Document:

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                                                                  EXHIBIT 10.13

                                                                       LOUISIANA

                               SECURITY AGREEMENT

      THIS SECURITY AGREEMENT entered into as of the 29th day of June, 2004, by
and between LOUISIANA, TRANSPORTATION, INC., a Michigan corporation whose
address is 11355 Stephens Road, Warren, Michigan 48089 ("Grantor"), and FIRST
TENNESSEE BANK NATIONAL ASSOCIATION, a national banking association whose
address is 165 Madison Avenue, Memphis, Tennessee 38103, Attention: Commercial
Finance Division ("Bank").

                                  WITNESSETH:

      That for good and valuable considerations, the receipt and sufficiency of
which are hereby acknowledged, the Grantor hereby agrees with Bank as follows:

      1. Definitions. Reference is made to the Loan Agreement, bearing date as
of the 31st day December, 2001, by and among Universal Truckload Services, Inc.
("Universal Truckload"), The Mason and Dixon Lines, incorporated ("Mason
Dixon"), Universal Am-Can, Ltd. ("Universal Am-Can"), and the Bank therein
mentioned and described, as amended by that certain First Amendment to Loan
Agreement by and among Universal Truckload, Mason Dixon, Universal Am-Can, Mason
Dixon Intermodal, Inc. ("Mason Intermodal"), Grantor and Economy Transport, Inc.
("Economy") as amended, the "Loan Agreement") said loan agreement being
incorporated. herein by reference. All terms used in this Security Agreement
which are defined in the Loan Agreement or in Article 9 of the Uniform
Commercial Code (the "Code") of Tennessee and which are not otherwise defined
herein shall have the same meanings herein as set forth therein.

      2. Grant of Security Interest. As collateral security for all of the
Obligations (as defined in Section 3 hereof), the Grantor hereby pledges and
assigns to Bank, and grants to Bank a continuing security interest in, the
following (the "Collateral"):

            a) all of the Grantor's accounts, accounts receivable, chattel
      paper, instruments, and other obligations of any kind, whether or not
      evidenced by an instrument or chattel paper, and whether or not earned by
      performance (collectively hereinafter "Accounts Receivable" or
      "Receivables") whether now or hereafter existing, arising out of or in
      connection with the sale of goods or the rendering of services, and all
      rights now or there after existing in and all security agreements, and
      other contracts securing or otherwise relating to any such Accounts
      Receivable but excluded from Accounts Receivable are any accounts arising
      out of the leasing of trucks, trailers, tractors and equipment;

            b) all of Grantor's customer lists, original books and records,
      ledger and account cards, computer tapes, discs and printouts, whether now
      in existence or hereafter created pertaining to the collateral described
      in paragraph 2(a).

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            c) All proceeds ("Proceeds") of any and all of the foregoing
               Collateral including, without limitation, all moneys due or to
               become due in connection with any of the Collateral, guaranties
               and security for the payment of such moneys. (Although proceeds
               are covered Bank does not authorize the sale or other transfer
               of any of the Collateral or the transfer of any interest in the
               Collateral, except for the sale of goods and the ordinary course
               of Grantor's business);

in each case, whether now owned or hereafter acquired by the Grantor and
howsoever its interest therein may arise or appear (whether by ownership, lease,
security interest, claim, or otherwise).

      3. Security for Obligations. The security interest created hereby in the
Collateral constitutes continuing collateral security for all of the following
obligations, whether now existing or hereafter incurred (the "Obligations"):

            a) the full and prompt payment, when due, of the indebtedness (and
      interest thereon) evidenced and to be evidenced by that certain promissory
      note, bearing date of the 31st day of December, 2001, in the principal sum
      of Twenty Million Dollars ($20,000,000.00), executed by Universal
      Truckload, Mason Dixon and Universal Am-Can and payable to the order of
      Bank, as amended and restated by the Amended and Restated Promissory Note
      dated June 29, 2004, in the principal sum of Forty Million Dollar
      ($40,000,000,00), executed by Universal Truckload, Mason Dixon, Mason
      Intermodal, Universal Am-Can, Grantor and Economy and any and all
      renewals, modifications, and extensions of said note, in whole or in part;

            b) the due performance and observance by the Grantor, Mason Dixon,
      Mason Intermodal, Economy, Universal Truckload and/or Universal Am-Can, as
      applicable, of all of its covenants, agreements, representations,
      liabilities, obligations, and undertakings as set forth herein, or in the
      Loan Agreement (as the same may be modified, renewed or extended from time
      to time), in the Mason Dixon Security Agreement, in the Universal Security
      Agreement, in the Economy Security Agreement, in the Louisiana Security
      Agreement or in any other instrument or document which now or at any time
      hereafter evidences or secures, in whole or in part, all or any part of
      the Obligations hereby secured; and

            c) the prompt payment and performance of any and all other present
      and future obligations of Grantor, Mason Dixon, Mason Intermodal,
      Universal Am-Can, Economy or Universal Truckload to Bank with respect to
      any letters of or edit issued at any time by Bank for the benefit of
      Grantor, Mason Dixon, Mason Intermodal, Universal Am-Can, Economy or
      Universal Truckload under the Loan Agreement.

      4. Representations and Warranties. The Grantor represents and warrants as
follows:

      a) The Grantor's chief place of business and chief executive office, the
place where the Grantor keeps its records concerning Accounts Receivable and all
originals of all chattel.

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paper which constitute Accounts Receivable are located at the address specified
for the Grantor in the initial paragraph hereof. None of the Accounts Receivable
is evidenced by a promissory note or other instrument. Grantor is a Michigan
corporation registered in the state of Michigan and has as its organizational
number the following: 133-290.

      (b) (i) Except as otherwise specifically mentioned in EXHIBIT "A", hereto
      attached, the Grantor owns the Collateral free and clear of any lien,
      security interest or other charge or encumbrance except for the security
      interest created by this Agreement.

            (ii) Except for the financing statements filed in favor of Bank
      relating to this Agreement, and except for any financing statements filed
      with respect to the security interests mentioned in EXHIBIT "A", hereto
      attached, no other financing statement or other instrument similar in
      effect covering all or any part of the Collateral is on file in any
      recording office.

      (c) The exercise by Bank of its rights and remedies hereunder will not
contravene any law or governmental regulation or any contractual restriction
binding on or affecting the Grantor or any of its properties and will not result
in or require the creation of any lien, security interest or other charge or
encumbrance upon or with respect to any of its properties.

      (d) No authorization or approval or other action by, and no notice to or
filing with, any governmental authority or other regulatory body is required
either for the grant by the Grantor of the security interest created hereby in
the Collateral or for the exercise by Bank of its rights and remedies hereunder.

      (e) This Agreement creates a valid security interest in favor of the Bank
in the Collateral. The taking possession by the Bank of all instruments and
chattel paper constituting Collateral from time to time, and the filing of
financing statements with the Michigan Secretary of state will perfect and
establish the priority of the Bank's security interest hereunder in the
Collateral, subject to no other liens and encumbrances, except as otherwise
specifically disclosed in EXHIBIT "A". Except as set forth in this Section 4(c),
no action is necessary or desirable to perfect or otherwise protect such
security interest.

      5. Covenants as to the Collateral. So long as any of the Obligations shall
remain outstanding, unless Bank shall otherwise consent in writing:

      (a) Further Assurances. The Grantor will at its expense, at any time and
from time to time, promptly execute and deliver all further instruments and
documents and take all further action that Bank reasonably deems necessary or
desirable or the Bank may reasonably request in order (i) to perfect and protect
the security interest created or purported to be created hereby; (ii) to enable
Bank to exercise and enforce its rights and remedies hereunder in respect of the
Collateral; or (iii) to otherwise effect the purposes of this Agreement,
including, without limitation: (A) executing and filing such financing or
continuation statements, or amendments thereto, as Bank deems necessary or
desirable or that Bank may request in order to perfect and preserve the security
interest created or purported to be created hereby; (B) subject to the
limitations regarding field inspections set forth in Section 5(d),
(iii), furnishing to Bank from time to time statements and schedules further
identifying and describing the Collateral and such other

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reports in connection with the Collateral as Bank may reasonably request, all
in reasonable detail; (C) marking conspicuously each chattel paper included in
the Accounts Receivable and, at the request of the Bank, each of its records
pertaining to the Account Receivable with a legend, in form and substance
satisfactory to the Bank, indicating that such chattel paper is subject to the
security interest created hereby; and (D) if any Account Receivable shall be
evidenced by a promissory note or other instrument or chattel paper, delivering
and pledging to the Bank hereunder such note, instrument or chattel paper duly
endorsed and accompanied by executed instruments of transfer or assignment, all
in form and substance satisfactory to the Bank.

      (b) Taxes. The Grantor will pay promptly before delinquent all property
and other taxes, assessments, and governmental charges or levies imposed upon,
and all claims (including claims for labor, materials, and supplies) against,
the Collateral, except to the extent the validity thereof is being contested
diligently and in good faith by proper proceedings satisfactory to the Bank.

      (c) Place of Organization. Grantor will not change its place of
incorporation without providing the Bank at least thirty (30) days written
notice.

      (d) As to Receivables.

            (i) The Grantor will (A) keep its chief place of business and chief
      executive office and all originals of all chattel paper which constitute
      Accounts Receivable, at the location(s) specified in paragraph 4(a)
      thereof, and (B) maintain and preserve complete and accurate records
      concerning the Receivables, and such chattel paper.

            (ii) As of the time any Receivable becomes subject to the security
      interest granted by this Security Agreement, including, without
      limitation, as of each time any specific assignment or transfer or
      identification is made to Bank of any Receivable, Grantor shall be deemed
      to have warranted as to each and all of such Receivables that each
      Receivable that is necessary to support the Borrowing Base (as defined in
      the Loan Agreement) meets the criteria of an Acceptable Account and such
      Receivable and all papers and documents relating thereto are genuine and
      in all respects what they purport to be; that each Receivable is valid and
      subsisting and arises out of all bond fide sale of goods sold and
      delivered, or in the process of being delivered, or out of land for
      services theretofore actually rendered, to the account debtor named in
      the Receivable; that the amount of the Receivable represented as owing is
      the correct amount actually and unconditionally owing except for normal
      cash discounts and is not disputed, and except for such normal cash
      discount is not subject to any setoffs, credits, deductions or
      counter-charges; that the Grantor is the owner thereof free and clear of
      all prior liens, except for the security interest in favor of Bank and any
      security interest specifically mentioned in "EXHIBIT" "A" hereto attached;
      and that no surety bond was required or given in connection with said
      Receivable or the contracts or purchase orders out of which the same
      arose; and that Grantor has no notice of or reason to believe that the
      account debtor is subject to any pending bankruptcy proceeding, insolvency
      proceeding or operations of any creditors committee.

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            (iii) Bank shall have the privilege at any time upon its request, of
      inspection during reasonable business hours of any of the business
      properties or premises of the Grantor and the books and records of the
      Grantor relating to said Receivables and inventory or the processing or
      collection thereof as well as those relating to its general business
      affair and financial condition. Bank shall have the right at any time,
      after an Event of Default, to notify any and all account debtors to make
      payment thereof directly to Bank; but to the extent Bank does not so
      elect, Grantor shall continue to collect the Receivables. Upon the
      occurrence of an Event of Default, except as the Bank shall otherwise
      expressly agree in writing, all proceeds of collection of Receivables
      received by the Grantor shall be forthwith accounted for and transmitted
      to Bank in the form as received by the Grantor and shall not be coming led
      with any funds of the Grantor. In the event the account debtor of any
      Receivable included in this Security Agreement shall also be indebted to
      the Grantor in any other respect and such account debtor shall make
      payment without designating the particular indebtedness against which it
      is to apply, such payment shall be conclusively presumed to be payment on
      the Receivable of such account debtor included in this Security Agreement.
      Any proceeds of Receivables so transmitted to Bank under the terms hereof
      shall be handled and administered by Bank in and through a Remittance or
      similar account, but the Guarantor acknowledges that the maintenance of
      such an account by Bank is solely for its convenience in facilitating its
      own operations pursuant hereto and that Grantor has not and shall not have
      any right, title or interest in said Receivable or in the amounts at any
      time to the credit thereof. Except to the extent Bank may from time to
      time in its discretion release proceeds to the Grantor for use in its
      business, all proceeds received by Bank shall be applied on the
      Obligations secured thereby, whether or not such Obligations shall have by
      their terms matured, such application to be made at such intervals as Bank
      may determine, except that Bank need not apply or give credit for any item
      included in such proceeds until two (2) business days after receipt by
      Bank of such item at its Main Office in Memphis, Tennessee. Items received
      after 2:00 o' clock p.m. on any business day shall be deemed to have been
      received the following business day. In administering the collection of
      proceeds as herein provided for, Bank may accept checks or draft in any
      amount and bearing any notation without incurring liability to Grantor for
      so doing. Grantor will accompany each transmission of proceeds of
      Receivables to Bank with a report in such form as Bank may require in
      order identifying the Receivables to which such proceeds apply.

            (iv) Upon the occurrence of an Event of Default, bank shall have the
      night, but shall incur no liability for failing to do so, in its own name,
      of in the name of the Grantor to demand, collect, receive, receipt for,
      sue for, compound and give acquaintance for, any and all amounts due or to
      become due on the Receivables, to adjust, settle or compromise the amount
      or payment thereof, in the same manner and to the same extent as Grantor
      might have done, and to endorse the name of the Grantor on all commercial
      paper given in payment or part payment thereof, and in its discretion to
      file any claim or take any action or proceedings which Bank may deem
      necessary or appropriate to protect and preserve and realize upon the
      security interest of Bank in the Receivables and the proceeds thereof.

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            (v) Grantor will from time to time execute such further instruments
      and do such further acts and things as Bank may reasonably require by way
      of further assurance to Bank of the matters and things herein provided for
      or intended so to be, including but not limited to the execution of
      financing statements necessary to perfect the Bank's security interest in
      the Collateral. Without limiting the foregoing, Grantor agrees to execute
      and deliver to Bank an assignment as security or other form of
      identification in the form required by Bank of all Receivables at any time
      included under this Security Agreement, together with such other evidence
      of the existence and identify of such Receivables as Bank may reasonably
      require; and Grantor will mark its books and records to reflect this
      Security Agreement.

      (e) Transfer and Other Liens. Without the prior consent of Bank, the
Grantor will not (i) sell, assign (by operation of law or otherwise), discount,
exchange, or otherwise dispose of any of the Collateral; or (ii) create or
suffer to exist any lien, security interest or other charge or encumbrance upon
or with respect to any of the Collateral except for the security interest
created by this Agreement, and except for any security interest specifically
disclosed in EXHIBIT "A", attached hereto.

     (f) Periodic Reports: On or before the tenth (10th) day of each calendar
month, furnish to Bank an Accounts Receivable aging report which shall report
Grantor's Total Accounts Receivable as of the close of business for the previous
month and shall segregate such Accounts Receivable into categories, according to
whether such Accounts Receivable remain unpaid for more than thirty (30) days,
or for more than sixty (60) days, for more than ninety (90) days or for more
than one hundred twenty (120) days from the date of invoice.

      6. Additional Provisions Concerning the Collateral.

      (a) The Grantor hereby authorizes Bank to file, without the Signature of
the Grantor where permitted by law, one or more continuation statements relating
to the Collateral.

     (b) The Grantor hereby irrevocably appoints Bank the Grantor's
attorney-in-fact and proxy, with full authority in the place and stead of the
Grantor and in the name of the Grantor or otherwise, from time to time in the
Bank's discretion, upon the occurrence of an Event of Default, to take any of
the following actions: (i) to ask, demand, collect, sue for, recover, compound,
receive, and give acquittance and receipts for moneys due and to become due
under or in respect of any of the Collateral; (ii) to receive, endorse, and
collect any checks, drafts or other instruments, documents, and chattel paper in
connection with clause (i) above; (iii) to sign its name on any invoice or bill
of lading relating to any Receivable, on drafts against customers, on schedules
and assignments of Receivables, on notices of assignment, on verification of
accounts and on notices to customers (including notices directing customers to
make payment direct to Bank); (iv) to notify the post office authorities to
change the address for delivery of its mail to an address designated by Bank, to
receive, open and process all mail addressed to Grantor, to send requests for
verification of Receivables to customers; and (v) to file any claims or take any
action or institute any proceedings which Bank may deem necessary or desirable
for the collection of any of the Collateral or otherwise to enforce the rights
of Bank with respect to any of the Collateral.

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     (c) If the Grantor fails to perform any agreement contained herein, if not
cured by Grantor within the Cure Period, Bank may itself perform, or cause
performance of, such agreement or obligation, and the reasonable costs and
expenses of Bank incurred in connection therewith on a time and charges basis
shall be payable by the Grantor under Section 9 hereof, and shall be fully
secured hereby; provided that the Bank may perform or cause the performance of
any of Grantor's agreement or obligation contained herein immediately if
Grantor's failure to perform would materially adversely affect the Collateral or
the Bank's security interest therein.

      (d) The powers conferred on Bank hereunder are solely to protect its
interest in the Collateral and shall not impose any duty upon it to exercise
any such powers. Except for the safe custody of any Collateral in its possession
and the accounting for moneys actually received by it hereunder, Bank shall have
no duty as to any Collateral or as to the taking of any necessary steps to
preserve rights against prior parties or any other rights pertaining to any
Collateral; provided that so long as there is no Event of Default, in the event
that the Grantor initiates suit to collect any of the Accounts Receivable, in
the event that the Bank is a necessary party to such litigation, Bank agrees to
join in such suit at the expense of the Grantor.

      (e) Anything herein to the contrary notwithstanding, (i) the Grantor
shall remain liable under any contracts and agreements relating to the
Collateral to the extent set forth therein to perform all of its obligations
thereunder to the same extent as if this Agreement had not been executed; (ii)
the exercise by Bank of any of its rights hereunder shall not release the
Grantor from any of its obligations under the contracts and agreements relating
to the Collateral; and (iii) Bank shall not have any obligation or liability by
reason of this Agreement under any contracts and agreements relating to the
Collateral, nor shall Bank be obligated to perform any of the obligations or
duties of the Grantor thereunder or to take any action to collect or enforce any
claim for payment assigned hereunder.

      7. Remedies Upon Default. If an Event of Default shall have occurred:

     (a) Bank may exercise in respect of the Collateral, in addition to other
rights and remedies provided for herein or otherwise available to it, all the
rights and remedies of a secured party on default under the Code whether or not
the Code applies to the affected Collateral), and also may (i) require the
Grantor to, and the Grantor hereby agrees that it will at its expense and upon
request of Bank forthwith, assemble all or part of the Collateral as directed by
Bank and make it available to Bank at a place to be designated by Bank which its
reasonably convenient to Bank; and (ii) without notice except as specified
below, sell the Collateral or any part thereof in one or more parcels at public
or private sale, at any of Bank's offices or elsewhere, for cash, on credit or
for future delivery, and at such price or prices and upon such other terms as
Bank may deem commercially reasonable. The Grantor agrees that, to the extent
notice of sale shall be required by law, at least ten (10) days' notice to the
Grantor of the time and place of any public sale or the time after which any
private sale is to be made shall constitute reasonable notification. Bank shall
not be obligated to make any sale of Collateral regardless of notice of sale
having been given. Bank may adjourn any public or private sale from time to time
by announcement at the time and place fixed therefore, and such sale may,
without further notice, be made at the time and place to which it was so
adjourned. Notwithstanding the foregoing provisions, Bank agrees that prior to
exercising any other remedies with respect to the Collateral, it will collect
the Accounts Receivable for a period of thirty (30) days after which it can
either (i) continue to

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collect Accounts Receivable or (ii) after fifteen (15) days written notice to
the Grantor, exercise any and all rights and remedies provided for herein or
available to it under law, unless within said fifteen (15) day period, Grantor
provides a third party purchaser who purchases the Accounts Receivable and pays
to Bank therefor, in good funds, the lesser of (i) the face amount of the
Accounts Receivable remaining uncollected by the Bank or (ii) the outstanding
amount of the Obligations.

      (b) Any cash held by Bank as Collateral and all cash proceeds received by
Bank in respect of any sale of, collection from, or other  realization upon, all
or any part of the Collateral shall be applied as follows:

            (i) First, to the repayment of the reasonable costs and expenses,
      including reasonable attorneys' fees and legal expenses on a time and
      charges basis, incurred by Bank in connection with (A) the administration
      of this Agreement, (B) the retaking, custody, preservation, use, or
      operation of, or the sale of, collection from, or other realization upon,
      any Collateral, (C) the exercise or enforcement of any of the rights of
      Bank hereunder, or (D) the failure of the Grantor to perform or observe
      any of the provision hereof or of the Loan Agreement;

            (ii) Second, to the reimbursement of Bank for the amount of any
      obligations of the Grantor paid or discharged by Bank pursuant to the
      provisions of this Agreement, and of any expenses of Bank payable by the
      Grantor thereunder;

            (iii) Third, to the satisfaction of the Obligations, in such order
      as Bank shall elect;

            (iv) Fourth, to the payment of any other amounts required by
      applicable law [INCLUDING, WITHOUT LIMITATION, SECTION 47-9-615 OF THE
      CODE OR ANY SUCCESSOR OR SIMILAR, APPLICABLE STATUTORY PROVISION]; and

            (v) Fifth, the surplus proceeds, if any, to the Grantor or to
      whomsoever shall be lawfully entitled to receive the same or as a court of
      competent jurisdiction shall direct.

      8. Rights and Duties of Bank, Etc. Bank undertakes, as to this Agreement,
to exercise only such duties as are specifically set forth in this Agreement and
to exercise such of the rights, powers and remedies as are vested in it by this
Agreement or by law.

      9. Indemnity and Expenses. (a) The Grantor agrees to indemnify Bank from
and against any and all claims, losses, and liabilities growing out of or
resulting from this Agreement (including, without limitation, enforcement of
this Agreement, except claims, losses, or liabilities resulting solely and
directly from Bank's gross negligence or willful misconduct.

      (b) Upon the occurrence of an Event of Default, the Grantor will upon
demand pay to Bank the amount of any and all costs and expenses, including the
fees and disbursements of the Bank's counsel and of any experts and agents on a
time and charges basis, which Bank may incur in connection with (i) the
administration of this Agreement (excluding the salary of Bank's

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employees and Bank's normal and usual overhead expenses); (ii) the custody,
preservation, use, or operation of, or the sale of, collection from, or other
realization upon, any Collateral; (iii) the exercise or enforcement of any of
the rights of Bank hereunder; or (iv) the failure by the Grantor to perform or
observe any of the provisions hereof, except expenses resulting solely and
directly from Bank's gross negligence or willful misconduct.

      10. Notices Etc. All notices and other communications provided for
hereunder (except for routine informational communications) shall be in writing
and shall be mailed (by registered or certified mail, return receipt requested,
except for routine informational communications) or delivered, if to the Grantor
to it at its address specified in the first paragraph of this Agreement;
Attention: Robert Sigler, with a copy to Kemp, Klein, Umphrey, Endelman & May,
P.C., 201 West Big Beaver Road, Suite 600, Troy, Michigan 48084, Attention:
Ralph A. Castelli, Jr.; and if to the Bank, to it Attention: Commercial Finance
Division at its address specified in the first paragraph of this Agreement, with
a copy (if other than a routine informational communication) to Baker, Donelson,
Bearman, Caldwell & Berkowitz, 165 Madison Avenue, Suite 2000, Memphis,
Tennessee 38103, Attention: Mary Aronov. All such notices and other
communications shall be effective (i) if mailed, when received or three (3) days
after mailing, whichever is earlier; or (ii) if delivered, upon delivery.

      11. Security Interest Absolute. All rights of Bank, all security interests
and all obligations of the Grantor hereunder shall be absolute and
unconditional irrespective of: (i) any lack of validity or enforceability of the
Loan Agreement, any guaranty, or any other agreement or instrument relating
thereto; (ii) any change in the time, manner, or place of payment of, or in any
other term in respect of, all or any of the obligations, or any other amendment
or waiver of or consent to any departure from this Agreement, any guaranty, or
any other agreement or instrument relating thereto; (iii) any increase in,
addition to, or 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 Obligations; (iv) any other circumstance which
might otherwise constitute a defense available to, or a discharge of, the
Grantor in respect of the Obligations or this Agreement; or (v) the absence of
any action on the part of Bank to obtain payment or performance of the
Obligations from the Grantor or any other party.

      12. Miscellaneous. (a) No amendment of any provision of this Security
Agreement shall be effective unless it is in writing and signed by the Grantor
and Bank, and no waiver of any provision of this Agreement, and no consent to
any departure by the Grantor therefrom, shall be effective unless it is in
writing and signed by Bank, and then such waiver or consent shall be effective
only in the specific instance and for the specific purpose for which given.

      (b) No failure on the part of Bank to exercise, and no delay in
exercising, any right hereunder or under any other instrument or document shall
operate as a waiver thereof; nor shall any single or partial exercise of any
such right preclude any other or further exercise thereof or the exercise of any
other right. The rights and remedies of Bank provided herein and in the other
instruments and documents are cumulative and are in addition to, and not
exclusive of, any rights or remedies provided by law. The rights of Bank under
any Loan Agreement between the parties, any guaranty, any other instrument which
now or hereafter evidences or secures all or part of the Obligations, or any
related document against any party thereto are not conditional or

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contingent on any attempt by Bank to exercise any of its rights under any other
such instrument or document against such party or against any other party.

      (c) Any provision of this Security Agreement which is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction ,be ineffective
to the extent of such prohibition or invalidity without invalidating the
remaining portions hereof or thereof or affecting the validity or enforceability
of such provision in any other jurisdiction.

      (d) This agreement shall create a continuing security interest in the
Collateral and shall (i) remain in full force and effect until the payment in
full of all of the Obligations, (ii) be binding on the Grantor and its
successors and permitted assigns and shall inure, together with all rights and
remedies of Bank hereunder, to the benefit of Bank and its successors,
transferees, and permitted assigns. None of the rights or obligations of the
Grantor hereunder may be assigned or otherwise transferred without the prior
written consent of Bank. The Bank shall not have the right to assign any part of
its right under this Agreement without the consent of the Grantor whose consent
shall not be unreasonably withheld.

      (e) Upon the satisfaction in full of all of the Obligations, Bank will,
upon the Grantor's request and at the Grantor's expense, (i) return to the
Grantor such of the Collateral as shall not have been sold or otherwise disposed
of or applied pursuant to the terms hereof; and (ii) execute and deliver to the
Grantor such documents as the Grantor shall reasonably request to evidence
termination of the security interest herein granted.

      (f) This Agreement shall be governed by the construed in accordance with
the statutes and laws of the State of Tennessee, except as required by mandatory
provisions of law and except to the extent that the validity or perfection of
the security interest created hereby, or remedies hereunder, in respect of any
particular Collateral are governed by the laws of a jurisdiction other than the
State of Tennessee. If any provision hereof is in conflict with the provisions
of the Loan Agreement, the provisions of the Loan Agreement shall control.

      13. Compromises. Releases, Etc. The Grantor agrees that:

      (a) The Bank is hereby authorized from time to time, without notice to
anyone, to make any sales, pledges surrenders, compromises, settlements,
releases, indulgences, alterations, substitutions, exchanges, changes in,
modifications, or other dispositions including, without limitation,
cancellations, of all or any part of the Loan indebtedness, or of any contract
or instrument evidencing any thereof, or of any security or collateral therefor,
and/or to take any security for or other guaranties upon any of said
indebtedness; and the liability of the Grantor shall not be in any manner
affected, diminished, or impaired thereby, or by any lack of diligence, failure,
neglect, or omission on the part of Bank to make any demand or protest, or give
any notice of dishonor or default, or to realize upon or protect any of said
indebtedness or any collateral or security therefor, except for the notices
required by the Loan Agreement.

      (b) The Bank shall have the exclusive right to determine how, when, and
what application of payments and credits, if any, shall be made on the Loan and
extensions of credit or any part thereof, and shall be under no obligation, at
any time, to first resort to, make demand on, file a claim against, or exhaust
its remedies against the Borrower, or its property or estate, or to

                                      - 10-
<PAGE>

resort to or exhaust its remedies against any collateral, security property,
liens, or other rights whatsoever.

      (c) [INTENTIONALLY DELETED]

      (d) Any claims against the Borrower accruing to the Grantor by reason of
the Grantor's granting of the security interest herein contained and any
payments made to the Bank with respect thereto shall be subordinate to any
indebtedness now or at any time hereafter owing by the Borrower to the Bank,
Grantor hereby defers the exercise of all rights of subrogation against the
Borrower until all indebtedness, liabilities and obligations of the Borrower
to the Bank shall have been fully and finally paid and satisfied.

     (e) Venue of Actions. As an integral part of the consideration for the
making of the Loan as provided in the Loan Agreement it is expressly understood
and agreed that no suit or action shall be commenced by the Grantor or by any
heir, successor, personal representative or assignee of any of them, with
respect to the Obligations or this Agreement, the Loan Agreement, or with
respect to any of the loan documents, other than in a state court of competent
jurisdiction in and for the County of the State in which the principal place of
business of the Bank is situated, or in the United States District Court for the
District in which the principal place of business of the Bank is situated, and
not elsewhere. Nothing in this paragraph contained shall prohibit Bank
instituting suit in any court of competent jurisdiction for the enforcement of
its rights hereunder, in the Note, in this Agreement, in the Loan Agreement or
in any other loan document. If any suit or action brought hereunder can qualify
for filing in federal court, the parties agree to file the suit or action in
federal court.

      IN WITNESS WHEREOF, the Grantor has caused this Agreement to be executed
and delivered by its duly authorized officers on this the day and year first
above written.

                                        LOUISIANA TRANSPORTATION, INC.,
                                        a Michigan corporation

                                        By: /s/ Michael L. Whitaker
                                            --------------------------
                                        Title: PRESIDENT

                                                                        GRANTOR

                                      -11-

<PAGE>

                                  EXHIBIT "A"
                                       TO
                               SECURITY AGREEMENT

                                      A-1<PAGE>

                                                                   Exhibit 10.46

                       VALLEY NATIONAL GASES INCORPORATED

                        INCENTIVE STOCK OPTION AGREEMENT
                                      UNDER
                       1997 STOCK OPTION PLAN, AS AMENDED

      This Incentive Stock Option Agreement, effective as of __________________
(the "Agreement"), under the Valley National Gases Incorporated (the "Company")
1997 Stock Option Plan, as amended (the "Plan") is entered into by and between
the Company and ________________________ (hereinafter referred to as
"Optionee").

      WHEREAS, the Board of Directors of the Company has adopted and approved
the Plan pursuant to which options for shares of the Common Stock, $.001 par
value per share, of the Company (the "Common Stock") may be granted to key
employees, officers and directors of the Company and its subsidiaries; and

      WHEREAS, Optionee is now an officer or other key employee of the Company
or a subsidiary of the Company; and

      WHEREAS, the Company desires to grant to Optionee the option to purchase
certain shares of its Common Stock under the terms of the Plan.

      NOW, THEREFORE, in consideration of the mutual agreements set forth below
and referenced herein, the parties agree as follows:

            1. Grant Subject to Plan. This option is granted under and is
expressly subject to, all the terms and provisions of the Plan, which terms are
incorporated herein by reference. The Committee referred to in Paragraph 4 of
the Plan ("Committee") has been appointed by the Board of Directors of the
Company, and designated by it, as the Committee to make grants of options.

            2. Grant and Terms of Option. Pursuant to action of the Committee,
which action was taken on January 27, 2003 the Company grants to Optionee,
effective as of the date hereof ("Date of Grant"), the option to purchase all or
any part of _______ SHARES of Common Stock, for a period of ten years from the
Date of Grant, at the purchase price of $______ PER SHARE; provided, however,
that the right to exercise such option shall be, and is hereby, restricted so
that no shares may be purchased until the end of the third year from the Date of
Grant, so that upon the expiration of the third year from the Date of Grant and
thereafter during the term hereof, Optionee will have become entitled to
purchase the entire number of shares to which this option relates.
Notwithstanding the foregoing, in the event of a Change of Control (as
hereinafter defined) Optionee may purchase 100% of the total number of shares to
which this option relates so long as such Change of Control occurs at least six
months after the Date of Grant. In no event may this option or any part thereof
be exercised after the expiration of ten years from the Date of Grant. The
purchase price of the shares subject to the option may be paid for (i) in cash,
(ii) in the discretion of the Committee, by tender of shares of Common Stock
already owned by Optionee, or (iii) in the discretion of the Committee, by a
combination of methods of payment specified in clauses (i) and (ii), all in
accordance with Paragraphs 6 and 8 of the Plan. No shares of Common Stock may be
tendered in exercise of this option if such shares were acquired by Optionee
through the exercise of an Incentive Stock Option, unless (i) such shares have
been held by Optionee for at least one year, and (ii) at least two years have
elapsed since such Incentive Stock Option was granted.

            For the purposes of this Agreement, a Change of Control means:

<PAGE>

                  a. The purchase or other acquisition (other than from the
            Company) by any person, entity or group of persons, within the
            meaning of Section 13(d) or 14(d) of the Securities Exchange Act of
            1934, as amended (the "Exchange Act") (excluding, for this purpose,
            the Company or its subsidiaries, or any employee benefit plan of the
            Company or its subsidiaries, or Gary E. West or any entities
            controlled by him), of beneficial ownership (within the meaning of
            Rule 13d-3 promulgated under the Exchange Act) of 20% or more of
            either the then-outstanding shares of common stock of the Company or
            the combined voting power of the Company's then-outstanding voting
            securities entitled to vote generally in the election of directors;
            or

                  b. Individuals who, as of the date hereof, constitute the
            Board of Directors of the Company (the "Board" and, as of the date
            hereof, the "Incumbent Board") cease for any reason to constitute at
            least a majority of the Board, provided that any person who becomes
            a director subsequent to the date hereof whose election, or
            nomination for election by the Company's shareholders, was approved
            by a vote of at least a majority of the directors then comprising
            the Incumbent Board (other than an individual whose initial
            assumption of office is in connection with an actual or threatened
            election contest relating to the election of directors of the
            Company, as such terms are used in Rule 14a-11 of Regulation 14A
            promulgated under the Exchange Act) shall be, for purposes of this
            section, considered as though such person were a member of the
            Incumbent Board; or

                  c. Approval by the stockholders of the Company of a
            reorganization, merger or consolidation, in each case with respect
            to which persons who were the stockholders of the Company
            immediately prior to such reorganization, merger or consolidation do
            not, immediately thereafter, own more than 50% of, respectively, the
            common stock and the combined voting power entitled to vote
            generally in the election of directors of the reorganized, merged or
            consolidated corporation's then outstanding voting securities, or of
            a liquidation or dissolution of the Company or of the sale of all or
            substantially all of the assets of the Company.

            3. Anti-Dilution Provisions. In the event that, during the term of
this Agreement, there is any change in the number of shares of outstanding
Common Stock of the Company by reason of stock dividends, recapitalizations,
mergers, consolidations, split-ups, combinations or exchanges of shares and the
like, the number of shares covered by this option agreement and the price
thereof shall be adjusted, to the same proportionate number of shares and price
as in this original agreement.

            4. Investment Purpose. Optionee represents that, in the event of the
exercise by him of the option hereby granted, or any part thereof, he intends to
purchase the shares acquired on such exercise for investment and not with a view
to resale or other distribution; except that the Company, at its election, may
waive or release this condition in the event the shares acquired on exercise of
the option are registered under the Securities Act of 1933, or upon the
happening of any other contingency which the Company shall determine warrants
the waiver or release of this condition. Optionee agrees that the certificates
evidencing the shares acquired by him on exercise of all or any part of this
option, may bear a restrictive legend, if appropriate, indicating that the
shares have not been registered under said Act and are subject to restrictions
on the transfer thereof, which legend may be in the following form (or such
other form as the Company shall determine to be proper), to-wit:

            "The shares represented by this certificate have not been registered
            under the Securities Act of 1933, but have been issued or
            transferred to the registered owner pursuant to the exemption
            afforded by Section 4(2) of said Act. No transfer or assignment of
            these shares by the registered owner shall be valid or effective,
            and the issuer of these shares shall not be required to give any
            effect to any transfer or attempted transfer of these shares,
            including without limitation, a transfer by operation of law, unless
            (a) the issuer shall have received an opinion of its counsel that
            the shares may be transferred without requirement of registration
            under said Act, or (b) there shall have been delivered to the issuer
            a

<PAGE>

            'no-action' letter from the staff of the Securities and Exchange
            Commission, or (c) the shares are registered under said Act."

            5. Non-Transferability. Neither the option hereby granted nor any
rights thereunder or under this Agreement may be assigned, transferred or in any
manner encumbered except by will or the laws of descent and distribution, and
any attempted assignment, transfer, mortgage, pledge or encumbrance except as
herein authorized, shall be void and of no effect. The option may be exercised
during Optionee's lifetime only by him.

            6. Termination of Employment. In the event of the termination of
employment of Optionee other than by death, disability or retirement, the option
granted may be exercised at the times and to the extent provided in Section 9 of
the Plan.

            7. Death, Disability or Retirement of Optionee. In the event of the
death, disability or retirement of Optionee during the term of this Agreement
and while Optionee is employed by the Company (or a subsidiary), the option
granted may be exercised at the times and to the extent provided in Section 9 of
the Plan

            8. Shares Issued on Exercise of Option. It is the intention of the
Company that on any exercise of this option it will transfer to Optionee shares
of its authorized but unissued stock or transfer Treasury shares, or utilize any
combination of Treasury shares and authorized but unissued shares, to satisfy
its obligations to deliver shares on any exercise hereof.

            9. Committee Administration. This option has been granted pursuant
to a determination made by the Committee, and such Committee or any successor or
substitute committee authorized by the Board or the Board, subject to the
express terms of this option, shall have plenary authority to interpret any
provision of this option and to make any determinations necessary or advisable
for the administration of this option and the exercise of the rights herein
granted, and may waive or amend any provisions hereof in any manner not
adversely affecting the rights granted to Optionee by the express terms hereof.

      IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the
date first above written.

                                   VALLEY NATIONAL GASES INCORPORATED

                                   By: _________________________________________
                                       James P. Hart
                                       President

                                   OPTIONEE
                                   _____________________________________________
                                   Name:

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