Document:

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                                                                   EXHIBIT 10.18

                               SECURITY AGREEMENT

                  THIS SECURITY AGREEMENT (as the same may be amended, restated,
supplemented or otherwise modified from time to time,"Agreement"), dated as of
August 15, 2000, 2000, is made by UNION-TRANSPORT CORPORATION, a New York
corporation ("Borrower"), UNION-TRANSPORT (U.S.) HOLDINGS, INC., a Delaware
corporation ("UT Holdings"), UNION-TRANSPORT BROKERAGE CORPORATION, a California
corporation ("UT Brokerage"), UT SERVICES, INC., a California corporation ("UT
Services"), UNION-TRANSPORT LOGISTICS INC., a Delaware corporation ("UT
Logistics"), and VANGUARD CARGO SYSTEMS, INC., a New York corporation ("UT
Vanguard") (Borrower, UT Holdings, UT Brokerage, UT Services, UT Logistics and
UT Vanguard being referred to collectively as "Grantors" and each individually
as a "Grantor"); in favor of GENERAL ELECTRIC CAPITAL CORPORATION, a New York
corporation, as agent (in such capacity, "Agent") for the lenders ("Lenders")
from time to time a party to the Credit Agreement (as defined below).

                                    RECITALS

                  A. Pursuant to that certain Credit Agreement of even date
herewith by and among Grantors, Agent and Lenders (including all annexes,
exhibits and schedules thereto, as the same may be amended, restated,
supplemented or otherwise modified from time to time, the "Credit Agreement"),
Lenders have agreed to extend certain financial accommodations to or for the
direct or indirect benefit of Grantors.

                  B. In order to induce Agent and Lenders to enter into the
Credit Agreement and the other Loan Documents and to induce Agent and Lenders to
extend the financial accommodations as provided for in the Credit Agreement,
Grantors have agreed to grant a continuing Lien on the Collateral to secure the
Obligations (each as hereinafter defined). These recitals shall be construed as
part of this Security Agreement.

                                    AGREEMENT

                  NOW, THEREFORE, in consideration of the premises and of the
mutual covenants herein contained and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, Grantors and Agent
agree as follows:

         1. DEFINED TERMS. Unless otherwise defined herein, capitalized terms or
matters of construction defined or established in Annex A to the Credit
Agreement shall be applied herein as defined or established therein. All other
undefined terms contained in this Agreement, unless the context indicates
otherwise, shall have the meanings provided for by the Code to the extent the
same are used or defined therein.

         2. GRANT OF LIEN.

                  (a) To secure the prompt and complete payment, performance and
observance of all of the Obligations, each Grantor hereby grants, assigns,
conveys, mortgages, pledges, hypothecates and transfers to Agent, for the
benefit of Agent and Lenders, a Lien upon all of its right, title and interest
in, to and under the following property, whether now owned by or owing to, or
hereafter acquired by or arising in favor of, such Grantor (including under any
trade names, styles

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or derivations of such Grantor), and whether owned by or consigned by or to, or
leased from or to, such Grantor, and regardless of where located (all of which
being hereinafter collectively referred to as the "Collateral"):

                           (i)      all Accounts;

                           (ii)     all Chattel Paper;

                           (iii)    all Contracts;

                           (iv)     all Documents;

                           (v)      all Equipment;

                           (vi)     all Fixtures;

                           (vii)    all General Intangibles;

                           (viii)   all Goods;

                           (ix)     all Instruments and letters of credit;

                           (x)      all Inventory;

                           (xi)     all Investment Property;

                           (xii)    all Letter of Credit rights;

                           (xiii)   all Supporting Obligations;

                           (xiv)    all Blocked Accounts, all Lock Boxes, all
                                    Concentration Accounts, all Disbursement
                                    Accounts, and all other Deposit Accounts and
                                    all deposits therein;

                           (xv)     all money, cash or cash equivalents of any
                                    Grantor; and

                           (xvi)    to the extent not otherwise included, all
                                    Proceeds and products of the foregoing and
                                    all accessions to, substitutions and
                                    replacements for, and rents and profits of,
                                    each of the foregoing.

Notwithstanding the generality of the foregoing, the "Collateral" shall not
include: (A) Contracts or General Intangibles to the extent the granting of a
security interest therein (1) is contrary to applicable law or (ii) is
prohibited by or would constitute a default under any agreement or document
governing any such Contract or General Intangible (but only to the extent such
prohibition or default is enforceable under applicable law); or (B) any and all
monies collected by Debtor for the sale of air cargo transportation sold on
behalf of the air carriers described in, and pursuant to the terms of, the Cargo
Agency and Authorized Intermediary Agreement between Borrower and The Cargo
Network Services Corporation, as in effect from time to time.

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                  (b) In addition, to secure the prompt and complete payment,
performance and observance of the Obligations and in order to induce Agent and
Lenders as aforesaid, each Grantor hereby grants to Agent, for the benefit of
Agent and Lenders, a right of setoff against the property of such Grantor held
by Agent or any Lender, including all property described above in Section 2(a)
now or hereafter in the possession or custody of or in transit to Agent or any
Lender, for any purpose (including safekeeping, collection or pledge), for the
account of such Grantor, or as to which such Grantor may have any right or
power.

         3.       AGENT'S AND LENDERS' RIGHTS; LIMITATIONS ON AGENT'S AND
                  LENDERS' OBLIGATIONS.

                  (a) It is expressly agreed by each Grantor that, anything
herein to the contrary notwithstanding, such Grantor shall remain liable under
each of its Contracts and each of its Licenses to observe and perform all the
conditions and obligations to be observed and performed by it thereunder.
Neither Agent nor any Lender shall have any obligation or liability under any
such Contract or License by reason of or arising out of this Agreement or the
granting herein of a Lien thereon or the receipt by Agent or any Lender of any
payment relating to any such Contract or License pursuant hereto. Neither Agent
nor any Lender shall be required or obligated in any manner to perform or
fulfill any of the obligations of any Grantor under or pursuant to any such
Contract or License, or to make any payment, or to make any inquiry as to the
nature or the sufficiency of any payment received by it or the sufficiency of
any performance by any party under any such Contract or License, or to present
or file any claims, or to take any action to collect or enforce any performance
or the payment of any amounts that may have been assigned to it or to which it
may be entitled at any time or times.

                  (b) At any time after an Event of Default shall have occurred
and be continuing, (i) Agent may, without prior notice to any Grantor, notify
Account Debtors of such Grantor, parties to the Contracts of such Grantor and
obligors in respect of Instruments and Chattel Paper of such Grantor, that the
Accounts of such Grantor and the right, title and interest of such Grantor in,
to and under such Contracts, Instruments and Chattel Paper have been assigned to
Agent, and that payments shall be made directly to Agent, for the benefit of
Agent and Lenders, and (ii) upon the request of Agent, each Grantor shall so
notify such Account Debtors, parties to such Contracts and obligors in respect
of such Instruments and Chattel Paper.

                  (c) Agent may at any time in Agent's own name, in the name of
a nominee of Agent, or in the name of any Grantor communicate (by mail,
telephone, facsimile or otherwise) with Account Debtors of such Grantor, parties
to Contracts of such Grantor, and obligors in respect of Instruments or Chattel
Paper of such Grantor to verify with such Persons, to Agent's satisfaction, the
existence, amount, terms and any other matter relating to of any such Accounts,
Contracts, Instruments or Chattel Paper. If an Event of Default shall have
occurred and be continuing, each Grantor, at its own expense, shall cause the
independent certified public accountants then engaged by such Grantor to prepare
and deliver to Agent and each Lender at any time and from time to time promptly
upon Agent's request the following reports with respect to such Grantor: (i) a
reconciliation of all Accounts of such Grantor; (ii) an aging of all such
Accounts; (iii) trial balances of such Accounts; and (iv) test verifications of
such Accounts as Agent may request. Each Grantor, at its own expense, shall
deliver to Agent the results of each physical verification, if any, that such
Grantor may in its discretion have made, or caused any other Person to have made
on its behalf, of all or any portion of its Inventory.

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         4. REPRESENTATIONS AND WARRANTIES. Each Grantor represents and warrants
that:

                  (a) Ownership of Collateral. Each Grantor is the sole owner of
each item of the Collateral upon which it purports to grant a Lien hereunder,
and has good and marketable title thereto free and clear of any and all Liens
other than Permitted Encumbrances.

                  (b) Filings. No effective security agreement, financing
statement, equivalent security or Lien instrument or continuation statement
covering all or any part of the Collateral is on file or of record in any public
office, except such as may have been filed (i) by any Grantor in favor of Agent
pursuant to this Agreement or the other Loan Documents, or (ii) in connection
with any other Permitted Encumbrances.

                  (c) Liens. This Agreement is effective to create a valid and
continuing Lien upon the Collateral. Upon filing of appropriate financing
statements in the jurisdictions listed in Schedule I hereto, Agent, for the
benefit of Agent and Lenders, shall have a perfected Lien on the Collateral with
respect to which a Lien may be perfected by filing pursuant to the Code, which
Lien (i) shall be prior to all other Liens, except Permitted Encumbrances that
would be prior to Liens in favor of Agent, for the benefit of Agent and Lenders,
as a matter of law, and (ii) is enforceable as such as against any and all
creditors of, and purchasers from, each Grantor (other than purchasers of
Inventory in the ordinary course of business). All action by each Grantor
necessary or desirable to protect and perfect such Lien on each item of the
Collateral has been duly taken.

                  (d) Instruments. Schedule II hereto lists all Instruments
(other than checks received in the ordinary course of business), letters of
credit and Chattel Paper of each Grantor. All action by each Grantor necessary
or desirable to protect and perfect the Lien in favor of Agent on each item set
forth in Schedule II has been duly taken. The Lien in favor of Agent, for the
benefit of Agent and Lenders, on the Collateral listed in Schedule II hereto is
prior to all other Liens, except Permitted Encumbrances that would be prior to
the Liens in favor of Agent as a matter of law, and is enforceable as such
against any and all creditors of and purchasers from any Grantor. Each Grantor
shall, upon obtaining ownership of any additional Instruments (other than checks
received in the ordinary course of business), letters of credit or Chattel
Paper, promptly (and in any event within three Business Days) deliver to Agent,
for the benefit of Agent and Lenders, all such additional Instruments or Chattel
Paper duly endorsed and all such letters of credit.

                  (e) Locations of Collateral. Each Grantor's chief executive
office, principal place of business, corporate offices, all warehouses and
premises where any item of Collateral is stored or located, and the locations of
all of its books and records concerning the Collateral are set forth in
Disclosure Schedule 3.2 to the Credit Agreement.

                  (f) Accounts. With respect to any Account of any Grantor,
except as specifically disclosed on the most recent Collateral Report delivered
to Agent (i) such Account represents a bona fide sale of Inventory or rendering
of services to the applicable Account Debtor in the ordinary course of such
Grantor's business and is not evidenced by a judgment, Instrument or Chattel
Paper; (ii) there are no setoffs, claims or disputes existing or asserted with
respect thereto and such Grantor has made no agreement with the applicable
Account Debtor for any extension of time for the

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payment thereof, any compromise or settlement for less than the full amount
thereof, any release of such Account Debtor from liability therefor, or any
deduction therefrom except a discount or allowance allowed by such Grantor in
the ordinary course of its business for prompt payment and disclosed to Agent;
(iii) to such Grantor's knowledge, there are no facts, events or occurrences
that in any way impair the validity or enforceability thereof or could
reasonably be expected to reduce the amount payable thereunder as shown on such
Grantor's books and records and any invoices, statements and Collateral Reports
delivered to Agent and Lenders with respect thereto; (iv) such Grantor has
received no notice of proceedings or actions that are threatened or pending
against the applicable Account Debtor that might result in any adverse change in
such Account Debtor's financial condition; and (v) such Grantor has no knowledge
that the applicable Account Debtor is unable generally to pay its debts as they
become due. In addition, with respect to any Account of such Grantor (1) the
amounts reflected on all records, invoices, statements and Collateral Reports
that may be delivered to Agent with respect thereto are actually and absolutely
owing to such Grantor as indicated thereon and are not in any way contingent;
(2) no payments have been or shall be made thereon except payments made in
accordance with the requirements of Annex C to the Credit Agreement; and (3) to
such Grantor's knowledge, the applicable Account Debtor has the capacity to
contract.

                  (g) Intellectual Property Collateral. Each Grantor has no
interest in, or title to, any License, Patent, Trademark or Copyright except as
set forth in Schedule III hereto. This Agreement is effective to create a valid
and continuing Lien upon the Intellectual Property Collateral of each Grantor.
Upon the filing of the Patent, Trademark and Copyright Security Agreement with
each of the United States Copyright Office and the United States Patent and
Trademark Office, and the filing of appropriate financing statements in the
jurisdictions listed in Schedule I hereto, (i) Agent shall have perfected Liens
upon each Grantor's Intellectual Property Collateral; (ii) such perfected Liens
shall be enforceable as such as against any and all creditors of and purchasers
from any Grantor; and (iii) all action necessary or desirable to protect and
perfect Agent's Lien on each Grantor's Intellectual Property Collateral shall
have been duly taken.

                  (i) Survival. The representations and warranties set forth in
this Section 4 shall survive the execution and delivery of this Agreement.

         5. COVENANTS. Each Grantor covenants and agrees with Agent, for the
benefit of Agent and Lenders, that from and after the date of this Agreement and
until the Termination Date:

                  (a) Further Assurances; Pledge of Instruments.

                           (i) At any time and from time to time, upon the
written request of Agent and at the sole expense of such Grantor, such Grantor
shall promptly and duly execute and deliver any and all such further instruments
and documents and take such further actions as Agent may reasonably deem
desirable to obtain the full benefits of this Agreement and of the rights and
powers herein granted, including (A) using its best efforts to secure all
consents and approvals necessary or appropriate for the assignment to or for the
benefit of Agent of any License or Contract held by such Grantor or in which
such Grantor has any rights not heretofore assigned, (B) filing any financing or
continuation statements under the Code with respect to the Liens granted
hereunder or under any other Loan Document, (C) transferring Collateral to
Agent's possession (for the benefit of Agent and Lenders) if such Collateral
consists of Chattel Paper or Instruments or if a Lien on such Collateral can be
perfected only by possession, or if otherwise requested by Agent, (D) obtaining,
or using its

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best efforts to obtain, waivers of Liens, if any exist, from landlords and
mortgagees in accordance with the Credit Agreement; (E) obtaining signed
acknowledgments of Agent's Liens from bailees having possession of any of such
Grantor's Goods; and (F) obtaining Control Letters from any issuer or securities
intermediary with respect to Investment Property of such Grantor. Such Grantor
also hereby authorizes Agent, for the benefit of Agent and Lenders, to file any
such financing or continuation statements without the signature of such Grantor
to the extent permitted by applicable law. If any amount payable under or in
connection with any of the Collateral is or shall become evidenced by any
Instrument, such Instrument, other than checks and notes received in the
ordinary course of business, shall be duly endorsed in a manner satisfactory to
Agent immediately upon such Grantor's receipt thereof and promptly delivered to
Agent.

                           (ii) Such Grantor will deliver to Agent the original
of all letters of credit issued to it as a beneficiary along with a collateral
assignment thereof evidencing the consent to such assignment by the issuer of
the letter of credit and each correspondent or confirming bank, all in form and
substance satisfactory to Agent.

                           (iii) Such Grantor will take all steps necessary to
grant to Agent, for the benefit of Agent and Lenders, control of all electronic
chattel paper in accordance with the Code.

                           (iv) Such Grantor authorizes Agent to file financing
statements describing the Collateral without the signature of such Grantor to
the extent permitted by law.

                  (b) Maintenance of Books and Records. Such Grantor shall keep
and maintain, at its own cost and expense, satisfactory and complete records of
each item of Collateral on which it purports to grant a Lien hereunder,
including a record of any and all payments received and any and all credits
granted with respect to each such item of Collateral and all other dealings with
respect to each such item of Collateral. Such Grantor shall mark its books and
records pertaining to each such item of Collateral to evidence this Agreement
and the Liens granted hereby. All Chattel Paper shall be marked with the
following legend: "This writing and the obligations evidenced or secured hereby
are subject to the security interest of General Electric Capital Corporation, as
Agent, for the benefit of Agent and certain Lenders."

                  (c) Covenants Regarding Intellectual Property.

                           (i) Such Grantor shall notify Agent immediately if it
knows or has reason to know (A) that any application or registration relating to
any License, Patent, Trademark or Copyright that such Grantor reasonably
determines is necessary for the conduct of its business may become abandoned or
dedicated, or (B) of any adverse determination or development (including the
institution of, or any such determination or development in, any proceeding in
the United States Patent and Trademark Office, the United States Copyright
Office or any court) regarding such Grantor's ownership of any such License,
Patent, Trademark or Copyright, its right to register the same, or to keep and
maintain the same.

                           (ii) In no event shall such Grantor, either itself or
through any agent, employee, licensee or designee, file an application for the
registration of any Patent, Trademark or Copyright with the United States Patent
and Trademark Office, the United States Copyright Office or any similar office
or agency without giving Agent prior written notice thereof, and, upon request
of Agent, such Grantor shall execute and deliver any and all security documents
as Agent may

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request, including the Patent, Trademark and Copyright Security Agreement, to
evidence Agent's Lien on such Patent, Trademark or Copyright, and the General
Intangibles of such Grantor relating thereto or represented thereby.

                           (iii) Such Grantor shall take all actions necessary
or requested by Agent to maintain and pursue each application, to obtain the
relevant registration and to maintain the registration of each of the Patents,
Trademarks and Copyrights, including the filing of applications for renewal,
affidavits of use, affidavits of noncontestability and opposition and
interference and cancellation proceedings, unless such Grantor shall determine
that such Patent, Trademark or Copyright is not material to the conduct of its
business.

                           (iv) In the event that any of such Grantor's
Intellectual Property that such Grantor reasonably determines is necessary for
the conduct of its business is infringed upon, or misappropriated or diluted by
a third party, such Grantor shall notify Agent promptly after such Grantor
learns thereof. Such Grantor shall, unless such Grantor shall reasonably
determine that such Intellectual Property is in no way material to the conduct
of its business or operations, promptly sue for, and seek recovery of any and
all damages resulting from, such infringement, misappropriation or dilution, and
shall take such other actions as Agent reasonably shall deem appropriate under
the circumstances to protect such Intellectual Property.

                  (d) Indemnification. In any suit, proceeding or action brought
by Agent or any Lender relating to any Account, Chattel Paper, Contract,
Document, General Intangible, Investment Property or Instrument of such Grantor
for any sum owing thereunder or to enforce any provision of any such Account,
Chattel Paper, Contract, Document, General Intangible, Investment Property or
Instrument, such Grantor shall save, indemnify and keep Agent and Lenders
harmless from and against all expense (including reasonable attorneys' fees and
expenses), loss or damage suffered by reason of any defense, setoff,
counterclaim, recoupment or reduction of liability whatsoever of the obligor
thereunder, arising out of a breach by such Grantor of any obligation thereunder
or arising out of any other agreement, indebtedness or liability at any time
owing to, or in favor of, such obligor or its successors from such Grantor,
except to the extent such expense, loss, or damage is attributable solely to the
gross negligence or willful misconduct of Agent or any Lender as finally
determined by a court of competent jurisdiction. All such obligations of such
Grantor shall be and remain enforceable against and only against such Grantor
and shall not be enforceable against Agent or any Lender.

                  (e) Compliance with Terms of Accounts, Etc. In all material
respects, such Grantor shall perform and comply with all obligations in respect
of its Accounts, Chattel Paper, Contracts and Licenses and all other agreements
to which it is a party or by which it is bound relating to the Collateral.

                  (f) Limitation on Liens on Collateral. Such Grantor shall not
create, permit or suffer to exist, and such Grantor shall defend the Collateral
against, and take such other action as is necessary to remove, any Lien upon the
Collateral except Permitted Encumbrances, and shall defend the right, title and
interest of Agent and Lenders in and to any of such Grantor's rights under the
Collateral against the claims and demands of all Persons whomsoever.

                  (g) Limitations on Disposition. Such Grantor shall not sell,
lease, transfer or otherwise dispose of any of the Collateral, or attempt or
contract to do so except as permitted by the Credit Agreement.

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                  (h) Further Identification of Collateral. Such Grantor shall,
if so requested by Agent, furnish to Agent, as often as Agent reasonably
requests, statements and schedules further identifying and describing the
Collateral and such other reports in connection with the Collateral as Agent may
reasonably request, all in such detail as Agent reasonably may specify.

                  (i) Notices. Such Grantor shall advise Agent promptly, in
reasonable detail, (i) of any Lien (other than Permitted Encumbrances) or claim
made or asserted against any of the Collateral, and (ii) of the occurrence of
any other event that would have a Material Adverse Effect on the aggregate value
of the Collateral or on the Liens created hereunder or under any other Loan
Document.

         6. AGENT'S APPOINTMENT AS ATTORNEY-IN-FACT. On the Closing Date each
Grantor shall execute and deliver to Agent a power of attorney (each, a "Power
of Attorney") substantially in the form attached hereto as Exhibit A. The power
of attorney granted pursuant to each Power of Attorney is a power coupled with
an interest and shall be irrevocable until the Termination Date. The powers
conferred on Agent, for the benefit of Agent and Lenders, under each Power of
Attorney are solely to protect Agent's Liens upon and interests in (for the
benefit of Agent and Lenders) the Collateral and shall not impose any duty upon
Agent or any Lender to exercise any such powers. Agent agrees that (a) it shall
not exercise any power or authority granted under any Power of Attorney unless
an Event of Default has occurred and is continuing, and (b) Agent shall account
for any moneys received by Agent in respect of any foreclosure on or disposition
of any of the Collateral pursuant to any Power of Attorney; provided, that,
except as set forth in Section 9, none of Agent or any Lender shall have any
duty as to any Collateral, and Agent and Lenders shall be accountable only for
amounts that they actually receive as a result of the exercise of such powers.
NONE OF AGENT, LENDERS OR THEIR RESPECTIVE AFFILIATES, OFFICERS, DIRECTORS,
EMPLOYEES, AGENTS OR REPRESENTATIVES SHALL BE RESPONSIBLE TO ANY GRANTOR FOR ANY
ACT OR FAILURE TO ACT UNDER ANY POWER OF ATTORNEY OR OTHERWISE, EXCEPT IN
RESPECT OF DAMAGES ATTRIBUTABLE SOLELY TO THEIR OWN GROSS NEGLIGENCE OR WILLFUL
MISCONDUCT AS FINALLY DETERMINED BY A COURT OF COMPETENT JURISDICTION, NOR FOR
ANY PUNITIVE, EXEMPLARY, INDIRECT OR CONSEQUENTIAL DAMAGES.

         7. REMEDIES; RIGHTS UPON DEFAULT.

                  (a) In addition to all other rights and remedies granted to it
under this Agreement, the Credit Agreement, the other Loan Documents and under
any other instrument or agreement securing, evidencing or relating to any of the
Obligations, if any Event of Default shall have occurred and be continuing,
Agent may exercise all rights and remedies of a secured party under the Code.
Without limiting the generality of the foregoing, each Grantor expressly agrees
that in any such event Agent, without demand of performance or other demand,
advertisement or notice of any kind (except the notice specified below of the
time and place of any public or private sale) to or upon such Grantor or any
other Person (all and each of which demands, advertisements and notices are
hereby expressly waived to the maximum extent permitted by the Code and other
applicable law), may forthwith enter upon the premises of such Grantor where any
Collateral is located through self-help, without judicial process, without first
obtaining a final judgment or giving such Grantor or any other Person notice and
opportunity for a hearing on Agent's claim or action,

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and without paying rent to such Grantor, and may collect, receive, assemble,
process, appropriate and realize upon the Collateral, or any part thereof, and
may forthwith sell, lease, assign, give an option or options to purchase, or
sell or otherwise dispose of and deliver said Collateral (or contract to do so),
or any part thereof, in one or more parcels at public or private sale or sales,
or at any exchange, at such prices as it may deem acceptable, for cash or on
credit or for future delivery without assumption of any credit risk. Agent or
any Lender shall have the right upon any such public sale or sales and, to the
extent permitted by law, upon any such private sale or sales to purchase for the
benefit of Agent and Lenders the whole or any part of said Collateral so sold,
free of any right or equity of redemption, which equity of redemption each
Grantor hereby releases. Such sales may be adjourned or continued from time to
time with or without notice. Agent shall have the right to conduct such sales on
any Grantor's premises or elsewhere and shall have the right to use any
Grantor's premises without charge for such sales at such time or times as Agent
deems necessary or advisable.

                  (b) If any Event of Default shall have occurred and be
continuing, each Grantor further agrees, at Agent's request, to assemble the
Collateral and make it available to Agent at places that Agent shall select,
whether at such Grantor's premises or elsewhere. Until Agent is able to effect a
sale, lease, or other disposition of Collateral, Agent shall have the right to
hold or use the Collateral, or any part thereof, to the extent that it deems
appropriate for the purpose of preserving the Collateral or its value or for any
other purpose deemed appropriate by Agent. Agent shall have no obligation to any
Grantor to maintain or preserve the rights of such Grantor as against third
parties with respect to the Collateral while Collateral is in the possession of
Agent. Agent may, if it so elects, seek the appointment of a receiver or keeper
to take possession of Collateral and to enforce any of Agent's remedies (for the
benefit of Agent and Lenders), with respect to such appointment without prior
notice or hearing as to such appointment. Agent shall apply the net proceeds of
any such collection, recovery, receipt, appropriation, realization or sale to
the Obligations as provided in the Credit Agreement, and only after so paying
over such net proceeds, and after the payment by Agent of any other amount
required by any provision of law, need Agent account for the surplus, if any, to
any Grantor. To the maximum extent permitted by applicable law, each Grantor
waives all claims, damages, and demands against Agent or any Lender arising out
of the repossession, retention or sale of the Collateral except such as arise
solely out of the gross negligence or willful misconduct of Agent or such Lender
as finally determined by a court of competent jurisdiction. Each Grantor agrees
that ten days' prior notice by Agent of the time and place of any public sale or
of the time after which a private sale may take place is reasonable notification
of such matters. Grantors shall remain liable for any deficiency if the proceeds
of any sale or disposition of the Collateral are insufficient to pay all
Obligations, including any attorneys' fees or other expenses incurred by Agent
or any Lender to collect such deficiency.

                  (c) Except as otherwise specifically provided herein, each
Grantor hereby waives presentment, demand, protest or any notice (to the maximum
extent permitted by applicable law) of any kind in connection with this
Agreement or any Collateral.

         8. GRANT OF LICENSE TO USE INTELLECTUAL PROPERTY. For the purpose of
enabling Agent to exercise its rights and remedies under Section 7 hereof
(including, without limiting the terms of Section 7 hereof, in order to take
possession of, hold, preserve, process, assemble, prepare for sale, market for
sale, sell or otherwise dispose of Collateral) at such time or times as Agent
shall be lawfully entitled to exercise such rights and remedies, each Grantor
hereby grants to Agent, for the benefit of Agent and Lenders, an irrevocable,
non-exclusive license

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(exercisable without payment of royalty or other compensation to such Grantor)
to use, license or sublicense any Intellectual Property of such Grantor, and
wherever the same may be located, and including in such license access to all
media in which any of the licensed items may be recorded or stored and to all
computer software and programs used for the compilation or printout thereof.

         9. LIMITATION ON AGENT'S AND LENDERS' DUTY IN RESPECT OF COLLATERAL.
Agent and each Lender shall use reasonable care with respect to the Collateral
in its possession or under its control. Neither Agent nor any Lender shall have
any other duty as to any Collateral in its possession or control or in the
possession or control of any agent or nominee of Agent or such Lender, or any
income thereon or as to the preservation of rights against prior parties or any
other rights pertaining thereto.

         10. REINSTATEMENT. This Agreement shall remain in full force and effect
and continue to be effective should any petition be filed by or against any
Grantor for liquidation or reorganization, should any Grantor become insolvent
or make an assignment for the benefit of any creditor or creditors or should a
receiver or trustee be appointed for all or any significant part of any
Grantor's assets, and shall continue to be effective or be reinstated, as the
case may be, if at any time payment and performance of the Obligations, or any
part thereof, is, pursuant to applicable law, rescinded or reduced in amount, or
must otherwise be restored or returned by any obligee of the Obligations,
whether as a "voidable preference," "fraudulent transfer," or otherwise, all as
though such payment or performance had not been made. In the event that any
payment, or any part thereof, is rescinded, reduced, restored or returned, the
Obligations shall be reinstated and deemed reduced only by such amount paid and
not so rescinded, reduced, restored or returned.

         11. NOTICES. Except as otherwise provided herein, whenever it is
provided herein that any notice, demand, request, consent, approval, declaration
or other communication shall or may be given to or served upon any of the
parties by any other party, or whenever any of the parties desires to give or
serve upon any other party any communication with respect to this Agreement,
each such notice, demand, request, consent, approval, declaration or other
communication shall be in writing and shall be given in the manner, and deemed
received, as provided for in the Credit Agreement.

         12. SEVERABILITY. Whenever possible, each provision of this Agreement
shall be interpreted in such a manner as to be effective and valid under
applicable law, but if any provision of this Agreement shall be prohibited by or
invalid under applicable law, such provision shall be ineffective only to the
extent of such prohibition or invalidity without invalidating the remainder of
such provision or the remaining provisions of this Agreement. This Agreement is
to be read, construed and applied together with the Credit Agreement and the
other Loan Documents, which, taken together, set forth the complete
understanding and agreement of Agent, Lenders and Grantors with respect to the
matters referred to herein and therein.

         13. NO WAIVER; CUMULATIVE REMEDIES. Neither Agent nor any Lender shall
by any act, delay, omission or otherwise be deemed to have waived any of its
rights or remedies hereunder, and no waiver shall be valid unless in writing and
signed by Agent, and then only to the extent therein set forth. A waiver by
Agent of any right or remedy hereunder on any one occasion shall not be
construed as a bar to any right or remedy that Agent would otherwise have on any
future occasion. No failure by Agent or any Lender to exercise, nor any delay in
exercising, any right, power or privilege hereunder, shall operate as a waiver
thereof, nor shall any single or partial exercise of any right, power or
privilege hereunder preclude any other or future exercise thereof or

                                       10
<PAGE>   11

the exercise of any other right, power or privilege. The rights and remedies
provided hereunder are cumulative and may be exercised singly or concurrently,
and are not exclusive of any rights and remedies provided by law. None of the
terms or provisions of this Agreement may be waived, altered, modified or
amended except by an instrument in writing, duly executed by Agent and Grantors.

         14. LIMITATION BY LAW. All rights, remedies and powers provided in this
Agreement may be exercised only to the extent that the exercise thereof does not
violate any applicable provision of law, and all the provisions of this
Agreement are intended to be subject to all applicable mandatory provisions of
law that may be controlling and to be limited to the extent necessary so that
they do not render this Agreement invalid, unenforceable, in whole or in part,
or not entitled to be recorded, registered or filed under the provisions of any
applicable law.

         15. TERMINATION OF THIS AGREEMENT. Subject to Section 10 hereof, this
Agreement shall terminate upon the Termination Date.

         16. SUCCESSORS AND ASSIGNS. This Agreement and all obligations of each
Grantor hereunder shall be binding upon the successors and assigns of such
Grantor (including any debtor-in-possession on behalf of such Grantor) and
shall, together with the rights and remedies of Agent, for the benefit of Agent
and Lenders, hereunder, inure to the benefit of Agent and Lenders, all future
holders of any Instrument evidencing any of the Obligations and their respective
successors and assigns. No sales of participations, other sales, assignments,
transfers or other dispositions of any agreement governing or Instrument
evidencing the Obligations or any portion thereof or interest therein shall in
any manner affect the Lien granted to Agent, for the benefit of Agent and
Lenders, hereunder. No Grantor may assign, sell, hypothecate or otherwise
transfer any interest in or obligation under this Agreement.

         17. COUNTERPARTS. This Agreement may be executed in any number of
separate counterparts, each of which shall collectively and separately
constitute one agreement.

         18. GOVERNING LAW. EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN ANY OF THE
LOAN DOCUMENTS, IN ALL RESPECTS, INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY
AND PERFORMANCE, THIS AGREEMENT AND THE OBLIGATIONS ARISING HEREUNDER SHALL BE
GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE
STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND PERFORMED IN THAT STATE, AND
ANY APPLICABLE LAWS OF THE UNITED STATES OF AMERICA. EACH GRANTOR HEREBY
CONSENTS AND AGREES THAT THE STATE OR FEDERAL COURTS LOCATED IN NEW YORK COUNTY,
CITY OF NEW YORK, NEW YORK, SHALL HAVE EXCLUSIVE JURISDICTION TO HEAR AND
DETERMINE ANY CLAIMS OR DISPUTES BETWEEN GRANTORS, AGENT AND LENDERS PERTAINING
TO THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS OR TO ANY MATTER ARISING
OUT OF OR RELATING TO THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS;
PROVIDED, THAT AGENT, LENDERS AND GRANTORS ACKNOWLEDGE THAT ANY APPEALS FROM
THOSE COURTS MAY HAVE TO BE HEARD BY A COURT LOCATED OUTSIDE OF NEW YORK COUNTY,
CITY OF NEW YORK, NEW YORK; AND FURTHER PROVIDED, THAT NOTHING IN THIS AGREEMENT
SHALL BE DEEMED OR OPERATE TO PRECLUDE AGENT FROM BRINGING SUIT OR TAKING OTHER
LEGAL ACTION IN ANY OTHER

                                       11
<PAGE>   12

JURISDICTION TO REALIZE ON THE COLLATERAL OR ANY OTHER SECURITY FOR THE
OBLIGATIONS, OR TO ENFORCE A JUDGMENT OR OTHER COURT ORDER IN FAVOR OF AGENT.
EACH GRANTOR EXPRESSLY SUBMITS AND CONSENTS IN ADVANCE TO SUCH JURISDICTION IN
ANY ACTION OR SUIT COMMENCED IN ANY SUCH COURT, AND EACH GRANTOR HEREBY WAIVES
ANY OBJECTION THAT IT MAY HAVE BASED UPON LACK OF PERSONAL JURISDICTION,
IMPROPER VENUE OR FORUM NON CONVENIENS AND HEREBY CONSENTS TO THE GRANTING OF
SUCH LEGAL OR EQUITABLE RELIEF AS IS DEEMED APPROPRIATE BY SUCH COURT. EACH
GRANTOR HEREBY WAIVES PERSONAL SERVICE OF THE SUMMONS, COMPLAINT AND OTHER
PROCESS ISSUED IN ANY SUCH ACTION OR SUIT AND AGREES THAT SERVICE OF SUCH
SUMMONS, COMPLAINT AND OTHER PROCESS MAY BE MADE BY REGISTERED OR CERTIFIED MAIL
ADDRESSED TO SUCH GRANTOR AT THE ADDRESS SET FORTH ON ANNEX I TO THE CREDIT
AGREEMENT AND THAT SERVICE SO MADE SHALL BE DEEMED COMPLETED UPON THE EARLIER OF
ACTUAL RECEIPT THEREOF OR THREE DAYS AFTER DEPOSIT IN THE UNITED STATES MAILS,
PROPER POSTAGE PREPAID.

         19. WAIVER OF JURY TRIAL. BECAUSE DISPUTES ARISING IN CONNECTION WITH
COMPLEX FINANCIAL TRANSACTIONS ARE MOST QUICKLY AND ECONOMICALLY RESOLVED BY AN
EXPERIENCED AND EXPERT PERSON AND THE PARTIES WISH APPLICABLE STATE AND FEDERAL
LAWS TO APPLY (RATHER THAN ARBITRATION RULES), THE PARTIES DESIRE THAT DISPUTES
ARISING HEREUNDER OR RELATED HERETO BE RESOLVED BY A JUDGE APPLYING SUCH
APPLICABLE LAWS. THEREFORE, TO ACHIEVE THE BEST COMBINATION OF THE BENEFITS OF
THE JUDICIAL SYSTEM AND OF ARBITRATION, THE PARTIES HERETO WAIVE ALL RIGHT TO
TRIAL BY JURY IN ANY ACTION, SUIT OR PROCEEDING BROUGHT TO RESOLVE ANY DISPUTE,
WHETHER ARISING IN CONTRACT, TORT, OR OTHERWISE, AMONG AGENT, LENDERS, AND
GRANTORS ARISING OUT OF, CONNECTED WITH, RELATED TO, OR INCIDENTAL TO THE
RELATIONSHIP ESTABLISHED AMONG THEM IN CONNECTION WITH THIS AGREEMENT OR ANY OF
THE OTHER LOAN DOCUMENTS OR THE TRANSACTIONS RELATED HERETO OR THERETO.

         20. SECTION TITLES. The Section titles contained in this Agreement are
and shall be without substantive meaning or content of any kind whatsoever and
are not a part of the agreement between the parties hereto.

         21. NO STRICT CONSTRUCTION. The parties hereto have participated
jointly in the negotiation and drafting of this Agreement. In the event an
ambiguity or question of intent or interpretation arises, this Agreement shall
be construed as if drafted jointly by the parties hereto and no presumption or
burden of proof shall arise favoring or disfavoring any party by virtue of the
authorship of any provisions of this Agreement.

         22. ADVICE OF COUNSEL. Each of the parties represents to each other
party hereto that it has discussed this Agreement (and, specifically, the
provisions of Sections 18 and 19) with its counsel.

         23. BENEFIT OF LENDERS. All Liens granted or contemplated hereby shall
be for the benefit of Agent and Lenders, and all proceeds or payments realized
from Collateral in accordance herewith shall be applied to the Obligations in
accordance with the terms of the Credit Agreement.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       12
<PAGE>   13

                  IN WITNESS WHEREOF, each of the parties hereto has caused this
Security Agreement to be executed and delivered by its duly authorized officer
as of the date first set forth above.

"Grantors"                                        "Agent"

UNION-TRANSPORT CORPORATION                       GENERAL ELECTRIC CAPITAL
By: /s/ THURSO BARENDSE                           CORPORATION, as Agent
    ----------------------------
Name: Thurso Barendse
      --------------------------                  By: /s/ MARTIN S. GREENBERG
Title: VP Finance                                     --------------------------
       -------------------------                      Martin S. Greenberg
                                                      Duly Authorized Signatory
UNION-TRANSPORT (U.S.)
HOLDINGS, INC.

By: /s/ THURSO BARENDSE
    ----------------------------
Name: Thurso Barendse
      --------------------------
Title: VP Finance
       -------------------------

UNION-TRANSPORT BROKERAGE CORP.

By: /s/ THURSO BARENDSE
    ----------------------------
Name: Thurso Barendse
      --------------------------
Title: VP Finance
       -------------------------

UT SERVICES, INC.

By: /s/ THURSO BARENDSE
    ----------------------------
Name: Thurso Barendse
      --------------------------
Title: VP Finance
       -------------------------

UNION-TRANSPORT LOGISTICS INC.

By: /s/ THURSO BARENDSE
    ----------------------------
Name: Thurso Barendse
      --------------------------
Title: VP Finance
       -------------------------

VANGUARD CARGO SYSTEMS, INC.

By: /s/ THURSO BARENDSE
    ----------------------------
Name: Thurso Barendse
      --------------------------
Title: VP Finance
       -------------------------

                                       13<PAGE>   1

                                                                   EXHIBIT 10.19

                                PLEDGE AGREEMENT

                  THIS PLEDGE AGREEMENT (as the same may be amended, restated,
supplemented or otherwise modified from time to time, "Agreement"), dated as of
August 15, 2000, 2000, is made by UNION-TRANSPORT CORPORATION, a New York
corporation ("Borrower"), UNION-TRANSPORT (U.S.) HOLDINGS, INC., a Delaware
corporation ("UT Holdings"), UNION-TRANSPORT BROKERAGE CORPORATION, a California
corporation ("UT Brokerage"), UT SERVICES, INC., a California corporation ("UT
Services"), UNION-TRANSPORT LOGISTICS INC., a Delaware corporation ("UT
Logistics"), and VANGUARD CARGO SYSTEMS, INC., a New York corporation ("UT
Vanguard") (Borrower, UT Holdings, UT Brokerage, UT Services, UT Logistics and
UT Vanguard being referred to collectively as "Pledgors" and each individually
as a "Pledgor"); in favor of GENERAL ELECTRIC CAPITAL CORPORATION, a New York
corporation, as agent (in such capacity, "Agent") for the lenders ("Lenders")
from time to time a party to the Credit Agreement (as defined below).

                                    RECITALS

                  A. Pursuant to that certain Credit Agreement of even date
herewith by and among Pledgors, Agent and Lenders (including all annexes,
exhibits and schedules thereto, as the same may be amended, restated,
supplemented or otherwise modified from time to time, the "Credit Agreement"),
Lenders have agreed to extend certain financial accommodations to or for the
direct or indirect benefit of Pledgors.

                  B. Each Pledgor is the record and beneficial owner of the
shares of Stock listed as owned by it in Part A of Schedule I hereto and the
owner of the promissory notes and other Instruments and the beneficiary of the
letters of credit listed as held by it in Part B of Schedule I hereto.

                  C. Each Pledgor is either a direct or indirect beneficiary of
the credit facilities made available to Borrower under the Credit Agreement.

                  D. In order to induce Agent and Lenders to enter into the
Credit Agreement and the other Loan Documents and to induce Agent and Lenders to
extend the financial accommodations as provided for in the Credit Agreement,
each Pledgor has agreed to pledge the Pledged Collateral as hereinafter defined
to Agent in accordance herewith. These recitals shall be construed as part of
this Agreement.

                                    AGREEMENT

                  NOW, THEREFORE, in consideration of the premises and the
covenants hereinafter contained and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, each Pledgor and
Agent agree as follows:

         1. Definitions. Unless otherwise defined herein, capitalized terms or
matters of construction defined or established in Annex A to the Credit
Agreement shall be applied herein as defined or established therein, and the
following terms shall have (unless otherwise provided elsewhere in this
Agreement) the following respective meanings (such meanings being equally
applicable to both the singular and plural form of the terms defined):

<PAGE>   2

                  "Pledged Collateral" shall have the meaning assigned to it in
Section 2.

                  "Pledged Entity" shall mean an issuer of Pledged Shares or
Pledged Indebtedness.

                  "Pledged Indebtedness" shall mean the Indebtedness evidenced
by the promissory notes, other Instruments and letters of credit listed on Part
B of Schedule I.

                  "Pledged Shares" shall mean those shares listed in Part A of
Schedule I.

                  "Secured Obligations" shall have the meaning assigned to it in
Section 3.

         2. Pledge. Each Pledgor hereby pledges and grants to Agent, for the
benefit of Agent and Lenders, a first priority Lien on all of the following
(collectively, the "Pledged Collateral"):

                  (a) the Pledged Shares owned by it and the certificates
representing such Pledged Shares, and all dividends, distributions, cash,
Instruments and other property or Proceeds from time to time received,
receivable or otherwise distributed in respect of or in exchange for any or all
of such Pledged Shares;

                  (b) such portion, as determined by Agent as provided in
Section 6(d), of any additional shares of Stock of a Pledged Entity from time to
time acquired by such Pledgor in any manner (which shares shall be deemed to be
part of the Pledged Shares owned by such Pledgor), and the certificates
representing such additional shares, and all dividends, distributions, cash,
Instruments and other property or Proceeds from time to time received,
receivable or otherwise distributed in respect of or in exchange for any or all
of such Stock;

                  (c) the Pledged Indebtedness held by it and the promissory
notes, other Instruments and letters of credit evidencing such Pledged
Indebtedness, and all interest, cash, Instruments and other property and assets
from time to time received, receivable or otherwise distributed in respect of
such Pledged Indebtedness; and

                  (d) all additional Indebtedness arising after the date hereof
and owing to such Pledgor and evidenced by promissory notes, other Instruments
or letters of credit, together with such promissory notes, Instruments and
letters of credit, and all interest, cash, Instruments and other property and
assets from time to time received, receivable or otherwise distributed in
respect of such Pledged Indebtedness.

         3. Security for Obligations. This Agreement secures, and the Pledged
Collateral is security for, the prompt payment in full when due, whether at
stated maturity, by acceleration or otherwise, and performance of the
Obligations, including all obligations of any Pledgor now or hereafter existing
under this Agreement, together with all fees, costs and expenses whether in
connection with collection actions hereunder or otherwise (collectively, the
"Secured Obligations").

         4. Delivery of Pledged Collateral. All certificates and all promissory
notes, other Instruments and letters of credit evidencing the Pledged Collateral
shall be delivered to and held by or on behalf of Agent, for the benefit of
Agent and Lenders, pursuant hereto. All Pledged Shares shall be accompanied by
duly executed instruments of transfer or assignment in blank, all in form

                                       2
<PAGE>   3

and substance satisfactory to Agent and all promissory notes or other
Instruments evidencing the Pledged Indebtedness shall be endorsed by the Pledgor
pledging such Pledged Indebtedness.

         5. Representations and Warranties. Each Pledgor represents and warrants
to Agent that:

                  (a) (i) Such Pledgor is, and at the time of delivery of the
Pledged Shares owned by it to Agent will be, the sole holder of record and the
sole beneficial owner of such Pledged Collateral pledged by it free and clear of
any Lien thereon or affecting the title thereto, except for any Lien created by
this Agreement or the other Loan Documents or Permitted Encumbrances, and (ii)
such Pledgor is, and at the time of delivery of the Pledged Indebtedness held by
it to Agent will be, the sole owner and holder of such Pledged Collateral free
and clear of any Lien thereon or affecting title thereto, except for any Lien
created by this Agreement or the other Loan Documents or Permitted Encumbrances.

                  (b) (i) All of the Pledged Shares owned by such Pledgor have
been duly authorized, validly issued and are fully paid and non-assessable, and
(ii) to such Pledgor's knowledge, the Pledged Indebtedness held by such Pledgor
has been duly authorized, authenticated or issued and delivered by, and
constitutes the legal, valid and binding obligation of, each Pledged Entity
issuing same, and no such Pledged Entity is in default thereunder.

                  (c) Such Pledgor has the right and requisite authority to
pledge, assign, transfer, deliver, deposit and set over the Pledged Collateral
pledged by such Pledgor to Agent as provided herein.

                  (d) None of the Pledged Shares or Pledged Indebtedness owned
or held by such Pledgor has been issued or transferred in violation of the
securities registration, securities disclosure or similar laws of any
jurisdiction to which such issuance or transfer may be subject.

                  (e) Such Pledgor is the sole owner of the Pledged Shares
pledged by it hereunder and such Pledged Shares are presently represented by the
certificates listed in Part A of Schedule I. As of the date hereof, there are no
existing options, warrants, calls or commitments of any character whatsoever
relating to the Pledged Shares pledged by such Pledgor hereunder.

                  (f) No consent, approval, authorization or other order or
other action by, and no notice to or filing with, any Governmental Authority or
any other Person is required (i) for the pledge by such Pledgor of the Pledged
Collateral owned or held by it pursuant to this Agreement or for the execution,
delivery or performance of this Agreement by such Pledgor, or (ii) for the
exercise by Agent of the voting or other rights provided for in this Agreement
or the remedies in respect of such Pledged Collateral pursuant to this
Agreement, except as may be required in connection with such disposition by laws
affecting the offering and sale of securities generally.

                  (g) The pledge, assignment and delivery of the Pledged
Collateral owned or held by it pursuant to this Agreement will create a valid
first priority Lien in favor of Agent for the benefit of Agent and Lenders upon
such Pledged Collateral and the Proceeds thereof, securing the payment of the
Secured Obligations, and the Pledged Collateral is subject to no other Lien
other than Permitted Encumbrances;

                  (h) This Agreement has been duly authorized, executed and
delivered by such

                                       3
<PAGE>   4

Pledgor and constitutes a legal, valid and binding obligation of such Pledgor
enforceable against such Pledgor in accordance with its terms.

                  (i) The Pledged Shares constitute 100% of the issued and
outstanding shares of Stock of each Pledged Entity.

                  (j) Except as disclosed in Part B of Schedule I, none of the
Pledged Indebtedness held by such Pledgor is subordinated in right of payment to
other Indebtedness (except for the Secured Obligations) or subject to the terms
of an indenture.

                  The representations and warranties set forth in this Section 5
shall survive the execution and delivery of this Agreement.

         6. Covenants. Each Pledgor covenants and agrees that until the
Termination Date:

                  (a) Without the prior written consent of Agent, such Pledgor
will not sell, assign, transfer, pledge, or otherwise encumber any of its rights
in or to any Pledged Collateral owned or held by it, or any unpaid dividends,
interest or other distributions or payments with respect to such Pledged
Collateral, or grant a Lien on such Pledged Collateral, except as otherwise
expressly permitted by the Credit Agreement;

                  (b) Such Pledgor will, at its expense, promptly execute,
acknowledge and deliver all such Instruments and deliver letters of credit and
take all such actions as Agent from time to time may request in order to ensure
to Agent and Lenders the benefits of the Liens upon the Pledged Collateral owned
or held by it intended to be created by this Agreement, including the filing of
any necessary Code financing statements, which may be filed by Agent with or (to
the extent permitted by law) without the signature of such Pledgor, and will
cooperate with Agent, at such Pledgor's expense, in obtaining all necessary
approvals and making all necessary filings under federal, state, local or
foreign law in connection with such Liens or any sale or transfer of such
Pledged Collateral;

                  (c) Such Pledgor has and will defend the title to the Pledged
Collateral owned or held by it and the Liens of Agent in such Pledged Collateral
against the claim of any Person and will maintain and preserve such Liens; and

                  (d) Such Pledgor will, upon obtaining ownership of any
additional Stock, promissory notes or other Instruments or letters of credit of
a Pledged Entity or Stock, promissory notes or other Instruments or letters of
credit otherwise required to be pledged to Agent pursuant to any of the Loan
Documents that does not already constitute Pledged Collateral hereunder,
promptly (and in any event within three Business Days) after it acquires any
such additional Stock, notes or other Instruments or letters of credit, deliver
to Agent a Pledge Amendment, duly executed by such Pledgor, in substantially the
form of Schedule II (each, a "Pledge Amendment"), in respect of any such
additional Stock, notes or other Instruments or letters of credit pursuant to
which such Pledgor shall pledge to Agent all of such additional Stock, notes and
other Instruments and letters of credit. Such Pledgor hereby authorizes Agent to
attach each such Pledge Amendment to this Agreement and agrees that all Pledged
Shares and Pledged Indebtedness listed in any such Pledge Amendment delivered to
Agent shall for all purposes hereunder be considered Pledged Collateral.

         7. Pledgor's Rights. So long as no Event of Default shall have occurred
and be

                                       4
<PAGE>   5

continuing and until written notice shall be given to any Pledgor in accordance
with Section 8(a):

                  (a) Each Pledgor shall have the right, from time to time, to
vote and give consents with respect to the Pledged Collateral pledged by it
hereunder or any part thereof for all purposes not inconsistent with the
provisions of this Agreement, the Credit Agreement or any other Loan Document;
provided, that no vote shall be cast, and no consent shall be given or action
taken, that would have the effect of impairing the position or interest of Agent
in respect of the Pledged Collateral or that would authorize, effect or consent
to (unless and to the extent expressly permitted by the Credit Agreement):

                           (i) the dissolution or liquidation, in whole or in
         part, of a Pledged Entity;

                           (ii) the consolidation or merger of a Pledged Entity
         with any other Person;

                           (iii) the sale, disposition or encumbrance of all or
         substantially all of the assets of a Pledged Entity, except for Liens
         in favor of Agent;

                           (iv) any change in the authorized number of shares,
         the stated capital or the authorized share capital of a Pledged Entity
         or the issuance of any additional shares of its Stock; or

                           (v) the alteration of the voting rights with respect
         to the Stock of a Pledged Entity.

                  (b) Each Pledgor shall be entitled, from time to time, to
collect and receive for its own use all cash dividends and interest paid in
respect of the Pledged Shares and Pledged Indebtedness pledged by it hereunder
to the extent not in violation of the Credit Agreement, except for any and all:
(i) dividends and interest paid or payable other than in cash in respect of any
such Pledged Collateral, Instruments and other property received, receivable or
otherwise distributed in respect of, or in exchange for, any such Pledged
Collateral; (ii) dividends and other distributions paid or payable in cash in
respect of any such Pledged Shares in connection with a partial or total
liquidation or dissolution or in connection with a reduction of capital, capital
surplus or paid-in capital of a Pledged Entity; and (iii) cash paid, payable or
otherwise distributed in respect of principal of, or in redemption of, or in
exchange for, any such Pledged Collateral; provided, that until actually paid
all rights to such distributions shall remain subject to the Lien in favor of
Agent created by this Agreement and the other Loan Documents.

                  (c) All dividends and interest (other than such cash dividends
and interest as are permitted to be paid to each Pledgor in accordance with
clause (b) above) and all other distributions in respect of any of the Pledged
Shares or Pledged Indebtedness, whenever paid or made, shall be delivered to
Agent to hold as Pledged Collateral and shall, if received by such Pledgor, be
received in trust for the benefit of Agent, for the benefit of Agent and
Lenders, be segregated from the other property or funds of such Pledgor, and be
forthwith delivered to Agent as Pledged Collateral in the same form as so
received (with any necessary indorsements).

                                       5
<PAGE>   6

         8. Defaults and Remedies; Proxy.

                  (a) Upon the occurrence and during the continuation of any
Event of Default, and concurrently with written notice to any Pledgor, Agent
(personally or through an agent) is hereby authorized and empowered to transfer
and register in its name or in the name of its nominee the whole or any part of
the Pledged Collateral pledged by such Pledgor hereunder, to exchange
certificates or Instruments representing or evidencing such Pledged Collateral
for certificates or Instruments of smaller or larger denominations, to exercise
the voting and all other rights as a holder with respect thereto, to collect and
receive all cash dividends, interest, principal and other distributions made
thereon, to sell in one or more sales after ten days' notice of the time and
place of any public sale or of the time at which a private sale is to take place
(which notice such Pledgor agrees is commercially reasonable) the whole or any
part of such Pledged Collateral and to otherwise act with respect to such
Pledged Collateral as though Agent were the outright owner thereof. Any sale
shall be made at a public or private sale at Agent's place of business, or at
any place to be named in the notice of sale, either for cash or upon credit or
for future delivery at such price as Agent may deem fair, and Agent may be the
purchaser of the whole or any part of such Pledged Collateral so sold and hold
the same thereafter in its own right free from any claim of any Pledgor or any
right of redemption. Each sale shall be made to the highest bidder, but Agent
reserves the right to reject any and all bids at such sale that, in its
discretion, it shall deem inadequate. Demands of performance, except as
otherwise herein specifically provided for, notices of sale, advertisements and
the presence of property at sale are hereby waived and any sale hereunder may be
conducted by an auctioneer or any officer or agent of Agent. EACH PLEDGOR HEREBY
IRREVOCABLY CONSTITUTES AND APPOINTS AGENT AS THE PROXY AND ATTORNEY-IN-FACT OF
SUCH PLEDGOR WITH RESPECT TO THE PLEDGED COLLATERAL PLEDGED BY SUCH PLEDGOR
HEREUNDER, INCLUDING THE RIGHT TO VOTE, SUBJECT TO THE TERMS OF THIS AGREEMENT,
THE PLEDGED SHARES OF SUCH PLEDGOR, WITH FULL POWER OF SUBSTITUTION TO DO SO.
THE APPOINTMENT OF AGENT AS PROXY AND ATTORNEY-IN-FACT IS COUPLED WITH AN
INTEREST AND SHALL BE IRREVOCABLE UNTIL THE TERMINATION DATE. IN ADDITION TO THE
RIGHT TO VOTE THE PLEDGED SHARES OF SUCH PLEDGOR, THE APPOINTMENT OF AGENT AS
PROXY AND ATTORNEY-IN-FACT SHALL INCLUDE, SUBJECT TO THE TERMS OF THIS
AGREEMENT, THE RIGHT TO EXERCISE ALL OTHER RIGHTS, POWERS, PRIVILEGES AND
REMEDIES TO WHICH A HOLDER OF SUCH PLEDGED SHARES WOULD BE ENTITLED (INCLUDING
GIVING OR WITHHOLDING WRITTEN CONSENTS OF SHAREHOLDERS, CALLING SPECIAL MEETINGS
OF SHAREHOLDERS AND VOTING AT SUCH MEETINGS). SUCH PROXY SHALL BE EFFECTIVE,
AUTOMATICALLY AND WITHOUT THE NECESSITY OF ANY ACTION (INCLUDING ANY TRANSFER OF
SUCH PLEDGED SHARES ON THE RECORD BOOKS OF THE ISSUER THEREOF) BY ANY PERSON
(INCLUDING THE ISSUER OF SUCH PLEDGED SHARES OR ANY OFFICER OR AGENT THEREOF),
UPON THE OCCURRENCE AND DURING THE CONTINUATION OF AN EVENT OF DEFAULT.
NOTWITHSTANDING THE FOREGOING, AGENT SHALL NOT HAVE ANY DUTY TO EXERCISE ANY
SUCH RIGHT OR TO PRESERVE THE SAME AND SHALL NOT BE LIABLE FOR ANY FAILURE TO DO
SO OR FOR ANY DELAY IN DOING SO.

                  (b) If, at the original time or times appointed for the sale
of the whole or any part of the Pledged Collateral pledged by any Pledgor
hereunder, (i) the highest bid, if there is but one sale, shall be inadequate to
discharge in full all the Secured Obligations, or (ii) such Pledged

                                       6
<PAGE>   7

Collateral is offered for sale in lots, the highest bid for the lot offered for
sale at any of such sales would indicate to Agent, in its discretion, that the
proceeds of the sales of the whole of such Pledged Collateral would be unlikely
to be sufficient to discharge all the Secured Obligations, then Agent may, on
one or more occasions and in its discretion, postpone any of said sales by
public announcement at the time of sale or the time of previous postponement of
sale, and no other notice of such postponement or postponements of sale need be
given, any other notice being hereby waived; provided, that any sale or sales
made after such postponement shall be after ten days' notice to such Pledgor.

                  (c) If, following the occurrence and during the continuance of
an Event of Default, Agent in its sole discretion determines that, in connection
with any actual or contemplated exercise of its rights (when permitted under
this Section 8) to sell the whole or any part of the Pledged Collateral
hereunder, it is necessary or advisable to effect a public registration of all
or part of the Pledged Collateral pursuant to the Securities Act (or any similar
statute), then each Pledgor shall, in an expeditious manner, cause the Pledged
Entity that issued Pledged Collateral owned or held by it to:

                           (i) Prepare and file with the Securities and Exchange
         Commission (the "Commission") a registration statement with respect to
         the Pledged Shares owned by it and in good faith use commercially
         reasonable efforts to cause such registration statement to become and
         remain effective;

                           (ii) Prepare and file with the Commission such
         amendments and supplements to such registration statement and the
         prospectus used in connection therewith as may be necessary to keep
         such registration statement effective and to comply with the provisions
         of the Securities Act with respect to the sale or other disposition of
         the Pledged Shares covered by such registration statement whenever
         Agent shall desire to sell or otherwise dispose of such Pledged Shares;

                           (iii) Furnish to Agent such numbers of copies of a
         prospectus and a preliminary prospectus, in conformity with the
         requirements of the Securities Act, and such other documents as Agent
         may request in order to facilitate the public sale or other disposition
         by Agent of the Pledged Shares owned by it;

                           (iv) Use commercially reasonable efforts to register
         or qualify the Pledged Shares covered by such registration statement
         under such other securities or blue sky laws of such jurisdictions
         within the United States and Puerto Rico as Agent shall request, and do
         such other reasonable acts and things as may be required of it to
         enable Agent to consummate the public sale or other disposition by
         Agent in such jurisdictions of such Pledged Shares by Agent;

                           (v) Furnish, at the request of Agent, on the date
         that Pledged Shares owned or held by it are delivered to the
         underwriters for sale pursuant to such registration or, if the security
         is not being sold through underwriters, on the date that the
         registration statement with respect to such Pledged Shares becomes
         effective, (A) an opinion, dated such date, of the independent counsel
         representing such registrant for the purposes of such registration,
         addressed to the underwriters, if any, and in the event such Pledged
         Shares are not being sold through underwriters, then to Agent, in
         customary form and covering matters of the type customarily covered in
         such legal opinions; and (B) a comfort letter, dated such date, from
         the independent certified public accountants of such registrant,
         addressed to the

                                       7
<PAGE>   8

         underwriters, if any, and in the event such Pledged Shares are not
         being sold through underwriters, then to Agent, in a customary form and
         covering matters of the type customarily covered by such comfort
         letters and as the underwriters or Agent shall reasonably request. The
         opinion of counsel referred to above shall additionally cover such
         other legal matters with respect to the registration in respect of
         which such opinion is being given as Agent may reasonably request. The
         comfort letter referred to above from the independent certified public
         accountants shall additionally cover such other financial matters
         (including information as to the period ending not more than five
         Business Days prior to the date of such letter) with respect to the
         registration in respect of which such letter is being given as Agent
         may reasonably request; and

                           (vi) Otherwise use commercially reasonable efforts to
         comply with all applicable rules and regulations of the Commission, and
         make available to its security holders, as soon as reasonably
         practicable but not later than 18 months after the effective date of
         such registration statement, an earnings statement covering the period
         of at least 12 months beginning with the first full month after the
         effective date of such registration statement, which earnings statement
         shall satisfy the provisions of Section 11(a) of the Securities Act.

                  (d) All expenses incurred in complying with Section 8(c),
including all registration and filing fees (including all expenses incident to
filing with the National Association of Securities Dealers, Inc.), printing
expenses, fees and disbursements of counsel for the registrant, the fees and
expenses of counsel for Agent, expenses of the independent certified public
accountants (including any special audits incident to or required by any such
registration) and expenses of complying with the securities or blue sky laws of
any jurisdictions, shall be paid by Pledgors.

                  (e) If, at any time when Agent shall determine to exercise its
right to sell the whole or any part of the Pledged Collateral hereunder, such
Pledged Collateral or the part thereof to be sold shall not, for any reason
whatsoever, be effectively registered under the Securities Act (or any similar
statute), then Agent may, in its discretion (subject only to applicable
requirements of law), sell such Pledged Collateral or part thereof by private
sale in such manner and under such circumstances as Agent may deem necessary or
advisable, but subject to the other requirements of this Section 8, and shall
not be required to effect such registration or to cause the same to be effected.
Without limiting the generality of the foregoing, in any such event, Agent in
its discretion may (i) in accordance with applicable securities laws proceed to
make such private sale notwithstanding that a registration statement for the
purpose of registering such Pledged Collateral or part thereof could be or shall
have been filed under the Securities Act (or similar statute), (ii) approach and
negotiate with a single possible purchaser to effect such sale, and (iii)
restrict such sale to a purchaser who is an accredited investor under the
Securities Act and who will represent and agree that such purchaser is
purchasing for its own account, for investment and not with a view to the
distribution or sale of such Pledged Collateral or any part thereof. In addition
to a private sale as provided above in this Section 8, if any of the Pledged
Collateral shall not be freely distributable to the public without registration
under the Securities Act (or similar statute) at the time of any proposed sale
pursuant to this Section 8, then Agent shall not be required to effect such
registration or cause the same to be effected but, in its discretion (subject
only to applicable requirements of law), may require that any sale hereunder
(including a sale at auction) be conducted subject to restrictions:

                                       8
<PAGE>   9

                                    (A) as to the financial sophistication and
         ability of any Person permitted to bid or purchase at any such sale;

                                    (B) as to the content of legends to be
         placed upon any certificates representing the Pledged Collateral sold
         in such sale, including restrictions on future transfer thereof;

                                    (C) as to the representations required to be
         made by each Person bidding or purchasing at such sale relating to such
         Person's access to financial information about such Pledgor and such
         Person's intentions as to the holding of the Pledged Collateral so sold
         for investment for its own account and not with a view to the
         distribution thereof; and

                                    (D) as to such other matters as Agent may,
         in its discretion, deem necessary or appropriate in order that such
         sale (notwithstanding any failure so to register) may be effected in
         compliance with the Bankruptcy Code and other laws affecting the
         enforcement of creditors' rights and the Securities Act and all
         applicable state securities laws.

                  (f) Each Pledgor recognizes that Agent may be unable to effect
a public sale of any or all the Pledged Collateral and may be compelled to
resort to one or more private sales thereof in accordance with Section 8(e)
above. Each Pledgor also acknowledges that any such private sale may result in
prices and other terms less favorable to the seller than if such sale were a
public sale and, notwithstanding such circumstances, agrees that any such
private sale shall not be deemed to have been made in a commercially
unreasonable manner solely by virtue of such sale being private. Agent shall be
under no obligation to delay a sale of any of the Pledged Collateral for the
period of time necessary to permit the applicable Pledged Entity to register
such securities for public sale under the Securities Act, or under applicable
state securities laws, even if the Pledgor owning or holding such Pledged
Collateral and the Pledged Entity would agree to do so.

                  (g) Each Pledgor agrees to the maximum extent permitted by
applicable law that following the occurrence and during the continuance of an
Event of Default it will not at any time plead, claim or take the benefit of any
appraisal, valuation, stay, extension, moratorium or redemption law now or
hereafter in force in order to prevent or delay the enforcement of this
Agreement, or the absolute sale of the whole or any part of the Pledged
Collateral or the possession thereof by any purchaser at any sale hereunder, and
each Pledgor waives the benefit of all such laws to the extent it lawfully may
do so. Each Pledgor agrees that it will not interfere with any right, power or
remedy of Agent provided for in this Agreement or now or hereafter existing at
law or in equity or by statute or otherwise, or the exercise or beginning of the
exercise by Agent of any one or more of such rights, powers or remedies. No
failure or delay on the part of Agent to exercise any such right, power or
remedy and no notice or demand that may be given to or made upon any Pledgor by
Agent with respect to any such remedies shall operate as a waiver thereof, or
limit or impair Agent's right to take any action or to exercise any power or
remedy hereunder, without notice or demand, or prejudice its rights as against
any Pledgor in any respect.

                  (h) Each Pledgor further agrees that a breach of any of the
covenants contained in this Section 8 will cause irreparable injury to Agent,
that Agent shall have no adequate remedy at law in respect of such breach and,
as a consequence, agrees that each and every covenant contained in this Section
8 shall be specifically enforceable against such Pledgor, and each Pledgor
hereby waives and agrees not to assert any defenses against an action for
specific performance of such

                                       9
<PAGE>   10

covenants except for a defense that the Secured Obligations are not then due and
payable in accordance with the agreements and Instruments governing and
evidencing the Secured Obligations.

         9. Waiver. No delay on Agent's part in exercising any power of sale,
Lien, option or other right hereunder, and no notice or demand that may be given
to or made upon any Pledgor by Agent with respect to any power of sale, Lien,
option or other right hereunder, shall constitute a waiver thereof, or limit or
impair Agent's right to take any action or to exercise any power of sale, Lien,
option, or any other right hereunder, without notice or demand, or prejudice
Agent's rights as against any Pledgor in any respect.

         10. Assignment. Agent may assign, indorse or transfer any Instrument
evidencing all or any part of the Secured Obligations as provided in, and in
accordance with, the Credit Agreement, and the holder of such Instrument shall
be entitled to the benefits of this Agreement.

         11. Termination. Immediately following the Termination Date, Agent
shall deliver to each Pledgor (as the case may be) the Pledged Collateral
pledged by such Pledgor at the time subject to this Agreement and all
instruments of assignment executed in connection therewith, free and clear of
the Liens created in favor of Agent under this Agreement and the other Loan
Documents and, except as otherwise provided herein, all of such Pledgor's
obligations hereunder shall at such time terminate.

         12. Lien Absolute. All rights of Agent hereunder, and all obligations
of each Pledgor hereunder, shall be absolute and unconditional irrespective of:

                  (a) any lack of validity or enforceability of the Credit
Agreement, any other Loan Document or any other agreement or Instrument
governing or evidencing any Secured Obligations;

                  (b) any change in the time, manner or place of payment of, or
in any other term of, all or any part of the Secured Obligations, or any other
amendment or waiver of or any consent to any departure from the Credit
Agreement, any other Loan Document or any other agreement or Instrument
governing or evidencing any Secured Obligations;

                  (c) any exchange, release or non-perfection of any other
Collateral or any release or amendment or waiver of, or consent to departure
from any guaranty for, all or any of the Secured Obligations;

                  (d) the insolvency of any Pledgor; or

                  (e) any other circumstance that might otherwise constitute a
defense available to, or a discharge of, such Pledgor.

         13. Release. Each Pledgor consents and agrees that Agent may at any
time, or from time to time, in its discretion (subject to the terms of the
Credit Agreement):

                  (a) renew, extend or change the time of payment of, or the
manner, place or terms of payment of, all or any part of the Secured
Obligations; and

                                       10
<PAGE>   11

                  (b) exchange, release or surrender all or any of the
Collateral (including the Pledged Collateral), or any part thereof, by
whomsoever deposited, that is now or may hereafter be held by Agent in
connection with all or any of the Secured Obligations; all in such manner and
upon such terms as Agent may deem proper, and without notice to or further
assent from such Pledgor, it being hereby agreed that such Pledgor shall be and
remain bound by this Agreement irrespective of the value or condition of any of
the Collateral and notwithstanding any such change, exchange, settlement,
compromise, surrender, release, renewal or extension, and notwithstanding also
that the Secured Obligations may, at any time, exceed the aggregate principal
amount thereof set forth in the Credit Agreement or any other agreement
governing any Secured Obligations. Each Pledgor hereby waives notice of
acceptance of this Agreement, presentment, demand, protest and notice of
dishonor of any and all of the Secured Obligations, and any delay by Agent or
any Lender in commencing suit against any party hereto or Person liable hereon,
and in giving any notice to or of making any claim or demand hereunder upon such
Pledgor. No act or omission of any kind on Agent's part shall in any event
affect or impair this Agreement.

         14. Reinstatement. This Agreement shall remain in full force and effect
and continue to be effective should any petition be filed by or against any
Pledgor or any Pledged Entity for liquidation or reorganization, should any
Pledgor or any Pledged Entity become insolvent or make an assignment for the
benefit of creditors or should a receiver or trustee be appointed for all or any
significant part of any Pledgor's or Pledged Entity's assets, and shall continue
to be effective or be reinstated, as the case may be, if at any time payment and
performance of the Secured Obligations, or any part thereof, is, pursuant to
applicable law, rescinded or reduced in amount, or must otherwise be restored or
returned by any obligee of the Secured Obligations, whether as a "voidable
preference," "fraudulent transfer," or otherwise, all as though such payment or
performance had not been made. In the event that any payment, or any part
thereof, is rescinded, reduced, restored or returned, the Secured Obligations
shall be reinstated and deemed reduced only by such amount paid and not so
rescinded, reduced, restored or returned.

         15. Miscellaneous.

                  (a) Agent may execute any of its duties hereunder by or
through agents or employees and shall be entitled to advice of counsel
concerning all matters pertaining to its duties hereunder.

                  (b) Each Pledgor agrees to promptly reimburse Agent for actual
out-of-pocket expenses, including reasonable counsel fees, incurred by Agent in
connection with the administration and enforcement of this Agreement.

                  (c) Neither Agent nor any of its respective officers,
directors, employees, agents or counsel shall be liable for any action lawfully
taken or omitted to be taken by it or them hereunder or in connection herewith,
except for its or their own gross negligence or willful misconduct as finally
determined by a court of competent jurisdiction.

                  (d) THIS AGREEMENT SHALL BE BINDING UPON EACH PLEDGOR AND ITS
SUCCESSORS AND ASSIGNS (INCLUDING A TRUSTEE OR DEBTOR-IN-POSSESSION ON BEHALF OF
SUCH PLEDGOR), AND SHALL INURE TO THE BENEFIT OF, AND BE ENFORCEABLE BY, AGENT
AND ITS SUCCESSORS AND ASSIGNS, AND SHALL BE GOVERNED BY, AND CONSTRUED AND
ENFORCED IN ACCORDANCE

                                       11
<PAGE>   12

WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND
PERFORMED IN THAT STATE, AND NONE OF THE TERMS OR PROVISIONS OF THIS AGREEMENT
MAY BE WAIVED, ALTERED, MODIFIED OR AMENDED EXCEPT IN WRITING DULY SIGNED FOR
AND ON BEHALF OF AGENT AND EACH PLEDGOR.

         16. Severability. If for any reason any provision or provisions hereof
are determined to be invalid and contrary to any existing or future law, such
invalidity shall not impair the operation of or affect those portions of this
Agreement that are valid.

         17. Notices. Except as otherwise provided herein, whenever it is
provided herein that any notice, demand, request, consent, approval, declaration
or other communication shall or may be given to or served upon any of the
parties by any other party, or whenever any of the parties desires to give or
serve upon any other party any communication with respect to this Agreement,
each such notice, demand, request, consent, approval, declaration or other
communication shall be in writing and shall be given in the manner, and deemed
received, as provided for in the Credit Agreement.

         18. Section Titles. The section titles contained in this Agreement are
and shall be without substantive meaning or content of any kind whatsoever and
are not a part of the agreement between the parties hereto.

         19. Counterparts. This Agreement may be executed in any number of
counterparts, which shall, collectively and separately, constitute one
agreement.

         20. Benefit of Lenders. All Liens granted or contemplated hereby shall
be for the benefit of Agent, for the benefit of Agent and Lenders, and all
proceeds or payments realized from the Pledged Collateral in accordance herewith
shall be applied to the Obligations in accordance with the terms of the Credit
Agreement.

                                       12
<PAGE>   13

                  IN WITNESS WHEREOF, the parties hereto have caused this Pledge
Agreement to be duly executed as of the date first written above.

"PLEDGORS"                                  "AGENT"

UNION-TRANSPORT CORPORATION                 GENERAL ELECTRIC CAPITAL CORPORATION

By:  /s/ THURSO BARENDSE                    By:  /s/ MARTIN S. GREENBERG
    ---------------------------------           --------------------------------
Name:   Thurso Barendse                         Martin S. Greenberg
      -------------------------------           Duly Authorized Signatory
Title:  VP Finance
       ------------------------------

UNION-TRANSPORT (U.S.)
HOLDINGS, INC.

By:  /s/ THURSO BARENDSE
    ---------------------------------
Name:   Thurso Barendse
      -------------------------------
Title:  VP Finance
       ------------------------------

UNION-TRANSPORT BROKERAGE CORP.

By:   /s/ THURSO BARENDSE
    ---------------------------------
Name:   Thurso Barendse
      -------------------------------
Title:  VP Finance
       ------------------------------

UT SERVICES, INC.

By:   /s/ THURSO BARENDSE
    ---------------------------------
Name:   Thurso Barendse
      -------------------------------
Title:  VP Finance
       ------------------------------

UNION-TRANSPORT LOGISTICS INC.

By:   /s/ THURSO BARENDSE
    ---------------------------------
Name:   Thurso Barendse
      -------------------------------
Title:  VP Finance
       ------------------------------

VANGUARD CARGO SYSTEMS, INC.

By:   /s/ THURSO BARENDSE
    ---------------------------------
Name:   Thurso Barendse
      -------------------------------
Title:  VP Finance
       ------------------------------

                                       13

<PAGE>   14

                                   SCHEDULE I

                                     PART A

                                 PLEDGED SHARES

<TABLE>
<CAPTION>
    Pledged Entity          Class of Stock         Certificate No.         No. Of shares          % Outstanding
    --------------          --------------         ---------------         -------------          -------------
<S>                         <C>                    <C>                     <C>                    <C>
UT Brokerage                Common Stock                  3                    1,250                  100%
                            of UT Brokerage

UT Services                 Common Stock                  2                   10,000                  100%
                            of UT Services

UT Vanguard                 Common Stock                  2                       49                   49%
                            of UT Vanguard

UT Vanguard                 Common Stock                  3                       51                   51%
                            of UT Vanguard

Borrower                    Common Stock                  9                      200                  100%
                            of Borrower

UT Logistics                Common Stock                  3                      600                  100%
                            of UT Logistics
</TABLE>

                                     PART B

                              PLEDGED INDEBTEDNESS

<TABLE>
<CAPTION>
    Pledged Entity         Principal Amount          Issue Date            Maturity Date          Interest Rate
    --------------         ----------------          ----------            -------------          -------------
<S>                        <C>                       <C>                   <C>                    <C>
UT Holdings, Borrower,     The aggregate unpaid      August 15, 2000                                  None
UT Logistics, UT           amount of all advances,
Vanguard, UT Brokerage     indebtedness, loans,
                           payments and other
                           extensions of credit
                           and obligations made by
                           Holder to Company, or
                           otherwise owing by
                           Company to Holder from
                           time to time, as set
                           forth on the Books and
                           Records of Holder.

</TABLE>

                          [TO BE PROVIDED BY PLEDGORS]

                                       14
<PAGE>   15

                                   SCHEDULE II

                                PLEDGE AMENDMENT

                  This Pledge Amendment, dated as of ________ ___, ___ is
delivered pursuant to Section 6(d) of the Pledge Agreement referred to below.
All defined terms herein shall have the meanings assigned thereto or
incorporated by reference in the Pledge Agreement. The undersigned hereby
certifies that the representations and warranties in Section 5 of the Pledge
Agreement are and continue to be true and correct, both as to the promissory
notes, other Instruments and shares pledged prior to this Pledge Amendment and
as to the promissory notes, other Instruments and shares pledged pursuant to
this Pledge Amendment. The undersigned further agrees that this Pledge Amendment
may be attached to that certain Pledge Agreement dated as of August 15, 2000
(the "Pledge Agreement"), by and among Union-Transport Corporation,
Union-Transport (U.S.) Holdings, Inc., Union-Transport Brokerage Corporation, UT
Services, Inc., Union-Transport Logistics Inc., and Vanguard Cargo Systems,
Inc., as Pledgors; and General Electric Capital Corporation, as Agent, and that
the Pledged Shares and Pledged Indebtedness listed in this Pledge Amendment
shall be and become a part of the Pledged Collateral referred to in the Pledge
Agreement and shall secure all Secured Obligations referred to in the Pledge
Agreement. The undersigned acknowledges that any promissory notes, other
Instruments or shares not included in the Pledged Collateral at the discretion
of Agent may not otherwise be pledged by Pledgor to any other Person or
otherwise be used as security for any obligations other than the Secured
Obligations.

                                        "PLEDGOR"

                                        [                                      ]

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

                                 PLEDGED SHARES

<TABLE>
<CAPTION>
    Pledged Entity          Class of Stock         Certificate No.         No. Of shares          % Outstanding
    --------------          --------------         ---------------         -------------          -------------
<S>                         <C>                    <C>                     <C>                    <C>
                                                                                                      100%
</TABLE>

                              PLEDGED INDEBTEDNESS

<TABLE>
<CAPTION>
    Pledged Entity         Principal Amount          Issue Date            Maturity Date          Interest Rate
    --------------         ----------------          ----------            -------------          -------------
<S>                        <C>                       <C>                   <C>                    <C>

</TABLE>

                                       15

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