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                                                                   EXHIBIT 10.1


                                 LOAN AGREEMENT


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<S>             <C>                                           <C> 
BORROWER:        MOTOR CARGO INDUSTRIES, INC.; ET.AL.          LENDER:  ZIONS FIRST NATIONAL BANK
                 845 WEST CENTER STREET                                 HEAD OFFICE/COMMERCIAL BANKING
                 NORTH SALT LAKE CITY, UT 84054                         #1 SOUTH MAIN STREET
                                                                        P.O. BOX 25822
                                                                        SALT LAKE CITY, UT 84125

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THIS LOAN AGREEMENT BETWEEN MOTOR CARGO INDUSTRIES, INC. AND MOTOR CARGO
(REFERRED TO IN THIS AGREEMENT INDIVIDUALLY AND COLLECTIVELY AS "BORROWER") AND
ZIONS FIRST NATIONAL BANK (REFERRED TO IN THIS AGREEMENT AS "LENDER") IS MADE
AND EXECUTED ON THE FOLLOWING TERMS AND CONDITIONS. BORROWER HAS RECEIVED PRIOR
COMMERCIAL LOANS FROM LENDER OR HAS APPLIED TO LENDER FOR A COMMERCIAL LOAN OR
LOANS AND OTHER FINANCIAL ACCOMMODATIONS, INCLUDING THOSE WHICH MAY BE DESCRIBED
ON ANY EXHIBIT OR SCHEDULE ATTACHED TO THIS AGREEMENT. ALL SUCH LOANS AND
FINANCIAL ACCOMMODATIONS, TOGETHER WITH ALL FUTURE LOANS AND FINANCIAL
ACCOMMODATIONS FROM LENDER TO BORROWER, ARE REFERRED TO IN THIS AGREEMENT
INDIVIDUALLY AS THE "LOAN" AND COLLECTIVELY AS THE "LOANS." BORROWER UNDERSTANDS
AND AGREES THAT: (a) IN GRANTING, RENEWING, OR EXTENDING ANY LOAN, LENDER IS
RELYING UPON BORROWERS REPRESENTATIONS, WARRANTIES, AND AGREEMENTS, AS SET FORTH
IN THIS AGREEMENT; (b) THE GRANTING, RENEWING, OR EXTENDING OF ANY LOAN BY
LENDER AT ALL TIMES SHALL BE SUBJECT TO LENDER'S SOLE JUDGMENT AND DISCRETION;
AND (c) ALL SUCH LOANS SHALL BE AND SHALL REMAIN SUBJECT TO THE FOLLOWING TERMS
AND CONDITIONS OF THIS AGREEMENT.

TERM. This Agreement shall be effective as of NOVEMBER 25, 1998, and shall
continue thereafter until all Indebtedness of Borrower to Lender has been
performed in full and the parties terminate this Agreement in writing.

DEFINITIONS. The following words shall have the following meanings when used in
this Agreement. Terms not otherwise defined in this Agreement shall have the
meanings attributed to such terms in the Uniform Commercial Code. All references
to dollar amounts shall mean amounts in lawful money OF the United States of
America.

         AGREEMENT. The word "Agreement" means this Loan Agreement, as this Loan
         Agreement may be amended or modified from time to time, together with
         all exhibits and schedules attached to this Loan Agreement from time to
         time.

         ACCOUNT. The word "Account" means a trade account, account receivable,
         or other right to payment for goods sold or services rendered owing to
         Borrower (or to a third party grantor acceptable to Lender).

         ACCOUNT DEBTOR. The words "Account Debtor" mean the person or entity
         obligated upon an Account. 

         ADVANCE. The word "Advance" means a disbursement of Loan funds under
         this Agreement. 

         BORROWER. The word "Borrower" means individually and collectively
         MOTOR CARGO INDUSTRIES, INC. and MOTOR CARGO and all other persons and
         entities signing Borrowers' Note.

         BORROWING BASE. The words "Borrowing Base" mean as determined by Lender
         from time to time, the lesser of (a) $5,000,000.00; or (b) 50.000% or
         70.000% of the aggregate amount of Eligible Accounts. Borrower shall
         determine the advance rate of 50.000% or 70.000%. In determining the
         amount of the Borrowing Base, all Eligible Accounts of all Borrowers
         shall be included.



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         BUSINESS DAY. The words "Business Day" mean a day on which commercial
         banks are open for business in the State of Utah.

         CERCLA. The word "CERCLA" means the Comprehensive Environmental
         Response, Compensation, and Liability Act of 1980, as amended.

         CASH FLOW. The words "Cash Flow" mean net income after taxes, and
         exclusive of extraordinary gains and income, plus depreciation and
         amortization.

         COLLATERAL. The word "Collateral" means and includes without limitation
         all property and assets granted as collateral security for a Loan,
         whether real or personal property, whether granted directly or
         indirectly, whether granted now or in the future, and whether granted
         in the form of a security interest, mortgage, deed of trust,
         assignment, pledge, chattel mortgage, chattel trust, factors lien,
         equipment trust, conditional sale, trust receipt, lien, charge, lien or
         title retention contract, lease or consignment intended as a security
         device, or any other security or lien interest whatsoever, whether
         created by law, contract, or otherwise. The word "Collateral" includes
         without limitation all collateral described below in the section titled
         "COLLATERAL."

         DEBT. The word "Debt" means all of Borrower's liabilities excluding
         Subordinated Debt.

         ELIGIBLE ACCOUNTS. The words "Eligible Accounts" mean, at any time, all
         of Borrower's Accounts which contain selling terms and conditions
         acceptable to Lender. The net amount of any Eligible Account against
         which Borrower may borrow shall exclude all returns, discounts,
         credits, and offsets of any nature. Unless otherwise agreed to by
         Lender in writing, Eligible Accounts do not include:

                  (a)      Accounts with respect to which the Account Debtor is
                           an officer, an employee or agent of Borrower.

                  (b)      Accounts with respect to which the Account Debtor is
                           a subsidiary of, or affiliated with or related to
                           Borrower or its shareholders, officers, or directors

                  (c)      Accounts with respect to which goods are placed on
                           consignment, guaranteed sale, or other terms by
                           reason of which the payment by the Account Debtor may
                           be conditional.

                  (d)      Accounts with respect to which the Account Debtor is
                           not a resident of the United States, except to the
                           extent such Accounts are supported by insurance,
                           bonds or other assurances satisfactory to Lender.

                  (e)      Accounts with respect to which Borrower is or may
                           become liable to the Account Debtor for goods sold or
                           services rendered by the Account Debtor to Borrower.

                  (f)      Accounts which are subject to dispute, counterclaim,
                           or setoff.

                  (g)      Accounts with respect to which the goods have not
                           been shipped or delivered, or the services have not
                           been rendered, to the Account Debtor.

                  (h)      Accounts with respect to which Lender, in its sole
                           discretion, deems the creditworthiness or financial
                           condition of the Account Debtor to be unsatisfactory.




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                  (i)      Accounts of any Account Debtor who has filed or has
                           had filed against it a petition in bankruptcy or an
                           application for relief under any provision of any
                           state or federal bankruptcy, insolvency, or
                           debtor-in-relief acts; or who has had appointed a
                           trustee, custodian, or receiver for the assets of
                           such Account Debtor; or who has made an assignment
                           for the benefit of creditors or has become insolvent
                           or fails generally to pay its debts (including its
                           payrolls) as such debts become due.

                  (j)      Accounts with respect to which the Account Debtor is
                           the United States government or any department or
                           agency of the United States.

                  (k)      Accounts which have not been paid in full within 60
                           DAYS FROM DUE DATE OR 90 DAYS from the invoice date.
                           The entire balance of any Account of any single
                           Account debtor will be ineligible whenever the
                           portion of the Account which has not been paid within
                           60 DAYS FROM DUE DATE OR 90 DAYS from the invoice
                           date is in excess of 20.000% of the total amount
                           outstanding on the Account.

                  (1)      That portion of the Accounts of any single Account
                           Debtor which exceeds 10.000% of all of Borrower's
                           Accounts.

                  (m)      Accounts with respect to which the Account Debtor is
                           not a resident of the following Canadian Provinces:
                           British Columbia, Alberta, Saskatchewan, Manitoba and
                           Ontario, except to the extent such Accounts are
                           supported by instance, bonds or other assurances
                           satisfactory to Lender. Accounts which Lender in its
                           sole discretion reasonably deems ineligible.

         ERISA. The word "ERISA" means the Employee Retirement Income Security
         Act of 1974, as amended.

         EVENT OF DEFAULT. The words "Event of Default" mean and include without
         limitation any of the Events of Default set forth below in the section
         titled "EVENTS OF DEFAULT."

         EXPIRATION DATE. The words "Expiration Date" mean the date of
         termination of Lenders commitment to lend under this Agreement.

         GRANTOR. The word "Grantor" means and includes without limitation each
         and all of the persons or entities granting a Security Interest in any
         Collateral for the Indebtedness, including without limitation all
         Borrowers granting such a Security Interest.

         GUARANTOR. The word "Guarantor" means and includes without limitation
         each and all of the guarantors, sureties, and accommodation parties in
         connection with any Indebtedness.

         INDEBTEDNESS. The word "Indebtedness" means and includes without
         limitation all Loans, together with all other obligations, debts and
         liabilities of Borrower to Lender, or any one or more of them, as well
         as all claims by Lender against Borrower, or any one or more of them;
         whether now or hereafter existing, voluntary or involuntary, due or not
         due, absolute or contingent, liquidated or unliquidated; whether
         Borrower may be liable individually or jointly with others; whether
         Borrower may be obligated as a guarantor, surety, or otherwise; whether
         recovery upon such lndebtedness may be or hereafter may become barred
         by any statute of limitations; and whether such Indebtedness may be or
         hereafter may become otherwise unenforceable.

         LENDER. The word "Lender" means ZIONS FIRST NATIONAL BANK, its
         successors and assigns.




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         LETTER OF CREDIT. The words "Letter of Credit" mean a letter of credit
         issued by Lender on behalf of Borrower as described below in the
         section titled "Letter of Credit Facility."

         LINE OF CREDIT. The words "Line of Credit" mean the credit facility
         described in the Section titled "LINE OF CREDIT" below.

         LIQUID ASSETS. The words "Liquid Assets" mean Borrowers cash on hand
         plus Borrowees readily marketable securities.

         LOAN. The word "Loan" or "Loans" means and includes without limitation
         any and all commercial loans and financial accommodations from Lender
         to Borrower, whether now or hereafter existing, and however evidenced,
         including without limitation those loans and financial accommodations
         described herein or described on any exhibit or schedule attached to
         this Agreement from time to time.

         NOTE. The word "Note" means and includes without limitation Borrowers
         promissory note or notes, if any, evidencing Borrowers Loan obligations
         in favor of Lender, as well as any substitute, replacement or
         refinancing note or notes therefor.

         PERMITTED LIENS. The words "Permitted Liens" mean: (a) liens and
         security interests securing Indebtedness owed by borrower to Lender;
         (b) liens for taxes, assessments, or similar charges either not yet due
         or being contested in good faith; (c) liens of materialmen, mechanics,
         warehousemen, or carriers, or other like liens arising in the ordinary
         course of business and securing obligations which are not yet
         delinquent; (d) purchase money liens or purchase money security
         interests upon or in any property acquired or held by Borrower in the
         ordinary course of business to secure indebtedness outstanding on the
         date of this Agreement or permitted to be incurred under the paragraph
         of this Agreement titled "Indebtedness and Liens"; (e) liens and
         security interests which, as of the date of this Agreement, have been
         disclosed to and approved by the Lender in writing; and (f) those liens
         and security interests which in the aggregate constitute an immaterial
         and insignificant monetary amount with respect to the net value of
         Borrower's assets.

         RELATED DOCUMENTS. The words "Related Documents" mean and include
         without limitation all promissory notes, credit agreements, loan
         agreements, environmental agreements, guaranties, security agreements,
         mortgages, deeds of trust, and all other instruments, agreements and
         documents, whether now or hereafter existing, executed in connection
         with the Indebtedness.

         SECURITY AGREEMENT. The words "Security Agreement" mean and include
         without limitation any agreements, promises, covenants, arrangements,
         understandings or other agreements, whether created by law, contract,
         or otherwise, evidencing, governing, representing, or creating a
         Security Interest.

         SECURITY INTEREST. The words "Security Interest" mean and include
         without limitation any type of collateral security, whether in the form
         of a lien, charge, mortgage, deed of trust, assignment, pledge, chattel
         mortgage, chattel trust, factor's lien, equipment trust, conditional
         sale, trust receipt, lien or title retention contract, lease or
         consignment intended as a security device, or any offer security or
         lien interest whatsoever, whether created by law, contract, or
         otherwise.

         SARA. The word "SARA" means the Superfund Amendments and
         Reauthorization Act of 1986 as now or hereafter amended.




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         SUBORDINATED DEBT. The words "Subordinated Debt" mean indebtedness and
         liabilities of Borrower which have been subordinated by written
         agreement to indebtedness owed by Borrower to Lender in form and
         substance acceptable to Lender.

         TANGIBLE NET WORTH. The words "Tangible Net Worth" mean Borrower's
         total assets excluding all intangible assets (i.e., goodwill,
         trademarks, patents, copyrights, organizational expenses, and similar
         intangible items, but including leaseholds and leasehold improvements)
         less total Debt.

         WORKING CAPITAL. The words "Working Capital" mean Borrower's current
         assets, excluding prepaid expenses, less Borrowees current liabilities.

LINE OF CREDIT. Lender agrees to make Advances to Borrower from time to time
from the date of this Agreement to the Expiration Date, provided the aggregate
amount of such Advances outstanding at any time does not exceed the Borrowing
Base. Within the foregoing limits, Borrower may borrow, partially or wholly
prepay, and reborrow under this Agreement as follows.

         CONDITIONS PRECEDENT TO EACH ADVANCE. Lender's obligation to make any
         Advance to or for the account of Borrower under this Agreement is
         subject to the following conditions precedent, with all documents,
         instruments, opinions, reports, and other items required under this
         Agreement to be in form and substance satisfactory to Lender:

         (a) Lender shall have received evidence that this Agreement and all
         Related Documents have been duly authorized, executed, and delivered by
         Borrower to Lender.

         (b) Lender shall have received such opinions of counsel, supplemental
         opinions, and documents as Lender may request.

         (c) The security interests in the Collateral shall have been duly
         authorized, created, and perfected with first lien priority and shall
         be in full force and effect.

         (d) All guaranties required by Lender for the Line of Credit shall have
         been executed by each Guarantor, delivered to Lender, and be in full
         force and effect.

         (e) Lender, at its option and for its sole benefit, shall have
         conducted an audit of Borrower's Accounts, books, records, and
         operations, and Lender shall be satisfied as to their condition.

         (f) Borrower shall have paid to Lender all fees, costs, and expenses
         specified in this Agreement and the Related Documents as are then due
         and payable.

         (g) There shall not exist at the time of any Advance a condition which
         would constitute an Event of Default under this Agreement, and Borrower
         shall have delivered to Lender the compliance certificate called for in
         the paragraph below titled "Compliance Certificate."

         MAKING LOAN ADVANCES. Advances under the Line of Credit may be
         requested orally by authorized persons. Lender may, but need not,
         require that all oral requests be confirmed in writing. Each Advance
         shall be conclusively deemed to have been made at the request of and
         for the benefit of Borrower (a) when credited to any deposit account of
         Borrower maintained with Lender or (b) when advanced in accordance with
         the instructions of




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         an authorized person. Lender, at its option, may set a cutoff time,
         after which all requests for Advances will be treated as having been
         requested on the next succeeding Business Day.

         MANDATORY LOAN REPAYMENTS. If at any time the aggregate principal
         amount of the outstanding Advances shall exceed the applicable
         Borrowing Base, Borrower, immediately upon written or oral notice from
         Lender, shall pay to Lender an amount equal to the difference between
         the outstanding principal balance of the Advances and the Borrowing
         Base. On the Expiration Date, Borrower shall pay to Lender in full the
         aggregate unpaid principal amount of all Advances then outstanding and
         all accrued unpaid interest, together with all other applicable fees,
         costs and charges, if any, not yet paid.

         LOAN ACCOUNT. Lender shall maintain on its books a record of account in
         which Lender shall make entries for each Advance and such other debits
         and credits as shall be appropriate in connection with the credit
         facility. Lender shall provide Borrower with periodic statements of
         Borrower's account, which statements shall be considered to be correct
         and conclusively binding on Borrower unless Borrower notifies Lender to
         the contrary within thirty (30) days after Borrower's receipt of any
         such statement which Borrower deems to be incorrect.

COLLATERAL. To secure payment of the Line of Credit and performance of all other
Loans, obligations and duties owed by Borrower to Lender, Borrower (and others,
if required) shall grant to Lender Security Interests in such property and
assets as Lender may require (the "Collateral"), including without limitation
Borrower's present and future Accounts and general intangibles. Lenders Security
Interests in the Collateral shall be continuing liens and shall include the
proceeds and products of the Collateral, including without limitation the
proceeds of any insurance. With respect to the Collateral, Borrower agrees and
represents and warrants to Lender:

         PERFECTION OF SECURITY INTERESTS. Borrower agrees to execute such
         financing statements and to take whatever other actions are requested
         by Lender to perfect and continue Lenders Security Interests in the
         Collateral. Upon request of Lender, Borrower will deliver to Lender any
         and all of the documents evidencing or constituting the Collateral, and
         Borrower will note Lender's interest upon any and all chattel paper if
         not delivered to Lender for possession by Lender. Contemporaneous with
         the execution of this Agreement, Borrower will execute one or more UCC
         financing statements and any similar statements as may be required by
         applicable law, and will fib such financing statements and all such
         similar statements in the appropriate location or locations. Borrower
         hereby appoints Lender as its irrevocable attorney-in-fact for the
         purpose of executing any documents necessary to perfect or to continue
         any Security Interest. Lender may at any time, and without further
         authorization from Borrower, file a carbon, photograph, facsimile, or
         other reproduction of any financing statement for use as a financing
         statement. Borrower will reimburse Lender for all expenses for the
         perfection, termination, and the continuation of the perfection of
         Lenders security interest in the Collateral. Borrower promptly will
         notify Lender of any change in Borrower's name including any change to
         the assumed business names of Borrower. Borrower also promptly will
         notify Lender of any change in Borrower's Social Security Number or
         Employer Identification Number. Borrower further agrees to notify
         Lender in writing prior to any change in address or location of
         Borrower's principal governance office or should Borrower merge or
         consolidate with any other entity.

         COLLATERAL RECORDS. Borrower does now, and at all times hereafter
         shall, keep correct and accurate records of the Collateral, all of
         which records shall be available to Lender or Lenders representative
         upon demand for inspection and copying at any reasonable time. With
         respect to the Accounts, Borrower agrees to keep and maintain such
         records as Lender may require, including without limitation information
         concerning Eligible Accounts and Account balances and agings.




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         COLLATERAL SCHEDULES. Concurrently with the execution and delivery of
         this Agreement, Borrower shall execute and deliver to Lender a schedule
         of Accounts and Eligible Accounts, in form and substance satisfactory
         to the Lender. Thereafter Borrower shall execute and deliver to Lender
         such supplemental schedules of Eligible Accounts and such other matters
         and information relating to Borrowers Accounts as Lender may request.
         Supplemental schedules shall be delivered according to the following
         schedule: EVERY 30 DAYS.

         REPRESENTATIONS AND WARRANTIES CONCERNING ACCOUNTS. With respect to the
         Accounts, Borrower represents and warrants to Lender: (a) Each Account
         represented by Borrower to be an Eligible Account for purposes of this
         Agreement conforms to the requirements of the definition of an Eligible
         Account; (b) All Account information listed on schedules delivered to
         Lender will be true and correct, subject to immaterial variance; and
         (c) Lender, its assigns, or agents shall have the right at any time and
         at Borrowers expense to inspect, examine, and audit Borrowers records
         and to confirm with Account Debtors the accuracy of such Accounts.

         NOTIFICATION BASIS. In the event of default Borrower agrees and
         understands that this Loan shall be on a notification basis pursuant to
         which Lender shall directly collect and receive all proceeds and
         payments from the Accounts in which Lender has a security interest. In
         order to facilitate the foregoing, Borrower agrees to deliver to
         Lender, upon demand, any and all of Borrower's records, ledger sheets,
         payment cards, and other documentation, in the form requested by
         Lender, with regard to the Accounts. Borrower further agrees that
         Lender shall have the right to notify each Account Debtor, pay such
         proceeds and payments directly to Lender and to do any and all other
         things as Lender may deem to be necessary and appropriate, within its
         sole discretion, to carry out the terms and intent of this Agreement.
         Lender shall have the further right, where appropriate and within
         Lenders sole discretion, to file suit, either in its own name or in the
         name of Borrower, to collect any and all such Accounts. Borrower
         further agrees that Lender may take such other actions, either in
         Borrowers name or Lender's name, as Lender may deem appropriate within
         its sole judgment, with regard to collection and payment of the
         Accounts, without affecting the liability of Borrower under this
         Agreement or on the Indebtedness.

         REMITTANCE ACCOUNT. Borrower agrees that Lender may at any time require
         Borrower to institute procedures whereby the payments and other
         proceeds of the Accounts shall be paid by the Account Debtors under a
         remittance account or lock box arrangement with Lender, or Lenders
         agent, or with one or more financial institutions designated by Lender.
         Borrower further agrees that, if no Event of Default exists under this
         Agreement, any and all of such funds received under such a remittance
         account or lock box arrangement shall, at Lenders sole election and
         discretion, either be (a) paid or turned over to Borrower; (b)
         deposited into one or more accounts for the benefit of Borrower (which
         deposit accounts shall be subject to a security assignment in favor of
         Lender); (c) deposited into one or more accounts for the joint benefit
         of Borrower and Lender (which deposit accounts shall likewise be
         subject to a security assignment in favor of Lender); (d) paid or
         turned over to Lender to be applied to the Indebtedness in such order
         and priority as Lender may determine within its sole discretion; or (e)
         any combination of the foregoing as Lender shall determine from time to
         time. Borrower further agrees that, should one or more Events of
         Default exist, any and all funds received under such a remittance
         account or lock box arrangement shall be paid or turned over to Lender
         to be applied to the Indebtedness, again in such order and priority as
         Lender may determine within its sole discretion.

ADDITIONAL CREDIT FACILITIES. In addition to the Line of Credit facility, the
following credit accommodations are either in place or will be made available to
Borrower:



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         LETTER OF CREDIT FACILITY. Subject to the terms of this Agreement,
         Lender will issue standby letters of credit letters of credit (each a
         "Letter of Credit") on behalf of Borrower. At no time, however, shall
         the total face amount of all Letters of Credit outstanding, less any
         partial draws paid under the Letters of Credit exceed the sum of
         $5,000,000.00.

         (a) Upon Lenders request, Borrower promptly shall pay to Lender
         issuance fees and such other fees, commissions, costs, and any
         out-of-pocket expenses charged or incurred by Lender with respect to
         any Letter of Credit.

         (b) The commitment by Lender to issue Letters of Credit shall, unless
         earlier terminated in accordance with the terms of this Agreement,
         automatically terminate on the Expiration Date and no Letter of Credit
         shall expire on a date which is after the Expiration Date.

         (c) Each Letter of Credit shall be in form and substance satisfactory
         to Lender and in favor of beneficiaries satisfactory to Lender,
         provided that Lender may refuse to issue a Letter of Credit due to the
         nature of the transaction or its terms or in connection with any
         transaction where Lender, due to the beneficiary or the nationality or
         residence of the beneficiary, would be prohibited by any applicable
         law, regulation, or order from issuing such Letter of Credit. Under no
         circumstances, however, will a Letter of Credit exceed THREE HUNDRED
         SIXTY FIVE (365) DAYS from the issue date.

         (d) Prior to the issuance of each Letter of Credit, and in all events
         prior to any daily cutoff time Lender may have established for purposes
         thereof, Borrower shall deliver to Lender a duly executed form of
         Lenders standard form of application for issuance of letter of credit
         with proper insertions.

         LENDER'S RIGHTS UPON DEFAULT. Upon the occurrence of any Event of
         Default, Lender may, at its sole and absolute discretion and in
         addition to any other remedies available to it under this Agreement or
         otherwise, require Borrower to pay immediately to Lender, for
         application against drawings under any outstanding Letters of Credit,
         the outstanding principal amount of any such Letters of Credit which
         have not expired. Any portion of the amount so paid to Lender which is
         not applied to satisfy draws under any such Letters of Credit or any
         other obligations of Borrower to the Lender shall be repaid to Borrower
         without interest.

         LENDER'S COSTS AND EXPENSES. Borrower shall, upon Lenders request,
         promptly pay to and reimburse Lender for all costs incurred and
         payments made by Lender by reason of any future assessment, reserve,
         deposit, or similar requirement or any surcharge, tax, or fee imposed
         upon Lender or as a result of Lenders compliance with any directive or
         requirement of any regulatory authority pertaining or relating to any
         Letter of Credit.

MULTIPLE BORROWERS. This Agreement has been executed by multiple obligors who
are referred to herein individually, collectively and interchangeably as
"Borrower." Unless specifically stated to the contrary, the word "Borrower" as
used in this Agreement, including without limitation all representations,
warranties and covenants, shall include all Borrowers. Borrower understands and
agrees that, with or without notice to Borrower, Lender may with respect to any
other Borrower (a) make one or more additional secured or unsecured loans or
otherwise extend additional credit; (b) alter, compromise, renew, extend,
accelerate, or otherwise change one or more times the time for payment or other
terms any indebtedness, including increases and decreases of the rate of
interest on the indebtedness; (c) exchange, enforce, waive, subordinate, fail or
decide not to perfect, and release any security with or without the substitution
of new collateral; (d) release, substitute, agree not to sue, or deal with any
one or more of Borrower's sureties, endorsers, or other guarantors on any terms
or in any manner Lender may choose; (e) determine how, when and what application
of payments and credits shall be made on any indebtedness; (f) apply such
security and direct the order or manner of sale thereof, including without



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<PAGE>   9
limitation, any nonjudicial sale permitted by the terms of the controlling
security agreement or deed of trust, as Lender in its discretion may determine;
(g) sell, transfer, assign, or grant participations in all or any part of the
indebtedness; (h) exercise or refrain from exercising any rights against
Borrower or others, or otherwise act or refrain from acting; (i) settle or
compromise any indebtedness; and (j) subordinate the payment of all or any part
of any indebtedness of Borrower to Lender to the payment of any liabilities
which may be due Lender or others.

REPRESENTATIONS AND WARRANTIES. Borrower represents and warrants to Lender, as
of the date of this Agreement, as of the date of each disbursement of Loan
proceeds, as of the date of any renewal, extension or modification of any Loan,
and at all times any Indebtedness exists:

         ORGANIZATION. Borrower is a corporation which is duly organized,
         validly existing, and in good standing under the laws of the state of
         Borrower's incorporation and is validly existing and in good standing
         in all states in which Borrower is doing business. Borrower has the
         full power and authority to own its properties and to transact the
         businesses in which it is presently engaged or presently proposes to
         engage. Borrower also is duly qualified as a foreign corporation and is
         in good standing in all states in which the failure to so qualify would
         have a material adverse effect on its businesses or financial
         condition.

         AUTHORIZATION. The execution, delivery, and performance of this
         Agreement and all Related Documents by Borrower, to the extent to be
         executed, delivered or performed by Borrower, have been duly authorized
         by all necessary action by Borrower; do not require the consent or
         approval of any other person, regulatory authority or governmental
         body; and do not conflict with, result in a violation of, or constitute
         a default under (a) any provision of its articles of incorporation or
         organization, or bylaws, or any agreement or other instrument binding
         upon Borrower or (b) any law, governmental regulation, court decree, or
         order applicable to Borrower.

         FINANCIAL INFORMATION. Each financial statement of Borrower supplied to
         Lender truly and completely disclosed Borrower's financial condition as
         of the date of the statement, and there has been no material adverse
         change in Borrower's financial condition subsequent to the date of the
         most recent financial statement supplied to Lender. Borrower has no
         material contingent obligations except as disclosed in such financial
         statements.

         LEGAL EFFECT. This Agreement constitutes, and any instrument or
         agreement required hereunder to be given by Borrower when delivered
         will constitute, legal, valid and binding obligations of Borrower
         enforceable against Borrower in accordance with their respective terms.

         PROPERTIES. Except for Permitted Liens, Borrower owns and has good
         title to all of Borrowers properties free and clear of all Security
         Interests, and has not executed any security documents or financing
         statements relating to such properties. All of Borrower's properties
         are titled in Borrower's legal name, and Borrower has not used, or
         filed a financing statement under, any other name for at least the last
         five (5) years.

         HAZARDOUS SUBSTANCES. The terms "hazardous waste," "hazardous
         substance," "disposal," "release," and "threatened release," as used in
         this Agreement, shall have the same meanings as set forth in the
         "CERCLA," "SARA," the Hazardous Materials Transportation Act, 49 U.S.C.
         Section 1801, et seq., the Resource Conservation and Recovery Act, 42
         U.S.C. Section 6901, et seq., or other applicable state or Federal
         laws, rules, or regulations adopted pursuant to any of the foregoing.
         Except as disclosed to and acknowledged by Lender in writing, Borrower
         represents and warrants that: (a) During the period of Borrower's
         ownership of the properties, there has been no use, generation,
         manufacture, storage, treatment, disposal, release or threatened
         release of any hazardous waste or substance by any person on, under,
         about or from any of the properties. (b) Borrower has no knowledge of,
         or reason to believe that there has been (i) any use, generation,
         manufacture, storage, treatment, disposal,




                                        9

<PAGE>   10
         release, or threatened release of any hazardous waste or substance on,
         under, about or from the properties by any prior owners or occupants of
         any of the properties, or (ii) any actual or threatened litigation or
         claims of any kind by any person relating to such matters, (c) Neither
         Borrower nor any tenant, contractor, agent or other authorized user of
         any of the properties shall use, generate, manufacture, store, treat,
         dispose of, or release any hazardous waste or substance on, under,
         about or from any of the properties; and any such activity shall be
         conducted in compliance with all applicable federal, state, and local
         laws, regulations, and ordinances, including without limitation those
         laws, regulations and ordinances described above. Borrower authorizes
         Lender and its agents to enter upon the properties to make such
         inspections and tests as Lender may deem appropriate to determine
         compliance of the properties with this section of the Agreement. Any
         inspections or tests made by Lender shall be at Borrower's expense and
         for Lender's purposes only and shall not be construed to create any
         responsibility or liability on the part of Lender to Borrower or to any
         other person. The representations and warranties contained herein are
         based on Borrowers due diligence in investigating the properties for
         hazardous waste and hazardous substances. Borrower hereby (a) releases
         and waives any future claims against Lender for indemnity or
         contribution in the event Borrower becomes liable for cleanup or other
         costs under any such laws, and (b) agrees to indemnify and hold
         harmless Lender against any and ALL claims, LOSSES, liabilities,
         damages, penalties, and expenses which Lender may directly or
         indirectly sustain or suffer resulting from a breach of this section of
         the Agreement or as a consequence of any use, generation, manufacture,
         storage, disposal, release or threatened release of a hazardous waste
         or substance on the properties. The provisions of this section of the
         Agreement, including the obligation to indemnify, shall survive the
         payment of the Indebtedness and the termination or expiration of this
         Agreement and shall not be affected by Lender's acquisition of any
         interest in any of the properties, whether by foreclosure or otherwise.

         LITIGATION AND CLAIMS. No litigation, claim, investigation,
         administrative proceeding or similar action (including those for unpaid
         taxes) against Borrower is pending or threatened, and no other event
         has occurred which may materially adversely affect Borrower's financial
         condition or properties, other than litigation, claims, or other
         events, if any, that have been disclosed to and acknowledged by Lender
         in writing.

         TAXES. To the best of Borrower's knowledge, all tax returns and reports
         of Borrower that are or were required to be filed, have been filed, and
         all taxes, assessments and other governmental charges have been paid in
         full, except those presently being or to be contested by Borrower in
         good faith in the ordinary course of business and for which adequate
         reserves have been provided.

         LIEN PRIORITY. Unless otherwise previously disclosed to Lender in
         writing, Borrower has not entered into or granted any Security
         Agreements, or permitted the filing or attachment of any Security
         Interests on or affecting any of the Collateral directly or indirectly
         securing repayment of Borrower's Loan and Note, that would be prior or
         that may in any way be superior to Lender's Security Interests and
         rights in and to such Collateral.

         BINDING EFFECT. This Agreement, the Note, all Security Agreements
         directly or indirectly securing repayment of Borrower's Loan and Note
         and all of the Related Documents are binding upon Borrower as well as
         upon Borrower's successors, representatives and assigns, and are
         legally enforceable in accordance with their respective terms.

         COMMERCIAL PURPOSES. Borrower intends to use the Loan proceeds solely
         for business or commercial related purposes.

         EMPLOYEE BENEFIT PLANS. To the best of our knowledge each employee
         benefit plan as to which Borrower may have any liability complies in
         all material respects with all applicable requirements of law and
         regulations, and (i) no Reportable Event nor Prohibited Transaction (as
         defined in ERISA) has occurred with respect to any such plan,




                                       10

<PAGE>   11



         (ii) Borrower has not withdrawn from any such plan or initiated steps
         to do so, (iii) no steps have been taken to terminate any such plan,
         and (iv) there are no unfunded liabilities other than those previously
         disclosed to Lender in writing.

         LOCATION OF BORROWER'S OFFICES AND RECORDS. Borrower's place of
         business, or Borrower's Chief executive office, if Borrower has more
         than one place of business, is located at 845 WEST CENTER STREET, NORTH
         SALT LAKE CITY, UT 84054. Unless Borrower has designated otherwise in
         writing this location is also the office or offices where Borrower
         keeps its records concerning the Collateral.

         INFORMATION. All information heretofore or contemporaneously herewith
         furnished by Borrower to Lender for the purposes of or in connection
         with this Agreement or any transaction contemplated hereby is, and all
         information hereafter furnished by or on behalf of Borrower to Lender
         will be, true and accurate in every material respect on the date as of
         which such information is dated or certified; and none of such
         information is or will be incomplete by omitting to state any material
         fact necessary to make such information not misleading.

         SURVIVAL OF REPRESENTATIONS AND WARRANTIES. Borrower understands and
         agrees that Lender, without independent investigation, is relying upon
         the above representations and warranties in extending Loan Advances to
         Borrower. Borrower further agrees that the foregoing representations
         and warranties shall be continuing in nature and shall remain in full
         force and effect until such time as Borrower's Indebtedness shall be
         paid in full, or until this Agreement shall be terminated in the manner
         provided above, whichever is the last to occur.

AFFIRMATIVE COVENANTS. Borrower covenants and agrees with Lender that, while
this Agreement is in effect, Borrower will:

         LITIGATION. Promptly inform Lender in writing of (a) all material
         adverse changes in Borrower's financial condition, and (b) all existing
         and all threatened litigation, claims, investigations, administrative
         proceedings or similar actions affecting Borrower or any Guarantor
         which could materially affect the financial condition of Borrower or
         the financial condition of any Guarantor.

         FINANCIAL RECORDS. Maintain its books and records in accordance with
         generally accepted accounting principles, applied on a consistent
         basis, and permit Lender to examine and audit Borrower's books and
         records at all reasonable times.

         FINANCIAL STATEMENTS. Furnish Lender with, as soon as available, but in
         no event later than one hundred five (105) days after the end of each
         fiscal year, Borrower's balance sheet and income statement for the year
         ended, audited by a certified public accountant satisfactory to Lender,
         and, as soon as available, but in no event later than fifty (50) days
         after the end of each fiscal quarter, Borrower's balance sheet and
         profit and loss statement for the period ended, prepared and certified
         as correct to the best knowledge and belief by Borrower's chief
         financial officer or other officer or person acceptable to Lender. All
         financial reports required to be provided under this Agreement shall be
         prepared in accordance with generally accepted accounting principles,
         applied on a consistent basis, and certified by Borrower as being true
         and correct.

         ADDITIONAL INFORMATION. Furnish such additional information and
         statements, lists of assets and liabilities, agings of receivables and
         payables, inventory schedules, budgets, forecasts, tax returns, and
         other reports with respect to Borrower's financial condition and
         business operations as Lender may request from time to time.

         FINANCIAL COVENANTS AND RATIOS. Comply with the following covenants and
         ratios:



                                       11

<PAGE>   12
         NET WORTH RATIO. Maintain a ratio of Total Liabilities to Tangible Net
         Worth of less than 1.50 TO 1.00. The financial covenants and ratios set
         forth in this paragraph shall be determined and calculated for all
         Borrowers on a consolidated basis and reference in this paragraph to
         "Borrower" shall mean all "Borrowers." Except as provided above, all
         computations made to determine compliance with the requirements
         contained in this paragraph shall be made in accordance with generally
         accepted accounting principles, applied on a consistent basis, and
         certified by Borrower as being true and correct.

         INSURANCE. Maintain fire and other risk insurance, public liability
         insurance, and such other insurance as Lender may require with respect
         to Borrower's properties and operations, in form, amounts, coverages
         and with insurance companies reasonably acceptable to Lender. Borrower,
         upon request of Lender, will deliver to Lender from time to time the
         policies or certificates of insurance in form satisfactory to Lender,
         including stipulations that coverages will not be canceled or
         diminished without at least ten (10) days' prior written notice to
         Lender. Each insurance policy also shall include an endorsement
         providing that coverage in favor of Lender will not be impaired in any
         way by any act, omission or default of Borrower or any other person. In
         connection with all policies covering assets in which Lender holds or
         is offered a security interest for the Loans, Borrower will provide
         Lender with such loss payable or other endorsements as Lender may
         require.

         INSURANCE REPORTS. Furnish to Lender, upon request of Lender, reports
         on each existing insurance policy showing such information as Lender
         may reasonably request, including without limitation the following: (a)
         the name of the insurer; (b) the risks insured; (c) the amount of the
         policy; (d) the properties insured; (e) the then current property
         values on the basis of which insurance has been obtained, and the
         manner of determining those values; and (f) the expiration date of the
         policy. In addition, upon request of Lender (however not more often
         than annually), Borrower will have an independent appraiser
         satisfactory to Lender determine, as applicable, the actual cash value
         or replacement cost of any Collateral. The cost of such appraisal shall
         be paid by Borrower.

         OTHER AGREEMENTS. Comply with all terms and conditions of all other
         agreements, whether now or hereafter existing, between Borrower and any
         other party and notify Lender immediately in writing of any default in
         connection with any other such agreements.

         LOAN PROCEEDS. Use all Loan proceeds solely for Borrower's business
         operations, unless specifically consented to the contrary by Lender in
         writing.

         TAXES, CHARGES AND LIENS. Pay and discharge when due all of its
         indebtedness and obligations, including without limitation all
         assessment, taxes, governmental charges, levies and liens, of every
         kind and nature, imposed upon Borrower or its properties, income, or
         profits, prior to the date on which penalties would attach, and all
         lawful claims that, if unpaid, might become a lien or charge upon any
         of Borrower's properties, income, or profits. Provided however,
         Borrower will not be required to pay and discharge any such assessment,
         tax, charge, levy, lien or claim so long as (a) the legality of the
         same shall be contested in good faith by appropriate proceedings, and
         (b) Borrower shall have established on its books adequate reserves with
         respect to such contested assessment, tax, charge, levy, lien, or claim
         in accordance with generally accepted accounting practices. Borrower,
         upon demand of Lender, will furnish to Lender evidence of payment of
         the assessments, taxes, charges, levies, liens and claims and will
         authorize the appropriate governmental official to deliver to Lender at
         any time a written statement of any assessments, taxes, charges,
         levies, liens and claims against Borrower's properties, income, or
         profits.

         PERFORMANCE. Perform and comply with all terms, conditions, and
         provisions set forth in this Agreement and in the Related Documents in
         a timely manner, and promptly notify Lender if Borrower learns of the
         occurrence of any event which constitutes an Event of Default under
         this Agreement or under any of the Related Documents.




                                       12

<PAGE>   13
         OPERATIONS. Maintain executive and management personnel with
         substantially the same qualifications and experience as the present
         executive and management personnel; provide written notice to Lender of
         any change in executive and management personnel; conduct its business
         affairs in a reasonable and prudent manner and in compliance with all
         applicable federal, state and municipal laws, ordinances, rules and
         regulations respecting its properties, charters, businesses and
         operations, including without limitation, compliance with the Americans
         With Disabilities Act and with all minimum funding standards and other
         requirements of ERISA and other laws applicable to Borrower's employee
         benefit plans,

         INSPECTION. Permit employees or agents of Lender at any reasonable time
         to inspect any and all Collateral for the Loan or Loans and Borrower's
         other properties and to examine or audit Borrower's books, accounts,
         and records and to make copies and memoranda of Borrower's books,
         accounts, and records. If Borrower now or at any time hereafter
         maintains any records (including without limitation computer generated
         records and computer software programs for the generation of such
         records) in the possession of a third party, Borrower, upon request of
         Lender, still notify such party to permit Lender free access to such
         records at all reasonable times and to provide Lender with copies of
         any records it may request, all at Borrower's expense.

         COMPLIANCE CERTIFICATE. Unless waived in writing by Lender, provide
         Lender QUARTERLY WITHIN 45 DAYS OF QUARTER END and at the time of each
         disbursement of Loan proceeds with a certificate executed by Borrower's
         chief financial officer, or other officer or person acceptable to
         Lender, certifying that the representations and warranties set forth in
         this Agreement are true and correct as of the date of the certificate
         and further certifying that, as of the date of the certificate, no
         Event of Default exists under this Agreement.

         ENVIRONMENTAL COMPLIANCE AND REPORTS. Borrower shall comply in all
         respects with all environmental protection federal, state and local
         laws, statutes, regulations and ordinances; not cause or permit to
         exist, as a result of an intentional or unintentional action or
         omission on its part or on the part of any third party, on property
         owned and/or occupied by Borrower, any environmental activity where
         damage may result to the environment, unless such environmental
         activity is pursuant to and in compliance with the conditions of a
         permit issued by the appropriate federal, state or local governmental
         authorities; shall furnish to Lender promptly and in any event within
         thirty (30) days after receipt thereof a copy of any notice, summons
         lien, citation, directive, letter or other communication from any
         governmental agency or instrumentality concerning any intentional or
         unintentional action or omission on Borrower's part in connection with
         any environmental activity whether or not there is damage to the
         environment and/or other natural resources.

         ADDITIONAL ASSURANCES. Make, execute and deliver to Lender such
         promissory notes, mortgages, deeds of trust, security agreements,
         financing statements, instruments, documents and other agreements as
         Lender or its attorneys may reasonably request to evidence and secure
         the Loans and to perfect all Security Interests.

RECOVERY OF ADDITIONAL COSTS. If the imposition of or any change in any law,
rule, regulation or guideline, or the interpretation or application of any
thereof by any court or administrative or governmental authority (including any
request or policy not having the force of law) shall impose, modify or make
applicable any taxes (except U.S. federal, state or local income or franchise
taxes imposed on Lender), reserve requirements, capital adequacy requirements or
other obligations which would (a) increase the cost to Lender for extending or
maintaining the credit facilities to which this Agreement relates, (b) reduce
the amounts payable to Lender under this Agreement or the Related Documents, or
(c) reduce the rate of return on Lender's capital as a consequence of Lenders
obligations with respect to the credit facilities to which this Agreement
relates, then Borrower agrees to pay Lender such additional amounts as will
compensate Lender therefor, within five (5) days after Lender's written demand
for such payment, which demand shall be accompanied by an explanation




                                       13

<PAGE>   14

of such imposition or charge and a calculation in reasonable detail of the
additional amounts payable by Borrower, which explanation and calculations shall
be conclusive in the absence of manifest error.

NEGATIVE COVENANTS. Borrower covenants and agrees with Lender that while this
Agreement is in effect, Borrower shall not, without the prior written consent of
Lender:

         INDEBTEDNESS AND LIENS. (a) Except for debt incurred in the normal
         course of business and indebtedness to Lender contemplated by this
         Agreement, create, incur or assume indebtedness for borrowed money,
         including capital leases, (b) except as allowed as a Permitted Lien,
         sell, transfer, mortgage, assign, pledge, lease, grant a security
         interest in, or encumber any of Borrower's assets, or (c) sell with
         recourse any of Borrower's accounts, except to Lender. Lender hereby
         acknowledges and agrees that, notwithstanding any other provisions of
         this agreement, Borrower may purchase any personal property with
         financing from sources other than Lender and that all such personal
         property will be subject to a first priority purchase money security
         interest Lender hereby consents to any indebtedness or liens created
         pursuant to such purchases.

         CONTINUITY OF OPERATIONS. (a) Engage in any business activities
         substantially different than those in which Borrower is presently
         engaged, (b) cease operations, liquidate, transfer, change its name,
         dissolve or transfer or sell Collateral out of the ordinary course of
         business, (c) pay any dividends which cause an event of default on
         Borrower's stock (other than dividends payable in its stock), provided,
         however that notwithstanding the foregoing but only so long as no Event
         of Default has occurred and is continuing or would result from the
         payment of dividends, if Borrower is a "Subchapter S Corporation" (as
         defined in the Internal Revenue Code of 1986, as amended), Borrower may
         pay cash dividends on its stock to its shareholders from time to time
         in amounts necessary to enable the shareholders to pay income taxes and
         make estimated income tax payments to satisfy their liabilities under
         federal and state law which arise solely from their status as
         Shareholders of a Subchapter S Corporation because of their ownership
         of shares of stock of Borrower.

         LOANS, ACQUISITIONS AND GUARANTIES. (a) Loan, or advance money or
         assets, except in the normal course of business, (b) incur any
         obligation as surety or guarantor for any company not owned by Motor
         Cargo Industries without written consent of Lender.

CESSATION OF ADVANCES. If Lender has made any commitment to make any Loan to
Borrower, whether under this Agreement or under any other agreement, Lender
shall have no obligation to make Loan Advances or to disburse Loan proceeds if:
(a) Borrower or any Guarantor is in default under the terms of this Agreement or
any of the Related Documents or any other agreement that Borrower or any
Guarantor has with Lender; (b) Borrower or any Guarantor becomes insolvent,
files a petition in bankruptcy or similar proceedings, or is adjudged a
bankrupt; (c) there occurs a material adverse change in Borrower's financial
condition, in the financial condition of any Guarantor, or in the value of any
Collateral securing any Loan; (d) any Guarantor seeks, claims or otherwise
attempts to limit, modify or revoke such Guarantor's guaranty of the Loan or any
other loan with lender; or (e) Lender in good faith deems itself insecure, even
though no Event of Default shall have occurred.

ACCOUNTS RECEIVABLE AGING. BORROWER SHALL FURNISH TO LENDER A MONTHLY ACCOUNTS
RECEIVABLE AGING REPORT WITHIN 30 DAYS OF THE END OF EACH MONTH IN A FORM
ACCEPTABLE TO LENDER.

ACCOUNTS PAYABLE AGING. BORROWER SHALL FURNISH TO LENDER A QUARTERLY ACCOUNTS
PAYABLE AGING REPORT WITHIN FORTY-FIVE (45) DAYS OF THE END OF EACH QUARTER IN A
FORM ACCEPTABLE TO LENDER WHEN BORROWER REQUESTS IN WRITING 70% ADVANCE ON
ACCOUNTS



                                       14

<PAGE>   15


RECEIVABLE.

CUSTOMER LIST. BORROWER SHALL FURNISH TO LENDER ON A SEMI-ANNUAL BASIS A LIST OF
BORROWER'S ACCOUNTS RECEIVABLE CUSTOMERS AND THEIR ADDRESSES IN A FORM
ACCEPTABLE TO LENDER WITHIN 30 DAYS OF THE END OF EACH HALF-YEAR PERIOD WHEN
BORROWER REQUESTS IN WRITING 70% ADVANCE ON ACCOUNTS RECEIVABLE.

BORROWING BASE CERTIFICATE. BORROWER SHALL FURNISH TO LENDER A MONTHLY BORROWING
BASE CERTIFICATE CERTIFIED BY AN AUTHORIZED OFFICER/EMPLOYEE OF BORROWER, WITHIN
30 DAYS OF THE END OF EACH MONTH IN A FORM ACCEPTABLE TO LENDER UNLESS LENDER
SPECIFICALLY REQUESTS OTHERWISE IN WRITING TO BORROWER. THIS SHALL TAKE EFFECT
WHEN BORROWER REQUESTS IN WRITING 70% ADVANCE ON ACCOUNTS RECEIVABLE.

WAIVER OF CLAIMS. Borrower (i) represents Borrower has no defenses to or setoffs
against any indebtedness or other obligations owing to Lender or its affiliates
(the "Obligations"), nor claims against Lender or its affiliates for any matter
whatsoever, related or unrelated to the Obligations, and (ii) releases Lender
and its affiliates from all claims, causes of action, and costs, in law or
equity, existing as of the date of this Agreement, which Borrower has or may
have by reason of any matter of any conceivable kind or character whatsoever,
related or unrelated to the Obligations, including the subject matter of this
Agreement. This provision shall not apply to claims for performance of express
contractual obligations owing to Borrower by Lender or its affiliates.

EARNINGS. BORROWER SHALL MAINTAIN A RATIO OF CONSOLIDATED COMPANY FIXED DEBT
COVERAGE EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION TO
CURRENT MATURITY OF LONG TERM DEBT PLUS INTEREST OF NOT LESS THAN 2.0 TO 1.0.
THIS CALCULATION SHALL BE MADE QUARTERLY BASED UPON THE CURRENT QUARTER AND THE
IMMEDIATELY PRECEDING THREE QUARTERS.

ACQUISITIONS. ACQUISITIONS CANNOT CAUSE THE CONSOLIDATED FIXED DEBT COVERAGE
INCLUDING THE ACQUIRED ENTITY FOR THE PRIOR FOUR QUARTERS TO BE LESS THAN 2.0 TO
1.0.

ADDITIONAL FINANCIAL STATEMENTS. MOTOR CARGO INDUSTRIES WILL PROVIDE LENDER
COPIES OF ITS 10K AND IOQ ANNUAL FINANCIAL STATEMENTS WITHIN THE LEGAL ALLOTTED
TIME.

LETTERS OF CREDIT. THE AMOUNT AVAILABLE UNDER THE REVOLVING LINE OF CREDIT SHALL
BE AUTOMATICALLY REDUCED BY THE AMOUNT OF ANY LETTERS OF CREDIT ISSUED BY LENDER
FOR OR ON ACCOUNT OF BORROWER. ANY DRAWS PAID BY LENDER IN ACCORDANCE WITH ANY
SUCH LETTERS OF CREDIT SHALL BE REPAID BY BORROWER TO LENDER BY ADVANCES UNDER
THE LINE OF CREDIT.

YEAR 2000 COMPLIANCE COVENANT. An exhibit, titled "YEAR 2000 COMPLIANCE
COVENANT," is attached to this Agreement and by this reference is made a part of
this Agreement just as if all the provisions, terms and conditions of the
Exhibit had been fully set forth in this Agreement.

RIGHT OF SETOFF. Borrower grants to Lender a contractual security interest in,
and hereby assigns, conveys, delivers, pledges, and transfers to Lender all
Borrower's right, title and interest in and to, Borrower's accounts with Lender
(whether checking, savings, or some other account), including without limitation
all accounts held jointly with someone else and all accounts Borrower may open
in the future, excluding however all IRA and Keogh accounts, and all trust
accounts for which




                                       15

<PAGE>   16

the grant of a security interest would be prohibited by law. Borrower authorizes
Lender, to the extent permitted by applicable law, to charge or setoff all sums
owing on the Indebtedness against any and all such accounts.

EVENTS OF DEFAULT. Each of the following shall constitute an Event of Default
under this Agreement:

         DEFAULT ON INDEBTEDNESS. Failure of Borrower to make any payment when
         due on the Loans.

         OTHER DEFAULTS. Failure of Borrower or any Grantor to comply with or to
         perform when due any other term, obligation, covenant or condition
         contained in this Agreement or in any of the Related Documents, or
         failure of Borrower to comply with or to perform any other term,
         obligation, covenant or condition contained in any other agreement
         between Lender and Borrower.

         DEFAULT IN FAVOR OF THIRD PARTIES. Should Borrower or any Grantor
         default under any loan, extension of credit, security agreement,
         purchase or sales agreement, or any other agreement, in favor of any
         other creditor or person that may materially affect any of Borrower's
         property or Borrower's or any Grantor's ability to repay the Loans or
         perform their respective obligations under this Agreement or any of the
         Related Documents.

         FALSE STATEMENTS. Any warranty, representation or statement made or
         furnished to Lender by or on behalf of Borrower or any Grantor under
         this Agreement or the Related Documents is false or misleading in any
         material respect at the time made or furnished, or becomes false or
         misleading at any time thereafter.

         DEFECTIVE COLLATERALIZATION. This Agreement or any of the Related
         Documents ceases to be in full force and effect (including failure of
         any Security Agreement to create a valid and perfected Security
         Interest) at any time and for any reason.

         INSOLVENCY. The dissolution or termination of Borrower's existence as a
         going business, the insolvency of Borrower, the appointment of a
         receiver for any part of Borrower's property, any assignment for the
         benefit of creditors, any type of creditor workout, or the commencement
         of any proceeding under any bankruptcy or insolvency laws by or against
         Borrower.

         CREDITOR OR FORFEITURE PROCEEDINGS. Commencement of foreclosure or
         forfeiture proceedings, whether by judicial proceeding, self-help,
         repossession or any other method, by any creditor of Borrower, any
         creditor of any Grantor against any collateral securing the
         Indebtedness, or by any governmental agency. This includes a
         garnishment, attachment, or levy on or of any of Borrower's deposit
         accounts with Lender. However, this Event of Default shall not apply if
         there is a good faith dispute by Borrower or Grantor, as the case may
         be, as to the validity or reasonableness of the claim which is the
         basis of the creditor or forfeiture proceeding, and if Borrower or
         Grantor gives Lender written notice of the creditor or forfeiture
         proceeding and furnishes reserves or a surety bond for the creditor or
         forfeiture proceeding satisfactory to Lender.

         EVENTS AFFECTING GUARANTOR. Any of the preceding events occurs with
         respect to any Guarantor of any of the Indebtedness or any Guarantor
         dies or becomes incompetent, or revokes or disputes the validity of, or
         liability under, any Guaranty of the Indebtedness. Lender, at its
         option, may, but shall not be required to, permit the Guarantors estate
         to assume unconditionally the obligations arising under the guaranty in
         a manner satisfactory to Lender, and, in doing so, cure the Event of
         Default.

         EVENTS AFFECTING CO-BORROWERS. Any of the preceding events occurs with
         respect to any co-borrower of any of the Indebtedness or any
         co-borrower dies or becomes incompetent, or revokes or disputes the
         validity of, or



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<PAGE>   17


         liability under, any of the Indebtedness. Lender, at its option, may,
         but shall not be required to, permit the co-borrower's estate to assume
         unconditionally the obligations on the Indebtedness in a manner
         satisfactory to Lender, and, in doing so, cure the Event of Default.

         ADVERSE CHANGE. A material adverse change occurs in Borrower's
         financial condition, or Lender believes the prospect of payment or
         performance of the Indebtedness is impaired.

         INSECURITY. Lender, in good faith, deems itself insecure.

         RIGHT TO CURE. If any default is curable and if Borrower or Grantor, as
         the case may be, has not been given a notice of a similar default
         within the preceding twelve (12) months, it may be cured (and no Event
         of Default will have occurred) if Borrower or Grantor, as the case may
         be, after receiving written notice from Lender demanding cure of such
         default: (a) cures the default within fifteen(15)days; or (b) if the
         cure requires more than fifteen (15) days, immediately initiates steps
         which Lender deems in Lender's sole discretion to be sufficient to cure
         the default and thereafter continues and completes all reasonable and
         necessary steps sufficient to produce compliance as soon as reasonably
         practical.

EFFECT OF AN EVENT OF DEFAULT. If any Event of Default shall occur, except where
otherwise provided in this Agreement or the Related Documents, all commitments
and obligations of Lender under this Agreement or the Related Documents or any
other agreement immediately will terminate (including any obligation to make
Loan Advances or disbursements), and, at Lender's option, all Indebtedness
immediately will become due and payable, all without notice of any kind to
Borrower, except that in the case of an Event of Default of the type described
in the "Insolvency" subsection above, such acceleration shall be automatic and
not optional. In addition, Lender shall have all the rights and remedies
provided in the Related Documents or available at law, in equity, or otherwise.
Except as may be prohibited by applicable law, all of Lender's rights and
remedies shall be cumulative and may be exercised singularly or concurrently.
Election by Lender to pursue any remedy shall not exclude pursuit of any other
remedy, and an election to make expenditures or to take action to perform an
obligation of Borrower or of any Grantor shall not affect Lender's right to
declare a default and to exercise its rights and remedies.

MISCELLANEOUS PROVISIONS. The following miscellaneous provisions are a part of
this Agreement:

         AMENDMENTS. This Agreement, together with any Related Documents,
         constitutes the entire understanding and agreement of the parties as to
         the matters set forth in this Agreement. No alteration of or amendment
         to this Agreement shall be effective unless given in writing and signed
         by the party or parties sought to be charged or bound by the alteration
         or amendment.

         APPLICABLE LAW. This Agreement has been delivered to Lender and
         accepted by Lender in the State of Utah. lf there is a lawsuit,
         Borrower agrees upon Lender's request to submit to the jurisdiction of
         the courts of SALT LAKE County, the State of Utah. Subject to the
         provisions on arbitration, this Agreement shall be governed by and
         construed in accordance with the laws of the State of Utah.

         ARBITRATION DISCLOSURES:

                  1.       ARBITRATION IS FINAL AND BINDING ON THE PARTIES AND
                           SUBJECT TO ONLY VERY LIMITED REVIEW BY A COURT




                                       17

<PAGE>   18


                  2.       IN ARBITRATION THE PARTIES ARE WAIVING THEIR RIGHT TO
                           LITIGATE IN COURT, INCLUDING THEIR RIGHT TO A JURY
                           TRIAL.

                  3.       DISCOVERY IN ARBITRATION IS MORE LIMITED THAN
                           DISCOVERY IN COURT.

                  4.       ARBITRATORS ARE NOT REQUIRED TO INCLUDE FACTUAL
                           FINDINGS OR LEGAL REASONING IN THEIR AWARDS. THE
                           RIGHT TO APPEAL OR TO SEEK MODIFICATION OF
                           ARBITRATORS' RULINGS IS VERY LIMITED.

                  5.       A PANEL OF ARBITRATORS MIGHT INCLUDE AN ARBITRATOR
                           WHO IS OR WAS AFFILIATED WITH THE BANKING INDUSTRY.

                  6.       IF YOU HAVE QUESTIONS ABOUT ARBITRATION, CONSULT YOUR
                           ATTORNEY OR THE AMERICAN ARBITRATION ASSOCIATION.

(a) Any claim or controversy ("Dispute") between or among the parties and their
assigns, including but not limited to Disputes arising out of or relating to
this agreement, this arbitration provision ("arbitration clause"), or any
related agreements or instruments relating hereto or delivered in connection
herewith ("Related Documents"), and including but not limited to a Dispute based
on or arising from an alleged tort, shall at the request of any party be
resolved by binding arbitration in accordance with the applicable arbitration
rules of the American Arbitration Association (the "Administrator"). The
provisions of this arbitration clause shall survive any termination, amendment,
or expiration of this agreement or Related Documents. The provisions of this
arbitration clause shall supersede any prior arbitration agreement between or
among the parties. If any provision of this arbitration clause should be
determined to be unenforceable, all other provisions of this arbitration clause
shall remain in full force and effect.

(b) The arbitration proceedings shall be conducted in Salt Lake City, Utah, at a
place to be determined by the Administrator. The Administrator and the
arbitrator(s) shall have the authority to the extent practicable to take any
action to require the arbitration proceeding to be completed and the
arbitrator(s)' award issued within one hundred fifty (150) days of the filing
of the Dispute with the Administrator. The arbitrator(s) shall have the
authority to impose sanctions on any party that fails to comply with time
periods imposed by the Administrator or the arbitrator(s), including the
sanction of summarily dismissing any Dispute or defense with prejudice. The
arbitrator(s) shall have the authority to resolve any Dispute regarding the
terms of this agreement, this arbitration clause or Related Documents, including
any claim or controversy regarding the arbitrability of any Dispute. All
limitations periods applicable to any Dispute or defense, whether by statute or
agreement, shall apply to any arbitration proceeding hereunder and the
arbitrator(s) shall have the authority to decide whether any Dispute or defense
is barred by a limitations period and, if so, to summarily enter an award
dismissing any Dispute or defense on that basis. The doctrines of compulsory
counterclaim, res judicata, and collateral estoppel shall apply to any
arbitration proceeding hereunder so that a party must state as a counterclaim in
the arbitration proceeding any claim or controversy which arises out of the
transaction or occurrence that is the subject matter of the Dispute. The
arbitrator(s) may in the arbitrator(s)' discretion and at the request of any
party: (1) consolidate in a single arbitration proceeding any other claim or
controversy involving another party that is substantially related to the Dispute
where that other party is bound by an arbitration clause with the Lender, such
as borrowers, guarantors, sureties, and owners of collateral; (2) consolidate in
a single arbitration proceeding any other claim or controversy that is
substantially similar to the Dispute; and (3) administer multiple arbitration
claims or controversies as class actions in accordance with the provisions of
Rule 23 of the Federal Rules of Civil Procedure.




                                       18

<PAGE>   19


(c) The arbitrator(s) shall be selected in accordance with the rules of the
Administrator from panels maintained by the Administrator. A single arbitrator
shall have expertise in the subject matter of the Dispute. Where three
arbitrators conduct an arbitration proceeding, the Dispute shall be decided by a
majority vote of the three arbitrators, at least one of whom must have expertise
in the subject matter of the Dispute and at least one of whom must be a
practicing attorney. The arbitrator(s) shall award to the prevailing party
recovery of all costs and fees (including attorneys' fees and costs, arbitration
administration fees and costs, and arbitrator(s)' fees). The arbitrator(s),
either during the pendency of the arbitration proceeding or as part of the
arbitration award, also may grant provisional or ancillary remedies, including
but not limited to an award of injunctive relief, foreclosure, sequestration,
attachment, replevin, garnishment, or the appointment of a receiver.

(d) Judgment upon an arbitration award may be entered in any court having
jurisdiction, subject to the following limitation: the arbitration award is
binding upon the parties only if the amount does not exceed Four Million Dollars
($4,000,000.00); if the award exceeds that limit, either party may demand the
right to a court trial. Such a demand must be filed with the Administrator
within thirty (30) days following the date of the arbitration award; if such a
demand is not made within that time period, the amount of the arbitration award
shall be binding. The computation of the total amount of an arbitration award
shall include amounts awarded for attorneys' fees and costs, arbitration
administration fees and costs and arbitrator(s)' fees.

(e) No provision of this arbitration clause, nor the exercise of any rights
hereunder, shall limit the right of any party to: (1) judicially or
non-judicially foreclose against any real or personal property collateral or
other security; (2) exercise self-help remedies, including but not limited to
repossession and setoff rights; or (3) obtain from a court having jurisdiction
thereover any provisional or ancillary remedies, including but not limited to
injunctive relief, foreclosure, sequestration, attachment, replevin,
garnishment, or the appointment of a receiver. Such rights can be exercised at
any time, before or during initiation of an arbitration proceeding, except to
the extent such action is contrary to the arbitration award. The exercise of
such rights shall not constitute a waiver of the right to submit any Dispute to
arbitration, and any claim or controversy related to the exercise of such rights
shall be a Dispute to be resolved under the provisions of this arbitration
clause. Any party may initiate arbitration with the Administrator; however, if
any party initiates litigation and another party disputes any allegation in that
litigation, the disputing party-upon the request of the initiating party--must
file a demand for arbitration with the Administrator and pay the Administrator's
filing fee. The parties may serve by mail a notice of an initial motion for an
order of arbitration.

(f) Notwithstanding the applicability of any other law to this agreement, the
arbitration clause, or Related Documents between or among the parties, the
Federal Arbitration Act, 9 U.S.C. Section 1 et seq., shall apply to the
construction and interpretation of this arbitration clause.

         CAPTION HEADINGS. Caption headings in this Agreement are for
convenience purposes only and are not to be used to interpret or define the
provisions of this Agreement.

         MULTIPLE PARTIES; CORPORATE AUTHORITY. All obligations of Borrower
under this Agreement shall be joint and several, and all references to Borrower
shall mean each and every Borrower. This means that each of the persons signing
below is responsible for all obligations in this Agreement.

         CONSENT TO LOAN PARTICIPATION. Borrower agrees and consents to Lender's
sale or transfer, whether now or later, of one or more participation interests
in the Loans to one or more purchasers, whether related or unrelated to Lender.
Lender may provide, without any limitation whatsoever, to any one or more
purchasers, or potential purchasers, any information or knowledge Lender may
have about Borrower or about any other matter relating to the Loan, and Borrower




                                       19

<PAGE>   20


hereby waives any rights to privacy it may have with respect to such matters.
Borrower additionally waives any and all notices of sale of participation
interests, as well as all notices of any repurchase of such participation
interests. Borrower also agrees that the purchasers of any such participation
interests will be considered as the absolute owners of such interests in the
Loans and will have all the rights granted under the participation agreement or
agreements governing the sale of such participation interests. Borrower further
waives all rights of offset or counterclaim that it may have now or later
against Lender or against any purchaser of such a participation interest and
unconditionally agrees that either Lender or such purchaser may enforce
Borrower's obligation under the Loans irrespective of the failure or insolvency
of any holder of any interest in the Loans. Borrower further agrees that the
purchaser of any such participation interests may enforce its interests
irrespective of any personal claims or defenses that Borrower may have against
Lender.

         COSTS AND EXPENSES. Borrower agrees to pay upon demand all of Lender's
expenses, including without limitation reasonable attorneys' fees, incurred in
connection with the preparation, execution, enforcement, modification and
collection of this Agreement or in connection with the Loans made pursuant to
this Agreement. Lender may pay someone else to help collect the Loans and to
enforce this Agreement, and Borrower will pay that amount. This includes,
subject to any limits under applicable law, Lender's reasonable attorneys' fees
and Lender's legal expenses, whether or not there is a lawsuit, including
reasonable attorneys' fees for bankruptcy proceedings (including efforts to
modify or vacate any automatic stay or injunction), appeals, and any anticipated
post-judgment collection services. Borrower also will pay any court costs, in
addition to all other sums provided by law.

         NOTICES. All notices required to be given under this Agreement shall be
given in writing, may be sent by telefacsimile (unless otherwise required by
law), and shall be effective when actually delivered or when deposited with a
nationally recognized overnight courier or deposited in the United States mail,
first class, postage prepaid, addressed to the party to whom the notice is to be
given at the address shown above. Any party may change its address for notices
under this Agreement by giving formal written notice to the other parties,
specifying that the purpose of the notice is to change the party's address. To
the extent permitted by applicable law, if there is more than one Borrower,
notice to any Borrower will constitute notice to all Borrowers. For notice
purposes, Borrower will keep Lender informed at all times of Borrower's current
addressees).

         SEVERABILITY. If a court of competent jurisdiction finds any provision
of this Agreement to be invalid or unenforceable as to any person or
circumstance, such finding shall not render that provision invalid or
unenforceable as to any other persons or circumstances. If feasible, any such
offending provision shall be deemed to be modified to be within the limits of
enforceability or validity; however, if the offending provision cannot be so
modified, it shall be stricken and all other provisions of this Agreement in all
other respects shall remain valid and enforceable.

         SUCCESSORS AND ASSIGNS. All covenants and agreements contained by or on
behalf of Borrower shall bind its successors and assigns and shall inure to the
benefit of Lender, its successors and assigns. Borrower shall not, however, have
the right to assign its rights under this Agreement or any interest therein,
without the prior written consent of Lender.

         SURVIVAL. All warranties, representations, and covenants made by
Borrower in this Agreement or in any certificate or other instrument delivered
by Borrower to Lender under this Agreement shall be considered to have been
relied upon by Lender and will survive the making of the Loan and delivery to
Lender of the Related Documents, regardless of any investigation made by Lender
or on Lenders behalf.

         TIME IS OF THE ESSENCE. Time is of the essence in the performance of
this Agreement.

         WAIVER. Lender shall not be deemed to have waived any rights under this
Agreement unless such waiver is given in writing and signed by Lender. No delay
or omission on the part of Lender in exercising any right shall operate as a




                                       20

<PAGE>   21

waiver of such right or any other right. A waiver by Lender of a provision of
this Agreement shall not prejudice or constitute a waiver of Lenders right
otherwise to demand strict compliance with that provision or any other provision
of this Agreement. No prior waiver by Lender, nor any course of dealing between
Lender and Borrower, or between Lender and any Grantor, shall constitute a
waiver of any of Lenders rights or of any obligations of Borrower or of any
Grantor as to any future transactions. Whenever the consent of Lender is
required under this Agreement, the granting of such consent by Lender in any
instance shall not constitute continuing consent in subsequent instances where
such consent is required, and in all cases such consent may be granted or
withheld in the sole discretion of Lender.

FINAL AGREEMENT. Borrower understands that this Agreement and the related loan
documents are the final expression of the agreement between Lender and Borrower
and may not be contradicted by evidence of any alleged oral agreement.


EACH BORROWER ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS LOAN
AGREEMENT, AND EACH BORROWER AGREES TO ITS TERMS.  THIS AGREEMENT IS DATED AS OF
NOVEMBER 25,1998.

BORROWER:

MOTOR CARGO INDUSTRIES, INC.


BY:   /S/
    ---------------------------------------
    LYNN H. WHEELER, VICE PRESIDENT/CFO


MOTOR CARGO, CO-BORROWER


BY:  /S/
    ---------------------------------------
     LYNN H. WHEELER, VICE PRESIDENT/CFO


LENDER:

ZIONS FIRST NATIONAL BANK


BY:  /S/ RICHARD P. JACKSON, V.P.      
    ---------------------------------------
     AUTHORIZED OFFICER




                                       21