SECURITY AGREEMENT

Agreement dated July 19, 2013 between Premier Packaging Corporation as Debtor (whether one or more than one, herein called “Debtor”) having an address of 6 Framark Drive, Victor, NY 14564 and People’s Capital and Leasing Corp. as Secured Party (herein called “Secured Party”).

For valuable consideration and to secure indebtedness of Debtor to Secured Party under a certain Demand Promissory Note of even date (hereinafter called the “Note”), and any renewals, extensions or replacements thereof (the “Loan”), and any other obligation of Debtor to Secured Party which is in existence or may hereafter come into existence, Debtor hereby grants to Secured Party a security interest in the property listed on the annexed Schedule B (collectively referred to as the “Collateral”).

(a) that the Collateral is lawfully owned by debtor, free and clear of all other liens, encumbrances and security interests, except if otherwise specified in Schedule B, and Debtor will warrant and defend title to the same against the claims and demands of all persons; (b) that, except if otherwise specified in Schedule B, Debtor has not granted, and will not grant, to anyone other than Secured Party any security interest in the Collateral and Financing Statement or other instrument affecting the Collateral, nor rights therein, bearing the signature of, or otherwise authorized by, Debtor, is on file in any public filing office; (c) that the Collateral is and shall be retained in Debtor’s possession at 6 Framark Drive, Victor, NY 14564; (d) that the Collateral shall at all times remain personal property; (e) that the Collateral is used for business; (f) that if the Collateral is attached to real estate or if the Collateral is or may become subject to a prior interest in favor of any party having an interest in the real estate, Debtor, on demand of Secured Party will furnish Secured Party with a writing by which any and all parties having such prior interest subordinate or disclaim their rights and priorities to, or in favor of Secured Party’s security interest provided herein.

Upon the occurrence of any Event of Default, Secured Party shall have all of the rights and remedies of a Secured Party under the Uniform Commercial Code and Secured Party is hereby authorized and empowered, with the aid and assistance of any person or persons, to enter any premises where the collateral or any part thereof is, or may be, placed, and to assemble and/or remove same and/or to render it unusable and sell and dispose of such Collateral at one or more public or private sales upon at least ten (10) days’ written notice to Debtor of such sale. The proceeds of each such sale shall be applied by Secured Party toward the payment of the Note or other indebtedness secured hereby, expenses of retaking, including payment by Secured Party of storage, preparing for such sale, advertising, selling and all related charges and disbursements in connection therewith. Should the proceeds of any such sale be insufficient to fully pay all the items above mentioned, Debtor hereby covenants and agrees to pay any deficiency to Secured Party and if Secured Party employs counsel for the purpose of effecting collection of any monies due hereunder (whether or not Secured Party has retaken the Collateral or any part thereof) or for the purpose of recovering the collateral, or for the purpose of protecting Secured Party’s interest because of any default of debtor, Debtor agrees to pay reasonable attorney’s fees and such attorney’s fees shall be a lien on the collateral herein and the proceeds thereof. Secured Party may require debtor to assemble the Collateral and make it available to Secured Party at a place to be designated by Secured Party which is reasonably convenient to both parties. All rights and remedies hereunder are cumulative and not exclusive and a waiver by Secured Party of any breach by Debtor of the terms, covenants, and conditions hereof shall not constitute a waiver of future breaches or defaults; and no failure or delay on the part of Secured Party in exercising any of its options, powers, rights or remedies, or partial or single exercise thereof, shall constitute a waiver thereof.

IN WITNESS WHEREOF, Debtor has executed this Security Agreement as of the date first above written.

Agreed To and Accepted By:

SECURITY AGREEMENT

SCHEDULE B

The following description of property supplements, and is part of, the Security Agreement No.3391-601 dated July 19, 2013 between the undersigned Borrower and People’s Capital and Leasing Corp. and may be attached to said Security Agreement and any related UCC Financing statements, Acceptance or Delivery Certificate or other document describing the property.

All machinery, equipment, furniture and fixtures, now owned or hereafter acquired, complete with any and all attachments, accessions, additions, replacements, improvements, modifications and substitutions thereto and therefor and all proceeds including insurance and products thereof and therefrom including the following:

One (1) used 2006 Heidelberg Model XL105-6LX CP2000, image control, chambered doctor blade coater, non stop feeder, X2 Non Stop Delivery, IR dryer , Non Stop Feeder, all program controlled wash ups, Autoplate, Ink line, air cooled, WEKO AP500 Eltex powder spray 6 color sheetfed press S/N ________________

All accounts, accounts receivable, contract rights, instruments, general intangibles, documents, investment property, letter of credit rights, payment intangibles and chattel paper now owned or hereafter acquired and all proceeds thereof and therefrom.

All inventory and any other goods, merchandise or other personal property held by debtor for sale or lease and all raw materials, work or goods in process or materials or supplies of every nature used, consumed or to be consumed in debtor’s business, now owned or hereafter acquired and all proceeds, including insurance proceeds and products of any of the foregoing.