICTION OF THE
COURTS OF THE CITY AND STATE OF NEW YORK AND OF THE UNITED STATES DISTRICT COURT
FOR THE SOUTHERN DISTRICT OF NEW YORK FOR THE PURPOSE OF ANY SUCH LITIGATION AS
SET FORTH ABOVE AND IRREVOCABLY AGREES TO BE BOUND BY ANY JUDGMENT RENDERED
THEREBY IN CONNECTION WITH SUCH LITIGATION. THE CONSIGNEE FURTHER IRREVOCABLY
CONSENTS TO THE SERVICE OF PROCESS BY REGISTERED MAIL, POSTAGE PREPAID, OR BY
PERSONAL SERVICE WITHIN OR WITHOUT THE STATE OF NEW YORK. THE CONSIGNEE HEREBY
EXPRESSLY AND IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY
OBJECTION WHICH IT MAY HAVE OR HEREAFTER MAY HAVE TO THE LAYING OF VENUE OF ANY
SUCH LITIGATION BROUGHT IN ANY SUCH COURT REFERRED TO ABOVE AND ANY CLAIM THAT
ANY SUCH LITIGATION HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. TO THE EXTENT
THAT THE CONSIGNEE HAS OR HEREAFTER MAY ACQUIRE ANY IMMUNITY FROM JURISDICTION
OF ANY COURT OR FROM ANY LEGAL PROCESS (WHETHER THROUGH SERVICE OR

                                      -20-
<Page>

NOTICE, ATTACHMENT PRIOR TO JUDGMENT, ATTACHMENT IN AID OF EXECUTION OR
OTHERWISE) WITH RESPECT TO ITSELF OR ITS PROPERTY, THE CONSIGNEE HEREBY
IRREVOCABLY WAIVES SUCH IMMUNITY IN RESPECT OF ITS OBLIGATIONS UNDER THIS
AGREEMENT AND THE OTHER CONSIGNMENT DOCUMENTS.

          38. WAIVER OF JURY TRIAL. SCOTIABANK AND THE CONSIGNEE HEREBY
KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE ANY RIGHTS THEY MAY HAVE TO A
TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON OR BASED, OR ARISING OUT
OF, UNDER, OR IN CONNECTION WITH, THIS AGREEMENT OR ANY OTHER CONSIGNMENT
DOCUMENT, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER ORAL
OR WRITTEN) OR ACTIONS OF SCOTIABANK OR THE CONSIGNEE. THE CONSIGNEE
ACKNOWLEDGES AND AGREES THAT IT HAS RECEIVED FULL AND SUFFICIENT CONSIDERATION
FOR THIS PROVISION (AND EACH OTHER PROVISION OF EACH OTHER CONSIGNMENT DOCUMENT
TO WHICH IT IS A PARTY) AND THAT THIS PROVISION IS A MATERIAL INDUCEMENT FOR
SCOTIABANK ENTERING INTO THIS AGREEMENT AND EACH SUCH OTHER CONSIGNMENT
DOCUMENT.

                                      -21-
<Page>

          If the foregoing terms and conditions are satisfactory, please so
indicate by executing on the enclosed copy of this Agreement the form of
acceptance and returning it to us on or before July 27, 2000, failing which this
offer will expire.

                                       Yours truly,

                                       THE BANK OF NOVA SCOTIA

                                       By: /s/ Joseph A. Lasiewski
                                           -------------------------------------
                                           Its: Director - Metals Operations

                                       By: /s/ Randy M. Weinerman
                                           -------------------------------------
                                           Its: Senior Manager

ACCEPTED:

Dated: July 27, 2000.

COMMEMORATIVE BRANDS, INC.

By: /s/ David B. Pittaway
    -----------------------------
    Name: David B. Pittaway
    Title: Vice President

                                      -22-
<Page>

                                    EXHIBIT A

                     PLANTS AND APPROVED INVENTORY LOCATIONS

                                     PLANTS

OWNED PROPERTY:

1. 7211 Circle S Road, Austin, TX

LEASED PROPERTY:

1. 7101 Intermodal Drive, Louisville, KY

2. 6404 Burleson Road, Suite 120, Austin, TX

3. 15 John Dietsch Boulevard, North Attleboro, MA

4. 4605 Osborn, El Paso, TX

                          APPROVED INVENTORY LOCATIONS

1. Richards and West, 1255 University Avenue, Rochester, NY; Contract
   Manufacturer

2. Stern Leach, 49 Pearl Street, Attleboro, MA; Refiner

3. Pease and Curren, 75 Pennsylvania Avenue, Worwick, RI; Refiner

4. Hereaus, 65 Euclid Avenue, Newark, NJ; Refiner

5. Metalor, 225 John Diestch Boulevard, North Attleboro, MA; Refiner

6. OK Casting, 3520 Charleston Road, Norman, OK; Contract Manufacturer

7. AuraFin, 770 International Parkway, Sunrise, FL; Contract Manufacturer

8. Traditional Heritage, 3051 Rd. 591, Ponce, PR; Contract Manufacturer

9. Dunhams, 7365 Remeon, Suite 8204, El Paso, TX; Contract Manufacturer

                                       A-1
<Page>

                                    EXHIBIT B

                           FORM OF CONSIGNMENT REQUEST

The Bank of Nova Scotia,
as Consignor
One Liberty Plaza
New York, New York 10006
Attention: Director of Operations

          Re:   COMMEMORATIVE BRANDS, INC.

Gentlemen and Ladies:

          This Consignment Request is delivered to you pursuant to paragraph
19(f) of the Letter Agreement for Fee Consignment and Purchase of Gold dated as
of July 27, 2000 (as amended, supplemented, amended and restated or otherwise
modified from time to time, the "Agreement"), between Commemorative Brands,
Inc., a Delaware corporation (the "Consignee") and The Bank of Nova Scotia
("Scotiabank"). Unless otherwise defined herein or the context otherwise
requires, terms used herein have the meanings provided in (or by reference in)
the Agreement.

          The Consignee hereby requests that Scotiabank make a consignment of
__________ troy ounces of Gold to the Consignee on _________ __, 200_ for a
Consignment term of ________ month(s) to be delivered to the [Plant][Approved
Inventory Location] located at ___________________________________. The proposed
Value Date is __________, 200__.

          The Consignee hereby certifies and warrants that both before and after
giving effect to the consignments requested HEREBY, all statements set forth in
clauses (a), (b), (c), (d) and (e) of paragraph 19 of the Agreement are true and
correct in all material respects, and all conditions to consignment in clauses
(a), (b), (c), (d) and (e) of such paragraph have been satisfied.

          The Consignee agrees that if prior to the time of the making of the
consignment requested hereby any matter certified to herein by it will not be
true and correct at such time as if then made, it will immediately so notify
Scotiabank. Except to the extent, if any, that prior to the time of the making
of the consignment requested hereby Scotiabank shall receive written notice to
the contrary from the Consignee, each matter certified to herein shall be deemed
once again to be certified as true and correct at the date of the making of such
consignment as if then made.

                                       B-1
<Page>

          The Consignee has caused this Consignment Request to be executed and
delivered, and the certification arid warranties contained herein to be made, by
its duly Authorized Officer this ____ day of _________________, 200__.

                                      COMMEMORATIVE BRANDS, INC.

                                      By:
                                          --------------------------------------
                                          Title:

                                       B-2
<Page>

                                    EXHIBIT C

                                FORM OF GUARANTY

                                    GUARANTY

          THIS GUARANTY dated as of July 27, 2000, is executed in favor of The
Bank of Nova Scotia ("Scotiabank").

                              W I T N E S S E T H:

          WHEREAS, Commemorative Brands, Inc. (the "Company") has entered into a
Letter Agreement for Fee Consignment and Purchase of Gold dated as of even date
herewith (as amended or otherwise modified from time to time, the "Consignment
Agreement"; capitalized terms used herein but not otherwise defined have the
respective meanings set forth in the Consignment Agreement) with Scotiabank
pursuant to which Scotiabank has agreed to deliver Gold to the Company on
consignment subject to the terms and conditions set forth therein.

          WHEREAS, the operations of the undersigned are integrated with those
of the Company to such an extent that the financial strength and flexibility of
the Company have a direct impact on the undersigned; and

          WHEREAS, the undersigned will benefit from the consignment of Gold to
the Company pursuant to the Consignment Agreement and is willing to guaranty the
Liabilities (as defined below) as hereinafter set forth;

          NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the undersigned hereby
unconditionally, as primary obligor and not merely as surety, guarantees the
full and prompt payment when due, whether by acceleration or otherwise, and at
all times thereafter, of all obligations (monetary or otherwise) of the Company
to Scotiabank, howsoever created, arising or evidenced, whether direct or
indirect, absolute or contingent, now or hereafter existing, or due or to become
due, which arise out of or in connection with the Consignment Agreement, any
other Consignment Document or any document or instrument executed in connection
therewith, in each case as the same may be amended, modified, extended or
renewed from time to time, and all costs and expenses paid or incurred by
Scotiabank in enforcing this Guaranty against the undersigned (all such
obligations, costs and expenses being herein collectively called the
"Liabilities"); PROVIDED, HOWEVER, that the liability of the undersigned
hereunder shall be limited to the maximum amount of the Liabilities which the
undersigned may guaranty without violating any fraudulent conveyance or
fraudulent transfer law.

          The undersigned agrees that, in the event of the dissolution or
insolvency of the Company or the undersigned, or the inability or failure of the
Company or the undersigned to pay debts as they become due, or an assignment by
the Company or the undersigned for the benefit of creditors, or the occurrence
of any other Event of Default (as defined in the Consignment Agreement) under
paragraphs 17(d) or 17(e) of the Consignment Agreement, and if such event shall
occur at a time when any of the Liabilities may not then be due and payable,

                                       C-1
<Page>

the undersigned will pay to Scotiabank forthwith the full amount which would be
payable hereunder by the undersigned if all Liabilities were then due and
payable.

          This Guaranty shall in all respects be a continuing, absolute and
unconditional guaranty, and shall remain in full force and effect
(notwithstanding, without limitation, the dissolution of the undersigned or that
at any time or from time to time no Liabilities are outstanding) until the
Commitment (as defined in the Consignment Agreement) has terminated and all
Liabilities have been paid in full.

          The undersigned further agrees that if at any time all or any part of
any payment theretofore applied by Scotiabank to any of the Liabilities is or
must be rescinded or returned by Scotiabank for any reason whatsoever
(including, without limitation, the insolvency, bankruptcy or reorganization of
the Company or the undersigned), such Liabilities shall, for the purposes of
this Guaranty, to the extent that such payment is or must be rescinded or
returned, be deemed to have continued in existence, notwithstanding such
application by Scotiabank, and this Guaranty shall continue to be effective or
be reinstated, as the case may be, as to such Liabilities, all as though such
application by Scotiabank had not been made.

          Scotiabank may, from time to time, at its sole discretion and without
notice to the undersigned, take any or all of the following actions: (a) retain
or obtain the primary or secondary obligation of any obligor or obligors, in
addition to the undersigned, with respect to any of the Liabilities, (b) extend
or renew any of the Liabilities for one or more periods (whether or not longer
than the original period), alter or exchange any of the Liabilities, or release
or compromise any obligation of the undersigned hereunder or any obligation of
any nature of any other obligor with respect to any of the Liabilities, (c)
release its security interest in, or surrender, release or permit any
substitution or exchange for, all or any part of any property securing any of
the Liabilities or any obligation hereunder, or extend or renew for one or more
periods (whether or not longer than the original period) or release, compromise,
alter or exchange any obligations of any nature of any obligor with respect to
any such property, and (d) resort to the undersigned for payment of any of the
Liabilities when due, whether or not Scotiabank shall have resorted to any
property securing any of the Liabilities or any obligation hereunder or shall
have proceeded against any other obligor primarily or secondarily obligated with
respect to any of the Liabilities.

          Notwithstanding any payment made by or for the account of the
undersigned pursuant to this Guaranty, the undersigned shall not be subrogated
to any rights of Scotiabank until such time as this Guaranty shall have been
discontinued and Scotiabank shall have received payment of the full amount of
all liabilities of the undersigned hereunder.

          The undersigned hereby expressly waives: (a) notice of the acceptance
by Scotiabank of this Guaranty, (b) notice of the existence or creation or
non-payment of all or any of the Liabilities, (c) presentment, demand, notice of
dishonor, protest, and all other notices whatsoever, and (d) all diligence in
collection or protection of or realization upon any Liabilities or any security
for or guaranty of any Liabilities.

          The creation or existence from time to time of additional Liabilities
to Scotiabank is hereby authorized, without notice to the undersigned, and shall
in no way affect or impair the rights of Scotiabank or the obligations of the
undersigned under this Guaranty.

                                       C-2
<Page>

          No delay on the part of Scotiabank in the exercise of any right or
remedy shall operate as a waiver thereof, and no single or partial exercise by
Scotiabank of any right or remedy shall preclude other or further exercise
thereof or the exercise of any other right or remedy; nor shall any modification
or waiver of any provision of this Guaranty be binding upon Scotiabank except as
expressly set forth in a writing duly signed and delivered on behalf of
Scotiabank. No action of Scotiabank permitted hereunder shall in any way affect
or impair the rights of Scotiabank or the obligations of the undersigned under
this Guaranty. For purposes of this Guaranty, Liabilities shall include all
obligations of the Company to Scotiabank arising under or in connection with the
Consignment Agreement or any other Consignment Document, notwithstanding any
right or power of the Company or anyone else to assert any claim or defense as
to the invalidity or unenforceability of any obligation, and no such claim or
defense shall affect or impair the obligations of the undersigned hereunder.

          Pursuant to the Consignment Agreement, (a) this Guaranty has been
delivered to Scotiabank and (b) Scotiabank has been authorized to enforce this
Guaranty on behalf of itself. All payments by the undersigned pursuant to this
Guaranty shall be made to Scotiabank.

          This Guaranty shall be binding upon the undersigned and the successors
and assigns of the undersigned; and to the extent that the Company or the
undersigned is either a partnership or a corporation, all references herein to
the Company and to the undersigned, respectively, shall be deemed to include any
successor or successors, whether immediate or remote, to such partnership or
corporation.

          This Guaranty shall be construed in accordance with and governed by
the internal laws of the State of New York. Wherever possible each provision of
this Guaranty shall be interpreted in such manner as to be effective and valid
under applicable law, but if any provision of this Guaranty shall be prohibited
by or invalid under such law, such provision shall be ineffective to the extent
of such prohibition or invalidity, without invalidating the remainder of such
provision or the remaining provisions of this Guaranty.

          This Guaranty may be executed in any number of counterparts, and each
such counterpart shall be deemed to be an original but all such counterparts
shall together constitute one and the same Guaranty.

          ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER OR IN CONNECTION
WITH THIS GUARANTY OR ANY OTHER CONSIGNMENT DOCUMENT SHALL BE BROUGHT AND
MAINTAINED EXCLUSIVELY IN THE COURTS OF THE STATE OF NEW YORK OR IN THE UNITED
STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK; PROVIDED, HOWEVER,
THAT ANY SUIT SEEKING ENFORCEMENT AGAINST ANY COLLATERAL OR OTHER PROPERTY MAY
BE BROUGHT, AT SCOTIABANK'S OPTION, IN THE COURTS OF ANY JURISDICTION WHERE SUCH
COLLATERAL OR OTHER PROPERTY MAY BE FOUND. THE UNDERSIGNED HEREBY EXPRESSLY AND
IRREVOCABLY SUBMITS TO THE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK
AND OF THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK
FOR THE PURPOSE OF ANY SUCH LITIGATION AS SET FORTH ABOVE. THE UNDERSIGNED
FURTHER

                                       C-3
<Page>

IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS BY REGISTERED MAIL, POSTAGE
PREPAID, TO THE ADDRESS SET FORTH BELOW ITS SIGNATURE HERETO (OR SUCH OTHER
ADDRESS AS IT SHALL HAVE SPECIFIED IN WRITING TO SCOTIABANK AS ITS ADDRESS FOR
NOTICES HEREUNDER) OR BY PERSONAL SERVICE WITHIN OR WITHOUT THE STATE OF NEW
YORK. THE UNDERSIGNED HEREBY EXPRESSLY AND IRREVOCABLY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE
LAYING OF VENUE OF ANY SUCH LITIGATION BROUGHT IN ANY SUCH COURT REFERRED TO
ABOVE AND ANY CLAIM THAT ANY SUCH LITIGATION HAS BEEN BROUGHT IN AN INCONVENIENT
FORUM. TO THE EXTENT THAT THE UNDERSIGNED HAS OR HEREAFTER MAY ACQUIRE ANY
IMMUNITY FROM JURISDICTION OF ANY COURT OR FROM ANY LEGAL PROCESS (WHETHER
THROUGH SERVICE OR NOTICE, ATTACHMENT PRIOR TO JUDGMENT, ATTACHMENT IN AID OF
EXECUTION OR OTHERWISE) WITH RESPECT TO ITSELF OR ITS PROPERTY, THE UNDERSIGNED
HEREBY IRREVOCABLY WAIVES SUCH IMMUNITY IN RESPECT OF ITS OBLIGATIONS UNDER THIS
GUARANTY AND THE OTHER CONSIGNMENT DOCUMENTS.

          THE UNDERSIGNED, AND (BY ACCEPTING THE BENEFITS HEREOF) SCOTIABANK,
HEREBY WAIVES ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO
ENFORCE OR DEFEND ANY RIGHTS UNDER THIS GUARANTY, ANY OTHER CONSIGNMENT DOCUMENT
AND ANY AMENDMENT, INSTRUMENT, DOCUMENT OR AGREEMENT DELIVERED OR WHICH MAY IN
THE FUTURE BE DELIVERED IN CONNECTION HEREWITH OR THEREWITH OR ARISING FROM ANY
LENDING RELATIONSHIP EXISTING IN CONNECTION WITH ANY OF THE FOREGOING, AND
AGREES THAT ANY SUCH ACTION OR PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT
BEFORE A JURY.

                                       C-4
<Page>

          IN WITNESS WHEREOF, this Guaranty has been duly executed and delivered
as of the day and year first above written.

                                            COMMEMORATIVE BRANDS HOLDING CORP.

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

                                            Address:
                                            c/o Castle Harlan Partners III, L.P.
                                            150 East 58th Street
                                            37th Floor
                                            New York, New York 10155
                                            Attention: David B. Pittaway
                                            Facsimile: (212) 207-8042

                                       C-5
<Page>

                                    EXHIBIT D

                       FORM OF BORROWING BASE CERTIFICATE

The Bank of Nova Scotia
One Liberty Plaza
New York, New York 10006

         Re:   Letter Agreement for Fee Consignment and Purchase of Gold, dated
               as of July 27, 2000 (as amended or otherwise modified from time
               to time, the "Gold Cosignment Agreement") between Commemorative
               Brands, Inc. and The Bank of Nova Scotia

Ladies/Gentlemen:

          Terms to which meanings are ascribed in the Gold Consignment Agreement
are used in this Borrowing Base Certificate with such meanings.

          The Company hereby certifies that the Dollar Value of Gold held on
consignment under the Gold Consignment Agreement on ________________ did not
exceed the Borrowing Base. The related computations are set forth in SCHEDULE I
hereto.

          IN WITNESS WHEREOF, the Company has caused this Borrowing Base
Certificate to be executed and delivered by its chief financial officer on the
____ day of _______________, ___.

                                      COMMEMORATIVE BRANDS, INC.

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

                                       D-1
<Page>

                                   SCHEDULE I

                                       TO
                           BORROWING BASE CERTIFICATE

<Table>
<S>                                                                                     <C>                <C>
1.   GOLD AT THE COMPANY'S PLANTS

1A.  Dollar Value of Gold located at the Company's Plants                               $______

1B.  Percentage of the Dollar Value of Gold located at the Company's Plants                 90%
     included in Borrowing Base

1C.  Margined Dollar Value of Gold located at the Company's Plants (item 1A                                $______
     times item 1B)

2.   GOLD AT APPROVED INVENTORY LOCATIONS

2A.  Dollar Value of Gold located at Approved Inventory Locations                       $______

2B.  Percentage of the Dollar Value of Gold located at Approved Inventory                   70%
     Locations included in Borrowing Base

2C.  Margined Dollar Value of Gold located at Approved Inventory Locations (item                           $______
     2A times item 2B)

3.   GOLD WITH COMPANY'S SALESPERSONS

3A.  Dollar Value of Gold located with the Company's salespersons, bookstores           $______
     and jewelry stores as samples

3B.  Percentage of the Dollar Value of Gold located with the Company's                      40%
     salespersons, bookstores and jewelry stores as samples included in
     Borrowing Base

3C.  Margined Dollar Value of Gold located with the Company's salespersons,                                $______
     bookstores and jewelry stores as samples (the lesser of:  (i) item 3A times
     item 3B or (ii) $1,000,000)

4.   GOLD AT APPROVED REFINERS

4A.  Dollar Value of Gold located at approved refiners                                  $______

4B.  Percentage of the Dollar Value of Gold located at approved refiners                    70%
     included in Borrowing Base
</Table>

                                   Sched. I-1
<Page>

<Table>
<S>                                                                                     <C>                <C>
4C.  Margined Dollar Value of Gold located at approved refiners (item 4A times                             $______
     item 4B)

5.   GOLD IN STERN LEACH POOLED ACCOUNT

5A.  Dollar Value of Gold located in pooled account with Stern Leach                    $______

5B.  Percentage of the Dollar Value of Gold located in pooled account with Stern            90%
     Leach included in Borrowing Base

5C.  Margined Dollar Value of Gold located in pooled account with Stern Leach                              $______
     (item 5A times item 5(C)

6.   BORROWING BASE                                                                                        $______
     (item 1C + item 2C + item 3C + item 4C + item 5C)

7.   DOLLAR VALVE OF GOLD ON CONSIGNMENT                                                                   $______

8.   ACCOUNTS SUBJECT TO SECURITY INTEREST

8A.  Aggregate amount owing by the Company to Scotiabank for Gold purchased from        $______
     Scotiabank

83.  Accounts receivable of Account Debtors to the Company with respect to Gold         $______
     purchased from Scotiabank

8C.  Accounts receivable subject to lien of Scotiabank (lesser of item 8A and                              $______
     item 8B)
</Table>

                                   Sched. I-2
<Page>

          If the foregoing terms and conditions are satisfactory, please so
indicate by executing on the enclosed copy of this Agreement the form of
acceptance and returning it to us on or before July __, 2000, failing which this
offer will expire.

                                      Yours truly,

                                      THE BANK OF NOVA SCOTIA

                                      By: /s/ Joseph A. Lasiewski
                                          --------------------------------------
                                          Its: Director - Metals Operations

                                      By: /s/ Randy M. Weinerman
                                          --------------------------------------
                                          Its: Senior Manager

ACCEPTED

Dated:  July __, 2000.

COMMEMORATIVE BRANDS, INC.

By: /s/ David B. Pittaway
    -----------------------------
    Name: David B. Pittaway
    Title: Vice President

                                   Sched. I-3
<Page>

                          PLANTS AND APPROVED LOCATIONS
OWNED PROPERTY:

1.  7211 Circle S Road, Austin, TX

LEASED PROPERTY:

1.  7101 Intermodal Drive, Louisville, KY

2.  6404 Burleson Road, Suite 120, Austin, TX

3.  15 John Dietsch Boulevard, North Attleboro, MA

4.  4605 Osborn, El Paso, TX

5.  Fulton #820, Parque Industrial Antonio J. Bermudez, Juarez, Chihuahua,
    Mexico

MANUFACTURER AND REFINERS:

1.  Stem Leach, 49 Pearl Street, Attleboro, MA; Refiner

2.  Pease and Curren, 75 Pennsylvania Avenue, Worwick, RI; Refiner

3.  Hereaus, 65 Euclid Avenue, Newark, NJ; Refiner

4.  Handy & Harmon, 300 Rye Street, South Windsor, CT; Refiner

5.  Metalor, 225 John Diestch Boulevard, North Attleboro, MA; Refiner

6.  OK Casting, 3520 Charleston Road, Norman, OK; Contract Manufacturer

7.  AuraFin, 770 International Parkway, Sunrise, FL; Contract Manufacturer

8.  Traditional Heritage, 3051 Rd. 591, Ponce, PR; Contract Manufacturer

9.  Dunhams, 7365 Remeon, Suite 8204, El Paso, TX; Contract Manufacturer

10. Richards and West, 1255 University Avenue, Rochester, NY; Contract
    Manufacturer

11. Herbert Stephan, Hauptstrasse 282 Idar-Oberstein Germany; Contract
    Manufacturer (manufactures synthetic stones and holds approximately
    $80,000 worth of stones belonging to CBI)

                                   Sched. I-5<Page>

                                                                    EXHIBIT 10.3
    SUBSIDIARY PLEDGE AND SECURITY AGREEMENT, DATED AS OF FEBRUARY 20, 2002,
          MADE BY AMERICAN ACHIEVEMENT CORPORATION IN FAVOR OF THE BANK
             OF NOVA SCOTIA, AS ADMINISTRATIVE AGENT FOR EACH OF THE
                      SECURED PARTIES (AS DEFINED THEREIN)

<Page>

                    SUBSIDIARY PLEDGE AND SECURITY AGREEMENT

     This SUBSIDIARY PLEDGE AND SECURITY AGREEMENT, dated as of February 20,
2002 (as amended, supplemented, amended and restated or otherwise modified from
time to time, this "AGREEMENT"), is made by each Subsidiary that is a U.S.
Subsidiary of the Borrower (as defined below) from time to time a party to this
Agreement (each individually a "GRANTOR" and collectively, the "GRANTORS"), in
favor of THE BANK OF NOVA SCOTIA, as administrative agent (together with its
successor(s) thereto in such capacity, the "ADMINISTRATIVE AGENT") for each of
the Secured Parties.

                              W I T N E S S E T H :

     WHEREAS, pursuant to a Credit Agreement, dated as of the date hereof (as
amended, supplemented, amended and restated or otherwise modified from time to
time, the "CREDIT AGREEMENT"), among American Achievement Corporation (formerly
known as Commemorative Brands Holding Corp.), a Delaware corporation (the
"BORROWER"), the Lenders, General Electric Capital Corporation, as the
Syndication Agent for the Lenders, Bankers Trust Company, as the Documentation
Agent for the Lenders and the Administrative Agent, the Lenders and the Issuer
have extended Commitments to make Credit Extensions to the Borrower; and

     WHEREAS, as a condition precedent to the making of the Credit Extensions
under the Credit Agreement, each Grantor is required to execute and deliver this
Agreement;

     NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, each Grantor agrees, for the
benefit of each Secured Party, as follows:

                                   ARTICLE I
                                  DEFINITIONS

SECTION 1.1. CERTAIN TERMS. The following terms (whether or not underscored)
     when used in this Agreement, including its preamble and recitals, shall
     have the following meanings (such definitions to be equally applicable to
     the singular and plural forms thereof):

     "ADMINISTRATIVE AGENT" is defined in the PREAMBLE.

     "AGREEMENT" is defined in the PREAMBLE.

     "BORROWER" is defined in the FIRST RECITAL.

     "COLLATERAL" is defined in SECTION 2.1.

     "COLLATERAL ACCOUNT" is defined in CLAUSE (b) of SECTION 4.3.

     "COMPUTER HARDWARE AND SOFTWARE COLLATERAL" means:

                                       -2-
<Page>

(a)  all computer and other electronic data processing hardware, integrated
     computer systems, central processing units, memory units, display
     terminals, printers, features, computer elements, card readers, tape
     drives, hard and soft disk drives, cables, electrical supply hardware,
     generators, power equalizers, accessories and all peripheral devices and
     other related computer hardware;

(b)  all software programs (including both source code, object code and all
     related applications and data files), whether now owned, licensed or leased
     or hereafter acquired by a Grantor, designed for use on the computers and
     electronic data processing hardware described in CLAUSE (a) above;

(c)  all firmware associated therewith;

(d)  all documentation (including flow charts, logic diagrams, manuals, guides
     and specifications) with respect to such hardware, software and firmware
     described in the preceding CLAUSES (a) through (c); and

(e)  all rights with respect to all of the foregoing, including any and all
     copyrights, licenses, options, warranties, service contracts, program
     services, test rights, maintenance rights, support rights, improvement
     rights, renewal rights and indemnifications and any substitutions,
     replacements, additions or model conversions of any of the foregoing.

     "CONTROL AGREEMENT" means an agreement in form and substance satisfactory
to the Administrative Agent which provides for the Administrative Agent to have
"control" (as defined in Section 8-106 of the UCC, as such term relates to
investment property (other than certificated securities or commodity contracts),
or as used in Section 9-106 of the UCC, as such term relates to commodity
contracts).

     "COPYRIGHT COLLATERAL" means all copyrights of the Grantors, whether
statutory or common law, registered or unregistered and whether published or
unpublished, now or hereafter in force throughout the world including all of the
Grantors' rights, titles and interests in and to all copyrights registered in
the United States Copyright Office or anywhere else in the world, including the
copyrights referred to in ITEM A of SCHEDULE V hereto, and registrations and
recordings thereof and all applications for registration thereof, whether
pending or in preparation, all copyright licenses, including each copyright
license referred to in ITEM B of SCHEDULE V hereto, the right to sue for past,
present and future infringements of any of the foregoing, all rights
corresponding thereto, all extensions and renewals of any thereof and all
proceeds of the foregoing, including licenses, royalties, income, payments,
claims, damages and proceeds of suit.

     "CREDIT AGREEMENT" is defined in the FIRST RECITAL.

     "DISTRIBUTIONS" means all non-cash dividends paid on Capital Securities,
liquidating dividends paid on Capital Securities, Capital Securities resulting
from (or in connection with the exercise of) stock splits, reclassifications,
warrants, options, non-cash dividends, mergers and consolidations, and all other
distributions (whether similar or dissimilar to the foregoing) on or with
respect to any Capital Securities constituting Collateral, but excluding
Dividends.

                                       -3-
<Page>

     "DIVIDENDS" means cash dividends and cash distributions with respect to any
Capital Securities constituting Collateral that are not a liquidating dividend.

     "GOLD CONSIGNOR" means The Bank of Nova Scotia, in its capacity as
consignor under the Gold Consignment Agreement (or its Affiliates in such
capacity).

     "GRANTOR" and "GRANTORS" are defined in the PREAMBLE.

     "INTELLECTUAL PROPERTY COLLATERAL" means, collectively, the Computer
Hardware and Software Collateral, the Copyright Collateral, the Patent
Collateral, the Trademark Collateral and the Trade Secrets Collateral.

     "PATENT COLLATERAL" means:

          (a) all letters patent and applications for letters patent throughout
     the world, including all patent applications in preparation for filing and
     each patent and patent application referred to in ITEM A of SCHEDULE III
     hereto;

(b)  all reissues, divisions, continuations, continuations-in-part, extensions,
     renewals and reexaminations of any of the items described in CLAUSE (a);

(c)  all patent licenses, and other agreements providing a Grantor with the
     right to use any items of the type referred to in CLAUSES (a) and (b)
     above, including each patent license referred to in ITEM B of SCHEDULE III
     hereto; and

(d)  all proceeds of, and rights associated with, the foregoing (including
     license royalties and proceeds of infringement suits), the right to sue
     third parties for past, present or future infringements of any patent or
     patent application, and for breach or enforcement of any patent license.

     "PLEDGED NOTE" means a promissory note payable to the Grantor, in form and
substance satisfactory to the Administrative Agent, as amended, modified or
supplemented from time to time in accordance with CLAUSE (c) of SECTION 4.7,
together with any notes delivered in extension or renewal thereof or
substitution therefor.

     "RECEIVABLES" is defined in CLAUSE (c) of SECTION 2.1.

     "RELATED CONTRACTS" is defined in CLAUSE (c) of SECTION 2.1.

     "RESTRICTED ASSET" is defined in SECTION 2.1.

     "SECURED PARTY" means, collectively, (i) each of the Secured Parties, as
such term is defined in the Credit Agreement and (ii) the Gold Consignor.

     "SECURITIES ACT" is defined in CLAUSE (a) of SECTION 6.2.

     "SPECIFIED EVENT" means the occurrence and continuance of a Default under
clauses (a) through (d) of Section 8.1.9 of the Credit Agreement or any other
Event of Default.

                                       -4-
<Page>

     "TERMINATION DATE" means the date on which (i) all Obligations (other than
contingent indemnification obligations to the extent no unsatisfied claim giving
rise thereto has been asserted) have been paid in full in cash, all Letters of
Credit have been terminated or expired (or been Cash Collateralized), all Rate
Protection Agreements have been terminated and all Commitments shall have
terminated and (ii) all obligations (other than contingent indemnification
obligations to the extent no unsatisfied claim giving rise thereto has been
asserted) arising under or in connection with the Gold Consignment Agreement
(and related documents and instruments) have been paid in full in cash and all
commitments of the Gold Consignor thereunder have terminated.

     "TRADEMARK COLLATERAL" means:

          (e) (i) all trademarks, trade names, corporate names, company names,
     business names, fictitious business names, trade styles, service marks,
     certification marks, collective marks, logos and other source or business
     identifiers, and all goodwill of the business associated therewith, now
     existing or hereafter adopted or acquired including those referred to in
     ITEM A of SCHEDULE IV hereto, whether currently in use or not, all
     registrations and recordings thereof and all applications in connection
     therewith, whether pending or in preparation for filing, including
     registrations, recordings and applications in the United States Patent and
     Trademark Office or in any office or agency of the United States of America
     or any State thereof or any other country or political subdivision thereof
     or otherwise, and all common-law rights relating to the foregoing, and (ii)
     the right to obtain all reissues, extensions or renewals of the foregoing
     (collectively referred to as the "TRADEMARK");

(f)  all Trademark licenses for the grant by or to a Grantor of any right to use
     any Trademark, including each Trademark license referred to in ITEM B of
     SCHEDULE IV hereto;

(g)  all of the goodwill of the business connected with the use of, and
     symbolized by the items described in, clause (a) and, to the extent
     applicable clause (b);

(h)  the right to sue third parties for past, present and future infringements
     of any Trademark Collateral described in clause (a) and, to the extent
     applicable, clause (b); and

(i)  all proceeds of, and rights associated with, the foregoing, including any
     claim by a Grantor against third parties for past, present or future
     infringement or dilution of any Trademark, Trademark registration or
     Trademark license, or for any injury to the goodwill associated with the
     use of any such Trademark or for breach or enforcement of any Trademark
     license and all rights corresponding thereto throughout the world.

     "TRADE SECRETS COLLATERAL" means all common law and statutory trade secrets
and all other confidential, proprietary or useful information and all know-how
obtained by or used in or contemplated at any time for use in the business of a
Grantor (all of the foregoing being collectively called a "TRADE SECRET"),
whether or not such Trade Secret has been reduced to a writing or other tangible
form, including all documents and things embodying, incorporating or referring
in any way to such Trade Secret, all Trade Secret licenses, including each Trade
Secret license referred to in SCHEDULE VI hereto, and including the right to sue
for and to enjoin and to

                                       -5-
<Page>

collect damages for the actual or threatened misappropriation of any Trade
Secret and for the breach or enforcement of any such Trade Secret license.

SECTION 1.2. CREDIT AGREEMENT DEFINITIONS. Unless otherwise defined herein or
     the context otherwise requires, terms used in this Agreement, including its
     preamble, recitals, schedules and exhibits, have the meanings provided in
     the Credit Agreement.

SECTION 1.3. UCC DEFINITIONS. Unless otherwise defined herein or in the Credit
     Agreement or the context otherwise requires, terms for which meanings are
     provided in the UCC are used in this Agreement, including its preamble,
     recitals, schedules and exhibits, with such meanings.

                                   ARTICLE II
                                SECURITY INTEREST

SECTION 2.1. GRANT OF SECURITY INTEREST. Each Grantor hereby assigns, pledges,
     hypothecates, charges, mortgages, delivers, and transfers to the
     Administrative Agent, for its benefit and the ratable benefit of each other
     Secured Party, and hereby grants to the Administrative Agent, for its
     benefit and the ratable benefit of each other Secured Party, a continuing
     security interest in all assets, including without limitation all of the
     following property, whether tangible or intangible, whether now or
     hereafter existing, owned or acquired by such Grantor, and wherever located
     (the "COLLATERAL"):

(a)  (i) all investment property in which such Grantor has an interest
     (including the Capital Securities of each issuer of such Capital Securities
     described in SCHEDULE I hereto) and (ii) all other Capital Securities which
     are interests in limited liability companies or partnerships in which such
     Grantor has an interest (including the Capital Securities of each issuer of
     such Capital Securities described in ITEM A of SCHEDULE I hereto), in each
     case together with Dividends and Distributions payable in respect of the
     Collateral described in the foregoing CLAUSES (a)(i) and (a)(ii);

(b)  all goods, including all equipment (including any equipment that is or may
     constitute a fixture) and inventory in all of its forms of such Grantor;

(c)  all accounts, contracts, contract rights, chattel paper, documents,
     instruments, promissory notes (including Pledged Notes described in ITEM B
     of SCHEDULE I) and general intangibles (including tax refunds and all
     payment intangibles) of such Grantor, whether or not arising out of or in
     connection with the sale or lease of goods or the rendering of services,
     and all rights of such Grantor now or hereafter existing in and to all
     security agreements, guaranties, leases and other contracts securing or
     otherwise relating to any such accounts, contracts, contract rights,
     chattel paper, documents, instruments, promissory notes and general
     intangibles (all of the foregoing collectively referred to as the
     "RECEIVABLES", and any and all such security agreements, guaranties, leases
     and other contracts collectively referred to as the "RELATED CONTRACTS");

(d)  all Intellectual Property Collateral of such Grantor;

                                       -6-
<Page>

(e)  all deposit accounts (including the Collateral Account) of such Grantor and
     all cash, checks, drafts, notes, bills of exchange, money orders, other
     like instruments and all investment property held in the Collateral Account
     (or in any sub-account thereof) and all interest and earnings in respect
     thereof;

(f)  all of such Grantor's letter of credit rights;

(g)  all commercial tort claims in which such Grantor has rights (including as a
     plaintiff), as set forth on ITEM F of SCHEDULE II hereto;

(h)  all books, records, writings, data bases, information and other property
     relating to, used or useful in connection with, evidencing, embodying,
     incorporating or referring to, any of the foregoing in this Section;

(i)  all of such Grantor's other property and rights of every kind and
     description and interests therein; and

(j)  all products, offspring, rents, issues, profits, returns, income,
     supporting obligations and proceeds of and from any and all of the
     foregoing Collateral (including proceeds which constitute property of the
     types described in CLAUSES (a) through (i), and, to the extent not
     otherwise included, all payments under insurance (whether or not the
     Administrative Agent is the loss payee thereof), or any indemnity, warranty
     or guaranty, payable by reason of loss or damage to or otherwise with
     respect to any of the foregoing Collateral).

Notwithstanding the foregoing, "Collateral" shall not include (i) such Grantor's
real property leaseholds; (ii) any general intangibles or other rights arising
under any contracts, instruments, licenses or other documents as to which the
grant of a security interest would (A) constitute a violation of a valid and
enforceable restriction in favor of a third party on such grant, unless and
until any required consents shall have been obtained or (B) give any other party
to such contract, instrument, license or other document the right to terminate
its obligations thereunder (the "RESTRICTED ASSETS"), PROVIDED that this clause
shall not limit the grant of any security interest in any proceeds of any
Restricted Asset or any Restricted Asset to the extent that the UCC or any other
applicable law provides that such grant of security interest is effective
irrespective of any prohibitions to such grant provided in the underlying
contract, instrument, license or other document; and (iii) Capital Securities of
a Foreign Subsidiary in excess of 65% of the total combined voting power of all
Capital Securities of such Foreign Subsidiary (other than a Foreign Subsidiary
that (i) is treated as a partnership under the Code or (ii) is not treated as an
entity that is separate from such Grantor); PROVIDED, that, if any change in, or
the introduction, adoption, effectiveness, interpretation, reinterpretation or
phase in of, any law or regulation, directive or guidelines of any Governmental
Authority could reasonably be expected to reduce the amount of United States
federal income tax that would otherwise be payable by such Grantor if it pledged
more than 65% of such combined voting power, then the Administrative Agent or
the Required Lenders may require such Grantor to pledge more than 65% of the
Capital Securities of such Foreign Subsidiary.

SECTION 2.2. SECURITY FOR OBLIGATIONS. This Agreement and the Collateral in
     which the Administrative Agent for the benefit of the Secured Parties is
     granted a security interest

                                       -7-
<Page>

     hereunder by the Grantors secures the payment of all Obligations now or
     hereafter existing.

SECTION 2.3. GRANTORS REMAIN LIABLE. Anything herein to the contrary
notwithstanding

          (a) the Grantors will remain liable under the contracts and agreements
     included in the Collateral to the extent set forth therein, and will
     perform all of their duties and obligations under such contracts and
     agreements to the same extent as if this Agreement had not been executed;

(b)  the exercise by the Administrative Agent of any of its rights hereunder
     will not release any Grantor from any of its duties or obligations under
     any such contracts or agreements included in the Collateral; and

(c)  no Secured Party will have any obligation or liability (other than as a
     result of such Secured Party's gross negligence or willful misconduct)
     under any contracts or agreements included in the Collateral by reason of
     this Agreement, nor will any Secured Party be obligated to perform any of
     the obligations or duties of any Grantor thereunder or to take any action
     to collect or enforce any claim for payment assigned hereunder.

SECTION 2.4. DIVIDENDS ON PLEDGED SHARES. In the event that any Dividend with
     respect to any Capital Securities pledged hereunder is permitted to be paid
     (in accordance with Section 7.2.6 of the Credit Agreement), such Dividend
     or payment may be paid directly to the applicable Grantor. If any Dividend
     or payment is paid in contravention of Section 7.2.6 of the Credit
     Agreement, then such Grantor shall hold the same segregated and in trust
     for the Administrative Agent until paid to the Administrative Agent in
     accordance with SECTION 4.1.5 hereto.

SECTION 2.5. CBI SENIOR SUBORDINATED NOTES.

(a)  Notwithstanding any other provision in this Agreement to the contrary, the
     Administrative Agent shall not be entitled to exercise any rights or
     remedies under this Agreement against the CBI Senior Subordinated Notes
     purchased by Taylor Holding Co. on or around July 27, 2000 (collectively,
     the "PLEDGED CBI SENIOR SUBORDINATED NOTES"), unless and until an Event of
     Default has occurred and is continuing under Section 8.1.9 of the Credit
     Agreement (any such Event of Default is herein referred to as a "BANKRUPTCY
     EVENT OF DEFAULT") and if any such Bankruptcy Event of Default has occurred
     and is continuing, the only rights the Administrative Agent shall have with
     respect to the Pledged CBI Senior Subordinated Notes shall be to exercise
     voting rights pertaining to the Pledged CBI Senior Subordinated Notes (but
     not to assign such rights to vote) and collect payments owing thereon for
     application to the Obligations in accordance with SECTION 6.1 (but not the
     right to assign such rights to collect payment). It being understood that
     the Administrative Agent shall not be (x) entitled to exercise the
     aforementioned voting rights unless the then acting Administrative Agent
     was a party to the Credit Agreement as of the Closing Date or for at least
     six months prior to the occurrence of the Bankruptcy Event of Default and
     the Required Lenders directing the Administrative Agent to vote in the
     exercise of the aforementioned voting rights were a

                                       -8-
<Page>

     party to the Credit Agreement as of the Closing Date or for at least six
     months prior to the occurrence of the Bankruptcy Event of Default or (y)
     permitted to assign such voting rights or such collection rights except to
     a successor Administrative Agent under the Credit Agreement (bound as the
     Administrative Agent to the terms hereof). The Administrative Agent shall
     not assign, pledge, sell or otherwise transfer in any manner whatsoever the
     Pledged CBI Senior Subordinated Notes to any Person at any time for any
     reason. The Administrative Agent acknowledges and agrees that a breach of
     any of the covenants contained in this CLAUSE (a) will cause irreparable
     injury to the Obligors and that the Obligors have no adequate remedy at law
     in respect of such breaches and therefore agrees that such covenants of the
     Administrative Agent contained in this CLAUSE (a) shall be specifically
     enforceable against the Administrative Agent.

(b)  Taylor Holding Co. shall not assign, pledge (except in favor of the
     Administrative Agent), sell or otherwise transfer in any manner whatsoever
     the Pledged CBI Senior Subordinated Notes to any Person. Taylor Holding Co.
     acknowledges and agrees that a breach of the covenant contained in this
     CLAUSE (b) will cause irreparable injury to the Administrative Agent and
     the other Secured Parties and that the Administrative Agent has no adequate
     remedy at law in respect of such breaches and therefore agrees, without
     limiting the right of the Administrative Agent to seek and obtain specific
     performance of other obligations of any Obligor contained in this
     Agreement, that such covenant of Taylor Holding Co. contained in this
     CLAUSE (b) shall be specifically enforceable against Taylor Holding Co.

SECTION 2.6. POSTPONEMENT OF SUBROGATION. Each Grantor agrees that it will not
     exercise any rights which it may acquire by way of rights of subrogation
     under any Loan Document to which it is a party. No Grantor shall seek or be
     entitled to seek any contribution or reimbursement from any Obligor, in
     respect of any payment made under any Loan Document or otherwise, until
     following the Termination Date. Any amount paid to such Grantor on account
     of any such subrogation rights prior to the Termination Date shall be held
     in trust for the benefit of the Secured Parties and shall immediately be
     paid and turned over to the Administrative Agent for the benefit of the
     Secured Parties in the exact form received by such Grantor (duly endorsed
     in favor of the Administrative Agent, if required), to be credited and
     applied against the Obligations, whether matured or unmatured, in
     accordance with SECTION 6.1; PROVIDED that if such Grantor has made payment
     to the Secured Parties of all or any part of the Obligations and the
     Termination Date has occurred, then at such Grantor's request, the
     Administrative Agent (on behalf of the Secured Parties) will, at the
     expense of such Grantor, execute and deliver to such Grantor appropriate
     documents (without recourse and without representation or warranty)
     necessary to evidence the transfer by subrogation to such Grantor of an
     interest in the Obligations resulting from such payment. In furtherance of
     the foregoing, at all times prior to the Termination Date, such Grantor
     shall refrain from taking any action or commencing any proceeding against
     any Obligor (or its successors or assigns, whether in connection with a
     bankruptcy proceeding or otherwise) to recover any amounts in respect of
     payments made under this Agreement to any Secured Party.

                                       -9-
<Page>

                                  ARTICLE III
                         REPRESENTATIONS AND WARRANTIES

     In order to induce the Secured Parties (other than the Gold Consignor) to
enter into the Credit Agreement and make Credit Extensions thereunder, to induce
Secured Parties (other than the Gold Consignor) to enter into Rate Protection
Agreements, and to induce the Gold Consignor to continue its obligations under
the Gold Consignment Agreement, the Grantors represent and warrant to each
Secured Party as set forth below.

SECTION 3.1. AS TO CAPITAL SECURITIES OF THE SUBSIDIARIES. With respect to any
     Subsidiary of any Grantor that is

(a)  a corporation, business trust, joint stock company or similar Person, all
     Capital Securities issued by such Subsidiary are duly authorized and
     validly issued, fully paid and non-assessable, and represented by a
     certificate; and

(b)  a partnership or limited liability company, no Capital Securities issued by
     such Subsidiary (i) are dealt in or traded on securities exchanges or in
     securities markets, (ii) expressly provide that such Capital Securities are
     a security governed by Article 8 of the UCC, (iii) are held in a securities
     account or (iv) are represented by a certificate.

The percentage of the issued and outstanding Capital Securities of each
Subsidiary pledged by any Grantor hereunder as of the Closing Date is as set
forth on SCHEDULE I hereto.

SECTION 3.2. GRANTOR NAMES, ETC. Each Grantor's jurisdiction of incorporation is
     set forth on ITEM A of SCHEDULE II hereto. No Grantor has any trade names
     other than those set forth in ITEM A of SCHEDULE II hereto. During the four
     months preceding the date hereof, no Grantor has been known by any legal
     name different from the one set forth on the signature page hereto, nor has
     any Grantor been the subject of any merger or other corporate
     reorganization. During the four months preceding the date hereof, each
     Grantor's equipment and inventory (if any) has been located at the places
     set forth in ITEM B of SCHEDULE II hereto. The Grantors' federal taxpayer
     identification numbers and organizational identification numbers are (and,
     during the four months preceding the date hereof, no Grantor has had a
     federal taxpayer identification number or organizational identification
     number different from those) set forth in ITEM C of SCHEDULE II hereto. If
     the Collateral of any Grantor includes any inventory located in the State
     of California, such Grantor is not a "retail merchant" within the meaning
     of Section 9102 of the California UCC. No Grantor is a party to any
     federal, state or local government contract which is part of the Collateral
     except as set forth in ITEM D of SCHEDULE II hereto. No Grantor maintains
     any deposit accounts with any Person except as set forth in ITEM E of
     SCHEDULE II hereto. As of the Closing Date, each Grantor has rights with
     respect to the commercial tort claims set forth on ITEM F of SCHEDULE II
     hereto.

SECTION 3.3. OWNERSHIP, NO LIENS, ETC. Each Grantor owns its Collateral free and
     clear of any Lien, except for Liens (a) created by this Agreement and (b)
     in the case of Collateral other than any investment property (including
     Capital Securities), permitted by Section 7.2.3 of the Credit Agreement. No
     effective financing statement or other filing similar in

                                      -10-
<Page>

     effect covering any Collateral is on file in any recording office, except
     those filed in favor of the Administrative Agent relating to this Agreement
     or those filed in connection with Liens permitted by Section 7.2.3 of the
     Credit Agreement or as to which a termination statement relating to such
     financing statement or other instrument has been delivered to the
     Administrative Agent on the Closing Date. No Grantor owns any Restricted
     Assets that would impair, in any material respect, the Administrative
     Agent's ability to sell or otherwise transfer such Grantor's business as a
     going concern.

SECTION 3.4. POSSESSION OF INVENTORY, ETC. Each Grantor agrees that it will
     maintain exclusive possession of its goods, instruments, promissory notes
     and inventory, other than (a) as otherwise permitted hereunder, (b) goods
     sold or otherwise disposed of in accordance with Section 7.2.11 of the
     Credit Agreement, (c) goods being repaired, refurbished or overhauled in
     the ordinary course of any Grantor's business, PROVIDED, that such
     Collateral does not remain outside of a location specified on ITEM B of
     SCHEDULE II for more than sixty (60) days, (d) goods located at any other
     location within the continental United States or Canada, PROVIDED, that the
     Grantors give the Administrative Agent written notice of such location at
     least twenty (20) days prior to moving or locating any such Collateral at
     such location, (e) inventory of CBI held by sales representatives of CBI,
     with an aggregate value which does not exceed $500,000, (f) inventory of
     CBI on consignment to retail sellers with an aggregate value which does not
     exceed $500,000, and (g) instruments or promissory notes that have been
     delivered to the Administrative Agent pursuant to SECTION 3.5. None of said
     locations are leased by any Grantor as lessee except those designated as
     such on ITEM G of SCHEDULE II. No Grantor sells any inventory to any
     customer on approval or on any other basis which entitles the customer to
     return, or which may obligate such Grantor to repurchase, such inventory
     (other than inventory sold by CBI and Taylor, to the extent such sales are
     on terms consistent with past practices of CBI and Taylor, respectively).
     The completion of the manufacturing process of such inventory by a Person
     other than an Obligor would be permitted under any contract to which such
     Grantor is a party or to which such inventory is subject.

SECTION 3.5. NEGOTIABLE DOCUMENTS, INSTRUMENTS AND CHATTEL PAPER. Each Grantor
     has delivered to the Administrative Agent possession of all originals of
     all negotiable documents, instruments, promissory notes (including Pledged
     Notes) and chattel paper owned or held by such Grantor on the Closing Date.

SECTION 3.6. INTELLECTUAL PROPERTY COLLATERAL. With respect to any Intellectual
     Property Collateral the loss, impairment or infringement of which could
     reasonably be expected to have a Material Adverse Effect:

(a)  such Intellectual Property Collateral is subsisting and has not been
     adjudged invalid or unenforceable, in whole or in part;

(b)  such Intellectual Property Collateral is valid and enforceable;

(c)  each Grantor has made all necessary filings and recordations to protect its
     interest in such Intellectual Property Collateral, including recordations
     of all of its interests in the Patent Collateral and Trademark Collateral
     in the United States Patent and Trademark Office

                                      -11-
<Page>

     and (subject to the terms of the Credit Agreement) in corresponding offices
     throughout the world, and its claims to the Copyright Collateral in the
     United States Copyright Office and (subject to the terms of the Credit
     Agreement) in corresponding offices throughout the world;

(d)  each Grantor is the exclusive owner of the entire and unencumbered right,
     title and interest in and to such Intellectual Property Collateral and no
     claim has been made that the use of such Intellectual Property Collateral
     does or may violate the asserted rights of any third party; and

(e)  each Grantor has performed and will continue to perform all acts and has
     paid and will continue to pay all required fees and Taxes to maintain each
     and every such item of Intellectual Property Collateral in full force and
     effect throughout the world, as applicable.

Each Grantor owns directly or is entitled to use by license or otherwise, all
patents, Trademarks, Trade Secrets, copyrights, mask works, licenses,
technology, know-how, processes and rights with respect to any of the foregoing
used in, necessary for or of importance to the conduct of such Grantor's
business.

SECTION 3.7. VALIDITY, ETC. This Agreement creates a valid security interest in
     favor of the Administrative Agent (for the benefit of the Secured Parties)
     in the Collateral as security for the Obligations. The Administrative
     Agent's having possession of all instruments and cash constituting
     Collateral from time to time, the recording of the Patent Security
     Agreement, the Trademark Security Agreement, and the Copyright Security
     Agreement, as applicable, executed pursuant hereto in the United States
     Patent and Trademark Office and the United States Copyright Office, as
     applicable, and the filing of the Filing Statements described in SCHEDULE
     VII hereto and, with respect to Patent Collateral, Trademark Collateral and
     Copyright Collateral hereafter existing and not covered by a Patent
     Security Agreement, Trademark Security Agreement or Copyright Security
     Agreement, as applicable, the recording in the United States Patent and
     Trademark Office and the United States Copyright Office, as applicable, of
     appropriate instruments of assignment, result in the perfection of such
     security interests. Such security interests are, or in the case of
     Collateral in which a Grantor obtains rights after the date hereof, will
     be, perfected, first priority security interests, subject only to the
     security interests and other Liens permitted pursuant to Section 7.2.3 of
     the Credit Agreement and the recording of such instruments of assignment.
     Such recordings and filings and all other action necessary or desirable to
     perfect and protect such security interest have been duly taken, except for
     the Administrative Agent's having possession of instruments and cash
     constituting Collateral after the date hereof and the other filings and
     recordations described in SECTION 3.8 hereof.

SECTION 3.8. AUTHORIZATION, APPROVAL, ETC. Except as have been obtained or made
     and are in full force and effect, no authorization, approval or other
     action by, and no notice to or filing with, any Governmental Authority is
     required either

                                      -12-
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(a)  for the grant by the Grantors of the security interest granted hereby, the
     pledge by the Grantors of any Collateral pursuant hereto or for the
     execution, delivery and performance of this Agreement by the Grantors;

(b)  for the perfection of or the exercise by the Administrative Agent of its
     rights and remedies hereunder except (A) the filing under the UCC as in
     effect in the applicable jurisdiction of the Filing Statements described in
     SCHEDULE VII hereto, (B) with respect to the perfection of the security
     interest created hereby in Patent Collateral, Trademark Collateral and
     Copyright Collateral in the United States, for the recording of the Patent
     Security Agreement, Trademark Security Agreement and Copyright Security
     Agreement, as applicable, in the United States Patent and Trademark Office
     and the United States Copyright Office, as applicable, (C) with respect to
     the perfection of the security interest created hereby in foreign Patent
     Collateral, Trademark Collateral and Copyright Collateral, for
     registrations and filings in jurisdictions located outside of the United
     States and covering rights in such jurisdictions relating to Patent
     Collateral, Trademark Collateral and Copyright Collateral, and (D) with
     respect to the perfection of the security interest created hereby in motor
     vehicles for which the title to such motor vehicles is governed by a
     certificate of title or ownership (collectively, the "MOTOR VEHICLES"), for
     the submission of an appropriate application requesting that the Lien of
     the Administrative Agent be noted on the certificate of title or ownership,
     completed and authenticated by each Grantor, together with the certificate
     of title, with respect to each Motor Vehicle, to the appropriate state
     agency; or

(c)  for the exercise by the Administrative Agent of the voting or other rights
     provided for in this Agreement, or, except with respect to any securities
     issued by a Subsidiary of the Grantors, as may be required in connection
     with a disposition of such securities by laws affecting the offering and
     sale of securities generally and the remedies in respect of the Collateral
     pursuant to this Agreement.

SECTION 3.9. BEST INTERESTS. It is in the best interests of each Grantor to
     execute this Agreement inasmuch as such Grantor will, as a result of being
     a Subsidiary of the Borrower, derive substantial direct and indirect
     benefits from the Credit Extensions made from time to time to the Borrower
     by the Lenders and the Issuer pursuant to the Credit Agreement and the
     execution and delivery of Rate Protection Agreements between the Borrower,
     other Obligors and certain Secured Parties, and each Grantor agrees that
     the Secured Parties are relying on this representation in agreeing to make
     Credit Extensions to the Borrower.

                                   ARTICLE IV
                                   COVENANTS

     Each Grantor covenants and agrees that, until the Termination Date, such
Grantor will perform, comply with and be bound by the obligations set forth
below.

SECTION 4.1. AS TO INVESTMENT PROPERTY, ETC.

                                      -13-
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SECTION 4.1.1. CAPITAL SECURITIES OF SUBSIDIARIES. No Grantor will allow any of
     its Subsidiaries that is

(a)  a corporation, business trust, joint stock company or similar Person, to
     issue uncertificated securities; and

(b)  a partnership or limited liability company, to (i) issue Capital Securities
     that are to be dealt in or traded on securities exchanges or in securities
     markets, (ii) expressly provide in its Organic Documents that its Capital
     Securities are securities governed by Article 8 of the UCC, (iii) place
     such Subsidiaries' Capital Securities in a securities account or (iv) cause
     such Subsidiaries' Capital Securities to be represented by a certificate.

SECTION 4.1.2. INVESTMENT PROPERTY (OTHER THAN CERTIFICATED SECURITIES). With
     respect to any investment property (other than certificated securities)
     owned by any Grantor, such Grantor will cause a Control Agreement relating
     to such investment property to be executed and delivered by such Grantor
     and the applicable financial intermediary in favor of the Administrative
     Agent.

SECTION 4.1.3. STOCK POWERS, ETC. Each Grantor agrees that all certificated
     securities delivered by such Grantor pursuant to this Agreement will be
     accompanied by undated stock powers duly executed in blank, or other
     equivalent instruments of transfer acceptable to the Administrative Agent.

SECTION 4.1.4. CONTINUOUS PLEDGE. Each Grantor will (subject to the terms of the
     Credit Agreement) deliver to the Administrative Agent and at all times keep
     pledged to the Administrative Agent pursuant hereto, on a first-priority,
     perfected basis all Collateral, all payment intangibles to the extent they
     are evidenced by a document, instrument, promissory note (including a
     Pledged Note) or chattel paper and are, when aggregated with all other such
     Collateral of the Borrower and each other Grantor, in an aggregate face
     amount of more than $50,000, and all interest and principal with respect to
     the payment intangibles, and all proceeds and rights from time to time
     received by or distributable to such Grantor in respect of any of the
     foregoing Collateral. Each Grantor agrees that it will, promptly following
     receipt, deliver to the Administrative Agent possession of all originals of
     negotiable documents, instruments, promissory notes (including Pledged
     Notes) and chattel paper that it acquires following the Closing Date.

SECTION 4.1.5. VOTING RIGHTS; DIVIDENDS, ETC. Each Grantor agrees:

(a)  promptly upon receipt of notice of the occurrence and continuance of a
     Specified Event from the Administrative Agent and without any request
     therefor by the Administrative Agent, so long as such Specified Event shall
     continue, to deliver (properly endorsed where required hereby or requested
     by the Administrative Agent) to the Administrative Agent all Dividends and
     Distributions with respect to investment property, all interest, principal,
     other cash payments on payment intangibles, and all proceeds of the
     Collateral, in each case thereafter received by such Grantor, all of which
     shall be held by the Administrative Agent as additional Collateral; and

                                      -14-
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(b)  promptly upon receipt of notice of the occurrence and continuance of a
     Specified Event from the Administrative Agent and upon request therefor by
     the Administrative Agent, so long as such Specified Event shall continue,
     with respect to Collateral consisting of general partner interests or
     limited liability company interests, cause modifications to the respective
     Organic Documents to admit the Administrative Agent as a general partner or
     member, respectively; and

(c)  immediately upon the occurrence and continuance of a Specified Event and so
     long as the Administrative Agent has notified the Grantor of the
     Administrative Agent's intention to exercise its voting power under this
     clause,

(i)  that the Administrative Agent may exercise (to the exclusion of such
     Grantor) the voting power and all other incidental rights of ownership with
     respect to any investment property constituting Collateral and such Grantor
     hereby grants the Administrative Agent an irrevocable proxy, exercisable
     under such circumstances, to vote such investment property; and

(ii) to promptly deliver to the Administrative Agent such additional proxies and
     other documents as may be necessary to allow the Administrative Agent to
     exercise such voting power.

All Dividends, Distributions, interest, principal, cash payments, payment
intangibles and proceeds which may at any time and from time to time be held by
such Grantor but which such Grantor is then obligated to deliver to the
Administrative Agent, shall, until delivery to the Administrative Agent, be held
by such Grantor separate and apart from its other property in trust for the
Administrative Agent. The Administrative Agent agrees that unless a Specified
Event shall have occurred and be continuing and the Administrative Agent shall
have given the notice referred to in CLAUSE (b), such Grantor will have the
exclusive voting power with respect to any investment property constituting
Collateral and the Administrative Agent will, upon the written request of such
Grantor, promptly deliver such proxies and other documents, if any, as shall be
reasonably requested by such Grantor which are necessary to allow such Grantor
to exercise that voting power; PROVIDED that no vote shall be cast, or consent,
waiver, or ratification given, or action taken by such Grantor that would impair
any such Collateral or be inconsistent with or violate any provision of any Loan
Document.

SECTION 4.2. CHANGE OF NAME, ETC. No Grantor will change its name or place of
     incorporation or organization or federal taxpayer identification number
     except upon 30 days' prior written notice to the Administrative Agent. In
     addition, each Grantor shall supplement the information contained in
     SCHEDULE II hereto on the Compliance Certificate on each date a Compliance
     Certificate is required to be delivered to the Administrative Agent under
     the Credit Agreement, including any changes to the information set forth in
     SECTION 3.2.

SECTION 4.3. AS TO RECEIVABLES; COLLATERAL ACCOUNT.

(a)  Each Grantor shall have the right to collect all Receivables so long as no
     Specified Event shall have occurred and be continuing.

                                      -15-
<Page>

(b)  Upon (i) the occurrence and continuance of a Specified Event and (ii) the
     delivery of written notice by the Administrative Agent to each Grantor, all
     proceeds of Collateral received by such Grantor shall be delivered in kind
     to the Administrative Agent for deposit into a deposit account (the
     "COLLATERAL ACCOUNT") of such Grantor maintained with the Administrative
     Agent (or such other institution which has executed and delivered to the
     Administrative Agent a "lockbox" agreement in form and substance and
     satisfactory to the Administrative Agent), and such Grantor shall not
     commingle any such proceeds, and shall hold separate and apart from all
     other property, all such proceeds in express trust for the benefit of the
     Administrative Agent until delivery thereof is made to the Administrative
     Agent.

(c)  Following the delivery of notice pursuant to CLAUSE (b)(ii), the
     Administrative Agent shall have the right to apply any amount in the
     Collateral Account to the payment of any Obligations which are due and
     payable.

(d)  With respect to the Collateral Account, it is hereby confirmed and agreed
     that (i) deposits in each Collateral Account are subject to a security
     interest as contemplated hereby, (ii) each such Collateral Account shall be
     under the sole dominion and control of the Administrative Agent and (iii)
     the Administrative Agent shall have the sole right of withdrawal over the
     amounts deposited in such Collateral Account.

SECTION 4.4. AS TO COLLATERAL.

(a)  Subject to CLAUSE (b), each Grantor (i) may in the ordinary course of its
     business, at its own expense, sell, lease or furnish under the contracts of
     service any of the inventory normally held by such Grantor for such
     purpose, and use and consume, in the ordinary course of its business, any
     raw materials, work in process or materials normally held by such Grantor
     for such purpose, (ii) will, at its own expense, endeavor to collect, as
     and when due, all amounts due with respect to any of the Collateral,
     including the taking of such action with respect to such collection as the
     Administrative Agent may reasonably request following the occurrence of a
     Specified Event or, in the absence of such request, as such Grantor may
     deem advisable, and (iii) may grant, in the ordinary course of business, to
     any party obligated on any of the Collateral, any rebate, refund or
     allowance to which such party may be lawfully entitled, and may accept, in
     connection therewith, the return of goods, the sale or lease of which shall
     have given rise to such Collateral.

(b)  At any time following the occurrence and during the continuance of a
     Specified Event, whether before or after the maturity of any of the
     Obligations, the Administrative Agent may (i) revoke any or all of the
     rights of each Grantor set forth in CLAUSE (a), (ii) notify any parties
     obligated on any of the Collateral to make payment to the Administrative
     Agent of any amounts due or to become due thereunder and (iii) enforce
     collection of any of the Collateral by suit or otherwise and surrender,
     release, or exchange all or any part thereof, or compromise or extend or
     renew for any period (whether or not longer than the original period) any
     indebtedness thereunder or evidenced thereby.

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(c)  Upon request of the Administrative Agent following the occurrence and
     during the continuance of a Specified Event, each Grantor will, at its own
     expense, notify any parties obligated on any of the Collateral to make
     payment to the Administrative Agent of any amounts due or to become due
     thereunder.

(d)  Each Grantor hereby authorizes the Administrative Agent to endorse, in the
     name of such Grantor, any item, howsoever received by the Administrative
     Agent, representing any payment on or other proceeds of any of the
     Collateral.

SECTION 4.5. AS TO INTELLECTUAL PROPERTY COLLATERAL. Each Grantor covenants and
     agrees to comply with the following provisions as such provisions relate to
     any Intellectual Property Collateral of such Grantor:

(a)  such Grantor will not (i) do or fail to perform any act whereby any of the
     Patent Collateral may lapse or become abandoned or dedicated to the public
     or unenforceable, (ii) permit any of its licensees to (A) fail to continue
     to use any of the Trademark Collateral in order to maintain all of the
     Trademark Collateral in full force free from any claim of abandonment for
     non-use, (B) fail to maintain as in the past the quality of products and
     services offered under all of the Trademark Collateral, (C) fail to employ
     all of the Trademark Collateral registered with any federal or state or
     foreign authority with an appropriate notice of such registration, (D)
     adopt or use any other Trademark which is confusingly similar or a
     colorable imitation of any of the Trademark Collateral, (E) use any of the
     Trademark Collateral registered with any federal, state or foreign
     authority except for the uses for which registration or application for
     registration of all of the Trademark Collateral has been made or (F) do or
     permit any act or knowingly omit to do any act whereby any of the Trademark
     Collateral may lapse or become invalid or unenforceable, or (iii) do or
     permit any act or knowingly omit to do any act whereby any of the Copyright
     Collateral or any of the Trade Secrets Collateral may lapse or become
     invalid or unenforceable or placed in the public domain except upon
     expiration of the end of an unrenewable term of a registration thereof,
     unless, in the case of any of the foregoing requirements in CLAUSES (i),
     (ii) and (iii), such Grantor shall either (x) reasonably and in good faith
     determine that any of such Intellectual Property Collateral is of
     negligible economic value to such Grantor, or (y) have a valid business
     purpose to do otherwise;

(b)  such Grantor shall promptly notify the Administrative Agent if it knows, or
     has reason to know, that any application or registration relating to any
     material item of the Intellectual Property Collateral may become abandoned
     or dedicated to the public or placed in the public domain or invalid or
     unenforceable, or of any adverse determination or development (including
     the institution of, or any such determination or development in, any
     proceeding in the United States Patent and Trademark Office, the United
     States Copyright Office or any foreign counterpart thereof or any court)
     regarding such Grantor's ownership of any of the Intellectual Property
     Collateral, its right to register the same or to keep and maintain and
     enforce the same;

(c)  in no event will such Grantor or any of its agents, employees, designees or
     licensees file an application for the registration of any Intellectual
     Property Collateral with the United

                                      -17-
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     States Patent and Trademark Office, the United States Copyright Office or
     any similar office or agency in any other country or any political
     subdivision thereof, unless it promptly informs the Administrative Agent,
     and upon request of the Administrative Agent (subject to Section 7.1.8 of
     the Credit Agreement), executes and delivers all agreements, instruments
     and documents as the Administrative Agent may reasonably request to
     evidence the Administrative Agent's security interest in such Intellectual
     Property Collateral;

(d)  such Grantor will take all necessary steps, including in any proceeding
     before the United States Patent and Trademark Office, the United States
     Copyright Office or (subject to Section 7.1.8 of the Credit Agreement) any
     similar office or agency in any other country or any political subdivision
     thereof, to maintain and pursue any application (and to obtain the relevant
     registration) filed with respect to, and to maintain any registration of,
     the Intellectual Property Collateral, including the filing of applications
     for renewal, affidavits of use, affidavits of incontestability and
     opposition, interference and cancellation proceedings and the payment of
     fees and taxes (except to the extent that dedication, abandonment or
     invalidation is permitted under the foregoing CLAUSE (a) or (b)); and

(e)  such Grantor will promptly (but no less than quarterly) execute and deliver
     to the Administrative Agent (as applicable) a Patent Security Agreement,
     Trademark Security Agreement and/or Copyright Security Agreement, as the
     case may be, in the forms of EXHIBIT A, EXHIBIT B and EXHIBIT C hereto
     following its obtaining an interest in any such Intellectual Property, and
     shall execute and deliver to the Administrative Agent any other document
     required to acknowledge or register or perfect the Administrative Agent's
     interest in any part of such item of Intellectual Property Collateral.

SECTION 4.6. BAILEES. With respect to Collateral that is in the possession of
     any landlord, refinery, consignee, warehouseman, bailee, agent or
     processor, upon the request of the Administrative Agent, any Grantor so
     requested shall promptly upon such request use its best efforts to enter
     into a landlord, refinery, consignee, warehouseman, bailee, agent or
     processor arrangement (including but not limited to a waiver of any Lien
     held by such Person against such Collateral) in form and substance
     reasonably satisfactory to the Administrative Agent. Upon the request of
     the Administrative Agent, such Grantor shall provide warehouse receipts or
     bailee letters reasonably satisfactory to the Administrative Agent prior to
     the commencement of such storage with any such Person. The applicable
     Grantor shall, upon the request of the Administrative Agent, notify any
     such landlord, refinery, consignee, warehouseman, bailee, agent, processor
     or other Person of the security interest created hereby and shall instruct
     such Person to hold all such Collateral for the account of the
     Administrative Agent subject to the instructions of the Administrative
     Agent.

SECTION 4.7. FURTHER ASSURANCES, ETC. Each Grantor agrees that, from time to
     time at its own expense, it will promptly execute and deliver all further
     instruments and documents, and take all further action, that may be
     necessary or that the Administrative Agent may reasonably request, in order
     to perfect, preserve and protect any security interest granted or purported
     to be granted hereby or to enable the Administrative Agent to exercise and

                                      -18-
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     enforce its rights and remedies hereunder with respect to any Collateral.
     Without limiting the generality of the foregoing, such Grantor will

(a)  from time to time upon the request of the Administrative Agent, promptly
     deliver to the Administrative Agent such stock powers, instruments and
     similar documents, satisfactory in form and substance to the Administrative
     Agent, with respect to such Collateral as the Administrative Agent may
     reasonably request and will, from time to time upon the request of the
     Administrative Agent after the occurrence and during the continuance of any
     Specified Event promptly transfer any securities constituting Collateral
     into the name of any nominee designated by the Administrative Agent; if any
     Account or Receivable shall be evidenced by an instrument, negotiable
     document, promissory note or chattel paper, deliver and pledge to the
     Administrative Agent hereunder such instrument, negotiable document,
     promissory note or chattel paper duly endorsed and accompanied by duly
     executed instruments of transfer or assignment, all in form and substance
     satisfactory to the Administrative Agent;

(b)  file (or cause to be filed) such Filing Statements or continuation
     statements, or amendments thereto, and such other instruments or notices
     (including any assignment of claim form under or pursuant to the federal
     assignment of claims statute, 31 U.S.C. Section 3726, any successor or
     amended version thereof or any regulation promulgated under or pursuant to
     any version thereof), as may be necessary or that the Administrative Agent
     may reasonably request in order to perfect and preserve the security
     interests and other rights granted or purported to be granted to the
     Administrative Agent hereby;

(c)  deliver to the Administrative Agent and at all times keep pledged to the
     Administrative Agent pursuant hereto, on a first-priority, perfected basis,
     at the reasonable request of the Administrative Agent, all investment
     property constituting Collateral, all Dividends and Distributions with
     respect thereto, and all interest and principal with respect to promissory
     notes (including Pledged Notes), and all proceeds and rights from time to
     time received by or distributable to such Grantor in respect of any of the
     foregoing Collateral;

(d)  except as permitted by the terms of the Credit Agreement, not take or omit
     to take any action the taking or the omission of which would result in any
     impairment or alteration of any obligation of the maker of any payment
     intangible or other instrument constituting Collateral;

(e)  not acquire any Restricted Assets (or acquire a series of related
     Restricted Assets) if such acquisition (or series of related acquisitions)
     would impair, in any material respect, the Administrative Agent's ability
     to sell or otherwise transfer such Grantor's business as a going concern;

(f)  furnish to the Administrative Agent, from time to time at the
     Administrative Agent's request, statements and schedules further
     identifying and describing the Collateral and such other reports in
     connection with the Collateral as the Administrative Agent may reasonably
     request, all in reasonable detail;

                                      -19-
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(g)  not permit any items of equipment to become fixtures to real estate other
     than real estate subject to a Mortgage or real estate owned by a landlord
     that has signed a landlord's waiver in form and substance satisfactory to
     the Administrative Agent (for its own benefit and on behalf of the Secured
     Parties);

(h)  not adjust, settle or compromise any account, or release wholly or partly
     any party or obligation thereof, or allow any credit or discount thereon
     (collectively an "Adjustment"), unless (i) the Administrative Agent grants
     its consent prior to any such Adjustment which consent shall not be
     unreasonably withheld or delayed or (ii) such Adjustment is made in the
     ordinary course of business of such Grantor and is for an amount not in
     excess of $50,000 (provided that no such Adjustment may be made without the
     prior written consent of the Administrative Agent during the continuance of
     a Specified Event);

(i)  do all things reasonably requested by the Administrative Agent in order to
     enable the Administrative Agent to have control (as such term is defined in
     Article 8 and Article 9 of any applicable Uniform Commercial Code relevant
     to the creation, perfection or priority of Collateral consisting of deposit
     accounts, accounts and letter of credit rights) over any Collateral; and

(j)  promptly notify the Administrative Agent if such Grantor believes it has
     rights in respect of any amounts in a commercial tort claim and such
     Grantor shall take all such action reasonably requested by the
     Administrative Agent perfect the Administrative Agent's security interest
     in such commercial tort claim.

With respect to the foregoing and the grant of the security interest hereunder,
each Grantor hereby authorizes the Administrative Agent to file one or more
financing or continuation statements, and amendments thereto, relative to all or
any part of the Collateral without the signature of such Grantor where permitted
by law. Each Grantor agrees that a carbon, photographic or other reproduction of
this Agreement or any financing statement covering the Collateral or any part
thereof shall be sufficient as a financing statement where permitted by law.

SECTION 4.8. FILING REQUIREMENTS. None of the Collateral (other than motor
     vehicles not having a market value in excess of $75,000 in the aggregate)
     is covered by any certificate of title. Upon request of the Administrative
     Agent, each Grantor shall promptly deliver to the Administrative Agent any
     and all certificates of title, applications for title or similar evidence
     of ownership of such Collateral and shall cause the Administrative Agent to
     be named as lienholder on any such certificate of title or other evidence
     of ownership. None of the Collateral is of a type in which security
     interests or liens may be registered, recorded or filed under, or notice
     thereof given under, any federal statute or regulation except for
     Collateral described on the schedules to any Copyright Security Agreement,
     Patent Security Agreement or Trademark Security Agreement. Each Grantor
     shall promptly notify the Administrative Agent in writing upon acquiring
     any interest hereafter in any property which constitutes "Collateral" under
     this Agreement and which is of a type where a security interest or lien may
     be registered, recorded or filed under, or notice thereof given under, any
     federal statute or regulation.

                                      -20-
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SECTION 4.9. COLLATERAL REQUIREMENTS. Taylor Holding Co. hereby agrees that it
     will not maintain any assets or other property (other than CBI Senior
     Subordinated Notes held by it as of the Closing Date or thereafter) with
     State Street Bank and Trust Company or any of its affiliates.

                                   ARTICLE V
                            THE ADMINISTRATIVE AGENT

SECTION 5.1. ADMINISTRATIVE AGENT APPOINTED ATTORNEY-IN-FACT. Each Grantor
     hereby irrevocably appoints the Administrative Agent its attorney-in-fact,
     with full authority in the place and stead of such Grantor and in the name
     of such Grantor or otherwise, from time to time in the Administrative
     Agent's discretion, following the occurrence and during the continuance of
     a Specified Event, to take any action and to execute any instrument which
     the Administrative Agent may deem necessary or advisable to accomplish the
     purposes of this Agreement, including:

(a)  to ask, demand, collect, sue for, recover, compromise, receive and give
     acquittance and receipts for moneys due and to become due under or in
     respect of any of the Collateral;

(b)  to receive, endorse, and collect any drafts or other instruments, documents
     and chattel paper, in connection with CLAUSE (a) above;

(c)  to file any claims or take any action or institute any proceedings which
     the Administrative Agent may deem necessary or desirable for the collection
     of any of the Collateral or otherwise to enforce the rights of the
     Administrative Agent with respect to any of the Collateral; and

(d)  to perform the affirmative obligations of such Grantor hereunder (including
     all obligations of such Grantor pursuant to SECTION 4.6).

Each Grantor hereby acknowledges, consents and agrees that the power of attorney
granted pursuant to this Section is irrevocable and coupled with an interest.

SECTION 5.2. ADMINISTRATIVE AGENT MAY PERFORM. If any Grantor fails to perform
     any agreement contained herein, the Administrative Agent may itself
     perform, or cause performance of, such agreement, and the expenses of the
     Administrative Agent incurred in connection therewith shall be payable by
     such Grantor pursuant to SECTION 6.4.

SECTION 5.3. ADMINISTRATIVE AGENT HAS NO DUTY. The powers conferred on the
     Administrative Agent hereunder are solely to protect its interest (on
     behalf of the Secured Parties) in the Collateral and shall not impose any
     duty on it to exercise any such powers. Except for reasonable care of any
     Collateral in its possession and the accounting for moneys actually
     received by it hereunder, the Administrative Agent shall have no duty as to
     any Collateral or responsibility for

(a)  ascertaining or taking action with respect to calls, conversions,
     exchanges, maturities, tenders or other matters relative to any investment
     property, whether or not the Administrative Agent has or is deemed to have
     knowledge of such matters, or

                                      -21-
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(b)  taking any necessary steps to preserve rights against prior parties or any
     other rights pertaining to any Collateral.

SECTION 5.4. REASONABLE CARE. The Administrative Agent is required to exercise
     reasonable care in the custody and preservation of any of the Collateral in
     its possession; PROVIDED, that the Administrative Agent shall be deemed to
     have exercised reasonable care in the custody and preservation of any of
     the Collateral, if it takes such action for that purpose as each Grantor
     reasonably requests in writing at times other than upon the occurrence and
     during the continuance of any Specified Event, but failure of the
     Administrative Agent to comply with any such request at any time shall not
     in itself be deemed a failure to exercise reasonable care.

                                   ARTICLE VI
                                    REMEDIES

SECTION 6.1. CERTAIN REMEDIES. If any Specified Event shall have occurred and be
     continuing:

(a)  The Administrative Agent may exercise in respect of the Collateral, in
     addition to other rights and remedies provided for herein or otherwise
     available to it, all the rights and remedies of a secured party on default
     under the UCC (whether or not the UCC applies to the affected Collateral)
     and also may

(i)  require each Grantor to, and each Grantor hereby agrees that it will, at
     its expense and upon request of the Administrative Agent forthwith,
     assemble all or part of the Collateral as directed by the Administrative
     Agent and make it available to the Administrative Agent at a place to be
     designated by the Administrative Agent which is reasonably convenient to
     both parties, and

(ii) without notice except as specified below, sell the Collateral or any part
     thereof in one or more parcels at public or private sale, at any of the
     Administrative Agent's offices or elsewhere, for cash, on credit or for
     future delivery, and upon such other terms as the Administrative Agent may
     deem commercially reasonable. Each Grantor agrees that, to the extent
     notice of sale shall be required by law, at least ten days prior notice to
     such Grantor of the time and place of any public sale or the time after
     which any private sale is to be made shall constitute reasonable
     notification. The Administrative Agent shall not be obligated to make any
     sale of Collateral regardless of notice of sale having been given. The
     Administrative Agent may adjourn any public or private sale from time to
     time by announcement at the time and place fixed therefor, and such sale
     may, without further notice, be made at the time and place to which it was
     so adjourned.

(b)  All cash proceeds received by the Administrative Agent in respect of any
     sale of, collection from, or other realization upon, all or any part of the
     Collateral may, in the discretion of the Administrative Agent, be held by
     the Administrative Agent as collateral for, and/or then or at any time
     thereafter applied by the Administrative Agent against all or any part of
     the Obligations as follows:

                                      -22-
<Page>

(i)   FIRST, to the payment of any amounts payable to the Administrative Agent,
      in its capacity as Administrative Agent, pursuant to Section 10.3 of the
      Credit Agreement and SECTION 6.4;

(ii)  SECOND, to the equal and ratable payment of the Obligations, applied as to
      each Secured Party: (A) first to fees then due to such Secured Party, (B)
      then to interest due to such Secured Party, (C) then to the Cash
      Collateralization of all Letter of Credit Outstandings, (D) then to
      principal amounts owing to, or to reduce the "credit exposure" of, such
      Secured Party with respect to the Loans or the Gold Consignment Agreement,
      or under such Rate Protection Agreement, as the case may be, and (E) then
      to the remaining outstanding Obligations, including, without duplication
      of any amounts paid pursuant to this clause, to the amounts owing pursuant
      to Section 10.4 of the Credit Agreement and Sections 26 and 33 of the Gold
      Consignment Agreement; and

(iii) THIRD, to the applicable Grantor or to whomsoever may be lawfully entitled
      to receive such surplus.

For purposes of this Agreement, the "credit exposure" at any time of any Secured
Party with respect to a Rate Protection Agreement to which such Secured Party is
a party shall be determined at such time in accordance with the customary
methods of calculating credit exposure under similar arrangements by the
counterparty to such arrangements, taking into account potential interest rate
movements and the respective termination provisions and notional principal
amount and term of such Rate Protection Agreement.

(c)  The Administrative Agent may

               (i) transfer all or any part of the Collateral into the name of
          the Administrative Agent or its nominee, with or without disclosing
          that such Collateral is subject to the Lien hereunder,

(ii)  notify the parties obligated on any of the Collateral to make payment to
      the Administrative Agent of any amount due or to become due thereunder,

(iii) enforce collection of any of the Collateral by suit or otherwise, and
      surrender, release or exchange all or any part thereof, or compromise or
      extend or renew for any period (whether or not longer than the original
      period) any obligations of any nature of any party with respect thereto,

(iv)  endorse any checks, drafts, or other writings in any Grantor's name to
      allow collection of the Collateral,

(v)   take control of any proceeds of the Collateral, and

(vi)  execute (in the name, place and stead of any Grantor) endorsements,
      assignments, stock powers and other instruments of conveyance or transfer
      with respect to all or any of the Collateral.

                                      -23-
<Page>

SECTION 6.2. SECURITIES LAWS. If the Administrative Agent shall determine to
     exercise its right to sell all or any of the Collateral pursuant to SECTION
     6.1, each Grantor agrees that, upon request of the Administrative Agent,
     such Grantor will, at its own expense:

(a)  execute and deliver, and cause (or, with respect to any issuer which is not
     a Subsidiary of the Grantor, use its best efforts to cause) each issuer of
     the Capital Securities contemplated to be sold and the directors and
     officers thereof to execute and deliver, all such instruments and
     documents, and do or cause to be done all such other acts and things, as
     may be necessary or, in the opinion of the Administrative Agent, advisable
     to register such Capital Securities under the provisions of the Securities
     Act of 1933, as from time to time amended (the "Securities Act"), and cause
     the registration statement relating thereto to become effective and to
     remain effective for such period as prospectuses are required by law to be
     furnished, and to make all amendments and supplements thereto and to the
     related prospectus which, in the reasonable opinion of the Administrative
     Agent, are necessary or advisable, all in conformity with the requirements
     of the Securities Act and the rules and regulations of the SEC applicable
     thereto;

(b)  use its best efforts to exempt such Capital Securities under the state
     securities or "Blue Sky" laws and to obtain all necessary governmental
     approvals for the sale of such Capital Securities, as requested by the
     Administrative Agent;

(c)  cause (or, with respect to any issuer which is not a Subsidiary of the
     Grantor, use its best efforts to cause) each such issuer to make available
     to its security holders, as soon as practicable, an earnings statement that
     will satisfy the provisions of Section 11(a) of the Securities Act; and

(d)  do or cause to be done all such other acts and things as may be necessary
     to make such sale of such Collateral or any part thereof valid and binding
     and in compliance with applicable law.

Each Grantor further acknowledges the impossibility of ascertaining the amount
of damages that would be suffered by the Administrative Agent or the Secured
Parties by reason of the failure by such Grantor to perform any of the covenants
contained in this Section and consequently agrees that, if such Grantor shall
fail to perform any of such covenants, it shall pay, as liquidated damages and
not as a penalty, an amount equal to the value (as determined by the
Administrative Agent) of such Collateral on the date the Administrative Agent
shall demand compliance with this Section.

SECTION 6.3. COMPLIANCE WITH RESTRICTIONS. Each Grantor agrees that in any sale
     of any of the Collateral whenever a Specified Event shall have occurred and
     be continuing, the Administrative Agent is hereby authorized to comply with
     any limitation or restriction in connection with such sale as it may be
     advised by counsel is necessary in order to avoid any violation of
     applicable law (including compliance with such procedures as may restrict
     the number of prospective bidders and purchasers, require that such
     prospective bidders and purchasers have certain qualifications, and
     restrict such prospective bidders and purchasers to Persons who will
     represent and agree that they are purchasing for their own account for
     investment and not with a view to the distribution or resale of such

                                      -24-
<Page>

     Collateral), or in order to obtain any required approval of the sale or of
     the purchaser by any Governmental Authority or official, and such Grantor
     further agrees that such compliance shall not result in such sale being
     considered or deemed not to have been made in a commercially reasonable
     manner, nor shall the Administrative Agent be liable nor accountable to
     such Grantor for any discount allowed by the reason of the fact that such
     Collateral is sold in compliance with any such limitation or restriction.

SECTION 6.4. INDEMNITY AND EXPENSES.

(a)  Each Grantor agrees to indemnify the Administrative Agent from and against
     any and all claims, losses and liabilities arising out of or resulting from
     this Agreement (including enforcement of this Agreement), except claims,
     losses or liabilities resulting from the Administrative Agent's gross
     negligence or wilful misconduct.

(b)  Each Grantor will, upon demand, pay to the Administrative Agent the amount
     of any and all reasonable expenses, including the reasonable fees and
     disbursements of its counsel and of any experts and agents, which the
     Administrative Agent may incur in connection with:

(i)   the administration of each Loan Document,

(ii)  the custody, preservation, use or operation of, or the sale of, collection
      from, or other realization upon, any of the Collateral,

(iii) the exercise or enforcement of any of the rights of the Administrative
      Agent or the Secured Parties hereunder, and

(iv)  the failure by such Grantor to perform or observe any of the provisions
      hereof.

SECTION 6.5. PROTECTION OF COLLATERAL. The Administrative Agent may from time to
     time, at its option, perform any act which any Grantor fails to perform
     after being requested in writing so to perform (it being understood that no
     such request need be given after the occurrence and during the continuance
     of a Specified Event) and the Administrative Agent may from time to time
     take any other action which the Administrative Agent reasonably deems
     necessary for the maintenance, preservation or protection of any of the
     Collateral or of its security interest therein.

                                  ARTICLE VII
                            MISCELLANEOUS PROVISIONS

SECTION 7.1. LOAN DOCUMENT. This Agreement is a Loan Document executed pursuant
     to the Credit Agreement and shall (unless otherwise expressly indicated
     herein) be construed, administered and applied in accordance with the terms
     and provisions thereof, including Article X thereof.

SECTION  7.2. BINDING ON SUCCESSORS, TRANSFEREES AND ASSIGNS; ASSIGNMENT. This
     Agreement shall remain in full force and effect until the Termination Date
     has occurred, shall be binding upon the Grantors and their successors,
     transferees and assigns and shall inure to

                                      -25-
<Page>

     the benefit of and be enforceable by each Secured Party and its successors,
     transferees and assigns; PROVIDED that no Grantor may (unless otherwise
     permitted under the terms of the Credit Agreement) assign any of its
     obligations hereunder without the prior written consent of all Lenders.

SECTION 7.3. AMENDMENTS, ETC. No amendment to or waiver of any provision of this
     Agreement, nor consent to any departure by any Grantor from its obligations
     under this Agreement, shall in any event be effective unless the same shall
     be in writing and signed by the Administrative Agent (on behalf of the
     Lenders or the Required Lenders, as the case may be, pursuant to Section
     10.1 of the Credit Agreement) and by the Gold Consignor and the Grantors
     and then such waiver or consent shall be effective only in the specific
     instance and for the specific purpose for which given.

SECTION 7.4. NOTICES. All notices and other communications provided for
     hereunder shall be in writing or by facsimile and addressed, delivered or
     transmitted to the appropriate party at the address or facsimile number of
     such party specified in the Credit Agreement, or if to the Gold Consignor
     to the address or facsimile number set forth in the Gold Consignment
     Agreement or at such other address or facsimile number as may be designated
     by such Person in a notice to the other party (and to the Gold Consignor).
     Any notice or other communication, if mailed and properly addressed with
     postage prepaid or if properly addressed and sent by pre-paid courier
     service, shall be deemed given when received; any such notice or other
     communication, if transmitted by facsimile, shall be deemed given when
     transmitted and electronically confirmed.

SECTION 7.5. RELEASE OF LIENS. Upon (a) the Disposition of Collateral in
     accordance with the Credit Agreement or (b) the occurrence of the
     Termination Date, the security interests granted herein shall automatically
     terminate with respect to (i) such Collateral (in the case of CLAUSE (a))
     or (ii) all Collateral (in the case of CLAUSE (b)). Upon any such
     Disposition or termination, the Administrative Agent will, at the
     applicable Grantor's sole expense, deliver to such Grantor, without any
     representations, warranties or recourse of any kind whatsoever, such
     Collateral (in the case of clause (a)) or all Collateral (in the case of
     CLAUSE (b)) held by the Administrative Agent hereunder, and execute and
     deliver to such Grantor such documents as such Grantor shall reasonably
     request to evidence such termination. For the avoidance of doubt, upon the
     retirement, cancellation or other termination of the CBI Senior
     Subordinated Notes held by Taylor Holding Co. in accordance with the Credit
     Agreement, the Administrative Agent shall release such CBI Senior
     Subordinated Notes to Taylor Holding Co. contemporaneously with such
     retirement, cancellation or termination.

SECTION 7.6. ADDITIONAL GRANTORS. Upon the execution and delivery by any other
     Person of a supplement in the form of ANNEX I hereto, such Person shall
     become a "Grantor" hereunder with the same force and effect as if it were
     originally a party to this Agreement and named as a "Grantor" hereunder.
     The execution and delivery of such supplement shall not require the consent
     of any other Grantor hereunder, and the rights and obligations of each
     Grantor hereunder shall remain in full force and effect notwithstanding the
     addition of any new Grantor as a party to this Agreement.

                                      -26-
<Page>

SECTION 7.7. NO WAIVER; REMEDIES. No failure on the part of any Secured Party to
     exercise, and no delay in exercising, any right hereunder shall operate as
     a waiver thereof, nor shall any single or partial exercise of any right
     hereunder preclude any other or further exercise thereof or the exercise of
     any other right. The remedies herein provided are cumulative and not
     exclusive of any remedies provided by law.

SECTION 7.8. HEADINGS. The various headings of this Agreement are inserted for
     convenience only and shall not affect the meaning or interpretation of this
     Agreement or any provisions thereof.

SECTION 7.9. SEVERABILITY. Any provision of this Agreement which is prohibited
     or unenforceable in any jurisdiction shall, as to such provision and such
     jurisdiction, be ineffective to the extent of such prohibition or
     unenforceability without invalidating the remaining provisions of this
     Agreement or affecting the validity or enforceability of such provision in
     any other jurisdiction.

SECTION 7.10. GOVERNING LAW, ENTIRE AGREEMENT, ETC. THIS AGREEMENT SHALL BE
     DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE
     STATE OF NEW YORK (INCLUDING FOR SUCH PURPOSE SECTIONS 5-1401 AND 5-1402 OF
     THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK), EXCEPT TO THE EXTENT
     THAT THE VALIDITY OR PERFECTION OF THE SECURITY INTEREST HEREUNDER, OR
     REMEDIES HEREUNDER, IN RESPECT OF ANY PARTICULAR COLLATERAL ARE GOVERNED BY
     THE LAWS OF A JURISDICTION OTHER THAN THE STATE OF NEW YORK. This Agreement
     and the other Loan Documents constitute the entire understanding among the
     parties hereto with respect to the subject matter hereof and thereof and
     supersede any prior agreements, written or oral, with respect thereto.

SECTION 7.11. COUNTERPARTS. This Agreement may be executed by the parties hereto
     in several counterparts, each of which shall be deemed to be an original
     and all of which shall constitute together but one and the same agreement.
     Delivery of an executed counterpart of a signature page to this Agreement
     by facsimile shall be effective as delivery of manually executed
     counterpart of this Agreement.

                                      -27-
<Page>

     IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to
be duly executed and delivered by its Authorized Officer as of the date first
above written.

                                        COMMEMORATIVE BRANDS, INC.

                                        By: /s/ Sherice P. Bench
                                           -------------------------------------
                                           Name:  Sherice P. Bench
                                           Title: Chief Financial Officer

                                        TP HOLDING CORP.

                                        By: /s/ Sherice P. Bench
                                           -------------------------------------
                                           Name:  Sherice P. Bench
                                           Title: Chief Financial Officer

                                        TAYLOR PUBLISHING COMPANY

                                        By: /s/ Sherice P. Bench
                                           -------------------------------------
                                           Name:  Sherice P. Bench
                                           Title: Chief Financial Officer

                                        TAYLOR PRODUCTION SERVICES
                                        COMPANY, L.P.

                                        By: TAYLOR PUBLISHING COMPANY,
                                           Its general partner

                                        By: /s/ Sherice P. Bench
                                           -------------------------------------
                                           Name:  Sherice P. Bench
                                           Title: Chief Financial Officer

                                      -28-
<Page>

                                        EDUCATIONAL COMMUNICATIONS, INC.

                                        By: /s/ Sherice P. Bench
                                           ----------------------
                                           Name:  Sherice P. Bench
                                           Title: Chief Financial Officer

                                        TAYLOR SENIOR HOLDINGS CORP.

                                        By: /s/ Sherice P. Bench
                                           ----------------------
                                           Name:  Sherice P. Bench
                                           Title: Chief Financial Officer

                                        CBI NORTH AMERICA, INC.

                                        By: /s/ Sherice P. Bench
                                           ----------------------
                                           Name:  Sherice P. Bench
                                           Title: Chief Financial Officer

                                        THE BANK OF NOVA SCOTIA,
                                            as Administrative Agent

                                        By: /s/ Jerome Noto
                                           ----------------
                                           Name:  Jerome Noto
                                           Title: Director

                                      -29-
<Page>

                                                                      SCHEDULE I
                                     to Subsidiary Pledge and Security Agreement

ITEM A.       CAPITAL SECURITIES
<Table>
<Caption>
                                                  STOCK CERTIFICATE     AUTHORIZED  OUTSTANDING   NUMBER OF    % OF SHARES
ISSUER (CORPORATE)               CLASS OF STOCK         NUMBER            SHARES       SHARES       SHARES       PLEDGED
------------------               --------------   ----------------      ---------   ----------    ---------    -----------
<S>                               <C>                    <C>               <C>         <C>          <C>           <C>
1. TAYLOR SENIOR HOLDING CORP.

TP Holding Corp.                    Preferred              2               50,000      30,000       30,000        100%

TP Holding Corp.                     Common                3               50,000      30,000       30,000        100%

2. TAYLOR HOLDING CORP.

Taylor Publishing                    Common                2                1,000         10            10        100%
Company
                                    Limited
Taylor Production                 Partnership
Services Company, L.P.             Interest              None                                                      1%

3. COMMEMORATIVE BRANDS, INC.

CBI North America, Inc.              Common                1                3,000      1,000         1,000        100%

4. TAYLOR PUBLISHING COMPANY

                                    Limited
Taylor Production                 Partnership
Services Company L.P.               Interest             None                                                     99%
</Table>

                                       30
<Page>

ITEM B.  PLEDGED NOTES

1.    Taylor Senior Holding Corp.
      [None]

2.    Taylor Holding Corp.

<Table>
<Caption>
                                                                                                           Original
                                                                                                           Principal
              Name of Issuer                             Description                                        Amount
<S>                                           <C>                                                     <C>
      TP Holding Corp.                        Intercompany Term Note (Bond 2007)                      $______________

      Taylor Publishing Company               Intercompany Term Note (Bond 2007)                      $______________

      Commemorative Brands, Inc.              Intercompany Term Note (Bond 2007)                      $______________

      Educational Communications, Inc.        Intercompany Term Note (Bond 2007)                      $______________

      Commemorative Brands, Inc.              11% Senior Subordinated Notes due 2007
                                              pursuant to the Indenture dated December 16,
                                              1996, as amended by the first supplemental
                                              indenture thereto, dated as of July 21, 2000, and
                                              as further amended or modified in accordance
                                              with Section 7.2.12                                     $   90,000,000
</Table>

3.    Commemorative Brands, Inc.
      [None]

4.    Taylor Publishing Company
      [None]

5.    Taylor Production Services, L.P.
      [None]

                                      -31-
<Page>

6.    CBI North America, Inc.
      [None]

                                      -32-
<Page>

                                                                     SCHEDULE II
                                     to Subsidiary Pledge and Security Agreement

ITEM A.  JURISDICATION OF INCORPORATION; TRADE NAMES

  (i)   Jurisdictions of Incorporation

<Table>
<Caption>
                         GRANTOR                            JURISDICTIONAL
                         -------                        INCORPORATION/FOUNDATION
                                                        ------------------------
          <S>                                                    <C>
          Taylor Senior Holding Corp.                            Delaware
          Taylor Holding Corp.                                   Delaware
          Commemorative Brands, Inc.                             Delaware
          Taylor Publishing Company                              Delaware
          Educational Communications, Inc.                       Illinois
          Taylor Production ServicesCompany, L.P.                Delaware
          CBI North America, Inc.                                Delaware
</Table>

  (ii)  TRADENAMES

1. Taylor Reunion Services, a tradename of Taylor General Partner
   (No longer actively used.)

2. Newsfoto Publishing, a tradename of Taylor General Partner

3. Balfour, a tradename of Commemorative Brands, Inc.

4. ArtCarved, a tradename of Commemorative Brands, Inc.

5. Keystone, a tradename of Commemoratiave Brands, Inc.

6. Master, a tradename of Commemorative Brands, Inc.

7. Namesake, a tradename of Commemorative Brands, Inc.

8. Class Rings, Ltd., a tradename of Commemorative Brands, Inc.

                                      -33-
<Page>

9.  R. Johns, Ltd., a tradename of Commemorative Brands, Inc.

10. Generations of Love, a tradename of Commemorative Brands, Inc.

11. John Roberts, Inc., a tradename of Commemorative Brands, Inc.

12. Balfour Sports, a tradename of Commemorative Brands, Inc.

ITEM B. LOCATION OF INVENTORY, EQUIPMENT

TP HOLDING CORP.

Office Location: 1550 W. Mockingbird Lane, Dallas, TX

TAYLOR SENIOR HOLDING CORP.

Office Location: 1550 W. Mockingbird Lane, Dallas, TX

COMMEMORATIVE BRANDS, INC. AND CBI NORTH AMERICA, INC.

     OWNED PROPERTY:

     1. 7211 Circle S. Road, Austin, TX 78745

     MANUFACTURER AND REFINERS:

     1.  Stern Leach, Inc., 49 Pearl Sreet, Attleboro, MA; Refiner

     2.  Pease and Curren, Inc., 75 Pennsylvania Avenue, Warwick, RI;
         Refiner

     3.  Hereaus PPM, Inc., 65 Euclid Avenue, Newark, NJ; Refiner

     4.  Metalor USA Refining Corporation, 225 John Diestch Boulevard,
         North Attleboro, MA; Refiner

     5.  OK Casting, 3520 Cherleston Road, Norman, OK; Contract
         Manufacturer

     6.  AuraFin Corporation, 770 International Parkway, Sunrise, FL;
         Contract Manufacturer

                                      -34-
<Page>

      7.  Dunhams Jewelry Manufacturing, 7365 Remeon, Suite 8204, El Paso,
          TX; Contract Manufacturer

      8.  Richards and West, Inc., 1255 University Avenue, Rochester, NY;
          Contract Manufacturer

      9.  Herbert Stephan, Hauptstrasse 282 Idar-Oberstein Germany; Contract
          Manufacturer (manufactures synthetic stones and holds
          approximately $70,000 worth of stones belonging to CBI)

      10. Metech International, Inc., 120 Mapleville Main Street, P.O. Box
          500, Mapleville, RI; Refiner

      11. Technic Inc., 1 Spectacle Street, Cranston, RI; Fabricator

      12. Angelo, Inc. 8255 Firestone Boulevard, Suite 500, Downey, CA;
          Contract Manufacturer

      13. Sippi Metals, 1720 North Elston Avenue, Chicago, IL; Refiner

      14. Emporesa Plat-Mex, S.A., Rosas Moreno #68 Col. San Rafael, C.P.
          06470 Mexico, D.F. Mexico; Contract Manufacturer

      15. AMC Company, 2412 Greenlawn Parkway, Austin, TX; Refiner

      16. Carriage Casting, 5935 Cromo Drive, El Paso, TX; Contract
          Manufacturer

      17. Henry Marnolejo Jewelry Shop, 4667 Montana Avenue, El Paso, TX;
          Contract Manufacturer

      18. CBC Jewelry Shop, 5024 Donipahn Drive, Suite 4, El Paso, TX;
          Contract Manufacturer

      19. American Mullion, Inc. 125 Selandia Lane, Carson,
        CA; Fabricator

                                      -35-
<Page>

TAYLOR PUBLISHING COMPANY

      OWNED PROPERTY:

      1. 1550 W. Mockingbird Lane, Dallas, TX

      WAREHOUSES:

      6. Grand Logistics Services (Owner, Willie Chavez), 10574 King William
         Drive, Dallas, TX

TAYLOR PRODUCTION SERVICES COMPANY, L.P.

      OFFICE LOCATION:

      1550 W. Mockingbird Lane, Dallas, TX

EDUCATIONAL COMMUNICATIONS, INC.

      OFFICE LOCATION:

      721 N. McKinley Road, Lake Forest, Illinois 60045

      PRINTERS, MAILING AND FULFILLMENT HOUSES:

      1. Quebecor World, 1133 County Seat, Taunton, MA 02780; Printer

      2. RR Donnelly, 1145 Conwell Ave., Willard OH 44890; Printer

      3. RUF Enterprises, 7544 Oakton, Niles, IL 60714; Plaque, Jewelry, Patch
         order fulfillment.

      4. International Decal, 3332 Commercial Avenue, Northbrook, IL 60062; Mugs
         and Ornaments order fulfillment.

      5. Total Promotions; 1340 Old Skokie Road, Highland Park, IL 60035;
         Portfolios, Pens, Tote Bags fulfillment.

                                      -36-
<Page>

      6. Mailways Enterprises, 6105 Factory Road, Crystal Lake, IL 60014;
         Printed Materials.

      7. Midwest Compuservice, 9800 S. Industrial Drive, Bridgeview, IL 60455;
         Printed Materials.

      8. XL Marketing, 845 Bonnie Lane, Elk Grove Village, IL 60007; Printed
         Materials

ITEM C. FEDERAL TAXPAYER IDENTIFICATION NUMBER

<Table>
<Caption>
       GRANTOR                            FEIN            ORGANIZATIONAL NUMBER
       -------                            ----            ---------------------
<S>                                    <C>                     <C>
Taylor Senior Holding Corp.            13-4099532               3171031
Taylor Holding Corp.                   13-4099531               3132882
Commemorative Brands, Inc.             13-3915801               2607410
Taylor Publishing Company              75-1251430               0659915
CBI North America, Inc.                74-2802215               2687796
Taylor Production Services, L.P.       31-1576205               2831121
Educational Communications, Inc.       36-2613715              47656931
</Table>

ITEM D. GOVERNMENT CONTRACTS

     [None]

                                      -37-
<Page>

ITEM E. DEPOSIT ACCOUNTS

<Table>
<Caption>

       GRANTOR                            BANK NAME AND ADDRESS          ACCOUNT NUMBER
       -------                            ---------------------          --------------
<S>                                       <C>                            <C>
Taylor Senior Holding Corp.               None
Taylor Holding Corp.                      None
Commemorative Brands, Inc.                Chase Bank of Texas, N.A.      09922274690
                                          Austin, TX  78701
Taylor Publishing Company                 Chase Bank of Texas, N.A.      08806264527
                                          Dallas, TX  75266-0197
Educational Communications, Inc.          Northern Trust Bank            1901225701
                                          The Northern Trust Company
                                          265 Deerpath Road
                                          Lake Forest, IL  60045
Taylor Production ServicesCompany,        None
L.P.
CBI North America, Inc.                   None
</Table>

ITEM F. COMMERCIAL TORT CLAIMS.  [None.]

                                      -38-
<Page>

ITEM G. LEASED LOCATIONS

<Table>
<Caption>
           GRANTOR
           -------
<S>                                    <C>
Taylor Senior Holding Corp.            None
Taylor Holding Corp.                   None
Commemorative Brands, Inc.             1. 7101 Intermodal Drive, Louisvilee, KY

                                       2. 6404 Burleson Road, Suite 120, Austin, TX

                                       3. 4605 Osborn, El Paso, TX

                                       4. Fulton #820, Parqu Instrial Antonio J. Bermudez,
                                       Juarez, Chihuahua, Mexico

Taylor Publishing Company              1. 67 Great Valley Parkway, Malvern, PA

                                       2. 2027 Industrial Avenue, San Angelo, TX

                                       3. 1821 Knickerbocker Road, San Angelo, TX

                                       4. 3134 A Executive Drive, San Angelo, TX

                                       5. 10365 Railroad Drive, El Paso, TX

Educational Communications, Inc.       1. 721 N. McKinley Road, Lake Forest, IL

                                       2. 1200 N. Greenbay Road, Lake Forest, IL

                                       3. Acorn Self-Storage, Storage Room #5243,
                                       1255 Town Line Road, Mundelein, IL  60060
Taylor Production ServicesCompany,     None
L.P.
</Table>

                                      -39-
<Page>

<Table>
<S>                                    <C>
CBI North America, Inc.                1. 7101 Intermodal Drive, Louisvilee, KY

                                       2. 6404 Burleson Road, Suite 120, Austin, TX

                                       3. 4605 Osborn, El Paso, TX

                                       4. Fulton #820, Parqu Instrial Antonio J. Bermudez,
                                       Juarez, Chihuahua, Mexico
</Table>

                                      -40-
<Page>

                                                                    SCHEDULE III
                                     to Subsidiary Pledge and Security Agreement

Item A. PATENTS

         ISSUED PATENTS

<Table>
<Caption>
COUNTRY       PATENT NO.         ISSUE DATE        INVENTOR(S)      TITLE
-------       ---------          ----------        ----------       -----
<S>           <C>                <C>               <C>              <C>
</Table>

                          PENDING PATENT APPLICATIONS
                          ---------------------------

<Table>
<Caption>
COUNTRY       SERIAL NO.         FILING DATE       INVENTOR(S)      TITLE
-------       ---------          ----------        ----------       -----
<S>           <C>                <C>               <C>              <C>
</Table>

                       PATENT APPLICATIONS IN PREPARATION
                       ----------------------------------

<Table>
<Caption>
                                 EXPECTED
COUNTRY       DOCKET NO.         FILING DATE       INVENTOR(S)      TITLE
-------       ---------          -----------       -----------      -----
<S>           <C>                <C>               <C>              <C>
</Table>

Item B. PATENT LICENSES

<Table>
<Caption>
COUNTRY OR                              EFFECTIVE       EXPIRATION       SUBJECT
TERRITORY     LICENSOR     LICENSEE        DATE            DATE          MATTER
---------     --------     --------     ---------       ----------       -------
<S>           <C>          <C>          <C>             <C>              <C>
</Table>

                                      -41-
<Page>

                                                                    SCHEDULE IV
                                     to Subsidiary Pledge and Security Agreement

Item A. TRADEMARKS
                             REGISTERED TRADEMARKS

<Table>
<Caption>
COUNTRY        TRADEMARK         REGISTRATION NO.     REGISTRATION DATE
-------        ---------         ----------------     ------------------
<S>            <C>               <C>                  <C>
</Table>

                         PENDING TRADEMARK APPLICATIONS

<Table>
<Caption>
<S>            <C>               <C>                  <C>
COUNTRY        TRADEMARK         SERIAL NO.           FILING DATE
-------        ---------         ----------           -----------
</Table>

                      TRADEMARK APPLICATIONS IN PREPARATION

<Table>
<Caption>
                                              EXPECTED            PRODUCTS/
COUNTRY        TRADEMARK       DOCKET NO.     FILING DATE         SERVICES
-------        ---------       ----------     -----------         --------
<S>            <C>             <C>            <C>                 <C>
</Table>

Item B. TRADEMARK LICENSES

<Table>
<Caption>
COUNTRY OR                                            EFFECTIVE       EXPIRATION
TERRITORY      TRADEMARK    LICENSOR    LICENSEE         DATE            DATE
<S>            <C>          <C>         <C>           <C>             <C>
----------     ---------    --------    --------      ---------       ----------
</Table>

                                      -42-
<Page>

                                                                      SCHEDULE V
                                     to Subsidiary Pledge and Security Agreement

Item A. COPYRIGHTS/MASK WORKS

                        REGISTERED COPYRIGHTS/MASK WORKS

<Table>
<Caption>
COUNTRY    REGISTRATION NO.  REGISTRATION DATE     AUTHOR(S)          TITLE
-------    ----------------  -----------------     ---------          -----
<S>        <C>               <C>                   <C>                <C>
</Table>

              COPYRIGHT/MASK WORK PENDING REGISTRATION APPLICATIONS

<Table>
<Caption>
COUNTRY    SERIAL NO.      FILING DATE             AUTHOR(S)          TITLE
-------    ----------      -----------             ---------          -----
<S>        <C>             <C>                     <C>                <C>
</Table>

          COPYRIGHT/MASK WORK REGISTRATION APPLICATIONS IN PREPARATION

<Table>
<Caption>
                           EXPECTED
COUNTRY    DOCKET NO.      FILING DATE             AUTHOR(S)          TITLE
-------    ----------      -----------             ---------          -----
<S>        <C>             <C>                     <C>                <C>
</Table>

Item B. COPYRIGHT/MASK WORK LICENSES

<Table>
<Caption>
COUNTRY OR                         EFFECTIVE    EXPIRATION     SUBJECT
TERRITORY    LICENSOR   LICENSEE     DATE          DATE        MATTER
---------    --------   --------   ---------    ----------     ------
<S>          <C>        <C>        <C>          <C>            <C>
</Table>

                                      -43-
<Page>

                                                                     SCHEDULE VI
                                     to Subsidiary Pledge and Security Agreement

                        TRADE SECRET OR KNOW-HOW LICENSES

                                      -44-
<Page>

                                                                    SCHEDULE VII
                                     to Subsidiary Pledge and Security Agreement

                              FINANCING STATEMENTS

                                      -45-
<Page>

                                                                       EXHIBIT A
                                     to Subsidiary Pledge and Security Agreement

                           PATENT SECURITY AGREEMENT

     This PATENT SECURITY AGREEMENT, dated as of ____ __, 200_ (this "SECURITY
AGREEMENT"), is made by [NAME OF GRANTOR] (the "GRANTOR") in favor of THE BANK
OF NOVA SCOTIA, as administrative agent (together with its successor(s) thereto
in such capacity, the "ADMINISTRATIVE AGENT") for each of the Secured Parties.

                              W I T N E S S E T H :

     WHEREAS, pursuant to a Credit Agreement, dated as of February 20, 2002 (as
amended, supplemented, amended and restated or otherwise modified from time to
time, the "CREDIT AGREEMENT"), among American Achievement Corporation (formerly
known as Commemorative Brands Holding Corp.), a Delaware corporation (the
"BORROWER"), the Lenders, General Electric Capital Corporation, as the
Syndication Agent for the Lenders, Bankers Trust Company, as the Documentation
Agent for the Lenders and the Administrative Agent, the Lenders and the Issuer
have extended Commitments to make Credit Extensions to the Borrower;

     WHEREAS, in connection with the Credit Agreement, the Grantor has executed
and delivered a Subsidiary Pledge and Security Agreement, dated as of February
20, 2002 (as amended, supplemented, amended and restated or otherwise modified
from time to time, the "AGREEMENT");

     WHEREAS, pursuant to the Credit Agreement and the Agreement, the Grantor is
required to execute and deliver this Security Agreement and to grant to the
Administrative Agent a continuing security interest in all of the Patent
Collateral (as defined below) to secure all Obligations; and

     WHEREAS, the Grantor has duly authorized the execution, delivery and
performance of this Security Agreement;

     NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Grantor agrees, for the
benefit of each Secured Party, as follows:

     SECTION 1. DEFINITIONS. Unless otherwise defined herein or the context
otherwise requires, terms used in this Security Agreement, including its
preamble and recitals, have the meanings provided in the Agreement.

     SECTION 2. GRANT OF SECURITY INTEREST. The Grantor hereby assigns, pledges,
hypothecates, charges, mortgages, delivers, and transfers to the Administrative
Agent, for its benefit and the ratable benefit of each other Secured Party, and
hereby grants to the Administrative Agent, for its benefit and the ratable
benefit of each other Secured Party, a

<Page>

continuing security interest in all of the following property, whether now or
hereafter existing or acquired by the Grantor (the "PATENT COLLATERAL"):

  (a) all of its letters patent and applications for letters patent throughout
      the world, including all patent applications in preparation for filing and
      each patent and patent application referred to in ITEM A of SCHEDULE I
      attached hereto;

  (b) all reissues, divisions, continuations, continuations-in-part, extensions,
      renewals and reexaminations of any of the items described in CLAUSE (a);

  (c) all of its patent licenses, and other agreements providing the Grantor
      with the right to use any items of the type referred to in clauses (a) and
      (b) above, including each patent license referred to in ITEM B of SCHEDULE
      I attached hereto; and

  (d) all proceeds of, and rights associated with, the foregoing (including
      license royalties and proceeds of infringement suits), the right to sue
      third parties for past, present or future infringements of any patent or
      patent application, and for breach or enforcement of any patent license.

     SECTION 3. SECURITY AGREEMENT. This Security Agreement has been executed
and delivered by the Grantor for the purpose of registering the security
interest of the Administrative Agent in the Patent Collateral with the United
States Patent and Trademark Office and corresponding offices in other countries
of the world. The security interest granted hereby has been granted as a
supplement to, and not in limitation of, the security interest granted to the
Administrative Agent for its benefit and the ratable benefit of each other
Secured Party under the Agreement. The Agreement (and all rights and remedies of
the Administrative Agent and each Secured Party thereunder) shall remain in full
force and effect in accordance with its terms.

     SECTION 4. RELEASE OF LIENS. Upon (i) the Disposition of Patent Collateral
in accordance with the Credit Agreement or (ii) the occurrence of the
Termination Date, the security interests granted herein shall automatically
terminate with respect to (A) such Patent Collateral (in the case of CLAUSE (i))
or (B) all Patent Collateral (in the case of CLAUSE (ii)). Upon any such
Disposition or termination, the Administrative Agent will, at the Grantor's sole
expense, deliver to the Grantor, without any representations, warranties or
recourse of any kind whatsoever, all Patent Collateral held by the
Administrative Agent hereunder, and execute and deliver to the Grantor such
documents as the Grantor shall reasonably request to evidence such termination.

     SECTION 5. ACKNOWLEDGMENT. The Grantor does hereby further acknowledge and
affirm that the rights and remedies of the Administrative Agent with respect to
the security interest in the Patent Collateral granted hereby are more fully set
forth in the Agreement, the terms and provisions of which (including the
remedies provided for therein) are incorporated by reference herein as if fully
set forth herein.

     SECTION 6. LOAN DOCUMENT. This Security Agreement is a Loan Document
executed pursuant to the Credit Agreement and shall (unless otherwise expressly

                                    EXHIBIT A

                                       -2-
<Page>

indicated herein) be construed, administered and applied in accordance with the
terms and provisions thereof, including Article_X thereof.

     SECTION 7. COUNTERPARTS. This Security Agreement may be executed by the
parties hereto in several counterparts, each of which shall be deemed to be an
original and all of which shall constitute together but one and the same
agreement.

                                    * * * * *

                                    EXHIBIT A

                                       -3-
<Page>

     IN WITNESS WHEREOF, each of the parties hereto has caused this Security
Agreement to be duly executed and delivered by its Authorized Officer as of the
date first above written.

                                        [NAME OF GRANTOR]

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

                                        THE BANK OF NOVA SCOTIA,
                                            as Administrative Agent

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

                                    EXHIBIT A

                                       -4-
<Page>

                                                                      SCHEDULE I
                                                    to Patent Security Agreement

Item A. PATENTS

      ISSUED PATENTS

<Table>
<Caption>
COUNTRY        PATENT NO.        ISSUE DATE           INVENTOR(S)          TITLE
-------        ----------        ----------           -----------          -----
<S>            <C>               <C>                  <C>                  <C>
</Table>

                           PENDING PATENT APPLICATIONS

<Table>
<Caption>
COUNTRY        SERIAL NO.        FILING DATE          INVENTOR(S)          TITLE
-------        ----------        -----------          -----------          -----
<S>            <C>               <C>                  <C>                  <C>
</Table>

                       PATENT APPLICATIONS IN PREPARATION

<Table>
<Caption>
                                 EXPECTED
COUNTRY        DOCKET NO.        FILING DATE          INVENTOR(S)          TITLE
-------        ----------        -----------          -----------          -----
<S>            <C>               <C>                  <C>                  <C>
</Table>

Item B.  PATENT LICENSES

<Table>
<Caption>
COUNTRY OR                                  EFFECTIVE    EXPIRATION      SUBJECT
TERRITORY      LICENSOR      LICENSEE          DATE          DATE        MATTER
---------      --------      --------          ----          ----        ------
<S>            <C>           <C>            <C>          <C>             <C>
</Table>

                                    EXHIBIT A

                                       -5-
<Page>

                                                                       EXHIBIT B
                                     to Subsidiary Pledge and Security Agreement

                          TRADEMARK SECURITY AGREEMENT

     This TRADEMARK SECURITY AGREEMENT, dated as of _______, 200_ (this
"SECURITY AGREEMENT"), is made by [NAME OF GRANTOR] (the "GRANTOR") in favor of
THE BANK OF NOVA SCOTIA, as administrative agent (together with its successor(s)
thereto in such capacity, the "ADMINISTRATIVE AGENT") for each of the Secured
Parties.

                              W I T N E S S E T H :

     WHEREAS, pursuant to a Credit Agreement, dated as of February 20, 2002 (as
amended, supplemented, amended and restated or otherwise modified from time to
time, the "CREDIT AGREEMENT"), among American Achievement Corporation (formerly
known as Commemorative Brands Holding Corp.), a Delaware corporation (the
"BORROWER"), the Lenders, General Electric Capital Corporation, as the
Syndication Agent for the Lenders, Bankers Trust Company, as the Documentation
Agent for the Lenders and the Administrative Agent, the Lenders and the Issuer
have extended Commitments to make Credit Extensions to the Borrower;

     WHEREAS, in connection with the Credit Agreement, the Grantor has executed
and delivered a Subsidiary Pledge and Security Agreement, dated as of February
20, 2002 (as amended, supplemented, amended and restated or otherwise modified
from time to time, the "AGREEMENT");

     WHEREAS, pursuant to the Credit Agreement and the Agreement, the Grantor is
required to execute and deliver this Security Agreement and to grant to the
Administrative Agent a continuing security interest in all of the Trademark
Collateral (as defined below) to secure all Obligations; and

     WHEREAS, the Grantor has duly authorized the execution, delivery and
performance of this Security Agreement;

     NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Grantor agrees, for the
benefit of each Secured Party, as follows:

     SECTION 1. DEFINITIONS. Unless otherwise defined herein or the context
otherwise requires, terms used in this Security Agreement, including its
preamble and recitals, have the meanings provided in the Agreement.

     SECTION 2. GRANT OF SECURITY INTEREST. The Grantor hereby assigns, pledges,
hypothecates, charges, mortgages, delivers, and transfers to the Administrative
Agent, for its benefit and the ratable benefit of each other Secured Party, and
hereby grants to the Administrative Agent, for its benefit and the ratable
benefit of each other Secured Party, a continuing security interest in all of
the following property, whether now or hereafter existing or acquired by the
Grantor (the "TRADEMARK COLLATERAL"):

                                    EXHIBIT B

                                       -1-
<Page>

  (a) (i) all of its trademarks, trade names, corporate names, company names,
       business names, fictitious business names, trade styles, service marks,
       certification marks, collective marks, logos and other source or business
       identifiers, and all goodwill of the business associated therewith, now
       existing or hereafter adopted or acquired including those referred to in
       ITEM A of SCHEDULE I hereto, whether currently in use or not, all
       registrations and recordings thereof and all applications in connection
       therewith, whether pending or in preparation for filing, including
       registrations, recordings and applications in the United States Patent
       and Trademark Office or in any office or agency of the United States of
       America or any State thereof or any other country or political
       subdivision thereof or otherwise, and all common-law rights relating to
       the foregoing, and (ii) the right to obtain all reissues, extensions or
       renewals of the foregoing (collectively referred to as the "TRADEMARK");

  (b) all of the goodwill of the business connected with the use of, and
      symbolized by the items described in, clause (a), and to the extent
      applicable clause (b);

  (c) the right to sue third parties for past, present and future infringements
      of any Trademark Collateral described in clause (a) and, to the extent
      applicable, clause (b); and

  (d) all proceeds of, and rights associated with, the foregoing, including any
      claim by the Grantor against third parties for past, present or future
      infringement or dilution of any Trademark, Trademark registration or
      Trademark license, or for any injury to the goodwill associated with the
      use of any such Trademark or for breach or enforcement of any Trademark
      license and all rights corresponding thereto throughout the world.

     SECTION 3. SECURITY AGREEMENT. This Security Agreement has been executed
and delivered by the Grantor for the purpose of registering the security
interest of the Administrative Agent in the Trademark Collateral with the United
States Patent and Trademark Office and corresponding offices in other countries
of the world. The security interest granted hereby has been granted as a
supplement to, and not in limitation of, the security interest granted to the
Administrative Agent for its benefit and the ratable benefit of each other
Secured Party under the Agreement. The Agreement (and all rights and remedies of
the Administrative Agent and each Secured Party thereunder) shall remain in full
force and effect in accordance with its terms.

     SECTION 4. RELEASE OF LIENS. Upon (i) the Disposition of Trademark
Collateral in accordance with the Credit Agreement or (ii) the occurrence of the
Termination Date, the security interests granted herein shall automatically
terminate with respect to (A) such Trademark Collateral (in the case of CLAUSE
(i)) or (B) all Trademark Collateral (in the case of CLAUSE (ii)). Upon any such
Disposition or termination, the Administrative Agent will, at the Grantor's sole
expense, deliver to the Grantor, without any representations, warranties or
recourse of any kind whatsoever, all Trademark Collateral held by the
Administrative Agent hereunder, and execute and deliver to the Grantor such
documents as the Grantor shall reasonably request to evidence such termination.

     SECTION 5. ACKNOWLEDGMENT. The Grantor does hereby further acknowledge and
affirm that the rights and remedies of the Administrative Agent with respect to
the security interest in the Trademark Collateral granted hereby are more fully
set forth in the Agreement, the

                                    EXHIBIT B

                                     -2-
<Page>

terms and provisions of which (including the remedies provided for therein) are
incorporated by reference herein as if fully set forth herein.

     SECTION 6. LOAN DOCUMENT. This Security Agreement is a Loan Document
executed pursuant to the Credit Agreement and shall (unless otherwise expressly
indicated herein) be construed, administered and applied in accordance with the
terms and provisions thereof, including Article X thereof.

     SECTION 7. COUNTERPARTS. This Security Agreement may be executed by the
parties hereto in several counterparts, each of which shall be deemed to be an
original and all of which shall constitute together but one and the same
agreement.

                                    * * * * *

                                    EXHIBIT B

                                       -3-
<Page>

     IN WITNESS WHEREOF, each of the parties hereto has caused this Security
Agreement to be duly executed and delivered by its Authorized Officer as of the
date first above written.

                                        [NAME OF GRANTOR]

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

                                        THE BANK OF NOVA SCOTIA,
                                            as Administrative Agent

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

                                    EXHIBIT B

                                       -4-
<Page>

                                                                      SCHEDULE I
                                                 to Trademark Security Agreement

Item A. TRADEMARKS

                              REGISTERED TRADEMARKS

<Table>
<Caption>
COUNTRY           TRADEMARK             REGISTRATION NO.       REGISTRATION DATE
-------           ---------             ----------------       -----------------
<S>               <C>                   <C>                    <C>
</Table>

                         PENDING TRADEMARK APPLICATIONS

<Table>
<Caption>
COUNTRY           TRADEMARK             SERIAL NO.             FILING DATE
-------           ---------             ----------             -----------
<S>               <C>                   <C>                    <C>
</Table>

                      TRADEMARK APPLICATIONS IN PREPARATION

<Table>
<Caption>
                                                   EXPECTED            PRODUCTS/
COUNTRY        TRADEMARK         DOCKET NO.        FILING DATE         SERVICES
-------        ---------         ----------        -----------         --------
<S>            <C>               <C>               <C>                 <C>
</Table>

Item B. TRADEMARK LICENSES

<Table>
<Caption>
COUNTRY OR                                          EFFECTIVE        EXPIRATION
TERRITORY      TRADEMARK      LICENSOR  LICENSEE       DATE             DATE
---------      ---------      --------  --------       ----             ----
<S>            <C>            <C>       <C>         <C>              <C>
</Table>

                                    EXHIBIT B

                                       -5-
<Page>

                                                                       EXHIBIT C
                                     to Subsidiary Pledge and Security Agreement

                          COPYRIGHT SECURITY AGREEMENT

     This COPYRIGHT SECURITY AGREEMENT, dated as of ____ __, 200_ (this
"SECURITY AGREEMENT"), is made by [NAME OF GRANTOR] (the "GRANTOR") in favor of
THE BANK OF NOVA SCOTIA, as administrative agent (together with its successor(s)
thereto in such capacity, the "ADMINISTRATIVE AGENT") for each of the Secured
Parties.

                              W I T N E S S E T H :

     WHEREAS, pursuant to a Credit Agreement, dated as of February 20, 2002 (as
amended, supplemented, amended and restated or otherwise modified from time to
time, the "CREDIT AGREEMENT"), among American Achievement Corporation (formerly
known as Commemorative Brands Holding Corp.), a Delaware corporation (the
"BORROWER"), the Lenders, General Electric Capital Corporation, as the
Syndication Agent for the Lenders, Bankers Trust Company, as the Documentation
Agent for the Lenders and the Administrative Agent, the Lenders and the Issuer
have extended Commitments to make Credit Extensions to the Borrower;

     WHEREAS, in connection with the Credit Agreement, the Grantor has executed
and delivered a Subsidiary Pledge and Security Agreement, dated as of February
20, 2002 (as amended, supplemented, amended and restated or otherwise modified
from time to time, the "AGREEMENT");

     WHEREAS, pursuant to the Credit Agreement and the Agreement, the Grantor is
required to execute and deliver this Security Agreement and to grant to the
Administrative Agent a continuing security interest in all of the Copyright
Collateral (as defined below) to secure all Obligations; and

     WHEREAS, the Grantor has duly authorized the execution, delivery and
performance of this Security Agreement;

     NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Grantor agrees, for the
benefit of each Secured Party, as follows:

     SECTION 8. DEFINITIONS. Unless otherwise defined herein or the context
otherwise requires, terms used in this Security Agreement, including its
preamble and recitals, have the meanings provided in the Agreement.

     SECTION 9. GRANT OF SECURITY INTEREST. The Grantor hereby assigns, pledges,
hypothecates, charges, mortgages, delivers, and transfers to the Administrative
Agent, for its benefit and the ratable benefit of each other Secured Party, and
hereby grants to the Administrative Agent, for its benefit and the ratable
benefit of each other Secured Party, a continuing security interest in all of
the following Copyright Collateral (as defined below), whether now or hereafter
existing or acquired by the Grantor.

<Page>

     "COPYRIGHT COLLATERAL" means all copyrights of the Grantor, whether
statutory or common law, registered or unregistered and whether published or
unpublished, now or hereafter in force throughout the world including all of the
Grantor's right, title and interest in and to all copyrights registered in the
United States Copyright Office or anywhere else in the world and also including
the copyrights referred to in ITEM A of SCHEDULE I attached hereto, and
registrations and recordings thereof and all applications for registration
thereof, whether pending or in preparation, all copyright licenses, including
each copyright license referred to in ITEM B of SCHEDULE I attached hereto, the
right to sue for past, present and future infringements of any of the foregoing,
all rights corresponding thereto, all extensions and renewals of any thereof and
all proceeds of the foregoing, including licenses, royalties, income, payments,
claims, damages and proceeds of suit.

     SECTION 10. SECURITY AGREEMENT. This Security Agreement has been executed
and delivered by the Grantor for the purpose of registering the security
interest of the Administrative Agent in the Copyright Collateral with the United
States Copyright Office and corresponding offices in other countries of the
world. The security interest granted hereby has been granted as a supplement to,
and not in limitation of, the security interest granted to the Administrative
Agent for its benefit and the ratable benefit of each other Secured Party under
the Agreement. The Agreement (and all rights and remedies of the Administrative
Agent and each Secured Party thereunder) shall remain in full force and effect
in accordance with its terms.

     SECTION 11. RELEASE OF LIENS. Upon (i) the Disposition of Copyright
Collateral in accordance with the Credit Agreement or (ii) the occurrence of the
Termination Date, the security interests granted herein shall automatically
terminate with respect to (A) such Copyright Collateral (in the case of CLAUSE
(i)) or (B) all Copyright Collateral (in the case of CLAUSE (ii)). Upon any such
Disposition or termination, the Administrative Agent will, at the Grantor's sole
expense, deliver to the Grantor, without any representations, warranties or
recourse of any kind whatsoever, all Copyright Collateral held by the
Administrative Agent hereunder, and execute and deliver to the Grantor such
documents as the Grantor shall reasonably request to evidence such termination.

     SECTION 12. ACKNOWLEDGMENT. The Grantor does hereby further acknowledge and
affirm that the rights and remedies of the Administrative Agent with respect to
the security interest in the Copyright Collateral granted hereby are more fully
set forth in the Agreement, the terms and provisions of which (including the
remedies provided for therein) are incorporated by reference herein as if fully
set forth herein.

     SECTION 13. LOAN DOCUMENT. This Security Agreement is a Loan Document
executed pursuant to the Credit Agreement and shall (unless otherwise expressly
indicated herein) be construed, administered and applied in accordance with the
terms and provisions thereof, including Article X thereof.

     SECTION 14. COUNTERPARTS. This Security Agreement may be executed by the
parties hereto in several counterparts, each of which shall be deemed to be an
original and all of which shall constitute together but one and the same
agreement.

                                    * * * * *

                                    EXHIBIT C

                                       -2-
<Page>

     IN WITNESS WHEREOF, each of the parties hereto has caused this Security
Agreement to be duly executed and delivered by its Authorized Officer as of the
date first above written.

                                        [NAME OF GRANTOR]

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

                                        THE BANK OF NOVA SCOTIA,
                                            as Administrative Agent

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

                                    EXHIBIT C

                                       -3-
<Page>

                                                                      SCHEDULE I
                                                 to Copyright Security Agreement

Item A. COPYRIGHTS/MASK WORKS

                        REGISTERED COPYRIGHTS/MASK WORKS

<Table>
<Caption>
COUNTRY        REGISTRATION NO.      REGISTRATION     DATEAUTHOR(S)        TITLE
-------        ----------------      ------------     -------------        -----
<S>            <C>                   <C>              <C>                  <C>
</Table>

             COPYRIGHT/MASK WORK PENDING REGISTRATION APPLICATIONS

<Table>
<Caption>
COUNTRY        SERIAL NO.        FILING DATE          AUTHOR(S)            TITLE
-------        ----------        -----------          ---------            -----
<S>            <C>                   <C>              <C>                  <C>
</Table>

          COPYRIGHT/MASK WORK REGISTRATION APPLICATIONS IN PREPARATION

<Table>
<Caption>
                                 EXPECTED
COUNTRY        DOCKET NO.        FILING DATE          AUTHOR(S)            TITLE
-------        ----------        -----------          ---------            -----
<S>            <C>                   <C>              <C>                  <C>
</Table>

Item B. COPYRIGHT/MASK WORK LICENSES

<Table>
<Caption>
COUNTRY OR                                        EFFECTIVE           EXPIRATION
TERRITORY      LICENSOR          LICENSEE           DATE                 DATE
---------      --------          --------         --------            ---------
<S>            <C>               <C>              <C>                <C>
</Table>

                                    EXHIBIT C

                                       -4-
<Page>

                                                                         ANNEX I
                                 to the Subsidiary Pledge and Security Agreement

                            SUPPLEMENT TO SUBSIDIARY
                          PLEDGE AND SECURITY AGREMENT

     This SUPPLEMENT, dated as of ________________, _____ (this "SUPPLEMENT"),
is to the Subsidiary Pledge and Security Agreement, dated as of February 20,
2002 (as amended, supplemented, amended and restated or otherwise modified from
time to time, the "SUBSIDIARY PLEDGE AND SECURITY AGREEMENT"), among the
Grantors (such capitalized term, and other terms used in this Supplement, to
have the meanings set forth in Article I of the Subsidiary Pledge and Security
Agreement) from time to time party thereto, in favor of THE BANK OF NOVA SCOTIA,
as administrative agent (together with its successor(s) thereto in such
capacity, the "ADMINISTRATIVE AGENT") for each of the Secured Parties.

                              W I T N E S S E T H :

     WHEREAS, pursuant to a Credit Agreement, dated as of February 20, 2002 (as
amended, supplemented, amended and restated or otherwise modified from time to
time, the "CREDIT AGREEMENT"), among American Achievement Corporation (formerly
known as Commemorative Brands Holding Corp.), a Delaware corporation (the
"BORROWER"), the Lenders, General Electric Capital Corporation, as the
Syndication Agent for the Lenders, Bankers Trust Company, as the Documentation
Agent for the Lenders and the Administrative Agent, the Lenders and the Issuer
have extended Commitments to make Credit Extensions to the Borrower;

     WHEREAS, pursuant to the provisions of Section 7.6 of the Subsidiary Pledge
and Security Agreement, each of the undersigned is becoming a Grantor under the
Subsidiary Pledge and Security Agreement; and

     WHEREAS, each of the undersigned desires to become a "Grantor" under the
Subsidiary Pledge and Security Agreement in order to induce the Secured Parties
to continue to extend Credit Extensions under the Credit Agreement;

     NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, each of the undersigned agrees, for
the benefit of each Secured Party, as follows.

     SECTION 15. PARTY TO SUBSIDIARY PLEDGE AND SECURITY AGREEMENT, ETC. In
accordance with the terms of the Subsidiary Pledge and Security Agreement, by
its signature below each of the undersigned hereby irrevocably agrees to become
a Grantor under the Subsidiary Pledge and Security Agreement with the same force
and effect as if it were an original signatory thereto and each of the
undersigned hereby (a) agrees to be bound by and comply with all of the terms
and provisions of the Subsidiary Pledge and Security Agreement applicable to it
as a Grantor and (b) represents and warrants that the representations and
warranties made by it as a Grantor thereunder are true and correct as of the
date hereof, unless stated to relate solely to an earlier date, in which case
such representations and warranties shall be true and correct as of such

<Page>

earlier date. In furtherance of the foregoing, each reference to a "Grantor"
and/or "Grantors" in the Subsidiary Pledge and Security Agreement shall be
deemed to include each of the undersigned.

     SECTION 16. REPRESENTATIONS. Each of the undersigned Grantor hereby
represents and warrants that this Supplement has been duly authorized, executed
and delivered by it and that this Supplement and the Subsidiary Pledge and
Security Agreement constitute the legal, valid and binding obligation of each of
the undersigned, enforceable against it in accordance with its terms.

     SECTION 17. FULL FORCE OF SUBSIDIARY PLEDGE AND SECURITY AGREEMENT. Except
as expressly supplemented hereby, the Subsidiary Pledge and Security Agreement
shall remain in full force and effect in accordance with its terms.

     SECTION 18. SEVERABILITY. Wherever possible each provision of this
Supplement shall be interpreted in such manner as to be effective and valid
under applicable law, but if any provision of this Supplement shall be
prohibited by or invalid under such law, such provision shall be ineffective to
the extent of such prohibition or invalidity, without invalidating the remainder
of such provision or the remaining provisions of this Supplement or the
Subsidiary Pledge and Security Agreement.

     SECTION 19. GOVERNING LAW, ENTIRE AGREEMENT, ETC. THIS SUPPLEMENT SHALL BE
DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE
STATE OF NEW YORK (INCLUDING FOR SUCH PURPOSE SECTIONS 5-1401 AND 5-1402 OF THE
GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK). This Supplement and the other
Loan Documents constitute the entire understanding among the parties hereto with
respect to the subject matter thereof and supersede any prior agreements,
written or oral, with respect thereto.

     SECTION 20. COUNTERPARTS. This Supplement may be executed by the parties
hereto in several counterparts, each of which shall be deemed to be an original
and all of which shall constitute together but one and the same agreement.

                                    * * * * *

<Page>

     IN WITNESS WHEREOF, each of the parties hereto has caused this Supplement
to be duly executed and delivered by its Authorized Officer as of the date first
above written.

                                        [NAME OF ADDITIONAL SUBSIDIARY]

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

                                        [NAME OF ADDITIONAL SUBSIDIARY]

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

ACCEPTED AND AGREED FOR ITSELF
AND ON BEHALF OF THE SECURED PARTIES:

THE BANK OF NOVA SCOTIA,
as Administrative Agent

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

<Page>

                                                                      SCHEDULE I
                                                            to Supplement No.___
                                     to Subsidiary Pledge and Security Agreement
                                               ([Name of Additional Subsidiary])

                                   CORPORATION

                                                      COMMON STOCK

<Table>
<Caption>
                                NUMBER
ISSUER (CORPORATE)              OF       AUTHORIZED   OUTSTANDING    % OF SHARES
------------------    CERT. #   SHARES   SHARES       SHARES         PLEDGED
                      -------   ------   ------       ------         -------
<S>                   <C>       <C>      <C>          <C>            <C>
</Table>

                      LIMITED LIABILITY COMPANY INTERESTS

<Table>
<Caption>
ISSUER (LIMITED LIABILITY   % OF LIMITED LIABILITY     TYPE OF LIMITED LIABILITY
COMPANY)                    COMPANY INTERESTS PLEDGED  COMPANY INTERESTS PLEDGED
--------                    -------------------------  -------------------------
<S>                         <C>                        <C>
</Table>

                              PARTNERSHIP INTERESTS

<Table>
<Caption>
                                           % OF PARTNERSHIP    % OF PARTNERSHIP
ISSUER (PARTNERSHIP)                       INTERESTS OWNED     INTERESTS PLEDGED
--------------------                       ---------------     -----------------
<S>                                        <C>                 <C>
</Table>

<Page>

                                                                     SCHEDULE II
                                                            to Supplement No.___
                                     to Subsidiary Pledge and Security Agreement
                                               ([Name of Additional Subsidiary])

Item A.     Jurisdiction of Incorporation; Trade Names

Item B.     Location of Inventory, Equipment

Item C.     Federal Taxpayer Identification Number

Item D.     Government Contracts

<Page>

                                                                    SCHEDULE III
                                                            to Supplement No.___
                                     to Subsidiary Pledge and Security Agreement
                                               ([Name of Additional Subsidiary])

Item A. PATENTS

         ISSUED PATENTS

<Table>
<Caption>
COUNTRY        PATENT NO.        ISSUE DATE           INVENTOR(S)          TITLE
-------        ----------        ----------           -----------          -----
<S>            <C>               <C>                  <C>                  <C>
</Table>

                          PENDING PATENT APPLICATIONS

<Table>
<Caption>
COUNTRY        SERIAL NO         FILING DATE          INVENTOR(S)          TITLE
-------        ---------         -----------          -----------          -----
<S>            <C>               <C>                  <C>                  <C>
</Table>

                       PATENT APPLICATIONS IN PREPARATION

<Table>
<Caption>
                                 EXPECTED
COUNTRY        DOCKET NO.        FILING DATE          INVENTOR(S)          TITLE
-------        ----------        -----------          -----------          -----
<S>            <C>               <C>                  <C>                  <C>
</Table>

Item B. PATENT LICENSES

<Table>
<Caption>
COUNTRY OR                                    EFFECTIVE    EXPIRATION    SUBJECT
TERRITORY             LICENSOR     LICENSEE      DATE          DATE      MATTER
---------             --------     --------   ---------    ----------    ------
<S>                   <C>          <C>        <C>          <C>           <C>
</Table>

<Page>

                                                                     SCHEDULE IV
                                                            to Supplement No.___
                                     to Subsidiary Pledge and Security Agreement
                                               ([Name of Additional Subsidiary])

Item A.  TRADEMARKS

                             REGISTERED TRADEMARKS

<Table>
<Caption>
Country            Trademark           Registration No.        Registration Date
-------            ---------           ----------------        -----------------
<S>                <C>                 <C>                     <C>
</Table>

                         PENDING TRADEMARK APPLICATIONS

<Table>
<Caption>
COUNTRY            TRADEMARK           SERIAL NO.              FILING DATE
-------            ---------           ----------              -----------
<S>                <C>                 <C>                     <C>
</Table>

                     TRADEMARK APPLICATIONS IN PREPARATION

<Table>
<Caption>
                                                   EXPECTED            PRODUCTS/
COUNTRY           TRADEMARK       DOCKET NO.       FILING DATE         SERVICES
-------           ---------       ----------       -----------         --------
<S>               <C>             <C>              <C>                 <C>
</Table>

Item B.  TRADEMARK LICENSES

<Table>
<Caption>
COUNTRY OR                                              EFFECTIVE     EXPIRATION
TERRITORY      TRADEMARK     LICENSOR    LICENSEE         DATE           DATE
---------      ---------     --------    --------       --------      ---------
<S>             <C>           <C>         <C>           <C>           <C>
</Table>

<Page>

                                                                      SCHEDULE V
                                                           to Supplement No. ___
                                     to Subsidiary Pledge and Security Agreement
                                               ([Name of Additional Subsidiary])

Item A. COPYRIGHTS/MASK WORKS

                        REGISTERED COPYRIGHTS/MASK WORKS

<Table>
<Caption>
COUNTRY       REGISTRATION NO.     REGISTRATION DATE      AUTHOR(S)        TITLE
-------       ----------------     -----------------      ---------        -----
<S>           <C>                  <C>                    <C>              <C>
</Table>

             COPYRIGHT/MASK WORK PENDING REGISTRATION APPLICATIONS

<Table>
<Caption>
COUNTRY       SERIAL NO.           FILING DATE            AUTHOR(S)        TITLE
-------       ----------           -----------            ---------        -----
<S>           <C>                  <C>                    <C>              <C>
</Table>

          COPYRIGHT/MASK WORK REGISTRATION APPLICATIONS IN PREPARATION

<Table>
<Caption>
                                    EXPECTED
COUNTRY       DOCKET NO.            FILING DATE           AUTHOR(S)        TITLE
-------       ----------            -----------           ---------        -----
<S>           <C>                  <C>                    <C>              <C>
</Table>

Item B. COPYRIGHT/MASK WORK LICENSES

<Table>
<Caption>
COUNTRY OR                              EFFECTIVE       EXPIRATION       SUBJECT
TERRITORY     LICENSOR    LICENSEE         DATE            DATE          MATTER
---------     --------    --------      ---------       ----------       ------
<S>           <C>         <C>           <C>             <C>              <C>
</Table>

<Page>

                                                                     SCHEDULE VI
                                                            to Supplement No.___
                                     to Subsidiary Pledge and Security Agreement
                                               ([Name of Additional Subsidiary])

                       TRADE SECRET OR KNOW-HOW LICENSES

<Table>
<Caption>
COUNTRY OR                              EFFECTIVE       EXPIRATION       SUBJECT
TERRITORY     LICENSOR    LICENSEE         DATE            DATE          MATTER
---------     --------    --------      ---------       ----------       ------
<S>           <C>         <C>           <C>             <C>              <C>
</Table>

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00034-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00034-of-00352.parquet"}]]