Document:

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                                                                   EXHIBIT 10.44

                               SECURITY AGREEMENT

         THIS SECURITY AGREEMENT (this "Security Agreement") is entered into as
of December 31, 2001 among THE PROFIT RECOVERY GROUP USA, INC., a Georgia
corporation (the "Borrower"), THE PROFIT RECOVERY GROUP INTERNATIONAL, INC., a
Georgia corporation (the "Parent"), certain of the Domestic Subsidiaries of the
Parent (such Domestic Subsidiaries, together with the Parent, individually a
"Guarantor" and collectively the "Guarantors"; the Guarantors together with the
Borrower, individually an "Obligor", and collectively the "Obligors") and BANK
OF AMERICA, N.A., in its capacity as administrative agent (in such capacity, the
"Administrative Agent") for the lenders from time to time party to the Credit
Agreement described below (the "Lenders").

                                    RECITALS

         WHEREAS, pursuant to that certain Credit Agreement, dated as of the
date hereof (as amended, modified, extended, renewed or replaced from time to
time, the "Credit Agreement"), among the Borrower, the Guarantors, the Lenders
and the Administrative Agent, the Lenders have agreed to make Loans and issue
Letters of Credit upon the terms and subject to the conditions set forth
therein; and

         WHEREAS, it is a condition precedent to the effectiveness of the Credit
Agreement and the obligations of the Lenders to make their respective Loans and
to issue Letters of Credit under the Credit Agreement that the Obligors shall
have executed and delivered this Security Agreement to the Administrative Agent
for the ratable benefit of the Lenders.

         NOW, THEREFORE, in consideration of these premises and other good and
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties hereto agree as follows:

         1.       Definitions.

                  (a)      Unless otherwise defined herein, capitalized terms
         used herein shall have the meanings ascribed to such terms in the
         Credit Agreement, and the following terms which are defined in the
         Uniform Commercial Code in effect in the State of Georgia on the date
         hereof are used herein as so defined: Accession, Account, As-Extracted
         Collateral, Chattel Paper, Commercial Tort Claim, Commingled Goods,
         Consumer Goods, Deposit Account, Document, Equipment, Farm Products,
         Fixtures, General Intangible, Goods, Instrument, Inventory, Investment
         Property, Letter-of-Credit Right, Proceeds, Software, Supporting
         Obligation and Tangible Chattel Paper. For purposes of this Security
         Agreement, the term "Lender" shall include any Affiliate of any Lender
         which has entered into a Hedging Agreement with any Credit Party in
         connection with the Loans.

                  (b)      In addition, the following terms shall have the
         following meanings:

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                  "Copyright Licenses": any written agreement, naming any
         Obligor as licensor, granting any right under any Copyright including,
         without limitation, any thereof referred to in Schedule 6.17 to the
         Credit Agreement.

                  "Copyrights": (a) all registered United States copyrights in
         all Works, now existing or hereafter created or acquired, all
         registrations and recordings thereof, and all applications in
         connection therewith, including, without limitation, registrations,
         recordings and applications in the United States Copyright office
         including, without limitation, any thereof referred to in Schedule 6.17
         to the Credit Agreement, and (b) all renewals thereof including,
         without limitation, any thereof referred to in Schedule 6.17 of the
         Credit Agreement.

                  "Patent License": all agreements, whether written or oral,
         providing for the grant by or to an Obligor of any right to
         manufacture, use or sell any invention covered by a Patent, including,
         without limitation, any thereof referred to in Schedule 6.17 of the
         Credit Agreement.

                  "Patents": (a) all letters patent of the United States or any
         other country and all reissues and extensions thereof, including,
         without limitation, any thereof referred to in Schedule 6.17 of the
         Credit Agreement, and (b) all applications for letters patent of the
         United States or any other country and all divisions, continuations and
         continuations-in-part thereof, including, without limitation, any
         thereof referred to in Schedule 6.17 of the Credit Agreement.

                  "Secured Obligations": the collective reference to all of the
         Credit Party Obligations, now existing or hereafter arising pursuant to
         the Credit Documents, owing from the Borrower or any other Credit Party
         to any Lender or the Administrative Agent, howsoever evidenced,
         created, incurred or acquired, whether primary, secondary, direct,
         contingent, or joint and several, including, without limitation, all
         obligations and liabilities incurred in connection with collecting and
         enforcing the foregoing.

                  "Trademark License": means any agreement, written or oral,
         providing for the grant by or to an Obligor of any right to use any
         Trademark, including, without limitation, any thereof referred to in
         Schedule 6.17 of the Credit Agreement.

                  "Trademarks": (a) all trademarks, trade names, corporate
         names, company names, business names, fictitious business names, trade
         styles, service marks, logos and other source or business identifiers,
         and the goodwill associated therewith, now existing or hereafter
         adopted or acquired, all registrations and recordings thereof, and all
         applications in connection therewith, whether in the United States
         Patent and Trademark Office or in any similar office or agency of the
         United States, any State thereof or any other country or any political
         subdivision thereof, or otherwise, including, without limitation, any
         thereof referred to in Schedule 6.17 to the Credit Agreement, and (b)
         all renewals thereof.

                  "Work": any work which is subject to copyright protection
         pursuant to Title 17 of the United States Code.

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         2.       Grant of Security Interest in the Collateral. To secure the
prompt payment and performance in full when due, whether by lapse of time,
acceleration, mandatory prepayment or otherwise, of the Secured Obligations,
each Obligor hereby grants to the Administrative Agent, for the benefit of the
Lenders, a continuing security interest in, and a right to set off against, any
and all right, title and interest of such Obligor in and to all personal
property of such Obligor of whatever type or description, whether now owned or
existing or owned, acquired, or arising hereafter, including, without
limitation, the following (collectively, the "Collateral"):

                  (a)      all Accounts;

                  (b)      all cash and currency;

                  (c)      all Chattel Paper;

                  (d)      all Commercial Tort Claims identified on Schedule
                           2(d) attached hereto;

                  (e)      all Copyrights;

                  (f)      all Copyright Licenses;

                  (g)      all Deposit Accounts;

                  (h)      all Documents;

                  (i)      all Equipment;

                  (j)      all Fixtures;

                  (k)      all General Intangibles;

                  (l)      all Instruments;

                  (m)      all Inventory;

                  (n)      all Investment Property;

                  (o)      all Letter-of-Credit Rights;

                  (p)      all Patents;

                  (q)      all Patent Licenses;

                  (r)      all Software;

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                  (s)      all Supporting Obligations;

                  (t)      all Trademarks;

                  (u)      all Trademark Licenses; and

                  (v)      to the extent not otherwise included, all Accessions
         and all Proceeds of any and all of the foregoing.

         The Obligors and the Administrative Agent, on behalf of the Lenders,
hereby acknowledge and agree that the security interest created hereby in the
Collateral (i) constitutes continuing collateral security for all of the Secured
Obligations, whether now existing or hereafter arising and (ii) is not to be
construed as an assignment of any Copyrights, Copyright Licenses, Patents,
Patent Licenses, Trademarks or Trademark Licenses.

         3.       Provisions Relating to Accounts.

                  (a)      Anything herein to the contrary notwithstanding, each
         of the Obligors shall remain liable under each of the Accounts to
         observe and perform all the conditions and obligations to be observed
         and performed by it thereunder, all in accordance with the terms of any
         agreement giving rise to each such Account. Neither the Administrative
         Agent nor any Lender shall have any obligation or liability under any
         Account (or any agreement giving rise thereto) by reason of or arising
         out of this Security Agreement or the receipt by the Administrative
         Agent or any Lender of any payment relating to such Account pursuant
         hereto, nor shall the Administrative Agent or any Lender be obligated
         in any manner to perform any of the obligations of an Obligor under or
         pursuant to any Account (or any agreement giving rise thereto), to make
         any payment, to make any inquiry as to the nature or the sufficiency of
         any payment received by it or as to the sufficiency of any performance
         by any party under any Account (or any agreement giving rise thereto),
         to present or file any claim, to take any action to enforce any
         performance or to collect the payment of any amounts which may have
         been assigned to it or to which it may be entitled at any time or
         times.

                  (b)      Once during each calendar year or at any time after
         the occurrence and during the continuation of an Event of Default, the
         Administrative Agent shall have the right, but not the obligation, to
         make test verifications of the Accounts in any manner and through any
         medium that it reasonably considers advisable, and the Obligors shall
         furnish all such assistance and information as the Administrative Agent
         may require in connection with such test verifications. At any time and
         from time to time, upon the Administrative Agent's reasonable request
         and at the expense of the Obligors, the Obligors shall cause
         independent public accountants or others satisfactory to the
         Administrative Agent to furnish to the Administrative Agent reports
         showing reconciliations, aging and test verifications of, and trial
         balances for, the Accounts. The Administrative Agent in its own name or
         in the name of others may communicate with account debtors on the
         Accounts to verify with them

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         to the Administrative Agent's reasonable satisfaction the existence,
         amount and terms of any Accounts.

         4.       Representations and Warranties. Each Obligor hereby represents
and warrants to the Administrative Agent, for the benefit of the Lenders, that
so long as any of the Secured Obligations remain outstanding or any Credit
Document or any Hedging Agreement between any Credit Party and any Lender in
connection with the Loans is in effect or any Letter of Credit shall remain
outstanding, and until all of the Commitments shall have been terminated:

                  (a)      Legal Name; Chief Executive Office.

                           (i)      Each Obligor's exact legal name, state of
                  incorporation or formation, principal place of business and
                  chief executive office are (and for the four months prior to
                  the date hereof has been) as set forth on Schedule 4(a)(i)
                  attached hereto.

                           (ii)     Other than as set forth on Schedule 4(a)(ii)
                  attached hereto, no Obligor has been party to a merger,
                  consolidation or other change in structure or used any
                  tradename in the four months prior to the date hereof.

                  (b)      Ownership. Each Obligor is the legal and beneficial
         owner of its Collateral and has the right to pledge, sell, assign or
         transfer the same.

                  (c)      Security Interest/Priority. This Security Agreement
         creates a valid security interest in favor of the Administrative Agent,
         for the benefit of the Lenders, in the Collateral of such Obligor and,
         when properly perfected by filing, shall constitute a valid perfected
         security interest in such Collateral, to the extent such security can
         be perfected by filing under the UCC, free and clear of all Liens
         except for Permitted Liens.

                  (d)      Types of Collateral. None of the Collateral consists
         of, or is the Accessions or the Proceeds of, As-Extracted Collateral,
         Consumer Goods or Farm Products.

                  (e)      Accounts. (i) Each Account of the Obligors and the
         papers and documents relating thereto are genuine and in all material
         respects what they purport to be, (ii) each Account arises out of (A) a
         bona fide sale of goods sold and delivered by such Obligor (or is in
         the process of being delivered) or (B) services theretofore actually
         rendered by such Obligor to, the account debtor named therein, (iii) no
         Account of an Obligor is evidenced by any Instrument or Chattel Paper
         unless such Instrument or Chattel Paper has been theretofore endorsed
         over and delivered to, or submitted to the control of, the
         Administrative Agent and (iv) no surety bond was required or given in
         connection with any Account of an Obligor or the contracts or purchase
         orders out of which they arose.

                  (f)      Inventory. No Inventory is held by an Obligor
         pursuant to consignment, sale or return, sale on approval or similar
         arrangement.

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                  (g)      Copyrights, Patents and Trademarks.

                           (i)      Schedule 6.17 to the Credit Agreement
                  includes all Copyrights, Copyright Licenses, Patents, Patent
                  Licenses, Trademarks and Trademark Licenses owned by any
                  Obligor in its own name, or to which any Obligor is party, as
                  of the date hereof.

                           (ii)     To the best of each Obligor's knowledge,
                  each Copyright, Patent and Trademark of such Obligor is valid,
                  subsisting, unexpired, enforceable and has not been abandoned.

                           (iii)    Except as set forth in Schedule 6.17 to the
                  Credit Agreement, none of such Copyrights, Patents and
                  Trademarks is the subject of any licensing or franchise
                  agreement.

                           (iv)     No holding, decision or judgment has been
                  rendered by any Governmental Authority which would limit,
                  cancel or question the validity of any Copyright, Patent or
                  Trademark.

                           (v)      No action or proceeding is pending seeking
                  to limit, cancel or question the validity of any Copyright,
                  Patent or Trademark, or which, if adversely determined, would
                  have a material adverse effect on the value of any Copyright,
                  Patent or Trademark.

                           (vi)     All applications pertaining to the
                  Copyrights, Patents and Trademarks of each Obligor have been
                  duly and properly filed, and all registrations or letters
                  pertaining to such Copyrights, Patents and Trademarks have
                  been duly and properly filed and issued, and all of such
                  Copyrights, Patents and Trademarks are valid and enforceable.

                           (vii)    No Obligor has made any assignment or
                  agreement in conflict with the security interest in the
                  Copyrights, Patents or Trademarks of each Obligor hereunder.

         5.       Covenants. Each Obligor covenants that, so long as any of the
Secured Obligations remain outstanding or any Credit Document or any Hedging
Agreement between any Credit Party and any Lender in connection with the Loans
is in effect or any Letter of Credit shall remain outstanding, and until all of
the Commitments shall have been terminated, such Obligor shall:

                  (a)      Other Liens. Defend the Collateral against the claims
         and demands of all other parties claiming an interest therein, keep the
         Collateral free from all Liens, except for Permitted Liens, and not
         sell, exchange, transfer, assign, lease or otherwise dispose of the
         Collateral or any interest therein, except as permitted under the
         Credit Agreement.

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                  (b)      Preservation of Collateral. Keep the Collateral in
         good order, condition and repair and not use the Collateral in
         violation of the provisions of this Security Agreement or any other
         agreement relating to the Collateral or any policy insuring the
         Collateral or any applicable statute, law, bylaw, rule, regulation or
         ordinance.

                  (c)      Instruments/Tangible Chattel Paper/Documents. If any
         amount payable under or in connection with any of the Collateral shall
         be or become evidenced by any Instrument or Tangible Chattel Paper, or
         if any property constituting Collateral shall be stored or shipped
         subject to a Document, such Obligor shall ensure than such Instrument,
         Tangible Chattel Paper or Document is either in the possession of such
         Obligor at all times or, if requested by the Administrative Agent, is
         immediately delivered to the Administrative Agent, duly endorsed in a
         manner satisfactory to the Administrative Agent. Such Obligor shall
         ensure that any Collateral consisting of Tangible Chattel Paper is
         marked with a legend acceptable to the Administrative Agent indicating
         the Administrative Agent's security interest in such Tangible Chattel
         Paper.

                  (d)      Change in Structure, Location or Type. Not, without
         providing 10 days prior written notice to the Administrative Agent and
         without filing such financing statements and amendments to any
         previously filed financing statements as the Administrative Agent may
         require, change its name or state of formation or be party to a merger,
         consolidation or other change in structure or use any tradename.

                  (e)      Inspection. Upon reasonable notice, and during
         reasonable hours, at all times allow the Administrative Agent or its
         representatives to visit and inspect the Collateral as set forth in
         Section 7.10 of the Credit Agreement.

                  (f)      Authorization. Authorize the Administrative Agent to
         prepare and file such financing statements (including renewal
         statements), amendments and supplements or such other instruments as
         the Administrative Agent may from time to time reasonably deem
         necessary, appropriate or convenient in order to perfect and maintain
         the security interests granted hereunder in accordance with the UCC.

                  (g)      Perfection of Security Interest. Execute and deliver
         to the Administrative Agent such agreements, assignments or instruments
         (including affidavits, notices, reaffirmations and amendments and
         restatements of existing documents, as the Administrative Agent may
         reasonably request) and do all such other things as the Administrative
         Agent may reasonably deem necessary or appropriate (i) to assure to the
         Administrative Agent its security interests hereunder, including (A)
         such financing statements (including renewal statements) or amendments
         thereof or supplements thereto or other instruments as the
         Administrative Agent may from time to time reasonably request in order
         to perfect and maintain the security interests granted hereunder in
         accordance with the UCC, (B) with regard to Copyrights, a Notice of
         Grant of Security Interest in Copyrights for filing with the United
         States Copyright Office in the form of Schedule 5(f)(i) attached

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         hereto, (C) with regard to Patents, a Notice of Grant of Security
         Interest in Patents for filing with the United States Patent and
         Trademark Office in the form of Schedule 5(f)(ii) attached hereto and
         (D) with regard to Trademarks, a Notice of Grant of Security Interest
         in Trademarks for filing with the United States Patent and Trademark
         Office in the form of Schedule 5(f)(iii) attached hereto, (ii) to
         consummate the transactions contemplated hereby and (iii) to otherwise
         protect and reasonably assure the Administrative Agent of its rights
         and interests hereunder. To that end, each Obligor agrees that the
         Administrative Agent may file one or more financing statements
         disclosing the Administrative Agent's security interest in any or all
         of the Collateral of such Obligor without, to the extent permitted by
         law, such Obligor's signature thereon, and further each Obligor also
         hereby irrevocably makes, constitutes and appoints the Administrative
         Agent, its nominee or any other person whom the Administrative Agent
         may designate, as such Obligor's attorney in fact with full power and
         for the limited purpose to sign in the name of such Obligor any such
         financing statements, or amendments and supplements to financing
         statements, renewal financing statements, notices or any similar
         documents which in the Administrative Agent's reasonable discretion
         would be necessary, appropriate or convenient in order to perfect and
         maintain perfection of the security interests granted hereunder, such
         power, being coupled with an interest, being and remaining irrevocable
         and in effect so long as the Credit Agreement is in effect or any
         amounts payable thereunder or under any other Credit Document, any
         Letter of Credit or any Hedging Agreement between any Credit Party and
         any Lender in connection with the Loans shall remain outstanding, and
         until all of the Commitments thereunder shall have terminated. Each
         Obligor hereby agrees that a carbon, photographic or other reproduction
         of this Security Agreement or any such financing statement is
         sufficient for filing as a financing statement by the Administrative
         Agent without notice thereof to such Obligor wherever the
         Administrative Agent may in its reasonable discretion desire to file
         the same. In the event for any reason the law of any jurisdiction other
         than Georgia becomes or is applicable to the Collateral of any Obligor
         or any part thereof, or to any of the Secured Obligations, such Obligor
         agrees to execute and deliver all such instruments and to do all such
         other things as the Administrative Agent in its sole discretion
         reasonably deems necessary or appropriate to preserve, protect and
         enforce the security interests of the Administrative Agent under the
         law of such other jurisdiction (and, if an Obligor shall fail to do so
         promptly upon the request of the Administrative Agent, then the
         Administrative Agent may execute any and all such requested documents
         on behalf of such Obligor pursuant to the power of attorney granted
         hereinabove). If any Collateral is in the possession or control of an
         Obligor's agents and the Administrative Agent so requests, such Obligor
         agrees to notify such agents in writing of the Administrative Agent's
         security interest therein and, upon the Administrative Agent's request,
         instruct them to hold all such Collateral for the Lenders' account and
         subject to the Administrative Agent's instructions. Each Obligor agrees
         to mark its books and records to reflect the security interest of the
         Administrative Agent in the Collateral.

                  (h)      Control. Execute and deliver all agreements,
         assignments, instruments or other documents as the Administrative Agent
         shall reasonably request for the purpose of obtaining and maintaining
         control within the meaning of the UCC with respect to any Collateral
         consisting of Deposit Accounts, Investment Property, Letter-of-Credit
         Rights and Electronic Chattel Paper.

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                  (i)      Collateral held by Warehouseman, Bailee, etc. If any
         Collateral is at any time in the possession or control of a
         warehouseman, bailee, agent or processor of such Obligor, (i) notify
         the Administrative Agent of such possession or control, (ii) notify
         such Person of the Administrative Agent's security interest in such
         Collateral, (iii) instruct such Person to hold all such Collateral for
         the Administrative Agent's account and subject to the Administrative
         Agent's instructions and (iv) use its best efforts to obtain an
         acknowledgment from such Person that it is holding such Collateral for
         the benefit of the Administrative Agent.

                  (j)      Treatment of Accounts. Not grant or extend the time
         for payment of any Account, or compromise or settle any Account for
         less than the full amount thereof, or release any person or property,
         in whole or in part, from payment thereof, or allow any credit or
         discount thereon, other than as normal and customary in the ordinary
         course of an Obligor's business.

                  (k)      Covenants Relating to Copyrights.

                                    (i)      Employ the Copyright for each Work
                           with such notice of copyright as may be required by
                           law to secure copyright protection.

                                    (ii)     Not do any act or knowingly omit to
                           do any act whereby any material Copyright may become
                           invalidated and (A) not do any act, or knowingly omit
                           to do any act, whereby any material Copyright may
                           become injected into the public domain; (B) notify
                           the Administrative Agent immediately if it knows that
                           any material Copyright may become injected into the
                           public domain or of any adverse determination or
                           development (including, without limitation, the
                           institution of, or any such determination or
                           development in, any court or tribunal in the United
                           States or any other country) regarding an Obligor's
                           ownership of any such Copyright or its validity; (C)
                           take all necessary steps as it shall deem appropriate
                           under the circumstances, to maintain and pursue each
                           application (and to obtain the relevant registration)
                           and to maintain each registration of each material
                           Copyright owned by an Obligor including, without
                           limitation, filing of applications for renewal where
                           necessary; and (D) promptly notify the Administrative
                           Agent of any material infringement of any material
                           Copyright of an Obligor of which it becomes aware and
                           take such actions as it shall reasonably deem
                           appropriate under the circumstances to protect such
                           Copyright, including, where appropriate, the bringing
                           of suit for infringement, seeking injunctive relief
                           and seeking to recover any and all damages for such
                           infringement.

                                    (iii)    Not make any assignment or
                           agreement in conflict with the security interest in
                           the Copyrights of each Obligor hereunder.

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                  (l)      Covenants Relating to Patents and Trademarks.

                                    (i)      (A) Continue to use each Trademark
                           on each and every trademark class of goods applicable
                           to its current line as reflected in its current
                           catalogs, brochures and price lists in order to
                           maintain such Trademark in full force free from any
                           claim of abandonment for non-use, (B) maintain as in
                           the past the quality of products and services offered
                           under such Trademark, (C) employ such Trademark with
                           the appropriate notice of registration, (D) not adopt
                           or use any mark which is confusingly similar or a
                           colorable imitation of such Trademark unless the
                           Administrative Agent, for the ratable benefit of the
                           Lenders, shall obtain a perfected security interest
                           in such mark pursuant to this Security Agreement, and
                           (E) not (and not permit any licensee or sublicensee
                           thereof to) do any act or knowingly omit to do any
                           act whereby any Trademark may become invalidated.

                                    (ii)     Not do any act, or omit to do any
                           act, whereby any Patent may become abandoned or
                           dedicated.

                                    (iii)    Notify the Administrative Agent and
                           the Lenders immediately if it knows that any
                           application or registration relating to any Patent or
                           Trademark may become abandoned or dedicated, or of
                           any adverse determination or development (including,
                           without limitation, the institution of, or any such
                           determination or development in, any proceeding in
                           the United States Patent and Trademark Office or any
                           court or tribunal in any country) regarding an
                           Obligor's ownership of any Patent or Trademark or its
                           right to register the same or to keep and maintain
                           the same.

                                    (iv)     Whenever an Obligor, either by
                           itself or through an agent, employee, licensee or
                           designee, shall file an application for the
                           registration of any Patent or Trademark with the
                           United States Patent and Trademark Office or any
                           similar office or agency in any other country or any
                           political subdivision thereof, an Obligor shall
                           report such filing to the Administrative Agent and
                           the Lenders within five Business Days after the last
                           day of the fiscal quarter in which such filing
                           occurs. Upon request of the Administrative Agent, an
                           Obligor shall execute and deliver any and all
                           agreements, instruments, documents and papers as the
                           Administrative Agent may reasonably request to
                           evidence the Administrative Agent's and the Lenders'
                           security interest in any Patent or Trademark and the
                           goodwill and general intangibles of an Obligor
                           relating thereto or represented thereby.

                                    (v)      Take all reasonable and necessary
                           steps, including, without limitation, in any
                           proceeding before the United States Patent and
                           Trademark Office, or any similar office or agency in
                           any other country or any political subdivision
                           thereof, to maintain and pursue each application (and
                           to obtain the relevant registration) and to maintain
                           each registration of the Patents and

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                           Trademarks, including, without limitation, filing of
                           applications for renewal, affidavits of use and
                           affidavits of incontestability.

                                    (vi)     Promptly notify the Administrative
                           Agent and the Lenders after it learns that any Patent
                           or Trademark included in the Collateral is infringed,
                           misappropriated or diluted by a third party and
                           promptly sue for infringement, misappropriation or
                           dilution, to seek injunctive relief where appropriate
                           and to recover any and all damages for such
                           infringement, misappropriation or dilution, or take
                           such other actions as it shall reasonably deem
                           appropriate under the circumstances to protect such
                           Patent or Trademark.

                                    (vii)    Not make any assignment or
                           agreement in conflict with the security interest in
                           the Patents or Trademarks of each Obligor hereunder.

                  (m)      New Patents, Copyrights and Trademarks. Promptly
         provide the Administrative Agent with (i) a listing of all
         applications, if any, for new Copyrights, Patents or Trademarks
         (together with a listing of the issuance of registrations or letters on
         present applications), which new applications and issued registrations
         or letters shall be subject to the terms and conditions hereunder, and
         (ii) (A) with respect to Copyrights, a duly executed Notice of Security
         Interest in Copyrights, (B) with respect to Patents, a duly executed
         Notice of Security Interest in Patents, (C) with respect to Trademarks,
         a duly executed Notice of Security Interest in Trademarks or (D) such
         other duly executed documents as the Administrative Agent may
         reasonably request in a form acceptable to counsel for the
         Administrative Agent and suitable for recording to evidence the
         security interest in the Copyright, Patent or Trademark which is the
         subject of such new application.

                  (n)      Insurance. Insure, repair and replace the Collateral
         of such Obligor as set forth in the Credit Agreement. All insurance
         proceeds shall be subject to the security interest of the
         Administrative Agent hereunder.

                  (o)      Commercial Tort Claims.

                           (i)      Promptly notify the Administrative Agent in
                  writing of the initiation of any Commercial Tort Claim before
                  any Governmental Authority by or in favor of such Obligor or
                  any of its Subsidiaries.

                           (ii)     Execute and deliver such statements,
                  documents and notices and do and cause to be done all such
                  things as the Administrative Agent may reasonably deem
                  necessary, appropriate or convenient, or as are required by
                  law, to create, perfect and maintain the Administrative
                  Agent's security interest in any Commercial Tort Claim.

         6.       Advances by Lenders. On failure of any Obligor to perform any
of the covenants and agreements contained herein, the Administrative Agent may,
at its sole option and in its sole

                                       11
<PAGE>

discretion, perform the same and in so doing may expend such sums as the
Administrative Agent may reasonably deem advisable in the performance thereof,
including, without limitation, the payment of any insurance premiums, the
payment of any taxes, a payment to obtain a release of a Lien or potential Lien,
expenditures made in defending against any adverse claim and all other
expenditures which the Administrative Agent or the Lenders may make for the
protection of the security hereof or which may be compelled to make by operation
of law. All such sums and amounts so expended shall be repayable by the Obligors
on a joint and several basis promptly upon timely notice thereof and demand
therefor, shall constitute additional Secured Obligations and shall bear
interest from the date said amounts are expended at the default rate specified
in Section 3.1 of the Credit Agreement for Revolving Loans that are Base Rate
Loans. No such performance of any covenant or agreement by the Administrative
Agent or the Lenders on behalf of any Obligor, and no such advance or
expenditure therefor, shall relieve the Obligors of any default under the terms
of this Security Agreement, the other Credit Documents or any Hedging Agreement
between any Credit Party and any Lender in connection with the Loans. The
Lenders may make any payment hereby authorized in accordance with any bill,
statement or estimate procured from the appropriate public office or holder of
the claim to be discharged without inquiry into the accuracy of such bill,
statement or estimate or into the validity of any tax assessment, sale,
forfeiture, tax lien, title or claim except to the extent such payment is being
contested in good faith by an Obligor in appropriate proceedings and against
which adequate reserves are being maintained in accordance with GAAP.

         7.       Events of Default.

         The occurrence of an event which under the Credit Agreement would
constitute an Event of Default shall be an Event of Default hereunder (an "Event
of Default").

         8.       Remedies.

                  (a)      General Remedies. Upon the occurrence of an Event of
         Default and during continuation thereof, the Lenders shall have, in
         addition to the rights and remedies provided herein, in the Credit
         Documents, in any Hedging Agreement between any Credit Party and any
         Lender in connection with the Loans or by law (including, but not
         limited to, levy of attachment, garnishment, and the rights and
         remedies set forth in the Uniform Commercial Code of the jurisdiction
         applicable to the affected Collateral), the rights and remedies of a
         secured party under the UCC (regardless of whether the UCC is the law
         of the jurisdiction where the rights and remedies are asserted and
         regardless of whether the UCC applies to the affected Collateral), and
         further, the Administrative Agent may, with or without judicial process
         or the aid and assistance of others, (i) enter on any premises on which
         any of the Collateral may be located and, without resistance or
         interference by the Obligors, take possession of the Collateral, (ii)
         dispose of any Collateral on any such premises, (iii) require the
         Obligors to assemble and make available to the Administrative Agent at
         the expense of the Obligors any Collateral at any place and time
         designated by the Administrative Agent which is reasonably convenient
         to both parties, (iv) remove any Collateral from any such premises for
         the purpose of effecting sale or other disposition thereof, and/or (v)
         without demand and without advertisement, notice, hearing or process of

                                       12
<PAGE>

         law, all of which each of the Obligors hereby waives to the fullest
         extent permitted by law, at any place and time or times, sell and
         deliver any or all Collateral held by or for it at public or private
         sale, by one or more contracts, in one or more parcels, for cash, upon
         credit or otherwise, at such prices and upon such terms as the
         Administrative Agent deems advisable, in its sole discretion (subject
         to any and all mandatory legal requirements). Neither the
         Administrative Agent's compliance with applicable law nor its
         disclaimer of warranties relating to the Collateral shall be considered
         to adversely affect the commercial reasonableness of any sale. In
         addition to all other sums due the Administrative Agent and the Lenders
         with respect to the Secured Obligations, the Obligors shall pay the
         Administrative Agent and each of the Lenders all reasonable documented
         costs and expenses incurred by the Administrative Agent or any such
         Lender, including, but not limited to, reasonable attorneys' fees and
         court costs, in obtaining or liquidating the Collateral, in enforcing
         payment of the Secured Obligations, or in the prosecution or defense of
         any action or proceeding by or against the Administrative Agent or the
         Lenders or the Obligors concerning any matter arising out of or
         connected with this Security Agreement, any Collateral or the Secured
         Obligations, including, without limitation, any of the foregoing
         arising in, arising under or related to a case under the Bankruptcy
         Code. To the extent the rights of notice cannot be legally waived
         hereunder, each Obligor agrees that any requirement of reasonable
         notice shall be met if such notice is personally served on or mailed,
         postage prepaid, to the Borrower in accordance with the notice
         provisions of Section 11.1 of the Credit Agreement at least 10 days
         before the time of sale or other event giving rise to the requirement
         of such notice. The Administrative Agent and the Lenders shall not be
         obligated to make any sale or other disposition of the Collateral
         regardless of notice having been given. To the extent permitted by law,
         any Lender may be a purchaser at any such sale. To the extent permitted
         by applicable law, each of the Obligors hereby waives all of its rights
         of redemption with respect to any such sale. Subject to the provisions
         of applicable law, the Administrative Agent and the Lenders may
         postpone or cause the postponement of the sale of all or any portion of
         the Collateral by announcement at the time and place of such sale, and
         such sale may, without further notice, to the extent permitted by law,
         be made at the time and place to which the sale was postponed, or the
         Administrative Agent and the Lenders may further postpone such sale by
         announcement made at such time and place.

                  (b)      Remedies relating to Accounts. Upon the occurrence of
         an Event of Default and during the continuation thereof, whether or not
         the Administrative Agent has exercised any or all of its rights and
         remedies hereunder, each Obligor will promptly upon request of the
         Administrative Agent instruct all account debtors to remit all payments
         in respect of Accounts to a mailing location selected by the
         Administrative Agent. In addition, the Administrative Agent or its
         designee shall have the right to enforce any Obligor's rights against
         its customers and account debtors and may notify any Obligor's
         customers and account debtors that the Accounts of such Obligor have
         been assigned to the Administrative Agent or of the Administrative
         Agent's security interest therein, and may (either in its own name or
         in the name of an Obligor or both) demand, collect (including without
         limitation by way of a lockbox arrangement), receive, take receipt for,
         sell, sue for, compound, settle, compromise and give acquittance for
         any and all amounts due or to become due on any

                                       13
<PAGE>

         Account, and, in the Administrative Agent's discretion, file any claim
         or take any other action or proceeding to protect and realize upon the
         security interest of the Lenders in the Accounts. Each Obligor
         acknowledges and agrees that the Proceeds of its Accounts remitted to
         or on behalf of the Administrative Agent in accordance with the
         provisions hereof shall be solely for the Administrative Agent's own
         convenience and that such Obligor shall not have any right, title or
         interest in such Accounts or in any such other amounts except as
         expressly provided herein. The Administrative Agent and the Lenders
         shall have no liability or responsibility to any Obligor for acceptance
         in good faith of a check, draft or other order for payment of money
         bearing the legend "payment in full" or words of similar import or any
         other restrictive legend or endorsement or be responsible for
         determining the correctness of any remittance. Each Obligor hereby
         agrees to indemnify the Administrative Agent and the Lenders from and
         against all liabilities, damages, losses, actions, claims, judgments,
         costs, expenses, charges and reasonable attorneys' fees suffered or
         incurred by the Administrative Agent or the Lenders (each, an
         "Indemnified Party") because of the maintenance of the foregoing
         arrangements except as relating to or arising out of the gross
         negligence or willful misconduct of an Indemnified Party or its
         officers, employees or agents. In the case of any investigation,
         litigation or other proceeding, the foregoing indemnity shall be
         effective whether or not such investigation, litigation or proceeding
         is brought by an Obligor, its directors, shareholders or creditors or
         an Indemnified Party or any other Person or any other Indemnified Party
         is otherwise a party thereto.

                  (c)      Access. In addition to the rights and remedies
         hereunder, upon the occurrence of an Event of Default and during the
         continuance thereof, the Administrative Agent shall have the right to
         enter and remain upon the various premises of the Obligors without cost
         or charge to the Administrative Agent, and use the same, together with
         materials, supplies, books and records of the Obligors for the purpose
         of collecting and liquidating the Collateral, or for preparing for sale
         and conducting the sale of the Collateral, whether by foreclosure,
         auction or otherwise. In addition, the Administrative Agent may remove
         Collateral, or any part thereof, from such premises and/or any records
         with respect thereto, in order to effectively collect or liquidate such
         Collateral.

                  (d)      Nonexclusive Nature of Remedies. Failure by the
         Administrative Agent or the Lenders to exercise any right, remedy or
         option under this Security Agreement, any other Credit Document, any
         Hedging Agreement between any Credit Party and any Lender in connection
         with the Loans or as provided by law, or any delay by the
         Administrative Agent or the Lenders in exercising the same, shall not
         operate as a waiver of any such right, remedy or option. No waiver
         hereunder shall be effective unless it is in writing, signed by the
         party against whom such waiver is sought to be enforced and then only
         to the extent specifically stated, which in the case of the
         Administrative Agent or the Lenders shall only be granted as provided
         herein. To the extent permitted by law, neither the Administrative
         Agent, the Lenders, nor any party acting as attorney for the
         Administrative Agent or the Lenders, shall be liable hereunder for any
         acts or omissions or for any error of judgment or mistake of fact or
         law other than their gross negligence or willful misconduct hereunder.
         The rights and remedies of the Administrative Agent and the Lenders
         under this Security

                                       14
<PAGE>

         Agreement shall be cumulative and not exclusive of any other right or
         remedy which the Administrative Agent or the Lenders may have.

                  (e)      Retention of Collateral. The Administrative Agent
         may, after providing the notices required by Sections 9-620 and 9-621
         of the UCC or otherwise complying with the requirements of applicable
         law of the relevant jurisdiction, accept or retain all or any portion
         of the Collateral in satisfaction of the Secured Obligations. Unless
         and until the Administrative Agent shall have provided such notices,
         however, the Administrative Agent shall not be deemed to have accepted
         or retained any Collateral in satisfaction of any Secured Obligations
         for any reason.

                  (f)      Deficiency. In the event that the proceeds of any
         sale, collection or realization are insufficient to pay all amounts to
         which the Administrative Agent or the Lenders are legally entitled, the
         Obligors shall be jointly and severally liable for the deficiency,
         together with interest thereon at the default rate specified in Section
         3.1 of the Credit Agreement for Revolving Loans that are Base Rate
         Loans, together with the costs of collection and the reasonable fees of
         any attorneys employed by the Administrative Agent to collect such
         deficiency. Any surplus remaining after the full payment and
         satisfaction of the Secured Obligations shall be returned to the
         Obligors or to whomsoever a court of competent jurisdiction shall
         determine to be entitled thereto.

         9.       Rights of the Administrative Agent.

                  (a)      Power of Attorney. In addition to other powers of
         attorney contained herein, each Obligor hereby designates and appoints
         the Administrative Agent, on behalf of the Lenders, and each of its
         designees or agents, as attorney-in-fact of such Obligor, irrevocably
         and with power of substitution, with authority to take any or all of
         the following actions upon the occurrence and during the continuance of
         an Event of Default:

                           (i)      to demand, collect, settle, compromise,
                  adjust, give discharges and releases, all as the
                  Administrative Agent may reasonably determine;

                           (ii)     to commence and prosecute any actions at any
                  court for the purposes of collecting any Collateral and
                  enforcing any other right in respect thereof;

                           (iii)    to defend, settle or compromise any action
                  brought and, in connection therewith, give such discharge or
                  release as the Administrative Agent may deem reasonably
                  appropriate;

                           (iv)     to receive, open and dispose of mail
                  addressed to an Obligor and endorse checks, notes, drafts,
                  acceptances, money orders, bills of lading, warehouse receipts
                  or other instruments or documents evidencing payment, shipment
                  or storage of the goods giving rise to the Collateral of such
                  Obligor

                                       15
<PAGE>

                  on behalf of and in the name of such Obligor, or securing, or
                  relating to such Collateral;

                           (v)      to sell, assign, transfer, make any
                  agreement in respect of, or otherwise deal with or exercise
                  rights in respect of, any Collateral or the goods or services
                  which have given rise thereto, as fully and completely as
                  though the Administrative Agent were the absolute owner
                  thereof for all purposes;

                           (vi)     to adjust and settle claims under any
                  insurance policy relating to the Collateral;

                           (vii)    to execute and deliver all assignments,
                  conveyances, statements, financing statements, renewal
                  financing statements, security agreements, affidavits, notices
                  and other agreements, instruments and documents that the
                  Administrative Agent may reasonably determine necessary in
                  order to perfect and maintain the security interests and liens
                  granted in this Security Agreement and in order to fully
                  consummate all of the transactions contemplated therein;

                           (viii)   to institute any foreclosure proceedings
                  that the Administrative Agent may deem appropriate; and

                           (ix)     to do and perform all such other acts and
                  things as the Administrative Agent may reasonably deem to be
                  necessary, proper or convenient in connection with the
                  Collateral.

         This power of attorney is a power coupled with an interest and shall be
         irrevocable (i) for so long as any of the Secured Obligations remain
         outstanding, any Credit Document or any Hedging Agreement between any
         Credit Party and any Lender in connection with the Loans is in effect
         or any Letter of Credit shall remain outstanding and (ii) until all of
         the Commitments shall have been terminated. The Administrative Agent
         shall be under no duty to exercise or withhold the exercise of any of
         the rights, powers, privileges and options expressly or implicitly
         granted to the Administrative Agent in this Security Agreement, and
         shall not be liable for any failure to do so or any delay in doing so.
         The Administrative Agent shall not be liable for any act or omission or
         for any error of judgment or any mistake of fact or law in its
         individual capacity or its capacity as attorney-in-fact except acts or
         omissions resulting from its gross negligence or willful misconduct.
         This power of attorney is conferred on the Administrative Agent solely
         to protect, preserve and realize upon its security interest in the
         Collateral.

                  (b)      Performance by the Administrative Agent of
         Obligations. If any Obligor fails to perform any agreement or
         obligation contained herein, the Administrative Agent itself may
         perform, or cause performance of, such agreement or obligation, and the

                                       16
<PAGE>

         reasonable expenses of the Administrative Agent incurred in connection
         therewith shall be payable by the Obligors on a joint and several basis
         pursuant to Section 24 hereof.

                  (c)      Assignment by the Administrative Agent. The
         Administrative Agent may from time to time assign the Secured
         Obligations and any portion thereof and/or the Collateral and any
         portion thereof, and the assignee shall be entitled to all of the
         rights and remedies of the Administrative Agent under this Security
         Agreement in relation thereto.

                  (d)      The Administrative Agent's Duty of Care. Other than
         the exercise of reasonable care to assure the safe custody of the
         Collateral while being held by the Administrative Agent hereunder, the
         Administrative Agent shall have no duty or liability to preserve rights
         pertaining thereto, it being understood and agreed that the Obligors
         shall be responsible for preservation of all rights in the Collateral,
         and the Administrative Agent shall be relieved of all responsibility
         for the Collateral upon surrendering it or tendering the surrender of
         it to the Obligors. The Administrative Agent shall be deemed to have
         exercised reasonable care in the custody and preservation of the
         Collateral in its possession if the Collateral is accorded treatment
         substantially equal to that which the Administrative Agent accords its
         own property, which shall be no less than the treatment employed by a
         reasonable and prudent agent in the industry, it being understood that
         the Administrative Agent shall not have responsibility for taking any
         necessary steps to preserve rights against any parties with respect to
         any of the Collateral.

         10.      Application of Proceeds. Upon the occurrence and during the
continuance of an Event of Default, any payments in respect of the Secured
Obligations and any proceeds of the Collateral, when received by the
Administrative Agent or any of the Lenders in cash or its equivalent, will be
applied in reduction of the Secured Obligations in the order set forth in
Section 3.15(b) of the Credit Agreement, and each Obligor irrevocably waives the
right to direct the application of such payments and proceeds and acknowledges
and agrees that the Administrative Agent shall have the continuing and exclusive
right to apply and reapply any and all such payments and proceeds in the
Administrative Agent's sole discretion, notwithstanding any entry to the
contrary upon any of its books and records.

         11.      Costs of Counsel. If at any time hereafter, whether upon the
occurrence of an Event of Default or not, the Administrative Agent employs
counsel to prepare or consider amendments, waivers or consents with respect to
this Security Agreement, or to take action or make a response in or with respect
to any legal or arbitral proceeding relating to this Security Agreement or
relating to the Collateral, or to protect the Collateral or exercise any rights
or remedies under this Security Agreement or with respect to the Collateral,
then the Obligors agree to promptly pay upon demand any and all such reasonable
documented costs and expenses of the Administrative Agent, all of which costs
and expenses shall constitute Secured Obligations hereunder.

         12.      Continuing Agreement.

                  (a)      This Security Agreement shall be a continuing
         agreement in every respect and shall remain in full force and effect so
         long as any of the Secured Obligations remain

                                       17
<PAGE>

         outstanding or any Credit Document or any Hedging Agreement between any
         Credit Party and any Lender in connection with the Loans is in effect
         or any Letter of Credit shall remain outstanding, and until all of the
         Commitments thereunder shall have terminated (other than any
         obligations with respect to the indemnities and the representations and
         warranties set forth in the Credit Documents). Upon such payment and
         termination, this Security Agreement shall be automatically terminated
         and the Administrative Agent and the Lenders shall, upon the request
         and at the expense of the Obligors, forthwith release all of its liens
         and security interests hereunder and shall execute and deliver all UCC
         termination statements and/or other documents reasonably requested by
         the Obligors evidencing such termination. Notwithstanding the foregoing
         all releases and indemnities provided hereunder shall survive
         termination of this Security Agreement.

                  (b)      This Security Agreement shall continue to be
         effective or be automatically reinstated, as the case may be, if at any
         time payment, in whole or in part, of any of the Secured Obligations is
         rescinded or must otherwise be restored or returned by the
         Administrative Agent or any Lender as a preference, fraudulent
         conveyance or otherwise under any bankruptcy, insolvency or similar
         law, all as though such payment had not been made; provided that in the
         event payment of all or any part of the Secured Obligations is
         rescinded or must be restored or returned, all reasonable costs and
         expenses (including without limitation any reasonable legal fees and
         disbursements) incurred by the Administrative Agent or any Lender in
         defending and enforcing such reinstatement shall be deemed to be
         included as a part of the Secured Obligations.

         13.      Amendments; Waivers; Modifications. This Security Agreement
and the provisions hereof may not be amended, waived, modified, changed,
discharged or terminated except as set forth in Section 11.6 of the Credit
Agreement.

         14.      Successors in Interest. This Security Agreement shall create a
continuing security interest in the Collateral and shall be binding upon each
Obligor, its successors and assigns and shall inure, together with the rights
and remedies of the Administrative Agent and the Lenders hereunder, to the
benefit of the Administrative Agent and the Lenders and their successors and
permitted assigns; provided, however, that none of the Obligors may assign its
rights or delegate its duties hereunder without the prior written consent of
each Lender or the Required Lenders, as required by the Credit Agreement. To the
fullest extent permitted by law, each Obligor hereby releases the Administrative
Agent and each Lender, and its successors and assigns, from any liability for
any act or omission relating to this Security Agreement or the Collateral,
except as set forth in Section 8(d) hereof and except for any liability arising
from the gross negligence or willful misconduct of the Administrative Agent, or
such Lender, or its officers, employees or agents.

         15.      Notices. All notices required or permitted to be given under
this Security Agreement shall be in conformance with Section 11.1 of the Credit
Agreement.

         16.      Counterparts. This Security Agreement may be executed in any
number of counterparts, each of which where so executed and delivered shall be
an original, but all of which

                                       18
<PAGE>

shall constitute one and the same instrument. It shall not be necessary in
making proof of this Security Agreement to produce or account for more than one
such counterpart.

         17.      Headings. The headings of the sections and subsections hereof
are provided for convenience only and shall not in any way affect the meaning or
construction of any provision of this Security Agreement.

         18.      Governing Law; Submission to Jurisdiction; Venue.

                  (a)      THIS SECURITY AGREEMENT AND THE RIGHTS AND
         OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED
         AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF GEORGIA.
         Any legal action or proceeding with respect to this Security Agreement
         may be brought in the courts of the State of Georgia, or of the United
         States for the Northern District of Georgia, Atlanta Division, and, by
         execution and delivery of this Security Agreement, each Obligor hereby
         irrevocably accepts for itself and in respect of its property,
         generally and unconditionally, the jurisdiction of such courts. Each
         Obligor further irrevocably consents to the service of process out of
         any of the aforementioned courts in any such action or proceeding by
         the mailing of copies thereof by registered or certified mail, postage
         prepaid, to it at the address for notices pursuant to Section 11.1 of
         the Credit Agreement, such service to become effective 3 Business Days
         after such mailing. Nothing herein shall affect the right of the
         Administrative Agent to serve process in any other manner permitted by
         law or to commence legal proceedings or to otherwise proceed against
         any Obligor in any other jurisdiction.

                  (b)      Each Obligor hereby irrevocably waives any objection
         which it may now or hereafter have to the laying of venue of any of the
         aforesaid actions or proceedings arising out of or in connection with
         this Security Agreement brought in the courts referred to in subsection
         (a) hereof and hereby further irrevocably waives and agrees not to
         plead or claim in any such court that any such action or proceeding
         brought in any such court has been brought in an inconvenient forum.

         19.      Waiver of Jury Trial. TO THE EXTENT PERMITTED BY APPLICABLE
LAW, EACH OF THE PARTIES TO THIS SECURITY AGREEMENT HEREBY IRREVOCABLY WAIVES
ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT
OF OR RELATING TO THIS SECURITY AGREEMENT OR THE TRANSACTIONS CONTEMPLATED
HEREBY.

         20.      Severability. If any provision of this Security Agreement is
determined to be illegal, invalid or unenforceable, such provision shall be
fully severable and the remaining provisions shall remain in full force and
effect and shall be construed without giving effect to the illegal, invalid or
unenforceable provisions.

                                       19
<PAGE>

         21.      Entirety. This Security Agreement, the other Credit Documents
and any Hedging Agreement between any Credit Party and any Lender in connection
with the Loans represent the entire agreement of the parties hereto and thereto,
and supersede all prior agreements and understandings, oral or written, if any,
including any commitment letters or correspondence relating to the Credit
Documents, any Hedging Agreement between any Credit Party and any Lender in
connection with the Loans or the transactions contemplated herein and therein.

         22.      Survival. All representations and warranties of the Obligors
hereunder shall survive the execution and delivery of this Security Agreement,
the other Credit Documents and any Hedging Agreement between any Credit Party
and any Lender in connection with the Loans, the delivery of the Notes and the
making of the Loans and the issuance of the Letters of Credit under the Credit
Agreement.

         23.      Other Security. To the extent that any of the Secured
Obligations are now or hereafter secured by property other than the Collateral
(including, without limitation, real property and securities owned by an
Obligor), or by a guarantee, endorsement or property of any other Person, then
the Administrative Agent and the Lenders shall have the right to proceed against
such other property, guarantee or endorsement upon the occurrence of any Event
of Default, and the Administrative Agent and the Lenders have the right, in
their sole discretion, to determine which rights, security, liens, security
interests or remedies the Administrative Agent and the Lenders shall at any time
pursue, relinquish, subordinate, modify or take with respect thereto, without in
any way modifying or affecting any of them or any of the Administrative Agent's
and the Lenders' rights or the Secured Obligations under this Security
Agreement, under any other of the Credit Documents or under any Hedging
Agreement between any Credit Party and any Lender in connection with the Loans.

         24.      Joint and Several Obligations of Obligors.

                  (a)      Each of the Obligors is accepting joint and several
         liability hereunder in consideration of the financial accommodation to
         be provided by the Lenders under the Credit Agreement, for the mutual
         benefit, directly and indirectly, of each of the Obligors and in
         consideration of the undertakings of each of the Obligors to accept
         joint and several liability for the obligations of each of them.

                  (b)      Each of the Obligors jointly and severally hereby
         irrevocably and unconditionally accepts, not merely as a surety but
         also as a co-debtor, joint and several liability with the other
         Obligors with respect to the payment and performance of all of the
         Secured Obligations arising under this Security Agreement, the other
         Credit Documents and any Hedging Agreement between any Credit Party and
         any Lender in connection with the Loans, it being the intention of the
         parties hereto that all the Secured Obligations shall be the joint and
         several obligations of each of the Obligors without preferences or
         distinction among them.

                  (c)      Notwithstanding any provision to the contrary
         contained herein or in any other of the Credit Documents, to the extent
         the obligations of a Guarantor shall be

                                       20
<PAGE>

         adjudicated to be invalid or unenforceable for any reason (including,
         without limitation, because of any applicable state or federal law
         relating to fraudulent conveyances or transfers), then the obligations
         of a Guarantor under the Credit Documents shall be limited to an
         aggregate amount equal to the largest amount that would not render such
         obligation subject to avoidance under applicable law (whether federal
         or state and including, without limitation, Section 548 of the
         Bankruptcy Code).

         25.      Rights of Required Lenders. All rights of the Administrative
Agent hereunder, if not exercised by the Administrative Agent, may be exercised
by the Required Lenders.

                  [remainder of page intentionally left blank]

                                       21
<PAGE>

         Each of the parties hereto has caused a counterpart of this Security
Agreement to be duly executed and delivered as of the date first above written.

BORROWER:                      THE PROFIT RECOVERY GROUP USA, INC.,
                               a Georgia corporation

                               By:     /s/ Donald E. Ellis, Jr.
                                   --------------------------------------------
                               Name:   Donald E. Ellis, Jr.
                               Title:  Executive Vice President - Finance,
                                       Chief Financial Officer and Treasurer

GUARANTORS:                    THE PROFIT RECOVERY GROUP INTERNATIONAL, INC.,
                               a Georgia corporation

                               By:     /s/ Donald E. Ellis, Jr.
                                   --------------------------------------------
                               Name:   Donald E. Ellis, Jr.
                               Title:  Executive Vice President - Finance,
                                       Chief Financial Officer and Treasurer

                               PRGFS, INC.,
                               PRGLS, INC.,
                               PRGRS, INC.,
                               each a Delaware corporation

                               By:     /s/ Donald E. Ellis, Jr.
                                   --------------------------------------------
                               Name:   Donald E. Ellis, Jr.
                               Title:  Executive Vice President - Finance

                               PRG ACQUISITION, INC.,
                               a Georgia corporation

                               By:     /s/ Donald E. Ellis, Jr.
                                   --------------------------------------------
                               Name:   Donald E. Ellis, Jr.
                               Title:  Executive Vice President - Finance

<PAGE>

GUARANTORS:                    THE PROFIT RECOVERY GROUP U.K., INC.,
                               THE PROFIT RECOVERY GROUP ASIA, INC.,
                               THE PROFIT RECOVERY GROUP CANADA, INC.,
                               THE PROFIT RECOVERY GROUP NEW ZEALAND, INC.,
                               THE PROFIT RECOVERY GROUP NETHERLANDS, INC.,
                               THE PROFIT RECOVERY GROUP BELGIUM, INC.,
                               THE PROFIT RECOVERY GROUP MEXICO, INC.,
                               THE PROFIT RECOVERY GROUP FRANCE, INC.,
                               THE PROFIT RECOVERY GROUP AUSTRALIA, INC.,
                               THE PROFIT RECOVERY GROUP GERMANY, INC.,
                               PRG INTERNATIONAL, INC.,
                               THE PROFIT RECOVERY GROUP SWITZERLAND, INC.,
                               THE PROFIT RECOVERY GROUP SOUTH AFRICA, INC.,
                               THE PROFIT RECOVERY GROUP SPAIN, INC.,
                               THE PROFIT RECOVERY GROUP ITALY, INC.,
                               THE PROFIT RECOVERY GROUP GREECE, INC.,
                               THE PROFIT RECOVERY GROUP PORTUGAL, INC.,
                               PAYMENT TECHNOLOGIES, INC.,
                               THE PROFIT RECOVERY GROUP COSTA RICA, INC.,
                               each a Georgia corporation

                               By:     /s/ Donald E. Ellis, Jr.
                                   --------------------------------------------
                               Name:   Donald E. Ellis, Jr.
                               Title:  Executive Vice President - Finance,
                                       Chief Financial Officer and Treasurer

                               PRG HOLDING CO. (FRANCE) NO. 1 LLC,
                               PRG HOLDING CO. (FRANCE) NO. 2 LLC,
                               each a Delaware limited liability company

                               By:     /s/ Donald E. Ellis, Jr.
                                   --------------------------------------------
                               Name:   Donald E. Ellis, Jr.
                               Title:  Executive Vice President - Finance,
                                       Chief Financial Officer and Treasurer

                               PRG USA, INC.,
                               a Georgia corporation

                               By:     /s/ Donald E. Ellis, Jr.
                                   --------------------------------------------
                               Name:   Donald E. Ellis, Jr.
                               Title:  Executive Vice President - Finance,
                                       Chief Financial Officer and Treasurer

<PAGE>

Accepted and Agreed to as of the date first above written:

BANK OF AMERICA, N.A.,
in its capacity as the Administrative Agent

By:     /s/ Nancy S. Goldman
   --------------------------------
Name:   Nancy S. Goldman
      -----------------------------
Title:  Senior Vice President
      -----------------------------

<PAGE>

                                  SCHEDULE 2(d)

                             COMMERCIAL TORT CLAIMS

The Profit Recovery Group USA, Inc v. Neil Loder de Assoc, et al. U.S. District
Court Central District of California (Western Div.) Case No. 01-CV-6200

<PAGE>

SCHEDULE 4(a)(i)

          LEGAL NAME, STATE OF FORMATION, PRINCIPAL PLACE OF BUSINESS,
                             CHIEF EXECUTIVE OFFICE

<TABLE>
<CAPTION>
                                                             STATE OF
    OBLIGOR / PRINCIPAL PLACE OF BUSINESS                    FORMATION
    -------------------------------------                    ---------
<S>                                                          <C>

 PAYMENT TECHNOLOGIES. INC. (1)                               Georgia

 THE PROFIT RECOVERY GROUP ASIA, INC,                         Georgia
 60 MARTIN Road
 #06-09 TradeMart Singapore
 SINGAPORE 239065

 THE PROFIT RECOVERY GROUP AUSTRALIA, INC.                    Georgia
 Caulfield Business Centers
 189-191 Balaclava Road
 Caulfield, Victoria 3161
 AUSTRALIA

 THE PROFIT RECOVERY GROUP BELGIUM, INC.                      Georgia
 The Profit Recovery Group Belgium, Inc.
 114 Rue Chaptal
 92532 Levallois Peret
 FRANCE

 THE PROFIT RECOVERY GROUP CANADA, INC.                       Georgia
 The Profit Recovery Group Canada, Inc.
 1415 Bonhill Road Unit 3 & 4
 Mississauga, ON LSR 1R2
 CANADA

 THE PROFIT RECOVERY GROUP COSTA RICA, INC.                   Georgia
 Edifcio Lachner, del Mall San Pedro 200 metros nortc
 altos de POPS Fantasia, tercer piso
 San Pedro, San Jose
 COSTA RICA

 THE PROFIT RECOVERY GROUP FRANCE, INC.                       Georgia
 114 Rue Chaptal
 92532 Levallois Peret
 FRANCE

 THE PROFIT RECOVERY GROUP GERMANY, INC.                      Georgia
 Robert-Bosch Strasse 25A
 D-63225 Langen
 GERMANY

 THE PROFIT RECOVERY GROUP GREECE, INC. (1)                   Georgia
</TABLE>

<PAGE>

          LEGAL NAME, STATE OF FORMATION, PRINCIPAL PLACE OF BUSINESS,
                       CHIEF EXECUTIVE OFFICE (continued)

<TABLE>
<CAPTION>
                                                             STATE OF
    OBLIGOR / PRINCIPAL PLACE OF BUSINESS                    FORMATION
    -------------------------------------                    ---------
<S>                                                          <C>

THE PROFIT RECOVERY GROUP INTERNATIONAL, INC. (1)             Georgia

THE PROFIT RECOVERY GROUP ITALY, INC.                         Georgia
Paradigm 21A
Parma 43100
ITALY

THE PROFIT RECOVERY GROUP MEXICO, INC.                        Georgia
The Profit Recovery Group Mexico, Inc.
Campos Eliseos 1A Piso 2
Col Bosque de Chapultepec 11560
MEXICO D.F.

THE PROFIT RECOVERY GROUP NETHERLANDS, INC. (1)               Georgia

THE PROFIT RECOVERY GROUP NEW ZEALAND, INC.                   Georgia
The Profit Recovery Group New Zealand, Inc.
Suite 3/19 Ryde Road
Pymble NSW 2073
AUSTRALIA

THE PROFIT RECOVERY GROUP PORTUGAL, INC. (1)                  Georgia

THE PROFIT RECOVERY GROUP SOUTH AFRICA, INC.                  Georgia
9 Summit Road
Dunkeld West
Sandton 2196
SOUTH AFRICA

THE PROFIT RECOVERY GROUP SPAIN, INC.                         Georgia
Calle Maldonado 25
28006 Madrid
SPAIN

THE PROFIT RECOVERY GROUP SWITZERLAND, INC.                   Georgia
c/o KPMG Private
14 Chemin de Nornandie
Geneva
SWITZERLAND

THE PROFIT RECOVERY GROUP UK, INC,                            Georgia
Meridian House
202-204 Finchley Road
London, NW3 6BX
ENGLAND
</TABLE>

<PAGE>

          LEGAL NAME, STATE OF FORMATION, PRINCIPAL PLACE OF BUSINESS,
                       CHIEF EXECUTIVE OFFICE (continued)

<TABLE>
<CAPTION>
                                                             STATE OF
    OBLIGOR / PRINCIPAL PLACE OF BUSINESS                    FORMATION
    -------------------------------------                    ---------
<S>                                                          <C>

THE PROFIT RECOVERY GROUP USA, INC. (1)                       Georgia

PRG INTERNATIONAL, INC. (1)                                   Georgia

PRG USA. INC. (1)                                             Georgia

PRG, INC.(1)                                                  Georgia

PRGFS, INC. (2)                                               Delaware

PRGLS, INC. (2)                                               Delaware

PRGRS, INC. (2)                                               Delaware

PRG Holding Company (France) No. 1, LLC (2)                   Delaware

PRG Holding Company (France) No. 2, LLC (2)                   Delaware
</TABLE>

The Chief Executive Address for each of the above Obligors is:
         2300 Windy Ridge Parkway, Suite 100N
         Atlanta, Georgia 30339-8426

(1)      The Principal Place of Business for the Obligor is:
         2300 Windy Ridge Parkway, Suite 100N
         Atlanta, Georgia 30339-8426

(2)      The Principal Place of Business for the Obligor is:
         801 West Street, Second Floor
         Wilmington, Delaware 19801

<PAGE>

                                SCHEDULE 4(a (ii)
                                -----------------

        MERGERS, CONSOLIDATIONS, CHANGES IN STRUCTURE, USE OF TRADENAMES

No Obligor has been party to a merger, consolidation or other change in
structure or used any tradename in the four (4) months prior to the date hereof.

<PAGE>

                                SCHEDULE 5(f)(i)

                                     NOTICE

                                       OF

                           GRANT OF SECURITY INTEREST

                                       IN

                                   COPYRIGHTS

United States Copyright Office

Ladies and Gentlemen:

         Please be advised that pursuant to the Security Agreement dated as of
December 31, 2001 (as the same may be amended, modified, extended or restated
from time to time, the "Security Agreement") by and among the Obligors party
thereto (each an "Obligor" and collectively, the "Obligors") and Bank of
America, N.A., as Administrative Agent (the "Administrative Agent") for the
Lenders referenced therein (the "Lenders"), the undersigned Obligor has granted
a continuing security interest in and continuing lien upon, the copyrights and
copyright applications shown below to the Administrative Agent for the ratable
benefit of the Lenders:

                                   COPYRIGHTS

<TABLE>
<CAPTION>
                                                                 Date of
 Copyright No.              Description of Copyright            Copyright
 -------------              ------------------------            ---------
<S>                         <C>                                 <C>
</TABLE>

                             Copyright Applications

<TABLE>
<CAPTION>
    Copyright               Description of Copyright           Date of Copyright
 Applications No.                 Applied For                    Applications
 ----------------                 -----------                    ------------
<S>                         <C>                                <C>
</TABLE>

<PAGE>

         The Obligors and the Administrative Agent, on behalf of the Lenders,
hereby acknowledge and agree that the security interest in the foregoing
copyrights and copyright applications (i) may only be terminated in accordance
with the terms of the Security Agreement and (ii) is not to be construed as an
assignment of any copyright or copyright application.

                                     Very truly yours,

                                     ----------------------------------,

                                     a             corporation
                                       -----------

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

                                     Obligor's Address:

Acknowledged and Accepted:

BANK OF AMERICA, N.A., as Administrative Agent

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

<PAGE>

                                SCHEDULE 5(f)(ii)

                                     NOTICE

                                       OF

                           GRANT OF SECURITY INTEREST

                                       IN

                                     PATENTS

United States Patent and Trademark Office

Ladies and Gentlemen:

         Please be advised that pursuant to the Security Agreement dated as of
December 31, 2001 (the "Security Agreement") by and among the Obligors party
thereto (each an "Obligor" and collectively, the "Obligors") and Bank of
America, N.A., as Administrative Agent (the "Administrative Agent") for the
Lenders referenced therein (the "Lenders"), the undersigned Obligor has granted
a continuing security interest in and continuing lien upon, the patents and
patent applications shown below to the Administrative Agent for the ratable
benefit of the Lenders:

                                     PATENTS

<TABLE>
<CAPTION>
                              Description of Patent                Date of
 Patent No.                            Item                         Patent
 ----------------             ---------------------              --------------
<S>                           <C>                                <C>
</TABLE>

                               Patent Applications

<TABLE>
<CAPTION>
     Patent                   Description of Patent              Date of Patent
 Applications No.                 Applied For                     Applications
 ----------------             ---------------------              --------------
<S>                           <C>                                <C>
</TABLE>

<PAGE>

         The Obligors and the Administrative Agent, on behalf of the Lenders,
hereby acknowledge and agree that the security interest in the foregoing patents
and patent applications (i) may only be terminated in accordance with the terms
of the Security Agreement and (ii) is not to be construed as an assignment of
any patent or patent application.

                                         Very truly yours,

                                         ----------------------------------,
                                         a             corporation
                                           -----------

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

                                         Obligor's Address:

Acknowledged and Accepted:

BANK OF AMERICA, N.A., as Administrative Agent

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

<PAGE>

                               SCHEDULE 5(f)(iii)

                                     NOTICE

                                       OF

                           GRANT OF SECURITY INTEREST

                                       IN

                                   TRADEMARKS

United States Patent and Trademark Office

Ladies and Gentlemen:

         Please be advised that pursuant to the Security Agreement dated as of
December 31, 2001 (the "Security Agreement") by and among the Obligors party
thereto (each an "Obligor" and collectively, the "Obligors") and Bank of
America, N.A., as Administrative Agent (the "Administrative Agent") for the
Lenders referenced therein (the "Lenders"), the undersigned Obligor has granted
a continuing security interest in and continuing lien upon, the trademarks and
trademark applications shown below to the Administrative Agent for the ratable
benefit of the Lenders:

                                   TRADEMARKS

<TABLE>
<CAPTION>
                            Description of Trademark                  Date of
 Trademark No.                         Item                           Trademark
 -------------              ------------------------                  ---------
<S>                         <C>                                       <C>
</TABLE>

                             Trademark Applications

<TABLE>
<CAPTION>
    Trademark               Description of Trademark           Date of Trademark
 Applications No.                  Applied For                    Applications
 ----------------           ------------------------           -----------------
<S>                         <C>                                <C>
</TABLE>

<PAGE>

         The Obligors and the Administrative Agent, on behalf of the Lenders,
hereby acknowledge and agree that the security interest in the foregoing
trademarks and trademark applications (i) may only be terminated in accordance
with the terms of the Security Agreement and (ii) is not to be construed as an
assignment of any trademark or trademark application.

                                            Very truly yours,

                                            ----------------------------------,

                                            a             corporation
                                              -----------

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

                                            Obligor's Address:

Acknowledged and Accepted:

BANK OF AMERICA, N.A., as Administrative Agent

By:
   -----------------------------------------
Name:
     ---------------------------------------
Title:
      --------------------------------------<PAGE>

                                                                   EXHIBIT 10.18

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

                             FORWARD AIR CORPORATION

                                SECTION 125 PLAN

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

Effective January 1, 2002

<PAGE>

                             FORWARD AIR CORPORATION
                                SECTION 125 PLAN

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                              PAGE
                                                                              ----
<S>                                                                           <C>
FORWARD AND PURPOSE.............................................................1

Article I         DEFINITIONS...................................................1
         Administrator..........................................................1
         Benefit Description....................................................1
         Change in Status.......................................................1
         Code...................................................................2
         Dependent..............................................................2
         Effective Date.........................................................2
         Election Change........................................................2
         Eligible Employee......................................................3
         Employee...............................................................3
         Employer...............................................................3
         ERISA..................................................................3
         Flexible Pay...........................................................3
         FMLA Leave.............................................................3
         Health Benefits........................................................3
         Health Plan............................................................4
         Participant............................................................4
         Participating Employer.................................................4
         Participation Year.....................................................4
         Plan...................................................................4
         Plan Year..............................................................4
         Premiums...............................................................4
         Pre-Tax Benefits.......................................................4

Article II        ELIGIBILITY, PARTICIPATION, AND BENEFITS......................4
         2.1      General.......................................................4
         2.2      Incorporation by Reference....................................5
         2.3      Premiums......................................................5

Article III       PARTICIPATION AND ENROLLMENT..................................5
         3.1      Participation.................................................5
         3.2      Enrollment....................................................6
         3.3      Termination of Enrollment.....................................6
         3.4      Enrollment Periods............................................6
         3.5      Limitation on Enrollment Changes.............................12
         3.6      COBRA Coordination...........................................12
</TABLE>

                                        i

<PAGE>
<TABLE>
<S>                                                                            <C>
Article IV        CONTRIBUTIONS................................................12
         4.1      Contributions Withheld.......................................12
         4.2      Carryover Prohibited.........................................13
         4.3      Enrollment...................................................13
         4.4      Premium Rebates and Policy Dividends.........................13
         4.5      Effect of Change in Dependent Status.........................13
         4.6      Cash Benefit.................................................13
         4.7      Cost Changes.................................................14
         4.8      Coverage Changes.............................................14

Article V         ADMINISTRATION...............................................15
         5.1      Allocation of Responsibility.................................15
         5.2      Administration...............................................16
         5.3      Expenses.....................................................16
         5.4      Denial of Claims.............................................16
         5.5      Claims Review Procedure......................................16
         5.6      Other Administrative Powers and Duties.......................18
         5.7      Rules and Decisions..........................................18
         5.8      Forms and Requests for Information...........................18

Article VI        AMENDMENT OF THE PLAN........................................19

Article VII       TERMINATION OF THE PLAN......................................19

Article VIII      MISCELLANEOUS................................................19
         8.1      Employment Rights............................................19
         8.2      Spendthrift Clause...........................................19
         8.3      No Guarantee of Nontaxability................................20
         8.4      Cafeteria Plan Nondiscrimination.............................20
         8.5      Health Care Nondiscrimination................................21
         8.6      Delegation of Authority......................................21
         8.7      Headings and Construction....................................21
         8.8      Entire Plan Stated...........................................21
         8.9      Applicable Law...............................................21
         8.10     Exclusive Benefit Rule.......................................21
         8.11     Communication to Employees...................................22
         8.12     Adoption by Other Employers..................................22

ARTICLE IX        SIGNATURE....................................................22
</TABLE>

                                       ii

<PAGE>

                               FORWARD AND PURPOSE

        This Plan is made and adopted by Forward Air Corporation ("Forward
Air").

                              W I T N E S S E T H:

        WHEREAS, Forward Air desires to establish the Forward Air Corporation
Section 125 Plan (the "Plan"); and

        WHEREAS, it is intended that the Plan qualify as a cafeteria plan, an
accident and health plan, and a group life insurance plan under Code Sections
79, 105, 106, and 125 and shall be interpreted in a manner consistent with the
requirements of Code Sections 79, 105, 106, and 125.

        NOW THEREFORE, Forward Air hereby establishes the Plan effective as of
January 1, 2002, to provide as follows:

                                    ARTICLE I

                                   DEFINITIONS

        The following words and phrases have meanings set forth below, unless a
different meaning is plainly required by the context:

                "ADMINISTRATOR" means Forward Air Corporation or its successor
        or successors, which shall have the authority to administer the Plan as
        provided in Article V.

                "BENEFIT DESCRIPTION" means the certificate of coverage,
        insurance policy, membership handbook, or summary plan description, as
        applicable, for each benefit or any successor certificate of coverage,
        insurance policy, membership handbook, or summary plan description
        listed in Appendix A and such successor documents as the Administrator
        may designate.

                "CHANGE IN STATUS" means a change in status event as defined in
        Treasury Regulations promulgated under Code Section 125, and to the
        extent consistent therewith, means the following:

                        (1) LEGAL MARITAL STATUS. Events that change an Eligible
                Employee's legal marital status, including marriage, death of
                spouse, divorce, legal separation, and annulment;

                                       1
<PAGE>

                        (2) NUMBER OF DEPENDENTS. Events that change an Eligible
                Employee's number of Dependents, including birth, death,
                adoption, and placement for adoption;

                        (3) EMPLOYMENT STATUS. Any of the following events that
                change the employment status of the Eligible Employee, the
                Eligible Employee's spouse, or the Eligible Employee's
                Dependent: a termination or commencement of employment; a
                commencement of or return from an unpaid leave of absence; and a
                change in worksite. In addition, if the eligibility conditions
                of the Plan or other employee benefit plans of the Employer of
                the Eligible Employee or the employer of the spouse or Dependent
                depend on the employment status of that individual and there is
                a change in that individual's employment status with the
                consequence that the individual becomes (or ceases to be)
                eligible, then that change constitutes a change in employment
                status;

                        (4) DEPENDENT SATISFIES OR CEASES TO SATISFY THE
                REQUIREMENTS. Events that cause an Eligible Employee's Dependent
                to satisfy or cease to satisfy the eligibility requirements for
                coverage on account of attainment of age, student status, or any
                similar circumstance; and

                        (5) RESIDENCE. A change in the place of residence of the
                Eligible Employee, spouse, or Dependent.

                "CODE" means the Internal Revenue Code of 1986, as amended from
        time to time. Reference to any section or subsection of the Code
        includes reference to any comparable or succeeding provisions of any
        legislation that amends, supplements, or replaces such section or
        subsection.

                "DEPENDENT" means a Participant's legal spouse or any dependent
        as defined under the applicable benefit.

                "EFFECTIVE DATE" means the date on which this Plan is effective,
        January 1, 2002.

                "ELECTION CHANGE" means a Participant's revocation of an
        election during a Participation Year and new election for the remaining
        portion of the Participation Year.

                                       2
<PAGE>

                "ELIGIBLE EMPLOYEE" means an Employee who is eligible to
        participate in any of the benefits listed in Appendix A.

                "EMPLOYEE" means any person who is classified by the Employer as
        an employee of the Employer and who is receiving remuneration for
        personal services rendered to the Employer, excluding any individual
        whom the Employer classifies as a contract employee, an independent
        contractor or an employee of a contractor or an independent contractor,
        a nonresident alien, or covered by a collective bargaining agreement
        (unless that agreement, by a specific reference to this Plan or to one
        of the benefits offered under this Plan, provides for coverage under
        this Plan and/or one of the benefits offered under this Plan. These
        groups of individuals are excluded from coverage under this Plan based
        on the Employer's classification even if the Internal Revenue Service or
        any other agency or court determines that the Employer's classification
        was incorrect or reclassifies that individual as an employee for
        employment tax purposes or for any other purpose.

                "EMPLOYER" means Forward Air Corporation ("Forward Air"), all
        subsidiaries and affiliates of Forward Air that would be treated as a
        single employer under Code Sections 414(b) and (c), and any
        Participating Employers.

                "ERISA" means Public Law 93-406, the Employee Retirement Income
        Security Act of 1974, 29 U.S.C. ss. 1001 et seq., as amended.

                "FLEXIBLE PAY" means the amount of a Participant's compensation
        that, pursuant to Section 4.1, is applied on behalf of the Participant
        to pay his Premiums for Pre-Tax Benefits or that (to the extent not
        otherwise applied) he may elect to receive as additional cash
        compensation. For each Participation Year, the maximum amount of
        Flexible Pay available to any Participant for application to his
        Premiums under the Plan shall be the sum of the costs of all Pre-Tax
        Benefits available to any Participant under the Plan.

                "FMLA LEAVE" means a leave of absence that the Employer is
        required to allow by the terms of the Family and Medical Leave Act.

                "HEALTH BENEFITS" means for purposes of COBRA continuation
        coverage under Code Section 4980B or ERISA Section 601 et seq., a "group
        health plan" as defined in ERISA Section 607(1). For purposes of FMLA
        Leave, "Health Benefits" means a "group health plan" as defined in
        Section 104(c)(1) of the Family and Medical Leave Act of 1993, 29 U.S.C.
        ss.ss. 2601 et. seq. For all other purposes under this

                                       3
<PAGE>

        Plan, the term "Health Benefits" means a "health plan" within the
        meaning of proposed Treasury Regulation Section 1.125-2, Q&A-6,
        comparable or succeeding provisions of any proposed regulations that
        amend, supplement, or replace such section or parallel provisions of
        final regulations issued pursuant to Code Section 125.

                "HEALTH PLAN" means Forward Air Corporation Health and Dental
        Care Benefit Plan.

                "PARTICIPANT" means an Eligible Employee who has commenced
        participation in the Plan and has not terminated participation as
        provided in Section 2.1 with respect to all benefits other than the
        cafeteria plan benefits and as provided in Section 3.1 with respect to
        the cafeteria plan benefits.

                "PARTICIPATING EMPLOYER" means any other corporations or
        entities that adopt this Plan in accordance with Section 8.12.

                "PARTICIPATION YEAR" with respect to any Participant means the
        twelve-month period beginning on February 1 and ending on the following
        January 31.

                "PLAN" means the Forward Air Corporation Section 125 Plan as set
        forth herein, together with any and all amendments and supplements
        thereto.

                "PLAN YEAR" means the twelve-month period beginning each January
        1 and ending on the following December 31.

                "PREMIUMS" means the amount the Participant is required or
        elects to pay for the benefits under the Plan.

                "PRE-TAX BENEFITS" means the benefits a Participant may elect to
        receive on a pre-tax basis through the Plan and that are listed in
        Appendix A.

                                   ARTICLE II

                    ELIGIBILITY, PARTICIPATION, AND BENEFITS

        2.1 GENERAL. With respect to each of the benefits offered under the
Plan, the applicable Benefit Description shall determine an Eligible Employee's
or Dependent's:

                                       4
<PAGE>

                (A) Eligibility to participate;

                (B) Commencement, recommencement, and termination of
        participation; and

                (C) Terms of Coverage.

        2.2 INCORPORATION BY REFERENCE. This Plan shall constitute the Plan
document for each of the benefits listed in Appendix A. The terms of the Benefit
Descriptions are incorporated into this Plan as if those terms were fully set
forth in this Plan document.

        2.3 PREMIUMS. The Participant shall pay on a pre-tax basis the cost (if
any) of any Pre-Tax Benefit he chooses under this Plan. The Participant shall
pay on an after-tax basis the cost (if any) of any other benefits he chooses
under this Plan.

                                   ARTICLE III

                          PARTICIPATION AND ENROLLMENT

        3.1 PARTICIPATION.

                (A) COMMENCEMENT OF PARTICIPATION. An Eligible Employee shall
        commence (or recommence) participation in the Plan on the later of the
        Effective Date or the date he commences or recommences participation in
        any of the benefits listed in Appendix A.

                (B) NO AFTER-TAX OPTION FOR PRE-TAX BENEFITS. If an Eligible
        Employee chooses to participate in a Pre-Tax Benefit and if the Eligible
        Employee is receiving remuneration from the Employer from which Premiums
        can be deducted, the Eligible Employee shall be deemed to have elected
        to pay the Premium for that Pre-Tax Benefit on a pre-tax basis through
        the Plan. An Eligible Employee shall not have the option of paying the
        Premium for any of the Pre-Tax Benefits on an after-tax basis unless the
        individual is not receiving remuneration from the Employer from which
        the Premiums may be deducted. Otherwise, all such Premiums for Pre-Tax
        Benefits must be paid on a pre-tax basis under this Plan.

                (C) TERMINATION OF PARTICIPATION. A Participant shall continue
        to participate in the Plan until the Participant terminates
        participation in all of the benefits offered under the Plan. However,
        any such Participant

                                       5
<PAGE>

        who otherwise would terminate participation may elect to remain a
        Participant under the limitations and conditions set forth in Section
        3.6.

                (D) TERMS AND CONDITIONS OF PARTICIPATION. Additional terms and
        conditions governing eligibility for, participation and termination of
        participation in, and the terms of each of the benefits offered under
        the Plan are set forth in the applicable Benefits Description.

       3.2 ENROLLMENT. An Eligible Employee may enroll in, re-enroll in, or
change his or her benefit elections by submitting to the Administrator an
enrollment form that specifies the benefits he has chosen for the Participation
Year, which will constitute his agreement to use the necessary part of his
Flexible Pay or other compensation to pay any Premiums and that meets such other
standards for completeness and accuracy the Administrator establishes. The
enrollment form must be submitted during an enrollment period described in
Section 3.4 below. A Participant's enrollment form shall not be effective before
the date such form is submitted to the Administrator. An Eligible Employee may
not enroll in a benefit unless he meets the eligibility requirements applicable
to that benefit.

        3.3 TERMINATION OF ENROLLMENT. A Participant who enrolls in any of the
Pre-Tax Benefits must maintain that coverage in effect until the end of the
Participation Year, except that any enrollment form submitted by a Participant
in accordance with this Article III shall remain in effect until the earlier of:

                (A) The date the Participant terminates participation in all of
        the benefits provided under the Plan;

                (B) The effective date (as determined by the Administrator) of a
        subsequently filed enrollment form as provided in Section 3.4; or

                (C) The date the Plan no longer offers any benefits.

        3.4 ENROLLMENT PERIODS.

                (A) INITIAL ENROLLMENT PERIOD. An Eligible Employee shall have
        an initial enrollment period that begins on the first day he becomes an
        Employee. An Eligible Employee's initial enrollment period ends on the
        first day of the month after the date (or on the date) the Eligible
        Employee completes 90 consecutive days of employment as an Eligible
        Employee. Enrollment forms submitted during an initial enrollment period
        are effective as of the last day of the initial enrollment period.

                (B) FAILURE TO ENROLL - INITIAL ENROLLMENT. An Eligible Employee
        who fails to return a completed enrollment form to the Administrator on

                                       6
<PAGE>

        or before the specified due date for his initial enrollment period shall
        be deemed to have elected for the remainder of the Participation Year to
        receive the same benefits (if any) as the Eligible Employee received
        from the Employer during the preceding Participation Year. Thus, a newly
        hired Employee who fails to return a completed enrollment form before
        the end of his initial enrollment period will be deemed to have elected
        not to participate in the Plan and shall receive no benefits under the
        Plan for the remainder of the Participation Year. Likewise, an Employee
        who, prior to his initial enrollment period, received none of the
        benefits offered under the Plan and who fails to return a completed
        enrollment form before the end of his initial enrollment period will be
        deemed to have elected not to participate in the Plan and shall receive
        no benefits under the Plan for the remainder of the Participation Year.

                (C) ANNUAL ENROLLMENT PERIOD. Each Eligible Employee shall have
        an annual enrollment period during which to make elections for each
        Participation Year. The Administrator will designate an annual
        enrollment period for each Participation Year before the first day of
        that Participation Year. The annual enrollment period for any
        Participation Year shall terminate on the date specified by the
        Administrator, but not later than the last day of the immediately
        preceding Participation Year. Enrollment forms submitted during an
        annual enrollment period shall be effective on the first day of the next
        Participation Year.

                (D) FAILURE TO ENROLL - ANNUAL ENROLLMENT. An Eligible Employee
        failing to return a completed enrollment form to the Administrator on or
        before the specified due date for an annual enrollment period for any
        subsequent Participation Year shall be deemed to have made the same
        benefit choices (if any) as were in effect just before the end of the
        preceding Participation Year. A Participant shall also be deemed to have
        authorized the Administrator to withhold from his compensation an amount
        of Flexible Pay or other compensation equal to his Premiums for the
        benefits chosen.

                (E) SPECIAL ENROLLMENT PERIOD. If a Participant incurs a special
        enrollment event as defined below, then with respect to the Health Plan
        only, the Participant will have a special enrollment period that begins
        on the date of the special enrollment event and ends 30 days later.
        Enrollment forms submitted during a special enrollment period shall be
        effective as of the first day of the calendar month coinciding with or
        immediately following the date the special enrollment form is submitted;
        except that in the case of a Dependent's birth, such form shall be
        effective as of the date of the birth; and in the case of a Dependent's

                                       7
<PAGE>

        adoption or placement for adoption, such form shall be effective as of
        the date of such adoption or placement for adoption.

                        (1) SPECIAL ENROLLMENT EVENT: LOSING OTHER COVERAGE. An
                Eligible Employee who is not enrolled in the Health Plan (or a
                Dependent of such an Eligible Employee if the Dependent is
                eligible but not enrolled in the Health Plan) may enroll in the
                Health Plan if the following conditions are met:

                                (I) The Eligible Employee or Dependent was
                        covered under a group health plan or had health
                        insurance coverage at the time coverage was previously
                        offered to the Eligible Employee or Dependent.

                                (II) The Eligible Employee or Dependent stated
                        in writing at the time coverage was previously offered
                        to the Eligible Employee or Dependent that coverage
                        under a group health plan or health insurance coverage
                        was the reason the Eligible Employee declined
                        enrollment.

                                (III) The Eligible Employee's or Dependent's
                        coverage described in paragraph (i):

                                        (A) Was under a COBRA continuation
                                provision and the coverage under such provision
                                was exhausted; or

                                        (B) Was not under such a provision and
                                either the coverage was terminated as a result
                                of loss of eligibility for coverage (including
                                as a result of legal separation, divorce, death,
                                termination of employment, or reduction in the
                                number of hours of employment), or contributions
                                toward such coverage were terminated by the
                                sponsor (reasons that are not acceptable are
                                failure to pay on a timely basis or termination
                                of other coverage for cause (such as making a
                                fraudulent claim or an intentional
                                misrepresentation of a material fact in
                                connection with said plan)).

                                       8
<PAGE>

                        (2) SPECIAL ENROLLMENT EVENT: NEW DEPENDENTS. If an
                individual becomes a Dependent of an Eligible Employee through
                marriage, birth, adoption, or placement for adoption, the
                Dependent (or, if the Eligible Employee is not otherwise
                enrolled, the Eligible Employee) may be enrolled in the Health
                Plan as a Dependent and/or Eligible Employee. In the case of the
                birth or adoption of a child, the spouse of the Eligible
                Employee may be enrolled as a Dependent of the Eligible Employee
                if the spouse is otherwise eligible for coverage.

                        (3) EFFECTIVE DATE OF COVERAGE. Enrollment forms
                submitted during a special enrollment period shall be effective
                as of the first day of the calendar month coinciding with or
                immediately following the date the special enrollment form is
                submitted except that:

                                (I) In the case of marriage, coverage will be
                        effective as of the date the completed request is
                        received;

                                (II) In the case of a Dependent's birth,
                        coverage will be effective as of the date of the birth;
                        and

                                (III) In the case of a Dependent's adoption or
                        placement for adoption, coverage will be effective as of
                        the date of such adoption or placement for adoption.

                (F) CHANGE IN STATUS ENROLLMENT PERIOD. If a Participant incurs
        a Change in Status, and the consistency rules in Section 3.4(g) have
        been met, such Participant shall have a Change in Status enrollment
        period that begins on the date of such event and terminates 30 days
        following such event. If the Change in Status event results in the
        individual gaining or losing coverage under a spouse's or a Dependent's
        employer's plan, then the 30-day Change in Status enrollment period
        will not begin until the date the individual gains or loses such other
        coverage. Enrollment forms submitted during a Change in Status
        enrollment period shall be effective as of the first day of the calendar
        month coinciding with or immediately following the date the Change in
        Status enrollment form is submitted.

                                       9
<PAGE>

                (G) CONSISTENCY RULES FOR CHANGE IN STATUS. The enrollment
        change under Section 3.4(f) must be on account of and correspond with
        the Change in Status that affects eligibility for coverage. A Change in
        Status that affects eligibility for coverage also includes a Change in
        Status that results in an increase or decrease in the number of an
        Eligible Employee's family members or Dependents who may benefit from
        coverage.

                        (1) CONSISTENCY RULE - ACCIDENT OR HEALTH INSURANCE
                COVERAGE - ENROLLMENT CHANGE ONLY FOR AFFECTED DEPENDENT. If the
                Change in Status is the Eligible Employee's divorce, annulment,
                or legal separation from a spouse, death of a spouse or
                Dependent, or a Dependent ceasing to satisfy the eligibility
                requirements for coverage, an Eligible Employee's election under
                the Plan to cancel accident or health insurance coverage (as
                that term is used in Treas. Reg. ss. 125-4(c)(3)(iii)) for any
                individual other than the spouse involved in the divorce,
                annulment, or separation; the deceased spouse or Dependent; or
                the Dependent that ceased to satisfy the eligibility requirement
                for coverage shall not satisfy the consistency rules.

                        (2) GAINING ELIGIBILITY UNDER FAMILY MEMBER'S PLAN. If
                an Eligible Employee, spouse, or Dependent gains eligibility for
                coverage under a family member's plan as a result of a change in
                marital status or a change in employment status, an Eligible
                Employee's election under the Plan to cease or decrease coverage
                for that individual under the Plan shall not satisfy the
                consistency rules unless the coverage for that individual
                becomes applicable or is increased under the family member's
                plan.

                        (3) COBRA CONTINUATION COVERAGE. If the Eligible
                Employee, spouse, or Dependent becomes eligible for continuation
                coverage under the Health Plan as provided in Code Section 4980B
                or any similar state law, the Participant may choose to increase
                payments under the Plan to pay for the continuation coverage.

                (H) CHANGE IN ENROLLMENT - JUDGMENT, DECREE, OR ORDER. This
        Section 3.4(h) applies in the case of a judgment, decree, or order
        resulting from a divorce, legal separation, annulment, or change in
        legal custody that meets the requirements of a qualified medical child
        support order ("QMCSO") as defined in ERISA Section 609 that requires
        health

                                       10
<PAGE>

        coverage for an Eligible Employee's child or for a foster child who is a
        Dependent of the Eligible Employee. The Eligible Employee may:

                        (1) Change his enrollment to provide coverage for the
                child if the QMCSO required coverage for the child under the
                Health Plan; or

                        (2) Make a change to cancel coverage for the child if
                the QMCSO required the spouse, former spouse, or other
                individual to provide coverage for the child, and such coverage
                is provided for the child pursuant to the QMCSO.

        An Eligible Employee must make any enrollment change pursuant to this
        Section 3.4(h) within 31 days after the order is approved by the plan to
        which the order applies.

                (I) MEDICARE, MEDICAID, OR OTHER COVERAGE SPONSORED BY A
        GOVERNMENTAL OR EDUCATIONAL INSTITUTION.

                        (1) GAINING COVERAGE UNDER MEDICARE OR MEDICAID. If an
                Eligible Employee, spouse, or Dependent is enrolled in the
                Health Plan and becomes enrolled under Part A or Part B of Title
                XVIII of the Social Security Act (Medicare) or Title XIX of the
                Social Security Act (Medicaid), other than coverage consisting
                solely of benefits under Section 1928 of the Social Security Act
                (the program for distribution of pediatric vaccines), the
                Eligible Employee may make a prospective enrollment change to
                cancel or reduce coverage under the Health Plan for that
                Eligible Employee, spouse, or Dependent.

                        (2) LOSING MEDICARE, MEDICAID, OR OTHER COVERAGE
                SPONSORED BY A GOVERNMENTAL OR EDUCATIONAL INSTITUTION. In
                addition, if an Eligible Employee, spouse, or Dependent who has
                been entitled to such coverage under Medicare, Medicaid, or
                other coverage sponsored by a governmental or educational
                institution (such as a state children's health insurance
                program) loses eligibility for such coverage, the Eligible
                Employee may make a prospective enrollment change to commence or
                increase coverage of that Eligible Employee, spouse, or
                Dependent under the Health Plan.

                        (3) ENROLLMENT CHANGES. An Eligible Employee must make
                any enrollment changes pursuant to this

                                       11
<PAGE>

                Section 3.4(i) within 31 days after the Eligible Employee,
                spouse, or Dependent gains or loses coverage (as applicable) as
                described in paragraphs (1) and (2) above.

                (J) CHANGE IN ENROLLMENT - FMLA LEAVE. If the Participant takes
        FMLA Leave, the Participant may revoke his Pre-Tax Benefit enrollments
        within 14 days of taking leave or before the end of the leave, whichever
        is earlier. The Participant also may choose to be reinstated in his
        enrollments under the Plan when the Participant returns from FMLA Leave.
        Before beginning unpaid FMLA Leave, the Participant may prepay on a
        pre-tax or after-tax basis the Premiums for a Pre-Tax Benefit that would
        be due during the FMLA Leave for coverage under the Health Benefits.
        However, the Participant may not prepay Premiums that would be due for a
        future Participation Year. Alternatively, the Participant may choose to
        have these Premiums deducted from any sick pay or vacation pay the
        Participant receives during the FMLA Leave or the Participant may make
        payments during unpaid FMLA Leave on an after-tax basis.

        3.5 LIMITATION ON ENROLLMENT CHANGES. A Participant's right to enroll in
certain benefit coverage shall be additionally limited to the extent such rights
are limited in the applicable benefit or in rules adopted by the Administrator
pursuant to a written procedure. Furthermore, a Participant shall not be
entitled to revoke an enrollment choice after a Participation Year has commenced
and to make a new enrollment choice with respect to the remainder of the
Participation Year except as provided in Section 3.4.

        3.6 COBRA COORDINATION. Any Participant or Dependent who is a qualified
beneficiary (as defined in Code Section 4980B(g)(1) or ERISA Section 607(3)) and
is actually participating in the Health Benefits on the date of qualifying event
(as defined in Code Section 4980B(f)(3) or ERISA Section 603) shall have the
right to choose the continuation group health coverage that is required under
Code Section 4980B or ERISA Sections 601 et seq. Such continuation coverage
shall be provided by the Health Benefits in the manner provided in the
applicable Benefit Description. Any such qualified beneficiary actually choosing
such continuation coverage will, during the period of such coverage, have the
same right as Participants to change his enrollments under the Health Benefits.

                                   ARTICLE IV

                                  CONTRIBUTIONS

        4.1 CONTRIBUTIONS WITHHELD. Each Participant shall be deemed to have
authorized the Administrator to withhold from his compensation for the
Participation

                                       12
<PAGE>

Year an amount of Flexible Pay or other compensation equal to his Premiums for
the benefits elected for such Participation Year.

                (A) EQUAL INSTALLMENTS. Any amounts that are withheld from a
        Participant's compensation pursuant to this Section shall be withheld in
        approximately equal installments during the Participation Year as the
        Administrator designates.

                (B) COMPENSATION PAYABLE OVER LESS THAN ONE YEAR. For an
        Eligible Employee whose compensation during the year is payable to him
        over a period of time less than a year, Flexible Pay amounts will be
        withheld in approximately equal installments over such period.

                (C) PARTICIPATION DURING PARTICIPATION YEAR. If an Eligible
        Employee becomes a Participant after the beginning of the first pay
        period of the Participation Year, the amount withheld from his
        compensation during such year shall be a pro rata share of the amount
        that would have been withheld had he been a Participant in the Plan as
        of the beginning of the Participation Year.

        4.2 CARRYOVER PROHIBITED. In no event may an Eligible Employee carry
over unused Flexible Pay from one Participation Year to the next. An Eligible
Employee may not use contributions for one Participation Year to purchase
Pre-Tax Benefits that will be provided in a subsequent Participation Year.

        4.3 ENROLLMENT. An Eligible Employee's enrollment under Section 4.1 to
authorize withholding of Flexible Pay shall be made on an enrollment form
submitted in accordance with Section 3.2.

        4.4 PREMIUM REBATES AND POLICY DIVIDENDS. The Administrator, in its sole
discretion, may pay to Participants reasonable premium rebates and policy
dividends with respect to benefits provided under the Plan. Any such rebates or
dividends must be paid before the close of the 12-month period immediately
following the year to which such rebate and dividend relates.

        4.5 EFFECT OF CHANGE IN DEPENDENT STATUS. If a Participant makes an
enrollment change during the Participation Year pursuant to Section 3.4, then in
accordance with written rules adopted by the Administrator, appropriate
adjustments shall be made in the amount withheld from or added to the
Participant's pay for the balance of the Participation Year to reflect any
changes in the Participant's enrollments under the Plan.

        4.6 CASH BENEFIT. Any Flexible Pay not expended to purchase Pre-Tax
Benefits shall be considered a cash benefit under the Plan payable to the
Participant.

                                       13
<PAGE>

        4.7 COST CHANGES.

                (A) AUTOMATIC CHANGES. If the cost of a benefit under the Plan
        increases or decreases during the Participation Year, a corresponding
        change will automatically be made in the Participants' Premiums under
        the Plan.

                (B) SIGNIFICANT COST INCREASES/DECREASES. If the Administrator
        determines that the cost of a Pre-Tax Benefit or of a benefit package
        option significantly increases or decreases during a Participation Year,
        the Administrator may permit Participants either to make a corresponding
        prospective increase in their Premiums or to revoke their enrollment
        choice and, in lieu thereof, to receive on a prospective basis coverage
        under another Pre-Tax Benefit or benefit package option providing
        similar coverage. If another Pre-Tax Benefit or benefit package option
        does not provide similar coverage, the Administrator may permit
        Participants to cancel coverage. If there is a significant decrease in
        the cost of a Pre-Tax Benefit or benefit package option, all Eligible
        Employees shall be given the right to enroll in the Plan at that time,
        regardless of whether they have declined enrollment in the past.

        4.8 COVERAGE CHANGES.

                (A) SIGNIFICANT IMPROVEMENT/CURTAILMENT. If the coverage under a
        Pre-Tax Benefit or benefit package option is significantly improved or
        curtailed or if a new benefit package option is offered during a
        Participation Year, the Administrator may permit affected Participants
        to revoke such Pre-Tax Benefit enrollment choice under the Plan. In that
        case, each affected Participant must make a new enrollment on a
        prospective basis for coverage under another Pre-Tax Benefit or benefit
        package option providing similar coverage. Coverage under the Health
        Plan is significantly curtailed only if there is an overall reduction in
        coverage provided to Participants under the Health Plan so as to
        constitute reduced coverage to Participants generally. If the coverage
        under a Pre-Tax Benefit or benefit package option is significantly
        curtailed resulting in a loss of coverage, the Administrator may permit
        Participants to cancel coverage. A loss of coverage shall mean a
        complete loss of coverage under the Pre-Tax Benefit or benefit package
        option, such as a health maintenance organization ceasing to be
        available in the area where the Participant, his spouse, or Dependent
        reside; losing all coverage by reason of an overall lifetime or annual
        limitation; a substantial decrease in medical care providers; a
        reduction in the benefits for a specific type of medical condition or
        treatment with respect to which the Participant, the Participant's
        spouse, or Dependent

                                       14
<PAGE>

        is currently in a course of treatment; or any other similar fundamental
        loss of coverage as determined by the Administrator.

                (B) ADDITION OR ELIMINATION OF BENEFIT PACKAGE OPTION PROVIDING
        SIMILAR COVERAGE. If during a Participation Year, the Plan adds a new
        Pre-Tax Benefit or if a benefit package option or other coverage option
        is added to an existing Pre-Tax Benefit (or if an existing benefit
        package option or other coverage option is eliminated from an existing
        Pre-Tax Benefit or a Pre-Tax Benefit is eliminated from the Plan), the
        Administrator may permit affected Participants to choose the newly added
        option or Pre-Tax Benefit (or choose another option or Pre-Tax Benefit
        if an option or Pre-Tax Benefit has been eliminated) prospectively on a
        pre-tax basis and make corresponding enrollment changes with respect to
        the other benefit package options providing similar coverage.

                (C) CHANGE IN COVERAGE UNDER OTHER EMPLOYER'S PLAN. A
        Participant may make a prospective enrollment change that is on account
        of and corresponds with a change made under another employer's plan if:

                        (1) ELECTIVE CHANGE UNDER OTHER PLAN. A cafeteria plan
                or qualified benefits plan permits an election change that would
                be permitted under the cafeteria plan regulations; or

                        (2) DIFFERENT PERIODS OF COVERAGE. The Participation
                Year under the Plan is different from the period of coverage
                under the cafeteria plan or qualified benefits plan.

                                    ARTICLE V

                                 ADMINISTRATION

        5.1 ALLOCATION OF RESPONSIBILITY. The following persons shall have only
those powers, duties, responsibilities, and obligations specifically given or
delegated to them under the Plan.

                (A) Forward Air shall have the sole authority to appoint and
        remove the Administrator, and to amend or terminate the Plan in whole or
        in part.

                                       15
<PAGE>

                (B) The Administrator shall have the sole responsibility for
        administering the Plan, which responsibility is specifically described
        herein.

        5.2 ADMINISTRATION. The Plan shall be administered by the Administrator
which may appoint or employ persons to assist in administering the Plan and may
appoint or employ any other agents it deems advisable, including legal counsel,
actuaries, auditors, bookkeepers, and recordkeepers to serve at the
Administrator's direction.

        5.3 EXPENSES. All usual and reasonable expenses of the Plan and the
Administrator may be paid by the Employer, but the Employer shall not be
obligated to do so.

        5.4 DENIAL OF CLAIMS. The Administrator, or a party designated by the
Administrator, shall make all determinations as to the right of any person to
payment or reimbursement under the Plan. If an assertion of any such right by a
Participant or Dependent is wholly or partially denied, the Administrator, or
the designated party, will provide such claimant written notice within 90 days
after receipt of the claim, unless circumstances warrant an extension of time
not to exceed an additional 90 days, setting forth:

                (A) The specific reason or reasons for such denial;

                (B) Specific reference to pertinent Plan provisions on which the
        denial is based;

                (C) A description of any additional material or information the
        claimant must submit to perfect the claim and an explanation of why such
        material or information is necessary; and

                (D) A description of the Plan's claims review procedure. The
        review procedure is available on written request by the claimant to the
        Administrator, or the designated party, within 60 days after receipt by
        the claimant of written notice of the denial of the claim.

        5.5 CLAIMS REVIEW PROCEDURE.

                (A) REQUEST FOR RECONSIDERATION. Any Participant, former
        Participant, or beneficiary of either, who has been denied a benefit by
        a decision of the Administrator pursuant to Section 5.4 is entitled to
        request that the Administrator give further consideration to his claim
        by filing with the Administrator a written request for a review of the
        denial of his claims. The claimant shall file with the Administrator
        such

                                       16
<PAGE>

        request, together with a written statement of the reasons why the
        claimant believes his claim should be allowed, no later than 60 days
        after the claimant receives the written notification provided for in
        Section 5.4. As a condition of coverage and of receiving benefits under
        the Plan, each Participant or beneficiary agrees that requests for
        review received by the Administrator more than 60 calendar days after
        the date of receipt of the claim denial will not be considered. No legal
        recourse will be available after this period. The claimant should
        include in his written appeal the following information to support his
        claim for benefits:

                        (1) A list of which issues, if any, in the claim denial
                that he chooses to contest and that he wishes the Administrator
                to review on appeal;

                        (2) His position on each issue;

                        (3) Any additional facts that he believes support his
                position on each issue; and

                        (4) Any legal or other arguments he believes support his
                position on each issue.

        He may, if he chooses, obtain legal counsel, and he may examine any
        related Plan documents.

                (B) FINAL DECISION. The Administrator shall make a final
        decision as to the allowance of the claim within sixty (60) days of
        receipt of the request for review (unless there has been an extension of
        sixty (60) days due to special circumstances, provided the Administrator
        communicates to the claimant the delay and the special circumstances
        occasioning it within the sixty (60) day period). Such communication
        shall be written in a manner calculated to be understood by the claimant
        and shall include specific reasons for the decision and specific
        references to the pertinent Plan provisions on which the decision is
        based. If the decision on review is not furnished within the time
        period(s) set out above, the claim will be deemed denied on review.

                (C) FURTHER ACTIONS. No legal action related to the Plan to
        recover benefits or with respect to any other matter related to the Plan
        may be commenced before the claimant has timely exhausted the claim and
        claim review procedures described above. In no event may any such action
        be brought more than two (2) years after the claim was first

                                       17
<PAGE>

        incurred or after the occurrence of the event on which the claim is
        based, whichever is earlier.

        5.6 OTHER ADMINISTRATIVE POWERS AND DUTIES. The Administrator shall have
such powers and duties necessary to discharge its functions hereunder, including
the discretionary power to:

                (A) construe and interpret the Plan, decide all questions of
        eligibility for participation or benefits and determine the amount,
        manner, and time of payment of any benefit or reimbursement hereunder;

                (B) prescribe procedures to be followed by Participants choosing
        benefit coverages or filing applications for reimbursements;

                (C) prepare and distribute, in such manner as the Administrator
        determines to be appropriate, information explaining the Plan;

                (D) receive from Employees, agents, and Participants such
        information as is necessary to properly administer the Plan;

                (E) receive, review, and keep on file (as it deems convenient or
        proper) reports of the receipts and disbursements of the Plan;

                (F) appoint or employ individuals or other parties to assist in
        administering the Plan and any other agents it deems advisable,
        including accountants, legal counsel, bookkeepers, and recordkeepers;
        and

                (G) designate or employ persons to carry out any of the
        Administrator's fiduciary duties or responsibilities under the Plan.

The foregoing list is not intended to be complete or all-inclusive. The
Administrator shall have all powers, whether or not expressly authorized, that
it may deem necessary, desirable, or proper for the supervision and
administration of the Plan.

        5.7 RULES AND DECISIONS. The Administrator may adopt such written rules
and procedures as it deems necessary, desirable, or appropriate to administer
the Plan. When making a determination or calculation, the Administrator shall be
entitled to rely on information furnished by a Participant, a Dependent, the
duly authorized representative of a Participant or Dependent, or the legal
counsel of the Administrator.

        5.8 FORMS AND REQUESTS FOR INFORMATION. The Administrator may require a
Participant to complete and file such forms as are provided for herein and all
other

                                       18

<PAGE>

forms prescribed by the Administrator, and to furnish all pertinent information
requested by the Administrator. The Administrator may rely on all such
information, including the Participant's current mailing address.

                                   ARTICLE VI

                              AMENDMENT OF THE PLAN

        Forward Air shall have the right at any time by instrument in writing,
duly executed by an officer of Forward Air, to modify, alter or amend the Plan
in whole or in part, provided, however, that no such amendment shall diminish or
eliminate any claim for any benefit to which a Participant shall have become
entitled before such amendment. Notwithstanding the foregoing, Forward Air shall
have the limited right to amend the Plan at any time, retroactively or
otherwise, in such respects and to such extent as may be necessary to fully
qualify it as a "cafeteria plan" under Code Section 125, and if and to the
extent necessary to accomplish such purpose, may by such amendment decrease or
otherwise affect benefits to which Participants may already have become
entitled.

                                   ARTICLE VII

                             TERMINATION OF THE PLAN

        The Plan herein provided has been established by Forward Air with the
intent that it shall be continued in operation indefinitely. However, Forward
Air reserves the right at any time to terminate the Plan.

                                  ARTICLE VIII

                                  MISCELLANEOUS

        8.1 EMPLOYMENT RIGHTS. Under no circumstances shall the terms of
employment of any Participant be modified or in any way affected hereby. The
Plan shall not constitute a contract of employment nor afford any individual any
right to be retained in the employ of the Employer.

        8.2 SPENDTHRIFT CLAUSE. To the extent permitted by law, Participants are
prohibited from anticipating, encumbering, alienating or assigning any of their
rights, claims or interest in the Plan, and no undertaking or attempt to do so
shall in any way bind the Administrator or be of any force or effect whatsoever.
Furthermore, to the extent permitted by law, no such rights, claims, or interest
of a Participant in this Plan

                                       19
<PAGE>

shall in any way be subject to such Participant's debts, contracts, or
engagements, nor to attachment, garnishment, levy, or other legal or equitable
process. Notwithstanding anything herein to the contrary and to the extent
permissible under applicable law, a Participant's interest hereunder is subject
to all bona fide and existing debts owed by such Participant to the Plan.

        8.3 NO GUARANTEE OF NONTAXABILITY. The Plan is designed and is intended
to be operated as a group life insurance plan, an accident and health plan, and
a cafeteria plan, under Code Sections 79, 105, 106, and 125. Nonetheless,
neither the Employer nor the Administrator shall in any way be liable for any
taxes or other liability incurred by a Participant or anyone claiming through
him by virtue of participation in the Plan. The Plan does not prohibit the
payment of taxable benefits under the Plan.

        8.4 CAFETERIA PLAN NONDISCRIMINATION. In accordance with and to the
extent it is consistent with Code Section 125:

                (A) The Plan is intended not to discriminate in favor of "highly
        compensated individuals" as to eligibility to participate or in favor of
        "highly compensated participants" as to contributions and benefits nor
        to provide more than 25% of all statutory nontaxable benefits to "key
        employees" (as defined in Code Section 414(i));

                (B) With respect to any Health Benefits provided through the
        Plan, contributions under the Plan on behalf of each Participant are
        intended to include an amount that either:

                        (1) Equals 100 percent of the cost of the Health
                Benefits coverage under the Plan of the majority of the "highly
                compensated participants" similarly situated; or

                        (2) Equals or exceeds 75% of the cost of the Health
                Benefits coverage of the Participant (similarly situated) having
                the highest Health Benefits coverage under the Plan;

        and

                (C) Contributions or benefits under the Plan in excess of those
        described in Section 8.4(b) are intended to bear a uniform relationship
        to compensation.

If, in the operation of the Plan, the standards described above are not met (or
are in danger of not being met), then, notwithstanding any other provision
contained herein,

                                       20
<PAGE>

the Administrator shall reduce or adjust such contributions and/or benefits
under the Plan as may be necessary to assure that, in the judgment of the
Administrator, the Plan thereafter will meet the standards described above. All
rules, procedures, and decisions of the Administrator shall be adopted, made,
and/or applied in such fashion that they do not discriminate in favor of "highly
compensated individuals," "highly compensated participants," or "key employees"
contrary to Code Section 125.

        8.5 HEALTH CARE NONDISCRIMINATION. In accordance with Code Section
105(h), the Health Plan is intended not to discriminate in favor of "highly
compensated individuals (as defined in Code Section 105(h)(5)) as to eligibility
to participate or as to benefits. If, in the operation of the Health Plan, these
standards are not met (or are in danger of not being met), then, notwithstanding
any other provision contained herein, the Administrator shall reduce or adjust
such contributions and/or benefits under the Health Plan as may be necessary to
assure that, in the judgment of the Administrator, the Health Plan thereafter
will meet the standards described above. All rules, procedures, and decisions of
the Administrator shall be adopted, made, and/or applied in such fashion that
they do not discriminate in favor of "highly compensated employees" contrary to
Code Section 105(h).

        8.6 DELEGATION OF AUTHORITY. Whenever Forward Air, the Employer, or the
Administrator under the terms of this Plan is permitted or required to do or
perform any act, matter or thing, it shall be done and performed by any officer
or individual thereunto duly authorized by Forward Air, the Employer, or the
Administrator.

        8.7 HEADINGS AND CONSTRUCTION. The headings of sections and subsections
are for ease of reference only and shall not be construed to limit or modify the
detailed provisions herein. As used in the Plan, the masculine gender includes
the feminine gender, and the singular includes the plural, unless the context
clearly indicates otherwise. The words "hereof," "hereunder," and other similar
compounds of the word "here" mean and refer to the entire Plan, not to any
particular provision or section.

        8.8 ENTIRE PLAN STATED. This document sets forth the entire Plan.

        8.9 APPLICABLE LAW. This Plan shall be construed according to the laws
of the State of Tennessee except where preempted by federal law, and all
provisions hereof shall be administered according to, and its validity and
enforceability shall be determined under, the laws of Tennessee except where
preempted by the Code, ERISA or other federal law. This Agreement shall be
performable in Greeneville, Tennessee.

        8.10 EXCLUSIVE BENEFIT RULE. This Plan is maintained for the exclusive
benefit of Employees. Except as otherwise specifically permitted by law, it
shall be impossible by operation of the Plan or by termination of the Plan, by
power of

                                       21
<PAGE>

revocation or amendment, by the happening of any contingency, by collateral
arrangement or by any other means, for any part of the corpus or income of the
Plan or any funds contributed thereto to be used for, or diverted to, purposes
other than the exclusive benefit of Participants or their Dependents. Under no
circumstances may any assets of the Plan revert or inure to the benefit of the
Employer.

        8.11 COMMUNICATION TO EMPLOYEES. Promptly after the Plan is adopted, the
Administrator will notify all Employees of the availability and terms of the
Plan.

        8.12 ADOPTION BY OTHER EMPLOYERS. Notwithstanding anything herein to the
contrary, with the consent of the Administrator, any other corporation or
entity, whether an affiliate or subsidiary or not, may adopt this Plan and all
of the provisions hereof, and participate herein and be known as a Participating
Employer. Such adoption shall be by a properly executed document evidencing said
intent and will of such Participating Employer.

                                   ARTICLE IX

                                    SIGNATURE

        ADOPTION BY FORWARD AIR. This Plan is hereby established, executed, and
effective as of January 1, 2002, by a duly authorized officer of Forward Air.

                                           Forward Air Corporation

                                       By: /s/ Andrew C. Clarke
                                           ------------------------------

                                       22

<PAGE>

                                   APPENDIX A
                             FORWARD AIR CORPORATION
                                SECTION 125 PLAN

The Plan provides the following benefits, the terms of which are described in
the document(s) identified opposite each benefit:

<TABLE>
<CAPTION>
                                 DOCUMENT(S) DESCRIBING THE
                                 TERMS OF THE WELFARE PROGRAM               PRE-TAX
       BENEFITS                  (I.E., BENEFIT DESCRIPTIONS)               BENEFIT
       --------                  ----------------------------               -------
<S>                              <C>                                   <C>
GROUP HEALTH COVERAGE            Forward Air Corporation Health               Yes
Self-Funded                      and Dental Benefit Plan

GROUP DENTAL COVERAGE            Forward Air Corporation Health               Yes
Self-Funded                      and Dental Benefit Plan

OTHER INSURANCE OPTIONS

Employee Group Life and          Provident Life and Accident                  Yes
Accidental Death and             Insurance Company                     (with respect
Dismemberment Insurance          Certificate of Insurance for Group    to the first
                                 Policy No. 127906-0001                $50,000 of
                                                                       coverage)

Dependent Group Life             Provident Life and Accident                  No
 Insurance                       Insurance Company
                                 Certificate of Insurance for Group
                                 Policy No.127906-0001

Short Term Disability            UNUM Life Insurance Company of               No
                                 America Certificate of Coverage for
                                 Policy No. 536982-011
</TABLE>

                                       23

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