Document:

<PAGE>

                                                                     Exhibit 4.5

THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
OR ANY STATE SECURITIES LAWS AND MAY NOT BE TRANSFERRED, SOLD, PLEDGED OR
OTHERWISE DISPOSED OF EXCEPT (A) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
OR PURSUANT TO AN AVAILABLE EXEMPTION FROM REGISTRATION UNDER SUCH ACT AND
APPLICABLE STATE SECURITIES LAWS AND (B) IN ACCORDANCE WITH ALL APPLICABLE
SECURITIES LAWS OF THE UNITED STATES AND OTHER JURISDICTIONS. THE HOLDER OF THIS
NOTE IS SUBJECT TO THE TERMS OF THE PURCHASE AGREEMENT, DATED AS OF JUNE 27,
2002 (AS AMENDED, SUPPLEMENTED OR MODIFIED FROM TIME TO TIME), AMONG PCA LLC,
THE GUARANTORS LISTED ON THE SIGNATURE PAGES THEREOF, GS MEZZANINE PARTNERS II,
L.P., AND GS MEZZANINE PARTNERS II OFFSHORE, L.P.

The following information is provided pursuant to Treas. Reg. Section 1.1275-3:

This debt instrument is issued at original issue discount.

The Company's Chief Financial Officer (815 Matthews - Mint Hill Road, Matthews,
NC 28105), as a representative of the Company, will, beginning no later than 10
days after the Issue Date, promptly make available on request to holder(s) of
this debt instrument the following information: issue price, amount of original
issue discount, issue date, and yield to maturity.

<PAGE>

<TABLE>
<S>                <C>                                                           <C>
No. [___________]                                                                       $__________
                    13-3/4% Senior Subordinated Note due 2010

PCA LLC, a Delaware limited liability  company,  promises to pay to  [          ]  or its registered
assigns,  the principal sum of Dollars on June 27, 2010.
</TABLE>

Interest Payment Dates:  May 15 and November 15.
Record Dates:  April 15 and October 15.
Additional provisions of this Note are set forth on the other side of this Note.

         IN WITNESS WHEREOF, the parties have caused this instrument to be duly
executed.

                                                PCA LLC

                                                By:
                                                   -----------------------------
                                                Name:
                                                Title:
Dated:  June 27, 2002

<PAGE>

                          FORM OF REVERSE SIDE OF NOTE

                    13-3/4% Senior Subordinated Note due 2010

1.  Interest.

         The principal amount of this Note from time to time outstanding shall
bear interest, payable semi-annually in arrears in cash on May 15 and November
15 of each year commencing November 15, 2002, and if different, on the Stated
Maturity Date (each, an "Interest Payment Date"), at the rate of (i) 1.5% per
annum plus (ii) the effective yield at the Closing Date of the Senior Notes
interest rate (the "Senior Notes Rate"), until the principal amount of this Note
has been paid in full. Interest on the principal amount of this Note shall
accrue from the Closing Date, or the most recent date to which interest has been
paid in cash until the principal of this Note is due and payable. All accrued
and unpaid interest payable with respect to this Note shall be paid in cash.

         If an Event of Default occurs and is continuing, this Note will accrue
interest at a rate per annum equal to (a) the Senior Notes Rate, plus (b) 200
basis points, until such time as no Event of Default shall be continuing (to the
extent that the payment of such interest shall be legally enforceable).

         Interest shall be computed on the basis of a 360-day year of twelve
30-day months. The interest so payable, and punctually paid or duly provided
for, on any Interest Payment Date will, as provided in this Note and the
Agreement (as defined below), be paid to the Person in whose name this Note is
registered at the close of business on the "Regular Record Date" for such
interest, which shall be the fifteenth calendar day (whether or not a Business
Day) of the calendar month preceding the calendar month in which the Interest
Payment Date occurs. Notwithstanding the foregoing, if this Note is issued after
a Regular Record Date and prior to an Interest Payment Date, the record date for
such Interest Payment Date shall be the original issue date.

2. Method of Payment.

         Holders must surrender Notes to collect principal and premium payments.
The Company shall pay the principal amount in money of the United States of
America that at the time of payment is legal tender for payment of public and
private debts. The Company will make all cash payments in respect of a
certificated Note (including principal and interest), by mailing a check to the
registered address of each Holder thereof; provided, however, that payments on
the Notes may also be made, in the case of a Holder of at least $1,000,000
aggregate principal amount of Notes, by wire transfer to a U.S. dollar account
maintained by the payee with a bank in the United States if such Holder elects
payment by wire transfer by giving written notice to such effect designating
such account no less than 15 days immediately preceding the due date for
payment.

3.  Purchase Agreement

         The Company issued the Notes, limited in initial aggregate principal
amount to $10,000,000, under a Purchase Agreement, dated as of June 27, 2002
(the "Agreement"), among

<PAGE>

the Company, the Guarantors and the Purchasers. The terms of the Notes include
those stated in the Agreement. Terms defined in the Agreement and used but not
defined herein have the meanings ascribed thereto in the Agreement. The Notes
are subject to all terms and provisions of the Agreement, and Holders are
referred to the Agreement for a statement of such terms and provisions.

         The Agreement imposes certain limitations on the ability of the Company
and its Subsidiaries to, among other things, make certain Investments and other
Restricted Payments, pay dividends and other distributions, incur Indebtedness,
enter into consensual restrictions upon the payment of certain dividends and
distributions by such Subsidiaries, enter into or permit certain transactions
with Affiliates and make asset sales. The Agreement also imposes limitations on
the ability of the Company to consolidate or merge with or into any other Person
or convey, transfer or lease all or substantially all of the property of the
Company. To guarantee the due and punctual payment of the principal of and
interest on the Notes and all other amounts payable by the Company under the
Agreement and the Notes when and as the same shall be due and payable, whether
at maturity, by acceleration or otherwise, according to the terms of the Notes
and the Agreement, the Guarantors have jointly and severally unconditionally
guaranteed the Obligations on an unsecured senior subordinated basis pursuant to
the terms of the Agreement.

4.  Optional Redemption.

         The Notes are subject to redemption, at the election of the Company,
upon not less than ten (10) nor more than sixty (60) days' written notice, in
whole or in part, at any time on or after June 27, 2005, and in the event of (A)
an Initial Public Offering of the Company on or after April 1, 2004, or (B) the
occurrence of a Change of Control on or after April 1, 2004, in each case for
cash equal to the sum of (x) the redemption price (the "Redemption Price")
listed in the table below applicable to the date (the "Redemption Date") as of
which such redemption is being effected, multiplied by the principal amount of
the Notes being redeemed as of the Interest Payment Date immediately preceding
the Redemption Date, plus (y) all accrued and unpaid interest since the
preceding Interest Payment Date, with respect only to Notes being repaid:

------------------------------------------------------------------------------
Redemption Date                                 Redemption Price

------------------------------------------------------------------------------
April 2, 2004 - June 26, 2005                   106%
------------------------------------------------------------------------------
June 27, 2005- June 26, 2006                    105%
------------------------------------------------------------------------------
June 27, 2006- June 26, 2007                    104%
------------------------------------------------------------------------------
June 27 2007- June 26, 2008                     103%
------------------------------------------------------------------------------
June 27, 2008- June 26, 2009                    102%
------------------------------------------------------------------------------
June 27, 2009- June 26, 2010                    101%
------------------------------------------------------------------------------
At June 27, 2010                                100%
------------------------------------------------------------------------------

<PAGE>

         Notwithstanding the foregoing, at any time prior to April 1, 2004, up
to 35% of the original principal amount of the Notes as of the Closing Date may
be redeemed from the gross proceeds of an Initial Public Offering or any
subsequent public offering and issuance of common equity of Holdco at a
Redemption Price equal to 106% of the principal amount of the Notes being
redeemed as of the Interest Payment Date immediately preceding the Redemption
Date, together with all accrued and unpaid interest since the last Interest
Payment Date, with respect only to Notes being repaid, provided that at least
65% of the principal amount of the Notes remains outstanding.

In addition, at any time on or prior to June 27, 2005, all or any part of
original principal amount of the Notes may be redeemed at a cash price equal to
the sum of (x) 100% of the portion of the original principal amount of the Notes
being redeemed, plus (y) all accrued and unpaid interest thereon, plus (z) a
premium (the "Make-Whole Premium") equal to (i) an amount equal to the present
value of the remaining payments of interest on and redemption price of the Notes
being redeemed, assuming that on the third anniversary the entire principal
amount of such Notes then outstanding will be redeemed at 106% of the principal
amount thereof, together with accrued interest, and using an annual discount
factor (applied semi-annually) equal to the Treasury Rate plus 50 basis points,
less (ii) the original principal amount of the Notes being redeemed; provided,
however, that in no case shall the Make-Whole Premium be less than zero.

"Treasury Rate" shall mean a rate equal to the then current yield to maturity on
the most actively traded U.S. Treasury security having a maturity nearest the
third anniversary from the Closing Date. In the event there are not actively
traded U.S. Treasury securities with a maturity equal to the remaining average
life of the Notes, then the yield to maturity shall be determined by linear
interpolation using the closest, but shorter, maturity for actively traded U.S.
Treasury securities and the closest, but longer, maturity for actively traded
U.S. Treasury maturities.

Each of the foregoing prepayment options shall relate to an aggregate principal
amount of Notes of at least $2,000,000. Notwithstanding the foregoing, no
optional redemption of the Notes pursuant to this section 4 shall be made until
all Obligations in respect of the Holdco Notes have been satisfied and paid in
full.

5.  Sinking Fund.

         The Notes are not subject to any sinking fund.
6.  Notice of Redemption.

         Notice of redemption will be sent by facsimile or by first-class mail
at least ten (10) days but not more than sixty (60) days before the redemption
date to each Holder of Notes to be redeemed at such Holder's registered address.
Notes in denominations larger than $1,000 (in principal amount) may be redeemed
in part but only in multiples of $1,000 (in principal amount).

<PAGE>

7.  Offer to Repurchase Notes upon Change of Control and Asset Disposition.

                  (a) Upon the occurrence of a Change of Control, the Company
shall offer to repurchase all of the Notes at a purchase price in cash equal to
101% of the principal amount of the Notes to be repurchased, plus accrued and
unpaid interest thereon to the date of repurchase (subject to the right of
Holders of record on the relevant record date to receive interest due on the
relevant Interest Payment Date) as provided in, and subject to the terms of, the
Agreement.

                  (b) When the aggregate amount of the Net Cash Proceeds from an
Asset Sale that the Company does not apply, or decide not to apply, in
accordance with Section 8.4(b) of the Agreement (the "Net Proceeds Offer
Amount") exceeds $5,000,000, the Company shall make a Net Proceeds Offer to
purchase the maximum principal amount of Notes that may be purchased with the
Net Proceeds Offer Amount, at an offer price in an amount equal to 100% of the
principal amount of the Notes to be purchased, plus accrued and unpaid interest
thereon, if any, to the date of purchase.

8.  Denominations.

         The Notes are in registered form without coupons in denominations of
$1,000 (in principal amount) and multiples thereof.

9.  Subordination

         The Notes are subordinated to Senior Indebtedness, as defined in the
Agreement. To the extent provided in the Agreement, Senior Indebtedness must be
paid before the Notes may be paid. The Company agrees, and each Holder by
accepting a Note agrees, to the subordination provisions contained in the
Agreement.

10.  Persons Deemed Owners.

         The registered Holder of this Note may be treated as the owner of it
for all purposes.

11.  Amendment, Waiver.

         The Agreement or the Notes may be amended and any default may be waived
without prior notice to any Holder but with the written consent of the Required
Holders; provided, however, that no such amendment or waiver may, without the
prior written consent of the Holder of each Note then outstanding and affected
thereby, (a) reduce the principal of (or premium, if any) or rate of interest
on, any Note, (b) postpone the date fixed for any payment of principal of (or
premium, if any) or interest on any Note (other than a waiver of any increase in
the interest rate on the Notes upon the occurrence of an Event of Default
pursuant to Section 12.2 of the Agreement), (c) change the ranking or priority
of the Notes or the percentage of the aggregate principal amount of the Notes
the Holders of which shall be required to consent or take any other action under
Section 16.4 or any other provision of the Agreement, (d) modify or change any
provision of the Agreement (or the related definitions) affecting the
subordination or ranking of the Notes or any Guarantee in a manner which
adversely affects the Holders or (e) release any Guarantor from any of its
obligations under its Guarantee or the Agreement, otherwise than in accordance
with the terms of the Agreement; provided, further, that no such amendment or

<PAGE>

waiver may, without the prior written consent of GS Mezzanine (so long as GS
Mezzanine owns any Securities), amend or waive the provisions of Sections 7.7 or
7.9 of the Agreement. No amendment or waiver of the Agreement will extend to or
affect any obligation, covenant, agreement, Default or Event of Default not
expressly amended or waived or thereby impair any right consequent thereon.

12.  Defaults, Remedies and Acceleration.

         If an Event of Default (other than an Event of Default relating to
certain events of bankruptcy, insolvency or reorganization of the Company)
occurs and is continuing, the Holders of a majority in aggregate principal
amount of the outstanding Notes may declare the principal amount of and accrued
but unpaid interest on all the Notes to be due and payable, subject to the terms
and conditions of the Purchase Agreement.

13.  No Recourse Against Others.

         Other than the Company or the Guarantors, no past, present or future
director, officer, employee or stockholder or Affiliate of such parties, as
such, of the Company or any of its Subsidiaries shall not have any liability for
any obligations of the Company or any of its Subsidiaries under the Notes, the
Agreement or any related document or for any claim based on, in respect of or by
reason of such obligations or their creation. By accepting a Note, each Holder
waives and releases all such liability. The waiver and release are part of the
consideration for the issuance of the Notes.

14.  Abbreviations.

         Customary abbreviations may be used in the name of a Holder or an
assignee, such as TEN COM (= tenants in common), TEN ENT (= tenants by the
entireties), JT TEN (= joint tenants with rights of survivorship and not as
tenants in common), CUST (= custodian), and U/G/M/A (= Uniform Gift to Minors
Act).

15.  Governing Law.

         THIS NOTE WILL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN
ACCORDANCE WITH THE SUBSTANTIVE LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING
EFFECT TO ANY CONFLICTS OF LAW RULE OR PRINCIPLE THAT MIGHT REQUIRE THE
APPLICATION OF THE LAWS OF ANOTHER JURISDICTION.

<PAGE>

                                 ASSIGNMENT FORM

To assign this Note, fill in the form below:

I or we assign and transfer this Note to

         (Print or type assignee's name, address, and zip code)

         (Insert assignee's soc. sec. or tax I.D. No.)

and irrevocably  appoint  [___________]  agent to transfer this Note on the
books of the Company. The agent may substitute another to act for him.

-----------------------------------------------------------------------

Date:                            Your Signature:
     ----------------------------                ----------------------

-----------------------------------------------------------------------
Sign exactly as your name appears on the other side of this Note.

<PAGE>

                       OPTION OF HOLDER TO ELECT PURCHASE

         If you want to have this Note purchased by the Company pursuant to
Section 7.8 (Change of Control) of the Agreement, check the box:

                  [ ]

         If you want to have only part of this Note (equal to $1,000 or an
integral multiple thereof) purchased by the Company pursuant to Section 7.8
(Change of Control) of the Agreement, state the principal amount of such part:

                  $

Date:                            Your Signature:
     ---------------------------                 -------------------------------
                                                  (Sign exactly as your name
                                                   appears on the other side of
                                                   the Note)

         Signature Guarantee:
                              --------------------------------------------------
                                   Signature must be guaranteed by a participant
                                   in a recognized signature guaranty medallion
                                   program or other signature guarantor
                                   acceptable to the Company.<PAGE>

                                                                    Exhibit 10.6

PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION. SUCH PORTIONS ARE DESIGNATED "[***]."

                        WAL-MART MASTER LICENSE AGREEMENT

         THIS LICENSE is entered into as of the 4th day of April, 2002 by and
between Licensor and Licensee as hereinafter defined.

         WHEREAS, in consideration of the obligation of Licensee to pay License
Fees as herein provided and in consideration of the Standard Terms and
Conditions set forth herein, Licensor hereby licenses to Licensee, and Licensee
hereby takes from Licensor, the Licensed Premises, for the License Term
specified below, and upon the terms and conditions set forth in this License.

                                BASIC PROVISIONS

1.       Licensor: Wal-Mart Stores, Inc., a Delaware corporation, on behalf of
         itself, or alternatively, where appropriate, on behalf of, and as
         authorized agent for, its affiliates, as designated in the Commencement
         Agreement and/or New Store License Attachment applicable to the
         particular store identified on such Commencement Agreement and/or New
         Store License Attachment; Attn: Sam Dunn, 702 SW 8/th/ Street,
         Bentonville, AR 72716.

2.       Licensee/Address: PCA International, Inc.; 815 Matthews-Mint Hill Road,
         Matthews, NC 28105, United States of America, Attn: Mr. Barry Feld

3.       Licensee's Trade Name(s): Wal-Mart Portrait Studio

4.       Licensed Premises: The area Licensed by Licensee within the Wal-Mart
         Store (the "Store") as described on the Attachment A and Attachment B
         documents.

5.       Grand Opening: The time at which Licensor first opens for business to
         the public.

6.       Targeted Commencement Date: See section 2.2.

7.       Licensee's Hours of Operation: See Section 7.1.

8.       License Term: Commencing on the Commencement Date as shown on
Attachment A or Attachment B (or as modified by Exhibit A, Commencement
Agreement) and continuing through the last day of the month in which the fifth
anniversary of the Commencement Date occurs. This License shall renew
automatically in accordance with Exhibit B. References to the "License Term"
shall refer to the original term and any extensions or renewals thereof.

9.       License Fees: See Section 1.1(i).

10.      Security Deposit: N/A. Security Deposit to be refunded upon Licensee
satisfactorily terminating the License and vacating the premises. Security
Deposit will be forfeited if Licensee terminates prior to License expiration or
as otherwise stated in this License.

11.      Permitted Use: See Section 1.1(f).

EXECUTED AS OF THE DATE HEREIN ABOVE STATED.

<TABLE>
<S>                                               <C>
LICENSOR: WAL-MART STORES, INC.                   LICENSEE: PCA INTERNATIONAL, INC.

     By:         /s/Martin G. Gilbert, Jr.        By:             /s/ Barry J. Feld
         ------------------------------------         ----------------------------------------
         Director Wal-Mart Realty                 Title:            CEO
                                                        --------------------------------------

Attest:  ________/s/_________________________     Attest:         /s/ James Robert Wren
           Assistant Secretary                           -------------------------------------
                                                           Secretary
</TABLE>

                                       1

<PAGE>

                                   ARTICLE I. DEFINITIONS
     1.1      Definitions

                               ARTICLE II. GENERAL PROVISIONS
     2.1      Quiet Possession
     2.2      Target Commencement Date

                    ARTICLE III. ACCEPTANCE AND CONSTRUCTION OF PREMISES
     3.1      Acceptance of Licensed Premises
     3.2      Possession
     3.3      Tender of Possession
     3.4      Store Renovation

                                  ARTICLE IV. LICENSE FEES
     4.1      License Fees
     4.2      Taxes
     4.3      Sales Report
     4.4      Adjustments
     4.5      Interest
     4.6      Quarterly Statements

                            ARTICLE V. SALES REPORTS AND RECORDS
     5.1      Statement of Gross Sales
     5.2      Records
     5.3      Licensor's Right to Audit

                                   ARTICLE VI. COMMON AREAS
     6.1      Store Access
     6.2      Parking

                        ARTICLE VII. USE AND CARE OF LICENSED PREMISES
     7.1      Operation
     7.2      Customer Service Complaints
     7.3      Customer Service Line
     7.4      Trade Name
     7.5      Care of Licensed Premises
     7.6      Permits and Other Requirements

                  ARTICLE VIII. MAINTENANCE AND REPAIR OF LICENSED PREMISES
     8.1      Licensor's Responsibilities
     8.2      Licensee's Responsibilities
     8.3      Licensee's Responsibilities Upon Quitting the Licensed Premises

                          ARTICLE IX. ALTERATIONS AND CONSTRUCTION
     9.1      Alterations
     9.2      Construction
     9.3      Covenants Against Liens

                            ARTICLE X. LICENSOR'S RIGHT OF ACCESS:
     10.1     Licensor's Right of Access
     10.2     Use of Roof

                                ARTICLE XI. SIGNS; STOREFRONTS
     11.1     Signs; Storefronts
     11.2     Building Signage
     11.3     Installation and Permitting
     11.4     Licensor Approval
     11.5     Restrictions

                                       2

<PAGE>

                                  ARTICLE XII. UTILITIES
     12.1     Utility Charge
     12.2     Interruption of Utilities

                   ARTICLE XIII. INDEMNITY AND PUBLIC LIABILITY INSURANCE
     13.1     Injury and Damage
     13.2     Insurance

                       ARTICLE XIV. NON-LIABILITY FOR CERTAIN DAMAGES
     14.1     Licensor Non-Liability
     14.2     Licensee Non-Liability
     14.3     Mutual Waiver of Subrogation

                              ARTICLE XV. DAMAGES BY CASUALTY
     15.1     Notice to Licensor
     15.2     Licensor's Repair of Casualty Damage
     15.3     Licensee's Repair of Casualty Damage
     15.4     Operation of Licensed Premises After Casualty
     15.5     Licensee's Insurance

                                 ARTICLE XVI. CONDEMNATION
     16.1     Condemnation Equal to or Greater Than Thirty Percent
     16.2     Condemnation Less Than Thirty Percent
     16.3     Condemnation of Common Area
     16.4     Condemnation Compensation

                          ARTICLE XVII. ASSIGNMENT AND SUBLICENSING
     17.1     Licensor's Consent
     17.2     Corporations as Licensees
     17.3     Effect of Licensor Consent
     17.4     Licensor's License
     17.5     No Encumbrances
     17.6     Transfer by Licensor
     17.7     Franchises

                             ARTICLE XVIII. TAXES AND INSURANCE
     18.1     Licensee's Responsibility for Taxes
     18.2     Licensor's Responsibility for Taxes
     18.3     License Fees Taxes, etc

                        ARTICLE XIX. DEFAULT BY LICENSEE AND REMEDIES
     19.1     Events of Default
     19.2     Licensor's Remedies
     19.3     Injunction
     19.4     Attorney's Fees
     19.5     Additions to Minimum License Fees
     19.6     Remedies are Cumulative

                    ARTICLE XX. LICENSOR'S CONTRACTUAL SECURITY INTEREST
     20.1     Deleted
     20.2     Deleted

                                ARTICLE XXI. HOLDING OVER
     21.1     Holdover Status

                       ARTICLE XXII. SUBORDINATION AND ATTORNMENT
     22.1     Mortgages, etc
     22.2     Notice to Mortgagee
     22.3     Estoppel Certificates

                                       3

<PAGE>

     22.4     Attornment

                          ARTICLE XXIII. NOTICES & CORRESPONDENCE
     23.1     Notices
     23.2     Notice Binding

                                 ARTICLE XXIV. REGULATIONS
     24.1     Compliance with Regulations
     24.2     Hazardous Waste

                                  ARTICLE XXV. RELOCATION
     25.1     Relocation

                                ARTICLE XXVI. MISCELLANEOUS
     26.1     No Partnership
     26.2     Consents
     26.3     Waivers
     26.4     Force Majeure
     26.5     Governing Law
     26.6     Captions
     26.7     Number; Gender
     26.8     Successors
     26.9     Entire Agreement
     26.10    Other Payments
     26.11    Store Closing
     26.12    Licensee
     26.13    Approvals
     26.14    Restrictions
     26.15    Advertisements
     26.16    Licensor's Default & Liability
     26.17    Right to Remove Location from License/Terminate
     26.18    Right to Terminate all Locations
     26.19    Attorney's Fees

                                       4

<PAGE>

          STANDARD TERMS AND CONDITIONS FOR WAL-MART LICENSE AGREEMENT

                             ARTICLE I. DEFINITIONS

1.1      Definitions: The following capitalized terms shall have the meanings
shown. Other capitalized terms appear elsewhere in this License.

                  (a)      Percentage License Fees: Intentionally omitted.

                  (b)      Natural Break Point: Intentionally omitted.

                  (c)      Percentage License Fees Rate: Intentionally omitted.

                  (d)      License Fees: this includes Minimum License Fees,
                  Percentage License Fees and any additional or other License
                  Fees or License Fees tax as provided for in this License.

                  (e)      Dry Run: a test of all equipment used in the
                  operation of Licensee's business as well as a test of any
                  other aspects of Licensee's business to assure full
                  operational abilities.

                  (f)      Licensee's Business: the operation of a portrait
                  studio department, whether permanent or temporary, under the
                  Trade Name within a Licensed Premise, whereby only the
                  following merchandise is sold, and/or the following services
                  are provided to the public: the taking and sale of portrait
                  photographs and related products, the customization of
                  portraits including oil portraits, the taking of passport and
                  citizenship photographs, the sale of picture frames and other
                  portrait accessories which do not compete with those sold by
                  Licensor from time to time in its stores, the sale of
                  photographic plaques, the copying and restoration of old
                  photographs, the sale of portraiture related software and
                  digital images, and the provision and sale of photographic
                  lamination services, together with such other services and/or
                  merchandise as may be approved by Licensor in writing from
                  time to time, in its sole and absolute discretion, which
                  approval may be withheld for any reason whatsoever; and
                  "Licensee's Businesses" shall mean more than one or all of
                  Licensee's Businesses collectively, as the case may be.

                  (g)      High Volume Location: any of Licensee's Businesses
                  that has generated over $150,000 in Gross Sales during the
                  preceding twelve (12) months.

                  (h)      Increase Date: the date on which an increase of
                  one-half percentage point (0.5%) actually takes effect.

                  (i)      Minimum License Fees: the amount of money paid by
                  Licensee to Licensor, expressed as a percentage of Gross Sales
                  made by Licensee, its employees, concessionaires, agents,
                  licensees, contractors, successors and assigns in connection
                  with such Licensee's Business.

                  (j)      Licensee's Studio Business: the operation of a
                  portrait studio department on a permanent basis under the
                  Trade Name within a Licensed Premise.

                  (k)      Licensee's Travelling Business: the operation of a
                  portrait studio department on a travelling or temporary basis
                  under the Trade Name within a Licensed Premise.

                  (l)      Net New Stores: the number of new stores Licensed to
                  Licensee under this License minus the number of stores in
                  which the License under this License was terminated and shall
                  not include stores Licensed on a temporary basis.

                  (m)      Proposed Increase Date: the day on which it is
                  proposed, subject to certain conditions, that the License Fees
                  increase by [***], being the first day of Licensee's fiscal
                  years as follows: February 2, 2004; January 30, 2006; February
                  4, 2008 and February 1, 2010.

---------------------

[***] Redacted pursuant to a request for confidential treatment.

                                        5

<PAGE>

               (n)   Gross Sales: the entire amount of all revenue and receipts,
               whether from cash, cash equivalent, credit, or otherwise, of all
               sales of merchandise (including gift and merchandise
               certificates), services provided, and any other business activity
               conducted in connection with Licensee's Businesses, including
               mail or telephone orders received or filled in connection with
               any of Licensee's Businesses, deposits not refunded to
               purchasers, orders taken, although said orders may be filled
               elsewhere, sales to employees, sales through vending machines or
               other devices, and sales by a concessionaire, licensee, third
               person or otherwise in relation to Licensee's Businesses. Each
               sale upon installment or credit shall be treated as a sale for
               the full price in the week during which such sale was made,
               irrespective of the time when Licensee receives payment from its
               customer. No deduction shall be allowed for uncollected or
               uncollectable credit accounts, unless and until same have been
               incapable of collection by Licensee for a period of six (6)
               months following the occurrence of such sale, provided that in
               the event that same is subsequently collected, whether in whole
               or in part, such collected amount shall be added to Gross Sales
               as at the date of collection. "Gross Sales" shall not include,
               however, (i) any sums collected and paid out for any sales or
               goods and services tax imposed by any duly constituted
               governmental authority on any sale effected in connection with
               Licensee's Businesses; (ii) the exchange of merchandise between
               the various locations of Licensee, if any, where such exchanges
               are made solely for the convenient operation of the business of
               Licensee and not for the purpose of consummating a sale which has
               theretofore been made in connection with one of Licensee's
               Businesses and/or for the purpose of depriving Licensor of the
               benefit of a sale which otherwise would be made in connection
               with one of Licensee's Businesses; (iii) the amount of returns to
               shippers or manufacturers, nor the amount of any cash or credit
               refund made upon any sale where the merchandise sold, or some
               part thereof, is thereafter returned by purchaser and accepted by
               Licensee; or (iv) sales of Licensee's trade fixtures.

                         ARTICLE II. GENERAL PROVISIONS

          2.1  Quiet Possession: Except as otherwise provided herein, if
          Licensee shall perform all of Licensee's obligations under this
          License, Licensee shall, subject to the provisions of this License, at
          all times during the License Term, have peaceful and quiet possession
          of the Licensed Premises.

          2.2  Targeted Commencement Date:

               (a)   New, Relocated, or Expanded Stores: Subject to Section 3.3,
               the Targeted Commencement Date for new, relocated, or expanded
               Stores shall be the date and time of the Store Grand Opening
               (regardless of the normal business hours). Should Licensee fail
               to be open and operating on the Targeted Commencement Date,
               Licensee agrees to pay Licensor as an additional License Fee
               $5,000.00 ( five thousand dollars) in damages. Licensee also
               agrees to pay as additional License Fees $100.00 (one hundred
               dollars) for each additional day that it is not open for
               business. It would be impracticable or difficult to ascertain
               actual resulting damages to Licensor and the amounts set forth
               above are reasonable estimates of such damage and shall be paid
               to Licensor as liquidated damages in such event. In addition, it
               is requested that Licensee perform a dry run of all operations by
               the Friday before the Grand Opening date.

               (b)   Existing Store Spaces: Subject to Section 3.2, the Targeted
               Commencement Date for existing Store spaces shall be mutually
               agreed upon between Licensor and Licensee as shown on the
               Attachment for each location.

               (c)   Licensee Possesses: In any event, if Licensee takes
               possession of the space, but does not open for business within
               three (3) months of taking possession for any reason whatsoever,
               Licensor may, at its sole option, terminate this License as to
               such location and neither party shall have any further rights,
               duties or obligations hereunder.

              ARTICLE III. ACCEPTANCE AND CONSTRUCTION OF PREMISES

          3.1  Acceptance of Licensed Premises: By taking possession of the
          Licensed Premises, Licensee shall be deemed conclusively to have
          accepted the same "as is" and to have acknowledged that the same
          complies fully with Licensor's obligations hereunder, unless Licensee
          notifies Licensor in writing of any defects within three (3) business
          days of taking possession. Upon taking possession of the Licensed
          Premises, Licensee shall have the gate keyed and shall provide the
          store manager with a key to the gate for emergencies.

                                       6

<PAGE>

          3.2  Possession: If any present Licensee or occupant of the Licensed
          Premises holds over and Licensor cannot reasonably acquire possession
          of the Licensed Premises prior to the Targeted Commencement Date of
          this License, Licensor shall not be deemed to be in default hereunder,
          and Licensee agrees to accept possession of the Licensed Premises at
          such time as Licensor is able reasonably to tender the same. Licensor
          hereby waives the payment of License Fees for any period prior to such
          tender of possession.

          3.3  Tender of Possession: If Licensor does not tender possession of
          the Licensed Premises to Licensee for completion of Licensee's work by
          the Targeted Commencement Date, as above defined, Licensor shall not
          be deemed to be in default hereunder, and Licensee agrees to accept
          possession of the Licensed Premises at such time as Licensor tenders
          the same. Notwithstanding the foregoing, if Licensor, in Licensor's
          sole discretion (i) determines it will be unable to deliver possession
          of the Licensed Premises to Licensee within a reasonable time after
          the Targeted Commencement Date, by reason of construction or
          regulatory delays or otherwise, or (ii) elects not to construct the
          Store or the Licensed Premises, Licensor shall have the right to
          terminate this License Agreement as to such location by written notice
          to Licensee. In such event, this License shall terminate as to such
          location and neither party shall have any further rights, duties or
          obligations hereunder as to such location.

          3.4  Store Renovation: Licensee recognizes that Licensor may, from
          time to time, wish to renovate the Store by remodeling, rearranging or
          expanding the Store. Licensor has the right to relocate Licensee's
          space within the Store at any time. The costs involved shall be paid
          as mutually agreed upon on a future date on a site by site basis. In
          no event will Licensor be responsible for "loss of business," "lack of
          trade," or any other claim resulting out of such renovation.
          Notwithstanding any relocation of the Licensed Premises required by
          reason of renovating the Store, the Licensed Premises shall always be
          comparable in configuration and shall always retain approximately the
          same overall size to the original Licensed Premises, and shall be
          located at the front of the Store. Licensor agrees that Licensee may
          temporarily close the Licensed Premises if Licensee reasonably
          determines that its ability to operate is materially impaired due to
          work associated with Store renovation. License Fees shall be abated
          during periods in which the Licensed Premises is closed by reason of
          such work. If Licensee does not desire to relocate the Licensed
          Premises in accordance with the foregoing, then Licensee may terminate
          this License as to such location by giving Licensor written notice not
          less than thirty (30) days after Licensor's notice of intention to
          perform such renovation. Licensor reserves the right to terminate as
          to such location this License in the event that as a consequence of
          such renovation, Licensor cannot relocate the Licensed Premises.

                            ARTICLE IV. LICENSE FEES

          4.1  License Fees: Licensee shall pay to Licensor License Fees in
          respect of Licensee's Studio Businesses of [***] during each month of
          the Term. Upon Licensor's request, the License Fee shall be by wire
          transfer and shall be made for each calendar month not later than the
          tenth (10/th/) day (or the first business day following the tenth day,
          if the tenth day is a weekend or major holiday) of the calendar month
          following the month for which the License Fees are calculated.
          Licensee shall provide daily sales data for each Licensed Premise to
          Licensor's cash office. At the end of each calendar month, Licensor
          shall compile the sales data so received by the Licensed Premise,
          calculate the appropriate License Fee due by Licensed Premise and the
          aggregate License Fee for all Licensed Premises due for the previous
          calendar month, and shall communicate such calculations to Licensee.
          After Licensor's request, the License Fee shall continue to be paid in
          this manner each month until Licensor requests otherwise.

          The License Fees shall increase by [***] at each Proposed Increase
          Date, to a maximum of [***], provided that either of the following has
          occurred at such Proposed Increase Date:

               (a)   Net New Stores shall have increased by [***] during the
               shorter of (i) the two years prior to the Proposed Increase Date
               or (ii) the period from the last Increase Date to the Proposed
               Increase Date, or

               (b)   the Gross Sales from all studios Licensed under this
               License shall have increased by [***] during the shorter of (i)
               the two years prior to the Proposed Increase Date or (ii) the
               period from the last Increase Date to the Proposed Increase Date.

---------------------

[***] Redacted pursuant to a request for confidential treatment.

                                        7

<PAGE>

          For measurement purposes, Gross Sales for the twelve (12) months
          preceding the Proposed Increase Date will be compared with the Gross
          Sales for the twelve (12) months immediately preceding (i) the date of
          this License, (ii) two years prior to the Proposed Increase Date or
          (iii) the last Increase Date, as appropriate.

          In the event that neither condition (a) nor (b) is met at a Proposed
          Increase Date, such increase shall not occur on the Proposed Increase
          Date, but shall occur on the first day of Licensee's fiscal year
          following the fiscal year during which either condition (a) or (b) is
          met, using, as the starting date for comparison, the same starting
          date that was used for the missed Proposed Increase Date.

          Licensor and Licensee recognize that Licensee's Travelling Business is
          unprofitable and is maintained as a service to Licensor and Licensee's
          customers. For this reason, the License Fees payable to Licensor with
          respect to Licensee's Travelling Business shall be [***] of the total
          Gross Sales made by Licensee, its employees, concessionaires, agents,
          licensees, contractors, successors and assigns in connection with such
          Licensee's Business during each week throughout the Term.

          4.2  Taxes: In addition, Licensee shall bear the cost of and pay to
          the appropriate taxing authority all applicable federal, state and
          municipal sales, goods and services and other similar taxes (the
          "Taxes") applicable from time to time with respect to any payment by
          it under this License, in accordance with the provisions of the
          legislation imposing such tax or taxes.

          4.3  Sales Report: Licensee shall deliver to Licensor, each week, at
          its offices in Bentonville, AR, or at such other location as may be
          designated from time to time by Licensor, a sales and license fees
          report ("Sales and License Fees Report") for the week ended no more
          than ten (10) business days prior to the date of the Sales and License
          Fees Report, containing such information and in such format as may be
          agreed between the parties from time to time, along with the License
          Fees relative to the Gross Sales indicated on such Sales and License
          Fees Report. For greater certainty, the parties acknowledge and agree
          that the Sales and License Fees Report shall be prepared individually
          for each of Licensee's Businesses and shall specify the Gross Sales
          for the relevant week, and all preceding weeks in the year, the
          License Fees, together with a summary indicating the totals of same
          for all of Licensee's Businesses collectively. Licensee further
          covenants to provide a Sales and License Fees Report detailing the
          foregoing information for the immediately preceding year applicable to
          Licensee's Businesses, on the date which is thirty (30) days following
          the completion of such year. Licensee covenants and agrees to make all
          of its records pertaining to Licensee's Businesses available to
          Licensor and its agents for inspection and/or audit forthwith
          following the receipt by it of one (1) Business Day's prior written
          notice from Licensor and/or its agents requesting same. Licensee
          covenants and agrees to retain all such records for a minimum of two
          (2) years following the end of each year of the Term. Licensee shall
          provide the Sales and License Fees Report to Licensor electronically,
          as well as on paper, unless otherwise agreed between Licensor and
          Licensee.

          4.4  Adjustments: The parties covenant and agree to re-adjust any
          under or over payments of the License Fees payable under this License
          with respect to the immediately preceding year of the Term, within
          fifteen (15) days following any of the delivery by Licensee to
          Licensor of the annual Sales and License Fees Report referred to in
          Section 4.3, the date that a legitimate written request therefor by
          the other party based on a reporting error and/or other failure to
          comply with this License, and/or the date that Licensee becomes aware
          that it has effected an underpayment to Licensor. If a statement of
          Gross Sales submitted by Licensee in respect of one of Licensee's
          Businesses is found to be incorrect, so that such error resulted in an
          under-reporting of Gross Sales to Licensor which is greater than 3.5%
          of the Gross Sales for such Licensee's Business for the applicable
          year, Licensee shall pay all costs incurred by Licensor with respect
          to any audits of Licensee's books and records for all of Licensee's
          Businesses for such year, including, without limiting the generality
          of the foregoing, the costs of any internal auditors of Licensor.

          4.5  Interest: Licensee shall pay to Licensor interest on any monies
          owing to Licensor which are past due under this License at the rate of
          the annual rate of interest announced from time to time at the prime
          rate as a reference rate then in effect for determining interest rates
          on United States dollar commercial loans in the United States plus 3%.
          Such interest shall accrue from the date such monies first become due
          and payable to Licensor and shall be calculated and compounded
          semi-annually.

          4.6  Quarterly Statements: Licensee covenants and agrees to deliver to
          Licensor at the end of each quarter of each of Licensor's fiscal years
          (i.e. February 1 - January 31), copies of all of its most current
          financial statements,

-------------------

[***] Redacted pursuant to a request for confidential treatment.

                                       8

<PAGE>

          including without limiting the generality of the foregoing, balance
          sheet, income statement, statement of retained earnings, and cash flow
          statement, whether or not same have been independently audited and/or
          prepared by a certified public accountant. In addition to the
          foregoing, in the event that any of such financial statements shall be
          audited and/or prepared by a certified public accountant from time to
          time, Licensee shall forthwith deliver copies of any audit report or
          other report as to the adequacy of such financial statements to
          Licensor. Licensor covenants and agrees to maintain any financial
          statements and/or other information provided to it under this section
          4.6 in the strictest of confidence and shall not disclose any of same
          to any other person except as required by law or court order.

                      ARTICLE V. SALES REPORTS AND RECORDS

          5.1  Statement of Gross Sales: See 4.3, above

          5.2  Records: See 4.3 and 4.6, above

          5.3  Licensor's Right to Audit: See 4.3 and 4.5, above.

                            ARTICLE VI. COMMON AREAS

          6.1  Store Access: Licensee and its employees and their agents shall
          have free access to the public areas of the building and the Licensed
          Premises during regular store hours.

          6.2  Parking: Employees, subLicensees, licensees, or concessionaires
          of Licensee, while working in the Licensed Premises, shall be
          permitted to park their automobiles in spaces designated by Licensor.
          Licensee agrees that if any automobile or other vehicles owned by
          Licensee or any of its employees, subLicensees, licensees or
          concessionaires shall be parked in any part of the Common Area other
          than the specified areas designated for employee parking while
          performing services at the Licensed Premises, such vehicles will be
          towed at Licensee's expense. Licensor may from time to time substitute
          for any parking area other areas reasonably accessible to Licensee.

                 ARTICLE VII. USE AND CARE OF LICENSED PREMISES

          7.1  Operation:

               (a)   The Licensed Premises may be used only for the purpose or
          purposes specified as Permitted Use in the Basic Provisions, and for
          no other purpose without the prior written consent of Licensor.
          Licensee shall not operate an ATM machine. Licensee shall not at any
          time leave the Licensed Premises vacant, but shall in good faith carry
          on each of Licensee's Businesses on such days, except for legal
          holidays on which the Store is closed or other days as agreed between
          Licensor and Licensee, and during such hours as are specified herein.
          The specific hours of operation during any day, except Sunday, shall
          be from 10:00am to 7:00pm, except that the studio shall be closed from
          2:00pm to 3:00pm for lunch, or otherwise as determined by Licensee
          based upon local business practice. On Sunday the hours shall be from
          the later of store opening or 10:00 am to the earlier of store closing
          or 7:00pm with the studio closed from 2:00pm to 3:00pm for lunch. High
          Volume Locations may operate for an additional hour to 8:00p.m. at the
          option of Licensee. For greater certainty, nothing in this License
          shall prevent Licensee from extending the studio hours of operation on
          an individual studio basis, provided that Licensee must first review
          such change with Licensor and receive Licensor's approval to extend
          such hours of operation. Noncompliance by Licensee this Section 7.1(a)
          has an adverse, material impact on Licensor. Therefore, on a "per
          location" basis during a rolling twelve (12) month period, the first
          time Licensee does not comply with such paragraph, Licensee shall pay
          Licensor, as an additional License Fee, $200. For each time Licensee
          fails to comply thereafter, Licensee shall pay Licensor, as additional
          License Fees, $500. In addition, if Licensee fails to comply three (3)
          times within a consecutive twelve month period, Licensor may, at its
          sole option, terminate this License as it applies to a particular
          location.

               (b)   Licensor covenants and agrees that, subject to the
          provisions of this section 7.1(b), it shall not permit any person
          other than Licensee to operate a portrait studio on a permanent,
          temporary, or "travelling promotion" basis, including, without
          limiting the foregoing, the taking of photographic portraits for
          graduation, weddings, holidays or special events, within any Store
          wherein Licensee carries on a Licensee's Business from time to time.
          For greater certainty and notwithstanding the foregoing, nothing
          herein contained shall prevent Licensor from: (i) itself or any of its
          other licensees selling any merchandise in any Store, including
          without limitation, picture frames, film, photographic equipment and
          other related merchandise or products related to portrait photographs,
          including, but not limited to, the

                                        9

<PAGE>

          customisation of portraits including oil portraits; (ii) operating a
          photographic processing department in any Store; or (iii) operating a
          "Glamour Shots" or similar travelling promotional program within any
          Store.

          7.2  Customer Service Complaints: In the event Licensor receives over
          ten (10) legitimate, in Licensor's sole discretion, customer service
          complaints in any form (i.e., telephone, written, oral, etc.)
          regarding Licensee's business or activities conducted at or from the
          Licensed Premises, on a per location basis, during any fiscal year,
          Licensee will reimburse Licensor as additional License Fees, within
          fifteen (15) days of demand by Licensor, the amount of Fifty Dollars
          ($50.00) per complaint for administrative services, which shall be in
          addition to and not in lieu of any other rights or remedies Licensor
          may have under this License or applicable law.

          7.3  Customer Service Line: Licensee shall provide, at its sole
          expense, signage with a Customer Service Line notice including a toll
          free phone number and principal office address. The signage shall be
          in a conspicuous location in the Licensed Premises in full view of all
          customers while the Store is open for business.

          7.4  Trade Name: Licensee hereby acknowledges that Licensee's business
          reputation, Permitted Use of the Licensed Premises and ability to
          generate patronage to the Licensed Premises and the Store were all
          relied upon by Licensor and served as significant and material
          inducements contributing to Licensor's decision to execute this
          License with Licensee. Licensee hereby covenants and agrees to operate
          in the Licensed Premises only under the trade name(s) set forth in the
          Basic Provisions, and under no other name or trade name whatsoever
          without Licensor's prior written consent which may be withheld in
          Licensor's sole discretion. Licensee shall not own, operate, or be
          financially interested in, either directly or indirectly (by itself or
          with others), a business like or similar to the business permitted to
          be conducted hereunder, or which employs the same or similar trade
          name, within a radius of one quarter (1/4) mile of the perimeter of
          the Store, except for those which Licensee has in operation as of the
          date hereof. Without limiting Licensor's other available remedies, in
          the event Licensee should violate this section, Licensor may, at its
          option, (a) terminate this License as to such location upon thirty
          (30) days' written notice to Licensee, (b) enjoin the operation of the
          violative Store, or (c) include all Gross Sales generated by any
          violative store as Gross Sales in calculating the Percentage License
          Fees under this License.

          7.5  Care of Licensed Premises:

               (a)   Licensee shall not conduct within the Licensed Premises any
               "fire", "bankruptcy", "going-out-of-business,"
               "lost-our-License," "fifty percent off" or similar sales within
               the Licensed Premises.

               (b)   Licensee shall not permit any objectionable or unpleasant
               odors to emanate from the Licensed Premises; nor place or permit
               any radio, television, loudspeaker or amplifier on the inside or
               outside the Licensed Premises or where the same can be seen or
               heard from outside the Licensed Premises; nor place any antenna,
               awning or other projection on the exterior of the Licensed
               Premises; nor take any other action which would constitute a
               nuisance or would disturb or endanger other Licensees of the
               Store or unreasonably interfere with their use of their
               respective premises; nor do anything which would tend to injure
               the reputation of the Store. Licensee shall take good care of the
               Licensed Premises and keep the same free from waste, dirt, and
               rubbish at all times. Receiving and delivery of goods and
               merchandise and removal of refuse and trash shall be made only in
               the manner and areas prescribed by Licensor.

               (c)   Licensee shall not, without Licensor's prior written
               consent, keep anything within the Licensed Premises or use the
               Licensed Premises for any purpose which increases the cost of
               insurance or invalidates or diminishes the coverage of any
               insurance policy carried on the Licensed Premises or other parts
               of the Store. All property kept, stored or maintained within the
               Licensed Premises by Licensee shall be at Licensee's sole risk
               and responsibility.

               (d)   Licensee shall maintain all display areas in a neat,
               attractive condition and shall keep all display areas lighted
               while Licensee is open for business.

          7.6  Permits and Other Requirements: Licensee shall be Licensee's sole
          responsibility to identify and procure at its sole expense any
          permits, certificates of occupancy, business licenses and other
          licenses required for the transaction of business in the Licensed
          Premises and otherwise comply with all applicable laws, ordinances,
          and governmental regulations by Grand Opening.

            ARTICLE VIII. MAINTENANCE AND REPAIR OF LICENSED PREMISES

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<PAGE>

     8.1 Licensor's Responsibilities: Licensor shall keep the foundation,
     exterior walls, heating, air conditioning (operating temperature range of
     68 (degrees) to 74 (degrees), roof, rolling or sliding grills and fire
     shutters (except doors, and other exterior openings; locks and hardware;,
     signs, placards, decorations or advertising media of any type; and interior
     painting or other treatment of exterior walls) of the Licensed Premises in
     good repair. Licensor, however, shall not be required to make any repairs
     occasioned by the act or omission of Licensee or Licensee's agents,
     employees, sublicensees, licensees and concessionaires. If the Licensed
     Premises needs repairs required to be made by Licensor hereunder, Licensee
     shall give immediate written and oral notice thereof to Licensor, and
     Licensor shall not be responsible in any way for failure to make any such
     repairs until a reasonable time shall have elapsed after receipt by
     Licensor of such notice. In addition to sending Licensor written notice,
     for any maintenance, warranty, or heat and air control issues, please call
     479-273-4747 or after hours and weekends call 800-932-3367.

     8.2 Licensee's Responsibilities: Licensee shall be responsible for
     maintenance and repair of the interior of the Licensed Premises and shall
     keep the Licensed Premises in good, clean and habitable condition and shall
     at its sole cost and expense keep the Licensed Premises free of insects,
     rodents, vermin and other pests and make all needed repairs and
     replacements, including replacement of cracked or broken glass, except for
     repairs and replacements required to be made by Licensor under the
     provisions of Section 8.1, Article XV and Article XVI. Without limiting the
     coverage of the previous sentence, it is understood that all construction,
     installation and modifications to the Licensed Premises by Licensee are
     Licensee's responsibilities and therein include, but are not limited to the
     repair and replacement of all plumbing, sprinkler and other electrical,
     mechanical and electromotive installation, equipment and fixtures, all
     utility repairs in ducts, conduits, pipes and wiring, and any sewer
     stoppage located in, under or above the Licensed PremisesIf any repairs
     required to be made by Licensee hereunder are not made within ten (10) days
     after notice by Licensor, Licensor may at its sole option make such repairs
     without liability to Licensee for any loss or damage which may result to
     its stock or business by reason of such repairs; and Licensee shall pay to
     Licensor upon demand, as additional License Fees hereunder, the cost of
     such repairs plus ten percent (10%) thereof as an administrative fee to
     Licensor plus interest at the maximum lawful rate in the state where the
     Licensed Premises is located (but in no event to exceed one and one-half
     percent (1 1/2%) per month), such interest to accrue continuously from the
     date of payment by Licensor until repayment by Licensee.

     8.3 Licensee's Responsibilities upon Quitting Licensed Premises:

               (a) Upon quitting the Licensed Premises for any reason
               whatsoever, Licensee agrees to promptly remove all fixtures,
               internal and external signage, and personal property. Licensee
               shall turn the space into a vanilla shell. This includes removing
               all counters, floor coverings, cabinets, signage, partition
               walls, and safe. Dropped ceiling and light fixtures shall remain.
               Sheetrock on the perimeter walls is to be complete and
               unblemished. Licensee shall place a temporary dust wall across
               the front of the Licensed Premises during tear down and removal
               to prevent dust from entering the Store. Licensee shall be
               responsible for disposing of all fixtures and improvements from
               the Store, but shall not remove any construction debris during
               peak daytime shopping hours as determined by Licensor. The
               Licensed Premises shall be left in a clean condition. In
               addition, Licensee shall remove exterior signage from the
               Licensed Premises and the Store, if applicable and restore
               exteriors to their original condition.

               (b) If Licensee fails to remove and repair damage caused by the
               removal of all fixtures, internal and external signage, and
               personal property within five (5) business days after quitting
               the Licensed Premises, Licensee shall pay Licensor as additional
               License Fees $15,000.00 (fifteen thousand dollars). Licensee's
               security deposit, if any, will be applied toward such amount. It
               would be impracticable or difficult to ascertain actual resulting
               damages to Licensor and the amount set forth above is a
               reasonable estimate of such damage and shall be paid to Licensor
               as liquidated damages. In the event that any unrepaired, physical
               damage to the Demised Premises is in excess of $15,000.00
               (fifteen thousand dollars), Licensor reserves the right to repair
               such damage and seek further reimbursement from Licensee.

                    ARTICLE IX. ALTERATIONS AND CONSTRUCTION

     9.1 Alterations: Licensee shall not make any alterations, additions or
     improvements to the Licensed Premises without the prior written consent of
     Licensor, except for the installation of trade fixtures which may be
     installed without drilling, cutting, or otherwise defacing the Licensed
     Premises. Licensee shall not place merchandise or fixtures outside of the
     Licensed Premises, except for T-stands for advertising which have been
     approved by Wal-Mart Marketing.

     9.2 Construction: All construction work done by Licensee, its contractors,
     employees, agents, licensees, officers, suppliers, or any other persons
     performing any function for Licensee within the Licensed Premises shall

                                       11

<PAGE>

     be performed in a good and workmanlike manner, in compliance with all
     governmental requirements and in such manner as to cause a minimum of
     interference with other construction in progress and with the transaction
     of business in the Store. Licensee must erect a dust wall of plywood and
     plastic sheeting (i.e. Visquine) during buildout and any other construction
     work. Licensee agrees to defend, indemnify and hold Licensor harmless (with
     counsel reasonably acceptable to Licensor) against any loss, liability or
     damage to persons or property that might arise from such construction or
     maintenance, including, without limitation, attorneys' fees and costs of
     litigation ("Damages") resulting from such work performed by Licensee, its
     contractors, employees, agents, licensees, officers, suppliers, or any
     other persons performing any function for Licensee, and Licensee shall, if
     requested by Licensor, furnish a bond or other security satisfactory to
     Licensor against any such Damages. Licensee's contractors must be licensed
     and carry workers' compensation coverage as required by law. Licensee's
     contractors must comply with all governmental requirements, including but
     not limited to obtaining all applicable permits, licenses, and other
     documents necessary to perform such construction work.

     9.3  Covenants Against Liens: Licensee covenants and agrees that it shall
     not, during the term hereof, suffer or permit any lien to be attached to or
     upon the Licensed Premises or any part thereof by reason of any act or
     omission on the part of Licensee, its contractors, employees, agents,
     licensees, officers, suppliers, or any other persons performing any
     function for Licensee, and hereby agrees to save and hold harmless Licensor
     from or against any such lien or claim of lien. In the event that any such
     lien is filed, Licensee may post a bond or other adequate security to cure
     such default; however, any lien must be cleared within five (5) days after
     receipt of notice of such lien. If such lien is not cleared, Licensor in
     its sole discretion, may pay and discharge the same and relieve the
     Licensed Premises therefrom, and Licensee agrees to repay and reimburse
     Licensor upon demand for the amount so paid by Licensor together with
     interest thereon and such interest shall be at a rate which is the lower of
     fifteen percent (15%) per annum or the highest rate allowed by the law of
     the state in which the Licensed Premises is located.

                      ARTICLE X. LICENSOR'S RIGHT OF ACCESS

     10.1 Licensor's Right of Access: Licensor shall have the right to enter
     upon the Licensed Premises at any reasonable time for the purpose of
     inspecting the same or making repairs, alterations or additions to adjacent
     premises, showing the Licensed Premises to prospective purchasers, lessees
     or lenders, or pursuing or investigating suspected shoplifting offenses.

     10.2 Use of Roof: Use of the roof above the Licensed Premises is reserved
     to Licensor.

                         ARTICLE XI. SIGNS; STOREFRONTS

     11.1 Signs; Storefronts: Licensee shall not, without Licensor's prior
     written consent, (a) make any changes to the storefront or exterior facade
     of the Licensed Premises, (b) install any exterior lighting, decorations,
     paintings, awnings, canopies or the like, or (c) erect or install any
     signs, window or door lettering placards, decorations or advertising media
     of any type which can be viewed from the exterior of the Licensed Premises,
     excepting only appropriate displays of customary type in its display area.
     All signs, lettering, placards, decorations and advertising media shall
     conform in all respects to the sign criteria established by Licensor for
     the Store from time to time in the exercise of its sole discretion, and
     shall be subject to the prior written approval of Licensor as to
     construction, method of attachment, size, shape, height, lighting, color
     and general appearance, pursuant to the procedures outlined in 11.2 through
     11.5. All signs inside the Licensed Premises shall be kept in good
     condition and in proper operating order at all times at Licensee's expense.
     No temporary banners shall be substituted for permanent signs at any time
     or for any reason.

     11.2 Building Signage: Licensor may allow, but does not guarantee, exterior
     signage of one sign with a maximum of 20 sq. ft. stud- mounted, illuminated
     or non-illuminated letters or box with prior written approval required by
     the Vestibule Leasing Department. The sign will be installed in the
     location dictated by Licensor, in Licensor's sole discretion.

     11.3 Installation and Permitting: Licensee will be responsible for all
     installation, permitting and costs.

     11.4 Licensor Approval: Licensor shall give the final approval of Licensee
     signage projects. Licensee will be allowed to begin the permitting process
     for its sign after Licensor's signing package has been approved. NOTE:
     LICENSOR SIGNAGE WILL HAVE PRIORITY AT ALL LOCATIONS.

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     11.5 Restrictions: No other Licensee signage, such as flags, floor decals,
     road signs, road-sign banners, banners hanging on outside of building,
     shopping cart signs, etc. will be permitted. All signage must be submitted
     to and approved by the Vestibule Leasing Department before they can be
     considered for part of Licensee signage in any store. No additional signage
     is authorized.

                             ARTICLE XII. UTILITIES

     12.1 Utility Charge: Licensor shall pay all charges for electricity, water,
     gas, sewerage service, and H.V.A.C. furnished to the Licensed Premises.
     Licensee shall pay for telephone service and any other utility services not
     paid for by Licensor. Licensee shall be responsible for the ordering of any
     separate telephone line needed in a Licensed Premise. Licensee shall be
     responsible for ordering, equipment and monthly recurring charges
     associated with same. Licensee may list such telephone number in any
     telephone directory using the Trade Name. Licensor will provide cabling and
     phone access from the Licensor's phone system to the Licensee's area.
     Cabling will be limited to 2-CAT 3 cables terminated on flush-mount
     faceplates. Each face plate will be a dual outlet. Phone access will be
     limited to an extension phone off of the phone system and will be
     programmed to provide paging system access only. Licensor will
     cross-connect the Licensee's telephone line to the cabling if requested by
     Licensee. Licensee will not use any cordless phone within the Licensed
     Premises unless approved by Licensor Telecommunications Department at phone
     number 479-277-4945, option #7.

     12.2 Interruption of Utilities: Licensor shall not be liable for any
     interruption whatsoever in utility services not furnished by Licensor nor
     for interruptions in utility services furnished by Licensor which are due
     to fire, accident, strike, acts of God or other causes beyond the control
     of Licensor or in order to make alterations, repairs or improvements.

             ARTICLE XIII. INDEMNITY AND PUBLIC LIABILITY INSURANCE

     13.1 Injury and Damage: Licensor shall not be liable to Licensee or to
     Licensee's employees, agents, invitees, or visitors, or to any other person
     whomsoever, for any injury to person or damage to property on or about the
     Licensed Premises, the Common Area or elsewhere in the Store, caused by the
     acts or omissions of Licensee, its employees, sublicensees, licensees or
     concessionaires, or of any other person entering the Licensed Premises,
     Common Area or Store under the express or implied invitation of Licensee,
     or arising out of the use of the Licensed Premises by Licensee or the
     conduct of its business therein, or arising out of any breach or default by
     Licensee in the performance of its obligations under this License; and
     Licensee hereby agrees to defend, indemnify and hold Licensor harmless
     (with counsel reasonably acceptable to Licensor) from any damages arising
     out of such damage or injury.

     13.2 Insurance: Licensee shall keep in force and effect at all times during
     the term of this License, with a company or companies acceptable to
     Licensor, the following minimum insurance coverages:

          a.   Workers' Compensation coverage as required by law;
          b.   Employer's liability coverage on an occurrence basis with general
               aggregate limit per occurrence of not less than $1,000,000.00;
               and
          c.   Commercial general liability coverage on an occurrence basis with
               general aggregate limit per occurrence of not less than
               $2,000,000.00.

     If permitted by law, each policy shall name Licensor as an additional
     insured and shall contain a provision that such policy may not be canceled
     or the coverages provided by it reduced without first giving at least ten
     (10) days' written notice to Licensor. Licensee shall provide Licensor with
     evidence satisfactory to Licensor of the existence of insurance in
     compliance with the provisions of this License. If Licensee fails to comply
     with any of the requirements of this License relating to insurance,
     Licensor may obtain such insurance and Licensee shall pay to Licensor on
     demand as additional License Fees hereunder the cost incurred by Licensor
     in doing so, plus ten percent (10%) as an administrative fee to Licensor,
     plus interest at the maximum contractual rate (but in no event to exceed
     one and one-half per cent (1 1/2%) per month) from the date of payment by
     Licensor until repaid by Licensee.

                 ARTICLE XIV. NON-LIABILITY FOR CERTAIN DAMAGES

     14.1 Licensor Non-Liability:

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          (a) Licensor and Licensor's agents and employees shall not be liable
          to Licensee for any injury to person or damage to property caused by
          the Licensed Premises or other portions of the Store becoming out of
          repair; or by defect or failure of any structural element of the
          Licensed Premises or of any equipment, pipes or wiring or broken
          glass; or by the backing up of drains; or by gas, water, steam,
          electricity or oil leaking, escaping or flowing into the Licensed
          Premises; nor shall Licensor be liable to Licensee for any loss or
          damage that may be occasioned by or through the acts or omissions of
          other Licensees of the Store or of any other persons whomsoever,
          excepting only duly authorized employees and agents of Licensor.

          (b) Licensor and Licensor's agents and employees shall not be liable
          to Licensee or to Licensee's employees, agents or visitors, or to any
          other person whomsoever, for any injury to person or damage to
          property on or about the Licensed Premises or the Common Area caused
          in whole or in part by the negligence or misconduct of Licensee, its
          employees, sublicensees, invitees, licensees or concessionaires, or of
          any other person entering the Store under express or implied
          invitation of Licensee, or arising out of the use of the Licensed
          Premises by Licensee or the conduct of its business therein, or
          arising out of any breach or default by Licensee in the performance of
          its obligations under this License; and Licensee hereby agrees to
          defend, indemnify and hold Licensor harmless (with counsel reasonably
          acceptable to Licensor) from any Damages arising out of such damage or
          injury.

     14.2 Licensee Non-Liability: Licensee and its agents and employees shall
     not be liable to Licensor for any injury to person or damage to property
     caused by the Licensed Premises or other portions of the Store becoming out
     of repair; or by defect or failure of any structural element of the
     Licensed Premises or of any equipment, pipes or wiring or broken glass; or
     by the backing up of drains; or by gas, water, steam, electricity or oil
     leaking, escaping or flowing into the Licensed Premises; nor shall Licensee
     be liable to Licensor for any losses or damage that may be occasioned by or
     through the acts or omissions of other Licensees of the Store or of any
     other persons whomsoever, excepting only duly authorized employees and
     agents of Licensee.

     14.3 Mutual Waiver of Subrogation: Licensor and Licensee each hereby
     releases the other from any and all liability or responsibility to the
     other or to any other party claiming through or under them by way of
     subrogation or otherwise, for any loss or damage to property caused by a
     casualty which is insured under standard fire and extended coverage
     insurance; provided, however, that this mutual waiver shall be applicable
     only with respect to a loss or damage occurring during the time when
     standard fire and extended coverage insurance policies contain a clause or
     endorsement to the effect that any such release shall not adversely affect
     or impair the policy or the right of the insured party to receive proceeds
     under the policy or when such liability is caused by gross negligence or
     willful misconduct.

                         ARTICLE XV. DAMAGES BY CASUALTY

     15.1 Notice to Licensor: Licensee shall give immediate oral and written
     notice to Licensor of any damage caused to the Licensed Premises by fire or
     other casualty.

     15.2 Licensor's Repair of Casualty Damage: In the event that the Store or
     Licensed Premises is damaged or destroyed by fire or other casualty covered
     by Licensor's insurance, then Licensor may elect either to terminate this
     License as to such location or proceed to rebuild and repair the Store
     and/or Licensed Premises. Licensor shall give notice to Licensee of such
     election within sixty (60) days after the occurrence of such casualty, and
     if Licensor elects to rebuild and repair, shall proceed to do so with
     reasonable diligence and at its sole cost and expense. As it relates to the
     Licensed Premises, Licensor's work under this Article XV shall be limited
     to restoring the Licensed Premises to substantially the condition in which
     the same existed prior to such casualty, exclusive of any alterations,
     additions, improvements, fixtures and equipment installed by Licensee to
     substantially the same condition in which the same existed prior to the
     casualty.

     15.3 Licensee's Repair of Casualty Damage: Licensee agrees that promptly
     after completion of such work by Licensor, Licensee will proceed with
     reasonable diligence and at Licensee's sole cost and expense to restore,
     repair and replace all alterations, addition, improvements, fixtures, signs
     and equipment installed by Licensee.

     15.4 Operation of Licensed Premises After Casualty: Licensee agrees that
     during any period of reconstruction or repair of the Licensed Premises, it
     will continue the operation of its business within the Licensed Premises to
     the extent practicable. During the period from the occurrence of the
     casualty until Licensor's repairs are completed, the Minimum License Fees
     shall be reduced to such extent as may be fair and reasonable under the

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<PAGE>

     circumstances. License Fees shall be abated during periods in which the
     Licensed Premises is closed by reason of work associated with Store
     reconstruction or repair.

     15.5 Licensee's Insurance: Licensee will secure at Licensee's sole cost
     property insurance coverage normally covered in a fire and extended
     coverage policy for Licensee's equipment, fixtures, alterations and
     improvements and/or betterments. Loss of License Feess coverage shall also
     be included.

                            ARTICLE XVI. CONDEMNATION

     16.1 Condemnation Equal to or Greater Than Thirty Percent: If thirty
     percent (30%) or more of the floor area of the Licensed Premises is taken
     for any public or quasi-public use under any governmental law, ordinance or
     regulation or by right of eminent domain or by private purchase in lieu
     thereof, this License shall terminate as to such location and the License
     Fees shall be abated during the unexpired portion of this License,
     effective on the date physical possession is taken by the condemning
     authority.

     16.2 Condemnation Less Than Thirty Percent: If less than thirty percent
     (30%) of the floor area of the Licensed Premises is taken as aforesaid,
     this License shall not terminate. Following such partial taking, Licensor
     shall make all necessary repairs or alterations to the remaining premises
     required to make the remaining portions of the Licensed Premises an
     architectural whole.

     16.3 Condemnation of Common Area: If any part of the Common Area is taken
     as aforesaid, this License shall not terminate nor shall the License Fees
     payable hereunder be reduced, except that either Licensor or Licensee may
     terminate this License as to such location if the area of the Common Area
     remaining following such taking plus any additional parking area provided
     by Licensor in reasonable proximity to the Store is less than seventy
     percent (70%) of the area of the Common Area immediately prior to the
     taking. Any election to terminate this License as to such location in
     accordance with this provision shall be evidenced by written notice of
     termination delivered to the other party within thirty (30) days after the
     date physical possession is taken by the condemning authority.

     16.4 Condemnation Compensation: All compensation awarded for any taking (or
     the proceeds of private sale in lieu thereof) of the Licensed Premises or
     Common Area shall be the property of Licensor, and Licensee hereby assigns
     its interest in any such award to Licensor; provided, however, Licensor
     shall have no interest in any award made to Licensee for Licensee's moving
     and relocation expenses or for the loss of Licensee's fixtures and other
     tangible personal property if a separate award for such items is made to
     Licensee.

             ARTICLE XVII. ASSIGNMENT AND SUBLINCENSING; FRANCHISES

     17.1 Licensor's Consent: Licensee shall not assign or in any manner
     transfer this License or any estate or interest therein, or sublicense the
     Licensed Premises or any part thereof, or grant any license, concession or
     other right of occupancy of any portion of the Licensed Premises without
     the prior written consent of Licensor, which consent may be withheld at
     Licensor's sole discretion. Consent by Licensor to one or more assignments,
     sublicensing or grants shall not operate as a waiver of Licensor's rights
     as to any subsequent assignments, sublicensing or grants.

     17.2 Corporations as Licensees: Intentionally omitted

     17.3 Effect of Licensor Consent: Notwithstanding any assignment, subletting
     or grant, Licensee and any guarantor of Licensee's obligations under this
     License shall at all times remain fully responsible and liable for the
     payment of the License Fees herein specified and for all of Licensee's
     other obligations under this License (even if future assignments,
     sublettings or grants occur subsequent to the assignment, subletting or
     grant by Licensee and regardless of whether or not Licensee's consent has
     been obtained for such future assignments, sublettings or grants). If the
     License Fees and other consideration paid and payable by an assignee,
     sublessee or grantee exceeds the License Fees payable under this License,
     then Licensee shall be bound and obligated to pay Licensor all such excess
     License Fees and other excess consideration within ten (10) days following
     receipt thereof by Licensee. In any such event of assignment, subletting or
     grant, it is understood and agreed that all License Fees and other
     consideration paid to Licensee by an assignee, sublessee or grantee shall
     be received by Licensee in trust for Licensor, to be forwarded immediately
     to Licensor without offset or reduction of any kind, and upon election by
     Licensor, such License Fees and other consideration shall be paid directly
     to Licensor as specified in Section 4.1 of this License (to be applied as a
     credit and offset to such of Licensee's License Fees and other obligations
     as may be selected by Licensor.)

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<PAGE>

     17.4 Licensor's Sublease: If Licensor is subleasing the Store,, Licensee
     accepts this License subject to all of the terms and conditions of the
     underlying Sublease under which Licensor holds the Store as lessee.
     Licensee covenants that it will do no act or thing which would constitute a
     violation by Licensor of its obligations under such underlying Sublease.

     17.5 No Encumbrances: Licensee shall not mortgage, pledge or otherwise
     encumber its interest in this License or in the Licensed Premises.

     17.6 Transfer by Licensor: In the event of the transfer and assignment by
     Licensor of its interest in this License and in the Store to a person
     expressly assuming Licensor's obligations under this License, Licensor
     shall thereby be released from any further obligations hereunder, and
     Licensee agrees to look solely to such successor in interest of Licensor
     for performance of such obligations. Any security given by Licensee to
     secure performance of Licensee's obligations hereunder may be assigned and
     transferred by Licensor to such successor in interest, and Licensor shall
     thereby be discharged of any further obligation relating thereto.

     17.7 Franchises: From time to time and with written consent from Licensor,
     Licensee may grant to third parties selected by Licensee the right to
     operate a business in the Licensed Premises, under the same trade name, as
     a franchisee of Licensee. A franchisee will be responsible to Licensor in
     the same manner and to the same extent as Licensee is under this License
     and shall execute such documents as Licensor shall reasonably require to
     evidence their assumption of the obligations contained herein. Licensee
     shall, at all times, remain liable to Licensor despite any grant to a
     franchisee, and shall also be liable for all acts or omissions of any
     franchisee. Licensee shall, with counsel reasonably acceptable to Licensor,
     defend, indemnify and hold Licensor harmless from any claim, suit, action
     or proceeding brought by any franchisee or prospective franchisee of
     Licensee alleging a breach or violation of any law, regulation or statute
     concerning or regulating the sale or operation of franchisees, except if
     such breach or violation is caused by the gross negligence or willful act
     of Licensor. Licensor shall not be considered a franchisor under any
     circumstance and shall have no relationship with such franchisee except for
     the relationship of Licensor and Licensee.

                       ARTICLE XVIII. TAXES AND INSURANCE

     18.1 Licensee's Responsibility for Taxes: Licensee shall be liable for all
     taxes levied against personal property and trade fixtures placed by
     Licensee in the Licensed Premises. If any such taxes are levied against
     Licensor or Licensor's property and Licensor elects to pay the same, or if
     the assessed value of Licensor's property is increased by inclusion of
     personal property and trade fixtures placed by Licensee in the Licensed
     Premises and Licensor elects to pay the taxes based on such increase,
     Licensee shall pay to Licensor upon demand that part of such taxes for
     which Licensee is primarily liable hereunder.

     18.2 Licensor's Responsibility for Taxes: Except as provided in Section
     18.1, Licensor shall pay or cause to be paid all general real estate taxes,
     general and special assessments, parking surcharges and other governmental
     charges (hereinafter collectively referred to as the "General Taxes")
     levied against the Store for each real estate tax year.

     18.3 License Fees Taxes, etc.: If at any time during the License Term, a
     tax or excise on License Fees or other tax however described (except any
     franchise, capital stock, income or excess profits tax imposed upon
     Licensor) is levied or assessed against Licensor by any lawful taxing
     authority on account of Licensor's interest in this License or the License
     Fees or other charges reserved hereunder, as a substitute in whole or in
     part, or in addition to the General Taxes described in Section 18.2 above,
     Licensee agrees to pay to Licensor upon demand, and in addition to the
     License Fees and other charges prescribed in this License, the amount of
     such tax or excise. In the event any such tax or excise is levied or
     assessed directly against Licensee, then Licensee shall be responsible for
     and shall pay the same at such times and in such manner as the taxing
     authority shall require.

                  ARTICLE XIX. DEFAULT BY LICENSEE AND REMEDIES

     19.1 Events of Default: In addition to any Events of Default specifically
     mentioned throughout this License, each of the following shall be deemed to
     be an "Event of Default" by Licensee under this License:

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<PAGE>

          a. Licensee shall fail to pay any installment of License Fees or any
          other obligation hereunder involving the payment of money and such
          failure shall continue for a period of ten (10) days after the date
          due.

          b. Licensee shall fail to comply with any term, provision or covenant
          of this License other than as described in subsection (a) above.
          Licensee shall have the right to cure such failure within fifteen (15)
          days after notice thereof to Licensee by Licensor, or, as to matters
          which cannot be remedied within fifteen (15) days if Licensee fails to
          commence efforts to remedy such default within such fifteen (15) day
          period and thereafter diligently prosecute such efforts so that such
          default is cured within a reasonable time, not to exceed ninety (90)
          days from Licensee's receipt of such notice. If such event of default
          occurs, Licensor shall have the right to enter upon the Licensed
          Premises without being liable for prosecution of any claim for damages
          therefor, and do whatever Licensee is obligated to do under the terms
          of this License; and Licensee agrees to reimburse Licensor on demand
          for any expenses which Licensor may incur in thus effecting compliance
          with Licensee's obligations under this License including reasonable
          attorney fees, court costs, and/or other expenses; and Licensee
          further agrees that Licensor shall not be liable for any damages
          resulting to Licensee from such action.

          c. Licensee or any guarantor of Licensee's obligations under this
          License shall become insolvent, or shall make a transfer in fraud of
          creditors, or shall make an assignment for the benefit of creditors.

          d. Licensee or any guarantor of Licensee's obligations under this
          License shall file a petition (or have an involuntary petition filed
          against it which is not dismissed within sixty (60) days after filing)
          under any section or chapter of the Federal Bankruptcy Act, as
          amended, or under any bankruptcy or insolvency law or statute of the
          United States or any state.

          e. A receiver or trustee shall be appointed for the Licensed Premises
          or for all or substantially all of the assets of Licensee or any
          guarantor of Licensee's obligations under this License.

          f. Licensee shall desert, cease to continuously operate, or vacate or
          commence, threaten or declare its intention to desert or vacate, the
          Licensed Premises or any substantial portion of the Licensed Premises;
          or shall remove, attempt to remove or threaten or declare its
          intention to remove, without the prior written consent of Licensor,
          all or a substantial value of Licensee's goods, wares, equipment,
          fixtures, furniture, or other personal property.

          g. Licensee shall, by any act or omission, cause or permit a lien to
          be created or to arise by operation of law or otherwise upon the
          Licensed Premises. In the event a lien is filed, Licensee may post a
          bond or other adequate security to cure such default; however, any
          lien must be cleared within five (5) days after receipt of notice of
          such lien.

          h. Licensee or any of its employees, agents, licensees, officers,
          suppliers, or contractors shall violate any rule, local ordinance, law
          (civil or criminal), or commit any illegal act or omission in the
          operation or any other activity associated in any way with the
          Licensed Premises.

     19.2 Licensor's Remedies: Failure by Licensor to enforce one or more of the
     remedies herein provided upon an event of default shall not be deemed or
     construed to constitute a waiver of such default.

          (a) In the event that Licensor shall obtain possession by reentry,
          summary proceedings, legal or equitable actions or proceedings or
          other lawful measures as a result of any Default by Licensee, Licensee
          agrees to pay to Licensor all reasonable and ordinary legal expenses
          incurred by Licensor in obtaining possession of the Licensed Premises
          and the usual and ordinary commissions for re-letting the same for any
          term not extending beyond the term of this License. Licensee further
          agrees in such event to remain liable for and to pay all License Fees
          and other sums herein reserved, less the net amount of License Fees
          which shall be collected and received by Licensor from the Licensed
          Premises, for and during the balance of the term of this License. If
          Licensor does not re-let the Licensed Premises, Licensor may elect to
          recover, as liquidated damages and not as a penalty, an amount equal
          to the License Fees provided herein to be paid by Licensee to Licensor
          for the remainder of the term of this License, less the fair rental
          value of the Licensed Premises for said period.

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<PAGE>

          (b) Licensor may terminate this License as to such location upon ten
          (10) days written notice, in which event Licensee shall immediately
          surrender the Licensed Premises to Licensor. If Licensee fails to do
          so, Licensor may, without prejudice to any other remedy which Licensor
          may have for possession or arrearages in License Fees (including any
          interest which may have accrued pursuant to Article III of this
          License), enter upon and take possession of the Licensed Premises. In
          addition, Licensee agrees to pay to Licensor on demand the amount of
          all loss and damage which Licensor may suffer by reason of any
          termination effected pursuant to this Subsection. Licensee hereby
          waives any statutory requirement of prior written notice for filing
          eviction or damage suits for nonpayment of License Fees. Licensee
          hereby waives any claim that may arise against Licensor as a
          consequence of Licensor's re-entry. In addition, Licensor may choose
          to terminate either a specific location or the entire License
          agreement at Licensor's sole discretion. Terminating one location does
          not mean all locations are automatically terminated.

          (c) When Licensor desires, Licensor may demand a final settlement.
          Upon demand for a final settlement, Licensor shall have a right to,
          and Licensee hereby agrees to pay, the difference between the total of
          all License Fees and other charges provided in this License for the
          remainder of the term and the reasonable rental value of the Licensed
          Premises for such period, such difference to be discounted to present
          value at the rate of eight percent (8%) per annum).

          (d) Licensor may accelerate payments of future installments of License
          Fees without setoff or mitigation, and Licensee shall pay to Licensor
          a sum equal to the entire amount of the License Fees for the remainder
          of the License term, plus any other sums due to Licensor under this
          License.

          (e) Licensee shall compensate Licensor for all expenses incurred by
          Licensor in repossession (including among other expenses, any increase
          in Insurance Premiums caused by the vacancy of the Licensed Premises),
          all expenses incurred by Licensor in relicensing or reletting
          (including among other expenses, repairs, remodeling, replacements,
          advertisements and brokerage fees), all concessions granted to a new
          Licensee or Tenant upon relicensing or reletting (including among
          other concessions, renewal options), all losses incurred by Licensor
          as a direct or indirect result of Licensee's default (including among
          other losses, any adverse reaction by Licensor's mortgagee or by other
          Licensees or Tenants or potential Licensees or Tenants of the Store),
          and a reasonable allowance for Licensor's administrative efforts,
          salaries and overhead attributable directly or indirectly to
          Licensee's default and Licensor's pursuing the rights and remedies
          provided herein and under applicable law.

     19.3 Injunction: Licensor may restrain or enjoin any breach or threatened
     breach of any covenant, duty or obligation of Licensee herein contained
     without the necessity of proving the inadequacy of any legal remedy or
     irreparable harm.

     19.4 Attorney's Fees: Licensee agrees to pay any reasonable attorney's fees
     and expenses incurred by Licensor by reason of an Event of Default.

     19.5 Additions to Minimum License Fees: In determining the monthly License
     Fees and other amounts due as provided in this License, there shall be
     added to the Minimum License Fees, the charges for taxes, plus one
     twenty-fourth (1/24) of the total of all Percentage License Fees because of
     Gross Sales during the two (2) full fiscal years immediately preceding the
     date Licensor initiated action pursuant to said subsection (or, if two (2)
     full fiscal years have not then elapsed, to the corresponding fraction of
     all Percentage License Fees required to be paid because of Gross Sales
     during the period commencing with the Commencement Date of this License and
     concluding with the date on which Licensor initiated such action).

     19.6 Remedies are Cumulative: Unless expressly provided otherwise herein,
     remedies conferred by this License upon the respective parties are not
     intended to be exclusive, but are cumulative and in addition to remedies
     otherwise afforded by law.

              ARTICLE XX. LICENSOR'S CONTRACTUAL SECURITY INTEREST

     20.1 This section has been deleted in its entirety.

     20.2 This section has been deleted in its entirety.

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                            ARTICLE XXI. HOLDING OVER

     21.1 Holdover Status: If Licensee remains in possession of the Licensed
     Premises after the expiration of this License and without the execution of
     a new License, it shall be deemed to be occupying the Licensed Premises as
     a Licensee from month-to-month at a monthly rate equal to the Minimum
     License Fees in effect at the expiration of this License, plus other
     amounts (including without limitation any Percentage License Fees) due
     under this License, plus fifty percent (50%) of the total of all such
     amounts, and such holdover tenancy shall otherwise be subject to all the
     provisions of this License.

                   ARTICLE XXII. SUBORDINATION AND ATTORNMENT

     22.1 Mortgages, etc.: Licensee accepts this License subject and subordinate
     to any leases, mortgages, deeds of trust or other liens ("Lien") presently
     existing or hereafter placed upon the Licensed Premises or the Store as a
     whole and to any renewals and extensions thereof. Licensee agrees that any
     such Lien holder shall have the right at any time to subordinate such Lien
     to this License; provided, however, notwithstanding that this License may
     be (or made to be) superior to a Lien, the provisions of such Lien relative
     to the rights of the Lien holder with respect to proceeds arising from an
     eminent domain taking (including a voluntary conveyance by Licensor) and/or
     arising from insurance payable by reason of damage to or destruction of the
     Licensed Premises shall be prior and superior to any contrary provisions
     contained in this instrument with respect to the payment or usage thereof.
     Licensor is hereby irrevocably vested with full power and authority to
     subordinate this License to any Lien hereafter placed upon the Licensed
     Premises or the Store as a whole, and Licensee agrees upon demand to
     execute such further instruments subordinating this License as Licensor may
     request; provided, however, that upon Licensee's written request, Licensor
     shall use good faith efforts to obtain from any such Lien holder a written
     agreement that the rights of Licensee shall remain in full force and effect
     during the License Term so long as an Event of Default does not occur under
     this License.

     22.2 Notice to Mortgagee: If the holder of an outstanding mortgage, deed of
     trust or other lien covering Licensor's interest in the Licensed Premises
     has given Licensee written notice of its interest in this License, Licensee
     may not exercise any remedies for default by Licensor hereunder unless such
     default remains uncured thirty (30) days after Licensee gives such holder
     written notice of such default.

     22.3 Estoppel Certificates: Licensee agrees that it will from time to time
     upon request by Licensor execute and deliver to Licensor a written
     statement addressed to Licensor (or as designated by Licensor), identifying
     Licensee and this License, certifying that this License is unmodified and
     in full force and effect (or identifying any modifications and certifying
     that this License is in full force and effect as so modified), confirming
     that Licensor is not in default under this License (or if Licensor is in
     default, specifying any default), confirming Licensee's agreements
     contained above in this Article XXII, confirming the Commencement and
     Termination Dates of this License and containing such other information,
     certifications or confirmations as Licensor may reasonably request.
     Licensor is hereby irrevocably appointed and authorized as the agent and
     attorney-in-fact of Licensee to execute and deliver any such written
     statement on Licensee's behalf if Licensee fails to do so within seven (7)
     days after the delivery of a written request from Licensor to Licensee.
     Licensor may treat such failure as an Event of Default.

     22.4 Attornment: Licensee shall attorn to any of Licensor's successors
     under all the terms, covenants and conditions of this License for the
     balance of any remaining License Term.

                     ARTICLE XXIII. NOTICES & CORRESPONDENCE

     23.1 Notices: Any notice required or permitted hereunder shall be in
     writing (a) by certified mail or (b) by overnight delivery. Any notice
     shall be deemed to be delivered when actually received by the designated
     addressee if delivered in person; or, regardless of whether actually
     received or not, when deposited in the United States Mail, postage prepaid,
     certified mail, return receipt requested, addressed to the parties hereto
     at the respective notice addresses set forth in the Basic Provisions or at
     such other addresses as they have theretofore specified by written notice.

     23.2 Notice Binding: All parties included within the terms "Licensor" and
     "Licensee", respectively, shall be bound by notices and payments given and
     made in accordance with the provisions of this License to the same effect
     as if each had received such notice or payment.

                                       19

<PAGE>

                            ARTICLE XXIV. REGULATIONS

     24.1 Compliance with Regulations:
          (a) Licensee shall comply with all laws, rules, orders, directives and
     regulations (collectively "Regulations") pertaining to the Licensed
     Premises, including but not limited to the Americans with Disabilities Act
     (ADA) and environmental Regulations. Licensee waives any claim it may have
     against Licensor regarding any changes Licensor may make in the Store or
     the Licensed Premises necessary to comply with such Regulations.
          (b) Licensee and Licensor specifically acknowledge and agree that they
     will comply with all applicable Federal, state and local laws prohibiting
     discrimination because of race, national origin, citizenship, religion,
     sex, disability, or veteran status.

     24.2 Hazardous Waste: Licensee (hereafter the indemnifying party), its
     successors and assigns, shall indemnify, defend and hold harmless Licensor
     (with counsel reasonably acceptable to Licensor) from and against any and
     all losses, liabilities (including strict liability), damages, injuries,
     expenses, and costs including, without limitation, reasonable attorney's
     fees, of any settlement or judgment and claims of any and every kind
     whatsoever paid, incurred or suffered by, or asserted against, Licensor,
     its successors and assigns by any person or entity or governmental agency,
     for, with respect to, or as a direct or indirect result of the escape,
     seepage, leakage, spillage, emission, discharge or release of any Hazardous
     Substance (as defined herein below) resulting from the operations of the
     Licensee upon or under Licensor's land including without limitation, any
     losses, liabilities (including strict liability), damage, injuries,
     expenses, and costs, including, without limitation, reasonable attorney's
     fees, of any settlement or judgement or claims asserted or arising under,
     as amended, the Comprehensive Environmental Response, Compensation and
     Liability Act, the Superfund Amendment and Reauthorization Act, the
     Resource Conservation Recovery Act, the Federal Water Pollution Control
     Act, the Federal Environmental Pesticides Act, the Clean Water Act, any so
     called federal, state or local "Superfund" or "Superlien" statute, or any
     other statute, law, ordinance, code, rule, regulation, order or decree
     regulating, relating to or imposing liability (including strict liability),
     or standards of conduct concerning any Hazardous Substance.

                             ARTICLE XXV. RELOCATION

     25.1 Relocation: If the Store relocates, Licensor, at its sole option, may
     terminate this License as to such location and neither party shall have any
     further rights, duties or obligations hereunder. If Licensor chooses not to
     terminate the License, then Licensee shall relocate with the Store.
     Licensee will be responsible for installing its own improvements and trade
     fixtures in the same manner as previously described in this License.

                           ARTICLE XXVI. MISCELLANEOUS

     26.1 No Partnership: Nothing herein shall be deemed to create the
     relationship of principal and agent, partnership, joint venture or any
     relationship between the parties hereto other than the relationship of
     Licensor and Licensee.

     26.2 Confidentiality: Both parties agree that they, and all of their
     employees and agents, shall keep confidential the terms of this License.
     The only information either party may give another, upon inquiry is that
     Licensor and Licensee have negotiated a License, unless additional
     disclosure is required by law. Both parties specifically recognizes that it
     is important to the other that any future negotiations it may have with
     others not be impacted by the terms of this arms length agreement, and
     therefore neither party shall disclose any of the economics nor any other
     terms of this License.

     26.3 Consents: Any clause referring to Licensor approval refers to written
     consent. Where consent, approval or permission is required of a party,
     whether to grant such consent, approval or permission shall be within the
     sole discretion of such party; and the delay or withholding of such
     consent, approval or permission shall not constitute any nature of breach
     hereunder or any defense to the performance of any covenant or obligation
     of the other party hereunder.

     26.4 Waivers: One or more waivers of any covenant, term, or condition of
     this License by either party shall not be construed as a waiver of a
     subsequent breach of the same covenant, term or condition. The consent or
     approval by either party to or of any act by the other party requiring such
     consent or approval shall not be deemed to waive or render unnecessary
     consent to or approval of any subsequent similar act.

                                       20

<PAGE>

         26.5  Force Majeure: Whenever a period of time is prescribed for action
         to be taken by either party, neither party shall be liable or
         responsible for, and there shall be excluded from the computation of
         any such period of time, any delays due to strikes, riots, acts of God,
         terrorism, shortages of labor or materials, war, governmental laws,
         regulations or restrictions or any other causes of any kind whatsoever
         which are beyond the reasonable control of such party.

         26.6  Governing Law: The laws (excluding the law regarding conflict of
         laws) of the state in which the Licensed Premises are located shall
         govern this License with regards to such Licensed Premises. If any
         provision of this License is held to be invalid or unenforceable, the
         validity and enforceability of the remaining provisions of this License
         shall not be affected thereby. The parties agree that any action, suit
         or proceeding concerning this License shall be brought only in Benton
         County, Arkansas, which shall be the sole and exclusive venue therefor.

         26.7  Captions: The captions used are for convenience only and do not
         limit or enlarge the provisions.

         26.8  Number; Gender: Whenever here the singular is used, the same
         shall include the plural, and words of any gender shall include each
         other gender.

         26.9  Successors: This License shall inure to the benefit of and be
         binding upon the parties hereto and their respective heirs, successors
         in interest and legal representatives, except as otherwise expressly
         provided.

         26.10 Entire Agreement: This License, together with any exhibits or
         other writings attached hereto or incorporated by reference herein,
         contain the entire agreement between the parties, and all prior and
         contemporaneous negotiations, agreements and understandings are
         superseded hereby and merged and integrated herein. No agreement shall
         be effective to change, modify or terminate this License, in whole or
         in part, unless in writing and duly signed by both parties. Licensor
         and Licensee hereby acknowledge that they are not relying on any
         representation or promise of the other, except as may be expressly set
         forth or incorporated by reference in this License. No oral statements,
         representations or prior written matter relating to the subject matter
         of this License shall give rise to any duties or covenants on the part
         of either party, express or implied, other than the express duties and
         covenants set forth herein. ANY REPRESENTATION BY A PARTY'S EMPLOYEES
         OR AGENTS OR BY ANY THIRD PARTY WHICH IS NOT INCORPORATED IN THIS
         LICENSE SHALL NOT BE BINDING UPON THE PARTY AND SHOULD BE CONSIDERED AS
         UNAUTHORIZED.

         26.11 Other Payments: Notwithstanding the provisions of Section 4.1
         above, any check or other payment tendered by Licensee as a payment in
         full or in any other stated proportion of an unliquidated or disputed
         amount shall be sent to the address to be used for notices under this
         License and shall be accompanied by similarly addressed correspondence
         which states that the accompanying check or other payment is tendered
         as payment in full or in a stated proportion of a specified debt. A
         check or other consideration sent to the address given under subsection
         a above shall not be effective as an accord and satisfaction, whether
         or not marked or accompanied by a writing indicating "payment in full"
         or similar language, or have any other effect upon the obligations of
         Licensee, other than a credit for payment in the amount of the check or
         other consideration received by Licensor.

         26.12 Store Closing: Notwithstanding anything herein to the contrary,
         Licensee agrees to the cancellation of this License and agrees to
         vacate the Licensed Premises on the date the Store ceases doing
         business in and at that location. Licensor shall be allowed to cease
         doing business in the Store at any time, for any reason. This License
         is subordinate to the Licensor's Store Lease in all respects. If
         Licensor's right to occupy is terminated or Licensor closes the Store
         for any reason, this License terminates without liability.

         26.13 Licensee: "Licensee" includes Licensee's successors and assigns.

         26.14 Approvals: When approvals are required to be obtained herein by
         Licensee from Licensor, "Licensor" means the Wal-Mart Leasing Manager
         as listed in the Basic Provisions, unless otherwise specifically stated
         or Licensee is otherwise notified.

         26.15 Restrictions: If Licensee is prohibited from operating its
         business in the Licensed Premises due to restrictions found in an ECR
         or similar document, Licensor will not be considered in default of this
         License, and this License will terminate as to such location upon
         written notice to Licensee from Licensor. Licensee shall have no
         recourse against Licensor for any resulting damages.

                                       21

<PAGE>

         26.16 Advertisements: Licensee may advertise the existence and location
         of its business only after Licensor has approved the manner and content
         of such advertisement, which approval will not be unreasonably withheld
         or delayed. Aside from notices of the existence and location of
         Licensee's business, Licensee will not use Licensor's name, trademark,
         servicemark, or logo in any advertising, marketing, or solicitation
         materials without the Licensor's written consent. In no event will
         either party advertise or otherwise represent that it has any
         relationship with the other other than the relationship of Licensor and
         Licensee arising out of Licensee's occupying space in the Store. In
         addition, Licensee may not initiate any press release containing
         Licensor's name or representing any relationship to Licensor
         whatsoever. Notwithstanding the foregoing, Licensor recognizes that
         Licensee's competitors have access to radio and television advertising
         and that Licensee believes that its weekly unit sales will improve in
         some areas if it has access to radio, television or other electronic
         advertising. In this regard, Licensor will use its best efforts, but
         shall not be obligated in any way, to permit and enable Licensee to use
         radio, television and other electronic media for advertising purposes.

         26.17 Licensor's Default & Liability: If Licensor fails to comply with
         a term, provision or covenant of this License, Licensor shall have
         thirty (30) days after written notice thereof by Licensee to Licensor
         to cure such default, or, as to matters which cannot be remedied within
         thirty (30) days, Licensor agrees to commence efforts to remedy such
         default within such thirty (30) day period and thereafter diligently
         prosecute such efforts so that such default is cured within a
         reasonable time from Licensor's receipt of such notice. The liability
         of Licensor to Licensee for any default by Licensor under the terms of
         this License shall be limited to an amount equal to one year of License
         Fees for the location in which Licensor was found in default.

         26.18 Right to Remove Location from License/Terminate: Intentionally
         omitted.

         26.19 Right to Terminate all Locations: In the event Licensee is in
         default of this License regarding one-third of its locations, Licensor
         reserves the right to terminate this License as it applies to all
         locations.

         26.20 Attorney's Fees: Licensor and Licensee agree that if either party
         brings an action against the other party to enforce the terms hereof or
         to declare rights hereunder each party shall pay its own attorney's
         fees and costs incurred therein except as otherwise provided herein.

         26.21 Licensing of Stores: With regard to the licensing of Stores,
         Licensor hereby agrees to the following:

         .  Licensor shall License a minimum of one hundred and fifty (150) Net
            New Stores per year for the first four (4) years of this License,
            thereafter, Licensor shall use its best efforts to License
            approximately one hundred and fifty (150) Net New Stores per year;
         .  In all new and existing Stores in which space is available for
            outside vendors, Licensor shall use its best efforts, but shall not
            be obligated in any way, to give [***] to Licensee for the use of
            such space;
         .  Licensor shall use its best efforts, but shall not be obligated in
            any way, to have Licensee's Business drawn into the architectural
            plans for any new Store of one-hundred thousand square feet (100,000
            sq. ft.) or larger, and
         .  Licensor shall use its best efforts, but shall not be obligated in
            any way, to License Licensee's Business in all of its Division 1
            Stores and SuperCenters that do not have a portrait studio.
         .  Licensor shall use its best efforts, but shall not be obligated in
            any way, to provide sufficient floor space to allow for two camera
            rooms in High Volume Locations.

         Notwithstanding the provisions of this Section 26.21, Licensor
disclaims that this Section 26.21 warrants or guarantees in any way that this
License shall be extended to any particular Store operated by Licensor in the
United States and Licensor further reserves the right to refuse, in its sole and
absolute discretion, to extend this License to any particular Store operated by
Licensor in the United States.

-----------------------

[***] Redacted pursuant to a request for confidential treatment.

                                       22

<PAGE>

                                    EXHIBIT A
                             COMMENCEMENT AGREEMENT

         Re:    Wal-Mart Master License Agreement between Wal-Mart Stores, Inc.
                ("Licensor") and the undersigned ("Licensee") concerning
                Wal-Mart Store No. _______, _______, _______, (the "Store").
                List store location on all correspondence.

         Licensor and Licensee confirm the following information with respect to
the Store (capitalized terms not otherwise defined in this agreement shall have
the meaning given to them in the Wal-Mart License Agreement).

1. The Wal-Mart License Agreement is in full force and effect and has not been
modified, superseded or changed, except as follows:

2.  Licensee accepted the Licensed Premises and opened on ________________.

3.  The initial License Term commenced on _________ and will expire on ________.

EXECUTED BY LICENSOR AND LICENSEE AS OF ______________________:

Licensor:                                            Licensee:
Wal-Mart Stores, Inc.                                PCA International, Inc.

By:________________________________________  By:________________________________

Title:     Director                          Title: ____________________________
      -------------------------------------

                                       23

<PAGE>

                                    EXHIBIT B

                                 RENEWAL OPTION

         This License shall be automatically renewed with respect to any of
Licensee's Businessess for one (1) term of five (5) year(s) unless notice is
given by either Licensor or Licensee at least 180 (one hundred eighty) days
prior to expiration of the then current term as to such of Licensee's Businesses
as stated in the notice. The terms of this License and the Licenses created
pursuant to this License shall be continued for any any renewal period.

                                   INITIALED:

                             LICENSOR: _____________

                             LICENSEE: _____________

                                       24

<PAGE>

                                  ATTACHMENT A

                              LICENSEE'S BUSINESSES

Licensor does hereby License to Licensee and Licensee does hereby accept such
License in accordance with the Wal-Mart Master License Agreement between the
parties made the 4th day of April, 2002 to carry on a Licensee's Business in or
about each of the following Wal-Mart stores (each of which shall be a "Store"),
each of which shall have a Commencement Date in respect of Licensee's Business
located in or about the applicable Store as set forth adjacent to the applicable
store (for greater certainty, the format below shows the Wal-Mart Store #,
followed by the city and state of such Store):

SEE ATTACHED SPREADSHEET--ATTACHMENT A-1

The Licenses created pursuant to this Attachment A shall supersede any agreement
currently in place for such locations and shall commence on the Commencement
Date and, subject to earlier termination as provided for in this License,
continue in effect for each Licensee's Business for a term ending on the End
Date (the "Term").

         IN WITNESS WHEREOF the parties have executed this Attachment A this 5th
day of April, 2002.

                                       WAL-MART STORES, INC.

                                       By:      /s/ Martin G. Gilbert, Jr.
                                          --------------------------------------
                                       Title:   Director, Wal-Mart Realty Co.
                                             -----------------------------------

                                       WAL-MART STORES EAST, LP

                                       By:      /s/ Martin G. Gilbert, Jr.
                                          --------------------------------------
                                       Title:   Director, Wal-Mart Realty Co.
                                             -----------------------------------

                                       WAL-MART LOUISIANA, LLC

                                       By:      /s/ Martin G. Gilbert, Jr.
                                          --------------------------------------
                                       Title:   Director, Wal-Mart Realty Co.
                                             -----------------------------------

                                       WAL-MART STORES TEXAS, LP

                                       By:      /s/ Martin G. Gilbert, Jr.
                                          --------------------------------------
                                       Title:   Director, Wal-Mart Realty Co.
                                             -----------------------------------

                                       PCA INTERNATIONAL, INC.

                                       By:      /s/ Barry Feld
                                          --------------------------------------
                                          Barry Feld - President

                                       25

<PAGE>

                           ATTACHMENT A - Supplement 1
                        LICENSEE'S BUSINESSES IN MICHIGAN

Licensor does hereby License to Licensee and Licensee does hereby accept such
License in accordance with the Wal-Mart Master License Agreement between the
parties made the 4th day of April 2002 to carry on a Licensee's Business in or
about each of the following Wal-Mart stores (each of which shall be a "Store"),
each of which shall have a Commencement Date in respect of Licensee's Business
located in or about the applicable Store as set forth adjacent to the applicable
store (for greater certainty, the format below shows the Wal-Mart Store #,
followed by the city and state of such Store):

SEE ATTACHED SPREADSHEET -- A-1 - Supplement 1

The Licenses created pursuant to this Attachment A - Supplement 1 shall
supersede any agreement currently in place for such locations and shall commence
on the Commencement Date and, subject to earlier termination as provided for in
this License, continue in effect for each Licensee's Business for a term ending
on the End Date (the "Term").

                  IN WITNESS WHEREOF the parties have executed this Attachment A
this 17th day of June, 2002.

                               WAL-MART STORES, INC.

                               By: /s/ Martin G. (Marty) Gilbert, Jr.
                                   ---------------------------------------------

                               Title: Martin G. (Marty) Gilbert, Jr. - Director
                                      ------------------------------------------
                                      Wal-Mart Realty
                                      ---------------

                               WAL-MART STORES EAST, LP

                               By: /s/ Martin G. (Marty) Gilbert, Jr.
                                   ---------------------------------------------

                               Title: Martin G. (Marty) Gilbert, Jr. - Director
                                      ------------------------------------------
                                      Wal-Mart Realty
                                      ---------------

                               WAL- LOUISIANA, LLC

                               By: /s/ Martin G. (Marty) Gilbert, Jr.
                                   ---------------------------------------------

                               Title: Martin G. (Marty) Gilbert, Jr. - Director
                                      ------------------------------------------
                                      Wal-Mart Realty
                                      ---------------

                               WAL- MART STORES TEXAS, LP

                               By: /s/ Martin G. (Marty) Gilbert, Jr.
                                   ---------------------------------------------

                               Title: Martin G. (Marty) Gilbert, Jr. - Director
                                      ------------------------------------------
                                      Wal-Mart Realty
                                      ---------------

                               PCA INTERNATIONAL, INC.

                               By: /s/  Barry Feld
                                   ---------------------------------------------
                                   Barry Feld - President

                                       26

<PAGE>

             PCA INTERNATIONAL, INC. ATTACHMENT A - 1 - Supplement 1

<TABLE>
<CAPTION>
  Store         Lease       City                     State   Commencement Date             End Date        Square Footage
  -----         -----       ----                     -----   ------------------            --------        --------------
  <S>           <C>         <C>                      <C>     <C>                           <C>             <C>
  01422         27494       ALMA                      MI             4/4/2002              4/30/2007              180
  01428         27497       MT. PLEASANT              MI             4/4/2002              4/30/2007              180
  01540         32855       SOUTH HAVEN               MI             4/4/2002              4/30/2007               98
  01593         27587       COLDWATER                 MI             4/4/2007              4/30/2007              390
  01611         27600       FORT GRATIOT              MI             4/4/2007              4/30/2007              260
  01642         27620       CHARLOTTE                 MI             4/4/2007              4/30/2007              390
  01719         33626       BIG RAPIDS                MI             4/4/2007              4/30/2007              390
  01752         27690       BAY CITY                  MI             4/4/2007              4/30/2007              216
  01754         27692       HOWELL                    MI             4/4/2007              4/30/2007              390
  01790         27713       MONROE                    MI             4/4/2007              4/30/2007              180
  07198         31924       CARO                      MI             4/4/2007              4/30/2007              390
  01824         27731       YPSILANTI                 MI             4/4/2007              4/30/2007              260
  01836         27741       ADRIAN                    MI             4/4/2002              4/30/2007              180
  01923         27809       COMSTOCK PARK             MI             4/4/2002              4/30/2007              180
  01928         27810       FLINT                     MI             4/4/2007              4/30/2007              180
  01942         27817       HOLLAND                   MI             4/4/2007              4/30/2007              180
  02010         29988       NILES                     MI             4/4/2002              4/30/2007              180
  02061         31929       PLAINWELL                 MI             4/4/2002              4/30/2007              390
  02062         27888       BENTON HARBOR             MI             4/4/2007              4/30/2007              180
  02079         27900       MARQUETTE                 MI             4/4/2007              4/30/2007              180
  02080         27901       BATTLE CREEK              MI             4/4/2007              4/30/2007              180
  02102         31352       LUDINGTON                 MI             4/4/2002              4/30/2007              390
  02238         28007       MUSKEGON                  MI             4/4/2002              4/30/2007              180
  02273         28028       BURTON                    MI             4/4/2007              4/30/2007              260
  02338         28061       TRAVERSE CITY             MI             4/4/2007              4/30/2007              180
  02354         28065       AUBURN HILLS              MI             4/4/2002              4/30/2007              180
  02358         28067       ALPENA                    MI             4/4/2002              4/30/2007              390
  02417         28089       PETOSKEY                  MI             4/4/2002              4/30/2007              180
  02493         28116       KENTWOOD                  MI             4/4/2007              4/30/2007              180
  02558         29155       STERLING HEIGHTS          MI             4/4/2007              4/30/2007              216
  02559         28156       WARREN                    MI             4/4/2007              4/30/2007              216
  02567         28162       GRANDVILLE                MI             4/4/2002              4/30/2007              216
  02618         28193       COMMERCE                  MI             4/4/2002              4/30/2007              216
  02619         28194       MIDLAND                   MI             4/4/2002              4/30/2007              216
  02644         28203       SAGINAW                   MI             4/4/2007              4/30/2007              216
  02692         33633       MOUNT CLEMENS             MI             4/4/2007              4/30/2007              260
  02693         33167       FENTON                    MI             4/4/2002              4/30/2007              240
  02700         28225       WHITE LAKE                MI             4/4/2002              4/30/2007              216
  02869         27266       LANSING                   MI             4/4/2002              4/30/2007              216
  02872         27265       BELLEVILLE                MI             4/4/2007              4/30/2007              216
  02873         27264       TROY                      MI             4/4/2007              4/30/2007              216
  02912         28682       TAYLOR                    MI             4/4/2002              4/30/2007              216
  02959         31934       ROSEVILLE                 MI             4/4/2002              4/30/2007              240
</TABLE>

  Initial       BF
                --

  Initial       MGG
                ---

                                       27

<PAGE>

                                  ATTACHMENT B
                          NEW STORE LICENSE ATTACHMENT

WHEREAS Wal-Mart Stores, Inc. (the "Licensor") and PCA International, Inc.
(the "Licensee") entered into a Wal-Mart Master License Agreement dated the ____
day of ___________, _____ (the "License");

AND WHEREAS Licensor and Licensee desire that a further retail store of Licensor
be made subject to the License;

NOW THEREFORE THIS AGREEMENT WITNESSES that in consideration of the mutual
covenants, conditions and agreements herein contained, other good and valuable
consideration and the sum of Five Dollars ($5.00) paid by each party to the
other (the receipt and sufficiency of which are hereby acknowledged), the
parties hereto do hereby covenant and agree, each with the other, as follows:

All of the capitalized terms used in this New Store License Attachment shall
have the meanings ascribed to them in the License unless otherwise defined.

Licensor does hereby License to Licensee and Licensee does hereby accept such
License in accordance with the License between the parties made the ____day of
_____________, _____ to carry on a Licensee's Business in or about Wal-Mart
Store #_______ located at * (the "Store").

The Commencement Date in respect of Licensee's Business located in or about this
Store shall be __________________, unless modified by an Exhibit A, Commencement
Agreement.

The License created pursuant to this New Store License Attachment shall commence
on the Commencement Date and, subject to earlier termination as provided for in
the License Agreement, continue in effect for a term ending at 12:00 midnight on
the last day of the commencement month which is five (5) years following the
Commencement Date for such Licensee's Business (the "Term") and shall be
automatically renewed for an additional period of five (5) years, as provided
for and subject to the conditions contained in Exhibit B of the License.

Upon the execution of this New Store License Attachment, Licensee's Business
located in or about this Store shall become subject to the terms of the License
Agreement.

         IN WITNESS WHEREOF the parties have executed this License Attachment
this ___ day of ___________, ____.

                                          WAL-MART STORES, INC.
                                          By: __________________________________
                                          Title:________________________________

                                          PCA INTERNATIONAL, INC.
                                          By: _______________________________
                                              Barry Feld - President

                                       28

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00044-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00044-of-00352.parquet"}]]