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                                                                    EXHIBIT 10.2

                       UNIVERSAL TRUCKLOAD SERVICES, INC.

                           2004 STOCK INCENTIVE PLAN
                       ADOPTED BY BOARD DECEMBER 10, 2004
                   APPROVED BY SHAREHOLDERS DECEMBER 10, 2004
                      [TERMINATION DATE: DECEMBER 9, 2014]

1. PURPOSES.

      (a) Eligible Stock Award Recipients. The persons eligible to receive Stock
Awards are the Employees, Directors and Consultants of the Company and its
Affiliates.

      (b) Available Stock Awards. The purpose of the Plan is to provide a means
by which eligible recipients of Stock Awards may be given an opportunity to
benefit from increases in value of the Common Stock through the granting of
Stock Awards including, but not limited to: (i) Incentive Stock Options, (ii)
Nonstatutory Stock Options, (iii) Restricted Stock Bonuses, (iv) Restricted
Stock Purchase Rights, (v) Stock Appreciation Rights, (vi) Phantom Stock Units,
(vii) Restricted Stock Units, (viii) Performance Share Bonuses, and (ix)
Performance Share Units.

      (c) General Purpose. The Company, by means of this Plan, seeks to provide
incentives for the group of persons eligible to receive Stock Awards to exert
maximum efforts for the success of the Company and its Affiliates.

2. DEFINITIONS.

      (a) "Affiliate" means generally with respect to the Company, any entity
directly, or indirectly through one or more intermediaries, controlling or
controlled by (but not under common control with) the Company. Solely with
respect to the granting of any Incentive Stock Options, Affiliate means any
parent corporation or subsidiary corporation of the Company, whether now or
hereafter existing, as those terms are defined in Sections 424(e) and (f),
respectively, of the Code.

      (b) "Beneficial Owner" means the definition given in Rule 13d-3 of the
Exchange Act.

      (c) "Board" means the Board of Directors of the Company.

      (d) "Change of Control" means the occurrence of any of the following
events:

                  (i) The sale, exchange, lease or other disposition of all or
            substantially all of the assets of the Company to a person or group
            of related persons, as such terms are defined or described in
            Sections 3(a)(9) and 13(d)(3) of the Exchange Act (other than
            CenTra, Inc. and its affiliates, Manuel J. Moroun and his
            affiliates,

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            Matthew T. Moroun and his affiliates, or any group in which any of
            the foregoing is a member), that will continue the business of the
            Company in the future;

                  (ii) A merger or consolidation involving the Company in which
            the voting securities of the Company owned by the shareholders of
            the Company immediately prior to such merger or consolidation do not
            represent, after conversion if applicable, more than fifty percent
            (50%) of the total voting power of the surviving controlling entity
            outstanding immediately after such merger or consolidation; provided
            that any person who (1) was a beneficial owner (within the meaning
            of Rules 13d-3 and 13d-5 promulgated under the Exchange Act) of the
            voting securities of the Company immediately prior to such merger or
            consolidation, and (2) is a beneficial owner of more than 20% of the
            securities of the Company immediately after such merger or
            consolidation, and (3) is not CenTra, Inc. or one of its affiliates,
            Manuel J. Moroun or one of his affiliates, Matthew T. Moroun or one
            of his affiliates, or any group in which any of the foregoing is a
            member, shall be excluded from the list of "shareholders of the
            Company immediately prior to such merger or consolidation" for
            purposes of the preceding calculation;

                  (iii) Any person or group (other than CenTra, Inc. and its
            affiliates, Manuel J. Moroun and his affiliates, Matthew T. Moroun
            and his affiliates, or any group in which any of the foregoing is a
            member) is or becomes the Beneficial Owner, directly or indirectly,
            of more than 50% of the total voting power of the voting stock of
            the Company (including by way of merger, consolidation or otherwise)
            and the representatives of CenTra, Inc. and its affiliates, Manuel
            J. Moroun and his affiliates, Matthew T. Moroun and his affiliates,
            or any group in which any of the foregoing is a member, individually
            or in the aggregate, cease to have the ability to elect a majority
            of the Board (for the purposes of this clause (iii), a member of a
            group will not be considered to be the Beneficial Owner of the
            securities owned by other members of the group);

                  (iv) A dissolution or liquidation of the Company.

      (e) "Code" means the Internal Revenue Code of 1986, as amended.

      (f) "Committee" means a committee of one or more members of the Board (or
other individuals who are not members of the Board to the extent allowed by law)
appointed by the Board in accordance with Subsection 3(c) of the Plan.

      (g) "Common Stock" means the common shares of the Company.

      (h) "Company" means Universal Truckload Services, Inc., a Michigan
corporation.

      (i) "Consultant" means any person, including an advisor, (i) engaged by
the Company or an Affiliate to render consulting or advisory services (including
services which are deemed to be consulting or advisory services under applicable
federal securities law) and who is compensated for such services or (ii) who is
a member of the Board of Directors of an Affiliate. However, the term
"Consultant" shall not include either Directors who are not compensated by

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the Company for their services as Directors or Directors who are compensated by
the Company solely for their services as Directors.

      (j) "Continuous Service" means that the Participant's service with the
Company or an Affiliate, whether as an Employee, Director or Consultant, is not
interrupted or terminated. The Participant's Continuous Service shall not be
deemed to have terminated merely because of a change in the capacity in which
the Participant renders service to the Company or an Affiliate as an Employee,
Consultant or Director or a change in the entity for which the Participant
renders such service, provided that there is no interruption or termination of
the Participant's Continuous Service. For example, a change in status from an
Employee of the Company to a Consultant of an Affiliate or a Director will not
constitute an interruption of Continuous Service. The Board or the chief
executive officer of the Company, in that party's sole discretion, may determine
whether Continuous Service shall be considered interrupted in the case of any
leave of absence approved by the Company or an Affiliate, including sick leave,
military leave or any other personal leave.

      (k) "Covered Employee" means the chief executive officer and the four (4)
other highest compensated officers of the Company for whom total compensation is
required to be reported to shareholders under the Exchange Act, as determined
for purposes of Section 162(m) of the Code.

      (l) "Director" means a member of the Board of Directors of the Company.

      (m) "Disability" means the permanent and total disability of a person
within the meaning of Section 22(e)(3) of the Code for all Incentive Stock
Options. For all other Stock Awards, , unless otherwise defined in the
applicable Stock Award agreement, "Disability" means physical or mental
incapacitation such that for a period of six (6) consecutive months or for an
aggregate of nine (9) months in any twenty-four (24) consecutive month period, a
person is unable to substantially perform his or her duties. Any question as to
the existence of that person's physical or mental incapacitation as to which the
person or person's representative and the Company cannot agree shall be
determined in writing by a qualified independent physician mutually acceptable
to the person and the Company. If the person and the Company or an Affiliate
cannot agree as to a qualified independent physician, each shall appoint such a
physician and those two (2) physicians shall select a third (3rd)who shall make
such determination in writing. The determination of Disability made in writing
to the Company and the person shall be final and conclusive for all purposes of
the Stock Awards.

      (n) "Employee" means any person employed by the Company or an Affiliate.
Service as a Director or compensation by the Company or an Affiliate solely for
services as a Director shall not be sufficient to constitute "employment" by the
Company or an Affiliate.

      (o) "Exchange Act" means the Securities Exchange Act of 1934, as amended.

      (p) "Fair Market Value" means, as of any date, the value of the Common
Stock determined as follows:

            (i) If the Common Stock is listed on any established stock exchange
      or traded on the Nasdaq National Market or the Nasdaq SmallCap Market, the
      Fair Market Value

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      of a share of Common Stock shall be the last or closing selling price of
      the Common Stock as reported on such date on the Composite Tape of the
      principal national securities exchange on which the Common Stock is listed
      or admitted to trading, or if no Composite Tape exists for such national
      securities exchange on such date, then on the principal national
      securities exchange on which such the Common Stock is listed or admitted
      to trading, or, if the Common Stock is not listed or admitted on a
      national securities exchange, the last or closing selling price on such
      date as quoted on the National Association of Securities Dealers Automated
      Quotation System (or such market in which such prices are regularly
      quoted), or if no sale of Common Stock shall have been reported on such
      Composite Tape or such national securities exchange on such date or quoted
      on the National Association of Securities Dealers Automated Quotation
      System on such date, then the immediately preceding date on which sales of
      the Common Stock have been so reported or quoted shall be used.

            (ii) In the absence of such markets for the Common Stock, the Fair
      Market Value shall be determined in good faith by the Board.

      (q) "Incentive Stock Option" means an Option intended to qualify as an
incentive stock option within the meaning of Section 422 of the Code and the
regulations promulgated thereunder.

      (r) "Listing Date" means the date on which the initial registration of the
Company's Common Stock under the Securities Act becomes effective.

      (s) "Non-Employee Director" means a Director who either (i) is not a
current Employee or Officer of the Company or its parent or a subsidiary, does
not receive compensation (directly or indirectly) from the Company or its parent
or a subsidiary for services rendered as a consultant or in any capacity other
than as a Director (except for an amount as to which disclosure would not be
required under Item 404(a) of Regulation S-K promulgated pursuant to the
Securities Act ("Regulation S-K")), does not possess an interest in any other
transaction as to which disclosure would be required under Item 404(a) of
Regulation S-K and is not engaged in a business relationship as to which
disclosure would be required under Item 404(b) of Regulation S-K; or (ii) is
otherwise considered a "non-employee director" for purposes of Rule 16b-3.

      (t) "Nonstatutory Stock Option" means an Option not intended to qualify as
an Incentive Stock Option.

      (u) "Officer" means a person who is an officer of the Company within the
meaning of Section 16 of the Exchange Act and the rules and regulations
promulgated thereunder.

      (v) "Option " means an Incentive Stock Option or a Nonstatutory Stock
Option granted pursuant to the Plan.

      (w) "Option Agreement" means a written agreement between the Company and
an Optionholder evidencing the terms and conditions of an individual Option
grant. Each Option Agreement shall be subject to the terms and conditions of the
Plan.

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      (x) "Optionholder" means a person to whom an Option is granted pursuant to
the Plan or, if applicable, such other person who holds an outstanding Option.

      (y) "Outside Director" means a Director who either (i) is not a current
employee of the Company or an "affiliated corporation" (within the meaning of
Treasury Regulations promulgated under Section 162(m) of the Code), is not a
former employee of the Company or an "affiliated corporation" receiving
compensation for prior services (other than benefits under a tax qualified
pension plan), was not an officer of the Company or an "affiliated corporation"
at any time and is not currently receiving direct or indirect remuneration from
the Company or an "affiliated corporation" for services in any capacity other
than as a Director; or (ii) is otherwise considered an "outside director" for
purposes of Section 162(m) of the Code.

      (z) "Participant" means a person to whom a Stock Award is granted pursuant
to the Plan or, if applicable, such other person who holds an outstanding Stock
Award.

      (aa) "Performance Share Bonus" means a grant of shares of the Company's
Common Stock not requiring a Participant to pay any amount of monetary
consideration, and subject to the provisions of Subsection 7(f) of the Plan.

      (bb) "Performance Share Unit" means the right to receive one (1) share of
the Company's Common Stock at the time the Performance Share Unit vests, with
the further right to elect to defer receipt of shares of Common Stock otherwise
deliverable upon the vesting of an award of performance share units. These
Performance Share Units are subject to the provisions of Subsection 7(g).

      (cc) "Phantom Stock Unit" means the right to receive the value of one (1)
share of the Company's Common Stock, subject to the provisions of Subsection
7(d) of the Plan.

      (dd) "Plan" means this Universal Truckload Services, Inc. 2004 Stock
Incentive Plan.

      (ee) "Restricted Stock Bonus" means a grant of shares of the Company's
Common Stock not requiring a Participant to pay any amount of monetary
consideration, and subject to the provisions of Subsection 7(a) of the Plan.

      (ff) "Restricted Stock Purchase Right," means the right to acquire shares
of the Company's Common Stock upon the payment of the agreed-upon monetary
consideration, subject to the provisions of Subsection 7(b) of the Plan.

      (gg) "Restricted Stock Unit" means the right to receive one (1) share of
the Company's Common Stock at the time the Restricted Stock Unit vests, with the
further right to elect to defer receipt of shares of Common Stock otherwise
deliverable upon the vesting of an award of restricted stock. These Restricted
Stock Units are subject to the provisions of Subsection 7(e).

      (hh) "Rule 16b-3" means Rule 16b-3 promulgated under the Exchange Act or
any successor to Rule l6b-3, as in effect from time to time.

      (ii) "Securities Act" means the Securities Act of 1933, as amended.

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      (jj) "Stock Appreciation Right" means the right to receive an amount equal
to the Fair Market Value of one (1) share of the Company's Common Stock on the
day the Stock Appreciation Right is redeemed, reduced by the deemed exercise
price or base price of such right.

      (kk) "Stock Award" means any Option, Restricted Stock Bonus, Restricted
Stock Purchase Right, Stock Appreciation Right award, Phantom Stock Unit award,
Restricted Stock Unit award, Performance Share Bonus award, Performance Share
Unit award, or other stock-based award. These Awards may include, but are not
limited to those listed in Subsection 1(b).

      (ll) "Ten Percent Shareholder" means a person who owns (or is deemed to
own pursuant to Section 424(d) of the Code) stock possessing more than ten
percent (10%) of the total combined voting power of all classes of stock of the
Company or of any of its Affiliates.

3. ADMINISTRATION.

      (a) Administration by Board. The Board shall administer the Plan unless
and until the Board delegates administration to a Committee, as provided in
Subsection 3(c).

      (b) Powers of Board. The Board shall have the power, subject to, and
within the limitations of, the express provisions of the Plan:

            (i) To determine from time to time which of the persons eligible
      under the Plan shall be granted Stock Awards; when and how each Stock
      Award shall be granted; what type or combination of types of Stock Award
      shall be granted; the provisions of each Stock Award granted (which need
      not be identical), including the time or times when a person shall be
      permitted to receive Common Stock pursuant to a Stock Award; and the
      number of shares of Common Stock with respect to which a Stock Award shall
      be granted to each such person.

            (ii) To construe and interpret the Plan and Stock Awards granted
      under it, and to establish, amend and revoke rules and regulations for its
      administration. The Board, in the exercise of this power, may correct any
      defect, omission or inconsistency in the Plan or in any Stock Award
      Agreement, in a manner and to the extent it shall deem necessary or
      expedient to make the Plan fully effective.

            (iii) To amend the Plan or a Stock Award as provided in Section 13
      of the Plan.

            (iv) Generally, to exercise such powers and to perform such acts as
      the Board deems necessary, desirable, convenient or expedient to promote
      the best interests of the Company which are not in conflict with the
      provisions of the Plan.

            (v) To adopt sub-plans and/or special provisions applicable to Stock
      Awards regulated by the laws of a jurisdiction other than and outside of
      the United States. Such sub-plans and/or special provisions may take
      precedence over other provisions of the Plan, with the exception of
      Section 4 of the Plan, but unless otherwise superseded by the terms of
      such sub-plans and/or special provisions, the provisions of the Plan shall
      govern.

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(c) Delegation to Committee.

      (i) General. The Board may delegate administration of the Plan to a
Committee or Committees of one or more individuals, and the term "Committee"
shall apply to any person or persons to whom such authority has been delegated.
If administration is delegated to a Committee, the Committee shall have, in
connection with the administration of the Plan, the powers theretofore possessed
by the Board, including the power to delegate to a subcommittee any of the
administrative powers the Committee is authorized to exercise (and references in
this Plan to the Board shall thereafter be to the Committee or subcommittee,
applicable), subject, however, to such resolutions, not inconsistent with the
provisions of the Plan, as may be adopted from time to time by the Board. The
Board may abolish the Committee at any time and revest in the Board the
administration of the Plan.

      (ii) Committee Composition when Common Stock is Publicly Traded. At such
time as the Common Stock is publicly traded, in the discretion of the Board, a
Committee may consist solely of two or more Outside Directors, in accordance
with Section 162(m) of the Code, and/or solely of two or more Non-Employee
Directors, in accordance with Rule 16b-3. Within the scope of such authority,
the Board or the Committee may (1) delegate to a committee of one or more
individuals who are not Outside Directors the authority to grant Stock Awards to
eligible persons who are either (a) not then Covered Employees and are not
expected to be Covered Employees at the time of recognition of income resulting
from such Stock Award or (b) not persons with respect to whom the Company wishes
to comply with Section 162(m) of the Code and/or (2) delegate to a committee of
one or more individuals who are not Non-Employee Directors the authority to
grant Stock Awards to eligible persons who are either (a) not then subject to
Section 16 of the Exchange Act or (b) receiving a Stock Award as to which the
Board or the Committee elects not to comply with Rule 16b-3 by having two or
more Non-Employee Directors grant such Stock Award. (Note 1: For instance, the
Board or Committee may instead elect to comply with Rule 16b-3 by having the
Board approve the Stock Award, by having the Company's shareholders approve or
ratify the Stock Award, or designing the Stock Award so that the Common Stock
must be held by the Participant for a period of at least six (6) months (in the
case of the grant of a Option or SAR, at least six (6) months must elapse from
the date of grant until the date of disposition of either (x) the Option or SAR,
as applicable, or (y) the underlying Common Stock)). (Note 2: Under NASDAQ
Marketplace Rule 4350(c) in effect as of the Listing Date, the grant of a Stock
Award to the Company's chief executive officer and other executive officers must
under virtually all circumstances must be either made by or recommended to the
Board by either a majority of the independent directors or by a compensation
committee comprised entirely of independent directors. Under NASDAQ Marketplace
Rule 4200 in effect as of the Listing Date, an independent director is a person
other than an officer or employee of the Company or any of its subsidiaries or
any other individual having a relationship which, in the opinion of the Board,
would interfere with the independent exercise of judgment in carrying out the
responsibilities of a director, which shall include certain categories of
individuals listed in Rule 4200.)

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      (d) Effect of Board's Decision. All determinations, interpretations and
constructions made by the Board in good faith shall not be subject to review by
any person and shall be final, binding and conclusive on all persons.

4. SHARES SUBJECT TO THE PLAN.

      (a) Share Reserve. Subject to the provisions of Section 12 of the Plan
relating to adjustments upon changes in Common Stock, the maximum aggregate
number of shares of Common Stock that may be issued pursuant to Stock Awards
shall not exceed Five Hundred Thousand (500,000) shares.

      (b) Reversion of Shares to the Share Reserve. If any Stock Award shall for
any reason (i) expire or otherwise terminate, in whole or in part, without
having been exercised or redeemed in full, (ii) be reacquired by the Company
prior to vesting, or (iii) be repurchased at cost by the Company prior to
vesting, the shares of Common Stock not acquired under such Stock Award shall
revert to and again become available for issuance under the Plan. To the extent
that a Stock Appreciation Right or Phantom Stock Unit granted under the Plan is
redeemed by payment in cash rather than shares of Common Stock, the shares of
Common Stock subject to the redeemed portion of the Stock Appreciation Right
shall revert to and again become available for issuance under the Plan.

      (c) Source of Shares. The shares of Common Stock subject to the Plan may
be unissued shares or reacquired shares, bought on the market or otherwise.

5. ELIGIBILITY.

      (a) Eligibility for Specific Stock Awards. Incentive Stock Options may be
granted only to Employees. Stock Awards other than Incentive Stock Options may
be granted to Employees, Directors and Consultants, which shall include
individual independent sales agents who provide services primarily to the
Company and its Affiliates.

      (b) Ten Percent Shareholders. A Ten Percent Shareholder shall not be
granted an Incentive Stock Option unless the exercise price of such Option is at
least one hundred ten percent (110%) of the Fair Market Value of the Common
Stock at the date of grant and the Option is not exercisable after the
expiration of five (5) years from the date of grant.

      (c) Section 162(m) Limitation. Subject to the provisions of Section 12 of
the Plan relating to adjustments upon changes in the shares of Common Stock, no
Employee shall be eligible to be granted Options or Stock Appreciation Rights
covering more than One Hundred Thousand (100,000) shares of Common Stock during
any fiscal year.

      (d) Consultants.

            (i) A Consultant shall not be eligible for the grant of a Stock
      Award if, at the time of grant, a Form S-8 Registration Statement under
      the Securities Act ("Form S-8") is not available to register either the
      offer or the sale of the Company's securities to such Consultant because
      of the nature of the services that the Consultant is providing to the
      Company, or because the Consultant is not a natural person, or as
      otherwise provided by

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      the rules governing the use of Form S-8, unless the Company determines
      both (i) that such grant (A) shall be registered in another manner under
      the Securities Act (e.g., on a Form S-3 Registration Statement) or (B)
      does not require registration under the Securities Act in order to comply
      with the requirements of the Securities Act, if applicable, and (ii) that
      such grant complies with the securities laws of all other relevant
      jurisdictions.

            (ii) Form S-8 generally is available to consultants and advisors
      only if (i) they are natural persons; (ii) they provide bona fide services
      to the issuer, its parents, its majority owned subsidiaries; and (iii) the
      services are not in connection with the offer or sale of securities in a
      capital-raising transaction, and do not directly or indirectly promote or
      maintain a market for the issuer's securities.

6. OPTION PROVISIONS.

      Each Option shall be in such form and shall contain such terms and
conditions as the Board shall deem appropriate. All Options shall be separately
designated Incentive Stock Options or Nonstatutory Stock Options at the time of
grant, and, if certificates are issued, a separate certificate or certificates
will be issued for shares of Common Stock purchased on exercise of each type of
Option. The provisions of separate Options need not be identical, but each
Option shall include (through incorporation of provisions hereof by reference in
the Option or otherwise) the substance of each of the following provisions:

            (a) Term. Subject to the provisions of Subsection 5(b) of the Plan
      regarding Ten Percent Shareholders, no Incentive Stock Option shall be
      exercisable after the expiration of ten (10) years from the date it was
      granted.

            (b) Exercise Price of an Incentive Stock Option. Subject to the
      provisions of Subsection 5(b) of the Plan regarding Ten Percent
      Shareholders, the exercise price of each Incentive Stock Option shall be
      not less than one hundred percent (100%) of the Fair Market Value of the
      Common Stock subject to the Option on the date the Option is granted.
      Notwithstanding the foregoing, an Incentive Stock Option may be granted
      with an exercise price lower than that set forth in the preceding sentence
      if such Option is granted pursuant to an assumption or substitution for
      another option in a manner satisfying the provisions of Section 424(a) of
      the Code.

            (c) Exercise Price of a Nonstatutory Stock Option. The exercise
      price of each Nonstatutory Stock Option shall be not less than eighty five
      percent (85%) of the Fair Market Value of the Common Stock subject to the
      Option on the date the Option is granted. Notwithstanding the foregoing, a
      Nonstatutory Stock Option may be granted with an exercise price lower than
      that set forth in the preceding sentence if such Option is granted
      pursuant to an assumption or substitution for another option in a manner
      satisfying the provisions of Section 424(a) of the Code.

            (d) Consideration. The purchase price of Common Stock acquired
      pursuant to an Option shall be paid, to the extent permitted by applicable
      statutes and regulations, either (i) in cash or by check at the time the
      Option is exercised or (ii) at the discretion of the Board at the time of
      the grant of the Option (or subsequently in the case of a Nonstatutory

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      Stock Option) (1) by delivery to the Company of other Common Stock, (2)
      according to a deferred payment or other similar arrangement with the
      Optionholder, including use of a promissory note (except for executive
      officers and Directors of the Company to the extent such loans and similar
      arrangements are prohibited under Section 402 of the Sarbanes-Oxley Act of
      2002), (3) pursuant to a "same day sale" program, or (4) by some
      combination of the foregoing. Unless otherwise specifically provided in
      the Option, the purchase price of Common Stock acquired pursuant to an
      Option that is paid by delivery to the Company of other Common Stock
      acquired, directly or indirectly from the Company, shall be paid only by
      shares of the Common Stock of the Company that have been held for more
      than six (6) months (or such longer or shorter period of time required to
      avoid a charge to earnings for financial accounting purposes). At any time
      that the Company is incorporated in Delaware, payment of the Common
      Stock's "par value," as defined in the Delaware General Corporation Law,
      shall not be made by deferred payment.

      In the case of any deferred payment arrangement, interest shall be
compounded at least annually and shall be charged at the market rate of interest
and contain such other terms and conditions necessary to avoid a charge to
earnings for financial accounting purposes as a result of the use of such
deferred payment arrangement.

            (e) Transferability of an Incentive Stock Option. An Incentive Stock
      Option shall not be transferable except by will or by the laws of descent
      and distribution and shall be exercisable during the lifetime of the
      Optionholder only by the Optionholder. Notwithstanding the foregoing, the
      Optionholder may, by delivering written notice to the Company, in a form
      satisfactory to the Company, designate a third party who, in the event of
      the death of the Optionholder, shall thereafter be entitled to exercise
      the Option.

            (f) Transferability of a Nonstatutory Stock Option. A Nonstatutory
      Stock Option shall be transferable to the extent provided in the Option
      Agreement. If the Nonstatutory Stock Option does not provide for
      transferability, then the Nonstatutory Stock Option shall not be
      transferable except by will or by the laws of descent and distribution and
      shall be exercisable during the lifetime of the Optionholder only by the
      Optionholder. Notwithstanding the foregoing, the Optionholder may, by
      delivering written notice to the Company, in a form satisfactory to the
      Company, designate a third party who, in the event of the death of the
      Optionholder, shall thereafter be entitled to exercise the Option.

            (g) Vesting Generally. Options granted under the Plan shall be
      exercisable at such time and upon such terms and conditions as may be
      determined by the Board. The vesting provisions of individual Options may
      vary. The provisions of this Subsection 6(g) are subject to any Option
      provisions governing the minimum number of shares of Common Stock as to
      which an Option may be exercised.

            (h) Termination of Continuous Service. In the event an
      Optionholder's Continuous Service terminates (other than upon the
      Optionholder's death or Disability), the Optionholder may exercise his or
      her Option (to the extent that the Optionholder was entitled to exercise
      such Option as of the date of termination) but (i) for Incentive Stock
      Options, only within such period of time ending on the earlier of (A) the
      date three (3)

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      months following the termination of the Optionholder's Continuous Service,
      or (B) the expiration of the term of the Option as set forth in the Option
      Agreement, and (ii) for Nonstatutory Stock Options, only within such
      period of time ending on the earlier of (A) the date specified in the
      Option Agreement, or (B) the expiration of the term of the Option as set
      forth in the Option Agreement. If, after termination, the Optionholder
      does not exercise his or her Option within the time specified in the
      Option Agreement, the Option shall terminate. Nothing in this Section 6(h)
      shall restrict the Board from amending an Incentive Stock Option in order
      to cause it to be treated as a Nonstatutory Stock Option.

            (i) Extension of Termination Date. An Optionholder's Option
      Agreement may also provide that if the exercise of the Option following
      the termination of the Optionholder's Continuous Service (other than upon
      the Optionholder's death or Disability) would be prohibited at any time
      solely because the issuance of shares of Common Stock would violate the
      registration requirements under the Securities Act or other applicable
      securities law, then the Option shall terminate on the earlier of (i) the
      expiration of the term of the Option set forth in the Option Agreement or
      (ii) the expiration of a period of three (3) months after the termination
      of the Optionholder's Continuous Service during which the exercise of the
      Option would not be in violation of such registration requirements.

            (j) Disability of Optionholder. In the event that an Optionholder's
      Continuous Service terminates as a result of the Optionholder's
      Disability, the Optionholder may exercise his or her Option (to the extent
      that the Optionholder was entitled to exercise such Option as of the date
      of termination), but (i) for Incentive Stock Options, only within such
      period of time ending on the earlier of (A) the date twelve (12) months
      following such termination or (B) the expiration of the term of the Option
      as set forth in the Option Agreement, and (ii) for Nonstatutory Stock
      Options, only within such period of time ending on the earlier of (A) the
      date specified in the Option Agreement, or (B) the expiration of the term
      as set forth in the Option Agreement. If, after termination, the
      Optionholder does not exercise his or her Option within the time specified
      herein, the Option shall terminate. Nothing in this Section 6(j) shall
      restrict the Board from amending an Incentive Stock Option in order to
      cause it to be treated as a Nonstatutory Stock Option.

            (k) Death of Optionholder. In the event (i) an Optionholder's
      Continuous Service terminates as a result of the Optionholder's death or
      (ii) the Optionholder dies within the period (if any) specified in the
      Option Agreement after the termination of the Optionholder's Continuous
      Service for a reason other than death, then the Option may be exercised
      (to the extent the Optionholder was entitled to exercise such Option as of
      the date of death) by the Optionholder's estate, by a person who acquired
      the right to exercise the Option by bequest or inheritance or by a person
      designated to exercise the Option upon the Optionholder's death pursuant
      to Subsection 6(e) or 6(f) of the Plan, but, (i) for Incentive Stock
      Options, only within the period ending on the earlier of (A) the date
      eighteen (18) months following the date of death (or such longer or
      shorter period specified in the Option Agreement) or (B) the expiration of
      the term of such Option as set forth in the Option Agreement, and (ii) for
      Nonstatutory Stock Options, only within the

                                       11
<PAGE>

      period ending on the earlier of (A) the date specified in the Option
      Agreement, or (B) the expiration of the term of such Option as set forth
      in the Option Agreement. If, after death, the Option is not exercised
      within the time specified herein, the Option shall terminate. Nothing in
      this Section 6(k) shall restrict the Board from amending an Incentive
      Stock Option in order to cause it to be treated as a Nonstatutory Stock
      Option.

            (l) Early Exercise. The Option may, but need not, include a
      provision whereby the Optionholder may elect at any time before the
      Optionholder's Continuous Service terminates to exercise the Option as to
      any part or all of the shares of Common Stock subject to the Option prior
      to the full vesting of the Option. Any unvested shares of Common Stock so
      purchased may be subject to a repurchase option in favor of the Company or
      to any other restriction the Board determines to be appropriate.

7. PROVISIONS OF STOCK AWARDS OTHER THAN OPTIONS.

      (a) Restricted Stock Bonus Awards. Each Restricted Stock Bonus agreement
shall be in such form and shall contain such terms and conditions as the Board
shall deem appropriate. The terms and conditions of Restricted Stock Bonus
agreements may change from time to time, and the terms and conditions of
separate Restricted Stock Bonus agreements need not be identical, but each
Restricted Stock Bonus agreement shall include (through incorporation of
provisions hereof by reference in the agreement or otherwise) the substance of
each of the following provisions:

            (i) Consideration. A Restricted Stock Bonus may be awarded in
      consideration for past services actually rendered to the Company or an
      Affiliate for its benefit.

            (ii) Vesting. Vesting shall generally be based on the Participant's
      Continuous Service. Shares of Common Stock awarded under the Restricted
      Stock Bonus agreement shall be subject to a share reacquisition right in
      favor of the Company in accordance with a vesting schedule to be
      determined by the Board.

            (iii) Termination of Participant's Continuous Service. In the event
      a Participant's Continuous Service terminates, the Company shall reacquire
      any or all of the shares of Common Stock held by the Participant which
      have not vested as of the date of termination under the terms of the
      Restricted Stock Bonus agreement.

            (iv) Transferability. Rights to acquire shares of Common Stock under
      the Restricted Stock Bonus agreement shall be transferable by the
      Participant only upon such terms and conditions as are set forth in the
      Restricted Stock Bonus agreement, as the Board shall determine in its
      discretion, so long as Common Stock awarded under the Restricted Stock
      Bonus agreement remains subject to the terms of the Restricted Stock Bonus
      agreement.

      (b) Restricted Stock Purchase Rights. Each Restricted Stock Purchase
agreement shall be in such form and shall contain such terms and conditions as
the Board shall deem appropriate. The terms and conditions of the Restricted
Stock Purchase agreements may change from time to time, and the terms and
conditions of separate Restricted Stock Purchase

                                       12
<PAGE>

agreements need not be identical, but each Restricted Stock Purchase agreement
shall include (through incorporation of provisions hereof by reference in the
agreement or otherwise) the substance of each of the following provisions:

            (i) Purchase Price. The purchase price under each Restricted Stock
      Purchase agreement shall be such amount as the Board shall determine and
      designate in such Restricted Stock Purchase agreement. The purchase price
      shall not be less than eighty five percent (85%) of the Common Stock's
      Fair Market Value on the date such award is made or at the time the
      purchase is consummated.

            (ii) Consideration. The purchase price of Common Stock acquired
      pursuant to the Restricted Stock Purchase agreement shall be paid either:
      (i) in cash or by check at the time of purchase; (ii) at the discretion of
      the Board, according to a deferred payment or other similar arrangement
      with the Participant, including use of a promissory note; or (iii) in any
      other form of legal consideration that may be acceptable to the Board in
      its discretion; provided, however, that at any time that the Company is
      incorporated in Delaware, then payment of the Common Stock's "par value,"
      as defined in the Delaware General Corporation Law, shall not be made by
      deferred payment.

            (iii) Vesting. The Committee shall determine the criteria under
      which shares of Common Stock under the Restricted Stock Purchase agreement
      may vest; the criteria may or may not include performance criteria or
      Continuous Service. Shares of Common Stock acquired under the Restricted
      Stock Purchase agreement may, but need not, be subject to a share
      repurchase option in favor of the Company in accordance with a vesting
      schedule to be determined by the Board.

            (iv) Termination of Participant's Continuous Service. In the event a
      Participant's Continuous Service terminates, the Company may repurchase
      any or all of the shares of Common Stock held by the Participant which
      have not vested as of the date of termination under the terms of the
      Restricted Stock Purchase agreement.

            (v) Transferability. Rights to acquire shares of Common Stock under
      the Restricted Stock Purchase agreement shall be transferable by the
      Participant only upon such terms and conditions as are set forth in the
      Restricted Stock Purchase agreement, as the Board shall determine in its
      discretion, so long as Common Stock awarded under the Restricted Stock
      Purchase agreement remains subject to the terms of the Restricted Stock
      Purchase agreement.

      (c) Stock Appreciation Rights. Two types of Stock Appreciation Rights
("SARs") shall be authorized for issuance under the Plan: (i) stand-alone SARs
and (ii) stapled SARs.

            (i) Stand-Alone SARs. The following terms and conditions shall
      govern the grant and redeemability of stand-alone SARs:

                  (a) The stand-alone SAR shall cover a specified number of
            underlying shares of Common Stock and shall be redeemable upon such
            terms and conditions as the Board may establish. Upon redemption of
            the stand-alone SAR, the holder shall be entitled to receive a
            distribution from the Company in an amount equal to

                                       13
<PAGE>

            the excess of (i) the aggregate Fair Market Value (on the redemption
            date) of the shares of Common Stock underlying the redeemed right
            over (ii) the aggregate base price in effect for those shares.

                  (b) The number of shares of Common Stock underlying each
            stand-alone SAR and the base price in effect for those shares shall
            be determined by the Board in its sole discretion at the time the
            stand-alone SAR is granted. In no event, however, may the base price
            per share be less than eighty five percent (85%) of the Fair Market
            Value per underlying share of Common Stock on the grant date.

                  (c) The distribution with respect to any redeemed stand-alone
            SAR may be made in shares of Common Stock valued at Fair Market
            Value on the redemption date, in cash, or partly in shares and
            partly in cash, as the Board shall in its sole discretion deem
            appropriate.

            (ii) Stapled SARs. The following terms and conditions shall govern
      the grant and redemption of stapled SARs:

                  (a) Stapled SARs may only be granted concurrently with an
            Option to acquire the same number of shares of Common Stock as the
            number of such shares underlying the stapled SARs.

                  (b) Stapled SARs shall be redeemable upon such terms and
            conditions as the Board may establish and shall grant a holder the
            right to elect among (i) the exercise of the concurrently granted
            Option for shares of Common Stock, whereupon the number of shares of
            Common Stock subject to the stapled SARs shall be reduced by an
            equivalent number, (ii) the redemption of such stapled SARs in
            exchange for a distribution from the Company in an amount equal to
            the excess of the Fair Market Value (on the redemption date) of the
            number of vested shares which the holder redeems over the aggregate
            base price for such vested shares, whereupon the number of shares of
            Common Stock subject to the concurrently granted Option shall be
            reduced by any equivalent number, or (iii) a combination of (i) and
            (ii).

                  (c) The distribution to which the holder of stapled SARs shall
            become entitled under this Section 7 upon the redemption of stapled
            SARs as described in Section 7(c)(ii)(b) above may be made in shares
            of Common Stock valued at Fair Market Value on the redemption date,
            in cash, or partly in shares and partly in cash, as the Board shall
            in its sole discretion deem appropriate.

      (d) Phantom Stock Units. The following terms and conditions shall govern
the grant and redeemability of Phantom Stock Units:

            (i) Phantom Stock Unit awards shall be redeemable by the Participant
      to the Company upon such terms and conditions as the Board may establish.
      The value of a single Phantom Stock Unit shall be equal to the Fair Market
      Value of a share of Common Stock, unless the Board otherwise provides in
      the terms of the Stock Award Agreement.

                                       14
<PAGE>

            (ii) The distribution with respect to any exercised Phantom Stock
      Unit award may be made in shares of Common Stock valued at Fair Market
      Value on the redemption date, in cash, or partly in shares and partly in
      cash, as the Board shall in its sole discretion deem appropriate.

      (e) Restricted Stock Units. The following terms and conditions shall
govern the grant and redeemability of Restricted Stock Units:

      A Restricted Stock Unit is the right to receive one (1) share of the
Company's Common Stock at the time the Restricted Stock Unit vests. Participants
may elect to defer receipt of shares of Common Stock otherwise deliverable upon
the vesting of an award of restricted stock. An election to defer such delivery
shall be irrevocable and shall be made in writing on a form acceptable to the
Company. The election form shall be filed prior to the vesting date of such
restricted stock in a manner determined by the Board. When the Participant vests
in such restricted stock, the Participant will be credited with a number of
Restricted Stock Units equal to the number of shares of Common Stock for which
delivery is deferred. Restricted Stock Units shall be paid by delivery of shares
of Common Stock in accordance with the timing and manner of payment elected by
the Participant on his/her election form, or if no deferral election is made, as
soon as administratively practicable following the vesting of the Restricted
Stock Unit.

      Each Restricted Stock Unit agreement shall be in such form and shall
contain such terms and conditions as the Board shall deem appropriate. The terms
and conditions of Restricted Stock Unit agreements may change from time to time,
and the terms and conditions of separate Restricted Stock Unit agreements need
not be identical, but each Restricted Stock Unit agreement shall include
(through incorporation of provisions hereof by reference in the agreement or
otherwise) the substance of each of the following provisions:

            (i) Consideration. A Restricted Stock Unit may be awarded in
      consideration for past services actually rendered to the Company or an
      Affiliate for its benefit.

            (ii) Vesting. Vesting shall generally be based on the Participant's
      Continuous Service. Shares of Common Stock awarded under the Restricted
      Stock Unit agreement shall be subject to a share reacquisition right in
      favor of the Company in accordance with a vesting schedule to be
      determined by the Board.

            (iii) Termination of Participant's Continuous Service. In the event
      a Participant's Continuous Service terminates, the Company shall reacquire
      any or all of the shares of Common Stock held by the Participant which
      have not vested as of the date of termination under the terms of the
      Restricted Stock Unit agreement.

            (iv) Transferability. Rights to acquire shares of Common Stock under
      the Restricted Stock Unit agreement shall be transferable by the
      Participant only upon such terms and conditions as are set forth in the
      Restricted Stock Unit agreement, as the Board shall determine in its
      discretion, so long as Common Stock awarded under the Restricted Stock
      Unit agreement remains subject to the terms of the Restricted Stock Unit
      agreement.

                                       15
<PAGE>

      (f) Performance Share Bonus Awards. Each Performance Share Bonus agreement
shall be in such form and shall contain such terms and conditions as the Board
shall deem appropriate. The terms and conditions of Performance Share Bonus
agreements may change from time to time, and the terms and conditions of
separate Performance Share Bonus agreements need not be identical, but each
Performance Share Bonus agreement shall include (through incorporation of
provisions hereof by reference in the agreement or otherwise) the substance of
each of the following provisions:

            (i) Consideration. A Performance Share Bonus may be awarded in
      consideration for past services actually rendered to the Company or an
      Affiliate for its benefit.

            (ii) Vesting. Vesting shall be based on the achievement of certain
      performance criteria, whether financial, transactional or otherwise, as
      determined by the Board. Vesting shall be subject to the Performance Share
      Bonus agreement. Failure to meet performance criteria shall be subject to
      a share reacquisition right in favor of the Company in accordance with a
      vesting schedule to be determined by the Board.

            (iii) Termination of Participant's Continuous Service. In the event
      a Participant's Continuous Service terminates, the Company shall reacquire
      any or all of the shares of Common Stock held by the Participant which
      have not vested as of the date of termination under the terms of the
      Performance Share Bonus agreement.

            (iv) Transferability. Rights to acquire shares of Common Stock under
      the Performance Share Bonus agreement shall be transferable by the
      Participant only upon such terms and conditions as are set forth in the
      Performance Share Bonus agreement, as the Board shall determine in its
      discretion, so long as Common Stock awarded under the Performance Share
      Bonus agreement remains subject to the terms of the Performance Share
      Bonus agreement.

      (g) Performance Share Units. The following terms and conditions shall
govern the grant and redeemability of Performance Share Units:

      A Performance Share Unit is the right to receive one (1) share of the
Company's Common Stock at the time the Performance Share Unit vests.
Participants may elect to defer receipt of shares of Common Stock otherwise
deliverable upon the vesting of an award of performance shares. An election to
defer such delivery shall be irrevocable and shall be made in writing on a form
acceptable to the Company. The election form shall be filed prior to the vesting
date of such performance shares in a manner determined by the Board. When the
Participant vests in such performance shares, the Participant will be credited
with a number of Performance Share Units equal to the number of shares of Common
Stock for which delivery is deferred. Performance Share Units shall be paid by
delivery of shares of Common Stock in accordance with the timing and manner of
payment elected by the Participant on his/her election form, or if no deferral
election is made, as soon as administratively practicable following the vesting
of the Performance Share Unit.

                                       16
<PAGE>

      Each Performance Share Unit agreement shall be in such form and shall
contain such terms and conditions as the Board shall deem appropriate. The terms
and conditions of Performance Share Unit agreements may change from time to
time, and the terms and conditions of separate Performance Share Unit agreements
need not be identical, but each Performance Share Unit agreement shall include
(through incorporation of provisions hereof by reference in the agreement or
otherwise) the substance of each of the following provisions:

            (i) Consideration. A Performance Share Unit may be awarded in
      consideration for past services actually rendered to the Company or an
      Affiliate for its benefit. The Committee shall have the discretion to
      provide that the Participant pay for such Performance Share Units with
      cash or other consideration permissible by law.

            (ii) Vesting. Vesting shall be based on the achievement of certain
      performance criteria, whether financial, transactional or otherwise, as
      determined by the Board. Vesting shall be subject to the Performance Share
      Unit agreement. Failure to meet performance criteria shall be subject to a
      share reacquisition right in favor of the Company in accordance with a
      vesting schedule to be determined by the Board.

            (iii) Termination of Participant's Continuous Service. In the event
      a Participant's Continuous Service terminates, the Company shall reacquire
      any or all of the shares of Common Stock held by the Participant which
      have not vested as of the date of termination under the terms of the
      Performance Share Unit agreement.

            (iv) Transferability. Rights to acquire shares of Common Stock under
      the Performance Share Unit agreement shall be transferable by the
      Participant only upon such terms and conditions as are set forth in the
      Performance Share Unit agreement, as the Board shall determine in its
      discretion, so long as Common Stock awarded under the Performance Share
      Unit agreement remains subject to the terms of the Performance Share Unit
      agreement.

8. COVENANTS OF THE COMPANY.

      (a) Availability of Shares. During the terms of the Stock Awards, the
Company shall keep available at all times the number of shares of Common Stock
required to satisfy such Stock Awards.

      (b) Securities Law Compliance. The Company shall seek to obtain from each
regulatory commission or agency having jurisdiction over the Plan such authority
as may be required to grant Stock Awards and to issue and sell shares of Common
Stock upon exercise, redemption or satisfaction of the Stock Awards; provided,
however, that this undertaking shall not require the Company to register under
the Securities Act the Plan, any Stock Award or any Common Stock issued or
issuable pursuant to any such Stock Award. If, after reasonable efforts, the
Company is unable to obtain from any such regulatory commission or agency the
authority which counsel for the Company deems necessary for the lawful issuance
and sale of Common Stock under the Plan, the Company shall be relieved from any
liability for failure to issue and sell Common Stock related to such Stock
Awards unless and until such authority is obtained.

                                       17
<PAGE>

9. USE OF PROCEEDS FROM STOCK.

      Proceeds from the sale of Common Stock pursuant to Stock Awards shall
constitute general funds of the Company.

10. CANCELLATION AND RE-GRANT OF OPTIONS.

      (a) Upon obtaining any approval of the shareholders of the Company
required by applicable law or the listing requirements of the Nasdaq National
Market System or any other securities exchange on which the Common Stock may
then be traded, the Board shall have the authority to effect (i) the repricing
of any outstanding Options under the Plan and/or (ii) with the consent of the
affected Optionholders, the cancellation of any outstanding Options under the
Plan and the grant in substitution therefor of new Options under the Plan
covering the same or different number of shares of Common Stock, but having an
exercise price per share not less than eighty five percent (85%) of the Fair
Market Value (one hundred percent (100%) of Fair Market Value in the case of an
Incentive Stock Option or, in the case of a 10% shareholder (as described in
Subsection 5(b) of the Plan), not less than one hundred ten percent (110%) of
the Fair Market Value) per share of Common Stock on the new grant date.
Notwithstanding the foregoing, the Board may grant an Option with an exercise
price lower than that set forth above if such Option is granted as part of a
transaction to which section 424(a) of the Code applies.

      (b) Shares subject to an Option canceled under this Section 10 shall
continue to be counted against the maximum award of Options permitted to be
granted pursuant to Subsection 5(c) of the Plan as provided under Section 162(m)
of the Code and the regulations promulgated thereunder. The repricing of an
Option under this Section 10, resulting in a reduction of the exercise price,
shall be deemed to be a cancellation of the original Option and the grant of a
substitute Option; in the event of such repricing, both the original and the
substituted Options shall be counted against the maximum awards of Options
permitted to be granted pursuant to Subsection 5(c) of the Plan. The provisions
of this Subsection 10(b) shall be applicable only to the extent required by
Section 162(m) of the Code.

11. MISCELLANEOUS.

      (a) Acceleration of Exercisability and Vesting. The Board, (or Committee,
if so authorized by the Board) shall have the power to accelerate exercisability
and/or vesting when it deems fit, such as upon a Change of Control. The Board or
Committee shall have the power to accelerate the time at which a Stock Award may
first be exercised or the time during which a Stock Award or any part thereof
will vest in accordance with the Plan, notwithstanding the provisions in the
Stock Award stating the time at which it may first be exercised or the time
during which it will vest.

      (b) Shareholder Rights. No Participant shall be deemed to be the holder
of, or to have any of the rights of a holder with respect to, any shares of
Common Stock subject to a Stock Award except to the extent that the Company has
issued the shares of Common Stock relating to such Stock Award.

      (c) No Employment or other Service Rights. Nothing in the Plan or any
instrument executed or Stock Award granted pursuant thereto shall confer upon
any Participant any right to

                                       18
<PAGE>

continue to serve the Company or an Affiliate in the capacity in effect at the
time the Stock Award was granted or shall affect the right of the Company or an
Affiliate to terminate (i) the employment of an Employee with or without notice
and with or without cause, (ii) the service of a Consultant pursuant to the
terms of such Consultant's agreement with the Company or an Affiliate or (iii)
the service of a Director pursuant to the Bylaws of the Company, and any
applicable provisions of the corporate law of the state in which the Company is
incorporated, as the case may be.

      (d) Incentive Stock Option $100,000 Limitation. To the extent that the
aggregate Fair Market Value (determined at the time of grant) of Common Stock
with respect to which Incentive Stock Options are exercisable for the first time
by any Optionholder during any calendar year (under all plans of the Company and
its Affiliates) exceeds one hundred thousand dollars ($100,000), the Options or
portions thereof which exceed such limit (according to the order in which they
were granted) shall be treated as Nonstatutory Stock Options.

      (e) Investment Assurances. The Company may require a Participant, as a
condition of exercising or redeeming a Stock Award or acquiring Common Stock
under any Stock Award, (i) to give written assurances satisfactory to the
Company as to the Participant's knowledge and experience in financial and
business matters and/or to employ a purchaser representative reasonably
satisfactory to the Company who is knowledgeable and experienced in financial
and business matters and that he or she is capable of evaluating, alone or
together with the purchaser representative, the merits and risks of acquiring
the Common Stock; (ii) to give written assurances satisfactory to the Company
stating that the Participant is acquiring Common Stock subject to the Stock
Award for the Participant's own account and not with any present intention of
selling or otherwise distributing the Common Stock; and (iii) to give such other
written assurances as the Company may determine are reasonable in order to
comply with applicable law. The foregoing requirements, and any assurances given
pursuant to such requirements, shall be inoperative if (1) the issuance of the
shares of Common Stock under the Stock Award has been registered under a then
currently effective registration statement under the Securities Act or (2) as to
any particular requirement, a determination is made by counsel for the Company
that such requirement need not be met in the circumstances under the then
applicable securities laws, and in either case otherwise complies with
applicable law. The Company may, upon advice of counsel to the Company, place
legends on stock certificates issued under the Plan as such counsel deems
necessary or appropriate in order to comply with applicable laws, including, but
not limited to, legends restricting the transfer of the Common Stock.

      (f) Withholding Obligations. To the extent provided by the terms of a
Stock Award Agreement, the Participant may satisfy any federal, state, local, or
foreign tax withholding obligation relating to the exercise or redemption of a
Stock Award or the acquisition of, vesting, distribution, or transfer of Common
Stock under a Stock Award by any of the following means (in addition to the
Company's right to withhold from any compensation paid to the Participant by the
Company) or by a combination of such means: (i) tendering a cash payment; (ii)
authorizing the Company to withhold shares of Common Stock from the shares of
Common Stock otherwise issuable to the Participant; provided, however, that no
shares of Common Stock are withheld with a value exceeding the minimum amount of
tax required to be withheld by law; or (iii) delivering to the Company owned and
unencumbered shares of Common Stock.

                                       19
<PAGE>

12. ADJUSTMENTS UPON CHANGES IN STOCK.

      (a) Capitalization Adjustments. If any change is made in the Common Stock
subject to the Plan, or subject to any Stock Award, without the receipt of
consideration by the Company (through merger, consolidation, reorganization,
recapitalization, reincorporation, stock dividend, spinoff, dividend in property
other than cash, stock split, liquidating dividend, combination of shares,
exchange of shares, change in corporate structure or other transaction not
involving the receipt of consideration by the Company), the Plan will be
appropriately adjusted in the class(es) and maximum number of securities subject
to the Plan pursuant to Subsection 4(a) above and the maximum number of
securities subject to award to any person pursuant to Subsection 5(c) above, and
the outstanding Stock Awards will be appropriately adjusted in the class(es) and
number of securities and price per share of the securities subject to such
outstanding Stock Awards. The Board shall make such adjustments, and its
determination shall be final, binding and conclusive. (The conversion of any
convertible securities of the Company shall not be treated as a transaction
"without receipt of consideration" by the Company.)

      (b) Adjustments Upon a Change of Control.

            (i) In the event of a Change of Control as defined in 2(d)(i)
      through 2(d)(iii), such as an asset sale, merger, or change in ownership
      of voting power, then any surviving entity or acquiring entity shall
      assume or continue any Stock Awards outstanding under the Plan or shall
      substitute similar stock awards (including an award to acquire the same
      consideration paid to the shareholders in the transaction by which the
      Change of Control occurs) for those outstanding under the Plan. In the
      event any surviving entity or acquiring entity refuses to assume or
      continue such Stock Awards or to substitute similar stock awards for those
      outstanding under the Plan, then with respect to Stock Awards held by
      Participants whose Continuous Service has not terminated, the Board in its
      sole discretion and without liability to any person may (1) provide for
      the payment of a cash amount in exchange for the cancellation of a Stock
      Award equal to the product of (x) the excess, if any, of the Fair Market
      Value per share of Common Stock at such time over the exercise or
      redemption price, if any, times (y) the ----- total number of shares then
      subject to such Stock Award, (2) continue the Stock Awards, or (3) notify
      Participants holding an Option, Stock Appreciation Right, Phantom Stock
      Unit or similar award that they must exercise or redeem any portion of
      such Stock Award (including, at the discretion of the Board, any unvested
      portion of such Stock Award) at or prior to the closing of the transaction
      by which the Change of Control occurs and that the Stock Awards shall
      terminate if not so exercised or redeemed at or prior to the closing of
      the transaction by which the Change of Control occurs. With respect to any
      other Stock Awards outstanding under the Plan, such Stock Awards shall
      terminate if not exercised or redeemed prior to the closing of the
      transaction by which the Change of Control occurs. The Board or Committee
      shall not be obligated to treat all Stock Awards, even those which are of
      the same type, in the same manner under this Section 12(b).

            (ii) In the event of a Change of Control as defined in 2(d)(iv),
      such as a dissolution of the Company, all outstanding Stock Awards shall
      terminate immediately prior to such event.

                                       20
<PAGE>

13. AMENDMENT OF THE PLAN AND STOCK AWARDS.

      (a) Amendment of Plan. The Board at any time, and from time to time, may
amend the Plan. However, except as provided in Section 12 of the Plan relating
to adjustments upon changes in Common Stock, no amendment shall be effective
unless approved by the shareholders of the Company to the extent shareholder
approval is necessary to satisfy the requirements of Section 422 of the Code,
any New York Stock Exchange, Nasdaq or other securities exchange listing
requirements, or other applicable law or regulation.

      (b) Shareholder Approval. The Board may, in its sole discretion, submit
any other amendment to the Plan for shareholder approval, including, but not
limited to, amendments to the Plan intended to satisfy the requirements of
Section 162(m) of the Code and the regulations thereunder regarding the
exclusion of performance-based compensation from the limit on corporate
deductibility of compensation paid to certain executive officers.

      (c) Contemplated Amendments. It is expressly contemplated that the Board
may amend the Plan in any respect the Board deems necessary or advisable to
provide eligible Employees with the maximum benefits provided or to be provided
under the provisions of the Code and the regulations promulgated thereunder
relating to Incentive Stock Options and/or to bring the Plan and/or Incentive
Stock Options granted under it into compliance therewith.

      (d) No Material Impairment of Rights. Rights under any Stock Award granted
before amendment of the Plan shall not be materially impaired by any amendment
of the Plan unless (i) the Company requests the consent of the Participant and
(ii) the Participant consents in writing.

      (e) Amendment of Stock Awards. The Board at any time, and from time to
time, may amend the terms of any one or more Stock Awards; provided, however,
that the rights under any Stock Award shall not be materially impaired by any
such amendment unless (i) the Company requests the consent of the Participant
and (ii) the Participant consents in writing.

14. TERMINATION OR SUSPENSION OF THE PLAN.

      (a) Plan Term. The Board may suspend or terminate the Plan at any time.
Unless sooner terminated, the Plan shall terminate on the first to occur of the
following: (1) the day before the tenth (10th) anniversary of the date the Plan
is adopted by the Board or approved by the shareholders of the Company,
whichever is earlier, or (2) the first meeting of the Company's shareholders at
which directors are to be elected that occurs after the close of the third
calendar year following the calendar year in which the initial public offering
of the Company's common stock occurs (i.e., in most cases this will be the
Annual Meeting of Shareholders occurring in 2008), but only if the Plan is not
approved by the Company's shareholders at or prior to such meeting . No Stock
Awards may be granted under the Plan while the Plan is suspended or after it is
terminated.

      (b) No Material Impairment of Rights. Suspension or termination of the
Plan shall not materially impair rights and obligations under any Stock Award
granted while the Plan is in effect except with the written consent of the
Participant.

                                       21
<PAGE>

15. EFFECTIVE DATE OF PLAN.

      The Plan shall become effective on the Listing Date, but no Option or
Stock Appreciation Right shall be exercised or redeemed (or, in the case of any
other form of Stock Award, shall be granted) unless and until the Plan has been
approved by the shareholders of the Company, which approval shall be within
twelve (12) months before or after the date the Plan is adopted by the Board.

16. CHOICE OF LAW.

      The law of the State of New York shall govern all questions concerning the
construction, validity and interpretation of this Plan, without regard to such
state's conflict of laws rules.

                                       22
<PAGE>

                       UNIVERSAL TRUCKLOAD SERVICES, INC.
                            2004 STOCK INCENTIVE PLAN

                 OPTION GRANT NOTICE: NONSTATUTORY STOCK OPTION

UNIVERSAL TRUCKLOAD SERVICES, INC. (the "Company"), pursuant to its 2004 Stock
Incentive Plan (the "Plan"), hereby grants to Optionholder an option to purchase
the number of shares of the Company's common stock (the "Common Stock") set
forth below (the "Option"). This Option is subject to all of the terms and
conditions as set forth herein and in the Stock Option Agreement, the Plan and
the Notice of Exercise, including but not limited to the substantial
restrictions on resale set forth in detail in Section 13 of the Stock Option
Agreement, all of which are attached hereto and incorporated herein in their
entirety.

Optionholder:                             ______________________________________

Date of Grant:                             [insert date of first day of trading]
                                          ______________________________________

Vesting Commencement Date:                 [insert date of first day of trading]
                                          ______________________________________

Number of Shares Subject to
Option ("Shares"):                        ______________________________________

Exercise Price (Per Share):                 [insert closing price on Nasdaq
                                               on first day of trading]
                                          ______________________________________

Total Exercise Price:                     ______________________________________

Expiration Date:                             [insert 7th anniversary of first
                                                  day of trading]
                                          ______________________________________

TYPE  OF OPTION:   Nonstatutory Stock Option

EXERCISE SCHEDULE: This Option may be exercised in full or in part at any time
                   following the Date of Grant but in no event following the
                   Expiration Date.

VESTING SCHEDULE:  100% of the Shares vest on the Vesting Commencement Date.

PAYMENT:           By one or a combination of the following items (described in
                   the Stock Option Agreement):

                   1.   By cash or check;

                   2.   By delivery of already-owned shares if the Common Stock
                        is publicly traded and if the Board (or Committee, as
                        applicable) approves in writing this form of
                        consideration at or prior to the time of the exercise of
                        the Option; and/or

                   3.   Pursuant to a "same-day sale" program under the terms
                        established by the Company.

ADDITIONAL TERMS/ACKNOWLEDGEMENTS: The undersigned Optionholder acknowledges
receipt of, and understands and agrees to, this Grant Notice, the Stock Option
Agreement and the Plan. Optionholder further acknowledges that as of the Date of
Grant, this Grant Notice, the Stock Option Agreement and the Plan set forth the
entire understanding between Optionholder and the Company regarding the
acquisition of stock in the Company and supersede all prior oral and written
agreements on that subject with the exception of (i) options previously granted
and delivered to Optionholder under the Plan, and (ii) the following agreements
only:

      OTHER AGREEMENTS: ______________________________________

Optionholder acknowledges that if no other agreements are listed above, no other
agreements on the subject hereof exist.

Optionholder further acknowledges by his or her signature below that he or she
has selected one of the designated alternatives (or in the absence of any
affirmative decision, delivery by mail) for the receipt of the Prospectus and
other communications relating to the Plan and the Option. Optionholder
understands that if he or she does not select any of the alternatives listed
below, Optionholder will receive all such materials and communications by mail.
By his or her

<PAGE>

signature below, Optionholder agrees it is his or her responsibility to notify
the Company as to his or her mailing address so that Optionholder may receive
any shareholder information to be delivered by mail.

_____ Optionholder will pick up communications regarding his or her Option,
      including the Prospectus, at a local Company site.

_____ Optionholder wishes the Company to mail to him or her any communications
      regarding his or her Option, including the Prospectus.

Optionholder should check one of the alternatives listed above. If none of the
alternatives is selected, then the Company will generally deliver communications
regarding the Option to him or her by mail.

UNIVERSAL TRUCKLOAD SERVICES , INC.:      OPTIONHOLDER:

By: ____________________________          By: ____________________________
             Signature                                Signature

Title:  ____________________________      Date: ____________________________

Date:  ____________________________

<PAGE>

                                    EXHIBIT A

                       UNIVERSAL TRUCKLOAD SERVICES, INC.
                            2004 STOCK INCENTIVE PLAN

                       NONSTATUTORY STOCK OPTION AGREEMENT

THIS OPTION AGREEMENT (including any exhibits hereto, the "Agreement") is made
effective as of the Date of Grant (as set forth in the attached Option Grant
Notice (including any exhibits thereto, the "Notice"), the terms of which Notice
are hereby made a part of this Agreement) between Universal Truckload Services,
Inc., a Michigan corporation (the "Company"), and the Optionholder named in the
Notice.

                                R E C I T A L S:

WHEREAS, the Company has adopted the Universal Truckload Services, Inc. 2004
Stock Incentive Plan (including any exhibits thereto, the "Plan"), which Plan is
incorporated herein by reference and made a part of this Agreement. Capitalized
terms not otherwise defined in this Agreement or in the Notice shall have the
same meanings as in the Plan; and

WHEREAS, the Board (or the Committee, as applicable) has determined that it
would be in the best interests of the Company and its shareholders to grant the
Option provided for herein to the Optionholder pursuant to the Plan and the
terms set forth herein and in the Notice.

NOW THEREFORE, in consideration of the mutual covenants hereinafter set forth,
the parties agree as follows:

1.    Grant of the Option. The Company hereby grants to the Optionholder the
right and option (the "Option") to purchase, on the terms and conditions
hereinafter set forth, all or any part of an aggregate of that number of Shares
set forth in the Notice, subject to adjustment from time to time pursuant to the
provisions of Section 12 of the Plan. The purchase price per share of the Shares
(the "Option Price") shall be the "Exercise Price (Per Share)" set forth in the
Notice, subject to adjustment from time to time pursuant to the provisions of
Section 12 of the Plan. The Option is intended to be a non-qualified stock
option, and is not intended to be treated as an option that complies with
Section 422 of the Internal Revenue Code of 1986, as amended.

2.    Vesting. At any time, the portion of the Option which has become vested
and exercisable pursuant to the Vesting Schedule set forth in the Notice is
hereinafter referred to as the "Vested Portion." If the Optionholder's
Continuous Service with the Company is terminated for any reason, the Option
shall, to the extent not then vested, be canceled by the Company without
consideration. The Vested Portion of the Option shall remain exercisable for the
period set forth in Section 3(a) of this Agreement.

3.    Exercise of Option.

      (a)   Period of Exercise.

      Subject to the provisions of the Plan and this Agreement, the Optionholder
      may exercise all or any part of the Vested Portion of the Option at any
      time prior to the earliest to occur of:

            (i)   the seventh anniversary of the Date of Grant (i.e., the
                  "Expiration Date" set forth in the Notice);
<PAGE>

            (ii)  two (2) months following the date of the Optionholder's
                  termination of Continuous Service by the Company without Cause
                  (other than as a result of death, Disability or Retirement) or
                  by the Optionholder for any reason;

            (iii) the date of the Optionholder's termination of Continuous
                  Service by the Company for Cause;

            (iv)  one (1) year following the date of the Optionholder's
                  termination of Continuous Service as a result of death or
                  Disability (as defined below);

            (v)   eighteen (18) months following the date of the Optionholder's
                  termination of Continuous Service as a result of death; and

            (vi)  six (6) months following the date of the Optionholder's
                  termination of Continuous Service as a result of Retirement
                  (as defined below).

      (b)   Definitions. For purposes of this Agreement:

            (i)   "Cause" shall mean (A) the Optionholder's continued failure
                  substantially to perform the material duties of his office
                  (other than as a result of total or partial incapacity due to
                  physical or mental illness), (B) the embezzlement or theft by
                  the Optionholder of the Company's property, (C) the commission
                  of any act or acts on the Optionholder's part resulting in the
                  conviction of such Optionholder of a felony under the laws of
                  the United States, any state, or any country, (D) the
                  Optionholder's willful malfeasance or willful misconduct in
                  connection with the Optionholder's duties to the Company or
                  any other act or omission which is materially injurious to the
                  financial condition or business reputation of the Company or
                  any of its subsidiaries or affiliates, or (E) a material
                  breach by the Optionholder of the material terms of his
                  employment agreement or any non-compete, non-solicitation or
                  confidentiality provisions to which the Optionholder is
                  subject. However, no termination shall be deemed for Cause
                  under clause (A), (D) or (E) unless the Optionholder is first
                  given written notice by the Company of the specific acts or
                  omissions which the Company deems constitute grounds for a
                  termination for Cause and is provided with at least 30 days
                  after such notice to cure the specified deficiency.

            (ii)  "Disability" shall mean the inability of the Optionholder to
                  perform the principal duties of his employment or service with
                  the Company as a result of a physical or mental illness, as
                  determined by the opinion of two licensed physicians, one to
                  be selected by the Company and one by the Optionholder or his
                  authorized personal representative or guardian.

            (iii) "Retirement" shall mean the termination of Optionholder's
                  employment on or after Optionholder attains the age of 65,
                  either by the Company without Cause or voluntarily by the
                  Optionholder.

      (c)   Method of Exercise.

            (i)   Subject to Section 3(a), the Vested Portion of the Option may
                  be exercised by delivering to the Company at its principal
                  office or its designee written notice of intent to so exercise
                  in the form approved by the Company; provided that, the Option
                  may be exercised with respect to whole Shares only. Such
                  notice shall specify the number of Shares for which the Option
                  is being exercised, and such other representations and

<PAGE>

                  agreements as may be required by the Company pursuant to the
                  provisions of the Plan, and shall be accompanied by payment in
                  full of the Option Price. The purchase price for the Shares as
                  to which the Option is exercised shall be paid to the Company,
                  at the election of the Optionholder, (A) in cash or its
                  equivalent (e.g., by check) or (B) if there should be a public
                  market for the Shares at such time, (1) and if the Board (or
                  Committee, as applicable) approves in writing this form of
                  consideration at the time of the exercise of the Option, in
                  Shares having a Fair Market Value equal to the aggregate
                  Option Price for the Shares being purchased and satisfying
                  such other requirements as may be imposed by the Committee;
                  provided, that such Shares have been held by the Optionholder
                  for no less than six months (or such other period as
                  established from time to time by the Committee or generally
                  accepted accounting principles in order to avoid any
                  additional compensation expense to the Company for financial
                  reporting purposes), (2) partly in cash and partly in such
                  Shares or (3) subject to such rules as may be established by
                  the Committee, through the delivery of irrevocable instruments
                  to a broker to sell all or a portion of such Shares and
                  deliver promptly to the Company an amount equal to the
                  aggregate Option Price for the Shares being purchased (i.e., a
                  "same day sale"). At the discretion of the Board, the
                  Optionholder may pay the purchase price for the Shares in some
                  combination of the foregoing. The Optionholder shall also be
                  required to pay all withholding taxes relating to the
                  exercise.

            (ii)  Notwithstanding any other provision of the Plan or this
                  Agreement to the contrary, unless there is an available
                  exemption from such registration, qualification or other legal
                  requirements, the Option may not be exercised prior to the
                  completion of any registration or qualification of the Option
                  or the Shares that is required to comply with applicable state
                  and federal securities or any ruling or regulation of any
                  governmental body or national securities exchange or
                  compliance with any other applicable federal, state or foreign
                  law that the Committee shall in its sole discretion determine
                  in good faith to be necessary or advisable.

            (iii) Upon the Company's determination that the Option has been
                  validly exercised as to any of the Shares, and subject to the
                  provisions of Section 13 below, the Company shall issue
                  certificates in the Optionholder's name for such Shares.
                  However, the Company shall not be liable to the Optionholder
                  for damages relating to any delays in issuing the certificates
                  to him, any loss of the certificates, or any mistakes or
                  errors in the issuance of the certificates or in the
                  certificates themselves.

            (iv)  Should the Optionholder die while holding the Option, the
                  Vested Portion of the Option shall remain exercisable by the
                  Optionholder's executor or administrator, or the person or
                  persons to whom the Optionholder's rights under this Agreement
                  shall pass by will, by the laws of descent and distribution,
                  or by beneficiary designation, as the case may be, to the
                  extent set forth in Section 3(a). Any heir or legatee of the
                  Optionholder shall take rights herein granted subject to the
                  terms and conditions hereof.

4.    No Right to Continued Employment. Neither the Plan nor this Agreement
shall be construed as giving the Optionholder the right to be retained in the
employ of, or in any consulting relationship to, the Company or any Affiliate.
Further, the Company or an Affiliate may at any time dismiss the Optionholder or
discontinue any consulting relationship, free from any liability or any claim
under the Plan or this Agreement, except as otherwise expressly provided herein.

<PAGE>

5.    Transferability. The Option is exercisable only by the Optionholder during
the Optionholder's lifetime and may not be assigned, alienated, pledged,
attached, sold or otherwise transferred or encumbered by the Optionholder
otherwise than by will or by the laws of descent and distribution, and any such
purported assignment, alienation, pledge, attachment, sale, transfer or
encumbrance shall be void and unenforceable against the Company or any
Affiliate; provided that the designation of a beneficiary shall not constitute
an assignment, alienation, pledge, attachment, sale, transfer or encumbrance.

6.    Withholding. An Optionholder shall be required to pay to the Company or
any Affiliate, and the Company shall have the right and is hereby authorized to
withhold, any applicable withholding taxes in respect of an Option, its exercise
or any payment or transfer under an Option or under the Plan and to take such
other action as may be necessary in the opinion of the Company to satisfy all
obligations for the payment of such withholding taxes.

7.    Securities Laws. Upon the acquisition of any Shares pursuant to the
exercise of the Option, the Optionholder will make or enter into such written
representations, warranties and agreements as the Committee may reasonably
request in order to comply with applicable securities laws or with this
Agreement.

8.    Notices. Any notice necessary under this Agreement shall be addressed to
the Company in care of its Secretary at the principal executive office of the
Company and to the Optionholder at the address appearing in the personnel
records of the Company for the Optionholder or to either party at such other
address as either party hereto may hereafter designate in writing to the other.
Any such notice shall be deemed effective upon receipt thereof by the addressee.

9.    Choice of Law. THE INTERPRETATION, PERFORMANCE AND ENFORCEMENT OF THIS
AGREEMENT SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD
TO PRINCIPLES OF CONFLICTS OF LAW.

10.   Option Subject to Plan. By entering into this Agreement, the Optionholder
agrees and acknowledges that the Optionholder has received a copy of the Plan.
The Option is subject to the Plan. The terms and provisions of the Plan, as it
may be amended from time to time in accordance with its respective terms, are
hereby incorporated herein by reference. The Optionholder acknowledges that the
Notice, this Agreement and the Plan set forth the entire understanding between
the Optionholder and the Company regarding the Optionholder's rights to acquire
the Shares subject to this Option and supersede all prior oral and written
agreements with respect thereto, including, but not limited to, any other
agreement or understanding between the Optionholder and the Company or an
Affiliate relating to the Optionholder's Continuous Service and any termination
thereof, his compensation, or his rights, claims or interests in or to shares of
the capital stock of the Company. In the event of a conflict between any term or
provision contained herein and a term or provision of the Plan, the applicable
terms and provisions of the Plan will govern and prevail.

11.   Amendments. The Committee at any time, and from time to time, may amend
the terms of the Option; provided, however, that the rights under any Option
shall not be materially impaired by any such amendment unless (i) the Company
requests the consent of the Optionholder and (ii) the Optionholder consents in
writing. Notwithstanding the foregoing, in the event that the Committee shall
determine that it is desirable or appropriate to amend the Option in order to
allow the Company to satisfy the requirements of the Securities and Exchange
Commission for an exemption from the registration requirements under Section
12(g) of the Act, the Option may be amended for this purpose without having to
obtain any consent from the Optionholder.

12.   Forfeiture of Certain Bonuses and Profits. Per Section 304 of the
Sarbanes-Oxley Act of 2002, if the Company is required to prepare an accounting
restatement due to the material noncompliance of the Company, as a result of
misconduct, with any financial reporting requirement under the securities laws,
the

<PAGE>

chief executive officer and chief financial officer of the Company shall
reimburse the Company for: (i) any bonus or other incentive-based or
equity-based compensation received by that person from the Company during the
twelve (12) month period following the first public issuance or filing with the
Securities Exchange Commission (whichever first occurs) of the financial
document embodying such financial reporting requirement and (ii) any profits
realized from the sale of securities of the issuer during that twelve (12) month
period.

13.   Restrictions on Transfer. The Optionholder agrees that he or she will not
transfer any Shares except as permitted under the terms of the Plan and this
Agreement and in accordance with applicable law.

      (a)   Sale of Shares. The Optionholder may not sell, or otherwise dispose
of in an exchange, all or any part of the Shares purchased upon the exercise of
the Option prior to the Expiration Date, except for a sale or exchange:

            (i)   of that number of Shares sold in a "same day sale" program (as
                  described in Section 3(c)(i)(B)(3) of this Agreement) in order
                  to pay the Exercise Price per Share of the Shares purchased by
                  the Optionholder;

            (ii)  of that number of Shares sold in a "same day sale" program (as
                  described in Section 3(c)(i)(B)(3) of this Agreement) in order
                  to pay the applicable withholding taxes, if any, on the Shares
                  purchased by the Optionholder;

            (iii) that has been approved in writing in advance by, and in the
                  sole discretion of, the Board (or Committee, as applicable);

            (iv)  following the termination of the Optionholder's Continuous
                  Service as a result of the Optionholder's death, Disability or
                  Retirement, in each case provided such sale or exchange has
                  been approved in writing in advance by, and in the sole
                  discretion of, the Board (or Committee, as applicable);

            (v)   immediately prior to, or at any time following, the closing of
                  a Change of Control transaction; or

            (vi)  following such time that (A) CenTra, Inc. and its affiliates,
                  (B) Manuel J. Moroun and his affiliates, and (C) Matthew T.
                  Moroun and his affiliates, cease to be the Beneficial Owner
                  (as such term is defined in Rule 13d-3 under the Exchange
                  Act), directly or indirectly, of at least 20% of the total
                  voting power of the voting securities of the Company,
                  including by way of merger, consolidation, tender or exchange
                  offer or otherwise.

      (b)   Other Transfers. The Optionholder may not transfer, or otherwise
dispose of, in a non-taxable transaction any part of the Shares purchased upon
the exercise of the Option prior to the Expiration Date without the prior
written approval of the Board (or the Committee, as applicable), which shall
generally impose the same restrictions on transfer of the Shares in the hands of
the transferee as were imposed on the Optionholder at the time of such approved
transfer.

      (c)   Repurchase Option. In the event of any purported transfer of Shares
which is in violation of the terms of this Agreement, such purported transfer
shall be void and of no effect, and the Company shall have an option (the
"Repurchase Option") to repurchase from the Optionholder all of the Shares
subject to the purported transfer at a price equal to the lesser of (i) the
Optionholder's Exercise Price for such Shares and (ii) the Fair Market Value of
the Shares as of the date of the purported transfer, which Repurchase Option
shall continue for a period of ninety (90) days after the Company receives
written notice of the purported transfer, or such longer period as may be agreed
to by the Company and the Optionholder. The
<PAGE>

Repurchase Option shall be exercised by written notice signed by an officer of
the Company and delivered or mailed as provided herein. Such notice shall
identify the number of Shares of Common Stock to be purchased and shall notify
the Optionholder of the time, place and date for settlement of such purchase,
which shall be scheduled by the Company within the term of the Repurchase Option
set forth above. The Company shall be entitled to pay for any Shares of Common
Stock purchased pursuant to its Repurchase Option at the Company's option in
cash or by offset against any indebtedness owing to the Company by the
Optionholder, or by a combination of both. Upon delivery of such notice and
payment of the purchase price in any of the ways described above, the Company
shall become the legal and beneficial owner of the Common Stock being
repurchased and all rights and interest therein or related thereto, and the
Company shall have the right to transfer to its own name the Common Stock being
repurchased by the Company, without further action by the Optionholder.

      (d)   Escrow. As security for the Optionholder's faithful performance of
the terms of this Agreement and compliance with applicable law, as well as to
ensure the availability for delivery of Optionholder's Shares upon the exercise
of the Repurchase Option, the Optionholder agrees to deliver to and deposit with
the Secretary of the Company or the Secretary's designee ("Escrow Agent") such
documentation (including but not limited to escrow instructions and stock
assignments) as reasonably requested by the Board (or the Committee, as
applicable) to facilitate the intent of this Section 13, together with a
certificate or certificates evidencing all of the Shares subject to the
Repurchase Option, upon any exercise of the Option. The Shares, along with any
stock dividends declared with respect to the Shares (which stock dividends shall
also be treated as Shares for purposes of the restrictions of this Section 13),
shall be held by the Escrow Agent in escrow until the earlier of the Expiration
Date or until such time as the Optionholder is permitted by the Board (or the
Committee, as applicable) to enter into a sale or transfer as described in this
Section 13.

      (e)   Legends. Each certificate representing Shares will bear a legend or
legends on the face thereof substantially to the following effect (with such
additions thereto or changes therein as the Company may be advised by counsel
are required by law or necessary to give full effect to this Agreement or to
reflect restrictions imposed under applicable securities and other law.

            (i)   "THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO AN
                  AGREEMENT IN FAVOR OF THE COMPANY, A COPY OF WHICH IS ON FILE
                  WITH THE COMPANY. NO TRANSFER, SALE, ASSIGNMENT, PLEDGE,
                  HYPOTHECATION OR OTHER DISPOSITION OF THE SECURITIES
                  REPRESENTED BY THIS CERTIFICATE, DIRECTLY OR INDIRECTLY, MAY
                  BE MADE EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF SUCH
                  AGREEMENT. THE HOLDER OF THIS CERTIFICATE, BY ACCEPTANCE OF
                  THIS CERTIFICATE, AGREES TO BE BOUND BY ALL OF THE PROVISIONS
                  OF SUCH AGREEMENT."

            (ii)  Any legend required by applicable law, including applicable
                  federal or state securities laws.

<PAGE>

                                    EXHIBIT B

                       UNIVERSAL TRUCKLOAD SERVICES, INC.

                            2004 STOCK INCENTIVE PLAN

<PAGE>

                                    EXHIBIT C

                  NOTICE OF EXERCISE: NONSTATUTORY STOCK OPTION

UNIVERSAL TRUCKLOAD SERVICES, INC.
12225 STEPHENS ROAD
P.O. BOX 2007
WARREN, MI 48089                                     Date of Exercise: _________

Ladies and Gentlemen:

      This constitutes notice under my stock option (the "Option") that I elect
to purchase the number of shares for the price set forth below.

      Stock option dated:                       _________

      Number of shares as to which option is
      exercised:                                _________

      Certificates to be issued in name
      of:                                       _________

      Total exercise price:                     $________

      Cash or check payment delivered
      herewith:                                 $________

      Value of __________ shares of Company
      Common Stock delivered herewith(1):
                                                $________

By this exercise and as conditions precedent to the effectiveness of this
exercise, I agree: (i) to execute the Attachments to this Notice of Exercise,
(ii) to provide such additional documents as you may require pursuant to the
terms of the option grant notice and stock option agreement applicable to the
Option (together, the "Option Agreement") and the Company's 2004 Stock Incentive
Plan (the "Plan"), and (iii) to provide for the payment by me to you (in the
manner designated by you) of your withholding obligation, if any, relating to
the exercise of this Option.

I hereby make the following certifications and representations with respect to
the number of common shares of Universal Truckload Services, Inc. (the
"Company") listed above (the "Shares"), which are being acquired by me for my
own account (or otherwise in compliance with applicable law) upon exercise of
the Option as set forth above:

      -     In addition to any other restrictions on my ability to transfer the
            Shares under the terms of the Option, I understand and acknowledge
            that the Shares are subject to contractual restrictions that may
            prevent a resale of the Shares for up to one hundred and eighty
            (180) days following the time that the Company's stock becomes
            publicly traded unless the underwriters of such public offering
            determine otherwise.

      -     I understand and acknowledge that the Shares (including any stock
            dividends declared thereon) are subject to contractual restrictions
            that may prevent a resale, exchange or other transfer of the Shares
            for up to seven (7)
--------
(1)   Shares must meet the public trading requirements set forth in the Option.
Shares must be valued in accordance with the terms of the Option being
exercised, must have been owned for the minimum period required in the Option,
and must be owned free and clear of any liens, claims, encumbrances or security
interests. Certificates must be endorsed or accompanied by an executed
assignment separate from certificate.

<PAGE>

            years following Date of Grant. I agree that the Company will impose
            stop-transfer instructions with respect to securities subject to the
            foregoing restriction through ____ __, 201[2].

      -     If I am an officer and/or director of the Company, I have
            communicated with the Company to determine whether I am subject to
            Section 16 of the Securities Exchange Act of 1934, as amended (the
            "Exchange Act"), and if so:

            -     I have reviewed my transactions relative to Section 16 of the
                  Exchange Act ("Section 16");

            -     the Company has informed me that the grant of the Option is
                  exempt from Section 16(b) of the Exchange Act either because
                  (i) it was approved by the Company's board of directors or a
                  committee of the board of directors that is composed solely of
                  two or more "non-employee directors" (as that term is defined
                  in the rules issues under Section 16), or (ii) I have held the
                  Option for six months or more, and, therefore, this
                  transaction may not be matched with a non-exempt purchase; and

            -     I understand that the filing of a Form 4 with the U.S.
                  Securities and Exchange Commission will be required because of
                  this transaction.

      -     I understand that if I am an officer and/or director of the Company,
            I may be deemed an "affiliate" of the Company and am therefore
            subject to certain of the conditions set forth in Rule 144 of the
            Securities Act.

      -     I further acknowledge that all certificates representing any of the
            Shares subject to the provisions of the Option shall have endorsed
            thereon appropriate legends reflecting the foregoing limitations, as
            well as any legends reflecting restrictions pursuant to the Option
            Agreement, the Company's Amended and Restated Articles of
            Incorporation, the Company's Amended and Restated Bylaws and/or
            applicable securities laws. I agree that the Shares are being
            acquired in accordance with and subject to the terms, provisions and
            conditions of the Option Agreement and the Plan, to all of which I
            hereby expressly assent. This Agreement shall inure to the benefit
            of and be binding upon my heirs, executors, administrators,
            successors and assigns.

      -     I do not have access to, nor am I aware of, any nonpublic, material
            information regarding the Company that could or has influenced my
            decision to purchase and/or sell these Shares.

      -     I further acknowledge that I have received a copy of the prospectus
            prepared by the Company, which provides information regarding the
            Company, the Plan and the Shares.

      -     I represent that I am entitled to exercise the Option with respect
            to the number of Shares that I wish to purchase hereby.

Very truly yours,

___________________________________
         (Signature)

___________________________________
         (Print Name)

ATTACHMENTS:

I.    Notice of Tax Consequences
II.   Form of Assignment Separate from Certificate
III.  Form of Joint Escrow Instructions

<PAGE>

                                  Attachment I

                           Notice of Tax Consequences

Set forth below is a brief summary, as of the Date of Grant, of certain United
States federal tax consequences to the individual named on the Notice of
Exercise (the "Optionholder") to which this Attachment I is attached of the
exercise of the nonstatutory stock option (the "Option") awarded to the
Optionholder pursuant to the Universal Truckload Services, Inc. 2004 Stock
Incentive Plan (the "Plan") and the Nonstatutory Stock Option Agreement (the
"Agreement") to which the Notice of Exercise is attached. Capitalized terms not
otherwise defined in this Notice of Tax Consequences shall have the same
meanings as in the Agreement.

1.    Timing of Taxation; Withholding. The Optionholder understands that Section
83(a) of the Code taxes as ordinary income the difference between the amount
paid for the Shares and the fair market value of the Shares as of the date all
material restrictions on transferability or substantial risks of forfeiture on
the Shares lapse. In this context, a "substantial risk of forfeiture" may
include the right of the Company to buy back the Shares pursuant to its
Repurchase Option as described in Section 13 of the Agreement. At the time that
the Optionholder recognizes the ordinary income, the Company shall be required
to collect all the applicable withholding taxes with respect to such income. The
obligation of the Company under the Plan to issue the Shares and perform related
tasks are conditioned on the Optionholder making arrangements for the payment of
any such taxes.

2.    Section 83(b) Election. The Optionholder understands that the Optionholder
may elect to be taxed at the time the Shares are purchased, rather than when and
as the restrictions described above expire, by filing an election under Section
83(b) (an "83(b) Election") of the Code with the Internal Revenue Service within
thirty (30) days from the date of purchase. Even if the fair market value of the
Shares at the time of the exercise of the Option equals the amount paid for the
Shares, the 83(b) Election must be made to avoid the recognition of income under
Section 83(a) in the future. The Optionholder understands that failure to file
such an 83(b) Election in a timely manner may result in adverse tax consequences
for the Optionholder.

3.    Acknowledgement. THE OPTIONHOLDER ACKNOWLEDGES THAT THE FOREGOING IS ONLY
A SUMMARY OF THE EFFECT OF UNITED STATES FEDERAL INCOME TAXATION WITH RESPECT TO
PURCHASE OF THE SHARES UNDER THE AGREEMENT, AND DOES NOT PURPORT TO BE COMPLETE,
AND THAT THE TAX LAWS AND REGULATIONS ARE SUBJECT TO CHANGE. The Optionholder
further acknowledges that the Company has directed the Optionholder to seek
independent advice regarding the applicable provisions of the Code, the income
tax laws of any municipality, state or foreign country in which the Optionholder
may reside, and the tax consequences of the Optionholder's death. The
Optionholder acknowledges that it is the Optionholder's sole responsibility, and
not the Company's, to timely file the 83(b) Election, even if the Optionholder
requests the Company or its representative to make the 83(b) Election on the
Optionholder's behalf.

4.    By signing this Attachment, the Optionholder represents that he has
reviewed with his own tax advisors the federal, state, local and foreign tax
consequences of the transactions contemplated by this Attachment and the
Agreement, and that he is relying solely on such advisors and not any statements
or representations of the Company or any of its agents. The Optionholder
understands and agrees that he (and not the Company) shall be responsible for
any tax liability that may arise as a result of the transactions contemplated by
the Attachment and the Agreement.

Dated:_______________, ____ Signature:____________________________

<PAGE>

                                  Attachment II

                  Form of Assignment Separate from Certificate

      FOR VALUE RECEIVED and pursuant to that certain Nonstatutory Stock Option
Agreement and Notice of Exercise, _________________ hereby sells, assigns and
transfers unto Universal Truckload Services, Inc., a Michigan corporation (the
"Company" or the "Assignee"), _______________________ (___________) shares of
the Common Stock of the Assignee ("Shares"), standing in the undersigned's name
on the books of said corporation represented by Certificate No. _______ herewith
and do hereby irrevocably constitute and appoint __________________________ as
attorney-in-fact to transfer the said stock on the books of the within named
Assignee with full power of substitution in the premises. This Assignment may be
used only in accordance with and subject to the terms and conditions of the
Nonstatutory Stock Option Agreement and Notice of Exercise (to which this
document is attached) (collectively, the "Agreement"), in connection with the
reacquisition of the Shares issued to the undersigned pursuant to the Agreement,
and only to the extent that such Shares remain subject to the Assignee's rights
to reacquire the shares under the Agreement.

Dated:_______________, ____ Signature:____________________________

INSTRUCTIONS: Please do not fill in any blanks other than the signature line.
The purpose of this Assignment Separate from Certificate is to return the shares
to the Company in the event the Optionee forfeits any of such shares as set
forth in the Agreement, without requiring additional signatures on the part of
the Optionee. THREE (3) COPIES of this Assignment Separate from Certificate must
be delivered to the Company with the above Certificate No. _____.

<PAGE>

                                 Attachment III

                        Form of Joint Escrow Instructions

[Date]

Attn: Corporate Secretary
Universal Truckload Services, Inc.
12225 Stephens Road
P.O. Box 2007
Warren, MI 48089

Dear Sir/Madam:

      As Escrow Agent for both Universal Truckload Services, Inc., a Michigan
corporation (the "Company"), and the undersigned recipient of stock of the
Company ("Recipient"), you are hereby authorized and directed to hold the
documents delivered to you pursuant to the terms of the "Plan" and "Option
Agreement" (as referenced in the Notice of Exercise to which this document is
attached), in accordance with the following instructions:

      1.    In the event that Recipient attempts to transfer the Shares in
violation of the provisions of Section 13 of the Option Agreement, and if the
Company or its assignee elects to exercise its Repurchase Option as described
therein, the Company or its assignee will give to Recipient and you a written
notice specifying that the Shares shall be transferred as described in the
Recipient's Option Agreement or other applicable governing documents. Recipient
and the Company hereby irrevocably authorize and direct you to close the
transaction contemplated by such notice in accordance with the terms of said
notice.

      At the closing, you are directed (a) to date any stock assignments
necessary for the transfer in question, (b) to fill in the number of Shares
being transferred, and (c) to deliver same, together with the certificate
evidencing the Shares of stock to be transferred, to the Company or other proper
transferee.

      2.    In the event that Recipient does not attempt to transfer the Shares
at any time during the period in which the Company holds the Repurchase Option,
or that Recipient is permitted to execute a transfer by the Board in accordance
with Section 13 of the Option Agreement, then when all other applicable
restrictions lapse, and when certain requirements are satisfied, the Company or
its assignee will give to Recipient and you a written notice specifying that the
appropriate number of Shares shall be transferred to the Recipient or his
authorized assignee along with any cash or in-kind dividends declared subsequent
to the date hereof and which relate to such Shares. Recipient and the Company
hereby irrevocably authorize and direct you to close the transaction
contemplated by such notice in accordance with the terms of said notice.

      At the closing, you are directed to deliver a certificate evidencing the
appropriate number of Shares, together with any cash or in-kind dividends
declared subsequent to the date hereof and which relate to such Shares, to the
Recipient or his authorized assignee.

      3.    Recipient irrevocably authorizes the Company to deposit with you any
certificates evidencing Shares to be held by you hereunder and any additions and
substitutions to said Shares as specified in the Option Agreement. Recipient
does hereby irrevocably constitute and appoint you as Recipient's
attorney-in-fact and agent for the term of this escrow to execute with respect
to such securities and other property all documents of assignment and/or
transfer and all stock certificates necessary or appropriate to make all
securities negotiable and to complete any transaction herein contemplated.

<PAGE>
      4.    This escrow shall terminate upon the latest to occur of (i) the
expiration of the term of the Company's Repurchase Option, and (ii) the date on
which all contractual restrictions or requirements set forth in the Plan or in
the documents evidencing the restrictions applicable to the Shares lapse or are
satisfied as determined by the Company.

      5.    If, at the time of termination of this escrow, you should have in
your possession any documents, securities, or other property belonging to
Recipient, you shall deliver all of same to any pledgee entitled thereto or, if
none, to Recipient and shall be discharged of all further obligations hereunder.

      6.    Your duties hereunder may be altered, amended, modified or revoked
only by a writing signed by all of the parties hereto.

      7.    You shall be obligated only for the performance of such duties as
are specifically set forth herein and may rely and shall be protected in relying
or refraining from acting on any instrument reasonably believed by you to be
genuine and to have been signed or presented by the proper party or parties or
their assignees. You shall not be personally liable for any act you may do or
omit to do hereunder as Escrow Agent or as attorney-in-fact for Recipient while
acting in good faith and any act done or omitted by you pursuant to the advice
of your own attorneys shall be conclusive evidence of such good faith.

      8.    You are hereby expressly authorized to disregard any and all
warnings given by any of the parties hereto or by any other person or
corporation, excepting only orders or process of courts of law, and are hereby
expressly authorized to comply with and obey orders, judgments or decrees of any
court. In case you obey or comply with any such order, judgment or decree of any
court, you shall not be liable to any of the parties hereto or to any other
person, firm or corporation by reason of such compliance, notwithstanding any
such order, judgment or decree being subsequently reversed, modified, annulled,
set aside, vacated or found to have been entered without jurisdiction.

      9.    You shall not be liable in any respect on account of the identity,
authority or rights of the parties executing or delivering or purporting to
execute or deliver the Option Agreement or any documents or papers deposited or
called for hereunder.

      10.   You shall not be liable for the outlawing of any rights under any
statute of limitations with respect to these Joint Escrow Instructions or any
documents deposited with you.

      11.   You shall be entitled to employ such legal counsel, including but
not limited to Simpson Thacher & Bartlett LLP, and other experts as you may deem
necessary to advise you in connection with your obligations hereunder, and you
may rely upon the advice of such counsel, and may pay such counsel reasonable
compensation for such advice.

      12.   Your responsibilities as Escrow Agent hereunder shall terminate if
you shall cease to be Corporate Secretary of the Company or if you shall resign
by written notice to each party. In the event of any such termination, the
Company may appoint any officer or assistant officer of the Company as successor
Escrow Agent and Recipient hereby confirms the appointment of such successor or
successors as his attorney-in-fact and agent to the full extent of your
appointment.

      13.   If you reasonably require other or further instruments in connection
with these Joint Escrow Instructions or obligations in respect hereto, the
necessary parties hereto shall join in furnishing such instruments.

      14.   It is understood and agreed that should any dispute arise with
respect to the delivery and/or ownership or right of possession of the
securities, you may (but are not obligated to) retain in your possession without
liability to anyone all or any part of said securities until such dispute shall
have been

<PAGE>

settled either by mutual written agreement of the parties concerned or by a
final order, decree or judgment of a court of competent jurisdiction after the
time for appeal has expired and no appeal has been perfected, but you shall be
under no duty whatsoever to institute or defend any such proceedings.

      15.   Any notice required or permitted hereunder shall be given in writing
and shall be deemed effectively given upon personal delivery or upon deposit in
the United States mail (or upon deposit with another delivery service), with
postage and fees prepaid, addressed to each of the other parties hereunto
entitled at the following addresses, or at such other addresses as a party may
designate by ten (10) days' written notice to each of the other parties hereto:

      COMPANY:                            Universal Truckload Services, Inc.
                                          12225 Stephens Road
                                          P.O. Box 2007
                                          Warren, MI  48089
                                          Attn:  General Counsel

      RECIPIENT:                          _________________
                                          _________________
                                          _________________
                                          _________________

      ESCROW AGENT:                       Universal Truckload Services, Inc.
                                          12225 Stephens Road
                                          P.O. Box 2007
                                          Warren, MI  48089
                                          Attn:  Corporate Secretary

      16.   By signing these Joint Escrow Instructions you become a party hereto
only for the purpose of said Joint Escrow Instructions; you do not become a
party to the Notice of Exercise.

<PAGE>
      17.    This instrument shall be binding upon and inure to the benefit of
the parties hereto, and their respective successors and permitted assigns. It is
understood and agreed that references to "you" or "your" herein refer to the
original Escrow Agent and to any and all successor Escrow Agents. It is
understood and agreed that the Company may at any time or from time to time
assign its rights under the Stock Option Agreement, the Notice of Exercise and
these Joint Escrow Instructions in whole or in part.

                                          Very truly yours,

                                          UNIVERSAL TRUCKLOAD SERVICES, INC.

                                          By:___________________________________

                                          RECIPIENT

                                          ______________________________________
                                          [Participant's Name]

ESCROW AGENT:

By:___________________________________

NAME: ________________________________<PAGE>

                                                                   EXHIBIT 10.12

                               SECURITY AGREEMENT

      THIS SECURITY AGREEMENT entered into as of the 29th day of June, 2004, by
and between ECONOMY TRANSPORT, 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").

                              W I T N E S S E T H:

      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 of 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") and Bank and that certain Second
Amendment to Loan Agreement dated June 29, 2004, by and among Universal
Truckload, Universal Am-Can, Mason Dixon, Mason Intermodal, Grantor and
Louisiana Transportation, Inc. ("Louisiana") (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 hereafter existing in and to 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).

            (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

<PAGE>

      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 in 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 May 11, 2004, in the principal sum of Twenty Million Dollars
      ($20,000,000.00), executed by Universal Truckload, Mason Dixon, Mason
      Intermodal and Universal Am-Can, as amended and restated by the Second
      Amended and Restated Promissory Note dated June 29, 2004, in the principal
      sum of Forty Million Dollars ($40,000,000,00), executed by Universal
      Truckload, Mason Dixon, Mason Intermodal, Universal Am-Can, Grantor and
      Louisiana 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, Louisiana, 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, Louisiana or Universal Truckload to Bank with respect to
      any letters of credit issued at any time by Bank for the benefit of
      Grantor, Mason Dixon, Mason Intermodal, Universal Am-Can, Louisiana 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 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

                                     - 2 -
<PAGE>

      note or other instrument. Grantor is a Michigan corporation registered in
      the state of Michigan and has as its organizational number the following:
      210-683.

            (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(e), 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 that 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 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

                                     - 3 -
<PAGE>

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)
      hereof, 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 a bona fide sale of goods sold and delivered,
      or in the process of being delivered, or out of and 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.

            (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

                                     - 4 -
<PAGE>

      inventory or the processing or collection thereof as well as those
      relating to its general business affairs 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 commingled 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 Grantor 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 hereby,
      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 drafts 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 to identify
      the Receivables to which such proceeds apply.

            (iv) Upon the occurrence of an Event of Default, Bank shall have the
      right, but shall incur no liability for failing to do so, in its own name,
      or in the name of the Grantor to demand, collect, receive, receipt for,
      sue for, compound and give acquittance 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.

            (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

                                     - 5 -
<PAGE>

      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 identity of such Receivables
      as Bank may reasonably require; and Grantor will mark its books and
      records to reflect this Security Agreement.

      (e) Transfers 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.

      (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,

                                     - 6 -
<PAGE>

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 is
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 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

                                     - 7 -
<PAGE>

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 provisions 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 hereunder;

            (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 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

                                     - 8 -
<PAGE>

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; (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 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.

                                     - 9 -
<PAGE>

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

                                     - 10 -
<PAGE>

      (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 indebtednesses, 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.

                                         ECONOMY TRANSPORTATION, INC.,
                                         a Michigan corporation

                                         By: /s/ J E McManus
                                             --------------------------------
                                         Title: PRESIDENT

                                                                      GRANTOR
                                     - 11 -

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